Document:

Exhibit 10.12

 

FIRST
AMENDMENT TO 

MASTER
SERVICES AGREEMENT

 

This
First Amendment (“Amendment”) is made as of November 15, 2021 between the Americrew Inc. formerly known as PhoneBrasil
International, Inc. (“AmeriCrew”) and Novation Enterprises, LLC (“Novation”). This Amendment
shall be effective as of October 3, 2021 (the “Effective Date”).

 

WHEREAS,
AmeriCrew and Novation are parties to a certain Master Services Agreement dated August 13, 2021 (the “Original Agreement”);
and

 

WHEREAS,
AmeriCrew and Novation desire to amend the Original Agreement to modify the term and the statement of work provided under the Original
Agreement.

 

NOW
THEREFORE, and in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, and intending to be legally bound, the parties agree as follows:

 

		1.	Section
3 of the Original Agreement entitled “Term” is hereby amended to extend the term to December 31, 2021.

 

		2.	As
                                            of the Effective Date of this Amendment, the Statement of Work attached to the Original Agreement
                                            shall be amended and restated and shall be replaced with the Statement of Work that is attached
                                            hereto as Exhibit A.

 

		3.	In
                                            the event of any inconsistencies between the Original Agreement and this Amendment, the terms
                                            of this Amendment shall control. Except as expressly set forth in this Amendment, the terms
                                            of the Original Agreement otherwise remain unmodified and in full force and effect. Each
                                            reference in the Original Agreement to itself shall be deemed also to refer to this Amendment.

 

		4.	Any
                                            capitalized terms used but not defined herein shall have the same meanings as defined in
                                            the Original Agreement.

 

		5.	This
                                            Amendment may be signed in counterparts and may be delivered by facsimile or other electronic
                                            method.

 

IN
WITNESS WHEREOF, AmeriCrew and Novation have caused this amendment to be executed by their authorized officers as of the date first written
above.

 

	Novation Enterprises, LLC	 	Americrew, Inc.
	 	 	 	 	 
	By:	/s/
    P. Kelley Dunne  	 	By:	/s/
    Brian Weis  
		Name:  	P. Kelley Dunne 	 		Name:  	Brian Weis 
		Title: 	Chief Executive Officer 	 		Title:  	Chief Operating Officer 

 

     

     

    

  

Exhibit
A

 

Amended
and Restated

Statement
of WorkExhibit 10.1

 

February 2, 2022

 

Jaguar Health, Inc.

200 Pine Street, Suite 400

San Francisco, California 94104

Attention: Lisa Conte, Chief Executive Officer

 

Dear Ms. Conte:

 

Reference is made to the At The Market Offering
Agreement, dated as of December 10, 2021 (the “ATM Agreement”), between Jaguar Health, Inc. (the “Company”)
and Ladenburg Thalmann & Co., Inc. (the “Ladenburg”).  This letter (the “Amendment”)
constitutes an agreement between the Company and Ladenburg to amend the ATM Agreement as set forth herein.  Defined terms that
are used but not defined herein shall have the meanings ascribed to such terms in the ATM Agreement.

 

1.             The
defined term “Agreement” in the ATM Agreement is amended to mean the ATM Agreement as amended by this Amendment.

 

2.             Section
2 of the ATM Agreement is hereby amended and restated as follows:

 

“2.           Sale and Delivery of Shares.
The Company proposes to issue and sell through or to the Manager, as sales agent and/or principal, from time to time during the term of
this Agreement and on the terms set forth herein, up to the $75,000,000 of shares (the “Shares”) of the Company’s
common stock, $0.0001 par value per share (“Common Stock”), from time to time during the term of this Agreement
and on the terms set forth herein; provided, however, that in no event shall the Company issue or
sell through the Manager such number of Shares that (a) exceeds the number or dollar amount of shares of Common Stock registered on the
Registration Statement, pursuant to which the offering is being made, less the dollar amount of securities issued under the Registration
Statement prior to the date of this Agreement, (b) exceeds the number of authorized but unissued shares of Common Stock (less the number
of shares of Common Stock issuable upon exercise, conversion or exchange of any outstanding securities of the Company or otherwise reserved
from the Company’s authorized capital stock), or (c) would cause the Company or the offering of the Shares to not satisfy the eligibility
and transaction requirements for use of Form S-3, including, if applicable, General Instruction I.B.6 of Registration Statement on Form
S-3 (the lesser of (a), (b) and (c), the “Maximum Amount”).”

 

3.             Section
8(c) of the ATM Agreement is hereby amended and restated as follows:

 

“This Agreement shall remain in full
force and effect until the date that this Agreement is terminated pursuant to Sections 8(a) or (b) above or otherwise by mutual agreement
of the parties, provided that any such termination by mutual agreement shall in all cases be deemed to provide that Sections 5, 7, 8,
9, 10, 12 and 14 shall remain in full force and effect.”

 

    	 	-1-	 

     

    

 

4.             The
Company and Ladenburg hereby agree that the date of this Amendment shall be a Representation Date under the ATM Agreement (provided, however,
that the deliverables under Sections 6(d) of the ATM Agreement shall not be required on the date of this Amendment) and the Company shall
file a Prospectus Supplement with the Commission on the date hereof.

 

5.             In
connection with the amendments to the ATM Agreement set forth herein, the Company shall reimburse Ladenburg for the fees and expenses
of Ladenburg’s counsel in an amount not to exceed $10,000, which shall be paid on the date hereof. ﻿

 

6.             Except
as expressly set forth herein, all of the terms and conditions of the ATM Agreement shall continue in full force and effect after the
execution of this Amendment and shall not be in any way changed, modified or superseded by the terms set forth herein.

 

7.             This
Amendment may be executed in two or more counterparts and by facsimile or “.pdf” signature or otherwise, and each of such
counterparts shall be deemed an original and all of such counterparts together shall constitute one and the same agreement. ﻿

  

[remainder of page intentionally
left blank]

 

    	 	-2-	 

     

    

 

In acknowledgment that the
foregoing correctly sets forth the understanding reached by the Company and Ladenburg, please sign in the space provided below, whereupon
this Amendment shall constitute a binding amendment to the ATM Agreement as of the date indicated above.

  

	 	Very truly yours,
	 	 
	 	LADENBURG THALMANN & CO., INC.
	 	 
	 	By: 	/s/ Nicholas Stergis
	 	Name: 	Nicholas Stergis
	 	Title: 	Managing Partner
	 	 

 

 

	Accepted and Agreed:	 
	 	 
	JAGUAR HEALTH, INC.	 
	 	 
	By: 	/s/ Lisa A. Conte	 	 
		Name: Lisa
    A. Conte	 
		Title: President
    & CEO	 

  

[SIGNATURE
PAGE TO JAGX AMENDMENT TO

ATM
AGREEMENT]

  

    	 	-3-Nanophase Technologies Corporation 8-K

Exhibit 10.1

 

 

BUSINESS LOAN AGREEMENT

 

THIS BUSINESS LOAN AGREEMENT dated as of January
28, 2022 by and between NANOPHASE TECHNOLOGIES CORPORATION, a Delaware corporation (“Borrower”), and BEACHCORP, LLC, a Delaware
limited liability company (“Lender”). 

 

PREAMBLE

 

WHEREAS, Borrower desires
to enter into certain secured financial transactions with Lender for the financing of its business and Lender desires to enter into said
transactions as more specifically described herein.

 

NOW, THEREFORE, in consideration
of the mutual promises contained herein, Borrower and Lender adopt the Preamble as part of this Agreement and Borrower and Lender agree
to be bound legally, further agreeing to the following terms and conditions.

 

SECTION 1:

AGREEMENTS REGARDING THE LOANS

 

1.1       The
Loans.

 

(a)Generally.
Borrower has applied to Lender for Loans and other financial accommodations and, subject to the terms and conditions hereof and the Related
Documents, Lender has agreed to make Loans to Borrower for such purposes as provided for herein. Borrower understands and agrees that:
(i) in granting, renewing, or extending any Loan, Lender is relying upon Borrower's representations, warranties, and agreements, as set
forth in this Agreement and (ii) all such Loans shall be and shall remain subject to the terms and conditions of this Agreement.

 

(b)Revolving
Loans. Lender will make Loans on a revolving basis (individually a “Revolving Loan” and collectively the “Revolving
Loans”) to Borrower until the Revolving Maturity Date in such amounts as Borrower may request in accordance with this Agreement;
provided that the aggregate outstanding principal amount of Revolving Loans may not exceed at any time the lesser of (i)
the $4,000,000.00 and (ii) the Borrowing Base, as calculated using the Borrower’s inventory balances calculated in conjunction with
the closing of its financial statements for each month. Each Revolving Loan shall be in the minimum amount of $10,000.00. Borrower shall
pay interest on the Loans in accordance with Section 1.5 hereof, with payment thereof in arrears to be made on the last day of each calendar
quarter, with the first such payment due on March 31, 2022. Each Revolving Loan shall be repaid in full on the sooner of (a) a determination
that the Revolving Loans exceed the Borrowing Base established based on the most recently provided Borrowing Base Certificate, and (b)
the Revolving Maturity Date. The Revolving Loans shall be evidenced by the Revolving Note. The Revolving Loans may be prepaid at any time
without penalty or fee.

