Document:

Exhibit 10.1

 

LOAN
AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY AGREEMENT
(this “Agreement”), dated as of January 3, 2022, is made and entered into by and between Mill City Ventures III, Ltd.,
a Minnesota corporation (the “Borrower”), on the one hand, and Lyle A. Berman, as Trustee of the Lyle A. Berman Revocable
Trust, and Eastman Investment, Inc., a Nevada corporation (each a “Lender” and collectively the “Lenders”),
on the other hand.

 

RECITALS:

 

The Borrower has requested
that the Lenders make a revolving line of credit in an aggregate amount of $5,000,000.00 available to the Borrower, and the Lenders are
willing to do so upon the terms and subject to the conditions set forth herein.

 

AGREEMENTS:

 

NOW, THEREFORE, in consideration
of the foregoing and of the terms and conditions contained in this Agreement, and of any loans or other financial accommodations at any
time made to or for the benefit of the Borrower by the Lenders, the Borrower and the Lenders agree as follows:

 

ARTICLE 1

 

DEFINITIONS
AND ACCOUNTING TERMS

 

Section 1.1.            Defined
Terms. Capitalized terms defined in this Agreement have the meanings given. In addition, the following terms shall have the following
respective meanings:

 

“Affiliate”
means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control
with, such Person. Notwithstanding the foregoing, the Lenders shall not be deemed an “Affiliate” of any Loan Party solely
by reason of the provisions of the Loan Documents.

 

“Agreement”
means this Loan and Security Agreement, together with the Schedules and Exhibits attached hereto, as each of the same may be amended,
restated, supplemented, or otherwise modified from time to time.

 

“Authorized
Officer” means Joseph Geraci, Chief Financial Officer of Borrower, and each such other officer designated by the Borrower to
the Lenders in writing from time to time after the Closing Date.

 

“Availability”
means, at any time, an amount equal to the Revolving Facility Amount minus the Revolving Exposure.

 

“Availability Period”
means the period from and including the Closing Date to but excluding the earlier of the Maturity Date and the date of termination of
the Revolving Commitment.

 

“Bankruptcy Code”
means Title 11 of the United States Code entitled “Bankruptcy”, as amended.

 

“Business Day”
means any day that is not a Saturday, Sunday or other day on which commercial banks in Minneapolis, Minnesota are authorized or required
by law to remain closed.

 

     

     

    

 

“Capital Stock”
means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or
non-voting) of such Person’s capital, whether now outstanding or issued or acquired after the Closing Date, including common shares,
preferred shares, membership interests in a limited liability company, limited or general partnership interests in a partnership or any
other equivalent of such ownership interest.

 

“Change of Control”
means the occurrence of any of the following: (a) Polinsky and Geraci shall cease to own, free and clear of all Liens and other
encumbrances, at least 10% of the voting Capital Stock of the Borrower in the aggregate on a fully diluted basis, unless such reduction
in ownership is caused by an equity financing of Borrower that dilutes all shareholders evenly, or (b) each of Polinsky and Geraci
is no longer serving as either an officer or director of Borrower.

 

“Closing Date”
means the date of this Agreement, which date is January 3, 2022.

 

“Collateral”
means collectively all property described in Section 4.1, all property described in any Security Documents as security for any Obligations,
and all other property that now or hereafter secures (or is intended to secure) any Obligations.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Contingent Obligation”
means, with respect to any Person at the time of any determination, without duplication, any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness of any other Person (the “primary obligor”)
in any manner, whether directly or otherwise: (a) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or to purchase (or to advance or supply funds for the purchase of) any direct or indirect security therefor, (b) to
purchase property, securities or services for the purpose of assuring the owner of such Indebtedness of the payment of such Indebtedness,
(c) to maintain working capital, equity capital or other financial statement condition of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or otherwise to protect the owner thereof against loss in respect thereof, or (d) entered
into for the purpose of assuring in any manner the owner of such Indebtedness of the payment of such Indebtedness or to protect the owner
against loss in respect thereof; provided, however, that the term “Contingent Obligation” shall not include
endorsements for collection or deposit, in each case in the ordinary course of business.

 

“Control Agreement”
means, with respect to any collateral for which “control” within the meaning of Articles 7, 8 and 9 of the UCC is a means
of perfection, an agreement acceptable to the Lenders and satisfying the applicable requirements of the UCC.

 

“Default”
means any event which, with the giving of notice or lapse of time, or both, would constitute an Event of Default.

 

“Default Rate”
has the meaning given to such term in Section 2.9.

 

“Environmental Laws”
means all applicable federal, state, local and foreign laws, common law or regulations, rules, treaties, orders, decrees, permits, licenses,
authorizations, judgments or injunctions issued, promulgated, approved or entered thereunder, now or hereafter in effect in each case
relating to pollution or protection of individual, public or employee health or safety or the environment (including ambient and indoor
air, surface water, groundwater, soil, land surface or subsurface, and natural resources such as wetlands, flora and fauna) including
laws relating to (a) emissions, discharges, releases or threatened releases of Hazardous Substances into the environment and (b) the
manufacture, processing, distribution, use, generation, treatment, storage, disposal, transport or handling of Hazardous Substances.

 

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“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, together with all regulations issued thereunder.

 

“Event of Default”
has the meaning given to such term in Section 8.1.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

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

 

“Geraci”
means Joseph A. Geraci, the Chief Financial Officer and a director of Borrower.

 

“Governmental Approvals”
means all authorizations, consents, approvals, permits, licenses and exemptions of, registrations and filings with, and reports to, all
Governmental Authorities.

 

“Governmental Authority”
means the government of the United States of America or any political subdivision thereof, or any other nation or any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Governmental Requirements”
means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals,
interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

 

“Hazardous Substances”
means any substance or material defined in or governed or regulated by any Environmental Laws as a dangerous, toxic or hazardous pollutant,
contaminant, chemical, waste, material or substance, and also expressly includes urea-formaldehyde, polychlorinated biphenyls, dioxin,
radon, lead-based paint, asbestos, asbestos containing materials, nuclear fuel or waste, radioactive materials, explosives, carcinogens
and petroleum products, including but not limited to crude oil or any fraction thereof, natural gas, natural gas liquids, gasoline and
synthetic gas, and any other waste, material, substance, pollutant or contaminant the presence of which on, in, about or under any property,
would subject the owner or operator thereof to any damages, penalties, fines or liabilities under any applicable Environmental Laws.

 

“Impositions”
has the meaning given to such term in Section 6.7.

 

“Indebtedness”
means, with respect to any Person and without duplication, all obligations, contingent or otherwise, of such Person which in accordance
with GAAP should be classified upon the balance sheet of such Person as liabilities, but in any event including the following whether
or not so classified: (a) any debt or other obligation created, issued, guaranteed, incurred or assumed by such Person for money
borrowed, (b) any obligation of such Person as lessee under any capitalized lease, (c) any obligation of such Person for the
deferred purchase price of property or services (except for trade payables arising in the ordinary course of business and payable in
accordance with customary trade terms), (d) any guaranty, endorsement or other Contingent Obligation in respect of indebtedness
of others, (e) any undertaking or agreement to reimburse or indemnify any issuer of a letter of credit, (f) any obligation
secured by any lien, mortgage, pledge, charge or other encumbrance existing on property owned by such Person or acquired subject thereto,
whether or not such obligation shall have been assumed, (g) all obligations of such Person under conditional sale or other title
retention agreements relating to property purchase by such Person, and (h) all obligations of any partnership or joint venture as
to which such Person is or may become personally liable.

 

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“Investment”
means the acquisition, purchase, making or holding of any stock or other security (including the making of any Subsidiary), any loan,
advance, contribution to capital, extension of credit (except for trade and customer accounts receivable for inventory sold or services
rendered in the ordinary course of business and payable in accordance with customary trade terms), any acquisitions of real or personal
property (other than real and personal property acquired in the ordinary course of business) and any purchase or commitment or option
to purchase stock or other debt or equity securities of or any interest in another Person or any integral part of any business or the
assets comprising such business or part thereof. The amount of any Investment shall be the original cost of such Investment plus the
cost of all additions thereto, without any adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such Investment.

 

“Lender Termination
Notice” means a written notice delivered by either Lender to Borrower at any time on or after the one-year anniversary of the
Closing Date that states that the Lender is terminating his or its specific loan facility under this Agreement.

 

“Lien”
means with respect to any Person, any security interest, mortgage, pledge, lien, charge, encumbrance, easement, covenant, condition,
title retention agreement or analogous instrument or device (including the interest of each lessor under any capitalized lease), in,
of or on any assets or properties of such Person, now owned or hereafter acquired, whether arising by agreement or operation of law.

 

“Loans”
means, collectively, loans and advances made by Lenders pursuant to this Agreement, including Revolving Loans.

 

“Loan Documents”
means, collectively, this Agreement, the Security Documents, the Notes and each other instrument, document, guaranty, mortgage, deed
of trust, chattel mortgage, pledge, power of attorney, consent, assignment, contract, notice, security agreement, lease, financing statement,
subordination agreement, trust account agreement, or other agreement executed by the Borrower or any other party and delivered in connection
with this Agreement, the Loans or the Collateral, as all of the same may be amended, supplemented, restated, replaced or otherwise modified
from time to time.

 

“Loan Parties”
means, collectively, the Borrower and any other Person who becomes a party to this Agreement pursuant to a joinder agreement and their
respective successors and assigns, and the term “Loan Party” shall mean any one of them or all of them individually, as the
context may require.

 

“Material Adverse
Effect” means a material adverse effect on (a) any Loan Party’s (i) business, property, assets, prospects,
operations or condition, financial or otherwise or (ii) ability to perform any of its payment or other Obligations under this Agreement
or any of the other Loan Documents, (b) the recoverable value of the Collateral or the Lender’s rights or interests therein,
(c) the legality, validity, binding effect or enforceability of any of the Loan Documents, or (d) the ability of the Lenders
to exercise any of its rights or remedies under the Loan Documents or as provided by law.

 

“Maturity Date”
means the earlier of (i) the five-year anniversary of the Closing Date, or (ii) as to each Lender, if either delivers a Lender
Termination Notice, the one-year anniversary of the effective date of the Lender Termination Notice for such Lender’s portion of
the Loan.

 

“Net Asset Value”
means the net asset value of Borrower, or per share of Borrower’s common stock, as applicable, calculated in accordance with GAAP.

 

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“Net Proceeds”
means, with respect to any event, (a) the cash proceeds received in respect of such event including (i) any cash received in
respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when
received, (ii) in the case of a casualty, insurance proceeds and (iii) in the case of a condemnation or similar event, condemnation
awards and similar payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties
(other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including
pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required
to be made as a result of such event to repay Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory
prepayment as a result of such event and (iii) the amount of all taxes paid (or reasonably estimated to be payable) and the amount
of any reserves established to fund contingent liabilities reasonably estimated to be payable, in each case during the year that such
event occurred or the next succeeding year and that are directly attributable to such event (as determined reasonably and in good faith
by the Borrower).

 

“Notes”
means, collectively, the Revolving Notes.

 

“Obligations”
means any and all of the liabilities, obligations and indebtedness of the Borrower to the Lenders of any kind or nature, howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing or due or to be due, and whether
joint, several, or joint and several, including (a) obligations of the Borrower arising under this Loan Agreement, the Notes, the
Security Documents and the other Loan Documents, (b) obligations of performance, and (c) the obligation of the Borrower to
pay interest, fees, charges, expenses, attorneys’ fees, overdrafts and other sums chargeable to the Borrower by the Lenders under
any Loan Document. The term “Obligations” shall also include any and all amendments, extensions, renewals, refundings or
refinancings of any of the foregoing.

 

“Operating Account”
has the meaning given to such term in Section 2.2.

 

“Organizational
Documents” means (a) as to any corporation, the certificate or articles of incorporation or association, the bylaws, any
unanimous shareholder agreement or declaration, any certificate of determination or instrument relating to the rights of preferred shareholders
of such corporation, any shareholder rights agreement or voting trust agreement and all other documents of a comparable nature, (b) as
to any limited liability company, the articles of organization, the operating agreement, any unanimous member agreement or voting trust
agreement and all other documents of a comparable nature, (c) as to any partnership, its partnership agreement, its certificate
of partnership and all other documents of the nature described above, and (d) as to any other entity, its organizational or governing
documents and all other documents of the nature described above.

 

“Permitted Encumbrances”
has the meaning given to such term in Section 7.7.

 

“Person”
means any natural person, corporation, partnership, limited partnership, joint venture, limited liability company, firm, association,
trust, unincorporated organization, government, government entity or any other entity, whether acting as an individual, fiduciary or
in any other capacity.

 

“Plan”
has the meaning given to such term in Section 5.8.

 

“Polinsky”
means Douglas M. Polinsky, the Chief Executive Officer and a director of Borrower.

 

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“Registrable Securities”
means (i) all of the Shares, and (ii) any shares of capital stock or other securities of Borrower issued as a dividend or other
distribution with respect to or in exchange for or in replacement of any of the Registrable Securities described in clause (i) above;
provided, that as to any particular Registrable Securities, such securities shall cease to be Registrable Securities when: (a) a
Registration Statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities
shall have been sold, transferred, disposed of or exchanged pursuant to such Registration Statement; or (d) such securities are
saleable under Rule 144 of the Securities Act without regard to any volume limitation requirements under Rule 144 of the Securities
Act.

 

“Required Minimum”
means an aggregate of 250,000 shares of the Borrower’s common stock, subject to adjustment for reverse and forward stock splits
or stock dividends that occur after the date hereof.

 

“Revolving Commitment”
means Lender’s commitment to make Revolving Loans hereunder up to the amount of the Revolving Loan Facility Amount.

 

“Revolving Exposure”
means, as of any date of determination, the sum of the outstanding principal balance of the Revolving Loans.

 

“Revolving Facility
Amount” means $5,000,000.00, as such amount may be reduced from time to time pursuant to Section 2.3.

 

“Revolving Loan”
means a Loan made pursuant to Section 2.1(a).

 

“Revolving Note”
means that certain separate promissory note of even date herewith made payable by the Borrower to the order of each Lender pursuant to
Section 2.1(a) in the principal amount of $2,500,000.00, with respect to each Lender, as each may be amended, restated,
renewed, supplemented or otherwise modified from time to time.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Security Documents”
means, collectively, this Agreement, any Control Agreements and all other security agreements, pledge agreements, patent and trademark
security agreements, lease assignments, mortgages, deeds of trust, key man life insurance assignments, control agreements, guarantees
and other similar agreements, by or between any one or more of any Loan Party and Lender, now or hereafter delivered to Lenders pursuant
to or in connection with the transactions contemplated hereby, and all financing statements (or comparable documents now or hereafter
filed in accordance with the UCC or comparable law) against any such Person, as debtor, in favor of Lender, as secured party.

 

“Shares”
means the shares of Borrower common stock issuable pursuant to the terms of this Agreement.

 

“Subsidiary”
means any Person of which or in which the Borrower and its other Subsidiaries own directly or indirectly 50% or more of: (a) the
combined voting power of all classes of stock having general voting power under ordinary circumstances to elect a majority of the board
of directors of such Person, if it is a corporation, (b) the capital interest or profit interest of such Person, if it is a partnership,
limited liability company, joint venture or similar entity, or (c) the beneficial interest of such Person, if it is a trust, association
or other unincorporated organization.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State of Minnesota or any other state the laws of which are required
to be applied in connection with the issue of perfection of security interests.

 

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Section 1.2.            Accounting
Terms and Calculations; UCC Terms. Except as may be expressly provided to the contrary herein, all accounting terms used herein shall
be interpreted and all accounting determinations hereunder shall be made in accordance with GAAP. Terms used in this Agreement that are
defined in the UCC have the meanings given to such terms in the UCC.

