Document:

Exhibit 10.3

 

EXECUTION
VERSION

 

Certain identified information has been excluded from
this exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed.
[***] indicates that information has been redacted.

 

SECOND TIER RECEIVABLES PURCHASE AND
SALE AGREEMENT

 

dated as of December 17, 2020

 

between

 

EXELA TECHNOLOGIES, INC.,

 

as Initial Servicer,

 

EXELA RECEIVABLES 3 HOLDCO, LLC,

 

as Seller

 

and

 

EXELA RECEIVABLES 3, LLC

 

as Buyer

 

    

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS AND RELATED MATTERS	1
	SECTION 1.01.	Defined Terms	1
	SECTION 1.02.	Other Interpretive Matters	3
	ARTICLE II AGREEMENT TO PURCHASE, SELL AND CONTRIBUTE	3
	SECTION 2.01.	Purchase, Sale and Contribution	3
	SECTION 2.02.	Timing of Purchases, Sales and Contributions	3
	SECTION 2.03.	Payment of Purchase Price	3
	SECTION 2.04.	[Reserved]	4
	SECTION 2.05.	No Recourse or Assumption of Obligations	4
	ARTICLE III ADMINISTRATION AND COLLECTION	4
	SECTION 3.01.	Exela to Act as Servicer; Contracts	4
	SECTION 3.02.	Deemed Collections	5
	SECTION 3.03.	Actions Evidencing Purchases	6
	SECTION 3.04.	Reconveyance Under Certain Circumstances	6
	SECTION 3.05.	Application of Collections	6
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	7
	SECTION 4.01.	Mutual Representations and Warranties	7
	SECTION 4.02.	Additional Representations and Warranties of Seller	8
	ARTICLE V GENERAL COVENANTS	11
	SECTION 5.01.	Mutual Covenants	11
	SECTION 5.02.	Additional Covenants of Seller	12
	SECTION 5.03.	Reporting Requirements	15
	SECTION 5.04.	Negative Covenants of Seller	17
	ARTICLE VI TERMINATION OF PURCHASES	19
	SECTION 6.01.	[Reserved]	19
	SECTION 6.02.	Automatic Termination	19
	ARTICLE VII INDEMNIFICATION	20
	SECTION 7.01.	Seller’s Indemnity	20
	SECTION 7.02.	Contribution	23
	ARTICLE VIII MISCELLANEOUS	23
	SECTION 8.01.	Amendments, Etc.	23
	SECTION 8.02.	No Waiver; Remedies	23
	SECTION 8.03.	Notices, Etc.	24

 

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Table
of Contents

 

	 	 	Page
	 	 	 
	SECTION 8.04.	Binding Effect; Assignment	24
	SECTION 8.05.	Survival	24
	SECTION 8.06.	Costs and Expenses	24
	SECTION 8.07.	Execution in Counterparts; Integration	25
	SECTION 8.08.	Governing Law	25
	SECTION 8.09.	Waiver of Jury Trial	25
	SECTION 8.10.	Consent to Jurisdiction; Waiver of Immunities	26
	SECTION 8.11.	Confidentiality	26
	SECTION 8.12.	No Proceedings	26
	SECTION 8.13.	No Recourse Against Other Parties	27
	SECTION 8.14.	Grant of Security Interest	27
	SECTION 8.15.	Binding Terms in Other Transaction Documents	27
	SECTION 8.16.	Severability	27

 

    -ii-

     

    

 

Table
of Contents

(continued)

 

Page

 

	ANNEX 1	UCC Details Schedule

	ANNEX 2	Notice Information

 

    -iii-

     

    

 

SECOND TIER RECEIVABLES PURCHASE AND
SALE AGREEMENT

 

THIS SECOND TIER RECEIVABLES PURCHASE AND
SALE AGREEMENT dated as of December 17, 2020 (this “Agreement”) is among EXELA TECHNOLOGIES, INC.,
a Delaware corporation (“Exela”), as initial servicer (in such capacity, the “Initial Servicer”),
EXELA RECEIVABLES 3 HOLDCO, LLC “Seller” ), and EXELA RECEIVABLES 3, LLC, a Delaware limited liability company
(the “Buyer”).

 

BACKGROUND

 

1.            The
Buyer is a special purpose limited liability company, all of the issued and outstanding membership interests of which are owned
by the Seller.

 

2.            Seller
(i) has acquired on the date hereof, Receivables and the Related Assets from Exela Receivables 1, LLC pursuant to the Receivable
Transfer Agreement and (ii) has acquired on the date hereof and hereafter continues to acquire Receivables and the Related
Assets from the Originators pursuant to the First Tier Receivables Purchase and Sale Agreement.

 

3.            Seller,
in order to finance its business, wishes to Convey the Receivables and the Related Assets to the Buyer, and the Buyer is willing
to purchase or accept such Receivables and the Related Assets from Seller, on the terms and subject to the conditions set forth
herein.

 

4.            Seller
and the Buyer intend each such Conveyance to be a “true sale” or a “true contribution” or an “absolute
assignment” of Receivables and the Related Assets by Seller to the Buyer, providing the Buyer with the full benefits of ownership
of the Receivables and Related Assets, and neither Seller nor the Buyer intend the transactions hereunder to be characterized as
a loan from the Buyer to Seller.

 

5.            The
Buyer, as borrower under the Loan and Security Agreement, intends to pledge the Receivables and the Related Rights to the Administrative
Agent pursuant to the Loan and Security Agreement.

 

NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, agree as follows:

 

ARTICLE I

 

DEFINITIONS
AND RELATED MATTERS

 

SECTION 1.01.     Defined
Terms. In this Agreement, unless otherwise specified: (a) capitalized terms are used as defined in (or by reference in)
the Loan and Security Agreement dated as of December 10, 2020 (as amended, restated, modified or otherwise supplemented from
time to time, the “Loan and Security Agreement”) among Buyer, as Borrower (“Borrower”), Initial
Servicer, the Persons from time to time party thereto as Lenders and Alter Domus (US) LLC, as Administrative Agent and (b) as
used in this Agreement, unless the context otherwise requires, the following capitalized terms have the meanings indicated below:

 

“Convey” means to sell,
transfer, assign, contribute or otherwise convey assets; and “Conveyed” and “Conveyance”
have correlative meanings.

 

    1

     

    

 

“Existing
Receivables” means the Existing Receivables as defined in the Receivable Transfer Agreement.

 

“Existing Related
Assets” means the Existing Related Assets as defined in the Receivables Transfer Agreement.

 

“Fair Market Value Discount”
means, as of any date of determination, the quotient (expressed as percentage) of (a) one, divided by (b) the
sum of (i) one, plus (ii) the product of (A) the Prime Rate on such day, times (B) a fraction,
the numerator of which is the Days’ Sales Outstanding (as of the last day of the prior Settlement Period) and the denominator
of which is 365 or 366, as applicable. The Fair Market Value Discount may be adjusted from time to time by mutual agreement of
the Buyer and the Seller to account for such factors as are customarily reflected in an arm’s-length purchase and sale of
comparable receivables on terms that are no less favorable to the Buyer than would be the case if the Seller was not an Affiliate
of the Buyer; provided that any change to the Fair Market Value Discount shall be reasonably acceptable to the Required Lenders,
shall take effect as of the first day of a calendar month, shall apply only prospectively and shall not affect the Purchase Price
payment in respect of Receivables which came into existence during any calendar month ending prior to the calendar month during
which Seller and Buyer agree to make such change.

 

“Purchase and Sale Termination
Date” means, with respect to Seller, the date that Receivables and Related Assets cease being Conveyed to the Buyer under
this Agreement pursuant to Article VI of this Agreement.

 

“Purchase and Sale Termination
Event” means the occurrence of any of the following events or occurrences:

 

(a)          Seller
shall fail to make when due any payment or deposit to be made by it under this Agreement or any other Transaction Documents to
which it is a party and such failure shall remain uncured for two (2) Business Days;

 

(b)          any
representation or warranty of Seller set forth in any Transaction Document shall prove to have been false or incorrect when made
or deemed to be made by Seller and such breach shall remain uncured (to the extent such breach may be cured) for a period of five
(5) Business Days after the earlier to occur of (x) written notice to Seller by the Administrative Agent and (y) actual
knowledge of Seller; provided, that no breach of a representation or warranty set forth in Section 4.02(a),
(c) or (k) shall constitute a Purchase and Sale Termination Event pursuant to this clause (b) if
the applicable Receivables and Related Assets are reconveyed and the reconveyance price paid as required pursuant to Section 3.04;
provided, further, that such circumstance shall not constitute a Purchase and Sale Termination Event if such representation
or warranty is part of an Information Package or Interim Report, and is corrected promptly (but not later than two (2) Business
Days) after Seller has knowledge or receives notice thereof;

 

(c)          Seller
shall fail to perform or observe any other term, covenant or agreement contained in this Agreement or any other Transaction Document
to which it is a party on its part to be performed or observed and such failure shall continue uncured (to the extent such failure
may be cured) for ten (10) Business Days after the earlier of (i) Seller having actual knowledge thereof or (ii) written
notice to Seller by the Administrative Agent; or

 

(d)          an
Event of Bankruptcy shall have occurred with respect to Seller.

 

“Receivable”
means any account receivable or other right to payment from an Obligor, whether constituting an account, chattel paper, payment
intangible, instrument or a general intangible, in each case, including the right to payment of any interest, finance charges,
fees and other payment obligations of such Person with respect thereto. For the avoidance of doubt, the Existing Receivables shall
constitute Receivables for all purposes hereunder.

 

    2

     

    

 

“Related Assets” means
(i) (a) all rights to, but not any obligations under, all Related Security with respect to the Receivables, (b) all
Records (but excluding any obligations or liabilities under the Contracts), (c) all Collections in respect of, and other proceeds
of, the Receivables or any other Related Security, (d) all rights, claims, causes of actions and remedies of Seller under
any Transaction Documents and any other rights or assets pledged or otherwise Conveyed to Buyer hereunder and (e) all products
and proceeds of any of the foregoing, (ii) all rights of the Seller under the Receivables Transfer Agreement, (iii) all
rights of the Seller under the First Tier Receivables Purchase Agreement and (iv) the Existing Related Assets. For the avoidance
of doubt, the “Related Assets” shall include (x) any and all rights of an Originator (but none of the obligations
of any Originator) under each Contract pursuant to which a Receivable arises and all of such rights shall be Conveyed to Buyer
hereunder and upon such Conveyance the Seller shall have no continuing right, title or interest in such Contract and (y) the
Existing Related Assets.