    1  

     

    

 

1.2       Borrowing
Procedures. Whenever Borrower desire to incur a Revolving Loan, it shall give the Lender written or telephonic notice thereof (in
the case of telephonic notice, promptly confirmed in writing to Lender), which notice must be received by the Lender prior to 11:00 a.m.
(Chicago time), at least one (1) Business Day prior to the proposed date such Loan is to be incurred. Each such notice (“Notice
of Borrowing”) shall be irrevocable, include a current Borrowing Base Certificate and Inventory Report, and shall further specify
the aggregate principal amount of the Revolving Loan to be made and the date of the proposed Revolving Loan (which shall be a Business
Day).

Without
in any way limiting the obligation of Borrower to confirm in writing any Notice of Borrowing given by telephone, the Lender may act prior
to receipt of written confirmation without liability upon the basis of such telephonic notice believed by the Lender in good faith to
be from an authorized officer of Borrower entitled to give telephonic notices under this Agreement on behalf of Borrower. In each such
case, the Lender's record of the terms of such telephonic notice shall be conclusive absent manifest error. No later than 5:00 p.m. (Chicago
time) on the date specified in each Notice of Borrowing, the Lender will make available the amount of each Loan requested to be made on
such date in the manner provided below. All amounts relating to any Loan incurred by Borrower shall be made available to Borrower in immediately
available funds by depositing such funds into the Borrower’s designated account.

1.3       Fees
and Expenses. Whether or not the transactions contemplated hereby shall be consummated, Borrower shall assume and pay upon demand
all out-of-pocket expenses incurred by Lender in connection with the preparation of loan documents and the making of the Loan, including
without limitation the following: (a) all closing costs, fees, and disbursements; (b) all fees and expenses of Lender's legal counsel;
and (c) all title examination fees, appraisal fees, and filing and recording fees.

1.4       Recordkeeping.
Lender shall record in its records, the date and amount of each Loan made by the Lender, and each repayment thereof. The aggregate
unpaid principal amount so recorded shall be rebuttable presumptive evidence of the principal amount owing and unpaid on the Notes. The
failure to so record any such amount or any error in so recording any such amount
shall not, however, limit or otherwise affect the obligations of Borrower hereunder or under any Note to repay the principal amount of
the Loan(s) evidenced by such Note together with all interest accruing thereon.

1.5       Interest.

(a)       Interest
on Loan. The unpaid principal amount of the aggregate outstanding balance of the Revolving Loan shall bear interest from the date
of each advance thereof until the Revolving Maturity Date, at the Prime Rate plus 0.75% floating.

(b)       Default
Interest. Notwithstanding the above provisions, if an Event of Default is in existence, all outstanding amounts of principal and,
to the extent permitted by law, all overdue interest, in respect of each and every Loan shall bear interest, payable on demand, at the
Default Rate.

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(c)       Accrual
and Payment of Interest. Interest shall accrue from and including the date provided in Section 1.5(a) above to, but excluding, the
date of any prepayment or repayment thereof, and shall be payable in accordance with Section 1.1 and on demand after maturity or following
an Event of Default. Interest is paid for the period a Loan is outstanding

(d)       Computations
of Interest. All computations of interest on all Loans and other amounts owing hereunder shall be made on the actual number of days
elapsed divided by 365/6 days (i.e., that is, by applying the ratio of the interest rate divided by 365 days (or 366 if applicable), multiplied
by the funds advanced and outstanding, multiplied by the actual number of days the funds advanced are outstanding). 

(e)Maximum Interest
Rate. In no event shall the amount of interest paid hereunder, together with all amounts reserved, charged, or taken by Lender as
compensation for fees, services, or expenses incidental to the making, negotiation, or collection of the Loans evidenced hereby exceed
the maximum rate of interest on the unpaid balance hereof allowable by applicable law. If any sum is collected in excess of the applicable
maximum rate, the excess collected shall be applied to reduce the principal amount of the Indebtedness.

1.6       Late
Charges. If any payment is ten (10) days or more late, Borrower will be charged 5.0% of the payment amount or $100.00, whichever is greater.

1.7       Mandatory
Prepayments.

 

(a)       Sale,
Casualty, or Condemnation. Borrower (or, in the case of subsection (ii) below, if the Lender is holding the proceeds of insurance
or condemnation as additional collateral pursuant hereto or any Related Document, the Lender) shall make a prepayment of the Loans upon
the occurrence of any of the following, at the following times and in the following amounts:

 

(i)       Within
ten (10) days after any sale, transfer or other disposition by Borrower of any tangible asset (other than the sales of Inventory in the
ordinary course of business) valued in excess of $100,000.00 (or of any value during the continuance of an Unmatured Default or Event
of Default), in an amount equal to one hundred percent (100%) of the net cash proceeds of such sale, transfer or other disposition; and

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(ii)       Within
ten (10) days after the receipt of any insurance or condemnation proceeds (or other similar recoveries) by Borrower or by the Lender (to
the extent the Lender is holding the insurance or condemnation proceeds as additional collateral pursuant hereto or any Related Document)
from any casualty loss incurred by Borrower or condemnation of property valued in excess of $100,000.00 (or of any value during the continuance
of an Unmatured Default or Event of Default), in an amount equal to one hundred percent (100%) of such insurance or condemnation proceeds
(or other similar recoveries) net of any collection expenses; provided, that this requirement shall not apply to the extent that Lender
has agreed to allow Borrower to use such proceeds for the repair or restoration of the affected property.

For
the purposes of this Section 1.7, events described herein occurring with respect to any of Borrower’s subsidiaries shall be deemed
to have occurred with respect to Borrower.

(b)       Overadvances.
Borrower shall immediately prepay the Revolving Loans in the event that the outstanding balance of the Revolving Loans exceeds the
lesser of (i) $4,000,000.00, and (ii) the calculated Borrowing Base, as discussed in section 1.1. b. above.

1.8       Term.
This Agreement shall continue thereafter until all Indebtedness of Borrower to Lender has been performed in full and the parties terminate
this Agreement in writing or this Agreement is terminated by Lender as otherwise provided for herein.

 

1.9       Setoff.

 

(a)       Borrower
agrees that, upon the occurrence and during the continuance of any Event of Default, the Lender is hereby authorized, at any time and
from time to time, without notice to the Borrower, (i) to set off against and to appropriate and apply to the payment of any and all Indebtedness
(whether matured or unmatured, fixed or contingent or liquidated or unliquidated) any and all amounts which the Lender is obligated to
pay over to the Borrower (whether matured or unmatured, and, in the case of deposits, whether general or special, time or demand and however
evidenced), and (ii) pending any such action, to the extent necessary, to deposit such amounts with the Lender as Collateral to secure
such Indebtedness, and to dishonor any and all checks and other items drawn against any deposits so held, as the Lender in its sole discretion
may elect.

 

(b)       The
rights of the Lender under this Section 1.9 are in addition to all other rights and remedies which the Lender may otherwise have hereunder
or in law or equity.

 

    4  

     

    

1.10       Application
of Payments. Upon the occurrence of an Unmatured Default or Event of Default, all monies received by Lender pursuant to this Agreement
shall be applied by Lender to any Indebtedness of Borrower (and in whatever order), as Lender shall determine, and the Borrower does
hereby irrevocably agree that the Lender shall have the continuing exclusive right to apply and reapply any and all payments received
at any time or times hereafter, whether with respect to the Collateral or otherwise, against the Borrower's Indebtedness in such manner
as the Lender may deem advisable, notwithstanding any entry by the Lender upon any of its books and records. Lender shall within a reasonable
time period account to Borrower for any sum remaining after the Indebtedness shall be paid in full. Upon written demand of the Borrower,
the Lender shall within a reasonable time period provide a written explanation to the Borrower reasonably describing how such monies
were applied and in what order. Until checks and other instruments delivered to Lender in payment or on account of Borrower's obligations
and the Indebtedness are actually paid to Lender, Borrower agrees that such items constitute conditional payment only. Without limiting
any of Lender's other rights provided herein, Lender may bill Borrower for accrued interest or make advances of principal hereunder for
payment of accrued interest, as and when due. For purposes of this Agreement, all payments on the Loans or other amounts due under this
Agreement or any Related Document shall be made in immediately available funds prior to 12:30 p.m. (Chicago time) on the day when due.
If such payments or other amounts due are received by Lender on a day other than a Business Day or after 12:30 p.m. (Chicago time) on
a Business Day such payments or other amounts shall be deemed to be applied by Lender on account of the Indebtedness on the next Business
Day following receipt in Lender's account.