 

Section 1.3.            Other
Definitional Terms, Terms of Construction. The words “hereof,” “herein” and “hereunder” and words
of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
References to Sections, Exhibits, Schedules and like references are to Sections, Exhibits, Schedules and the like of this Agreement unless
otherwise expressly provided. The words “include,” “includes” and “including” shall be deemed to
be followed by the phrase “without limitation.” Unless the context in which used herein otherwise clearly requires, “or”
has the inclusive meaning represented by the phrase “and/or”. The singular of any word shall include the singular and the
plural of such word. All incorporations by reference of covenants, terms, definitions or other provisions from other agreements are incorporated
into this Agreement as if such provisions were fully set forth herein, and include all necessary definitions and related provisions from
such other agreements. All covenants, terms, definitions and other provisions from other agreements incorporated into this Agreement
by reference shall survive any termination of such other agreements until the obligations of the Borrower under this Agreement and the
Notes are irrevocably paid in full.

 

Section 1.4.            Resolution
of Drafting Ambiguities. The Borrower and each Lender acknowledge and agree that they were represented by counsel in connection with
the execution and delivery of this Agreement, or had the opportunity to consult counsel with respect to this Agreement, that it and its
respective counsel reviewed and participated in the preparation and negotiation hereof and that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation hereof. The parties
to this Agreement acknowledge and agree that Maslon LLP has solely represented the interests of Lenders with respect to the preparation
and negotiation of this Agreement and the Loan Documents.

 

ARTICLE 2

 

TERMS
OF LENDING

 

Section 2.1.            Revolving
Facility; Revolving Loans. Upon the terms and subject to the conditions hereof and of the other Loan Documents and in reliance upon
the warranties of the Borrower herein and therein, each Lender agrees to make Revolving Loans to Borrower from time to time during the
Availability Period in an aggregate principal amount that will not result in the Revolving Exposure exceeding the Revolving Facility
Amount. Each Lender’s commitment hereunder will be to advance 50% of each request for a Revolving Loan under Section 2.2.
Within the foregoing limits and subject to the terms and conditions set forth herein, Borrower may borrow, prepay and reborrow Revolving
Loans. The Revolving Loans shall be evidenced by the Revolving Notes. Notwithstanding anything to the contrary set forth in this Agreement,
each Lender’s commitment to make Revolving Loans shall terminate immediately upon the effective date of such Lender’s Lender
Termination Notice.

 

Section 2.2.            Requests
for Loans; Disbursements of Loans. To request a Revolving Loan, Borrower shall comply with the following:

 

(a)            Borrower
shall make each request for a Revolving Loan in writing in a form approved by Lenders and signed by an Authorized Officer of the Borrower
and delivered by hand, facsimile or electronic mail.

 

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(b)            Each
request shall be delivered to Lender not later than 12:00 noon Minneapolis time two Business Days before the Business Day of the proposed
Revolving Loan.

 

(c)            Each
request shall be irrevocable.

 

(d)            Each
request shall specify the aggregate amount of the requested Revolving Loans, which shall not be less than $500,000, and, if applicable
a breakdown of the separate wires comprising such Loan, and provide the material terms of the Investment for which the net proceeds of
such Revolving Loan shall be used.

 

(e)            Each
request shall specify the date such Revolving Loan is to be made, which shall be a Business Day.

 

(f)            Not
later than 3:00 P.M., on the date of a proposed borrowing, and, so long as Lenders have not received evidence that the conditions precedent
set forth in this Agreement with respect to such borrowing have not been satisfied, each Lender shall provide the Borrower with immediately
available funds covering Lender’s 50% share of such borrowing, or shall fund such borrowing in any other allocations agreed to
by Lenders in writing.

 

(g)            Borrower
irrevocably authorizes Lenders to make all disbursements of Loans into a Borrower’s operating account, or such other account as
mutually agreed between Lenders and Borrower (the “Operating Account”) that will be structured and utilized for that
purpose in accordance with such Operating Account bank’s policies and procedures from time to time in effect. Unless other arrangements
are made with, and expressly agreed to by, Lenders all advances of the Revolving Loans, if made by each Lender, will be made via wire
transfer into the Operating Account at the end of the applicable Business Day on which the advance is made.

 

(h)            The
failure of any Lender to make a requested Revolving Loan on any date shall not relieve any other Lender of its obligation (if any) to
make a Loan on such date, but no Lender shall be responsible for the failure of any other Lender to make any Loan to be made by such
other Lender.

 

(i)            The
contemplated Investment for which the Revolving Loan proceeds will be used shall not cause 20% or more of the Borrower’s total
outstanding Investments to be made to one Person (including such Person’s Affiliates), calculated based on the gross amounts of
each Investment made or to be made by Borrower, after giving effect to the consummation of the contemplated Investment.

 

(j)            Notwithstanding
any other provision of this Agreement, no Lender shall have an obligation to make any Loan if an Event of Default exists, or would exist
as a result of such Loan.

 

Section 2.3.            Termination
of Revolving Commitments. Unless previously terminated, the Revolving Commitment shall terminate on the Maturity Date. Borrower may
at any time terminate the Revolving Commitment upon (a) written notice to the Lenders, (b) the payment in full of all outstanding
Loans, together with accrued and unpaid interest thereon, (c) the payment in full of the accrued and unpaid fees, (d) the payment
in full of all reimbursable expenses and other Obligations together with accrued and unpaid interest thereon, and (e) the payment
of a termination fee equal to (i) $50,000 per year, multiplied by (ii) the number of years remaining until the Maturity Date,
pro-rated for partial years. Any termination of the Revolving Commitment by either of the Lenders shall not require payment of a Termination
Fee pursuant to this Section, although may require payments pursuant to other sections of this Agreement. Any termination of the Revolving
Commitment by the Borrower shall be permanent.

 

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Section 2.4.            Interest.

 

(a)            Revolving
Loans. Interest on the aggregate unpaid principal balance of the Revolving Loans shall accrue at a fixed rate equal to 8.0%, per
annum.

 

(b)            Calculation
of Interest. All interest on the Loans shall be computed on the basis of a year of 360 days and shall be payable for the actual number
of days elapsed.

 

Section 2.5.            Payments.

 

(a)            Interest
on the outstanding principal balance of the Revolving Loans is payable in arrears monthly beginning January 31, 2022, and on the
last day of each consecutive month thereafter. Any interest payments made more than five (5) calendar days after the due date thereof
shall be subject to an additional $1,000 late payment fee due at the time of such interest payment.

 

(b)            The
entire unpaid principal balance of all Loans, all accrued interest thereon and all other Obligations shall be due and payable in full
on the Maturity Date.

 

(c)            Upon
the delivery of a Lender Termination Notice, all cash proceeds from Investments made with Loans extended by the Lender(s) providing
the Lender Termination Notice received by Borrower between the date of the Lender Termination Notice and the Maturity Date shall be paid
immediately upon receipt by Borrower to Lenders.

 

(d)            All
payments shall be applied first to accrued interest owing to each Lender, then to the payment of the applicable principal balance, then
to late payment charges, fees and expenses; provided, however, that if an Event of Default exists, the Lenders
may elect to apply any payments in any order as each deems appropriate. Payments and prepayments of principal of, and interest on, the
Notes and all fees, expenses and other Obligations under the Loan Documents shall be made without set-off or counterclaim in immediately
available funds not later than 1:00 p.m., Minneapolis time, on the dates due at each location specified by the respective Lender. Funds
received on any day after such time shall be deemed to have been received on the next Business Day of the applicable Lender. Whenever
any payment to be made hereunder or on the Notes shall be stated to be due on a day which is not a Business Day of the Lender, such payments
shall be made on the next succeeding Business Day of the respective Lender and such extension of time shall be included in the computation
of any interest or fees. The Borrower authorizes each Lender to charge the Borrower’s account, as the Borrower may from time to
time designate, for scheduled payments of principal and interest due hereunder, all without notice to or further authorization from the
Borrower.

 

Borrower hereby irrevocably authorizes (a) each
Lender to make a Revolving Loan for the purpose of paying each payment of principal, interest and fees as it becomes due hereunder or
any other amount due under the Loan Documents and agrees that all such amounts charged shall constitute Revolving Loans and that all
such Revolving Loans shall be deemed to have been requested pursuant to Section 2.2, and (b) each Lender to charge the
Operating Account for each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan
Documents.

 

Section 2.6.            Use
of Proceeds. The proceeds of the Revolving Loans shall be used for Borrower’s Investments only.

 

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Section 2.7.            Prepayments.

 

(a)            Voluntary
Prepayment. Borrower shall have the right at any time and from time to time to prepay any Loan in whole or in part, subject to a
minimum aggregate prepayment amount of at least $500,000, and the payment of any applicable prepayment fees. Prepayments shall be accompanied
by accrued interest. Any prepayment shall be split pro-rata and paid directly to each Lender.

 

(b)            Mandatory
Prepayments.

 

(i)            If
at any time the Revolving Exposure exceeds the Revolving Facility Amount, Borrower shall immediately prepay the Revolving Loans in an
aggregate amount equal to such excess.

 

(ii)            In
the event and on each occasion that any Net Proceeds are received by or on behalf of any Loan Party following the occurrence and during
the continuance of an Event of Default, Borrower shall, immediately after such Net Proceeds are received by any Loan Party, prepay the
Obligations as set forth in Section 2.7(c) below in an aggregate amount equal to 100% of such Net Proceeds.

 

(c)            Application
of Prepayments.            All amounts
paid pursuant to Section 2.7(a) shall be applied to the Obligations as elected by Borrower, provided that any amount
applied to a Loan (other than a Revolving Loan) shall be applied to payments in the inverse order of maturity. All amounts paid pursuant
to Section 2.7(b)(i) shall be applied to prepay the Revolving Loans without a corresponding reduction in the Revolving
Facility Amount. All amounts paid pursuant to Section 2.7(b)(ii) shall be applied first ratably to the Loans
(other than Revolving Loans) in the inverse order of maturity until paid in full, second to the Revolving Loans until paid in
full and third to all other Obligations then outstanding in any order of application, as determined by each Lender in its sole
discretion. Any amount paid or prepaid in respect of any Loan (other than a Revolving Loan) may not be reborrowed.

 

Section 2.8.            Expenses
and Advances Secured. All disbursements, advances or payments made by either Lender hereunder, all amounts expended by either Lender
pursuant to Section 9.2 hereof, either Lender’s attorneys’ fees, if any, and all other loan expenses, as and
when advanced or incurred by the applicable Lender, will be secured by this Agreement and the other Loan Documents.

 

Section 2.9.            Default
Rate. If the Loans have not been repaid on or before the Maturity Date, or if an Event of Default occurs, then the annual interest
rate provided for herein shall, at the sole option of each Lender, thereafter be increased and shall be payable on the whole of the unpaid
principal balance at a rate equal to five percent (5.0%) per annum in excess of the rate of interest then in effect hereunder (hereinafter
referred to as the “Default Rate”), which Default Rate, if imposed, shall be effective as of the date of the occurrence
of such Event of Default. The Default Rate, if imposed, shall continue until the Event of Default has been waived or cured to each Lender’s
satisfaction.

 

Section 2.10.            Limitation
on Interest Rate. If for any reason whatsoever the interest and other consideration payable to each Lender under the Loan Documents
exceeds the limit prescribed by any applicable usury statute or any other applicable law, then such interest and other consideration
shall be reduced to the limit provided in such statute or law, so that in no event shall such interest and other consideration be in
excess of such limit. If any payments of interest or other consideration have been made to either Lender in excess of such limits, such
excess amount shall be applied to the principal balance or, if the Loans have been fully paid, refunded to the Borrower.

 

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Section 2.11.            Unused
Line Fee. The Borrower shall pay a quarterly unused line fee equal to 0.25% multiplied by the amount by which the Revolving Facility
Amount exceeds the average Revolving Exposure for the immediately preceding fiscal quarter. Eighty Percent (80%) of such amount shall
be payable on or before the fifteenth (15th) day of the month following Borrower’s fiscal quarter end in Shares valued
at Net Asset Value per share of Borrower’s common stock, as determined at the end of such fiscal quarter then-ended, and the remaining
20% shall be paid within five (5) days of Borrower computing NAV in its 10-Q quarterly or 10-K annual report, as the case may be,
filed with the Securities and Exchange Commission.

 

ARTICLE 3

 

CONDITIONS
PRECEDENT

 

Section 3.1.            Closing
Date Conditions. The obligation of the Lender to make any Loans hereunder shall not become effective until the date on which the
following conditions are satisfied in a manner satisfactory to each Lender:

 

(a)            Loan
Documents, Related Agreements and Information. The Lender shall have received on or before the date of this Agreement all of the
agreements, documents, instruments and other items set forth on the closing checklist attached hereto as Exhibit 3.1,
each executed (where applicable) and in form and substance satisfactory to each Lender, as applicable.

 

(b)            Approvals.
The Lender shall have received (i) satisfactory evidence that the Borrower has obtained all required consents and approvals of all
Persons (including all applicable Governmental Authorities), to the execution, delivery and performance of this Agreement and the other
Loan Documents and the consummation of the transactions contemplated hereby or (ii) an officer’s certificate in form and substance
reasonably satisfactory to the Lender affirming that no such consents or approvals are required.

 

(c)            Fees
and Expenses. Each Lender shall have received all fees and amounts due and payable by the Borrower together with all reasonable fees
and expenses of counsel to such Lender payable pursuant to Section 9.2.

 

(d)            Perfection.
The Security Documents, any UCC-1 financing statements and any other Loan Document creating or evidencing a lien or security interest
which the Lender requires to be filed of record, shall have been appropriately filed to the satisfaction of the Lender and the priority
and perfection of the Lien created thereby shall have been established to the satisfaction of the Lender.

 

(e)            Insurance.
The Lender shall have received evidence of insurance demonstrating that the insurance required by Section 6.6 is in full
force and effect.

 

(f)            No
Material Adverse Effect. No circumstance or event has occurred or arisen that could result in a Material Adverse Effect, as determined
by each Lender in its sole discretion.

 

(g)            Due
Diligence. The Lenders and their counsel shall have completed all financial, business, legal, tax and regulatory due diligence.

 

(h)            Other.
Each Lender shall have received such other documents, instruments or agreements as the Lender may have reasonably requested.

 

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Section 3.2.            Conditions
to Each Extension of Credit. The obligation of each Lender to make a Loan hereunder, including on the Closing Date, is subject to
the satisfaction of the following conditions:

 

(i)            Representations
and Warranties. All representations and warranties of the Borrower made in this Agreement and in each other Loan Document to which
the Borrower is a party, together with all other information contained in any document furnished to the Lender at any time by Borrower
under or in connection with this Agreement or any other Loan Document, are true and correct with the same effect as though made on and
as of the date of such Loan.

 

(j)            No
Default. At the time of and immediately after giving effect to such Loan, no Default or Event of Default shall exist under this Agreement
or any other Loan Document.

 

(k)            Availability.
After giving effect to any Revolving Loan, Availability is not less than zero.

 

Each request for a Loan shall be deemed to constitute
a representation and warranty by the Borrower on the date thereof as to the matters specified in this Section.

 

ARTICLE 4

 

Security
agreement

 

Section 4.1.            Grant
of Security Interest. As security for the full, prompt and complete payment and performance by the Borrower of the Obligations, the
Borrower hereby grants to, and creates in favor of, each Lender a pari passu, continuing security interest in, and Lien on, all of the
Borrower’s right, title and interest in and to all of the Borrower’s assets and property, tangible and intangible, real and
personal, whether now owned by or owing to, or hereafter acquired by or arising in favor, of the Borrower, including:

 

(a)            all
Accounts, Chattel Paper, Commercial Tort Claims listed, or required to be listed, in Schedule 4.1, Deposit Accounts, Securities
Accounts, Documents, Equipment, Fixtures, General Intangibles, Goods, Health-Care-Insurance Receivables, Instruments, Inventory, Investment
Property, Letters of Credit (as defined in Article 5 of the UCC), Letter-of-Credit Rights, Money, cash, cash equivalents, and Promissory
Notes;

 

(b)            all
of the Borrower’s patents, patent applications, patent registrations, trade secrets, customer lists, proprietary information, inventions,
copyrights, copyright registrations, copyright applications, trademarks (including service marks), logos, federal and state trademark
registrations and applications, all of the Borrower’s leases, lease contracts, lease agreements, records, franchises, customer
lists, insurance refunds, insurance refund claims, tax refunds, tax refund claims, pension plan refunds, and pension plan reversions;

 

(c)            all
attachments, accessions, parts and appurtenances to, all substitutions for, and all replacements of any of the foregoing;

 

(d)            all
Supporting Obligations; and

 

(e)            all
of the products and Proceeds of all of the foregoing, including cash Proceeds and non-cash Proceeds, and including Proceeds of any insurance,
whether in the form of original collateral or any of the property or rights or interests in property described above in this Section.

