Document:

Exhibit
4.1

 

FIFTH
AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING
CREDIT, TERM LOAN AND SECURITY AGREEMENT

 

THIS
FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT, dated as of August 29, 2022 (this
“Amendment”), relating to the Credit Agreement referenced below, is by and among PERMA-FIX ENVIRONMENTAL SERVICES,
INC., a Delaware corporation (the “Borrower”), the lenders identified on the signature pages hereto (the “Lenders”),
and PNC Bank, National Association, a national banking association, as agent for the Lenders (in such capacity, the “Agent”).
Terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement.

 

W
I T N E S S E T H

 

WHEREAS,
a credit facility has been extended to the Borrower pursuant to the terms of that certain Second Amended and Restated Revolving Credit,
Term Loan and Security Agreement dated as of May 8, 2020 (as amended and modified from time to time, the “Credit Agreement”)
among the Borrower, the Lenders identified therein, and PNC Bank, National Association, as agent for the Lenders;

 

WHEREAS,
the Borrower has requested certain modifications to the Credit Agreement; and

 

WHEREAS,
the Required Lenders have agreed to the requested modifications on the terms and conditions set forth herein;

 

NOW,
THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1. Amendments.
The Credit Agreement (but not the Exhibits or Schedules attached thereto) is hereby amended in its entirety to read in the form
attached hereto as Annex A.

 

Conditions
Precedent. This Amendment shall be effective as of the date hereof upon satisfaction of the following conditions:

 

(a)
the execution of this Amendment by the Borrower, the Required Lenders and the Agent.

 

2. Representations
and Warranties. The Borrower hereby represents and warrants in connection herewith that as of the date hereof (after giving
effect hereto) (i) the representations and warranties set forth in Article V of the Credit Agreement are true and correct in all
material respects (except those which expressly relate to an earlier date), and (ii) no Default or Event of Default has occurred and
is continuing under the Credit Agreement.

 

    	 

     

    

 

3. Acknowledgments,
Affirmations and Agreements. The Borrower (i) acknowledges and consents to all of the terms and conditions of this Amendment and
(ii) affirms all of its obligations under the Credit Agreement and the Other Documents.

 

4. Credit
Agreement. Except as expressly modified hereby, all of the terms and provisions of the Credit Agreement remain in full force and
effect.

 

5. Expenses.
The Borrower agrees to pay all reasonable costs and expenses in connection with the preparation, execution and delivery of this
Amendment, including the reasonable fees and expenses of the Agent’s legal counsel.

 

6. Counterparts.
This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an
original. It shall not be necessary in making proof of this Amendment to produce or account for more than one such
counterpart.

 

7. Governing
Law. This Amendment shall be deemed to be a contract under, and shall for all purposes be construed in accordance with, the laws
of the State of New York.

 

    	 	2	 

     

    

 

IN
WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date
first above written.

 

	BORROWER:	PERMA-FIX ENVIRONMENTAL
	 	SERVICES, INC.
	 	 	 
	 	By
    :	/s/Ben
    Naccarato
	 	Name
    :	Ben
    Naccarato
	 	Title
    :	CFO

 

	AGENT
    AND LENDER:	PNC BANK, NATIONAL ASSOCIATION,
	 	in its capacity as Agent and as Lender
	 	 	 
	 	By
    :	/s/
    Scott Goldstein
	 	Name:	Scott
    Goldstein
	 	Title
    :	Senior
    Vice President

 

Amendment
to Second Amended and Restated

Revolving
Credit, Term Loan and Security Agreement

Perma-Fix

 

    	 

    	 

    

 

ANNEX
A

 

See
attached.

 

    	 	2Exhibit
4.2

 

 

 

SECOND
AMENDED AND RESTATED

 

REVOLVING
CREDIT, TERM LOAN

 

AND

 

SECURITY
AGREEMENT

 

 

 

PNC
BANK, NATIONAL ASSOCIATION

(AS
LENDER AND AS AGENT)

 

 

 

WITH

 

 

 

PERMA-FIX
ENVIRONMENTAL SERVICES, INC.

(BORROWER)

 

 

 

MAY
8, 2020

 

    	 

     

    

 

TABLE
OF CONTENTS

 

	ARTICLE I DEFINITIONS	1
	 	1.1.	Accounting
    Terms.	1
	 	1.2.	General Terms.	1
	 	1.3.	Uniform Commercial Code
    Terms.	30
	 	1.4.	Certain Matters of Construction.	31
	 	1.5.	 Term
    SOFR  Notification.	32
	 	 	 	 
	ARTICLE
    II ADVANCES, PAYMENTS	32
	 	2.1.	Revolving Advances.	32
	 	2.2.	Procedure for Revolving
    Advances Borrowing.	33
	 	2.3.	Disbursement of Advance
    Proceeds.	36
	 	2.4.	Term Loan.	36
	 	2.5.	Maximum Advances.	37
	 	2.6.	Repayment of Advances.	37
	 	2.7.	Repayment of Excess Advances.	38
	 	2.8.	Statement of Account.	38
	 	2.9.	Letters of Credit.	39
	 	2.10.	Issuance of Letters of
    Credit.	39
	 	2.11.	Requirements For Issuance
    of Letters of Credit.	39
	 	2.12.	Disbursements, Reimbursement.	40
	 	2.13.	Repayment of Participation
    Advances.	41
	 	2.14.	Documentation.	42
	 	2.15.	Determination to Honor
    Drawing Request.	42
	 	2.16.	Nature of Participation
    and Reimbursement Obligations.	42
	 	2.17.	Indemnity.	44
	 	2.18.	Liability for Acts and
    Omissions.	44
	 	2.19.	Additional Payments.	45
	 	2.20.	Manner of Borrowing and
    Payment.	45
	 	2.21.	Mandatory Prepayments.	47
	 	2.22.	Use of Proceeds.	48
	 	2.23.	Defaulting Lender.	48
	 	 	 	 
	ARTICLE
    III INTEREST AND FEES	49
	 	3.1.	Interest.	49
	 	3.2.	Letter of Credit Fees.	50
	 	3.3.	Amendment Fee and Facility
    Fee.	51
	 	3.4.	Collateral Fees.	51
	 	3.5.	Computation of Interest
    and Fees.	51
	 	3.6.	Maximum Charges.	52
	 	3.7.	Increased Costs.	52
	 	3.8.	Alternate Rate of Interest.	53
	 	3.9.	Capital Adequacy.	58
	 	3.10.	Gross Up for Taxes.	59
	 	3.11.	Withholding Tax Exemption.	59

 

    	i

     

    

 

	ARTICLE
    IV COLLATERAL: GENERAL TERMS	60
	 	4.1.	Security Interest in the
    Collateral.	60
	 	4.2.	Perfection of Security
    Interest.	61
	 	4.3.	Disposition of Collateral.	61
	 	4.4.	Preservation of Collateral.	62
	 	4.5.	Ownership of Collateral.	62
	 	4.6.	Defense of Agent’s
    and Lenders’ Interests.	63
	 	4.7.	Books and Records.	63
	 	4.8.	Financial Disclosure.	64
	 	4.9.	Compliance with Laws.	64
	 	4.10.	Inspection of Premises;
    Appraisals.	64
	 	4.11.	Insurance.	65
	 	4.12.	Failure to Pay Insurance.	66
	 	4.13.	Payment of Taxes.	66
	 	4.14.	Payment of Leasehold Obligations.	67
	 	4.15.	Receivables.	67
	 	4.16.	Inventory.	70
	 	4.17.	Maintenance of Equipment.	70
	 	4.18.	Exculpation of Liability.	70
	 	4.19.	Environmental Matters.	70
	 	4.20.	Financing Statements.	72
	 	 	 	 
	ARTICLE
    V REPRESENTATIONS AND WARRANTIES	74
	 	5.1.	Authority.	74
	 	5.2.	Formation and Qualification.	74
	 	5.3.	Survival of Representations
    and Warranties.	75
	 	5.4.	Tax Returns.	75
	 	5.5.	Financial Statements.	75
	 	5.6.	Entity Name and Locations.	76
	 	5.7.	O.S.H.A. and Environmental
    Compliance.	76
	 	5.8.	Solvency; No Litigation,
    Violation, Indebtedness or Default.	76
	 	5.9.	Patents, Trademarks, Copyrights
    and Licenses.	78
	 	5.10.	Licenses and Permits.	78
	 	5.11.	Default of Indebtedness.	78
	 	5.12.	No Default.	79
	 	5.13.	No Burdensome Restrictions.	79
	 	5.14.	No Labor Disputes.	79
	 	5.15.	Margin Regulations.	79
	 	5.16.	Investment Company Act.	79
	 	5.17.	Disclosure.	79
	 	5.18.	Intentionally Deleted.	80
	 	5.19.	Swaps.	80
	 	5.20.	Conflicting Agreements.	80
	 	5.21.	Application of Certain
    Laws and Regulations.	80
	 	5.22.	Business and Property of
    Borrower.	80
	 	5.23.	Section 20 Subsidiaries.	80
	 	5.24.	Anti-Terrorism Laws.	80
	 	5.25.	 Anti-Corruption
    Laws. 	81
	 	5.26.	Commercial Tort Claims.	81
	 	5.27.	Partnership and Limited
    Liability Company Interests.	81
	 	5.28.	Material Contracts.	81
	 	5.29.	Future Subsidiaries.	82
	 	5.30.	Certificate of Beneficial
    Ownership.	82

 

    	ii

     

    

 

	ARTICLE
    VI AFFIRMATIVE COVENANTS	82
	 	6.1.	Payment of Fees.	82
	 	6.2.	Conduct of Business and
    Maintenance of Existence and Assets.	83
	 	6.3.	Violations.	83
	 	6.4.	Government Receivables.	83
	 	6.5.	Financial Covenants.	83
	 	6.6.	Execution of Supplemental
    Instruments.	83
	 	6.7.	Payment of Indebtedness.	84
	 	6.8.	Standards of Financial
    Statements.	84
	 	6.9.	Intentionally Deleted.	84
	 	6.10.	Real Property.	84
	 	6.11.	Inactive Subsidiaries.	84
	 	6.12.	Certificate of Beneficial
    Ownership and Other Additional Information.	85
	 	6.13.	Additional Intellectual
    Property.	85
	   	 6.14. 	 Sanctions and other Anti-Terrorism Laws; Anti-Corruption
    Law. 	 85 
	 	 	 	 
	ARTICLE
    VII NEGATIVE COVENANTS	85
	 	7.1	Merger, Consolidation,
    Acquisition and Sale of Assets.	85
	 	7.2.	Creation of Liens.	86
	 	7.3.	Guarantees.	86
	 	7.4	Investments.	86
	 	7.5.	Loans.	86
	 	7.6.	Capital Expenditures.	87
	 	7.7.	Dividends.	87
	 	7.8.	Indebtedness.	87
	 	7.9.	Nature of Business.	88
	 	7.10.	Transactions with Affiliates.	88
	 	7.11.	Leases.	88
	 	7.12.	Subsidiaries.	89
	 	7.13.	Fiscal Year and Accounting
    Changes.	89
	 	7.14.	Pledge of Credit.	89
	 	7.15.	Amendment of Organizational
    Documents.	89
	 	7.16.	Compliance with ERISA.	89
	 	7.17.	Prepayment of Indebtedness.	90
	 	7.18.	 Sanctions
    and other Anti-Terrorism Laws. 	90
	 	7.19.	 Anti-Corruption
    Laws. 	90
	 	7.20.	Other Agreements.	91
	 	7.21.	Additional Negative Pledges.	91
	 	7.22.	Additional Bank Accounts.	91

 

    	iii

     

    

 

	ARTICLE
    VIII CONDITIONS PRECEDENT	91
	 	8.1.	Conditions to Initial Advances.	91
	 	8.2.	Conditions to Each Advance.	92
	   	 8.3 	 Conditions to Each Equipment Loan. 	 93 
	 	 	 	 
	ARTICLE
    IX INFORMATION AS TO BORROWER	93
	 	9.1.	Disclosure of Material
    Matters.	93
	 	9.2	Schedules.	94
	 	9.3.	Environmental Reports.	94
	 	9.4.	Litigation.	94
	 	9.5.	Material Occurrences.	95
	 	9.6.	Public Filings.	95
	 	9.7.	Annual Financial Statements.	95
	 	9.8.	Quarterly Financial Statements.	96
	 	9.9.	Monthly Financial Statements.	96
	 	9.10.	Other Reports.	96
	 	9.11.	Additional Information.	96
	 	9.12.	Projected Operating Budget.	97
	 	9.13.	Variances From Operating
    Budget.	97
	 	9.14.	Notice of Suits, Adverse
    Events.	97
	 	9.15.	ERISA Notices and Requests.	97
	 	9.16.	Additional Documents.	98
	 	9.17.	Government Receivables.	98
	 	 	 	 
	ARTICLE
    X EVENTS OF DEFAULT	98
	 	10.1.	Nonpayment.	98
	 	10.2.	Breach of Representation.	98
	 	10.3.	Financial Information.	99
	 	10.4.	Judicial Actions.	99
	 	10.5.	Noncompliance.	99
	 	10.6.	Judgments.	99
	 	10.7.	Bankruptcy.	99
	 	10.8.	Inability to Pay.	100
	 	10.9.	Material Adverse Effect.	100
	 	10.10.	Lien Priority.	100
	 	10.11.	Cross Default.	100
	 	10.12.	Breach of Guaranty.	100
	 	10.13.	Change of Control.	100
	 	10.14.	Invalidity.	101
	 	10.15.	Licenses.	101
	 	10.16.	Seizures.	101
	 	10.17.	Pension Plans.	101
	 	10.18.	Subordinated Loan Default.	101
	 	 	 	 
	ARTICLE
    XI LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT	102
	 	11.1.	Rights and Remedies.	102
	 	11.2.	Agent’s Discretion.	103
	 	11.3.	Setoff.	104
	 	11.4.	Rights and Remedies not
    Exclusive.	104
	 	11.5.	Allocation of Payments
    After Event of Default.	104

 

    	iv

     

    

 

	ARTICLE XII  WAIVERS AND JUDICIAL PROCEEDINGS	105
	 	12.1.	Waiver of Notice.	105
	 	12.2.	Delay.	105
	 	12.3.	Jury Waiver.	105
	 	 	 	 
	ARTICLE XIII  EFFECTIVE DATE AND TERMINATION.	106
	 	13.1.	Term.	106
	 	13.2.	Termination.	106
	 	 	 	 
	ARTICLE XIV  REGARDING AGENT	107
	 	14.1.	Appointment.	107
	 	14.2.	Nature of Duties.	107
	 	14.3.	Lack of Reliance on Agent
    and Resignation.	108
	 	14.4.	Certain Rights of Agent.	108
	 	14.5.	Reliance.	109
	 	14.6.	Notice of Default.	109
	 	14.7.	Indemnification.	109
	 	14.8.	Agent in its Individual
    Capacity.	109
	 	14.9.	Delivery of Documents.	110
	 	14.10.	Borrower’s Undertaking
    to Agent.	110
	 	14.11.	No Reliance on Agent’s
    Customer Identification Program.	110
	 	14.12.	Other Agreements.	110
	   	 14.13. 	 Erroneous Payments 	 111 
	 	 	 	 
	ARTICLE XV  MISCELLANEOUS	113
	 	15.1.	Governing Law.	113
	 	15.2.	Entire Understanding.	114
	 	15.3.	Successors and Assigns;
    Participations; New Lenders.	116
	 	15.4.	Application of Payments.	119
	 	15.5.	Indemnity.	119
	 	15.6	Notice.	120
	 	15.7.	Survival.	122
	 	15.8.	Severability.	122
	 	15.9.	Expenses.	122
	 	15.10.	Injunctive Relief.	122
	 	15.11.	Consequential Damages.	122
	 	15.12.	Captions.	123
	 	15.13.	Counterparts; Facsimile
    Signatures.	123
	 	15.14.	Construction.	123
	 	15.15	Confidentiality; Sharing
    Information	123
	 	15.16.	Publicity.	124
	 	15.17.	Certifications From Banks
    and Participants; USA PATRIOT Act.	124

 

    	v

     

    

 

List
of Exhibits and Schedules

 

	Exhibits	 
	 	 
	Exhibit
    1.2	Borrowing
    Base Certificate
	Exhibit
    1.2(a)	Compliance
    Certificate
	Exhibit
    2.1(a) 	Revolving
    Credit Note
	Exhibit
    2.4(a)	Term
    Note
	Exhibit
    2.4(b)	Equipment
    Note
	Exhibit
    15.3	Commitment
    Transfer Supplement
	 	 
	Schedules	 
	 	 
	Schedule
    1.2(a)	Commercial
    Brokers
	Schedule
    1.2(b)	Permitted
    Encumbrances
	Schedule
    4.5 	Equipment
    and Inventory Locations; Place of Business; Chief Executive Office; Locations of Real Property
	Schedule
    4.15(h)	Deposit
    and Investment Accounts
	Schedule
    5.1	Consents
	Schedule
    5.2(a) 	States
    of Formation, Qualification and Good Standing
	Schedule
    5.2(b) 	Subsidiaries;
    Ownership
	Schedule
    5.4	Federal
    Tax Identification Number; Unpaid Taxes, Fees
	Schedule
    5.6 	Other
    Names; Mergers, Acquisitions, Etc.
	Schedule
    5.7	Environmental
	Schedule
    5.8(b)	Litigation
	Schedule
    5.8(c)	Violations
	Schedule
    5.8(d)	Plans
	Schedule
    5.9 	Intellectual
    Property; Source Code Escrow Agreements;
	 	Challenges
    to Use
	Schedule
    5.10	Licenses
    and Permits
	Schedule
    5.12	Defaults
	Schedule
    5.14 	Labor
    Disputes
	Schedule
    5.28	Material
    Contracts
	Schedule
    7.3	Guarantees
	Schedule
    7.4	Investments
	Schedule
    7.5	Loans
	Schedule
    7.7	Stock
	Schedule
    7.8	Indebtedness
	Schedule
    7.10	Transactions
    with Affiliates
	Schedule
    7.12(a)	Domestic
    Subsidiaries
	Schedule
    7.12(b)	Partnership
    and Joint Ventures

 

    	vi

     

    

 

SECOND
AMENDED AND RESTATED

REVOLVING
CREDIT, TERM LOAN

AND

SECURITY
AGREEMENT

 

Second
Amended and Restated Revolving Credit, Term Loan and Security Agreement dated as of May 8, 2020 among PERMA-FIX ENVIRONMENTAL SERVICES,
INC., a corporation organized under the laws of the State of Delaware (“Borrower”), the financial institutions which
are now or which hereafter become a party hereto (collectively, the “Lenders” and individually a “Lender”)
and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as agent for Lenders (PNC, in such capacity, the “Agent”)(as
amended, restated, supplemented or otherwise modified from time to time, the “Agreement”), which Agreement amends
and restates that certain Amended and Restated Revolving Credit, Term Loan and Security Agreement dated as of October 31, 2011, as amended,
among the Borrower, the Lenders and the Agent.

 

IN
CONSIDERATION of the mutual covenants and undertakings herein contained, Borrower, Lenders and Agent hereby agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

1.1.
Accounting Terms.

 

All
accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity
with GAAP, applied on a consistent basis, as in effect from time to time, except as otherwise specifically prescribed herein.
If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in this Agreement or any
Other Document, and Borrower or the Required Lenders shall so request, Agent, Lenders and Borrower shall negotiate in good faith to amend
such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required
Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) Borrower shall provide to Agent and the Lenders financial statements and other documents required
under this Agreement or any Other Document or as reasonably requested hereunder setting forth a reconciliation between calculations of
such ratio or requirement made before and after giving effect to such change in GAAP.

 

1.2.
General Terms.

 

For
purposes of this Agreement the following terms shall have the following meanings:

 

    	1

     

    

 

“Acceptable
Government Agency Receivable” shall mean any Receivable as to which the account debtor is the United States of America, or
any state thereof, or any department, agency or instrumentality of any of them or is a subcontractor of any of the foregoing which has,
if required by Agent, assigned its right to payment of such Receivable to Agent pursuant to the Assignment of Claims Act of 1940, as
amended (31 U.S.C. Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et seq.) or has otherwise complied with other applicable statutes
or ordinances, to the extent such Receivable would otherwise be an Eligible Receivable.

 

“Acceptable
Unbilled Amounts” shall mean amounts representing services actually rendered and would be an Eligible Receivable but for the
fact that required documentation for billing such amounts has not yet been received.

 

“Accountants”
shall have the meaning set forth in Section 9.7 hereof.

 

“Advance
Rates” shall have the meaning set forth in 2.1(a)(y)(ii) hereof.

 

“Advances”
shall mean and include the Revolving Advances, Letter of Credit, as well as the Term Loan and the Equipment Loans.

 

“Affiliate”
of any Person shall mean (a) any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control
with such Person, or (b) any Person who is a director, managing member, general partner or executive officer (i) of such Person, (ii)
of any Subsidiary of such Person, if such Person is not a Credit Party or (iii) of any Person described in clause (a) above. For purposes
of this definition, control of a Person shall mean the power, direct or indirect, (x) to vote twenty-five percent (25%) or more of the
Equity Interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions
for any such Person, excluding Guarantors, or (y) to direct or cause the direction of the management and policies of such Person whether
by ownership of Equity Interests, contract or otherwise.

 

“Agent”
shall have the meaning set forth in the preamble to this Agreement and shall include its successors and assigns.

 

“Agreement”
shall mean this Second Amended and Restated Revolving Credit, Term Loan and Security Agreement, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Alternate
Base Rate” shall mean, for any day, a rate per annum equal to the highest of (i) the Base Rate in effect on such day, (ii)
the sum of the Overnight Bank Funding Rate in effect on such day plus 1/2 of 1% and (iii) the sum of Daily Simple SOFR in effect on such
day plus 1%, so long as Daily Simple SOFR is offered, ascertainable and not unlawful; provided, however, if the Alternate Base Rate as
determined above would be less than zero, then such rate shall be deemed to be zero. Any change in the Alternate Base Rate (or any component
thereof) shall take effect at the opening of business on the day such change occurs.

 

    	2

     

    

 

“Alternate
Source” shall have the meaning set forth in the definition of Overnight Bank Funding Rate.

 

“Anti-Corruption
Laws” shall mean the United States Foreign Corrupt Practices Act of 1977, as amended, the UK Bribery Act 2010, and any other
similar anti-corruption laws or regulations administered or enforced in any jurisdiction in which the Borrower or any of its Subsidiaries
conduct business.

 

“Anti-Terrorism
Law” shall mean any Law in force or hereinafter enacted related to terrorism, money laundering, or economic sanctions, including
the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., the USA PATRIOT Act, the International Emergency Economic Powers Act, 50
U.S.C. 1701, et. seq., the Trading with the Enemy Act, 50 U.S.C. App. 1, et seq., 18 U.S.C. § 2332d, and 18 U.S.C. § 2339b.

 

“Applicable
Law” shall mean all laws, rules and regulations applicable to the Person, conduct, transaction, covenant, Other Document or
contract in question, including all applicable common law and equitable principles; all provisions of all applicable state, federal and
foreign constitutions, statutes, rules, regulations, treaties, directives and orders of any Governmental Body, and all orders, judgments
and decrees of all courts and arbitrators.

 

“Applicable
Margin” for (i) Revolving Advances that are Term SOFR Rate Loans, 3.00% plus the applicable SOFR Adjustment, (ii) Revolving
Advances that are Domestic Rate Loans, 2.00%, (iii) Term Loans and Equipment Loans that are Term SOFR Rate Loans, 3.50% plus the applicable
SOFR Adjustment, and (iv) Term Loans and Equipment Loans that are Domestic Rate Loans, 2.50%.

 

“Authority”
shall have the meaning set forth in Section 4.19(d).

 

“Base
Rate” shall mean the base commercial lending rate of PNC as publicly announced to be in effect from time to time, such rate
to be adjusted automatically, without notice, on the effective date of any change in such rate. This rate of interest is determined from
time to time by PNC as a means of pricing some loans to its customers and is neither tied to any external rate of interest or index nor
does it necessarily reflect the lowest rate of interest actually charged by PNC to any particular class or category of customers of PNC.

 

“Beneficial
Owner” shall mean each of the following: (a) each individual, if any, who, directly or indirectly, owns 25% or more of Borrower’s
equity interests and (b) a single individual with significant responsibility to control, manager, or direct Borrower.

 

“Blocked
Accounts” shall have the meaning set forth in Section 4.15(h).

 

“Blocked
Account Bank” shall have the meaning set forth in Section 4.15(h).

 

“Borrower”
shall have the meaning set forth in the preamble to this Agreement and shall extend to all permitted successors and assigns of such Person.

 

“Borrower’s
Account” shall have the meaning set forth in Section 2.8.

 

    	3

     

    

 

“Borrowing
Base Certificate” shall mean a certificate in substantially the form of Exhibit 1.2 duly executed by the chief executive officer,
chief financial officer, secretary or assistant secretary of Borrower and delivered to Agent, appropriately completed, by which such
officer shall certify to Agent the Formula Amount and calculation thereof as of the date of such certificate.

 

“Business
Day” shall mean any day other than Saturday or Sunday or a legal holiday on which commercial banks are authorized or required
by law to be closed for business in East Brunswick, New Jersey; provided that when used in connection with an amount that bears interest
at a rate based on SOFR or any direct or indirect calculation or determination of SOFR, the “Business Day” means any such
day that is also a U.S. Government Securities Business Day.

 

“Capital
Expenditures” shall mean expenditures made or liabilities incurred for the acquisition of any fixed assets or improvements,
replacements, substitutions or additions thereto which have a useful life of more than three years, including the total principal portion
of Capitalized Lease Obligations, which, in accordance with GAAP, would be classified as capital expenditures.

 

“Capital
Stock” shall mean (i) in the case of a corporation, capital stock, (ii) in the case of an association or business entity, any
and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (iii) in the case of a
partnership, partnership interests (whether general or limited), (iv) in the case of a limited liability company, membership interests
and (v) any other equity interest or participation that confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.

 

“Capitalized
Lease Obligation” shall mean any Indebtedness of Borrower represented by obligations under a lease that is required to be capitalized
for financial reporting purposes in accordance with GAAP.

 

“Cash
Management Products” shall mean any one or more of the following types of services or facilities extended to Borrower by Agent,
any Lender or any Affiliate of Agent or a Lender in reliance on Agent’s or such Lender’s agreement to indemnify such Affiliate:
(i) Automated Clearing House (ACH) transactions and other similar money transfer services; (ii) cash management, including controlled
disbursement and lockbox services; (iii) establishing and maintaining deposit accounts; and (iv) credit cards or stored value cards.

 

“CERCLA”
shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §§9601 et
seq., as amended from time to time.

 

“Certificate
of Beneficial Ownership” shall mean a certificate in form and substance acceptable to Agent (as amended or modified by Agent
from time to time in its sole discretion), certifying, among other things, the Beneficial Owner of Borrower.

 

    	4

     

    

 

“Change
in Law” shall mean the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any
Applicable Law; (b) any change in any Applicable Law or in the administration, implementation, interpretation or application thereof
by any Governmental Body; or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force
of law) by any Governmental Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street
Reform and Consumer Protection Act and all requests, rules, regulations, guidelines, interpretations or directives thereunder or issued
in connection therewith (whether or not having the force of Applicable Law) and (y) all requests, rules, regulations, guidelines, interpretations
or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States or foreign regulatory authorities (whether or not having the force of law), in each case pursuant
to Basel III, shall in each case be deemed to be a Change in Law regardless of the date enacted, adopted, issued, promulgated or implemented.

 

“Change
of Control” shall mean the occurrence of any event (whether in one or more transactions) that results in (a) Mark Duff ceasing
to serve as a chief executive officer of Borrower in substantially the same capacity in which such Person served as of the Closing Date
or (b) Persons who are members of Borrower’s board of directors on the Closing Date ceasing to constitute at least fifty percent
(50%) of Borrower’s board of directors, provided, however, (i) that a 50% change in Persons who are members of Borrower’s
board of directors may be permitted on a one-time only basis concurrent with a new subordinated debt or equity capital infusion to Borrower,
and (ii) any individual who becomes a member of Borrower’s board of directors after the Closing Date whose election or nomination
for election by holders of Borrower’s voting stock was approved by vote of at least a majority of the individuals constituting
Borrower’s board of directors on the Closing Date shall be considered as member of the board of directors of Borrower as of the
Closing Date.

 

“Charges”
shall mean all taxes, charges, fees, imposts, levies or other assessments, including, without limitation, all net income, gross income,
gross receipts, sales, use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll,
employment, social security, unemployment, excise, severance, stamp, occupation and property taxes, custom duties, fees, assessments,
liens, claims and charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts,
imposed by any taxing or other authority, domestic or foreign (including, without limitation, the Pension Benefit Guaranty Corporation
or any environmental agency or superfund), upon the Collateral, Borrower or any of its Affiliates.

 

“Closing
Date” shall mean May 8, 2020 or such other date as may be agreed to by the parties hereto.

 

“Code”
shall mean the Internal Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute
of similar import, and the rules and regulations thereunder, as from time to time in effect.

 

    	5

     

    

 

“Collateral”
shall mean and include all of the following assets, properties, rights and interests of each Credit Party, whether now owned and existing
or hereafter arising, acquired or created, and wherever located:

 

(a)
all Receivables;

 

(b)
all Equipment;

 

(c)
all General Intangibles;

 

(d)
all Inventory;

 

(e)
all Investment Property;

 

(f)
all Real Property;

 

(g)
all Subsidiary Stock;

 

(h)
all of such Person’s right, title and interest in and to, whether now owned or hereafter acquired and wherever located, (i) its
respective goods and other property including, but not limited to, all merchandise returned or rejected by Customers, relating to or
securing any of the Receivables; (ii) all of such Person’s rights as a consignor, a consignee, an unpaid vendor, mechanic, artisan,
or other lienor, including stoppage in transit, setoff, detinue, replevin, reclamation and repurchase; (iii) all additional amounts due
to such Person from any Customer relating to the Receivables; (iv) other property, including warranty claims, relating to any goods securing
the Obligations; (v) all of such Person’s contract rights, rights of payment which have been earned under a contract right, instruments
(including promissory notes), documents, chattel paper (including electronic chattel paper), warehouse receipts, deposit accounts, letters
of credit and money; (vi) each commercial tort claim in existence as of the date hereof and in which a security interest is hereafter
granted to Agent by such Person pursuant to the provision of Section 4.1 or otherwise; (vii) if and when obtained by such Person, all
real and personal property of third parties in which such Person has been granted a lien or security interest as security for the payment
or enforcement of Receivables, (viii) all letter of credit rights (whether or not the respective letter of credit is evidenced by a writing);
(ix) all supporting obligations; and (x) any other goods, personal property or real property now owned or hereafter acquired in which
such Person has expressly granted a security interest or may in the future grant a security interest to Agent hereunder, or in any amendment
or supplement hereto or thereto, or under any other agreement between Agent and such Person;

 

(i)
all of such Person’s ledger sheets, ledger cards, files, correspondence, records, books of account, business papers, computers,
computer software (owned by such Person or in which it has an interest), computer programs, tapes, disks and documents relating to (a),
(b), (c), (d), (e), (f), (g) or (h) of this Paragraph;

 

(j)
all of such Person’s cash and cash equivalents; and

 

    	6

     

    

 

(k)
all proceeds and products of (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j) in whatever form, including, but not limited to: cash,
deposit accounts (whether or not comprised solely of proceeds), certificates of deposit, insurance proceeds (including hazard, flood
and credit insurance), negotiable instruments and other instruments for the payment of money, including, without limitation, amounts
due from any Person and tax refunds, chattel paper, security agreements, documents, eminent domain proceeds, condemnation proceeds and
tort claim proceeds.

 

“Commercial
Broker Receivable” shall mean any Eligible Receivable due from an account debtor listed on Schedule 1.2(a) who is a third party
intermediary with whom a Credit Party does business but who is not the Person benefitted by the services of the Credit Party.

 

“Commercial
Receivable” shall mean any Eligible Receivable due from an account debtor that is not a Commercial Broker Receivable, an Acceptable
Government Agency Receivable, or an Acceptable Unbilled Receivable.

 

“Commitment
Percentage” shall mean for any Lender party to this Agreement on the Closing Date, the percentage set forth below such Lender’s
name on the signature page hereof as same may be adjusted upon any assignment by a Lender pursuant to Section 15.3 (c) or (d) hereof,
and for any Lender that becomes a party to this Agreement pursuant to a Commitment Transfer Supplement or Modified Commitment Transfer
Supplement, the percentage set forth on Schedule 1 to such Commitment Transfer Supplement or Modified Commitment Transfer Supplement,
as applicable.

 

“Commitment
Transfer Supplement” shall mean a document in the form of Exhibit 15.3 hereto, properly completed and otherwise in form and
substance satisfactory to Agent by which the Purchasing Lender purchases and assumes a portion of the obligation of Lenders to make Advances
under this Agreement.

 

“Compliance
Certificate” shall mean a compliance certificate substantially in the form attached hereto as Exhibit 1.2 (a) to be signed
by the Chief Executive Officer, President, Chief Financial Officer or Controller of Borrower, which shall state that, based on an examination
sufficient to permit such officer to make an informed statement, (i) no Default or Event of Default exists, or if such is not the case,
specifying such Default or Event of Default, its nature, when it occurred, whether it is continuing and the steps being taken by Borrower
with respect to such default and, such certificate shall have appended thereto calculations which set forth Borrower’s compliance
with the requirements or restrictions imposed by Sections 6.5, 7.4, 7.5, 7.6, 7.7, 7.8, 7.10 and 7.11; and (ii) that to the best of such
officer’s knowledge, Borrower is in compliance in all material respects with all federal, state and local Environmental Laws that
would have a Material Adverse Effect, or if such is not the case, specifying all areas of non-compliance and the proposed action Borrower
will implement in order to achieve full compliance.

 

    	7

     

    

 

“Conforming
Changes” means, with respect to the Term SOFR Rate or any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “Alternate Base Rate,” the definition of “Business Day,” the
definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing
requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage
provisions, and other technical, administrative or operational matters) that the Agent decides may be appropriate to reflect the adoption
and implementation of the Term SOFR Rate or such Benchmark Replacement and to permit the administration thereof by the Agent in a manner
substantially consistent with market practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively
feasible or if the Agent determines that no market practice for the administration of the Term SOFR Rate or the Benchmark Replacement
exists, in such other manner of administration as the Agent decides is reasonably necessary in connection with the administration of
this Agreement and the Other Documents).

 

“Consents”
shall mean all filings and all licenses, permits, consents, approvals, authorizations, qualifications and orders of Governmental Bodies
and other third parties, domestic or foreign, necessary to carry on Borrower’s business or necessary (including to avoid a conflict
or breach under any agreement, instrument, other document, license, permit or other authorization) for the execution, delivery or performance
of this Agreement, the Other Documents, including any Consents required under all applicable federal, state or other Applicable Law.

 

“Consigned
Inventory” shall mean Inventory of Borrower that is in the possession of another Person on a consignment, sale or return, or
other basis that does not constitute a final sale and acceptance of such Inventory.

 

“Contract
Rate” has the meaning set forth in Section 3.1.

 

“Controlled
Group” shall mean, at any time, Borrower and all members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control and all other entities which, together with Borrower, are treated as a single employer
under Section 414 of the Code.

 

“Covered
Entity” shall mean (a) Borrower, each of Borrower’s Subsidiaries, all Guarantors and all pledgers of Collateral and (b)
each Person that, directly or indirectly, is in control of a Person described in clause (a) above. For purposes of this definition, control
of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests
having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person,
or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity interests,
contract or otherwise.

 

“Credit
Parties” shall mean, collectively, Borrower and Guarantors.

 

“Customer”
shall mean and include the account debtor with respect to any Receivable and/or the prospective purchaser of goods, services or both
with respect to any contract or contract right, and/or any party who enters into or proposes to enter into any contract or other arrangement
with any Credit Party, pursuant to which Borrower is to deliver any personal property or perform any services.

 

    	8

     

    

 

“Customs”
shall have the meaning set forth in Section 2.11(b) hereof.

 

“Daily
Simple SOFR” means, for any day (a “SOFR Rate Day”), the interest rate per annum determined by the Agent
by dividing (the resulting quotient rounded upwards, at the Agent’s discretion, to the nearest 1/100th of 1%) (A) SOFR for the
day (the “SOFR Determination Date”) that is two (2) Business Days prior to (i) such SOFR Rate Day if such SOFR Rate
Day is a Business Day or (ii) the Business Day immediately preceding such SOFR Rate Day if such SOFR Rate Day is not a Business Day,
by (B) a number equal to 1.00 minus the SOFR Reserve Percentage, in each case, as such SOFR is published by the Federal Reserve Bank
of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New
York, currently at http://www.newyorkfed.org, or any successor source identified by the Federal Reserve Bank of New York or its
successor administrator for the secured overnight financing rate from time to time. If Daily Simple SOFR as determined above would be
less than the SOFR Floor, then Daily Simple SOFR shall be deemed to be the SOFR Floor. If SOFR for any SOFR Determination Date has not
been published or replaced with a Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the second Business Day immediately
following such SOFR Determination Date, then SOFR for such SOFR Determination Date will be SOFR for the first Business Day preceding
such SOFR Determination Date for which SOFR was published in accordance with the definition of “SOFR”; provided that SOFR
determined pursuant to this sentence shall be used for purposes of calculating Daily Simple SOFR for no more than 3 consecutive SOFR
Rate Days. If and when Daily Simple SOFR as determined above changes, any applicable rate of interest based on Daily Simple SOFR will
change automatically without notice to the Borrower, effective on the date of any such change.

 

“Default”
shall mean an event, circumstance or condition which, with the giving of notice or passage of time or both, would constitute an Event
of Default.

 

“Default
Rate” shall have the meaning set forth in Section 3.1 hereof.

 

“Defaulting
Lender” shall have the meaning set forth in Section 2.23(a) hereof.

 

“Depository
Accounts” shall have the meaning set forth in Section 4.15(h) hereof.

 

“Designated
Lender” shall have the meaning set forth in Section 15.2(b) hereof.

 

“Documents”
shall have the meaning set forth in Section 8.1(c) hereof.

 

“Dollar”
and the sign “$” shall mean lawful money of the United States of America.

 

“Domestic
Rate Loan” shall mean any Advance that bears interest based upon the Alternate Base Rate.

 

    	9

     

    

 

“Domestic
Subsidiaries” shall mean, with respect to any Person, any Subsidiary of such Person which is incorporated or organized under
the laws of any state of the United States or the District of Columbia.

 

“Drawing
Date” shall have the meaning set forth in Section 2.12(b) hereof.

 

“Early
Termination Date” shall have the meaning set forth in Section 13.1 hereof.