 

 

SECTION 2:

BORROWER'S REPRESENTATION AND WARRANTIES

 

2.1       Representations
and Warranties. Borrower represents and warrants to Lender as of the date of this Agreement and as of the date of each disbursement
of Loan proceeds:

 

(a)       Organization.
Borrower is a corporation which is duly organized, validly existing, and in good standing under the laws of the State of Delaware. Borrower
has the full power and authority to own its properties and to transact the businesses in which it is presently engaged or presently proposes
to engage. Borrower also is duly qualified as a foreign corporation and is in good standing in all jurisdictions where it conducts business.

 

(b)       Authorization.
The execution, delivery, and performance of this Agreement and all Related Documents by Borrower have been duly authorized by all necessary
corporate action by Borrower (as applicable); do not require the consent or approval of any other Person, regulatory authority or governmental
body; and do not conflict with, result in a violation of, or constitute a default under (i) any provision of its articles of incorporation
or organization, or bylaws or operating agreement, or any agreement or other instrument binding upon Borrower or (ii) any law, governmental
regulation, court decree, or order applicable to Borrower.

 

(c)       Compliance
with Law; Governmental Approvals and Permits. Borrower (i) is in compliance with all applicable provisions of law, and (ii) to the
extent required by applicable law, has, and is current and in good standing with respect to, all governmental approvals, permits, certificates,
inspections, consents and franchises necessary to continue to conduct its operations as it heretofore conducted and to own or lease and
operate the property now owned or leased by it.

 

    5  

     

    

(d)       Solvency.
Borrower has sufficient capital to carry on all operations and transactions in which it engages or is about to engage, is solvent and
will continue to be solvent after the creation of the Security Interest in the Collateral in favor of Lender created by this Agreement
or any Related Document and the making of the Loan pursuant hereto, and is able to pay its debts as they mature.

 

(e)       Financial
Statements; Material Adverse Change; Projections. Except as disclosed in writing by Borrower to Lender, all financial data and other
information furnished by Borrower to Lender, will be taken from the books and records of Borrower and are true, accurate and correct in
all material respects. The Financials fairly present the assets, liabilities and financial condition and results of operations of Borrower
described therein as of the dates thereof and were prepared on a basis consistent with the preparation of the Borrower’s financial
statements for prior periods; there are no omissions or other facts or circumstances which are or may be material as of the date of the
Financials, and there has been no material and adverse change in the Collateral, assets, liabilities or financial condition of Borrower
since the date of the Financials; there exist no outstanding advances to any Person not reflected in the Financials; except as set forth
in the Financials, there are no actions or proceedings which are pending, or, to the best of Borrower's knowledge, threatened against
Borrower; to the best of Borrower’s knowledge, there are no actions or proceedings which are pending or threatened against any other
Person which might result in any material adverse change in Borrower’s financial condition or materially and adversely affect its
operations, its assets or the Collateral; except as stated in the Financials Borrower has no other liabilities and has not guaranteed
the obligations of any other Person. Any financial projections delivered to Lender by or on behalf of Borrower were, at the time of delivery
to Lender, reasonable forecasts based upon good business judgment and all facts and information known to Borrower and its consultants.

 

(f)       No Default.
Borrower is not in default, nor, to the best of Borrower’s knowledge, is any third party in default, under or with respect to any
contract, agreement, lease or other instrument to which Borrower is a party. No Unmatured Default or Event of Default has occurred and
is continuing.

 

(g)       Legal
Effect. This Agreement and all of the Related Documents constitute legal, valid and binding obligations of Borrower enforceable against
Borrower in accordance with their respective terms in all applicable jurisdictions.

 

(h)       Properties.
Except for (i) Security Interests in favor of Lender created by this Agreement or any Related Document, (ii) Security Interests, claims
and other encumbrances as set forth on the attached Schedule 2.1(h), and (iii) property tax liens for taxes not presently due and
payable, Borrower owns and has good title to all of Borrower's properties and assets free and clear of all Security Interests, claims
and other encumbrances, and has not executed any Security Agreements or financing statements relating to such properties. All of Borrower's
properties are titled in Borrower's legal name. Borrower has authority to encumber the Collateral in the manner and form herein provided.
The Borrower shall defend and protect the Collateral against and from all claims and demands of all Persons at any time claiming any
interest therein adverse to the Lender. No financing statement or other document similar in effect covering all or any part of the Collateral
is on file in any recording or filing office, other than those identifying the Lender as the secured party or as set forth in Schedule
2.1(h).

    6  

     

    

 

(i)       Litigation
and Claims. No litigation, proceeding, suit, action, or claim against Borrower is pending or threatened, and no other event has occurred
which may adversely affect Borrower's financial condition, or operations of the Borrower, or properties, including the Collateral, other
than litigation, proceedings, suits, actions, claims, or other events, if any, that have been disclosed to and acknowledged by Lender
in writing.

 

(j)       Tax Matters.
Borrower has duly filed or properly extended all federal, state and other governmental tax returns which it is required by law to file;
all taxes and other sums which may be due to the United States, any state or other governmental authority have been fully paid (including,
without limitation, all reasonable estimations of penalties or late payment charges or interest).

 

(k)       Lien Priority.
The Security Interest in favor of the Lender provided in this Agreement or any Related Document is a valid and perfected first priority
security interest in the Collateral except as set forth in Schedule 2.1(h), and all filings and other actions necessary to perfect such
Security Interest have been duly taken and all such filings hereof reasonably identify the Collateral. Unless otherwise disclosed to Lender
in writing on the attached Schedule 2.1(h), Borrower has not entered into or granted any Security Agreements, or permitted the filing
or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing repayment of the Loan or
other obligations hereunder.

 

(l)       Location
of Borrower's Offices, Records and Collateral. All places of business, and if Borrower has more than one place of business, an indication
of its chief executive office, and the office or offices where Borrower keeps its records concerning the Collateral is located at those
locations set forth on the attached Schedule 2.1(l) which shall include a listing of all previous locations for the past five (5)
years and a listing of any Collateral locations that are not places of business. If any change in the place or places of business of the
Borrower, or its chief executive office, or the office where the Borrower keeps its records concerning the Collateral will occur, the
Borrower shall provide the Lender with, at Borrower's sole cost and expense, such financing statements and other documents as the Lender
shall request in connection with such change in order to maintain Lender's first priority perfected security interest in the Collateral.

 

(m)       Names.
The Borrower’s exact legal name is as set forth in the first paragraph of this Agreement. Borrower has not used in the past five
(5) years, and shall not hereafter use, any name other than the name set forth in the first paragraph of this Agreement (including, without
limitation, any tradename, assumed name, any fictitious or any similar name) without first giving Lender thirty (30) days prior written
notice.

 

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(n)       Information.
All information heretofore or contemporaneously herewith furnished by Borrower to Lender for the purposes of or in connection with this
Agreement or any transaction contemplated hereby is, and all information hereafter furnished by or on behalf of Borrower to Lender will
be, true and accurate in every material respect on the date as of which such information is dated or certified; and none of such information
is or will be incomplete by omitting to state any material fact necessary to make such information not misleading.

 

(o)       Employee
Benefit Plans. Each employee benefit plan as to which Borrower may have liability complies with all applicable requirements of law
and regulations, and (i) no “Reportable Event” nor “Prohibited Transaction” (as defined in ERISA) has occurred
with respect to any such plan, (ii) Borrower has not withdrawn from any such plan or initiated steps to do so, (iii) no steps have been
taken to terminate any such plan, and (iv) there are no unfunded liabilities other than those previously disclosed to Lender in writing.

 

(p)       Representations
and Warranties Concerning Inventory. With respect to the Inventory, Borrower represents and warrants to Lender that, unless Borrower
otherwise notifies Lender pursuant to a writing in form and substance acceptable to Lender in its reasonable determination and prior to
Lender's crediting such Inventory as part of the Borrowing Base, that: (i) All Inventory represented by Borrower to be Eligible Inventory
for purposes of this Agreement conforms to the requirements of the definition of Eligible Inventory; (ii) All Inventory values listed
on schedules delivered to Lender will be true and correct, subject to immaterial variance; (iii) The value of the Inventory will be determined
based on the values thereof reflected on the Borrower’s most recent quarterly balance sheet, prepared and valued on a consistent
accounting basis; (iv) Except as agreed to the contrary by Lender in writing, all Eligible Inventory is now and at all times hereafter
will be in Borrower's physical possession and shall not be held by others on consignment, sale on approval, or sale or return; (v) Except
as reflected in the Inventory schedules delivered to Lender, all Eligible Inventory is now and at all times hereafter will be of good
and merchantable quality, free from defects; (vi) Eligible Inventory is not now and will not at any time hereafter be stored with a bailee,
warehouseman, or similar party without Lender's prior written consent, and, in such event, Borrower will concurrently at the time of bailment
cause any such bailee, warehouseman, or similar party to issue and deliver to Lender, in form acceptable to Lender, warehouse receipts
in Lender's name evidencing the storage of Eligible Inventory.

 

2.2       Survival
of Representations and Warranties. Borrower understands and agrees that Lender is relying upon the above representations and warranties
in making the Loans to Borrower. Borrower agrees that the foregoing representations and warranties shall be continuing in nature and shall
remain in full force and effect until, unless otherwise specified herein, such time as Borrower's Loans and the Notes shall be paid in
full, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur.

