Document:

Exhibit 10.1

 

EXECUTION
COPY

 

 

AMENDMENT NO. 7

TO

AMENDED AND RESTATED LOAN AGREEMENT

 

THIS AMENDMENT NO. 7
TO AMENDED AND RESTATED LOAN AGREEMENT (this “Amendment”) dated as of June 29, 2020, is entered into by and
among HORIZON CREDIT II LLC (the “Borrower”), MUFG UNION BANK, N.A., as a Lender, and KEYBANK NATIONAL ASSOCIATION
(successor by merger to Key Equipment Finance Inc.) as a Lender and as Arranger and Agent (in such capacity, the “Agent”),
CADENCE BANK NA (successor by merger to State Bank and Trust Company), as an exiting
lender (the “Exiting Lender”), and Hitachi Capital America Corp. (the “New Lender”) as an
acknowledging party. Capitalized terms used and not otherwise defined herein are used with the meanings set forth or incorporated
by reference in the Loan Agreement (as defined below).

 

PRELIMINARY STATEMENTS

 

A.            Reference
is made to that certain Amended and Restated Loan and Security Agreement dated as of November 4, 2013 by and among the Borrower,
the Lenders and the Agent (as amended, modified, supplemented or otherwise modified prior to the date hereof, the “Loan
Agreement”).

 

B.            The parties
hereto have agreed to amend certain provisions of the Loan Agreement upon the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the premises set forth above, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged,
the parties hereto agree as follows:

 

Article
I.               
Amendments to the Loan Agreement. Upon satisfaction of the conditions precedent set forth in Article III hereof
the Loan Agreement is hereby amended as set forth in the conformed copy of the Loan Agreement attached as Exhibit A to this Agreement,
with text marked in bold double
underline indicating additions to the Loan Agreement and with text marked in bold
strikethrough indicating deletions to the Loan Agreement.

 

Article
II.              
Representations and Warranties. The Borrower hereby represents and warrants to each of the other parties hereto (and
the parties hereto agree that the following representations and warranties shall be deemed to have been made pursuant to the Loan
Agreement for purposes of Section 8.5 thereof), that:

 

(a)           
this Amendment constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms;

 

(b)          
all of the representations and warranties contained in the Loan Agreement are true and correct on and as of the date hereof
as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier
date; and

 

     

     

    

 

(c)          
on the date hereof, before and after giving effect to this Amendment, other than as amended or waived pursuant to this Amendment,
no Early Termination Event or Unmatured Termination Event has occurred and is continuing.

 

Article
III.             
Conditions Precedent. This Amendment shall become effective on the first Business Day (the “Effective Date”)
on which the Agent or its counsel has received:

 

(a)           
this Agreement, duly executed by Borrower, each Lender, the Exiting Lender, the New Lender and Agent;

 

(b)          
a Joinder Agreement, duly executed by Borrower, the New Lender and Agent; and

 

(c)           
a certificate from the Secretary of the Borrower dated as of the Effective Date, in form and substance satisfactory to Agent,
certifying that (i) a copy of the Certificate of Formation and Operating Agreement of the Borrower and any other Governing Documents,
as well as all amendments thereto, are attached, (ii) other than as reflected by the documents delivered pursuant to (i) above,
no action or proceeding for the amendment of such Person’s Governing Documents has been taken or is presently contemplated,
(iii) attached is a complete and correct copy of an authorization by or resolution of the Borrower’s members, managers or
board of directors (as applicable) authorizing the execution, delivery and performance of this Agreement and the Loan Agreement
as amended hereby and the transactions contemplated hereby and thereby, and (iv) a specimen signature of each manager, member or
officer of the Borrower who is authorized to execute this Agreement on behalf of the Borrower is included and that each of such
individuals is duly qualified as of the Effective Date;

 

(d)          
confirmation by the Agent of payment by the Borrower of (i) the fees described in the letter agreement between the Borrower
and the Agent with respect to the fees payable to the Lenders (other than the Exiting Lender) and the New Lender, dated the date
hereof, and (ii) the fees described as payable on the date hereof in the fee letter agreement between the Borrower and the Agent
with respect to the Agent’s fees, dated the date hereof, and (iii) the Lender Group Expenses incurred by Agent in connection
with this Agreement.

 

Article
IV.             
Miscellaneous.

 

Section 4.01          
Reference to and Effect on the Loan Documents.

 

(a)         
Upon the effectiveness of this Amendment, (i) each reference in the Loan Agreement to “this Loan Agreement”,
 “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall
mean and be a reference to the Loan Agreement as amended or otherwise modified hereby, and (ii) each reference to the Loan Agreement
in any other Loan Document or any other document, instrument or agreement executed and/or delivered in connection therewith, shall
mean and be a reference to the Loan Agreement as amended or otherwise modified hereby.

 

(b)          
Except as specifically amended, terminated or otherwise modified above, the terms and conditions of the Loan Agreement,
of all other Loan Documents and any other documents, instruments and agreements executed and/or delivered in connection therewith,
shall remain in full force and effect and are hereby ratified and confirmed.

 

    	-2-

     

    

 

(c)          
The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy
of the Agent or any Lender under the Loan Agreement or any other Loan Document or any other document, instrument or agreement executed
in connection therewith, nor constitute a waiver of any provision contained therein, in each case except as specifically set forth
herein.

 

Section 4.02         
Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which
taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment.

 

Section 4.03         
Costs and Expenses. Notwithstanding anything to the contrary in clause (c) of Article III, the Borrower
hereby reaffirms its agreement under the Loan Agreement to pay or reimburse the Agent on demand for all costs and expenses incurred
by the Agent in connection with the Loan Documents, including without limitation reasonable attorney’s fees. Without limiting
the generality of the foregoing, the Borrower specifically agrees to pay all fees and disbursements of legal counsel to the Agent
in connection with the preparation of this Agreement and the documents and instruments incidental hereto.

 

Section 4.04          
Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New
York.

 

Section 4.05         
Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose.

 

 

 

[Signature Pages Follow]

 

    	-3-

     

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed by their respective officers as of the date first above written.

 

	 	HORIZON CREDIT II LLC
	 	 
	 	 
	 	By:_________________________________
	 	       Name:  
	 	       Title:  

 

 

 

Signature Page to Amendment No. 7

     

     

    

 

 

	 	KEYBANK NATIONAL ASSOCIATION, as Agent
	 	 
	 	 
	 	By:_________________________________
	 	       Name:  
	 	       Title:  
	 	 
	 	 
	 	 
	 	KEYBANK NATIONAL ASSOCIATION, as a Lender
	 	 
	 	By:_________________________________
	 	       Name:  
	 	       Title:  

 

 

 

Signature Page to Amendment No. 7

     

     

    

 

 

	 	MUFG UNION BANK, N.A., as a Lender
	 	 
	 	 
	 	By:_________________________________
	 	       Name:  
	 	       Title:  

 

 

 

Signature Page to Amendment No. 7

     

     

    

 

 

	 	CADENCE BANK NA by way of merger with

STATE BANK AND TRUST COMPANY, as the Exiting Lender
	 	 
	 	 
	 	By:_________________________________
	 	       Name:  
	 	       Title:  

 

 

 

Signature Page to Amendment No. 7

     

     

    

 

 

ACKNOWLEDGED AND AGREED:

 

	 	HITACHI CAPITAL AMERICA CORP., as the New Lender
	 	 
	 	 
	 	By:_________________________________
	 	       Name:  
	 	       Title:

 

 

 

Signature Page to Amendment No. 7

     

     

    

 

EXHIBIT A

 

Loan Agreement

 

[Attached.]

 

 

     

     

    

 

Conformed Copy incorporating

(i) Amendmendment No. 1, dated as of August
12, 2015,

(ii) Amendment no. 2, dated as of April 6,
2018,

(iii) Amendment No. 3, dated as of December
28, 2018,

(iv) Amendment no. 4, dated as of March 29,
2019,

(v) Amendment no. 5, dated as of July 1,
2019 and,

(vi) Amendment no. 6, dated as of July 31,
2019, and

(vii)
Amendment no. 7, dated as of June 29, 2020

 

 

 

 

 

 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

 

by and among

 

 

HORIZON CREDIT II LLC

 

as Borrower,

 

 

THE LENDERS THAT ARE SIGNATORIES HERETO

 

as the Lenders,

 

and

 

KEY EQUIPMENT FINANCE INC.

 

as the Arranger and Agent,

 

 

 

 

Dated as of November 4, 2013

 

     

     

    

 

TABLE OF CONTENTS

 

 

	1.	DEFINITIONS AND CONSTRUCTION	1
	 	1.1	Definitions	1
	 	1.2	Accounting Terms	4143
	 	1.3	Code	4144
	 	1.4	Construction	4144
	 	1.5	Schedules and Exhibits	4244
	 	1.6	LIBOR Notification	44
	 	 	 	 
	2.	LOAN AND TERMS OF PAYMENT	4245
	 	2.1	Revolver Advances	4245
	 	2.2	Borrowing Procedures and Settlements	4346
	 	2.3	Payments; Overadvances; Voluntary Prepayment; Collections Account Release	4649
	 	2.4	Apportionment and Application of Payments	4851
	 	2.5	Interest Rates:  Rates, Payments, and Calculations	5053
	 	2.6	Cash Management	5154
	 	2.7	Crediting Payments	5356
	 	2.8	Designated Account	5356
	 	2.9	Maintenance of Loan Account; Statements of Obligations	5356
	 	2.10	Fees	5356
	 	2.11	Capital Requirements	5457
	 	2.12	LIBOR Rate Provisions	5558
	 	2.13	Increase in Facility Amount	5659
	 	2.14	Reduction of Facility Amount	5760
	 	2.15	Effect of Benchmark Transition Event	60
	 	 	 	 
	3.	CONDITIONS; TERM OF AGREEMENT	5762
	 	3.1	Conditions Precedent to the Restatement Effective Date and Initial Extension of Credit	5762
	 	3.2	Conditions Subsequent to the Initial Extension of Credit	6064
	 	3.3	Conditions Precedent to all Extensions of Credit	6165
	 	3.4	Term	6266
	 	3.5	Effect of Termination	6266
	 	3.6	Early Termination of Commitments by Borrower	6266
	 	 	 	 
	4.	CREATION OF SECURITY INTEREST	6267
	 	4.1	Grant of Security Interest	6267
	 	4.2	Negotiable Collateral	6367
	 	4.3	Collection of Accounts, General Intangibles, and Negotiable Collateral	6367
	 	4.4	Filing of Financing Statements; Commercial Tort Claims; Delivery of Additional Documentation Required	6367
	 	4.5	Power of Attorney	6469
	 	4.6	Right to Inspect and Verify	6569
	 	4.7	Control Agreements	6569
	 	4.8	Servicing of Notes Receivable	6670

 

    	-i-

     

    

 

TABLE OF CONTENTS

 

	 	4.9	Borrower’s Perfection	6670
	 	4.10	Note Receivable Documents	6670
	 	4.11	Release of Notes Receivable	6671
	 	 	 	 
	5.	REPRESENTATIONS AND WARRANTIES	6771
	 	5.1	No Encumbrances	6771
	 	5.2	Eligible Notes Receivables	6771
	 	5.3	Equipment	6872
	 	5.4	Location of Collateral	6872
	 	5.5	Records	6872
	 	5.6	State of Incorporation; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort Claims	6872
	 	5.7	Due Organization and Qualification; Subsidiaries	6873
	 	5.8	Due Authorization; No Conflict	6973
	 	5.9	Litigation	7074
	 	5.10	No Material Adverse Change	7074
	 	5.11	Fraudulent Transfer	7074
	 	5.12	Employee Benefits	7074
	 	5.13	Environmental Condition	7074
	 	5.14	Brokerage Fees	7175
	 	5.15	Intellectual Property	7175
	 	5.16	Leases	7175
	 	5.17	Deposit Accounts and Securities Accounts	7175
	 	5.18	Complete Disclosure	7175
	 	5.19	Indebtedness	7176
	 	5.20	Compliance	7276
	 	5.21	Servicing	7276
	 	5.22	Permits, Licenses, Etc.	7276
	 	5.23	Margin Stock	7276
	 	5.24	Government Regulation	7277
	 	5.25	Sanctions; Anti-Corruption	7377
	 	5.26	Patriot Act	7377
	 	 	 	 
	6.	AFFIRMATIVE COVENANTS	7378
	 	6.1	Accounting System	7378
	 	6.2	Collateral Reporting	7478
	 	6.3	Financial Statements, Reports, Certificates	7579
	 	6.4	Notices Regarding Authorized Persons or Servicing and Accounting Staff	7781
	 	6.5	Collection of Notes Receivable	7781
	 	6.6	Maintenance of Properties	7882
	 	6.7	Taxes	7882
	 	6.8	Insurance	7882
	 	6.9	Location of Collateral	7983
	 	6.10	Compliance with Laws	7983
	 	6.11	Leases	7983
	 	6.12	Existence	7983

 

    	-ii-

     

    

 

TABLE OF CONTENTS

 

	 	6.13	Environmental	8084
	 	6.14	Disclosure Updates	8084
	 	6.15	Formation of Subsidiaries	8085
	 	6.16	Required Asset Documents	8185
	 	6.17	Sale and Servicing Agreement	8185
	 	6.18	Escrow Deposits	8185
	 	6.19	Hedge Agreements.	8185
	 	6.20	Sanctions; Anti-Corruption Laws	8286
	 	 	 	 
	7.	NEGATIVE COVENANTS	8286
	 	7.1	Indebtedness	8286
	 	7.2	Liens	8286
	 	7.3	Restrictions on Fundamental Changes	8387
	 	7.4	Disposal of Assets	8387
	 	7.5	Change Name	8387
	 	7.6	Nature of Business	8387
	 	7.7	Prepayments and Amendments	8387
	 	7.8	[Intentionally Omitted].	8488
	 	7.9	Required Procedures	8488
	 	7.10	Restricted Payments	8488
	 	7.11	Accounting Methods	8488
	 	7.12	Investments	8488
	 	7.13	Transactions with Affiliates	8488
	 	7.14	Use of Proceeds	8488
	 	7.15	Collateral with Bailees	8488
	 	7.16	Sale and Servicing Agreement.	8488
	 	7.17	Sanctions; Anti-Corruption Use of Proceeds	8589
	 	 	 	 
	8.	EVENTS OF DEFAULT	8589
	 	 	 
	9.	THE LENDER GROUP’S RIGHTS AND REMEDIES	8892
	 	9.1	Rights and Remedies	8892
	 	9.2	Special Rights of the Lender Group in Respect of Notes Receivable and Purchased Participations	9094
	 	9.3	Remedies Cumulative	9195
	 	 	 	 
	10.	TAXES AND EXPENSES	9195
	 	 	 
	11.	WAIVERS; INDEMNIFICATION	9196
	 	11.1	Demand; Protest; etc	9196
	 	11.2	The Lender Group’s Liability for Borrower Collateral	9196
	 	11.3	Indemnification	9296
	 	 	 	 
	12.	NOTICES	9297
	 	 	 	 
	13.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER	9498

 

    	-iii-

     

    

 

TABLE OF CONTENTS

 

	14.	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS	9599
	 	14.1	Assignments and Participations	9599
	 	14.2	Successors	98102
	 	 	 	 
	15.	AMENDMENTS; WAIVERS	98102
	 	15.1	Amendments and Waivers	98102
	 	15.2	Replacement of Certain Lenders	99103
	 	15.3	No Waivers; Cumulative Remedies	100104
	 	 	 	 
	16.	AGENT; THE LENDER GROUP	100104
	 	16.1	Appointment and Authorization of Agent	100104
	 	16.2	Delegation of Duties	101105
	 	16.3	Liability of Agent	101105
	 	16.4	Reliance by Agent	102106
	 	16.5	Notice of Default or Event of Default	102106
	 	16.6	Credit Decision	103106
	 	16.7	Costs and Expenses; Indemnification	103107
	 	16.8	Agent in Individual Capacity	104108
	 	16.9	Successor Agent	104108
	 	16.10	Lender in Individual Capacity	105109
	 	16.11	Withholding Taxes	105109
	 	16.12	Collateral Matters	108112
	 	16.13	Restrictions on Actions by Lenders; Sharing of Payments	109113
	 	16.14	Agency for Perfection	110114
	 	16.15	Payments by Agent to the Lenders	110114
	 	16.16	Concerning the Collateral and Related Loan Documents	110114
	 	16.17	Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information	111114
	 	16.18	Several Obligations; No Liability	111115
	 	 	 	 
	17.	GENERAL PROVISIONS	112116
	 	17.1	Effectiveness	112116
	 	17.2	Section Headings	112116
	 	17.3	Interpretation	112116
	 	17.4	Severability of Provisions	112116
	 	17.5	Bank Product Providers	112116
	 	17.6	Debtor-Creditor Relationship	113117
	 	17.7	Counterparts; Electronic Execution	113117
	 	17.8	Revival and Reinstatement of Obligations	113117
	 	17.9	Confidentiality.	114118
	 	17.10	Lender Group Expenses	115119
	 	17.11	Survival	115119
	 	17.12	Patriot Act	115119
	 	17.13	Integration	116120

 

    	-iv-

     

    

 

EXHIBITS AND SCHEDULES

 

	Exhibit A-1	Form of Assignment and Acceptance 
	Exhibit B-1	Form of Borrowing Base Certificate
	Exhibit B-2	Form of Bank Product Provider Letter Agreement
	Exhibit C-1	Form of Compliance Certificate
	 	 
	 	 
	Schedule A-1	Approved Third-Party Lenders 
	Schedule A-2	Approved Third-Party Originators
	Schedule A-3	Approved Senior Revolving Lenders
	Schedule C-1	Commitments
	Schedule P-1	Permitted Liens
	Schedule R-1	Required Asset Documents
	Schedule 2.6(a)	Cash Management Banks
	Schedule 5.4	Locations of Collateral
	Schedule 5.6(a)	Jurisdictions of Organization
	Schedule 5.6(b)	Chief Executive Offices
	Schedule 5.6(c)	Organizational ID Numbers
	Schedule 5.6(d)	Commercial Tort Claims
	Schedule 5.7(b)	Capitalization of Borrower and Horizon
	Schedule 5.7(c)	Capitalization of Horizon’s Subsidiaries
	Schedule 5.9	Litigation
	Schedule 5.13	Environmental Matters
	Schedule 5.15	Intellectual Property
	Schedule 5.17	Deposit Accounts and Securities Accounts
	Schedule 5.19	Permitted Indebtedness
	Schedule 5.22	Licenses, Franchises, Consents and Approvals

 

    	-v-

     

    

 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

THIS AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT (this “Agreement”), is entered into as of November 4, 2013, between and among, on the one
hand, the lenders identified on the signature pages hereof (such lenders, together with their respective successors and assigns,
are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), KEY EQUIPMENT
FINANCE INC., a Michigan corporation, as the arranger and administrative agent for the Lenders (“Agent”), and, on the
other hand, HORIZON CREDIT II LLC, a Delaware limited liability company (“Borrower”).

 

The parties agree as
follows:

 

1.            
DEFINITIONS AND CONSTRUCTION.

 

1.1             
Definitions. As used in this Agreement, the following terms shall have the following definitions:

 

“Account”
means an account (as that term is defined in the Code).

 

“Account Debtor”
means any Person who is obligated under, with respect to, or on account of, an Account, chattel paper or a General Intangible,
or is a debtor under, or a maker of, a Note Receivable, including any guarantor thereof.

 

“Accounting Changes”
means changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial
Accounting Standards Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar
functions).

 

“Additional Documents”
has the meaning set forth in Section 4.4(c).

 

“Advance”
means a revolving loan advance made by a Lender to the Borrower under and in accordance with the terms hereof, including, without
limitation, a Post-Termination Revolving Note Receivable Funding.

 

“Advance Rate”
means 50%; provided, that, following the occurrence of the Termination Date, the Advance Rate with respect to Revolving Note Receivables
shall be reduced by 5% as of the first day of each calendar month commencing thereafter until reduced to 0% (e.g., if the Termination
Date occurs on June 15, 2014, the Advance Rate with respect to a Revolving Note Receivable, shall be 50% from and including June
15, 2014 until June 30, 2014, 45% from and including July 1, 2014 until July 31, 2014, 40% from and including August 1, 2014 until
August 31, 2014, etc.).

 

“Affected Lender”
has the meaning set forth in Section 2.11(b).

 

“Affiliate”
means, as applied to any Person, any other Person who, directly or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, such Person. For purposes of this definition, “control” means the possession,
directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether
through the ownership of Stock, by contract, or otherwise; provided, however, that, in any event: (a) any Person which owns directly
or indirectly 20% or more of the Stock having ordinary voting power for the election of directors or other members of the governing
body of a Person or 20% or more of the partnership, membership or other ownership interests of a Person (other than as a limited
partner of such Person) shall be deemed to control such Person, (b) each director (or comparable manager) of a Person shall be
deemed to be an Affiliate of such Person, and (c) each partnership or joint venture in which a Person is a partner or joint venturer
shall be deemed to be an Affiliate of such Person.

 

    	-1-

     

    

 

“Agent”
means KEF, solely in its capacity as agent for the Lenders hereunder, and any successor thereto.

 

“Agent Fee Letter”
means that certain Agent Fee Letter dated as of the Restatement Effective Date between the Borrower and the Agent.

 

“Agent-Related
Persons” means Agent together with its Affiliates, officers, directors, employees, and agents.

 

“Agent’s
Account” means an account at a bank designated by Agent from time to time as the account into which Borrower shall make all
payments to Agent for the benefit of the Lender Group and into which the Lender Group shall make all payments to Agent under this
Agreement and the other Loan Documents; unless and until Agent notifies Borrower and the Lender Group to the contrary, Agent’s
Account shall be that certain deposit account bearing account number 329953020917 at KeyBank, ABA number 021300077, account name
Key Equipment Finance, REF: Las Operations, and all payments by Borrower or any member of the Lender Group to such deposit account
shall be designated: “Credit to: Key Equipment Finance, Re: Horizon Credit.”

 

“Agent’s
Fees” means the fees payable to the Agent pursuant to the Agent Fee Letter.

 

“Agent’s
Liens” means the Liens granted by Borrower to Agent for the benefit of the Lender Group under this Agreement or the other
Loan Documents.

 

“Agreement”
has the meaning set forth in the preamble hereto.

 

“Aggregate Outstanding
Note Receivable Balance” means on any day, the sum of the outstanding note receivable balances of all Eligible Note Receivables.

 

“Amendment No.
1 Effective Date” means August 12, 2015.

 

“Amendment No.
2 Effective Date” means April 6, 2018.

 

“Amendment No.
3 Effective Date” means December 28, 2018.

 

“Amendment
No. 7 Effective Date” means June 29, 2020.

 

“Amortization
Commencement Date” means the day immediately following the end of the Revolving Credit Availability Period.

 

    	-2-

     

    

 

“Amortization
Period” means the period commencing on the Amortization Commencement Date and ending on the earlier of (a) payment in
full of the Obligations, or (b) the second anniversary of the Amortization Commencement DateApril
6, 2023, unless otherwise extended.

 

“Applicable Margin”
means, with respect to any Advances outstanding, a rate per annum equal to (x) 3.25% during the Revolving Credit Availability Period,
(y) 3.75% during the first 12 months of the Amortization Period and (z) 4.25% thereafter; provided, that if the Interest Rate for
the Advances is calculated by reference to the Base Rate for more than ten (10) consecutive calendar days and the Base Rate is
more than the Lenders’ actual cost of funds, the Agent shall reset the Applicable Margin to an amount which, after giving
effect to such reset, will cause the interest rate (inclusive of both base interest and applicable margin), to reflect Lenders’
actual cost of funds.

 

“Approved Forms”
means the standard forms of Note Receivable Documents, including any loan application, promissory note, loan agreement, lien instrument,
security agreement, guaranty, and related documents used by Horizon in the conduct of its business with its borrowers, and substantially
similar in scope and content as the forms attached as an exhibit to the Closing Certificate, which forms shall be in form and substance
satisfactory to Agent, together with such changes and modifications or additions thereto from time to time as Horizon may approve
from time to time in accordance with the Required Procedures.

 

“Approved Senior
Revolving Lender” means a Person listed on Schedule A-3, any bank, commercial finance company or other institutional lender
that is a Subsidiary of, or a fund controlled by, a Person listed on Schedule A-3 and that targets the same market segment of the
lending business as Borrower (i.e. in one of the Target Industries), or any other bank, commercial finance company or other institutional
lender approved by Agent from time to time in its Permitted Discretion.

 

“Approved Third-Party
Lender” means a bank, commercial finance company or other institutional lender listed on Schedule A-1, any bank, commercial
finance company or other institutional lender that is a Subsidiary of, or a fund controlled by, a Person listed on Schedule A-1
and that targets the same market segment of the lending business as Borrower (i.e. in one of the Target Industries), or any other
bank, commercial finance company or other institutional lender approved by Agent from time to time in its Permitted Discretion.

 

“Approved Third-Party
Originator” means a bank, commercial finance company or other institutional lender listed on Schedule A-2, any bank, commercial
finance company or other institutional lender that is a Subsidiary of, or a fund controlled by, a Person listed on Schedule A-2
and that targets the same market segment of the lending business as such Borrower (i.e. in one of the Target Industries), or any
other bank, commercial finance company or other institutional lender approved by Agent from time to time in its Permitted Discretion.

 

“Asset Quality
Test” means as of any date from and after the end of the Ramp-Up Period, a test which is satisfied so long as each of the
following are true with respect to the Eligible Note Receivables: (i) the Weighted Average Remaining Maturity of the Eligible Note
Receivables is less than or equal to 48 months as of such date, (ii) the Weighted Average Spread on the Eligible Note Receivables
is equal to or greater than 6.00% as of such date, (iii) the weighted average internal credit rating assigned to the Eligible Note
Receivables is equal to or better than 2.7 under the Servicer’s Required Procedures, and (iv) the weighted average LTV of
the Eligible Note Receivablesfor all Account Debtors shall
not exceed 25.0%.

 

    	-3-

     

    

 

“Assignee”
has the meaning set forth in Section 14.1(a).

 

“Assignment and
Acceptance” means an Assignment and Acceptance substantially in the form of Exhibit A-1.

 

“Authorized Person”
means (a) with respect to Borrower, any of Robert D. Pomeroy, Jr., Chief Executive Officer, Gerald A. Michaud, President, or Daniel
Trolio, Chief Financial Officer, or any other individual then serving as the Chief Executive Officer, President, or Chief Financial
Officer of Borrower, (b) with respect to Horizon, any of Robert D. Pomeroy, Jr., Chief Executive Officer, Gerald A. Michaud, President,
or Daniel Trolio, Chief Financial Officer, or any other individual then serving as the Chief Executive Officer, President, or Chief
Financial Officer of Horizon, and (c) with respect to Servicer, any of Robert D. Pomeroy, Jr., Chief Executive Officer, Gerald
A. Michaud, President, or Daniel Trolio, Chief Financial Officer, or any other individual then serving as the Chief Executive Officer,
President, or Chief Financial Officer of Servicer; provided, that for purposes of this Agreement, no individual who is an Authorized
Person shall cease to be an Authorized Person, and no individual who is not then an Authorized Person shall become an Authorized
Person, unless and until Agent has received written notice of such change from Borrower, Horizon or Servicer, as applicable, and
in the case of an individual becoming an Authorized Person such individual has qualifications and experience substantially similar
to the Authorized Person being replaced and Agent has completed a background check on such proposed new Authorized Person with
the results of such background check being acceptable to Agent in its Permitted Discretion.

 

“Available Amount”
means the amount equal to the lesser of (a) (i) the Maximum Availability minus (ii) the aggregate Advances outstanding on such
day, and (b) the Borrowing Base on such day minus the aggregate Advances outstanding on such day minus the amount by which the
Borrowing Base plus the Revolving Note Receivable Unfunded Available Amount exceeds the Maximum Availability; provided, however,
that following the Termination Date, the Available Amount shall be zero.

 

“Available Collections”
has the meaning given to such term in Section 2.4.

 

“Average Daily
Balance” means (a) the sum of the Daily Balances for each day during a measurement period divided by (b) the number
of days in the measurement period.

 

“Backup Servicer”
means U.S. Bank National Association, solely its capacity as the Person appointed as the backup servicer of the Note Receivables
pursuant to the Sale and Servicing Agreement, or any replacement for such Person acceptable to both Borrower and Agent or otherwise
appointed pursuant to the terms of the Sale and Servicing Agreement.

 

“Backup Servicer
Engagement Letter” has the meaning set forth in the Sale and Servicing Agreement, as amended from time to time with the consent
of the Agent, not to be unreasonably withheld.

 

    	-4-

     

    

 

“Backup Servicer
Fees” means any fees payable to the Backup Servicer in accordance with the Sale and Servicing Agreement and the Backup Servicer
Engagement Letter.

 

“Bank Product”
means any one or more of the following financial products or accommodations extended to Borrower by a Bank Product Provider: (a)
credit cards, (b) credit card processing services, (c) debit cards, (d) stored value cards, (e) purchase cards (including so-called
 “procurement cards” or “P-cards”), (f) Cash Management Services, or (g) transactions under Hedge Agreements.

 

“Bank Product
Agreements” means those agreements entered into from time to time by Borrower with a Bank Product Provider in connection
with the obtaining of any of the Bank Products.

 

“Bank Product
Collateralization” means providing cash collateral (pursuant to documentation reasonably satisfactory to Agent) to be held
by Agent for the benefit of the Bank Product Providers (other than the Hedge Providers) in an amount determined by Agent as sufficient
to satisfy the reasonably estimated credit exposure with respect to the then existing Bank Product Obligations (other than Hedge
Obligations).

 

“Bank Product
Obligations” means (a) all obligations, liabilities, reimbursement obligations, fees, or expenses owing by Borrower to any
Bank Product Provider pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of money,
whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, (b) all Hedge Obligations,
and (c) all amounts that Agent or any Lender is obligated to pay to a Bank Product Provider as a result of Agent or such Lender
purchasing participations from, or executing guarantees or indemnities or reimbursement obligations to, a Bank Product Provider
with respect to the Bank Products provided by such Bank Product Provider to Borrower.

 

“Bank Product
Provider” means any Lender or any of its Affiliates; provided, however, that no such Person (other than KeyBank or its Affiliates)
shall constitute a Bank Product Provider with respect to a Bank Product unless and until Agent shall have received a Bank Product
Provider Letter Agreement from such Person and with respect to the applicable Bank Product within 10 days after the provision of
such Bank Product to Borrower; provided further, however, that if, at any time, a Lender ceases to be a Lender under the Agreement,
then, from and after the date on which it ceases to be a Lender thereunder, neither it nor any of its Affiliates shall constitute
Bank Product Providers and the obligations with respect to Bank Products provided by such former Lender or any of its Affiliates
shall no longer constitute Bank Product Obligations.

 

“Bank Product
Provider Letter Agreement” means a letter agreement in substantially the form attached hereto as Exhibit B-2, in form and
substance satisfactory to Agent, duly executed by the applicable Bank Product Provider, Borrower, and Agent.

 

“Bank Product
Reserve Amount” means, as of any date of determination, the Dollar amount of reserves that Agent has determined it is necessary
or appropriate to establish (based upon the Bank Product Providers’ reasonable determination of their credit exposure to
Borrower in respect of Bank Product Obligations) in respect of Bank Products then provided or outstanding; provided, however, that
such amount shall at no time exceed the lesser of (a) ten percent (10%) of the Maximum Revolver Amount at such time, or (b) $5,000,000.

 

    	-5-

     

    

 

“Bankruptcy Code”
means title 11 of the United States Code, as in effect from time to time.

 

“Base Rate”
means the greater of (a) the Federal Funds Rate plus one-half percent (0.50%), and (b) the rate of interest announced, from time
to time, within KeyBank at its principal office in Ohio as its “prime rate”, with the understanding that the “prime
rate” is one of KeyBank’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which
effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after
its announcement in such internal publications as KeyBank may designate.

 

“Base Rate Loan”
means each portion of an Advance that bears interest at a rate determined by reference to the Base Rate.

 

“Benchmark
Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the
Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for
determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining
a rate of interest as a replacement to LIBOR for U.S. dollar-denominated syndicated credit facilities at such time and (b) the
Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than one percent (1.00%),
the Benchmark Replacement will be deemed to be one percent (1.00%) for the purposes of this Agreement.

 

“Benchmark
Replacement Adjustment” means, with respect to any replacement of LIBOR with an Unadjusted Benchmark Replacement for each
applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment (which may be
a positive or negative value or zero) that has been selected by the Agent and the Borrower giving due consideration to (i) any
selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement
of LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (ii) any evolving or then-prevailing
market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the
replacement of LIBOR with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities
at such time.

 

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “Interest Period,” timing and frequency of determining rates and making
payments of interest and other administrative matters) that the Agent decides may be appropriate to reflect the adoption and implementation
of such Benchmark Replacement and to permit the administration thereof by the Agent in a manner substantially consistent with market
practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively feasible or if
the Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of
administration as the Agent decides is reasonably necessary in connection with the administration of this Agreement).

 

    	-6-

     

    

 

“Benchmark
Replacement Date” means the earlier to occur of the following events with respect to LIBOR:

 

(1)       in
the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public
statement or publication of information referenced therein and (b) the date on which the administrator of LIBOR permanently or
indefinitely ceases to provide LIBOR; or

 

(2)       in
the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication
of information referenced therein.

 

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to LIBOR:

 

(1)       a
public statement or publication of information by or on behalf of the administrator of LIBOR announcing that such administrator
has ceased or will cease to provide LIBOR, permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that will continue to provide LIBOR;

 

(2)       a
public statement or publication of information by the regulatory supervisor for the administrator of LIBOR, the U.S. Federal Reserve
System, an insolvency official with jurisdiction over the administrator for LIBOR, a resolution authority with jurisdiction over
the administrator for LIBOR or a court or an entity with similar insolvency or resolution authority over the administrator for
LIBOR, which states that the administrator of LIBOR has ceased or will cease to provide LIBOR permanently or indefinitely, provided
that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR; or

 

(3)       a
public statement or publication of information by the regulatory supervisor for the administrator of LIBOR or a Relevant Governmental
Body announcing that LIBOR is no longer representative.

 

“Benchmark
Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark
Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective
event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the
expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or
publication) and (b) in the case of an Early Opt-in Election, the date specified by the Agent or the Required Lenders, as applicable,
by notice to the Borrower, the Agent (in the case of such notice by the Required Lenders) and the Lenders.

 

“Benchmark
Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with
respect to LIBOR and solely to the extent that LIBOR has not been replaced with a Benchmark Replacement, the period (x) beginning
at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced LIBOR for
all purposes hereunder in accordance with Section 2.15 and (y) ending at the time that a Benchmark Replacement has replaced LIBOR
for all purposes hereunder pursuant to Section 2.15.

 

    	-7-

     

    

 

“Benefit Plan”
means a “defined benefit plan” (as defined in Section 3(35) of ERISA) for which Borrower or any Subsidiary or
ERISA Affiliate of Borrower has been an “employer” (as defined in Section 3(5) of ERISA) within the past six years.

 

“Board of Directors”
means the board of directors (or comparable managers or managing members) of a Person or any committee thereof duly authorized
to act on behalf of the board of directors (or comparable managers or managing members).

 

“Books”
means all of Borrower’s and its Subsidiaries’ now owned or hereafter acquired books and records (including all of their
Records indicating, summarizing, or evidencing their assets (including the Collateral) or liabilities, all of Borrower’s
and its Subsidiaries’ Records relating to their business operations or financial condition, and all of their goods or General
Intangibles related to such information).

 

“Borrower”
has the meaning set forth in the preamble to this Agreement.

 

“Borrower Collateral”
means all of Borrower’s now owned or hereafter acquired right, title, and interest in and to all property, including, without
limitation, each of the following:

 

(a)       all
of its Accounts,

 

(b)       all
of its Books,

 

(c)       all
of its commercial tort claims,

 

(d)       all
of its Deposit Accounts,

 

(e)       all
of its Equipment,

 

(f)       all
of its General Intangibles,

 

(g)       all
of its Inventory,

 

(h)       all
of its Investment Property (including all of its securities and Securities Accounts),

 

(i)       all
of its Negotiable Collateral, including all of its Notes Receivable,

 

(j)       all
of its Hedge Collateral,

 

(k)       all
of its Supporting Obligations,

 

(l)       all
of its Supplemental Interests,

 

    	-8-

     

    

 

(m)       money
or other assets of Borrower that now or hereafter come into the possession, custody, or control of Agent or any Lender, and

 

(n)       the
proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance covering any or
all of the foregoing, and any and all Accounts, Books, Deposit Accounts, Equipment, General Intangibles, Inventory, Investment
Property, Negotiable Collateral, Real Property, Supporting Obligations, money, or other tangible or intangible property resulting
from the sale, exchange, collection, or other disposition of any of the foregoing, or any portion thereof or interest therein,
and the proceeds thereof.

 

“Borrowing Base”
means on any date of determination, the sum of (i) (x) the difference of (a) the Aggregate Outstanding Note Receivable Balance
as of such date less (b) the Excess Concentration Amount as of such date times (y) the Advance Rate as of such date, plus (ii)
the amount of cash and cash equivalents constituting Principal Collections held in the Collection Account.

 

“Borrowing Base
Certificate” means a certificate in the form of Exhibit B-1.

 

“Breakage Costs”
means any out-of-pocket loss, cost or expense incurred by any Lender (as reasonably determined by the applicable Lender) as a result
of any prepayment of any Advance arising under this Agreement, including, without limitation, any loss or cost (excluding lost
profits) in (i) liquidating or employing deposits acquired to fund or maintain such Advance or (ii) unwinding or terminating any
deposit, hedging, swap or other capital market investment entered into by the Lender in the ordinary course of business in connection
with funding or maintaining such Advance. The amount of any such loss or expense shall be communicated by the applicable Lender(s)
to the Agent and set forth in a written notice to Borrower delivered by the Agent on behalf of such Lender(s) prior to the date
of such prepayment in the case where notice of such prepayment is delivered to such Lender in accordance with Section 2.3(b) or
within two (2) Business Days following such prepayment in the case where no such notice is delivered and shall be conclusive absent
manifest error.

 

“Business Day”
means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to close in the State of New
York, the State of Connecticut, or the State of Ohio, except that if a determination of a Business Day shall relate to a LIBOR
Rate Loan, the term “Business Day” also shall exclude any day on which banks are closed for dealings in Dollar deposits
in the London interbank market.

 

“Capital Lease”
means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.

 

“Capitalized
Lease Obligation” means that portion of the obligations under a Capital Lease that is required to be capitalized in accordance
with GAAP.

 

“Carrying Costs”
means, for any Collection Period, the sum of (i) the aggregate amount of interest accrued during such Collection Period with respect
to all outstanding Advances during such Collection Period; plus (ii) all amounts due and payable to any Hedge Provider with respect
to such Collection Period; plus (iii) an amount equal to the product of (x) 0.10% times (y) the Average Daily Balance during such
Collection Period.

 

    	-9-

     

    

 

“Cash Equivalents”
means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States or issued by any agency
thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition
thereof, (b) marketable direct obligations issued or fully guaranteed by any state of the United States or any political subdivision
of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the
time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”)
or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than 270 days from
the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from
Moody’s, (d) certificates of deposit, time deposits, overnight bank deposits or bankers’ acceptances maturing within
1 year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof
or the District of Columbia or any United States branch of a foreign bank having at the date of acquisition thereof combined capital
and surplus of not less than $1,000,000,000, (e) Deposit Accounts maintained with (i) any bank that satisfies the criteria
described in clause (d) above, or (ii) any other bank organized under the laws of the United States or any state thereof so
long as the full amount maintained with any such other bank is insured by the Federal Deposit Insurance Corporation, (f) repurchase
obligations of any commercial bank satisfying the requirements of clause (d) of this definition or recognized securities dealer
having combined capital and surplus of not less than $1,000,000,000, having a term of not more than seven days, with respect to
securities satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities of six months or less from
the date of acquisition backed by standby letters of credit issued by any commercial bank satisfying the criteria described in
clause (d) above, and (h) Investments in money market funds substantially all of whose assets are invested in the types of
assets described in clauses (a) through (g) above.

 

“Cash Management
Account” has the meaning set forth in Section 2.6(a).

 

“Cash Management
Agreements” means those certain cash management service agreements, in form and substance satisfactory to Agent, each of
which is among Borrower or one of its Subsidiaries, Agent, and one of the Cash Management Banks.

 

“Cash Management
Bank” has the meaning set forth in Section 2.6(a).

 

“Cash Management
Services” means any cash management or related services including treasury, depository, return items, overdraft, controlled
disbursement, merchant store value cards, e-payables services, electronic funds transfer, interstate depository network, automatic
clearing house transfer (including the Automated Clearing House processing of electronic funds transfers through the direct Federal
Reserve Fedline system) and other cash management arrangements.

 

“Cash Runway
Analysis” means such analytical spreadsheet prepared by the Chief Credit Officer of Horizon or Horizon Management, reflecting
the most recent qualitative and quantitative analysis of each Account Debtor’s remaining cash runway, loan to value and compliance
with the terms of its loan agreement with the Borrower.

 

“Change of Control”
means any of the following: (a) Horizon ceases to directly own and control 100% of the outstanding capital Stock of Borrower; (b)
Borrower ceases to directly own and control 100% of the outstanding capital Stock of each of its Subsidiaries; (c) Horizon or parties
designated or appointed by Horizon cease to be the only Manager(s) of Borrower; (d) any person or group of persons (within
the meaning of the Securities Exchange Act of 1934) shall have acquired beneficial ownership (within the meaning of Rule 13d-3
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934) of twenty percent (20%) or more
of the issued and outstanding shares of capital Stock of Horizon having the right to vote for the election of directors of Horizon
under ordinary circumstances; or (e) during any period of twelve consecutive calendar months, individuals who at the beginning
of such period constituted the board of directors of Horizon (together with any new directors whose election by the board of directors
of Horizon or whose nomination for election by the Stockholders of Horizon was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of such period or whose election or nomination for election
was previously so approved) cease for any reason other than death or disability to constitute a majority of the directors then
in office.

 

    	-10-

     

    

 

“Charged-Off
Note Receivable” means any Note Receivable (a) with respect to which any payment thereunder remains outstanding and
unpaid, in whole or in part, for more than ninety (90) days past the date it became due and payable according to the original face
and tenor of such Note Receivable or as extended in accordance with the Required Procedures, (b) with respect to which the
Account Debtor is subject to an Insolvency Proceeding or is generally unable to meet its financial obligations, (c) that has
been charged-off or deemed non-collectible by the Borrower or the Servicer, in accordance with the Credit Policy or (d) such Note
Receivable is an Eligible Second Lien Note Receivable where the senior lien lender has reduced or delayed any interest or principal
payments due Borrower.

 

“Charged-Off
Ratio” means, with respect to any Collection Period, the percentage equivalent of a fraction, calculated as of the end
of such Collection Period on the Determination Date occurring in the second calendar month following the end of such Collection
Period, (i) the numerator of which is equal to the aggregate outstanding principal amount of all Note Receivables that were or
became Charged-Off Note Receivables during such Collection Period and (ii) the denominator of which is equal to the sum of (A)
the aggregate outstanding principal amount of all Note Receivables as of the first day of such Collection Period and (B) the aggregate
outstanding principal balance of all Note Receivables as of the last day of such Collection Period divided by 2.

 

“Closing Certificates”
means certificates from:

 

(a)       an
Authorized Person of Borrower, dated as of the Restatement Effective Date, in form and substance satisfactory to Agent, certifying
the following: (i) each of the representations and warranties of Borrower contained in Section 5 of this Agreement is true and
correct in all respects (in the case of any representation or warranty qualified by materiality or Material Adverse Change) or
in all material respects (in the case of any representation or warranty not qualified by materiality or a Material Adverse Change)
on and as of the Restatement Effective Date (except to the extent any such representation or warranty was expressly made only as
of a specified date, in which case such representation or warranty was true and correct as of such date); (ii) no event has occurred
and is continuing as of the Restatement Effective Date that constitutes a Default or an Event of Default; (iii) after giving effect
to the incurrence of Indebtedness under this Agreement and the other transactions contemplated by this Agreement, Borrower will
be Solvent, (iv) all tax returns required to be filed by Borrower have been timely filed and all taxes upon Borrower or its properties,
assets, income, and franchises (including Real Property taxes, sales taxes, and payroll taxes) have been paid prior to delinquency,
except such taxes that are the subject of a Permitted Protest, or the nonpayment of which could not reasonably be expected to result
in a Material Adverse Change, and (v) attached thereto are true, correct and complete copies of the Required Procedures and the
Approved Forms;

 

    	-11-

     

    

 

(b)       an
Authorized Person of Horizon, dated as of the Restatement Effective Date, in form and substance satisfactory to Agent, certifying
the following: (i) all tax returns required to be filed by Horizon have been timely filed and all taxes upon Horizon or its
properties, assets, income, and franchises (including Real Property taxes, sales taxes, and payroll taxes) have been paid prior
to delinquency, except such taxes that are the subject of a Permitted Protest or the nonpayment of which could not reasonably be
expected to result in a Material Adverse Change, (ii) as of the Restatement Effective Date, Horizon has a Tangible Net Worth
of not less than $100,000,000; and (iii) attached thereto is true, correct and complete copies of Horizon’s unaudited
consolidated balance sheet, income statement and statement of cash flows covering Horizon’s and its Subsidiaries’ operations
for its fiscal quarter ended September 30, 2013 and the fiscal year-to date period ending thereon; and

 

(c)       an
Authorized Person of Horizon Management, dated as of the Restatement Effective Date, in form and substance satisfactory to Agent,
certifying the following: (i) as of the Restatement Effective Date, Horizon Management has a Tangible Net Worth of not less than
$500,000, and (ii) attached thereto is true, correct and complete copies of Horizon Management’s unaudited consolidated
balance sheet, income statement and statement of cash flows covering Horizon Management’s operations for its fiscal quarter
ended September 30, 2013 and the fiscal year-to date period ending thereon.

 

“Closing Date”
means July 14, 2011.

 

“Code”
means the New York Uniform Commercial Code, as in effect from time to time; provided, however, that in the event that, by reason
of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect to Agent’s Lien
on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of
New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies.