 

“EBITDA”
shall mean for any period, for Borrower, the sum of (i) Net Income for such period, plus (ii) all Interest Expense for such period, plus
(iii) all charges against income of Borrower for such period for federal, state and local taxes expenses, plus (iv) depreciation expenses
for such period, plus (v) amortization expenses for such period, plus (vi) any extraordinary, unusual or non-recurring non-cash expenses
or losses (including non-cash losses on sales of assets outside of the Ordinary Course of Business) during such period, minus (vii) any
extraordinary, unusual or non-recurring non-cash income or gains (including gains on the sale of assets outside of the Ordinary Course
of Business) during such period, in each case, only to the extent included in the statement of net income for such period. For purposes
of calculating EBITDA (i) add-backs for (a) Agent’s $50,000 amendment fee charged in connection with the Agreement, (b) distributions
received by Borrower from joint ventures approved by Agent and (c) expenses incurred in connection with Borrower’s PPP loan will
be permitted unless and until a portion of such loan is not forgiven; (ii) cash investments by Borrower in joint ventures approved by
Agent will be a deduction; and (iii) EBITDA generated by any joint venture will be excluded. For avoidance of doubt, the PPP expenses
incurred for the fiscal quarter ending as of June 30, 2020 are $5,179,225.41 and for the fiscal quarter ending as of September 30, 2020
are $139,068.70.

 

“Effective
Federal Funds Rate” means for any day the rate per annum (based on a year of 360 days and actual days elapsed and rounded upward
to the nearest 1/100 of 1% announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average
of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced
by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces
the weighted average it refers to as the “Effective Federal Funds Rate” as of the date of this Agreement; provided
that if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the “Effective Federal Funds Rate”
for such day shall be the Effective Federal Funds Rate for the last day on which such rate was announced. Notwithstanding the foregoing,
if the Effective Federal Funds Rate as determined under any method above would be less than zero percent (0.00%), such rate shall be
deemed to be zero percent (0.00%) for purposes of this Agreement.

 

“Eligible
Receivables” shall mean and include with respect to each Credit Party, each Receivable of such Credit Party arising in the
Ordinary Course of Business and which Agent, in its reasonable credit judgment, shall deem to be an Eligible Receivable, based on such
considerations as Agent may from time to time deem appropriate. A Receivable shall not be deemed eligible unless such Receivable is subject
to Agent’s first priority perfected security interest and no other Lien (other than Permitted Encumbrances), and is evidenced by
an invoice or other documentary evidence satisfactory to Agent. In addition, no Receivable shall be an Eligible Receivable if:

 

    	10

     

    

 

(a)
it arises out of a sale made by any Credit Party to any other Credit Party or to an Affiliate of any Credit Party or to a Person controlled
by an Affiliate of a Credit Party, unless it arose in connection with the sale of goods or rendition of services in the ordinary course
of business, on an arms’ length basis, and would otherwise constitute a current asset in conformity with GAAP;

 

(b)
with respect to (i) an Acceptable Government Agency Receivable, it is due or unpaid more than sixty (60) days after the original due
date or is more than one hundred fifty (150) days from the original invoice date; (ii) an Acceptable Unbilled Receivable, it is unpaid
more than sixty (60) days from the date the service was rendered; (iii) a Commercial Broker Receivable, it is due or unpaid more than
ninety (90) days after the original due date or is more than one hundred twenty (120) days from the original invoice date; and (iv) Commercial
Receivable, it is due or unpaid more than sixty (60) days after the original invoice date or is more than ninety (90) days after the
original invoice date;

 

(c)
fifty percent (50%) or more of the Receivables from such Customer are not deemed Eligible Receivables hereunder. Such percentage may,
in Agent’s reasonable discretion, be increased or decreased from time to time based on the Customer’s financial condition;

 

(d)
any covenant, representation or warranty contained in this Agreement with respect to such Receivable has been breached;

 

(e)
the Customer shall (i) apply for, suffer, or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee
or liquidator of itself or of all or a substantial part of its property or call a meeting of its creditors, (ii) admit in writing its
inability, or be generally unable, to pay its debts as they become due or cease operations of its present business, (iii) make a general
assignment for the benefit of creditors, (iv) commence a voluntary case under any state or federal bankruptcy laws (as now or hereafter
in effect), (v) be adjudicated a bankrupt or insolvent under such bankruptcy laws by a court of competent jurisdiction, (vi) file a petition
seeking to take advantage of any other law providing for the relief of debtors, (vii) acquiesce to, or fail to have dismissed, any petition
which is filed against it in any involuntary case under such bankruptcy laws, or (viii) take any action for the purpose of effecting
any of the foregoing;

 

(f)
other than Foreign Receivables, the sale is to a Customer outside the United States of America or Canada, unless the sale is on letter
of credit, guaranty or acceptance terms or a bond has been posted, in each case acceptable to Agent in its reasonable discretion;

 

    	11

     

    

 

(g)
the sale to the Customer is on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment or any other repurchase
or return basis or is evidenced by chattel paper;

 

(h)
Agent believes, in its reasonable judgment, that collection of such Receivable is insecure or that such Receivable may not be paid by
reason of the Customer’s financial inability to pay;

 

(i)
other than with respect to an Acceptable Government Agency Receivable, the Customer is the United States of America, any state or any
department, agency or instrumentality of any of them, unless Borrower assigns its right to payment of such Receivable to Agent pursuant
to the Assignment of Claims Act of 1940, as amended (31 U.S.C. Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et seq.) or has
otherwise complied with other applicable statutes or ordinances;

 

(j)
the goods giving rise to such Receivable have not been delivered to and accepted by the Customer or the services giving rise to such
Receivable have not been performed by one of the Credit Parties and accepted by the Customer or the Receivable otherwise does not represent
a final sale, other than Acceptable Unbilled Amounts;

 

(k)
the Receivables of the Customer exceed a credit limit determined by Agent, in its reasonable discretion, to the extent such Receivable
exceeds such limit and such limit is reasonably determined by Agent based upon Customer’s financial condition;

 

(l)
the Receivable is subject to any offset, deduction, defense, dispute, or counterclaim (but only as to that portion of the Receivable
subject to such offset, deduction, defense, dispute or counterclaim), the Customer is also a creditor or supplier of a Credit Party (but
only as to that portion of the Receivable that does not exceed the amount owed by the applicable Credit Party to such creditor or supplier)
or the Receivable is contingent in any respect or for any reason;

 

(m)
any Credit Party has made any agreement with any Customer for any deduction therefrom, except for discounts or allowances made in the
Ordinary Course of Business for prompt payment, all of which discounts or allowances are reflected in the calculation of the face value
of each respective invoice related thereto;

 

(n)
any return, rejection or repossession of the merchandise has occurred or the rendition of services has been disputed;

 

(o)
such Receivable is not payable to any Credit Party; or

 

(p)
such Receivable is not otherwise satisfactory to Agent as determined in good faith by Agent in the exercise of its discretion in its
sole credit judgment exercised in good faith.

 

    	12

     

    

 

“Embargoed
Property” means any property (a) beneficially owned, directly or indirectly, by a Sanctioned Person; (b) that is due to or
from a Sanctioned Person; (c) in which a Sanctioned Person otherwise holds any interest; (d) that is located in a Sanctioned Country;
or (e) that otherwise would cause any actual or possible violation by the Lenders or Agent of any applicable Anti-Terrorism Law if the
Lenders were to obtain an encumbrance on, lien on, pledge of, or security interest in such property or provide services in consideration
of such property.

 

“Environmental
Complaint” shall have the meaning set forth in Section 4.19(d) hereof.

 

“Environmental
Laws” shall mean all federal, state and local environmental, land use, zoning, health, chemical use, safety and sanitation
laws, statutes, ordinances and codes relating to the protection of the environment and/or governing the use, storage, treatment, generation,
transportation, processing, handling, production or disposal of Hazardous Substances and the rules, regulations, policies, guidelines,
interpretations, decisions, orders and directives of federal, state and local governmental agencies and authorities with respect thereto.

 

“Equipment”
shall mean and include all of Borrower’s goods (other than Inventory) whether now owned or hereafter acquired and wherever located
including, without limitation, all equipment, machinery, apparatus, motor vehicles, fittings, furniture, furnishings, fixtures, parts,
accessories and all replacements and substitutions therefor or accessions thereto.

 

“Equipment
Loans” shall have the meaning set forth in Section 2.4(b) hereof.

 

“Equipment
Note” shall mean, collectively, the promissory note referred to in Section 2.4(b) hereof.

 

“Equity
Interests” of any Person shall mean any and all shares, rights to purchase, options, warrants, general, limited or limited
liability partnership interests, member interests, participation or other equivalents of or interest in (regardless of how designated)
equity of such Person, whether voting or nonvoting, including common stock, preferred stock, convertible securities or any other “equity
security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange
Act).

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time and the rules and regulations promulgated
thereunder.

 

“Erroneous
Payment” shall have the meaning set forth in Section 14.13(a) hereof.

 

“Erroneous
Payment Deficiency Assignment” shall have the meaning set forth in Section 14.13(d) hereof.

 

“Erroneous
Payment Impacted Class” shall have the meaning set forth in Section 14.13(d) hereof.

 

“Erroneous
Payment Return Deficiency” shall have the meaning set forth in Section 14.13(d) hereof.

 

    	13

     

    

 

“Erroneous
Payment Subrogation Rights” shall have the meaning set forth in Section 14.13(d) hereof.

 

“Event
of Default” shall have the meaning set forth in Article X hereof.

 

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

 

“FATCA”
shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof.

 

“Fixed
Charge Coverage Ratio” shall mean and include, with respect to any fiscal period, the ratio of (A) EBITDA for such period minus
Unfinanced Capital Expenditures made during such period minus cash taxes with respect to income paid by Borrower during such
period minus any cash dividends or distributions made by Borrower during such period to (B) all Senior Debt Payments during such
period. For purposes of calculating the Fixed Charge Coverage Ratio (i) any prepayments on the Subordinated Loan following Borrower’s
receipt of the Release of Restricted Insurance Closure Fund shall be excluded from Senior Debt Payments provided Undrawn Availability
is greater than $3,000,000 after making such prepayment; (ii) any payments made by Borrower on its PPP loan during fiscal year 2020 only
shall be excluded; and (iii) up to $1,000,000 in Capital Expenditures incurred during fiscal year 2021 in connection with Borrower’s
Diversified Scientific Services unit at its Kingston, Tennessee facility shall be deemed to be financed Capital Expenditures.

 

“Foreign
Receivables” shall mean those Receivables of each Credit Party that would otherwise satisfy all of the applicable criteria
for Eligible Receivables but the account debtor of such Receivables is not a resident of the United States of America or Canada.

 

“Foreign
Subsidiary” of any Person, shall mean any Subsidiary of such Person that is not organized or incorporated in the United States
or any State or territory thereof.

 

“Formula
Amount” shall have the meaning set forth in Section 2.1(a).

 

“GAAP”
shall mean generally accepted accounting principles in the United States of America in effect from time to time.

 

“General
Intangibles” shall mean and include all of each Credit Party’s general intangibles, whether now owned or hereafter acquired,
including, without limitation, all payment intangibles, all choses in action, causes of action, corporate or other business records,
inventions, designs, patents, patent applications, equipment formulations, manufacturing procedures, quality control procedures, trademarks,
trademark applications, service marks, trade secrets, goodwill, copyrights, design rights, permits, software, computer information, source
codes, object codes, records and updates, registrations, licenses, franchises, customer lists, tax refunds, tax refund claims, computer
programs, all claims under guaranties, security interests or other security held by or granted to a Credit Party to secure payment of
any of the Receivables by a Customer (other than to the extent covered by Receivables), all other intellectual property or proprietary
rights, all rights of indemnification and all other intangible property of every kind and nature (other than Receivables).

 

    	14

     

    

 

“Governmental
Acts” shall have the meaning set forth in Section 2.17.

 

“Governmental
Body” shall mean any nation or government, any state or other political subdivision thereof or any entity, authority, agency,
division or department exercising the executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to a government (including any supra-national bodies such as the European Union or the European Central Bank) and any group
or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial
Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or
similar authority to any of the foregoing).

 

“Guarantor”
shall mean Perma-Fix Canada, Inc. and the active Domestic Subsidiaries of Borrower (excluding limited liability companies and joint ventures
not wholly owned by Borrower), Perma-Fix Northwest Richland, Inc., a Washington corporation, Safety and Ecology Corporation, a Nevada
corporation, SEC Federal Services Corporation, a Nevada corporation, SEC Radcon Alliance, LLC, a Tennessee limited liability company,
and any other Person who may hereafter guarantee payment or performance of the whole or any part of the Obligations and “Guarantors”
means collectively all such Persons.

 

“Hazardous
Discharge” shall have the meaning set forth in Section 4.19(d) hereof.

 

“Hazardous
Substance” shall mean, without limitation, any flammable explosives, radon, radioactive materials, asbestos, urea formaldehyde
foam insulation, polychlorinated biphenyls, petroleum and petroleum products, methane, hazardous materials, Hazardous Wastes, hazardous
or Toxic Substances or Hazardous Waste as defined in CERCLA, the Hazardous Materials Transportation Act, as amended (49 U.S.C. Sections
1801, et seq.), RCRA, or any other applicable Environmental Law and in the regulations adopted pursuant thereto.

 

“Hazardous
Wastes” shall mean all waste materials subject to regulation under CERCLA, RCRA or applicable state law, and any other applicable
Federal and state laws now in force or hereafter enacted relating to hazardous waste disposal.

 

“Hedge
Liabilities” shall have the meaning provided in the definition of “Lender-Provided Interest Rate Hedge”.

 

“Indebtedness”
of a Person at a particular date shall mean all obligations of such Person which in accordance with GAAP would be classified upon a balance
sheet as liabilities (except capital stock and surplus earned or otherwise) and in any event, without limitation by reason of enumeration,
shall include all indebtedness, debt and other similar monetary obligations of such Person whether direct or guaranteed, and all premiums,
if any, due at the required prepayment dates of such indebtedness, and all indebtedness secured by a Lien on assets owned by such Person,
whether or not such indebtedness actually shall have been created, assumed or incurred by such Person. Any indebtedness of such Person
resulting from the acquisition by such Person of any assets subject to any Lien shall be deemed, for the purposes hereof, to be the equivalent
of the creation, assumption and incurring of the indebtedness secured thereby, whether or not actually so created, assumed or incurred,
except the Credit Parties’ obligations in connection with their Finite Risk Policies shall not be considered Indebtedness for the
purpose of this Agreement.

 

    	15

     

    

 

“Ineligible
Security” shall mean any security which may not be underwritten or dealt in by member banks of the Federal Reserve System under
Section 16 of the Banking Act of 1933 (12 U.S.C. Section 24, Seventh), as amended.

 

“Intellectual
Property” shall mean property constituting under any Applicable Law a patent, patent application, copyright, trademark, service
mark, trade name, mask work, trade secret or license or other right to use any of the foregoing.

 

“Intellectual
Property Claim” shall mean the assertion by any Person of a claim (whether asserted in writing, by action, suit or proceeding
or otherwise) that Borrower’s ownership, use, marketing, sale or distribution of any Inventory, Equipment, Intellectual Property
or other property or asset is violative of any ownership of or right to use any Intellectual Property of such Person.

 

“Interest
Expense” shall mean for any period interest expense, net of cash interest income, of Borrower for such period, as determined
in accordance with GAAP.

 

“Interest
Period” shall mean the period provided for any Term SOFR Rate Loan pursuant to Section 2.2(b).

 

“Interest
Rate Hedge” shall mean an interest rate exchange, collar, cap, swap, adjustable strike cap, adjustable strike corridor or similar
agreements entered into by Borrower or its Subsidiaries in order to provide protection to, or minimize the impact upon, Borrower, any
Guarantor and/or their respective Subsidiaries of increasing floating rates of interest applicable to Indebtedness.

 

“Intercompany
Receivables” shall mean all assets and liabilities, however arising, which are due to any Credit Party from, which are due
to any Credit Party to, or which otherwise arise from any transaction by any Credit Party with any Affiliate of any Credit Party.

 

“Inventory”
shall mean and include all of each Credit Party’s now owned or hereafter acquired goods, merchandise and other personal property,
wherever located, to be furnished under any consignment arrangement, contract of service or held for sale or lease, all raw materials,
work in process, finished goods and materials and supplies of any kind, nature or description which are or might be used or consumed
in any Credit Party’s business or used in selling or furnishing such goods, merchandise and other personal property, and all documents
of title or other documents representing them.

 

“Investment
Account” shall have the meaning provided in Section 7.4.

 

    	16

     

    

 

“Investment
Property” shall mean and include all of each Credit Party’s now owned or hereafter acquired securities (whether certificated
or uncertificated), securities entitlements, securities accounts, commodities contracts and commodities accounts.

 

“Issuer”
shall mean PNC in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“Law”
shall mean any law(s) (including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, issued guidance, release,
ruling, order, executive order, injunction, writ, decree, bond, judgment, authorization or approval, lien or award of or any settlement
arrangement, by agreement, consent or otherwise, with any Governmental Body, foreign or domestic.

 

“Lender”
and “Lenders” shall have the meaning ascribed to such term in the preamble to this Agreement and shall include each
Person which becomes a transferee, successor or assign of any Lender.

 

“Lender-Provided
Interest Rate Hedge” shall mean an Interest Rate Hedge which is provided by any Lender and with respect to which Agent confirms
meets the following requirements: such Interest Rate Hedge (i) is documented in a standard International Swap Dealer Association Agreement,
(ii) provides for the method of calculating the reimbursable amount of the provider’s credit exposure in a reasonable and customary
manner, and (iii) is entered into for hedging (rather than speculative) purposes. The liabilities of Borrower to the provider of any
Lender-Provided Interest Rate Hedge (the “Hedge Liabilities”) shall be “Obligations” hereunder, guaranteed
obligations and secured obligations under the Secured Subsidiaries Guaranty and otherwise treated as Obligations for purposes of each
of the Other Documents. The Liens securing the Hedge Liabilities shall be pari passu with the Liens securing all other Obligations under
this Agreement and the Other Documents.

 

“Letter
of Credit Borrowing” shall have the meaning set forth in Section 2.12(d).

 

“Letter
of Credit Documents” shall mean, with respect to any Letter of Credit, such Letter of Credit, any amendments thereto, any documents
delivered in connection therewith, any application therefor, and any agreements, instruments, guarantees or other documents (whether
general in application or applicable only to such Letter of Credit) governing or providing for (i) the rights and obligations of the
parties concerned or at risk or (ii) any collateral security for such obligations.

 

“Letter
of Credit Fees” shall have the meaning set forth in Section 3.2.

 

“Letter
of Credit Sublimit” shall mean $10,000,000.

 

“Letters
of Credit” shall mean any letter of credit issued hereunder. A Letter of Credit may be a standby and/or a trade letter of credit.

 

    	17

     

    

 

“License
Agreement” shall mean any agreement between Borrower and a Licensor pursuant to which Borrower is authorized to use any Intellectual
Property in connection with the manufacturing, marketing, sale or other distribution of any Inventory of Borrower or otherwise in connection
with Borrower’s business operations.

 

“Licensor”
shall mean any Person from whom Borrower obtains the right to use (whether on an exclusive or non-exclusive basis) any Intellectual Property
in connection with Borrower’s manufacture, marketing, sale or other distribution of any Inventory or otherwise in connection with
Borrower’s business operations.

 

“Licensor/Agent
Agreement” shall mean an agreement between Agent and a Licensor, in form and content satisfactory to Agent, by which Agent
is given the unqualified right, vis-à-vis such Licensor, to enforce Agent’s Liens with respect to and to dispose of Borrower’s
Inventory with the benefit of any Intellectual Property applicable thereto, irrespective of Borrower’s default under any License
Agreement with such Licensor.

 

“Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, security interest, lien (whether statutory or otherwise),
Charge, claim or encumbrance, or preference, priority or other security agreement or preferential arrangement held or asserted in respect
of any asset of any kind or nature whatsoever including, without limitation, any conditional sale or other title retention agreement,
any lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing
statement under the Uniform Commercial Code or comparable law of any jurisdiction.

 

“Lien
Waiver Agreement” shall mean an agreement which is executed in favor of Agent by a Person who owns or occupies premises at
which any Collateral may be located from time to time and by which such Person shall waive any Lien that such Person may ever have with
respect to any of the Collateral and shall authorize Agent from time to time to enter upon the premises to inspect or remove the Collateral
from such premises or to use such premises to store or dispose of such Collateral.

 

“Material
Adverse Effect” shall mean a material adverse effect on (a) the condition (financial or otherwise), results of operations,
assets, business or properties of Borrower on a consolidated basis, (b) the ability of Credit Parties on a consolidated basis to duly
and punctually pay or perform the Obligations in accordance with the terms thereof, (c) the value of the Collateral, or Agent’s
Liens on the Collateral or the priority of any such Lien or (d) the practical realization of the benefits of Agent’s and each Lender’s
rights and remedies under this Agreement and the Other Documents. Notwithstanding the foregoing and for a period of ninety (90) days
(or such longer period that Agent in its sole discretion may agree to) following the date of this Agreement, no Material Adverse Effect
shall be deemed to have occurred under clause (a) of the foregoing definition for the purposes of the representations qualified by “Material
Adverse Effect” set forth in this Agreement made on the Closing Date or deemed made upon each Advance, to the extent caused (in
the reasonable determination of Agent) solely and exclusively by the COVID-19 pandemic and its effects upon the operations of Borrower.
The foregoing exclusion shall not limit, impair, modify, restrict or waive any Event of Default or any of Agent’s rights or remedies
arising therefrom or as a consequence thereof.

 

    	18

     

    

 

“Material
Contract” shall mean any contract, agreement, permit or license, written or oral, of a Borrower the failure to comply with
which would have a Material Adverse Effect.

 

“Maximum
Equipment Loan Amount” shall mean $1,000,000.

 

“Maximum
Face Amount” shall mean, with respect to any outstanding Letter of Credit, the face amount of such Letter of Credit including
all automatic increases provided for in such Letter of Credit, whether or not any such automatic increase has become effective.

 

“Maximum
Loan Amount” shall mean $20,350,797.52 less repayments of the Term Loan and the Equipment Loans.

 

“Maximum
Revolving Advance Amount” shall mean $18,000,000.

 

“Maximum
Undrawn Amount” shall mean with respect to any outstanding Letter of Credit, the amount of such Letter of Credit that is or
may become available to be drawn, including all automatic increases provided for in such Letter of Credit, whether or not any such automatic
increase has become effective.

 

“Modified
Commitment Transfer Supplement” shall have the meaning set forth in Section 15.3(d).

 

“Mortgage”
shall mean any mortgage or deed of trust on the Real Property together with all extensions, renewals, amendments, supplements, modifications,
substitutions and replacements thereto and thereof.

 

“Multiemployer
Plan” shall mean a “multiemployer plan” as defined in Sections 3(37) and 4001(a)(3) of ERISA.

 

“Multiple
Employer Plan” shall mean a Plan which has two or more contributing sponsors (including Borrower or any member of the Controlled
Group) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

 

“Net
Cash Proceeds” means, with respect to (a) any sale, lease, transfer or other voluntary or involuntary disposition of any property
of Borrower or any of its Subsidiaries (other than sales or other dispositions of Inventory in the ordinary course of business, but including,
without limitation, a sale or disposition of any capital stock of any such Subsidiary) or (b) any receipt of fire, property, casualty
or similar insurance proceeds or condemnation awards in respect of property of any Credit Party or other insurance proceeds received
in respect of a loss incurred by any Credit Party (other than insurance proceeds used or to be used by a Credit Party to repair or replace
damaged property as permitted herein), in each case, the aggregate amount of such cash consideration received by any Credit Party in
connection with such transaction after deduction of (i) all reasonable fees, costs and expenses directly incurred by any Credit Party
in connection therewith, including, without limitation, underwriting discount, brokerage or selling commissions, if any, (ii) federal,
state and local income taxes actually paid or payable in cash in connection with such transaction within two (2) years thereafter (iii)
in the case of any sale, lease, transfer or disposition of property, the amount of Indebtedness secured by such property required to
be repaid in connection with such transaction, and (iv) the reasonable fees and disbursements of counsel paid by any Credit Party in
connection therewith and (v) appropriate amounts to be provided by any Credit Party as a reserve, in accordance with GAAP, against any
liabilities associated therewith and retained by any Credit Party after such sale, lease, transfer, or disposition, including, without
limitation, pension and benefit liabilities, liabilities related to environmental matters or liabilities under any indemnification obligations
associated therewith except that such reserves shall become Net Cash Proceeds when released.

 

    	19

     

    

 

“Net
Income” shall mean for any period, the net income (or loss) of Borrower, determined in accordance with GAAP; provided,
that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of Borrower
or is merged into or consolidated with Borrower, (b) the net income (or deficit) of any Person (other than a Subsidiary of Borrower)
in which Borrower has an ownership interest, except to the extent that any such income is actually received by Borrower in the form of
dividends or similar distributions and (c) the undistributed earnings of Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is at the time prohibited by the terms of any agreement to which such Person is
a party or by which it or any of its property is bound, any of such Person’s organizational documents or other legal proceedings
binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Note”
shall mean collectively, the Term Note, the Equipment Note and the Revolving Credit Note.

 

“Obligations”
shall mean and include any and all loans, advances, debts, liabilities, obligations, covenants and duties owing by each Credit Party
to Lenders or Agent or to any other direct or indirect subsidiary or affiliate of Agent or any Lender of any kind or nature, present
or future (including, without limitation, any interest or other amounts accruing thereon after maturity, or after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to each Credit Party, whether or not
a claim for post-filing or post-petition interest or other amounts is allowed in such proceeding), whether or not evidenced by any note,
guaranty or other instrument, whether arising under any agreement, instrument or document, (including, without limitation, this Agreement
and the Other Documents) whether or not for the payment of money, whether arising by reason of an extension of credit, opening of a letter
of credit, loan, equipment lease or guarantee, under any interest or currency swap, future, option or other similar agreement, or in
any other manner, whether arising out of overdrafts or deposit or other accounts or electronic funds transfers (whether through automated
clearing houses or otherwise) or out of Agent’s or any Lenders non-receipt of or inability to collect funds or otherwise not being
made whole in connection with depository transfer check or other similar arrangements, whether direct or indirect (including those acquired
by assignment or participation), absolute or contingent, joint or several, due or to become due, now existing or hereafter arising, contractual
or tortious, liquidated or unliquidated, regardless of how such indebtedness or liabilities arise or by what agreement or instrument
they may be evidenced or whether evidenced by any agreement or instrument, including, but not limited to, any and all of each Credit
Party’s Indebtedness and/or liabilities under this Agreement, the Other Documents or under any other agreement between Agent or
Lenders and each Credit Party and any amendments, extensions, renewals or increases and all costs and expenses of Agent and any Lender
incurred in the documentation, negotiation, modification, enforcement, collection or otherwise in connection with any of the foregoing,
including but not limited to reasonable attorneys’ fees and expenses and all obligations of each Credit Party to Agent or Lenders
to perform acts or refrain from taking any action.

 

    	20

     

    

 

“Ordinary
Course of Business” shall mean the ordinary course of Borrower’s business as conducted on the Closing Date.

 

“Other
Documents” shall mean the Mortgage, the Note, the Questionnaire, the Pledge Agreement, the Secured Subsidiaries Guaranty, any
Lender-Provided Interest Rate Hedge, any Letter of Credit Document, the Subordination Agreement and any and all other agreements, instruments
and documents, including guaranties, pledges, powers of attorney, consents, interest or currency swap agreements or other similar agreements
and all other writings heretofore, now or hereafter executed by any Credit Party and/or delivered to Agent or any Lender in respect of
the transactions contemplated by this Agreement.

 

“Out-of-Formula
Loans” shall have the meaning set forth in Section 15.2(b).

 

“Overnight
Bank Funding Rate” shall mean, for any, day the rate per annum (based on a year of 360 days and actual days elapsed) comprised
of both overnight federal funds and overnight Eurocurrency borrowings by U.S.-managed banking offices of depository institutions, as
such composite rate shall be determined by the Federal Reserve Bank of New York, as set forth on its public website from time to time,
and as published on the next succeeding Business Day as the overnight bank funding rate by such Federal Reserve Bank (or by such other
recognized electronic source (such as Bloomberg) selected by Agent for the purpose of displaying such rate) (an “Alternate Source”);
provided, that if such day is not a Business Day, the Overnight Bank Funding Rate for such day shall be such rate on the immediately
preceding Business Day; provided, further, that if such rate shall at any time, for any reason, no longer exist, a comparable replacement
rate determined by Agent at such time (which determination shall be conclusive absent manifest error). If the Overnight Bank Funding
Rate determined as above would be less than zero, then such rate shall be deemed to be zero. The rate of interest charged shall be adjusted
as of each Business Day based on changes in the Overnight Bank Funding Rate without notice to Borrower.

 

“Parent”
of any Person shall mean a corporation or other entity owning, directly or indirectly at least fifty percent (50%) of the shares of stock
or other ownership interests having ordinary voting power to elect a majority of the directors of the Person, or other Persons performing
similar functions for any such Person.

 

“Participant”
shall mean each Person who, in accordance with Section 15.3(b), shall be granted the right by any Lender to participate in any of the
Advances and who shall have entered into a participation agreement in form and substance satisfactory to such Lender.

 

“Participation
Advance” shall have the meaning set forth in Section 2.12(d).

 

    	21

     

    

 

“Participation
Commitment” shall mean each Lender’s obligation to buy a participation of the Letters of Credit issued hereunder.

 

“PPP”
shall mean the Paycheck Protection Program implemented as part of the federal Coronavirus Aid, Relief and Economic Security (CARES) Act.
Any PPP loans received by Borrower shall be excluded from Borrower’s covenant calculations through December 31, 2020.

 

“Payee”
shall have the meaning set forth in Section 3.10.

 

“Payment
Office” shall mean initially Two Tower Center Boulevard, East Brunswick, New Jersey 08816; thereafter, such other office of
Agent, if any, which it may designate by notice to Borrower and to each Lender to be the Payment Office.

 

“Payment
Recipient” shall have the meaning set forth in Section 14.13(a).

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any successor.

 

“Pension
Benefit Plan” shall mean at any time any employee pension benefit plan (including a Multiple Employer Plan, but not a Multiemployer
Plan) which is covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code and either (i)
is maintained by any member of the Controlled Group for employees of any member of the Controlled Group; or (ii) has at any time within
the preceding five years been maintained by any entity which was at such time a member of the Controlled Group for employees of any entity
which was at such time a member of the Controlled Group.

 

“Permitted
Encumbrances” shall mean:

 

(a)
Liens in favor of Agent for the benefit of Agent and Lenders;

 

(b)
Liens for Charges not delinquent or being Properly Contested;

 

(c)
Liens disclosed in the financial statements referred to in Section 5.5, the existence of which Agent has consented to in writing;

 

(d)
deposits or pledges to secure obligations under worker’s compensation, social security or similar laws, or under unemployment insurance;

 

(e)
deposits or pledges to secure bids, tenders, contracts (other than contracts for the payment of money), leases, statutory obligations,
surety and appeal bonds and other obligations of like nature arising in the Ordinary Course of Business;

 

(f)
Liens arising by virtue of the rendition, entry or issuance against any Credit Party, or any property of any Credit Party, of any judgment,
writ, order, or decree for so long as each such Lien (x) is in existence for less than twenty (20) consecutive days after it first arises
or is being Properly Contested and (y) is at all times junior in priority to any Liens in favor of Agent;

 

    	22

     

    

 

(g)
mechanics’, workers’, materialmen’s, carriers’, repairmens’ or other like Liens arising in the Ordinary
Course of Business with respect to obligations which are not due or which are being Properly Contested;

 

(h)
Liens securing Permitted Purchase Money Indebtedness, provided that (i) such Liens shall be created substantially simultaneously with
the acquisition of the asset acquired with such Indebtedness, (ii) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness, (iii) the amount of Indebtedness secured thereby is not increased and (iv) the principal amount
of Indebtedness secured by any such Lien shall at no time exceed 100% of the original purchase price of such property;

 

(i)
encroachments, easements, rights-of-way, restrictions and other similar encumbrances or Liens incurred in the Ordinary Course of Business
which do not materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the
business on the property subject to such encumbrances;

 

(j)
Liens disclosed on Schedule 1.2(b); provided that such Liens shall secure only those obligations which they secure on the Closing Date
(and extensions, renewals and refinancings of such obligations permitted by Section 7.8) and shall not subsequently apply to any other
property or assets of Borrower.

 

(k)
Liens for taxes not yet due; and

 

(l)
Liens set forth on any mortgagee title insurance policy that are acceptable to Agent.

 

“Permitted
Purchase Money Indebtedness” shall mean Purchase Money Indebtedness of Borrower which is incurred after the date of this Agreement
and which is secured by no Lien or only by a Purchase Money Lien; provided that (a) the aggregate principal amount of such Purchase Money
Indebtedness outstanding at any time shall not exceed $1,000,000 (including any such Indebtedness on Schedule 7.8), (b) such Indebtedness
when incurred shall not exceed the purchase price of the asset(s) financed, and (c) no such Indebtedness shall be refinanced for a principal
amount in excess of the principal balance outstanding thereon at the time of such refinancing.

 

“Person”
shall mean any individual, sole proprietorship, partnership, corporation, business trust, joint stock company, trust, unincorporated
organization, association, limited liability company, limited liability partnership, institution, public benefit corporation, joint venture,
entity or Governmental Body (whether federal, state, county, city, municipal or otherwise, including any instrumentality, division, agency,
body or department thereof).

 

“Plan”
shall mean any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Benefit Plan), maintained for employees
of Borrower or any member of the Controlled Group or any such Plan to which Borrower or any member of the Controlled Group is required
to contribute on behalf of any of its employees.

 

    	23

     

    

 

“Pledge
Agreement” shall mean the Pledge Agreement executed by Borrower in favor of Agent.

 

“PNC”
shall have the meaning set forth in the preamble to this Agreement and shall extend to all of its successors and assigns.

 

“Properly
Contested” shall mean, in the case of any Indebtedness or Lien, as applicable, of any Person (including any taxes) that is
not paid as and when due or payable by reason of such Person’s bona fide dispute concerning its liability to pay same or concerning
the amount thereof, (i) such Indebtedness or Lien, as applicable, is being properly contested in good faith by appropriate proceedings
promptly instituted and diligently conducted; (ii) such Person has established appropriate reserves as shall be required in conformity
with GAAP; (iii) the non-payment of such Indebtedness will not have a Material Adverse Effect and will not result in the forfeiture of
any assets of such Person having a value in excess of $50,000; (iv) no Lien is imposed upon any of such Person’s assets having
a value in excess of $50,000 with respect to such Indebtedness unless such Lien is at all times junior and subordinate in priority to
the Liens in favor of Agent (except only with respect to property taxes that have priority as a matter of applicable state law) and enforcement
of such Lien is stayed during the period prior to the final resolution or disposition of such dispute; (v) if such Indebtedness or Lien,
as applicable, results from, or is determined by the entry, rendition or issuance against a Person or any of its assets having a value
in excess of $50,000 of a judgment, writ, order or decree, enforcement of such judgment, writ, order or decree is stayed pending a timely
appeal or other judicial review; and (vi) if such contest is abandoned, settled or determined adversely (in whole or in part) to such
Person, such Person forthwith pays such Indebtedness and all penalties, interest and other amounts due in connection therewith.

 

“Purchase
Money Indebtedness” shall mean and include (i) Indebtedness (other than the Obligations) of any Credit Party for the payment
of all or any part of the purchase price of any Equipment, (ii) any Indebtedness (other than the Obligations) of any Credit Party incurred
at the time of or within thirty (30) days prior to or one hundred twenty (120) days after the acquisition of any Equipment for the purpose
of financing all or any part of the purchase price thereof (whether by means of a loan agreement, capitalized lease or otherwise), and
(iii) any renewals, extensions or refinancings (but not any increases in the principal amounts) thereof outstanding at the time.

 

“Purchase
Money Lien” shall mean a Lien upon Equipment which secures Purchase Money Indebtedness, but only if such Lien shall at all
times be confined solely to the fixed assets acquired through the incurrence of the Purchase Money Indebtedness secured by such Lien
and shall not encumber any other property of Borrower, and such Lien constitutes a purchase money security interest under the Uniform
Commercial Code.

 

“Purchasing
CLO” shall have the meaning set forth in Section 15.3(d) hereof.

 

“Purchasing
Lender” shall have the meaning set forth in Section 15.3(c) hereof.

 

    	24

     

    

 

“RCRA”
shall mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., as the same may be amended from time to time.

 

“Real
Property” shall mean all real property owned and leased by a Credit Party and identified on Schedule 4.5 hereto or which is
hereafter owned or leased by a Credit Party.

 

“Receivables”
shall mean and include, as to any Credit Party, all of such Credit Party’s accounts, contract rights, instruments (including those
evidencing indebtedness owed to such Credit Party by its Affiliates), documents, chattel paper (including electronic chattel paper),
general intangibles relating to accounts, drafts and acceptances, credit card receivables and all other forms of obligations owing to
such Credit Party arising out of or in connection with the sale or lease of Inventory or the rendition of services pursuant to term contracts
or otherwise or the licensing of any general intangible rights, all supporting obligations, guarantees and other security therefor, whether
secured or unsecured, now existing or hereafter created, and whether or not specifically sold or assigned to Agent hereunder.

 

“Receivables
Advance Rate” shall have the meaning set forth in Section 2.1(a)(y)(i) hereof.

 

“Register”
shall have the meaning set forth in Section 15.3(e).

 

“Reimbursement
Obligation” shall have the meaning set forth in Section 2.12(b) hereof.

 

“Release”
shall have the meaning set forth in Section 5.7(c)(i) hereof.

 

“Release
of Restricted Insurance Closure Fund” shall mean the pending funds forthcoming to Borrower from Chartis/AIG in connection with
the restructuring of its state mandated closure insurance requirements.

 

“Reportable
Compliance Event” shall mean that (1) any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal
complaint or similar charging instrument, arraigned, custodially detained, penalized or the subject of an assessment for a penalty or
enters into a settlement with an Governmental Body in connection with any economic sanctions or other Anti-Terrorism Law or Anti-Corruption
law, or any predicate crime to any Anti-Terrorism Law or Anti-Corruption Law, or has knowledge of facts or circumstances to the effect
that it is reasonably likely that any aspect of its operations represents a violation of any Anti-Terrorism Law or Anti-Corruption Law;
(2) any Covered Entity engages in a transaction that has caused or may cause the Lenders or Agent to be in violation of any Anti-Terrorism
Law, including a Covered Entity’s use of any proceeds of the credit facility to fund any operations in, finance any investments
or activities in, or, make any payments to, directly or indirectly, a Sanctioned Country or Sanctioned Person; (3) any Collateral becomes
Embargoed Property; or (4) any Covered Entity otherwise violates, or reasonably believes that it will violate, any of the representations
in Section 5.24, or any covenant in Section 6.14 or Section 7.18.

 

“Reportable
Event” shall mean a reportable event described in Section 4043(b) of ERISA or the regulations promulgated thereunder.

 

    	25

     

    

 

“Required
Lenders” shall mean Lenders holding at least sixty-six and two thirds percent (66-2/3%) of the Advances, and if no Advances
are outstanding, shall mean Lenders holding at least sixty-six and two thirds percent (66-2/3%) of the Commitment Percentage; provided,
however, if there are fewer than three (3) Lenders (including any Defaulting Lender), Required Lenders shall mean all Lenders
(other than any Defaulting Lender).