 

SECTION 1.02.     Other
Interpretive Matters. The interpretation of this Agreement, unless otherwise specified, is subject to Section 1.02
of the Loan and Security Agreement, and Section 1.04 of the Loan and Security Agreement is hereby incorporated
herein by reference and shall apply as if set forth herein mutatis mutandis.

 

ARTICLE II

 

AGREEMENT
TO PURCHASE, SELL AND CONTRIBUTE

 

SECTION 2.01.     Purchase,
Sale and Contribution. Upon the terms and subject to the conditions set forth in this Agreement, Seller hereby absolutely
and irrevocably Conveys to Buyer, and Buyer hereby purchases or acquires from Seller, as applicable, all of Seller’s right,
title and interest in, to and under the Receivables and the Related Assets, in each case whether now existing or hereafter arising,
acquired, or originated.

 

SECTION 2.02.     Timing
of Purchases, Sales and Contributions.

 

(a)          All
of the Existing Receivables and the Receivables Seller acquired from the Originators by the Seller on the Funding Date, and in
each case the Related Assets, are hereby absolutely and irrevocably Conveyed to Buyer on such date in accordance with the terms
hereof.

 

(b)          On
and after the Funding Date until the Purchase and Sale Termination Date, upon the creation or acquisition of any Receivable by
an Originator, Seller shall immediately and automatically (without further action by any Person) be deemed to have absolutely and
irrevocably Conveyed all of Seller’s right, title and interest in, to and under such Receivable and the Related Assets with
respect to such Receivable, whether existing at such time or arising, acquired or originated thereafter.

 

SECTION 2.03.     Payment
of Purchase Price.

 

(a)          The
purchase price (“Purchase Price”) to be paid to Seller for the Receivables and the Related Assets at the time
of purchase or acquisition of such Receivables and Related Assets shall equal the product of (i) the Unpaid Balance of each
Receivable then being Conveyed, times the Fair Market Value Discount at such time.

 

    3

     

    

 

(b)          On
the Funding Date, Seller shall contribute Receivables and the Related Assets to Buyer as a capital contribution in the amount set
forth in a written notice on the date thereof from Seller to Buyer and Administrative Agent.

 

(c)          Buyer
shall pay Seller the Purchase Price with respect to each sold Receivable and the Related Assets, created or acquired by Seller
on the date of purchase thereof as set forth above by transfer of funds in cash; provided, to the extent that the Buyer
does not have funds available to pay such Purchase Price due on any day in cash after satisfying Buyer’s obligations under
the Loan and Security Agreement, Seller, as an equity owner of the Buyer, shall contribute (and shall be deemed to have contributed
without further action or notice by any Person) to the capital of the Buyer Receivables allocable to such insufficiency in return
for an increase in the value of Seller’s ownership interest in the Buyer.

 

SECTION 2.04.     [Reserved].

 

SECTION 2.05.     No
Recourse or Assumption of Obligations. Except as specifically provided in this Agreement, the Conveyance of Receivables and
Related Assets under this Agreement shall be without recourse to Seller. Seller and Buyer intend the transactions hereunder to
constitute absolute and irrevocable true sales or true contributions or absolute assignments of Receivables and the Related Assets
by Seller to Buyer, providing Buyer with the full risks and benefits of ownership of the Receivables and Related Assets (such
that the Receivables and the Related Assets would not be property of Seller’s estate in the event of Seller’s bankruptcy).

 

None of Buyer, Administrative Agent, the
Lenders or the other Affected Persons shall have any obligation or liability under any Receivables or Related Assets, nor shall
Buyer, Administrative Agent, any Lender or the other Affected Persons have any obligation or liability to any Obligor or other
customer or client of Seller (including any obligation to perform any of the obligations of Seller under any Receivables or Related
Assets) or to Servicer.

 

ARTICLE III

 

ADMINISTRATION
AND COLLECTION

 

SECTION 3.01.     Exela
to Act as Servicer; Contracts. Pursuant to the Loan and Security Agreement, the Initial Servicer has been appointed (subject
to any rights of the Administrative Agent to terminate Initial Servicer and appoint a Successor Servicer) to service the Receivables
and the Related Assets for the benefit of Administrative Agent and Borrower (as Seller’s assignees) pursuant to Article IX
of the Loan and Security Agreement.

 

(a)          Seller
shall cooperate with Buyer, Borrower and Servicer (and if applicable, the Backup Servicer) in collecting amounts due from Obligors
in respect of the Receivables.

 

(b)          Buyer
and Seller hereby grant to Servicer (and if applicable, the Backup Servicer) an irrevocable power of attorney, with full power
of substitution, coupled with an interest, to take or cause to be taken in the name of Buyer or Seller, as the case may be, any
and all steps which are necessary or advisable to endorse, negotiate, enforce, or otherwise realize on any checks, instruments
or other proceeds of the Receivables or other right of any kind held or transmitted by Buyer or Seller or transmitted or received
by Buyer (whether or not from Seller) or Seller in connection with any Receivable and any Related Assets (including under the related
Records).

 

    4

     

    

 

(c)          Seller
hereby grants to Buyer and to Administrative Agent, as assignee of Buyer, an irrevocable power of attorney, with full power of
substitution, coupled with an interest, to take or cause to be taken in the name of Buyer or Seller, as the case may be, any and
all steps which are necessary or advisable to endorse, negotiate, enforce, or otherwise realize on any checks, instruments or other
proceeds of the Receivables or other right of any kind held or transmitted by Buyer or Seller or transmitted or received by Buyer
(whether or not from Seller) or Seller in connection with any Receivable and any Related Assets (including under the related Records).
Notwithstanding the foregoing, the Administrative Agent shall not exercise such power of attorney unless an Initial Servicer Replacement
Event has occurred and is continuing.

 

(d)          Seller
shall perform all of its obligations under the Records to the same extent as if the Receivables had not been Conveyed hereunder
and the exercise by each of Buyer, Borrower, Servicer, Administrative Agent or any of their respective designees of its rights
hereunder or under the Loan and Security Agreement shall not relieve Seller from such obligations.

 

(e)          Seller
hereby covenants and agrees that it shall provide the Servicer and Backup Servicer with all necessary servicing files and records
relating to the Contracts, Receivables and Related Security and it shall provide to the Backup Servicer reasonable access to and
use by the Backup Servicer of all licenses, software, hardware, equipment, telephone, personnel, servicing systems, employees,
facilities or other accommodations necessary or desirable to perform the backup servicing functions as set forth in the Backup
Servicing Agreement.

 

SECTION 3.02.     Deemed
Collections. (a) If on any day the Unpaid Balance
of any Receivable is: (A) reduced or adjusted as a result of any defective, rejected, returned, repossessed or foreclosed
goods or services, or any revision, cancellation, allowance, rebate, credit memo, discount or other adjustment made by Seller
or any Affiliate of Seller, or any setoff, counterclaim or dispute between Seller or any Affiliate of Seller, and an Obligor,
(B) less than the amount included in calculating the Net Pool Balance for purposes of any Information Package or Interim
Report (for any reason other than such Receivable becoming a Defaulted Receivable or due to the application of Collections received
with respect to such Receivable), or (C) extended, amended or otherwise modified or waived or any payment term or condition
of any related Contract is amended, modified or waived (except as expressly permitted under Section 9.02(a) of the Loan
and Security Agreement), then, on such day, Seller shall be deemed to have received a Collection of such Receivable, in the amount
of such reduction or cancellation or the difference between the actual Unpaid Balance (as determined immediately prior to the
applicable event) and the amount included in respect of such Receivable in calculating such Net Pool Balance or, in the case of
clause (C) above, in the amount that such extension, amendment, modification or waiver affects the Unpaid Balance of such
related Receivable in the sole determination of the Required Lenders.

 

Collections deemed received by Seller under this Section 3.02(a) are
herein referred to as “Deemed Collections”.

 

(b)          Any
Deemed Collections shall be applied as a credit for the account of the Buyer against the Purchase Price of Receivables subsequently
purchased by the Buyer from Seller hereunder; provided, however if there have been no purchases of Receivables from Seller (or
insufficiently large purchases of Receivables prior to the Monthly Settlement Date immediately following any such reduction in
the Purchase Price of any Receivable) to create a Purchase Price sufficient to so apply such credit against, the amount of such
credit, shall be transferred to a Continuing Collection Account in immediately available funds in the amount of such Deemed Collections
on such Monthly Settlement Date subject to the following proviso; provided, further, that at any time on or after the Purchase
and Sale Termination Date, any Deemed Collection shall be transferred to a Continuing Collection Account in immediately available
funds in the amount of such Deemed Collections immediately (and in no event more than one Business Day) following the event giving
rise to such Deemed Collections.

 

    5

     

    

 

SECTION 3.03.     Actions
Evidencing Purchases. On or prior to the Funding Date, Seller (or Servicer, on behalf of Seller) shall mark its records evidencing
Receivables and Contracts in a form reasonably acceptable to the Administrative Agent, evidencing that the Receivables acquired
by Seller have been transferred in accordance with this Agreement, and none of the Originators or Initial Servicer shall change
or remove such mark without the consent of the Administrative Agent, as its assignee. In addition, Seller agrees that from time
to time, at its expense, it will promptly execute and deliver all further instruments and documents, and take all further action
that Buyer, the Borrower or the Administrative Agent, as its assignee, may reasonably request in order to perfect, protect or
more fully evidence the purchases and Conveyances hereunder, or to enable Buyer, the Borrower or the Administrative Agent, as
its assignee, to exercise or enforce any of their respective rights with respect to the Receivables and the Related Assets. Without
limiting the generality of the foregoing, Seller will upon the request of Buyer or the Administrative Agent: (i) authorize
and file such financing or continuation statements, or amendments thereto or assignments thereof, and such other instruments or
notices, as may be necessary or appropriate to perfect the interests of Buyer, Borrower and the Administrative Agent, as its assignee,
in the Receivables acquired by Seller and the Related Assets; and (ii) mark conspicuously each Contract evidencing each Receivable
acquired by Seller with a legend, reasonably acceptable to the Administrative Agent evidencing that the related Receivables have
been Conveyed in accordance with this Agreement.