 

“Collateral”
means the Borrower Collateral and all other assets and interests in assets and proceeds thereof now owned or hereafter acquired
by Borrower in or upon which a Lien is granted or purported to be granted under any of the Loan Documents.

 

“Collateral Access
Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee,
or other Person in possession of, having a Lien upon, or having rights or interests in any Collateral, in each case, in form and
substance satisfactory to Agent.

 

    	-12-

     

    

 

“Collateral Custodian”
means U.S. Bank National Association, solely its capacity as the Person appointed as the collateral custodian for Agent pursuant
to the Sale and Servicing Agreement to hold the original Notes Receivable and certain other documents to be delivered under this
Agreement or the Sale and Servicing Agreement for Agent’s benefit, or any replacement for such Person acceptable to both
Borrower and Agent or otherwise appointed pursuant to the terms of the Sale and Servicing Agreement.

 

“Collateral Custodian
Fee Letter” has the meaning set forth in the Sale and Servicing Agreement, as amended from time to time with the consent
of the Agent, not to be unreasonably withheld.

 

“Collateral Custodian
Fees” means any fees payable to the Collateral Custodian in accordance with the Sale and Servicing Agreement and the Collateral
Custodian Fee Letter.

 

“Collection Account”
means an account in the name of Borrower, established at a Collection Account Bank, pledged to, and subject to a Control Agreement
in favor of Agent, to which all Collections payable to Borrower in connection with Notes Receivable owed by an Account Debtor shall
be deposited.

 

“Collection Account
Agreement” means the Control Agreement by and among Borrower, Agent and the Collection Account Bank with respect to the Collection
Account, in form and substance reasonably satisfactory to Agent, as modified, amended supplemented or restated, from time to time.

 

“Collection Account
Bank” means KeyBank, or such other commercial bank acceptable to Agent in its Permitted Discretion.

 

“Collection Account
Release” has the meaning set forth in Section 2.3(c)(ii).

 

“Collection Account
Release Notice” has the meaning set forth in Section 2.3(c)(ii).

 

“Collection Period”
means a period commencing on the first day of a calendar month and ending on the last day of such calendar month; provided, however,
that the initial Collection Period shall be the period commencing on the Restatement Effective Date and ending on the last day
of the calendar month in which the Restatement Effective Date occurs.

 

“Collections”
means all cash, checks, notes, instruments, and other items of payment (including proceeds of cash sales, rental proceeds, warrant
proceeds, and tax refund payments) and repayments and prepayments of principal, interest, fees, penalties, payments under policies
of title, hazard or other insurance, payments under supporting obligations and other payments paid with respect to or in connection
with Notes Receivable or Note Receivable Documents.

 

“Commercial Tort
Claim Assignment” has the meaning set forth in Section 4.4(b).

 

“Commitment”
means, with respect to each Lender, the aggregate commitment of such Lender to make Advances and, with respect to all Lenders,
the aggregate commitments of all Lenders to make Advances, in each case as such Dollar amounts are set forth beside such Lender’s
name under the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions
of Section 14.1.

 

    	-13-

     

    

 

“Commitment Termination
Date” means the third anniversary of the Amendment No. 2 Effective DateSeptember
30, 2021, as such date may be extended pursuant to Section 2.2(b).

 

“Compliance Certificate”
means a certificate substantially in the form of Exhibit C-1 executed and delivered to Agent by an Authorized Person of Borrower
or an Authorized Person of Horizon, as applicable.

 

“Concentration
Test Balance” means on any date (i) during the Ramp-Up Period, $75,000,000 and (ii) at any day thereafter, the Aggregate
Outstanding Note Receivable Balance on such date.

 

“Confidential
Information” has the meaning set forth in Section 17.9(a).

 

“Control Agreement”
means a control agreement, in form and substance satisfactory to Agent, executed and delivered by Borrower or one of its Subsidiaries,
Agent, and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account).

 

“Control Position
Note Receivable” means any Note Receivable with respect to which Horizon or one or more of its Affiliates either (i) individually
or collectively hold greater than 50% of the voting interests with regard to such Note Receivable and the related loan documents,
(ii) hold a minority blocking interest such that decisions with regard to such Note Receivable under the related loan documents
regarding material consents, amendments, waivers or approvals require Horizon and/or its Affiliates’ vote, or (iii) hold
rights to determine, direct and/or implement enforcement action in respect thereof.

 

“Credit Protection
Laws” means all federal, state and local laws in respect of the business of extending credit to borrowers, including without
limitation, the Truth in Lending Act (and Regulation Z promulgated thereunder), Equal Credit Opportunity Act, Fair Credit Reporting
Act, Fair Debt Collection Practices Act, Gramm-Leach-Bliley Financial Privacy Act, Real Estate Settlement Procedures Act, Home
Mortgage Disclosure Act, Fair Housing Act, antidiscrimination and fair lending laws, laws relating to servicing procedures or maximum
charges and rates of interest, and other similar laws, each to the extent applicable, and all applicable regulations in respect
of any of the foregoing.

 

“Daily Balance”
means, with respect to each day during the term of this Agreement, the aggregate outstanding amount of all Advances or Obligations,
as the context requires, at the end of such day.

 

“Data Tape”
means a tape or other electronic file on each Note Receivable and the collateral therefor as of the most recent month end in a
sortable format (which tape may be a roll forward of the Data Tape provided as of the previous month end indicating what data has
been added, deleted or otherwise changed), which shall include, but not be limited to, the Account Debtor(s), each Account Debtor’s
address (street, city, state and zip code), contact name and telephone number, related Account Debtors, industry sector, guarantors
(if any), equity sponsors (if any), credit rating, commitment amount, outstanding amount (advances and other usage), commencement
date, maturity date, participation status, contractual interest rate basis and margin (and any applicable floor), current interest
rate, payment type (interest only, principal plus interest, principal and interest, interest-only period, step-up amortization,
etc), payment method if other than charge to loan, payment frequency, last payment date, next payment date, days past due, collection
status (delinquent, defaulted, bankrupt, legal, etc.), current payment amount (interest and principal components if term loan),
collections received for the period, advances made for the period, each applicable financial covenant and compliance therewith,
modification history (number, type, date, result, etc.), and whether such Note Receivable is not approved, documented, managed
and otherwise in conformance with the Required Procedures.

 

    	-14-

     

    

 

“Default”
means an event or condition that, but for the giving of notice or the passage of time, or both, would constitute an Event of Default.

 

“Default Rate”
has the meaning set forth in Section 2.5(b).

 

“Defaulting Lender”
means any Lender that (a) has failed to fund any amounts required to be funded by it under the Agreement on the date that it is
required to do so under this Agreement, (b) notified the Borrower, Agent, or any Lender in writing that it does not intend to comply
with all or any portion of its funding obligations under this Agreement, (c) has made a public statement to the effect that it
does not intend to comply with its funding obligations under this Agreement or under other agreements generally (as reasonably
determined by Agent) under which it has committed to extend credit, (d) failed, within 1 Business Day after written request by
Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund any amounts required
to be funded by it under this Agreement, (e) otherwise failed to pay over to Agent or any other Lender any other amount required
to be paid by it under this Agreement on the date that it is required to do so under this Agreement, or (f) (i) becomes or is insolvent
or has a parent company that has become or is insolvent or (ii) becomes the subject of a bankruptcy or insolvency proceeding, or
has had a receiver, conservator, trustee, or custodian appointed for it, or has taken any action in furtherance of, or indicating
its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, or custodian appointed for it, or has taken
any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment.

 

“Defaulting Lender
Rate” means (a) for the first three (3) days from and after the date the relevant payment is due, the Base Rate, and (b)
thereafter, the interest rate then applicable to Advances (inclusive of the Applicable Margin).

 

“Delinquent Note
Receivable” means any Note Receivable with respect to which any payment thereunder remains outstanding and unpaid, in whole
or in part, for more than sixty (60) days, but not more than ninety (90) days, past the date it became due and payable according
to the original face and tenor of such Note Receivable or as extended in accordance with the Required Procedures.

 

“Deposit Account”
means any deposit account (as that term is defined in the Code).

 

    	-15-

     

    

 

“Designated Account”
means an account of Borrower maintained with Borrower’s Designated Account Bank, or such other deposit account of Borrower
(located within the United States) that has been designated as such, in writing, by Borrower to Agent.

 

“Designated Account
Bank” means KeyBank, or such other commercial bank (located within the United States), acceptable to Agent in its Permitted
Discretion, that has been designated as such, in writing, by Borrower to Agent.

 

“Determination
Date” means the last day of each calendar month or, if such day is not a Business Day, the next succeeding Business Day.

 

“Disbursement
Letter” means an instructional letter executed and delivered by Borrower to Agent regarding the extensions of credit to be
made on the Restatement Effective Date, the form and substance of which is satisfactory to Agent.

 

“Dollars”
or “$” means United States dollars.

 

“Early
Opt-In Election” means the occurrence of:

 

(1)       a
determination by the Agent that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include
language similar to that contained in Section 2.15, are being executed or amended, as applicable, to incorporate or adopt a new
benchmark interest rate to replace LIBOR; and

 

(2)       the
election by the Agent to declare that an Early Opt-in Election has occurred and the provision by the Agent of written notice of
such election to the Borrower and the Lenders.

 

“Early Termination
Event” means the occurrence of any of the following events:

 

(a) any Event of Default
shall occur and shall not have been waived;

 

(b) any Servicer Default
shall occur and shall not have been waived;

 

(c) as of any Determination
Date, the Interest Spread Test is not satisfied and was not satisfied as of the immediately preceding Determination Date;

 

(d) as of any Determination
Date, the Rolling Six-Month Portfolio Charged-Off Ratio shall exceed (i) 15.0% as a result of a charge-off affecting more than
five Account Debtors or (ii) 20.0%;

 

(e) as of any Determination
Date, the Rolling Six-Month Charged-Off Ratio shall exceed 15.0% as a result of a charge-off affecting more than one Account Debtor;

 

(f) the Servicer or
Horizon shall fail to pay any Indebtedness as and when due, including upon maturity or acceleration thereof, or otherwise; or

 

(g) the Asset Quality
Test shall fail to be satisfied, and such failure shall continue for a period of forty-five (45) consecutive days or more.

 

    	-16-

     

    

 

“EBITDA”
means, with respect to any Person for any fiscal period, such Person’s consolidated net earnings (or loss), minus to the
extent included in determining net earnings, extraordinary gains, plus interest expense, plus income taxes, plus depreciation and
amortization, in each case as determined for such period and in each case not otherwise defined herein as determined in accordance
with GAAP.

 

“Eligible Assignee”
has the meaning set forth in Section 2.13.

 

“Eligible Notes
Receivable” means those Notes Receivable that comply with each of the representations and warranties respecting Eligible
Notes Receivable made in the Loan Documents, and that are not excluded as wholly or partially ineligible by virtue of one or more
of the excluding criteria set forth below. Eligible Notes Receivable shall not include all or any portion of a Note Receivable
(unless specifically determined to be eligible by Agent following a review thereof on a case-by-case basis) unless, in each case:

 

(a)       such
Note Receivable is approved, documented, managed and otherwise in conformance with the Required Procedures;

 

(b)       such
Note Receivable shall not have been subject to a Material Modification, unless the Agent has provided its prior written consent;
provided, however that such Note Receivable may have been subject to a Material Modification in accordance with the Required Procedures
not more than one time during any 12-month period;

 

(c)       if,
at the time of its initial funding, such Note Receivable represents a loan made to an Account Debtor in which venture capital firms,
private equity groups or other institutional investors meeting Borrower’s underwriting requirements under the Required Procedures
in effect upon Borrower’s acquisition thereof have an aggregate equity ownership of at least ten percent (10%) on a fully-diluted
basis; provided, however, that such threshold shall not apply if the Account Debtor’s Stock is traded on a major United States
stock exchange;

 

(d)       such
Note Receivable is not a Delinquent Note Receivable or a Charged-Off Note Receivable, unless approved by Agent in its sole discretion;

 

(e)       such
Note Receivable has an original term to maturity of not more than sixty (60) months, provided, however, that if such Note Receivable
is a Revolving Note Receivable, the revolving period is not more than the lesser of (i) thirty-six (36) months and (ii) the maturity
date of any other obligation for borrowed money of the Account Debtor provided by Horizon;

 

(f)       the
Account Debtor in respect thereof is generally able to meet its financial obligations, and shall not have gone out of business
or be subject to an Insolvency Proceeding, and such Note Receivable is not a “debtor-in-possession” loan;

 

(g)       such
Note Receivable is evidenced by the Approved Forms, or other documentation acceptable to Agent in its Permitted Discretion;

 

(h)       such
Note Receivable represents a valid and binding obligation owed to Borrower and enforceable in accordance with its terms for the
amount outstanding thereof, except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights;

 

    	-17-

     

    

 

(i)       such
Note Receivable was originated by Horizon or an Approved Third-Party Originator;

 

(j)       Borrower
owns the full and undivided interest in such Note Receivable; provided, that a Note Receivable representing a purchased pro rata
participation in a loan originated by an Approved Third-Party Originator will not be ineligible solely by reason of a failure to
satisfy this clause (j) to the extent of Borrower’s purchased interest therein so long as (A) such Note Receivable
has been underwritten by Borrower and adheres to the underwriting guidelines under the Required Procedures, (B) Borrower’s
interest in such Note Receivable does not exceed the retained interest of the Approved Third-Party Originator, (C) Borrower’s
interest in such Note Receivable is acquired and subject to a participation agreement that is materially consistent with the Required
Procedures or otherwise acceptable to Agent in its Permitted Discretion, and (D) such Note Receivable is a First Lien Note Receivable
or an Eligible Second Lien Note Receivable (a purchased participation meeting each of such tests being an “Eligible Purchased
Participation”);

 

(k)       such
Note Receivable represents a loan made as part of a syndicated or other co-lending arrangement with one or more third-party lenders,
so long as (i) such syndicated or co-lending arrangement is subject to intercreditor or other agreements consistent with the
Required Procedures and (ii) each such other lender is an Approved Third-Party Lender (a syndicated or other co-lending arrangement
meeting each of such tests being an “Eligible Co-Lending Arrangement”);

 

(l)       such
Note Receivable has been originated in accordance with and complies in all material respects with, all applicable federal, state
and local laws and regulations, including applicable usury and Credit Protection Laws;

 

(m)       such
Note Receivable requires (i) current cash payments of interest on at least a quarterly basis, (ii) principal amortization on Term
Note Receivables paid, following any applicable interest only period, at least quarterly and to a zero balance upon
the payment of the regularly scheduled payment due at maturity; provided, that, notwithstanding the foregoing, not
more than 15% of the Aggregate Outstanding Note Receivable Balance may include principal due at the maturity of such Term Note
Receivables (“Balloon Principal”), but, the Aggregate
Outstanding Note Receivable Balance shall exclude, for each Term Note Receivable, the amount, if any, by which the Balloon
Principal principal due at the maturity of any Term Note Receivable
exceeds 25% of the original principal amount of such Term Note Receivable and (iii) all principal of any Revolving Note Receivables
to be due at the Revolving Note Receivables’ respective maturity date;

 

(n)       such
Note Receivable, if it is a Term Note Receivable, has scheduled principal payments beginning not later than twenty-fourthirty-six
(2436) months after its origination;

 

    	-18-

     

    

 

(o)       such
Note Receivable is a secured Note Receivable and is either a First Lien Note Receivable, an Eligible Second Lien Note Receivable
or a Revolving Note Receivable;

 

(p)       such
Note Receivable shall, as of the related Funding Date, have been assigned an internal credit rating in accordance with Servicer’s
Required Procedures;

 

(q)       the
information with respect to such Note Receivable set forth in the Note Receivable data tape provided to Agent as of the Restatement
Effective Date and to the Backup Servicer each month shall be true and correct in all material respects;

 

(r)       all
of the required documentation with respect to such Note Receivable shall have been delivered to the Collateral Custodian in conformity
with the Loan Documents;

 

(s)       the
primary Account Debtor, or the owner of the majority of the collateral or the producer of the majority of the cash flow that is
the primary basis for the credit decision to make the loan evidenced by such Note Receivable (i) is organized under the laws of
the United States or any state thereof, or (ii) is an OUS Organized Debtor;

 

(t)       such
Note Receivable is payable in Dollars;

 

(u)       the
Account Debtor with respect to such Note Receivable is not (i) an Affiliate of Horizon, Horizon Management, or Borrower, (ii) a
holder of five percent (5%) or more of the Stock of Horizon, Horizon Management, or Borrower, (iii) an employee or agent of
Horizon, Horizon Management, or Borrower, (iv) a member, employee or agent of any Affiliate of Horizon, Horizon Management,
or Borrower, or (v) a member of the family of any of the foregoing;

 

(v)       such
Note Receivable is owed by an Account Debtor that (i) was rated “3” or “4” in accordance with the
Required Procedures when acquired by Borrower, or (ii) is not rated lower than “2” in accordance with the Required
Procedures at any other time; provided, however, that such Note Receivable shall only be ineligible pursuant to this clause (ii)
during any period that Account Debtor is rated lower than “2” in accordance with the Required Procedures;

 

(w)       such
Note Receivable does not represent a Real Estate Loan;

 

(x)       the
Account Debtor with respect to such Note Receivable is in a Target Industry, unless otherwise approved by Agent in its sole discretion;

 

(y)       the
Account Debtor with respect to such Note Receivable is not (i) the United States or any department, agency, or instrumentality
of the United States, (ii) any state of the United States, or (iii) the government of any foreign country or sovereign state, or
of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation,
or other instrumentality thereof;

 

(z)       the
Borrower shall have good and indefeasible title to, and be the sole owner of, such Note Receivable, subject to no liens, charges,
mortgages, encumbrances or rights of others and has, as applicable, a perfected first or second security interest in the collateral
(including a real estate mortgage if applicable) of such Note Receivable;

 

    	-19-

     

    

 

(aa)     the note in respect
of such Note Receivable and the security agreement pursuant to which collateral was pledged in respect of such Note Receivable
shall not have been impaired, altered or modified in any material respect, except in accordance with the Required Procedures by
a written instrument which has been recorded, if necessary, to protect the interest of the Agent and the Borrower and which written
instrument shall have been delivered to the Collateral Custodian;

 

(bb)    there shall be no
obligation on the part of the Borrower or any other party (except for any Guarantor of a Note Receivable) to make any payments
in respect of such Note Receivable in addition to those made by the applicable Account Debtor;

 

(cc)     there shall not
be any statement, report or other document signed by Horizon constituting a part of the applicable file in respect of such Note
Receivable which contains any untrue statement of a material fact or omits to state a material fact in respect of such Note Receivable;

 

(dd)    the Borrower, and,
to the Borrower’s knowledge, any other parties which have an interest in such Note Receivable, whether as mortgagee, assignee,
pledgee or otherwise, shall be in compliance in all material respects with any and all applicable licensing requirements of the
laws of the state wherein any collateral is located, and with respect to any applicable federal laws;

 

(ee)     as of the applicable
Funding Date, there is not any default, breach, violation or event of acceleration existing under such Note Receivable or any event
which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration;

 

(ff)      as of the applicable
Funding Date, any party to such Note Receivable and any related mortgage or other document pursuant to which collateral was pledged
shall have had legal capacity to execute the Note Receivable or any such mortgage or other document and such Note Receivable and
mortgage or other document shall have been duly and properly executed by such parties;

 

(gg)    such Note Receivable
is assignable without restrictions;

 

(hh)    such Note Receivable
is not subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, or any assertion thereof
by the related Account Debtor, nor will the operation of any of the terms of such Note Receivable or any related Note Receivable
Document, or the exercise of any right thereunder, including, without limitation, remedies after default, render either the Note
Receivable or any related Note Receivable Document unenforceable in whole or in part; nor is the Note Receivable subject to any
prepayment in an aggregate amount less than the remaining principal balance of the Note Receivable plus all accrued and unpaid
interest;

 

(ii)       there
is only one originally signed note evidencing such Note Receivable and it has been delivered to the Collateral Custodian and such
note has been duly authorized and that is in full force and effect and, together with the related Note Receivable Documents, constitutes
the legal, valid and binding obligation of the Account Debtor of such Note Receivable to pay the stated amount of the Note Receivable
and interest thereon; or the Note Receivable is a “noteless” loan documented and delivered to the Collateral Custodian
in a manner satisfactory to the Agent;

 

    	-20-

     

    

 

(jj)       the Borrower
has caused and will cause to be performed any and all acts reasonably required to be performed to preserve the rights and remedies
of the Lender in any insurance policies applicable to the Note Receivable and any Related Property with respect to the Note Receivable
is insured in accordance with the Required Procedures;

 

(kk)     if the Note Receivable
is made to an Account Debtor which holds any other loans originated by Horizon or an Affiliate thereof, whether such other loan
is funded hereunder or through another lender, such Note Receivable contains standard cross-collateralization and cross-default
provisions with respect to such other loan;

 

(ll)       the Note Receivable,
together with the Note Receivable Documents related thereto, is a “general intangible”, an “instrument”,
an “account”, or “chattel paper” within the meaning of the UCC of all jurisdictions that govern the perfection
of the security interest granted therein;

 

(mm)   such Note Receivable
has been assigned an NAICS code correlated with its Target Industry;

 

(nn)    such Note Receivable
is not convertible into stock, warrants, or interests treated as equity for United States federal income tax purposes;

 

(oo)    such
Note Receivable does not provide for payments that are subject to withholding tax, unless the Account Debtor is required to make
 “gross-up” payments that cover the full amount of such withholding tax on an after-tax basis; and

 

(pp)    such Note Receivable
is subject to a valid and perfected first-priority Lien of Agent.;
and

 

(qq)     based
on the Servicer’s most recent quarterly credit analysis and taking into account the anticipated positive or negative cash
flow of the Account Debtor in respect of such Note Receivable, such Account Debtor has sufficient unrestricted cash on hand, committed
availability under revolving lines of credit or committed equity to allow such Account Debtor to service at least three (3) months
of operations, provided that such credit analysis is in accordance with the Servicer’s Credit and Collection Policy.

 

“Eligible Second
Lien Note Receivable” means a Note Receivable (i) subordinate in right of payment to any other obligation for borrowed money
of the Account Debtor and (ii) with respect to which the Borrower’s Liens are not first priority Liens on property of the
Account Debtor in accordance with the Required Procedures solely because of the existence of a Lien to secure a receivables-based
or formula-based revolving credit facility (including all obligations and liabilities outstanding thereunder or incurred in connection
therewith, including in connection with overadvances, cash management services, letters of credit, or overdraft arrangements) provided
to the Account Debtor by a third-party lender that is not an Affiliate of Borrower; provided that (x) the senior revolving
lender is an Approved Senior Revolving Lender, (y) the senior Lien is subject to a subordination agreement or an intercreditor
agreement between Borrower and the senior revolving lender in accordance with the Required Procedures, and (z) the
combined amount of such Note Receivable and the senior revolving credit facility would not create a combined loan to value ratio
(determined in accordance with the Required Procedures)LTV of the Account
Debtor is not greater than forty percent (4050%).

 

    	-21-

     

    

 

“Eligible Transferee”
means (a) a commercial bank organized under the laws of the United States, or any state thereof, and having total assets in
excess of $500,000,000, (b) a commercial bank organized under the laws of any other country which is a member of the Organization
for Economic Cooperation and Development or a political subdivision of any such country and which has total assets in excess of
$500,000,000, provided that such bank is acting through a branch or agency located in the United States, (c) a finance company,
insurance company, or other financial institution or fund that is engaged in making, purchasing, or otherwise investing in commercial
loans in the ordinary course of its business and having (together with its Affiliates) total assets in excess of $500,000,000,
(d) any Affiliate (other than individuals) of a pre-existing Lender, (e) so long as no Default or Event of Default has
occurred and is continuing, any other Person approved by Agent and Borrower (which approval of Borrower shall not be unreasonably
withheld, delayed, or conditioned and, if not granted or rejected within five (5) Business Days of notice to Borrower will be deemed
to have been granted), and (f) during the continuation of a Default or an Event of Default, any other Person approved by Agent.

 

“Environmental
Actions” means any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or
administrative proceeding, judgment, letter, or other communication from any Governmental Authority, or any third party involving
violations of Environmental Laws or releases of Hazardous Materials from (a) any assets, properties, or businesses of Borrower,
its Subsidiaries, or any of their predecessors in interest, (b) from adjoining properties or businesses, or (c) from or onto any
facilities which received Hazardous Materials generated by Borrower, its Subsidiaries, or any of their predecessors in interest.

 

“Environmental
Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding
and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each
case as amended, or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent
decree or judgment, in each case, to the extent binding on Borrower, relating to the environment, the effect of the environment
on employee health or safety, or Hazardous Materials, in each case as amended from time to time.

 

“Environmental
Liabilities” means all liabilities, monetary obligations, losses, damages, punitive damages, consequential damages, treble
damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and
costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or
demand, or Remedial Actions required, by any Governmental Authority or any third party, and which relate to any Environmental Action.

 

“Environmental
Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities.

 

    	-22-

     

    

 

“Equipment”
means all equipment (as that term is defined in the Code), including machinery, machine tools, motors, furniture, furnishings,
fixtures, vehicles (including motor vehicles), computer hardware, tools, parts and goods (other than consumer goods, farm products,
or Inventory), wherever located, including all attachments, accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto.

 

“ERISA Affiliate”
means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as the employees of Borrower
under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer
as the employees of Borrower under IRC Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC,
any organization subject to ERISA that is a member of an affiliated service group of which Borrower or any of its Subsidiaries
are a member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person
subject to ERISA that is a party to an arrangement with Borrower or any of its Subsidiaries and whose employees are aggregated
with the employees of Borrower under IRC Section 414(o).

 

“Eurodollar Disruption
Event” means, with respect to any Advance as to which Interest accrues or is to accrue at a rate based upon the LIBOR Rate,
any of the following: (a) a determination by a Lender that it would be contrary to law or to the directive of any central bank
or other governmental authority (whether or not having the force of law) to obtain Dollars in the London interbank market to make,
fund or maintain any Advance; (b) the inability of any Lender to obtain timely information for purposes of determining the LIBOR
Rate; (c) a determination by a Lender that the rate at which deposits of Dollars are being offered to such Lender in the London
interbank market does not accurately reflect the cost to such Lender of making, funding or maintaining any Advance; or (d) the
inability of a Lender to obtain Dollars in the London interbank market to make, fund or maintain any Advance.

 

“Event of Default”
has the meaning set forth in Section 8.

 

“Excess Concentration
Amount” means on any date of determination during the Revolving Credit Availability Period, the sum of, without duplication:

 

(a)        the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
for which the applicable Account Debtors are domiciled (x) in the single largest State exceeds sixty percent (60%) of the Concentration
Test Balance; (y) in the second largest State exceeds thirty percent (30%) of the Concentration Test Balance; and (z) in any single
State other than the two largest States exceeds twenty-five percent (25%) of the Concentration Test Balance;;

 

(b)        the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
for which the applicable Account Debtors in the same Target Industry segment exceeds the applicable Target Industry Percentage
Limit for such Industry segment of the Concentration Test Balance on such date;

 

    	-23-

     

    

 

(c)       at
any time following the Ramp-Up Period, the aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note
Receivables included as part of the Collateral for which the applicable Account Debtors in the Target Industry segments of Life
Science and Healthcare Information and Services exceeds 75% of the Concentration Test Balance on such date;

 

(d)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables of the single Account Debtor
having the largest aggregate Outstanding Note Receivable Balance exceeds the lower of $15,000,000 or 15% of the Concentration Test
Balance on such date;

 

(e)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables of the single Account Debtor
having the second largest aggregate Outstanding Note Receivable Balance exceeds the lower of $15,000,000 or 12% of the Concentration
Test Balance on such date;

 

(f)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables of the five Account Debtors
having the five largest aggregate Outstanding Note Receivable Balances exceeds 50% of the Concentration Test Balance on such date;

 

(g)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables of the ten Account Debtors
having the ten largest aggregate Outstanding Note Receivable Balances exceeds (i) 90% of the Aggregate Outstanding Note Receivable
Balance (during any period when the Aggregate Outstanding Note Receivable Balance is less than or equal to $100,000,000), (ii)
85% of the Aggregate Outstanding Note Receivable Balance (during any period when the Aggregate Outstanding Note Receivable Balance
is more than $100,000,000 and less than or equal to $150,000,000), (iii) 75% of the Aggregate Outstanding Note Receivable Balance
(during any period when the Aggregate Outstanding Note Receivable Balance is more than $150,000,000 and less than or equal to $200,000,000),
(iv) 55% of the Aggregate Outstanding Note Receivable Balance (during any period when the Aggregate Outstanding Note Receivable
Balance exceeds $200,000,000);

 

(h)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables which are Eligible Second Lien
Note Receivables exceed 70% of the Concentration Test Balance on such date;

 

(i)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables which do not pay interest and/or
principal at least monthly exceeds 25% of the Concentration Test Balance on such date;

 

(j)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
that are not Control Position Note Receivables exceeds 20% of the Concentration Test Balance;

 

(k)        the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
that (i) have been subject to a Material Modification or (ii) are out of covenant compliance under the related Note Receivable
Documents but which are not Charged-Off Note Receivables or Delinquent Note Receivables exceeds 10% of the Concentration Test Balance;

 

    	-24-

     

    

 

(l)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
which are Rehabilitated Note Receivables exceeds 35% of the Concentration Test Balance;

 

(m)        the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables which were originated as Eligible
Purchased Participations exceeds 10% of the Concentration Test Balance;

 

(n)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
which are Revolving Note Receivables exceeds 25% of the Concentration Test Balance;

 

(o)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
for which the applicable Account Debtors are owned by a single Person that is a venture capital firm, private equity group or other
institutional investor exceeds 40% of the Concentration Test Balance;

 

(p)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral
for which the applicable Account Debtors are owned by a shared common Lead Investor exceeds 25% of the Concentration Test Balance;

 

(q)        the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables which are not in the “Late
Stage” (as designated in accordance with the Required Procedures) exceeds 80% of the Concentration Test Balance;

 

(r)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables which are in the “Early
Stage” (as designated in accordance with the Required Procedures) exceeds 35% of the Concentration Test Balance;

 

(s)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables having a principal
balloon payment atdue at the maturity of
any Term Note Receivable in excess of twenty-five percent15%
of the original principal amount of such Term Note Receivable (excluding any portion
of such Outstanding Note Receivable Balances that was excluded pursuant to clause (m)(ii) of the definition of “Eligible
Notes Receivable”) exceeds 15% of the Concentration Test Balance; and

 

(t)       aggregate
amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables included as part of the Collateral the
Account Debtors of which are OUS Organized Debtors exceeds 20% of the Concentration Test Balance.;
and

 

(u)       the
aggregate amount by which the Outstanding Note Receivable Balances of all Eligible Note Receivables with scheduled principal payments
beginning later than twenty-four (24) months after such date of determination exceeds 25% of the Concentration Test Balance.

 

    	-25-

     

    

 

“Exchange Act”
means the Securities Exchange Act of 1934, as in effect from time to time.

 

“Excluded Taxes”
means, with respect to Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of
Borrower hereunder or under any other Loan Document, (a) any Taxes imposed on or measured by its net income (however denominated)
or overall gross income (including branch profits), franchise (and similar) Taxes imposed on it in lieu of net income taxes as
a result of such recipient being organized or resident in, maintaining a lending office in, doing business in or having another
present or former connection with, such jurisdiction (other than a business or connection deemed to arise solely by virtue of the
Loan Documents or any transactions occurring pursuant thereto), (b) any United States federal withholding tax that is imposed pursuant
to any applicable law in effect at the time such recipient becomes a party to this Agreement, changes its applicable lending office
or changes its place of organization, except to the extent such Lender’s assignor (if any) was entitled, immediately prior
to the assignment, or such Lender was entitled, immediately prior to the change in lending office or change of place of organization,
to payments in respect of United States federal withholding tax under Section 16.11; (c) any Taxes attributable to a recipient’s
failure to comply with Section 16.11(c), (d) any United States federal taxes imposed under Sections 1471 through 1474 of the IRC,
or any amended version or successor provision that is substantively comparable thereto, and, in each case, any regulations promulgated
thereunder and any interpretation or other guidance issued in connection therewith, or (e) any U.S. federal backup withholding
taxes imposed under Section 3406 of the IRC.

 

“Facility
Amount” means, at any time and as reduced or increased from time to time, pursuant to the terms of this Agreement the
aggregate dollar amount of Commitments of all the Lenders; provided, however, that on the Termination Date and on
each date thereafter, the Facility Amount shall be equal to the outstanding Advances as of such date. As of the Amendment No. 3
Effective Date, the Facility Amount is $125,000,000. The Facility Amount may be increased up to a total of $150,000,000 in accordance
with the provisions of Section 2.13.

 

“Fair Market
Value” has the meaning set forth in the Sale and Servicing Agreement.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.

 

“Federal
Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

“Fee Letter”
means that certain Fee Letter, dated as of even date herewith, between Borrower and Agent, in form and substance satisfactory to
Agent.

 

“Federal Funds
Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to (a) the weighted
average of the federal funds rates as quoted by KeyBank and confirmed in Federal Reserve Board Statistical Release H. 15 (519)
or any successor or substitute publication selected by KeyBank (or, if such day is not a Business Day, for the next preceding Business
Day); or (b) if, for any reason, such rate is not available on any day, the rate determined, in the sole opinion of KeyBank, to
be the rate at which federal funds are being offered for sale in the national federal funds market at 9:00 a.m. (New York City
time).

 

    	-26-

     

    

 

“FEIN”
means Federal Employer Identification Number.

 

“First Lien Note
Receivable” means a Term Note Receivable that is (a) not subordinate in right of payment to any other obligation for borrowed
money of the Account Debtor, (b) is secured by a valid first priority perfected security interest or lien on specified collateral
securing the obligations of the Account Debtor and (c) LTV of such loanthe
Account Debtor is not greater than 40% when comparing the (i) aggregate principal balance of such Term
Note Receivable plus all other outstanding balances of loans of such Account Debtor pari passu to the Term Note Receivable
to the (ii) Account Debtor value, determined in accordance with Servicer’s Required Procedures.50%.

 

“FMV” means,
with respect to any Note Receivable, on any date of determination, the Fair Market Value of such Note Receivable.

 

“Foreign Lender”
means any Lender that is not a United States person within the meaning of IRC section 7701(a)(30).

 

“Funding Date”
means the date on which an Advance is made by the Lenders.

 

“Funding Request”
has the meaning set forth in Section 2.2(a).

 

“GAAP”
means generally accepted accounting principles as in effect from time to time in the United States, consistently applied; provided,
however, that solely for purposes of calculating Tangible Net Worth as required hereunder or pursuant to the Sale and Servicing
Agreement, such calculations relative to liabilities shall be made without giving effect to Statement of Financial Accounting Standards
No. 159.

 

“General Intangibles”
means all general intangibles (as that term is defined in the Code), including payment intangibles, contract rights, rights to
payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names,
trade secrets, trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders, customer lists, monies due or recoverable
from pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, infringement claims,
computer programs, information contained on computer disks or tapes, software, literature, reports, catalogs, insurance premium
rebates, tax refunds, and tax refund claims, and any other personal property other than Accounts, commercial tort claims, Deposit
Accounts, goods, Investment Property, and Negotiable Collateral.

 

“Governing Documents”
means, with respect to any Person, the certificate or articles of incorporation, formation or organization, bylaws, partnership
agreement, operating or limited liability company agreement, or other organizational documents of such Person.

 

“Governmental
Authority” means any federal, state, local, or other governmental or administrative body, instrumentality, board, department,
or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving
panel or body.

 

“Guarantor”
means any Person that executes a Guaranty with respect to the Obligations.

 

    	-27-

     

    

 

“Guaranty”
means any guaranty executed and delivered by a Guarantor in favor of Agent, for the benefit of the Lender Group and the Bank Product
Providers, in form and substance satisfactory to Agent.

 

“Hazardous Materials”
means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations
as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,”
or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum
derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated
with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances
or explosives or any radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or dielectric
fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million.

 

“Hedge Agreement”
means each agreement between the Borrower and a Hedge Provider that governs one or more Hedge Transactions entered into pursuant
to Section 6.19, which agreement shall consist of a “Master Agreement” in a form published by the International Swaps
and Derivatives Association, Inc., together with a “Schedule” thereto substantially in a form as the Agent shall approve
in writing, and each “Confirmation” thereunder confirming the specific terms of each such Hedge Transaction.

 

“Hedge Breakage
Costs” means, for any Hedge Transaction, any amount payable by Borrower for the early termination of that Hedge Transaction
or any portion thereof.

 

“Hedge Collateral”
is defined in Section 6.19(b).

 

“Hedge Obligations”
means any and all obligations or liabilities, whether absolute or contingent, due or to become due, now existing or hereafter arising,
of Borrower arising under, owing pursuant to, or existing in respect of Hedge Agreements entered into with one or more of the Bank
Product Providers.

 

“Hedge Provider”
means KeyBank or any entity that (a) on the date of entering into any Hedge Transaction has been approved in writing by the Agent
(which approval shall not be unreasonably withheld), and (ii) has a short-term unsecured debt rating of not less than A-1 by S&P
and not less than P-1 by Moody’s, and (b) enters into a Hedge Agreement that (i) consents to the assignment of the Borrower’s
rights under the Hedge Agreement to the Agent pursuant to Section 6.19(b) and (ii) agrees that in the event that S&P or Moody’s
reduces its short-term unsecured debt rating below A-1 or P-1, respectively, it shall transfer its rights and obligations under
each Hedging Transaction to another entity that meets the requirements of clause (a) and (b) hereof or make other arrangements
acceptable to the Agent and the Rating Agencies.

 

“Hedge Transaction”
means each interest rate cap transaction between the Borrower and a Hedge Provider that is entered into pursuant to Section 6.19
and is governed by a Hedge Agreement.

 

“Holdout Lender”
has the meaning set forth in Section 15.2(a).

 

    	-28-

     

    

 

“Horizon”
means Horizon Technology Finance Corporation, a Delaware corporation.

 

“Horizon Group
Managed Loans” means all loans that are managed or serviced by Horizon or Horizon Management for Horizon or any of Horizon’s
Subsidiaries or Affiliates (including the Notes Receivable).

 

“Horizon Management”
means Horizon Technology Finance Management LLC, a Delaware limited liability company.

 

“Indebtedness”
as to any Person means (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds,
debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers
acceptances, or other financial products, (c) all obligations of such Person as a lessee under Capital Leases, (d) all obligations
or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether such obligation or liability is
assumed, (e) all obligations of such Person to pay the deferred purchase price of assets (other than trade payables incurred in
the ordinary course of business and repayable in accordance with customary trade practices), (f) all obligations of such Person
owing under Hedge Agreements (which amount shall be calculated based on the amount that would be payable by such Person if the
Hedge Agreement were terminated on the date of determination), and (g) any obligation of such Person guaranteeing or intended to
guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any
other Person that constitutes Indebtedness under any of clauses (a) through (f) above. For purposes of this definition, (i) the
amount of any Indebtedness represented by a guaranty or other similar instrument shall be the lesser of the principal amount of
the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant
to the terms of the instrument embodying such Indebtedness, and (ii) the amount of any Indebtedness described in clause (d) above
shall be the lower of the amount of the obligation and the fair market value of the assets of such Person securing such obligation.

 

“Indemnified
Liabilities” has the meaning set forth in Section 11.3.

 

“Indemnified
Person” has the meaning set forth in Section 11.3.

 

“Indemnity Reserve”
has the meaning set forth in Section 2.1(b).

 

“Insolvency Proceeding”
means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other state or
federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions
generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

 

“Intangible Assets”
means, with respect to any Person, that portion of the book value of all of such Person’s assets that would be treated as
intangibles under GAAP.

 

“Interest Collections”
means any and all Collections representing (a) payments of interest, prepayment fees, “end of term” payments, late
payment charges and any other fees and charges related to any Note Receivable, and its related cost of carry by the Borrower; and
(b) recoveries of charged off interest on any Note Receivable.

 

    	-29-

     

    

 

“Interest Period”
means a period commencing on the first day of a calendar month and ending on the last day of such calendar month; provided, however,
that the initial Interest Period shall be the period commencing on the Restatement Effective Date and ending on the last day of
the calendar month in which the Restatement Effective Date occurs.

 

“Interest Rate”
means for any Interest Period and any Advance, a rate per annum equal to the LIBOR Rate plus the Applicable Margin; provided,
however, that the Interest Rate shall be the Base Rate plus the Applicable Margin if a Eurodollar Disruption Event occurs.

 

“Interest Reset
Date” means the Business Day which is two Business Days prior to the first day of each Interest Period.

 

“Interest Spread
Test” means a test as of any date on which Advances are outstanding, with respect to any Collection Period, calculated as
of the end of such Collection Period on the Determination Date occurring in the second calendar month following the end of such
Collection Period, which shall be satisfied if ([A-B]/C) x 12 exceeds 4.0% on a rolling three Collection Period basis (provided,
that for the first Collection Period, such test shall be calculated by reference to the calculation for such Collection Period
only, and for the second Collection Period, shall be calculated by reference to the calculation for the first two Collection Periods)
where:

 

A       =       the amount
of Interest Collections on the Aggregate Outstanding Note Receivable Balance during such Collection Period;

 

B       =       the sum for
such Collection Period of (i) Carrying Costs, (ii) the Servicing Fee, (iii) the Agent’s Fee, (iv) the Collateral Custodian
Fee and (v) the Backup Servicer Fee; and

 

C       =       the average
outstanding Advances during such Collection Period.

 

“Inventory”
means inventory (as that term is defined in the Code).

 

“Investment”
means, with respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of loans,
guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and employees
of such Person made in the ordinary course of business, and (b) bona fide Accounts arising in the ordinary course of business consistent
with past practice), purchases or other acquisitions of Indebtedness, Stock or all or substantially all of the assets of such Person
(or of any division or business line of such other Person), and any other items that are or would be classified as investments
on a balance sheet prepared in accordance with GAAP.

 

“Investment Property”
means investment property (as that term is defined in the Code).

 

“IRC” means
the Internal Revenue Code of 1986, as in effect from time to time.

 

“KEF” means
Key Equipment Finance Inc., a Michigan corporation and its successors and assigns.

 

“KeyBank”
means Key BankKeyBank National Association, a
national banking association, and its successors and assigns.

 

    	-30-

     

    

 

“Lead Investor”
means, at any time with respect to any Account Debtor, the venture capital firm or other institutional investor with the greatest
equity ownership in such Account Debtor.

 

“Lender”
has the meaning set forth in the preamble to the Agreement and shall also include any other Person made a party to this Agreement
pursuant to the provisions of Section 14.1, and “Lenders” means each of the Lenders or any one or more of them.

 

“Lender Group”
means each of the Lenders and Agent, or any one or more of them.

 

“Lender Group
Expenses” means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by Horizon or Borrower
under any of the Loan Documents that are paid, advanced, or incurred by the Lender Group, (b) out-of-pocket fees or charges paid
or incurred by Agent in connection with the Lender Group’s transactions with Horizon or Borrower under any of the Loan Documents,
including, fees or charges for photocopying, notarization, couriers and messengers, telecommunication, public record searches (including
tax lien, litigation, and UCC searches and including searches with the patent and trademark office, the copyright office, or the
department of motor vehicles), filing, recording, publication, appraisal (including periodic collateral appraisals or business
valuations to the extent of the fees and charges (and up to the amount of any limitation) contained in this Agreement, the Agent
Fee Letter or the Fee Letter), real estate surveys, real estate title policies and endorsements, and environmental audits, (c)
Agent's customary fees and charges (as adjusted from time to time) with respect to the disbursement of funds (or the receipt of
funds) to or for the account of Borrower (whether by wire transfer or otherwise), together with any out-of-pocket costs and expenses
incurred in connection therewith, (d) out-of-pocket charges paid or incurred by Agent resulting from the dishonor of checks payable
by or to Borrower or any of its Affiliates, (e) reasonable out-of-pocket costs and expenses paid or incurred by the Lender
Group to correct any default or enforce any provision of the Loan Documents, or during the continuance of an Event of Default,
in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to
sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (f) reasonable out-of-pocket audit
fees and expenses (including travel, meals, and lodging) of Agent related to any inspections or audits to the extent of the fees
and charges (and up to the amount of any limitation) contained in this Agreement, the Agent Fee Letter or the Fee Letter, (g) reasonable
out-of-pocket costs and expenses of third party claims or any other suit paid or incurred by the Lender Group in enforcing or defending
the Loan Documents or in connection with the transactions contemplated by the Loan Documents or the Lender Group’s relationship
with Horizon, Borrower or any of its Subsidiaries, (h) Agent’s reasonable costs and expenses (including reasonable attorneys
fees) incurred in advising, structuring, drafting, reviewing, administering (including travel, meals, and lodging), syndicating
or amending the Loan Documents, and (i) Agent’s and each Lender’s reasonable costs and expenses (including reasonable
attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys,
accountants, consultants, and other advisors fees and expenses incurred in connection with a “workout,” a “restructuring,”
or an Insolvency Proceeding concerning Horizon, Borrower or any of its Subsidiaries or in exercising rights or remedies under the
Loan Documents), or defending the Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning
the Collateral.

 

“Lender Group
Representatives” has the meaning set forth in Section 17.9(a).

 

    	-31-

     

    

 

“Lender-Related
Person” means, with respect to any Lender, such Lender, together with such Lender’s Affiliates, and the officers, directors,
employees, and agents of such Lender.

 

“LIBOR Rate”
means the greater of (a) three-quarters of aone
percent (0.751.00%) per annum, and (b) an interest
rate per annum (rounded upward, if necessary, to the next higher 1/100th of 1%) equal to:

 

(i)       the
posted rate for thirty (30) day deposits in Dollars appearing on the Bloomberg – BBAM page (or any successor page or successor
service that displays the British Bankers’ Association Interest Settlement Rates (“BBA LIBOR”) for Dollar deposits)
as of 11:00 a.m. (London, England time) on the applicable Interest Reset Date; or

 

(ii)       if
BBA LIBOR (as defined above) is not published at such time and day for any reason, then the LIBOR Rate shall be determined by the
Agent (each such determination, absent manifest error, to be conclusive and binding on all parties hereto and their assignees)
as the interest rate quoted by Barclays Bank at approximately 11:00 A.M., New York City time on the applicable Interest Reset Date,
for deposits in Dollars offered to major banks in the London interbank Eurodollar market for a period comparable to such Interest
Period in an amount comparable to the principal amount of such Advance.