 

“Reserve
Percentage” shall mean as of any day the maximum percentage in effect on such day as prescribed by the Board of Governors of
the Federal Reserve System (or any successor) for determining the reserve requirements (including, without limitation, supplemental,
marginal and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency Liabilities”).

 

“Revolving
Advances” shall mean Advances made other than Letters of Credit, the Term Loan and the Equipment Loans.

 

“Revolving
Credit Note” shall mean the promissory note referred to in Section 2.1(a) hereof.

 

“Revolving
Interest Rate” shall mean an interest rate per annum equal to (a) the sum of the Alternate Base Rate plus the Applicable Margin
with respect to Domestic Rate Loans and (b) the sum of Term SOFR Rate plus the Applicable Margin with respect to Term SOFR Rate Loans.

 

“Sanctioned
Country” shall mean a country subject to a sanctions program maintained under any Anti-Terrorism Law.

 

“Sanctioned
Person” shall mean any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated,
prohibited, sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including but
not limited to the blocking of property or rejection of transactions), under any Anti-Terrorism Law.

 

“SEC”
shall mean the Securities and Exchange Commission or any successor thereto.

 

“Section
20 Subsidiary” shall mean the Subsidiary of the bank holding company controlling PNC, which Subsidiary has been granted authority
by the Federal Reserve Board to underwrite and deal in certain Ineligible Securities.

 

“Secured
Subsidiaries Guaranty” shall mean the Amended and Restated Secured Subsidiaries Guaranty executed by each of the Guarantors.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Senior
Debt Payments” shall mean and include all cash actually expended by any Credit Party to make (a) interest payments on any Advances
hereunder, plus (b) scheduled principal payments on the Term Loan and the Equipment Loans, plus (c) payments for all fees, commissions
and charges set forth herein and with respect to any Advances, plus (d) capitalized lease payments, plus (e) payments with respect to
any other Indebtedness for borrowed money, including Purchase Money Indebtedness.

 

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“Settlement
Date” shall mean the Closing Date and thereafter Wednesday or Thursday of each week or more frequently if Agent deems appropriate
unless such day is not a Business Day in which case it shall be the next succeeding Business Day.

 

“SOFR”
shall mean, for any day, a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York
(or a successor administrator of the secured overnight financing rate).

 

“SOFR
Adjustment” shall mean the following:

 

	SOFR
    Adjustment	 	Interest
    Period
	10 basis points (0.10%)	 	For a 1-month Interest Period
	15 basis points (0.15%)	 	For a 3-month Interest Period

 

“SOFR
Floor” means a rate of interest per annum equal to zero basis points (0%).

 

“SOFR
Reserve Percentage” shall mean, for any day, the maximum effective percentage in effect on such day, if any, as prescribed
by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including, without
limitation, supplemental, marginal and emergency reserve requirements) with respect to SOFR funding.

 

“Subordinated
Lender” shall mean Robert Louis Ferguson.

 

“Subordinated
Loan” shall mean the loan and Indebtedness evidenced by the Loan and Securities Purchase Agreement and the Promissory Note
in the original principal amount of $2,500,000 between Borrower and Subordinated Lender. The Promissory Note shall have an interest rate
of 4% with interest only for the first twelve months and thereafter monthly payments of $208,300.

 

“Subordination
Agreement” shall mean the Subordination Agreement to be entered into among Agent, Borrower and Subordinated Lender.

 

“Subsidiary”
of any Person shall mean a corporation or other entity of whose Equity Interests having ordinary voting power (other than Equity Interests
having such power only by reason of the happening of a contingency) to elect a majority of the directors of such corporation, or other
Persons performing similar functions for such entity, are owned, directly or indirectly, by such Person.

 

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“Subsidiary
Stock” shall mean:

 

(a)
one hundred percent 100% of the issued and outstanding Equity Interests of any Domestic Subsidiary of Borrower and 65% of each class
of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Voting
Equity”) and 100% of each class of the issued and outstanding Equity Interests not entitled to vote (within the meaning of
Treas. Reg. Section 1.956-2(c)(2)) (“Non-Voting Equity”) of each Foreign Subsidiary (but only to the extent that the
pledge of such Non-Voting Equity would not cause the Obligations to be treated as “United States property” of such Foreign
Subsidiary within the meaning of Treas. Reg. Section 1.956-2), in each case together with the certificates (or other agreements or instruments),
if any, representing such Equity Interests, and all options and other rights, contractual or otherwise, with respect thereto (collectively,
the “Pledged Capital Stock”), including, but not limited to, the following:

 

(y)
subject to the percentage restrictions described above, all shares, securities, membership interests or other equity interests representing
a dividend on any of the Pledged Capital Stock, or representing a distribution or return of capital upon or in respect of the Pledged
Capital Stock, or resulting from a stock split, revision, reclassification or other exchange therefor, and any subscriptions, warrants,
rights or options issued to the holder of, or otherwise in respect of, the Pledged Capital Stock; and

 

(z)
without affecting the obligations of Borrower under any provision prohibiting such action hereunder, in the event of any consolidation
or merger involving the issuer of any Pledged Capital Stock and in which such issuer is not the surviving entity, all shares of each
class of the Equity Interests of the successor entity formed by or resulting from such consolidation or merger;

 

(b)
Subject to the percentage restrictions described above, any and all other Capital Stock owned by Borrower in any Domestic Subsidiary
or any Foreign Subsidiary; and

 

(c)
All proceeds and products of the foregoing, however and whenever acquired and in whatever form.

 

“Tangible
Adjusted Net Worth” shall mean, at a particular date, (a) the aggregate amount of all assets of Borrower on a consolidated
basis, as may properly be classified as such in accordance with GAAP consistently applied and such other assets as are properly classified
as “intangible assets” but specifically excluding such other assets as may be properly classified as goodwill assets under
GAAP, less (b) the aggregate amount of all Indebtedness of Borrower on a consolidated basis. For purposes of this definition, any amounts
noted in Borrower’s books and records for “Acquired Permits” shall not be deemed “goodwill”.

 

“Term”
shall have the meaning set forth in Section 13.1 hereof.

 

“Term
Loan” shall mean the Advances made pursuant to Section 2.4 hereof.

 

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“Term
Loan Rate” shall mean an interest rate per annum equal to (a) the sum of the Alternate Base Rate plus the Applicable Margin
with respect to Domestic Rate Loans and (b) the sum of the Term SOFR Rate plus the Applicable Margin with respect to Term SOFR Rate Loans.

 

“Term
Note” shall mean the promissory note described in Section 2.4 hereof.

 

“Term
SOFR Administrator” means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference
Rate selected by the Agent in its reasonable discretion).

 

“Term
SOFR Rate” shall mean, with respect to any Term SOFR Rate Loan for any Interest Period, the interest rate per annum determined
by the Agent by dividing (the resulting quotient rounded upwards, at the Agent’s discretion, to the nearest 1/100th of 1%) (A)
the Term SOFR Reference Rate for a tenor comparable to such Interest Period on the day (the “Term SOFR Determination Date”)
that is two (2) Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator,
by (B) a number equal to 1.00 minus the SOFR Reserve Percentage. If the Term SOFR Reference Rate for the applicable tenor has not been
published or replaced with a Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the Term SOFR Determination Date,
then the Term SOFR Reference Rate, for purposes of clause (A) in the preceding sentence, shall be the Term SOFR Reference Rate for such
tenor on the first Business Day preceding such Term SOFR Determination Date for which such Term SOFR Reference Rate for such tenor was
published in accordance herewith, so long as such first preceding Business Day is not more than three (3) Business Days prior to such
Term SOFR Determination Date. If the Term SOFR Rate, determined as provided above, would be less than the SOFR Floor, then the Term SOFR
Rate shall be deemed to be the SOFR Floor. The Term SOFR Rate shall be adjusted automatically without notice to the Borrower on and as
of (i) the first day of each Interest Period, and (ii) the effective date of any change in the SOFR Reserve Percentage.

 

“Term
SOFR Rate Loan” means an Advance that bears interest based on Term SOFR Rate.

 

“Term
SOFR Reference Rate” shall mean the forward-looking term rate based on SOFR.

 

“Termination
Event” shall mean (i) a Reportable Event with respect to any Plan or Multiemployer Plan; (ii) the withdrawal of Borrower or
any member of the Controlled Group from a Plan or Multiemployer Plan during a plan year in which such entity was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA; (iii) the providing of notice of intent to terminate a Plan in a distress
termination described in Section 4041(c) of ERISA; (iv) the institution by the PBGC of proceedings to terminate a Plan or Multiemployer
Plan; (v) any event or condition (a) which would constitute grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Plan or Multiemployer Plan, or (b) that would result in termination of a Multiemployer Plan pursuant
to Section 4041A of ERISA; or (vi) the partial or complete withdrawal within the meaning of Sections 4203 and 4205 of ERISA, of Borrower
or any member of the Controlled Group from a Multiemployer Plan.

 

    	29

     

    

 

“Toxic
Substance” shall mean and include any material present on the Real Property or Leasehold Interests which has been shown to
have significant adverse effect on human health or which is subject to regulation under the Toxic Substances Control Act (TSCA), 15 U.S.C.
§§ 2601 et seq., applicable state law, or any other applicable Federal or state laws now in force or hereafter enacted relating
to toxic substances. “Toxic Substance” includes but is not limited to asbestos, polychlorinated biphenyls (PCBs) and lead-based
paints.

 

“Transferee”
shall have the meaning set forth in Section 15.3(d) hereof.

 

“Undrawn
Availability” at a particular date shall mean an amount equal to (a) the lesser of (i) the Formula Amount or (ii) the Maximum
Revolving Advance Amount, minus (b) the sum of (i) the outstanding amount of Advances (other than the Term Loan and the Equipment Loans)
plus (ii) all amounts due and owing to any Credit Party’s trade creditors which are outstanding more than sixty (60) days after
their due date, plus (iii) fees and expenses for which any Credit Party is liable but which have not been paid or charged to Borrower’s
Account

 

“Unfinanced
Capital Expenditures” shall mean all Capital Expenditures of Borrower other than those made utilizing financing provided by
the applicable seller or third party lenders. For the avoidance of doubt, Capital Expenditures made by Borrower utilizing Revolving Advances
shall be deemed Unfinanced Capital Expenditures.

 

“Uniform
Commercial Code” shall have the meaning set forth in Section 1.3 hereof.

 

“USA
PATRIOT Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.

 

“U.S.
Government Securities Business Day” means any day except for (a) a Saturday or Sunday or (b) a day on which the Securities
Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for
purposes of trading in United States government securities.

 

“Voting
Stock” shall mean, with respect to any Person, Capital Stock issued by such Person the holders of which are ordinarily, in
the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person,
even though the right so to vote has been suspended by the happening of such a contingency.

 

“Week”
shall mean the time period commencing with the opening of business on a Wednesday and ending on the end of business the following Tuesday.

 

1.3.
Uniform Commercial Code Terms.

 

All
terms used herein and defined in the Uniform Commercial Code as adopted in the State of New York from time to time (the “Uniform
Commercial Code”) shall have the meaning given therein unless otherwise defined herein. Without limiting the foregoing, the
terms “accounts”, “chattel paper”, “commercial tort claims”, “instruments”, “general
intangibles”, “goods”, “payment intangibles”, “proceeds”, “supporting obligations”,
“securities”, “investment property”, “documents”, “deposit accounts”, “software”,
“letter of credit rights”, “inventory”, “equipment” and “fixtures”, as and when used
in the description of Collateral shall have the meanings given to such terms in Articles 8 or 9 of the Uniform Commercial Code. To the
extent the definition of any category or type of collateral is expanded by any amendment, modification or revision to the Uniform Commercial
Code, such expanded definition will apply automatically as of the date of such amendment, modification or revision. Notwithstanding the
foregoing, and where the context so requires, any term defined in this Agreement by reference to the Uniform Commercial Code shall also
have any extended, alternative or analogous meaning given to such term in applicable Canadian personal property security and other laws
(including, without limitation, the Personal Property Security Act and Securities Transfer Act of each applicable province and territory
of Canada), in all cases for the extension, preservation or betterment of the security and rights in the Collateral.

 

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1.4.
Certain Matters of Construction.

 

The
terms “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole and not to any particular section, paragraph or subdivision. All references herein to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement. Any pronoun used shall be deemed
to cover all genders. Wherever appropriate in the context, terms used herein in the singular also include the plural and vice versa.
All references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations. Unless
otherwise provided, all references to any instruments or agreements to which Agent is a party, including, without limitation, references
to any of the Other Documents, shall include any and all modifications or amendments thereto and any and all extensions or renewals thereof.
All references herein to the time of day shall mean the time in New York, New York. Unless otherwise provided, all financial calculations
shall be performed with Inventory valued on a first-in, first-out basis. Whenever the words “including” or “include”
shall be used, such words shall be understood to mean “including, without limitation” or “include, without limitation”.
A Default or Event of Default shall be deemed to exist at all times during the period commencing on the date that such Default or Event
of Default occurs to the date on which such Default or Event of Default is waived in writing pursuant to this Agreement or, in the case
of a Default, is cured within any period of cure expressly provided for in this Agreement; and an Event of Default shall “continue”
or be “continuing” until such Event of Default has been waived in writing by the Required Lenders. Any Lien referred to in
this Agreement or any of the Other Documents as having been created in favor of Agent, any agreement entered into by Agent pursuant to
this Agreement or any of the Other Documents, any payment made by or to or funds received by Agent pursuant to or as contemplated by
this Agreement or any of the Other Documents, or any act taken or omitted to be taken by Agent, shall, unless otherwise expressly provided,
be created, entered into, made or received, or taken or omitted, for the benefit or account of Agent and Lenders. Wherever the phrase
“to the best of Borrower’s knowledge” or words of similar import relating to the knowledge or the awareness of Borrower
are used in this Agreement or Other Documents, such phrase shall mean and refer to (i) the actual knowledge of a senior officer of Borrower
or (ii) the knowledge that a senior officer would have obtained if he had engaged in good faith and diligent performance of his/her duties,
including the making of such reasonably specific inquiries as may be necessary of the employees or agents of Borrower and a good faith
attempt to ascertain the existence or accuracy of the matter to which such phrase relates. All covenants hereunder shall be given independent
effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by
an exception to, or otherwise within the limitations of, another covenant shall not avoid the occurrence of a default if such action
is taken or condition exists. In addition, all representations and warranties hereunder shall be given independent effect so that if
a particular representation or warranty proves to be incorrect or is breached, the fact that another representation or warranty concerning
the same or similar subject matter is correct or is not breached will not affect the incorrectness of a breach of a representation or
warranty hereunder.

 

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1.5.
Term SOFR Notification.

 

Section
3.8.2. of this Agreement provides a mechanism for determining an alternate rate of interest in the event that the Term SOFR Rate is no
longer available or in certain other circumstances. Agent does not warrant or accept any responsibility for and shall not have any liability
with respect to, the administration, submission or any other matter related to the Term SOFR Rate or with respect to any alternative
or successor rate thereto, or replacement rate therefor.

 

1.6
Conforming Changes Relating to Term SOFR Rate.

 

With
respect to the Term SOFR Rate, the Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything
to the contrary herein or in any Other Document, any amendments implementing such Conforming Changes will become effective without any
further action or consent of any other party to this Agreement or any Other Document; provided that, with respect to any such amendment
effected, the Agent shall provide notice to the Borrower and the Lenders of each such amendment implementing such Conforming Changes
reasonably promptly after such amendment becomes effective.

 

ARTICLE
II

 

ADVANCES, PAYMENTS

 

2.1.
Revolving Advances.

 

(a)
Amount of Revolving Advances

 

Subject
to the terms and conditions set forth in this Agreement including Section 2.1(b), each Lender, severally and not jointly, will make Revolving
Advances to Borrower in aggregate amounts outstanding at any time equal to such Lender’s Commitment Percentage of the lesser of
(x) the Maximum Revolving Advance Amount less the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit or (y) an amount
equal to the sum of:

 

(i)
an amount equal to the sum of (without duplication) (A) up to 85%, subject to the provisions of Section 2.1(b) hereof, of Acceptable
Government Agency Receivables, (B) up to 50%, subject to the provision of Section 2.1(b) hereof, of Acceptable Unbilled Amounts, (C)
up to 85%, subject to the provisions of Section 2.1(b) hereof, of Commercial Broker Receivables, and (D) up to 85%, subject to the provisions
of Section 2.1(b) hereof, of Commercial Receivables (collectively, the “Advance Rates”); provided, however, that Foreign
Receivables shall not constitute more than ten percent (10%) of Eligible Receivables at any time, minus

 

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(ii)
the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit, minus

 

(iii)
such reserves as Agent may in good faith reasonably deem proper and necessary from time to time.

 

The
amount derived from the sum of (x) Sections 2.1(a)(y)(i) minus (y) Section 2.1 (a)(y)(ii) and (iii) at any time and from time to time
shall be referred to as the “Formula Amount”. The Revolving Advances shall be evidenced by one or more secured promissory
notes (collectively, the “Revolving Credit Note”) substantially in the form attached hereto as Exhibit 2.1(a).

 

(b)
Discretionary Rights.

 

The
Advance Rates may be increased or decreased by Agent at any time and from time to time in evaluating specific Receivables in the exercise
of its good faith reasonable discretion. Borrower consents to any such increases or decreases and acknowledges that decreasing the Advance
Rates or increasing or imposing reserves may limit or restrict Advances requested by Borrower. The rights of Agent under this subsection
are subject to the provisions of Section 15.2(b).

 

2.2.
Procedure for Revolving Advances Borrowing.

 

(a)
Borrower may notify Agent prior to 3:00 p.m. (New York time) on a Business Day of Borrower’s request to incur, on that day, a Revolving
Advance hereunder. Subject to the satisfaction of the conditions set forth in Section 8.3 hereof, in the event Borrower desires an Equipment
Loan, Borrower shall give Agent at least three (3) Business Days prior written notice. Should any amount required to be paid as interest
hereunder, or as fees or other charges under this Agreement or any other agreement with Agent or Lenders, or with respect to any other
Obligation, become due, same shall be deemed a request for a Revolving Advance maintained as a Domestic Rate Loan as of the date such
payment is due, in the amount required to pay in full such interest, fee, charge or Obligation under this Agreement or any other agreement
with Agent or Lenders, and such request shall be irrevocable.

 

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(b)
Notwithstanding the provisions of subsection (a) above, in the event Borrower desires to obtain a Term SOFR Rate Loan, Borrower shall
give Agent written notice by no later than 3:00 p.m. on the day which is three (3) Business Days prior to the date such Term SOFR Rate
Loan is to be borrowed, specifying (i) the date of the proposed borrowing (which shall be a Business Day), (ii) the type of borrowing
and the amount on the date of such Advance to be borrowed, which amount shall be in an aggregate principal amount that is not less than
$1,000,000 and integral multiples of $250,000 in excess thereof, and (iii) the duration of the first Interest Period therefor. Interest
Periods for Term SOFR Rate Loans shall be for one or three months; provided, if an Interest Period would end on a day that is not a Business
Day, it shall end on the next succeeding Business Day unless such day falls in the next succeeding calendar month in which case the Interest
Period shall end on the next preceding Business Day. Any Interest Period that begins on the last Business Day of a calendar month (or
a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business
Day of the last calendar month of such Interest Period. Upon and after the occurrence of an Event of Default, and during the continuation
thereof, at the option of Agent or at the direction of Required Lenders, no Term SOFR Rate Loan shall be made available to Borrower.
After giving effect to each requested Term SOFR Rate Loan, including those which are converted from a Domestic Rate Loan under Section
2.2(d), there shall not be outstanding more than five (5) Term SOFR Rate Loans, in the aggregate.

 

(c)
Each Interest Period of a Term SOFR Rate Loan shall commence on the date such Term SOFR Rate Loan is made and shall end on such date
as Borrower may elect as set forth in subsection (b)(iii) above provided that no Interest Period shall end after the last day of the
Term.

 

Borrower
shall elect the initial Interest Period applicable to a Term SOFR Rate Loan by its notice of borrowing given to Agent pursuant to Section
2.2(b) or by its notice of conversion given to Agent pursuant to Section 2.2(d), as the case may be. Borrower shall elect the duration
of each succeeding Interest Period by giving irrevocable written notice to Agent of such duration not later than 3:00 p.m. (New York
time) on the day which is three (3) Business Days prior to the last day of the then current Interest Period applicable to such Term SOFR
Rate Loan. If Agent does not receive timely notice of the Interest Period elected by Borrower, Borrower shall be deemed to have elected
to convert such Term SOFR Rate Loan to a Domestic Rate Loan subject to Section 2.2(d) hereinbelow.

 

(d)
Provided that no Event of Default shall have occurred and be continuing, on the last Business Day of the then current Interest Period
applicable to any outstanding Term SOFR Rate Loan, or on any Business Day with respect to Domestic Rate Loans, Borrower may convert any
such loan into a loan of another type in the same aggregate principal amount provided that any conversion of a Term SOFR Rate Loan shall
be made only on the last Business Day of the then current Interest Period applicable to such Term SOFR Rate Loan. If Borrower desires
to convert a loan, Borrower shall give Agent written notice by no later than 3:00 p.m. (New York time) (i) on the day which is three
(3) Business Days’ prior to the date on which such conversion is to occur with respect to a conversion from a Domestic Rate Loan
to a Term SOFR Rate Loan, or (ii) on the day which is one (1) Business Day prior to the date on which such conversion is to occur (which
date shall be the last Business Day of the Interest Period for the applicable Term SOFR Rate Loan) with respect to a conversion from
a Term SOFR Rate Loan to a Domestic Rate Loan, specifying, in each case, the date of such conversion, the loans to be converted and if
the conversion is from a Domestic Rate Loan to any other type of loan, the duration of the first Interest Period therefor.

 

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(e)
At its option and upon written notice given prior to 3:00 p.m. (New York time) at least three (3) Business Days’ prior to the date
of such prepayment, Borrower may prepay the Term SOFR Rate Loans in whole at any time or in part from time to time with accrued interest
on the principal being prepaid to the date of such repayment. Borrower shall specify the date of prepayment of Advances which are Term
SOFR Rate Loans and the amount of such prepayment. In the event that any prepayment of a Term SOFR Rate Loan is required or permitted
on a date other than the last Business Day of the then current Interest Period with respect thereto, Borrower shall indemnify Agent and
Lenders therefor in accordance with Section 2.2(f) hereof.

 

(f)
Borrower shall indemnify Agent and Lenders and hold Agent and Lenders harmless from and against any and all losses or expenses that Agent
and Lenders may sustain or incur as a consequence of any prepayment, conversion of or any default by Borrower in the payment of the principal
of or interest on any Term SOFR Rate Loan or failure by Borrower to complete a borrowing of, a prepayment of or conversion of or to a
Term SOFR Rate Loan after notice thereof has been given, including, but not limited to, any interest payable by Agent or Lenders to lenders
of funds obtained by it in order to make or maintain its Term SOFR Rate Loans hereunder. A certificate as to any additional amounts payable
pursuant to the foregoing sentence submitted by Agent or any Lender to Borrower shall be conclusive absent manifest error.

 

(g)
Notwithstanding any other provision hereof, if any Applicable Law, or any change therein or in the interpretation or application thereof,
including without limitation any Change in Law, shall make it unlawful for any Lender (for purposes of this subsection (g), the term
“Lender” shall include any Lender and the office or branch where any Lender or any corporation or bank controlling such Lender
makes or maintains any Term SOFR Rate Loans) to make or maintain its Term SOFR Rate Loans, the obligation of Lenders to make Term SOFR
Rate Loans hereunder shall forthwith be cancelled and Borrower shall, if any affected Term SOFR Rate Loans are then outstanding, promptly
upon request from Agent, either pay all such affected Term SOFR Rate Loans or convert such affected Term SOFR Rate Loans into loans of
another type. If any such payment or conversion of any Term SOFR Rate Loan is made on a day that is not the last day of the Interest
Period applicable to such Term SOFR Rate Loan, Borrower shall pay Agent, upon Agent’s request, such amount or amounts. A certificate
as to any additional amounts payable pursuant to the foregoing sentence submitted by Lenders to Borrower shall be conclusive absent manifest
error.

 

(h)
Borrower’s obligations and indemnifications under this Section 2.2 shall survive the termination of this Agreement.

 

(i)
Anything to the contrary contained herein notwithstanding, neither Agent nor any Lender, nor any of their participants, is required actually
to acquire SOFR deposits to fund or otherwise match fund any Obligation as to which interest accrues based on the Term SOFR Rate. The
provisions set forth herein shall apply as if each Lender or its participants had match funded any Obligation as to which interest is
accruing based on the Term SOFR Rate by acquiring SOFR deposits for each Interest Period in the amount of the Term SOFR Rate Loans.

 

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2.3.
Disbursement of Advance Proceeds.

 

All
Advances shall be disbursed from whichever office or other place Agent may designate from time to time and, together with any and all
other Obligations of Borrower to Agent or Lenders, shall be charged to Borrower’s Account on Agent’s books. During the Term,
Borrower may use the Revolving Advances by borrowing, prepaying and reborrowing, all in accordance with the terms and conditions hereof.
The proceeds of each Revolving Advance requested by Borrower or deemed to have been requested by Borrower under Section 2.2(a) hereof
shall, with respect to requested Revolving Advances to the extent Lenders make such Revolving Advances, be made available to Borrower
on the day so requested by way of credit to Borrower’s operating account at PNC, or such other bank as Borrower may designate following
notification to Agent, in immediately available federal funds or other immediately available funds or, with respect to Revolving Advances
deemed to have been requested by Borrower, be disbursed to Agent to be applied to the outstanding Obligations giving rise to such deemed
request.

 

2.4.
Term Loan; Equipment Loans.

 

(a)
Term Loan.

 

Each
Lender, severally and not jointly, made a Term Loan in the sum equal to such Lender’s Commitment Percentage of $6,095,238.12. As
of the Closing Date the Term Loan has a balance of $1,741,817.82. The Term Loan was advanced on the Closing Date and shall be, with respect
to principal, payable as follows, subject to acceleration upon the occurrence of an Event of Default under this Agreement or termination
of this Agreement: equal monthly installments of $35,547.30 commencing on June 1, 2020 and continuing on the first (1st) day of each
month thereafter with the remaining balance due in full on the last day of the Term. The Term Loan shall be evidenced by one or more
secured promissory notes (collectively, the “Term Note”) in substantially the form attached hereto as Exhibit 2.4(a). The
Term Loan may consist of Domestic Rate Loans or Term SOFR Rate Loans, or a combination thereof, as Borrower may request. In the event
that Borrower desires to obtain or extend any portion of the Term Loan as a Term SOFR Rate Loan or to convert any portion of the Term
Loan from a Domestic Rate Loan to a Term SOFR Rate Loan, Borrower shall comply with the notification requirements set forth in Sections
2.2(b) and (d) and the provisions of Sections 2.2(b) through (h) shall apply.

 

(b)
Equipment Loans.

 

(i)
Subject to the terms and conditions of this Agreement, each Lender, severally and not jointly, shall, from time to time, make Advances
(each, an “Equipment Loan” and collectively, the “Equipment Loans”) to Borrower in an amount equal to such Lender’s
Commitment Percentage of the applicable Equipment Loan to finance Borrower’s purchase of equipment for use in Borrower’s
business. All such Equipment Loans shall be in such amounts as are requested by Borrower, but in no event shall any Equipment Loan exceed
ninety (90%) percent of the Net Invoice Cost of any new equipment being purchased by Borrower or eighty percent (80%) of the Net Invoice
Cost of any used equipment being purchased by Borrower and the total amount of all Equipment Loans outstanding hereunder shall not exceed,
in the aggregate, the Maximum Equipment Loan Amount. Once repaid, Equipment Loans may not be reborrowed.

 

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(ii)
Equipment Loans shall be made available to Borrower during the period commencing on (x) May 4, 2021 and ending on the earlier of (A)
the date the Equipment Note (defined below) is fully funded or (B) May 4, 2022 (the “Borrowing Period”). At the end of the
Borrowing Period, Agent shall calculate the aggregate principal balance of all then outstanding Equipment Loans, which amount shall amortize
in equal and consecutive monthly installments of principal, based on a five year amortization schedule, the first of which installments
shall be due and payable on the first day of the next month after the end of the Borrowing Period, and the remaining installments of
which shall be due and payable on the first day of each month thereafter, provided, however, that the aggregate principal balance of
all Equipment Loans, together with all accrued and unpaid interest thereon, and all unpaid fees, costs and expenses payable hereunder
in connection therewith, shall be due and payable in full upon the expiration of the Term, subject to acceleration upon the occurrence
of an Event of Default under this Agreement or termination of this Agreement. Equipment Loans shall be evidenced by one or more secured
promissory notes (collectively, the “Equipment Note”) in substantially the form attached hereto as Exhibit 2.4(b). The Equipment
Loans may consist of Domestic Rate Loans or Term SOFR Rate Loans, or a combination thereof, as Borrower may request; and in the event
that Borrower desires to obtain or extend any Equipment Loan (or any portion thereof) as a Term SOFR Rate Loan or to convert any Equipment
Loan (or any portion thereof) from a Domestic Rate Loan to a Term SOFR Rate Loan, Borrower shall comply with the notification requirements
set forth in Sections 2.2(b) and/or (e) and the provisions of Sections 2.2(b) through (i) shall apply.

 

2.5.
Maximum Advances.

 

The
aggregate balance of Revolving Advances outstanding at any time shall not exceed the lesser of (a) the Maximum Revolving Advance Amount
or (b) the Formula Amount less, in each case, the aggregate Maximum Undrawn Amount of all issued and outstanding Letters of Credit.

 

2.6.
Repayment of Advances.

 

(a)
The Revolving Advances shall be due and payable in full on the last day of the Term subject to earlier prepayment as herein provided.
The Term Loan shall be due and payable as provided in Section 2.4(a) hereof and in the Term Note, subject to mandatory prepayments as
herein provided. The Equipment Loans shall be due and payable as provided in Section 2.4(b) hereof and in the Equipment Note, subject
to mandatory prepayments as herein provided.

 

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(b)
Borrower recognizes that the amounts evidenced by checks, notes, drafts or any other items of payment relating to and/or proceeds of
Collateral may not be collectible by Agent on the date received. In consideration of Agent’s agreement to conditionally credit
Borrower’s Account as of the next Business Day following Agent’s receipt of those items of payment, Borrower agrees that,
in computing the charges under this Agreement, all items of payment shall be deemed applied by Agent on account of the Obligations one
(1) Business Day after (i) the Agent receives such payments via wire transfer or electronic depository check or (ii) in the case of payments
received by Agent in any other form, the Business Day such payment constitutes good funds in Agent’s account. Agent is not, however,
required to credit Borrower’s Account for the amount of any item of payment which is unsatisfactory to Agent and Agent may charge
Borrower’s Account for the amount of any item of payment which is returned to Agent unpaid.

 

(c)
All payments of principal, interest and other amounts payable hereunder, or under any of the Other Documents shall be made to Agent at
the Payment Office not later than 1:00 P.M. (New York time) on the due date therefor in lawful money of the United States of America
in federal funds or other funds immediately available to Agent. Agent shall have the right to effectuate payment on any and all Obligations
due and owing hereunder by charging Borrower’s Account or by making Advances as provided in Section 2.2 hereof.

 

(d)
Borrower shall pay principal, interest, and all other amounts payable hereunder, or under any related agreement, without any deduction
whatsoever, including, but not limited to, any deduction for any setoff or counterclaim.

 

2.7.
Repayment of Excess Advances.

 

The
aggregate balance of Advances outstanding at any time in excess of the maximum amount of Advances permitted hereunder shall be immediately
due and payable without the necessity of any demand, at the Payment Office, whether or not a Default or Event of Default has occurred.

 

2.8.
Statement of Account.

 

Agent
shall maintain, in accordance with its customary procedures, a loan account (“Borrower’s Account”) in the name
of Borrower in which shall be recorded the date and amount of each Advance made by Agent and the date and amount of each payment in respect
thereof; provided, however, the failure by Agent to record the date and amount of any Advance shall not adversely affect Agent or any
Lender. Each month, Agent shall send to Borrower a statement showing the accounting for the Advances made, payments made or credited
in respect thereof, and other transactions between Agent and Borrower, during such month. The monthly statements shall be deemed correct
and binding upon Borrower in the absence of manifest error and shall constitute an account stated between Lenders and Borrower unless
Agent receives a written statement of Borrower’s specific exceptions thereto within thirty (30) days after such statement is received
by Borrower. The records of Agent with respect to the loan account shall be conclusive evidence absent manifest error of the amounts
of Advances and other charges thereto and of payments applicable thereto.

 

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2.9.
Letters of Credit.

 

Subject
to the terms and conditions hereof, Agent shall issue or cause the issuance of standby and/or trade letters of credit for the account
of Borrower; provided, however, that Agent will not be required to issue or cause to be issued any Letters of Credit to the extent that
the issuance thereof would then cause the sum of (i) the outstanding Revolving Advances plus (ii) the Maximum Undrawn Amount of all outstanding
Letters of Credit to exceed the lesser of (x) the Maximum Revolving Advance Amount or (y) the Formula Amount. The Maximum Undrawn Amount
of all outstanding Letters of Credit shall not exceed in the aggregate at any time the Letter of Credit Sublimit. All disbursements or
payments related to Letters of Credit shall be deemed to be Domestic Rate Loans consisting of Revolving Advances and shall bear interest
at the applicable Contract Rate for Domestic Rate Loans. Letters of Credit that have not been drawn upon shall not bear interest.

 

2.10.
Issuance of Letters of Credit.

 

(a)
Borrower may request Agent to issue or cause the issuance of a Letter of Credit by delivering to Agent, at the Payment Office, prior
to 10:00 a.m. (New York time), at least five (5) Business Days’ prior to the proposed date of issuance, Agent’s form of Letter
of Credit Application (the “Letter of Credit Application”) completed to the satisfaction of Agent; and, such other
certificates, documents and other papers and information as Agent may reasonably request. Borrower also has the right to give instructions
and make agreements with respect to any application, any applicable letter of credit and security agreement, any applicable letter of
credit reimbursement agreement and/or any other applicable agreement, any letter of credit and the disposition of documents, disposition
of any unutilized funds, and to agree with Agent upon any amendment, extension or renewal of any Letter of Credit.

 

(b)
Each Letter of Credit shall, among other things, (i) provide for the payment of sight drafts, other written demands for payment, or acceptances
of usance drafts when presented for honor thereunder in accordance with the terms thereof and when accompanied by the documents described
therein and (ii) have an expiry date not later than twelve (12) months after such Letter of Credit’s date of issuance and in no
event later than the last day of the Term. Each standby Letter of Credit shall be subject either to the Uniform Customs and Practice
for Documentary Credits as most recently published by the International Chamber of Commerce at the time a Letter of Credit is issued
(the “UCP”) or the International Standby Practices (ISP98-International Chamber of Commerce Publication Number 590) (the
“ISP98 Rules”), and any subsequent revisions thereof at the time a standby Letter of Credit is issued, as determined by Agent,
and each trade Letter of Credit shall be subject to the UCP.

 

(c)
Agent shall use its reasonable efforts to notify Lenders of the request by Borrower for a Letter of Credit hereunder.

 

2.11.
Requirements For Issuance of Letters of Credit.

 

(a)
Borrower shall authorize and direct any Issuer to name Borrower as the “Applicant” or “Account Party” of each
Letter of Credit. If Agent is not the Issuer of any Letter of Credit, Borrower shall authorize and direct the Issuer to deliver to Agent
all instruments, documents, and other writings and property received by the Issuer pursuant to the Letter of Credit and to accept and
rely upon Agent’s instructions and agreements with respect to all matters arising in connection with the Letter of Credit, the
application therefor or any Acceptance therefor.

 

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(b)
In connection with all Letters of Credit issued or caused to be issued by Agent under this Agreement, Borrower hereby appoints Agent,
or its designee, as its attorney, with full power and authority if an Event of Default shall have occurred and be continuing, (i) to
sign and/or endorse Borrower’s name upon any warehouse or other receipts, letter of credit applications and acceptances, (ii) to
sign Borrower’s name on bills of lading; (iii) to clear Inventory through the United States of America Customs Department (“Customs”)
in the name of Borrower or Agent or Agent’s designee, and to sign and deliver to Customs officials powers of attorney in the name
of Borrower for such purpose; and (iv) to complete in Borrower’s name or Agent’s, or in the name of Agent’s designee,
any order, sale or transaction, obtain the necessary documents in connection therewith, and collect the proceeds thereof. Neither Agent
nor its attorneys will be liable for any acts or omissions nor for any error of judgment or mistakes of fact or law, except for Agent’s
or its attorney’s willful misconduct. This power, being coupled with an interest, is irrevocable as long as any Letters of Credit
remain outstanding.

 

2.12.
Disbursements, Reimbursement.

 

(a)
Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from Agent a participation in such Letter of Credit and each drawing thereunder in an amount equal to such Lender’s
Commitment Percentage of the Maximum Face Amount of such Letter of Credit and the amount of such drawing, respectively.

 

(b)
In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, Agent will promptly notify
Borrower. Provided that it shall have received such notice, Borrower shall reimburse (such obligation to reimburse Agent shall sometimes
be referred to as a “Reimbursement Obligation”) Agent prior to 12:00 Noon, New York time on each date that an amount
is paid by Agent under any Letter of Credit (each such date, a “Drawing Date”) in an amount equal to the amount so
paid by Agent. In the event Borrower fails to reimburse Agent for the full amount of any drawing under any Letter of Credit by 12:00
Noon, New York time, on the Drawing Date, Agent will promptly notify each Lender thereof, and Borrower shall be deemed to have requested
that a Revolving Advance maintained as a Domestic Rate Loan be made by the Lenders to be disbursed on the Drawing Date under such Letter
of Credit, subject to the amount of the unutilized portion of the lesser of Maximum Revolving Advance Amount or the Formula Amount and
subject to Section 8.2 hereof. Any notice given by Agent pursuant to this Section 2.12(b) may be oral if immediately confirmed in writing;
provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 

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(c)
Each Lender shall upon any notice pursuant to Section 2.12(b) make available to Agent an amount in immediately available funds equal
to its Commitment Percentage of the amount of the drawing, whereupon the participating Lenders shall (subject to Section 2.12(d)) each
be deemed to have made a Revolving Advance maintained as a Domestic Rate Loan to Borrower in that amount. If any Lender so notified fails
to make available to Agent the amount of such Lender’s Commitment Percentage of such amount by no later than 2:00 p.m., New York
time on the Drawing Date, then interest shall accrue on such Lender’s obligation to make such payment, from the Drawing Date to
the date on which such Lender makes such payment (i) at a rate per annum equal to the Effective Federal Funds Rate during the first three
(3) days following the Drawing Date and (ii) at a rate per annum equal to the rate applicable to Revolving Advances maintained as a Domestic
Rate Loans on and after the fourth day following the Drawing Date. Agent will promptly give notice of the occurrence of the Drawing Date,
but failure of Agent to give any such notice on the Drawing Date or in sufficient time to enable any Lender to effect such payment on
such date shall not relieve such Lender from its obligation under this Section 2.12(c), provided that such Lender shall not be obligated
to pay interest as provided in Section 2.12(c) (i) and (ii) until and commencing from the date of receipt of notice from Agent of a drawing.