 

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Section 4.2.            Perfection
of each Lender’s Security Interest; Duty of Care.

 

(a)            Until
the termination of this Agreement, the Borrower shall perform any and all steps and take all actions requested by either Lender from
time to time to perfect, maintain, protect, and enforce each Lender’s security interest in, and Lien on, the Collateral, including
(a) executing and delivering all appropriate documents and instruments as either Lender may determine are necessary or desirable
to perfect, preserve, or enforce either Lender’s interest in the Collateral, including financing statements, all in form and substance
satisfactory to each Lender, (b) placing notations on the Borrower’s books of account to disclose Lender’s security
interest and Lien therein, and (c) taking such other steps and actions as deemed necessary or desirable by either Lender to perfect
and enforce Lender’s security interest in, and Lien on, and other rights and interests in, the Collateral.

 

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

 

(c)            To
protect, perfect, or enforce, from time to time, each Lender’s rights or interests in the Collateral, such Lender may, in its discretion
(but without any obligation to do so), (a) discharge any Liens (other than Permitted Encumbrances so long as no Event of Default
has occurred) at any time levied or placed on the Collateral with respect to such Lender, (b) pay any insurance to the extent the
Loan Parties have failed to timely pay the same, (c) maintain guards where any Collateral is located if an Event of Default has
occurred and is continuing, and (d) obtain any record from any service bureau and pay such service bureau the cost thereof. All
costs and expenses incurred by either Lender in exercising its discretion under this Section 4.2 (c) will be part of
the Obligations, payable on each Lender’s demand and secured by the Collateral.

 

(d)            Neither
Lender shall have a duty of care with respect to the Collateral except that each Lender shall exercise reasonable care with respect to
the Collateral in such Lender’s custody. The Borrower agrees that neither Lender has any obligation to take steps to preserve rights
against any prior parties.

 

(e)            At
any time and from time to time, either Lender, in its own name or in the name of others, may periodically communicate with the Borrower’s
Account Debtors, customers and other obligors to verify with them, to such Lender’s satisfaction, the existence, amount and terms
of any sums owed by such Account Debtors, customers or other obligors to the Borrower and the nature of any such Account Debtor’s,
customer’s or other obligor’s relationship with the Borrower.

 

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(f)            If
any Loan Party shall at any time hold or acquire a Commercial Tort Claim, the Borrower shall immediately notify Lender in a writing signed
by the Borrower of the particulars thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof,
all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to Lender.

 

Section 4.3.            Power
of Attorney.

 

(a)            The
Borrower does hereby make, constitute and appoint each Lender (or any officer or agent of either Lender) as the Borrower’s true
and lawful attorney-in-fact, with full power of substitution, in the name of the Borrower or in the name of such Lender or otherwise,
for the use and benefit of such Lender, but at the cost and expense of the Borrower, (a) to indorse the name of the Borrower on
any instruments, notes, checks, drafts, money orders, or other media of payment (including payments payable under any policy of insurance
on the Collateral) or Collateral that may come into the possession of such Lender or any Affiliate of Lender in full or part payment
of any of the Obligations; (b) upon the occurrence and during the continuance of any Event of Default, to sign and indorse the name
of the Borrower on any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with any Collateral, and any instrument or document relating thereto or to any of the Borrower’s
rights therein; (c) to file financing statements pursuant to the UCC and other notices appropriate under applicable law as such
Lender deems necessary to perfect, preserve, and protect such Lender’s rights and interests under any Security Document; (d) upon
the occurrence of an Event of Default, to obtain the insurance referred to in this Agreement and endorse any drafts and cancel any insurance
so obtained by such Lender; (e) upon the occurrence and during the continuance of any Event of Default, to give written notice to
the United States Post Office to effect change(s) of address so that all mail addressed to the Borrower may be delivered directly
to such Lender; and (f) to do any and all things necessary or desirable to perfect such Lender’s security interest in, and
Lien on, and other rights and interests in, the Collateral, to preserve and protect the Collateral and to otherwise carry out this Agreement.

 

(b)            This
power of attorney, being coupled with an interest, will be irrevocable for the term of this Agreement and all transactions under this
Agreement and thereafter so long as any of the Obligations remain in existence. The Borrower ratifies and approves all acts of such attorney,
and neither Lender nor their respective attorneys will be liable for any acts or omissions or for any error of judgment or mistake of
fact or law. The Borrower will execute and deliver promptly to each Lender all instruments necessary or desirable, as determined in such
Lender’s discretion, to further Lender’s exercise of the rights and powers granted it in this Section 4.3.

 

Section 4.4.            Lender’s
Additional Rights Regarding Collateral. In addition to Lenders’ other rights and remedies under the Loan Documents, the Lenders
may, in their discretion exercised in good faith, following the occurrence and during the continuance of any Event of Default: (a) exchange,
enforce, waive or release any of the Collateral or portion thereof, (b) apply the proceeds of the Collateral against the Obligations
and direct the order or manner of the liquidation thereof (including any sale or other disposition), as Lenders may, from time to time,
in each instance determine, and (c) settle, compromise, collect or otherwise liquidate any such security in any manner without affecting
or impairing its right to take any other further action with respect to any security or any part thereof.

 

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ARTICLE 5

 

REPRESENTATIONS
AND WARRANTIES

 

To induce the Lender to make
the requested Loans hereunder, the Borrower represents and warrants to the Lender that the following are true, correct and complete:

 

Section 5.1.            Organization,
Standing, Qualification, Etc. of Borrower. The Borrower is a corporation duly formed and validly existing and in good standing under
the laws of the State of Minnesota and has all requisite power and authority to own its properties and to carry on its business as now
conducted, to enter into this Agreement and the other Loan Documents to which the Borrower is a party and to perform its obligations
hereunder and thereunder. This Agreement and the other Loan Documents to which the Borrower is a party have been duly authorized by all
necessary company action and when executed and delivered will be the legal, valid and binding obligations of the Borrower. The execution,
delivery and performance of this Agreement, the Notes and the other Loan Documents to which the Borrower is a party will not violate
the Borrower’s Organizational Documents or any law applicable to the Borrower, and will not violate or cause a default under or
permit acceleration of any agreement to which the Borrower is a party or by which it is bound. Except for consents, approvals and exemptions
previously obtained (copies of which have been delivered to the Lender), no approval of or exemption by any Person is required in connection
with the Borrower’s execution, delivery and performance of this Agreement, the Notes and the other Loan Documents to which it is
a party. To the Borrower’s knowledge, it is not in default (beyond any applicable grace period) in the performance of any agreement,
order, writ, injunction, decree or demand to which it is a party or by which it is bound.

 

Section 5.2.            Ownership
and Liens. The Borrower owns good and marketable fee title to the Collateral free from all Liens, other than Permitted Encumbrances.

 

Section 5.3.            Governmental
Authorizations. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental
Authority is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower
of this Agreement or any other Loan Document except for recordings and filings in connection with the Liens granted to Lender under the
Security Documents and those obtained or made on or prior to the Closing Date.

 

Section 5.4.            Taxes.
The Borrower has filed all federal, state and other income and other tax returns required to be filed, if any, which returns properly
reflect taxes owed by the Borrower for the period covered thereby and the Borrower has paid or made appropriate provisions for the payment
of all taxes which may become due pursuant to said returns and for the payment of all present installments of any assessments, fees and
other governmental charges upon the Borrower or upon any of its property, except for such returns for which the failure to file, and
such taxes for which the failure to pay, could not reasonably be expected to result in a Material Adverse Effect.

 

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Section 5.5.            SEC
Reports, Financial Statements and No Material Adverse Change.

 

(a)            SEC
Reports; Financial Statements. Borrower has filed all reports, schedules, forms, statements and other documents required to be
filed by Borrower under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
since January 1, 2016 (or such shorter period as Borrower was required by law or regulation to file such material) (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the
 “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any
untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading. Borrower has not been an issuer subject
to Rule 144(i) under the Securities Act since January 1, 2016. The financial statements of Borrower included in the SEC
Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with GAAP, except
as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not
contain all footnotes required by GAAP, and fairly present in all material respects the financial position of Borrower and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the
case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(b)            Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, there has been no event, occurrence or development that has had or that could reasonably be expected to result
in a Material Adverse Effect, (ii) Borrower has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not
required to be reflected in Borrower’s financial statements pursuant to GAAP or disclosed in filings made with the Commission,
(iii) Borrower has not altered its method of accounting, (iv) Borrower has not declared or made any dividend or distribution
of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) Borrower has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Borrower
stock option plans. Borrower does not have pending before the Commission any request for confidential treatment of information. Except
for the entry into the Loan Documents and the issuance of the Shares contemplated by this Agreement, no event, liability, fact, circumstance,
occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to Borrower or its business,
prospects, properties, operations, assets or financial condition, that would be required to be disclosed by Borrower under applicable
securities laws on the date of this Agreement that has not been publicly disclosed.

 

(c)            Sarbanes-Oxley;
Internal Accounting Controls. Borrower is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of
2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder
that are effective as of the date hereof and as of the date of each Loan. Except as set forth in the SEC Reports, Borrower maintains
a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Borrower has established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for Borrower and designed such disclosure
controls and procedures to ensure that information required to be disclosed by Borrower in the reports it files or submits under the
Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and
forms. Borrower’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of Borrower as
of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”). Borrower presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since
the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange
Act) that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of Borrower.

 

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Section 5.6.            Litigation.
There are no actions, suits or proceedings pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower
or the Collateral which, if determined adversely to the Borrower or Collateral, could reasonably be expected to result in a Material
Adverse Effect. Neither the Borrower nor the Collateral is in violation of any Governmental Requirement where such violation could reasonably
be expected to result in a Material Adverse Effect.

 

Section 5.7.            Ventures,
Subsidiaries and Affiliates; Outstanding Capital Stock. Except as set forth in Schedule 5.7, as of the Closing Date,
the Borrower does not have any Subsidiaries, nor is the Borrower engaged in any joint venture or partnership with any other Person, or
an Affiliate of any other Person. All issued and outstanding Capital Stock of the Borrower is duly authorized and validly issued, fully
paid, non-assessable, and free and clear of all Liens except for Permitted Encumbrances. Except as set forth in Schedule 5.7,
there are no pre-emptive or other outstanding rights to purchase, options, warrants or similar rights or agreements pursuant to which
the Borrower may be required to issue, sell, repurchase or redeem any of its Capital Stock.

 

Section 5.8.            Employee
Benefit Plans. Except as disclosed in the SEC Reports: (a) the Borrower does not have an employee benefit plan as defined in
Section 3(1) of ERISA, whether or not subject to ERISA (a “Plan”); (b) no assets of the Borrower constitute
assets of any plan under ERISA regulations or rulings; (c) with respect to any plan that the Borrower sponsors, participates in
or has fiduciary duties with respect to, the Borrower has materially complied with all federal and state laws, plan documents and funding
requirements; (d) the Borrower does not sponsor, participate in, or have fiduciary duties with respect to any defined benefit pension
plan subject to Title IV of ERISA or any multi-employer pension plan as defined in Section 3(37)(A) of ERISA or any plan providing
medical or other welfare benefits to retirees or other former employees (except as required by federal or state law); and (e) the
Borrower is not (and has not ever been) a member of a group of trades or businesses (whether or not incorporated) that is treated as
a single employer under Section 414 of the Internal Revenue Code.

 

Section 5.9.            Investments
and Investment History. Schedule 5.9 sets forth the Investments of Borrower made since January 1, 2019, together
with any defaults or noncompliance by the issuer thereof since the inception of each Investment. No current Investment is in default,
and the Borrower has no knowledge of any facts that would reasonably cause any Investment to be in default or noncompliance now or in
the future.

 

Section 5.10.            Intentionally
Omitted.

 

Section 5.11.            Solvency.
On the Closing Date, after giving effect to the consummation of the transactions contemplated by the Loan Documents and the payment of
all costs and expenses payable in connection therewith, (a) the present saleable value of the assets of the Borrower is in excess
of the total amount of its liabilities (including for purposes of this definition all liabilities, whether or not reflected on a balance
sheet prepared in accordance with GAAP, and whether direct or indirect, fixed or contingent, secured or unsecured, disputed or undisputed);
and (b) the Borrower will be able to pay its debts and obligations as they mature in the ordinary course of its business; and (c) the
Borrower does not have unreasonably small capital to carry out its business. For the purpose of this Section 5.11, “present
fair saleable value” means the value which would be realized from an interested purchaser aware of all relevant information relating
to the assets or group of assets being sold and who is willing to purchase under ordinary selling conditions in an existing and not theoretical
market if the assets or group of assets are disposed within a period of six months to one year.

 

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Section 5.12.            Properties.
As of the Closing Date, Schedule 5.12 sets forth the address of each parcel of real property that is owned or leased by
the Borrower. Each of such leases and subleases is valid and enforceable in accordance with its terms and is in full force and effect,
and no default by any party to any such lease or sublease exists. Each of the Loan Parties and its Subsidiaries has good and indefeasible
title to, or valid leasehold interests in, all of its real and personal property, free of all Liens other than Permitted Encumbrances.

 

Section 5.13.            Purpose
of Loan. The Borrower has requested and is using the Loan for business purposes to make Investments, and not for any agricultural
or consumer purpose.

 

Section 5.14.            Jurisdiction
of Organization; Chief Executive Office; Etc. Schedule 5.14 lists the Borrower’s exact legal name, jurisdiction
of organization, federal tax identification number, organizational identification number, if any, the location of the Borrower’s
chief executive office or sole place of business, and all jurisdictions of organization and legal names of the Borrower for the five
years preceding the Closing Date.

 

Section 5.15.            Locations
of Collateral and Books and Records. Schedule 5.15 lists each location where the Borrower keeps the Collateral and
books and records concerning the Collateral or conducts any of its business.

 

Section 5.16.            No
Defaults under Loan Documents or Other Agreements. There is no Default or Event of Default by the Borrower under any Loan Document
or any default or event of default (however denominated) under any other document to which the Borrower is a party and which relates
to any Indebtedness of the Borrower to the Lender or any other lender.

 

Section 5.17.            No
Violation of Other Agreements or Laws. The execution, delivery and/or performance of the Loan Documents will not (a) result
in any breach of or constitute a default under any lease, bank loan, credit agreement, or other instrument to which the Borrower is a
party, (b) violate or contravene any provision of the Borrower’s Organizational Documents, or (c) violate any Governmental
Requirement by which the Borrower may be bound or affected.

 

Section 5.18.            Guarantees
and Contingent Obligations. Other than obligations arising in the ordinary course of business from the endorsement of negotiable
instruments for deposit or collection (or similar transactions), the Borrower has no Contingent Obligations.

 

Section 5.19.            Additional
Securities Related Representations.

 

(a)            Issuance
of the Shares. The Shares are duly authorized and, when issued in accordance with the terms of this Agreement, will be duly and
validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Borrower. Borrower has reserved from its duly
authorized capital stock a number of shares of Borrower common stock for issuance of the Shares at least equal to the Required Minimum
on the date hereof.

 

(b)            Registration
Rights. Other than each of the Lenders, no person has any right to cause Borrower to effect the registration under the Securities
Act of any securities of Borrower.

 

(c)            Listing
and Maintenance Requirements. Borrower’s common stock is registered pursuant to Section 12(b) or 12(g) of
the Exchange Act, and Borrower has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating
the registration of Borrower’s common stock under the Exchange Act nor has Borrower received any notification that the Commission
is contemplating terminating such registration. Borrower has not, in the 12 months preceding the date hereof, received notice from any
trading market on which Borrower’s common stock is or has been listed or quoted to the effect that Borrower is not in compliance
with the listing or maintenance requirements of such trading market. Borrower is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible
for electronic transfer through the Depository Trust Company or another established clearing corporation and Borrower is current in payment
of the fees to the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer.