 

“LIBOR”
has the meaning set forth in Section 1.6.

 

“LIBOR Rate Loan”
means each portion of an Advance that bears interest at a rate determined by reference to the LIBOR Rate.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien
(statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement
of any kind or nature whatsoever, including any conditional sale contract or other title retention agreement, the interest of a
lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of
the foregoing.

 

“Loan Account”
has the meaning set forth in Section 2.9.

 

“Loan Documents”
means this Agreement, the Cash Management Agreements, the Closing Certificates, the Control Agreements, the Sale and Servicing
Agreement, the Disbursement Letter, the Agent Fee Letter, the Fee Letter, the Backup Servicer Engagement Letter, the Collateral
Custodian Fee Letter, the Guaranties (if any), the Officers’ Certificates, any note or notes executed by Borrower in connection
with this Agreement and payable to a member of the Lender Group, and any other agreement entered into, now or in the future, by
Horizon, Borrower or any of its Subsidiaries or any Guarantor and the Lender Group in connection with this Agreement.

 

“LTV” means,
with respect to any Note ReceivableAccount Debtor,
the quotient of (a) the aggregate principal balances of each Eligible Note Receivable of ansuch
Account Debtor plus all other outstanding balances of secured and unsecured loans of such Account Debtor that
are pari passu with or senior to each such Eligible Note Receivable divided by (b) thesuch
Account DebtorDebtor’s “value”,
determined in accordance with Servicer’s Required Procedures.

 

    	-32-

     

    

 

“Mandatory Prepayment”
has the meaning set forth in Section 2.3(b).

 

“Margin Stock”
has the meaning set forth in Section 5.23.

 

“Material Adverse
Change” means (a) a material adverse change in the business, operations, results of operations, assets, liabilities
or condition (financial or otherwise) of Borrower, or Horizon and its Subsidiaries, taken as a whole, or Horizon Management, (b) a
material impairment of the ability of Horizon, Horizon Management, Borrower or their respective Subsidiaries to perform their obligations
under the Loan Documents to which they are parties or of the Lender Group’s ability to enforce the Obligations or realize
upon the Collateral, or (c) a material impairment of the enforceability or priority of the Agent’s Liens with respect
to the Collateral as a result of an action or failure to act on the part of Borrower, its Subsidiaries or Horizon or Horizon Management.

 

“Material Modification”
means any amendment or waiver of, or modification or supplement to, any of the Note Receivable Documents governing such Note Receivable
as a result of the related Account Debtor financial under-performance or the related Account Debtor credit-related concerns, in
accordance with the Required Procedures, which:

 

(a)              
reduces or forgives any or all of the principal amount due under such Note Receivable;

 

(b)              
(i) waives one or more interest payments (other than any incremental interest accrued due to a default or event of default
with respect to such Note Receivable), (ii) permits any interest due in cash to be deferred or capitalized and added to the principal
amount of such Note Receivable or (iii) reduces the spread or coupon payable on such Note Receivable unless such reduction (when
taken together with all other reductions with respect to such Note Receivable) is by less than 10% of the spread or coupon payable
at the time of the initial funding;

 

(c)              
contractually or structurally subordinates such Note Receivable by operation of (i) any priority of payment provisions,
(ii) any turnover provisions, (iii) the transfer of assets in order to limit recourse to the related Account Debtor or (iv) the
granting of liens on any of the collateral securing such Note Receivable, in each case that requires the consent of the Borrower
or any lenders thereunder; provided, however, that any contractual or structural subordination with respect to any Note Receivable
pursuant to the foregoing (i) through (iii) of this clause (c) agreed to by the Borrower in connection with any change in the lender
or lenders under the related commercial loan and that has been previously an Eligible Second Lien Note Receivable, and after such
change will continue to be an Eligible Second Lien Note Receivable shall not be a “Material Modification” of such Note
Receivable;

 

(d)              
either (i) extends the maturity date of such Note Receivable by more than 120 days past the maturity date as of the initial
funding or (ii) extends the amortization schedule with respect thereto;

 

(e)              
substitutes, alters or releases the Purchased Assets (as defined in the Amended and Restated Sale and Servicing Agreement)
related to such Note Receivable, and such substitution, alteration or release, individually or in the aggregate and as determined
in the Agent’s reasonable discretion, materially and adversely affects the value of such Note Receivable; or

 

    	-33-

     

    

 

(f)               
waives any other material requirement under such Note Receivable Document.

 

“Maturity Date”
has the meaning set forth in Section 3.4.

 

“Maximum Availability”
means, for any day, the least of (i) the Facility Amount, (ii) the Borrowing Base on such day, and (iii) the Aggregate Outstanding
Note Receivable Balance on such day minus the Minimum Equity Requirement.

 

“Maximum Revolver
Amount” means $150,000,000, or such other amount of the aggregate Commitments at such time as reflected on Schedule C-1 as
then in effect pursuant to this Agreement or any amendment to this Agreement.

 

“Minimum Equity
Requirement” means the minimum amount of equity investment in the Borrower which shall be maintained by Horizon, in the form
of cash and/or Eligible Notes Receivable having an outstanding principal balance at all times prior to the Maturity Date of an
amount equal to the greater of (a) $35,000,000 and (b) (i) during the Ramp-Up Period, the sum of the Aggregate Outstanding Note
Receivable Balance for the three (3) largest Account Debtors and (ii) following the Ramp-Up Period, the sum of the Aggregate Outstanding
Note Receivable Balance for the four (4) largest Account Debtors; provided, however, that at any time there are no outstanding
Advances, the “Minimum Equity Requirement” shall be zero.

 

“Negotiable Collateral”
means letters of credit, letter of credit rights, instruments, promissory notes, drafts, documents, and chattel paper (including
electronic chattel paper and tangible chattel paper).

 

“Net Eligible
Notes Receivable” means, as of any date of determination, the aggregate unpaid principal amount of all Eligible Notes Receivable
(less any portions that are excluded based upon the definition of Eligible Notes Receivable, all principal representing accrued
interest, all end of term fees payable at maturity, and all undrawn principal amounts, each to the extent included in such Notes
Receivable) on such date.

 

“Net Investment
Income” means, with respect to any Person for any fiscal period, such Person’s interest and fee income, less operating
expenses, in each case as determined for such period and in each case not otherwise defined herein as determined in accordance
with GAAP.

 

“Note Receivable”
means a promissory note evidencing a commercial loan made or purchased by Borrower in accordance with the Required Procedures and
secured by a Lien on property owned by the maker of such note.

 

“Note Receivable
Documents” means, with respect to any Note Receivable, the Note Receivable and all other material loan or collateral documentation
executed or delivered in connection therewith.

 

    	-34-

     

    

 

“Obligations”
means (a) all loans (including the Advances), debts, principal, interest (including any interest that accrues after the commencement
of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding),
premiums, liabilities (including all amounts charged to the Loan Account pursuant to this Agreement), obligations (including indemnification
obligations), fees (including the fees provided for in the Agent Fee Letter and the Fee Letter), Lender Group Expenses (including
any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable
in whole or in part as a claim in any such Insolvency Proceeding), guaranties, and all covenants and duties of any other kind and
description owing by Borrower to the Lender Group pursuant to or evidenced by this Agreement or any of the other Loan Documents
and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due,
now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that Borrower
is required to pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents, and (b) all
Bank Product Obligations. Any reference in the Agreement or in the Loan Documents to the Obligations shall include all or any portion
thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.

 

“OFAC”
means The Office of Foreign Assets Control of the U.S. Department of the Treasury.

 

“Originating
Lender” has the meaning set forth in Section 14.1(e).

 

“OUS Organized
Debtor” means an Account Debtor organized under the laws of (i) Canada, (ii) the United Kingdom or (iii) any other foreign
jurisdiction as may be proposed to the Agent in writing and approved by the Agent in its reasonable discretion from time to time,
in each case, which does business in the United States or any state thereof.

 

“Outstanding
Note Receivable Balance” means with respect to any Note Receivable, the lesser of (i) the FMV of such Note Receivable, not
to exceed such Note Receivable’s par value or (ii) then outstanding principal balance thereof.

 

“Overadvance”
has the meaning set forth in Section 2.3(b).

 

“Participant”
has the meaning set forth in Section 14.1(e).

 

“Patriot Act”
has the meaning set forth in Section 5.26.

 

“Permitted Discretion”
means a determination made in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.

 

“Permitted Dispositions”
means (a) sales or other dispositions of Equipment that is substantially worn, damaged, or obsolete in the ordinary course of business,
(b) sales of Inventory to buyers in the ordinary course of business, (c) the use or transfer of money or Cash Equivalents in a
manner that is not prohibited by the terms of this Agreement or the other Loan Documents, (d) the licensing, on a non-exclusive
basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business, (e) sales
to Horizon pursuant to the Sale and Servicing Agreement of Notes Receivable that are either not Eligible Notes Receivable or that
have become ineligible in whole or in part due to one or more of the concentration limits in the definition of Eligible Notes Receivable,
for replacement or substitute Eligible Notes Receivable of at least equivalent face value, (f) sales of Note Receivable Collateral,
without recourse to Borrower, in connection with a foreclosure or similar proceeding following a default under the Note Receivable
secured by such Note Receivable Collateral, for a cash purchase price of not less than the fair market value of such Notes Receivable
Collateral to a person that is not an Affiliate of Borrower and (g) sales of Real Estate Owned without recourse to Borrower, for
a cash purchase price of not less than the fair market value of such Real Estate Owned, to a person that is not an Affiliate of
Borrower.

 

    	-35-

     

    

 

“Permitted Investments”
means (a) Investments in cash and Cash Equivalents, (b) Investments in negotiable instruments for collection, (c) advances
made in connection with purchases of goods or services in the ordinary course of business, (d) commercial loans evidenced by a
Note Receivable made in the ordinary course of business and related equity investments received or made in accordance with the
Required Procedures, (e) Investments received in settlement of amounts due to Borrower or any of its Subsidiaries effected
in the ordinary course of business or owing to Borrower or any of its Subsidiaries as a result of Insolvency Proceedings involving
an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of Borrower, and (f) Real Estate Owned.

 

“Permitted Liens”
means (a) Liens granted to, or for the benefit of, Agent, to secure the Obligations, (b) Liens for unpaid taxes or assessments
that either (i) are not yet delinquent, (ii) are being contested in good faith by appropriate proceedings and for which
adequate reserves have been provided in accordance with GAAP, or (iii) do not constitute an Event of Default hereunder and
are the subject of Permitted Protests, (c) Liens set forth on Schedule P-1, (d) the interests of lessors under operating leases,
(e) Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers,
incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for
sums not yet delinquent, or (ii) are the subject of Permitted Protests, (f) Liens resulting from any judgment or award that is
not an Event of Default hereunder, and (g) rights of setoff imposed by law upon deposit of cash and cash equivalents in favor
of banks or other depository institutions incurred in the ordinary course of business in deposit accounts maintained with such
bank or depository institution to the extent permitted under this Agreement.

 

“Permitted Protest”
means the right of Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations),
taxes, or rental payment, provided that (a) a reserve with respect to such obligation is established on the Books in such
amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by Borrower or any
of its Subsidiaries, as applicable, in good faith, and (c) Agent is satisfied that, while any such protest is pending, there
will be no material impairment of the enforceability, validity, or priority of any of the Agent’s Liens.

 

“Person”
means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability
partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal
entities, and governments and agencies and political subdivisions thereof.

 

    	-36-

     

    

 

“Portfolio Charged-Off
Ratio” means, with respect to any Collection Period, the percentage equivalent of a fraction, calculated as of the end of
such Collection Period on the Determination Date occurring in the second calendar month following the end of such Collection Period,
(i) the numerator of which is equal to the aggregate outstanding principal balance of all Note Receivables in Horizon’s consolidated
and managed portfolio that became Charged-Off Note Receivables during such Collection Period and (ii) the denominator of which
is equal to the sum of (A) the aggregate outstanding principal balance of all Note Receivables serviced by the Servicer as of the
first day of such Collection Period and (B) the aggregate outstanding principal balance of all Note Receivables in Horizon’s
consolidated and managed portfolio as of the last day of such Collection Period divided by 2.

 

“Post-Termination
Revolving Note Receivable Funding” means an Advance by the Lenders, made following the termination of the Revolving Credit
Availability Period, which Advance may be used for the sole purpose of funding advances requested by Account Debtors under the
Revolving Note Receivables.

 

“Prepayment Notice”
has the meaning set forth in Section 2.3(c)(i)

 

“Prepayment Make-Whole
Amount” has the meaning set forth in the Fee Letter.

 

“Principal Collections”
means any and all Collections representing amounts paid by the applicable Account Debtor and applied by the Servicer in accordance
with GAAP to the payment of the principal of a Note Receivable.

 

“Projections”
means, with respect to any Person, such Person’s forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash
flow statements (if applicable), all prepared on a basis consistent with such Person’s historical financial statements, together
with appropriate supporting details and a statement of underlying assumptions.

 

“Pro Rata Share”
means, as of any date of determination, with respect to all matters as to a particular Lender (including the indemnification obligations
arising under Section 16.7), (a) prior to the Commitments being terminated or reduced to zero, the percentage obtained by
dividing (i) such Lender’s Commitment, by (ii) the aggregate Commitments of all Lenders, and (b) from and after the
time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (i) the aggregate outstanding
principal amount of such Lender’s Advances, by (ii) the aggregate outstanding principal amount of all Advances.

 

“Ramp-Up Period”
means the period commencing on the Restatement Effective Date and ending on the earlier of (a) the six-month anniversary of
the Restatement Effective Date, and (b) the first date following the Restatement Effective Date on which Borrower has an Aggregate
Outstanding Note Receivable Balance of $75,000,000 or more.

 

“Real Estate
Loan” means a Note Receivable that is secured by a Lien on Real Property where material value is attributed to such Real
Property and relied upon in the underwriting of such Note Receivable.

 

“Real Estate
Owned” means Real Property that secured a Note Receivable and was acquired by Borrower in connection with a foreclosure,
deed-in-lieu of foreclosure or other similar process in which Borrower took legal title to such Real Property following a default
under such Note Receivable.

 

    	-37-

     

    

 

“Real Property”
means any estates or interests in real property now owned or hereafter acquired by any Person, and the improvements thereto.

 

“Record”
means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable
in perceivable form.

 

“Rehabilitated
Note Receivable” means any Eligible Note Receivable (a) that has a Material Modification, in each case in accordance with
the Required Procedures, (b) for which the Account Debtor is (i) now making principal amortization payments to fully amortize such
Note Receivable and (ii) no longer experiencing a material financial underperformance, distress or material default, in each case
in accordance with the Required Procedures. Upon the Account Debtor of a Rehabilitated Note Receivable timely making six (6) principal
amortization payments and such Account Debtor no longer experiencing material financial underperformance, distress or material
default of its obligations, in each case, in accordance with the Required Procedures, such Rehabilitated Note Receivable shall
no longer constitute a Rehabilitated Note Receivable and shall constitute an Eligible Note Receivable (provided it meets all other
requirements for an Eligible Note Receivable).

 

“Related Property”
has the meaning set forth in the Sale and Servicing Agreement.

 

“Relevant
Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially
endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto, including
without limitation the Alternative Reference Rates Committee.

 

“Remedial Action”
means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous
Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials
so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) restore
or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial operation
and maintenance activities, or (e) conduct any other actions with respect to Hazardous Materials authorized by Environmental Laws.

 

“Remittance
Date” means (x) the tenth (10th) day of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day and (y) the Maturity Date.

 

“Replacement
Lender” has the meaning set forth in Section 2.11(b).

 

“Report”
has the meaning set forth in Section 16.17(a).

 

“Required Asset
Documents” means the documents set forth on Schedule R-1 hereto.

 

“Required Lenders”
means, at any time, the Lenders whose aggregate Pro Rata Shares exceed fifty percent (50%); provided, however, that at any time
when there are two or more Lenders, “Required Lenders” must include at least two Lenders whose aggregate Pro Rata Shares
exceed fifty percent (50%).

 

    	-38-

     

    

 

“Required Procedures”
means the written policies, procedures and guidelines, that Horizon utilizes in the origination (and Horizon Management utilizes
in the servicing) of Notes Receivable Horizon owns, or sells to its subsidiaries, specifically including underwriting, documentation,
portfolio management and financial policies, procedures and guidelines over collateral and financial analysis, business and asset
valuation (including appraisal), auditing, collection activities, renewal, extension, modification, recognition, accrual, non-accrual
and charge-off policies, and the use of the Approved Forms with respect to the origination, funding and servicing of Notes Receivable,
all in the form delivered to Agent and approved by Agent on or prior to the Restatement Effective Date and attached to the Closing
Certificate, as amended from time to time in accordance with the Sale and Servicing Agreement; provided, however, that no material
change to the Approved Forms or the policies and procedures as in effect on the Restatement Effective Date shall be effective unless
(a) Agent and Borrower have each received at least ten (10) Business Days prior written notice of such change and, (b) if either
Agent in the exercise of its Permitted Discretion, or Borrower in its reasonable discretion, believes that such change could reasonably
be expected to have a material adverse effect upon the quality or value of the Eligible Notes Receivable or the collectability
of any Note Receivable or the Advances thereon, such change has the prior written approval of both Agent and Borrower; provided
further, that (i) each of Agent and Borrower shall use reasonable efforts to notify Horizon of any objection it has to any such
proposed change within ten (10) Business Days following its receipt of notice thereof from Horizon, but failure by Agent or Borrower
to do so shall not be deemed to be a consent to or approval of such change, and (ii) if, after the expiration of such ten (10)
Business Day period, Horizon has provided to each of Agent and Borrower a second written notice of such proposed change and received
acknowledgment of Agent's and Borrower's receipt thereof, then each of Agent and Borrower shall be deemed to have consented to
such proposed change unless either Agent or Borrower has notified Horizon of its objection thereto within twenty (20) days following
its receipt of such second notice from Horizon.

 

“Restatement
Effective Date” means the date of this Agreement.

 

“Restricted Payments”
means (a) any dividend or other distribution, in cash or other property, direct or indirect, on account of any class of Stock in
Borrower, now or hereafter outstanding, (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition
for value, direct or indirect, of any class of Stock in Borrower, now or hereafter outstanding, (c) any payment made to retire,
or obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of Stock in Borrower,
now or hereafter outstanding, (d) any payment or prepayment of principal, or redemption, purchase, retirement, defeasance, sinking
fund or similar payment with respect to, any Subordinated Debt or any Indebtedness owing to a holder of Stock in Borrower or an
Affiliate of a holder of Stock in Borrower, or (e) any payment (other than compensation to an officer or director of Borrower,
as such, in the ordinary course of business, or Servicing Fees or other amount permitted to be paid to Servicer under the Sale
and Servicing Agreement) to a holder of Stock in Borrower or to an Affiliate of Borrower or an Affiliate of any holder of Stock
in Borrower not expressly authorized herein.

 

    	-39-

     

    

 

“Revolving Credit
Availability Period” means the period commencing on the Amendment No. 2 Effective Date and ending on the Termination Date.

 

“Revolving Note
Receivable” means each Note Receivable that is secured by a valid first priority security interest or lien on specified collateral,
(b) is not subordinate in right of payment to any other obligation for borrowed money of the Account Debtor, (c) the
Account Debtor has an LTV not greater than forty percent (40%) when comparing (i) the aggregate commitment
(i.e., assumes fully-drawn) of such Revolving Note Receivable plus all other outstanding balances of loans of such Account Debtor
pari passu to the Revolving Note Receivable to (ii) the Account Debtor value, determined in accordance with the Servicer’s
Required Proceduresfifty percent (50%), and (d) with respect
to which the Borrower has a revolving credit commitment to advance amounts to the applicable Account Debtor during a specified
term and which was underwritten as a “Revolving Note Receivable” in accordance with the Required Procedures and is
identified on the books of the Servicer as such.

 

“Revolving Note
Receivable Unfunded Available Amount” means, at any time, the sum of the products for each Revolving Note Receivable of (x)
the aggregate unfunded available commitment (after giving effect to any borrowing base or collateral tests or other restrictions
on availability) under such Revolving Note Receivable at such time times (y) the applicable Advance Rate.

 

“RIC/BDC Requirements”
means the requirements Horizon must satisfy to maintain (a) its status as a “business development company,” within
the meaning of the 1940 Act, including, but not limited to, “asset coverage” requirements (as defined in and determined
pursuant to Section 18 of the 1940 Act) and (b) its election to be treated as a “regulated investment company” under
the Code.

 

“Rolling Six-Month
Charged-Off Ratio” means, for any day on which Advances are outstanding, the rolling six period average Charged-Off Ratio
for the six immediately preceding Collection Periods.

 

“Rolling Six-Month
Portfolio Charged-Off Ratio” means, for any day, the rolling six period average Portfolio Charged-Off Ratio for the six immediately
preceding Collection Periods.

 

“Sale and Servicing
Agreement” means the Amended and Restated Sale and Servicing Agreement among Borrower, Horizon (as Originator), Horizon Management
(as initial Servicer), U.S. Bank (as Collateral Custodian), and Agent, in form and substance satisfactory to Agent.

 

“Sanctions”
has the meaning set forth in Section 5.25(a).

 

“Scheduled Payments”
has the meaning set forth in the Sale and Servicing Agreement.

 

“SEC” means
the United States Securities and Exchange Commission and any successor thereto.

 

“Securities Account”
means a “securities account,” as that term is defined in the Code.

 

    	-40-

     

    

 

“Servicer”
means Horizon, or any other Person that assumes the functions of servicing the Notes Receivables with the prior written consent
of Agent or is otherwise appointed pursuant to the terms of the Sale and Servicing Agreement.

 

“Servicer Advance”
means an advance of Scheduled Payments made by the Servicer pursuant to the Sale and Servicing Agreement.

 

“Servicer Default”
has the meaning set forth in the Sale and Servicing Agreement.

 

“Servicing Fees”
means the “Servicing Fee” payable to Servicer in accordance with the Sale and Servicing Agreement, which shall in no
case exceed for any measurement period (as determined pursuant to the Sale and Servicing Agreement) one and a half percent (1.50%)
per annum on the average Notes Receivable balance (as determined pursuant to the Sale and Servicing Agreement) for such measurement
period.

 

“SOFR”
with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York,
as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website.

 

“Solvent”
means, with respect to any Person on a particular date, that, at fair valuations, the sum of such Person’s assets is greater
than all of such Person’s debts.

 

“Spread”
means, with respect to Note Receivables accruing interest at a floating rate, the cash interest spread of such Note Receivables
over the LIBOR Rate, or, if a Eurodollar Disruption Event occurs, the Base Rate.

 

“Stock”
means all shares, options, warrants, membership interests, units of membership interests, other interests, participations, or other
equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock,
or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated
by the SEC under the Exchange Act).

 

“Subordinated
Debt” means any unsecured Indebtedness specifically subordinated to the prior payment in full in cash of the Obligations
and which shall otherwise be on terms and conditions reasonably satisfactory to Agent and subject to a Subordination Agreement.

 

“Subordination
Agreement” means a subordination agreement executed and delivered by Borrower and each of the holders of Subordinated Debt
and Agent, the form and substance of which is satisfactory to Agent.

 

“Subsidiary”
of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly
owns or controls the shares of Stock having ordinary voting power to elect a majority of the Board of Directors of such corporation,
partnership, limited liability company, or other entity.

 

    	-41-

     

    

 

“Supplemental Interests”
means, with respect to any Note Receivable, any warrants, equity or other equity interests or interests convertible into or exchangeable
for any such interests received by Horizon from the Account Debtor in connection with such Note Receivable.

 

“Supporting Obligation”
means a letter-of-credit right or secondary obligation that supports the payment or performance of an Account, chattel paper, document,
General Intangible, Note Receivable, instrument, or Investment Property.

 

“Swap Breakage
and Indemnity Amounts” means any early termination payments, taxes, indemnification payments and any other amounts owed to
a Hedge Provider under a Hedge Agreement that do not constitute monthly payments.

 

“Tangible Net
Worth” means, with respect to any Person as of any date of determination, determined on a consolidated basis and in accordance
with GAAP, the result of (a) such Person’s total members’ or shareholder’s equity, plus (b) all Indebtedness
expressly subordinated to all other borrowed Indebtedness of such Person, minus (c) all Intangible Assets of such Person,
minus (d) all of such Person’s prepaid expenses, minus (e) all amounts due to such Person from Affiliates of such
Person.

 

“Target Industry”
means each of the following business areas as classified in accordance with the Required Procedures: (a) Technology, (b) Life
Science, (c) Healthcare Information and Services, and (d) Cleantech.

 

“Target Industry
Percentage Limit” means (a) with respect to the Target Industry of Technology, seventy-five percent (75%); (b) with respect
to the Target Industry of Life Science, seventy percent (70%); (c) with respect to the Target Industry of Healthcare Information
and Services, seventy percent (70%); (d) with respect to the Target Industry of Cleantech, fifty percent (50%).

 

“Taxes”
means any taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by any
jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments and all interest,
penalties or similar liabilities with respect thereto.

 

“Tax Lender”
has the meaning set forth in Section 15.2(a).

 

“Term Note Receivable”
means each Note Receivable with required scheduled monthly amortization payments, no portion of which may be reborrowed once repaid,
and designated as a “term loan” on the books of the Servicer in accordance with the Required Procedures.

 

“Term
SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental
Body.

 

“Termination
Date” means the earliest to occur of (a) the Commitment Termination Date, (b) the occurrence of an Early Termination
Event, or (c) the date of termination declared or occurring automatically in respect of the occurrence of an Event of Default pursuant
to Section 9.1.

 

    	-42-

     

    

 

“Unadjusted
Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

“United States”
means the United States of America.

 

“Unused Fee”
has the meaning set forth in Section 2.10(a).

 

“U.S. Lender”
has the meaning set forth in Section 16.11(c).

 

“Voidable Transfer”
has the meaning set forth in Section 17.8.

 

“Weighted Average
Fixed Coupon” means, as of any Determination Date, a fraction, expressed as a percentage (rounded up to the nearest 0.01%),
(x) the numerator of which is the sum of the products for each Note Receivable accruing interest at a fixed rate (excluding Charged-Off
Note Receivable) of (A) the cash yield for such Note Receivable of as of such date times (B) by the Outstanding Note Receivable
Balance of such Note Receivable as of such date, and (y) the denominator of which is the aggregate Outstanding Note Receivable
Balance of all such Note Receivables accruing interest at a fixed rates as of such date. For purposes of this definition, all Note
Receivables accruing interest at a fixed rate that are not paying cash interest as of the applicable Determination Date shall be
treated as having an interest rate of 0%.

 

“Weighted Average
Floating Spread” means, as of any Determination Date, a fraction, expressed as a percentage (rounded up to the nearest 0.01%),
(x) the numerator of which is the sum of the products for each Note Receivable accruing interest at a floating rate (excluding
Charged-Off Note Receivables) of (A) the Spread, on an annualized basis, of such Note Receivables (including commitment, letter
of credit and all other fees), by (B) the Outstanding Note Receivable Balance of such Note Receivables as of such date and (y)
the denominator of which is the aggregate Outstanding Note Receivable Balance of all such Note Receivables accruing interest at
a floating rate as of such date.

 

“Weighted Average
Remaining Maturity” means, with respect to the Note Receivables included in the Collateral as of any Determination Date,
the number equal to (i) the sum of the products for each such Note Receivable of (A) the remaining term to maturity of such Note
Receivable (in years, rounded to the nearest one tenth thereof and based upon the initial maturity date of such Note Receivable)
times (B) the Outstanding Note Receivable Balance of such Note Receivable divided by (ii) Aggregate Outstanding Note Receivable
Balance at such time.

 

“Weighted Average
Spread” means, as of any Determination Date, an amount (rounded up to the next 0.01%) equal to the weighted average of (a)
for Note Receivables which bear interest at a floating rate, the Weighted Average Floating Spread of such Note Receivables and
(b) for Note Receivables which bear interest at a fixed rate, the excess of the Weighted Average Fixed Coupon of such Note Receivables
over the then-current weighted average strike rate under the Hedge Transactions, or, if there are no Hedge Transactions outstanding,
over the then current LIBOR Rate.

 

1.2           Accounting
Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP; provided, however, that
if Borrower notifies Agent that Borrower requests an amendment to any provision hereof to eliminate the effect of any Accounting
Change occurring after the Restatement Effective Date or in the application thereof on the operation of such provision (or if
Agent notifies Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of
whether any such notice is given before or after such Accounting Change or in the application thereof, then Agent and Borrower
agree that they will negotiate in good faith amendments to the provisions of this Agreement that are directly affected by such
Accounting Change with the intent of having the respective positions of the Lenders and Borrower after such Accounting Change
conform as nearly as possible to their respective positions as of the date of this Agreement and, until any such amendments have
been agreed upon and agreed to by the Required Lenders, the provisions in this Agreement shall be calculated as if no such Accounting
Change had occurred. When used herein, the term “financial statements” shall include the notes and schedules thereto.
Whenever the term “Horizon” is used in respect of a financial covenant or a related definition, it shall be understood
to mean Horizon and its Subsidiaries on a consolidated basis, unless the context clearly requires otherwise.

 

    	-43-

     

    

 

1.3         
Code. Any terms used in this Agreement that are defined in the Code shall be construed and defined as set forth in the
Code unless otherwise defined herein; provided however, that to the extent that the Code is used to define any term herein and
such term is defined differently in different Articles of the Code, the definition of such term contained in Article 9 shall govern.

 

1.4          Construction.
Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references to the plural include the
singular, references to the singular include the plural, the terms “includes” and “including” are not
limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
 “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and
similar terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the case may
be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section,
subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in
this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments,
changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as
applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements set forth herein). The words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties. Any reference
herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall mean the repayment
in full in cash or immediately available funds (or, in the case of obligations with respect to Bank Products (other than Hedge
Obligations), providing Bank Product Collateralization) of all of the Obligations (including the payment of any Lender Group Expenses
that have accrued irrespective of whether demand has been made therefor and the payment of any termination amount then applicable
(or which would or could become applicable as a result of the repayment of the other Obligations) under Hedge Agreements provided
by Hedge Providers) other than (i) unasserted contingent indemnification Obligations, (ii) any Bank Product Obligations (other
than Hedge Obligations) that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding without
being required to be repaid or cash collateralized, and (iii) any Hedge Obligations that, at such time, are allowed by the applicable
Hedge Provider to remain outstanding without being required to be repaid. Any reference herein to any Person shall be construed
to include such Person’s successors and assigns. Any requirement of a writing contained herein or in any other Loan Document
shall be satisfied by the transmission of a Record.

 

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1.5          
Schedules and Exhibits. All of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein
by reference.

 

1.6           LIBOR
Notification. The interest rate on LIBOR Rate Loans is determined by reference to the LIBOR Rate, which is derived from the London
interbank offered rate (“LIBOR”). The London interbank offered rate is intended to represent the rate at which contributing
banks may obtain short-term borrowings from each other in the London interbank market. In July 2017, the U.K. Financial Conduct
Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions
to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for
purposes of the IBA setting the London interbank offered rate. As a result, it is possible that commencing in 2022, the London
interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine
the interest rate on LIBOR Rate Loans. In light of this eventuality, public and private sector industry initiatives are currently
underway to identify new or alternative reference rates to be used in place of LIBOR. In the event that LIBOR is no longer available
or in certain other circumstances as set forth in Section 2.15 of this Agreement, such Section 2.15 provides a mechanism for determining
an alternative rate of interest. The Agent will notify the Borrower, pursuant to Section 2.15, in advance of any change to the
reference rate upon which the interest rate on LIBOR Rate Loans is based. However, the Agent does not warrant or accept any responsibility
for, and shall not have any liability with respect to, the administration, submission or any other matter related to LIBOR or
other rates in the definition of “LIBOR Rate” or with respect to any alternative or successor rate thereto, or replacement
rate therefor or thereof, including, without limitation, whether the composition or characteristics of any such alternative, successor
or replacement reference rate, as it may or may not be adjusted pursuant to Section 2.15, will be similar to, or produce the same
value or economic equivalence of, the LIBOR Rate or have the same volume or liquidity as did LIBOR prior to its discontinuance
or unavailability.

 

2.            
LOAN AND TERMS OF PAYMENT.

 

2.1          
Revolver Advances.

 

(a)           Subject
to the terms and conditions of this Agreement, and during the Revolving Credit Availability Period, each Lender agrees (severally,
not jointly or jointly and severally) to make Advances to Borrower in an amount at any one time outstanding not to exceed the
lesser of

 

(i)           
such Lender’s Commitment, or

 

(ii)           such
Lender’s Pro Rata Share of the Available Amount at such time;

 

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(b)           Anything
to the contrary in this Section 2.1 notwithstanding, Agent shall have the right (but not the obligation) to establish, increase,
reduce, eliminate, or otherwise adjust reserves from time to time against the Borrowing Base (or the Maximum Revolver Amount in
the case of clause (iv) below) in such amounts, and with respect to such matters, as Agent in its Permitted Discretion shall
deem necessary or appropriate, including (i) reserves in an amount up to the Bank Product Reserve Amount, and (ii) reserves with
respect to (A) sums that Borrower is required to pay (such as taxes, assessments, insurance premiums, or, in the case of leased
assets, rents or other amounts payable under such leases) and has failed to pay under any Section of this Agreement or any other
Loan Document, (B) amounts owing by Borrower or any of its Subsidiaries to any Person to the extent secured by a Lien on, or trust
over, any of the Collateral (other than any existing Permitted Lien set forth on Schedule P-1 which is specifically identified
thereon as entitled to have priority over the Agent’s Liens), which Lien or trust, in the Permitted Discretion of Agent
likely would have a priority superior to the Agent’s Liens (such as Liens or trusts in favor of landlords, warehousemen,
carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where
given priority under applicable law) in and to such item of the Collateral, (iii) the valuation of any Note Receivable, the
Collateral securing any Note Receivable, or other Collateral, and (iv) up to the aggregate amount of available unfunded revolver
commitments of Borrower to the makers of Notes Receivable. On the Restatement Effective Date, the Borrower shall fund an indemnity
reserve in the amount of $200,000 (the “Indemnity Reserve”), held in a sub-account of the Collection Account, which
amount may be utilized by KEF, as Agent, in its sole discretion to compensate itself for any losses, costs or expenses incurred
by it in connection with any claim made by Wells Fargo National Bank or any Affiliate in connection with the assignment by it
of its rights and obligations (as a Lender or Agent) under this Agreement or the other Loan Documents. The Indemnity Reserve shall
be maintained until the second anniversary of the Restatement Effective Date at which time any remaining funds shall be distributed
to the Borrower, unless at such time there are outstanding and unpaid indemnification claims, in which event the Indemnity Reserve
shall be maintained until such outstanding and unpaid indemnification claims are finally resolved. Borrower shall have no obligation
to restore the Indemnity Reserve to its original amount. Agent will review the amount of the Indemnity Reserve on the first anniversary
of the Restatement Effective Date to determine whether and in what amount (up to a maximum of $200,000 less any proceeds of the
Indemnity Reserve used to satisfy prior indemnification claims) such reserve shall continue to be maintained, if at all. So long
as no Event of Default has occurred and is continuing, Agent shall first notify and attempt to discuss with Borrower any such
reserve level.

 

(c)           During
the Amortization Period until the reduction to zero of all outstanding commitments in respect of Revolving Note Receivables, each
Lender shall make Post-Termination Revolving Note Receivable Fundings up to an aggregate amount equal to such Lender’s Commitment
less outstanding Advances made by such Lender. Requests for and funding of Post-Termination Revolving Note Receivable Fundings
shall be made in accordance the procedures set forth in Section 2.2; provided, that the Agent may, in its sole discretion, advance
funds constituting Post-Termination Revolving Note Receivable Fundings to (i) the Borrower or (ii) the applicable Account Debtor
directly, on behalf of the Borrower, and in either case, such funds shall be used solely for the purpose of funding advances requested
by an Account Debtor under a Revolving Note Receivable.

 

(d)            Amounts
borrowed pursuant to this Section 2.1 may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at
any time during the term of this Agreement.

 

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2.2           Borrowing
Procedures and Settlements.

 

(a)           Procedure for Borrowing. On the terms and conditions hereinafter set forth, the Borrower may, by delivery of an irrevocable
written request to the Agent (any such request, a “Funding Request”), from time to time on any Business Day during
the Revolving Credit Availability Period (but not more than once per calendar week), at its option, request that the Lenders make
Advances to it in an amount which, at any time, shall not exceed the Available Amount in effect on the related Funding Date.

 

(i)            Such
Funding Request shall be delivered not later than 12:00 noon (New York City time) on the date which is one (1) Business Day prior
to the requested Funding Date. Each Funding Request shall specify the aggregate amount of the requested Advance, which shall be
in an amount equal to at least $1,000,000. Each Funding Request shall be accompanied by (i) a certificate of the Borrower, depicting
the outstanding amount of Advances under this Agreement and representing that all conditions precedent for a funding have been
met, including a representation by the Borrower that the requested Advance shall not, on the Funding Date thereof, exceed the Available
Amount on such day, (ii) a Borrowing Base Certificate as of the applicable Funding Date (giving pro forma effect to the Advance
requested and the use of proceeds thereof), (iii) an updated schedule listing of all Notes Receivable including each Note Receivable
that is subject to the requested Advance, (iv) the proposed Funding Date, and (v) wire transfer instructions for the Advance. Upon
receipt of such Funding Request, the Agent shall promptly forward such Funding Request to the Lenders.

 

(ii)           A
Funding Request shall be irrevocable when delivered; provided however, that if the Borrowing Base calculation delivered pursuant
to clause (ii) above includes a Note Receivable which does not become part of the Borrower Collateral on or before the applicable
Funding Date as anticipated, and the Borrower cannot otherwise make the representations required pursuant to clause (i) above,
the Borrower shall revise the Funding Request accordingly, and shall pay any loss, cost or expense incurred by any Lender in connection
with the broken funding evidenced by such revised Funding Request.

 

(iii)          On
the Funding Date following the satisfaction of the applicable conditions set forth in this Section 2.2(a) and Article III, the
Lenders shall make available to the Agent at its address listed beneath its signature on its signature page to this Agreement (or
on the signature page to the Joinder Agreementjoinder agreement
pursuant to which it became a party hereto), for deposit to the account of the Borrower or its designee in same day funds, at the
Borrower’s Designated Account, an amount equal to such Lender’s Pro Rata Share of the Advance then being made. Each
wire transfer of an Advance to the Borrower shall be initiated by the applicable Lender no later than 3:00 p.m. (New York City
time) on the applicable Funding Date. The obligation of each Lender to remit its Pro Rata Share of any such Advance shall be several
from that of each other Lender, and the failure of any Lender to so make such amount available to the Borrower shall not relieve
any other Lender of its obligation hereunder.

 

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(iv)          The
Borrower shall deliver to the Agent any other documents or materials reasonably requested with respect to each Note Receivable,
promptly upon request therefor.

 

(b)           Extension
of Commitment Termination Date. The Borrower may, no later than ninety (90) days prior to the then current anniversary of the
Restatement Effective Date, by written notice to the Agent, make written requests for the Lenders to extend the Commitment Termination
Date for an additional revolving period of 364 days. The Agent will give prompt notice to each Lender of its receipt of such request
for extension of the Commitment Termination Date. Each Lender shall make a determination, in its sole discretion and after a full
credit review, not less than fifteen (15) days prior to the then applicable anniversary of the Restatement Effective Date as to
whether or not it will agree to extend the Commitment Termination Date; provided, however, that the failure of any
Lender to make a timely response to the Borrower’s request for extension of the Commitment Termination Date shall be deemed
to constitute an acceptance by such Lender to extend the Commitment Termination Date.

 

(c)           Notation. Agent shall record on its books the principal amount of the Advances owing to each Lender, and the interests therein
of each Lender, from time to time and such records shall, absent manifest error, conclusively be presumed to be correct and accurate.
In addition, each Lender is authorized, at such Lender’s option, to note the date and amount of each payment or prepayment
of principal of such Lender’s Advances in its books and records, including computer records.

 

(d)           Defaulting
Lenders. Agent shall not be obligated to transfer to a Defaulting Lender any payments made by Borrower to Agent for the Defaulting
Lender’s benefit or any Collections or proceeds of Collateral that would otherwise be remitted hereunder to the Defaulting
Lender, and, in the absence of such transfer to the Defaulting Lender, Agent shall transfer any such payments to each non-Defaulting
Lender ratably in accordance with their Commitments (but, in each case, only to the extent that such Defaulting Lender’s
portion of an Advance (or other funding obligation) was funded by such other non-Defaulting Lender), (i) to a suspense account
maintained by Agent, the proceeds of which shall be retained by Agent and may be made available to be re-advanced to or for the
benefit of Borrower as if such Defaulting Lender had made its portion of Advances (or other funding obligations) hereunder, and
(ii) from and after the date on which all other Obligations have been paid in full, to such Defaulting Lender in accordance with
tier (M) of Section 2.4(b). Subject to the foregoing, Agent may hold and, in its discretion, re-lend to Borrower for the account
of such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting Lender.
Solely for the purposes of voting or consenting to matters with respect to the Loan Documents (including the calculation of Pro
Rata Share in connection therewith) and for the purpose of calculating the fee payable under Section 2.10(a), such Defaulting
Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero. The provisions
of this Section 2.2(d) shall remain effective with respect to such Defaulting Lender until the earlier of (x) the date on which
all of the non-Defaulting Lenders, Agent, and Borrower shall have waived, in writing, the application of this Section 2.2(d) to
such Defaulting Lender, or (y) the date on which such Defaulting Lender makes payment of all amounts that it was obligated to
fund hereunder, pays to Agent all amounts owing by Defaulting Lender in respect of the amounts that it was obligated to fund hereunder,
and, if requested by Agent, provides adequate assurance of its ability to perform its future obligations hereunder. The operation
of this Section 2.2(d) shall not be construed to increase or otherwise affect the Commitment of any Lender, to relieve or
excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or
excuse the performance by Borrower of its duties and obligations hereunder to Agent or to the Lenders other than such Defaulting
Lender. Any failure by a Defaulting Lender to fund amounts that it was obligated to fund hereunder shall constitute a material
breach by such Defaulting Lender of this Agreement and shall entitle Borrower, at its option, upon written notice to Agent, to
arrange for a substitute Lender to assume the Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable
to Agent. In connection with the arrangement of such a substitute Lender, the Defaulting Lender shall have no right to refuse
to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute
Lender (and agrees that it shall be deemed to have executed and delivered such document if it fails to do so) subject only to
being paid its share of the outstanding Obligations (other than Bank Product Obligations, but including all interest, fees, and
other amounts that may be due and payable in respect thereof,); provided, however, that any such assumption of the Commitment
of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or Borrower’s rights
or remedies against any such Defaulting Lender arising out of or in relation to such failure to fund. In the event of a direct
conflict between the priority provisions of this Section 2.2(d) and any other provision contained in this Agreement or any other
Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent
possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid,
the terms and provisions of this Section 2.2(d) shall control and govern.

 

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(e)            Independent
Obligations. All Advances shall be made by the Lenders contemporaneously and in accordance with their Pro Rata Shares. It is understood
that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Advance (or
other extension of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure
by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder
shall excuse any other Lender from its obligations hereunder.

 

2.3           Payments;
Overadvances; Voluntary Prepayment; Collections Account Release.

 

(a)           Payment
and Voluntary Prepayment.

 

(i)            Except
as otherwise expressly provided herein, all payments by Borrower shall be made to Agent’s Account for the account of the
Lender Group and shall be made in immediately available funds, no later than 2:00 p.m. (New York time) on the date specified herein.
Any payment received by Agent later than 2:00 p.m. (New York time) shall be deemed to have been received on the following Business
Day and any applicable interest, fee or Breakage Costs shall continue to accrue until such following Business Day.

 

(ii)           Unless
Agent receives notice from Borrower prior to the date on which any payment or voluntary prepayment is due to the Lenders that
Borrower will not make such payment or voluntary prepayment in full as and when required, Agent may assume that Borrower has made
(or will make) such payment or voluntary prepayment in full to Agent on such date in immediately available funds and Agent may
(but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to
the amount then due such Lender. If and to the extent Borrower does not make such payment or voluntary prepayment in full to Agent
on the date when due, each Lender severally shall repay to Agent on demand such amount distributed to such Lender, together with
interest thereon at the Defaulting Lender Rate for each day from the date such amount is distributed to such Lender until the
date repaid.

 

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(b)           Overadvances.
If, at any time or for any reason, the aggregate principal balance of the Loans owed by Borrower to the Lender Group is greater
than the Maximum Availability (an “Overadvance”), Borrower shall, within two Business Days pay to Agent, in cash,
(i) the amount of such excess (to the extent not paid sooner from Collections), which amount shall be used by Agent to reduce
the outstanding principal balance of the Loans, together with interest on such excess accrued to the date of prepayment, and (ii)
if such payment is made on a date that is not a Remittance Date, any applicable Breakage Costs (such payment, a “Mandatory
Prepayment”). Borrower promises to pay the Obligations (including principal, interest, fees, costs, and expenses) in full
on the Maturity Date or, if earlier, on the date on which the Obligations (other than the Bank Product Obligations) become due
and payable pursuant to the terms of this Agreement and the other Loan Documents.