 

(d)
With respect to any unreimbursed drawing that is not converted into a Revolving Advance maintained as a Domestic Rate Loan to Borrower
in whole or in part as contemplated by Section 2.12(b), because of Borrower’s failure to satisfy the conditions set forth in Section
8.2 (other than any notice requirements) or for any other reason, Borrower shall be deemed to have incurred from Agent a borrowing (each
a “Letter of Credit Borrowing”) in the amount of such drawing. Such Letter of Credit Borrowing shall be due and payable
on demand (together with interest) and shall bear interest at the rate per annum applicable to a Revolving Advance maintained as a Domestic
Rate Loan. Each Lender’s payment to Agent pursuant to Section 2.12(c) shall be deemed to be a payment in respect of its participation
in such Letter of Credit Borrowing and shall constitute a “Participation Advance” from such Lender in satisfaction of its
Participation Commitment under this Section 2.12.

 

Each
Lender’s Participation Commitment shall continue until the last to occur of any of the following events: (x) Agent ceases to be
obligated to issue or cause to be issued Letters of Credit hereunder; (y) no Letter of Credit issued or created hereunder remains outstanding
and uncancelled and (z) all Persons (other than Borrower) have been fully reimbursed for all payments made under or relating to Letters
of Credit.

 

2.13.
Repayment of Participation Advances.

 

(a)
Upon (and only upon) receipt by Agent for its account of immediately available funds from Borrower (i) in reimbursement of any payment
made by Agent under the Letter of Credit with respect to which any Lender has made a Participation Advance to Agent, or (ii) in payment
of interest on such a payment made by Agent under such a Letter of Credit, Agent will pay to each Lender, in the same funds as those
received by Agent, the amount of such Lender’s Commitment Percentage of such funds, except Agent shall retain the amount of the
Commitment Percentage of such funds of any Lender that did not make a Participation Advance in respect of such payment by Agent.

 

(b)
If Agent is required at any time to return to Borrower, or to a trustee, receiver, liquidator, custodian, or any official in any insolvency
proceeding, any portion of the payments made by Borrower to Agent pursuant to Section 2.13(a) in reimbursement of a payment made under
the Letter of Credit or interest or fee thereon, each Lender shall, on demand of Agent, forthwith return to Agent the amount of its Commitment
Percentage of any amounts so returned by Agent plus interest at the Effective Federal Funds Rate.

 

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2.14.
Documentation.

 

Borrower
agrees to be bound by the terms of the Letter of Credit Application and by Agent’s interpretations of any Letter of Credit issued
for Borrower’s account and by Agent’s written regulations and customary practices relating to letters of credit, though Agent’s
interpretations may be different from Borrower’s own. In the event of a conflict between the Letter of Credit Application and this
Agreement, this Agreement shall govern. It is understood and agreed that, except in the case of gross negligence or willful misconduct
(as determined by a court of competent jurisdiction in a final non-appealable judgment), Agent shall not be liable for any error, negligence
and/or mistakes, whether of omission or commission, in following Borrower’s instructions or those contained in the Letters of Credit
or any modifications, amendments or supplements thereto.

 

2.15.
Determination to Honor Drawing Request.

 

In
determining whether to honor any request for drawing under any Letter of Credit by the beneficiary thereof, Agent shall be responsible
only to determine that the documents and certificates required to be delivered under such Letter of Credit have been delivered and that
they comply on their face with the requirements of such Letter of Credit and that any other drawing condition appearing on the face of
such Letter of Credit has been satisfied in the manner so set forth.

 

2.16.
Nature of Participation and Reimbursement Obligations.

 

Each
Lender’s obligation in accordance with this Agreement to make the Revolving Advances or Participation Advances as a result of a
drawing under a Letter of Credit, and the obligations of Borrower to reimburse Agent upon a draw under a Letter of Credit, shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Section 2.16 under all circumstances,
including the following circumstances:

 

(i)
any set-off, counterclaim, recoupment, defense or other right which such Lender may have against Agent, Borrower or any other Person
for any reason whatsoever;

 

(ii)
the failure of Borrower or any other Person to comply, in connection with a Letter of Credit Borrowing, with the conditions set forth
in this Agreement for the making of a Revolving Advance, it being acknowledged that such conditions are not required for the making of
a Letter of Credit Borrowing and the obligation of the Lenders to make Participation Advances under Section 2.12;

 

(iii)
any lack of validity or enforceability of any Letter of Credit;

 

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(iv)
any claim of breach of warranty that might be made by Borrower or any Lender against the beneficiary of a Letter of Credit, or the existence
of any claim, set-off, recoupment, counterclaim, cross claim, defense or other right which Borrower or any Lender may have at any time
against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or the proceeds thereof (or any Persons for
whom any such transferee may be acting), Agent or any Lender or any other Person, whether in connection with this Agreement, the transactions
contemplated herein or any unrelated transaction (including any underlying transaction between Borrower or any Subsidiaries of Borrower
and the beneficiary for which any Letter of Credit was procured);

 

(v)
the lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on) or the form of or lack
of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other document presented
under or in connection with any Letter of Credit, or any fraud or alleged fraud in connection with any Letter of Credit, or the transport
of any property or provisions of services relating to a Letter of Credit, in each case even if Agent or any of Agent’s Affiliates
has been notified thereof;

 

(vi)
payment by Agent under any Letter of Credit against presentation of a demand, draft or certificate or other document which does not comply
with the terms of such Letter of Credit;

 

(vii)
the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having a role in any transaction
or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic of
any property or services relating to a Letter of Credit;

 

(viii)
any failure by Agent or any of Agent’s Affiliates to issue any Letter of Credit in the form requested by Borrower, unless Agent
has received written notice from Borrower of such failure within three (3) Business Days after Agent shall have furnished Borrower a
copy of such Letter of Credit and such error is material and no drawing has been made thereon prior to receipt of such notice;

 

(ix)
any Material Adverse Effect on Borrower or any Guarantor;

 

(x)
any breach of this Agreement or any Other Document by any party thereto;

 

(xi)
the occurrence or continuance of an insolvency proceeding with respect to Borrower or any Guarantor;

 

(xii)
the fact that a Default or Event of Default shall have occurred and be continuing;

 

(xiii)
the fact that the Term shall have expired or this Agreement or the Obligations hereunder shall have been terminated; and

 

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(xiv)
any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.

 

2.17.
Indemnity.

 

In
addition to amounts payable as provided in Section 15.5, Borrower hereby agrees to protect, indemnify, pay and save harmless Agent and
any of Agent’s Affiliates that have issued a Letter of Credit from and against any and all claims, demands, liabilities, damages,
taxes, penalties, interest, judgments, losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of
counsel and allocated costs of internal counsel) which Agent or any of Agent’s Affiliates may incur or be subject to as a consequence,
direct or indirect, of the issuance of any Letter of Credit, other than as a result of (a) the gross negligence or willful misconduct
of Agent as determined by a final and non-appealable judgment of a court of competent jurisdiction or (b) the wrongful dishonor by Agent
or any of Agent’s Affiliates of a proper demand for payment made under any Letter of Credit, except if such dishonor resulted from
any act or omission, whether rightful or wrongful, of any present or future de jure or de facto Governmental Body (all such acts or omissions
herein called “Governmental Acts”). The foregoing obligations and the indemnifications hereunder shall survive the
termination of this Agreement.

 

2.18.
Liability for Acts and Omissions.

 

As
between Borrower and Agent and Lenders, Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by,
the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the respective foregoing, Agent shall
not be responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party
in connection with the application for an issuance of any such Letter of Credit, even if it should in fact prove to be in any or all
respects invalid, insufficient, inaccurate, fraudulent or forged (even if Agent shall have been notified thereof); (ii) the validity
or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) the
failure of the beneficiary of any such Letter of Credit, or any other party to which such Letter of Credit may be transferred, to comply
fully with any conditions required in order to draw upon such Letter of Credit or any other claim of Borrower against any beneficiary
of such Letter of Credit, or any such transferee, or any dispute between or among Borrower and any beneficiary of any Letter of Credit
or any such transferee; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable,
facsimile, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay
in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds
thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of
Credit; or (viii) any consequences arising from causes beyond the control of Agent, including any governmental acts, and none of the
above shall affect or impair, or prevent the vesting of, any of Agent’s rights or powers hereunder. Nothing in the preceding sentence
shall relieve Agent from liability for Agent’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction
in a final non-appealable judgment) in connection with actions or omissions described in such clauses (i) through (viii) of such sentence.
In no event shall Agent or Agent’s Affiliates be liable to Borrower for any indirect, consequential, incidental, punitive, exemplary
or special damages or expenses (including without limitation attorneys’ fees), or for any damages resulting from any change in
the value of any property relating to a Letter of Credit.

 

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Without
limiting the generality of the foregoing, Agent and each of its Affiliates (i) may rely on any oral or other communication believed in
good faith by Agent or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of Credit, (ii)
may honor any presentation if the documents presented appear on their face substantially to comply with the terms and conditions of the
relevant Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was pursuant
to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise, and shall be entitled to reimbursement to the
same extent as if such presentation had initially been honored, together with any interest paid by Agent or its Affiliates; (iv) may
honor any drawing that is payable upon presentation of a statement advising negotiation or payment, upon receipt of such statement (even
if such statement indicates that a draft or other document is being delivered separately), and shall not be liable for any failure of
any such draft or other document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any paying or negotiating
bank claiming that it rightfully honored under the laws or practices of the place where such bank is located; and (vi) may settle or
adjust any claim or demand made on Agent or its Affiliate in any way related to any order issued at the applicant’s request to
an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar document (each an “Order”)
and honor any drawing in connection with any Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other
documents presented in connection with such Letter of Credit fail to conform in any way with such Letter of Credit.

 

In
furtherance and extension and not in limitation of the specific provisions set forth above, any action taken or omitted by Agent under
or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted
in good faith and without gross negligence (as determined by a court of competent jurisdiction in a final non-appealable judgment), shall
not put Agent under any resulting liability to Borrower or any Lender.

 

2.19.
Additional Payments.

 

Any
sums expended by Agent or any Lender due to Borrower’s failure to perform or comply with its obligations under this Agreement or
any Other Document including Borrower’s obligations under Sections 4.2, 4.4, 4.12, 4.13, 4.14 and 6.1 hereof, may be charged to
Borrower’s Account as a Revolving Advance and added to the Obligations.

 

2.20.
Manner of Borrowing and Payment.

 

(a)
Each borrowing of Revolving Advances shall be advanced according to the applicable Commitment Percentages of Lenders. The Term Loan shall
be advanced according to the Commitment Percentages of Lenders. Each borrowing of Equipment Loans shall be advanced according to the
Commitment Percentage of Lenders.

 

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(b)
Each payment (including each prepayment) by Borrower on account of the principal of and interest on the Revolving Advances, shall be
applied to the Revolving Advances pro rata according to the applicable Commitment Percentages of Lenders. Each payment (including each
prepayment) by Borrower on account of the principal of and interest on the Term Note, shall be made from or to, or applied to that portion
of the Term Loan evidenced by the Term Note pro rata according to the Commitment Percentages of Lenders. Each payment (including each
prepayment) by Borrower on account of the Equipment Loans shall be applied to the applicable Equipment Loan pro rata according to the
Commitment Percentage of Lenders. Except as expressly provided herein, all payments (including prepayments) to be made by Borrower on
account of principal, interest and fees shall be made without set off or counterclaim and shall be made to Agent on behalf of the Lenders
to the Payment Office, in each case on or prior to 1:00 P.M., New York time, in Dollars and in immediately available funds.

 

(c)
(i) Notwithstanding anything to the contrary contained in Sections 2.20(a) and (b) hereof, commencing with the first Business Day following
the Closing Date, each borrowing of Revolving Advances or an Equipment Loan, as applicable, shall be advanced by Agent and each payment
by Borrower on account of Revolving Advances or an Equipment Loan, as applicable, shall be applied first to those Revolving Advances
or those Equipment Loan, as applicable, advanced by Agent. On or before 1:00 P.M., New York time, on each Settlement Date commencing
with the first Settlement Date following the Closing Date, Agent and Lenders shall make certain payments as follows: (I) if the aggregate
amount of new Revolving Advances or Equipment Loans, as applicable, made by Agent during the preceding Week (if any) exceeds the aggregate
amount of repayments applied to outstanding Revolving Advances or Equipment Loans, as applicable, during such preceding Week, then each
Lender shall provide Agent with funds in an amount equal to its applicable Commitment Percentage of the difference between (w) such Revolving
Advances or such Equipment Loan, as applicable, and (x) such repayments and (II) if the aggregate amount of repayments applied to outstanding
Revolving Advances or Equipment Loans, as applicable, during such Week exceeds the aggregate amount of new Revolving Advances or Equipment
Loans, as applicable, made during such Week, then Agent shall provide each Lender with funds in an amount equal to its applicable Commitment
Percentage of the difference between (y) such repayments and (z) such Revolving Advances or such Equipment Loans, as applicable.

 

(ii)
Each Lender shall be entitled to earn interest at the applicable Contract Rate on outstanding Advances which it has funded.

 

(iii)
Promptly following each Settlement Date, Agent shall submit to each Lender a certificate with respect to payments received and Advances
made during the Week immediately preceding such Settlement Date. Such certificate of Agent shall be conclusive in the absence of manifest
error.

 

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(d)
If any Lender or Participant (a “benefited Lender”) shall at any time receive any payment of all or part of its Advances,
or interest thereon, or receive any Collateral in respect thereof (whether voluntarily or involuntarily or by set-off) in a greater proportion
than any such payment to and Collateral received by any other Lender, if any, in respect of such other Lender’s Advances, or interest
thereon, and such greater proportionate payment or receipt of Collateral is not expressly permitted hereunder, such benefited Lender
shall purchase for cash from the other Lenders a participation in such portion of each such other Lender’s Advances, or shall provide
such other Lender with the benefits of any such Collateral, or the proceeds thereof, as shall be necessary to cause such benefited Lender
to share the excess payment or benefits of such Collateral or proceeds ratably with each of the other Lenders; provided, however, that
if all or any portion of such excess payment or benefits is thereafter recovered from such benefited Lender, such purchase shall be rescinded,
and the purchase price and benefits returned, to the extent of such recovery, but without interest. Each Lender so purchasing a portion
of another Lender’s Advances may exercise all rights of payment (including rights of set-off) with respect to such portion as fully
as if such Lender were the direct holder of such portion.

 

(e)
Unless Agent shall have been notified by telephone, confirmed in writing, by any Lender that such Lender will not make the amount which
would constitute its applicable Commitment Percentage of the Advances available to Agent, Agent may (but shall not be obligated to) assume
that such Lender shall make such amount available to Agent on the next Settlement Date and, in reliance upon such assumption, make available
to Borrower a corresponding amount. Agent will promptly notify Borrower of its receipt of any such notice from a Lender. If such amount
is made available to Agent on a date after such next Settlement Date, such Lender shall pay to Agent on demand an amount equal to the
product of (i) the daily average Effective Federal Funds Rate (computed on the basis of a year of 360 days) during such period as quoted
by Agent, times (ii) such amount, times (iii) the number of days from and including such Settlement Date to the date on which such amount
becomes immediately available to Agent. A certificate of Agent submitted to any Lender with respect to any amounts owing under this paragraph
(e) shall be conclusive, in the absence of manifest error. If such amount is not in fact made available to Agent by such Lender within
three (3) Business Days after such Settlement Date, Agent shall be entitled to recover such an amount, with interest thereon at the rate
per annum then applicable to such Revolving Advances hereunder, on demand from Borrower; provided, however, that Agent’s right
to such recovery shall not prejudice or otherwise adversely affect Borrower’s rights (if any) against such Lender.

 

2.21.
Mandatory Prepayments.

 

Subject
to Section 4.3 hereof, when any Credit Party sells or otherwise disposes of any Collateral other than Inventory in the Ordinary Course
of Business, Borrower shall repay the Advances in an amount equal to the Net Cash Proceeds, such repayments to be made promptly but in
no event more than three (3) Business Days following receipt of such net proceeds, and until the date of payment, such proceeds shall
be held in trust for Agent. The foregoing shall not be deemed to be implied consent to any such sale otherwise prohibited by the terms
and conditions hereof. Such repayments shall be applied (i) if the Collateral disposed of is equipment the purchase of which was financed
by an Equipment Loan, (x) first, to the outstanding principal installments of the Equipment Loans in the inverse order of the maturities
thereof, (y) second, to the outstanding principal installments of the Term Loan in the inverse order of the maturities thereof and (z)
third, to the remaining Advances (including cash collateralization of all Obligations relating to any outstanding Letters of Credit in
accordance with the provisions of Section 3.2(b); provided however that if no Default or Event of Default has occurred and is continuing,
such repayments shall be applied to cash collateralize any Obligations related to outstanding Letters of Credit last) in such order as
Agent may determine, subject to Borrower’s ability to reborrow Revolving Advances in accordance with the terms hereof or (ii) if
the Collateral disposed of is equipment other than as set forth in (i) above or other Collateral, (x), first, to the outstanding principal
installments of the Term Loan in the inverse order of the maturities thereof, (y) second, to the outstanding principal installments of
the Equipment Loans in the inverse order of the maturities thereof and (z) third, to the remaining Advances (including cash collateralization
of all Obligations relating to any outstanding Letters of Credit in accordance with the provisions of Section 3.2(b); provided however
that if no Default or Event of Default has occurred and is continuing, such repayments shall be applied to cash collateralize any Obligations
related to outstanding Letters of Credit last) in such order as Agent may determine, subject to Borrower’s ability to reborrow
Revolving Advances in accordance with the terms hereof.

 

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2.22.
Use of Proceeds.

 

(a)
Borrower shall apply the proceeds of Advances to (i) pay fees and expenses relating to this transaction, (ii) provide for its working
capital needs and reimburse drawings under Letters of Credit, and (iii) for other general corporate purposes of Borrower.

 

(b)
Without limiting the generality of Section 2.22(a) above, neither Borrower, the Guarantors nor any other Person which may in the future
become party to this Agreement or the Other Documents as Borrower or Guarantor, intends to use nor shall they use any portion of the
proceeds of the Advances, directly or indirectly, for any purpose in violation of the Trading with the Enemy Act.

 

2.23.
Defaulting Lender.

 

(a)
Notwithstanding anything to the contrary contained herein, in the event any Lender (x) has refused (which refusal constitutes a breach
by such Lender of its obligations under this Agreement) to make available its portion of any Advance or (y) notifies either Agent or
Borrower that it does not intend to make available its portion of any Advance (if the actual refusal would constitute a breach by such
Lender of its obligations under this Agreement) (each, a “Lender Default”), all rights and obligations hereunder of
such Lender (a “Defaulting Lender”) as to which a Lender Default is in effect and of the other parties hereto shall
be modified to the extent of the express provisions of this Section 2.23 while such Lender Default remains in effect.

 

(b)
Advances shall be incurred pro rata from Lenders (the “Non-Defaulting Lenders”) which are not Defaulting Lenders based
on their respective Commitment Percentages, and no Commitment Percentage of any Lender or any pro rata share of any Advances required
to be advanced by any Lender shall be increased as a result of such Lender Default. Amounts received in respect of principal of any type
of Advances shall be applied to reduce the applicable Advances of each Lender (other than any Defaulting Lender) pro rata based on the
aggregate of the outstanding Advances of that type of all Lenders at the time of such application; provided, that, Agent shall not be
obligated to transfer to a Defaulting Lender any payments received by Agent for the Defaulting Lender’s benefit, nor shall a Defaulting
Lender be entitled to the sharing of any payments hereunder (including any principal, interest or fees). Amounts payable to a Defaulting
Lender shall instead be paid to or retained by Agent. Agent may hold and, in its discretion, re-lend to Borrower the amount of such payments
received or retained by it for the account of such Defaulting Lender.

 

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(c)
A Defaulting Lender shall not be entitled to give instructions to Agent or to approve, disapprove, consent to or vote on any matters
relating to this Agreement and the Other Documents. All amendments, waivers and other modifications of this Agreement and the Other Documents
may be made without regard to a Defaulting Lender and, for purposes of the definition of “Required Lenders”, a Defaulting
Lender shall be deemed not to be a Lender and not to have either Advances outstanding or a Commitment Percentage.

 

(d)
Other than as expressly set forth in this Section 2.23, the rights and obligations of a Defaulting Lender (including the obligation to
indemnify Agent) and the other parties hereto shall remain unchanged. Nothing in this Section 2.23 shall be deemed to release any Defaulting
Lender from its obligations under this Agreement and the Other Documents, shall alter such obligations, shall operate as a waiver of
any default by such Defaulting Lender hereunder, or shall prejudice any rights which Borrower, Agent or any Lender may have against any
Defaulting Lender as a result of any default by such Defaulting Lender hereunder.

 

(e)
In the event a Defaulting Lender retroactively cures to the satisfaction of Agent the breach which caused a Lender to become a Defaulting
Lender, such Defaulting Lender shall no longer be a Defaulting Lender and shall be treated as a Lender under this Agreement.

 

ARTICLE
III

 

INTEREST
AND FEES

 

3.1.
Interest.

 

Interest
on Advances shall be payable in arrears on the first day of each month with respect to Domestic Rate Loans and, with respect to Term
SOFR Rate Loans, at the end of each Interest Period provided that all accrued and unpaid interest shall be due and payable at the end
of the Term. Interest charges shall be computed on the actual principal amount of Advances outstanding during the month at a rate per
annum equal to (i) with respect to Revolving Advances, the applicable Revolving Interest Rate and (ii) with respect to the Term Loan
and the Equipment Loans, the applicable Term Loan Rate (as applicable, the “Contract Rate”). Whenever, subsequent
to the date of this Agreement, the Alternate Base Rate is increased or decreased, the applicable Contract Rate for Domestic Rate Loans
shall be similarly changed without notice or demand of any kind by an amount equal to the amount of such change in the Alternate Base
Rate during the time such change or changes remain in effect. The Term SOFR Rate shall be adjusted with respect to Term SOFR Rate Loans
without notice or demand of any kind on the effective date of any change in the SOFR Reserve Percentage as of such effective date. Upon
and after the occurrence of an Event of Default, and during the continuation thereof, at the option of Agent or at the direction of Required
Lenders, the Obligations shall bear interest at the applicable Contract Rate plus two (2%) percent per annum (as applicable, the “Default
Rate”).

 

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3.2.
Letter of Credit Fees.

 

(a)
Borrower shall pay (x) to Agent, for the ratable benefit of Lenders, fees for each Letter of Credit for the period from and excluding
the date of issuance of same to and including the date of expiration or termination, equal to the aggregate daily face amount of each
outstanding Letter of Credit multiplied by two percent (2.0%) per annum, such fees to be calculated on the basis of a 360-day year for
the actual number of days elapsed and to be payable quarterly in arrears on the first day of each fiscal quarter and on the last day
of the Term, and (y) to the Issuer, a fronting fee of one quarter of one percent (0.25%) per annum, together with any and all administrative,
issuance, amendment, payment and negotiation charges with respect to Letters of Credit and all fees and expenses as agreed upon by the
Issuer and Borrower in connection with any Letter of Credit, including in connection with the opening, amendment or renewal of any such
Letter of Credit and any acceptances created thereunder and shall reimburse Agent for any and all fees and expenses, if any, paid by
Agent to the Issuer (all of the foregoing fees, the “Letter of Credit Fees”). All such charges shall be deemed earned
in full on the date when the same are due and payable hereunder and shall not be subject to rebate or pro-ration upon the termination
of this Agreement for any reason. Any such charge in effect at the time of a particular transaction shall be the charge for that transaction,
notwithstanding any subsequent change in the Issuer’s prevailing charges for that type of transaction. All Letter of Credit Fees
payable hereunder shall be deemed earned in full on the date when the same are due and payable hereunder and shall not be subject to
rebate or pro-ration upon the termination of this Agreement for any reason. Upon and after the occurrence of an Event of Default, and
during the continuation thereof, at the option of Agent or at the direction of Required Lenders, the Letter of Credit Fees described
in clause (x) of this Section 3.2(a) shall be increased by an additional two percent (2%) per annum.

 

(b)
Following an Event of Default that is continuing or if a Letter of Credit will expire after the Term, Borrower will cause cash to be
deposited and maintained in an account with Agent, as cash collateral, in an amount equal to one hundred and five percent (105%) of the
Maximum Undrawn Amount of all outstanding Letters of Credit, and Borrower hereby irrevocably authorizes Agent, in its discretion, on
Borrower’s behalf and in Borrower’s name, to open such an account and to make and maintain deposits therein, or in an account
opened by Borrower, in the amounts required to be made by Borrower, out of the proceeds of Receivables or other Collateral or out of
any other funds of Borrower coming into any Lender’s possession at any time. Agent will invest such cash collateral (less applicable
reserves) in such short-term money-market items as to which Agent and Borrower mutually agree and the net return on such investments
shall be credited to such account and constitute additional cash collateral. During the period that an Event of Default is continuing,
Borrower may not withdraw amounts credited to any such account except upon the occurrence of all of the following: (x) payment and performance
in full of all Obligations, (y) expiration of all Letters of Credit and (z) termination of this Agreement.

 

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3.3.
Amendment Fee and Facility Fee.

 

(a)
Amendment Fee.

 

Upon
the execution of this Agreement, Borrower shall pay to Agent for the ratable benefit of Lenders an amendment fee of $50,000.

 

(b)
Facility Fee.

 

Borrower
shall pay to Agent a fee for the ratable benefit of Lenders in an amount equal to (i)(x) until the first day of the month in which the
Agent receives Borrower’s Compliance Certificate showing a Fixed Charge Coverage Ratio of not less than 1.15 based on a trailing
twelve months (the “Step Down Date”), 0.50% per annum and (y) after the Step Down Date, 0.375% per annum, multiplied by
(ii) (x) the amount by which the sum of the Maximum Revolving Advance Amount plus the Maximum Equipment Loan Amount exceeds (y) the
sum of the daily unpaid balance of the Revolving Advances plus the daily unpaid balance of the Equipment Loans plus the aggregate amount
of any outstanding Letters of Credit that are available to be drawn during each calendar quarter. Such fee shall be payable to Agent
in arrears on the first day of each calendar quarter with respect to the previous calendar quarter.

 

3.4.
Collateral Fees.

 

(a)
Collateral Evaluation Fee.

 

Borrower
shall pay Agent a collateral evaluation fee equal to $3,125 per month commencing on June 1, 2020 and on the first day of each month thereafter
during the Term. The collateral evaluation fee shall be deemed earned in full on the date when same is due and payable hereunder and
shall not be subject to rebate or proration upon termination of this Agreement for any reason.

 

(b)
Collateral Monitoring Fee.

 

Borrower
shall pay to Agent on the first day of each month following any month in which Agent performs any collateral monitoring - namely any
field examination, collateral analysis or other business analysis, the need for which is to be determined by Agent and which monitoring
is undertaken by Agent or for Agent’s benefit - a collateral monitoring fee in an amount equal to $1,000 per day for each person
employed to perform such monitoring, plus a per examination field exam management fee in the amount of $1,500 (or, in each event, such
amount customarily charged by Agent to its customers), plus all costs and disbursements incurred by Agent in the performance of such
examination or analysis.

 

3.5.
Computation of Interest and Fees.

 

Interest
and fees hereunder shall be computed on the basis of a year of 360 days and for the actual number of days elapsed. If any payment to
be made hereunder becomes due and payable on a day other than a Business Day, the due date thereof shall be extended to the next succeeding
Business Day and interest thereon shall be payable at the applicable Contract Rate for Domestic Rate Loans during such extension.

 

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3.6.
Maximum Charges.

 

In
no event whatsoever shall interest and other charges charged hereunder exceed the highest rate permissible under law. In the event interest
and other charges as computed hereunder would otherwise exceed the highest rate permitted under law, such excess amount shall be first
applied to any unpaid principal balance owed by Borrower, and if the then remaining excess amount is greater than the previously unpaid
principal balance, Lenders shall promptly refund such excess amount to Borrower and the provisions hereof shall be deemed amended to
provide for such permissible rate.

 

3.7.
Increased Costs.

 

(a)
In the event that any Applicable Law, or any Change in Law or compliance by any Lender in the interpretation or any Change in Law, or
compliance by any Lender (for purposes of this Section 3.7, the term “Lender” shall include Agent or any Lender and any corporation
or bank controlling Agent or any Lender) and the office or branch where Agent or any Lender (as so defined) makes or maintains any Term
SOFR Rate Loans with any request or directive (whether or not having the force of law) from any central bank or other financial, monetary
or other authority, shall:

 

(i)
subject Agent or any Lender to any tax of any kind whatsoever with respect to this Agreement or any Other Document or change the basis
of taxation of payments to Agent or any Lender of principal, fees, interest or any other amount payable hereunder or under any Other
Documents (except for changes in the rate of tax on the overall net income of Agent or any Lender by the jurisdiction in which it maintains
its principal office);

 

(ii)
impose, modify or hold applicable any reserve, special deposit, assessment or similar requirement against assets held by, or deposits
in or for the account of, advances or loans by, or other credit extended by, any office of Agent or any Lender, including (without limitation)
pursuant to Regulation D of the Board of Governors of the Federal Reserve System; or

 

(iii)
impose on Agent or any Lender any other condition with respect to this Agreement or any Other Document;

 

and
the result of any of the foregoing is to increase the cost to Agent or any Lender of making, renewing or maintaining its Advances hereunder
by an amount that Agent or such Lender deems to be material or to reduce the amount of any payment (whether of principal, interest or
otherwise) in respect of any of the Advances by an amount that Agent or such Lender deems to be material, then, in any case Borrower
shall promptly pay Agent or such Lender, upon its demand, such additional amount as will compensate Agent or such Lender for such additional
cost or such reduction, as the case may be, provided that the foregoing shall not apply to increased costs which are reflected in the
Eurodollar Rate, as the case may be. Agent or such Lender shall certify the amount of such additional cost or reduced amount to Borrower,
and such certification shall be conclusive absent manifest error.

 

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(b)
A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender and delivered to Borrower shall be
conclusive absent manifest error, provided that such certificate shall set forth reasonably detailed calculations.

 

(c)
Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section 3.7 shall not
constitute a waiver of such Lender’s right to demand such compensation.

 

3.8.
Alternate Rate of Interest.

 

3.8.1.
Interest Rate Inadequate or Unfair. In the event that Agent or any Lender shall have determined that:

 

(a)
reasonable means do not exist for ascertaining the Term SOFR Rate applicable pursuant to Section 2.2 hereof for any Interest Period;
or

 

(b)
Dollar deposits in the relevant amount and for the relevant maturity are not available, with respect to an outstanding Term SOFR Rate
Loan, a proposed Term SOFR Rate Loan, or a proposed conversion of a Domestic Rate Loan into a Term SOFR Rate Loan; or

 

(c)
the making, maintenance or funding of any Term SOFR Rate Loan has been made impracticable or unlawful by compliance by Agent or such
Lender in good faith with any Applicable Law or any interpretation or application thereof by any Governmental Body or with any request
or directive of any such Governmental Body (whether or not having the force of law); or

 

(d)
the Term SOFR Rate will not adequately and fairly reflect the cost to such Lender of the establishment or maintenance of any Term SOFR
Rate Loan,

 

then
Agent shall give Borrower prompt written or telephonic notice of such determination. If such notice is given prior to a Benchmark Replacement
Date (as defined below), (i) any such requested Term SOFR Rate Loan shall be made as a Domestic Rate Loan, unless Borrower shall notify
Agent no later than 1:00 p.m., New York time two (2) Business Days prior to the date of such proposed borrowing, that its request for
such borrowing shall be cancelled or made as an unaffected type of Term SOFR Rate Loan, (ii) any Domestic Rate Loan or Term SOFR Rate
Loan which was to have been converted to an affected type of Term SOFR Rate Loan shall be continued as or converted into a Domestic Rate
Loan, or, if Borrower shall notify Agent, no later than 1:00 p.m., New York time two (2) Business Days prior to the proposed conversion,
shall be maintained as an unaffected type of Term SOFR Rate Loan, and (iii) any outstanding affected Term SOFR Rate Loans shall be converted
into a Domestic Rate Loan, or, if Borrower shall notify Agent, no later than 1:00 p.m., New York time two (2) Business Days prior to
the last Business Day of the then current Interest Period applicable to such affected Term SOFR Rate Loan, shall be converted into an
unaffected type of Term SOFR Rate Loan, on the last Business Day of the then current Interest Period for such affected Term SOFR Rate
Loans (or sooner, if any Lender cannot continue to lawfully maintain such affected Term SOFR Rate Loan). Until such notice has been withdrawn,
Lenders shall have no obligation to make an affected type of Term SOFR Rate Loan or maintain outstanding affected Term SOFR Rate Loans
and Borrower shall not have the right to convert a Domestic Rate Loan or an unaffected type of Term SOFR Rate Loan into an affected type
of Term SOFR Rate Loan.

 

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3.8.2.
Benchmark Replacement Setting.

 

(a)
Benchmark Replacement. Notwithstanding anything to the contrary herein or in any Other Document (and any agreement executed in
connection with an Interest Rate Hedge shall be deemed not to be an “Other Document” for purposes of this Section titled
“Benchmark Replacement Setting”), if a Benchmark Transition Event and related Benchmark Replacement Date have occurred prior
to any setting of the then-current Benchmark, then (A) if a Benchmark Replacement is determined in accordance with clause (1) of the
definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark
for all purposes hereunder and under any Other Document in respect of such Benchmark setting and subsequent Benchmark settings without
any amendment to, or further action or consent of any other party to, this Agreement or any Other Document and (B) if a Benchmark Replacement
is determined in accordance with clause (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date,
such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Other Document in respect of any Benchmark
setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement
is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any Other
Document so long as the Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders
comprising the Required Lenders.

 

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

 

(c)
Notices; Standards for Decisions and Determinations. The Agent will promptly notify the Borrower and the Lenders of (i) the implementation
of any Benchmark Replacement, and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption
or implementation of a Benchmark Replacement. The Agent will notify the Borrower of, (x) the removal or reinstatement of any tenor of
a Benchmark pursuant to paragraph (d) below and (y) the commencement of any Benchmark Unavailability Period. Any determination, decision
or election that may be made by the Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section, including any
determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and
any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may
be made in its or their sole discretion and without consent from any other party to this Agreement or any Other Document except, in each
case, as expressly required pursuant to this Section 3.8.2.

 

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(d)
Unavailability of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any of the Other Documents, at any
time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate and
either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time
to time as selected by the Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark
has provided a public statement or publication of information announcing that any tenor of such Benchmark is not or will not be representative,
then the Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for any Benchmark
settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to
clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement)
or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a
Benchmark Replacement), then the Agent may modify the definition of “Interest Period” (or any similar or analogous definition)
for all Benchmark settings at or after such time to reinstate such previously removed tenor.

 

(e)
Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability
Period, the Borrower may revoke any pending request for an Advance bearing interest based on the Term SOFR Rate, conversion to or continuation
of Advances bearing interest based on the Term SOFR Rate to be made, converted or continued during any Benchmark Unavailability Period
and, failing that, the Borrower will be deemed to have converted any such request into a request for a Domestic Rate Loan. During any
Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of
the Alternate Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any
determination of the Alternate Base Rate.

 

(f)
Certain Defined Terms. As used in this Section 3.8.2.:

 

“Available
Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable (x) if such Benchmark
is a term rate or is based on a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining
the length of an interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference
to such Benchmark (or a component thereof) that is or may be used for determining any frequency of making payments of interest calculated
with reference to such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt,
any tenor of such Benchmark that is then-removed from the definition of “Interest Period” pursuant to paragraph (d) of this
Section .

 

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“Benchmark”
means, initially, the Term SOFR Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Rate or
the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark
Replacement has replaced such prior benchmark rate pursuant to this Section.

 

“Benchmark
Replacement” means, with respect to any Benchmark Transition Event, the first alternative set forth in the order below that
can be determined by the Agent for the applicable Benchmark Replacement Date:

 

		(1)	the
                                            sum of (A) Daily Simple SOFR and (B) the SOFR Adjustment for a one month Interest Period;

 

		(2)	the
                                            sum of: (a) the alternate benchmark rate that has been selected by the Agent and the Borrower,
                                            giving due consideration to (x) any selection or recommendation of a replacement benchmark
                                            rate or the mechanism for determining such a rate by the Relevant Governmental Body or (y)
                                            any evolving or then-prevailing market convention, for determining a benchmark rate as a
                                            replacement to the then-current benchmark for U.S. dollar-denominated syndicated credit facilities
                                            at such time and (b) the related Benchmark Replacement Adjustment;

 

provided
that, if the Benchmark Replacement as determined pursuant to clause (2) above would be less than zero, the Benchmark Replacement
will be deemed to be zero for the purposes of this Agreement and the Other Documents; provided further that any Benchmark Replacement
shall be administratively feasible as determined by the Agent in its sole discretion.

 

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

 

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“Benchmark
Replacement Date” means a date and time determined by the Agent, which date shall be no later than the earliest to occur of
the following events with respect to the then-current Benchmark:

 

(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,”
the later of (A) the date of the public statement or publication of information referenced therein and (B) the date on which the administrator
of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available
Tenors of such Benchmark (or such component thereof); or

 

(2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the
date determined by the Agent, which date shall promptly follow the date of the public statement or publication of information referenced
therein.

 

For
the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2)
with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current
Available Tenors of such Benchmark (or the published component used in the calculation thereof).

 

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

 

(1) a
public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used
in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark
(or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor
administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

 

(2) a
public statement or publication of information by a Governmental Body having jurisdiction over the Agent, the regulatory supervisor for
the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal
Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution
authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency
or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark
(or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently
or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue
to provide any Available Tenor of such Benchmark (or such component thereof); or; or

 

(3) a
public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof) or a Governmental Body having jurisdiction over the Agent announcing that all Available Tenors
of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

 

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For
avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public
statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark
(or the published component used in the calculation thereof).

 

“Benchmark
Unavailability Period” means the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if,
at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Other Document
in accordance with this Section titled “Benchmark Replacement Setting” and (y) ending at the time that a Benchmark Replacement
has replaced the then-current Benchmark for all purposes hereunder and under any Other Document in accordance with this Section titled
“Benchmark Replacement Setting.”

 

“Relevant
Governmental Body” means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a
committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New
York, or any successor thereto.

 

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

 

3.9. Capital
Adequacy.

 

(a) In
the event that Agent or any Lender shall have determined that any Applicable Law or guideline regarding capital adequacy, or any Change
in Law, or any change in the interpretation or administration thereof by any Governmental Body, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by Agent or any Lender (for purposes of this Section 3.9, the term “Lender”
shall include Agent or any Lender and any corporation or bank controlling Agent or any Lender) and the office or branch where Agent or
any Lender (as so defined) makes or maintains any Term SOFR Rate Loans with any request or directive regarding capital adequacy (whether
or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the
rate of return on Agent or any Lender’s capital as a consequence of its obligations hereunder to a level below that which Agent
or such Lender could have achieved but for such adoption, change or compliance (taking into consideration Agent’s and each Lender’s
policies with respect to capital adequacy) by an amount deemed by Agent or any Lender to be material, then, from time to time, Borrower
shall pay upon demand to Agent or such Lender such additional amount or amounts as will compensate Agent or such Lender for such reduction.
In determining such amount or amounts, Agent or such Lender may use any reasonable averaging or attribution methods. The protection of
this Section 3.9 shall be available to Agent and each Lender regardless of any possible contention of invalidity or inapplicability with
respect to the Applicable Law or condition.