 

    8  

     

    

SECTION 3:

BORROWER'S COVENANTS

 

3.1       Borrower's
Affirmative Covenants. Borrower covenants and agrees with Lender that, while this Agreement is in effect, Borrower will:

 

(a)       Notice
of Material Events. Notify Lender as promptly as possible, and in any event within five (5) Business Days after the Borrower has knowledge
thereof, of (i) the occurrence of any Unmatured Default or Event of Default, (ii) any action, litigation, claim, proceeding, or dispute
(A) against or affecting the Collateral, (B) against or affecting Borrower seeking the payment of money by Borrower, whether in the form
of damages, liens, penalties or costs, in an amount in excess of $25,000.00, or (C) in any way regarding the construction, creation, operation
or use of the Collateral (regardless of the amount claimed therein), (iii) any action, litigation, claim, proceeding or dispute involving
Borrower and any court, board, commission, agency or instrumentality of any federal, state or local government or any agency or subdivision
thereof, which if adversely resolved could be reasonably expected to result in a material adverse effect on Borrower's business, assets,
operations or financial condition, (iv) any material adverse change in Borrower's financial condition or operations, or (v) any event,
occurrence or other matter which has had a materially adverse effect or which could have a materially adverse effect on any part of the
Collateral. In addition, Borrower shall notify Lender as promptly as possible, and in any event within five (5) Business Days after the
Borrower has knowledge thereof, if any Inventory has become obsolete, unsaleable, damaged or otherwise not qualified as Eligible Inventory
(each, a “Material Collateral Event”).

 

(b)       Financial
Records. Maintain its books and records in accordance with GAAP, applied on a consistent basis, and permit Lender to examine and audit
Borrower's books and records at all reasonable times.

 

(c)       Financial
Statements and Borrowing Base Certificate. Furnish Lender with, as soon as available, but in no event later than 5:00p.m. (Chicago
time) by the tenth Business Day of each calendar month, an Inventory Report and Borrowing Base Certificate for the previous month, prepared
and certified as true and correct by Borrower's chief financial officer or other officer or person acceptable to Lender. All financial
reports required to be provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent basis, and certified
by Borrower as being true and correct. In addition, in connection with (i) each Revolving Loan advance, and (ii) any Material Collateral
Event, Borrower shall furnish Lender with a current Borrowing Base Certificate and Inventory Report.

 

(d)       Additional
Information. Furnish such additional information and statements, lists of assets and liabilities, agings of receivables and payables,
inventory schedules, budgets, forecasts, tax returns, and other reports with respect to Borrower's financial condition and business operations
as Lender may request from time to time.

 

    9  

     

    

(e)       Insurance.
Maintain, or cause to be maintained, all risk casualty insurance, public liability insurance, and such other insurance as Lender may
require with respect to Borrower's properties and operations, in form, amounts, coverages and with insurance companies reasonably acceptable
to Lender, but in all cases with respect to casualty insurance, in amounts not less than the full replacement value of the property covered.
Borrower, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory
to Lender, including stipulations that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice
to Lender. In connection with all policies covering assets in which Lender holds or is offered a Security Interest for the Loan, Borrower
will provide Lender with such loss payable or other endorsements as Lender may require.

 

(f)       Other
Agreements. Pay its indebtedness and liabilities in accordance with good business practices and otherwise comply with all terms and
conditions of all other agreements, whether now or hereafter existing, between Borrower and any other party and notify Lender immediately
in writing of any default in connection with any other such agreements.

 

(g)       Loan Proceeds.
Use all Loan proceeds solely as provided for herein.

 

 (h)         Taxes, Charges and Liens.

 

(i)       Pay and discharge
when due all of its indebtedness and obligations, including without limitation, all assessments, taxes, governmental charges, levies and
liens, of every kind and nature, imposed upon any portion of the transactions contemplated hereby, or on Borrower, the Collateral or Borrower’s
other properties, income, or profits, prior to the date on which penalties would attach, and all lawful claims that, if unpaid, might
become a lien or charge upon any of Borrower's properties, income, or profits. Provided, however, Borrower will not be required to pay
and discharge any such assessment, tax, charge, levy, lien or claim (collectively the “Charges”) so long as: (A) the legality
of the same shall be promptly contested in good faith by appropriate proceedings; (B) Borrower shall have deposited with Lender cash,
a sufficient corporate surety bond or other security satisfactory in form and substance to Lender in an amount adequate to provide for
the release of such Charge plus any interest, costs, attorneys' fees or other amounts that could accrue as a result of foreclosure or
sale of the Collateral; (C) such contest operates to suspend collection of the Charge; and (D) none of the Collateral is subject to forfeiture
or loss of any Security Interest (or the priority thereof) by reason of the institution or prosecution of such contest as determined by
Lender. Borrower, upon demand of Lender, will furnish to Lender evidence of payment of the indebtedness and obligations, including any
assessments, taxes, charges, levies, liens and claims and will authorize the appropriate obligor or governmental official to deliver to
Lender at any time a written statement of any indebtedness and obligations including any Charges.

 

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(ii)       Cause all claims
for labor done and materials and services furnished in connection with the Collateral to be fully paid and discharged in a timely manner.

 

(i)       Performance.
Perform and comply with all terms, conditions, and provisions set forth in this Agreement, the Related Documents, and in all other instruments
and agreements between Borrower and Lender in a timely manner.

 

(j)       Reserved.

 

(k)       Inspection.
Permit employees or agents of Lender at any reasonable time to inspect any and all Collateral and Borrower's other properties and to examine
or audit Borrower's books, accounts, and records and to make copies and memoranda of Borrower's books, accounts, and records. If Borrower
now or at any time hereafter maintains any records (including without limitation computer generated records and computer software programs
for the generation of such records) in the possession of a third party, Borrower, upon request of Lender, shall notify such party to permit
Lender free access to such records at all reasonable times and to provide Lender with copies of any records it may request, all at Borrower's
expense. In addition to any rights provided for herein, Lender shall be permitted to have a field audit performed on Borrower's books
and records on an annual basis, at Borrower's sole expense.

 

(l)       Additional
Assurances. Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, financing statements,
instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure (as contemplated
herein or in any of the Related Documents) the Indebtedness and to perfect all Security Interests.

 

(m)       Defense
of Title. Forever defend the title to the Collateral against the claims of all Persons. In the event any action or proceeding is commenced
that questions Borrower's title or the interest of Lender under any Security Agreement, Borrower shall defend the action at Borrower's
expense. Borrower may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
represented in the proceeding by counsel of Lender's own choice, and Borrower will deliver, or cause to be delivered, to Lender such instruments
as Lender may request from time to time to permit such participation.

 

 

3.2       Borrower's
Negative Covenants. Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower shall not, without
the prior written consent of Lender, or as otherwise provided for herein:

 

(a)       Transfers
and Liens. Except in connection with the Libertyville Loans, sell, transfer, mortgage, assign, pledge, lease, grant a Security Interest
in, or create, suffer or permit any encumbrance of, any of Borrower's assets (other than the sale of inventory by Borrower in the ordinary
course of business).

 

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(b)       Continuity
of Operations. (i) Engage in any business activities substantially different than those in which Borrower is presently engaged, (ii)
change its name without giving Lender thirty (30) days prior written notice, (iii) change its state of organization, (iv) change its place
of business, its chief executive office, or its mailing address, (v) change its organizational identification number (if it has one),
or (vi) cease operations, liquidate, merge or consolidate with any other entity.

 

(c)       Change
in Ownership; Amend Organizational Documents. Allow any change in ownership of Borrower or the classification of such ownership interests,
or amend, modify or supplement Borrower’s organizational documents or agreements.

 

(d)       Loans,
Acquisitions and Indebtedness. (i) Loan money or assets, (ii) purchase or acquire any interest in any other Person, or (iii) incur,
assume or have outstanding any obligation as surety, borrower or guarantor except (A) Indebtedness owing to Lender, (B) Indebtedness or
liabilities of a nature existing on the date hereof and disclosed in the Financials, including the Libertyville Loans and capitalized
equipment leases, and (C) trade indebtedness incurred in the ordinary course of business and not inconsistent with prior practices.

 

(e)       Distributions.
(i) Make any distribution to partners, shareholders or members in their capacity as such, or (ii) pay any dividends on Borrower's stock,
if any, or (iii) purchase or retire any of Borrower's outstanding shares, partnership interests or membership interests or otherwise
alter or amend Borrower's capital structure.

 

(f)       Investments.
Make any investment in or extend credit to any Person, other than trade credit on customary terms.

 

(g)       Transactions
with Affiliates. Enter into, or be a party to, any transaction or arrangement, including, without limitation, the purchase, sale,
lease or exchange of property or the rendering of any service, with any of its Affiliates except after prior written notice to Lender
and then only in the ordinary course of and pursuant to the reasonable requirements of Borrower's business and upon fair and reasonable
terms no less favorable to the Borrower than would be obtained in a comparable arm's-length transaction with any Person or entity not
its Affiliate. Notwithstanding the foregoing, so long as such Affiliate as granted a Security Interest in favor of Lender with respect
to the Indebtedness of Borrower, transactions with such Affiliate shall be permitted with notice to Lender.