 

(a)          Seller
hereby authorizes Administrative Agent (i) to file one or more financing or continuation statements, and amendments thereto
and assignments thereof, naming Seller as debtor relative to all or any of the Receivables acquired by Seller and the Related Assets
now existing or hereafter arising and (ii) to the extent permitted by the Loan and Security Agreement, to notify Obligors
of the assignment of the Receivables acquired by Seller and the Related Assets.

 

(b)          Without
limiting the generality of Section 3.03(a), Seller hereby authorizes Administrative Agent to file, and shall deliver
and file or cause to be filed appropriate continuation statements, not earlier than six months and not later than three months
prior to the fifth anniversary of the date of filing of the financing statements filed in connection with the Funding Date or any
other financing statement filed pursuant to this Agreement, if the Final Payout Date shall not have occurred.

 

SECTION 3.04.     Reconveyance
Under Certain Circumstances. Seller agrees to accept the reconveyance from the Buyer of all the Receivables and the Related
Assets if the Buyer notifies Seller of a breach of any representation or warranty set forth in Section 4.02(a), (c),
(k) or (r) or a material breach of any other representation or warranty made or deemed made by Seller pursuant
to Article IV with respect to any of the Receivables or the Related Assets, then and Seller shall fail to cure such breach
within fifteen (15) days (or, in the case of the representations and warranties in Section 4.02(a), three (3) days)
of such notice), then Seller agrees to accept the reconveyance from the Buyer of all such Receivables and such Related Assets.
The reconveyance price shall be paid by the applicable Originator to the Buyer in immediately available funds on such 15th day
(or 3rd day, if applicable) in an amount equal to the aggregate Unpaid Balance of all such reconvened Receivables at such time.

 

SECTION 3.05.     Application
of Collections. Any payment by an Obligor in respect of any indebtedness owed by it shall be applied as specified in writing
or otherwise by such Obligor or as required by Applicable Law or by the underlying Contract. If the manner of application of any
such payment is not specified by the related Obligor and is not required by Applicable Law or by the underlying Contract, such
payment shall, unless Administrative Agent (at the direction of the Required Lenders) instructs otherwise, be applied: first,
as a Collection of any Receivable or Receivables then outstanding of such Obligor, with such Receivables being paid in the order
of the oldest first, and, second, to any other indebtedness of such Obligor.

 

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ARTICLE IV

 

REPRESENTATIONS
AND WARRANTIES

 

SECTION 4.01.     Mutual
Representations and Warranties. Seller represents and warrants to Buyer, Administrative Agent and each Secured Party, and
Buyer represents and warrants to Seller, Administrative Agent and each Secured Party as of the date hereof and as of each date
on which a purchase and sale or contribution, as applicable, is made hereunder, as follows:

 

(a)          Organization
and Good Standing. It has been duly organized and is validly existing as a corporation or limited liability company, as applicable,
in good standing under the laws of its jurisdiction of organization, with power and authority to own its properties and to conduct
its business as such properties are presently owned and such business is presently conducted, except to the extent that the failure
to have such power and authority could not reasonably be expected to have a Material Adverse Effect.

 

(b)          Due
Qualification. It is duly qualified to do business as a foreign organization in good standing and has obtained all necessary
qualifications, licenses and approvals, in all jurisdictions in which the ownership or lease of its property or the conduct of
its business requires such qualifications, licenses or approvals, except where the failure to be in good standing or to hold any
such qualifications, licenses and approvals could not reasonably be expected to have a Material Adverse Effect.

 

(c)          Power
and Authority; Due Authorization. It (i) has all necessary power, authority and legal right to (A) execute and deliver
this Agreement and the other Transaction Documents to which it is a party, (B) carry out the terms of and perform its obligations
under the Transaction Documents to which it is a party, (C) with respect to Seller, Convey the Receivables and the Related
Assets to Buyer on the terms and conditions herein provided and (D) with respect to Buyer, purchase, acquire and own the Receivables
and the Related Assets on the terms and conditions herein provided and (ii) has duly authorized by all necessary corporate
or limited liability company action, as applicable, the execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party in any capacity.

 

(d)          Binding
Obligations. This Agreement constitutes, and each other Transaction Document to be signed by it when duly executed and delivered
by it will constitute, a legal, valid and binding obligation of it, enforceable against it in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar Applicable Laws affecting the enforcement
of creditors’ rights generally and by general principles of equity, regardless of whether such enforceability is considered
in a proceeding in equity or at law.

 

(e)          No
Violation. The consummation of the transactions contemplated by this Agreement and the other Transaction Documents and the
fulfillment of the terms hereof and thereof by it will not, (i) conflict with, result in any breach or (without notice or
lapse of time or both) a default under, (A) its certificate of formation or limited liability company agreement or (B) any
Debt, (ii) result in the creation or imposition of any Adverse Claim upon any of its property or any of its Subsidiaries property,
other than any Adverse Claim created in connection with this Agreement and the other Transaction Documents, (iii) conflict
with, result in any breach or (without notice or lapse of time or both) a default under any other agreement or instrument to which
it is a party or by which it or any of its properties is bound, (iv) result in the creation or imposition of any Adverse Claim
upon any of its properties pursuant to the terms of any such other agreement or instrument to which it is a party or by which it
or any of its properties is bound, other than any Adverse Claim created in connection with this Agreement and the other Transaction
Documents or (v) violate any Applicable Law applicable to it or any of its properties.

 

    7

     

    

 

(f)           Bulk
Sales Act. No transaction contemplated hereby requires compliance by it with any bulk sales act or similar Applicable Law.

 

(g)          No
Proceedings. There are no actions, suits, proceedings, claims, disputes, or investigations pending, or to its knowledge threatened,
before any Governmental Authority (i) asserting the invalidity of this Agreement or any other Transaction Document to which
it is a party, (ii) seeking to prevent the Conveyance of any Receivables and Related Assets or the consummation of the purposes
of this Agreement or of any of the other Transaction Documents to which it is a party, or (iii) seeking any determination
or ruling that has had or could reasonably be expected to have a Material Adverse Effect.

 

(h)          Governmental
Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is
required for the due execution, delivery and performance by it of this Agreement or any other Transaction Document to which it
is a party, except for the filing of the UCC financing statements referred to in Article VI of the Loan and Security
Agreement, all of which, at the time required in Article VI of the Loan and Security Agreement, shall have been duly
filed and shall be in full force and effect.

 

(i)           Litigation.
No injunction, decree or other decision has been issued or made by any Governmental Authority against it or any material portion
of its properties that prevents, and, to its knowledge, no threat by any Person has been made to attempt to obtain any such decision
against it or its properties, and there are no actions, suits, litigation or proceedings pending or threatened against it or its
properties in or before any Governmental Authority that has had or could reasonably be expected to have a Material Adverse Effect
or would prevent it from conducting its business operations relating to the Receivables or the performance of its duties and obligations
hereunder or under the other Transaction Documents.

 

(j)           Ordinary
Course of Business. Each remittance of Collections on the Receivables transferred by Seller to Buyer under this Agreement or
pursuant to the other Transaction Documents will have been (i) in payment of a debt incurred by Seller in the ordinary course
of business or financial affairs of Seller and the Buyer and (ii) made in the ordinary course of business or financial affairs
of Seller and the Buyer.

 

SECTION 4.02.     Additional
Representations and Warranties of Seller. Seller represents and warrants to Buyer, Administrative Agent and each Secured Party
as of the date hereof and as of each date on which a purchase and sale or contribution, as applicable, is made hereunder, as follows:

 

(a)          Valid
Sale. This Agreement constitutes an absolute and irrevocable valid sale, transfer and assignment or contribution, as applicable,
of the Receivables acquired by Seller and the Related Assets to Buyer free and clear of any Adverse Claim.

 

(b)          Use
of Proceeds. The use of all funds obtained by Seller under this Agreement will not conflict with or contravene any of Regulations
T, U and X promulgated by the Federal Reserve Board.

 

(c)          Quality
of Title; Fair Consideration. Prior to its Conveyance to Buyer hereunder, each Receivable acquired by Seller, together with
the Related Assets, is owned by it free and clear of any Adverse Claim; when Buyer purchases or acquires by Conveyance such Receivable
and Related Assets and all Collections and proceeds if any of the foregoing, Buyer shall have acquired legal and equitable title
to such Receivable, for fair consideration and reasonably equivalent value, free and clear of any Adverse Claim; and no financing
statement or other instrument similar in effect covering any Receivable, any interest therein, and the Related Assets is on file
in any recording office, except such as may be filed (i) in favor of Buyer in accordance with any Purchase and Sale Agreement
(and assigned to Administrative Agent) and (ii) in favor of Administrative Agent in accordance with the Loan and Security
Agreement or any Transaction Document.

 

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(d)          Accurate
Reports. No Information Package, Interim Report or any other written information, exhibit, financial statement, document,
book, record or report furnished or to be furnished by or on behalf of Seller or any of its Affiliates to Buyer, the Borrower,
Administrative Agent or any other Secured Party in connection with this Agreement or any other Transaction Document, whether before
or after the date of this Agreement: (i) was or will be untrue or inaccurate in any material respect as of the date it was
or will be dated or as of the date so furnished; or (ii) contained or will contain when furnished any material misstatement
of fact or omitted or will omit to state a material fact or any fact necessary to make the statements contained therein not misleading;
provided, that, with respect to projected financial information and information of a general economic or industry specific
nature, Seller represents only that such information has been prepared in good faith based on assumptions believed by Seller to
be reasonable at the time such information was delivered and such information is not to be viewed as fact, is subject to significant
uncertainties and contingencies beyond the control of Seller, no assurance can be given that any particular projection or other
information will be realized and actual results during the period or periods covered by such information may differ from such projections
and that the differences may be material.

 

(e)          UCC
Details. (i) Seller’s true legal name as registered in the sole jurisdiction in which it is organized, the jurisdiction
of such organization, its organizational identification number, if any, as designated by the jurisdiction of its organization,
its federal employer identification number, if any, and (ii) the location of its chief executive office and principal place
of business are specified in Annex 1 and the offices where Seller keeps all its Records are located at the addresses specified
in Annex 1 (or at such other locations, notified to Administrative Agent and Buyer in accordance with Section 7.01(l) or
8.01(f) of the Loan and Security Agreement), in jurisdictions where all actions required under Section 9.06
of the Loan and Security Agreement has been taken and completed. Except as described in Annex 1, Seller has no, and has
never had any, trade names, fictitious names, assumed names or “doing business as” names and Seller has never changed
the location of its chief executive office or its true legal name, identity or corporate structure. Seller is organized only in
a single jurisdiction.