 

(c)           Voluntary
Prepayment; Collections Account Release. From time to time during the Revolving Credit Availability Period, by delivering to Agent
a written notice and on any date that is not a Remittance Date, the Borrower may:

 

(i)            prepay
all or any portion of the Advances then outstanding, other than with respect to Mandatory Prepayments, by delivering to the Agent
written notice of such prepayment (a “Prepayment Notice”) at least two (2) Business Days prior to the date of such
prepayment (or such later time as the applicable Lenders, in their respective sole discretion, may agree), specifying the date
and amount of the prepayment and certifying that, immediately before and after giving effect to such prepayment, (A) no Default
or Event of Default has occurred and is continuing and (B) Borrower is and shall be in compliance with the terms of this Agreement.
Any prepayment by the Borrower of Advances pursuant to this Section 2.3(c)(i), other than with respect to Mandatory Prepayments,
shall be in a minimum amount of $500,000 with integral multiples of $100,000 above such amount (except that, in the case of a
prepayment of all Advances then outstanding, such prepayment need not be in an integral multiple of $100,000); any amount so prepaid
may, subject to the terms and conditions hereof, be reborrowed during the Revolving Credit Availability Period. A Prepayment Notice
shall be irrevocable when delivered; or

 

(ii)           release
any Available Collections from the Collection Account (a “Collection Account Release”) in excess of the interest and
other amounts described in clauses (A) through (K) of Section 2.4(a) by delivering to the Agent written notice at least two (2)
Business Days prior to the proposed date of such release (a “Collection Account Release Notice”) (x) specifying the
date and amount of the Collection Account Release and (y) certifying that, immediately before and after giving effect to such
Collateral Account Release, (A) Borrower is and shall be in compliance with the Borrowing Base and (B) no Default or Event of
Default has occurred and is continuing. A Collections Account Release may be applied towards the acquisition of new Collateral
or for the general corporate purposes of the Borrower. A Collection Account Release Notice shall be irrevocable when delivered.

 

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No prepayment pursuant
to clause (i) above or any Collection Account Release shall be given effect unless the Borrower has complied with the terms of
any Hedge Agreement requiring that one or more Hedge Transactions be terminated or amended in whole or in part as the result of
any such prepayment or such Collection Account Release, and the Borrower has paid all Hedge Breakage Costs owing to the relevant
Hedge Provider for any such termination or amendment. If any Prepayment Notice relating to any prepayment is given, the amount
specified in such Prepayment Notice shall be due and payable on the date specified therein, together with any Breakage Costs (including
Hedge Breakage Costs) related thereto. If any such Collection Account Release Notice is given, the amount remitted to Borrower
pursuant to such Collection Account Release Notice shall be reduced by the amount of any Breakage Costs (including Hedge Breakage
Costs) related thereto.

 

2.4           Apportionment and Application of Payments.

 

On each Remittance
Date, the Servicer on behalf of the Borrower shall pay for receipt by the applicable Lender no later than 11:00 a.m. (New York
City time) to the following Persons, from (i) amounts on deposit in the Collection Account, including, all Collections, to the
extent of available funds, (ii) Servicer Advances, and (iii) amounts received in respect of any Hedge Agreement during such Collection
Period (the sum of such amounts described in clauses (i), (ii) and (iii), being the “Available Collections”)
the following amounts in the following order of priority:

 

(a)            During
the Revolving Credit Availability Period, and in each case unless otherwise specified below, applying Available Collections (provided,
that, Available Collections which do not constitute Principal Collections shall be applied to the extent available before any
Available Collections constituting Principal Collections are applied):

 

(A)          FIRST,
to the Servicer, in an amount equal to any unreimbursed Servicer Advances, for the payment thereof;

 

(B)           SECOND,
to the Servicer, in an amount equal to its accrued and unpaid Servicing Fees to the end of the preceding Collection Period for
the payment thereof;

 

(C)           THIRD,
ratably, (A) to the Backup Servicer and any Successor Servicer, as applicable, in an amount equal to any accrued and unpaid Backup
Servicing Fees, in an amount not to exceed the aggregate Backup Servicing Fees provided for in the Backup Servicer Engagement
Letter per annum, (B) to the Collateral Custodian in an amount equal to any accrued and unpaid Collateral Custodian Fees, in an
amount not to exceed the aggregate Collateral Custodian Fees provided for in the Collateral Custodian Fee Letter per annum, and
(C) to the Agent, in an amount equal to any accrued and unpaid Agent’s Fee;

 

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(D)          FOURTH,
to each Hedge Provider, any amounts owing that Hedge Provider under its respective Hedging Agreement in respect of any Hedge Transaction(s),
for the payment thereof, but excluding, to the extent the Hedge Provider is not the same Person as the Agent, any Swap Breakage
and Indemnity Amounts;

 

(E)           FIFTH,
to the Agent for payment to each Lender, in an amount equal to any accrued and unpaid Interest and Unused Fee for such Remittance
Date;

 

(F)           SIXTH,
first, to the Agent for payment to each Lender, an amount equal to the excess, if any, of outstanding Advances over the lesser
of (i) the Borrowing Base or (ii) the Facility Amount, pro rata;

 

(G)           SEVENTH,
ratably, (A) to the Backup Servicer and any Successor Servicer, as applicable, in an amount equal to any accrued and unpaid Backup
Servicing Fee and any other amounts due and owing to such Person and (B) to the Collateral Custodian in an amount equal to any
accrued and unpaid Collateral Custodian Fee and any other amounts due and owing to such Person, in each case, to the extent not
paid pursuant to clause THIRD above;

 

(H)          EIGHTH,
to each Hedge Provider, any Swap Breakage and Indemnity Amounts owing that Hedge Provider;

 

(I)            NINTH,
to the Agent for payment to each Lender, in the amount of unpaid Breakage Costs with respect to any prepayments made prior to
such Remittance Date and any other costs or expenses, and/or taxes (if any) owed to such Lender;

 

(J)            TENTH,
to the Agent, all other amounts or Obligations then due under this Agreement or the other Loan Documents to the Agent, the Lenders
or any Indemnified Person, each for the payment thereof;

 

(K)          ELEVENTH, to the Servicer, all other amounts then due under this Agreement or the other Loan Documents to the Servicer,
for the payment thereof; and

 

(L)           TWELFTH, all remaining amounts to the Borrower.

 

(b)           During
the Amortization Period, to the extent of Available Collections (provided, that, (i) Available Collections which do not constitute
Principal Collections shall be applied to clauses FIRST through SIXTH to the extent available before any Available Collections
constituting Principal Collections are applied, and (ii) unless an Event of Default shall have occurred and be continuing, only
Available Collections constituting Principal Collections shall be applied to clause SIXTH):

 

(A)          FIRST,
to the Servicer, in an amount equal to any unreimbursed Servicer Advances, for the payment thereof;

 

(B)           SECOND,
to the Servicer, in an amount equal to its accrued and unpaid Servicing Fees to the end of the preceding Collection Period for
the payment thereof;

 

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(C)           THIRD,
ratably, (A) to the Backup Servicer and any Successor Servicer, as applicable, in an amount equal to any accrued and unpaid Backup
Servicing Fee, in an amount not to exceed the aggregate Backup Servicing Fees provided for in the Backup Servicer Engagement Letter
per annum, (B) to the Collateral Custodian in an amount equal to any accrued and unpaid Collateral Custodian Fee, in an amount
not to exceed the aggregate Collateral Custodian Fees provided for in the Collateral Custodian Fee Letter per annum, and (C) to
the Agent, in an amount equal to any accrued and unpaid Agent’s Fee;

 

(D)          FOURTH, to each Hedge Provider, any amounts owing that Hedge Provider under its respective Hedging Agreement in respect
of any Hedge Transaction(s), for the payment thereof, but excluding, to the extent the Hedge Provider is not the same Person as
the Agent, any Swap Breakage and Indemnity Amounts;

 

(E)           FIFTH,
to the Agent for payment to each Lender, in an amount equal to any accrued and unpaid Interest and Unused Fee for such Remittance
Date;

 

(F)           SIXTH,
to the Agent for ratable payment to each Lender, in an amount to reduce outstanding Advances to zero;

 

(G)           SEVENTH,
ratably, (A) to the Backup Servicer and any Successor Servicer, as applicable, in an amount equal to any accrued and unpaid Backup
Servicing Fee and any other amounts due and owing to such Person and (B) to the Collateral Custodian in an amount equal to any
accrued and unpaid Collateral Custodian Fee and any other amounts due and owing to such Person, in each case, to the extent not
paid pursuant to clause THIRD and FOURTH above;

 

(H)           EIGHTH,
to each Hedge Provider, any Swap Breakage and Indemnity Amounts owing that Hedge Provider;

 

(I)            NINTH,
to the Agent for payment to each Lender, in the amount of unpaid Breakage Costs with respect to any prepayments made on such Remittance
Date, increased costs and/or taxes (if any) owed to such Lender;

 

(J)            TENTH,
to the Agent, all other amounts or Obligations then due under this Agreement or the other Loan Documents to the Agent, the Lenders
or any Indemnified Person, each for the payment thereof;

 

(K)          ELEVENTH,
to the Servicer, all other amounts then due under this Agreement or the other Loan Documents to the Servicer, for the payment
thereof;

 

(L)           TWELFTH,
to the Agent, all other amounts or Obligations then due under this Agreement or the other Loan Documents to any Defaulting Lender,
each for the payment thereof; and

 

(M)         THIRTEENTH,
all remaining amounts to the Borrower.

 

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In the event of a direct
conflict between the priority provisions of this Section 2.4 and other provisions contained in this Agreement or any other Loan
Document, it is the intention of the parties hereto that such priority provisions in such documents shall be read together and
construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict
that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and govern.

 

2.5           Interest Rates: Rates, Payments, and Calculations.

 

(a)           Interest
Rates. Except as provided in Section 2.5(b) below, all Obligations that have been charged to the Loan Account pursuant to
the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to the Interest Rate at such time.

 

(b)           Default Rate. Upon the occurrence and during the continuation of an Event of Default (and at the election of Agent or the
Required Lenders), all Obligations that have been charged to the Loan Account pursuant to the terms hereof shall bear interest
on the Daily Balance thereof at a per annum rate equal to two percent (2.0%) above the Interest Rate otherwise applicable hereunder
(the “Default Rate”).

 

(c)           Payment.
Except to the extent, if any, provided to the contrary in Section 2.10 or Section 2.12, interest and all other fees
payable hereunder shall be due and payable, in arrears, (i) on the first day of each month at any time that Obligations or
Commitments are outstanding, and (ii) on the Maturity Date. Borrower hereby authorizes Agent, from time to time without prior
notice to Borrower, to charge all interest and fees (when due and payable), all Lender Group Expenses (as and when incurred),
all fees and costs provided for in Section 2.10 (as and when accrued or incurred), and all other payments as and when due and
payable under any Loan Document or any Bank Product Agreement (including any amounts due and payable to the Bank Product Providers
in respect of Bank Products) to Borrower’s Loan Account, all of which amounts thereafter shall constitute Advances hereunder
and shall accrue interest at the rate then applicable to Advances hereunder. Any interest, fees, costs, expenses, Lender Group
Expenses, or other amounts payable hereunder or under any other Loan Document or under any Bank Product Agreement that are charged
to the Loan Account shall thereupon constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances
hereunder.

 

(d)           Computation.
All interest and fees chargeable under the Loan Documents shall be computed on the basis of a 360-day year for the actual number
of days elapsed. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon
the Base Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Base Rate.

 

(e)           Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest rate or rates payable under this Agreement,
plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent
jurisdiction shall, in a final determination, deem applicable. Borrower and the Lender Group, in executing and delivering this
Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however,
that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds
the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrower is and shall be
liable only for the payment of such maximum as allowed by law, and payment received from Borrower in excess of such legal maximum,
whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess.

 

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2.6          Cash Management.

 

(a)           Borrower
shall and shall cause each of its Subsidiaries to, or shall cause Servicer to, (i) establish and maintain cash management services
of a type and on terms satisfactory to Agent at one or more of the banks set forth on Schedule 2.6(a) (each, a “Cash Management
Bank”), including without limitation, the Collection Account Bank, and shall request in writing and otherwise take such
reasonable steps to ensure that all of Borrower’s and its Subsidiaries’ Account Debtors (and third party payors in
the case of Account Debtors with governmental and institutional payors) forward payment of the amounts owed by them directly to
the Collection Account, and (ii) deposit or cause to be deposited promptly, and in any event no later than the first Business
Day after the date of receipt thereof, all Collections received in good funds (including those sent directly by their Account
Debtors to Borrower or one of its Subsidiaries) into the Collection Account, (iii) cause all payments for each sale or other disposition
of one or more Notes Receivable or payment in full of one or more Notes Receivable in connection with the refinancing of such
Note Receivable or the sale and release of the collateral securing such Note Receivable to be made by the escrow company, title
insurance company or refinancing lender or purchaser directly to the Collection Account by wire transfer or check drawn on the
account of such escrow company or title insurance company or by cashier’s check, and (iv) until such time as the Collection
Account or an account in Agent’s name for receipt of Collections (each a “Cash Management Account”) is established,
forward or cause to be forwarded no later than the first Business Day after the date of receipt thereof, all of their Collections
to Agent’s Account. Borrower shall, or shall cause Servicer to, request in writing and otherwise take such reasonable steps
to ensure that all of Borrower’s and its Subsidiaries’ Account Debtors forward payment of the amounts owed by them
to Borrower directly to a Cash Management Account. Borrower covenants that no Collections made in respect of Borrower shall be
commingled with Horizon’s, Servicer’s or any other Person’s deposits.

 

(b)           Each
Cash Management Bank shall establish and maintain Cash Management Agreements with Agent and Borrower, in form and substance acceptable
to Agent in its Permitted Discretion. Each such Cash Management Agreement shall provide, among other things, that (i) the Cash
Management Bank will comply with any instructions originated by Agent directing the disposition of the funds in such Cash Management
Account without further consent by Borrower, as applicable, (ii) the Cash Management Bank has no rights of setoff or recoupment
or any other claim against the applicable Cash Management Account other than for payment of its service fees and other charges
directly related to the administration of such Cash Management Account and for returned checks or other items of payment, and
(iii) it will forward, by an automatic daily sweep, all amounts in the applicable Cash Management Account to the deposit account
of Agent designated in such Cash Management Agreement.

 

(c)           So
long as no Default or Event of Default has occurred and is continuing, Borrower may amend Schedule 2.6(a) to add or replace a
Cash Management Bank or Cash Management Account; provided, however, that (i) such prospective Cash Management Bank shall be reasonably
satisfactory to Agent and Agent shall have consented in writing in advance to the establishment of such Cash Management Account
with the prospective Cash Management Bank, and (ii) prior to the time of the opening of such Cash Management Account, Borrower
(or its Subsidiary, as applicable) and such prospective Cash Management Bank shall have executed and delivered to Agent a Cash
Management Agreement. Borrower (or its Subsidiaries, as applicable) shall close any of its Cash Management Accounts (and establish
replacement cash management accounts in accordance with the foregoing sentence) promptly and in any event within thirty (30) days
of notice from Agent that the creditworthiness of any Cash Management Bank is no longer acceptable in Agent’s reasonable
judgment, or as promptly as practicable and in any event within sixty (60) days of notice from Agent that the operating performance,
funds transfer, or availability procedures or performance of the Cash Management Bank with respect to Cash Management Accounts
or Agent’s liability under any Cash Management Agreement with such Cash Management Bank is no longer acceptable in Agent’s
reasonable judgment.

 

    	-55-

     

    

 

(d)           The
Cash Management Accounts shall be cash collateral accounts subject to Control Agreements, and Borrower hereby grants a Lien in
all Cash Management Accounts to Agent to secure payment of the Obligations.

 

2.7          Crediting
Payments. The receipt of any payment item by Agent (whether from transfers to Agent by the Cash Management Banks pursuant to the
Cash Management Agreements or otherwise) shall not be considered a payment on account unless such payment item is a wire transfer
of immediately available federal funds made to the Agent’s Account (or made by a Cash Management Bank to the deposit account
of Agent designated in the relevant Cash Management Agreement) or unless and until such payment item is honored when presented
for payment. Should any payment item not be honored when presented for payment, then Borrower shall be deemed not to have made
such payment and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment
item shall be deemed received by Agent only if it is received into the Agent’s Account (or into the deposit account of Agent
designated in the relevant Cash Management Agreement) on a Business Day on or before 2:00 p.m. (New York time). If any payment
item is received into the Agent’s Account (or into the deposit account of Agent designated in the relevant Cash Management
Agreement) on a non-Business Day or after 2:00 p.m. (New York time) on a Business Day, it shall be deemed to have been received
by Agent as of the opening of business on the immediately following Business Day.

 

2.8           Designated
Account. Agent is authorized to make the Advances under this Agreement based upon telephonic or other instructions received from
anyone purporting to be an Authorized Person or, without instructions, if pursuant to Section 2.5(c). Borrower agrees to establish
and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the Advances
requested by Borrower and made by Agent or the Lenders hereunder. Unless otherwise agreed by Agent and Borrower, any Advance requested
by Borrower and made by Agent or the Lenders hereunder shall be made to the Designated Account.

 

2.9           Maintenance
of Loan Account; Statements of Obligations. Agent shall maintain an account on its books in the name of Borrower (the “Loan
Account”) on which Borrower shall be charged with all Advances made by Agent or the Lenders to Borrower or for Borrower’s
account, and with all other payment Obligations hereunder or under the other Loan Documents, including, accrued interest, fees
and expenses, and Lender Group Expenses. In accordance with Section 2.7, the Loan Account will be credited with all payments received
by Agent from Borrower or for Borrower’s account, including all amounts received from any Cash Management Bank in the deposit
account of Agent designated in the relevant Cash Management Agreement. Agent shall render statements regarding the Loan Account
to Borrower, including principal, interest, fees, and including an itemization of all charges and expenses constituting Lender
Group Expenses owing, and such statements, absent manifest error, shall be conclusively presumed to be correct and accurate and
constitute an account stated between Borrower and the Lender Group unless, within thirty (30) days after receipt thereof by Borrower,
Borrower shall deliver to Agent written objection thereto describing the error or errors contained in any such statements.

 

    	-56-

     

    

 

2.10        Fees.
Borrower shall pay to Agent the following fees and charges, which fees and charges shall be non-refundable when paid (irrespective
of whether this Agreement is terminated thereafter) and shall be apportioned among the Lenders in accordance with the terms of
letter agreements between Agent and individual Lenders:

 

(a)           Unused
Line Fee. On the first day of each calendar quarter, Borrower shall pay an unused line fee (the “Unused Fee”) equal
to (i) the amount by which (A) the average daily amount of the aggregate Commitments of all Lenders during the immediately
preceding calendar quarter (or portion thereof during which this Agreement is in effect), exceeds (B) the Average Daily Balance
during such immediately preceding calendar quarter (or portion thereof during which this Agreement is in effect), multiplied by
(ii) (1) three-eighths of one percent (0.375%) per annum, during (x) the Ramp-Up Period, (y) during any six month period
following a take-out financing which does not terminate this Agreement and reduces Advances outstanding by more than fifty percent
(50%) or (z) for any period when the Average Daily Balance is less than thirty-five percent (35%) of the average daily amount
of the aggregate Commitments of all Lenders and (2) half of one percent (0.50%) otherwise.

 

(b)           Fees
Under Fee Letters. As and when due and payable under the terms of (i) the Agent Fee Letter, Borrower shall pay to Agent for the
account of Agent the fees set forth in the Agent Fee Letter and (ii) the Fee Letter, Borrower shall pay to Agent for the account
of the Lenders the fees set forth in the Fee Letter.

 

(c)           Audit, Appraisal, and Valuation Charges. For the separate account of Agent, Borrower shall pay to or at the direction of
Agent reasonable audit, appraisal, and valuation fees and charges incurred in connection with financial or collateral audits or
appraisals of Borrower, or appraisals of the Collateral or any portion thereof; provided that (A) so long as no Default or
Event of Default has occurred and is continuing, Borrower will not be charged for more than one (1) financial or collateral inspection,
audit or appraisal during any calendar year, whether pursuant to this Agreement or the Sale and Servicing Agreement, and (B) so
long as no Event of Default has occurred and is continuing, none of Borrower, Horizon nor Horizon Management will be charged for
an aggregate amount in excess of $30,000 for fees and charges during any calendar year covering financial or collateral inspections,
audits or appraisals pursuant to this Agreement or the Sale and Servicing Agreement.

 

    	-57-

     

    

 

2.11        Capital Requirements.

 

(a)           If,
after the date hereof, any Lender determines that (i) the adoption of or change in any law, rule, regulation or guideline regarding
capital or reserve requirements for banks or bank holding companies, or any change in the interpretation, implementation, or application
thereof by any Governmental Authority charged with the administration thereof, or (ii) compliance by such Lender or its parent
bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having
the force of law), has the effect of reducing the return on such Lender’s or such holding company’s capital as a consequence
of such Lender’s Commitments hereunder to a level below that which such Lender or such holding company could have achieved
but for such adoption, change, or compliance (taking into consideration such Lender’s or such holding company’s then
existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount
deemed by such Lender to be material, then such Lender may notify Borrower and Agent thereof. Following receipt of such notice,
Borrower agrees to pay such Lender on demand the amount of such reduction of return of capital as and when such reduction is determined,
payable within ninety (90) days after presentation by such Lender of a statement in the amount and setting forth in reasonable
detail such Lender’s calculation thereof and the assumptions upon which such calculation was based (which statement shall
be deemed true and correct absent manifest error). In determining such amount, such Lender may use any reasonable averaging and
attribution methods. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute
a waiver of such Lender’s right to demand such compensation; provided that Borrower shall not be required to compensate
a Lender pursuant to this Section for any reductions in return incurred more than 180 days prior to the date that such Lender
notifies Borrower of such law, rule, regulation or guideline giving rise to such reductions and of such Lender’s intention
to claim compensation therefor; provided further that if such claim arises by reason of the adoption of or change in any law,
rule, regulation or guideline that is retroactive, then the 180-day period referred to above shall be extended to include the
period of retroactive effect thereof.

 

(b)           If
any Lender requests additional or increased costs referred to in Section 2.12(b)(i) or amounts under Section 2.11(a) or sends
a notice under Section 2.12(b)(ii) relative to changed circumstances (any such Lender, an “Affected Lender”), then
such Affected Lender shall use reasonable efforts to promptly designate a different one of its lending offices or to assign its
rights and obligations hereunder to another of its offices or branches, if (i) in the reasonable judgment of such Affected Lender,
such designation or assignment would eliminate or reduce amounts payable pursuant to Section 2.12(b)(i) or Section 2.11(a), as
applicable, or would eliminate the illegality or impracticality of funding or maintaining LIBOR Rate Loans and (ii) in the reasonable
judgment of such Affected Lender, such designation or assignment would not subject it to any material unreimbursed cost or expense
and would not otherwise be materially disadvantageous to it. Borrower agrees to pay all reasonable out-of-pocket costs and expenses
incurred by such Affected Lender in connection with any such designation or assignment. If, after such reasonable efforts, such
Affected Lender does not so designate a different one of its lending offices or assign its rights to another of its offices or
branches so as to eliminate Borrower’s obligation to pay any future amounts to such Affected Lender pursuant to Section
2.12(b)(i) or Section 2.11(a), as applicable, or to enable Borrower to obtain LIBOR Rate Loans, then Borrower (without prejudice
to any amounts then due to such Affected Lender under Section 2.12(b)(i) or Section 2.11(a), as applicable) may, unless prior
to the effective date of any such assignment the Affected Lender withdraws its request for such additional amounts under Section
2.12(b)(i) or Section 2.11(a), as applicable, or indicates that it is no longer unlawful or impractical to fund or maintain LIBOR
Rate Loans, may seek a substitute Lender reasonably acceptable to Agent to purchase the Obligations owed to such Affected Lender
and such Affected Lender’s Commitments hereunder (a “Replacement Lender”), and if such Replacement Lender agrees
to such purchase, such Affected Lender shall assign to the Replacement Lender its Obligations and Commitments, pursuant to an
Assignment and Acceptance Agreement, and upon such purchase by the Replacement Lender, such Replacement Lender shall be deemed
to be a “Lender” for purposes of this Agreement and such Affected Lender shall cease to be a “Lender”
for purposes of this Agreement.

 

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2.12        LIBOR
Rate Provisions.

 

(a)           Interest Rates. Except as otherwise provided in Sections 2.5(b) and 2.11(b), interest on the Advances shall be charged at
a rate equal to the lesser of (i) the LIBOR Rate plus the Applicable Margin or (ii) the maximum rate of interest allowable
by Law.

 

(b)           Special
Provisions Applicable to LIBOR Rate.

 

(i)            The
LIBOR Rate may be adjusted by Agent with respect to any Lender on a prospective basis to take into account any additional or increased
costs to such Lender of maintaining or obtaining any eurodollar deposits or increased costs, in each case, due to changes in applicable
law occurring subsequent to the commencement of the then applicable Interest Period, including changes in tax laws (other than
with respect to Excluded Taxes) and changes in the reserve requirements imposed by the Board of Governors of the Federal Reserve
System (or any successor), which additional or increased costs would increase the cost of funding or maintaining loans bearing
interest by reference to the LIBOR Rate. In any such event, the affected Lender shall give Borrower and Agent notice of such a
determination and adjustment and Agent promptly shall transmit the notice to each other Lender and, upon its receipt of the notice
from the affected Lender, Borrower may, by notice to such affected Lender (A) require such Lender to furnish to Borrower a statement
setting forth the basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (B) repay
the LIBOR Rate Loans with respect to which such adjustment is made.

 

(ii)           In the event that any change in market conditions or any law, regulation, treaty, or directive, or any change therein or
in the interpretation of application thereof, shall at any time after the date hereof, in the reasonable opinion of any Lender,
make it unlawful or impractical for such Lender to fund or maintain LIBOR Rate Loans or to continue such funding or maintaining,
or to determine or charge interest rates by reference to the LIBOR Rate, such Lender shall give notice of such changed circumstances
to Agent and Borrower, and Agent promptly shall transmit the notice to each other Lender and (A) in the case of any LIBOR Rate
Loans of such Lender that are outstanding, the date specified in such Lender’s notice shall be deemed to be the last day
of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter shall accrue
interest at the rate then applicable to Base Rate Loans, and (B) none of such Lender’s Advances shall be LIBOR Rate Loans
until such Lender determines that it would no longer be unlawful or impractical to do so.

 

    	-59-

     

    

 

(c)           No
Requirement of Matched Funding. Anything to the contrary contained herein notwithstanding, neither Agent, nor any Lender, nor
any of their Participants, is required actually to acquire eurodollar deposits to fund or otherwise match fund any Advance as
to which interest accrues by reference to the LIBOR Rate.

 

2.13        Increase in Facility Amount. Subject to the terms and conditions set forth herein, the Borrower shall have the right,
at any time from the Restatement Effective Date until the Commitment Termination Date, to increase the Facility Amount by an amount
up to $100,000,000 (for a total maximum Facility Amount of $150,000,000). The following terms and conditions shall apply to any
such increase: (i) any such increase shall be obtained from existing Lenders or from other Persons with the consent of the Agent
(each, an “Eligible Assignee”), in each case in accordance with the terms set forth below; (ii) the Commitment of any
Lender may not be increased without the prior written consent of such Lender; (iii) any increase in the Facility Amount shall be
in a minimum principal amount of (x) if such increase shall be obtained from existing Lenders, $5,000,000 and (y) if such increase
shall be obtained from Eligible Assignees who are not Lenders hereunder, $10,000,000; (iv) the Borrower and Lenders shall execute
an acknowledgement (or in the case of the addition of a bank or other financial institution not then a party to this Agreement,
a joinder agreement) in form and content satisfactory to the Agent to reflect the revised Commitments and Facility Amount (the
Lenders do hereby agree to execute such acknowledgement (or joinder agreement) without delay unless the acknowledgement purports
to (i) increase the Commitment of a Lender without such Lender’s consent or (ii) amend this Agreement or the other Loan Documents
other than as provided for in this Section 2.13); (v) the Borrower shall execute such promissory notes as are necessary to reflect
the increase in or creation of the Commitments; (vi) if any Advances are outstanding at the time of any such increase, the Borrower
shall make such payments and adjustments on the Advances (including payment of any break funding amount owing in connection therewith)
as necessary to give effect to the revised commitment percentages and outstandings of the Lenders; (vii) the Borrower may solicit
commitments from Eligible Assignees that are not then a party to this Agreement so long as such Eligible Assignees are reasonably
acceptable to the Agent and execute a joinder agreement in form and content satisfactory to the Agent; (viii) the conditions set
forth in Section 3.2 shall be satisfied in all material respects; (ix) after giving effect to any such increase in the Facility
Amount, no Default or Early Event of Default shall have occurred; (x) the Borrower shall have provided to the Agent, at least thirty
(30) days prior to such proposed increase in the Facility Amount, written evidence demonstrating pro forma compliance with the
Asset Quality Test and compliance with the Borrowing Base after giving effect to such proposed increase, such evidence to be satisfactory
in the sole discretion of the Agent. The amount of any increase in the Facility Amount hereunder shall be offered first to the
existing Lenders, and in the event the additional commitments which existing Lenders are willing to take shall exceed the amount
requested by the Borrower, such excess shall be allocated in proportion to the commitments of such existing Lenders willing to
take additional commitments. If the amount of the additional commitments requested by the Borrower shall exceed the additional
commitments which the existing Lenders are willing to take, then the Borrower may invite other Eligible Assignees reasonably acceptable
to the Agent to join this Agreement as Lenders hereunder for the portion of commitments not taken by existing Lenders, provided
that such Eligible Assignees shall enter into such joinder agreements to give effect thereto as the Agent and the Borrower may
reasonably request. Unless otherwise agreed by the Agent and the Lenders, the terms of any increase in the Facility Amount shall
be the same as those in effect prior to any increase; provided, however, that should the terms of the increase agreed to be other
than those in effect prior to the increase, then the Loan Documents shall, with the consent of the Agent and the Lenders, be amended
to the extent necessary to incorporate any such different terms.

 

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2.14        Reduction
of Facility Amount. The Borrower shall be entitled at its option, on any Business Day (i) prior to the occurrence of an Early
Termination Event and (ii) on or prior to August 31, 2019, reduce the Facility Amount by $25,000,000; provided, that the Borrower
shall give prior written notice of such reduction to the Administrative Agent and each Managing Agent.
The Lenders hereby agree that such reduction shall be allocated in full to the Commitment of KeyBank National Association, until
the same shall be reduced to $50,000,000. Any request for a reduction or termination pursuant to this Section 2.14 shall be irrevocable.

 

2.15       
Effect of Benchmark Transition Event.

 

(a)           Benchmark
Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, (i) upon the determination of the
Agent (which shall be conclusive absent manifest error) that a Benchmark Transition Event has occurred or (ii) upon the occurrence
of an Early Opt-in Election, as applicable, the Agent and the Borrower may amend this Agreement to replace LIBOR with a Benchmark
Replacement, by a written document executed by the Borrower and the Agent, subject to the requirements of this Section 2.15. Notwithstanding
the requirements of clauses (ii) and (iii) of Section 15.1(a) or anything else to the contrary herein or in any other Loan Document,
any such amendment with respect to a Benchmark Transition Event will become effective and binding upon the Agent, the Borrower
and the Lenders at 5:00 p.m. on the fifth (5th) Business Day after the Agent has posted such proposed amendment to all Lenders
and the Borrower so long as the Agent has not received, by such time, written notice of objection to such amendment from Lenders
comprising the Required Lenders, and any such amendment with respect to an Early Opt-in Election will become effective and binding
upon the Agent, the Borrower and the Lenders on the date that Lenders comprising the Required Lenders have delivered to the Agent
written notice that such Required Lenders accept such amendment. No replacement of LIBOR with a Benchmark Replacement pursuant
to this Section 2.15 will occur prior to the applicable Benchmark Transition Start Date.

 

(b)           Benchmark
Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Agent will have the right
to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in
any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without
any further action or consent of any other party to this Agreement.

 

(c)           Notices;
Standards for Decisions and Determinations. The Agent will promptly notify the Borrower and the Lenders in writing of (i) any
occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date
and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark
Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination,
decision or election that may be made by the Agent or Lenders pursuant to this Section 2.15, including, without limitation, any
determination with respect to a tenor, comparable replacement rate or adjustment, or implementation of any Benchmark Replacement
Conforming Changes, or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain
from taking any action, will be conclusive and binding on all parties hereto absent manifest error and may be made in its or their
sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this
Section 2.15 and shall not be a basis of any claim of liability of any kind or nature by any party hereto, all such claims being
hereby waived individually be each party hereto.

 

    	-61-

     

    

 

(d)           Benchmark
Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the
Borrower may revoke any request for an Advance of, conversion to or continuation of LIBOR Rate Loans to be made, converted or
continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such
request into a request for an Advance of or conversion to Base Rate Loans.

 

3.            
CONDITIONS; TERM OF AGREEMENT.

 

3.1           Conditions
Precedent to the Restatement Effective Date and Initial Extension of Credit. The obligation of each Lender to make its initial
extension of credit under this Amended and Restated Loan and Security Agreement, is subject to the fulfillment, to the satisfaction
of Agent and each Lender (the making of such initial extension of credit by a Lender being conclusively deemed to be its satisfaction
or waiver of the following), of each of the following conditions precedent:

 

(a)           Agent
shall have received financing statements to be filed in such office or offices as may be necessary or, in the opinion of Agent,
desirable to perfect the Agent’s Liens in and to the Collateral, and Agent shall have received searches reflecting the filing
of all such financing statements;

 

(b)           Agent
shall have received each of the following documents, in form and substance satisfactory to Agent, duly executed, and each such
document shall be in full force and effect:

 

(i)            the Cash Management Agreements,

 

(ii)           the Closing Certificates,

 

(iii)          the Control Agreements,

 

(iv)          each
of the Agent Fee Letter and the Fee Letter,

 

(v)           the
Sale and Servicing Agreement,

 

(vi)          the
Collateral Custodian Fee Letter,

 

(vii)         the Backup Servicer Engagement Letter; and

 

    	-62-

     

    

 

(viii)        a
file-stamped copy of a UCC-1 financing statement naming Horizon as seller and Borrower as buyer, filed with the Delaware Secretary
of State to perfect the transfer and sale of Notes Receivable to Borrower from time to time pursuant to the Sale and Servicing
Agreement.

 

(c)           Secretary’s
Certificates from the Secretary (or equivalent) of each of (a) Borrower, (b) Horizon, and (c) Horizon Management, dated as
of the Restatement Effective Date, in form and substance satisfactory to Agent, certifying that (i) a copy of such Person’s
Certificate of Formation and Operating Agreement or Certificate or Articles of Incorporation (as applicable) and any other Governing
Documents, as well as all amendments thereto, are attached, (ii) other than as reflected by the documents delivered pursuant to
(i) above, no action or proceeding for the amendment of such Person’s Governing Documents has been taken or is presently
contemplated, (iii) attached is a complete and correct copy of an authorization by or resolution of such Person’s members,
managers or board of directors (as applicable) authorizing such Person’s execution, delivery and performance of the Loan
Agreement and the other Loan Documents to which it is a party and the transactions contemplated thereby, and (iv) a specimen signature
of each manager, member or officer of such Person who is authorized to execute the Loan Documents on behalf of such Person is
included and that each of such individuals is duly qualified as of the Restatement Effective Date;

 

(d)           Agent
shall have received copies of Borrower’s, Horizon’s and Horizon Management’s Governing Documents, as amended,
modified, or supplemented to the Restatement Effective Date, certified by the Secretary of such Person or the Manager of such
Person, as applicable;

 

(e)           Agent
shall have received certificates of status with respect to Borrower, Horizon, and Horizon Management, dated within 10 days of
the Restatement Effective Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of
such Person, which certificate shall indicate that such Person is in good standing in such jurisdiction;

 

(f)            Agent
shall have received certificates of status with respect to Borrower, Horizon, and Horizon Management, each dated within thirty
(30) days of the Restatement Effective Date, such certificates to be issued by the appropriate officer of the jurisdictions (other
than the jurisdiction of organization of such Person) in which its failure to be duly qualified could reasonably be expected to
result in a Material Adverse Change, which certificates shall indicate that such Person is in good standing in such jurisdictions;

 

(g)           Agent
shall have received an opinion or opinions of Borrower’s, Horizon’s, and Horizon Management’s counsel in form
and substance satisfactory to Agent;

 

(h)           Agent
shall have completed its business, legal, and collateral due diligence, including a review of the legal structure of Horizon,
Horizon Management, Borrower and their Affiliates, the operating and accounting systems and controls of Horizon, Horizon Management,
and Borrower, collateral audit and review of the books and records of Horizon, Horizon Management, and Borrower, a review of their
collateral valuation methods, verification of each of such Person’s representations and warranties to the Lender Group,
and verification of third-party service providers, in each case, the results of which shall be satisfactory to Agent;

 

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(i)            Borrower shall pay all Lender Group Expenses incurred in connection with the transactions evidenced by this Agreement;

 

(j)            with respect to each Eligible Note Receivable, Agent or the Collateral Custodian shall be in possession of all of the Required
Asset Documents;

 

(k)           Agent shall have received and approved the Required Procedures, which Required Procedures shall be consistent with those
previously represented to Agent and shall be acceptable to Agent in its Permitted Discretion;

 

(l)             Agent’s
counsel shall have received and reviewed all standard documentation evidencing, governing, securing and guaranteeing Notes Receivable,
and been satisfied such documentation provides Borrower and Agent with appropriate rights and remedies to enforce any necessary
collection actions with respect to such Notes Receivable;

 

(m)          Agent
shall have received evidence satisfactory to Agent either that any Person having a Lien (except for Permitted Liens, if any) with
respect to the assets of Borrower shall have released such Lien or that such Lien shall be automatically terminated upon the funding
of the Advances to be made on the Restatement Effective Date;

 

(n)           Borrower,
Horizon and Horizon Management shall have received all licenses, approvals or evidence of other actions required by any Governmental
Authority in connection with the execution and delivery by Borrower, Horizon or Horizon Management of the Loan Documents or with
the consummation of the transactions contemplated thereby;

 

(o)           Agent
shall have received evidence satisfactory to Agent that as of the date of, and after giving effect to, the initial Advance, (i) Borrower
has a Tangible Net Worth (based upon the capital contribution by Horizon of cash or the unfinanced portion of Eligible Notes Receivable)
of not less than the Minimum Equity Requirement, (ii) Horizon has a Tangible Net Worth of not less than $100,000,000, and
(iii) Horizon Management has a Tangible Net Worth of not less than $500,000;

 

(p)            Agent
shall have received and reviewed a copy of the finalized disaster recovery plan for Horizon and Horizon Management’s, the
results of which shall be satisfactory to Agent;

 

(q)           Agent
shall have received evidence satisfactory to Agent that as of the Restatement Effective Date, the Borrower has made the deposit
to the Indemnity Reserve contemplated by Section 2.1(b); and

 

(r)            All
other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered,
executed, or recorded and shall be in form and substance satisfactory to Agent.

 

3.2          Conditions
Subsequent to the Initial Extension of Credit. The obligation of the Lender Group (or any member thereof) to continue to make
Advances (or otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of each
of the following conditions subsequent (any failure by Borrower to satisfy or cause the satisfaction of each of such conditions
subsequent constituting an Event of Default):

 

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(a)            within ninety (90) days after the Restatement Effective Date, Agent and Borrower shall have delivered a notice pursuant
to that certain Collateral Access Agreement with respect to the principal location(s) where Horizon and Borrower maintain the Books
relating to the Notes Receivable and other Collateral (i.e. 312 Farmington Avenue, Farmington, Connecticut 06032), notifying the
other parties thereto of the resignation of the former agent and appointment of the Agent;

 

(b)            (i)
within ninety (90) days after the Restatement Effective Date, Agent shall have received certificates of insurance verifying that
Borrower and Servicer have increased the amount of their existing fidelity coverage as of the Restatement Effective Date to an
amount not less than $1,500,000, with an insurance company(ies) reasonably satisfactory to Agent, and (ii) within thirty (30)
days after the aggregate Commitments first equal or exceed $100,000,000, Agent shall have received lender's loss payee endorsements
in favor of Agent meeting the requirements of Section 6.8 with respect to all such policies; and

 

(c)           prior to depositing any assets into the Securities Account listed on Schedule 5.17 as of the Restatement Effective
Date, and in any case no later than sixty (60) days after the Restatement Effective Date, Borrower shall deliver to Agent an executed
Control Agreement acceptable to Agent in its Permitted Discretion with respect to such Securities Account.

 

3.3          Conditions
Precedent to all Extensions of Credit. The obligation of the Lender Group (or any member thereof) to make any Advances hereunder
at any time (or to extend any other credit hereunder), including the initial Advance, shall be subject to the following conditions
precedent:

 

(a)           the representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in
all material respects on and as of the date of such extension of credit, as though made on and as of such date (except to the extent
that such representations and warranties relate solely to an earlier date);

 

(b)           no
Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall either result
from the making thereof;

 

(c)           no
injunction, writ, restraining order, or other order of any nature restricting or prohibiting, directly or indirectly, the extending
of such Advance shall have been issued and remain in force by any Governmental Authority against Borrower, Agent, any Lender,
or any of their respective Affiliates;

 

(d)           no Material Adverse Change shall have occurred,

 

(e)           on
or before the day preceding the date of such Advance, Borrower shall have delivered to the Collateral Custodian each of the Required
Asset Documents with respect to each Note Receivable to be acquired or funded with any portion of such Advance; provided that
if Borrower is funding the acquisition of such Note Receivable with the proceeds of Advances being requested with respect to such
Note Receivable, then this condition shall be satisfied if the Collateral Custodian and Agent are in possession of .pdf copies
of each of the Required Asset Documents and the originals are delivered to the Collateral Custodian no later than five (5) Business
Days thereafter;

 

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(f)            before
and after giving effect to such Advance and to the application of proceeds therefrom the Asset Quality Test shall be satisfied,
as calculated on such date;

 

(g)           before
and after giving effect to such Advance and to the application of proceeds therefrom, the Minimum Equity Requirement shall be
maintained;

 

(h)           before and after giving effect to such advance and to the application of proceeds therefrom, (a) the lesser of (i) the Borrowing
Base and (ii) the Facility Amount shall be equal to or greater than (b) the outstanding Advances;

 

(i)            the
end of the Revolving Credit Availability Period shall not have occurred (other than with respect to a Post-Termination Revolving
Note Receivable Funding); and

 

(j)            Agent
shall have received a current Borrowing Base Certificate.

 

3.4          Term. This Agreement shall continue in full force and effect for a term commencing on the Restatement Effective Date
and ending at the conclusion of the Amortization Period (the “Maturity Date”). The foregoing notwithstanding, the Lender
Group, upon the election of the Required Lenders, shall have the right to terminate its obligations under this Agreement immediately
and without notice upon the occurrence and during the continuation of an Event of Default.

 

3.5           Effect
of Termination. On the Maturity Date or earlier termination of this Agreement in accordance with its terms, all Obligations immediately
shall become due and payable without notice or demand and Borrower shall be required to repay all of the Obligations in full.
No termination of the obligations of the Lender Group (other than payment in full of the Obligations and termination of the Commitments)
shall relieve or discharge Borrower or any of its Affiliates of its duties, obligations, or covenants hereunder or under any other
Loan Document and Agent’s Liens in the Collateral shall continue to secure the Obligations and shall remain in effect until
all Obligations have been paid in full and the Commitments have been terminated. When all of the Obligations have been paid in
full and the Lender Group’s obligations to provide additional credit under the Loan Documents have been terminated irrevocably,
Agent will, at Borrower’s sole expense, execute and deliver any termination statements, lien releases, discharges of security
interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary
to release, as of record, Agent’s Liens and all notices of security interests and liens previously filed by Agent.

 

3.6           Early
Termination of Commitments by Borrower. Borrower has the option, at any time upon sixty (60) days prior written notice to Agent
(or such lesser period as may be acceptable to the Required Lenders), to terminate this Agreement and terminate the Commitments
hereunder (if still in effect) by repaying to Agent, for the benefit of the Lender Group, all of the Obligations in full, together
with all sums payable under the Agent Fee Letter and the Fee Letter, including, without limitation, the Prepayment Make-Whole
Amount associated with such termination. In the event of the termination of this Agreement and repayment of the Obligations at
any time prior to the Maturity Date, for any other reason, including (a) termination upon the election of the Required Lenders
to terminate after the occurrence and during the continuation of an Event of Default, (b) foreclosure by Agent or Lenders
and sale of Collateral, (c) sale of the Collateral in any Insolvency Proceeding of Borrower, or (d) restructure, reorganization,
or compromise of the Obligations by the confirmation of a plan of reorganization or any other plan of compromise, restructure,
or arrangement in any Insolvency Proceeding of Borrower, then, in view of the impracticability and extreme difficulty of ascertaining
the actual amount of damages to the Lender Group or profits lost by the Lender Group as a result of such early termination, and
by mutual agreement of the parties as to a reasonable estimation and calculation of the lost profits or damages of the Lender
Group, Borrower shall pay to Agent any fees provided for in the Agent Fee Letter and the Fee Letter, as applicable.

 

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4.             CREATION
OF SECURITY INTEREST.

 

4.1           Grant
of Security Interest. Borrower hereby grants to Agent, for the benefit of the Lender Group and the Bank Product Providers, a continuing
security interest in all of Borrower’s right, title, and interest in all currently existing and hereafter acquired or arising
Borrower Collateral in order to secure prompt repayment of any and all of the Obligations in accordance with the terms and conditions
of the Loan Documents and in order to secure prompt performance by Borrower of each of its covenants and duties under the Loan
Documents. The Agent’s Liens in and to the Borrower Collateral shall attach to all Borrower Collateral without further act
on the part of Agent or Borrower. Anything contained in this Agreement or any other Loan Document to the contrary notwithstanding,
except for Permitted Dispositions, Borrower has no authority, express or implied, to dispose of any item or portion of the Collateral.

 

4.2           Negotiable
Collateral. In the event that any Borrower Collateral, including proceeds, is evidenced by or consists of Negotiable Collateral
other than Notes Receivable previously delivered to and being held by the Agent or the Collateral Custodian, and if and to the
extent that Agent determines that perfection or priority of Agent’s security interest is dependent on or enhanced by possession,
Borrower, promptly upon the request of Agent, shall endorse and deliver physical possession of such Negotiable Collateral and
all agreements and documents related thereto to Agent or the Collateral Custodian. All Notes Receivable shall be delivered to
Agent or the Collateral Custodian pursuant to this Agreement and the Sale and Servicing Agreement to hold for the benefit of Agent
and Lenders, duly endorsed in blank or as follows on the back of the signature page thereof or on a separate allonge affixed thereto:

 

“Pay to the Order
of _______________________________, without recourse

 

HORIZON CREDIT II LLC

 

By: 

 

Name:

 

Its: [Authorized Person].”