 

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(b) A
certificate of Agent or such Lender setting forth such amount or amounts as shall be necessary to compensate Agent or such Lender with
respect to Section 3.9(a) hereof when delivered to Borrower shall be conclusive absent manifest error.

 

(c) Failure
or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section 3.9 shall not constitute
a waiver of such Lender’s right to demand such compensation.

 

3.10. Gross
Up for Taxes.

 

If
Borrower shall be required by Applicable Law to withhold or deduct any taxes from or in respect of any sum payable under this Agreement
or any of the Other Documents to Agent, or any Lender, assignee of any Lender, or Participant (each, individually, a “Payee”
and collectively, the “Payees”), (a) the sum payable to such Payee or Payees, as the case may be, shall be increased
as may be necessary so that, after making all required withholding or deductions, the applicable Payee or Payees receives an amount equal
to the sum it would have received had no such withholding or deductions been made (the “Gross-Up Payment”), (b) Borrower
shall make such withholding or deductions, and (c) Borrower shall pay the full amount withheld or deducted to the relevant taxation authority
or other authority in accordance with Applicable Law. Notwithstanding the foregoing, Borrower shall not be obligated to make any portion
of the Gross-Up Payment that is attributable to any withholding or deductions that would not have been paid or claimed had the applicable
Payee or Payees properly claimed a complete exemption with respect thereto pursuant to Section 3.11 hereof.

 

3.11. Withholding
Tax Exemption.

 

(a) Each
Payee that is not incorporated under the Laws of the United States of America or a state thereof (and, upon the written request of Agent,
each other Payee) agrees that it will deliver to Borrower and Agent two (2) duly completed appropriate valid Withholding Certificates
(as defined under §1.1441-1(c)(16) of the Income Tax Regulations (“Regulations”)) certifying its status (i.e.,
U.S. or foreign person) and, if appropriate, making a claim of reduced, or exemption from, U.S. withholding tax on the basis of an income
tax treaty or an exemption provided by the Code. The term “Withholding Certificate” means a Form W-9; a Form W-8BEN; a Form
W-8ECI; a Form W-8IMY and the related statements and certifications as required under §1.1441-1(e)(2) and/or (3) of the Regulations;
a statement described in §1.871-14(c)(2)(v) of the Regulations; or any other certificates under the Code or Regulations that certify
or establish the status of a payee or beneficial owner as a U.S. or foreign person.

 

(b) Each
Payee required to deliver to Borrower and Agent a valid Withholding Certificate pursuant to Section 3.11(a) hereof shall deliver such
valid Withholding Certificate as follows: (A) each Payee which is a party hereto on the Closing Date shall deliver such valid Withholding
Certificate at least five (5) Business Days prior to the first date on which any interest or fees are payable by Borrower hereunder for
the account of such Payee; (B) each Payee shall deliver such valid Withholding Certificate at least five (5) Business Days before the
effective date of such assignment or participation (unless Agent in its sole discretion shall permit such Payee to deliver such Withholding
Certificate less than five (5) Business Days before such date in which case it shall be due on the date specified by Agent). Each Payee
which so delivers a valid Withholding Certificate further undertakes to deliver to Borrower and Agent two (2) additional copies of such
Withholding Certificate (or a successor form) on or before the date that such Withholding Certificate expires or becomes obsolete or
after the occurrence of any event requiring a change in the most recent Withholding Certificate so delivered by it, and such amendments
thereto or extensions or renewals thereof as may be reasonably requested by Borrower or Agent.

 

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(c) Notwithstanding
the submission of a Withholding Certificate claiming a reduced rate of or exemption from U.S. withholding tax required under Section
3.11(b) hereof, Agent shall be entitled to withhold United States federal income taxes at the full 30% withholding rate if in its reasonable
judgment it is required to do so under the due diligence requirements imposed upon a withholding agent under §1.1441-7(b) of the
Regulations. Further, Agent is indemnified under §1.1461-1(e) of the Regulations against any claims and demands of any Payee for
the amount of any tax it deducts and withholds in accordance with regulations under §1441 of the Code.

 

(d) If
a payment made to a Lender, Issuer, Participant or Agent under any Document would be subject to U.S. Federal withholding Tax imposed
by FATCA if such Person fails to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b)
or 1472(b) of the Code, as applicable), such Lender, Issuer, Participant or Agent shall deliver to Agent (in the case of a Lender or
Issuer) and Borrower (A) a certification signed by the chief financial officer, principal accounting officer, treasurer or controller
of such Person, and (B) other documentation reasonably requested by Agent or Borrower sufficient for Agent and Borrower to comply with
their obligations under FATCA and to determine that such Lender, Participant, Issuer, or Agent has complied with such applicable reporting
requirements.

 

3.12
Survival of Obligations.

 

Borrower’s
obligations and the indemnifications under this Article III shall survive the termination of this Agreement.

 

ARTICLE
IV

 

COLLATERAL:
GENERAL TERMS

 

4.1. Security
Interest in the Collateral.

 

To
secure the prompt payment and performance to Agent and each Lender of the Obligations, Borrower hereby assigns, pledges and grants (and
shall cause each of its Subsidiaries to assign, pledge and grant) to Agent for its benefit and for the ratable benefit of each Lender
a continuing security interest in and to and Lien on all of its Collateral, whether now owned or existing or hereafter acquired or arising
and wheresoever located, which Lien may be subject to a Permitted Encumbrance. Borrower shall, and shall cause each of its Subsidiaries
to, mark its books and records as may be necessary or appropriate to evidence, protect and perfect Agent’s security interest and
shall cause its financial statements to reflect such security interest. Borrower shall promptly provide Agent with written notice of
all commercial tort claims, such notice to contain the case title together with the applicable court and a brief description of the claim(s).
Upon delivery of each such notice, Borrower shall be deemed to hereby grant to Agent a security interest and lien in and to such commercial
tort claims and all proceeds thereof.

 

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4.2. Perfection
of Security Interest.

 

Borrower
shall (and shall cause each of its Subsidiaries to) take, or cause to be taken, any and all action that may be necessary or desirable,
or that Agent may reasonably request, so as at all times to maintain the validity, perfection, enforceability and priority of Agent’s
security interest in and Lien on the Collateral or to enable Agent to protect, exercise or enforce its rights hereunder and in the Collateral,
including, but not limited to, (i) immediately discharging all Liens other than Permitted Encumbrances, (ii) obtaining Lien Waiver Agreements,
(iii) delivering to Agent, endorsed or accompanied by such instruments of assignment as Agent may specify, and stamping or marking, in
such manner as Agent may specify, any and all chattel paper, instruments, letters of credits and advices thereof and documents evidencing
or forming a part of the Collateral, (iv) entering into warehousing, lockbox and other custodial arrangements satisfactory to Agent,
and (v) executing and delivering financing statements, control agreements, instruments of pledge, mortgages, notices and assignments,
in each case in form and substance satisfactory to Agent, relating to the creation, validity, perfection, maintenance or continuation
of Agent’s security interest and Lien under the Uniform Commercial Code or other Applicable Law. Agent is hereby authorized to
file financing statements in accordance with the Uniform Commercial Code as adopted in the State of New York from time to time. By its
signature hereto, Borrower hereby authorizes Agent to file against Borrower, one or more financing continuation or amendment statements
pursuant to the Uniform Commercial Code in form and substance satisfactory to Agent (which statements may have a description of collateral
which is broader than that set forth herein and which may describe the Collateral as “all assets” or “all personal
property”). All charges, expenses and fees Agent may incur in doing any of the foregoing, and any local taxes relating thereto,
shall be charged to Borrower’s Account as a Revolving Advance of a Domestic Rate Loan and added to the Obligations, or, at Agent’s
option, shall be paid to Agent for its benefit and for the ratable benefit of Lenders immediately upon demand.

 

4.3. Disposition
of Collateral.

 

(a) Borrower
shall (and cause each of its Subsidiaries to) reasonably safeguard and protect all Collateral for Agent’s general account and make
no disposition thereof whether by sale, lease or otherwise except (a) the sale of Inventory in the Ordinary Course of Business and (b)
the disposition or transfer of obsolete and worn-out Equipment in the Ordinary Course of Business during any fiscal year having an aggregate
fair market value, based upon Agent’s reasonable estimation), of not more than $500,000 and only to the extent that (i) the proceeds
of any such disposition are used to acquire replacement Equipment which is subject to Agent’s first priority security interest
or (ii) the proceeds of which are remitted to Agent to be applied pursuant to Section 2.21.

 

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(b) No
fees or charges shall apply to such prepayments other than those set forth in Section 13.1.

 

4.4. Preservation
of Collateral.

 

Following
the occurrence of a Default or Event of Default that is continuing in addition to the rights and remedies set forth in Section 11.1 hereof,
Agent: (a) may at any time take such steps as Agent deems necessary to protect Agent’s interest in and to preserve the Collateral,
including the hiring of such security guards or the placing of other security protection measures as Agent may deem appropriate; (b)
may employ and maintain at any Credit Party’s premises a custodian who shall have full authority to do all acts necessary to protect
Agent’s interests in the Collateral; (c) may lease warehouse facilities to which Agent may move all or part of the Collateral;
(d) may use any Credit Party’s owned or leased lifts, hoists, trucks and other facilities or equipment for handling or removing
the Collateral; and (e) shall have, and is hereby granted, a right of ingress and egress to the places where the Collateral is located,
and may proceed over and through any of any Credit Party’s owned or leased property. Each Credit Party shall cooperate fully with
all of Agent’s efforts to preserve the Collateral and will take such actions to preserve the Collateral as Agent may direct. All
of Agent’s expenses of preserving the Collateral, including any expenses relating to the bonding of a custodian, shall be charged
to Borrower’s Account as a Revolving Advance maintained as a Domestic Rate Loan and added to the Obligations.

 

4.5. Ownership
of Collateral.

 

(a)
With respect to the Collateral, at the time the Collateral becomes subject to Agent’s security interest: (i) a Credit Party
shall be the sole owner of and fully authorized and able to sell, transfer, pledge and/or grant a first priority security interest
in each and every item of the its respective Collateral to Agent; and, except for Permitted Encumbrances the Collateral shall be
free and clear of all Liens and encumbrances whatsoever; (ii) each document and agreement executed by a Credit Party or delivered to
Agent or any Lender in connection with this Agreement shall be true and correct in all respects; (iii) all signatures and
endorsements of a Credit Party that appear on such documents and agreements shall be genuine and such Credit Party shall have full
capacity to execute same; and (iv) the Credit Party’s Equipment and Inventory shall be located as set forth on Schedule 4.5
and shall not be removed from such location(s) without the prior written consent of Agent except with respect to the sale of
Inventory in the Ordinary Course of Business and Equipment to the extent permitted in Section 4.3 hereof.

 

(b) (i) As
of the Closing Date, there is no location at which Borrower has any Inventory (except for Inventory in transit) or other Collateral other
than those locations listed on Schedule 4.5; (ii) Schedule 4.5 hereto contains a correct and complete list, as of the Closing Date, of
the legal names and addresses of each warehouse at which Inventory of Borrower is stored and each warehouseman, bailee or other third
party in possession of any of Borrower’s Inventory or Equipment; (iii) Schedule 4.5 hereto sets forth a correct and complete list
as of the Closing Date of (A) each place of business of Borrower and (B) the chief executive office of Borrower; and (iv) Schedule 4.5
hereto sets forth a correct and complete list as of the Closing Date of the location, by state and street address, of all Real Property
owned or leased by Borrower, identifying which properties are owned and which are leased, together with the names and addresses of any
landlords.

 

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4.6. Defense
of Agent’s and Lenders’ Interests.

 

Until
(a) payment and performance in full of all of the Obligations and (b) termination of this Agreement, Agent’s interests in the Collateral
shall continue in full force and effect. During such period Borrower shall not (and shall not permit any of its Subsidiaries to), without
Agent’s prior written consent, pledge, sell (except Inventory in the Ordinary Course of Business and Equipment to the extent permitted
in Section 4.3 hereof), assign, transfer, create or suffer to exist a Lien upon or encumber or allow or suffer to be encumbered in any
way except for Permitted Encumbrances, any part of the Collateral. Borrower shall (and shall cause each of its Subsidiaries to) defend
Agent’s interests in the Collateral against any and all Persons whatsoever. At any time following demand by Agent for payment of
all Obligations, Agent shall have the right to take possession of the indicia of the Collateral and the Collateral in whatever physical
form contained, including, without limitation: labels, stationery, documents, instruments and advertising materials. If Agent exercises
this right to take possession of the Collateral, Borrower shall, upon demand, assemble it in the best manner possible and make it available
to Agent at a place reasonably convenient to Agent. In addition, with respect to all Collateral, Agent and Lenders shall be entitled
to all of the rights and remedies set forth herein and further provided by the Uniform Commercial Code or other Applicable Law. Borrower
shall (and shall cause each of its Subsidiaries to), and Agent may, at its option, instruct all suppliers, carriers, forwarders, warehousers
or others receiving or holding cash, checks, Inventory, documents or instruments in which Agent holds a security interest to deliver
same to Agent and/or subject to Agent’s order and if they shall come into a Credit Party’s possession, they, and each of
them, shall be held by such Credit Party in trust as Agent’s trustee, and such Credit Party will immediately deliver them to Agent
in their original form together with any necessary endorsement.

 

4.7. Books
and Records.

 

Borrower
shall (and shall cause each of its Subsidiaries to) (a) keep proper books of record and account in which full, true and correct entries
will be made of all dealings or transactions of or in relation to its business and affairs which books and records shall be kept at Borrower’s
principal place of business or make such accessible to Agent at Borrower’s principal place of business; (b) set up on its books
accruals with respect to all taxes, assessments, charges, levies and claims; and (c) on a reasonably current basis set up on its books,
from its earnings, allowances against doubtful Receivables, advances and investments and all other proper accruals (including, without
limitation, by reason of enumeration, accruals for premiums, if any, due on required payments and accruals for depreciation, obsolescence,
or amortization of properties), which should be set aside from such earnings in connection with its business. All determinations pursuant
to this subsection shall be made in accordance with, or as required by, GAAP consistently applied in the opinion of such independent
public accountant as shall then be regularly engaged by Borrower.

 

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4.8. Financial
Disclosure.

 

Borrower hereby irrevocably authorizes
and directs all accountants and auditors employed by Borrower at any time during the Term to exhibit and deliver to Agent and each Lender
copies of any of Borrower’s financial statements, trial balances or other accounting records of any sort in the accountant’s
or auditor’s possession, and to disclose to Agent and each Lender any information such accountants may have concerning any Credit
Party’s financial status and business operations. Borrower hereby authorizes all Governmental Bodies to furnish to Agent and each
Lender copies of reports or examinations relating to Borrower or any of its Subsidiaries, whether made by Borrower or any such Subsidiary
or otherwise; however, Agent and each Lender will attempt to obtain such information or materials directly from Borrower prior to obtaining
such information or materials from such accountants or Governmental Bodies.

 

4.9. Compliance
with Laws.

 

Borrower shall (and shall cause
each of its Subsidiaries to) comply in all material respects with all Applicable Laws with respect to the Collateral or any part thereof
or to the operation of any Credit Party’s business the non-compliance with which would have a Material Adverse Effect. The Credit
Parties may, however, contest or dispute any acts, regulations, orders and directions of those bodies or officials in any reasonable manner,
provided that any related Lien is inchoate or stayed and sufficient reserves are established to the reasonable satisfaction of Agent to
protect Agent’s Lien on or security interest in the Collateral. The Collateral, at all times, shall be maintained in accordance
with the requirements of all insurance carriers which provide insurance with respect to the Collateral so that such insurance shall remain
in full force and effect.

 

4.10. Inspection
of Premises; Appraisals.

 

At all reasonable times Agent
and each Lender shall have full access to and the right to audit, check, inspect and make abstracts and copies from the Credit Parties’
books, records, audits, correspondence and all other papers relating to the Collateral and the operation of the Credit Parties’
business. Agent, any Lender and their agents may enter upon any of the Credit Parties’ premises at any time during business hours
and at any other reasonable time, and from time to time, for the purpose of inspecting the Collateral and any and all records pertaining
thereto and the operation of the Credit Parties’ business and discussing the affairs, finances and business of the Credit Parties
with any officers and directors of any Credit Party or with the Accountants. At the sole cost of Borrower, Agent will conduct no more
than four field examinations per year in the absence of a Default. If an Event of Default exists Agent may conduct appraisals (whether
real estate appraisals, appraisals of Inventory or appraisals of Equipment) at Borrower’s expense.

 

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4.11. Insurance.

 

The assets and properties of the
Credit Parties at all times shall be maintained in accordance with the material requirements (unless failure to comply with a non-material
requirement would result in the cancellation of the insurance) of all insurance carriers which provide insurance with respect to the assets
and properties of the Credit Parties so that such insurance shall remain in full force and effect. The Credit Parties shall bear the full
risk of any loss of any nature whatsoever with respect to the Collateral. At the Credit Parties’ own cost and expense in amounts
and with carriers acceptable to Agent, the Credit Parties shall (a) keep all its insurable properties and properties in which the Credit
Parties have an interest (including leased premises) insured against the hazards of fire, flood, sprinkler leakage, those hazards covered
by extended coverage insurance and such other hazards, and for such amounts, as is customary in the case of companies engaged in businesses
similar to the Credit Parties’ including, without limitation, business interruption insurance; (b) maintain a bond or insurance
policy in such amounts as is customary in the case of companies engaged in businesses similar to the Credit Parties insuring against larceny,
embezzlement or other criminal misappropriation of insured’s officers and employees who may either singly or jointly with others
at any time have access to the assets or funds of any Credit Parties either directly or through authority to draw upon such funds or to
direct generally the disposition of such assets; (c) maintain public and product liability insurance against claims for personal injury,
death or property damage suffered by others; (d) maintain all such worker’s compensation or similar insurance as may be required
under the laws of any state or jurisdiction in which such Credit Parties is engaged in business; (e) furnish Agent with (i) copies of
all policies and evidence of the maintenance of such policies by the renewal thereof at least thirty (30) days before any expiration date,
and (ii) appropriate loss payable endorsements in form and substance satisfactory to Agent, naming Agent as a lender loss payee as its
interests may appear with respect to all insurance coverage referred to in clauses (a) and (c) above, and providing (A) that all proceeds
thereunder shall be payable to Agent or the applicable Credit Party, (B) no such insurance shall be affected by any act or neglect of
the insured or owner of the property described in such policy, and (C) that such policy and loss payable clauses may not be cancelled,
amended or terminated unless at least twenty (20) days’ prior written notice is given to Agent. Without limiting the foregoing,
Borrower shall, and shall cause each of its Subsidiaries to, maintain insurance of such type and in such amounts as may be required by
Applicable Law. In the event of any loss thereunder, the carriers named therein hereby are directed by Agent and the Credit Parties to
make payment for such loss to Agent and not to the Credit Parties and Agent jointly. If any insurance losses are paid by check, draft
or other instrument payable to the Credit Parties and Agent jointly, Agent may endorse the Credit Parties’ name thereon and do such
other things as Agent may deem advisable to reduce the same to cash. If any payment for such loss is made to the Credit Parties and not
Agent, the Credit Parties shall turn over such payment to Agent. Agent is hereby authorized to adjust and compromise claims under insurance
coverage referred to in clauses (a) and (b) above, provided, however, the applicable Credit Party shall have six (6) months
from the date of the loss to adjust and compromise such claims prior to such authorization for any such claim. All loss recoveries received
by Agent upon any such insurance may be applied to the Obligations, in such order as Agent in its reasonable discretion shall determine.
Any surplus shall be paid by Agent to the Credit Parties or applied as may be otherwise required by law. Any deficiency thereon shall
be paid by the Credit Parties to Agent, on demand. Anything hereinabove to the contrary notwithstanding, and subject to the fulfillment
of the conditions set forth below, Agent shall remit to Borrower insurance proceeds received by Agent during any calendar year under insurance
policies procured and maintained by Borrower which insure Credit Parties’ insurable properties to the extent such insurance proceeds
do not exceed $250,000 in the aggregate during such calendar year or $250,000 per occurrence. In the event the amount of insurance proceeds
received by Agent for any occurrence exceeds $250,000, then Agent shall not be obligated to remit the insurance proceeds to Borrower unless
Borrower shall provide Agent with evidence reasonably satisfactory to Agent that the insurance proceeds will be used by the applicable
Credit Party to repair, replace or restore the insured property which was the subject of the insurable loss. In the event the Credit Parties
have previously received (or, after giving effect to any proposed remittance by Agent to Borrower would receive) insurance proceeds which
equal or exceed $25,000 in the aggregate during any calendar year, then Agent may, in its sole discretion, either remit the insurance
proceeds to Borrower upon Borrower providing Agent with evidence reasonably satisfactory to Agent that the insurance proceeds will be
used by the applicable Credit Party to repair, replace or restore the insured property which was the subject of the insurable loss, or
apply the proceeds to the Obligations, as aforesaid. The agreement of Agent to remit insurance proceeds in the manner above provided shall
be subject in each instance to satisfaction of each of the following conditions: (x) No Event of Default or Default shall then have occurred,
and (y) the applicable Credit Party shall use such insurance proceeds to repair, replace or restore the insurable property which was the
subject of the insurable loss and for no other purpose.

 

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4.12. Failure to Pay Insurance.

 

If any Credit Party fails to obtain
insurance as hereinabove provided, or to keep the same in force, Agent, if Agent so elects, may obtain such insurance and pay the premium
therefor on behalf of Borrower, and charge Borrower’s Account therefor as a Revolving Advance of a Domestic Rate Loan and such expenses
so paid shall be part of the Obligations.

 

4.13. Payment
of Taxes.

 

Each Credit Party will pay, when
due, all taxes, assessments and other Charges lawfully levied or assessed upon Borrower or any of the Collateral including, without limitation,
real and personal property taxes, assessments and charges and all franchise, income, employment, social security benefits, withholding,
and sales taxes, except for such taxes, assessments and other Charges contested in good faith provided that adequate reserves are
maintained for such amounts provided, nevertheless, that in no event shall such amount exceed $75,000 at any one time. If any tax by any
Governmental Body is or may be imposed on or as a result of any transaction between any Credit Party and Agent or any Lender which Agent
or any Lender may be required to withhold or pay or if any taxes, assessments, or other Charges remain unpaid after the date fixed for
their payment, or if any claim shall be made which, in Agent’s or any Lender’s opinion, may possibly create a valid Lien on
the Collateral, Agent may without notice to any Credit Party pay the taxes, assessments or other Charges and Borrower hereby indemnifies
and holds Agent and each Lender harmless in respect thereof. The amount of any payment by Agent under this Section 4.13 shall be charged
to Borrower’s Account as a Revolving Advance maintained as a Domestic Rate Loan and added to the Obligations and, until Borrower
shall furnish Agent with an indemnity therefor (or supply Agent with evidence satisfactory to Agent that due provision for the payment
thereof has been made), Agent may hold without interest any balance standing to Borrower’s credit and Agent shall retain its security
interest in and Lien on any and all Collateral held by Agent.

 

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4.14. Payment
of Leasehold Obligations.

 

Borrower shall (and shall cause
each of its Subsidiaries to) at all times pay, when and as due, its rental obligations under all leases under which it is a tenant, and
shall otherwise comply, in all material respects, with all other terms of such leases and keep them in full force and effect and, at Agent’s
request will provide evidence of having done so.

 

4.15. Receivables.

 

(a) Nature
of Receivables.

 

Each of the Receivables shall
be a bona fide and valid account representing a bona fide indebtedness incurred by the Customer therein named, for a fixed sum as set
forth in the invoice relating thereto (provided immaterial or unintentional invoice errors shall not be deemed to be a breach hereof)
with respect to an absolute sale or lease and delivery of goods upon stated terms of the applicable Credit Party, or work, labor or services
theretofore rendered by the applicable Credit Party as of the date each Receivable is created. Same shall be due and owing in accordance
with the applicable Credit Party’s standard terms of sale without dispute, setoff or counterclaim except as may be stated on the
accounts receivable schedules delivered by Borrower to Agent. The Acceptable Unbilled Amounts shall relate to work done, Inventory sold
or services rendered which would constitute Eligible Receivables but for the fact that the amount in question has not yet been billed.

 

(b) Solvency
of Customers.

 

Each Customer, to the best of
each Credit Party’s reasonable knowledge, as of the date each Receivable is created, is and will be solvent and able to pay all
Receivables on which the Customer is obligated in full when due or with respect to such Customers of Borrower who are not solvent Borrower
has set up on its books and in its financial records bad debt reserves adequate to cover such Receivables.

 

(c) Location
of Borrower.

 

Borrower’s chief executive
office is located at the address set forth on Schedule 4.5. Until written notice is given to Agent by Borrower of any other office at
which Borrower keeps its records pertaining to Receivables, all such records shall be kept at such executive office.

 

(d) Collection
of Receivables.

 

Until Borrower’s authority
to do so is terminated by Agent (which notice Agent may give at any time following the occurrence of an Event of Default that has not
been waived or cured or when Agent in its sole discretion deems it to be in Lenders’ best interest to do so), Borrower will, at
Borrower’s sole cost and expense, but on Agent’s behalf and for Agent’s account, collect as Agent’s property and
in trust for Agent all amounts received on Receivables, and shall not commingle such collections with Borrower’s funds or use the
same except to pay Obligations. Borrower shall deposit in the Blocked Account or, upon request by Agent, deliver to Agent, in original
form and on the date of receipt thereof, all checks, drafts, notes, money orders, acceptances, cash and other evidences of Indebtedness.

 

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(e) Notification
of Assignment of Receivables.

 

At any time following the occurrence
of an Event of Default or a Default that is continuing, that has not been waived or cured, Agent shall have the right to send notice of
the assignment of, and Agent’s security interest in and Lien on, the Receivables to any and all Customers or any third party holding
or otherwise concerned with any of the Collateral. Thereafter, Agent shall have the sole right to collect the Receivables, take possession
of the Collateral, or both. Agent’s actual collection expenses, including, but not limited to, stationery and postage, telephone
and facsimile, secretarial and clerical expenses and the salaries of any collection personnel used for collection, may be charged to Borrower’s
Account and added to the Obligations.

 

(f) Power
of Agent to Act on Borrower’s Behalf.

 

Agent shall have the right to
receive, endorse, assign and/or deliver in the name of Agent or Borrower any and all checks, drafts and other instruments for the payment
of money relating to the Receivables, and Borrower hereby waives notice of presentment, protest and non-payment of any instrument so endorsed.
Borrower hereby constitutes Agent or Agent’s designee as Borrower’s attorney with power (i) to endorse Borrower’s name
upon any notes, acceptances, checks, drafts, money orders or other evidences of payment or Collateral; (ii) to sign Borrower’s name
on any invoice or bill of lading relating to any of the Receivables, drafts against Customers, assignments and verifications of Receivables;
(iii) to send verifications of Receivables to any Customer; (iv) to sign Borrower’s name on all documents or instruments deemed
necessary or appropriate by Agent to preserve, protect, or perfect Agent’s interest in the Collateral and to file same; (v) to demand
payment of the Receivables; (vi) to enforce payment of the Receivables by legal proceedings or otherwise; (vii) to exercise all of Borrower’s
rights and remedies with respect to the collection of the Receivables and any other Collateral; (viii) to settle, adjust, compromise,
extend or renew the Receivables; (ix) to settle, adjust or compromise any legal proceedings brought to collect Receivables; (x) to prepare,
file and sign Borrower’s name on a proof of claim in bankruptcy or similar document against any Customer; (xi) to prepare, file
and sign Borrower’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in connection with the Receivables;
and (xii) to do all other acts and things necessary to carry out this Agreement. All acts of said attorney or designee are hereby ratified
and approved, and said attorney or designee shall not be liable for any acts of omission or commission nor for any error of judgment or
mistake of fact or of law, unless done maliciously or with gross (not mere) negligence (as determined by a court of competent jurisdiction
in a final non-appealable judgment); this power being coupled with an interest is irrevocable while any of the Obligations remain unpaid.
Agent shall have the right at any time following the occurrence of an Event of Default or Default, to change the address for delivery
of mail addressed to Borrower to such address as Agent may designate and to receive, open and dispose of all mail addressed to Borrower.

 

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(g) No
Liability.

 

Neither Agent nor any Lender shall,
under any circumstances or in any event whatsoever, have any liability for any error or omission or delay of any kind occurring in the
settlement, collection or payment of any of the Receivables or any instrument received in payment thereof, or for any damage resulting
therefrom. Following the occurrence of an Event of Default or Default Agent may, without notice or consent from Borrower, sue upon or
otherwise collect, extend the time of payment of, compromise or settle for cash, credit or upon any terms any of the Receivables or any
other securities, instruments or insurance applicable thereto and/or release any obligor thereof. Agent is authorized and empowered to
accept following the occurrence of an Event of Default or Default that is continuing, the return of the goods represented by any of the
Receivables, without notice to or consent by Borrower, all without discharging or in any way affecting Borrower’s liability hereunder.

 

(h) Establishment
of a Cash Management System.

 

Except as otherwise provided in
this Agreement, all proceeds of Collateral shall be deposited by each Credit Party into either (i) a lockbox account, dominion account
or such other “blocked account” (“Blocked Accounts”) established at a bank or banks (each such bank, a
“Blocked Account Bank”) pursuant to an arrangement with such Blocked Account Bank as may be selected by Borrower and
be acceptable to Agent or (ii) depository accounts (“Depository Accounts”) established at Agent for the deposit of
such proceeds. Each Credit Party, Agent and each Blocked Account Bank shall enter into a deposit account control agreement in form and
substance satisfactory to Agent directing such Blocked Account Bank to transfer such funds so deposited to Agent, either to any account
maintained by Agent at said Blocked Account Bank or by wire transfer to appropriate account(s) of Agent. All funds deposited in such Blocked
Accounts shall immediately become the property of Agent and each Credit Party shall obtain the agreement by such Blocked Account Bank
to waive any offset rights against the funds so deposited. Neither Agent nor any Lender assumes any responsibility for such blocked account
arrangement, including any claim of accord and satisfaction or release with respect to deposits accepted by any Blocked Account Bank thereunder.
All deposit accounts and investment accounts of Borrower and its Subsidiaries are set forth on Schedule 4.15(h). Notwithstanding the foregoing,
a deposit account control agreement is not required for a Canadian account of any Credit Party provided that any amount in excess of $500,000
in any such account must be used to pay down Revolving Advances within twenty (20) days.

 

(i) Adjustments.

 

No Credit Party will permit, without
Agent’s consent, compromise or adjust any material amount of the Receivables (or extend the time for payment thereof) or accept
any material returns of merchandise or grant any additional discounts, allowances or credits thereon except for those compromises, adjustments,
returns, discounts, credits and allowances as have been heretofore customary in the business of the Credit Parties.

 

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4.16. Inventory.

 

To the extent Inventory held for
sale or lease has been produced by a Credit Party, it has been and will be produced by such Credit Party in accordance with the Federal
Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder.

 

4.17. Maintenance
of Equipment.

 

The Equipment shall be maintained
in good operating condition and repair (reasonable wear and tear excepted) and all necessary replacements of and repairs thereto shall
be made so that the value and operating efficiency of the Equipment shall be maintained and preserved. Borrower will not, and will not
permit any Credit Party to, use or operate the Equipment in violation of any law, statute, ordinance, code, rule or regulation. Borrower
and the other Credit Parties shall have the right to sell Equipment to the extent set forth in Section 4.3 hereof.

 

4.18. Exculpation
of Liability.

 

Nothing herein contained shall
be construed to constitute Agent or any Lender as agent for any Credit Party for any purpose whatsoever, nor shall Agent or any Lender
be responsible or liable for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may
be located and regardless of the cause thereof. Neither Agent nor any Lender, whether by anything herein or in any assignment or otherwise,
assume any Credit Party’s obligations under any contract or agreement assigned to Agent or such Lender, and neither Agent nor any
Lender shall be responsible in any way for the performance by any Credit Party of any of the terms and conditions thereof.

 

4.19. Environmental
Matters.

 

(a) Except
as disclosed on Schedule 5.7, Borrower shall, and shall cause each other Credit Party to, ensure that the Real Property owned or leased
by Borrower remains in compliance with all Environmental Laws and they shall not place or permit to be placed any Hazardous Substances
on any Real Property except as permitted by Applicable Law or appropriate governmental authorities or other than where such failure to
comply would have a Material Adverse Effect.

 

(b) Borrower
shall, and shall cause each of the other Credit Parties to, establish and maintain a system to assure and monitor continued compliance
with all applicable Environmental Laws which system shall include periodic reviews of such compliance, the failure of which would have
a Material Adverse Effect.

 

(c) Borrower
shall, and shall cause each of the other Credit Parties to, (i) employ in connection with the use of the Real Property appropriate technology
necessary to maintain compliance with any applicable Environmental Laws and (ii) dispose of any and all Hazardous Waste generated at the
Real Property only at facilities and with carriers that maintain valid permits under RCRA and any other applicable Environmental Laws
the failure of which would have a Material Adverse Effect. Borrower shall use its best efforts to obtain certificates of disposal, such
as hazardous waste manifest receipts, from all treatment, transport, storage or disposal facilities or operators employed by any Credit
Party in connection with the transport or disposal of any Hazardous Waste generated at the Real Property.

 

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(d) In
the event any Credit Party obtains, gives or receives notice of any Release or threat of Release of a reportable quantity of any Hazardous
Substances at the Real Property (any such event being hereinafter referred to as a “Hazardous Discharge”) or receives
any notice of violation, request for information or notification that it is potentially responsible for investigation or cleanup of environmental
conditions at the Real Property, demand letter or complaint, order, citation, or other written notice with regard to any Hazardous Discharge
or violation of Environmental Laws affecting the Real Property or any Credit Party’s interest therein (any of the foregoing is referred
to herein as an “Environmental Complaint”) from any Person other than that would have Material Adverse Effect, including
any state agency responsible in whole or in part for environmental matters in the state in which the Real Property is located or the United
States Environmental Protection Agency (any such person or entity hereinafter the “Authority”), then Borrower shall,
within five (5) Business Days, give written notice of same to Agent detailing facts and circumstances of which Borrower or any other Credit
Party is aware giving rise to the Hazardous Discharge or Environmental Complaint. Such information is to be provided to allow Agent to
protect its security interest in and Lien on the Real Property and the Collateral and is not intended to create nor shall it create any
obligation upon Agent or any Lender with respect thereto.

 

(e) Borrower
shall promptly forward to Agent copies of any request for information, notification of potential liability, demand letter relating to
potential responsibility that could have a Material Adverse Effect with respect to the investigation or cleanup of Hazardous Substances
at any other site owned, operated or used by any Credit Party to dispose of Hazardous Substances and shall continue to forward copies
of correspondence between such Credit Party and the Authority regarding such claims to Agent until the claim is settled. Borrower shall
promptly forward to Agent copies of all documents and reports concerning a Hazardous Discharge at the Real Property that any Credit Party
is required to file under any Environmental Laws. Such information is to be provided solely to allow Agent to protect Agent’s security
interest in and Lien on the Real Property and the Collateral.

 

(f) Borrower
shall respond promptly to any Hazardous Discharge or Environmental Complaint that could have a Material Adverse Effect and take all necessary
action in order to safeguard the health of any Person and to avoid subjecting the Collateral or Real Property to any Lien. If any Credit
Party shall fail to respond promptly to any Hazardous Discharge or Environmental Complaint or any Credit Party shall fail to comply with
any of the requirements of any Environmental Laws that could have a Material Adverse Effect, Agent on behalf of Lenders may, but without
the obligation to do so, for the sole purpose of protecting Agent’s interest in the Collateral: (A) give such notices or (B) enter
onto the Real Property (or authorize third parties to enter onto the Real Property) and take such actions as Agent (or such third parties
as directed by Agent) deem reasonably necessary or advisable, to clean up, remove, mitigate or otherwise deal with any such Hazardous
Discharge or Environmental Complaint. All reasonable costs and expenses incurred by Agent and Lenders (or such third parties) in the exercise
of any such rights, including any sums paid in connection with any judicial or administrative investigation or proceedings, fines and
penalties, together with interest thereon from the date expended at the Default Rate for Domestic Rate Loans constituting Revolving Advances
shall be paid upon demand by Borrower, and until paid shall be added to and become a part of the Obligations secured by the Liens created
by the terms of this Agreement or any other agreement between Agent, any Lender and Borrower.

 

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(g) Promptly
upon the written request of Agent from time to time, Borrower shall provide Agent, at Borrower’s expense, with an environmental
site assessment or environmental audit report prepared by an environmental engineering firm acceptable in the reasonable opinion of Agent
upon the occurrence of a Material Adverse Effect, to assess with a reasonable degree of certainty the existence of a Hazardous Discharge
and the potential costs in connection with abatement, cleanup and removal of any Hazardous Substances found on, under, at or within the
Real Property. Any report or investigation of such Hazardous Discharge proposed and acceptable to an appropriate Authority that is charged
to oversee the clean-up of such Hazardous Discharge shall be acceptable to Agent. If such estimates, individually or in the aggregate,
exceed $100,000 (other than estimates previously disclosed to Agent), Agent shall have the right to require Borrower or any other Credit
Party, as applicable, to post a bond, letter of credit or other security reasonably satisfactory to Agent to secure payment of these costs
and expenses.

 

(h) Borrower
shall defend and indemnify Agent and Lenders and hold Agent, Lenders and their respective employees, agents, directors and officers harmless
from and against all loss, liability, damage and expense, claims, costs, fines and penalties, including attorney’s fees, suffered
or incurred by Agent or Lenders under or on account of any Environmental Laws, including, without limitation, the assertion of any Lien
thereunder, with respect to any Hazardous Discharge, the presence of any Hazardous Substances affecting the Real Property, whether or
not the same originates or emerges from the Real Property or any contiguous real estate, including any loss of value of the Real Property
as a result of the foregoing except to the extent such loss, liability, damage and expense is attributable to any Hazardous Discharge
resulting from actions on the part of Agent or any Lender. Borrower’s obligations under this Section 4.19 shall arise upon the discovery
of the presence of any Hazardous Substances at the Real Property, whether or not any federal, state, or local environmental agency has
taken or threatened any action in connection with the presence of any Hazardous Substances. Borrower’s obligation and the indemnifications
hereunder shall survive the termination of this Agreement.

 

(i) For
purposes of Section 4.19 and 5.7, all references to Real Property shall be deemed to include all of Borrower’s right, title and
interest in and to its owned and leased premises.

 

4.20. Financing
Statements.

 

Except as respects the financing
statements filed by Agent and the financing statements relating to Permitted Encumbrances or described on Schedule 1.2, no financing statement
covering any of the Collateral or any proceeds thereof is on file in any public office.