 

(f)           Collection
Accounts. The account numbers of the Collection Accounts and related Collection Account Banks are specified in Schedule
II to the Loan and Security Agreement.

 

(g)          Tax
Status. Seller (i) has timely filed all material tax returns required to be filed by it and (ii) has paid or caused
to be paid all material taxes, assessments and other governmental charges, other than taxes, assessments and other governmental
charges being contested in good faith by appropriate proceedings and as to which adequate reserves have been provided in accordance
with GAAP.

 

(h)          Servicing
Programs. No license or approval is required for Servicer or Buyer’s use of any software or other computer program used
by Seller in the servicing of the Receivables, other than those which have been obtained and are in full force and effect.

 

(i)           Credit
and Collection Policies. Seller has complied with its Credit and Collection Policies, and such policies have not changed since
the Funding Date, except in accordance with Section 5.03(f).

 

(j)           Compliance
with Applicable Law. Seller has complied in all material respects with all Applicable Law (but not including Sanction or Ant-Corruption
Laws, which are discussed in clause (u) below).

 

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(k)          Eligible
Receivables. Each Receivable of Seller was an Eligible Receivable or an Additional Eligible Receivable, as applicable, on the
date of any sale or contribution hereunder, unless otherwise specified in the first Information Package or Interim Report that
includes such Receivable.

 

(l)           Adverse
Change. Since December 31, 2019, no event or occurrence exists that has caused, or could reasonably be expected to cause,
a Material Adverse Effect.

 

(m)         Financial
Information. All financial statements of the Parent and its consolidated Subsidiaries delivered in connection with this Agreement
or any other Transaction Document were prepared in accordance with GAAP in effect on the date such statements were prepared and
fairly present in all material respects the consolidated financial position of the Parent and its consolidated Subsidiaries and
their results of operations as of the date and for the period presented or provided (other than in the case of annual financial
statements, subject to the absence of footnotes and year-end audit adjustments). Since December 31, 2019, there has been no
change in the business, property, operations or financial condition of the Parent and its Subsidiaries, taken as a whole, that
could reasonably be expected to have a Material Adverse Effect.

 

(n)          Investment
Company Act. Seller is not (i) required to register as an “Investment Company” or (ii) “controlled”
by an “Investment Company”, under (and as to each such term, as defined in) the Investment Company Act.

 

(o)          ERISA.
Except as would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, each
Exela Party and its respective ERISA Affiliates (i) have fulfilled their obligations under the minimum funding standards of
ERISA and the Code with respect to each Pension Plan; (ii) are in compliance in all material respects with the applicable
provisions of ERISA and the Code with respect to each Pension Plan and Multiemployer Plan; (iii) have not incurred any liability
to the PBGC or to any Pension Plan or Multiemployer Plan under Title IV of ERISA, other than a liability to the PBGC for premiums
under Section 4007 of ERISA already paid or not yet due; (iv) have not incurred any liability to the PBGC or to any Pension
Plan under Title IV of ERISA with respect to a plan termination under Section 4041 of ERISA; and (v) have not incurred
any Withdrawal Liability to a Multiemployer Plan. No steps have been taken by any Person to terminate any Pension Plan the assets
of which are not sufficient to satisfy all of its benefit liabilities under Title IV of ERISA.

 

(p)          [Reserved].

 

(q)          No
Default. No event has occurred and is continuing and no condition exists, or would result from the Conveyance of the Receivables
acquired by Seller, that constitutes an Initial Servicer Replacement Event, Amortization Event, Event of Default or Unmatured Event
of Default.

 

(r)           No
Fraudulent Conveyance; No Avoidance. No Conveyance hereunder constitutes a fraudulent transfer or conveyance under any United
States federal or applicable state bankruptcy or insolvency laws and the rules regulations thereunder or is otherwise void
or voidable under such or similar laws or principles or for any other reason. Each such Conveyance referred to in the preceding
sentence shall not have been made for or on account of an antecedent debt owed by it to the Buyer and, accordingly, no such transfer
is or may be voidable or subject to avoidance under the any United States federal or applicable state bankruptcy or insolvency
laws and the rules regulations thereunder.

 

(s)          Solvent.
Seller is Solvent.

 

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(t)           Reliance
on Separate Legal Identity. Seller hereby acknowledges that the Secured Parties, the Lenders and the Administrative Agent are
entering into the transactions contemplated by this Agreement and the other Transaction Documents in reliance upon Seller’s
identity as a legal entity separate from any Bankruptcy Remote Entity.

 

(u)          Sanctions;
Anti-Corruption; Export Controls; Anti-Money Laundering. (i) Each Exela Party, its Subsidiaries and the officers and directors
and, to the knowledge of Seller, employees, Affiliates and agents of each Exela Party and its Subsidiaries is in compliance with
(A) Anti-Corruption Laws and applicable Sanctions, and (B) in all material respects, Anti-Money Laundering Laws and Export
Controls; (ii) Seller has instituted and maintains in effect policies and procedures designed to promote and achieve compliance
by Seller and its directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws, Export Controls
and applicable Sanctions; and (iii) none of the Exela Parties, their respective Subsidiaries or the officers or directors
or, to the knowledge of Seller, employees, Affiliates or agents of the Exela Parties or their respective Subsidiaries: (A) is
a Blocked Person, or (B) has, in the past five years, engaged in any dealings of, with or involving a Blocked Person.

 

(v)          Opinions.
The facts regarding each Exela Party, the Receivables, the Related Assets, the transactions contemplated by the Transaction Documents
and the related matters set forth or assumed in each opinion of counsel delivered in connection with this Agreement and the Transaction
Documents are true and correct in all material respects.

 

(w)         Securitization
Assets.

 

(i)            None
of the Collateral is subject to any Lien of any Debt of Exela or any of its Affiliates other than the Lien of the Administrative
Agent under the Transaction Documents. Without limiting the foregoing, all of the Collateral satisfies the definition of “Securitization
Assets” sold to a “Special Purpose Securitization Subsidiary” in connection with a “Permitted Securitization
Financing,” and therefore is “Excluded Property” that is free and clear of any Adverse Claim of any Existing
Specified Secured Debt.

 

(ii)           As
of the Funding Date, the Exela Parties are not obligated (whether as a borrower, guarantor or otherwise) under any secured Debt
outstanding in an aggregate amount exceeding $75,000,000 other than the Existing Specified Secured Debt and the Transaction Documents.

 

ARTICLE V

 

GENERAL
COVENANTS

 

SECTION 5.01.     Mutual
Covenants. At all times prior to the Final Payout Date, Buyer and Seller shall:

 

(a)          Compliance
with Applicable Laws, Etc. Comply in all material respects with all Applicable Laws with respect to it, its business and its
properties, the Receivables and each of the related Contracts (but with respect to Seller, not including Sanction or Ant-Corruption
Laws, which are discussed in Section 5.02(k) below).

 

(b)          Preservation
of Existence. Preserve and maintain its existence, rights (including Intellectual Property), franchises and privileges in the
jurisdiction of its organization, and qualify and remain qualified to do business and in good standing as a foreign organization
in each jurisdiction except where the failure to qualify or preserve or maintain such existence, rights, franchises or privileges
or to be so qualified could not, individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

 

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(c)          Separateness.
(i) To the extent applicable to it, observe the applicable legal requirements for the recognition of any Bankruptcy Remote
Entity as a legal entity separate and apart from Exela and any Affiliate of Exela, including complying with (and causing to be
true and correct) each of the facts and assumptions contained in the legal opinions of counsel delivered in connection with this
Agreement and the other Transaction Documents regarding “true” sale and “substantive consolidation” matters
(and any later bring-downs or replacements of such opinions), and (ii) not take any actions inconsistent with the terms of
Section 8.08 of the Loan and Security Agreement or any Bankruptcy Remote Entity’s limited liability company agreement.

 

The Parent may issue consolidated financial
statements that include Buyer, but such financial statements shall contain a footnote to the effect that the Receivables and Related
Assets of Buyer are not available to creditors of the Parent. If Seller provides Records relating to Receivables to any creditor
of Seller, Seller shall also provide to such creditor a notice indicating that (A) such Receivables have been conveyed to
the Buyer, subsequently conveyed by the Buyer to Borrower and pledged to the Administrative Agent in accordance with the Transaction
Documents and (B) any Collections held by it relating to such Receivables are held in trust pursuant to the Loan and Security
Agreement. Seller shall cause its financial statements to disclose the separateness of Buyer and that the Receivables acquired
by Seller are owned by Buyer and are not available to creditors of Seller or of its Affiliates.

 

(d)          Nonpetition
Covenant. Prior to the date that is one year (or, if longer, the applicable preference period then in effect) and one day after
the Final Payout Date, shall not initiate against, or join any Person in initiating against, the Borrower (and in the case of Seller,
the Buyer), any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under any applicable federal or
state bankruptcy or similar law, or the appointment of a receiver, liquidator, assignee, trustee, custodia, sequestrator or other
similar official of the Borrower (and in the case of Seller, the Buyer) or any substantial part of its property or the ordering
or winding up or liquidation of the affairs of the Borrower (and in the case of Seller, the Buyer).