 

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(d)            No
Disqualification Events. With respect to Shares to be offered and sold hereunder in reliance on Rule 506 under the Securities
Act, none of Borrower, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of Borrower participating
in the offering hereunder, any beneficial owner of 20% or more of Borrower’s outstanding voting equity securities, calculated on
the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with Borrower
in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered Persons”)
is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities
Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3).
Borrower has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. Borrower
has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Lenders a copy
of any disclosures provided thereunder.

 

ARTICLE 6

 

Affirmative
COVENANTS

 

Until the Revolving Commitment
of both Lenders is terminated and all Obligations, other than contingent indemnification Obligations for which no claim giving rise thereto
has been asserted, have been paid in full, the Borrower covenants and agrees as follows:

 

Section 6.1.            Financial
Statements and SEC Reports.

 

(a)            Borrower
shall file all reports, schedules, forms, statements and other documents required to be filed by Borrower under the Securities Act and
the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof (the “Future SEC Reports”),
on a timely basis pursuant to such acts (subject to valid extensions of such time and filing of such documents prior to the expiration
of any such extension). As of their respective dates, the Future SEC Reports shall comply in all material respects with the requirements
of the Securities Act and the Exchange Act, as applicable, and none of the Future SEC Reports, when filed, will contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. Borrower shall not become an issuer subject to Rule 144(i) under
the Securities Act. The financial statements of Borrower included in the Future SEC Reports shall comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time
of filing. Such financial statements shall be prepared in accordance with GAAP, except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly
present in all material respects the financial position of Borrower and its consolidated Subsidiaries as of and for the dates thereof
and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments.

 

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(b)            The
Borrower shall furnish, or caused to be furnished, to the Lenders:

 

		(i)	all Future SEC Reports, copies of all
                                            registration statements of any Loan Party filed with the Commission (other than on Form S-8),
                                            and copies of all proxy statements or other communications made to Borrower’s security
                                            holders generally, promptly upon the filing or sending thereof.

 

		(ii)	a compliance certificate of the Borrower’s
                                            chief financial officer, in the form of Exhibit A or such other form as
                                            the Lender from time to time require, dated the date of the periodic Future SEC Reports to
                                            be furnished pursuant to paragraph (i) above.

 

		(iii)	Immediately upon any officer of the
                                            Borrower becoming aware of any Default or Event of Default, a written notice describing the
                                            nature thereof and what action the Borrower proposes to take with respect thereto.

 

		(iv)	Immediately upon becoming aware of the
                                            occurrence thereof, written notice of any violation as to any Environmental Law by the Borrower
                                            or of the commencement of any material judicial or administrative proceeding relating to
                                            health, safety or environmental matters, which could reasonably be expected to result, either
                                            individually or in the aggregate, in a Material Adverse Effect, immediately upon becoming
                                            aware of the occurrence thereof.

 

		(v)	From time to time, such other information
                                            regarding the business, operation and financial condition of each Loan Party and the Collateral
                                            as any Lender may reasonably request, including annual verification of insurance coverage
                                            and semi-annual verification of property tax and assessment payment.

 

Section 6.2.            Books
and Records. The Borrower shall keep adequate and proper records and books of account in which full and correct entries shall be
made of its dealings, business and affairs.

 

Section 6.3.            Inspection.
The Borrower shall permit any Person designated by either Lender (a) to visit and inspect any of the properties as well as the books
and financial records of the Borrower, (b) to conduct field examinations and evaluate and make physical verifications of the Collateral
in any manner and through any medium that the Lender considers advisable, (c) to examine and to make copies of the books of accounts
and other financial records of the Borrower, and (d) to discuss the affairs, finances and accounts of the Borrower with its officers
at such reasonable times and intervals as the Lender may designate, all of which shall be at the expense of the Borrower.

 

Section 6.4.            Existence.
The Borrower shall maintain its existence in good standing under the laws of the jurisdiction of its formation and its qualification
to transact business in each jurisdiction where failure to so qualify could reasonably be expected to result in a Material Adverse Effect.

 

Section 6.5.            Notice
of Litigation. The Borrower shall give prompt written notice to the Lender of (a) the commencement of any action, suit, litigation
or proceeding before any court or arbitrator or any governmental department, board, agency or other instrumentality affecting the Borrower
or any property of the Borrower or to which the Borrower is a party and (b) the rendering of a judgment or decision in such action,
suit, litigation or proceeding, which in either of (a) or (b) above could reasonably be expected to result, whether individually
or in the aggregate, in a Material Adverse Effect.

 

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Section 6.6.            Insurance.
The Borrower shall maintain, or cause to be maintained, with financially sound and reputable insurers, such public liability insurance,
third party property damage insurance, business interruption insurance and casualty insurance with respect to liabilities, losses or
damage in respect of the assets, properties and businesses of the Borrower as may customarily be carried or maintained under similar
circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles,
covering such risks and otherwise on such terms and conditions satisfactory to Lender in its commercially reasonable discretion. Each
such policy of insurance shall (a) name the Lender as an additional insured thereunder as its interests may appear, (b) include
waiver of subrogation, (c) provide that such insurance is primary and will not seek contribution from any other insurance available
to the Lenders and (d) in the case of each casualty insurance policy, contain a lender’s loss payable clause and mortgagee
clause (or be endorsed to the same effect), satisfactory in form and substance to the Lenders, that names the Lenders as the “mortgagee”
and “lenders loss payable” thereunder, and copies of each such policy of insurance requested by the Lender shall be provided
to the Lender. The Borrower agrees to provide the Lenders with prompt notice of any material modification, notice of cancellation or
cancellation of any insurance policies required hereunder.

 

Section 6.7.            Payment
of Taxes and Claims; Escrow. The Borrower shall file all tax returns and reports which are required by law to be filed by it and
shall pay before they become delinquent, all taxes, assessments and governmental charges and levies imposed upon it or its property and
all claims or demands of any kind (including those of suppliers, mechanics, carriers, warehousemen, landlords and other like Persons)
which, if unpaid, might result in the creation of a Lien upon its property (collectively, “Impositions”), provided,
however, that such Impositions need not be paid if they are being contested in good faith by appropriate proceedings, and as
long as the Borrower’s title to its property is not materially adversely affected, its use of such property in the ordinary course
of its business is not materially interfered with and adequate reserves with respect thereto have been set aside on the Borrower’s
books in accordance with GAAP.

 

Section 6.8.            Compliance
with other Loan Documents. The Borrower shall promptly comply with all of the covenants and agreements of the Borrower which are
contained in the other Loan Documents and other easements, agreements and restrictions affecting the Collateral.

 

Section 6.9.            Compliance
with Laws. The Borrower shall comply, and cause each of its Subsidiaries to comply, with the requirements of all Governmental Requirements,
the noncompliance with which could have a Material Adverse Effect.

 

Section 6.10.            Piggy-Back
Registration.

 

(a)            Piggy-Back
Rights. If at any time Borrower proposes to file a Registration Statement under the Securities Act with respect to an offering
of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities, by
Borrower for its own account or for stockholders of Borrower for their account (or by Borrower and for stockholders of Borrower), other
than a Registration Statement on Form S-4 or S-8 or otherwise (i) filed in connection with any employee stock option or other
benefit plan, (ii) for an exchange offer or offering of securities solely to Borrower’s existing stockholders, (iii) for
an offering of debt that is convertible into equity securities of Borrower or (iv) for a dividend reinvestment plan, then Borrower
shall (x) give written notice of such proposed filing to the Lenders as soon as practicable but in no event less than ten (10) days
before the anticipated filing date, which notice shall describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering,
and (y) offer to the Lenders the opportunity to register the sale of such number of Registrable Securities as Lenders may request
in writing within ten (10) days following receipt of such notice (a “Piggy-Back Registration”). Borrower shall
cause such Registrable Securities to be included in such Registration Statement and shall use its reasonable best efforts to cause the
managing underwriter or underwriters of a proposed underwritten offering to permit the Registrable Securities requested to be included
in a Piggy-Back Registration on the same terms and conditions as any similar securities of Borrower and to permit the sale or other disposition
of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All holders of Registrable Securities
proposing to distribute their securities through a Piggy-Back Registration that involves an underwriter or underwriters shall enter into
an underwriting agreement in customary form with the underwriter or underwriters selected for such Piggy-Back Registration.

 

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(b)            Reduction
of Offering. If the Commission notifies Borrower, or the managing underwriter or underwriters for a Piggy-Back Registration that
is to be an underwritten offering advises Borrower and the holders of Registrable Securities in writing that the dollar amount or number
of securities which Borrower desires to sell, taken together with shares of Borrower common stock or other securities, if any, as to
which registration has been demanded or required pursuant to written contractual arrangements with Persons other than the Lenders, the
Registrable Securities as to which registration has been requested under this Section 6.10(b), and the shares of Borrower
common stock or other securities, if any, as to which registration has been requested pursuant to the written contractual piggy-back
registration rights of other stockholders of Borrower, exceeds the maximum dollar amount or maximum number of securities that can be
sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method, or the probability
of success of such offering, or the Commission otherwise requires that the number of such securities to be registered for sale pursuant
to such offering be reduced (such maximum dollar amount or maximum number of securities, as applicable, the “Maximum Number
of Securities”), then Borrower shall include in any such registration:

 

		(i)	If the registration is undertaken for
                                            Borrower’s account: (A) first, the shares of Borrower common stock or other securities
                                            that Borrower desires to sell that can be sold without exceeding the Maximum Number of Securities;
                                            (B) second, to the extent that the Maximum Number of Securities has not been reached
                                            under the foregoing clause (A), the shares of Borrower common stock or other securities,
                                            if any, that are Registrable Securities, if any, shall be included pro rata in accordance
                                            with the number of securities that each such Person has requested be included in such registration,
                                            regardless of the number of securities held by each such Person (such proportion is referred
                                            to herein as “Pro Rata”), to the extent they may be sold without exceeding
                                            the Maximum Number of Securities; (C) third, to the extent that the Maximum Number of
                                            Securities has not been reached under the foregoing clauses (A) and (B), the shares
                                            of Borrower common stock or other securities for the account of other persons that Borrower
                                            is obligated to register pursuant to written contractual piggy-back registration rights with
                                            such Persons; and

 

		(ii)	If the registration is a “demand”
                                            registration undertaken at the demand of persons other than the Lenders pursuant to written
                                            contractual arrangements with such Persons, (A) first, the shares of Borrower common
                                            stock or other securities for the account of the demanding persons that can be sold without
                                            exceeding the Maximum Number of Securities; (B) second, to the extent that the Maximum
                                            Number of Securities has not been reached under the foregoing clause (A), the shares of Borrower
                                            common stock or other securities that Borrower desires to sell that can be sold without exceeding
                                            the Maximum Number of Securities; (C) third, to the extent that the Maximum Number of
                                            Securities has not been reached under the foregoing clauses (A) and (B), the shares
                                            of Borrower common stock or other securities, if any, that are Registrable Securities, if
                                            any, shall be included Pro Rata; and (D) fourth, to the extent that the Maximum Number
                                            of Securities has not been reached under the foregoing clauses (A), (B) and (C), shares
                                            of Borrower common stock or other securities for the account of other persons that Borrower
                                            is obligated to register pursuant to written contractual piggy-back registration rights with
                                            such Persons.

 

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(c)            Withdrawal.
Any Lender may elect to withdraw such holder’s request for inclusion of Registrable Securities in any Piggy-Back Registration by
giving written notice to Borrower of such request to withdraw prior to the effectiveness of the Registration Statement. Borrower (whether
on its own determination or as the result of a withdrawal by persons making a demand pursuant to written contractual obligations) may
withdraw a Registration Statement that is not being filed to effect a Demand Registration at any time prior to the effectiveness of the
Registration Statement.

 

(d)            Expenses
of Registration; Indemnification.  All underwriting discounts and commissions attributable to the Registrable Securities
included in any registration attributable to the Piggy-Back Registration shall be borne by the applicable Lender.  The Borrower
shall bear any other expenses of registration (except for fees and expenses of counsel, if any, that the Lenders themselves may engage). 
Each of the Lenders agrees to cooperate with the Borrower (and, if applicable, the managing underwriter) in the preparation of the registration
statement and agrees to provide customary indemnification and contribution protection to the Borrower (and, if applicable, to the underwriter
or underwriters) for losses to the extent arising out of or based solely upon: any untrue or alleged untrue statement of a material fact
contained in any registration statement, any prospectus, or in any amendment or supplement thereto or in any preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any prospectus or supplement thereto, in light of the circumstances under which they were made)
not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information
so furnished in writing by such Lender to the Borrower expressly for inclusion in such registration statement or such prospectus or (ii) to
the extent, but only to the extent, that such information relates to such Lender’s information provided in a Selling Stockholder
Questionnaire or the proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by
such Lender expressly for use in a Registration Statement, such prospectus or in any amendment or supplement thereto.  In no event
shall the liability of a Lender be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Lender
in connection with any claim relating to this Section 6.10 and the amount of any damages such Lender has otherwise been required
to pay by reason of such untrue statement or omission) received by such Lender upon the sale of the Registrable Securities included in
the registration statement giving rise to such indemnification obligation.

 

Section 6.11.          Registration
Procedures. Borrower shall:

 

(a)            advise
each Lender within one (1) business day:

 

		(i)	when a registration statement or any amendment
                                            thereto has been filed with the Commission that includes any Registrable Securities (as amended
                                            from time to time, a “Registration Statement”) and when such Registration Statement
                                            or any post-effective amendment thereto has become effective;

 

		(ii)	of any request by the Commission for
                                            amendments or supplements to the Registration Statement or the prospectus included therein
                                            or for additional information with respect thereto;

 

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		(iii)	of the issuance by the Commission of
                                            any stop order suspending the effectiveness of the Registration Statement or the initiation
                                            of any proceedings for such purpose;

 

		(iv)	of the receipt by Borrower of any notification
                                            with respect to the suspension of the qualification of the Registered Securities included
                                            therein for sale in any jurisdiction or the initiation or threatening of any proceeding for
                                            such purpose; and

 

		(v)	if Borrower learns that any statement
                                            included in the Registration Statement or related prospectus is misleading and omits to state
                                            a material fact required to be stated therein or necessary to make the statements therein
                                            (in the case of a prospectus, in the light of the circumstances under which they were made)
                                            not misleading.

 

Notwithstanding anything to the contrary set forth
herein, Borrower shall not, when so advising Lenders of such events, provide Lenders with any material, nonpublic information regarding
Borrower;

 

(b)            use
Borrower’s commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of the Registration
Statement as soon as reasonably practicable;

 

(c)            upon
the occurrence of any event contemplated above, except for such times as Borrower is permitted hereunder to suspend, and has suspended,
the use of a prospectus forming part of the Registration Statement, Borrower shall use its commercially best efforts to as soon as reasonably
practicable prepare a post-effective amendment to such Registration Statement or a supplement to the related prospectus, or file any
other required document so that, as thereafter delivered to purchasers of the Registrable Securities included therein, such prospectus
will not include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading;

 

(d)            use
its commercially reasonable efforts to cause all the Registrable Securities to be listed on each securities exchange or market, if any,
on which equity securities issued by Borrower have been listed; and

 

(e)            use
its commercially reasonable efforts to take all other steps necessary to effect the registration of the Registrable Securities as part
of the Registration Statement.