 

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 4.21. Voting Rights in Respect of Subsidiary Stock Pledged to Agent.

 

(a) So
long as no Event of Default shall have occurred and be continuing, to the extent permitted by law, Borrower may exercise any and all voting
and other consensual rights pertaining to the Subsidiary Stock of Borrower pledged to Agent or any part thereof for any purpose not inconsistent
with the terms of this Agreement; and

 

(b) Upon
the occurrence and during the continuance of an Event of Default and following written notice by Agent, all rights of Borrower to exercise
the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to paragraph (a) of this Section shall
cease and all such rights shall thereupon become vested in Agent which shall then have the sole right to exercise such voting and other
consensual rights.

 

4.22. Dividend
and Distribution Rights in Respect of Subsidiary Shares Pledged to Agent.

 

(a) So
long as no Event of Default shall have occurred and be continuing, Borrower may receive and retain any and all dividends (other than stock
or ownership interest dividends and other dividends constituting Subsidiary Stock pledged to Agent which are addressed herein), distributions
or interest paid in respect of the Subsidiary Stock pledged to Agent to the extent they are allowed under this Agreement.

 

(b) Upon
the occurrence and during the continuation of an Event of Default:

 

(A) all
rights of Borrower to receive the dividends, distributions and interest payments which it would otherwise be authorized to receive and
retain pursuant to paragraph (a) of this Section shall cease and all such rights shall thereupon be vested in Agent which shall then have
the sole right to receive and hold as Subsidiary Stock such dividends, distributions and interest payments; and

 

(B) all
dividends, distributions and interest payments which are received by Borrower contrary to the provisions of clause (A) of this paragraph
(b) shall be received in trust for the benefit of Agent, shall be segregated from other property or funds of Borrower, and shall be forthwith
paid over to Agent as Subsidiary Stock in the exact form received, to be held by Agent as Subsidiary Stock and as further collateral security
for the Obligations.

 

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ARTICLE V

 

REPRESENTATIONS
AND WARRANTIES

 

Borrower represents and warrants as follows:

 

5.1. Authority.

 

Each Credit Party has full power,
authority and legal right to enter into this Agreement and the Other Documents to which it is a party and to perform all its respective
Obligations hereunder and thereunder, in each case to the extent that such Person is a party thereto. This Agreement and the Other Documents
have been duly executed and delivered by each Credit Party, and this Agreement and the Other Documents constitute the legal, valid and
binding obligation of such Credit Party enforceable in accordance with their terms, except as such enforceability may be limited by any
applicable bankruptcy, insolvency, moratorium, fraudulent transfer or conveyance or similar laws affecting creditors’ rights generally
and limits imposed by equitable principles. The execution, delivery and performance of this Agreement and of the Other Documents by each
Credit Party (a) are within such Credit Party’s corporate powers, have been duly authorized by all necessary corporate action, are
not in contravention of law or the terms of such Credit Party’s by-laws, certificate of incorporation or other applicable documents
relating to each Credit Party’s formation or to the conduct of such Credit Party’s business or of any material agreement or
undertaking to which such Credit Party is a party or by which such Credit Party is bound, (b) will not conflict with or violate any law
or regulation, or any judgment, order or decree of any Governmental Body, (c) will not require the Consent of any Governmental Body or
any other Person, except those Consents set forth on Schedule 5.1 hereto, all of which will have been duly obtained, made or compiled
prior to the Closing Date and which are in full force and effect and (d) will not conflict with, nor result in any breach in any of the
provisions of or constitute a default under or result in the creation of any Lien except Permitted Encumbrances upon any asset of any
Credit Party under the provisions of any agreement, charter document, instrument, by-law, or other instrument to which such Credit Party
is a party or by which it or its property is a party or by which it may be bound.

 

5.2. Formation
and Qualification.

 

(a) Each
Credit Party is duly incorporated and in good standing under the laws of the state indicated on Schedule 5.2(a) and is qualified to do
business and is in good standing in the states indicated on Schedule 5.2(a) which constitute all states in which qualification and good
standing are necessary for such Credit Party to conduct its business and own its property and where the failure to so qualify could reasonably
be expected to have a Material Adverse Effect. Each Credit Party has delivered to Agent true and complete copies of its certificate of
incorporation and by-laws and will promptly notify Agent of any amendment or changes thereto.

 

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(b) As
of the Closing Date, the only Subsidiaries of Borrower are listed on Schedule 5.2(b). As of the Closing Date, the Persons identified on
Schedule 5.2(b) are the record and beneficial owners of all of the shares of Capital Stock of each of the Subsidiaries of Borrower listed
on Schedule 5.2(b) as being owned by thereby, there are no proxies, irrevocable or otherwise, with respect to such shares other than as
set forth on Schedule 5.2(b), and, except as set forth on Schedule 5.2(b) no equity securities of any of such Persons are or may become
required to be issued by reason of any options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into or exchangeable for, shares of any Capital Stock of any such Person, and there are
no contracts, commitments, understandings or arrangements by which any such Person is or may become bound to issue additional shares of
its Capital Stock or securities convertible into or exchangeable for such shares. All of the shares owned by Borrower are owned free and
clear of any Liens other than Permitted Encumbrances.

 

5.3. Survival
of Representations and Warranties.

 

All representations and warranties
of Borrower contained in this Agreement and the Other Documents shall be true at the time of Borrower’s execution of this Agreement
and the Other Documents, and shall survive the execution, delivery and acceptance thereof by the parties thereto and the closing of the
transactions described therein or related thereto.

 

5.4. Tax
Returns.

 

Each Credit Party’s federal
tax identification number is set forth on Schedule 5.4. Each Credit Party has filed all federal, state and local tax returns and other
reports it is required by law to file and has paid all taxes, assessments, fees and other governmental charges that are due and payable
other than those contested in good faith for which reserves have been established except as disclosed on Schedule 5.4. The provision for
taxes on the books of the Credit Parties is adequate for all years not closed by applicable statutes, and for its current fiscal year,
and Borrower has no knowledge of any deficiency or additional assessment in connection therewith not provided for on its books.

 

5.5. Financial
Statements.

 

The consolidated and consolidating
balance sheets of Borrower, its Subsidiaries and such other Persons described therein (including the accounts of all Subsidiaries for
the respective periods during which a subsidiary relationship existed), as of December 31, 2019, and the related statements of income,
changes in stockholder’s equity, and changes in cash flow for the period ended on such date, all accompanied by reports thereon
containing opinions without qualification by independent certified accountants, copies of which have been delivered to Agent, have been
prepared in accordance with GAAP, consistently applied (except for changes in application to which such accountants concur) and present
fairly the financial position of Borrower and its Subsidiaries at such date and the results of their operations for such period. Since
December 31, 2019, other than receipt by Borrower of a PPP loan, there has been no material change in the condition, financial or otherwise,
of Borrower or its Subsidiaries as shown on the consolidated balance sheet as of such date and no change in the aggregate value of machinery,
equipment and Real Property owned by Borrower and its Subsidiaries, except changes in the Ordinary Course of Business, none of which individually
or in the aggregate has been materially adverse.

 

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5.6. Entity Name and Locations.

 

Borrower has not been known by
any other corporate name in the past five years and does not sell Inventory under any other name except as set forth on Schedule 5.6,
nor has Borrower been the surviving corporation of a merger or consolidation or acquired all or substantially all of the assets of any
Person during the preceding five (5) years.

 

5.7. O.S.H.A.
and Environmental Compliance.

 

(a) Except
as disclosed on Schedule 5.7, each Credit Party has duly complied with, and its operating facilities, business, assets, property, leaseholds,
Real Property and Equipment are in compliance in all material respects with, the provisions of the Federal Occupational Safety and Health
Act, the Environmental Protection Act, RCRA and all other Environmental Laws, the failure of which would have a Material Adverse Effect
and all judgments, decrees and other enforcement orders and directives relating thereto; there have been no outstanding citations, notices
or orders of non-compliance issued to any Credit Party or relating to its business, assets, property, leaseholds or Equipment under any
such laws, rules or regulations that could have a Material Adverse Effect; provided however, that the representatives and warranties contained
in this Section 5.7(a) as to the Credit Parties to be acquired in the Transactions are made only to Borrower’s knowledge.

 

(b) Except
as disclosed on Schedule 5.7, each Credit Party has been issued for the conduct of its business and activities all required federal, state
and local licenses, certificates or permits relating to all applicable Environmental Laws, each of which is in effect, the failure of
which could have a Material Adverse Effect.

 

(c) Except
as disclosed on Schedule 5.7, there are no facts which suggest, and (i) there are no visible signs of releases, spills, discharges, leaks
or disposal (collectively referred to as “Releases”) of Hazardous Substances at, upon, under or within any Real Property
or any premises leased by Borrower that could have a Material Adverse Effect; (ii) there are no underground storage tanks or polychlorinated
biphenyls on the Real Property or any premises leased by Borrower; (iii) neither the Real Property nor any premises leased by Borrower
has ever been used as a treatment, storage or disposal facility of Hazardous Waste; and (iv) no Hazardous Substances are present on the
Real Property or any premises leased by Borrower that would have a Material Adverse Effect, excepting such quantities as are handled in
accordance with all applicable manufacturer’s instructions and governmental regulations and in proper storage containers and as
are necessary for the operation of the commercial business of Borrower or of its tenants.

 

5.8. Solvency;
No Litigation, Violation, Indebtedness or Default.

 

(a) Borrower,
on a consolidated basis, is now and, after giving effect to the Transactions will be, solvent, able to pay its debts as they mature, has
and, after giving effect to the Transactions, will have, capital sufficient to carry on its business and all businesses in which it is
about to engage, and (i) as of the Closing Date, the fair present saleable value of its assets, on a consolidated basis, calculated on
a going concern basis, is in excess of the amount of Borrower’s and its Subsidiaries’ liabilities and (ii) subsequent to the
Closing Date, the fair saleable value of its assets (calculated on a going concern basis) will be in excess of the amount of its liabilities.

 

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(b) Except
as disclosed on Schedule 5.8(b), no Credit Party has any (i) pending or threatened litigation, arbitration, actions or proceedings that
could have a Material Adverse Effect, and (ii) liabilities or indebtedness for borrowed money other than the Obligations.

 

(c) Except
as disclosed on Schedule 5.8(c), no Credit Party is in violation of any applicable statute, law, rule, regulation or ordinance in any
respect which would have a Material Adverse Effect, nor is any Credit Party in violation of any order of any court, Governmental Body
or arbitration board or tribunal that could have a Material Adverse Effect.

 

(d) Neither
Borrower nor any member of the Controlled Group maintains or contributes to any Plan other than as of the Closing Date, those listed on
Schedule 5.8(d) hereto and thereafter, as permitted under this Agreement. Except as set forth on Schedule 5.8(d), to Borrower’s
knowledge, (i) no Plan has incurred any “accumulated funding deficiency,” as defined in Section 302(a)(2) of ERISA and Section
412(a) of the Code, whether or not waived, and Borrower and each member of the Controlled Group has met all applicable minimum funding
requirements under Section 302 of ERISA in respect of each Plan; (ii) each Plan which is intended to be a qualified plan under Section
401(a) of the Code as currently in effect has been determined by the Internal Revenue Service to be qualified under Section 401(a) of
the Code and the trust related thereto is exempt from federal income tax under Section 501(a) of the Code; (iii) neither Borrower nor
any member of the Controlled Group has incurred any liability to the PBGC other than for the payment of premiums, and there are no premium
payments which have become due which are unpaid; (iv) no Plan has been terminated by the plan administrator thereof nor by the PBGC, and
there is no occurrence which would cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Plan; (v) at this
time, the current value of the assets of each Plan exceeds the present value of the accrued benefits and other liabilities of such Plan
and neither Borrower nor any member of the Controlled Group knows of any facts or circumstances which would materially change the value
of such assets and accrued benefits and other liabilities; (vi) neither Borrower nor any member of the Controlled Group has breached any
of the responsibilities, obligations or duties imposed on it by ERISA with respect to any Plan; (vii) neither Borrower nor any member
of a Controlled Group has incurred any liability for any excise tax arising under Section 4972 or 4980B of the Code, and no fact exists
which could give rise to any such liability; (viii) neither Borrower nor any member of the Controlled Group nor any fiduciary of, nor
any trustee to, any Plan, has engaged in a “prohibited transaction” described in Section 406 of the ERISA or Section 4975
of the Code nor taken any action which would constitute or result in a Termination Event with respect to any such Plan which is subject
to ERISA; (ix) Borrower and each member of the Controlled Group has made all contributions due and payable with respect to each Plan;
(x) there exists no event described in Section 4043(b) of ERISA, for which the thirty (30) day notice period has not been waived; (xi)
neither Borrower nor any member of the Controlled Group has any fiduciary responsibility for investments with respect to any plan existing
for the benefit of persons other than employees or former employees of Borrower and any member of the Controlled Group; (xii) neither
Borrower nor any member of the Controlled Group maintains or contributes to any Plan which provides health, accident or life insurance
benefits to former employees, their spouses or dependents, other than in accordance with Section 4980B of the Code; (xiii) neither Borrower
nor any member of the Controlled Group has withdrawn, completely or partially, from any Multiemployer Plan so as to incur liability under
the Multiemployer Pension Plan Amendments Act of 1980; and (xiv) no Plan fiduciary (as defined in Section 3(21) of ERISA) has any material
liability for breach of fiduciary duty or for any failure in connection with the administration or investment of the assets of a Plan.

 

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5.9. Patents,
Trademarks, Copyrights and Licenses.

 

All patents, patent applications,
trademarks, trademark applications, service marks, service mark applications, copyrights, copyright applications, design rights, tradenames,
assumed names, trade secrets and licenses owned or utilized by each Credit Party are set forth on Schedule 5.9, are valid and have been
duly registered or filed with all appropriate Governmental Bodies and constitute all of the intellectual property rights which are necessary
for the operation of its business; there is no objection to or pending challenge to the validity of any such patent, trademark, copyright,
design rights, tradename, trade secret or license and Borrower is not aware of any grounds for any challenge, except as set forth in Schedule
5.9 hereto. Each patent, patent application, patent license, trademark, trademark application, trademark license, service mark, service
mark application, service mark license, design rights, copyright, copyright application and copyright license owned or held by each Credit
Party and all trade secrets used by each Credit Party consist of original material or property developed by such Credit Party or was lawfully
acquired by such Credit Party from the proper and lawful owner thereof. Each of such items has been maintained so as to preserve the value
thereof from the date of creation or acquisition thereof. With respect to all software used by any Credit Party, such Credit Party is
in possession of all source and object codes related to each piece of software or is the beneficiary of a source code escrow agreement,
each such source code escrow agreement being listed on Schedule 5.9 hereto.

 

5.10. Licenses
and Permits.

 

Except as set forth on Schedule
5.10, each Credit Party (a) is in compliance with and (b) has procured and is now in possession of, all material licenses or permits required
by any applicable federal, state or local law, rule or regulation for the operation of its business in each jurisdiction wherein it is
now conducting or proposes to conduct business and where the failure to procure such licenses or permits could have a Material Adverse
Effect.

 

5.11. Default
of Indebtedness.

 

No Credit Party is in default
in the payment of the principal of or interest on any Indebtedness for borrowed money (exclusive of trade debt) or under any instrument
or agreement under or subject to which any Indebtedness for borrowed money (exclusive of trade debt) has been issued and no event has
occurred under the provisions of any such instrument or agreement which with or without the lapse of time or the giving of notice, or
both, constitutes or would constitute an event of default thereunder, the effect of which would have a Material Adverse Effect.

 

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5.12. No
Default.

 

No Credit Party is in default
in the payment or performance of any of its contractual obligations and no Default has occurred that would have a Material Adverse Effect
other than as set forth on Schedule 5.12.

 

5.13. No
Burdensome Restrictions.

 

No Credit Party is party to any
contract or agreement the performance of which would have a Material Adverse Effect, other than as set forth on Schedule 5.28. Borrower
has heretofore delivered to Agent true and complete copies of all material contracts to which it is a party or to which it or any of its
properties is subject. Borrower has not agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise)
any of its property, whether now owned or hereafter acquired, to be subject to a Lien which is not a Permitted Encumbrance.

 

5.14. No
Labor Disputes.

 

No Credit Party is involved in
any labor dispute; there are no strikes or walkouts or union organization of such Credit Party’s employees threatened or in existence
and no labor contract is scheduled to expire during the Term other than as set forth on Schedule 5.14 hereto.

 

5.15. Margin
Regulations.

 

No Credit Party is engaged, nor
will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of “purchasing”
or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U
of the Board of Governors of the Federal Reserve System as now and from time to time hereafter in effect. No part of the proceeds of any
Advance will be used for “purchasing” or “carrying” “margin stock” as defined in Regulation U of such
Board of Governors.

 

5.16. Investment
Company Act.

 

No Credit Party is an “investment
company” registered or required to be registered under the Investment Company Act of 1940, as amended, nor is it controlled by such
a company.

 

5.17. Disclosure.

 

No representation or warranty
made by any Credit Party in this Agreement or in any financial statement, report, certificate or any other document furnished in connection
herewith contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements herein
or therein not misleading that could have a Material Adverse Effect. There is no fact known to any Credit Party or which reasonably should
be known to any Credit Party that any Credit Party has not disclosed to Agent in writing with respect to the Transactions which could
reasonably be expected to have a Material Adverse Effect.

 

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5.18. Intentionally
Deleted.

 

5.19. Swaps.

 

No Credit Party is a party to,
nor will it be a party to, any swap agreement whereby such Credit Party has agreed or will agree to swap interest rates or currencies
unless same provides that damages upon termination following an event of default thereunder are payable on an unlimited “two-way
basis” without regard to fault on the part of either party.

 

5.20. Conflicting
Agreements.

 

No provision of any mortgage,
indenture, contract, agreement, judgment, decree or order binding on any Credit Party or affecting the Collateral conflicts with, or requires
any Consent which has not already been obtained to, or would in any way prevent the execution, delivery or performance of, the terms of
this Agreement or the Other Documents.

 

5.21. Application
of Certain Laws and Regulations.

 

No Credit Party is or is required
to be registered as an “investment company” under the Investment Company Act of 1940.

 

5.22. Business
and Property of Borrower.

 

Upon and after the Closing Date,
no Credit Party proposes to engage in any business other than providing treatment, storage, and disposal facility services and on-site
remediation, upgrades and nuclear services in compliance with applicable Environmental Laws; consulting services with respect to toxic,
radioactive and Hazardous Waste; nuclear energy design, build, refurbishment and operational support services; instrumentation and measurement
technologies; and activities that are necessary to conduct the foregoing. On the Closing Date, each Credit Party will own or have the
right to use all the Property and possess all of the rights and Consents necessary for the conduct of its business.

 

5.23. Section
20 Subsidiaries.

 

No Credit Party intends to use
and shall not use any portion of the proceeds of the Advances, directly or indirectly, to purchase during the underwriting period, or
for 30 days thereafter, Ineligible Securities being underwritten by a Section 20 Subsidiary.

 

5.24. Anti-Terrorism
Laws.

 

(a) Borrower
represents and warrants that (i) no Covered Entity is a Sanctioned Person and (ii) no Covered Entity, either in its own right or through
any third party, (A) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in
violation of any Anti-Terrorism Law; (B) does business in or with, or derives any of its income from investments in or transactions with,
any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; or (C) engages in any dealings or transactions prohibited
by any Anti-Terrorism Law.

 

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(b) Borrower
covenants and agrees that (i) no Covered Entity will become a Sanctioned Person, (ii) no Covered Entity, either in its own right or through
any third party, will (A) have any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person
in violation of any Anti-Terrorism Law; (B) do business in or with, or derive any of its income from investments in or transactions with,
any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; (C) engaged in any dealings or transactions prohibited
by any Anti-Terrorism Law or (D) use the Advances to fund any operations in, finance any investments or activities in, or, make any payments
to, a Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law, (iii) the funds used to repay the Obligations will
not be derived from any unlawful activity, (iv) each Covered Entity shall comply with all Anti-Terrorism Laws and (v) Borrower shall promptly
notify Agent in writing upon the occurrence of a Reportable Compliance Event.

 

5.25. Anti-Corruption
Laws. Each Covered Entity has (a) conducted its business in compliance with all Anti-Corruption Laws and (b) has instituted and maintains
policies and procedures designed to ensure compliance with such Laws.

 

5.26. Commercial
Tort Claims.

 

Borrower does not have any known
commercial tort claims as of the Closing Date that would have a Material Adverse Effect.

 

5.27. Partnership
and Limited Liability Company Interests.

 

Except as previously disclosed
in writing to Agent, none of the Subsidiary Stock consisting of partnership or limited liability company interests (i) is dealt in or
traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article
8 of the Uniform Commercial Code, (iii) is an investment company security, (iv) is held in a securities account or (v) constitutes a “security”
or a “financial asset” as such terms are defined in Article 8 of the Uniform Commercial Code.

 

5.28. Material
Contracts.

 

Set forth on Schedule 5.28, as
updated from time to time, is a complete and accurate list of all Material Contracts of Borrower and its Subsidiaries. All of the Material
Contracts are in full force and effect, and no material defaults currently exist thereunder which would have a Material Adverse Effect
other than as set forth on Schedule 5.28.

 

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5.29. Future
Subsidiaries.

 

Promptly upon any Person becoming
a direct or indirect Subsidiary of Borrower (other than with respect to joint ventures and limited liability companies not wholly owned
by Borrower), Borrower shall promptly provide written notice thereof to Agent, setting forth with specificity a description of the proposed
locations, business and property of such Subsidiary and of all material real and personal property owned and leased by it. Borrower shall
also promptly cause such Subsidiary holding any capital stock of such Subsidiary to execute and deliver to Agent a Secured Subsidiaries
Guaranty, together with such financing statements and other documents as shall in the reasonable opinion of the Agent be necessary or
advisable in order that Agent receive valid and perfect first-priority Liens in all of the ownership interests and (subject to Permitted
Encumbrances) substantially all of the property (including, without limitation, leasehold interests) of such Subsidiary, together with
certificates representing all of the ownership interests of such Subsidiary, accompanied by appropriate instruments of transfer duly executed
in blank. Borrower or such Subsidiary shall also deliver one or more opinions of counsel to the Borrower or such Subsidiary (including
opinions of local counsel) covering such legal matters with respect to such agreements and other instruments and documents as the Agent
may reasonably request. All of such agreements, instruments, opinions and documents shall be reasonably satisfactory in form and substance
in all respects to counsel to the Agent.

 

5.30. Certificate
of Beneficial Ownership.

 

The Certificate of Beneficial
Ownership dated April 5, 2020 executed and delivered to Agent for Borrower, as updated from time to time in accordance with this Agreement,
is accurate, complete and correct as of the date hereof and as of the date of any such update is delivered. Borrower acknowledges and
agrees that the Certificate of Beneficial Ownership is one of the Other Documents

 

ARTICLE VI

 

AFFIRMATIVE COVENANTS

 

Borrower shall, and shall cause
each of its Subsidiaries to, until payment in full of the Obligations and termination of this Agreement:

 

6.1. Payment
of Fees.

 

Pay to Agent on demand all usual
and customary fees and expenses which Agent incurs in connection with (a) the forwarding of Advance proceeds and (b) the establishment
and maintenance of any Blocked Accounts or Depository Accounts as provided for in Section 4.15(h). Agent may, without making demand, charge
Borrower’s Account for all such fees and expenses.

 

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6.2. Conduct
of Business and Maintenance of Existence and Assets.

 

(a) Conduct
continuously and operate actively its business according to good business practices and maintain all of its properties useful or necessary
in its business in good working order and condition (reasonable wear and tear excepted and except as may be disposed of in accordance
with the terms of this Agreement), including, without limitation, all licenses, patents, copyrights, design rights, tradenames, trade
secrets and trademarks and take all actions necessary to enforce and protect the validity of any intellectual property right or other
right included in the Collateral; (b) keep in full force and effect its existence and comply in all material respects with the laws and
regulations governing the conduct of its business where the failure to do so could have a Material Adverse Effect; and (c) make all such
reports and pay all such franchise and other taxes and license fees and do all such other acts and things as may be lawfully required
to maintain its rights, licenses, leases, powers and franchises under the laws of the United States or any political subdivision thereof
where the failure to do so could have a Material Adverse Effect.

 

6.3. Violations.

 

Promptly notify Agent in writing
of any violation of any law, statute, regulation or ordinance of any Governmental Body, or of any agency thereof, applicable to any Credit
Party which would reasonably be expected to have a Material Adverse Effect.

 

6.4. Government
Receivables.

 

Take all steps necessary to protect
Agent’s interest in the Collateral under the Federal Assignment of Claims Act, the Uniform Commercial Code and all other applicable
state or local statutes or ordinances and deliver to Agent appropriately endorsed, any instrument or chattel paper connected with any
Receivable arising out of contracts between any Credit Party and the United States, any state or any department, agency or instrumentality
of any of them.

 

6.5. Financial
Covenants.

 

(a) Tangible
Adjusted Net Worth.

 

Maintain at all times a Tangible
Adjusted Net Worth in an amount not less than $27,000,000.

 

(b) Fixed
Charge Coverage Ratio.

 

Cause to be maintained a Fixed
Charge Coverage Ratio of not less than 1.15 to 1.0 for (i) the two quarter period ending as of December 31, 2022; (ii) the three quarter
period ending as of March 31, 2023; (iii) the four quarter period ending as June 30, 2023 and for each fiscal quarter thereafter.

 

(c) Minimum
Undrawn Availability.

 

Maintain Undrawn Availability
of at least $3,000,000 at all times until receipt by Agent of Borrower’s December 31, 2022 Compliance Certificate.

 

6.6. Execution
of Supplemental Instruments.

 

Execute and deliver to Agent from
time to time, upon demand, such supplemental agreements, statements, assignments and transfers, or instructions or documents relating
to the Collateral, and such other instruments as Agent may reasonably request, in order that the full intent of this Agreement may be
carried into effect.

 

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6.7. Payment
of Indebtedness.

 

Pay, discharge or otherwise satisfy
at or before maturity (subject, where applicable, to specified grace periods and, in the case of the trade payables, to normal payment
practices) all its obligations and liabilities of whatever nature, except when the failure to do so would have a Material Adverse Effect
or when the amount or validity thereof is currently being Properly Contested.

 

6.8. Standards
of Financial Statements.

 

Cause all financial statements
referred to in Sections 9.7, 9.8, 9.9, 9.10, 9.11, 9.12 and 9.13 as to which GAAP is applicable to fairly represent in all material respects
(subject, in the case of interim financial statements, to normal year-end audit adjustments) and to be prepared in reasonable detail and
in accordance with GAAP applied consistently throughout the periods reflected therein (except as concurred in by such reporting accountants
or officer, as the case may be, and disclosed therein).

 

6.9. Intentionally
Deleted.

 

6.10. Real
Property.

 

If any Credit Party shall acquire
at any time or times hereafter any fee simple interest and title in real property with a value in excess of $1,000,000, then within ninety
(90) days of the acquisition thereof such Credit Party shall execute and deliver to Agent, as additional security and Collateral for the
Obligations, deeds of trust, security deeds, mortgages or other collateral assignments reasonably satisfactory in form and substance to
Agent and its counsel (herein collectively referred to as “New Mortgages”) covering such real property. The New Mortgages
shall be duly recorded (at Borrower’s expense) in each office where such recording is required to constitute a valid lien on the
real property covered thereby. In respect of any New Mortgage, Borrower shall deliver to Agent, at Borrower’s expense, mortgagee
title insurance policies issued by a title insurance company reasonably satisfactory to Agent, which policies shall be in form and substance
reasonably satisfactory to Agent and shall insure a valid lien in favor of Agent on the property covered thereby, subject only to Permitted
Encumbrances and those other exceptions reasonably acceptable to Agent and its counsel. Borrower shall also deliver to Agent such other
usual and customary documents, including, without limitation, ALTA surveys of the real property described in the New Mortgages, as Agent
and its counsel may reasonably request relating to the real property subject to the New Mortgages.

 

6.11. Inactive
Subsidiaries.

 

To the extent a Subsidiary that
is inactive as of the Closing Date subsequently becomes actively engaged in business then Borrower shall cause such Subsidiary to become
a Guarantor.

 

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6.12. Certificate
of Beneficial Ownership and Other Additional Information.

 

Provide to Agent: (i) confirmation
of the accuracy of the information set forth in the most recent Certificate of Beneficial Ownership provided to Agent; (ii) a new Certificate
of Beneficial Ownership, in form and substance acceptable to Agent, when the individual(s) to be identified as a Beneficial Owner have
been changed; and (iii) such other information and documentation as may reasonably be requested by Agent from time to time for purposes
of compliance by Agent with applicable laws (including without limitation the USA Patriot Act and other “know your customer”
and anti-money laundering rules and regulations), and any policy or procedure implemented by Agent to comply therewith.

 

6.13. Additional
Intellectual Property.

 

Borrower agrees to execute any
documents required by Agent to perfect a lien on any registered United States Intellectual Property that has not been previously pledged
to Agent.

 

6.14 Sanctions
and other Anti-Terrorism Laws; Anti-Corruption Law.

 

(a) (A)
Immediately notify the Agent and each of the Lenders in writing upon the occurrence of a Reportable Compliance Event; and (B) if, at any
time, any Collateral becomes Embargoed Property, then, in addition to all other rights and remedies available to the Agent and each of
the Lenders, upon request by the Agent or any of the Lenders, the Borrower shall provide substitute Collateral acceptable to the Lenders
that is not Embargoed Property.

 

(b)
Each Covered Entity shall conduct their business in compliance with all Anti-Corruption Laws and maintain policies and procedures designed
to ensure compliance with such Laws.

 

ARTICLE VII

 

NEGATIVE COVENANTS

 

Borrower shall not, and shall
not permit any other Credit Party to, until satisfaction in full of the Obligations and termination of this Agreement:

 

7.1 Merger,
Consolidation, Acquisition and Sale of Assets.

 

(a) Enter
into any merger, consolidation or other reorganization with or into any other Person or acquire all or a substantial portion of the assets
or stock of any Person or permit any other Person to consolidate with or merge with it, except with the express written consent of Agent
and (i) among Credit Parties and (ii) as may be permitted under Section 7.4.

 

(b) Sell,
lease, transfer or otherwise dispose of any of its properties or assets, except (i) dispositions of Inventory and Equipment to the extent
expressly permitted by Section 4.3 and (ii) any other sales or dispositions expressly permitted by this Agreement.

 

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7.2. Creation
of Liens.

 

Create or suffer to exist any
Lien or transfer upon or against any of its property or assets now owned or hereafter acquired, except Permitted Encumbrances.

 

7.3. Guarantees.

 

Become liable upon the obligations
or liabilities of any Person by assumption, endorsement or guaranty thereof or otherwise (other than to Lenders) except (a) as disclosed
on Schedule 7.3, (b) guarantees made in the Ordinary Course of Business up to an aggregate amount of $1,000,000, (c) the endorsement of
checks in the Ordinary Course of Business, and (d) guarantees of any Credit Party for another Credit Party.

 

7.4 Investments.

 

Purchase or acquire obligations
or Equity Interests of, or any other interest in, any Person, or make other investments except (a) obligations issued or guaranteed by
the United States of America or any agency thereof, (b) commercial paper with maturities of not more than one hundred eighty (180) days
and a published rating of not less than A-1 or P-1 (or the equivalent rating), (c) certificates of time deposit and bankers’ acceptances
having maturities of not more than one hundred eighty (180) days and repurchase agreements backed by United States government securities
of a commercial bank if (i) such bank has a combined capital and surplus of at least $500,000,000, or (ii) its debt obligations, or those
of a holding company of which it is a Subsidiary, are rated not less than A (or the equivalent rating) by a nationally recognized investment
rating agency, (d) U.S. money market funds that invest solely in obligations issued or guaranteed by the United States of America or an
agency thereof, (e) investments in respect of Interest Rate Hedges, (f) extensions of trade credit in the Ordinary Course of Business,
(g) loan and advances to officers and employees made in compliance with Section 7.5, (h) advances, loans or extensions of credit between
Borrower and any Credit Party made in compliance with Section 7.5, (i) as set forth on Schedule 7.4, (j) the stock of any Credit Party,
(k) as allowed under Section 7.1, (l) by and among Credit Parties to other Credit Parties, and (m) notwithstanding any other limitation
of this Section, an aggregate amount not to exceed the greater of $100,000 per year. Notwithstanding the foregoing, Borrower shall deposit
all proceeds of issuances of equity and Indebtedness into the Investment Account and pledged as Collateral. Property in the Investment
Account may be invested at Borrower’s direction so long as no Event of Default exists; provided that no such Property shall be invested
outside of Agent and its Affiliates at any time when there is an outstanding balance under the Revolving Credit Facility.

 

7.5. Loans.

 

Make advances, loans or extensions
of credit to any Person, including any Parent, Subsidiary or Affiliate except with respect to (a) the extension of commercial trade credit
in connection with the sale of Inventory in the Ordinary Course of Business, (b) loans to its employees in the Ordinary Course of Business
not to exceed the aggregate amount of $1,000,000 at any time outstanding, (c) advances, loans or extensions of credit between and among
the Credit Parties or Borrower and any of the Credit Parties and (d) other than as set forth on Schedule 7.5.

 

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7.6. Capital
Expenditures.

 

Contract for, purchase or make
any expenditure or commitments for Capital Expenditures in any fiscal year in an aggregate amount in excess of $6,000,000.

 

7.7. Dividends.

 

(a) Declare,
pay or make any dividend or distribution on any shares of the common stock or preferred stock of Borrower (other than dividends or distributions
payable in its stock, or split-ups or reclassifications of its stock) or apply any of its funds, property or assets to the purchase, redemption
or other retirement of any common or preferred stock, or of any options to purchase or acquire any such shares of common or preferred
stock of Borrower except as set forth on Schedule 7.7.

 

7.8. Indebtedness.

 

Create, incur, assume or suffer
to exist any Indebtedness (exclusive of trade debt) except in respect of:

 

(a) Indebtedness
to Lenders under this Agreement and the Other Documents;

 

(b) Indebtedness
incurred for Capital Expenditures permitted under Section 7.6 hereof;

 

(c) Permitted
Purchase Money Indebtedness;

 

(d) Indebtedness
described on Schedule 7.8 and any refinancings of such Indebtedness, provided that the aggregate principal amount of such Indebtedness
is not increased, the scheduled maturity dates of such Indebtedness are not shortened and such refinancing is on terms and conditions
no more restrictive than the terms and conditions of the Indebtedness being refinanced;

 

(e) Indebtedness
under any Interest Rate Hedge;

 

(f) Indebtedness
not otherwise permitted hereunder in an amount not to exceed $1,500,000 outstanding at any one time;

 

(g) Indebtedness
assumed by a Credit Party in connection with Section 7.1 or Section 7.14;

 

(h) Indebtedness
resulting from a judgment having been rendered against a Credit Party for which reserves have been established;

 

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(i) Indebtedness
with respect to guarantees permitted by Section 7.3;

 

(j) Indebtedness
due under the Subordinated Loan Documentation; and any refinancings of such Indebtedness, provided that in connection with such refinancing:
(i) the aggregate principal amount of such Indebtedness is not increased, (ii) the scheduled maturity date of such Indebtedness is not
shortened, (iii) the covenants or defaults are not materially more restrictive or more onerous than analogous provisions in the Subordinated
Loan Documentation as in effect on the date hereof, and (iv) an intercreditor agreement in form and substance satisfactory to Agent and
the Required Lenders shall have been executed and delivered to Agent prior to the consummation of such refinancing (it being agreed that
an intercreditor agreement containing terms substantially similar to the terms set forth in the Subordination Agreement will be satisfactory);
and

 

(k) Indebtedness
in connection with the PPP.

 

7.9. Nature
of Business.

 

Substantially change the nature
of the business in which it will be engaged in after the completion of the Transactions, nor except as specifically permitted hereby purchase
or invest, directly or indirectly, in any assets or property other than in the Ordinary Course of Business for assets or property which
are useful in, necessary for and are to be used in its business as presently conducted after completion of the Transactions.

 

7.10. Transactions
with Affiliates.

 

Directly or indirectly, purchase,
acquire or lease any property from, or sell, transfer or lease any property to, make any payment to, or enter into any transaction or
arrangement with, or otherwise deal with, any Affiliate, except transactions (i) disclosed on Schedule 7.10 or (ii) disclosed to Agent,
which are in the Ordinary Course of Business, on an arm’s-length basis on terms and conditions no less favorable than terms and
conditions which would have been obtainable from a Person other than an Affiliate; (iii) constituting the payment of reasonable compensation
(including indemnity and expense reimbursement obligations to officers and employees for services actually rendered; (iv) constituting
payments of management fees and transactions among the Credit Parties to the extent not otherwise prohibited by this Agreement; (v) constituting
the payment of customary directors’ fees, indemnities and reimbursement obligations.

 

7.11. Leases.

 

Enter as lessee into any lease
arrangement for real or personal property (unless capitalized and permitted under Section 7.6 hereof) if after giving effect thereto,
aggregate annual rental payments for all leased property would exceed $1,000,000 in any one fiscal year in the aggregate for Borrower
and any other Credit Party.

 

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7.12. Subsidiaries.

 

(a) Form
any Subsidiary unless (i) such Subsidiary is a Domestic Subsidiary or is Perma-Fix Canada, Inc., (ii) such Subsidiary expressly joins
in this Agreement as a Credit Party and executes a joinder and joins the Secured Subsidiaries Guaranty and under any other agreement between
any Credit Party and Lenders and (iii) Agent shall have received all documents, including, without limitation, legal opinions and appraisals
it may reasonably require in connection therewith, except as described on Schedule 7.12(a).

 

(b) Enter
into any partnership, joint venture or similar arrangement, except (i) as described on Schedule 7.12(b) and which will be disclosed to
Agent on a quarterly basis and (ii) a joint venture in which Borrower’s initial investment does not exceed $100,000 (Borrower’s
aggregate investment in all joint ventures shall not exceed $250,000) and whose operating agreement is acceptable to Agent.

 

7.13. Fiscal
Year and Accounting Changes.

 

Change its fiscal year from December
31 or make any significant change (i) in accounting treatment and reporting practices except as required by GAAP or (ii) in tax reporting
treatment except as required by law, except for the fiscal year of those Subsidiaries to be acquired in the Transactions, which will be
changed to December 31.

 

7.14. Pledge
of Credit.

 

Now or hereafter pledge Agent’s
or any Lender’s credit on any purchases or for any purpose whatsoever or use any portion of any Advance in or for any business other
than Borrower’s business as conducted on the date of this Agreement.

 

7.15. Amendment
of Organizational Documents.

 

Amend, modify or waive any term
or material provision of its Articles of Incorporation or By-Laws or other organizational documents or adopt any resolution which would
have a Material Adverse Effect.