 

SECTION 5.02.     Additional
Covenants of Seller. At all times prior to the Final Payout Date, Seller shall:

 

(a)          Inspections.
(i) From time to time, upon reasonable notice from Buyer or Administrative Agent, as applicable, and during regular business
hours, permit Buyer, Administrative Agent, each other Credit Party and any of their respective agents, regulators or representatives
including certified public accountants or other auditors or consultants acceptable to Administrative Agent, such Credit Party or
Buyer, as applicable (at the sole cost and expense of Seller), (A) to examine and make copies of and abstracts from all Records
in the possession or under the control of Seller or its Affiliates or agents, and (B) to visit the offices and properties
of Seller or its agents or Affiliates for the purpose of examining such materials described in clause (A) above, and
to discuss matters relating to the Receivables acquired by Seller, Seller’s performance hereunder or Seller’s financial
condition and results of operations with any of the officers or employees of Seller or its Affiliates having knowledge of such
matters; and (ii) without limiting the provisions of clause (i) above, from time to time on request of the Administrative
Agent or the Buyer with reasonable notice and during reasonable business hours, permit certified public accountants or other consultants
or auditors acceptable to Administrative Agent to conduct, at Seller’s expense, a review of Originator’s books and
records relating to the Receivables; provided that, unless a Purchase and Sale Termination Event, Unmatured Event of Default,
Amortization Event or Event of Default shall have occurred and be continuing at the time any such audit/inspection is requested,
Seller shall only be required to reimburse any Person for reasonable, documented costs and expenses related to two such audit/inspections
during any calendar year (excluding any audits/inspections requested by Buyer).

 

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(b)          Keeping
of Records and Books of Account; Delivery, Location of Records. Maintain and implement, or cause to be maintained and implemented,
administrative and operating procedures (including an ability to recreate records evidencing the Receivables and Related Assets
in the event of the destruction of the originals thereof, backing up on at least a daily basis on a separate backup computer from
which electronic file copies can be readily produced and distributed to third parties being agreed to suffice for this purpose),
and keep and maintain, or cause to be kept and maintained (or transferred to Servicer), all documents, books, records and other
information necessary or advisable for the collection of all Receivables and Related Assets (including records adequate to permit
the daily identification of each new Receivable and all Collections of and adjustments to each existing Receivable received, made
or otherwise processed on that day). At any time during the continuation of an Initial Servicer Replacement Event, Amortization
Event or an Event of Default, upon request of the Administrative Agent or Buyer, deliver the originals of all Contracts to the
Administrative Agent or its designee, together with electronic and other files applicable thereto, and other Records necessary
to enforce the related Receivable against any Obligor thereof.

 

(c)          Performance
and Compliance with Pool Receivables and Contracts. At its expense, timely and fully perform and comply in all material respects
with all provisions, covenants and other promises required to be observed by it under the Contracts and the Receivables, unless
Seller or Servicer makes a Deemed Collection in respect of the entire Unpaid Balance thereof in accordance with Section 3.02.

 

(d)          Location
of Records. Keep its principal place of business and chief executive office, and the offices where it keeps its Records (and
all original documents relating thereto), at the address(es) of Seller referred to in Annex 1 or, upon ten (10) days’
prior written notice to the Administrative Agent, at such other locations in jurisdictions where all action required by Section 9.06
of the Loan and Security Agreement shall have been taken and completed.

 

(e)          Credit
and Collection Policies. Comply with its Credit and Collection Policy in regard to each Receivable acquired by Seller and the
Related Assets and not agree to any changes thereto in a manner that could be adverse to the interests of the Credit Parties except
as expressly permitted hereunder and under Sections 8.03(c) and 8.06(c) of the Loan and Security Agreement.

 

(f)           Collections.
Within seven (7) Business Days of the Funding Date, deliver written instructions to all Obligors to remit Collections of existing
and newly generated Receivables and the Related Security to a Continuing Collection Account. At all times after the Funding Date,
(i) on the related invoice, instruct all Obligors to remit Collections of the Receivables and the Related Security to a Continuing
Collection Account and (ii) to the extent that any Obligor remits any Collections to an Interim Collection Account, promptly
(within four (4) Business Days) notify such Obligor in writing and by telephone to remit any future Collections to a Continuing
Collection Account. In the event any Exela Party receives any Collections, any such Collections shall be held in trust by such
Exela Party and such Exela Party shall deposit such Collections in a Continuing Collection Account within four (4) Business
Days of such receipt thereof. In the event that any funds other than Collections are deposited into any Collection Account, it
(or the Initial Servicer on its behalf) shall within four (4) Business Days of receipt thereof identify such funds and provide
instructions to the Administrative Agent to transfer such funds to the appropriate Person entitled to such funds. It shall at all
times maintain or cause to be maintained such documents, books, records and other information necessary or advisable to (i) maintain
and protect the Receivables and the Related Security, (ii) on a daily basis identify Collections of the Receivables received
from time to time and (iii) segregate within four (4) Business Days Collections of the Receivables from property of any
Exela Party and their respective Affiliates other than the Borrower. It shall ensure that no disbursements are made from any Collection
Account, other than such disbursements that are made in connection with any Sweep Instructions or in accordance with this Section or
Section 4.01 of the Loan and Security Agreement.

 

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(g)          Agreed
Upon Procedures. Cooperate with Servicer and the designated accountants or consultants for each annual agreed upon procedures
report required pursuant to Sections 8.02(f) and 8.05(g) of the Loan and Security Agreement.

 

(h)          Frequency
of Billing. Prepare and deliver (or cause to be prepared and delivered) invoices with respect to each Receivable acquired by
Seller in accordance with its Credit and Collection Policies, but in any event no less frequently than as required under the Contract
related to such Receivable.

 

(i)           Assignment
of Claims Act. If reasonably requested by the Administrative Agent, prepare and make any filings under the Federal Assignment
of Claims Act (or any other similar state and local Applicable Law) with respect to Receivables from Obligors that are Governmental
Authorities, that are necessary or desirable in order for the Administrative Agent to enforce such Receivable against the Obligor
thereof.

 

(j)           Insurance.
Keep its insurable properties insured at all times by financially sound and responsible insurers; maintain insurance, to such extent
and against such risks, including fire and other risks insured against by extended coverage, as is customary with companies of
the same or similar size in the same or similar businesses in the same geographic area; maintain in full force and effect public
liability insurance against claims for personal injury or death or property damage occurring upon, in, about or in connection with
the use of any properties owned, occupied or controlled by it, in such amounts and with such deductibles as are customary with
companies of the same or similar size in the same or similar businesses and in the same geographic area; and maintain such other
insurance as may be required by Applicable Law.

 

(k)          Sanctions;
Anti-Corruption; Export Controls; Anti-Money Laundering. The Exela Parties and their respective employees, Affiliates and agents
shall: (i) not conduct any business or engage in any transaction or dealing of, with or involving any Blocked Person, (ii) comply
with (A) Anti-Corruption Laws or applicable Sanctions, or (B) in any material respect, Anti-Money Laundering Laws or
Export Controls and (iii) continue to maintain and enforce policies and procedures designed to promote and achieve compliance
by the Borrower and its directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws, Export
Controls and applicable Sanctions.

 

(l)           Exchange
Act Disclosure. It will file a Current Report on Form 8-K under the Exchange Act to report the transactions contemplated
by this Agreement and in its future Forms 10-K and 10-Q until the Final Payout Date. The disclosure in each of such Exchange Act
filings shall include an explicit statement that any amendment or modification to any Existing Specified Secured Debt Documents
is prohibited if such amendment or modification could : (i) by its terms cause any Exela Party to be unable to perform its
obligations under the Transaction Documents, (ii) cause any inaccuracy or breach of any representation, warranty or covenant
of any Exela Party (iii) could subject any existing or subsequently arising Collateral to an Adverse Claim or (iv) adversely
affect any rights or remedies of the Credit Parties under the Transaction Documents.

 

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SECTION 5.03.     Reporting
Requirements. From the date hereof until the Final Payout Date, Seller will furnish (or cause to be furnished) to Buyer, the
Servicer (or Backup Servicer), to Administrative Agent and each Lender each of the following; provided, that notice delivered
by any other Exela Party (notwithstanding the requirement below as to delivery from Seller or Responsible Officer thereof) as
to a given event shall be deemed to satisfy such requirement:

 

(a)          Financial
Statements and Other Information.

 

(i)            (x) within
sixty (60) days after the close of each fiscal quarter period of each fiscal year of the Parent, the quarterly financial statements
described in Section 8.05(a)(i)(A) of the Loan and Security Agreement and (y) within thirty (30) days after
the end of each calendar month of Parent, the monthly reports described in Section 8.05(a)(i)(B) of the Loan and
Security Agreement;

 

(ii)           within
105 days after the close of each fiscal year of the Parent, the annual financial statements described in Section 8.05(a)(ii) of
the Loan and Security Agreement, and with respect to the Servicer (or Backup Servicer), together with any information required
by such Servicer (or Backup Servicer) to prepare and deliver the compliance certificate described in Section 8.05(a)(iii) of
the Loan and Security Agreement;

 

(iii)          promptly
following a request therefor, any documentation or other information (including with respect to any Exela Party) that Buyer, Administrative
Agent or any Lender reasonably requests in order to comply with its ongoing obligations under the applicable “know your customer”
and anti-money laundering rules and regulations, including the PATRIOT Act; and

 

(iv)          from
time to time such further information regarding the business, affairs and financial condition of the Exela Parties as Buyer, Administrative
Agent or any Lender shall reasonably request.

 

(b)          ERISA.

 

(i)            Promptly
after the filing or receiving thereof, copies of (I) all reports and notices with respect to any Reportable Event with respect
to any Pension Plan, which any Exela Party or any of their respective ERISA Affiliates files under ERISA with the Internal Revenue
Service, the PBGC or the U.S. Department of Labor or which any Exela Party or any of their respective ERISA Affiliates receives
from the Internal Revenue Service, the PBGC or the U.S. Department of Labor, and (II) all reports and documents which it files
under any other applicable pension benefits legislation that relate to matters concerning, or that would or could, individually
or in the aggregate, reasonably be expected to affect, the Receivables (including the value, the validity, the collectability,
or the enforceability thereof), the transactions contemplated by the Transaction Documents, or the performance of Seller (or any
of its Affiliates), or the ability of Seller (or any of its Affiliates) to perform, thereunder.

 

(ii)           Promptly
after Seller becomes aware of the occurrence of any of the events listed in clauses (A) through (F) below,
a notice indicating that such event has occurred:

 

		(A)	the Secretary of the Treasury issues a notice to any Exela Party that a Pension Plan has ceased to be a plan described in Section 4021(a)(2) of
Title IV of ERISA or when the Secretary of Labor determines that any such plan is not in compliance with Title I of ERISA;

 

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		(B)	the Secretary of the Treasury determines that there has been a termination or a partial termination within the meaning of Section 411(d)(3) of
the Code or any Pension Plan; or there has been a termination, or notice of a termination, of any Pension Plan under Section 4041
or Section 4042 of ERISA;

 

		(C)	any Pension Plan fails to meet the minimum funding standards under Section 412 of the Code or Section 302 of ERISA;

 

		(D)	any Pension Plan is unable to pay benefits thereunder when due;

 

		(E)	any Exela Party or any of their respective ERISA Affiliates liquidates in a case under the Bankruptcy Code, or under any similar
law as now or hereafter in effect; or

 

		(F)	any Exela Party or any of their respective ERISA Affiliates incurs Withdrawal Liability.