 

(f)            notwithstanding
any termination of this Agreement, indemnify, defend and hold harmless each Lender (to the extent a seller under any Registration Statement),
the officers, directors, agents, partners, members, managers, stockholders, affiliates, employees and investment advisers of each of
them, each person who controls each Lender (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and the officers, directors, partners, members, managers, stockholders, agents, affiliates, employees and investment advisers of
each such controlling person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, demands,
suits, actions, judgments, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses
(collectively, “Losses”), as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement
of a material fact contained in any Registration Statement, any prospectus included in any Registration Statement or any form of prospectus
or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus
or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, or (ii) any
violation or alleged violation by Borrower of the Securities Act, Exchange Act or any state securities law or any rule or regulation
thereunder, in connection with the performance of its obligations under this Section 6.11, except to the extent, but only
to the extent, that such untrue statements, untrue statements, omissions or omissions are based upon information regarding a Lender furnished
in writing to Borrower by such Lender expressly for use therein. Borrower shall notify each Lender promptly of the institution, threat
or assertion of any proceeding arising from or in connection with the transactions contemplated by this Section 6.11 of which
Borrower is or becomes aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf
of an indemnified party and shall survive the transfer of the Registrable Securities by any Lender.

 

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(g)            Prior
to any resale of Registrable Securities by a Lender, use its best efforts to register or qualify or cooperate with the Lenders in connection
with the registration or qualification (or exemption from the Registration or qualification) of such Registrable Securities for the resale
by the Lenders under the securities or Blue Sky laws of such jurisdictions within the United States as any Lender reasonably requests
in writing, to keep each registration or qualification (or exemption therefrom) effective until such securities are no longer Registrable
Securities, and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable
Securities covered by each Registration Statement, provided that Borrower shall not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified, subject Borrower to any material tax in any such jurisdiction where it is not then
so subject or file a general consent to service of process in any such jurisdiction.

 

(h)            If
requested by a Lender, cooperate with such Lender to facilitate the prompt and timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free of all
restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Lender
may request.

 

Section 6.12.            Further
Assurances.

 

(a)            Promptly
upon request by either Lender, the Borrower shall take such additional actions and execute such documents as the Lenders may reasonably
require from time to time in order (i) to carry out more effectively the purposes of this Agreement or any other Loan Document,
(ii) to subject to the Liens created by the Security Documents any of the properties, rights or interests covered by the Security
Documents, (iii) to perfect and maintain the validity, effectiveness and priority of any of the Liens intended to be created by
the Security Documents, and (iv) to better assure, convey, grant, assign, transfer, preserve, protect and confirm to the Lenders
the rights granted or now or hereafter intended to be granted to the Lender under any Loan Document.

 

(b)            The
Borrower shall cause each of its Subsidiaries, if any, to guaranty the Obligations and to grant to the Lenders a security interest in,
subject to the limitations set forth herein and in the other Security Documents, all of such Subsidiary’s property to secure such
guaranty.

 

(c)            The
Borrower hereby grants, and shall cause each of its Subsidiaries, if any, to grant, to Lenders, to the extent assignable, an irrevocable,
non-exclusive license (exercisable without payment of royalty or other compensation to the Borrower or any other Person) to use, assign,
license or sublicense any patents, trademarks, copyrights and all other intellectual property now owned (or licensed to) or hereafter
acquired by the Borrower, wherever the same may be located, including in such license access to all media in which any of the licensed
items may be recorded or stored and to all computer programs used for the compilation or printout thereof.

 

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Section 6.13.            Claims
Against Collateral. The Borrower shall maintain, and shall cause each of its Subsidiaries to maintain, the Collateral free and clear
of all Liens, except to the extent, if any, of the Permitted Encumbrances. The Borrower shall defend or cause to be defended the Collateral
against all of the claims and demands of all Persons whomsoever (except to the extent, if any, of the Permitted Encumbrances).

 

Section 6.14.            Net
Asset Value Covenant. The Borrower shall maintain its ratio of Net Asset Value to Revolving Exposure to be at least 2.0 to 1.0 at
all times.

 

Section 6.15.            Board
Review of Investments. Borrower’s officers shall, at the next meeting of Borrower’s Board of Directors, and in any event
within 120 days of this Agreement, propose an Investment Review Policy to Borrower’s Board of Directors in which, among other things,
such Board of Directors, or a committee comprised of independent directors thereof, would review the terms of any Investments that would
exceed 10% of the Net Asset Value of Borrower if made.

 

ARTICLE 7

 

NEGATIVE
COVENANTS

 

Until the Revolving Commitment
is terminated and all Obligations, other than contingent indemnification Obligations for which no claim giving rise thereto has been
asserted, have been paid in full, the Borrower covenants and agrees as follows:

 

Section 7.1.            Merger
and Name; Changes in Accounting, Name or Jurisdiction. The Borrower shall not:

 

(a)            (i) merge
or consolidate, or enter into any analogous reorganization or transaction with any Person, (ii) liquidate, wind up or dissolve itself
(or suffer any liquidation or dissolution), (iii) form any Subsidiaries, (iv) permit any other Person to merge into it, or
(v) acquire all or a substantial part of the assets of any other Person;

 

(b)            Make
any significant change in accounting treatment or reporting practices, except as required by GAAP;

 

(c)            Change
the fiscal year or method for determining fiscal quarters of the Borrower; (c) change its legal name as it appears in official filings
in its jurisdiction of organization; or

 

(d)            Change
its (i) jurisdiction of organization, (ii) chief executive office, (iii) principal place of business, or (iv) other
places of business, or open any new places of business, in the case of subclauses (c) or (d), without at least 30
days’ prior written notice to Lenders and the acknowledgement of Lenders that all actions required by Lenders, including those
to continue the perfection of its Liens, to the extent applicable, have been completed.

 

Section 7.2.            Executive
Compensation. The Borrower shall not modify compensation of the officers of Borrower without the approval of each of Borrower’s
Compensation Committee and Board of Directors.

 

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Section 7.3.            Sale
or Lease of Assets. The Borrower shall not directly or indirectly, sell, lease, assign, convey, transfer or otherwise dispose of
(whether in one transaction or a series of transactions) all or any portion of the Collateral, or enter into any agreement to do any
of the foregoing, except:

 

(a)            Sales,
transfers and dispositions of (i) Inventory in the ordinary course of business and (ii) used, obsolete, worn out or surplus
Equipment or property in the ordinary course of business;

 

(b)            Dispositions
resulting from any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding
of, any property or asset of Borrower; and

 

(c)            Non-exclusive
licenses and sublicenses granted by the Borrower and leases or subleases (by the Borrower as lessor or sublessor) to third parties in
the ordinary course of business not interfering with the business of the Borrower and to the extent permitted by the Security Documents.

 

Section 7.4.            Distributions.
The Borrower shall not make any distribution to any holder of any of its Capital Stock of the Borrower, or redeem, repurchase or otherwise
acquire or retire the interest of any holder of any Capital Stock of the Borrower, except that the Borrower may make distributions to
its shareholders provided that no Default or Event of Default shall exist before or after giving effect to such distribution or be created
as a result thereof.

 

Section 7.5.            Contingent
Obligations. The Borrower shall not (a) endorse, guarantee, contingently agree to purchase or to provide funds for the payment
of, or otherwise become contingently liable upon, any Indebtedness of any other Person, except by the endorsement of negotiable instruments
for deposit or collection (or similar transactions) in the ordinary course of business, or (b) agree to maintain the net worth or
working capital of, or provide funds to satisfy any other financial test applicable to, any other Person.

 

Section 7.6.            Loans
and Investments. The Borrower shall not (a) purchase or acquire, or make any commitment to purchase or acquire any Capital Stock,
or any obligations or other securities of, or any interest in, any Person, including the establishment or creation of a Subsidiary, or
(b) make or commit to make any acquisition of a material portion of the assets of another Person, or of any business or division
of any Person, including without limitation, by way of merger, consolidation or other combination or (c) make or purchase, or commit
to make or purchase, any advance, loan, extension of credit or capital contribution to or any other investment in any Person including
the Borrower, any Affiliate of the Borrower or any Subsidiary of the Borrower, except for:

 

(a)            Investments
in cash and Cash Equivalents;

 

(b)            Investments
acquired in connection with the settlement of delinquent Accounts in the ordinary course of business or in connection with the bankruptcy
or reorganization of suppliers or customers;

 

(c)            Investments
existing on the date of this Agreement and set forth in Schedule 5.9; and

 

(d)            Loans
or advances to third parties in the ordinary course of Borrower’s business.

 

Section 7.7.            Indebtedness.
The Borrower shall not incur, create, issue, assume or suffer to exist any Indebtedness, except:

 

(a)            Indebtedness
owing to the Lenders;

 

(b)            Indebtedness
existing on the date of this Agreement and disclosed on Schedule 7.7 hereto; and

 

(c)            Current
liabilities, other than for borrowed money, incurred in the ordinary course of business.

 

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Section 7.8.            Liens.
The Borrower shall not create, incur, assume or suffer to exist any Lien on any property or asset now owned or hereafter acquired by
the Borrower, except (collectively, the “Permitted Encumbrances”):

 

(a)            Liens
granted to the Lender;

 

(b)            Liens
existing on the Closing Date, all of which are disclosed on Schedule 7.8 hereto;

 

(c)            Liens
for taxes, fees, assessments and governmental charges that are not delinquent or are being contested in good faith pursuant to Section 6.7;
and

 

(d)            Liens
of carriers, warehousemen, mechanics and materialmen, and other like Liens arising in the ordinary course of business, for sums not due.

 

Section 7.9.            Nature
of Business. The Borrower shall not engage in any line of business or operation materially different from that presently engaged
in by the Borrower.

 

Section 7.10.            Capital
Structure. The Borrower shall not make any material changes in its equity capital structure or amend any of its Organizational Documents
in any material respect or, in each case, in any respect adverse to the Lenders.

 

Section 7.11.            Affiliate
Transactions. The Borrower shall not enter into any transaction with any Affiliate of Borrower, except:

 

(a)            As
expressly permitted by this Agreement; and

 

(b)            In
the ordinary course of business and pursuant to the reasonable requirements of the business of the Borrower upon fair and reasonable
terms no less favorable to the Borrower than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate
of the Borrower.

 

ARTICLE 8

 

EVENTS
OF DEFAULT AND REMEDIES

 

Section 8.1.            Events
of Default. The occurrence of any one or more of the following events shall constitute an Event of Default:

 

(a)            The
Borrower shall fail to make when due, whether by acceleration or otherwise, any payment of principal of or interest on the Notes or payment
of any other Obligations.

 

(b)            Any
representation or warranty made by or on behalf of any Loan Party in this Agreement or any other Loan Document or by or on behalf of
any Loan Party in any certificate, statement, report or document herewith or hereafter furnished to the Lender pursuant to this Agreement
or any of the other Loan Documents shall prove to have been false or misleading in any material respect on the date as of which the facts
set forth are stated or certified.

 

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(c)            A
default occurs in the performance of (i) the Borrower’s obligations in Article 6 or 7 hereof, or under any provision
of the Security Documents or (ii) any other Loan Party’s obligations under any Loan Document to which it is a party.

 

(d)            A
sale, transfer, conveyance or encumbrance of the Collateral or any part thereof or of all or any part of the Borrower’s interest
therein in violation of any of the Loan Documents shall occur.

 

(e)            (i) There
is filed by any Loan Party any case, petition, proceeding or other action (“Bankruptcy Case”) under any existing or
future bankruptcy, insolvency, reorganization, liquidation or arrangement or readjustment of debt law or any similar existing or future
law of any applicable jurisdiction, including the Bankruptcy Code (“Insolvency Law”), (ii) an involuntary Bankruptcy
Case (“Involuntary Proceeding”) is commenced against any Loan Party under any Insolvency Law and the Involuntary Proceeding
is not controverted within 10 days, or is not dismissed within 30 days, after the commencement of the Bankruptcy Case, or (iii) a
custodian, receiver, trustee, sequestrator, or agent is appointed or authorized to take charge of any of any Loan Party’s properties.

 

(f)            A
judgment or judgments for the payment of money in excess of the sum of $100,000.00, individually or in the aggregate, shall be rendered
against any Loan Party and either (i) the judgment creditor executes on such judgment or (ii) such judgment remains unpaid
or undischarged for more than 30 days from the date of entry thereof or such longer period during which execution of such judgment shall
be stayed during an appeal from such judgment.

 

(g)            A
breach, default or event of default (however denominated) occurs under the terms of (i) any other Indebtedness of any Loan Party
to the Lender (or its affiliates), whether any such Indebtedness is now existing or hereafter arises and whether direct or indirect,
due or to become due, absolute or contingent, primary or secondary or joint or joint and several, or (ii) any Indebtedness of any
Loan Party to any Person other than the Lender in the aggregate principal amount of $100,000.00 or more.

 

(h)            Any
execution or attachment shall be issued whereby any substantial part of the property of any Loan Party shall be taken or attempted to
be taken and the same shall not have been vacated or stayed within 30 days after the issuance thereof.

 

(i)            Any
Loan Document shall not be, or shall cease to be, binding and enforceable in accordance with its terms, or the Lender shall cease to
have a first priority security interest and lien in the Collateral, any other collateral securing the Loan, or any part thereof.

 

(j)            Any
event occurs which is denominated as a “Default” or an “Event of Default” in any other section of this Agreement
or in any of the other Loan Documents.

 

(k)            A
Change of Control shall occur or any event occurs or condition exists that has a Material Adverse Effect.

 

(l)            Any
Loan Party shall default in the performance or observance of any agreement, covenant or condition required to be performed or observed
by such Loan Party under the terms of this Agreement or any other Loan Documents, other than an Event of Default described in Section 8.1(a) through
(k) above, which default, if curable, continues for 30 days after the earlier of (i) receipt of notice of such default
by the Borrower from the Lender, or (ii) the date on which an officer of the Borrower becomes aware of such default.

 

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Section 8.2.            Remedies.
Upon the occurrence and during the continuance of any Event of Default, Lender may:

 

(a)            Declare
all or any portion of the Revolving Commitment to be suspended or terminated, whereupon the Revolving Commitment shall forthwith be suspended
or terminated;

 

(b)            Declare
all or any portion of the Obligations to be immediately due and payable; without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by each Loan Party;

 

(c)            Take
possession of the Collateral and maintain such possession on the Borrower’s premises at no cost to Lender, or remove the Collateral,
or any part thereof, to such other place(s) as Lender may desire; enter any premises on which the Collateral, or any part or records
thereof, may be situated and remove the same therefrom, for which action no Loan Party will assert against Lender any claim for trespass,
breach of the peace or similar claim and no Loan Party will hinder Lender’s efforts to effect such removal;

 

(d)            Require
the Borrower, at its cost, to assemble the Collateral and make it available at a place designated by Lender;

 

(e)            Sell
part or all of the Collateral at public or private sale(s), for cash, upon credit or otherwise, at such prices and upon such terms as
Lender deems advisable, at Lender’s discretion, and Lender may, if Lender deems it reasonable, postpone or adjourn any sale of
the Collateral from time to time by an announcement at the time and place of sale or by announcement at the time and place of such postponed
or adjourned sale, without being required to give a new notice of sale, and without being obligated to make any sale of the Collateral
regardless of notice of sale having been given, and Lender may purchase any Collateral at such public or private sale(s) and, in
lieu of actual payment of the purchase price, may set off the amount of such price against the Obligations;

 

(f)            Require
Borrower, using such form as Lender may approve, to notify the Borrower’s customers, Account Debtors and any other Persons, and
to indicate on all of the Borrower’s correspondence to such customers, Account Debtors and other Persons, that the contracts and
General Intangibles must be paid to Lender directly;

 

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

 

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

 

(i)            Make
and adjust claims under insurance policies; and

 

(j)            Exercise
all other rights and remedies of the Lender under any of the Loan Documents and applicable law;

 

provided,
however, that upon the occurrence of any event specified in Section 8.1(e), the obligation of Lender to make
Loans shall automatically terminate and the unpaid amount of all outstanding Obligations shall automatically become due and payable without
further act of Lenders.