 

4.3             
Collection of Accounts, General Intangibles, and Negotiable Collateral. At any time after the occurrence and during
the continuation of an Event of Default, Agent or Agent’s designee may (a) notify Account Debtors of Borrower and makers
of Notes Receivable that the Accounts, Notes Receivable, chattel paper, or General Intangibles have been assigned to Agent or that
Agent has a security interest therein, (b) cause a replacement servicer to take possession of, and collect, Borrower’s Accounts,
or (c) collect Borrower’s Accounts, Notes Receivable, chattel paper, or General Intangibles directly and charge the collection
costs and expenses to the Loan Account. Borrower agrees that it will hold in trust for the Lender Group, as the Lender Group’s
trustee, any of its Collections that it receives and immediately will deliver such Collections to Servicer pursuant to the Sale
and Servicing Agreement or, at the request of Agent, to Agent or a Cash Management Bank, in each case in their original form as
received by Borrower.

 

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4.4           Filing
of Financing Statements; Commercial Tort Claims; Delivery of Additional Documentation Required.

 

(a)           Borrower
authorizes Agent to file any financing statement necessary or desirable to effectuate the transactions contemplated by the Loan
Documents, and any continuation statement or amendment with respect thereto, in any appropriate filing office without the signature
of Borrower where permitted by applicable law. Borrower hereby ratifies the filing of any financing statement filed without the
signature of Borrower prior to the date hereof.

 

(b)           If Borrower acquires any commercial tort claims after the date hereof, Borrower shall promptly (but in any event within
three (3) Business Days after such acquisition) deliver to Agent a written description of such commercial tort claim and shall
deliver a written agreement, in form and substance satisfactory to Agent, pursuant to which Borrower shall grant a perfected security
interest in all of its right, title and interest in and to such commercial tort claim to Agent, as security for the Obligations
(a “Commercial Tort Claim Assignment”).

 

(c)           At
any time upon the request of Agent, Borrower shall execute or deliver to Agent, and shall cause its Subsidiaries to execute or
deliver to Agent, any and all fixture filings, security agreements, pledges, assignments, Commercial Tort Claim Assignments, endorsements
of certificates of title, and all other documents (collectively, the “Additional Documents”) that Agent may request
in its Permitted Discretion, in form and substance satisfactory to Agent, to create, perfect, and continue perfected or to better
perfect the Agent’s Liens in the assets of Borrower (whether now owned or hereafter arising or acquired, tangible or intangible,
real or personal), to create and perfect Liens in favor of Agent in any owned Real Property acquired after the Closing Date, and
in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents. To the maximum extent
permitted by applicable law, Borrower authorizes Agent to execute any such Additional Documents in Borrower’s name and authorizes
Agent to file such executed Additional Documents in any appropriate filing office. In addition, on such periodic basis as Agent
shall require, Borrower shall (i) provide Agent with a report of all new material patentable, copyrightable, or trademarkable
materials acquired or generated by Borrower during the prior period, (ii) cause all material patents, copyrights, and trademarks
acquired or generated by Borrower that are not already the subject of a registration with the appropriate filing office (or an
application therefor diligently prosecuted) to be registered with such appropriate filing office in a manner sufficient to impart
constructive notice of Borrower’s or the applicable Subsidiary’s ownership thereof, and (iii) cause to be prepared,
executed, and delivered to Agent supplemental schedules to the applicable Loan Documents to identify such patents, copyrights,
and trademarks as being subject to the security interests created thereunder; provided, however, that neither Borrower nor any
of its Subsidiaries shall register with the U.S. Copyright Office any unregistered copyrights (whether in existence on the Closing
Date or thereafter acquired, arising, or developed) unless (i) the Borrower provides Agent with written notice of its intent to
register such copyrights not less than thirty (30) days prior to the date of the proposed registration, and (ii) prior to such
registration, the applicable Person executes and delivers to Agent a copyright security agreement in form and substance satisfactory
to Agent, supplemental schedules to any existing copyright security agreement, or such other documentation as Agent reasonably
deems necessary in order to perfect and continue perfected Agent’s Liens on such copyrights following such registration.

 

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(d)           Borrower
hereby assigns to Agent any and all rights of Borrower to access any and all storage facilities where any Collateral or information
relating to Collateral may be stored and Borrower hereby authorizes Agent, at any time after the occurrence and during the continuation
of an Event of Default, to enter upon any such storage facilities and remove any contents thereof in connection with Agent’s
exercise of its remedies hereunder.

 

4.5           Power
of Attorney. Borrower hereby irrevocably makes, constitutes, and appoints Agent (and any of Agent’s officers, employees,
or agents designated by Agent) as Borrower’s true and lawful attorney, with power to (a) if Borrower refuses to, or fails
timely to execute and deliver any of the documents described in Section 4.4, sign the name of Borrower on any of the documents
described in Section 4.4, (b) at any time that an Event of Default has occurred and is continuing, sign Borrower’s name
on any invoice or bill of lading relating to the Collateral, drafts against Account Debtors, or notices to Account Debtors, (c)
send requests or make telephone inquiries for verification of Borrower’s Accounts or Notes Receivable, (d) endorse Borrower’s
name on any of its payment items (including all of its Collections) that may come into the Lender Group’s possession, (e)
at any time that an Event of Default has occurred and is continuing, make, settle, and adjust all claims under Borrower’s
policies of insurance and make all determinations and decisions with respect to such policies of insurance, and (f) at any time
that an Event of Default has occurred and is continuing, settle and adjust disputes and claims respecting Borrower’s Accounts,
Notes Receivable, chattel paper, or General Intangibles directly with Account Debtors or makers of Notes Receivable, for amounts
and upon terms that Agent determines to be reasonable, in Agent’s Permitted Discretion, and Agent may cause to be executed
and delivered any documents and releases that Agent determines to be necessary. The appointment of Agent as Borrower’s attorney,
and each and every one of its rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have
been fully and finally repaid and performed and the Lender Group’s obligations to extend credit hereunder are terminated.

 

4.6           Right
to Inspect and Verify. Agent (through any of its officers, employees, or agents) shall have the right, from time to time hereafter,
and so long as no Default or Event of Default has occurred and in continuing, upon reasonable notice and during normal business
hours (i) to inspect the Books and make copies or abstracts thereof, (ii) to communicate directly with any and all Account Debtors
and makers of Notes Receivable to verify the existence and terms thereof, and (iii) to check, test, and appraise the Collateral,
or any portion thereof, in order to verify Borrower’s and its Subsidiaries’ financial condition or the amount, quality,
value, condition of, or any other matter relating to, the Collateral; and Borrower shall permit any designated representative
of Agent to visit and inspect any of the properties of the Borrower to inspect and to discuss its finances and properties and
Collateral, upon reasonable notice and at such reasonable times during normal business hours ; provided that (A) so long as no
Default or Event of Default has occurred and is continuing, Borrower will not be charged for more than one (1) financial or collateral
inspection, audit or appraisal during any calendar year, whether pursuant to this Agreement or the Sale and Servicing Agreement,
and (B) so long as no Event of Default has occurred and is continuing, none of Borrower, Horizon nor Horizon Management will be
charged for an aggregate amount in excess of $30,000 for fees and charges during any calendar year covering financial or collateral
inspections, audits or appraisals pursuant to this Agreement or the Sale and Servicing Agreement.

 

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4.7           Control Agreements. Borrower agrees that it will take any or all reasonable steps in order for Agent to obtain control
in accordance with Sections 8-106, 9-104, 9-105, 9-106, and 9-107 of the Code with respect to all of its or their Securities Accounts,
Deposit Accounts, electronic chattel paper, Investment Property, and letter-of-credit rights. Upon the occurrence and during the
continuance of an Event of Default, Agent may notify any bank or securities intermediary to liquidate the applicable Deposit Account
or Securities Account or any related Investment Property maintained or held thereby and remit the proceeds thereof to Agent’s
Account or the deposit account of Agent designated in the relevant Control Agreement.

 

4.8           Servicing
of Notes Receivable. Until such time as Agent shall notify the Borrower of the revocation of such right after the occurrence and
during the continuation of an Event of Default, the Borrower (a) shall, at its own expense (including through the application
of available funds pursuant to Section 2.4), cause the Servicer to service all of the Notes Receivable, including, without limitation,
(i) the billing, posting and maintaining complete records applicable thereto, and (ii) taking of such action with respect to the
Notes Receivable as the Borrower may deem advisable, and (b) may grant, in the ordinary course of business, to any maker of a
Note Receivable, any adjustment to which such maker may be lawfully entitled, and may take such other actions relating to the
settling of any such maker’s claims as may be commercially reasonable, but in each case in accordance with the Required
Procedures. Agent may, at its option, at any time or from time to time, after the occurrence and during the continuation of an
Event of Default hereunder, revoke the collection and servicing rights given to Borrower herein by giving notice to Borrower in
accordance with the terms of the Sale and Servicing Agreement.

 

4.9           Borrower’s
Perfection. Borrower represents to the Lender Group that: (a) all necessary financing statements and (b) all related financing
statement amendments or assignments in order to cause Borrower to be properly noted as secured party of record with respect thereto,
have been filed in all filing locations as may be required to perfect and protect in favor of Borrower all security interests,
liens and rights evidenced by all Note Receivable Documents with respect to all personal property securing Borrower’s Notes
Receivable existing as of the Closing Date, and that such filings remain effective as of the Restatement Effective Date. Unless
otherwise expressly agreed by Agent, Borrower covenants that it will take all action necessary to maintain the effectiveness of
such filings so long as Borrower has any commitment to extend credit under such Note Receivable or any sum remains owing under
such Note Receivable. Agent is authorized to file any UCC-3 statements of continuation, assignment or amendment as it may determine
in its Permitted Discretion to be necessary to enable it to protect and maintain Agent’s Liens in Collateral. Borrower represents
to the Lender Group that all filings and recordations, and all related assignments, with respect to Notes Receivable acquired
by Borrower after the Closing Date have been and will be filed or recorded in all jurisdictions as may be required to perfect
and protect in favor of Borrower all of Borrower’s liens or interests evidenced by Note Receivable Documents acquired by
Borrower after the Closing Date, and that Borrower will take all action necessary to maintain the effectiveness of such filings
so long as Borrower has any commitment to extend credit under such Note Receivable or any sum remains owing under such Note Receivable.

 

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4.10        Note
Receivable Documents. Borrower or Servicer will maintain all Note Receivable Documents (other than Notes Receivable which have
been delivered to Collateral Custodian pursuant to Section 4.2) in a secure manner in a location with fire, casualty and theft
protection satisfactory to Agent. Borrower or Servicer will provide to Agent copies of any Note Receivable Documents as Agent
may request.

 

4.11        Release
of Notes Receivable.

 

(a)           When
a Note Receivable that is in the possession of Agent or the Collateral Custodian is repaid in its entirety, Agent shall return
or shall authorize the Collateral Custodian to return such Note Receivable and any related original Required Asset Documents to
Borrower to facilitate its payment and Agent shall release Agent’s Liens in such Note Receivable and any Related Property
promptly upon receipt of the final payment relating to such Note Receivable.

 

(b)           When
a Note Receivable is sold by Borrower in accordance with the terms of this Agreement, Agent shall release Agent’s Liens
in such Note Receivable and any Related Property and if such Note Receivable or any related original Required Asset Documents
are in the possession of Agent or the Collateral Custodian, Agent shall transfer or shall authorize the Collateral Custodian to
transfer such Note Receivable and such related original Required Asset Documents to the purchaser thereof or as otherwise directed
by such purchaser against payment of the agreed amount therefor.

 

(c)           In the event Borrower’s collateral assignment to Agent of any mortgage and loan documents relating to a Note Receivable
has been recorded and such Note Receivable is (i) repaid in its entirety, (ii) sold by Borrower in accordance with the terms of
this Agreement or (iii) in default and Borrower is commencing foreclosure proceedings against the Note Receivable Collateral securing
such Note Receivable, then Agent shall, at Borrower’s sole expense, execute a reassignment or release of such mortgage and
loan documents for the benefit of Borrower on forms prepared by Borrower and acceptable to Agent in its Permitted Discretion.

 

5.             REPRESENTATIONS
AND WARRANTIES.

 

In order to induce
the Lender Group to enter into this Agreement, Borrower makes the following representations and warranties to the Lender Group
which shall be true, correct, and complete, in all material respects, as of the date hereof, and shall be true, correct, and complete,
in all material respects, as of the Restatement Effective Date, and as of the date of the making of each Advance (or other extension
of credit) made thereafter, as though made on and as of the date of such Advance (or other extension of credit) (except to the
extent that such representations and warranties relate solely to an earlier date) and such representations and warranties shall
survive the execution and delivery of this Agreement:

 

    	-71-

     

    

 

5.1           No
Encumbrances. Borrower has good and indefeasible title to, or a valid leasehold interest in, its personal property assets and
good and marketable title to, or a valid leasehold interest in, its Real Property, in each case, free and clear of Liens except
for Permitted Liens.

 

5.2           Eligible Notes Receivables. As to each Note Receivable that is identified by Borrower as an Eligible Note Receivable
in the most recent Borrowing Base Certificate submitted to Agent, as of the date of such certificate: (a) such Note Receivable
is a bona fide existing payment obligation of the maker of such Note Receivable created in the ordinary course of business by Horizon
or an Approved Third-Party Originator, (b) such Note Receivable has been transferred to Borrower by sale or contribution and is
now owed to Borrower without any known defenses, disputes, offsets, counterclaims, or rights of cancellation, (c) such Note Receivable
is not excluded as ineligible by virtue of one or more of the excluding criteria set forth in the definition of Eligible Notes
Receivable, (d) the original amount of, the unpaid balance of, and the amount and dates of payments on such Note Receivable shown
on the Books of Borrower and in the schedules of same delivered to Agent are true and correct, (e) Borrower has no knowledge of
any fact (which shall not include general economic conditions) which is reasonably likely to impair the validity or collectability
of such Note Receivable, (f) such Note Receivable is subject to a first-priority security interest in favor of Agent, (g) such
Note Receivable complies with all applicable laws in all material respects, and (h) since delivery to Agent, such Note Receivable
has not been amended nor any material requirements relating thereto waived without the prior written consent of Agent, other than
an extension, modification or waiver in accordance with the Required Procedures then in effect. The portfolio of Notes Receivable
held by Borrower, as opposed to Horizon or any other Subsidiary or Affiliate of Horizon, has not been selected in a manner adverse
to Borrower or the Lender Group.

 

5.3           Equipment.
All of the Equipment of Borrower is used or held for use in its business and is fit for such purposes.

 

5.4           Location of Collateral. The Borrower Collateral (other than the Collateral in the possession of Agent or the Collateral
Custodian) is not stored with a bailee, warehouseman, or similar party and is located only at, or in-transit between, the locations
identified on Schedule 5.4 (as such Schedule may be updated pursuant to Section 6.9); provided, that loan files that do not include
original promissory notes, Lien instruments, or assignments of Lien instruments may be stored, from time to time, with Servicer
or in a public warehouse, access to which has been assigned by Borrower to Agent.

 

5.5           Records.
Borrower keeps complete, correct and accurate records of the Notes Receivable owned by Borrower and all payments thereon.

 

5.6           State
of Incorporation; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort Claims.

 

(a)            The
jurisdiction of organization of Horizon, Horizon Management, Borrower and each of their respective Subsidiaries is set forth on
Schedule 5.6(a) (as such Schedule may be updated from time to time to reflect changes resulting from transactions not prohibited
by this Agreement).

 

    	-72-

     

    

 

(b)           The
chief executive office of Horizon, Horizon Management, Borrower and each of their respective Subsidiaries is located at the address
indicated on Schedule 5.6(b) (as such Schedule may be updated from time to time to reflect changes resulting from transactions
not prohibited by this Agreement).

 

(c)           The
organizational identification numbers and federal employer identification numbers, if any, of Horizon, Horizon Management, Borrower
and each of their respective Subsidiaries are identified on Schedule 5.6(c) (as such Schedule may be updated from time to time
to reflect changes resulting from transactions not prohibited by this Agreement).

 

(d)           As
of the Restatement Effective Date, Borrower does not hold any commercial tort claims, except as set forth on Schedule 5.6(d).

 

5.7           Due
Organization and Qualification; Subsidiaries.

 

(a)           Borrower
is duly organized and existing and in good standing under the laws of the jurisdiction of its organization and qualified to do
business in any state where the failure to be so qualified reasonably could reasonably be expected to result in a Material Adverse
Change.

 

(b)           Set
forth on Schedule 5.7(b) (as such Schedule may be updated from time to time to reflect changes resulting from transactions not
prohibited by this Agreement) is a complete and accurate description of (i) the authorized capital Stock of Horizon, by class,
and a description of the interests of each such class that are issued and outstanding as of the Closing Date, and (ii) the
authorized capital Stock of Borrower, by class, and, a description of the interests of each such class that are issued and outstanding
as of the Closing Date and at all times thereafter. Other than as described on Schedule 5.7(b), there are no subscriptions, options,
warrants, or calls relating to any capital Stock of Borrower, including any right of conversion or exchange under any outstanding
security or other instrument. Borrower is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire
or retire any shares of its capital Stock or any security convertible into or exchangeable for any of its capital Stock.

 

(c)           Set
forth on Schedule 5.7(c) is a complete and accurate list of Horizon’s direct and indirect Subsidiaries as of the Closing
Date, showing: (i) the jurisdiction of their organization, (ii) the number of shares of each class of common and preferred
Stock authorized for each of such Subsidiaries, and (iii) the number and the percentage of the outstanding shares of each
such class owned directly or indirectly by Horizon. The Borrower does not and will not, at any time, have any direct or indirect
Subsidiaries.

 

(d)           Except
as set forth on Schedule 5.7(c), there are no subscriptions, options, warrants, or calls relating to any shares of capital Stock
of Borrower, including any right of conversion or exchange under any outstanding security or other instrument.

 

5.8           Due Authorization; No Conflict.

 

(a)            The
execution, delivery, and performance by Borrower of this Agreement and the other Loan Documents to which it is a party have been
duly authorized by all necessary action on the part of Borrower.

 

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(b)           The execution, delivery, and performance by Borrower of this Agreement and the other Loan Documents to which it is a party
do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to Borrower, the Governing
Documents of Borrower, or any order, judgment, or decree of any court or other Governmental Authority binding on Borrower, (ii) conflict
with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual
obligation of Borrower, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any
properties or assets of Borrower, other than under this Agreement and the other Loan Documents, or (iv) require any approval
of the holders of Borrower’s Stock or any approval or consent of any Person under any material contractual obligation of
Borrower, other than consents or approvals that have been obtained and that are still in force and effect.

 

(c)           Other
than the filing of financing statements, the execution, delivery, and performance by Borrower of this Agreement and the other
Loan Documents to which Borrower is a party do not and will not require any registration with, consent, or approval of, or notice
to, or other action with or by, any Governmental Authority or other Person, other than consents or approvals that have been obtained
and that are still in force and effect.

 

(d)           This
Agreement and the other Loan Documents to which Borrower is a party, and all other documents contemplated hereby and thereby,
when executed and delivered by Borrower will be the legally valid and binding obligations of Borrower, enforceable against Borrower
in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency,
reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally.

 

(e)           The Agent’s Liens are validly created, perfected, and first priority Liens, subject only to Permitted Liens.

 

5.9           Litigation.
Other than those matters disclosed on Schedule 5.9, as of the Restatement Effective Date there are no actions, suits, or proceedings
pending or, to the best knowledge of Borrower, threatened, against Borrower or Horizon or Horizon Management. There are no actions,
suits, or proceedings pending or, to the actual knowledge of Borrower, threatened, against Borrower or Horizon or Horizon Management,
that either individually or in the aggregate could reasonably be expected to result in a Material Adverse Change.

 

5.10        No
Material Adverse Change. All financial statements relating to Horizon, Horizon Management, or Borrower and their respective Subsidiaries
that have been delivered by Horizon, Horizon Management, or Borrower to the Lender Group have been prepared in accordance with
GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end audit adjustments)
and present fairly in all material respects, the financial condition of Horizon, Horizon Management, Borrower, and their respective
Subsidiaries as of the date thereof and results of operations for the period then ended. There has not been a Material Adverse
Change with respect to Borrower or Horizon or Horizon Management, since the date of the latest financial statements submitted
to the Lender Group on or before the Restatement Effective Date.

 

5.11        Fraudulent
Transfer.

 

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(a)           Borrower is Solvent.

 

(b)           No
transfer of property is being made by Borrower and no obligation is being incurred by Borrower in connection with the transactions
contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future
creditors of Borrower.

 

5.12        Employee
Benefits. None of Borrower or any of its ERISA Affiliates maintains or contributes to any Benefit Plan.

 

5.13        Environmental Condition. Except as set forth on Schedule 5.13, (a) to Borrower’s knowledge, none of Borrower’s
properties or assets has ever been used by Borrower or by previous owners or operators in the disposal of, or to produce, store,
handle, treat, release, or transport, any Hazardous Materials, where such use, production, storage, handling, treatment, release
or transport was in violation, in any material respect, of any applicable Environmental Law, (b) to Borrower’s knowledge,
none of Borrower’s properties or assets has ever been designated or identified in any manner pursuant to any environmental
protection statute as a Hazardous Materials disposal site, (c) Borrower has not received notice that a Lien arising under any Environmental
Law has attached to any revenues or to any Real Property owned or operated by Borrower, and (d) Borrower has not received a summons,
citation, notice, or directive from the United States Environmental Protection Agency or any other federal or state governmental
agency concerning any action or omission by Borrower resulting in the releasing or disposing of Hazardous Materials into the environment.

 

5.14        Brokerage Fees. Neither Borrower nor any of its Affiliates has utilized the services of any broker or finder in connection
with Borrower’s obtaining financing from the Lender Group under this Agreement, and any brokerage commission or finders fee
payable in connection herewith shall be the sole responsibility of Borrower or its Affiliates.

 

5.15        Intellectual
Property. Borrower owns, or holds licenses in, all trademarks, trade names, copyrights, patents, patent rights, and licenses that
are necessary to the conduct of its business as currently conducted, and attached hereto as Schedule 5.15 (as updated from time
to time) is a true, correct, and complete listing of all material patents, patent applications, trademarks, trademark applications,
copyrights, and copyright registrations as to which Borrower is the owner or is an exclusive licensee, other than shrink wrap
and other similar licenses generally available to the public.

 

5.16        Leases.
Borrower enjoys peaceful and undisturbed possession under all leases material to their business and to which they are parties
or under which they are operating, and all of such leases are valid and subsisting and no material default by Borrower exists
under any of them.

 

5.17        Deposit
Accounts and Securities Accounts. Set forth on Schedule 5.17 (as such Schedule may be updated by written notice to the Agent from
time to time to reflect changes resulting from transactions not prohibited by this Agreement) is a listing of all of Borrower’s
Deposit Accounts and, Securities Accounts, including, with respect to each bank or securities intermediary (a) the name and address
of such Person, and (b) the account numbers of the Deposit Accounts or Securities Accounts maintained with such Person.

 

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5.18        Complete
Disclosure. All factual information (taken as a whole) furnished by or on behalf of Horizon, Horizon Management, Borrower or their
respective Subsidiaries in writing to Agent or any Lender (including all information contained in the Schedules hereto or in the
other Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents, or any transaction contemplated
herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of Horizon,
Horizon Management, Borrower or their respective in writing to Agent or any Lender will be, true and accurate, in all material
respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary
to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances
under which such information was provided.

 

5.19        Indebtedness. Set forth on Schedule 5.19 is a true and complete list of all Indebtedness of Borrower outstanding immediately
prior to the Restatement Effective Date that is to remain outstanding after the Restatement Effective Date and such Schedule accurately
reflects the aggregate principal amount of such Indebtedness and describes the principal terms thereof.

 

5.20        Compliance.
The standard forms and documents evidencing and executed in connection with Notes Receivable and all actions and transactions
by Borrower in connection therewith comply in all material respects with all applicable laws. Such standard forms and documents
are commensurate with forms and documentation used by prudent lenders in the same or similar circumstances as Borrower, and, without
limiting the foregoing, are sufficient to create valid, binding and enforceable obligations of each Account Debtor named therein.

 

5.21        Servicing. Borrower has entered into the Sale and Servicing Agreement, pursuant to which Borrower has engaged Horizon
Management, as the initial Servicer and as Borrower’s agent, to monitor, manage, enforce and collect the Notes Receivables
as provided by the Sale and Servicing Agreement, subject to this Agreement. Horizon Management has, and any replacement Servicer
proposed by Borrower will have, the requisite knowledge, experience, expertise and capacity to service the Notes Receivables.

 

5.22        Permits,
Licenses, Etc.. Each of Borrower, Horizon, Horizon Management, has, and is in compliance in all material respects with, all permits,
licenses, authorizations, approvals, entitlements and accreditations required for such Person lawfully to own, lease, manage or
operate, or to acquire, each business and the Real Property currently owned, leased, managed or operated, or to be acquired, by
such Person, except for such permits, licenses, authorizations, approvals, entitlements and accreditations the absence of which
could not reasonably be expected to result in a Material Adverse Change. To Borrower’s knowledge, no condition exists or
event has occurred which, in itself or with the giving of notice or lapse of time or both, would result in the suspension, revocation,
impairment, forfeiture or non-renewal of any such permit, license, authorization, approval, entitlement or accreditation, the
loss of which could reasonably be expected to result in a Material Adverse Change, and, to Borrower’s knowledge, there is
no claim that any thereof is not in full force and effect. Schedule 5.22 (as such Schedule may be updated from time to time to
reflect changes resulting from transactions not prohibited by this Agreement) lists all of the licenses, franchises, approvals
or consents of any Governmental Authority or other Person that is required for Borrower to conduct its business as currently conducted
or proposed to be conducted except for such licenses, franchises, approvals, or consents the absence of which could not reasonably
be expected to result in a Material Adverse Change.

 

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5.23        Margin
Stock. The Borrower is not engaged in the business of extending credit for the purpose of “purchasing” or “carrying”
any “margin security,” as such terms are defined in Regulation U of the Federal Reserve Board as now and from time
to time hereafter in effect (such securities being referred to herein as “Margin Stock”). The Borrower owns no Margin
Stock, and no portion of the proceeds of any Advance hereunder will be used, directly or indirectly, for the purpose of purchasing
or carrying any Margin Stock, for the purpose of reducing or retiring any Indebtedness that was originally incurred to purchase
or carry any Margin Stock or for any other purpose that might cause any portion of such proceeds to be considered a “purpose
credit” within the meaning of Regulation T, U or X of the Federal Reserve Board. The Borrower will not take or permit to
be taken any action that might cause any Note Receivable Document or any Loan Document to violate any regulation of the Federal
Reserve Board.

 

5.24        Government Regulation. Borrower is not required to register as an investment company under the Investment Company Act
of 1940 and is not subject to regulation under any other federal or state statute or regulation which may limit its ability to
incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable. Borrower is not a “registered
investment company” or a “principal underwriter” of a “registered investment company” as such terms
are defined in the Investment Company Act of 1940. The business and other activities of the Borrower, including but not limited
to, the making of the Advances by the Lenders, the application of the proceeds and repayment thereof by the Borrower and the consummation
of the transactions contemplated by the Loan Documents to which the Borrower is a party do not now and will not at any time result
in any violations, with respect to the Borrower, of the provisions of the 1940 Act or any rules, regulations or orders issued by
the SEC thereunder.

 

5.25        Sanctions; Anti-Corruption.

 

(a)            None
of Borrower, any of its Subsidiaries or, to the knowledge of the Borrower, any director, officer, employee, agent, or affiliate
of Borrower or any of its Subsidiaries is an individual or entity (“person”) that is, or is owned or controlled by
persons that are: (i) the subject of any sanctions administered or enforced by OFAC, the U.S. Department of State, the United
Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
 “Sanctions”), or (ii) located, organized or resident in a country or territory that is, or whose government is, the
subject of Sanctions (including, as of the Amendment No. 2 Effective Date, Crimea, Cuba, Iran, North Korea and Syria).

 

(b)           Borrower,
its Subsidiaries and their respective directors, officers and employees and, to the knowledge of the Borrower, the agents of the
Borrower and its Subsidiaries, are in compliance with all applicable Sanctions and with the FCPA and any other applicable anti-corruption
law, in all material respects. Borrower and its Subsidiaries have instituted and maintain policies and procedures designed to
ensure continued compliance with applicable Sanctions, the FCPA and any other applicable anti-corruption laws. No part of the
proceeds of the loans made hereunder will be used by Borrower or any of its Affiliates, directly or indirectly, for any payments
to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation
of the FPCA.

 

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5.26        Patriot
Act. To the extent applicable, Borrower is in compliance, in all material respects, with the (a) Trading with the Enemy Act,
as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter
V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the “Patriot
Act”).

 

6.             AFFIRMATIVE
COVENANTS.

 

Borrower covenants
and agrees that, until termination of all of the Commitments and payment in full of the Obligations, Borrower shall do all of the
following:

 

6.1           Accounting
System. Maintain a system of accounting that enables Servicer to produce financial statements in accordance with GAAP and maintain
records pertaining to the Collateral that contain information as from time to time reasonably may be requested by Agent. Borrower
also shall keep a reporting system that shows all additions, fees, payments, claims, and write-downs with respect to the Notes
Receivable.

 

6.2           Collateral
Reporting. Provide or cause Servicer to provide Agent (and if so requested by Agent, with copies for each Lender) with the following
documents at the following times in form satisfactory to Agent:

 

	Promptly after occurrence	
        (a)       notice of all claims,
        offsets, or disputes asserted by Account Debtors with respect to any of Borrower’s Notes Receivables;

         

	Date of each Advance and at least monthly (not later than the 10th day of each month)	
        (b)       a
        Borrowing Base Certificate which includes (i) a detailed calculation of the Borrowing Base as of the date of the requested Advance,
        (ii) detail regarding Notes Receivables that are not Eligible Notes Receivables, and (iii) Borrower’s Risk Rating for each
        Note Receivable;

         

	Monthly (not later than the tenth (10th) day of each month), calculated or determined as of the last day of the preceding month	
        (c)       the
        Data Tape;

         

        (d)       a
        summary report of categories of non-Eligible Notes Receivable;

         

        (e)       Borrower’s
        credit watch list;

         

        (f)       a
        schedule listing all Notes Receivable that have been modified during the preceding calendar quarter, including information regarding
        the exact nature of any modifications sufficient for Agent to determine whether such modifications affect the status of any Eligible
        Notes Receivable;

         

        (g)        a
        schedule listing all Collections and proposed distributions of cash;

         

        (h)       a
        Borrowing Base Certificate, after giving effect to all of the distributions and payments to be made on the next Remittance Date.

         

	
        Quarterly (not later than forty-five (45) days after the end
        of each calendar quarter

         
	
        (i)       a
        report, which includes (i) the Cash Runway Analysis and (ii) for all Notes Receivable, (A) Account Debtor status,
        (B) current actual and effective cash out, net exposure, enterprise value, method of determination and date of determination,
        and (C) the ratio of enterprise value to debt;

         

	Promptly upon request by Agent 	
        (j)       a
        summary aging, by vendor, of Borrower’s accounts payable and any book overdraft; and

         

        (k)       such
        other reports as to the Collateral, or the financial condition of Borrower, as Agent may request.

 

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In connection with the foregoing reports,
(i) Borrower shall maintain and utilize accounting and reporting systems acceptable to Agent in its Permitted Discretion and (ii)
to the extent required by Agent, an Authorized Person or other representative acceptable to Agent will meet with Agent from time
to time as requested by Agent to review and discuss all Notes Receivable then owned by Borrower.

 

6.3           Financial
Statements, Reports, Certificates. Deliver to Agent, with copies to each Lender:

 

(a)           as soon as available, but in any event within thirty (30) days after the end of each fiscal month of Borrower,

 

(i)            an
unaudited consolidated balance sheet, income statement and statement of cash flow covering Borrower’s operations during
such period and the year-to-date period ending thereon, in each case setting forth in comparative form the figures for the corresponding
periods in the prior year; and,

 

(ii)           a
Compliance Certificate demonstrating in reasonable detail such Person’s compliance at the end of such period with the applicable
financial and portfolio covenants contained therein that are measured as of the end of the month then ended;

 

(b)           as
soon as available, but in any event within forty-five (45) days after the end of each fiscal quarter of Horizon and Horizon Management,

 

(i)            an
unaudited consolidated balance sheet, income statement and statement of cash flow covering such Person’s and its Subsidiaries’
operations during such period and the year-to-date period ending thereon, in each case setting forth in comparative form the figures
for the corresponding periods in the prior year; and,

 

(ii)           a
Compliance Certificate demonstrating in reasonable detail such Person’s compliance at the end of such period with the applicable
financial and portfolio covenants contained therein that are measured as of the end of the quarter then ended;

 

(c)           as
soon as available, but in any event within ninety (90) days after the end of each fiscal year of Borrower and Horizon,

 

(i)            consolidated
annual financial statements of Horizon and its Subsidiaries for such fiscal year, audited by McGladrey LLP or other independent
certified public accountants reasonably acceptable to Agent and certified by such accountants to have been prepared in accordance
with GAAP, together with any accountants’ letter to management in connection therewith;

 

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(ii)           consolidating
financial statements of Horizon and its Subsidiaries for such fiscal year, prepared by Horizon based on its audited consolidated
financial statements for such year, in form acceptable to Agent in its Permitted Discretion; and

 

(iii)          a
Compliance Certificate demonstrating in reasonable detail Borrower’s and Horizon’s compliance at the end of such period
with the applicable financial and portfolio covenants contained therein;

 

(d)           as
soon as available, but in any event within one hundred fifty (150) days after the end of each fiscal year of Horizon Management,
(i) consolidated annual financial statements of Horizon Management and its Subsidiaries for such fiscal year, audited by RSM US
LLP or other independent certified public accountants reasonably acceptable to Agent and certified by such accountants to have
been prepared in accordance with GAAP, together with any accountants’ letter to management in connection therewith; and
(ii) a Compliance Certificate demonstrating in reasonable detail Horizon Management’s calculation of the applicable financial
and portfolio covenants contained therein;

 

(e)           if and when filed by Borrower or Horizon;

 

(i)            Form
10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports,

 

(ii)           any other filings made by Borrower or Horizon with the SEC, and

 

(iii)          copies
of Borrower’s or Horizon’s federal income tax returns, and any amendments thereto, filed with the Internal Revenue
Service (but only to the extent that Borrower or Horizon is treated other than as an entity that is not itself subject to federal
income tax on operating income, a partnership or a disregarded entity for federal income tax purposes),

 

(f)            promptly notify Agent of the following regarding each Note Receivable and Note Receivable Collateral which secures such
Note Receivable:

 

(i)            the
occurrence of any event which could reasonably be expected to materially impair the prospect of payment of such Note Receivable;

 

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(ii)           the
sending by Servicer or Borrower of any notice of default, recordation by Servicer or Borrower of any notice of foreclosure and
the date of any scheduled foreclosure sale thereon, or filing by Servicer or Borrower of any lawsuit (including case number and
court) on a Note Receivable or related Note Receivable Collateral;

 

(iii)          the consummation of any foreclosure sale or any deed or bill of sale in lieu of foreclosure, retention of collateral in
satisfaction of debt or similar transaction, and deliver to Agent true and complete copies of all documentation executed in respect
thereof (in the case of notices, postings and the like, and in the case of deeds, bills of sale or retention of collateral transactions,
all documents related to consummation of such transaction or transfer of such property); and

 

(iv)          the
receipt by Servicer or Borrower of a notice by any Person of (x) a default with respect to any agreement evidencing or governing
a Lien on any Note Receivable Collateral or (y) any foreclosure sale with respect to any Note Receivable Collateral;

 

(g)           promptly,
but in any event within five (5) days after an Authorized Person has knowledge of any event or condition that constitutes a Default
or an Event of Default, notice thereof and a statement of the curative action that Borrower proposes to take with respect thereto,

 

(h)           promptly
after the commencement thereof, but in any event within five (5) days after the service of process with respect thereto on Borrower,
its Subsidiaries, Horizon or Horizon Management, notice of all actions, suits, or proceedings brought by or against Borrower,
its Subsidiaries, Horizon or Horizon Management before any Governmental Authority which, if determined adversely to Borrower,
such Subsidiary, Horizon or Horizon Management, could reasonably be expected to result in a Material Adverse Change, and

 

(i)            upon
the request of Agent, any other information reasonably requested relating to the financial condition of Borrower, its Subsidiaries,
Horizon or Horizon Management.

 

In addition, Borrower agrees to deliver
financial statements prepared on both a consolidated and consolidating basis to the extent required by this Section 6.3, and agrees
that Borrower will not have a fiscal year different from that of Horizon or Horizon Management and that no Subsidiary of Borrower
will have a fiscal year different from that of Borrower. Borrower also agrees to cooperate with Agent to allow Agent to (A) audit
Borrower, Horizon and Horizon Management, and (B) consult with its and each such other Person’s independent certified public
accountants if Agent reasonably requests the right to do so. In such connection, Borrower authorizes, and will cooperate with Agent
to cause its Subsidiaries, Horizon and Horizon Management to authorize, its independent certified public accountants to communicate
with Agent and to release to Agent whatever financial information concerning such Person as Agent reasonably may request.

 

6.4          Notices
Regarding Authorized Persons or Servicing and Accounting Staff. Provide Agent with (a) notice promptly (and in any case within
two (2) Business Days) if any Authorized Person of Borrower, Horizon or Horizon Management ceases to continue to hold such position,
and (b) notice promptly (and in any case within five (5) Business Days) if more than thirty percent (30%) of the employees
of Borrower, Horizon or Horizon Management involved in the servicing of and accounting for the Notes Receivable cease, within
any period of sixty (60) days to continue to hold such positions.

 

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6.5           Collection
of Notes Receivable. (a) Subject to Section 4.8, to use or cause Servicer to use commercially reasonable efforts, at Borrower’s
sole cost and expense (including through the application of available funds pursuant to Section 2.4), in accordance with industry
standards and applicable laws, to promptly and diligently collect and enforce payment of all Notes Receivable to the extent that
it is commercially reasonable to do so and in a commercially reasonable manner, and defend and hold Lender Group harmless from
any and all loss, damage, penalty, fine or expense arising from such collection or enforcement, (b) in accordance with the Required
Procedures, maintain at its chief executive office, and, upon the request of Agent, make available to Agent copies of its Notes
Receivable and all related documents and instruments, and all files, surveys, certificates, correspondence, appraisals, computer
programs, accounting records and other information and data relating to the Collateral, and (c) permit Agent or its representatives
to discuss with Borrower’s officers or with appraisers furnishing appraisals of property securing any Note Receivable the
procedures for preparation, review and retention of, and to review and obtain copies of, such appraisals.

 

6.6           Maintenance
of Properties. Maintain and preserve all of its properties which are necessary or useful in the proper conduct of its business
in good working order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all material
leases to which it is a party as lessee so as to prevent any loss or forfeiture thereof or thereunder.

 

6.7           Taxes. Cause all assessments and taxes, whether real, personal, or otherwise, due or payable by, or imposed, levied,
or assessed against Borrower, its Subsidiaries or any of their respective assets to be paid in full, before delinquency or before
the expiration of any extension period, except to the extent that the validity of such assessment or tax shall be the subject of
a Permitted Protest or the failure to pay such tax could not reasonably be expected to result in a Material Adverse Change. Subject
to Permitted Protests, Borrower will and will cause its Subsidiaries to make timely payment or deposit of all tax payments and
withholding taxes required of it and them by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability,
and local, state, and federal income taxes, except to the extent that the failure to pay such tax could not reasonably be expected
to result in a Material Adverse Change, and will, upon request, furnish Agent with proof satisfactory to Agent indicating that
Borrower has made such payments or deposits.

 

6.8           Insurance.

 

(a)           At
Borrower’s expense, maintain insurance respecting its and its Subsidiaries’ assets wherever located covering loss
or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged
in the same or similar businesses. Borrower also shall maintain general liability insurance, as well as insurance against fraud,
larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be in such amounts and with such insurance
companies as are reasonably satisfactory to Agent. Borrower shall deliver copies of all such policies to Agent with an endorsement
naming Agent as the sole loss payee (under a satisfactory lender’s loss payable endorsement) or additional insured, as appropriate.
Each policy of insurance or endorsement shall contain a clause requiring the insurer to give not less than thirty (30) days prior
written notice to Agent in the event of cancellation of the policy for any reason whatsoever. Borrower shall also ensure that
Servicer maintains similar insurance coverages for the benefit of Borrower under the Sale and Servicing Agreement.

 

    	-82-

     

    

 

(b)           Borrower
shall give Agent prompt notice of any loss covered by such insurance. Borrower shall use commercially reasonable efforts to collect
any claims under any such insurance policies and shall give Agent prompt notice of any material development with respect to such
claim, including any proposed compromise or settlement of such claim. After the occurrence and during the continuation of an Event
of Default, Agent shall have the exclusive right to give notice of, adjust and compromise claims under any such insurance policies,
in accordance with Agent's Permitted Discretion. Any monies received as payment for any loss under any insurance policy mentioned
above (other than liability insurance policies) or as payment of any award or compensation for condemnation or taking by eminent
domain, shall be paid over to Agent to be applied at the option of the Required Lenders either to the prepayment of the Obligations
or shall be disbursed to Borrower under staged payment terms reasonably satisfactory to the Required Lenders for application to
the cost of repairs, replacements, or restorations. Any such repairs, replacements, or restorations shall be effected with reasonable
promptness and shall be of a value at least equal to the value of the items of property destroyed prior to such damage or destruction.

 

(c)           Borrower
will not and will not suffer or permit its Subsidiaries to take out separate insurance concurrent in form or contributing in the
event of loss with that required to be maintained under this Section 6.8, unless Agent is included thereon as an additional insured
or loss payee under a lender’s loss payable endorsement. Borrower promptly shall notify Agent whenever such separate insurance
is taken out, specifying the insurer thereunder and full particulars as to the policies evidencing the same, and copies of such
policies promptly shall be provided to Agent.

 

6.9           Location of Collateral. Keep the Collateral only at the locations identified on Schedule 5.4, or at the Agent or at
the Collateral Custodian in the case of Notes Receivable, and maintain the chief executive offices of Borrower only at the locations
identified on Schedule 5.6(b); provided, however, that Borrower may amend Schedules 5.4 and 5.6 so long as such amendment occurs
by written notice to Agent not less than thirty (30) days prior to the date on which such Collateral is moved to such new location
or such chief executive office is relocated, so long as such new location is within the continental United States, and so long
as, at the time of such written notification, Borrower provides to Agent a Collateral Access Agreement with respect thereto.

 

6.10        Compliance
with Laws. Comply with the requirements of all applicable laws, rules, regulations, and orders of any Governmental Authority,
other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Change.

 

6.11        Leases.
Pay when due all rents and other amounts payable under any leases to which Borrower or any of its Subsidiaries is a party or by
which Borrower’s or any such its Subsidiaries’ properties and assets are bound, unless such payments are the subject
of a Permitted Protest.

 

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6.12        Existence.
At all times preserve and keep in full force and effect Borrower’s and its Subsidiaries’ valid existence and good
standing and any rights and franchises material to their businesses. Borrower acknowledges that the Lender Group is entering into
the Loan Documents in reliance upon Borrower’s identity as a separate legal entity from each of its Affiliates. From and
after the Restatement Effective Date, Borrower shall conduct its own business in its own name and take all reasonable steps, including,
without limitation, all steps that Agent may from time to time reasonably request, to maintain Borrower’s identity and existence
as a separate legal entity and to make it manifest to third parties that Borrower is an entity with assets and liabilities distinct
from those of its Affiliates. Without limiting the generality of the foregoing and in addition to the other covenants set forth
herein, Borrower shall:

 

(a)           except
to the extent otherwise permitted by Sections 7.10 or 7.13 of this Agreement, conduct all transactions with its Affiliates strictly
on an arm’s-length basis and allocate all overhead expenses (including, without limitation, telephone and other utility
charges) for items shared between such Affiliates and Borrower on the basis of actual use to the extent practicable and, to the
extent such allocation is not practicable, on a basis reasonably related to actual use;

 

(b)           observe
all limited liability company formalities as a distinct entity, and ensure that all actions relating to the dissolution or liquidation
of Borrower or the initiation or participation in, acquiescence in, or consent to any bankruptcy, insolvency, reorganization,
or similar proceeding involving Borrower, are duly authorized by unanimous vote of its directors;

 

(c)           maintain
Borrower’s Books separate from those of its Affiliates and otherwise readily identifiable as its own assets rather than
assets of its Affiliates;

 

(d)           except
as herein specifically otherwise provided, not commingle funds or other assets of Borrower with those of its Affiliates and, except
for the Cash Management Accounts, not maintain bank accounts or other depository accounts to which Borrower is an account party,
into which Borrower makes deposits or from which Borrower has the power to make withdrawals; and

 

(e)           not permit Borrower to pay or finance any of its Affiliates’ operating expenses not properly allocable to Borrower.

 

6.13        Environmental.
(a) Keep any property owned or operated by Borrower free of any Environmental Liens or post bonds or other financial assurances
sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, (b) comply, in all material respects,
with Environmental Laws and provide to Agent documentation of such compliance which Agent reasonably requests, (c) promptly notify
Agent of any release of a Hazardous Material in any reportable quantity from or onto property owned or operated by Borrower and
take any Remedial Actions required to abate said release or otherwise to come into compliance with applicable Environmental Law,
and (d) promptly, but in any event within 5 days of its receipt thereof, provide Agent with written notice of any of the
following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of Borrower, (ii)
commencement of any Environmental Action or notice that an Environmental Action will be filed against Borrower, and (iii) notice
of a violation, citation, or other administrative order which could reasonably be expected to result in a Material Adverse Change.

 

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6.14        Disclosure
Updates. Promptly and in no event later than five (5) Business Days after an Authorized Person obtains knowledge thereof, notify
Agent if any written information, exhibit, or report (when taken as a whole) furnished to Agent or the Lenders contained, at the
time it was furnished, any untrue statement of a material fact or omitted to state any material fact necessary to make the statements
contained therein not misleading in any material respect in light of the circumstances in which made. The foregoing to the contrary
notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy the effect of the prior untrue statement
of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this
Agreement or any of the Schedules hereto.