 

(c)          Default.
Notice of the occurrence of any Initial Servicer Replacement Event, Event of Default, Unmatured Event of Default, Amortization
Event, or termination of any sale or contribution of Receivables under this Agreement, accompanied if applicable by a written statement
of a Responsible Officer of Seller setting forth details of such event and the action that Seller proposes to take with respect
thereto, such notice to be provided promptly (but not later than two (2) Business Days) after Seller obtains knowledge of
any such event.

 

(d)          Servicing
Programs. If any Successor Servicer has been appointed or if any Initial Servicer Replacement Event, Amortization Event or
Event of Default has occurred and is continuing and a license or approval is required for Buyer’s, the Administrative Agent’s
or such Successor Servicer’s use of any software or other computer program used by such Successor Servicer in the servicing
of the Receivables, then at the request of Buyer, the Administrative Agent or a Successor Servicer, Seller, as applicable, shall
at its own expense arrange for Buyer, Administrative Agent and such Successor Servicer to receive any such required license or
approval.

 

(e)          Litigation.
Promptly, and in any event within three (3) Business Days after Seller obtains knowledge thereof, notice of (i) any litigation,
investigation or proceeding (including a contingency thereof) initiated against Seller and (ii) any development in litigation
previously disclosed by it, in each case, related to an amount in controversy in excess of $10,000,000 or that could otherwise
reasonably be expected to have a Material Adverse Effect.

 

(f)           Change
in Credit and Collection Policies or Business. At least thirty (30) days prior to (i) the effectiveness of any change
in or amendment to the Credit and Collection Policy that could be adverse to the interests of the Credit Parties, a description
or, if available, a copy of the Credit and Collection Policy then in effect and a written notice (A) indicating such change
or amendment and (B) requesting Buyer’s, Administrative Agent’s and the Required Lender’s consent thereto
and (ii) any change in the character of Seller’s business that has or could reasonably be expected to materially and
adversely affect the ability of Seller to perform its obligations hereunder or that would prevent Seller from conducting its business
operations relating to the Receivables, its servicing of the Receivables or the performance of its duties and obligations hereunder
or under the other Transaction Documents, a written notice indicating such change and requesting Buyer’s, Administrative
Agent’s and the Required Lender’s consent thereto.

 

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(g)          Change
in Accountants or Accounting Policy. Promptly notify the Administrative Agent and each Lender of any change in (i) the
external accountants of Seller or (ii) any material accounting policy of Seller (it being understood that any change to the
manner in which Seller accounts for the Receivables or the transactions contemplated under the Transaction Documents shall be deemed
 “material” for such purpose).

 

(h)          Notice
of Change in Board of Directors. With reasonable promptness, written notice of any change in the Board of Directors (or similar
governing body) of Seller, any other Exela Party or any Subsidiary of any Exela Party.

 

(i)           Notice
Regarding Material Contracts. Promptly (but in any event within fifteen (15) Business Days) (i) after any material contract
of Seller, any other Exela Party or any Subsidiary of any Exela Party is terminated or amended in a manner that is materially adverse
to Seller, any other Exela Party or any Subsidiary of any Exela Party, as the case may be, or (ii) any new material contract
is entered into, a written statement describing such event, with copies of such material amendments or new contracts, delivered
to the Administrative Agent, and an explanation of any actions being taken with respect thereto.

 

(j)           Other
Information. Promptly, from time to time, such Records or other information, documents, records or reports respecting the condition
or operations, financial or otherwise, of Seller as Administrative Agent or Buyer may from time to time reasonably request in order
to protect the interests of Buyer, Administrative Agent or any Lender or the Backup Servicer under or as contemplated by this Agreement
or any other Transaction Document or to comply with any Applicable Law or any Governmental Authority.

 

(k)          Excluded
Receivables. With reasonable promptness, written notice if the total amount of Excluded Receivables originated in any calendar
month exceeds $150,000.

 

SECTION 5.04.     Negative
Covenants of Seller. From the date hereof until the Final Payout Date, Seller shall not, without the prior written consent
of Administrative Agent, the Required Lenders, and Buyer, do or permit to occur any act or circumstance which it has covenanted
not to do or permit to occur in any other Transaction Document to which it is a party in any capacity, or:

 

(a)          Sales,
Adverse Claims, Etc. Except as otherwise expressly provided herein or in the other Transaction Documents, sell, assign (by
operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect to
(i) any Receivable acquired by Seller or any Related Asset or any interest therein, or any Collection Account to which any
Collections of any of the foregoing are sent, or any right to receive income or proceeds (other than the purchase price paid to
Seller hereunder or any proceeds of Collections remitted to Seller hereunder to the extent Seller owes no other amounts hereunder)
from or in respect of any of the foregoing or (ii) its equity interest in Buyer.

 

(b)          Extension
or Amendment of Receivables. Except as permitted under Section 9.02(a) of the Loan and Security Agreement,
extend, amend or otherwise modify the payment terms of any Receivable acquired by Seller or amend, modify or waive any payment
term or condition of any related Contract, in each case unless a corresponding Deemed Collection payment in respect of such Receivable
is made, in full, in connection therewith.

 

(c)          Change
in Credit and Collection Policies or Business. (i) Make or consent to any change in, or waive any of the provisions of,
the Credit and Collection Policies in a manner that could be adverse to the interests of the Credit Parties without the prior written
consent of the Buyer, Administrative Agent, and the Required Lenders or (ii) make any change in the character of Seller’s
business that has or could reasonably be expected to materially and adversely affect the ability of Seller to perform its obligations
hereunder or that would prevent Seller from conducting its business operations relating to the Receivables, its servicing of the
Receivables or the performance of its duties and obligations hereunder or under the other Transaction Documents, without the prior
written consent of Buyer, Administrative Agent and the Required Lenders.

 

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(d)           Change
in Collection Account Banks. (i) Add any bank account not listed on Schedule II as a Collection Account unless
the Administrative Agent and the Required Lenders shall have previously approved and received duly executed copies of all Account
Control Agreements and/or amendments thereto covering each such new account, (ii) terminate any Collection Account or related
Account Control Agreement or Sweep Instructions without the prior written consent of the Administrative Agent and the Required
Lenders and, in each case, only if all of the payments from Obligors that were being sent to such Collection Account will, upon
termination of such Collection Account and at all times thereafter, be deposited in a Continuing Collection Account covered by
an Account Control Agreement or (iii) amend, supplement or otherwise modify any Account Control Agreement or Sweep Instructions
without the prior written consent of Administrative Agent and the Required Lenders.

 

(e)           Mergers,
Acquisitions, Sales, Etc. Without the prior written consent of the Buyer, Administrative Agent and the Required Lenders, (i) change
its jurisdiction of organization or its name, identity or corporate structure or undertake any division of its rights, assets,
obligations, or liabilities pursuant to a plan of division or otherwise pursuant to Applicable Law, (ii) merge or consolidate
with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all
or substantially all of its assets (whether now owned or hereafter acquired) or (iii) make any other change such that any
financing statement or other lien filing filed or other action taken to perfect Buyer’s and Administrative Agent’s
interests under this Agreement or the Loan and Security Agreement would become seriously misleading or would otherwise be rendered
ineffective. The Seller shall not amend or otherwise modify or waive its limited liability company agreement or certificate of
formation or any provision thereof without the prior written consent of Buyer, Administrative Agent and the Required Lenders.
The Seller shall at all times maintain its jurisdiction of organization in the State of Delaware.

 

(f)            Deposits
to Accounts. (i) Deposit or otherwise credit, or cause or permit to be so deposited or credited, or direct any Obligor
to deposit or remit, any Collection or proceeds thereof to any account other than a Continuing Collection Account or (ii) except
as remitted from an Interim Collection Account pursuant to Sweep Instructions, permit funds other than Collections to be deposited
into any Continuing Collection Account.

 

(g)           [Reserved].

 

(h)           Actions
Impairing Quality of Title. Take any action that could cause any Receivable, together with the Related Security, not to be
owned by it free and clear of any Adverse Claim; or take any action that could reasonably be expected to cause Administrative
Agent not to have a valid ownership interest or first priority perfected security interest in the Receivables and Continuing Collection
Accounts and, to the extent such security interest can be perfected by filing a financing statement or the execution of an account
control agreement, any Related Security (or any portion thereof) and all cash proceeds of any of the foregoing, in each case,
free and clear of any Adverse Claim; or suffer the existence of any financing statement or other instrument similar in effect
covering any Receivable on file in any recording office except such as may be filed (i) in favor of the Borrower in accordance
with any Transaction Document or (ii) in favor of Administrative Agent in accordance with this Agreement or any Transaction
Document.

 

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(i)            Buyer’s
Tax Status. Take or cause any action to be taken that would cause the Buyer to (i) be treated other than as than as a
 “disregarded entity” within the meaning of U.S. Treasury Regulation § 301.7701-3 that is disregarded as separate
from U.S. Person for U.S. federal income tax purposes or (ii) become an association taxable as a corporation or a publicly
traded partnership taxable as a corporation for U.S. federal income tax purposes.

 

(j)            Sanctions;
Anti-Corruption; Anti-Money Laundering. Permit any Exela Party or any of their respective Affiliates or agents to:

 

(i)            conduct
any business or engage in any transaction or dealing of, with or involving any Blocked Person,

 

(ii)           fail
to (comply with (A) Anti-Corruption Laws or applicable Sanctions, or (B) in any material respect, Anti-Money Laundering
Laws or Export Controls or

 

(iii)          fail
to maintain and enforce policies and procedures designed to promote and achieve compliance by the Borrower and its directors,
officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws, Export Controls and applicable Sanctions.

 

(k)           Exclusivity.
(i) Sell, factor, assign or otherwise finance any Receivables (or similar assets and property that would be Receivables or
Related Assets if Conveyed hereunder) except as contemplated by this Agreement and the other Transaction Documents or (ii) enter
into any contract which evidences a Receivable with any Obligor which is not sold or contributed pursuant to this Agreement.