 

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Section 8.3.            Security
Agreement in Accounts and Setoff. As additional security for the payment of all of the Borrower’s Obligations, the Borrower
grants to the Lenders and any other holder of a Note a security interest in, a lien on, and an express contractual right to set off against,
each deposit account and all deposit account balances, cash and any other property of the Borrower now or hereafter maintained with or
for, or in the possession of, the Lenders or such holder of a Note. Upon the occurrence of any Event of Default, the Lenders or such
holder of a Note may: (a) refuse to allow withdrawals from any such deposit account; (b) apply the amount of such deposit account
balances and the other assets of the Borrower described above to the Obligations; and (c) offset any other obligation of the respective
Lender or such holder of a Note against the Obligations; all whether or not the Obligations are then due or have been accelerated and
all without any advance or contemporaneous notice or demand of any kind to the Borrower, such notice and demand being expressly waived.

 

Section 8.4.            Waivers
by Loan Parties. Each Loan Party acknowledges that portions of the Collateral could be difficult to preserve and dispose of and be
further subject to complex maintenance and management. Accordingly, the Lenders, in exercising their rights under this Article 8,
shall have the widest possible latitude to preserve and protect the Collateral and the Lender’s respective security interest in
and Lien thereon. Moreover, each Loan Party acknowledges and agrees that Lenders shall have no obligation to, and such Loan Party hereby
waives to the fullest extent permitted by law any right that it may have to require the Lenders to, (a) clean up or otherwise prepare
any of the Collateral for sale, (b) pursue any Person to collect any of the Obligations, or (c) exercise collection remedies
against any Persons obligated on the Collateral. Each Lender’s compliance with applicable local, state or federal law requirements,
in addition to those imposed by the UCC, in connection with a disposition of any or all of the Collateral will not be considered to adversely
affect the commercial reasonableness of any disposition of any or all of the Collateral under the UCC.

 

Section 8.5.            Notice
of Disposition; Allocations. If any notice is required by law to effectuate any sale or other disposition of the Collateral, (a) the
Lenders will give the applicable Loan Party written notice of the time and place of any public sale or of the time after which any private
sale or other intended disposition thereof will be made, and at any such public or private sale, the Lenders may purchase all or any
of the Collateral, and (b) the Lenders and each Loan Party agree that such notice will not be unreasonable as to time if given in
compliance with this Agreement ten days prior to any sale or other disposition. The proceeds of the sale will be applied first to all
costs and expenses of such sale including attorneys’ fees and other costs and expenses, and second to the payment of all Obligations
in the manner and order determined by the Lenders in their discretion. The Loan Parties shall remain liable to the Lenders for any deficiency.
Unless otherwise directed by law, the Lenders will return any excess to the Loan Parties.

 

Section 8.6.            Rights
Not Exclusive. The rights provided for in this Agreement and the other Loan Documents are cumulative and are not exclusive of any
other rights, powers, privileges or remedies provided by law or in equity, or under any other instrument, document or agreement now existing
or hereafter arising.

 

Section 8.7.            Equitable
Relief. Each Loan Party recognizes that, in the event such Loan Party fails to perform, observe or discharge any of its obligations
or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to Lenders; therefore, each Loan Party agrees
that Lenders, if Lenders so request, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity
of proving actual damages.

 

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ARTICLE 9

 

MISCELLANEOUS

 

Section 9.1.            Waiver,
Amendment and Cumulative Rights. No failure on the part of the Lenders or the holder of a Note to exercise and no delay in exercising
any power or right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise
of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The remedies herein
and in any other Loan Document are cumulative and not exclusive of any other rights and remedies which the Lenders would otherwise have
at law, in equity or by statute, and all such rights and remedies, together with the Lenders’ rights and remedies under the other
Loan Documents, are cumulative and may be exercised individually, concurrently, successively and in any order. No amendment, modification
or waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower therefrom shall be
effective unless the same shall be in writing and signed by the Lenders, and then such amendment, modifications, waiver or consent shall
be effective only in the specific instances and for the specific purpose for which given.

 

Section 9.2.            Costs,
Expenses and Taxes. The Borrower agrees, whether or not the Loan is made hereunder, to pay on demand: (a) all costs and expenses
of the Lenders (including the reasonable fees and expenses of counsel and paralegals for the Lender) incurred in connection with the
preparation, execution and delivery of the Loan Documents and the preparation, negotiation and execution of any and all amendments to
each thereof, including all due diligence undertaken in connection therewith, (b) all costs and expenses of the Lenders (including
the fees and expenses of counsel and paralegals for the Lenders) incurred in connection with the administration and the enforcement of
the Loan Documents and (c) (i) costs incurred in connection with appraisals and insurance reviews, field examinations and the
preparation of reports, based on the fees charged by a third party retained by Lenders or the internally allocated fees for each Person
employed by Lenders with respect to each field examination, (ii) background checks regarding senior management and/or key investors,
taxes, fees and other charges for (A) lien and title searches and (B) filing financing statements and continuations, and other
actions to perfect, protect, and continue Lender’s Liens (d) costs and expenses of preserving, protecting and insuring the
Collateral. The Borrower agrees to pay, and save the Lenders harmless from all liability for, any stamp or other taxes which may be payable
with respect to the execution or delivery of the Loan Documents. The obligations of the Borrower under this Section shall survive
any termination of this Agreement. All of the foregoing costs and expenses may be charged to the Borrower as Revolving Loans or to another
deposit account.

 

Section 9.3.            Indemnity.
The Borrower agrees to indemnify and hold the Lenders harmless from any loss or expense which may arise or be created by the acceptance
in good faith by the Lenders of telephonic or other instructions for making the Loan or disbursing the proceeds thereof. The Borrower
further agrees to defend, protect, indemnify, and hold harmless the Lenders, and their respective Affiliates, officers, directors, employees
and agents of each of the foregoing (each an “Indemnified Person”) from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including
the fees and disbursements of counsel to such Indemnified Persons) in connection with any investigative, administrative or judicial proceeding,
whether direct, indirect or consequential and whether based on any federal or state laws or other statutory regulations, including securities
and commercial laws and regulations, under common law or at equitable cause, or on contract or otherwise, the capitalization of the Borrower,
the making of, management of and participation in the Loan or the use or intended use of the proceeds of the Loan; provided, however,
that the Borrower shall have no obligation hereunder to an Indemnified Person with respect to any of the foregoing to the extent resulting
from the gross negligence or willful misconduct of such Indemnified Person as determined by a court of competent jurisdiction by final
and nonappealable judgment. The indemnity set forth herein shall be in addition to any other obligations or liabilities of the Borrower
to each Indemnified Person under the Loan Documents or at common law or otherwise. The obligations of the Borrower under this Section shall
survive any termination of this Agreement.

 

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Section 9.4.            Notices.
Except when telephonic notice is expressly authorized by this Agreement, any notice or other communication to any party in connection
with this Agreement shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered
mail or sent by e-mail, as follows:

 

(a)            If
to the Borrower, to the Borrower at:

 

Mill City Ventures III, Ltd.

1907 Wayzata Blvd, Suite 205

Wayzata, Minnesota
55391

 

Attention: Douglas M. Polinsky or Joseph
A. Geraci

E-mails: dp@millcityventures3.com;
jg@millcityventures3.com

 

(b)            If
to the Lenders, to the Lenders, as applicable, at:

 

Eastman Investment, Inc.

6655 W Sahara Suite B200

Las Vegas NV 89146

Attn: Darla Lieberman

E-mail: rwsabes@gmail.com

 

Lyle A. Berman Revocable Trust

One Hughes Center Dr.

Unit 606

Las Vegas, NV 89169

Attention: Lyle A. Berman, Trustee

 

and

 

Lyle A. Berman Revocable Trust

10275 Wayzata Blvd.

Suite 100

Minnetonka, MN 55305

Attention: Lyle A. Berman, Trustee

E-mail: LB@bermancc.com

 

All such notices and other communications shall
be deemed to have been given (i) when received, if delivered by hand, (ii) on the first Business Day after the date of sending
if sent by overnight courier, (iii) on the third Business Day after the date of mailing if mailed by certified or registered mail,
or (iv) when sent, if sent by e-mail. Any party hereto may change its address or e-mail address for notices and other communications
hereunder by notice to the other parties hereto.

 

Section 9.5.            Survival
of Representations. All representations and warranties contained in Article 5 and in the other Loan Documents shall survive
the delivery of the Notes and any investigation at any time made by or on behalf of the Lender shall not diminish its rights to rely
thereon.

 

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Section 9.6.            Successors.
This Agreement shall be binding upon the parties hereto and their respective successors and assigns, and shall inure to the benefit of
the parties hereto and the successors and assigns of each of the Lenders. The Borrower shall not assign its rights or duties hereunder
without the written consent of the Lenders.

 

Section 9.7.            Participations
and Information. The Lenders may at any time sell, assign or transfer one or more interests or participations in all or any part
of its rights or obligations in this Agreement (including all or a portion of its Revolving Commitment and the Loans owing to it) and/or
any of the other Loan Documents to any Person. The Lenders may furnish any information concerning the Borrower in the possession of the
Lender from time to time to Affiliates of the Lender in connection with banking business of the Lender or such Affiliates and to participants
and prospective participants and may furnish information in response to credit inquiries consistent with general banking practice.

 

Section 9.8.            Severability.
Any provision of the Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

Section 9.9.            Subsidiary
References. The provisions of this Agreement relating to Subsidiaries shall apply only during such times as the Borrower has one
or more Subsidiaries.

 

Section 9.10.            Captions.
The captions or headings herein and any table of contents hereto are for convenience only and in no way define, limit or describe the
scope or intent of any provision of this Agreement.

 

Section 9.11.            Entire
Agreement. This Agreement, the Loan Documents and the other documents mentioned herein embody the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof and thereof. This Agreement supersedes all prior agreements and understandings
relating to the subject matter hereof.

 

Section 9.12.            Counterparts;
Digital Copies. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and
the same instrument, and either of the parties hereto may execute this Agreement by signing any such counterpart. Delivery of an executed
counterpart of a signature page to this Agreement by telecopy, emailed .pdf or any other electronic means that reproduces and image
of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement and such
counterpart shall be deemed to be an original hereof.

 

Section 9.13.            Time
of the Essence. Time is of the essence in this Agreement and all of the other Loan Documents.

 

Section 9.14.            Lender
Acknowledgment. Each Lender acknowledges that the other Lender has not made any representation or warranty to it, and that no act
by either Lender hereafter taken, including any consent and acceptance of any assignment or review of the affairs of the Loan Parties,
shall be deemed to constitute any representation or warranty by either Lender to any other Lender as to any matter. Each Lender represents
to the other Lender that it has, independently and without reliance upon such other Lender and based on such 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 the Borrower, and made its own decision to enter into this Agreement and to extend credit
to the Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon any other Lender 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
the Borrower. No Lender shall have any duty or responsibility to provide any other Lender with any credit or other information concerning
the business, prospects, operations, property, financial or other condition or creditworthiness of the Borrower that may come into the
possession of such Lender.

 

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Section 9.15.            No
Partnership, Joint Venture or Agency. The (i) Lenders are not the agent or representative of the Borrower, (ii) Lenders
are the not agent or representative of each other Lender, and (iii) the Borrower is not the agent or representative of either of
the Lenders, and nothing in this Agreement will be construed to make the Lenders liable to anyone for goods delivered or services performed
upon any Loan Party’s properties or for debts or claims accruing against the Borrower. Neither anything contained in this Agreement
nor the acts of the parties hereto will be construed to create a partnership or joint venture between the Borrower and the Lenders or
between the Lenders

 

Section 9.16.            No
Third Party Beneficiaries. All conditions to the obligations of the Lenders to make advances hereunder are imposed solely and exclusively
for the benefit of the Lenders and their respective assigns and no other Person will have standing to require satisfaction of such conditions
or be entitled to assume that the Lenders will not make disbursements in the absence of strict compliance with any or all thereof and
no other Person, under any circumstances, will be deemed to be beneficiary of such conditions, any or all of which may be waived in whole
or in part by the Lenders at any time if the Lenders in their sole discretion deems it advisable to do so.

 

Section 9.17.            GOVERNING
LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS.

 

(a)            THE
LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS (BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF THE STATE OF MINNESOTA.

 

(b)            SUBJECT
TO THE LAST SENTENCE OF THIS SECTION 9.17(b), THE BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT
COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR
OTHERWISE, AGAINST THE LENDER, ITS AFFILIATES OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR ADVISORS IN ANY
WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN
THE U.S. FEDERAL OR MINNESOTA STATE COURTS SITTING IN MINNEAPOLIS, MINNESOTA, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN SUCH MINNESOTA STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. 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 THE LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY
OTHER JURISDICTION.

 

    35

     

    

 

(c)            EACH
PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO,
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN SECTION 9.17(b). EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

 

(d)            EACH
PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.4. NOTHING
IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW.

 

Section 9.18.            WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

[Remainder of page intentionally blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the date first above written.

 

	BORROWER:	Mill City Ventures III, Ltd.,
	 	a Minnesota corporation
	 	 
	 	By: 	/s/ Douglas Polinsky
	 	Name: 	Douglas Polinsky
	 	Title:	Chief Executive Officer
	 	 
	 	 
	LENDERS:	Lyle A. Berman Revocable Trust
	 	 
	 	By:	/s/ Lyle A. Berman
	 	Name:	Lyle A. Berman
	 	Title:  	Trustee
	 	 
	 	Eastman Investment, Inc.
	 	 
	 	By:	/s/ Robert Sabes
	 	Name:	Robert Sabes
	 	Title:	President

 

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Exhibit A

 

Form of Compliance Certificate

 

    

     

    

 

EXHIBIT 3.1

 

Closing Checklist

 

1. Revolving Notes.

2. Certificate of Authority (Including Incumbency and Resolutions of Borrower)

3. Intercreditor Agreement

4. UCC-1 Financing StatementExhibit 10.22

 

Execution Version

 

PHARMAPACKS,
LLC

EXECUTIVE EMPLOYMENT AGREEMENT

 

Pharmapacks,
LLC, a New York limited liability company (the “Company”) and Andrew Vagenas (the “Executive”)
(the Company and the Executive each a “Party” and, collectively, the “Parties”) enter into this
EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) dated as of January 6, 2022 (the “Effective Date”).

 

W I T N E S S E T H

 

WHEREAS, the Executive
is employed by the Company as its Chief Executive Officer pursuant to an employment agreement between the Executive and Packable
Holdings, LLC (f/k/a Entourage Commerce, LLC) (“Packable Holdings”) dated August 18, 2014, as amended, (the
 “Prior Agreement”);

 

WHEREAS,
in connection with that certain Agreement and Plan of Merger, dated as of September 8, 2021,
as amended from time to time (the “Merger Agreement”), pursuant to which, among other things, (i) Highland Transcend
Partners I Corp., a Cayman Islands exempted company, will domesticate as a Delaware corporation in accordance with the applicable provisions
of the Companies Law (2020 Revision) of the Cayman Island and the General Corporation Law of the State of Delaware and be renamed as Packable
Commerce, Inc. (“Parent”), and (ii) Picasso Merger Sub III, Inc., a Delaware limited liability company and a wholly
owned direct subsidiary of Parent will merge with and into Packable Holdings, LLC (“Packable Holdings”) the immediate
parent company of the Company, with Packable Holdings continuing as the surviving limited liability company and a subsidiary of Parent (and
as such are further described in the Parent’s filing of Form S-4 filed with the Securities & Exchange Commission on October
22, 2021, collectively, the “Transactions”), the Company desires to offer the Executive the compensation, benefits,
and other rights and entitlements set forth in this Agreement, subject to the Executive complying with the Executive’s obligations
under this Agreement; and

 

WHEREAS, the Company
desires to continue employing the Executive, and the Executive desires to continue to be employed by the Company, in each case, on the
terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing, of the mutual promises contained herein, and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

1.            
POSITION AND DUTIES.

 

(a)          
During the “Employment Term” (as defined below), the Executive will serve as the Chief Executive Officer of the Company.
In this capacity, the Executive will have the duties, authorities and responsibilities commensurate with the duties, authorities and responsibilities
of persons in similar capacities in similarly sized companies, and such other duties, authorities and responsibilities as shall be reasonably
assigned to the Executive by the Board of Managers of Packable Holdings (“LLC Board”). The Executive will report directly
to the LLC Board.