 

(h)       Salary.
Increase any regular or bonus compensation to, or confer any other economic benefit on, any of the officers, directors, members, partners,
or shareholders of the Borrower outside the ordinary course of business.

 

(i)       Security
Interests. Allow any of its assets to become subject to any Security Interest other than in favor of Lender (other than the liens
identified on Schedule 2.1(h)).

 

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(j)       Contracts.
Enter into any contract, license or agreement with respect to or in any way relating to the Collateral on terms other than those customarily
contained in similar contracts, licenses or agreements between unrelated parties.

 

(k)       Libertyville
Loan. Amend the material terms of the Libertyville Loans such that Borrower’s financial obligations thereunder are materially
more onerous than on the date hereof, or in any way in which Borrower would be permitted to (i) draw more funds thereunder than available
on the date hereof, or (ii) draw funds more frequently than on the date hereof. Borrower shall promptly provide copies of all amendments
to the Libertyville Loans to Lender.

 

SECTION 4:

ADDITIONAL AGREEMENTS REGARDING LOANS AND COLLATERAL

 

4.1       Distribution
of Casualty Insurance, Eminent Domain and Condemnation Proceeds.

 

(a)       Application
of Insurance Proceeds. Borrower shall promptly notify Lender of any loss or damage to the Collateral estimated to equal or exceed
$100,000.00. Lender may make proof of loss if Borrower fails to do so within fifteen (15) days of the casualty. Whether or not Lender's
Collateral is impaired, Lender may, at its election, apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting
the Collateral, or the restoration and repair of the Collateral. If Lender elects to apply the proceeds to restoration and repair, Borrower
shall repair or replace the damaged or destroyed Collateral in a manner satisfactory to Lender and in such case Lender shall, upon satisfactory
proof of such expenditure and the lien free completion of such restoration or repair, pay or reimburse Borrower from the proceeds for
the reasonable cost of restoration or repair if no Unmatured Default or Event of Default exists hereunder. Any proceeds which have not
been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Collateral shall
be applied to the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to
Borrower.

 

(b)       Application
of Net Eminent Domain and Condemnation Proceeds. If all or any part of the Collateral is condemned by eminent domain proceedings or
by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds
of the award be applied to the Indebtedness or the repair or replacement of the Collateral. The net proceeds of the award shall mean the
award after payment of all costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation or eminent domain
proceeding or purchase in lieu thereof.

 

4.2       Right
to Advance Funds. When any event occurs that Lender determines may endanger the fulfillment of any condition or covenant in this
Agreement, Lender may require Borrower to furnish, within ten (10) days after delivery of a written request, adequate security to eliminate,
reduce, or indemnify Lender against such event. In addition, upon such occurrence, Lender may advance funds or agree to undertake to
advance funds to any party to eliminate, reduce, or indemnify Lender against, such danger. All sums paid by Lender pursuant to such agreements
or undertakings shall be for Borrower's account and shall be without prejudice to Borrower's rights, if any, to receive such funds from
the party to whom paid. All sums expended by Lender in the exercise of its option to protect Lender's interests shall be payable to Lender
on demand together with interest from the date of the Loan at the Default Rate. In addition, any advance of funds under this Agreement
including, without limitation, direct disbursements to any third party of sums due, shall be deemed to have been expended by or on behalf
of Borrower and to have been secured by the Security Agreements.

 

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SECTION 5:

CONDITIONS PRECEDENT

 

5.1       Delivery
of Documents. In addition to any other conditions precedent set forth herein or in any Related Document, Lender's obligation to make
any Loan is subject to, in addition to delivery of the executed Agreement and Notes and payment of all commitment fees and costs and expenses
of Lender (including attorneys' fees), delivery of the following documents, each to be in form and substance satisfactory to Lender:

 

(a)       Security
Agreement. The duly executed Commercial Security Agreement of Borrower (and each Grantor as applicable, including Solésence,
LLC) dated of even date herewith, together with all documents and instruments deemed necessary by Lender to enable Lender to perfect
its Security Interests in any and all of the Collateral granted therein including, but not limited to, the Control Agreement.

 

(b)       Blocked
Account Agreement. The duly executed Blocked Account Agreement among Lender, Borrower and Libertyville Bank, together with all documents
and instruments deemed necessary by Lender with respect thereto, including all account documentation related to the Collection Account.

 

(c)       Insurance.
Evidence of all insurance required under this Agreement, issued in an amount and by a company acceptable to Lender, containing a loss
payable or other endorsement satisfactory to Lender insuring Lender as loss payee, together with such other endorsements as may be required
by Lender.

 

(d)       Organizational
Documents and Agreements, Resolutions, Articles, By-Laws, etc. Certified copies of all documents, agreements or instruments pertaining
to Borrower’s incorporation, organization, existence operation or governance, together with certified copies of such documents,
agreements or instruments for Borrower's constituents and board of director or other appropriate resolutions, certificates of incumbency
and good standing certificates for all parties, as appropriate.

 

(e)       Approvals
and Consents.Approval of all necessary governmental or regulatory agencies which may have jurisdiction over (i) the Borrower,
any of Borrower's constituents, any Grantor or any of the Collateral or (ii) Lender or its ability to enforce its rights under this Agreement
or any of the Related Documents, and all necessary third party consents.

 

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(f)        Landlord’s
Agreements. Within sixty (60) days of the date hereof, the duly executed Landlord’s Agreement from each of Borrower’s
landlords.

 

(g)       Libertyville
Loans. Copies of the documents evidencing the Libertyville Loans, together with a subordination agreement acceptable to Libertyville
Bank and Lender.

 

(h)       Other.
 Such other documents as the Lender may request.

 

5.2       Certificates;
No Unmatured Defaults or Events of Default. In addition to the satisfaction of the conditions precedent set forth in Section 5.1,
and any condition precedent set forth in any Related Document, Lender's obligation to make any Loan is subject to:

 

(a)       Certificate.
Delivery of a certificate from the chief executive officer of Borrower dated the date of the requested Loan, certifying that (i) each
representation and warranty contained herein or in any of the Related Documents is true and correct as if made on the date of such certificate,
and (ii) no Unmatured Default or Event of Default has occurred and remains continuing hereunder or under any Related Document.

 

(b)       No Unmatured
Defaults or Events of Default. No Unmatured Default or Event of Default having occurred and be continuing hereunder or under any Related
Document.

 

(c)       Borrowing
Base Certificate and Inventory Report. Lender shall have received the most recent Borrowing Base Certificate and Inventory Report
required to be delivered pursuant to this Agreement, which, in connection with the initial Loans made hereunder at closing, shall show
availability in an amount acceptable to Lender (after giving effect to the Revolving Loans to be made to Borrower at closing).

 

 

SECTION 6:

EVENTS OF DEFAULT AND REMEDIES

 

6.1       Events
of Default. Each of the following (an “Event of Default”) shall constitute an Event of Default under this Agreement:

 

(a)       Default
on Indebtedness. Failure of Borrower to make any payment within ten (10) days of when due hereunder, under the Note, or under any
Related Document.

 

(b)       Other Defaults.
Failure of Borrower or any Grantor to comply with or to perform when due any other term, obligation, covenant or condition contained
in this Agreement or in any of the Related Documents, or failure of Borrower or any Grantor to comply with or to perform any other term,
obligation, covenant or condition contained in any other agreement between Lender and Borrower, and/or Grantor.

 

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(c)       Default
in Favor of Third Parties. Should Borrower or any Grantor default under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or Person that may materially affect any of Borrower's or
any Grantor's property or Borrower's or any Grantor's ability to repay the Loan, as applicable, or perform their respective obligations
under this Agreement or any of the Related Documents. Any default or event of default under any of the Libertyville Loans or
any loans from Lender’s affiliates.

 

(d)       False
Statements. Any warranty, representation, or statement made or furnished to Lender by or on behalf of Borrower or any Grantor under
this Agreement or the Related Documents is untrue, misleading or incorrect in any material respect, either now or at the time made or
furnished or any schedule, certificate, statement, report, document, financial data, notice, or writing furnished at any time by the
Borrower to the Lender is untrue, misleading or incorrect in any material respect, on the date as of which the facts set forth therein
are stated or certified.

 

(e)       Defective
Collateralization; Material Agreements. (i) This Agreement or any of the Related Documents (i) ceases to be in full force and effect
(including failure of any Security Agreement to create a valid and perfected Security Interest) at any time and for any reason or (ii)
shall be, or sought to be, held invalid by any court of law, government or public ministry, shall be in default, or any Person shall
seek to materially limit, modify or revoke such agreement.