 

(l)            Restrictions
on Exela Secured Debt. Permit any Exela Party or any Affiliate thereof to incur any new secured Debt or consent to any amendment
or modification to any Debt of Exela or any of its Affiliates, including (without limitation) any Existing Specified Secured Debt
Documents, the effect of which could: (i) by its terms cause any Exela Party to be unable to perform its obligations under
the Transaction Documents, (ii) cause any inaccuracy or breach of any representation, warranty or covenant of any Exela Party
(iii) could subject any existing or subsequently arising Collateral to an Adverse Claim or (iv) adversely affect any
rights or remedies of the Credit Parties under the Transaction Documents.

 

ARTICLE VI

 

TERMINATION
OF PURCHASES

 

SECTION 6.01.           [Reserved].

 

SECTION 6.02.           Automatic
Termination. This Agreement shall automatically terminate upon the earliest of (i) an Event of Bankruptcy shall have
occurred and remain continuing with respect to Buyer and (ii) the Final Payout Date.

 

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ARTICLE VII

 

INDEMNIFICATION

 

SECTION 7.01.           Seller’s
Indemnity. General Indemnity. Without limiting any other rights which any such Person may have hereunder or under Applicable
Law, but subject to Section 8.06, Seller hereby agrees to indemnify and hold harmless Buyer, Buyer’s Affiliates, the
Borrower, Administrative Agent and any Secured Party under the Loan and Security Agreement and all of their respective successors,
transferees, participants and assigns, and all officers, members, managers, directors, shareholders, officers, employees and agents
of any of the foregoing (each an “Originator Indemnified Party”), forthwith on demand, from and against any
and all damages, losses, claims, liabilities and related reasonable and documented out-of-pocket costs and expenses (including
all filing fees), including reasonable and documented Attorney Costs, and reasonable consultants’ and accountants’
fees and disbursements (all of the foregoing being collectively referred to as “Originator Indemnified Amounts”)
awarded against or incurred by any of them arising out of, resulting from, relating to or in connection with the Transaction Documents,
any of the transactions contemplated thereby, or the ownership, maintenance or purchasing of the Receivables or in respect of
or related to any Receivable or Related Assets, or otherwise arising out of or relating to or in connection with the actions or
inactions of Buyer, Performance Guarantor, Seller or any Affiliate of any of them; provided, notwithstanding anything to the contrary
in this Article VII, excluding Originator Indemnified Amounts solely to the extent (x) resulting solely from the gross
negligence or willful misconduct on the part of Seller Indemnified Party, as determined by a final non-appealable judgment by
a court of competent jurisdiction or (y) that constitute recourse with respect to a Receivable or the Related Assets by reason
of an Event of Bankruptcy or insolvency, or the financial or credit condition or financial default, of the related Obligor. Without
limiting or being limited by the foregoing, Seller, jointly and severally, shall pay on demand indemnify, subject to the express
limitations set forth in this Section 7.01, and hold harmless Seller Indemnified Party for any and all amounts necessary
to indemnify Seller Indemnified Party from and against any and all Originator Indemnified Amounts arising out of, relating to,
resulting from or in connection with:

 

(a)           the
transfer by Seller of any interest in any Receivable other than the Conveyance of any Receivable and Related Assets to Buyer pursuant
to this Agreement and the grant of a security interest or ownership interest to Buyer pursuant to this Agreement or the subsequent
assignment to the Borrower and pledge to the Administrative Agent;

 

(b)           any
representation, warranty or statement made or deemed made by Seller (or any of its officers or Affiliates) under or in connection
with this Agreement or any Transaction Document, any Information Package, any Interim Report or any other information or report
delivered by or on behalf of Seller pursuant hereto, which shall have been untrue, false or incorrect when made or deemed made;

 

(c)           the
failure of Seller to comply with the terms of any Transaction Document, the Federal Assignment of Claims Act or any other similar
state and local law or any other Applicable Law with respect to any Receivable or the Related Assets (including with respect to
any Receivable or Related Assets transferred by Seller) or the nonconformity of any such Receivable or Related Assets with any
such Applicable Law;

 

(d)           the
lack of an enforceable ownership interest or a first priority perfected security interest in the Receivables (and all Related
Assets) transferred by Seller, or purported to be transferred by Seller, to Buyer pursuant to this Agreement against all Persons
(including any bankruptcy trustee or similar Person), in each case free and clear of any Adverse Claims;

 

(e)           any
attempt by any Person (including Buyer) to void the transfers by Seller contemplated hereby under statutory provisions or common
law or equitable action;

 

(f)            the
failure to have filed, or any delay in filing, financing statements, financing statement amendments, continuation statements or
other similar instruments or documents under the UCC of any applicable jurisdiction or other Applicable Laws with respect to any
Receivable and the other Related Assets in respect thereof, transferred by Seller, or purported to be transferred by Seller, to
Buyer pursuant to this Agreement whether at the time of any purchase or acquisition, as applicable, or at any subsequent time;

 

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(g)           any
dispute, claim, offset, defense, or other similar claim or defense (other than discharge in bankruptcy) of an Obligor to the payment
of any Receivable in, or purporting to be in, the Receivables Pool transferred by Seller, or purported to be transferred by Seller,
to Buyer pursuant to this Agreement (including a defense based on such Receivable or the Related Assets not being a legal, valid
and binding obligation of such Obligor enforceable against it in accordance with its terms), any other claim resulting from or
relating to collection activities with respect to such Receivable or any other claim resulting from the sale of the goods, merchandise
or services related to such Receivable or the furnishing or failure to furnish such goods, merchandise or services, or other similar
claim or defense not arising from the financial inability of any Obligor to pay undisputed indebtedness;

 

(h)           any
failure of Seller to perform any of its duties or obligations in accordance with the provisions hereof and of each other Transaction
Document or to timely and fully comply with the Credit and Collection Policy in regard to the Receivables;

 

(i)            any
suit or claim related to the Receivables or Related Assets transferred by Seller, or purported to be transferred by Seller, to
Buyer pursuant to this Agreement (including any products liability or environmental liability claim arising out of or in connection
with merchandise or services that are the subject of any such Receivable or Related Asset);

 

(j)            any
products liability, environmental or other claim arising out of or in connection with any Receivable or Related Assets or other
merchandise, goods or services which are the subject of or related to any Receivable or Related Assets;

 

(k)           the
ownership, delivery, non-delivery, possession, design, construction, use, maintenance, transportation, performance (whether or
not according to specifications), operation (including the failure to operate or faulty operation), condition, return, sale, repossession
or other disposition or safety of any Related Assets (including claims for patent, trademark, or copyright infringement and claims
for injury to persons or property, liability principles, or otherwise, and claims of breach of warranty, whether express or implied);

 

(l)            any
investigation, litigation or proceeding (actual or threatened) related to this Agreement or any other Transaction Document or
the use of proceeds of any purchase hereunder or in respect of any Receivable or other Related Assets or any related Contract
(except to the extent relating to a credit losses on the Receivable by reason of an Event of Bankruptcy or insolvency, or the
financial or credit condition or financial default, of the related Obligor);

 

(m)          any
failure of Seller to comply with its covenants, obligations and agreements contained in this Agreement or any other Transaction
Document;

 

(n)           (i) if
legally required, the failure by Seller to notify any Obligor of the assignment pursuant to the terms hereof of any Receivable
or Related Assets to Buyer (and subsequently, as pledged under the Loan and Security Agreement to Administrative Agent for the
benefit of Lenders) or (ii) the failure to require that all Collections of Receivables be deposited directly in a Continuing
Collection Account covered by an Account Control Agreement;

 

(o)           the
failure by Seller to comply with the “bulk sales” or analogous Applicable Laws of any jurisdiction;

 

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(p)           any
Taxes imposed upon Seller Indemnified Party or upon or with respect to the Receivables transferred by Seller (whether or not imposed
on any Person, including a Lender), or purported to be transferred by Seller, to Buyer pursuant to this Agreement arising by reason
of the purchase or ownership, contribution or sale of such Receivables (or of any interest therein) or Related Assets;

 

(q)           any
failure of Seller to perform any of its respective duties or obligations under any Contract related to any Receivable;

 

(r)            any
failure by any Exela Party to obtain any Obligor’s consent to any transfer, sale or assignment of any rights and duties
under a Contract that requires the Obligor thereunder to consent to any such transfer, sale or assignment of any rights and duties
thereunder;

 

(s)           the
failure by Seller or the Buyer to pay when due any Taxes, including sales, excise or personal property taxes with respect to the
Receivables or Related Assets;

 

(t)            any
claim brought by any Person other than an Originator Indemnified Party arising from any activity by Seller or an Affiliate of
Seller in servicing, administering or collecting any Receivable or Related Asset;

 

(u)           any
loss arising, directly or indirectly, as a result of the failure by Seller to timely collect and remit to the appropriate authority
any sales or similar transfer type Taxes on or with respect to the Receivables or Related Assets (to the extent not duplicative
of clause (xvi) above);

 

(v)           any
commingling of any Collections by Seller relating to the Receivables or Related Assets with any of its own funds (other than other
Collections of Collateral) or the funds of any other Person;

 

(w)           the
failure or delay to provide any Obligor with an invoice or other evidence of indebtedness;

 

(x)           any
failure by Seller to obtain consent from any Obligor prior to the Conveyance of any Receivable and Related Assets pursuant to
the terms of this Agreement;

 

(y)           any
breach of any Contract as a result of the Conveyance thereof or any Receivables related thereto pursuant to this Agreement;

 

(z)           any
inability of Seller or Buyer to assign any Receivable or Related Asset as contemplated under the Transaction Documents; or the
violation or breach by Seller of any confidentiality provision, or of any similar covenant of non-disclosure, with respect to
any Contract, or any other Originator Indemnified Amount with respect to or resulting from any such violation or breach;

 

(aa)         any
dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable
(including a defense based on such Receivable or the related Contract not being a legal, valid and binding obligation of such
Obligor enforceable against it in accordance with its terms), or any other claim resulting from the sale of goods or the rendering
of services related to such Receivable or the furnishing or failure to furnish any such goods or services or other similar claim
or defense not arising from the financial inability of any Obligor to pay undisputed indebtedness;

 

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(bb)        any
other amount paid or payable pursuant to Section 5.02 or 14.04 of the Loan and Security Agreement;

 

(cc)         the
failure to pay when due any Taxes described in clauses (a), (b) and (c) of Section 5.03
of the Loan and Security Agreement; or

 

(cc)         any
setoff with respect to any Receivable.