 

    1

     

    

 

(b)          
 The Executive’s principal place of employment with the Company will be in Lake Success, New York, provided that the Executive
understands and agrees that the Executive may be required to travel from time to time for business purposes.

 

(c)          
During the Employment Term, the Executive will serve the Company and devote all of the Executive’s business time, energy,
business judgment, knowledge and skill, and the Executive’s best efforts, to the performance of the Executive’s duties with
the Company, provided that the foregoing will not prevent the Executive from (i) serving on the boards of directors of non-profit
organizations, (ii) participating in charitable, civic, educational, professional, community or industry affairs, and (iii)
managing the Executive’s passive personal investments, so long as such activities do not, individually or in the aggregate, interfere
or conflict with the Executive’s duties, obligations and restrictions hereunder, create a potential business or fiduciary conflict,
such as indirectly or directly competing with the Company and its lines of business, could be expected to have a detrimental effect on
a Group Company’s reputation or business, and is otherwise compliant with any applicable laws or Company policies concerning personal
investments. For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or consulting
activity for any direct or indirect remuneration without the prior approval of the Company.

 

2.           
EMPLOYMENT TERM. The Executive’s employment under this Agreement will commence on the Effective Date and will continue
until terminated by either Party. The effective date of any termination of the Executive’s employment hereunder is hereinafter referred
to as the “Termination Date”, and the period of time between the Effective Date and the Termination Date is hereinafter
referred to as the “Employment Term”. Effective upon any Termination Date, this Agreement will automatically terminate
and will be of no further force or effect, except as otherwise provided in Section 13(a) hereof, and the Executive shall immediately
resign, in writing, from all positions then held by the Executive with the Company and its affiliates unless otherwise agreed to by the
Company and the Executive. For the avoidance of doubt, the Executive’s employment is at-will, and either the Executive or the Company
may terminate the Executive’s employment hereunder any time, for any or no reason, with or without cause or advance notice (except
for the notice required under Section 4(f) below).

 

3.            
COMPENSATION AND BENEFITS.

 

(a)          
BASE SALARY. Effective as of January 1, 2022, the Company will pay to the Executive a base salary at an annualized rate
of five hundred and twenty-five thousand dollars ($525,000), payable in accordance with the regular payroll practices of the Company,
less payroll deductions and withholdings, paid on the Company’s normal payroll schedule. The base salary, subject to annual review
and periodic increases, will constitute “Base Salary” for purposes of this Agreement.

 

(b)           ANNUAL
PERFORMANCE BONUS. For each calendar year ending during the Employment Term, the Executive will be eligible to earn an annual
cash performance bonus based on attainment of one or more individual or business performance goals developed by the Company and
adopted by the LLC Board, or the designated compensation committee of the LLC Board (the “Annual Performance
Bonus”). The target Annual Performance Bonus opportunity for a given calendar year, which will be achieved upon attainment
of 100% of the applicable performance goals, will be equal to at least forty percent (40)% of the Executive’s Base Salary in
effect as of December 31 of such calendar year (the “Target Performance Bonus”). The Annual Performance Bonus
achieved for a calendar year, if any, will be paid in accordance with the Company’s standard payroll practices in the first
calendar quarter of the immediately following calendar year, contingent on the Executive’s continued employment with the
Company and compliance with this Agreement through the payment date. Bonuses are not earned until paid. Additional details regarding
the Annual Performance Bonus arrangement will be shared in the first calendar quarter of 2022.

 

    2

     

    

 

(c)          
initial LONG-TERM INCENTIVE EQUITY Award. Subject
to approval by the board of directors of Parent, and contingent upon the closing of the Transaction,  Parent will grant to the Executive,
subject to the Executive’s continued employment with the Company through the grant date, a one-time award consisting of options
to purchase a number of shares of Parent’s Class A Common Stock (the “Shares”) with an aggregate grant date
fair value equal to seven million five hundred thousand dollars ($7,500,000), at a per-Share exercise price equal to fair market value
of one Share on the applicable grant date (the “Option Award”) and (y) an award of restricted stock units with respect
to a number of Shares having an aggregate grant date fair value equal to three million dollars $(3,000,000) (the “RSU Award,”
and collectively, with the Option Award, the  “Initial LTI Awards”).  The Initial LTI Awards shall be granted
under and subject to all of the terms and conditions of Parent’s 2022 Equity Incentive Plan (the “Equity Plan”) and
Parent’s forms of award agreements thereunder.  The Initial LTI Awards shall vest in 12 substantially equal quarterly installments
commencing on the first quarterly vesting date following the first anniversary of the grant date, subject to Executive’s Continuous
Service (as defined in the Equity Plan) through each such vesting date.

 

(d)          
FUTURE ANNUAL LONG-TERM INCENTIVE AWARDS. During the Employment Term,
the Executive will also be considered for annual grants of additional long-term incentive equity awards which, if granted, will be subject
to all of the terms and conditions (including vesting restrictions) of the Equity Plan (or a successor plan) and individual award agreements
to be entered into by the Executive and the Company at the time of each grant.

 

(e)          
EMPLOYEE BENEFIT PLANS. During the Employment Term, the Executive will be eligible to participate in any employee benefit
plan maintained by the Company for the benefit of its employees generally, subject to all of the terms and conditions (including eligibility
requirements) of such plan. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time,
in its sole and absolute discretion.

 

(f)           
PAID TIME OFF. During the Employment Term, the Executive will be entitled to paid vacation and other paid time off in accordance
with the Company’s paid time off policy as in effect from time to time. Vacation may be taken at such times and intervals as the
Executive determines, subject to the business needs of the Company.

 

(g)          
BUSINESS EXPENSES. Upon presentation of reasonable substantiation and documentation as the Company may specify from time
to time, the Executive will be reimbursed in accordance with the Company’s expense reimbursement policy for all reasonable out-of-pocket
business expenses incurred and paid by the Executive during the Employment Term in connection with the performance of the Executive’s
duties hereunder.

 

    3

     

    

 

4.            
 TERMINATION. The Executive’s employment and the Employment Term will terminate on the first of the following to occur:

 

(a)          
DEATH. Automatically and immediately upon the date of death of the Executive.

 

(b)          
TERMINATION DUE TO DISABILITY. Immediately upon written notice by the Company to the Executive of termination due to Disability.
For purposes of this Agreement, “Disability” means the inability of the Executive to perform the Executive’s
material duties hereunder due to a physical or mental injury, infirmity or incapacity for one hundred eighty (180) calendar days in any
365 calendar day period, as determined by the LLC Board in its reasonable discretion. Alternatively, Executive will be deemed disabled
if determined to be totally disabled by the Social Security Administration. The Executive will cooperate in all respects with the LLC
Board if a question arises as to whether the Executive has become Disabled (including, without limitation, submitting to reasonable examinations
by one or more medical doctors and other health care specialists selected by the LLC Board and authorizing such medical doctors and other
health care specialists to discuss the Executive’s condition with the LLC Board).

 

(c)          
TERMINATION FOR CAUSE. Immediately upon the latter of written notice by the Company to the Executive of a termination for
Cause or the expiration of an applicable cure period within cure, to the extent noted below. For purposes of this Agreement, “Cause”
means any of the following:

 

(i)                
The Executive’s commission of any act or omission constituting theft, dishonesty, fraud, embezzlement, willful misconduct,
breach of fiduciary duty or material falsification of any documents or records of the Company, Parent, or any of their respective subsidiaries
or other affiliates (each, a “Group Company”);

 

(ii)             
The Executive’s material failure to abide by a Group Company’s code of conduct or other policies that have been adopted
by the Company and made available to employees (including, but not limited to, policies relating to confidentiality, workplace conduct,
business ethics and personal investments);

 

(iii)           
The Executive’s commission of any act or omission constituting unauthorized use, misappropriation, destruction or diversion
of any tangible or intangible asset or corporate opportunity of a Group Company (including the Executive’s improper use or disclosure
of a Group Company’s confidential or proprietary information);

 

(iv)            
Any misconduct, moral turpitude, gross negligence or malfeasance of the Executive that has or, in the good faith judgment of the
LLC Board, could reasonably be expected to have, a material detrimental effect on a Group Company’s reputation or business;

 

(v)              
The Executive’s repeated willful failure to perform the Executive’s assigned duties after written notice from the Company
or the LLC Board of such failure and a reasonable opportunity to cure within 30 days after written notice thereof (if deemed curable);

 

(vi)             The
Executive’s commission of, plea of guilty or nolo contendere to, or indictment for any criminal act involving fraud,
dishonesty, misappropriation or moral turpitude, or that would, in the good faith and reasonable determination of the LLC Board,
materially and permanently impair the Executive’s ability to perform the Executive’s duties with a Group Company or have
a material detrimental effect on a Group Company’s reputation or business;

 

    4

     

    

 

(vii)         
The Executive’s failure to cooperate with any Group Company and its legal counsel in connection with any investigation or
other legal or similar proceeding involving any Group Company;

 

(viii)       
The Executive’s unauthorized use or disclosure of any Group Company’s confidential information or trade secrets, which
use or disclosure causes material harm to any Group Company; or

 

(ix)            
any material breach by the Executive of the CIIAA (defined below).

 

(d)          
TERMINATION WITHOUT CAUSE. Immediately upon written notice by the Company to the Executive of an involuntary termination
without Cause (which, for the avoidance of doubt, will not include any termination described in Sections 4(a) or 4(b) above).

 

(e)          
RESIGNATION FOR GOOD REASON. Upon written notice by the Executive to the Company of a termination for Good Reason. For purposes
of this Agreement, “Good Reason” means the occurrence of any of the following events, without the express written consent
of the Executive, unless such events are fully corrected in all material respects by the Company within thirty (30) calendar days following
written notification by the Executive to the Company of the occurrence of one of the reasons set forth below:

 

(i)                
reduction in the Executive’s Base Salary (other than as part of an across the board reduction of base compensation applicable
to the Company’s senior executives generally);

 

(ii)             
material reduction in the Executive’s duties, authorities or responsibilities (other than temporarily while physically or
mentally incapacitated or as required by applicable law), provided, however, that a material reduction in the Executive’s duties,
authorities or responsibilities solely by virtue of any Group Company being acquired and made part of a larger entity (for example, where
Executive retains essentially the same responsibility and duties of the subsidiary, business unit or division substantially containing
the Company’s business following a Change in Control) shall not constitute “Good Reason”; or

 

(iii)           
relocation of the Executive’s primary work location by more than fifty (50) miles from the principal location from which
the Executive works as of the Effective Date, which materially increases the Executive’s one-way commute distance.

 

The Executive must provide the
Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within thirty (30) calendar days
after the first occurrence of such circumstances, and if such event is not reasonably cured within the Company’s thirty (30)-day
cure period described above, Executive must resign from all positions Executive then holds with the Company not later than thirty (30)
days after the expiration of the cure period. Otherwise, any claim of such circumstances as “Good Reason” will be deemed irrevocably
waived by the Executive.

 

    5

     

    

 

(f)         
 RESIGNATION WITHOUT GOOD REASON. Upon one (1) month written notice by the Executive to the Company of the Executive’s
voluntary termination of employment without Good Reason.

 

5.            
CONSEQUENCES OF TERMINATION.

 

(a)           
DEATH; TERMINATION DUE TO DISABILITY; TERMINATION FOR CAUSE; RESIGNATION WITHOUT GOOD REASON. In the event that the Executive’s
employment and the Employment Term end in accordance with Section 4(a), 4(b), 4(c), or 4(f), the Executive
(or the Executive’s estate, as applicable) will be entitled to the following (collectively, the “Accrued Benefits”),
subject to Section 10 below:

 

(i)                
any previously earned but unpaid Base Salary through the Termination Date, paid within sixty (60) calendar days following the Termination
Date, or on such earlier date as may be required by applicable law;

 

(ii)             
subject to Section 3(f) above, any accrued but unused vacation time, paid subject to and in accordance with Company policy;

 

(iii)           
subject to Section 3(g) above, reimbursement for any unreimbursed business expenses incurred through the Termination Date,
paid within sixty (60) calendar days following the Termination Date, or on such earlier date as may be required by applicable law; and

 

(iv)            
all other payments and benefits to which the Executive is then entitled under the terms of any employee benefit plan of the Company,
paid or provided subject to and in accordance with the terms of such plan.

 

(b)         
TERMINATION WITHOUT CAUSE; RESIGNATION FOR GOOD REASON. In the event that the Executive’s employment and the Employment
Term end in accordance with Section 4(d) or 4(e), the Executive (or the Executive’s estate, as applicable) shall be
entitled to the Accrued Benefits and, conditioned on the Executive’s (x) compliance with the “Release Condition”
in Section 5(d) below and (y) continued compliance with this Agreement, including Section 6 below, the Executive
will also be entitled to receive the following additional payments, subject to Section 10 below:

 

(i)                
an amount equal to the Executive’s Base Salary for twelve (12) months (or, if the Termination Date occurs during the “CIC
Protection Period”, as defined below, eighteen (18) months) (the “Severance Period”), which will be paid in equal
periodic installments on the Company’s regular payroll dates (not less frequently than monthly) over the Severance Period, provided,
however, that no payments will be made prior to the sixtieth (60th) calendar day following the Termination Date. On the sixtieth (60th)
day following Executive’s Termination Date, the Company will pay Executive in a lump sum the Severance Period payments that Executive
would have received on or prior to such date under the standard payroll schedule, but for the delay while waiting for the 60th day, with
the balance of the payments in the Severance Period being paid as originally scheduled;

 

(ii)              only
if the Termination Date occurs during the CIC Protection Period, an amount equal to the Target Performance Bonus for the calendar
year containing the Termination Date, which will be paid in equal periodic installments on the Company’s regular payroll dates
(not less frequently than monthly) over the Severance Period, beginning with the first regular Company payroll date next following
the sixtieth (60th) calendar day following the Termination Date or the effective date of the Change in Control, if later;

 

    6

     

    

 

(iii)           
provided Executive timely elects continued coverage under COBRA, the Company shall pay Executive’s COBRA premiums to continue
Executive’s coverage (including coverage for eligible dependents, if applicable) (“COBRA Premiums”) through the period
(the “COBRA Premium Period”) starting on Executive’s Termination Date and ending on the earliest to occur of: (i) end
of the Severance Period; (ii) the date Executive becomes eligible for group health insurance coverage through a new employer; or (iii)
the date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination. In the event Executive
becomes covered under another employer's group health plan or otherwise cease to be eligible for COBRA during the COBRA Premium Period,
Executive must immediately notify the Company of such event. Notwithstanding the foregoing, if the Company determines, in its sole discretion,
that it cannot pay the COBRA Premiums without a substantial risk of violating applicable law (including, without limitation, Section 2716
of the Public Health Service Act), the Company instead shall pay to Executive, on the first day of each calendar month, a fully taxable
cash payment equal to the applicable COBRA premiums for that month (including premiums for Executive and Executive’s eligible dependents
who have elected and remain enrolled in such COBRA coverage), subject to applicable tax withholdings (such amount, the “Special
Cash Payment”), for the remainder of the COBRA Premium Period. Executive may, but is not obligated to, use such Special Cash Payments
toward the cost of COBRA premiums;

 

(iv)            
If such termination occurs during the CIC-Protection Period, effective on
the 60th day following the Executive’s Termination Date or, if later, the date of such Change in Control, the vesting
and exercisability of all outstanding equity awards held by Executive immediately prior to the Termination Date (if any) subject to time-based
vesting requirements, shall be accelerated in full and the vesting and exercisability of all outstanding equity awards subject to performance-based
vesting will be treated as set forth in Executive’s equity award agreement governing such award.  In order to effect this provision,
any termination or forfeiture of any unvested equity awards eligible for acceleration of vesting that otherwise would have occurred on
or within 60 days after the Termination Date will be delayed until the 60th day after such Termination Date (but, in the case of any stock
option, not later than the expiration date of such stock option specified in the applicable option agreement) and will only occur to the
extent such equity awards do not vest pursuant to this section, and for purposes of clarity, no additional vesting of any equity award
shall occur during such 60 day period; and

 

(v)               If
such termination occurs at any time other than during a CIC-Protection Period, (i) the Executive’s outstanding equity awards
that are subject to time-based vesting shall continue to vest during the Severance Period and (ii) exercisability of all outstanding
equity awards subject to performance-based vesting will be treated, each as set forth in Executive’s equity award agreement
governing such award.  In order to effect this provision, any termination or forfeiture of any unvested equity awards eligible
for acceleration of vesting that otherwise would have occurred on or within 60 days after the Termination Date will be delayed until
the 60th day after such Termination Date (but, in the case of any stock option, not later than the expiration date of such stock
option specified in the applicable option agreement) and will only occur to the extent such equity awards do not vest
pursuant to this section, and for purposes of clarity, no additional vesting of any equity award shall occur during such 60 day
period.