 

(f)       Insolvency;
Dissolution. Borrower shall be unable to pay its debts as they mature. The dissolution or termination of Borrower's or any Grantor's
existence as a going business, insolvency, appointment of a receiver for any part of Borrower's or any Grantor's property, any assignment
for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency
laws by or against Borrower or any Grantor, other than an involuntary proceeding which is dismissed, stayed or indemnified against within
forty-five (45) days of the commencement of such proceeding.

 

(g)       Creditor
Proceedings. Commencement of foreclosure, whether by judicial proceeding, self-help, repossession or any other method, by any creditor
of Borrower or any creditor of any Grantor against any Collateral securing the Indebtedness, including, without limitation, a garnishment,
attachment, levy, seizure, writ or distress warrant or the like (collectively, a “creditor proceeding”). However, this Event
of Default shall not apply to such creditor proceeding if Section 3.1(h) applies thereto and is being contested in accordance therewith.

 

(h)       Judgments.
A judgment or order for the payment of money in excess of One Hundred Thousand Dollars ($100,000.00) shall be rendered against Borrower
or any Grantor and either (i) enforcement proceedings shall have been commenced by any creditor under such judgment or order, or (ii)
a stay of such judgment or order shall not be in effect for any period of thirty (30) consecutive days or (iii) Borrower or such Grantor,
as applicable, have not taken the steps provided for in Section 3.1(h).

 

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(i)       Material
Adverse Change. Lender shall have determined in good faith (which determination shall be conclusive) that (i) a material adverse
change has occurred in the business, operations or financial condition of the Borrower, (ii) the prospect of payment or performance of
any obligation or agreement of the Borrower hereunder or under any of the Notes is materially impaired or (iii) a material adverse change
has occurred in the condition, value or operation of any of the Collateral.

 

6.2       Effect
of an Unmatured Default or an Event of Default. If any Unmatured Default or Event of Default shall occur, all commitments and obligations
of Lender under this Agreement or the Related Documents or any other agreement between Lender and the Borrower immediately will terminate
and with respect to an Event of Default, at Lender's option, all Loans immediately will become due and payable, all without notice of
any kind to Borrower, except that in the case of an Event of Default of the type described in subsection 6.1(f) above, such acceleration
shall be automatic and not optional. Upon the occurrence of any Event of Default and at any time thereafter, Lender may, at its option,
but without any obligation to do so, and in addition to any other right Lender may have, do any one or more of the following without notice
to any party: (a) institute appropriate proceedings to enforce the performance of this Agreement; (b) withhold further disbursement of
any Loan hereunder or under any other agreement with Borrower; (c) expend funds necessary to remedy the Unmatured Default or Event of
Default; (d) take possession of the Collateral and operate same; (e) accelerate maturity of the Notes and/or Indebtedness and demand payment
of all sums due under the Notes and/or Indebtedness; (f) bring an action on the Notes and/or Indebtedness; (g) foreclose on its Security
Interests in any manner available under law; and (h) exercise any other right or remedy which it has under the Notes or Related Documents,
or which is otherwise available at law or in equity or by statute.

 

 

SECTION 7:

DEFINITIONS; MISCELLANEOUS PROVISIONS

 

7.1       Definitions.
The following words shall have the following meanings when used in this Agreement. Terms not otherwise defined in this Agreement shall
have the meanings attributed to such terms in the Illinois Uniform Commercial Code to the extent the same are used or defined therein
(810 ILCS 1/1 et seq. as amended from time to time, the “Uniform Commercial Code” or “UCC”). All references
to dollar amounts shall mean amounts in lawful money of the United States of America.

 

Affiliate. The
word “Affiliate” means, with respect to any Person (the “subject”), any Person (i) which directly or indirectly
controls or is controlled by, or is under common control with, the subject, (ii) which beneficially owns or holds 5% or more of the equity
interest of the subject, or (iii) 5% or more of the equity interest of which is beneficially owned or held by the subject or its Affiliates.
The term “control” means the possession, directly or indirectly, individually or in concert with others, of the power to
direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract
or otherwise.

 

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Agreement. The
word “Agreement” means this Business Loan Agreement, including the Preamble, as this Business Loan Agreement may be amended
or modified from time to time, together with all exhibits and schedules attached to this Business Loan Agreement from time to time.

 

Blocked Account Agreement.
The words “Blocked Account Agreement” mean the Control Agreement for the Collection Account among Borrower, Lender and Libertyville
Bank.

 

Borrower. The word
“Borrower” has the meaning set forth in the initial paragraph of this Agreement.

 

Borrowing Base.
The words “Borrowing Base” mean an amount equal to fifty percent (50%) percent of all Eligible Inventory (net of such reserves
and allowances as the Lender deems necessary in its discretion).

 

Borrowing Base Certificate. The words
“Borrowing Base Certificate” mean a certificate, certified by an appropriate officer of Borrower to be true and complete,
setting forth the Borrowing Base as of the date on which that certificate is prepared, and otherwise being in form and detail satisfactory
to the Lender.

 

Business Day. The
words “Business Day” mean any day of the year on which Lender is open for business in Evanston, Illinois.

 

Charges. The word
“Charges” has the meaning set forth in Section 3.1(h).

 

Collateral. The
word “Collateral” means and includes without limitation all property and assets granted as collateral security for any portion
of the Indebtedness, whether real or personal property, whether granted directly or indirectly, whether granted now or in the future,
and whether granted in the form of a security interest, mortgage, deed of trust, assignment, pledge, chattel mortgage, chattel trust,
factor's lien, equipment trust, conditional sale, trust receipt, lien, charge, lien or title retention contract, lease or consignment
intended as a security device, or any other security or lien interest whatsoever, whether created by law, contract, or otherwise.

 

Control Agreement.
The words “Control Agreement” mean an Account Control Agreement among Borrower, Lender and Libertyville Bank providing Lender
with springing control over a depository account maintained by Borrower at Libertyville Bank in form and substance acceptable to Lender.

 

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Default Rate.
The words “Default Rate” mean the rate of interest then applicable to the Loan plus five percent (5.0%) per annum.

 

Eligible Inventory.
 The words “Eligible Inventory” mean Inventory of which Borrower or any other approved Grantor is the sole owner and in
which the Lender has an enforceable and duly perfected first priority Security Interest, except:

(i)              any Inventory which is not raw materials, work in process, or finished goods;

(ii)             any sample or demonstration Inventory;

(iii)            any Inventory which has been altered or damaged, or is outdated, second-grade, second-hand, out-of-style, discontinued, or reconditioned
goods, sample or demonstration goods;

(iv)            any Inventory which is not in good condition, fails to meet all standards imposed by any governmental agency or department or division
thereof, having regulatory authority over such goods, their use or sale;

(v)            any Inventory which is not owned by Borrower or any other approved Grantor or which is not currently useable or salable in the
ordinary course of their respective businesses;

(vi)            any Inventory which Lender deems to be unsaleable or its value is reduced due to age, type, category or quantity;

(vii)            any Inventory located at any location not shown on Schedule 2.1(l) or located outside the continental United States of America;

(viii)         any Inventory which has remained on hand for more than three hundred sixty (360) days;

(ix)            any item of Inventory that has been consigned (unless the consignee has issued and delivered, in form and substance reasonably
satisfactory to Lender, a written agreement recognizing Lender’s prior rights in the Inventory and acknowledging that such consignee
is holding such Inventory for the benefit of Lender);

(x)             any Inventory located at a leased location with respect to which the lessor thereof has not previously waived or subordinated in
writing its statutory and other lien rights and remedies, in form and substance reasonably satisfactory to Lender;

(xi)            any Inventory that is subject to any Security Interest securing payment or performance of any obligation other than the Indebtedness
owing to Lender or Affiliate of Lender;

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(xii)             any Inventory that is described in any financing statement naming any Person other than the Lender or an Affiliate of Lender,
as the secured party of record; or

(xiii)            any Inventory purchased by Borrower in or as a part of a “bulk” transfer or sale of assets, unless Borrower and the
seller of such Inventory have complied with all applicable bulk sales or bulk transfer laws.

Event of Default.
The words “Event of Default” have the meaning set forth in Section 6.1.

 

Financials. The
word “Financials” means those financial statements delivered to Lender by or on behalf of the Borrower.

 

GAAP. The word
“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board (or any successor authority) that are applicable to the circumstances as of the date of determination, but for the calculation of
any financial covenant or ratio, GAAP means such principals as in effect as of the date of this Agreement.

 

Grantor. The word
“Grantor” means, without limitation, each and all of the Persons granting a Security Interest in any Collateral for the Indebtedness,
including without limitation all Borrowers granting such a Security Interest.

 

Indebtedness. The
word “Indebtedness” means and includes without limitation all Loans, together with all other obligations, debts and liabilities
of Borrower to Lender, or any one or more of them, of any and every kind and nature, as well as all claims by Lender against Borrower,
or any one or more of them relating to or arising from the transactions contemplated by this Agreement; whether now or hereafter existing,
voluntary or involuntary, due or not due, absolute or contingent, liquidated or unliquidated whether arising by operation of law, under
this Agreement, or acquired by Lender from any other source; whether Borrower may be liable individually or jointly with others; whether
Borrower may be obligated as a guarantor, surety, or otherwise; whether recovery upon such Indebtedness may be or hereafter may become
barred by any statute of limitations; and whether such Indebtedness may be or hereafter may become otherwise unenforceable.