 

7.16. Compliance
with ERISA.

 

(i) (x) Maintain, or permit any
member of the Controlled Group to maintain, or (y) become obligated to contribute, or permit any member of the Controlled Group to become
obligated to contribute, to any Plan, other than those Plans disclosed on Schedule 5.8(d) or any other Plan for which Agent has provided
its prior written consent, (ii) engage, or permit any member of the Controlled Group to engage, in any non-exempt “prohibited transaction”,
as that term is defined in section 406 of ERISA and Section 4975 of the Code, (iii) incur, or permit any member of the Controlled Group
to incur, any “accumulated funding deficiency”, as that term is defined in Section 302 of ERISA or Section 412 of the Code,
(iv) terminate, or permit any member of the Controlled Group to terminate, any Plan where such event could result in any liability of
Borrower or any member of the Controlled Group or the imposition of a lien on the property of Borrower or any member of the Controlled
Group pursuant to Section 4068 of ERISA, (v) assume, or permit any member of the Controlled Group to assume, any obligation to contribute
to any Multiemployer Plan not disclosed on Schedule 5.8(d), (vi) incur, or permit any member of the Controlled Group to incur, any withdrawal
liability to any Multiemployer Plan; (vii) fail promptly to notify Agent of the occurrence of any Termination Event, (viii) fail to comply,
or permit a member of the Controlled Group to fail to comply, with the requirements of ERISA or the Code or other Applicable Laws in respect
of any Plan, (ix) fail to meet, or permit any member of the Controlled Group to fail to meet, all minimum funding requirements under ERISA
or the Code or postpone or delay or allow any member of the Controlled Group to postpone or delay any funding requirement with respect
of any Plan.

 

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7.17. Prepayment
of Indebtedness.

 

At any time, prepay, repurchase,
redeem, retire or otherwise acquire, or make any payment on account of any principal of, interest on or premium payable in connection
with the prepayment or redemption of any Indebtedness for borrowed money (other than Indebtedness owed to the Lender under this Agreement
or the Other Documents), except any such prepayment, repurchase, redemption, retirement or acquisition (i) expressly permitted in the
Subordination Agreement; (ii) in connection with the refinancing of Indebtedness in compliance with Section 7.8(j); (iii) any prepayment
of the Indebtedness set forth in Section 7.8(k); or (iv) in an amount not to exceed $100,000 in the aggregate.

 

7.18. Sanctions
and other Anti-Terrorism Laws.

 

(a) Become a Sanctioned Person
or allow any employees, officers, directors, affiliates, consultants, brokers, or agents acting on its behalf in connection with this
Agreement to become a Sanctioned Person;

 

(b) Directly, or indirectly through
a third party, engage in any transactions or other dealings with or for the benefit of any Sanction Person or Sanctioned Country, including
any use of the proceeds of the Advances to fund any operations in, finance any investments or activities in, or, make any payments to,
a Sanctions Person or Sanctioned Country;

 

(c) Repay the Advances with Embargoed
Property or funds derived from any unlawful activity;

 

(d) Permit any Collateral to become
Embargoed Property; or

 

(e) Cause any Lender or Agent
to violate any Anti-Terrorism Law.

 

7.19. Anti-Corruption
Laws.

 

Directly or indirectly, use the
Advances or any proceeds thereof for any purpose which would breach any Anti-Corruption Laws in any jurisdiction in which any Covered
Entity conducts business.

 

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7.20. Other
Agreements.

 

Enter into any material amendment,
waiver or modification that would have a Material Adverse Effect without prior notice to Agent of (a) the Acquisition Agreement or (b)
any Material Contract other than with respect to the Material Contracts identified on Schedule 5.28.

 

7.21. Additional
Negative Pledges.

 

Create or otherwise cause or suffer
to exist or become effective, directly or indirectly, unless otherwise permitted under this Agreement, (i) any prohibition or restriction
(including any agreement to provide equal and ratable security to any other Person in the event a Lien is granted to or for the benefit
of Agent and the Lenders) on the creation or existence of any Lien upon the assets of Borrower or any Guarantor, other than Permitted
Encumbrances, (ii) any contractual obligation which may restrict or inhibit Agent’s rights or ability to sell or otherwise dispose
of the Collateral or any part thereof after the occurrence of an Event of Default.

 

7.22. Additional
Bank Accounts.

 

Open, maintain or otherwise have
any checking, savings or other accounts at any bank or other financial institution, or any other account where money is or may be deposited
or maintained with any Person, other than (a) the accounts set forth on Schedule 4.15(h), each of which shall be subject to a blocked
account arrangement with the depository institution, except to the extent otherwise determined by Agent (b) deposit accounts established
after the Closing Date that are subject to a blocked account arrangement with the depository institution in form and substance satisfactory
to Agent, (c) other deposit accounts established after the Closing Date solely as payroll and other zero balance accounts and (d) other
deposit accounts established after the Closing Date, so long as at any time the balance in any such account does not exceed $10,000 and
the aggregate balance in all such accounts does not exceed $50,000.

 

ARTICLE VIII

 

CONDITIONS PRECEDENT

 

8.1. Conditions
to Initial Advances.

 

The agreement of Lenders to make
the initial Advances requested to be made on the Closing Date is subject to the satisfaction, or waiver by Agent/Lenders, immediately
prior to or concurrently with the making of such Advances, of the following conditions precedent:

 

(a) Note.

 

Agent shall have received an amended
Revolving Credit Note;

 

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(b) Insurance.

 

Agent shall have received in form
and substance satisfactory to Agent, (i) evidence that adequate insurance, including without limitation, casualty and liability insurance,
required to be maintained under this Agreement is in full force and effect, (ii) insurance certificates issued by Borrower’s insurance
broker containing such information regarding Borrower’s casualty and liability insurance policies as Agent shall request and naming
Agent as an additional insured, lenders loss payee and/or mortgagee, as applicable, and (iii) loss payable endorsements issued by Borrower’s
insurer naming Agent as lenders loss payee and mortgagee, as applicable;

 

(c) No
Adverse Material Change.

 

(i)
Since December 31, 2019, there shall not have occurred any event, condition or state of facts which would reasonably be expected to have
a Material Adverse Effect and (ii) no representations made or information supplied to Agent or Lenders shall have been proven to be inaccurate
or misleading in any material respect;

 

(b) Compliance
with Laws.

 

Agent shall be reasonably satisfied
that Borrower is in compliance with all pertinent federal, state, local or territorial regulations, including those with respect to the
Federal Occupational Safety and Health Act, the Environmental Protection Act, ERISA and the Anti-Terrorism Laws; and

 

(c) Other.

 

All corporate and other proceedings,
and all documents, instruments and other legal matters in connection with this Agreement shall be satisfactory in form and substance to
Agent and its counsel.

 

8.2. Conditions
to Each Advance.

 

The agreement of Lenders to make
any Advance requested to be made on any date (including the initial Advance), is subject to the satisfaction of the following conditions
precedent as of the date such Advance is made:

 

(a) Representations
and Warranties.

 

Each of the representations and
warranties made by Borrower in or pursuant to this Agreement, the Other Documents and any related agreements to which it is a party, and
each of the representations and warranties contained in any certificate, document or financial or other statement furnished at any time
under or in connection with this Agreement, the Other Documents or any related agreement shall be true and correct in all material respects
on and as of such date as if made on and as of such date;

 

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(b) No
Default.

 

No Event of Default or Default
shall have occurred and be continuing on such date, or would exist after giving effect to the Advances requested to be made, on such date
and, in the case of the initial Advance, after giving effect to the consummation of the transactions contemplated by the Acquisition Agreement;
provided, however that Agent, in its sole discretion, may continue to make Advances notwithstanding the existence of an Event of Default
or Default and that any Advances so made shall not be deemed a waiver of any such Event of Default or Default; and

 

(c) Maximum
Advances.

 

In the case of any type of Advance
requested to be made, after giving effect thereto, the aggregate amount of such type of Advance shall not exceed the maximum amount of
such type of Advance permitted under this Agreement.

 

Each request for an Advance by
Borrower hereunder shall constitute a representation and warranty by Borrower as of the date of such Advance that the conditions contained
in this subsection shall have been satisfied.

 

8.3. Conditions
to Each Equipment Loan.

 

The agreement of
Lenders to make any Equipment Loan is subject to satisfaction of the following conditions precedent: (a) receipt by Agent of (i) a copy
of the invoice relating to the equipment being purchased, (ii) evidence that such equipment has been shipped to Borrower, (iii) evidence
that the requested Equipment Loan does not exceed ninety percent (90%) of the Net Invoice Cost of any such new equipment purchased by
Borrower or eighty percent (80%) of the Net Invoice Cost of any such used equipment purchased by Borrower, and (iv) such other documentation
and evidence that Agent may request; and (b) after giving effect thereto, the aggregate outstanding principal amount of Equipment Loans
shall not exceed the Maximum Equipment Loan Amount.”

ARTICLE IX

 

INFORMATION AS
TO BORROWER

 

Borrower shall, until satisfaction
in full of the Obligations and the termination of this Agreement:

 

9.1. Disclosure
of Material Matters.

 

Promptly upon learning thereof,
report to Agent all matters materially affecting the value, enforceability or collectibility of any material portion of the Collateral,
including, without limitation, any Credit Party’s reclamation or repossession of, or the return to any Credit Party of, a material
amount of goods or claims or disputes asserted by any Customer or other obligor.

 

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9.2 Schedules.

 

Deliver to Agent on or before
the twenty-fifth (25th) day of each month as and for the prior month (a) accounts receivable ageings inclusive of reconciliations to the
general ledger, (b) accounts payable schedules inclusive of reconciliations to the general ledger, (c) Inventory reports and (d) a Borrowing
Base Certificate in form and substance satisfactory to Agent (which shall be calculated as of the last day of the prior month and which
shall not be binding upon Agent or restrictive of Agent’s rights under this Agreement). In addition, Borrower will deliver to Agent
(i) weekly sales and cash receipt journals together with any accounts receivable adjustment in form and substance satisfactory to Agent
and (ii) at such intervals as Agent may require: (a) confirmatory assignment schedules, (b) copies of Customer’s invoices if reasonably
requested, (c) evidence of shipment or delivery, (d) such further schedules, documents and/or information regarding the Collateral as
Agent may require including, without limitation, trial balances and test verifications; and (e) a statement of the balance of each of
the Intercompany Receivables. Agent shall have the right to confirm and verify all Receivables by any manner and through any medium it
considers advisable and do whatever it may deem reasonably necessary to protect its interests hereunder. The items to be provided under
this Section are to be in form satisfactory to Agent and executed by Borrower and delivered to Agent from time to time solely for Agent’s
convenience in maintaining records of the Collateral, and Borrower’s failure to deliver any of such items to Agent shall not affect,
terminate, modify or otherwise limit Agent’s Lien with respect to the Collateral.

 

9.3. Environmental
Reports.

 

Furnish Agent, concurrently with
the delivery of the financial statements referred to in Sections 9.7 and 9.8, a Compliance Certificate signed by the President (or such
other officer permitted to execute the Compliance Certificate) of Borrower stating, to the best of his knowledge, that each Credit Party
is in compliance in all material respects with all federal, state and local Environmental Laws applicable to the Credit Parties which
would result in a Material Adverse Effect except as otherwise discussed on Schedule 5.7. To the extent any Credit Party is not in compliance
with the foregoing laws which would result in a Material Adverse Effect, the Compliance Certificate shall briefly set forth with specificity
all areas of non-compliance and the proposed action such Credit Party will implement in order to achieve full compliance to the best of
such individual’s knowledge after due inquiry.

 

9.4. Litigation.

 

Promptly notify Agent in writing
of any claim, litigation, suit or administrative proceeding affecting any Credit Party, whether or not the claim is covered by insurance,
and of any litigation, suit or administrative proceeding, which in any such case adversely affects a material amount of Collateral or
which would have a Material Adverse Effect (without regard to any such insurance).

 

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9.5. Material
Occurrences.

 

Promptly notify Agent in writing
upon the occurrence of (a) any Event of Default or Default; (b) any event, development or circumstance whereby any financial statements
or other reports furnished to Agent fail in any material respect to present fairly, in accordance with GAAP consistently applied, the
consolidated financial condition or operating results of Borrower as of the date of such statements; (c) any accumulated retirement plan
funding deficiency which, if such deficiency continued for two plan years and was not corrected as provided in Section 4971 of the Code,
could subject any Credit Party to a tax imposed by Section 4971 of the Code resulting in a Material Adverse Effect; (d) each and every
default by Borrower which would result in the acceleration of the maturity of any Indebtedness in excess of $50,000, including the names
and addresses of the holders of such Indebtedness with respect to which there is a default existing or with respect to which the maturity
has been or could be accelerated, and the amount of such Indebtedness; and (e) any other development in the business or affairs of any
Credit Party, which would have a Material Adverse Effect; in each case describing the nature thereof and the action such Credit Party
proposes to take with respect thereto.

 

9.6. Public
Filings.

 

Furnish Agent concurrently with
the filing thereof, copies of all filings and information statements submitted by Borrower to the Securities and Exchange Commission,
any equivalent State authority, any stock exchange or to Borrower’s securityholders.

 

9.7. Annual
Financial Statements.

 

Furnish Agent within one hundred
twenty (120) days after the end of each fiscal year of Borrower, financial statements of Borrower on a consolidating and consolidated
basis including, but not limited to, statements of income and stockholders’ equity and cash flow from the beginning of the current
fiscal year to the end of such fiscal year and the balance sheet as at the end of such fiscal year, all prepared in accordance with GAAP
applied on a basis consistent with prior practices, and in reasonable detail and accompanied by a report and opinion (which report and
opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern”
or like assumption, qualification or exception as to scope of the audit) an independent certified public accounting firm selected by Borrower
and satisfactory to Agent (the “Accountants”). The report of the Accountants shall be accompanied by a statement of
the Accountants certifying that (i) they have caused this Agreement to be reviewed, (ii) in making the examination upon which such report
was based either no information came to their attention which to their knowledge constituted an Event of Default or a Default under this
Agreement or any related agreement or, if such information came to their attention, specifying any such Default or Event of Default, its
nature, when it occurred and whether it is continuing, and such report shall contain or have appended thereto calculations which set forth
Borrower’s compliance with the requirements or restrictions imposed by Sections 6.5, 7.4, 7.5, 7.6, 7.7, 7.8 and 7.11 hereof. In
addition, the reports shall be accompanied by a Compliance Certificate.

 

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9.8. Quarterly
Financial Statements.

 

Furnish Agent within fifty (50)
days after the end of each fiscal quarter, an unaudited balance sheet of Borrower on a consolidated and consolidating basis and unaudited
statements of income and stockholders’ equity and cash flow of Borrower on a consolidated and consolidating basis reflecting results
of operations from the beginning of the fiscal year to the end of such quarter and for such quarter, prepared on a basis consistent with
prior practices and complete and correct in all material respects, subject to normal and recurring year end adjustments that individually
and in the aggregate are not material to Borrower’s business. The reports shall be accompanied by a Compliance Certificate.

 

9.9. Monthly
Financial Statements.

 

Furnish Agent within thirty (30)
days after the end of each month, an unaudited balance sheet of Borrower on a consolidated and consolidating basis and unaudited statements
of income and stockholders’ equity and cash flow of Borrower on a consolidated and consolidating basis reflecting results of operations
from the beginning of the fiscal year to the end of such month and for such month, prepared on a basis consistent with prior practices
and complete and correct in all material respects, subject to normal and recurring year end adjustments that individually and in the aggregate
are not material to Borrower’s business. The reports for the last month of each quarter shall be accompanied by a Compliance Certificate
regarding the quarter then ended.

 

9.10. Other
Reports.

 

Furnish Agent as soon as available,
but in any event within ten (10) days after the issuance thereof, with copies of such financial statements, reports and returns as Borrower
shall send to its stockholders.

 

9.11. Additional
Information.

 

Furnish Agent with such additional
information as Agent shall reasonably request in order to enable Agent to determine whether the terms, covenants, provisions and conditions
of this Agreement and the Note have been complied with by Borrower and the other Credit Parties including, without limitation, any without
the necessity of any request by Agent, (a) copies of all environmental audits and reviews, (b) at least thirty (30) days prior thereto,
notice of any Credit Party’s opening of any new office or place of business or any Credit Party’s closing of any existing
office or place of business, and (c) promptly upon any Credit Party’s learning thereof, notice of any labor dispute to which any
Credit Party may become a party, any strikes or walkouts relating to any of its plants or other facilities, and the expiration of any
labor contract to which any Credit Party is a party or by which any Credit Party is bound.

 

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9.12. Projected
Operating Budget.

 

Furnish Agent, no later than thirty
(30) days after the beginning of each fiscal year of Borrower commencing with fiscal year 2021, a month by month projected operating budget
and cash flow of Borrower on a consolidated and consolidating basis for such fiscal year (including an income statement for each month
and a balance sheet as at the end of the last month in each fiscal quarter), such projections to be accompanied by a certificate signed
by the President or Chief Financial Officer of Borrower, in his personal capacity, to the effect that such projections have been prepared
on the basis of sound financial planning practice consistent with past budgets and financial statements and that such officer has no reason
to question the reasonableness of any material assumptions on which such projections were prepared.

 

9.13. Variances
From Operating Budget.

 

Furnish Agent, concurrently with
the delivery of the financial statements referred to in Section 9.7 and each monthly report, a written report summarizing all material
variances from budgets submitted by Borrower pursuant to Section 9.12 and a discussion and analysis by management with respect to such
variances.

 

9.14. Notice
of Suits, Adverse Events.

 

Furnish Agent with prompt written
notice of (i) any lapse or other termination of any Consent issued to any Credit Party by any Governmental Body or any other Person which
would have a Material Adverse Effect that is material to the operation of any Credit Party’s business, (ii) any refusal by any Governmental
Body or any other Person to renew or extend any such Consent; and (iii) copies of any periodic or special reports filed by any Credit
Party with any Governmental Body or Person, if such reports indicate any material change in the business, operations, affairs or condition
of a Credit Party, or if copies thereof are requested by Lender, and (iv) copies of any material notices and other communications from
any Governmental Body or Person which specifically relate to a Credit Party.

 

9.15. ERISA
Notices and Requests.

 

Furnish Agent with prompt written
notice in the event that (i) Borrower or any member of the Controlled Group knows or has reason to know that a Termination Event has occurred,
together with a written statement describing such Termination Event and the action, if any, which Borrower or any member of the Controlled
Group has taken, is taking, or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue
Service, Department of Labor or PBGC with respect thereto, (ii) Borrower or any member of the Controlled Group knows or has reason to
know that a prohibited transaction (as defined in Sections 406 of ERISA and 4975 of the Code) has occurred together with a written statement
describing such transaction and the action which Borrower or any member of the Controlled Group has taken, is taking or proposes to take
with respect thereto, (iii) a funding waiver request has been filed with respect to any Plan together with all communications received
by Borrower or any member of the Controlled Group with respect to such request, (iv) any increase in the benefits of any existing Plan
or the establishment of any new Plan or the commencement of contributions to any Plan to which Borrower or any member of the Controlled
Group was not previously contributing shall occur, (v) Borrower or any member of the Controlled Group shall receive from the PBGC a notice
of intention to terminate a Plan or to have a trustee appointed to administer a Plan, together with copies of each such notice, (vi) Borrower
or any member of the Controlled Group shall receive any favorable or unfavorable determination letter from the Internal Revenue Service
regarding the qualification of a Plan under Section 401(a) of the Code, together with copies of each such letter; (vii) Borrower or any
member of the Controlled Group shall receive a notice regarding the imposition of withdrawal liability, together with copies of each such
notice; (viii) Borrower or any member of the Controlled Group shall fail to make a required installment or any other required payment
under Section 412 of the Code on or before the due date for such installment or payment; or (ix) Borrower or any member of the Controlled
Group knows that (a) a Multiemployer Plan has been terminated, (b) the administrator or plan sponsor of a Multiemployer Plan intends to
terminate a Multiemployer Plan, or (c) the PBGC has instituted or will institute proceedings under Section 4042 of ERISA to terminate
a Multiemployer Plan.

 

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9.16. Additional
Documents.

 

Execute and deliver to Agent,
upon request, such documents and agreements as Agent may, from time to time, reasonably request to carry out the purposes, terms or conditions
of this Agreement.

 

9.17. Government
Receivables.

 

Notify Agent immediately if any
of its Receivables arise out of contracts between Borrower and the United States, any state, or any department, agency or instrumentality
of any of them.

 

ARTICLE X

 

EVENTS OF DEFAULT

 

The occurrence of any one or more
of the following events shall constitute an “Event of Default”:

 

10.1. Nonpayment.

 

Failure by Borrower to pay any
principal or interest on the Obligations when due, whether at maturity or by reason of acceleration pursuant to the terms of this Agreement
or by notice of intention to prepay, or by required prepayment or failure to pay when due any other liabilities or make any other payment,
fee or charge provided for herein when due or in any Other Document (violations of or related to the Formula Amount and/or the Borrowing
Base Certificate shall be deemed to be a default under this Section 10.1);

 

10.2. Breach
of Representation.

 

Any representation or warranty
made or deemed made by any Credit Party in this Agreement, any Other Document or any related agreement or in any certificate, document
or financial or other statement furnished at any time in connection herewith or therewith shall prove to have been misleading in any material
respect on the date when made or deemed to have been made;

 

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10.3. Financial
Information.

 

Failure by Borrower or any other
Credit Party to (i)(x) furnish financial information when due or (y) when requested, or (ii) permit the inspection of its books or records
in accordance with this Agreement;

 

10.4. Judicial
Actions.

 

Issuance of a notice of Lien,
levy, assessment, injunction or attachment against any Credit Party’s Eligible Receivables or against a material portion of any
Credit Party’s other property which is not stayed or lifted within sixty (60) days;

 

10.5. Noncompliance.

 

Except as otherwise provided for
in Section 10.1 or Section 10.3:

 

(a) failure
or neglect of any Credit Party to perform, keep or observe any term, provision, condition, or covenant, contained in Sections 4.10, 6.2(b),
6.5 or 6.6 or in Article 7 or 9 hereof, or

 

(b) failure
or neglect of Borrower to perform, keep or observe any term, provision, condition or covenant contained herein or any Other Document that,
if such term, provision, condition or covenant is capable of cure, is not cured within thirty (30) days from the earlier to occur of (A)
receipt by Borrower of written notice thereof from Agent or any Lender and (B) the date upon which Borrower obtains knowledge thereof,
or within such reasonably longer period as may be required to cure same (so long as cure is commenced within the thirty-day period and
thereafter is prosecuted to completion with reasonable diligence);

 

10.6. Judgments.

 

Any judgment or judgments are
rendered against any Credit Party for an aggregate amount in excess of $1,000,000 and (i) enforcement proceedings shall have been commenced
by a creditor upon such judgment, (ii) there shall be any period of thirty (30) consecutive days during which a stay of enforcement of
such judgment, by reason of a pending appeal or otherwise, shall not be in effect, or (iii) any such judgment results in the creation
of a Lien upon any of the Collateral (other than a Permitted Encumbrance);

 

10.7. Bankruptcy.

 

Any Credit Party shall (i) apply
for, consent to or suffer the appointment of, or the taking of possession by, a receiver, custodian, trustee, liquidator or similar fiduciary
of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of creditors, (iii) commence
a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated a bankrupt or insolvent,
(v) file a petition seeking to take advantage of any other law providing for the relief of debtors, (vi) acquiesce to, or fail to have
dismissed, within thirty (30) days, any petition filed against it in any involuntary case under such bankruptcy laws, or (vii) take any
action for the purpose of effecting any of the foregoing;

 

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10.8. Inability
to Pay.

 

Any Credit Party shall admit in
writing its inability, or be generally unable, to pay its debts as they become due or cease operations of its present business;

 

10.9. Material
Adverse Effect.

 

Any change in any Credit Party’s
results of operations or condition (financial or otherwise) which in Agent’s reasonable opinion exercised in good faith has a Material
Adverse Effect after written notice by Agent to Borrower of the default and five (5) Business Days following Borrower’s receipt
of the written notice of default;

 

10.10. Lien
Priority.

 

Any Lien created hereunder or
under any Other Document or provided for hereby or thereby or under any related agreement for any reason ceases to be or is not a valid
and perfected Lien having a first priority interest or Borrower or any other Person acting on its behalf shall so claim;

 

10.11. Cross
Default.

 

A default of the obligations of
any Credit Party under any other agreement (except for agreements relating to trade payables) to which it is a party shall occur which
adversely affects its condition, affairs or prospects (financial or otherwise) by more than $100,000 or $500,000 in the aggregate) which
default is not cured within any applicable grace period;

 

10.12. Breach
of Guaranty.

 

Termination or breach of any Guaranty
or Guaranty Security Agreement or similar agreement executed and delivered to Agent in connection with the Obligations of Borrower, or
if any Guarantor attempts to terminate, challenges the validity of, or its liability under, any such Guaranty or Guaranty Security Agreement
or similar agreement;

 

10.13. Change
of Control.

 

Any Change of Control shall occur;

 

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10.14. Invalidity.

 

Any material provision of this
Agreement or any Other Document shall, for any reason, cease to be valid and binding on any Credit Party or any Credit Party shall so
claim in writing to Agent;

 

10.15. Licenses.

 

(i) Any Governmental Body shall
(A) revoke, terminate, suspend or adversely modify any license, permit, patent trademark or tradename of the Credit Parties on a consolidated
basis, the continuation of which is material to the continuation of any Credit Party’s business, or (B) commence proceedings to
suspend, revoke, terminate or adversely modify any such license, permit, trademark, tradename or patent and such proceedings shall not
be dismissed or discharged within sixty (60) days, or (C) schedule or conduct a hearing on the renewal of any license, permit, trademark,
tradename or patent necessary for the continuation of any Credit Party’s business on a consolidated basis and the staff of such
Governmental Body issues a report recommending the termination, revocation, suspension or material, adverse modification of such license,
permit, trademark, tradename or patent; (ii) any agreement which is necessary or material to the operation of any Credit Party’s
business shall be revoked or terminated and not replaced by a substitute acceptable to Agent within thirty (30) days after the date of
such revocation or termination, and such revocation or termination and non-replacement would have a Material Adverse Effect;

 

10.16. Seizures.

 

Any portion of the Collateral
having a value in excess of $50,000 shall be seized or taken by a Governmental Body, or any Credit Party or the title and rights of any
Credit Party or any Original Owner which is the owner of any material portion of the Collateral shall have become the subject matter of
claim, litigation, suit or other proceeding which might, in the reasonable opinion of Agent, upon final determination, result in impairment
or loss of the security provided by this Agreement or the Other Documents;

 

10.17. Pension
Plans.

 

An event or condition specified
in Sections 7.16 or 9.15 hereof shall occur or exist with respect to any Plan and, as a result of such event or condition, together with
all other such events or conditions, Borrower or any member of the Controlled Group shall incur, or in the opinion of Agent be reasonably
likely to incur, a liability to a Plan or the PBGC (or both) which would have a Material Adverse Effect; or

 

10.18. Subordinated
Loan Default.

 

An event of default has occurred
under the Subordinated Loan Documents, which default shall not have been cured or waived within any applicable grace period or if any
Person party to a Subordination Agreement breaches or violates, or attempts to terminate or challenge the validity of, such agreement.

 

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ARTICLE XI

 

LENDERS’
RIGHTS AND REMEDIES AFTER DEFAULT

 

11.1. Rights
and Remedies.

 

(a) Upon
the occurrence of (i) an Event of Default pursuant to Section 10.7 all Obligations shall be immediately due and payable and this Agreement
and the obligation of Lenders to make Advances shall be deemed terminated; and, (ii) any of the other Events of Default that is continuing
and at any time thereafter (such default not having previously been cured or waived), at the option of Required Lenders all Obligations
shall be immediately due and payable and Lenders shall have the right to terminate this Agreement and to terminate the obligation of Lenders
to make Advances and (iii) a filing of a petition against Borrower in any involuntary case under any state or federal bankruptcy laws,
all Obligations shall be immediately due and payable and the obligation of Lenders to make Advances hereunder shall be terminated other
than as may be required by an appropriate order of the bankruptcy court having jurisdiction over Borrower. Upon the occurrence of any
Event of Default that has not been cured or waived and is continuing, Agent shall have the right to exercise any and all other rights
and remedies provided for herein, under the Other Documents, under the Uniform Commercial Code and at law or equity generally, including,
without limitation, the right to foreclose the security interests granted herein and to realize upon any Collateral by any available judicial
procedure and/or to take possession of and sell any or all of the Collateral with or without judicial process. Agent may enter any of
Borrower’s premises or other premises without legal process and without incurring liability to Borrower therefor, and Agent may
thereupon, or at any time thereafter, in its discretion without notice or demand, take the Collateral and remove the same to such place
as Agent may deem advisable and Agent may require Borrower to make the Collateral available to Agent at a convenient place. With or without
having the Collateral at the time or place of sale, Agent may sell the Collateral, or any part thereof, at public or private sale, at
any time or place, in one or more sales, at such price or prices, and upon such terms, either for cash, credit or future delivery, as
Agent may elect. Except as to that part of the Collateral which is perishable or threatens to decline speedily in value or is of a type
customarily sold on a recognized market, Agent shall give Borrower reasonable notification of such sale or sales, it being agreed that
in all events written notice mailed to Borrower at least ten (10) days prior to such sale or sales is reasonable notification. At any
public sale Agent or any Lender may bid for and become the purchaser, and Agent, any Lender or any other purchaser at any such sale thereafter
shall hold the Collateral sold absolutely free from any claim or right of whatsoever kind, including any equity of redemption and all
such claims, rights and equities are hereby expressly waived and released by Borrower. In connection with the exercise of the foregoing
remedies in the event of an Event of Default that is continuing, including the sale of Inventory, Agent is granted a perpetual nonrevocable,
royalty free, nonexclusive license and Agent is granted permission to use all of Borrower’s (a) trademarks, trade styles, trade
names, patents, patent applications, copyrights, service marks, licenses, franchises and other proprietary rights which are used or useful
in connection with Inventory for the purpose of marketing, advertising for sale and selling or otherwise disposing of such Inventory and
(b) Equipment for the purpose of completing the manufacture of unfinished goods. The cash proceeds realized from the sale of any Collateral
shall be applied to the Obligations in the order set forth in Section 11.5 hereof. Noncash proceeds will only be applied to the Obligations
as they are converted into cash. If any deficiency shall arise, Borrower shall remain liable to Agent and Lenders therefor.

 

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(b) To
the extent that Applicable Law imposes duties on Agent to exercise remedies in a commercially reasonable manner, Borrower acknowledges
and agrees that it is not commercially unreasonable for Agent (i) to fail to incur expenses reasonably deemed significant by Agent to
prepare Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products
for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required
by other law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or
disposed of, (iii) to fail to exercise collection remedies against Customers or other Persons obligated on Collateral or to remove Liens
on or any adverse claims against Collateral, (iv) to exercise collection remedies against Customers and other Persons obligated on Collateral
directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through
publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons,
whether or not in the same business as Borrower, for expressions of interest in acquiring all or any portion of such Collateral, (vii)
to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized
nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the
Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in
wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase
insurance or credit enhancements to insure Agent against risks of loss, collection or disposition of Collateral or to provide to Agent
a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by Agent, to obtain the
services of other brokers, investment bankers, consultants and other professionals to assist Agent in the collection or disposition of
any of the Collateral. Borrower acknowledges that the purpose of this Section 11.1(b) is to provide non-exhaustive indications of what
actions or omissions by Agent would not be commercially unreasonable in Agent’s exercise of remedies against the Collateral and
that other actions or omissions by Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this
Section 11.1(b). Without limitation upon the foregoing, nothing contained in this Section 11.1(b) shall be construed to grant any rights
to Borrower or to impose any duties on Agent that would not have been granted or imposed by this Agreement or by Applicable Law in the
absence of this Section 11.1(b).

 

11.2. Agent’s
Discretion.

 

Agent shall have the right in
its reasonable discretion to determine which rights, Liens, security interests or remedies Agent may at any time pursue, relinquish, subordinate,
or modify or to take any other action with respect thereto and such determination will not in any way modify or affect any of Agent’s
or Lenders’ rights hereunder.

 

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11.3. Setoff.

 

Subject to Section 14.12, in addition
to any other rights which Agent or any Lender may have under Applicable Law, upon the occurrence of an Event of Default hereunder that
has not been waived or cured and is continuing, Agent and such Lender shall have a right, immediately and without notice of any kind,
to apply Borrower’s property held by Agent and such Lender to reduce the Obligations.

 

11.4. Rights
and Remedies not Exclusive.

 

The enumeration of the foregoing
rights and remedies is not intended to be exhaustive and the exercise of any rights or remedy shall not preclude the exercise of any other
right or remedies provided for herein or otherwise provided by law, all of which shall be cumulative and not alternative.

 

11.5. Allocation
of Payments After Event of Default.

 

Notwithstanding any other provisions
of this Agreement to the contrary, after the occurrence and during the continuance of an Event of Default, all amounts collected or received
by Agent on account of the Obligations or any other amounts outstanding under any of the Other Documents or in respect of the Collateral
may, at Agent’s discretion, be paid over or delivered as follows:

 

FIRST, to the payment of all reasonable
out-of-pocket costs and expenses (including reasonable attorneys’ fees) of Agent in connection with enforcing its rights and the
rights of the Lenders under this Agreement and the Other Documents and any protective advances made by Agent with respect to the Collateral
under or pursuant to the terms of this Agreement;

 

SECOND, to payment of any fees
owed to Agent;

 

THIRD, to the payment of all reasonable
out-of-pocket costs and expenses (including reasonable attorneys’ fees) of each of the Lenders to the extent owing to such Lender
pursuant to the terms of this Agreement;

 

FOURTH, to the payment of all
of the Obligations consisting of accrued fees and interest;

 

FIFTH, to the payment of the outstanding
principal amount of the Obligations (including the payment or cash collateralization of any outstanding Letters of Credit), to breakage,
termination or other payments, and any interest accrued thereon, due under any Lender-Provided Interest Rate Hedge, to the extent such
Lender-Provided Interest Rate Hedge is permitted by Section 7.8, and to amounts due under any Cash Management Products;

 

SIXTH, to all other Obligations
and other obligations which shall have become due and payable under the Other Documents or otherwise and not repaid pursuant to clauses
“FIRST” through “FIFTH” above; and

 

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SEVENTH, to the payment of the
surplus, if any, to whoever may be lawfully entitled to receive such surplus.

 

In carrying out the foregoing, (i) amounts received
shall be applied in the numerical order provided until exhausted prior to application to the next succeeding category; (ii) each of the
Lenders shall receive (so long as it is not a Defaulting Lender) an amount equal to its pro rata share (based on the proportion that the
then outstanding Advances held by such Lender bears to the aggregate then outstanding Advances) of amounts available to be applied pursuant
to clauses “FOURTH”, “FIFTH” and “SIXTH” above; and (iii) to the extent that any amounts available
for distribution pursuant to clause “FIFTH” above are attributable to the issued but undrawn amount of outstanding Letters
of Credit, such amounts shall be held by Agent in a cash collateral account and applied (A) first, to reimburse the Issuer from time to
time for any drawings under such Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations
of the types described in clauses “FIFTH” and “SIXTH” above in the manner provided in this Section 11.5.

 

ARTICLE XII

 

WAIVERS AND JUDICIAL
PROCEEDINGS

 

12.1. Waiver
of Notice.

 

Borrower hereby waives notice
of non-payment of any of the Receivables, demand, presentment, protest and notice thereof with respect to any and all instruments, notice
of acceptance hereof, notice of loans or advances made, credit extended, Collateral received or delivered, or any other action taken in
reliance hereon, and all other demands and notices of any description, except such as are expressly provided for herein.

 

12.2. Delay.

 

No delay or omission on Agent’s
or any Lender’s part in exercising any right, remedy or option shall operate as a waiver of such or any other right, remedy or option
or of any Default or Event of Default. No Out-of-Formula Loan or protective advance made during the existence of a Default or an Event
of Default shall operate as a waiver of any such Default or Event of Default.

 

12.3. Jury
Waiver.

 

EACH PARTY TO THIS AGREEMENT HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED
OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

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ARTICLE XIII

 

EFFECTIVE DATE
AND TERMINATION.

 

13.1. Term.

 

This Agreement, which shall inure
to the benefit of and shall be binding upon the respective successors and permitted assigns of Borrower, Agent and each Lender, shall
become effective on the date hereof and shall continue in full force and effect until May 15, 2024 (the “Term”) unless
sooner terminated as herein provided. Borrower may terminate this Agreement at any time upon ninety (90) days’ prior written notice
upon payment in full of the Obligations. In the event the Obligations are prepaid in full prior to the last day of the Term (the date
of such prepayment hereinafter referred to as the “Early Termination Date”), Borrower shall pay to Agent for the benefit
of Lenders an early termination fee in an amount equal to (x) one percent (1.0%) of the Maximum Loan Amount if the Early Termination Date
occurs on or after May 8, 2020 to and including May 7, 2021, and (y) one-half of one percent (0.50%) of the Maximum Loan Amount if the
Early Termination Date occurs on or after May 8, 2021 to and including May 7, 2022.

 

13.2. Termination.

 

The termination of the Agreement
shall not affect Borrower’s, Agent’s or any Lender’s rights, or any of the Obligations having their inception prior
to the effective date of such termination, and the provisions hereof shall continue to be fully operative until all transactions entered
into, rights or interests created or Obligations (other than contingent indemnity claims not yet asserted or threatened) have been fully
and indefeasibly paid, disposed of, concluded or liquidated. The security interests, Liens and rights granted to Agent and Lenders hereunder
and the financing statements filed hereunder shall continue in full force and effect, notwithstanding the termination of this Agreement
or the fact that Borrower’s Account may from time to time be temporarily in a zero or credit position, until all of the Obligations
(other than contingent indemnity claims not yet asserted or threatened) have been indefeasibly paid and performed in full after the termination
of this Agreement or Borrower has furnished Agent and Lenders with an indemnification satisfactory to Agent and Lenders with respect thereto.
Accordingly, Borrower waives any rights which it may have under the Uniform Commercial Code to demand the filing of termination statements
with respect to the Collateral, and Agent shall not be required to send such termination statements to Borrower, or to file them with
any filing office, unless and until this Agreement shall have been terminated in accordance with its terms and all Obligations (other
than contingent indemnity claims not yet asserted or threatened) have been indefeasibly paid in full in immediately available funds. All
representations, warranties, covenants, waivers and agreements contained herein shall survive termination hereof until all Obligations
(other than contingent indemnity claims not yet asserted or threatened) are indefeasibly paid and performed in full.

 

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ARTICLE XIV

 

REGARDING AGENT

 

14.1. Appointment.

 

Each Lender hereby designates
PNC to act as Agent for such Lender under this Agreement and the Other Documents. Each Lender hereby irrevocably authorizes Agent to take
such action on its behalf under the provisions of this Agreement and the Other Documents and to exercise such powers and to perform such
duties hereunder and thereunder as are specifically delegated to or required of Agent by the terms hereof and thereof and such other powers
as are reasonably incidental thereto and Agent shall hold all Collateral, payments of principal and interest, fees (except the fees set
forth in Sections 3.3(a) and 3.4), charges and collections (without giving effect to any collection days) received pursuant to this Agreement,
for the ratable benefit of Lenders. Agent may perform any of its duties hereunder by or through its agents or employees. As to any matters
not expressly provided for by this Agreement (including, without limitation, collection of the Note) Agent shall not be required to exercise
any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding; provided, however, that
Agent shall not be required to take any action which exposes Agent to liability or which is contrary to this Agreement or the Other Documents
or Applicable Law unless Agent is furnished with an indemnification reasonably satisfactory to Agent with respect thereto.