 

    7

     

    

 

For purposes of this
Agreement:

 

“Change in Control”
shall have the meaning set forth in the Equity Plan.

 

“CIC Protection
Period” means a period commencing three months prior to and ending twelve (12) months following the date of consummation of
a Change in Control.

 

(c)           
RELEASE CONDITION. The Executive will be eligible to receive the payments and benefits described in Section 5(b)
and 5(c) (if applicable) (other than the Accrued Benefits) only if the Executive executes and delivers to the Company a separation
agreement including a general release of claims in the form then provided by the Company and reasonably acceptable to the Executive (the
 “General Release”), and such General Release becomes effective and irrevocable according to its terms no later than
sixty (60) calendar days following the Termination Date, and only so long as the Executive has not revoked or breached any of the provisions
of the General Release and does not subsequently breach any such provisions (the “Release Condition”). To the extent
that any amount under Section 5(b) or 5(c) constitutes “deferred compensation” for purposes of Section 409A,
any payment of such amount scheduled to occur during the first sixty (60) calendar days following the Termination Date will not be made
until the Company’s first regularly scheduled pay period next following the sixtieth (60th) calendar day after the Termination Date
and will include payment of all amounts that were otherwise scheduled to be paid prior thereto.

 

(d)          
CONFIDENTIAL INFORMATION CONDITION. Executive’s receipt of any payments or benefits described in Section 5(b)
and 5(c) (other than the Accrued Benefits) will be subject to Executive continuing to comply with the terms of the CIIAA (defined
below).

 

(e)          
EXCLUSIVE REMEDY. The payments and benefits described in this Section 5 will be in full and complete satisfaction
of the Executive’s rights and entitlements under this Agreement and any other claims that Executive may have in respect of the Executive’s
employment with the Company or any of its affiliates, and the termination thereof, and the Executive acknowledges that such amounts are
fair and reasonable, and are the Executive’s sole and exclusive remedy, in lieu of all other remedies at law or in equity, with
respect to the termination of the Executive’s employment hereunder or any breach of this Agreement. As of the date of the final
payment described in this Section 5, the Company and its affiliates shall not have any further obligation to Executive under this
Agreement or otherwise, except as may be required by law.

 

6.           
RESTRICTIVE COVENANTS AND INVENTIONS ASSIGNMENT. The Executive’s employment with the Company is contingent upon concurrent
execution by the Executive of an Employee Confidential Information and Invention Assignment Agreement with the Company attached as Exhibit
A hereto (the “CIIAA”) and the Executive’s continued compliance with all the terms and conditions of the
CIIAA and with any other applicable restrictive covenants in favor of the Company or its affiliates.

 

    8

     

    

 

7.            
 ASSIGNMENTS. This Agreement is for (a) Executive's benefit and will be binding upon Executive’s heirs, executors, administrators
and other legal representatives and (b) the benefit of the Company, its successors, assigns, parent corporations, subsidiaries, affiliates,
and purchasers. The Company may assign this Agreement and its rights and obligations under this Agreement to any Group Company or any
successor to all or substantially all of the Company’s relevant assets, whether by merger, consolidation, reorganization, reincorporation,
sale of assets or stock, or otherwise. For avoidance of doubt, the Company’s successors and assigns are authorized to enforce the
Company’s rights under this Agreement.

 

8.            
NOTICE. All notices, demands or other communications to be given or delivered
under or by reason of the provisions of this Agreement will be in writing and will be deemed to have been given when delivered personally,
the third Business Day after having been mailed by certified or registered mail, return receipt requested and postage prepaid, or the
first Business Day after the date sent via a nationally recognized overnight courier. “Business Day” is any day other
than a Saturday, Sunday or a day on which banks in New York are required or authorized to be closed. Such notices, demands and other communications
will be sent to the address indicated below:

 

	
    If to the Executive:

     

    At the Executive’s address shown in the books and records
    of the Company.

     

    If to the Company:

     

    Pharmapacks, LLC

    Attention: Chief Legal Officer

    1985 Marcus Avenue

    Lake Success, NY, 11042

 

or to such other address as
either Party may have furnished to the other in writing in accordance herewith, except that notices of change of address will be effective
only upon receipt.

 

9.            
TAX MATTERS.

 

(a)          
WITHHOLDING. The Company may withhold from any compensation and benefits
payable under this Agreement all applicable federal, state, local, or other taxes, and any other applicable withholdings.

 

(b)          
SECTION 409A.

 

(i)                 The
Parties intend for payments and benefits hereunder to either comply with, or be exempt from, Section 409A of the Code and the
regulations promulgated thereunder (collectively “Section 409A”) and, accordingly, to the maximum extent
permitted, this Agreement will be interpreted and construed consistent with such intent. To the extent that any provision hereof is
modified in order to comply with Section 409A, such modification will be made in good faith and will, to the maximum extent
reasonably possible, maintain the original intent and economic benefit to the Executive and the Company of the applicable provision
without violating the provisions of Section 409A. Notwithstanding the foregoing, the Company does not guarantee any particular tax
result, and in no event whatsoever will the Company, its affiliates, or their respective officers, directors, employees, counsel or
other service providers, be liable for any tax, interest or penalty that may be imposed on the Executive by Section 409A or damages
for failing to comply with Section 409A.

 

    9

     

    

 

(ii)             
To the extent that reimbursements or other in-kind benefits hereunder constitute “deferred compensation” for purposes
of Section 409A, (x) all expenses or other reimbursements hereunder will be made on or prior to the last day of the taxable year
following the taxable year in which such expenses were incurred by the Executive, (y) any right to reimbursement or in-kind benefits
will not be subject to liquidation or exchange for another benefit, and (z) no such reimbursement, expenses eligible for reimbursement,
or in-kind benefits provided in any taxable year will in any way affect the expenses eligible for reimbursement, or in-kind benefits to
be provided, in any other taxable year.

 

(iii)           
For purposes of Section 409A, the Executive’s right to receive installment payments pursuant to this Agreement shall be treated
as a right to receive a series of separate and distinct payments. Whenever a payment hereunder specifies a payment period with reference
to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

(iv)            
Any other provision of this Agreement to the contrary notwithstanding, in no event will any payment or benefit hereunder that constitutes
 “deferred compensation” for purposes of Section 409A be subject to offset by any other amount unless otherwise permitted by
Section 409A.

 

(v)              
A termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits upon or following a termination of employment that constitute “deferred compensation” for
purposes of Section 409A unless such termination is also a “separation from service” within the meaning of Section 409A, and,
for purposes of any such provision, all references in this Agreement to the Executive’s “termination”, “termination
of employment” and like terms will mean the Executive’s “separation from service” with the Company.

 

(vi)             Notwithstanding
any other provision of this Agreement to the contrary, if, at the time of the Executive’s separation from service, the
Executive is a “Specified Employee”, then the Company will defer the payment or commencement of any deferred
compensation subject to Section 409A payable upon separation from service (without any reduction in such payments or benefits
ultimately paid or provided to the Executive) until the date that is six (6) months following separation from service or, if
earlier, the earliest other date as is permitted under Section 409A (and any amounts that otherwise would have been paid during this
deferral period will be paid in a lump sum on the day after the expiration of the six (6) month period or such shorter period, if
applicable). The Executive will be a “Specified Employee” for purposes of this Agreement if, on the date of the
Executive’s separation from service, the Executive is an individual who is, under the method of determination adopted by the
Company, designated as, or within the category of employees deemed to be, a “Specified Employee” within the meaning and
in accordance with Treasury Regulation Section 1.409A-1(i). The LLC Board will determine in its sole discretion all matters relating
to who is a “Specified Employee” and the application of and effects of the change in such determination.

 

    10

     

    

 

(c)          
SECTION 280G. In the event that any payments and other benefits provided for in this Agreement or otherwise payable to the
Executive constitute “parachute payments” within the meaning of Section 280G of the Code, and, but for this paragraph, would
be subject to the excise tax imposed by Section 4999 of the Code, then any such payments and benefits payable under this Agreement or
otherwise will be either (1) delivered in full or (2) delivered as to such lesser extent which would result in no portion of such payments
and benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable
federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by the Executive,
on an after-tax basis, of the greatest amount of payments and benefits, notwithstanding that all or some portion of such benefits may
be taxable under Section 4999 of the Code. If a reduction in the Executive’s payments and benefits is necessitated by the preceding
sentence, such reduction will occur in the following order: (i) any cash severance based on a multiple of base salary or annual
bonus, (ii) any other cash amounts payable to the Executive, (iii) benefits valued as parachute payments, and (iv)
acceleration of vesting of any equity awards. Any determination required under this paragraph will be made in writing by the Company’s
independent public accountants (the “Firm”), whose determination will be conclusive and binding upon the Executive
and the Company. For purposes of making the calculations required by this paragraph, the Firm may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999
of the Code. The Company and the Executive will furnish to the Firm such information and documents as the Firm may reasonably request
in order to make a determination under this paragraph. The Company will bear all costs the Firm may incur in connection with any calculations
contemplated by this paragraph.

 

10.         
CLAWBACK. All amounts paid or provided to the Executive hereunder shall be subject to the requirements of any law or regulation
applicable to the Company or Parent and governing the clawback or recoupment of executive compensation, or as set forth in any final non-appealable
order by any court of competent jurisdiction or arbitrator.

 

11.          
GOVERNING LAW. All questions concerning the construction, validity and interpretation of this Agreement will be governed by
the laws of the State of New York.

 

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12.          DISPUTE
RESOLUTION. To ensure the timely and economical resolution of disputes that may arise in connection with Executive’s
employment with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action arising from or
relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Agreement, the CIIAA, or
Executive’s employment, or the termination of Executive’s employment, including but not limited to all statutory claims,
with the exception of discrimination and harassment claims, will be resolved pursuant to the Federal Arbitration Act, 9 U.S.C.
 §1-16 (the “FAA”), and to the fullest extent permitted by law, by final, binding and confidential
arbitration by a single arbitrator conducted in New York, New York by Judicial Arbitration and Mediation Services Inc.
(“JAMS”) under the then applicable JAMS rules appropriate to the relief being sought (the applicable rules are
available at the following web addresses: (i) https://www.jamsadr.com/rules-employment-arbitration/ and (ii)
https://www.jamsadr.com/rules-comprehensive-arbitration/); provided, however, this arbitration provision not apply to any action or
claim that cannot be subject to mandatory arbitration as a matter of law, including, without limitation, claims involving
allegations of sexual harassment and discrimination, to the extent such claims are not permitted by applicable law(s) to be
submitted to mandatory arbitration and the applicable law(s) are not preempted by the FAA or otherwise invalid (collectively, the
 “Excluded Claims”). A hard copy of the rules will be provided to Executive upon request. By agreeing to this
arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge
or administrative proceeding. In addition, all claims, disputes, or causes of action under this section, whether by Executive or the
Company, must be brought in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any
purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity. The
Arbitrator may not consolidate the claims of more than one person or entity, and may not preside over any form of representative or
class proceeding. To the extent that the preceding sentences regarding class claims or proceedings are found to violate applicable
law or are otherwise found unenforceable, any claim(s) alleged or brought on behalf of a class shall proceed in a court of law
rather than by arbitration. The Company acknowledges that Executive will have the right to be represented by legal counsel at any
arbitration proceeding. Questions of whether a claim is subject to arbitration under this Agreement) shall be decided by a federal
court in the State of New York. However, procedural questions which grow out of the dispute and bear on the final disposition are
matters for the arbitrator. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the
dispute and to award such relief as would otherwise be permitted by law; (b) issue a written arbitration decision, to include the
arbitrator’s essential findings and conclusions and a statement of the award; and (c) be authorized to award any or all
remedies that Executive or the Company would be entitled to seek in a court of law. Executive and the Company shall equally share
all JAMS’ arbitration fees. To the extent JAMS does not collect or Executive otherwise does not pay to JAMS an equal share of
all JAMS’ arbitration fees for any reason, and the Company pays JAMS Executive’s share, Executive acknowledges and
agrees that the Company shall be entitled to recover from Executive half of the JAMS arbitration fees invoiced to the parties (less
any amounts Executive paid to JAMS) in a federal or state court of competent jurisdiction. Except as modified in the CIIAA, each
party is responsible for its own attorneys’ fees. Nothing in this Agreement is intended to prevent either Executive or the
Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any
awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent
jurisdiction. To the extent a New York federal court determines that any applicable law prohibits mandatory arbitration of Excluded
Claims, if Executive intends to bring multiple claims, including one or more Excluded Claims, the Excluded Claim(s) may be publicly
filed with a court, while any other claims will remain subject to mandatory arbitration.

 

13.         
INSURANCE. The Company will maintain a directors’ and officers’
liability insurance policy (or policies) providing coverage for the Executive that is no less favorable to the Executive in any respect
(including as to the length of any post-employment tail coverage) than the coverage then being provided to any other officer of the Company.

 

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14.         
MISCELLANEOUS. 

 

(a)         
 SURVIVAL. Sections 2 and 5 through 14 hereof will survive and continue in full force and effect in accordance with their
respective terms notwithstanding any expiration or termination of the Employment Term and/or this Agreement.

 

(b)          
MODIFICATION; WAIVER; ENTIRE AGREEMENT. No provision of this Agreement may be modified, waived or discharged unless such
modification, waiver or discharge is agreed to in a writing expressly referencing this Agreement and signed by the Executive and such
officer or director of the Company as may be designated by the LLC Board. No waiver by either Party hereto at any time of any breach by
the other Party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other Party will be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement, together
with all exhibits hereto, and the CIIAA, sets forth the entire agreement of the Parties hereto in respect of the subject matter hereof
and supersedes any and all prior agreements or understandings between the Executive and the Company with respect to the subject matter
hereof[ (including, without limitation, the Prior Agreement)]. No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either Party which are not expressly set forth in this Agreement.

 

(c)           
REPRESENTATION. Each of the Executive and the Company represents and warrants to the other party that such party has the
legal right to enter into this Agreement and to perform all of their respective obligations on the Executive’s part to be performed
hereunder in accordance with its terms.

 

(d)          
SECTION HEADINGS. The section headings used in this Agreement are included
solely for convenience and will not affect, or be used in connection with, the interpretation of this Agreement.

 

(e)           
SEVERABILITY. The provisions of this Agreement will be deemed severable.
The invalidity or unenforceability of any provision of this Agreement in any jurisdiction will not affect the validity, legality or enforceability
of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement
in any other jurisdiction, it being intended that all rights and obligations of the Parties hereunder will be enforceable to the fullest
extent permitted by applicable law.

 

(f)           
COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which will be deemed to be an original but all of which together will constitute one and the same instrument. Facsimile, PDF,
and electronic counterpart signatures to and versions of this Agreement will be acceptable and binding on the Parties.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Parties hereto
have executed this Agreement as of the date first written above.

 

	 	COMPANY
	 	 
	 	By:	/Leanna
    Bautista/
	 	Name:	Leanna Bautista
	 	Title:	Chief People Officer
	 	 
	 	EXECUTIVE
	 	 
	 	/Andrew Vagenas/
	 	ANDREW VAGENAS

 

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Execution Version 

 

EXHIBIT A

 

EMPLOYEE CONFIDENTIAL INFORMATION AND 

INVENTION ASSIGNMENT AGREEMENT

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