 

Inventory. The word “Inventory”
means all “inventory” as such term is defined in the UCC, including, without limitation, all materials, inventories, and finished
goods, wherever located, whether in transit, held by others for Borrower’s account, covered by warehouse receipts, purchase orders
and contracts, or in the possession of any carriers, forwarding agents, truckers, warehousemen, vendors, customers on a consignment basis
or other Persons, including, without limitation, all raw materials, work in process, finished merchandise, supplies, goods, stores, incidentals,
office supplies and packaging materials.

 

Inventory Report.
The words “Inventory Report” means a report from Borrower setting forth the details for each item of Inventory, in form and
substance required by Lender. The current form of the Inventory Report is attached hereto as Exhibit A.

 

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Lender. The word
“Lender” has the meaning set forth in the initial paragraph of this Agreement.

 

Libertyville Bank.
The words “Libertyville Bank” mean Libertyville Bank & Trust Company, its successors and assigns.

 

Libertyville
Loans. The words “Libertyville Loans” mean, collectively, (a) the $500,000.00 letter of credit made available by Libertyville
Bank to Borrower pursuant to the Business Loan Agreement (Asset Based) dated December 21, 2021, (b) the $300,000.00 line of credit made
available by Libertyville Bank to Borrower pursuant to the Business Loan Agreement dated February 24, 2017 as it may be amended (as permitted
hereby) or extended and the (c) $30,000.00 line of credit made available by Libertyville Bank to Borrower pursuant to the Business Loan
Agreement dated July 7, 2014 as it may be amended (as permitted hereby) or extended

 

Loan. The word
“Loan” or “Loans” means any and all loans and financial accommodations from Lender to Borrower related to or arising
out of the loan transactions contemplated by this Agreement, whether now or hereafter existing, and however evidenced, including without
limitation those loans and financial accommodations described on any exhibit or schedule attached to this Agreement from time to time.

 

Material Collateral
Event. The words “Material Collateral Event” have the meaning set forth in Section 3.1(a).

 

Maturity Date.
The words “Maturity Date” mean the Revolving Maturity Date, as applicable.

 

Note. The word
“Note” means the Revolving Note, together with all renewals of, extensions of, modifications of, refinancings of, consolidations
of, and substitutions for such promissory notes.

Notice of Borrowing.
The words “Notice of Borrowing” have the meaning set forth in Section 1.2.

 

Person. The word
“Person” means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture,
joint stock company, limited liability company, government (or any instrumentality, division, agency, body or political subdivision thereof)
or other entity of any kind.

 

Related Documents.
The words “Related Documents” mean and include without limitation all promissory notes, credit agreements, loan agreements,
guaranties, security agreements, mortgages, deeds of trust, collateral assignments, financing statements, and all other instruments, agreements
and documents, whether now or hereafter existing, executed in connection with the Indebtedness.

 

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Revolving Loan.
The words “Revolving Loan” have the meaning set forth in Section 1.1(b).

 

Revolving Maturity
Date. The words “Revolving Maturity Date” mean March 31, 2024.

 

Revolving Note.
The words “Revolving Note” mean the Promissory Note (Revolving Note) from Borrower to Lender dated of even date herewith in
the principal amount of $4,000,000.00, together with all renewals of, extensions of, modifications of, refinancings of, consolidations
of, and substitutions for such promissory note.

 

Security Agreement.
The words “Security Agreement” mean and include without limitation any agreements, promises, covenants, arrangements, understandings
or other agreements, whether created by law, contract, or otherwise, evidencing, governing, representing, or creating a Security Interest.

 

Security Interest.
The words “Security Interest” mean and include without limitation any type of collateral security, whether in the form of
a lien, charge, mortgage, deed of trust, assignment, pledge, chattel mortgage, chattel trust, factor's lien, equipment trust, conditional
sale, trust receipt, lien or title retention contract, lease or consignment intended as a security device, or any other security or lien
interest, claim or encumbrance whatsoever, whether created by law, contract, or otherwise.

 

Unmatured Default.
The words “Unmatured Default” mean an event or circumstance which with the giving of notice, the passage of time, or both,
would, unless cured or waived, constitute an Event of Default.

 

7.2       Other
Terms. Any accounting term used in this Agreement shall have, unless otherwise specifically provided herein, the meaning customarily
given such term in accordance with GAAP, and all financial computations hereunder shall be computed, unless otherwise specifically provided
herein, in accordance with GAAP consistently applied. That certain terms or computations are explicitly modified by the phrase “in
accordance with GAAP” shall in no way be construed to limit the foregoing. The words “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Agreement as a whole, including the exhibits and schedules
hereto, as the same may from time to time be amended, modified or supplemented and not to any particular section, subsection or clause
contained in this Agreement.

 

7.3       Miscellaneous
Provisions. The following miscellaneous provisions are a part of this Agreement:

 

(a)       Interpretation;
Joint and Several Obligations. To the extent that this Agreement is executed by more than one Borrower, all words used herein in
the singular shall be deemed to have been used in the plural and those used in the masculine shall be deemed to have been used in the
feminine where the context and construction so require. The terms “Borrower,” and “Grantor” shall mean all or
any one or more of them. The phrase “to the best of Borrower’s knowledge,” or words of similar import, shall mean actual
knowledge following due inquiry. Each Borrower shall be fully bound by the terms of this Agreement, the obligations hereunder being joint
and several. Lender shall have the right to proceed immediately against any Borrower with respect to any breach of this Agreement by
such Borrower or any other Borrower and Lender is not required to take any action or proceeding of any kind against all the Borrowers
or any of the property, real or personal, of any Borrower before proceeding against such Borrower or any other Borrower.

 

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(b)       Entire
Agreement; Amendments. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of
the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless
given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

 

(c)       Applicable
Law. This Agreement and all acts, agreements, certificates, assignments, transfers and transactions hereunder, and all rights of the
parties hereto, shall be governed as to validity, enforcement, interpretation, construction, effect and in all other respects by the
internal laws and decisions of the State of Illinois, including, but not limited to, laws regulating interest, loan charges, commitment
fees and brokerage commissions (without regard to conflicts of law principles). It is acknowledged and agreed by Borrower and Lender
that the loan transaction evidenced hereby bears a reasonable relationship to the State of Illinois. 

 

(d)       Consent
to Jurisdiction. To induce Lender to accept this Agreement, Borrower irrevocably agrees that, subject to Lender's election, ALL
ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO THIS AGREEMENT WILL BE LITIGATED IN COURTS HAVING SITUS IN COOK or WILL
COUNTY, ILLINOIS. BORROWER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY COURT LOCATED WITHIN COOK or WILL COUNTY, ILLINOIS.

 

(e)       Caption
Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the
provisions of this Agreement.

 

(f)       Consent
to Loan Assignment or Participation. Borrower agrees and consents to Lender's sale or transfer, whether now or later, of one or more
interests in the Indebtedness to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation
whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about
any other matter relating to the Indebtedness, and Borrower hereby waives any rights to privacy it may have with respect to such matters.
Borrower additionally waives any and all notices of sale of interests, as well as all notices of any repurchase of such interests. Borrower
also agrees that the purchasers of any such interests will be considered as the absolute owners of such interests in the Indebtedness
and will have all the rights granted under the agreement or agreements governing the sale of such interests. Borrower agrees that either
Lender or such purchaser may enforce Borrower's obligations with respect to the Indebtedness irrespective of the failure or insolvency
of any holder of any interest therein. Borrower further agrees that the purchaser of any such interests may enforce its interests irrespective
of any personal claims or defenses that Borrower may have against Lender.

 

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(g)       Costs
and Expenses. Borrower agrees to pay upon demand all of Lender's out-of-pocket expenses, including attorneys' fees, incurred in connection
with this Agreement or any Collateral or in connection with the Indebtedness under this Agreement. Lender may engage an agent to help
collect the Indebtedness and to enforce this Agreement and the Related Documents, and Borrower will reimburse Lender therefor. This includes,
subject to any limits under applicable law, Lender's attorneys' fees and legal expenses, whether or not there is a lawsuit, including
attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any
anticipated post-judgment collection services. Borrower also will pay any court costs, in addition to all other sums provided by law.

 

(h)       Advice
of Counsel; Joint Interpretation. The Borrower acknowledges that it has been advised by its counsel with respect to this transaction,
this Agreement, and the Related Documents, including, without limitation, all waivers contained herein and therein. The parties acknowledge
that each party and its counsel have reviewed this Agreement and the Related Documents 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,
the Related Documents, or any amendments or exhibits thereto.