 

6.15        Formation
of Subsidiaries. Not form or acquire any Subsidiary of Borrower on or after the Restatement Effective Date without the prior written
consent of Agent, and at the time that Borrower forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary
after the Restatement Effective Date with the prior written consent of the Agent, Borrower shall, if and to the extent required
by Agent, (a) cause such new Subsidiary to provide to Agent a joinder to this Agreement, together with such other security documents
(including mortgages with respect to any Real Property of such new Subsidiary), as well as appropriate financing statements (and
with respect to all property subject to a mortgage, fixture filings), all in form and substance reasonably satisfactory to Agent
(including being sufficient to grant Agent a first priority Lien (subject to Permitted Liens) in and to the assets of such newly
formed or acquired Subsidiary), (b) provide to Agent a pledge agreement and appropriate certificates and powers or financing statements,
hypothecating all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to
Agent, and (c) provide to Agent all other documentation, including one or more opinions of counsel satisfactory to Agent, if requested
by Agent, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred
to above (including policies of title insurance or other documentation with respect to all property subject to a mortgage). Any
document, agreement, or instrument executed or issued pursuant to this Section 6.15 shall be a Loan Document.

 

6.16        Required
Asset Documents. Immediately upon receipt, deliver to Agent or the Collateral Custodian all of the Required Asset Documents related
to such Note Receivable.

 

6.17        Sale
and Servicing Agreement. Cause Servicer to promptly provide Agent with true and complete copies of all notices sent or received
by Servicer under the Sale and Servicing Agreement.

 

6.18        Escrow
Deposits. Deposit into a Deposit Account that is subject to a perfected Agent’s Lien all amounts advanced by Borrower into
escrow and all amounts delivered to Borrower to be held in escrow, including, without limitation, construction funds, insurance
premiums and proceeds, taxes, and other funds delivered to Borrower to be held on behalf of any Account Debtor.

 

6.19        Hedge
Agreements.

 

(a)           If
at any time the aggregate outstanding note receivable balances of variable rate Note Receivables is less than 20% of the Aggregate
Outstanding Note Receivable Balance for a period of five (5) consecutive Business Days, the Borrower shall, within five (5) Business
Days, with respect only to the Outstanding Note Receivable Balance of fixed rate Notes Receivable, enter into and maintain a Hedge
Transaction with a Hedge Provider which Hedge Transaction shall be (i) in form and substance as shall be reasonably approved by
the Agent and (ii) shall provide for payments to the Borrower to the extent that the LIBOR Rate shall exceed a rate agreed upon
between the Agent and the Borrower.

 

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(b)           As
additional security hereunder, the Borrower hereby assigns to the Agent, as agent for the Secured Parties, all right, title and
interest of the Borrower in any and all Hedge Agreements, any and all Hedge Transactions, and any and all present and future amounts
payable by a Hedge Provider to the Borrower under or in connection with its respective Hedge Agreement and Hedge Transaction(s)
(collectively, the “Hedge Collateral”), and grants a security interest to the Agent, as agent for the Secured Parties,
in the Hedge Collateral. Nothing herein shall have the effect of releasing the Borrower from any of its obligations under any
Hedge Agreement or any Hedge Transaction, nor be construed as requiring the consent of the Agent or any Secured Party for the
performance by the Borrower of any such obligations.

 

6.20        Sanctions; Anti-Corruption Laws. Maintain, and cause each of its Subsidiaries to maintain, policies and procedures designed
to promote compliance by Borrower, its Subsidiaries and their respective directors, officers, employees and agents with applicable
Sanctions and with the FCPA and any other applicable anti-corruption laws.

 

7.             NEGATIVE
COVENANTS.

 

Borrower covenants
and agrees that, until termination of all of the Commitments and full and final payment of the Obligations, Borrower will not do
any of the following:

 

7.1           Indebtedness.
Create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect
to any Indebtedness, except:

 

(a)           Indebtedness evidenced by this Agreement and the other Loan Documents,

 

(b)           Subordinated
Debt,

 

(c)           other
Indebtedness set forth on Schedule 5.19,

 

(d)           refinancings,
renewals, or extensions of Indebtedness permitted under clause (c) of this Section 7.1 (and continuance or renewal of any Permitted
Liens associated therewith) so long as: (i) the terms and conditions of such refinancings, renewals, or extensions do not,
in Agent’s judgment, materially impair the prospects of repayment of the Obligations by Borrower or materially impair Borrower’s
creditworthiness, (ii) such refinancings, renewals, or extensions do not result in an increase in the principal amount of,
or interest rate with respect to, the Indebtedness so refinanced, renewed, or extended, (iii) such refinancings, renewals,
or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so refinanced, renewed, or extended,
nor are they on terms or conditions that, taken as a whole, are materially more burdensome or restrictive to Borrower, (iv) if
the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms
and conditions of the refinancing, renewal, or extension Indebtedness must include subordination terms and conditions that are
at least as favorable to the Lender Group as those that were applicable to the refinanced, renewed, or extended Indebtedness,
and (v) the Indebtedness that is refinanced, renewed, or extended is non-recourse to any Person that is liable on account
of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed,
or extended, and

 

    	-86-

     

    

 

(e)           endorsement
of instruments or other payment items for deposit.

 

7.2           Liens.
Create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind,
whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens (including Liens that
are replacements of Permitted Liens to the extent that the original Indebtedness is refinanced, renewed, or extended under Section
7.1(d) and so long as the replacement Liens only encumber those assets that secured the refinanced, renewed, or extended Indebtedness).

 

7.3           Restrictions on Fundamental Changes.

 

(a)           Enter
into any merger, consolidation, reorganization, or recapitalization, or amend in any material respect any of its Governing Documents
as in effect on the Restatement Effective Date.

 

(b)           Liquidate,
wind up, or dissolve itself (or suffer any liquidation or dissolution).

 

(c)           Suspend
or go out of a substantial portion of its or their business.

 

(d)           Convey,
sell, lease, license, assign, transfer, or otherwise dispose of, in one transaction or a series of transactions, all or any substantial
part of its assets, other than through Permitted Dispositions.

 

7.4           Disposal
of Assets. Other than Permitted Dispositions, convey, sell, lease, license, assign, transfer, or otherwise dispose of (or enter
into an agreement to convey, sell, lease, license, assign, transfer, or otherwise dispose of) any of Borrower’s assets.

 

7.5           Change
Name. Change Borrower’s or any of its Subsidiaries’ name, organizational identification number, state of organization
or organizational identity; provided, however, that Borrower or any of its Subsidiaries may change their names upon at least thirty
(30) days prior written notice to Agent of such change and so long as, at the time of such written notification, Borrower provides
any financing statements necessary to perfect and continue perfected the Agent’s Liens.

 

7.6           Nature
of Business. Make any material change in the nature of its or their business, or acquire any properties or assets that are not
reasonably related to the conduct of such business activities, including without limitation, making a material change in its underwriting,
approval, or servicing operations. Without limiting the generality of the foregoing, Borrower shall not permit Horizon to cause
the portfolio of Notes Receivable held by Borrower, as opposed to Horizon or any other Subsidiary or Affiliate of Horizon, to
be selected in a manner adverse to Borrower or Lender.

 

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7.7           Prepayments
and Amendments. Except in connection with a refinancing permitted by Section 7.1(d), or a Restricted Payment or other payment
permitted by Section 7.10,

 

(a)           optionally
prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of Borrower, other than the Obligations in accordance
with this Agreement,

 

(b)           make
any payment on account of Indebtedness that has been contractually subordinated in right of payment if such payment is not permitted
at such time under the subordination terms and conditions, or

 

(c)           directly
or indirectly, amend, modify, alter, increase, or change any of the terms or conditions of any agreement, instrument, document,
indenture, or other writing evidencing or concerning any Subordinated Debt or any Indebtedness permitted under Sections 7.1(c)
or (d), except as permitted by Sections 7.1(d).

 

7.8           [Intentionally
Omitted].

 

7.9           Required
Procedures. Make any changes or revisions to the Required Procedures except in the manner permitted by the definition of Required
Procedures.

 

7.10        Restricted
Payments. Make any Restricted Payment; provided, however, that so long as no Event of Default shall have occurred and be continuing
or would occur as a result thereof and Agent and Lenders shall have received the financial statements required by Section 6.3(a)
for the most recently completed fiscal month, then Borrower may make distributions to the holders of its Stock to the extent permitted
by applicable law.

 

7.11        Accounting
Methods. Modify or change its fiscal year or its method of accounting (other than as may be required to conform to GAAP) or enter
into, modify, or terminate any agreement currently existing, or at any time hereafter entered into with any third party accounting
firm or service bureau for the preparation or storage of Borrower’s accounting records without said accounting firm or service
bureau agreeing to provide Agent information regarding the Collateral or Borrower’s and its Subsidiaries’ financial
condition.

 

7.12        Investments. Except for Permitted Investments, directly or indirectly, make or acquire any Investment or incur any liabilities
(including contingent obligations) for or in connection with any Investment.

 

7.13        Transactions
with Affiliates. Directly or indirectly enter into or permit to exist any transaction with any Affiliate of Borrower except for
transactions that (a)(i) are in the ordinary course of Borrower’s business, (ii) are upon fair and reasonable
terms, (iii) are fully disclosed to Agent, and (iv) are no less favorable to Borrower than would be obtained in an arm’s
length transaction with a non-Affiliate or (b) are otherwise permitted under this Agreement.

 

7.14        Use
of Proceeds. Use the proceeds of the Advances for any purpose other than to finance Borrower’s acquisition of Eligible Notes
Receivable and to pay transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents,
and the transactions contemplated hereby and thereby, to make Restricted Payments permitted under Section 7.10 and for any
other purpose not expressly prohibited by this Agreement.

 

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7.15        Collateral
with Bailees. Store any Collateral at any time now or hereafter with a bailee, warehouseman, or similar party, other than Agent
or Collateral Custodian; provided, that loan files that do not include original promissory notes, Lien instruments, or assignments
of Lien instruments may be stored, from time to time, in a public warehouse, access to which has been assigned by Borrower to
Agent.

 

7.16        Sale and Servicing Agreement.

 

(a)           With
respect to the Sale and Servicing Agreement (i) amend or modify the Sale and Servicing Agreement in any manner that (A) causes
or allows the aggregate amount of the servicing fees payable under the Sale and Servicing Agreement to exceed, as of any time
of determination, an amount equal to the amount of the servicing fees as determined pursuant to the Sale and Servicing Agreement
on the Restatement Effective Date, (B) except as allowed by clause (A) preceding, obligates Borrower for payment of any professional
costs or court costs incurred by Servicer in servicing under the Sale and Servicing Agreement, (C) causes or allows the requirements
applicable to Servicer’s standards of conduct, compliance with laws or licensing requirements to be less restrictive than
exist on the Restatement Effective Date, (D) releases any indemnity obligations of Servicer or modifies any such obligations in
any manner that is less restrictive than exist on the Restatement Effective Date, (E) relieves Servicer of its obligation
to perform under the Sale and Servicing Agreement, or (ii) terminate the Sale and Servicing Agreement, or allow the Sale
and Servicing Agreement to be terminated, in any such case without the prior written consent of Agent.

 

(b)           Allow
Servicer to delegate any of its duties or functions under the Sale and Servicing Agreement to any Person, or otherwise engage
any such Person to perform any such duties or functions for or on behalf of Servicer or Borrower, in any such case without the
prior written consent of Agent.

 

(c)           Transfer
the duties and functions of Servicer under the Sale and Servicing Agreement to any other Person without the prior written consent
of Agent.

 

7.17        Sanctions;
Anti-Corruption Use of Proceeds. Directly or indirectly, use the proceeds of the Advances, or lend, contribute or otherwise make
available such proceeds to any of its Subsidiaries, joint venture partner or other Person, (i) in furtherance of an offer, payment,
promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of the
FCPA or any other applicable anti-corruption law, or (ii) (A) to fund any activities or business of or with any Person, or in
any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, or (B) in any
other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Advances,
whether as Agent, Arranger, Lender, underwriter, advisor, investor, or otherwise).

 

8.             EVENTS
OF DEFAULT.

 

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

 

8.1.          If
Borrower (i) fails to pay when due and payable, or when declared due and payable, all or any portion of the Obligations (whether
of principal, interest (including any interest which, but for the provisions of the Bankruptcy Code, would have accrued on such
amounts), fees and charges due Agent or any Lender, reimbursement of Lender Group Expenses, or other amounts constituting Obligations),
each of which remains unpaid for a period of greater than two (2) days, or (ii) fails to repay all Obligations on or prior to
the Maturity Date; or

 

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8.2.          If an Insolvency Proceeding is commenced by Borrower or Horizon; or

 

8.3.          If a Servicer Default shall occur under Section 9.01(a)(1), (2), (7), (9) or (16) of the Sale and Servicing Agreement
shall occur; or

 

8.4.          If
Borrower (a) fails to perform, keep, or observe any covenant or other provision contained in Sections 2.6, 6.2, 6.3, 6.4, 6.5,
6.8, 6.12, 6.14, 6.19, or Article VII of this Agreement or any comparable provision contained in any of the other Loan Documents,
or (b) fails to perform, keep, or observe any covenant or other provision contained in any Section of this Agreement (other
than a Section that is expressly dealt with elsewhere in this Section 8.2), including failure to satisfy a condition subsequent
set forth in Section 3.2 within the period stated, or the other Loan Documents, and such failure continues for a period of fifteen
(15) Business Days after the date on which such failure first occurs; or

 

8.5.          If any representation or warranty made or deemed made this Agreement or any other Loan Document or any amendment or
modification hereof or thereof, or in any report, certificate, financial statement or other document furnished pursuant to or in
connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, shall prove to be
incorrect in any material respect as of the time when the same shall have been made or deemed to have been made; or

 

8.6.          If
the Agent, as agent for the Secured Parties, shall fail for any reason to have a valid and perfected first priority security interest
in any of the Collateral, or any material portion of the assets of Borrower, or of Horizon, is attached, seized, subjected to
a writ or distress warrant, levied upon, or comes into the possession of any third Person; or

 

8.7.          If an Insolvency Proceeding is commenced against Borrower, or any of its Subsidiaries, or Horizon, and any of the following
events occur: (a) such Person consents to the institution of such Insolvency Proceeding against it, (b) the petition
commencing the Insolvency Proceeding is not timely controverted; provided, however, that, during the pendency of such period, Agent
(including any successor agent) and each other member of the Lender Group shall be relieved of their obligations to extend credit
hereunder, (c) the petition commencing the Insolvency Proceeding is not dismissed within forty-five (45) calendar days of
the date of the filing thereof; provided, however, that, during the pendency of such period, Agent (including any successor agent)
and each other member of the Lender Group shall be relieved of their obligations to extend credit hereunder, (d) an interim
trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or
any substantial portion of the business of such Person, or (e) an order for relief shall have been entered therein; or

 

8.8.          If the Borrower shall become an “investment company” subject to registration under the 1940 Act; or

 

8.9.          If
the Minimum Equity Requirement shall not be maintained; or

 

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8.10.        If,
as of any date, the outstanding Advances exceed the Maximum Availability, and the same remains unremedied for more than two (2)
Business Days; or

 

8.11.        If the Borrower shall fail in its obligation to satisfy its obligations with regard to Hedge Transactions pursuant to
Section 6.19; or

 

8.12.        If,
without the prior written consent of the Agent, the Servicer agrees or consents to, or otherwise permits to occur, any amendment,
modification, change, supplement or rescission of or to the Servicer’s Required Procedures in any manner that would have
a material adverse effect on the Note Receivables; or

 

8.13.        If
Borrower or Horizon, is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material
part of its business affairs; or

 

8.14.        If
a notice of Lien, levy, or assessment is filed of record with respect to any assets of Borrower or any of its Subsidiaries, or
any assets of Horizon Management, having an aggregate value in excess of $500,000, or of any assets of Horizon having an aggregate
value in excess of $5,000,000, by the United States, or any department, agency, or instrumentality thereof, or by any state, county,
municipal, or governmental agency, or if any taxes or debts owing at any time hereafter to any one or more of such entities becomes
a Lien upon any assets of Borrower or any of its Subsidiaries, or any assets of Horizon Management, having an aggregate value
in excess of $500,000, or of any assets of Horizon having an aggregate value in excess of $5,000,000, and in any such case the
same is not paid before such payment is delinquent; or

 

8.15.        If
a judgment or other claim becomes a Lien or encumbrance upon any assets of Borrower or any of its Subsidiaries, or any assets
of Horizon Management, having an aggregate value in excess of $500,000, or of any of the assets of Horizon having an aggregate
value in excess of $5,000,000, and in any such case either (a) enforcement of such judgment or claim remains unstayed or
unsatisfied for a period of thirty (30) consecutive days and is not fully covered (subject to standard deductibles) by insurance
coverage under which the insurer has accepted liability, or (b) the judgment creditor or claimant begins enforcement proceedings
of such judgment or Lien; or

 

8.16.        If
there is a default by Borrower or any of its Subsidiaries under any Subordinated Debt or under any Indebtedness (other than the
Obligations) having an aggregate principal amount in excess of $500,000, or a default by Horizon Management under any Indebtedness
having an aggregate principal amount in excess of $500,000, or a default by Horizon under any Indebtedness having an aggregate
principal amount in excess of $5,000,000, and in any such case such default (a) occurs at the final maturity of the obligations
thereunder, or (b) results in a right by the other party thereto, irrespective of whether exercised, to accelerate the maturity
of the obligations thereunder of Borrower or any of its Subsidiaries, or Horizon, or Horizon Management, as the case may be, to
terminate such agreement, or to refuse to renew such agreement in accordance with any automatic renewal right therein; or

 

8.17.        If
the obligations of any Guarantor under its Guaranty is limited or terminated by operation of law or by such Guarantor thereunder;
or

 

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8.18.        If
any two of the three of Robert D. Pomeroy Jr., Gerald A. Michaud or Daniel Trolio shall cease to be actively involved in the business
of Borrower, Horizon, or Horizon Management (as applicable) in such capacity, and such individuals shall not have been replaced
by individuals of like qualifications and experience within ninety (90) days and with respect to whom Agent has completed a background
check with the results of such background check being acceptable to Agent in its Permitted Discretion; or

 

8.19.        A
Change of Control shall occur; or

 

8.20.        Any
provision of any Loan Document that Agent in its Permitted Discretion deems to be material shall at any time for any reason be
declared to be null and void, or the validity or enforceability thereof shall be contested by Borrower, or by Horizon or Horizon
Management, or a proceeding shall be commenced by Borrower, or by Horizon or Horizon Management, or by any Governmental Authority
having jurisdiction over Borrower or Horizon or Horizon Management seeking to establish the invalidity or unenforceability thereof,
or Borrower, or Horizon or Horizon Management, shall deny that such Person has any liability or obligation purported to be created
under any Loan Document to which it is a party; or

 

8.21.       If at any time Horizon shall cease to satisfy the RIC/BDC Requirements and the same remains unremedied within ten (10)
Business Days.

 

9.             THE
LENDER GROUP’S RIGHTS AND REMEDIES.

 

9.1           Rights
and Remedies. Upon the occurrence, and during the continuation, of an Event of Default, Agent may, and, at the instruction of
the Required Lenders, shall (in each case under clauses (a) or (b) by written notice to Borrower), in addition to any other rights
or remedies provided for hereunder or under any other Loan Document or by applicable law, do any one or more of the following:

 

(a)           declare
the Obligations (other than the Bank Product Obligations), whether evidenced by this Agreement or by any of the other Loan Documents
immediately due and payable, whereupon the same shall become and be immediately due and payable and Borrower shall be obligated
to repay all of such Obligations in full, without presentment, demand, protest, or further notice or other requirements of any
kind, all of which are hereby expressly waived by Borrower;

 

(b)           declare
the Revolving Credit Availability Period and the Commitments terminated, whereupon the Revolving Credit Availability Period and
the Commitments shall immediately be terminated together with any obligation of any Lender hereunder to make Advances;

 

(c)            settle
or adjust disputes and claims directly with Borrower’s Account Debtors and makers of Notes Receivable for amounts and upon
terms which Agent considers advisable, and in such cases, Agent will credit Borrower’s Loan Account with only the net amounts
received by Agent in payment of such disputed Accounts or Notes Receivable after deducting all Lender Group Expenses incurred
or expended in connection therewith;

 

(d)           exercise
or assign any and all rights to collect, manage, and service the Notes Receivables, including the rights to (i) receive, process
and account for all Collections in respect of Notes Receivables, (ii) terminate the Sale and Servicing Agreement and assign servicing
responsibilities to any replacement servicer, (iii) without notice to or demand upon Borrower, make any payments as are reasonably
necessary or desirable in connection with the Sale and Servicing Agreement or any other agreement that Agent enters into with
any replacement servicer, and (iv) take all lawful actions and procedures which Agent or such assignee deems necessary to
enforce any and all rights of Borrower under any Note Receivable Document or collect the amounts due to Borrower in connection
with Notes Receivables (with all amounts incurred by Agent pursuant to this Section 9.1(d) being Lender Group Expenses);

 

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(e)            without
notice to or demand upon Borrower or any other Person, make such payments and do such acts as Agent considers necessary or reasonable
to protect its security interests in the Collateral. Borrower agrees to assemble the Collateral if Agent so requires, and to make
the Collateral available to Agent at a place that Agent may designate which is reasonably convenient to both parties. Borrower
authorizes Agent to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or
any part of it, and to pay, purchase, contest, or compromise any Lien that in Agent’s determination appears to conflict
with the priority of Agent’s Liens in and to the Collateral and to pay all expenses incurred in connection therewith and
to charge Borrower’s Loan Account therefor. With respect to any of Borrower’s owned or leased premises, Borrower hereby
grants Agent a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise
any of the Lender Group’s rights or remedies provided herein, at law, in equity, or otherwise;

 

(f)            without
notice to Borrower (such notice being expressly waived), and without constituting an acceptance of any collateral in full or partial
satisfaction of an obligation (within the meaning of the Code), set off and apply to the Obligations any and all (i) balances
and deposits of Borrower held by the Lender Group (including any amounts received in the Cash Management Accounts), or (ii) Indebtedness
at any time owing to or for the credit or the account of Borrower held by the Lender Group;

 

(g)           hold, as cash collateral, any and all balances and deposits of Borrower held by the Lender Group, and any amounts received
in the Cash Management Accounts, to secure the full and final repayment of all of the Obligations;

 

(h)           ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Borrower Collateral. Borrower hereby grants to Agent a license or other right to use, without charge, Borrower’s
labels, patents, copyrights, trade secrets, trade names, trademarks, service marks, and advertising matter, or any property of
a similar nature, as it pertains to the Borrower Collateral, in completing production of, advertising for sale, and selling any
Borrower Collateral and Borrower’s rights under all licenses and all franchise agreements shall inure to the Lender Group’s
benefit;

 

(i)            sell
the Borrower Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash
or on terms, in such manner and at such places (including Borrower’s premises) as Agent determines is commercially reasonable.
It is not necessary that the Borrower Collateral be present at any such sale;

 

    	-93-

     

    

 

(j)            except
in those circumstances where no notice is required under the Code, Agent shall give notice of the disposition of the Borrower
Collateral as follows:

 

(i)            Agent
shall give Borrower a notice in writing of the time and place of public sale, or, if the sale is a private sale or some other
disposition other than a public sale is to be made of the Borrower Collateral, the time on or after which the private sale or
other disposition is to be made; and

 

(ii)           the
notice shall be personally delivered or mailed, postage prepaid, to Borrower as provided in Section 12, at least 10 days before
the earliest time of disposition set forth in the notice; no notice needs to be given prior to the disposition of any portion
of the Borrower Collateral that is perishable or threatens to decline speedily in value or that is of a type customarily sold
on a recognized market;

 

(k)           Agent,
on behalf of the Lender Group, may credit bid and purchase at any public sale;

 

(l)            Agent
may seek the appointment of a receiver or keeper to take possession of all or any portion of the Borrower Collateral or to operate
same and, to the maximum extent permitted by applicable law, may seek the appointment of such a receiver without the requirement
of prior notice or a hearing;

 

(m)          exercise
any and all rights of Borrower under the Sale and Servicing Agreement or assume or assign any and all rights and responsibilities
to collect, manage, and service the Notes Receivables, including (i) the responsibility for the receipt, processing and accounting
for all payments on account of the Notes Receivables, (ii) periodically sending demand notices and statements to the Account Debtors
or makers of Notes Receivable, (iii) enforcing legal rights with respect to the Notes Receivables, including hiring attorneys
to do so to the extent Agent or such assignee deems such engagement necessary, and (iv) taking all lawful actions and procedures
which Agent or such assignee deems necessary to collect the Notes Receivables (with all amounts incurred by Agent pursuant to
this Section 9.1(m) being Lender Group Expenses); and

 

(n)           exercise
all other rights and remedies available to Agent or the Lenders under the Loan Documents or applicable law.

 

The foregoing to the
contrary notwithstanding, upon the occurrence of any Event of Default described in Section 8.4 or Section 8.5, in addition
to the remedies set forth above, without any notice to Borrower or any other Person or any act by the Lender Group, the Revolving
Credit Availability Period and the Commitments shall automatically terminate and the Obligations (other than the Bank Product Obligations),
inclusive of all accrued and unpaid interest thereon and all fees and all other amounts owing under this Agreement or under any
of the other Loan Documents, shall automatically and immediately become due and payable and Borrower shall be obligated to repay
all of such Obligations in full, without presentment, demand, protest, or notice of any kind, all of which are expressly waived
by Borrower.

 

9.2          Special
Rights of the Lender Group in Respect of Notes Receivable and Purchased Participations. Without limiting Section 9.1, upon the
occurrence and during the continuation of an Event of Default involving the failure by Borrower, Servicer or any replacement servicer
to perform its servicing obligations in respect of any Notes Receivable or purchased participations, or failure to take any action
necessary to preserve the ongoing performance, enforceability or value thereof, Agent shall have the right to take such action
as Agent may deem necessary in its Permitted Discretion to preserve the ongoing performance and enforceability of any such Note
Receivable or purchased participation and preserve the value thereof, respectively, including without limitation, taking any action
that Borrower or Servicer is required or authorized to take in respect thereof or to otherwise properly service same, or contract
with any Person to take or perform any such actions. Borrower hereby grants to Agent, effective upon the occurrence and during
the continuation of an Event of Default, a special power of attorney (which shall be irrevocable, coupled with an interest and
include power of substitution) to take any action authorized in this paragraph until the earliest to occur of the waiver of such
Event of Default, the cure of such Event of Default to Agent’s satisfaction, or the payment in full of the Obligations.
Any advances, payments or other costs or expenses made or incurred by Agent in taking any action authorized under this paragraph
shall be Lender Group Expenses and included within the Obligations and reimbursed to Agent on demand or, at Agent’s Permitted
Discretion charged and treated as Advances. Agent’s rights under this Section 9.2 are cumulative of all other rights of
the Agent under the Loan Documents and may be exercised in whole or in part, in Agent’s Permitted Discretion. Agent shall
have no obligation to take any action under this Section 9.2, and no undertaking by Agent under this paragraph shall obligate
Agent to continue any such action or to take any other or additional action under this Section 9.2. Nothing in this Section 9.2
shall be construed as authorizing or causing a replacement of the Servicer absent the occurrence and continuation of an Event
of Default.

 

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9.3           Remedies
Cumulative. The rights and remedies of the Lender Group under this Agreement, the other Loan Documents, and all other agreements
shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent herewith as provided under the
Code, by law, or in equity. No exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver
by the Lender Group of any Event of Default shall be deemed a continuing waiver. No delay by the Lender Group shall constitute
a waiver, election, or acquiescence by it.

 

10.          TAXES
AND EXPENSES.

 

If Borrower fails to
pay any monies (whether taxes, assessments, insurance premiums, or, in the case of leased properties or assets, rents or other
amounts payable under such leases) due to third Persons, or fails to make any deposits or furnish any required proof of payment
or deposit, all as required under the terms of this Agreement, then, Agent, in its Permitted Discretion and without prior notice
to Borrower, may do any or all of the following: (a) make payment of the same or any part thereof (provided that Agent shall not
pay taxes that are the subject of a Permitted Protest and that Agent shall, in any event, consult with the Borrower prior to making
any such payment), (b) set up such reserves against the Borrowing Base or the Maximum Revolver Amount as Agent deems necessary
to protect the Lender Group from the exposure created by such failure, or (c) in the case of the failure to comply with Section
6.8 hereof, obtain and maintain insurance policies of the type described in Section 6.8 and take any action with respect to such
policies as Agent deems prudent. Any such amounts paid by Agent shall constitute Lender Group Expenses and any such payments shall
not constitute an agreement by the Lender Group to make similar payments in the future or a waiver by the Lender Group of any Event
of Default under this Agreement. Agent need not inquire as to, or contest the validity of, any such expense, tax, or Lien and the
receipt of the usual official notice for the payment thereof shall be conclusive evidence that the same was validly due and owing.

 

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11.          WAIVERS;
INDEMNIFICATION.

 

11.1        Demand;
Protest; etc. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment,
nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees
at any time held by the Lender Group on which Borrower may in any way be liable.

 

11.2        The
Lender Group’s Liability for Borrower Collateral. Borrower hereby agrees that: (a) so long as Agent complies with its obligations,
if any, under the Code, the Lender Group shall not in any way or manner be liable or responsible for: (i) the safekeeping of the
Borrower Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution
in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and
(b) all risk of loss, damage, or destruction of the Borrower Collateral shall be borne by Borrower.

 

11.3        Indemnification. Borrower shall pay, indemnify, defend, and hold the Agent-Related Persons, the Lender-Related Persons
with respect to each Lender (each, an “Indemnified Person”) harmless (to the fullest extent permitted by applicable
law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, costs (but excluding
for the avoidance of doubt any Excluded Taxes), penalties, and damages, and all reasonable fees and disbursements of attorneys,
experts and consultants and other reasonable costs and expenses actually incurred in connection therewith or in connection with
the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time
asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the execution,
delivery, enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement,
any of the other Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of Borrower’s and its
Subsidiaries’ compliance with the terms of the Loan Documents, (b) with respect to any investigation, litigation, or proceeding
related to this Agreement, any other Loan Document, or the use of the proceeds of the credit provided hereunder (irrespective of
whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto,
and (c) in connection with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any
assets or properties owned, leased or operated by Borrower or any of its Subsidiaries or any Environmental Actions, Environmental
Liabilities or Remedial Actions related in any way to any such assets or properties of Borrower or any of its Subsidiaries (all
the foregoing, collectively, the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding, Borrower
shall have no obligation to any Indemnified Person under this Section 11.3 with respect to any Indemnified Liability that a court
of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified
Person. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any Indemnified
Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrower was required
to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified
and reimbursed by Borrower with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON
WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF
SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON.

 

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12.          NOTICES.

 

Unless otherwise provided
in this Agreement, all notices or demands by Borrower or Agent to the other relating to this Agreement or any other Loan Document
shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail,
postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested),
overnight courier, electronic mail (at such email addresses as Borrower or Agent, as applicable, may designate to each other in
accordance herewith), or telefacsimile to Borrower or Agent, as the case may be, at its address set forth below:

 

	 	If to Borrower:	Horizon Credit II LLC
	 	 	c/o Horizon Technology Finance Corporation
	 	 	312 Farmington Avenue
	 	 	Farmington, CT  06032
	 	 	Attn:  Jay Bombara
	 	 	Fax No.  860- 676-8655
	 	 	 
	 	with copies to:	Dickstein Shapiro LLP
	 	 	One Stamford Plaza
	 	 	263 Tresser Boulevard, Suite 1400
	 	 	Stamford, CT  06901
	 	 	Attn:  Even S. Seideman, Esq.
	 	 	Fax No.  203-547-7686
	 	 	 
	 	If to Agent:	Key Equipment Finance Inc.
	 	 	Specialty Finance and Syndications
	 	 	1000 McCaslin Blvd. 
	 	 	Superior, CO 80027
	 	 	Attn:  Richard Andersen
	 	 	Fax No.  216-370-9166

 

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	 	with copies to:	Key Equipment Finance
	 	 	120 Vantis, Suite 300
	 	 	Aliso Viejo, CA. 92656
	 	 	Attn:  Rian Emmett
	 	 	Fax No.  (216) 357-6708

 

Agent and Borrower may
change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other
party. All notices or demands sent in accordance with this Section 12, other than notices by Agent in connection with enforcement
rights against the Borrower Collateral under the provisions of the Code, shall be deemed received on the earlier of the date of
actual receipt or three (3) Business Days after the deposit thereof in the mail as provided herein, or if sent by facsimile when
sent with receipt confirmed by the recipient. Borrower acknowledges and agrees that notices sent by the Lender Group in connection
with the exercise of enforcement rights against Borrower Collateral under the provisions of the Code shall be deemed sent when
deposited in the mail or personally delivered, or, where permitted by law, transmitted by telefacsimile or any other method set
forth above.

 

13.          CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

 

(a)           THE
VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN
RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF
THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL
BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(b)           THE
PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE
TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF
NEW YORK, STATE OF NEW YORK, PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY
BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL
OR OTHER PROPERTY MAY BE FOUND. BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW,
ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT
IN ACCORDANCE WITH THIS SECTION 13(b).

 

(c)           TO
THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS
CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.
BORROWER AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED
AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

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(d)           BORROWER
HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY
OF NEW YORK AND THE STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS, OR FOR RECOGNITION
OR ENFORCEMENT OF ANY JUDGMENT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT AGENT MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

14.          ASSIGNMENTS
AND PARTICIPATIONS; SUCCESSORS.

 

14.1        Assignments
and Participations

 

(a)           With
(i) the prior written consent of Borrower, which consent of Borrower shall not be unreasonably withheld, delayed or conditioned,
and shall not be required (A) if a Default or an Event of Default has occurred and is continuing, or (B) in connection
with an assignment to a Person that is a Lender or an Affiliate (other than individuals) of a Lender (provided that Borrower shall
be deemed to have consented to a proposed assignment unless it objects thereto by written notice to Agent within five (5) Business
Days after having received notice thereof), and (ii) the prior written consent of Agent, which consent of Agent shall not
be unreasonably withheld, delayed or conditioned, and shall not be required in connection with an assignment to a Person that
is a Lender or an Affiliate (other than individuals) of a Lender, any Lender may assign and delegate to one or more assignees
so long as in each case such prospective assignee is an Eligible Transferee (each, an “Assignee”; provided, however,
that neither Borrower nor any Affiliate of Borrower shall be permitted to become an Assignee) all or any portion of the Obligations,
the Commitments and the other rights and obligations of such Lender hereunder and under the other Loan Documents, in a minimum
amount (unless waived by the Agent) of $5,000,000 (except such minimum amount shall not apply to (x) an assignment or delegation
by any Lender to any other Lender or an Affiliate of any Lender or (y) a group of new Lenders, each of whom is an Affiliate of
each other or a fund or account managed by any such new Lender or an Affiliate of such new Lender to the extent that the aggregate
amount to be assigned to all such new Lenders is at least $5,000,000); provided, however, that Borrower and Agent may continue
to deal solely and directly with such Lender in connection with the interest so assigned to an Assignee until (I) written
notice of such assignment, together with payment instructions, addresses, and related information with respect to the Assignee,
have been given to Borrower and Agent by such Lender and the Assignee, (II) such Lender and its Assignee have delivered to
Borrower and Agent an Assignment and Acceptance and Agent has notified the assigning Lender of its receipt thereof in accordance
with Section 14.1(b), and (III) unless waived by the Agent, the assigning Lender or Assignee has paid to Agent for Agent’s
separate account a processing fee in the amount of $5,000.

 

    	-99-

     

    

 

(b)           From
and after the date that Agent notifies the assigning Lender (with a copy to Borrower) that it has received an executed Assignment
and Acceptance and, if applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party hereto
and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance,
shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent
that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment
and Acceptance, relinquish its rights (except with respect to Section 11.3 hereof) and be released from any future obligations
under this Agreement (and in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement and the other Loan Documents, such Lender shall cease to be a party hereto and thereto),
and such assignment shall effect a novation among Borrower, the assigning Lender, and the Assignee; provided, however, that nothing
contained herein shall release any assigning Lender from obligations that survive the termination of this Agreement, including
such assigning Lender’s obligations under Section 16 and Section 17.9(a) of this Agreement.

 

(c)           By
executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to
and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance,
such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties
or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto, (ii) such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower or the performance
or observance by Borrower of any of its obligations under this Agreement or any other Loan Document furnished pursuant hereto,
(iii) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance, (iv) such
Assignee will, independently and without reliance upon Agent, such assigning Lender or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Agreement, (v) such Assignee appoints and authorizes Agent to take such actions and to exercise such powers under this
Agreement as are delegated to Agent, by the terms hereof, together with such powers as are reasonably incidental thereto, and
(vi) such Assignee agrees that it will perform all of the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.

 

(d)           Immediately upon Agent’s receipt of the required processing fee, if applicable, and delivery of notice to the assigning
Lender pursuant to Section 14.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary
to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising therefrom. The Commitment allocated
to each Assignee shall reduce such Commitments of the assigning Lender pro tanto.

 

    	-100-

     

    

 

(e)           Any
Lender may at any time sell to one or more commercial banks, financial institutions, or other Persons (a “Participant”)
participating interests in all or any portion of its Obligations, its Commitment, and the other rights and interests of that Lender
(the “Originating Lender”) hereunder and under the other Loan Documents; provided, however, that (i) the Originating
Lender shall remain a “Lender” for all purposes of this Agreement and the other Loan Documents and the Participant
receiving the participating interest in the Obligations, the Commitments, and the other rights and interests of the Originating
Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the Originating Lender’s
obligations under this Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for
the performance of such obligations, (iii) Borrower, Agent, and the Lenders shall continue to deal solely and directly with
the Originating Lender in connection with the Originating Lender’s rights and obligations under this Agreement and the other
Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has the right
to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the
extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend
the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest
rate applicable to the Obligations hereunder in which such Participant is participating, (C) release all or substantially
all of the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan Documents) supporting
the Obligations hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the amount of,
the interest or fees payable to such Participant through such Lender, or (E) change the amount or due dates of scheduled
principal repayments or prepayments or premiums, and (v) all amounts payable by Borrower hereunder shall be determined as if such
Lender had not sold such participation, except that, if amounts outstanding under this Agreement are due and unpaid, or shall
have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be
deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement to the same
extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement. The rights of
any Participant only shall be derivative through the Originating Lender with whom such Participant participates and no Participant
shall have any rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Agent, Borrower,
the Collections, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate
directly in the making of decisions by the Lenders among themselves. Each Participant shall be entitled to the benefits of Section
11.3 and Section 16.11 (subject to the requirements and limitations therein, under Section 15.2 and otherwise in this agreement,
read as if a Participant were a Lender) to the same extent as if it were a Lender and had acquired its interest by assignment;
provided, however, that a Participant shall not be entitled to receive any greater payment under Section 11.3 and Section 16.11
than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant.

 

(f)            In connection with any such assignment or participation or proposed assignment or participation, a Lender may, subject to
the provisions of Section 17.9, disclose all documents and information which it now or hereafter may have relating to Borrower
and its business.

 

    	-101-

     

    

 

(g)           Any
other provision in this Agreement notwithstanding, any Lender may at any time create a security interest in, or pledge, all or
any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with Regulation
A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce such
pledge or security interest in any manner permitted under applicable law.

 

14.2        Successors.
This Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided,
however, that Borrower may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written
consent and any prohibited assignment shall be absolutely void ab initio. No consent to assignment by the Lenders shall
release Borrower from its Obligations. A Lender may assign this Agreement and the other Loan Documents and its rights and duties
hereunder and thereunder pursuant to Section 14.1 hereof and, except as expressly required pursuant to Section 14.1 hereof,
no consent or approval by Borrower is required in connection with any such assignment.

 

15.          AMENDMENTS;
WAIVERS.

 

15.1        Amendments
and Waivers.

 

(a)            No
amendment or waiver of any provision of this Agreement or any other Loan Document (other than Bank Product Agreements or the Fee
Letter), and no consent with respect to any departure by Borrower therefrom, shall be effective unless the same shall be in writing
and signed by the Required Lenders (or by Agent at the written request of the Required Lenders) and Borrower and then any such
waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided,
however, that no such waiver, amendment, or consent shall, unless in writing and signed by all of the Lenders directly affected
thereby and Borrower, do any of the following:

 

(i)            increase
the amount of or extend the expiration date of any Commitment of any Lender,

 

(ii)           postpone
or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts
due hereunder or under any other Loan Document,

 

(iii)           reduce
the principal of, or the rate of interest on, any loan or other extension of credit hereunder, or reduce any fees or other amounts
payable hereunder or under any other Loan Document (except in connection with the waiver of applicability of Section 2.5(b),
which waiver shall be effective with the written consent of the Required Lenders),

 

(iv)          amend,
modify, or eliminate this Section or any provision of this Agreement providing for consent or other action by all Lenders,

 

(v)           amend,
modify, or eliminate Section 16.12,

 

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(vi)          other
than as permitted by Section 16.12, release Agent’s Lien in and to any of the Collateral;

 

(vii)         amend,
modify, or eliminate the definition of “Required Lenders” or “Pro Rata Share”,

 

(viii)       contractually
subordinate any of the Agent’s Liens,

 

(ix)          release
Borrower or any Guarantor from any obligation for the payment of money, or consent to the assignment or transfer by Borrower or
any Guarantor of any of its rights or duties under this Agreement or the other Loan Documents,

 

(x)           amend,
modify, or eliminate any of the provisions of Section 2.4(a) or (b)

 

(xi)          amend,
modify, or eliminate any of the provisions of Section 14.1(a) to permit Borrower or an Affiliate of Borrower to be permitted
to become an Assignee,

 

(xii)         amend,
modify, or eliminate the definition of “Borrowing Base” or any of the defined terms (including the definition of Eligible
Notes Receivable) that are used in such definition to the extent that any such change results in more credit being made available
to Borrower based upon the Borrowing Base, but not otherwise, or the definitions of “Maximum Revolver Amount,” or

 

(xiii)        amend,
modify, or eliminate the definition of “Revolving Credit Availability Period,” “Amortization Commencement Date,”
 “Amortization Period” or any of the provisions of Section 2.2.

 

(b)           No
amendment, waiver, modification, elimination, or consent shall amend, modify, or waive (i) the definition of, or any of the terms
or provisions of, the Fee Letter, without the written consent of Agent and Borrower (and shall not require the written consent
of any of the Lenders), and (ii) any provision of Section 16 pertaining to Agent, or any other rights or duties of Agent under
this Agreement or the other Loan Documents, without the written consent of Agent, Borrower, and the Required Lenders,

 

(c)           Anything
in this Section 15.1 to the contrary notwithstanding, (i) any amendment, modification, elimination, waiver, consent, termination,
or release of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship
of the Lender Group among themselves, and that does not affect the rights or obligations of Borrower, shall not require consent
by or the agreement of Borrower, and (ii) any amendment, waiver, modification, elimination, or consent of or with respect to any
provision of this Agreement or any other Loan Document may be entered into without the consent of, or over the objection of, any
Defaulting Lender.

 

15.2        Replacement of Certain Lenders.

 

(a)           If
any action to be taken by the Lender Group or Agent hereunder requires the unanimous consent, authorization, or agreement of all
Lenders or all Lenders affected thereby and if such action has received the consent, authorization, or agreement of the Required
Lenders but not of all Lenders or all Lenders affected thereby, or (ii) any Lender makes a claim for compensation under Section
16.11, then Borrower or Agent, upon at least 5 Business Days prior irrevocable notice, may permanently replace any Lender that
failed to give its consent, authorization, or agreement (a “Holdout Lender”) or any Lender that made a claim for compensation
(a “Tax Lender”) with one or more Replacement Lenders, and the Holdout Lender or Tax Lender, as applicable, shall
have no right to refuse to be replaced hereunder. Such notice to replace the Holdout Lender or Tax Lender, as applicable, shall
specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice
is given.

 

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(b)           Prior
to the effective date of such replacement, the Holdout Lender or Tax Lender, as applicable, and each Replacement Lender shall
execute and deliver an Assignment and Acceptance, subject only to the Holdout Lender or Tax Lender, as applicable, being repaid
in full its share of the outstanding Obligations (without any premium or penalty of any kind whatsoever, but including all interest,
fees and other amounts that may be due in payable in respect thereof). If the Holdout Lender or Tax Lender, as applicable, shall
refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, Agent
may, but shall not be required to, execute and deliver such Assignment and Acceptance in the name or and on behalf of the Holdout
Lender or Tax Lender, as applicable, and irrespective of whether Agent executes and delivers such Assignment and Acceptance, the
Holdout Lender or Tax Lender, as applicable, shall be deemed to have executed and delivered such Assignment and Acceptance. The
replacement of any Holdout Lender or Tax Lender, as applicable, shall be made in accordance with the terms of Section 14.1. Until
such time as one or more Replacement Lenders shall have acquired all of the Obligations, the Commitments, and the other rights
and obligations of the Holdout Lender or Tax Lender, as applicable, hereunder and under the other Loan Documents, the Holdout
Lender or Tax Lender, as applicable, shall remain obligated to make the Holdout Lender’s or Tax Lender’s, as applicable,
Pro Rata Share of Advances.

 

15.3        No
Waivers; Cumulative Remedies. No failure by Agent or any Lender to exercise any right, remedy, or option under this Agreement
or any other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver
by Agent or any Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by
Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require
strict performance by Borrower of any provision of this Agreement. Agent’s and each Lender’s rights under this Agreement
and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Agent or any Lender may have.