 

14.2. Nature
of Duties.

 

Agent shall have no duties or
responsibilities except those expressly set forth in this Agreement and the Other Documents. Neither Agent nor any of its officers, directors,
employees or agents shall be (i) liable for any action taken or omitted by them as such hereunder or in connection herewith, unless caused
by their gross (not mere) negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable
judgment), or (ii) responsible in any manner for any recitals, statements, representations or warranties made by Borrower or any officer
thereof contained in this Agreement, or in any of the Other Documents or in any certificate, report, statement or other document referred
to or provided for in, or received by Agent under or in connection with, this Agreement or any of the Other Documents or for the value,
validity, effectiveness, genuineness, due execution, enforceability or sufficiency of this Agreement, or any of the Other Documents or
for any failure of Borrower to perform its obligations hereunder. Agent shall not be under any obligation to any Lender to ascertain or
to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any of the Other
Documents, or to inspect the properties, books or records of Borrower. The duties of Agent as respects the Advances to Borrower shall
be mechanical and administrative in nature; Agent shall not have by reason of this Agreement a fiduciary relationship in respect of any
Lender; and nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon Agent any obligations
in respect of this Agreement except as expressly set forth herein.

 

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14.3. Lack
of Reliance on Agent and Resignation.

 

Independently and without reliance
upon Agent or any other Lender, each Lender has made and shall continue to make (i) its own independent investigation of the financial
condition and affairs of Borrower and each Guarantor in connection with the making and the continuance of the Advances hereunder and the
taking or not taking of any action in connection herewith, and (ii) its own appraisal of the creditworthiness of Borrower and each Guarantor.
Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any Lender with any credit or other
information with respect thereto, whether coming into its possession before making of the Advances or at any time or times thereafter
except as shall be provided by Borrower pursuant to the terms hereof. Agent shall not be responsible to any Lender for any recitals, statements,
information, representations or warranties herein or in any agreement, document, certificate or a statement delivered in connection with
or for the execution, effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of this Agreement or any Other
Document, or of the financial condition of Borrower or any Guarantor, or be required to make any inquiry concerning either the performance
or observance of any of the terms, provisions or conditions of this Agreement, the Notes, the Other Documents or the financial condition
of Borrower, or the existence of any Event of Default or any Default.

 

Agent may resign on sixty (60)
days’ written notice to each of Lenders and Borrower and upon such resignation, the Required Lenders will promptly designate a successor
Agent reasonably satisfactory to Borrower.

 

Any such successor Agent shall
succeed to the rights, powers and duties of Agent, and the term “Agent” shall mean such successor agent effective upon its
appointment, and the former Agent’s rights, powers and duties as Agent shall be terminated, without any other or further act or
deed on the part of such former Agent. After any Agent’s resignation as Agent, the provisions of this Article XIV shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement.

 

14.4. Certain
Rights of Agent.

 

If Agent shall request instructions
from Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any Other Document, Agent
shall be entitled to refrain from such act or taking such action unless and until Agent shall have received instructions from the Required
Lenders; and Agent shall not incur liability to any Person by reason of so refraining. Without limiting the foregoing, Lenders shall not
have any right of action whatsoever against Agent as a result of its acting or refraining from acting hereunder in accordance with the
instructions of the Required Lenders.

 

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14.5. Reliance.

 

Agent shall be entitled to rely,
and shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate, facsimile, electronic message,
email, order or other document or telephone message believed by it to be genuine and correct and to have been signed, sent or made by
the proper person or entity, and, with respect to all legal matters pertaining to this Agreement and the Other Documents and its duties
hereunder, upon advice of counsel selected by it. Agent may employ agents and attorneys-in-fact and shall not be liable for the default
or misconduct of any such agents or attorneys-in-fact selected by Agent with reasonable care.

 

14.6. Notice
of Default.

 

Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default hereunder or under the Other Documents, unless Agent has received
notice from a Lender or Borrower referring to this Agreement or the Other Documents, describing such Default or Event of Default and stating
that such notice is a “notice of default”. In the event that Agent receives such a notice, Agent shall give notice thereof
to Lenders. Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required
Lenders; provided, that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests
of Lenders.

 

14.7. Indemnification.

 

To the extent Agent is not reimbursed
and indemnified by Borrower, each Lender will reimburse and indemnify Agent in proportion to its respective portion of the Advances (or,
if no Advances are outstanding, according to its Commitment Percentage), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against Agent in performing its duties hereunder, or in any way relating to or arising out of this Agreement
or any Other Document; provided that, Lenders shall not be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements (including, without limitation, attorneys’ fees) resulting from Agent’s
gross (not mere) negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment).

 

14.8. Agent
in its Individual Capacity.

 

With respect to the obligation
of Agent to lend under this Agreement, the Advances made by it shall have the same rights and powers hereunder as any other Lender and
as if it were not performing the duties as Agent specified herein; and the term “Lender” or any similar term shall, unless
the context clearly otherwise indicates, include Agent in its individual capacity as a Lender. Agent may engage in business with Borrower
as if it were not performing the duties specified herein, and may accept fees and other consideration from Borrower for services in connection
with this Agreement or otherwise without having to account for the same to Lenders.

 

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14.9. Delivery
of Documents.

 

To the extent Agent receives financial
statements required under Sections 9.7, 9.8, 9.9, 9.12 and 9.13 or Borrowing Base Certificates from Borrower pursuant to the terms of
this Agreement which Borrower is not obligated to deliver to each Lender, Agent will promptly furnish such documents and information to
Lenders.

 

14.10. Borrower’s
Undertaking to Agent.

 

Without prejudice to its obligations
to Lenders under the other provisions of this Agreement, Borrower hereby undertakes with Agent to pay to Agent from time to time on demand
all amounts from time to time due and payable by it for the account of Agent or Lenders or any of them pursuant to this Agreement to the
extent not already paid. Any payment made pursuant to any such demand shall pro tanto satisfy the relevant Borrower’s obligations
to make payments for the account of Lenders or the relevant one or more of them pursuant to this Agreement.

 

14.11. No
Reliance on Agent’s Customer Identification Program.

 

Each Lender acknowledges and agrees
that neither such Lender, nor any of its Affiliates, participants or assignees, may rely on Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other obligations required or imposed under or pursuant to
the USA PATRIOT Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced,
the “CIP Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the following items
relating to or in connection with Borrower, its Affiliates or its agents, this Agreement, the Other Documents or the transactions hereunder
or contemplated hereby: (1) any identity verification procedures, (2) any record-keeping, (3) comparisons with government lists, (4) customer
notices or (5) other procedures required under the CIP Regulations or such other laws.

 

14.12. Other
Agreements.

 

Each of the Lenders agrees that
it shall not, without the express consent of Agent, and that it shall, to the extent it is lawfully entitled to do so, upon the request
of Agent, set off against the Obligations, any amounts owing by such Lender to Borrower or any deposit accounts of Borrower now or hereafter
maintained with such Lender. Anything in this Agreement to the contrary notwithstanding, each of the Lenders further agrees that it shall
not, unless specifically requested to do so by Agent, take any action to protect or enforce its rights arising out of this Agreement or
the Other Documents, it being the intent of Lenders that any such action to protect or enforce rights under this Agreement and the Other
Documents shall be taken in concert and at the direction or with the consent of Agent or Required Lenders.

 

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14.13 Erroneous
Payments.

 

(a) If
the Agent notifies a Lender, Issuer, or any Person who has received funds on behalf of a Lender or Issuer (any such Lender, Issuer or
other recipient, a “Payment Recipient”) that the Agent has determined in its sole discretion (whether or not after receipt
of any notice under immediately succeeding clause (b)) that any funds received by such Payment Recipient from the Agent or any of its
Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not
known to such Lender, Issuer or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment
of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and demands
the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Agent
and shall be segregated by the Payment Recipient and held in trust for the benefit of the Agent, and such Lender or Issuer shall (or,
with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no
event later than two Business Days thereafter, return to the Agent the amount of any such Erroneous Payment (or portion thereof) as to
which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from
and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid
to the Agent in same day funds at the greater of the Effective Federal Funds Rate and a rate determined by the Agent in accordance with
banking industry rules on interbank compensation from time to time in effect. A notice from the Agent to any Payment Recipient under this
clause (a) shall be conclusive, absent manifest error.

 

(b) Without
limiting immediately preceding clause (a), each Lender, Issuer or any Person who has received funds on behalf of a Lender or Issuer hereby
further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal,
interest, fees, distribution or otherwise) from the Agent (or any of its Affiliates) (x) that is in an amount different than, or on a
different date from, that specified in a notice of payment, prepayment or repayment sent by the Agent (or any of its Affiliates) with
respect to such, prepayment or repayment (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent
by the Agent (or any of its Affiliates), or (z) that such Lender, Issuer or other such recipient, otherwise becomes aware was transmitted,
or received, in error or by mistake (in whole or in part) in each case:

 

		(i)	(A) In the case of immediately preceding clauses (x) or (y), an error shall be presumed to have been made
(absent written confirmation from the Agent to the contrary) or (B) an error has been made (in the case of immediately preceding clause
(z)), in each case, with respect to such payment, prepayment or repayment; and

 

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		(ii)	such Lender or Issuer shall (and shall cause any other recipient that receives funds on its respective
behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Agent of its receipt of such
payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Agent pursuant to this Section
14.13(b),

 

(c) Each
Lender or Issuer hereby authorizes the Agent to set off, net and apply any and all amounts at any time owing to such Lender or Issuer
under any Other Document, or otherwise payable or distributable by the Agent to such Lender or Issuer from any source, against any amount
due to the Agent under immediately preceding clause (a) or under the indemnification provisions of this Agreement.

 

(d) In
the event that an Erroneous Payment (or portion thereof) is not recovered by the Agent for any reason, after demand therefor by the Agent
in accordance with immediately preceding clause (a), from any Lender or Issuer that has received such Erroneous Payment (or portion thereof)
(and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf (such unrecovered
amount, an “Erroneous Payment Return Deficiency”), upon the Agent’s notice to such Lender or Issuer at any time, (i)
such Lender or Issuer shall be deemed to have assigned its loans (but not its commitments) of the relevant class with respect to which
such Erroneous Payment was made (the “Erroneous Payment Impacted Class”) in an amount equal to the Erroneous Payment Return
Deficiency (or such lesser amount as the Agent may specify) (such assignment of the loans (but not commitments) of the Erroneous Payment
Impacted Class, the “Erroneous Payment Deficiency Assignment”) at par plus any accrued and unpaid interest (with the assignment
fee to be waived by the Agent in such instance), and is hereby (together with the Borrower) deemed to execute and deliver an assignment
and assumption with respect to such Erroneous Payment Deficiency Assignment, and such Lender or Issuer shall deliver any Notes evidencing
such loans to the Borrower or the Agent, (ii) the Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency
Assignment, (iii) upon such deemed acquisition, the Agent as the assignee Lender shall become a Lender or Issuer, as applicable, hereunder
with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender or assigning Issuer shall cease to be a Lender or
Issuer, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding for the avoidance of doubt, its
obligations under the indemnification provisions of this Agreement and its applicable commitments which shall survive as to such assigning
Lender or assigning Issuer and (iv) the Agent may reflect in the Register its ownership interest in the loans subject to the Erroneous
Payment Deficiency Assignment. The Agent may, in its discretion, sell any loans acquired pursuant to an Erroneous Payment Deficiency Assignment
and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender or Issuer shall
be reduced by the net proceeds of the sale of such loan (or portion thereof), and the Agent shall retain all other rights, remedies and
claims against such Lender or Issuer (and/or against any recipient that receives funds on its respective behalf). For the avoidance of
doubt, no Erroneous Payment Deficiency Assignment will reduce the commitments of any Lender or Issuer and such commitments shall remain
available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Agent
has sold a loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the
Agent may be equitably subrogated, the Agent shall be contractually subrogated to all the rights and interests of the applicable Lender
or Issuer under the Other Documents with respect to such Erroneous Payment Return Deficiency (the “Erroneous Payment Subrogation
Rights”).

 

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(e) The
parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the
Borrower or any other loan party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount
of such Erroneous Payment that is, comprised of funds received by the Agent from the Borrower or any other loan party for the purpose
of making such Erroneous Payment.

 

(f) To
the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives,
and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim
by the Agent for the return of any Erroneous Payment received, including without limitation, waiver of any defense based on “discharge
for value” or any similar doctrine.

 

(g) Each
party’s obligations under this Section 14.13 shall survive the resignation or replacement of the Agent, the termination of all of
the commitments and/or repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Other Document.

 

ARTICLE XV

 

MISCELLANEOUS

 

15.1. Governing
Law.

 

This Agreement shall be governed
by and construed in accordance with the laws of the State of New York applied to contracts to be performed wholly within the State of
New York. Any judicial proceeding brought by or against Borrower with respect to any of the Obligations, this Agreement, the Other Documents
or any related agreement may be brought in any court of competent jurisdiction in the State of New York, United States of America, and,
by execution and delivery of this Agreement, Borrower accepts for itself and in connection with its properties, generally and unconditionally,
the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to be bound by any judgment rendered thereby in connection
with this Agreement. Borrower hereby waives personal service of any and all process upon it and consents that all such service of process
may be made by registered mail (return receipt requested) directed to Borrower at its address set forth in Section 15.6 and service so
made shall be deemed completed five (5) days after the same shall have been so deposited in the mails of the United States of America.
Nothing herein shall affect the right to serve process in any manner permitted by law or shall limit the right of Agent or any Lender
to bring proceedings against Borrower in the courts of any other jurisdiction. Borrower waives any objection to jurisdiction and venue
of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.
Borrower waives the right to remove any judicial proceeding brought against Borrower in any state court to any federal court. Any judicial
proceeding by Borrower against Agent or any Lender involving, directly or indirectly, any matter or claim in any way arising out of, related
to or connected with this Agreement or any related agreement, shall be brought only in a federal or state court located in the County
of New York, State of New York.

 

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15.2. Entire
Understanding.

 

(a) This
Agreement and the documents executed concurrently herewith contain the entire understanding between Borrower, Agent and each Lender and
supersedes all prior agreements and understandings, if any, relating to the subject matter hereof. Any promises, representations, warranties
or guarantees not herein contained and hereinafter made shall have no force and effect unless in writing, signed by Borrower’s,
Agent’s and each Lender’s respective officers. Neither this Agreement nor any portion or provisions hereof may be changed,
modified, amended, waived, supplemented, discharged, cancelled or terminated orally or by any course of dealing, or in any manner other
than by an agreement in writing, signed by the party to be charged. Borrower acknowledges that it has been advised by counsel in connection
with the execution of this Agreement and Other Documents and is not relying upon oral representations or statements inconsistent with
the terms and provisions of this Agreement.

 

(b) The
Required Lenders, Agent with the consent in writing of the Required Lenders, and Borrower may, subject to the provisions of this Section
15.2 (b), from time to time enter into written supplemental agreements to this Agreement or the Other Documents executed by Borrower,
for the purpose of adding or deleting any provisions or otherwise changing, varying or waiving in any manner the rights of Lenders, Agent
or Borrower thereunder or the conditions, provisions or terms thereof or waiving any Event of Default thereunder, but only to the extent
specified in such written agreements; provided, however, that no such supplemental agreement shall, without the consent of all Lenders:

 

(i) increase
the Commitment Percentage or the maximum dollar commitment of any Lender or the Maximum Revolving Advance Amount.

 

(ii) extend
the maturity of any Note or the due date for any amount payable hereunder (excluding any mandatory prepayment), or decrease the rate of
interest or reduce any fee payable by Borrower to Lenders pursuant to this Agreement.

 

(iii) alter
the definition of the term Required Lenders or alter, amend or modify this Section 15.2(b).

 

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(iv) release
any Collateral during any calendar year (other than in accordance with the provisions of this Agreement) having an aggregate value in
excess of $1,000,000.

 

(v) change
the rights and duties of Agent.

 

(vi) permit
any Revolving Advance to be made if after giving effect thereto the total of Revolving Advances outstanding hereunder would exceed the
Formula Amount for more than sixty (60) consecutive Business Days or exceed one hundred and ten percent (110%) of the Formula Amount.

 

(vii) increase
the Advance Rates above the Advance Rates in effect on the Closing Date.

 

(viii) release
any Guarantor.

 

Any such supplemental agreement shall apply equally
to each Lender and shall be binding upon Borrower, Lenders and Agent and all future holders of the Obligations. In the case of any waiver,
Borrower, Agent and Lenders shall be restored to their former positions and rights, and any Event of Default waived shall be deemed to
be cured and not continuing, but no waiver of a specific Event of Default shall extend to any subsequent Event of Default (whether or
not the subsequent Event of Default is the same as the Event of Default which was waived), or impair any right consequent thereon.

 

In the event that Agent requests
the consent of a Lender pursuant to this Section 15.2 and such consent is denied, then PNC may, at its option, require such Lender to
assign its interest in the Advances to PNC or to another Lender or to any other Person designated by Agent (the “Designated Lender”),
for a price equal to the then outstanding principal amount thereof plus accrued and unpaid interest and fees due such Lender, which interest
and fees shall be paid when collected from Borrower. In the event PNC elects to require any Lender to assign its interest to PNC or to
the Designated Lender, PNC will so notify such Lender in writing within forty-five (45) days following such Lender’s denial, and
such Lender will assign its interest to PNC or the Designated Lender no later than five (5) days following receipt of such notice pursuant
to a Commitment Transfer Supplement executed by such Lender, PNC or the Designated Lender, as appropriate, and Agent.

 

Notwithstanding (a) the existence
of a Default or an Event of Default that is continuing, (b) that any of the other applicable conditions precedent set forth in Section
8.2 hereof have not been satisfied or (c) any other provision of this Agreement, Agent may at its discretion and without the consent of
the Required Lenders, voluntarily permit the outstanding Revolving Advances at any time to exceed the Formula Amount by up to ten percent
(10%) of the Formula Amount for up to sixty (60) consecutive Business Days (the “Out-of-Formula Loans”); provided,
that, such outstanding Advances do not exceed the Maximum Revolving Advance Amount. If Agent is willing in its sole and absolute discretion
to make such Out-of-Formula Loans, such Out-of-Formula Loans shall be payable on demand and shall bear interest at the Default Rate for
Revolving Advances consisting of Domestic Rate Loans; provided that, if Lenders do make Out-of-Formula Loans, neither Agent nor Lenders
shall be deemed thereby to have changed the limits of Section 2.1(a). For purposes of this paragraph, the discretion granted to Agent
hereunder shall not preclude involuntary overadvances that may result from time to time due to the fact that the Formula Amount was unintentionally
exceeded for any reason, including, but not limited to, Collateral previously deemed to be either “Eligible Receivables” or
“Eligible Inventory”, as applicable, becomes ineligible, collections of Receivables applied to reduce outstanding Revolving
Advances are thereafter returned for insufficient funds or overadvances are made to protect or preserve the Collateral. In the event Agent
involuntarily permits the outstanding Revolving Advances to exceed the Formula Amount by more than ten percent (10%), Agent shall use
its efforts to have Borrower decrease such excess in as expeditious a manner as is practicable under the circumstances and not inconsistent
with the reason for such excess. Revolving Advances made after Agent has determined the existence of involuntary overadvances shall be
deemed to be involuntary overadvances and shall be decreased in accordance with the preceding sentence.

 

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In addition to (and not in substitution
of) the discretionary Revolving Advances permitted above in this Section 15.2, Agent is hereby authorized by Borrower and the Lenders,
from time to time in Agent’s sole discretion, (A) after the occurrence and during the continuation of a Default or an Event of Default,
or (B) at any time that any of the other applicable conditions precedent set forth in Section 8.2 hereof have not been satisfied, to make
Revolving Advances to Borrower on behalf of the Lenders which Agent, in its reasonable business judgment, deems necessary or desirable
(a) to preserve or protect the Collateral, or any portion thereof, (b) to enhance the likelihood of, or maximize the amount of, repayment
of the Advances and other Obligations, or (c) to pay any other amount chargeable to Borrower pursuant to the terms of this Agreement;
provided, that at any time after giving effect to any such Revolving Advances the outstanding Revolving Advances do not exceed one hundred
and ten percent (110%) of the Formula Amount.

 

15.3. Successors
and Assigns; Participations; New Lenders.

 

(a) This
Agreement shall be binding upon and inure to the benefit of Borrower, Agent, each Lender, all future holders of the Obligations and their
respective successors and permitted assigns, except that Borrower may not assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of Agent and each Lender.

 

(b) Borrower
acknowledges that in the regular course of commercial banking business one or more Lenders may at any time and from time to time sell
participating interests in the Advances to other financial institutions (each such transferee or purchaser of a participating interest,
a “Participant”; provided, that any such sale of participating interests must be for a constant and non-varying interest in
all Advances. Each Participant may exercise all rights of payment (including, without limitation, rights of set-off) with respect to the
portion of such Advances held by it or other Obligations payable hereunder as fully as if such Participant were the direct holder thereof
provided that Borrower shall not be required to pay to any Participant more than the amount which it would have been required to pay to
Lender which granted an interest in its Advances or other Obligations payable hereunder to such Participant had such Lender retained such
interest in the Advances hereunder or other Obligations payable hereunder and in no event shall Borrower be required to pay any such amount
arising from the same circumstances and with respect to the same Advances or other Obligations payable hereunder to both such Lender and
such Participant. Borrower hereby grants to any Participant a continuing security interest in any deposits, moneys or other property actually
or constructively held by such Participant as security for the Participant’s interest in the Advances. No Lenders shall transfer,
grant, assign or sell any participation under which the participant shall have rights to approve any amendment or waiver of this Agreement
except to the extent such amendment or waiver would (A) extend the final maturity date or the date for the payments of any installment
of fees or principal or interest of any Advances or Letter of Credit reimbursement obligations in which such participant is participating,
(B) reduce the amount of any installment of principal of the Advances or Letter of Credit reimbursement obligations in which such participant
is participating, (C) except as otherwise expressly provided in this Agreement, reduce the interest rate applicable to the Advances or
Letter of Credit reimbursement obligations in which such participant is participating, or (D) except as otherwise expressly provided in
this Agreement, reduce any fees payable hereunder.

 

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(c) Any
Lender, with the consent of Agent which shall not be unreasonably withheld or delayed, may sell, assign or transfer all or any part of
its rights and obligations under or relating to Revolving Advances, Term Loans and/or Equipment Loans under this Agreement and the Other
Documents to one or more additional banks or financial institutions and one or more additional banks or financial institutions may commit
to make Advances hereunder (each a “Purchasing Lender”), in minimum amounts of not less than $5,000,000, pursuant to
a Commitment Transfer Supplement, executed by a Purchasing Lender, the transferor Lender, and Agent and delivered to Agent for recording;
provided, that any such assignment of a portion must be for a constant and non-varying portion of such Lender’s rights under this
Agreement, the Other Documents, the Advances and Commitment Percentage. Upon such execution, delivery, acceptance and recording, from
and after the transfer effective date determined pursuant to such Commitment Transfer Supplement, (i) Purchasing Lender thereunder shall
be a party hereto and, to the extent provided in such Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder
with a Commitment Percentage as set forth therein, and (ii) the transferor Lender thereunder shall, to the extent provided in such Commitment
Transfer Supplement, be released from its obligations under this Agreement, the Commitment Transfer Supplement creating a novation for
that purpose. Such Commitment Transfer Supplement shall be deemed to amend this Agreement to the extent, and only to the extent, necessary
to reflect the addition of such Purchasing Lender and the resulting adjustment of the Commitment Percentages arising from the purchase
by such Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under this Agreement and the Other
Documents. Borrower hereby consents to the addition of such Purchasing Lender and the resulting adjustment of the Commitment Percentages
arising from the purchase by such Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under
this Agreement and the Other Documents. Borrower shall execute and deliver such further documents and do such further acts and things
in order to effectuate the foregoing.

 

(d) Any
Lender, with the consent of Agent which shall not be unreasonably withheld or delayed, may directly or indirectly sell, assign or transfer
all or any portion of its rights and obligations under or relating to Revolving Advances, Term Loans and/or Equipment Loans under this
Agreement and the Other Documents to an entity, whether a corporation, partnership, trust, limited liability company or other entity that
(i) is engaged in making, purchasing, holding or otherwise investing in bank loans and similar extensions of credit in the ordinary course
of its business and (ii) is administered, serviced or managed by the assigning Lender or an Affiliate of such Lender (a “Purchasing
CLO” and together with each Participant and Purchasing Lender, each a “Transferee” and collectively the “Transferees”),
pursuant to a Commitment Transfer Supplement modified as appropriate to reflect the interest being assigned (“Modified Commitment
Transfer Supplement”), executed by any intermediate purchaser, the Purchasing CLO, the transferor Lender, and Agent as appropriate
and delivered to Agent for recording. Upon such execution and delivery, from and after the transfer effective date determined pursuant
to such Modified Commitment Transfer Supplement, (i) Purchasing CLO thereunder shall be a party hereto and, to the extent provided in
such Modified Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder and (ii) the transferor Lender thereunder
shall, to the extent provided in such Modified Commitment Transfer Supplement, be released from its obligations under this Agreement,
the Modified Commitment Transfer Supplement creating a novation for that purpose. Such Modified Commitment Transfer Supplement shall be
deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect the addition of such Purchasing CLO. Borrower
hereby consents to the addition of such Purchasing CLO. Borrower shall execute and deliver such further documents and do such further
acts and things in order to effectuate the foregoing.

 

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(e) Agent
shall maintain at its address a copy of each Commitment Transfer Supplement and Modified Commitment Transfer Supplement delivered to it
and a register (the “Register”) for the recordation of the names and addresses of each Lender and the outstanding principal,
accrued and unpaid interest and other fees due hereunder. The entries in the Register shall be conclusive, in the absence of manifest
error, and Borrower, Agent and Lenders may treat each Person whose name is recorded in the Register as the owner of the Advance recorded
therein for the purposes of this Agreement. The Register shall be available for inspection by Borrower or any Lender at any reasonable
time and from time to time upon reasonable prior notice. Agent shall receive a fee in the amount of $3,500 payable by the applicable Purchasing
Lender and/or Purchasing CLO upon the effective date of each transfer or assignment (other than to an intermediate purchaser) to such
Purchasing Lender and/or Purchasing CLO.

 

(f) Borrower
authorizes each Lender to disclose to any Transferee and any prospective Transferee any and all financial information in such Lender’s
possession concerning Borrower which has been delivered to such Lender by or on behalf of Borrower pursuant to this Agreement or in connection
with such Lender’s credit evaluation of Borrower.

 

(g) Notwithstanding
anything to the contrary contained in this Agreement, any Lender may at any time and from time to time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

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15.4. Application
of Payments.

 

Agent shall have the continuing
and exclusive right to apply or reverse and re-apply any payment and, to the extent permitted under this Agreement, any and all proceeds
of Collateral to any portion of the Obligations. To the extent that Borrower makes a payment or Agent or any Lender receives any payment
or proceeds of the Collateral for Borrower’s benefit, which are subsequently invalidated, declared to be fraudulent or preferential,
set aside or required to be repaid to a trustee, debtor in possession, receiver, custodian or any other party under any bankruptcy law,
common law or equitable cause, then, to such extent, the Obligations or part thereof intended to be satisfied shall be revived and continue
as if such payment or proceeds had not been received by Agent or such Lender.

 

15.5. Indemnity.

 

Borrower shall indemnify Agent,
each Lender and each of their respective officers, directors, Affiliates, in-house attorneys, employees and agents from and against any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind
or nature whatsoever (including, without limitation, fees and disbursements of counsel) which may be imposed on, incurred by, or asserted
against Agent or any Lender in any claim, litigation, proceeding or investigation instituted or conducted by any Governmental Body or
instrumentality or any other Person with respect to any aspect of, or any transaction contemplated by, or referred to in, or any matter
related to, this Agreement or the Other Documents, whether or not Agent or any Lender is a party thereto, except to the extent that any
of the foregoing arises out of the willful misconduct of the party being indemnified (as determined by a court of competent jurisdiction
in a final and non-appealable judgment). Without limiting the generality of the foregoing, this indemnity shall extend to any liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever
(including fees and disbursements of counsel) asserted against or incurred by any of the indemnitees described above in this Section 15.5
by any Person under any Environmental Laws or similar laws by reason of Borrower’s or any other Person’s failure to comply
with laws applicable to solid or hazardous waste materials, including Hazardous Substances and Hazardous Waste, or other Toxic Substances.
Additionally, if any taxes (excluding taxes imposed upon or measured solely by the net income of Agent and Lenders, but including any
intangibles taxes, stamp tax, recording tax or franchise tax) shall be payable by Agent, Lenders or Borrower on account of the execution
or delivery of this Agreement, or the execution, delivery, issuance or recording of any of the Other Documents, or the creation or repayment
of any of the Obligations hereunder, by reason of any Applicable Law now or hereafter in effect, Borrower will pay (or will promptly reimburse
Agent and Lenders for payment of) all such taxes, including interest and penalties thereon, and will indemnify and hold the indemnitees
described above in this Section 15.5 harmless from and against all liability in connection therewith.

 

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15.6 Notice.

 

Any notice or request hereunder
may be given to Borrower or to Agent or any Lender at their respective addresses set forth below or at such other address as may hereafter
be specified in a notice designated as a notice of change of address under this Section. Any notice, request, demand, direction or other
communication (for purposes of this Section 15.6 only, a “Notice”) to be given to or made upon any party hereto under
any provision of this Loan Agreement shall be given or made by telephone or in writing (which includes by means of electronic transmission
(i.e., “e-mail”) or facsimile transmission or by setting forth such Notice on a site on the World Wide Web (a “Website
Posting”) if Notice of such Website Posting (including the information necessary to access such site) has previously been delivered
to the applicable parties hereto by another means set forth in this Section 15.6) in accordance with this Section 15.6. Any such Notice
must be delivered to the applicable parties hereto at the addresses and numbers set forth under their respective names on Section 15.6
hereof or in accordance with any subsequent unrevoked Notice from any such party that is given in accordance with this Section 15.6. Any
Notice shall be effective:

 

(a) In
the case of hand-delivery, when delivered;

 

(b) If
given by mail, four (4) days after such Notice is deposited with the United States Postal Service, with first-class postage prepaid, return
receipt requested;

 

(c) In
the case of a telephonic Notice, when a party is contacted by telephone, if delivery of such telephonic Notice is confirmed no later than
the next Business Day by hand delivery, a facsimile or electronic transmission, a Website Posting or an overnight courier delivery of
a confirmatory Notice (received at or before noon on such next Business Day);

 

(d) In
the case of a facsimile transmission, when sent to the applicable party’s facsimile machine’s telephone number, if the party
sending such Notice receives confirmation of the delivery thereof from its own facsimile machine;

 

(e) In
the case of electronic transmission, when actually received;

 

(f) In
the case of a Website Posting, upon delivery of a Notice of such posting (including the information necessary to access such site) by
another means set forth in this Section 15.6; and

 

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(g) If
given by any other means (including by overnight courier), when actually received:

 

Any Lender giving a Notice
to Borrower shall concurrently send a copy thereof to Agent, and Agent shall promptly notify the other Lenders of its receipt of such
Notice.

 

	(A)	If to Agent or 	PNC Bank, National Association
	 	PNC at:	One Piedmont Town Center
	 	 	4720 Piedmont Row Drive
	 	 	Suite 300
	 	 	Charlotte, North Carolina 28210
	 	 	Attention:	Alex Council
	 	 	Telephone:	(704) 531-8503
	 	 	Facsimile:	(704) 643-7918

 

	with an additional 	 
	copy to:	Moore & Van Allen PLLC
	 	 	100 N. Tryon Street, Floor 47
	 	 	Charlotte, North Carolina 28202-4003
	 	 	Attention:	Lea Stromire Johnson
	 	 	Telephone:	(704) 331-1068
	 	 	Facsimile:	(704) 378-2068

 

		(B)	If to a Lender other than Agent, as specified on the signature pages hereof

 

	(C)	If to Borrower:	Perma-Fix
Environmental Services, Inc.
	 	 	8302 Dunwoody Place #250
	 	 	Atlanta, Georgia 30350
	 	 	Attention	Ben Naccarato
	 	 	Telephone:	(770) 587-9898
	 	 	Telecopier:	(770) 587-9937

 

	 	with a copy to:	 
	 	 	Conner & Winters, LLP
	 	 	1700 One Leadership Square
	 	 	211 North Robinson
	 	 	Oklahoma City, Oklahoma 73102-7102
	 	 	Attention:	Irwin Steinhorn
	 	 	Telephone:	(405) 272-5750
	 	 	Facsimile:	(405) 232-2695

 

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15.7. Survival.

 

The obligations of Borrower under
Sections 2.2(f), 3.7, 3.8, 3.9, 4.19(h), and 15.5 and the obligations of Lenders under Section 14.7, shall survive termination of this
Agreement and the Other Documents and payment in full of the Obligations.

 

15.8. Severability.

 

If any part of this Agreement
is contrary to, prohibited by, or deemed invalid under Applicable Laws, such provision shall be inapplicable and deemed omitted to the
extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall be given effect so far
as possible.

 

15.9. Expenses.

 

All costs and expenses including,
without limitation, reasonable attorneys’ fees (including the allocated costs of in house counsel) and disbursements incurred by
Agent on its behalf or on behalf of Lenders (a) in all efforts made to enforce payment of any Obligation or effect collection of any Collateral,
or (b) in connection with the entering into, modification, amendment, administration and enforcement of this Agreement, the Other Documents
or any consents or waivers hereunder and all related agreements, documents and instruments, or (c) in instituting, maintaining, preserving,
enforcing and foreclosing on Agent’s security interest in or Lien on any of the Collateral, or maintaining, preserving or enforcing
any of Agent’s or any Lender’s rights hereunder, the Other Documents and under all related agreements, whether through judicial
proceedings or otherwise, or (d) in defending or prosecuting any actions or proceedings arising out of or relating to Agent’s or
any Lender’s transactions with Borrower, any Guarantor or (e) in connection with any advice given to Agent with respect to its rights
and obligations under this Agreement, the Other Documents and all related agreements, may be charged to Borrower’s Account and shall
be part of the Obligations.

 

15.10. Injunctive
Relief.

 

Borrower recognizes that, in the
event Borrower fails to perform, observe or discharge any of its obligations or liabilities under this Agreement, or threatens to fail
to perform, observe or discharge such obligations or liabilities, any remedy at law may prove to be inadequate relief to Lenders; therefore,
Agent, if Agent so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of
proving that actual damages are not an adequate remedy.

 

15.11. Consequential
Damages.

 

Neither Agent nor any Lender,
nor any agent or attorney for any of them, shall be liable to Borrower or any Guarantor (or any Affiliate of any such Person) for indirect,
punitive, exemplary or consequential damages arising from any breach of contract, tort or other wrong relating to the establishment, administration
or collection of the Obligations or as a result of any transaction contemplated under this Agreement or any Other Document.

 

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15.12. Captions.

 

The captions at various places
in this Agreement are intended for convenience only and do not constitute and shall not be interpreted as part of this Agreement.

 

15.13. Counterparts;
Facsimile Signatures.

 

This Agreement may be executed
in any number of and by different parties hereto on separate counterparts, all of which, when so executed, shall be deemed an original,
but all such counterparts shall constitute one and the same agreement. Any signature delivered by a party by facsimile or other form of
electronic transmission shall be deemed to be an original signature hereto.

 

15.14. Construction.

 

The parties acknowledge that each
party and its counsel have reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments, schedules or exhibits
thereto.

 

15.15 Confidentiality;
Sharing Information.

 

(a) Agent,
each Lender and each Transferee shall hold all non-public information obtained by Agent, such Lender or such Transferee pursuant to the
requirements of this Agreement in accordance with Agent’s, such Lender’s and such Transferee’s customary procedures
for handling confidential information of this nature; provided, however, Agent, each Lender and each Transferee may disclose such confidential
information (a) to its examiners, Affiliates, outside auditors, counsel and other professional advisors, (b) to Agent, any Lender or to
any prospective Transferees, and (c) as required or requested by any Governmental Body or representative thereof or pursuant to legal
process; provided, further that (i) unless specifically prohibited by Applicable Law, Agent, each Lender and each Transferee shall use
its reasonable best efforts prior to disclosure thereof, to notify Borrower of the applicable request for disclosure of such non-public
information (A) by a Governmental Body or representative thereof (other than any such request in connection with an examination of the
financial condition of a Lender or a Transferee by such Governmental Body) or (B) pursuant to legal process and (ii) in no event shall
Agent, any Lender or any Transferee be obligated to return any materials furnished by Borrower other than those documents and instruments
in possession of Agent or any Lender in order to perfect its Lien on the Collateral once the Obligations have been paid in full and this
Agreement has been terminated.

 

(b) Borrower
acknowledges that from time to time financial advisory, investment banking and other services may be offered or provided to Borrower or
one or more of its Affiliates (in connection with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates
of such Lender and Borrower hereby authorizes each Lender to share any information delivered to such Lender by Borrower and its Subsidiaries
pursuant to this Agreement, or in connection with the decision of such Lender to enter into this Agreement, to any such Subsidiary or
Affiliate of such Lender, it being understood that any such Subsidiary or Affiliate of any Lender receiving such information shall be
bound by the provisions of this Section 15.15 as if it were a Lender hereunder. Such authorization shall survive the repayment of the
other Obligations and the termination of this Agreement.

 

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15.16. Publicity.

 

Each Credit Party, Agent and each
Lender hereby authorizes Agent and Borrower to make appropriate announcements of the financial arrangement entered into among Borrower,
Agent and Lenders, including, without limitation, announcements which are commonly known as tombstones, in such publications and to such
selected parties as Agent shall in its sole and absolute discretion deem appropriate.

 

15.17. Certifications
From Banks and Participants; USA PATRIOT Act.

 

(a) Each
Lender or assignee or participant of a Lender that is not incorporated under the Laws of the United States of America or a state thereof
(and is not excepted from the certification requirement contained in Section 313 of the USA PATRIOT Act and the applicable regulations
because it is both (i) an affiliate of a depository institution or foreign bank that maintains a physical presence in the United States
or foreign country, and (ii) subject to supervision by a banking authority regulating such affiliated depository institution or foreign
bank) shall deliver to Agent the certification, or, if applicable, recertification, certifying that such Lender is not a “shell”
and certifying to other matters as required by Section 313 of the USA PATRIOT Act and the applicable regulations: (1) within ten (10)
days after the Closing Date, and (2) as such other times as are required under the USA PATRIOT Act.

 

(b) The
USA PATRIOT Act requires all financial institutions to obtain, verify and record certain information that identifies individuals or business
entities which open an “account” with such financial institution. Consequently, Lender may from time to time request, and
Borrower shall provide to Lender, Borrower’s name, address, tax identification number and/or such other identifying information
as shall be necessary for Lender to comply with the USA PATRIOT Act and any other Anti-Terrorism Law.

 

[Signature Page Omitted]

 

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