 

		(i)	Notices. Except as otherwise provided herein, whenever it is provided herein that any notice, demand,
request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by another,
or whenever any of the parties desires to give or serve upon another any communication with respect to this Agreement, each such notice,
demand, request, consent, approval, declaration or other communication shall be in writing and shall be delivered in person (by personal
delivery, delivery service or reputable overnight courier service), or telecopied and confirmed immediately in writing by a copy mailed
by United States mail, postage prepaid, addressed as hereafter set forth, or mailed by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

 

(i)       If to Lender,
at:

 

1603 Orrington Avenue,
Suite 900

Evanston, IL 60201

Attn: Bradford T. Whitmore

Email: bwhitmore@gbros.com

 

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(ii)       If to Borrower,
at:

 

1319 Marquette
Drive

Romeoville, IL 60446

Attn: Jess Jankowski

Email: jjankowski@nanophase.com

 

or at such other address
as may be substituted by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the
party entitled to receive such notice. Every notice, demand, request, consent, approval, declaration or other communication hereunder
shall be deemed to have been duly given or secured on the date on which (i) personally delivered (whether in person, by delivery service,
or by reputable overnight courier service), (ii) the date of the telecopy transmission (provided the confirmation mailing was sent as
provided herein), or (iii) on the date of receipt if sent by the United States mail. Failure or delay in delivering copies of any notice,
demand, request, consent, approval, declaration or other communication to the Persons designed above to receive copies, if any, shall
in no way adversely affect the effectiveness of such notice, demand, request, consent, approval, declaration or other communication.

 

(j)       Consent
to Service of Documents. BORROWER HEREBY AGREES AND CONSENTS THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER
APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUIT, ACTION OR PROCEEDING IN ANY ILLINOIS OR FEDERAL COURT INVOLVING LENDER IN ANY WAY
(WHETHER FOR THIS TRANSACTION OR OTHERWISE) MAY BE MADE BY EITHER (A) CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED
TO BORROWER AT THE ADDRESS INDICATED HEREIN, AND SERVICE SO MADE SHALL BE COMPLETE FIVE DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED
OR (B) THROUGH BORROWER’S ATTORNEY, DAVID L. WEINSTEIN, AT SUCH ADDRESS AS MAY BE ON RECORD WITH THE SUPREME COURT OF ILLINOIS.

 

(k)       Severability.
If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any Person or circumstance,
such finding shall not render that provision invalid or unenforceable as to any other Persons or circumstances. If feasible, any such
offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision
cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable.

 

(l)       Subsidiaries
and Affiliates of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including without
limitation any representation, warranty or covenant, the word “Borrower” as used herein shall include all subsidiaries of
Borrower, if any. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to require Lender to
make any Loan or other financial accommodation to any subsidiary or Affiliate of Borrower.

 

    25  

     

    

 

(m)       Successors
and Assigns. This Agreement shall be binding upon, and inure to the benefit of, the parties and their successors and assigns and
shall inure to the benefit of Lender, its successors and assigns. Borrower shall not, however, have the right to assign its rights under
this Agreement or any interest therein, without the prior written consent of Lender.

 

(n)       Survival.
All warranties, representations, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered
by Borrower to Lender under this Agreement shall be considered to have been relied upon by Lender and will survive the making of the Loan
and delivery to Lender of the Related Documents, regardless of any investigation made by Lender or on Lender's behalf.

 

(o)       Time is
of the Essence. Time is of the essence in the performance of this Agreement.

 

(p)       Agency.
Nothing in this Agreement shall be construed to constitute the creation of a partnership or joint venture between Lender and Borrower
or any Person. Lender is not an agent or representative of Borrower. This Agreement does not create a contractual relationship with and
shall not be construed to benefit or bind Lender in any way with or create any contractual duties by Lender to any contractor, subcontractor,
materialman, laborer, or any other Person other than Borrower.

 

(q)       Merger.
There shall be no merger of the interest or estate created by this Agreement or any Related Document with any other interest or estate
in the Collateral at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender.

 

(r)       Indemnity.
Whether or not the transactions contemplated hereby shall be consummated, Borrower agrees to defend, protect and indemnify Lender, its
participants and each of their assigns, and each of their respective directors, officers, employees, affiliates and agents (collectively,
“Indemnified Persons”) from and against, and agrees to hold each such Indemnified Person harmless from, any and all losses,
claims, damages, obligations, judgments, penalties, and liabilities and related costs and expenses, including, without limitation, reasonable
counsel fees and expenses, incurred by such Indemnified Person arising out of any claim, action, suit, litigation, investigation or proceeding
(whether or not such Indemnified Person is a party thereto), which may be imposed on, incurred by, or asserted against any Indemnified
Person (whether direct, indirect or consequential and whether based on any federal or state laws or other statutory regulations, including,
without limitation, securities, environmental and commercial laws and regulations, under common law or in equity, or in contract or otherwise)
in any manner relating to or arising out of this Agreement, the Related Documents, or any act, event or transaction related or attendant
hereto or thereto, the making and the management of the Loan or the use or intended use of the proceeds of the Loan hereunder; provided,
however, that such indemnity shall not apply to any such losses, claims, damages, or liabilities or related expenses determined
by a court of competent jurisdiction to have arisen from the gross negligence or wilful misconduct of such Indemnified Person. The agreements
of Borrower in this subsection shall be in addition to any of the Indebtedness that Borrower may otherwise have. All amounts due under
this subsection shall be payable as incurred upon written demand therefor, shall be added to the Indebtedness of the Borrower and shall
bear interest at the Default Rate, and shall be secured by the Collateral. To the extent that the undertaking to indemnify, pay and hold
harmless set forth in this subsection may be unenforceable because it is violative of any law or public policy, the Borrower shall contribute
the maximum portion which it is permitted to pay and satisfy under applicable law, to the payment and satisfaction of all matters incurred
by the Indemnified Persons. The provisions of and undertakings and indemnifications set out in this Section shall survive the satisfaction
and payment of the Indebtedness of the Borrower and the termination of this Agreement.

    26  

     

    

 

(s)       Waiver
and Consents. Lender shall not be deemed to have waived any rights under this Agreement or under the Related Documents unless such
waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a
waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver
of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver
by Lender, nor any course of dealing between Lender and Borrower, or between Lender and any Grantor, shall constitute a waiver of any
of Lender's rights or of any obligations of Borrower or of any Grantor as to any future transactions.

 

(t)       Lender's
Discretion. Whenever this Agreement requires either Lender's consent, election, approval or similar action or otherwise vests in Lender
the authority to make decisions and/or determinations, such actions shall be made or withheld in Lender's sole and absolute discretion,
unless specifically provided otherwise and the granting of any consent, election, approval or similar action by Lender in any instance
shall not constitute continuing consent, election, approval or similar action in subsequent instances where such is required.

 

(u)       Payments
Set Aside. To the extent that the Borrower makes a payment or payments to the Lender or the Lender enforces its Security Interest
or exercises its rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or
any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment
had not been made or such enforcement or setoff had not occurred.

 

(v)       Waiver
of Demand. Demand, presentment, protest and notice of nonpayment are hereby waived by the Borrower, except as otherwise expressly
provided herein.

 

(w)       Conflict
of Terms. Except as otherwise expressly provided in this Agreement and except as otherwise expressly provided in the Related Documents
by specific reference to the applicable provision of this Agreement, if any provision in this Agreement is in conflict with, or inconsistent
with, any provision in the Related Documents or the Commitment Letter, the provision in this Agreement shall govern and control.

    27  

     

    

 

(x)       Counterparts.
This Agreement and all Related Documents may be executed in any number of separate counterparts, each of which shall, collectively and
separately, constitute one agreement.

 

(y)       Waiver
of Jury Trial. BORROWER AND LENDER EACH WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS
(i) UNDER THIS AGREEMENT OR ANY RELATED DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT WHICH MAY IN THE FUTURE BE
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR RELATED DOCUMENT OR (ii) ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH
THIS AGREEMENT, AND AGREE THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. BORROWER AGREES THAT
IT WILL NOT ASSERT ANY CLAIM AGAINST LENDER OR ANY OTHER PERSON INDEMNIFIED UNDER THIS AGREEMENT ON ANY THEORY OF LIABILITY FOR SPECIAL,
INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

 

(signatures to follow)

    28  

     

    

 

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS
OF THIS BUSINESS LOAN AGREEMENT, AND BORROWER AGREES TO ITS TERMS. 

 

BORROWER:

 

NANOPHASE TECHNOLOGIES CORPORATION

 

By:/s/JESS JANKOWSKI

Name:Jess Jankowski

Its:President & Chief Executive Officer

 

 

LENDER:

 

BEACHCORP, LLC 

 

 

By:

/s/BRADFORD T. WHITMORE

Bradford T. Whitmore

Manager

 

    29  

     

    

 

BUSINESS LOAN AGREEMENT

LIST OF EXHIBITS AND SCHEDULES

 

 

 

	Exhibit A	-	Form of Inventory Report
	 	 	 
	Schedule 2.1(h)	-	General List and Description of Security Interests, Claims and Other Encumbrances
	 	 	 
	Schedule 2.1(l)	-	Places of Business, Chief Executive Office, Location of Records and Collateral Locations

 

 

    30

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