 

16.          AGENT;
THE LENDER GROUP.

 

16.1        Appointment
and Authorization of Agent. Each Lender hereby designates and appoints KEF as its agent under this Agreement and the other Loan
Documents and each Lender hereby irrevocably authorizes (and by entering into a Bank Product Agreement, each Bank Product Provider
shall be deemed to designate, appoint, and authorize) Agent to execute and deliver each of the other Loan Documents on its behalf
and to take such other action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise
such powers and perform such duties as are expressly delegated to Agent by the terms of this Agreement or any other Loan Document,
together with such powers as are reasonably incidental thereto. Agent agrees to act as agent for and on behalf of the Lenders
(and the Bank Product Providers) on the conditions contained in this Section 16. Any provision to the contrary contained elsewhere
in this Agreement or in any other Loan Document notwithstanding, Agent shall not have any duties or responsibilities, except those
expressly set forth herein or in the other Loan Documents, nor shall Agent have or be deemed to have any fiduciary relationship
with any Lender (or Bank Product Provider), and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist against Agent. Without limiting the generality
of the foregoing, the use of the term “agent” in this Agreement or the other Loan Documents with reference to Agent
is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable
law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only a representative
relationship between independent contracting parties. Each Lender hereby further authorizes (and by entering into a Bank Product
Agreement, each Bank Product Provider shall be deemed to authorize) Agent to act as the secured party under each of the Loan Documents
that create a Lien on any item of Collateral. Except as expressly otherwise provided in this Agreement, Agent shall have and may
use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining
from taking any actions that Agent expressly is entitled to take or assert under or pursuant to this Agreement and the other Loan
Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides rights
or powers to Agent, Lenders agree that Agent shall have the right to exercise the following powers as long as this Agreement remains
in effect: (a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the
Obligations, the Collateral, the Collections of Borrower, and related matters, (b) execute or file any and all financing or similar
statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements
with respect to the Loan Documents, (c) make Advances, for itself or on behalf of Lenders, as provided in the Loan Documents,
(d) exclusively receive, apply, and distribute the Collections of Borrower as provided in the Loan Documents, (e) open and maintain
such bank accounts and cash management arrangements as Agent deems necessary and appropriate in accordance with the Loan Documents
for the foregoing purposes with respect to the Collateral and the Collections of Borrower, (f) perform, exercise, and enforce
any and all other rights and remedies of the Lender Group with respect to Borrower, the Obligations, the Collateral, the Collections
of Borrower, or otherwise related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group Expenses
as Agent may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan
Documents.

 

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16.2        Delegation
of Duties. Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees
or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. Agent shall
not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects as long as such selection
was made without gross negligence or willful misconduct.

 

16.3        Liability of Agent. None of the Agent-Related Persons shall (a) be liable for any action taken or omitted to be taken
by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except
for its own gross negligence or willful misconduct), or (b) be responsible in any manner to any of the Lenders (or Bank Product
Providers) for any recital, statement, representation or warranty made by Borrower or any of its Subsidiaries or Affiliates, or
any officer or director thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement
or other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other
Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document,
or for any failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related
Person shall be under any obligation to any Lenders (or Bank Product Providers) to ascertain or to inquire as to the observance
or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect
the books and records or properties of Borrower.

 

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16.4        Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution,
notice, consent, certificate, affidavit, letter, telegram, telefacsimile or other electronic method of transmission, telex or telephone
message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent, or
made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower or counsel
to any Lender), independent accountants and other experts selected by Agent. Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence
of the Lenders as it deems appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it
deems advisable. If Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders (and, if it
so elects, the Bank Product Providers) against any and all liability and expense that may be incurred by it by reason of taking
or continuing to take any such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders and such request and
any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders (and Bank Product Providers).

 

16.5        Notice
of Default or Event of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event
of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent
for the account of the Lenders and, except with respect to Events of Default of which Agent has actual knowledge, unless Agent
shall have received written notice from a Lender or Borrower referring to this Agreement, describing such Default or Event of
Default, and stating that such notice is a “notice of default.” Agent promptly will notify the Lenders of its receipt
of any such notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge of any
Event of Default, such Lender promptly shall notify the other Lenders and Agent of such Event of Default. Each Lender shall be
solely responsible for giving any notices to its Participants, if any. Subject to Section 16.4, Agent shall take such action with
respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 9; provided,
however, that unless and until Agent has received any such request, Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable.

 

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16.6        Credit
Decision. Each Lender (and Bank Product Provider) acknowledges that none of the Agent-Related Persons has made any representation
or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of Borrower or Affiliates,
shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender (or Bank Product Provider).
Each Lender represents (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to represent)
to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such due diligence, documents
and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document, and all
applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to Borrower. Each Lender also represents (and by entering into a Bank Product Agreement, each Bank
Product Provider shall be deemed to represent) that it will, independently and without reliance upon any Agent-Related Person
and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations
as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and
creditworthiness of Borrower or any other Person party to a Loan Document. Except for notices, reports, and other documents expressly
herein required to be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any Lender
(or Bank Product Provider) with any credit or other information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of Borrower or any other Person party to a Loan Document that may come into the possession
of any of the Agent-Related Persons. Each Lender acknowledges (and by entering into a Bank Product Agreement, each Bank Product
Provider shall be deemed to acknowledge) that Agent does not have any duty or responsibility, either initially or on a continuing
basis (except to the extent, if any, that is expressly specified herein) to provide such Lender (or Bank Product Provider) with
any credit or other information with respect to Borrower, its Affiliates or any of their respective business, legal, financial
or other affairs, and irrespective of whether such information came into Agent's or its Affiliates’ or representatives’
possession before or after the date on which such Lender became a party to this Agreement (or such Bank Product Provider entered
into a Bank Product Agreement).

 

16.7        Costs
and Expenses; Indemnification. Agent may incur and pay Lender Group Expenses to the extent Agent reasonably deems necessary or
appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including
court costs, attorneys fees and expenses, fees and expenses of financial accountants, advisors, consultants, and appraisers, costs
of collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or insurance premiums
paid to maintain the Collateral, whether or not Borrower is obligated to reimburse Agent or Lenders for such expenses pursuant
to this Agreement or otherwise. Agent is authorized and directed to deduct and retain sufficient amounts from the Collections
of Borrower received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts
to Lenders (or Bank Product Providers). In the event Agent is not reimbursed for such costs and expenses by Borrower, each Lender
hereby agrees that it is and shall be obligated to pay to Agent such Lender’s ratable thereof. Whether or not the transactions
contemplated hereby are consummated, each of the Lenders, on a ratable basis, shall indemnify and defend the Agent-Related Persons
(to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so) from and against
any and all Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person
of any portion of such Indemnified Liabilities resulting solely from such Person’s gross negligence or willful misconduct
nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make an Advance or other extension of
credit hereunder. Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for such Lender’s ratable
share of any costs or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred
by Agent in connection with the preparation, execution, delivery, administration, modification, amendment, or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement or any other Loan Document to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrower.
The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of Agent.

 

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16.8        Agent
in Individual Capacity. KEF and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits
from, provide Bank Products to, acquire equity interests in, and generally engage in any kind of banking, trust, financial advisory,
underwriting, or other business with Borrower and its Affiliates and any other Person party to any Loan Document as though KEF
were not Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The other
members of the Lender Group acknowledge (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed
to acknowledge) that, pursuant to such activities, KEF or its Affiliates may receive information regarding Borrower or its Affiliates
or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Borrower or such other
Person and that prohibit the disclosure of such information to the Lenders (or Bank Product Providers), and the Lenders acknowledge
(and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, in such circumstances
(and in the absence of a waiver of such confidentiality obligations, which waiver Agent will use its reasonable best efforts to
obtain), Agent shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders”
include KEF in its individual capacity.

 

16.9        Successor Agent. Agent may resign as Agent upon thirty (30) days prior written notice to the Lenders (unless such notice
is waived by the Required Lenders) and Borrower (unless such notice is waived by Borrower) and without any notice to the Bank Product
Providers. If Agent resigns under this Agreement, the Required Lenders shall be entitled, with (so long as no Event of Default
has occurred and is continuing) the consent of Borrower (such consent not to be unreasonably withheld, delayed, or conditioned),
appoint a successor Agent for the Lenders (and the Bank Product Providers). If no successor Agent is appointed prior to the effective
date of the resignation of Agent, Agent may appoint, after consulting with the Lenders and Borrower, a successor Agent. If Agent
has materially breached or failed to perform any material provision of this Agreement or of applicable law, the Required Lenders
may agree in writing to remove and replace Agent with a successor Agent from among the Lenders with (so long as no Event of Default
has occurred and is continuing) the consent of Borrower (such consent not to be unreasonably withheld, delayed, or conditioned).
In any such event, upon the acceptance of its appointment as successor Agent hereunder, such successor Agent shall succeed to all
the rights, powers, and duties of the retiring Agent and the term “Agent” shall mean such successor Agent and the retiring
Agent’s appointment, powers, and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder
as Agent, the provisions of this Section 16 shall inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under this Agreement. If no successor Agent has accepted appointment as Agent by the date which is thirty (30) days
following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Lenders appoint a
successor Agent as provided for above.

 

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16.10      Lender
in Individual Capacity. Any Lender and its respective Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, provide Bank Products to, acquire equity interests in and generally engage in any kind of banking, trust,
financial advisory, underwriting, or other business with Borrower and its Affiliates and any other Person party to any Loan Documents
as though such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group (or the
Bank Product Providers). The other members of the Lender Group acknowledge (and by entering into a Bank Product Agreement, each
Bank Product Provider shall be deemed to acknowledge) that, pursuant to such activities, such Lender and its respective Affiliates
may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is subject to
confidentiality obligations in favor of Borrower or such other Person and that prohibit the disclosure of such information to
the Lenders, and the Lenders acknowledge (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed
to acknowledge) that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver
such Lender will use its reasonable best efforts to obtain), such Lender shall not be under any obligation to provide such information
to them.

 

16.11      Withholding
Taxes.

 

(a)           Unless
otherwise required by any applicable law, all payments under any Loan Document shall be made free and clear of, and without deduction
or withholding for, any present or future Taxes, and in the event any deduction or withholding of Taxes is required, Borrower
shall comply with the next sentence of this Section 16.11(a). If any Taxes other than Excluded Taxes are so levied or imposed,
Borrower agrees to pay the full amount of such Taxes and such additional amounts as may be necessary so that every payment of
all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this Section 16.11(a)
after withholding or deduction for or on account of any Taxes, will not be less than the amount provided for herein; provided,
however, that Borrower shall not be required to increase any such amounts if the increase in such amount payable results from
Agent’s or such Lender’s own willful misconduct or gross negligence (as finally determined by a court of competent
jurisdiction). Borrower will furnish to Agent as promptly as possible after the date the payment of any Tax is due pursuant to
applicable law, certified copies of tax receipts evidencing such payment by Borrower.

 

(b)           Borrower agrees to pay any present or future stamp, value added or documentary taxes or any other excise or property taxes,
charges, or similar levies that arise from any payment made hereunder or from the execution, delivery, performance, recordation,
or filing of, or otherwise with respect to this Agreement or any other Loan Document. For the avoidance of doubt, the obligation
under this Section 16.11(b) shall not apply to any Excluded Taxes.

 

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(c)           Each
Lender agrees with and in favor of Borrower and Agent, to deliver to Borrower and Agent one of the following before receiving
its first payment under this Agreement, whenever a lapse in time or change in circumstances of such Person renders such documentation
obsolete or inaccurate, at such other time or times prescribed by applicable laws or when otherwise reasonably requested by the
Borrower or the Agent, such properly completed and executed documentation prescribed by applicable laws or by the taxing authorities
of any jurisdiction and such other reasonably requested information as will permit the Borrower or the Agent, as the case may
be, to determine (i) whether or not payments made hereunder or under any other Loan Document are subject to Taxes, (ii) if applicable,
the required rate of withholding or deduction, and (iii) such Person’s entitlement to any available exemption from, or reduction
of, applicable Taxes in respect of all payments to be made to such Person by the Borrower pursuant to this Agreement or otherwise
to establish such Person’s status for withholding Tax purposes in the applicable jurisdiction. Without limiting the generality
of the foregoing, each Lender will comply with whichever of the following applies to it:

 

(i)            if a Foreign Lender is entitled to claim an exemption from United States withholding tax pursuant to the portfolio interest
exception, (A) a statement of the Lender or Participant, signed under penalty of perjury, that it is not a (I) a “bank”
as described in Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder of Borrower (within the meaning of Section 871(h)(3)(B)
of the IRC), or (III) a controlled foreign corporation related to Borrower within the meaning of Section 864(d)(4) of the IRC,
and (B) a properly completed and executed IRS Form W-8BEN or Form W-8IMY (with proper attachments);

 

(ii)           if a Foreign Lender is entitled to claim an exemption from, or a reduction of, withholding tax under a United States tax
treaty, a properly completed and executed copy of IRS Form W-8BEN;

 

(iii)          if
a Foreign Lender is entitled to claim that interest paid under this Agreement is exempt from United States withholding tax because
it is effectively connected with a United States trade or business of such Lender, a properly completed and executed copy of IRS
Form W-8ECI;

 

(iv)          if
a Foreign Lender is entitled to claim that interest paid under this Agreement is exempt from United States withholding tax because
such Lender or Participant serves as an intermediary, a properly completed and executed copy of IRS Form W-8IMY (with proper attachments);
or

 

(v)           if
the Lender is a United States person within the meaning of IRC section 7701(a)(30) (a “U.S. Lender”), a properly completed
and executed copy of any other form or forms, including IRS Form W-9, as may be required under the IRC or other laws of the United
States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax.

 

Each Lender shall provide new forms (or
successor forms) upon the expiration or obsolescence of any previously delivered forms and to promptly notify Borrower and Agent
of any change in circumstances which would modify or render invalid any claimed exemption or reduction.

 

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(d)           If
a Lender claims an exemption from withholding tax in a jurisdiction other than the United States, such Lender agrees with and
in favor of Borrower and Agent, to deliver to Borrower and Agent any such form or forms, as may be required under the laws of
such jurisdiction as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax before receiving
its first payment under this Agreement, but only if such Lender or such Participant is legally able to deliver such forms, provided,
however, that nothing in this Section 16.11(d) shall require a Lender or Participant to disclose any information that it deems
to be confidential (including without limitation, its tax returns). Each Lender and each Participant shall provide new forms (or
successor forms) upon the expiration or obsolescence of any previously delivered forms and to promptly notify Borrower and Agent
(or, in the case of a Participant, to the Lender granting the participation only) of any change in circumstances which would modify
or render invalid any claimed exemption or reduction.

 

(e)           If
the IRS or any other Governmental Authority of the United States or other jurisdiction asserts a claim that Borrower or Agent
(or, in the case of a Participant, to the Lender granting the participation) did not properly withhold tax from amounts paid to
or for the account of any Lender due to a failure on the part of the Lender or any Participant (because the appropriate form was
not delivered, was not properly executed, or because such Lender failed to notify Borrower or Agent of a change in circumstances
which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify
and hold Borrower and Agent harmless for all amounts paid, directly or indirectly, by Borrower or Agent (or, in the case of a
Participant, to the Lender granting the participation), as tax or otherwise, including penalties and interest, and including any
taxes imposed by any jurisdiction on the amounts payable to Borrower or Agent (or, in the case of a Participant, to the Lender
granting the participation only) under this Section 16.11, together with all costs and expenses (including attorneys fees
and expenses). The obligation of the Lenders and the Participants under this subsection shall survive the payment of all Obligations
and the resignation or replacement of Agent.

 

(f)            If
Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified
by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section 16.11, so long as no Default
or Event of Default has occurred and is continuing, it shall pay over such refund to Borrower (but only to the extent of payments
made, or additional amounts paid, by Borrower under this Section 16.11 with respect to Taxes giving rise to such a refund),
net of all out-of-pocket expenses of Agent or such Lender and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such a refund); provided, that Borrower, upon the request of Agent or such Lender, agrees to repay the
amount paid over to Borrower (plus any penalties, interest or other charges, imposed by the relevant Governmental Authority, other
than such penalties, interest or other charges imposed as a result of the willful misconduct or gross negligence of Agent hereunder)
to Agent or such Lender in the event Agent or such Lender is required to repay such refund to such Governmental Authority. Notwithstanding
anything in this Agreement to the contrary, this Section 16.11 shall not be construed to require Agent or any Lender to make available
its tax returns (or any other information which it deems confidential) to Borrower or any other Person.

 

(g)           With
respect to any claim for compensation for Taxes, the Borrower shall not be required to compensate the Agent or any Lender for
any amount incurred more than one hundred and eighty (180) days prior to the date that the Agent or such Lender notifies the Borrower
of the event that gives rise to such claim; provided that, if the circumstance giving rise to such increased cost or reduction
is retroactive, then such 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

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(h)           Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 16.11(a) or Section 16.11(b)
with respect to such Lender it will, if requested by the Borrower, use commercially reasonable efforts (subject to such Lender’s
overall internal policies of general application and legal and regulatory restrictions) to avoid the consequences of such event,
including to designate another lending office for any Advances affected by such event or to assign its rights and obligations with
respect to such Advances to another of its offices, branches or affiliates; provided that such efforts are made on terms that,
in the reasonable judgment of such Lender, cause such Lender and its lending office(s) to suffer no material economic, legal or
regulatory disadvantage, and provided further that nothing in this Section 16.11(h) shall affect or postpone any of the obligations
of Borrower or the rights of such Lender pursuant to Section 16.11(a) and Section 16.11(b).

 

16.12     
Collateral Matters

 

(a)           The
Lenders hereby irrevocably authorize Agent, (and by entering into a Bank Product Agreement, each Bank Product Provider shall be
deemed to authorize) Agent to release any Lien on any Collateral (i) upon the termination of the Commitments and payment
and satisfaction in full by Borrower of all Obligations, (ii) constituting property being sold or disposed of if a release
is required or desirable in connection therewith and if such sale or disposition is a Permitted Disposition or Borrower certifies
to Agent that the sale or disposition is permitted under Section 7.4 of this Agreement or the other Loan Documents (and Agent
may rely conclusively on any such certificate, without further inquiry), (iii) constituting property in which Borrower owned
no interest at the time the Agent’s Lien was granted nor at any time thereafter, or (iv) constituting property leased to
Borrower under a lease that has expired or is terminated in a transaction permitted under this Agreement. Borrower and the Lenders
hereby irrevocably authorize (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to authorize)
Agent, based upon the instruction of the Required Lenders, to (a) consent to, credit bid or purchase (either directly or through
one or more acquisition vehicles) all or any portion of the Collateral at any sale thereof conducted under the provisions of the
Bankruptcy Code, including under Section 363 of the Bankruptcy Code, (b) credit bid or purchase (either directly or through
one or more acquisition vehicles) all or any portion of the Collateral at any sale or other disposition thereof conducted under
the provisions of the Code, including pursuant to Sections 9-610 or 9-620 of the Code, or (c) credit bid or purchase (either directly
or through one or more acquisition vehicles) all or any portion of the Collateral at any other sale or foreclosure conducted by
Agent (whether by judicial action or otherwise) in accordance with applicable law. In connection with any such credit bid or purchase,
the Obligations owed to the Lenders and the Bank Product Providers shall be entitled to be, and shall be, credit bid on a ratable
basis (with Obligations with respect to contingent or unliquidated claims being estimated for such purpose if the fixing or liquidation
thereof would not unduly delay the ability of Agent to credit bid or purchase at such sale or other disposition of the Collateral
and, if such claims cannot be estimated without unduly delaying the ability of Agent to credit bid, then such claims shall be
disregarded, not credit bid, and not entitled to any interest in the asset or assets purchased by means of such credit bid) and
the Lenders and the Bank Product Providers whose Obligations are credit bid shall be entitled to receive interests (ratably based
upon the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) in the asset
or assets so purchased (or in the Stock of the acquisition vehicle or vehicles that are used to consummate such purchase). Except
as provided above, Agent will not execute and deliver a release of any Lien on any Collateral without the prior written authorization
of (y) if the release is of all or substantially all of the Collateral, all of the Lenders (without requiring the authorization
of the Bank Product Providers), or (z) otherwise, the Required Lenders (without requiring the authorization of the Bank Product
Providers). Upon request by Agent or Borrower at any time, the Lenders will (and if so requested, the Bank Product Providers will)
confirm in writing Agent’s authority to release any such Liens on particular types or items of Collateral pursuant to this
Section 16.12; provided, however, that (1) Agent shall not be required to execute any document necessary to evidence such release
on terms that, in Agent’s opinion, would expose Agent to liability or create any obligation or entail any consequence other
than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge,
affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of Borrower in
respect of) all interests retained by Borrower, including, the proceeds of any sale, all of which shall continue to constitute
part of the Collateral. The Lenders further hereby irrevocably authorize (and by entering into a Bank Product Agreement, each
Bank Product Provider shall be deemed to authorize) Agent, at its option and in its sole discretion, to subordinate any Lien granted
to or held by Agent under any Loan Document to the holder of any Permitted Lien on such property.

 

    	-112-

     

    

 

(b)           Agent
shall have no obligation whatsoever to any of the Lenders (or the Bank Product Providers) to assure that the Collateral exists
or is owned by Borrower or is cared for, protected, or insured or has been encumbered, or that Agent’s Liens have been properly
or sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any particular priority, or that any
particular items of Collateral meet the eligibility criteria applicable in respect thereof or whether to impose, maintain, reduce,
or eliminate any particular reserve hereunder or whether the amount of any such reserve is appropriate or not, or to exercise
at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights,
authorities and powers granted or available to Agent pursuant to any of the Loan Documents, it being understood and agreed that
in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein,
Agent may act in any manner it may deem appropriate, in its sole discretion given Agent’s own interest in the Collateral
in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any Lender (or Bank Product
Provider) as to any of the foregoing, except as otherwise provided herein.

 

16.13     
Restrictions on Actions by Lenders; Sharing of Payments

 

(a)           Each
of the Lenders agrees that it shall not, without the express written consent of Agent, and that it shall, to the extent it is
lawfully entitled to do so, upon the written request of Agent, set off against the Obligations, any amounts owing by such Lender
to Borrower or any deposit accounts of Borrower now or hereafter maintained with such Lender. Each of the Lenders further agrees
that it shall not, unless specifically requested to do so in writing by Agent, take or cause to be taken any action, including,
the commencement of any legal or equitable proceedings, to foreclose any Lien on, or otherwise enforce any security interest in,
any of the Collateral.

 

    	-113-

     

    

 

(b)           If,
at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or
any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from Agent pursuant
to the terms of this Agreement, or (ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such distributions
by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and with such endorsements as may be required to
negotiate the same to Agent, or in immediately available funds, as applicable, for the account of all of the Lenders and for application
to the Obligations in accordance with the applicable provisions of this Agreement, or (B) purchase, without recourse or warranty,
an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall
be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, however, that to the extent that such
excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded
in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing
party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the
recovery of the excess payment.

 

16.14     
Agency for Perfection. Agent hereby appoints each other Lender (and each Bank Product Provider) as its agent (and each
Lender hereby accepts (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to accept) such
appointment) for the purpose of perfecting Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable,
of the Code can be perfected by possession or control. Should any Lender obtain possession or control of any such Collateral, such
Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver possession or control of such
Collateral to Agent or in accordance with Agent’s instructions.

 

16.15     
Payments by Agent to the Lenders. All payments to be made by Agent to the Lenders (or Bank Product Providers) shall
be made by bank wire transfer or internal transfer of immediately available funds pursuant to such wire transfer instructions as
each party may designate for itself by written notice to Agent. Concurrently with each such payment, Agent shall identify whether
such payment (or any portion thereof) represents principal, premium, fees, or interest of the Obligations.

 

16.16     
Concerning the Collateral and Related Loan Documents. Each member of the Lender Group authorizes and directs Agent to
enter into this Agreement and the other Loan Documents. Each member of the Lender Group agrees (and by entering into a Bank Product
Agreement, each Bank Product Provider shall be deemed to agree) that any action taken by Agent in accordance with the terms of
this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of its powers set forth therein
or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders (and
such Bank Product Provider).

 

16.17      Field
Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information. By becoming a party to
this Agreement, each Lender:

 

    	-114-

     

    

 

(a)           is deemed to have requested that Agent furnish such Lender, promptly after it becomes available, a copy of each field audit
or examination report (each a “Report”) prepared by or at the request of Agent, and Agent shall so furnish each Lender
with such Reports,

 

(b)           expressly
agrees and acknowledges that Agent does not (i) make any representation or warranty as to the accuracy of any Report, and (ii)
shall not be liable for any information contained in any Report,

 

(c)           expressly
agrees and acknowledges that the Reports are not comprehensive audits or examinations, that Agent or other party performing any
audit or examination will inspect only specific information regarding Borrower and will rely significantly upon the Books, as
well as on representations of Borrower’s personnel,

 

(d)           agrees
to keep all Reports and other material, non-public information regarding Borrower and its operations, assets, and existing and
contemplated business plans in a confidential manner in accordance with Section 17.9, and

 

(e)           without
limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold Agent and any
other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the
indemnifying Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the indemnifying
Lender has made or may make to Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s
purchase of, a loan or loans of Borrower, and (ii) to pay and protect, and indemnify, defend and hold Agent, and any such other
Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts
(including, attorneys fees and costs) incurred by Agent and any such other Lender preparing a Report as the direct or indirect
result of any third parties who might obtain all or part of any Report through the indemnifying Lender.

 

In addition to the foregoing: (x) any Lender
may from time to time request of Agent in writing that Agent provide to such Lender a copy of any report or document provided by
Borrower to Agent that has not been contemporaneously provided by Borrower to such Lender, and, upon receipt of such request, Agent
promptly shall provide a copy of same to such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan
Documents, to request additional reports or information from Borrower, any Lender may, from time to time, reasonably request Agent
to exercise such right as specified in such Lender’s notice to Agent, whereupon Agent promptly shall request of Borrower
the additional reports or information reasonably specified by such Lender, and, upon receipt thereof from Borrower, Agent promptly
shall provide a copy of same to such Lender, and (z) any time that Agent renders to Borrower a statement regarding the Loan Account,
Agent shall send a copy of such statement to each Lender.

 

16.18      Several
Obligations; No Liability. Notwithstanding that certain of the Loan Documents now or hereafter may have been or will be executed
only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part
of Agent (if any) to make any credit available hereunder shall constitute the several (and not joint) obligations of the respective
Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to exceed, in principal
amount, at any one time outstanding, the amount of their respective Commitments. Nothing contained herein shall confer upon any
Lender any interest in, or subject any Lender to any liability for, or in respect of, the business, assets, profits, losses, or
liabilities of any other Lender. Each Lender shall be solely responsible for notifying its Participants of any matters relating
to the Loan Documents to the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability
to any Participant of any other Lender. Except as provided in Section 16.7, no member of the Lender Group shall have any liability
for the acts of any other member of the Lender Group. No Lender shall be responsible to Borrower or any other Person for any failure
by any other Lender (or Bank Product Provider) to fulfill its obligations to make credit available hereunder, nor to advance for
such Lender (or Bank Product Provider) or on its behalf, nor to take any other action on behalf of such Lender (or Bank Product
Provider) hereunder or in connection with the financing contemplated herein.

 

    	-115-

     

    

 

17.          GENERAL
PROVISIONS.

 

17.1        Effectiveness.
This Agreement shall be binding and deemed effective when executed by Borrower, Agent, and each Lender whose signature is provided
for on the signature pages hereof.

 

17.2        Section
Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context,
everything contained in each Section applies equally to this entire Agreement.

 

17.3        Interpretation.
Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against the Lender Group or Borrower, whether
under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed
and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of
all parties hereto.

 

17.4        Severability
of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose
of determining the legal enforceability of any specific provision.

 

17.5        Bank
Product Providers. Each Bank Product Provider shall be deemed a third party beneficiary hereof and of the provisions of the other
Loan Documents for purposes of any reference in a Loan Document to the parties for whom Agent is acting. Agent hereby agrees to
act as agent for such Bank Product Providers and, by virtue of entering into a Bank Product Agreement, the applicable Bank Product
Provider shall be automatically deemed to have appointed Agent as its agent and to have accepted the benefits of the Loan Documents;
it being understood and agreed that the rights and benefits of each Bank Product Provider under the Loan Documents consist exclusively
of such Bank Product Provider’s being a beneficiary of the Liens and security interests (and, if applicable, guarantees)
granted to Agent and the right to share in payments and collections out of the Collateral as more fully set forth herein. In addition,
each Bank Product Provider, by virtue of entering into a Bank Product Agreement, shall be automatically deemed to have agreed
that Agent shall have the right, but shall have no obligation, to establish, maintain, relax, or release reserves in respect of
the Bank Product Obligations and that if reserves are established there is no obligation on the part of Agent to determine or
insure whether the amount of any such reserve is appropriate or not. In connection with any such distribution of payments or proceeds
of Collateral, Agent shall be entitled to assume no amounts are due or owing to any Bank Product Provider unless such Bank Product
Provider has provided a written certification (setting forth a reasonably detailed calculation) to Agent as to the amounts that
are due and owing to it and such written certification is received by Agent a reasonable period of time prior to the making of
such distribution. Agent shall have no obligation to calculate the amount due and payable with respect to any Bank Products, but
may rely upon the written certification of the amount due and payable from the relevant Bank Product Provider. In the absence
of an updated certification, Agent shall be entitled to assume that the amount due and payable to the relevant Bank Product Provider
is the amount last certified to Agent by such Bank Product Provider as being due and payable (less any distributions made to such
Bank Product Provider on account thereof). Borrower may obtain Bank Products from any Bank Product Provider, although Borrower
is not required to do so. Borrower acknowledges and agrees that no Bank Product Provider has committed to provide any Bank Products
and that the providing of Bank Products by any Bank Product Provider is in the sole and absolute discretion of such Bank Product
Provider. Notwithstanding anything to the contrary in this Agreement or any other Loan Document, no provider or holder of any
Bank Product shall have any voting or approval rights hereunder (or be deemed a Lender) solely by virtue of its status as the
provider or holder of such agreements or products or the Obligations owing thereunder, nor shall the consent of any such provider
or holder be required (other than in their capacities as Lenders, to the extent applicable) for any matter hereunder or under
any of the other Loan Documents, including as to any matter relating to the Collateral or the release of Collateral or Guarantors.

 

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17.6        Debtor-Creditor
Relationship. The relationship between the Lenders and Agent, on the one hand, and Borrower, on the other hand, is solely that
of creditor and debtor. No member of the Lender Group has (or shall be deemed to have) any fiduciary relationship or duty to Borrower
arising out of or in connection with the Loan Documents or the transactions contemplated thereby, and there is no agency or joint
venture relationship between the members of the Lender Group, on the one hand, and the Borrower, on the other hand, by virtue
of any Loan Document or any transaction contemplated therein.

 

17.7        Counterparts;
Electronic Execution. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts,
each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute
but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method
of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering
an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original
executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity,
enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis.

 

17.8        Revival
and Reinstatement of Obligations. If the incurrence or payment of the Obligations by Borrower or any Guarantor or the transfer
to the Lender Group of any property should for any reason subsequently be declared to be void or voidable under any state or federal
law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences,
or other voidable or recoverable payments of money or transfers of property (each, a “Voidable Transfer”), and if
the Lender Group is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the
reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Lender Group is required
or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of the Lender Group related thereto,
the liability of Borrower or such Guarantor automatically shall be revived, reinstated, and restored and shall exist as though
such Voidable Transfer had never been made.

 

    	-117-

     

    

 

17.9        Confidentiality.

 

(a)           Agent
and the Lenders each individually (and not jointly or jointly and severally) agree that material, non-public information regarding
Borrower and its Affiliates, their operations, assets, and existing and contemplated business plans (“Confidential Information”)
shall be treated by Agent and the Lenders in a confidential manner, and shall not be disclosed by Agent and the Lenders to Persons
who are not parties to this Agreement, except: (i) to attorneys for and other advisors, accountants, auditors, and consultants
to any member of the Lender Group and to employees, directors and officers of any member of the Lender Group (the Persons in this
clause (i), “Lender Group Representatives”) on a “need to know” basis in connection with this Agreement
and the transactions contemplated hereby and on a confidential basis, (ii) to Subsidiaries and Affiliates of any member of the
Lender Group (including the Bank Product Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive
such information hereunder subject to the terms of this Section 17.9, (iii) as may be required by regulatory authorities so long
as such authorities are informed of the confidential nature of such information, (iv) as may be required by statute, decision,
or judicial or administrative order, rule, or regulation; provided that (x) prior to any disclosure under this clause (iv),
the disclosing party agrees to provide Borrower with prior notice thereof, to the extent that it is practicable to do so and to
the extent that the disclosing party is permitted to provide such prior notice to Borrower pursuant to the terms of the applicable
statute, decision, or judicial or administrative order, rule, or regulation and (y) any disclosure under this clause (iv) shall
be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative
order, rule, or regulation, (v) as may be agreed to in advance in writing by Borrower, (vi) as requested or required by any Governmental
Authority pursuant to any subpoena or other legal process, provided, that, (x) prior to any disclosure under this clause (vi) the
disclosing party agrees to provide Borrower with prior written notice thereof, to the extent that it is practicable to do so and
to the extent that the disclosing party is permitted to provide such prior written notice to Borrower pursuant to the terms of
the subpoena or other legal process and (y) any disclosure under this clause (vi) shall be limited to the portion of the Confidential
Information as may be required by such Governmental Authority pursuant to such subpoena or other legal process, (vii) as to any
such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent
or the Lenders or the Lender Group Representatives), (viii) in connection with any assignment, participation or pledge of any
Lender’s interest under this Agreement, provided that prior to receipt of Confidential Information any such assignee, participant,
or pledgee shall have agreed in writing to receive such Confidential Information hereunder subject to the terms of this Section,
(ix) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary
proceeding involves claims related to the rights or duties of such parties under this Agreement or the other Loan Documents; provided,
that, prior to any disclosure to any Person (other than Borrower, Agent, any Lender, any of their respective Affiliates, or their
respective counsel) under this clause (ix) with respect to litigation involving any Person (other than Borrower, Agent, any Lender,
any of their respective Affiliates, or their respective counsel), the disclosing party agrees to provide Borrower with prior written
notice thereof, and (x) in connection with, and to the extent reasonably necessary for, the exercise of any secured creditor remedy
under this Agreement or under any other Loan Document.

 

    	-118-

     

    

 

(b)           Anything
in this Agreement to the contrary notwithstanding, Agent may (i) provide customary information concerning the terms and conditions
of this Agreement and the other Loan Documents to loan syndication and pricing reporting services, and (ii) use the name, logos,
and other insignia of Borrower and Horizon and the total Commitments provided hereunder in any “tombstone” or comparable
advertising, on its website or in other marketing materials of Agent; provided, however, that Agent must first provide Horizon
with an opportunity to review and approve any such use. Anything in this Agreement to the contrary notwithstanding, Borrower,
Horizon and Horizon Management may use the name, logos, and other insignia of Agent and members of the Lender Group, along with
the total Commitments provided hereunder, in any “tombstone” or comparable advertising, on its website or in other
marketing materials of Borrower, Horizon or Horizon Management; provided, however, that Borrower, Horizon or Horizon Management,
as the case may be, must first provide Agent and each member of the Lender Group with an opportunity to review and approve any
such use.

 

17.10     
Lender Group Expenses. Borrower agrees to pay the Lender Group Expenses on the earlier of (a) the first day of the month
following the date on which such Lender Group Expenses were first incurred or (b) the date on which demand therefor is made by
Agent. Borrower agrees that its obligations contained in this Section 17.10 shall survive payment or satisfaction in full of all
other Obligations.

 

17.11      Survival.
All representations and warranties made by Borrower or its Affiliates in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any loans,
regardless of any investigation made by any such other party or on its behalf and notwithstanding that Agent or any Lender may
have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit
is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any
loan or any fee or any other amount payable under this Agreement is outstanding and unpaid and so long as the Commitments have
not expired or terminated.

 

17.12     
Patriot Act. Each Lender that is subject to the requirements of the Patriot Act hereby notifies Borrower that pursuant
to the requirements of the Act, it is required to obtain, verify and record information that identifies Borrower, which information
includes the name and address of Borrower and other information that will allow such Lender to identify Borrower in accordance
with the Patriot Act. In addition, if Agent is required by law or regulation or internal policies to do so, it shall have the right
to periodically conduct (a) Patriot Act searches, OFAC/PEP searches, and customary individual background checks for Borrower and
its Affiliates and (b) OFAC/PEP searches and customary individual background checks for the senior management and key principals
of Borrower and its Affiliates, and Borrower agrees to cooperate in respect of the conduct of such searches and further agrees
that the reasonable costs and charges for such searches shall constitute Lender Expenses hereunder and be for the account of Borrower.

 

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17.13     
Integration. This Agreement, together with the other Loan Documents, reflects the entire understanding of the parties
with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or
written, before the date hereof. The foregoing to the contrary notwithstanding, all Bank Product Agreements, if any, are independent
agreements governed by the written provisions of such Bank Product Agreements, which will remain in full force and effect, unaffected
by any repayment, prepayments, acceleration, reduction, increase, or change in the terms of any credit extended hereunder, except
as otherwise expressly provided in such Bank Product Agreement.

 

[Remainder of page intentionally left blank;
signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed and delivered as of the date first above written.

 

	 	HORIZON CREDIT II LLC,
	 	a Delaware limited liability company, as Borrower
	 	 
	 	 
	 	By:
	 	Name:  Robert D. Pomeroy, Jr.
	 	Title:    Chief Executive Officer
	 	 
	 	KEY EQUIPMENT FINANCE INC.,
	 	as Agent and as a Lender
	 	 
	 	 
	 	By:
	 	Name:
	 	Title:

 

 

SIGNATURE PAGE TO

LOAN AND SECURITY AGREEMENT

     

     

    

 

Schedule A-1

 

Approved Third-Party Lenders

 

 

		1.	Comerica Bank

 

		2.	Silicon Valley Bank

 

		3.	Western Alliance Bank

 

		4.	Square 1 Bank and its affiliates

 

		5.	Fortress Investment Group LLC and its affiliates

 

		6.	Hercules Technology Growth Capital

 

		7.	MidCap Financial LLC

 

		8.	NXT Capital Venture Finance

 

		9.	Orix Venture Finance and its affiliates

 

		10.	Oxford Finance LLC

 

		11.	Western Technology Investment

 

		12.	City National Bank

 

		13.	Pearl Street Technology Finance LP and its Affiliates

 

     

     

    

 

Schedule A-2

 

Approved Third-Party Originators

 

		1.	Comerica Bank

 

		2.	Silicon Valley Bank

 

		3.	Western Alliance Bank

 

		4.	Square 1 Bank and its affiliates

 

		5.	Fortress Investment Group LLC and its affiliates

 

		6.	Hercules Technology Growth Capital

 

		7.	MidCap Financial LLC

 

		8.	NXT Capital Venture Finance

 

		9.	Orix Venture Finance and its affiliates

 

		10.	Oxford Finance LLC

 

		11.	Western Technology Investment

 

		12.	City National Bank

 

		13.	Horizon Technology Finance Management LLC

 

     

     

    

 

Schedule A-3

 

Approved Senior Revolving Lenders

 

 

	1.	Comerica Bank
	 	 
	2.	Silicon Valley Bank
	 	 
	3.	Western Alliance Bank
	 	 
	4.	Square 1 Bank and its affiliates
	 	 
	5.	City National Bank

 

     

     

    

 

Schedule C-1

Commitments

 

(as of Amendment No. 3Restatement
Effective Date)

 

	Lender	Commitment
	Key Equipment Finance Inc.	$75,000,000
	State Bank and Trust Company (successor by merger to AloStar Bank of Commerce)Hitachi Capital America Corp.	$20,000,000
	MUFG Union Bank, N.A.	$30,000,000
	 	 
	All Lenders	$125,000,000

 

     

     

    

 

Schedule P-1

 

Permitted Liens

 

 

None.

 

     

     

    

 

Schedule R-1

 

Required Asset Documents

 

For all Notes Receivable:

 

With respect to each Note Receivable that Borrower proposes
to be treated as an Eligible Note Receivable (except for those Notes Receivable in which Borrower has only a participation interest)
the documents set forth in Part A of Appendix I attached hereto, including:

 

1.       either (a) the
original promissory note evidencing such Note Receivable, duly executed by the applicable Account Debtor as maker and payable to
the order of the agent or the original lender who funded such Note Receivable, together with (i) originals of all assignments
or endorsements to make such Note Receivable now payable to the order of Borrower, and (ii) an allonge endorsing such Note
Receivable, executed by Borrower in blank, or (b) a certificate executed by an Authorized Person of the Borrower certifying
that there is no promissory note or other instrument evidencing such Note Receivable, and the identity of the initial lender or
agent, as applicable, together with an original assumption and assignment agreement transferring to Borrower all of the rights
and obligations with respect to such Note Receivable;

 

2.       the originals of
any warrants or instruments evidencing any other equity interests issued in connection with such Note Receivable, together with
(a) originals of all assignments or stock powers necessary to transfer all of such warrants or other equity interests to Borrower,
and (b) an original assignment or stock power with respect to each such warrant or other equity interest, executed by Borrower
in blank; provided, that if any such warrants or instruments need to be returned to the issuer to be registered and reissued in
the name of Borrower, then Borrower shall deliver (a) PDF copies of such warrants or instruments and the re-registration request
transmitted to the issuer, and (b) within forty-five (45) days after the transfer to Borrower of the related Note Receivable, the
original replacement warrants or instruments issued in the name of Borrower, together with an original assignment or stock power
with respect to each such warrant or other equity interest, executed by Borrower in blank; provided, further, that if the issuer
of such warrant or other equity interest refuses to register the transfer thereof to Borrower because such warrant or other equity
interest is subject at that time to a lock-up agreement that prohibits the transfer to Borrower of such warrant or other equity
interest, then Borrower shall promptly notify the Collateral Custodian and Agent of such fact in writing and shall deliver the
original replacement warrant or instrument issued in the name of Borrower, together with an original assignment or stock power
with respect to each such warrant or other equity interest, executed by Borrower in blank, within five (5) Business Days after
Borrower's receipt of the replacement warrant or instrument;

 

3.       with respect to
loans where Borrower is the sole lender or any agented lending transaction where Borrower is the sole lender, copies of (i) the
applicable loan agreement, (ii) the applicable security agreement and (iii) the applicable intercreditor agreement, if any, together
with originals or copies of the primary financing documents related thereto as identified by the Servicer;

 

     

     

    

 

4.       with respect to
any syndicated agented lending transaction where Borrower is not the agent, a copy of (i) the applicable loan agreement, (ii) the
applicable security agreement and (iii) the applicable intercreditor agreement if any and any other underlying loan documents (if
any) received by Borrower or the Servicer; and

 

5.       copies of file-stamped
UCC financing statement(s) naming the applicable Account Debtor as the debtor, and the agent or the original lender who funded
such Note Receivable as secured party, and unless the agent or original lender is continuing to act as the collateral agent for
Borrower, file-stamped copy(ies) of (a) UCC amendment(s) evidencing the ultimate assignment of the secured party’s interest
under such UCC financing statement(s) to Borrower, or (b) UCC financing statements naming Borrower as a secured party.

 

 

 

For those Notes Receivable in which Borrower has only a participation
interest:

 

With respect to each Note Receivable in which Borrower has only
a participation interest, the documents set forth in Part B of Appendix I attached hereto, including:

 

6.       an original or copy
of the participation agreement between Borrower and the lead lender, together with a copies of all underlying loan documents required
to be obtained or reviewed with respect to such participation in accordance with the Required Procedures

 

     

     

    

 

Appendix I

To

Schedule R-1

 

 

Horizon
credit II LLC

Required
Asset document Checklist

 

Horizon
credit II LLC

Required
Asset Document Checklist

 

 

	Account Debtor Name: 	 	File #:
	 	 	 
	 	 	 
	Original Closing Date: 	 	of File Submission:

 

 

	       A.     Direct Loan  	Delivered  (Check Applicable Box)
	Yes	No	Not Applicable
	1.       Note, together with (i) assignment or endorsement to make payable to the order of borrower and (ii) allonge endorsing such note in blank (or certificate of an authorized person of borrower certifying that there is no note, together with assumption and assignment agreement transferring to borrower)	 	 	 
	2.       Loan and Security Agreement (please caption underlying agreement)	 	 	 
	3.       Warrant, together with any requisite assignment 	 	 	 
	4.       UCC Financing Statement, including UCC-3 showing Borrower as additional secured party  (Identify Jurisdiction(s) of Filing(s) here: ________________________________)	 	 	 
	5.       Intercreditor Agreement (please caption underlying agreement) , if applicable	 	 	 
	6.       Other Primary Financing Documents, if Any (Please Caption Each Primary Financing Document provided, including any other Collateral or credit Enhancement documents, if any)	 	 	 

 

     

     

    

 

	        B.      Participation in Loan  	Delivered  (Check Applicable Box)
	Yes	No	Not Applicable
	1.       Participation Agreement 	 	 	 
	2.       Participation Certificate	 	 	 
	3.       Warrant/Copy of Warrant	 	 	 
	4.        Copy of Note 	 	 	 
	5.       Copy of Loan and Security Agreement	 	 	 
	6.       Copy of Lead Lender’s UCC-1 Financing Statement	 	 	 
	7.       Copy of Intercreditor Agreement, if applicable	 	 	 
	8.       Other Underlying Loan Documents, if any (Please Caption Each Underlying Loan Document provided, including any other Collateral or credit Enhancement documents, if any)	 	 	 

 

 

 

 

	 	Servicer Signoff:  	 
	 	 	Authorized Person

 

     

     

    

 

Schedule 2.6(a)

 

Cash Management Banks

 

 

For a period not to exceed 90 days from
the Restatement Effective Date, Wells Fargo, N.A.

 

At all times from and after the Restatement
Effective Date, Key Bank National Association

 

     

     

    

 

Schedule 5.4

 

Locations of Collateral

 

312 Farmington Avenue

Farmington, CT 06032

 

     

     

    

 

Schedule 5.6(a)

 

Jurisdictions of Organization

 

 

	Entity	Jurisdiction of Organization
	
        Horizon Credit II LLC

         
	Delaware
	
        Horizon Technology Finance Corporation

         
	Delaware
	
        Horizon Technology Finance Management LLC

         
	Delaware
	Compass Horizon Funding Company LLC (wholly owned subsidiary of Horizon Technology Finance Corporation)	Delaware
	Horizon Credit I LLC (wholly owned subsidiary of Compass Horizon Funding Company LLC)	Delaware
	Longview SBIC GP LLC (wholly owned subsidiary of Horizon Technology Finance Corporation)	Delaware
	Longview SBIC LP (Horizon Technology Finance Corporation is the LP and Longview GP is the GP)	Delaware
	Horizon Credit III LLC (wholly owned subsidiary of Horizon Technology Finance Corporation)	Delaware
	Horizon Funding 2013-1 LLC (wholly owned subsidiary of Horizon Technology Finance Corporation)	Delaware
	Horizon Funding Trust 2013-1	Delaware Trust

 

     

     

    

 

Schedule 5.6(b)

 

Chief Executive Offices

 

 

	Name of Entity	Chief Executive Office
	
        Horizon Credit II LLC

         
	
        312 Farmington Avenue

        Farmington, CT 06032

	
        Horizon Technology Finance Corporation

         
	
        312 Farmington Avenue

        Farmington, CT 06032

	
        Horizon Technology Finance Management LLC 
	
        312 Farmington Avenue

        Farmington, CT 06032

	Compass Horizon Funding Company LLC 	
        312 Farmington Avenue

        Farmington, CT 06032

	Horizon Credit I LLC 	
        312 Farmington Avenue

        Farmington, CT 06032

	Longview SBIC GP LLC 	
        312 Farmington Avenue

        Farmington, CT 06032

	Longview SBIC LP 	
        312 Farmington Avenue

        Farmington, CT 06032

	
        Horizon Credit III LLC

         
	
        312 Farmington Avenue

        Farmington, CT 06032

	Horizon Funding 2013-1 LLC	
        312 Farmington Avenue

        Farmington, CT 06032

	Horizon Funding Trust 2013-1	
        312 Farmington Avenue

        Farmington, CT 06032

 

     

     

    

 

Schedule 5.6(c)

 

Organizational Identification Numbers

 

 

	Name of Entity	Organizational Identification Number	Federal Employer Identification number
	
        Horizon Credit II LLC

         
	
        5003371

         
	45-2635168
	
        Horizon Technology Finance Corporation 
	4793922	27-2114934
	
        Horizon Technology Finance Management LLC 
	4493269	26-2066279
	Compass Horizon Funding Company LLC 	4493270	26-1971727
	Horizon Credit I LLC 	4493271	26-1971831
	Longview SBIC GP LLC 	4939368	27-4974088
	Longview SBIC LP 	4939375	27-4974842
	Horizon Credit III LLC	5159711	61-1685238
	Horizon Funding 2013-1 LLC	5347548	38-3910608

 

     

     

    

 

Schedule 5.6(d)

 

Commercial Tort Claims

 

None.

 

     

     

    

 

Schedule 5.7(b)

 

Capitalization of Borrower and Horizon

 

 

Horizon Credit II LLC is a wholly owned subsidiary of Horizon
Technology Finance Corporation having one class of membership interests, which grants the holder thereof the right to manage the
day to day operation of the entity.

 

Horizon Technology Finance Corporation (“HRZN”)
is a publicly traded company whose stock trades on the NASDAQ Global Market under the symbol “HRZN”. HRZN has two (2)
classes of authorized shares – common and preferred. The common shares are entitled to one vote per share for all matters
submitted to a vote of its stockholders. The common shares are also entitled to proportionately receive dividends payable either
in cash, property or shares, if and when declared by HRZN’s board of directors. There are no preferred shares of HRZN issued
and outstanding as of the date hereof.

 

     

     

    

 

Schedule 5.7(c)

 

Capitalization of Horizon’s Subsidiaries

 

 

	
         

         

        Horizon’s Subsidiaries

         
	
         

         

        Jurisdiction of Organization

         
	
         

        Number of Shares of Common and Preferred
        Stock Authorized

         
	Number
and Percentage of Outstanding Shares Owned Directly and Indirectly by HRZN 

	Horizon Credit II LLC	Delaware	N/A	100% of all membership interests
	Horizon Credit I LLC	Delaware	N/A	100% of all membership interests
	Compass Horizon Funding Company LLC	Delaware	N/A	100% of all membership interests
	Longview SBIC LP	Delaware	N/A	100% of all partnership interests
	Longview SBIC GP LLC 	Delaware	N/A	100% of all membership interests
	Horizon Credit III LLC	Delaware	N/A	100% of all membership interests
	Horizon Funding 2013-1 LLC	Delaware	N/A	100% of all membership interests

 

     

     

    

 

Schedule 5.9

 

Litigation

 

 

None.

 

     

     

    

 

Schedule 5.13

 

Environmental Matters

 

 

None.

 

     

     

    

 

Schedule 5.15

 

Intellectual Property

 

 

None.

 

     

     

    

 

Schedule 5.17

 

Deposit Accounts and Securities Accounts

 

 

		1.	For a period of time not to exceed 90 days from the Restatement Effective Date, each of the following Deposit Accounts, and
thereafter, each Deposit Account approved by the Agent in its reasonable discretion:

 

		a.	Horizon Credit II Depository Account – Account Number 4122183346

(the “Collection Account”)

 

		b.	Horizon Credit II LLC Master Operating Account – Account Number 4122183338

(the “Designated Account”)

 

		c.	Horizon Credit II LLC Wire Disbursements – Account Number 412218336

 

		d.	Horizon Credit II – Account Number 4122183353

 

		2.	Each of the following Securities Accounts, and each Securities Account hereafter approved by the Agent in its reasonable discretion:

 

		a.	Securities Account at Morgan Stanley, Account Number B2-13750

 

 

     

     

    

 

Schedule 5.19

 

Permitted Indebtedness

 

 

None.

 

     

     

    

 

Schedule 5.22

 

Licenses, Franchises, Consents and Approvals

 

 

Finance Lender License issued to Horizon Technology Finance
Management LLC (listing its California location) on March 24, 2009 by the State of California Department of Corporations having
File Number 605 4153.

 

Finance Lender License issued to Horizon Technology Finance
Management LLC (listing its Connecticut location) on January 27, 2009 by the State of California Department of Corporations having
File Number 603 H050. 

Finance Lender License issued to Horizon Technology Finance
LLC (listing its California location), on October 28, 2005 by the State of California Department of Corporations having File Number
605 3186.

 

Finance Lender License issued to Horizon Technology Finance
LLC (listing its Connecticut location), on October 28, 2005 by the State of California Department of Corporations having File Number
603 B074.Exhibit
4.01

 

EXHIBIT
A

 

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND
THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

 

Original
Issue Date: June __, 2020

Original
Conversion Price (subject to adjustment herein): $2.69

 

$_______________

 

 

ORIGINAL
ISSUE DISCOUNT SENIOR SECURED CONVERTIBLE DEBENTURE

DUE
June __, 2023

 

THIS
ORIGINAL ISSUE DISCOUNT SENIOR SECURED CONVERTIBLE DEBENTURE is one of a series of duly authorized and validly issued Original
Issue Discount Senior Secured Convertible Debentures of SRAX, Inc., a Delaware corporation (the “Company”),
having its principal place of business at 456 Seaton Street, Los Angeles, CA 90013, designated as its Original Issue Discount
Senior Secured Convertible Debenture due June ___, 2023 (this debenture, the “Debenture” and, collectively
with the other debentures of such series, the “Debentures”).

 

FOR
VALUE RECEIVED, the Company promises to pay to ________________________ or its registered assigns (the “Holder”),
or shall have paid pursuant to the terms hereunder, the principal sum of $_______________, subject to upward adjustment pursuant
to Section 6(b), on June __, 2023 (the “Maturity Date”) or such earlier date as this Debenture is required
or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate unconverted and then outstanding
principal amount of this Debenture in accordance with the provisions hereof. This Debenture is subject to the following additional
provisions:

 

Section
1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Debenture, (a) capitalized
terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall
have the following meanings:

 

    	1

     

    

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(e).

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in
Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the
Company or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof
any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary
thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered,
(d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial
part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant
Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof
calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts, (g) the Company
or any Significant Subsidiary thereof admits in writing that it is generally unable to pay its debts as they become due, (h) the
Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or
acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

 

“Base
Conversion Price” shall have the meaning set forth in Section 5(b).

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(d).

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed
to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential
employee” or any other similar orders or restrictions or the closure of any physical branch locations at the direction of
any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks
in The City of New York are generally are open for use by customers on such day.

 

“Buy-In”
shall have the meaning set forth in Section 4(c)(v).

 

    	2

     

    

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act)
of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise)
of in excess of 51% of the voting securities of the Company (other than by means of conversion or exercise of the Debentures and
the Securities issued together with the Debentures), (b) the Company merges into or consolidates with any other Person, or any
Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company
immediately prior to such transaction own less than 60% of the aggregate voting power of the Company or the successor entity of
such transaction, (c) the Company and any of its Significant Subsidiaries sells or transfers all or substantially all of its assets,
but excluding the Exempt Assets provided that the sale of such Exempt Assets is made in compliance with the conditions set forth
in the Purchase Agreement, to another Person and the stockholders of the Company immediately prior to such transaction own less
than 50% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time
or within a three year period of more than one-half of the members of the Board of Directors which is not approved by a majority
of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving
as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the
members of the Board of Directors who are members on the date hereof), or (e) the execution by the Company of an agreement to
which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

“Conversion
Date” shall have the meaning set forth in Section 4(a).

 

“Conversion
Price” shall have the meaning set forth in Section 4(b).

 

“Conversion
Schedule” means the Conversion Schedule in the form of Schedule 1 attached hereto.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Debenture in accordance with
the terms hereof.

 

“Debenture
Register” shall have the meaning set forth in Section 2(c).

 

“Dilutive
Issuance” shall have the meaning set forth in Section 5(b).

 

“Dilutive
Issuance Notice” shall have the meaning set forth in Section 5(b).

 

“Effectiveness
Period” shall have the meaning set forth in the Registration Rights Agreement.

 

    	3

     

    

 

“Equity
Conditions” means, during the period in question, (a) the Company shall have duly honored all conversions and redemptions
scheduled to occur or occurring by virtue of one or more Notices of Conversion of the Holder, if any, (b) the Company shall have
paid all liquidated damages and other amounts owing to the Holder in respect of this Debenture, (c)(i) there is an effective Registration
Statement pursuant to which the Holder is permitted to utilize the prospectus thereunder to resell all of the shares of Common
Stock issuable pursuant to the Transaction Documents (and the Company believes, in good faith, that such effectiveness will continue
uninterrupted for the foreseeable future) or (ii) all of the Conversion Shares issuable pursuant to the Transaction Documents
(and shares issuable in lieu of cash payments of interest) may be resold pursuant to Rule 144 without volume or manner-of-sale
restrictions or current public information requirements as determined by the counsel to the Company as set forth in a written
opinion letter to such effect, addressed and acceptable to the Transfer Agent and the Holder, (d) the Common Stock is trading
on a Trading Market and all of the shares issuable pursuant to the Transaction Documents are listed or quoted for trading on such
Trading Market (and the Company believes, in good faith, that trading of the Common Stock on a Trading Market will continue uninterrupted
for the foreseeable future), (e) there is a sufficient number of authorized but unissued and otherwise unreserved shares of Common
Stock for the issuance of all of the shares then issuable pursuant to the Transaction Documents, (f) there is no existing Event
of Default and no existing event which, with the passage of time or the giving of notice, would constitute an Event of Default,
(g) the issuance of the shares in question (or, in the case of an Optional Redemption or Monthly Redemption, the shares issuable
upon conversion in full of the Optional Redemption Amount or Monthly Redemption Amount) to the Holder would not violate the limitations
set forth in Section 4(d) and Section 4(e) herein, (h) there has been no public announcement of a pending or proposed Fundamental
Transaction or Change of Control Transaction that has not been consummated, (i) the applicable Holder is not in possession of
any information provided by the Company, any of its Subsidiaries, or any of their officers, directors, employees, agents or Affiliates,
that constitutes, or may constitute, material non-public information and (j) the aggregate trading volume for the Common Stock
on the principal Trading Market during the 10 Trading Days immediately prior to the applicable date in question exceeds $125,000.

 

“Event
of Default” shall have the meaning set forth in Section 8(a).

 

“Exempt
Assets” shall have the meaning set forth in the Purchase Agreement.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(e).

 

“Issuable
Maximum” shall have the meaning set forth in Section 4(e).

 

“Late
Fees” shall have the meaning set forth in Section 2(d).

 

“Mandatory
Default Amount” means the sum of (a) the greater of (i) the outstanding principal amount of this Debenture, plus all
accrued and unpaid interest hereon, divided by the Conversion Price on the date the Mandatory Default Amount is either (A) demanded
(if demand or notice is required to create an Event of Default) or otherwise due or (B) paid in full, whichever has a lower Conversion
Price, multiplied by the VWAP on the date the Mandatory Default Amount is either (x) demanded or otherwise due or (y) paid in
full, whichever has a higher VWAP, or (ii) 130% of the outstanding principal amount of this Debenture, plus 100% of accrued and
unpaid interest hereon, and (b) all other amounts, costs, expenses and liquidated damages due in respect of this Debenture.

 

    	4

     

    

 

“Monthly
Redemption” means the redemption of this Debenture pursuant to Section 6(b) hereof.

 

“Monthly
Redemption Amount” means, as to a Monthly Redemption, 115% of $______1, plus accrued but unpaid interest,
liquidated damages and any other amounts then owing to the Holder in respect of this Debenture, which amount shall be ratably
adjusted upward in the event of any increase in the principal amount of this Debenture hereunder.

 

“Monthly
Redemption Date” means the last Business Day of each month, commencing on December 31, 2020 and terminating upon the
full redemption of this Debenture; provided, however, at the sole election of the Holder by providing the Company
written notice at least ten (10) business days prior to the commencement of Monthly Redemptions, the commencement of the Monthly
Redemption Dates may be extended, as applicable and in chronological order, to (i) June 30, 2021; (ii) December 31, 2021 and June
30, 2022; provided, further, that upon each extension, the then outstanding principal amount of the Debentures subject
to such extension will be increased by 5% (ie. 15% increase in the aggregate if the Monthly Redemptions are commenced on June
30, 2022) and a proportional increase of the Monthly Redemptions Amounts shall be made thereafter.

 

“New
York Courts” shall have the meaning set forth in Section 9(d).

 

“Notice
of Conversion” shall have the meaning set forth in Section 4(a).

 

“Optional
Redemption” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Amount” means the sum of (a) 115% of the then outstanding principal amount of the Debenture, (b) accrued
but unpaid interest and (c) all liquidated damages and other amounts due in respect of the Debenture.

 

“Optional
Redemption Date” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Notice” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Notice Date” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Period” shall have the meaning set forth in Section 6(a).

 

 

1
        1/12th of the original Subscription Amount

 

    	5

     

    

 

“Original
Issue Date” means the date of the first issuance of the Debentures, regardless of any transfers of any Debenture and
regardless of the number of instruments which may be issued to evidence such Debentures.

 

“Permitted
Indebtedness” means (a) the indebtedness evidenced by the Debentures, (b) the Indebtedness existing on the Original
Issue Date, (c) lease obligations and purchase money indebtedness of up to $100,000, in the aggregate, incurred in connection
with the acquisition of capital assets and lease obligations with respect to newly acquired or leased assets, (d) indebtedness
that (i) is expressly subordinate to the Debentures pursuant to a written subordination agreement with the Holders that is acceptable
to each Holder in its sole and absolute discretion and (ii) matures at a date later than the 91st day following the
Maturity Date, (e) indebtedness incurred pursuant to a customary accounts receivable factoring line by the Company pursuant to
which the lender is primarily in the business of providing such facilities to borrowers provided that such indebtedness is expressly
subordinate to the Debentures pursuant to a written subordination or intercreditor agreement with the Holders of the Debentures
that is acceptable to at least 51% in interest of such Holders and (f) indebtedness incurred pursuant to a margin account secured
by securities received by the Company’s investor relations business line as payment for goods and services provided thereunder.

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company)
have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Company’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
(c) Liens incurred in connection with Permitted Indebtedness under clauses (a), (b) and (d) thereunder, (d) Liens incurred in
connection with Permitted Indebtedness under clause (c) thereunder, provided that such Liens are not secured by assets of the
Company or its Subsidiaries other than the assets so acquired or leased and (e) Liens incurred in connection with Permitted Indebtedness
under clause (e) thereunder, provided that such Liens are limited solely to accounts receivables of the Company and (f) Liens
incurred in connection with Permitted Indebtedness under clause (f) thereunder, provided that such Liens are limited solely to
the securities received by the Company’s investor relations business line as payment for good and services provided thereunder.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of June __, 2020 among the Company and the original Holders,
as amended, modified or supplemented from time to time in accordance with its terms.

 

    	6

     

    

 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated as of the date of the Purchase Agreement, among the
Company and the original Holders, in the form of Exhibit B attached to the Purchase Agreement.

 

“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and
covering the resale of the Underlying Shares by each Holder as provided for in the Registration Rights Agreement.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(c)(ii).

 

“Significant
Subsidiary” means any subsidiary meeting the definition ascribed to it in rule in Rule 1-02(w) of Regulation S-X, including
but not limited to, any subsidiary created or resulting from the transfer or sale of the Exempt Asset.

 

“Standard
Settlement Period” means the standard settlement period, express in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in effect on the date of delivery of any notice requiring the Company
to deliver shares pursuant to this Debenture.

 

“Successor
Entity” shall have the meaning set forth in Section 5(e).

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange (or any successors to any of the foregoing).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in
interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be
paid by the Company.

 

    	7

     

    

 

Section
2. Interest.

 

a)
Payment of Interest in Cash. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding
principal amount of this Debenture at the rate of 12% per annum commencing on June 30, 2021, payable quarterly on January 1, April
1, July 1 and October 1, beginning on October 1, 2021, on each Monthly Redemption Date (as to that principal amount then being
redeemed), on each Conversion Date (as to that principal amount then being converted), on each Optional Redemption Date (as to
that principal amount then being redeemed) and on the Maturity Date (each such date, an “Interest Payment Date”)
(if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding Business
Day), in cash.

 

b)
Interest Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day
periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together
with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Interest
hereunder will be paid to the Person in whose name this Debenture is registered on the records of the Company regarding registration
and transfers of this Debenture (the “Debenture Register”).

 

c)
Late Fee. All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate equal
to the lesser of 18% per annum or the maximum rate permitted by applicable law (the “Late Fees”) which shall
accrue daily from the date such interest is due hereunder through and including the date of actual payment in full.

 

d)
Prepayment. Except as otherwise set forth in this Debenture, the Company may not prepay any portion of the principal amount
of this Debenture without the prior written consent of the Holder.

 

Section
3. Registration of Transfers and Exchanges.

 

a)
Different Denominations. This Debenture is exchangeable for an equal aggregate principal amount of Debentures of different
authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration
of transfer or exchange.

 

b)
Investment Representations. This Debenture has been issued subject to certain investment representations of the original
Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement
and applicable federal and state securities laws and regulations.

 

    	8

     

    

 

c)
Reliance on Debenture Register. Prior to due presentment for transfer to the Company of this Debenture, the Company and
any agent of the Company may treat the Person in whose name this Debenture is duly registered on the Debenture Register as the
owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Debenture
is overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

 

Section
4. Conversion.

 

a)
Voluntary Conversion. At any time after the Original Issue Date until this Debenture is no longer outstanding, this Debenture
shall be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time
to time (subject to the conversion limitations set forth in Section 4(d) and Section 4(e) hereof). The Holder shall effect conversions
by delivering to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice
of Conversion”), specifying therein the principal amount of this Debenture to be converted and the date on which such
conversion shall be effected (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice
of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original
Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any
Notice of Conversion form be required. To effect conversions hereunder, the Holder shall not be required to physically surrender
this Debenture to the Company unless the entire principal amount of this Debenture, plus all accrued and unpaid interest thereon,
has been so converted in which case the Holder shall surrender this Debenture as promptly as is reasonably practicable after such
conversion without delaying the Company’s obligation to deliver the shares on the Share Delivery Date. Conversions hereunder
shall have the effect of lowering the outstanding principal amount of this Debenture in an amount equal to the applicable conversion.
The Holder and the Company shall maintain records showing the principal amount(s) converted and the date of such conversion(s).
The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion.
In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of
manifest error. The Holder, and any assignee by acceptance of this Debenture, acknowledge and agree that, by reason of the
provisions of this paragraph, following conversion of a portion of this Debenture, the unpaid and unconverted principal amount
of this Debenture may be less than the amount stated on the face hereof.

 

b)
Conversion Price. The conversion price in effect on any Conversion Date shall be equal to $2.69, subject to adjustment
herein (the “Conversion Price”).

 

    	9

     

    

 

c)
Mechanics of Conversion.

 

i.
Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion
hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Debenture to be
converted by (y) the Conversion Price.

 

ii.
Delivery of Conversion Shares Upon Conversion. Not later than (2) Trading Days after each Conversion Date (the “Share
Delivery Date”), the Company shall deliver, or cause to be delivered, to the Holder (A) the Conversion Shares which,
on or after the earlier of (i) the six month anniversary of the Original Issue Date or (ii) the Effective Date, shall be free
of restrictive legends and trading restrictions (other than those which may then be required by the Purchase Agreement) representing
the number of Conversion Shares being acquired upon the conversion of this Debenture and (B) if applicable, a bank check in the
amount of accrued and unpaid interest (if the Company has elected or is required to pay accrued interest in cash). On or after
the earlier of (i) the six month anniversary of the Original Issue Date or (ii) the Effective Date, the Company shall deliver
any Conversion Shares required to be delivered by the Company under this Section 4(c) electronically through the Depository Trust
Company or another established clearing corporation performing similar functions.

 

iii.
Failure to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered
to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice
to the Company at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the
Company shall promptly return to the Holder any original Debenture delivered to the Company and the Holder shall promptly return
to the Company the Conversion Shares issued to such Holder pursuant to the rescinded Conversion Notice.

 

    	10

     

    

 

iv.
Obligation Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares
upon conversion of this Debenture in accordance with the terms hereof are absolute and unconditional, irrespective of any action
or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any
judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged
violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such
obligation of the Company to the Holder in connection with the issuance of such Conversion Shares; provided, however,
that such delivery shall not operate as a waiver by the Company of any such action the Company may have against the Holder. In
the event the Holder of this Debenture shall elect to convert any or all of the outstanding principal amount hereof, the Company
may not refuse conversion based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged
in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining
and or enjoining conversion of all or part of this Debenture shall have been sought and obtained, and the Company posts a surety
bond for the benefit of the Holder in the amount of 150% of the outstanding principal amount of this Debenture, which is subject
to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute
and the proceeds of which shall be payable to the Holder to the extent it obtains judgment. In the absence of such injunction,
the Company shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. If the Company fails for
any reason to deliver to the Holder such Conversion Shares pursuant to Section 4(c)(ii) by the Share Delivery Date, the Company
shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of principal amount being converted,
$10 per Trading Day (increasing to $20 per Trading Day on the fifth (5th) Trading Day after such liquidated damages
begin to accrue) for each Trading Day after such Share Delivery Date until such Conversion Shares are delivered or Holder rescinds
such conversion. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant
to Section 8 hereof for the Company’s failure to deliver Conversion Shares within the period specified herein and the Holder
shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree
of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking to
enforce damages pursuant to any other Section hereof or under applicable law.

 

v.
Compensation for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion. In addition to any other rights
available to the Holder, if the Company fails for any reason to deliver to the Holder such Conversion Shares by the Share Delivery
Date pursuant to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase
(in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock
to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the
conversion relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the
Holder (in addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s
total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the
aggregate number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by
(2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage
commissions) and (B) at the option of the Holder, either reissue (if surrendered) this Debenture in a principal amount equal to
the principal amount of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder
the number of shares of Common Stock that would have been issued if the Company had timely complied with its delivery requirements
under Section 4(c)(ii). For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted conversion of this Debenture with respect to which the actual sale price of the Conversion
Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of
the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence
of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver Conversion Shares upon conversion of this Debenture as required pursuant to the terms
hereof.

 

    	11

     

    

vi.
Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available
out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Debenture and
payment of interest on this Debenture, each as herein provided, free from preemptive rights or any other actual contingent purchase
rights of Persons other than the Holder (and the other holders of the Debentures), not less than such aggregate number of shares
of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into
account the adjustments and restrictions of Section 5) upon the conversion of the then outstanding principal amount of this Debenture
and payment of interest hereunder. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon
issue, be duly authorized, validly issued, fully paid and nonassessable and, if the Registration Statement is then effective under
the Securities Act, shall be registered for public resale in accordance with such Registration Statement (subject to such Holder’s
compliance with its obligations under the Registration Rights Agreement).

 

vii.
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of
this Debenture. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the
Company shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Conversion Price or round up to the next whole share.

 

viii.
Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of this Debenture shall be made without charge
to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such
Conversion Shares, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holder of
this Debenture so converted and the Company shall not be required to issue or deliver such Conversion Shares unless or until the
Person or Persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established
to the satisfaction of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day
processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic delivery of the Conversion Shares.

 

    	12

     

    

 

d)
Holder’s Conversion Limitations. The Company shall not effect any conversion of this Debenture, and a Holder shall
not have the right to convert any portion of this Debenture, to the extent that after giving effect to the conversion set forth
on the applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any other Persons acting
as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”))
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include
the number of shares of Common Stock issuable upon conversion of this Debenture with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted
principal amount of this Debenture beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise
or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion
or exercise analogous to the limitation contained herein (including, without limitation, any other Debentures or the Warrants)
beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence,
for purposes of this Section 4(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 4(d) applies,
the determination of whether this Debenture is convertible (in relation to other securities owned by the Holder together with
any Affiliates and Attribution Parties) and of which principal amount of this Debenture is convertible shall be in the sole discretion
of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of whether
this Debenture may be converted (in relation to other securities owned by the Holder together with any Affiliates or Attribution
Parties) and which principal amount of this Debenture is convertible, in each case subject to the Beneficial Ownership Limitation.
To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice
of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall
have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status
as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the Holder may
rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s
most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by
the Company, or (iii) a more recent written notice by the Company or the Company’s transfer agent setting forth the number
of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one Trading Day
confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the
Company, including this Debenture, by the Holder or its Affiliates since the date as of which such number of outstanding shares
of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion
of this Debenture held by the Holder. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 4(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon
conversion of this Debenture held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(d) shall
continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after
such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this Section 4(d) to correct this paragraph (or
any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained
in this paragraph shall apply to a successor holder of this Debenture.

 

    	13

     

    

 

e)
[RESERVED]

 

Section
5. Certain Adjustments.

 

a)
Stock Dividends and Stock Splits. If the Company, at any time while this Debenture is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock
Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion
of, or payment of interest on, the Debentures), (ii) subdivides outstanding shares of Common Stock into a larger number of shares,
(iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares
or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company,
then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
(excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or
distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)
[RESERVED].

 

c)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Debenture
(without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately
before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, that, to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)
Pro Rata Distributions. During such time as this Debenture is outstanding, if the Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Debenture, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete conversion of this Debenture (without regard to any limitations
on conversion hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which
a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of
Common Stock are to be determined for the participation in such Distribution (provided, however, that, to the extent
that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership
of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held
in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

    	14

     

    

 

e)
Fundamental Transaction. If, at any time while this Debenture is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company
(and all of its Subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer,
conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any,
direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or
affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each
a “Fundamental Transaction”), then, upon any subsequent conversion of this Debenture, the Holder shall have
the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence
of such Fundamental Transaction (without regard to any limitation in Section 4(d) and Section 4(e) on the conversion of this Debenture),
the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental
Transaction by a holder of the number of shares of Common Stock for which this Debenture is convertible immediately prior to such
Fundamental Transaction (without regard to any limitation in Section 4(d) and Section 4(e) on the conversion of this Debenture).
For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in
such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are
given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any conversion of this Debenture following such Fundamental
Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor
(the “Successor Entity”) to assume in writing all of the obligations of the Company under this Debenture and
the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the provisions of this Section 5(e)
pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Debenture, deliver to
the Holder in exchange for this Debenture a security of the Successor Entity evidenced by a written instrument substantially similar
in form and substance to this Debenture which is convertible for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Debenture
(without regard to any limitations on the conversion of this Debenture) prior to such Fundamental Transaction, and with a conversion
price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value
of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number
of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Debenture
immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance
to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Debenture and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Debenture and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

 

    	15

     

    

 

f)
Calculations. All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued
and outstanding.

 

g)
Notice to the Holder.

 

i.
Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5,
the Company shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment.

 

ii.
Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for
or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company(and
all of its Subsidiaries, taken as a whole) is a party, any sale or transfer of all or substantially all of the assets of the Company,
or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Company
shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each
case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of this Debenture,
and shall cause to be delivered to the Holder at its last address as it shall appear upon the Debenture Register, at least twenty
(20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which
a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not
to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer
or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common
Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such
notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K. The Holder shall remain entitled to convert this Debenture during the 20-day period commencing on the date
of such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

    	16

     

    

 

Section
6. Redemption.

 

a)
Optional Redemption at Election of Company. Subject to the provisions of this Section 6(a), at any time after the Effective
Date, the Company may deliver a notice to the Holder (an “Optional Redemption Notice” and the date such notice
is deemed delivered hereunder, the “Optional Redemption Notice Date”) of its irrevocable election to redeem
some or all of the then outstanding principal amount of this Debenture for cash in an amount equal to the Optional Redemption
Amount on the 10th Trading Day following the Optional Redemption Notice Date (such date, the “Optional Redemption
Date”, such 10 Trading Day period, the “Optional Redemption Period” and such redemption, the “Optional
Redemption”). The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Company may only
effect an Optional Redemption if each of the Equity Conditions shall have been met (unless waived in writing by the Holder) on
each Trading Day during the period commencing on the Optional Redemption Notice Date through to the Optional Redemption Date and
through and including the date payment of the Optional Redemption Amount is actually made in full. If any of the Equity Conditions
shall cease to be satisfied at any time during the Optional Redemption Period, then the Holder may elect to nullify the Optional
Redemption Notice by notice to the Company within 3 Trading Days after the first day on which any such Equity Condition has not
been met (provided that if, by a provision of the Transaction Documents, the Company is obligated to notify the Holder of the
non-existence of an Equity Condition, such notice period shall be extended to the third Trading Day after proper notice from the
Company) in which case the Optional Redemption Notice shall be null and void, ab initio. The Company covenants and agrees
that it will honor all Notices of Conversion tendered from the time of delivery of the Optional Redemption Notice through the
date all amounts owing thereon are due and paid in full. The Company’s determination to pay an Optional Redemption in cash
shall be applied ratably to all of the holders of the then outstanding Debentures based on their (or their predecessor’s)
initial purchases of Debentures pursuant to the Purchase Agreement.

 

b)
Monthly Redemption. On each Monthly Redemption Date, the Company shall redeem the Monthly Redemption Amount (the “Monthly
Redemption”). The Monthly Redemption Amount payable on each Monthly Redemption Date shall be paid in cash. Any principal
amount of this Debenture converted during the 30 day period immediately prior to the applicable Monthly Redemption Date (“Monthly
Redemption Period”) shall be first applied to the principal amount subject to the Monthly Redemption Amount paid on
such Monthly Redemption Date. Any principal amount of this Debenture converted during the applicable Monthly Redemption
Period in excess of the Monthly Redemption Amount shall be applied against the last principal amount of this Debenture scheduled
to be redeemed hereunder, in reverse time order from the Maturity Date unless otherwise indicated by the Holder. In the event
that the Equity Conditions are not met during a Monthly Redemption Period, the Holder shall have the right, at its option and
in lieu of the cash Monthly Redemption payment as to such Monthly Redemption, to either (i) extend the Monthly Redemption and
Maturity Date by one month (for each such deferral) or (ii) proportionally increase the Monthly Redemption Amount for all remaining
Monthly Redemptions through Maturity. The Company covenants and agrees that it will honor all Notices of Conversion tendered up
until such amounts are paid in full. Notwithstanding anything herein to the contrary, as to any Monthly Redemption, if each of
the VWAPs during the 30 days immediately prior to such Monthly Redemption equals or exceeds $3.50, subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the Original Issue Date, and during such period the Equity Conditions are then met, the Company, by written notice to the Holder,
may defer such Monthly Redemption (to the extent not converted by the Holder prior thereto) to the end of the Monthly Redemption
Schedule and the Maturity Date shall be extended by one month.

 

    	17

     

    

 

c)
Mandatory Redemption. If the Company or any Subsidiary thereof, as applicable, at any time while this Debenture is outstanding,
shall (i) sell, enter into an agreement to sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise
dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common
Stock Equivalents (“Mandatory Redemption Financing”) or (ii) the Company (and all of its Subsidiaries, taken
as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of
any of its assets for cash or cash equivalents (other than inventory in the ordinary course of its business, the sale or transfer
of the Exempt Assets as provided for pursuant to the Purchase Agreement or the sale of securities received for goods and services
provided by the Company’s investor relations line of business provided the proceeds thereof are used in furtherance of such
line of business) in one or a series of related transactions (“Asset Sale”), then the Holder shall have the
right (“Mandatory Redemption Right”) to cause the Company to redeem the principal and interest, if any, on
this Debenture, out of the proceeds of each Mandatory Redemption Financing at a redemption price equal to 115% of all principal
and the amount of accrued but unpaid interest on this Debenture. Such payment shall be made at each closing of such Mandatory
Redemption Financing (each such date, a “Mandatory Redemption Date”). At least 2 Trading Days prior to the
Mandatory Redemption Date the Company shall notify the Holder of the Mandatory Redemption Financing and the applicable Mandatory
Redemption Date. On or before 11 p.m. ET on the day immediately prior to the Mandatory Redemption Date, the Holder shall notify
the Company of whether it elects to exercise the Mandatory Redemption Right as to such Mandatory Redemption Financing and the
amount that it elects to have redeemed (the “Mandatory Redemption Amount”). As to any Mandatory Redemption
Financing, the Mandatory Redemption Amount may be up to an amount equal to the Holder’s pro-rata portion of, (i) if the
effective per share price of Common Stock or Common Stock Equivalents is equal to or less than $2.50, subject to adjustment for
reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that
occur after the Original Issue Date, 100% of the proceeds raised thereunder and (ii) if the effective per share price of Common
Stock or Common Stock Equivalents is greater than $2.50, subject to adjustment for reverse and forward stock splits, stock dividends,
stock combinations and other similar transactions of the Common Stock that occur after the Original Issue Date, 50% of the proceeds
raised thereunder. As to any Asset Sale, the Mandatory Redemption Amount shall be equal to Holder’s pro-rata portion of
100% of the proceeds from the Asset Sale. In the event that the Mandatory Redemption Amount as to the Holder is less than the
principal amount outstanding under this Debenture, then such Mandatory Redemption Amount shall be first applied to the next Monthly
Redemption and the balance applied to Monthly Redemptions in reverse chronological order from the Maturity Date. The Holder’s
pro-rata portion shall be determined ratably to all of the holders of the then outstanding Debentures based on their (or their
predecessor’s) initial purchases of Debentures pursuant to the Purchase Agreement.

 

    	18

     

    

 

d)
Redemption Procedure. The payment of cash pursuant to an Optional Redemption, Monthly Redemption and Mandatory Redemption
shall be payable on the Optional Redemption Date, Monthly Redemption Date or Mandatory Redemption Date, as applicable. If any
portion of the payment pursuant to an Optional Redemption, Monthly Redemption or Mandatory Redemption shall not be paid by the
Company by the applicable due date, interest shall accrue thereon at an interest rate equal to the lesser of 18% per annum or
the maximum rate permitted by applicable law until such amount is paid in full. Notwithstanding anything herein contained to the
contrary, if any portion of the Optional Redemption Amount remains unpaid after such date, the Holder may elect, by written notice
to the Company given at any time thereafter, to invalidate such Optional Redemption, ab initio, and, with respect to the
Company’s failure to honor the Optional Redemption, the Company shall have no further right to exercise such Optional Redemption.
Notwithstanding anything to the contrary in this Section 6, the Company’s determination to redeem in cash pursuant to Section
6(a) shall be applied ratably among the Holders of Debentures. The Holder may elect to convert the outstanding principal amount
of the Debenture pursuant to Section 4 prior to actual payment in cash for any redemption under this Section 6 by the delivery
of a Notice of Conversion to the Company.

 

Section
7. Negative Covenants. As long as any portion of this Debenture remains outstanding, unless the holders of at least
67% in principal amount of the then outstanding Debentures (inclusive of ________) shall have otherwise given prior written consent,
the Company shall not, and shall not permit any of the Significant Subsidiaries to, directly or indirectly:

 

a)
other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed
money of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or
hereafter acquired or any interest therein or any income or profits therefrom;

 

b)
other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to
any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

c)
amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

 

d)
repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common
Stock or Common Stock Equivalents other than as to (i) the Conversion Shares or Warrant Shares as permitted or required under
the Transaction Documents and (ii) repurchases of Common Stock or Common Stock Equivalents of departing officers and directors
of the Company, provided that such repurchases shall not exceed an aggregate of $100,000 for all officers and directors during
the term of this Debenture;

 

    	19

     

    

 

e)
other than Permitted Indebtedness, repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other
than the Debentures if on a pro-rata basis, provided that such payments shall not be permitted if, at such time, or after giving
effect to such payment, any Event of Default exist or occur;

 

f)
pay cash dividends or distributions on any equity securities of the Company;

 

g)
enter into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with
the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested
directors of the Company (even if less than a quorum otherwise required for board approval); or

 

h)
enter into any agreement with respect to any of the foregoing.

 

Section
8. Events of Default.

 

a)
“Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event
and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or
order of any court, or any order, rule or regulation of any administrative or governmental body):

 

i.
any default in the payment of (A) the principal amount of any Debenture or (B) interest, liquidated damages and other amounts
owing to a Holder on any Debenture, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity
Date or by acceleration or otherwise) which default, solely in the case of an interest payment or other default under clause (B)
above, is not cured within 5 Trading Days;

 

ii.
the Company shall fail to observe or perform any other covenant or agreement contained in the Debentures (other than a breach
by the Company of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in
clause (xi) below) or in any Transaction Document, which failure is not cured, if possible to cure, within the earlier to occur
of (A) 5 Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 10 Trading
Days after the Company has become or should have become aware of such failure;

 

iii.
a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) any of the Transaction Documents or (B) any other material agreement, lease, document or instrument to which
the Company or any Significant Subsidiary is obligated (and not covered by clause (vi) below);

 

    	20

     

    

 

iv.
any representation or warranty made in this Debenture, any other Transaction Documents, any written statement pursuant hereto
or thereto or any other report, financial statement or certificate made or delivered to the Holder or any other Holder shall be
untrue or incorrect in any material respect as of the date when made or deemed made;

 

v.
the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy
Event;

 

vi.
the Company or any Significant Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other
facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may
be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement
that (a) involves an obligation greater than $150,000, whether such indebtedness now exists or shall hereafter be created, and
(b) results in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become
due and payable;

 

vii.
the Common Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume
listing or quotation for trading thereon within five Trading Days;

 

viii.
the Company (and all of its Significant Subsidiaries, taken as a whole) shall be a party to any Change of Control Transaction
or Fundamental Transaction or shall agree to sell or dispose of all or in excess of 33% of its assets in one transaction or a
series of related transactions (whether or not such sale would constitute a Change of Control Transaction), excluding for such
calculation (A) the sale of the Exempt Assets pursuant to the Purchase Agreement and this Debenture, (B) the sale of securities
or cash equivalents received by the Company’s investor relations business line for good and services provided therefor (provided
that, unless such sale is made through the facilities of a public trading exchange or market, the Company shall have first given
the Holder a right of first refusal to purchase such securities on the same terms and conditions (applied ratably to all Holders))
or (C) the sale of assets of a Subsidiary of which the Company’s Board of Director, directly or indirectly, has no discretionary
control over provided that any such proceeds received therefore are used first to repay the Debentures pursuant to the terms of
the Mandatory Redemption;

 

    	21

     

    

 

ix.
the Initial Registration Statement (as defined in the Registration Rights Agreement) shall not have been declared effective by
the Commission on or prior to the 120th calendar day after the Closing Date or the Company does not meet the current
public information requirements under Rule 144 in respect of the Registrable Securities (as defined in the Registration Rights
Agreement);

 

x.
if, during the Effectiveness Period (as defined in the Registration Rights Agreement), either (a) the effectiveness of the Registration
Statement lapses for any reason or (b) the Holder shall not be permitted to resell Registrable Securities (as defined in the Registration
Rights Agreement) under the Registration Statement for a period of more than 20 consecutive Trading Days or 30 non-consecutive
Trading Days during any 12 month period;

 

xi.
the Company shall fail for any reason to deliver Conversion Shares to a Holder prior to the fifth Trading Day after a Conversion
Date pursuant to Section 4(c) or the Company shall provide at any time notice to the Holder, including by way of public announcement,
of the Company’s intention to not honor requests for conversions of any Debentures in accordance with the terms hereof;

 

xii.
any Person shall breach any agreement delivered to the initial Holders pursuant to Section 2.2 of the Purchase Agreement;

 

xiii.
the electronic transfer by the Company of shares of Common Stock through the Depository Trust Company or another established clearing
corporation is no longer available or is subject to a “chill”;

 

xiv.
any monetary judgment, writ or similar final process shall be entered or filed against the Company, any Significant Subsidiary
or any of their respective property or other assets for more than $50,000, and such judgment, writ or similar final process shall
remain unvacated, unbonded or unstayed for a period of 45 calendar days; or

 

xv.
a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company that the Equity Conditions
are satisfied or that there has been no Equity Conditions Failure or as to whether any Event of Default has occurred.

 

    	22

     

    

 

b)
Remedies Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Debenture, plus
accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall
become, at the Holder’s election, immediately due and payable in cash at the Mandatory Default Amount. Commencing 5 days
after the occurrence of any Event of Default that results in the eventual acceleration of this Debenture, the interest rate on
this Debenture shall accrue at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable
law. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Debenture to or as directed
by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives,
any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace
period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such
acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights
as a holder of the Debenture until such time, if any, as the Holder receives full payment pursuant to this Section 8(b). No such
rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

Section
9. Miscellaneous.

 

a)
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without
limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, by email attachment, or sent
by a nationally recognized overnight courier service, addressed to the Company, at the address set forth above, or such other
facsimile number, email address, or address as the Company may specify for such purposes by notice to the Holder delivered in
accordance with this Section 9(a). Any and all notices or other communications or deliveries to be provided by the Company hereunder
shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight
courier service addressed to each Holder at the facsimile number, email address or address of the Holder appearing on the books
of the Company, or if no such facsimile number or email attachment or address appears on the books of the Company, at the principal
place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder
shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment to the email address set forth on the signature pages attached hereto
prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile number or email attachment to the email address set forth on the
signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service
or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

 

    	23

     

    

 

b)
Absolute Obligation. Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable,
on this Debenture at the time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt
obligation of the Company. This Debenture ranks pari passu with all other Debentures now or hereafter issued under the
terms set forth herein.

 

c)
Lost or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed, the Company shall execute
and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture, or in lieu of or in substitution
for a lost, stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture so mutilated, lost, stolen
or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof,
reasonably satisfactory to the Company.

 

d)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Debenture shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement
and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its
respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts
sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Debenture and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Debenture or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any
provisions of this Debenture, then the prevailing party in such action or proceeding shall be reimbursed by the other party for
its attorneys fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

e)
Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or
be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The
failure of the Company or the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall
not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Debenture on any other occasion. Any waiver by the Company or the Holder must be in writing.

 

    	24

     

    

 

f)
Severability. If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall
remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable
to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates
the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the
maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that
it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal
of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this Debenture, and the Company (to the extent it may lawfully do so) hereby expressly
waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though
no such law has been enacted.

 

g)
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Debenture
shall be cumulative and in addition to all other remedies available under this Debenture and any of the other Transaction Documents
at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit
the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of
this Debenture. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than
as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and
the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein,
be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate.
The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition
to all other available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity
of showing economic loss and without any bond or other security being required. The Company shall provide all information and
documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with
the terms and conditions of this Debenture.

 

    	25

     

    

 

h)
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day.

 

i)
Headings. The headings contained herein are for convenience only, do not constitute a part of this Debenture and shall
not be deemed to limit or affect any of the provisions hereof.

 

j)
Secured Obligation. The obligations of the Company under this Debenture are secured by all assets of the Company and each
Significant Subsidiary pursuant to the Security Agreement, dated as of June __, 2020 between the Company, the Subsidiaries of
the Company and the Secured Parties (as defined therein).

 

Section
10. Disclosure. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Debenture, unless
the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information
relating to the Company or its Subsidiaries, the Company shall within two (2) Business Days after such receipt or delivery publicly
disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes
that a notice contains material, non-public information relating to the Company or its Subsidiaries, the Company so shall indicate
to the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, nonpublic information relating to the Company
or its Subsidiaries.

 

*********************

 

(Signature
Page Follows)

 

    	26

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Debenture to be duly executed by a duly authorized officer as of the date first above
indicated.

 

	 	SRAX,
    INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    Facsimile
No. for delivery of Notices: _______________

 

    	27

     

    

 

ANNEX
A

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the Original Issue Discount Senior Secured Convertible Debenture due June
__, 2023 of SRAX, Inc., a Delaware corporation (the “Company”), into shares of common stock (the “Common
Stock”), of the Company according to the conditions hereof, as of the date written below. If shares of Common Stock
are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with
respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance
therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

 

By
the delivery of this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common
Stock does not exceed the amounts specified under Section 4 of this Debenture, as determined in accordance with Section 13(d)
of the Exchange Act.

 

The
undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with
any transfer of the aforesaid shares of Common Stock.

 

	Conversion
    calculations:	 	 
	 	 	Date
    to Effect Conversion:
	 	 	 
	 	 	Principal
    Amount of Debenture to be Converted:
	 	 	 
	 	 	Payment
    of Interest in Common Stock __ yes __ no
	 	 	            If yes, $_____ of Interest Accrued on Account of

                                                                     Conversion at Issue.

	 	 	 
	 	 	Number
    of shares of Common Stock to be issued:
	 	 	 
	 	 	Signature:
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Address
    for Delivery of Common Stock Certificates:
	 	 	 
	 	 	Or
	 	 	 
	 	 	DWAC
    Instructions:
	 	 	 
	 	 	Broker
    No:_________________
	 	 	Account
    No:________________

 

    	28

     

    

 

Schedule
1

 

CONVERSION
SCHEDULE

 

The
Original Issue Discount Senior Secured Convertible Debentures due on June __, 2023 in the aggregate principal amount of $____________
are issued by SRAX, Inc., a Delaware corporation. This Conversion Schedule reflects conversions made under Section 4 of the above
referenced Debenture.

 

Dated:

 

	Date of Conversion 
(or for first entry, 
 Original Issue Date)	 	Amount of 
 Conversion	 	Aggregate 
 Principal 
Amount 
 Remaining 
 Subsequent to 
 Conversion 
(or original 
 Principal 
 Amount)	 	Company Attest
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	29

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