 

SECTION 7.02.           Contribution.
If for any reason the indemnification provided above in this Article VII is unavailable to an Originator Indemnified Party
or is insufficient to hold an Originator Indemnified Party harmless, then Seller shall contribute to the amount paid or payable
by Seller Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect
not only the relative benefits received by Seller Indemnified Party on the one hand and Seller on the other hand but also the
relative fault of Seller Indemnified Party as well as any other relevant equitable considerations.

 

ARTICLE VIII

 

MISCELLANEOUS

 

SECTION 8.01.           Amendments,
Etc. No amendment or waiver of any provision of this Agreement nor consent to any departure by Seller therefrom shall in any
event be effective unless the same shall be in writing and signed by Buyer, Administrative Agent (with the consent of the Required
Lenders) and (if an amendment) Seller, and if such amendment or waiver affects the obligations of the Performance Guarantor, the
Performance Guarantor consents in writing thereto, and then any such amendment, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. Seller may not amend or otherwise modify any other Transaction
Document executed by it without the written consent of Buyer, Administrative Agent the Required Lenders, and if such amendment
or waiver affects the obligations of the Performance Guarantor, the Performance Guarantor consents in writing thereto.

 

SECTION 8.02.           No
Waiver; Remedies. No failure on the part of Buyer or Seller Indemnified Party to exercise, and no delay in exercising, any
right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power
or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. If an
Event of Default has occurred and is continuing, Buyer (or Administrative Agent as assignee of Buyer’s rights hereunder)
shall have, in addition to all other rights and remedies under this Agreement, any other Transaction Document or otherwise, all
other rights and remedies provided under the UCC of each applicable jurisdiction and other Applicable Laws (including all the
rights and remedies of a secured party upon default under the UCC (including the right to Convey any or all of the Receivables
and Related Assets)). The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided
by Applicable Law. Seller hereby consents to and agrees to be bound by the specific remedies provisions of Section 9.03 and
9.04 of the Loan and Security Agreement as if they were set forth herein mutatis mutandis. Without limiting the foregoing, the
Administrative Agent, each Lender and their respective Affiliates (the “Set-off Parties”) are each hereby authorized
by each of the parties hereto, at any time and from time to time during the continuance of an Event of Default, to the fullest
extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held by and other indebtedness at any time owing to any such Set-off Party to or for the credit to the account
of such party, against all due but unpaid obligations of such party, now or hereafter existing under this Agreement or any other
Transaction Document (other than in respect of any repayment of the Aggregate Loan Amount or Interest by Buyer pursuant to the
Loan and Security Agreement), to any Affected Person, Seller Indemnified Party or any other Affected Person; provided, that any
Set-off Party shall notify such party prior to or concurrently with any such set off.

 

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SECTION 8.03.           Notices,
Etc. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including
facsimile and email communication) and faxed, emailed or delivered, to each party hereto, at its address set forth under its name
Annex 2 or at such other address, facsimile number or email address as shall be designated by such party in a written notice to
the other parties hereto. Notices and communications by (i) facsimile shall be effective when sent (and shall be followed
by hard copy sent by regular mail), (ii) e-mail shall be effective when transmitted to an e-mail address and (iii) notices
and communications sent by other means shall be effective when received; provided that notices and communications to the
Administrative Agent shall not be effective until received by the Administrative Agent and all notices from or to a Credit Party
shall be sent through the Administrative Agent.

 

SECTION 8.04.           Binding
Effect; Assignment. Seller acknowledges that institutions providing financing pursuant to the Loan and Security Agreement
may rely upon the terms of this Agreement. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns and shall also, to the extent provided herein, inure to the benefit of the parties
to the Loan and Security Agreement. Seller acknowledges that Buyer’s rights under this Agreement may be collaterally assigned
to the Administrative Agent or another Secured Party under the Loan and Security Agreement, consents to such assignment and to
the exercise of those rights directly by Borrower, the Administrative Agent or another Secured Party to the extent permitted by
the Loan and Security Agreement and acknowledges and agrees that the Administrative Agent, a Lender and the other Affected Persons
and each of their respective successors and permitted assigns are express third party beneficiaries of this Agreement and the
provisions of this Agreement are intended for the benefit of and will be enforceable by and shall not be amended without the consent
of the Borrower and the Administrative Agent and its successors, transferees and assigns in their respective capacity as Administrative
Agent on behalf of the other Secured Parties.

 

SECTION 8.05.           Survival.
The rights and remedies with respect to any breach of any representation and warranty made by Seller or Buyer pursuant to Section 3.02
or Article IV the indemnification provisions of Article VII, and the provisions of Sections 8.04, 8.05, 8.06, 8.08,
8.09, 8.10, 8.11, 8.12 and 8.14 shall survive any termination of this Agreement.

 

SECTION 8.06.           Costs
and Expenses. In addition to its obligations under Article VII whether or not the transactions contemplated hereby shall
be consummated, Seller, jointly and severally, agrees to pay promptly (a) all of Buyer’s, each Credit Party’s
and Administrative Agent’s actual and reasonable costs and expenses of preparation of the Transaction Documents and any
consents, amendments, waivers or other modifications thereto; (b) all the reasonable fees, expenses and disbursements of
outside counsel to Buyer, each Credit Party and Administrative Agent in connection with the negotiation, preparation, execution
and administration of the Transaction Documents and any consents, amendments, waivers or other modifications thereto and any other
documents or matters requested by any Exela Party; (c) all the actual costs and reasonable expenses of creating and perfecting
security interests in favor of Administrative Agent, for the benefit of Secured Parties, including filing and recording fees,
expenses and taxes, stamp or documentary taxes, search fees, title insurance premiums and reasonable fees, expenses and disbursements
of counsel to Buyer, each Credit Party and Administrative Agent and of counsel providing any opinions that any Credit Party may
request in respect of the Receivables and Related Assets or security interests created pursuant to the Transaction Documents;
(d) all of Buyer, each Credit Party’s and Administrative Agent’s actual costs and reasonable fees, expenses for,
and disbursements of any of Buyer’s, such Credit Party’s or Administrative Agent’s auditors, accountants, consultants
or appraisers whether internal or external, and all reasonable attorneys’ fees (including allocated costs of internal counsel
and expenses and disbursements of outside counsel) incurred by Buyer, each Credit Party and the Administrative Agent; (e) all
the actual costs and reasonable expenses (including the reasonable fees, expenses and disbursements of any appraisers, consultants,
advisors and agents employed or retained by Administrative Agent and its counsel) in connection with the custody or preservation
of any of the Receivables and Related Assets; (f) all the actual costs and reasonable expenses of the Credit Parties, Administrative
Agent and Lenders in connection with the attendance at any meetings in connection with this Agreement and the other Transaction
Documents; (g) all other actual and reasonable costs and expenses incurred by Buyer, each Credit Party and Administrative
Agent in connection with the syndication of the Loans and Commitments and the negotiation, preparation and execution of the Transaction
Documents and any consents, amendments, waivers or other modifications thereto and the transactions contemplated thereby; and
(h) after the occurrence of an Initial Servicer Replacement Event, an Unmatured Event of Default, Amortization Event or an
Event of Default, all costs and expenses, including reasonable attorneys’ fees (including allocated costs of internal counsel)
and costs of settlement, incurred by Buyer, any Credit Party, Administrative Agent and Lenders in collecting any payments due
from any Exela Party hereunder or under the other Transaction Documents by reason of such Initial Servicer Replacement Event,
Unmatured Event of Default, Amortization Event or Event of Default (including in connection with the sale of, collection from,
or other realization upon any of the Receivables or Related Assets or the enforcement of the Transaction Documents) or in connection
with any refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work out”
or pursuant to any insolvency or bankruptcy cases or proceedings.

 

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SECTION 8.07.           Execution
in Counterparts; Integration. This Agreement may be executed in any number of counterparts and by the different parties in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same Agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile
or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed
counterpart of this Agreement. This Agreement, together with the other Transaction Documents, contains a final and complete integration
of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire understanding
among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings.

 

SECTION 8.08.           Governing
Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF
NEW YORK, EXCEPT TO THE EXTENT THAT THE PERFECTION, THE EFFECT OF PERFECTION OR PRIORITY OF THE INTERESTS OF ADMINISTRATIVE AGENT
OR ANY CREDIT PARTY IN THE RECEIVABLES AND RELATED ASSETS IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW
YORK).

 

SECTION 8.09.           Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER TRANSACTION DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING
TO THE SUBJECT MATTER OF THIS TRANSACTION. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS,
TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER
IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS
AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS
AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 8.09 AND EXECUTED BY EACH
OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO
OR ANY OF THE OTHER TRANSACTION DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER. IN THE
EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

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SECTION 8.10.           Consent
to Jurisdiction; Waiver of Immunities. SELLER AND BUYER HEREBY ACKNOWLEDGES AND AGREES THAT:

 

(a)           ALL
JUDICIAL PROCEEDINGS BROUGHT AGAINST IT ARISING OUT OF OR RELATING HERETO OR ANY OTHER TRANSACTION DOCUMENT, MAY BE BROUGHT
IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING
THIS AGREEMENT, IT, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (I) ACCEPTS GENERALLY AND UNCONDITIONALLY
THE NON-EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (II) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (III) AGREES
THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO IT AT ITS ADDRESS PROVIDED IN THIS AGREEMENT IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER IT IN ANY
SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (IV) AGREES
THAT CREDIT PARTIES RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST IT
IN THE COURTS OF ANY OTHER JURISDICTION.

 

(b)           IT
CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS TO IT
AT ITS ADDRESS SPECIFIED IN THIS AGREEMENT. NOTHING IN THIS SECTION 8.10 SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE
AGENT OR ANY OTHER CREDIT PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

SECTION 8.11.           Confidentiality

 

. Each party hereto agrees to comply with,
and be bound by, the confidentiality provisions of Section 14.06 of the Loan and Security Agreement as if they were set forth
herein mutatis mutandis.

 

SECTION 8.12.           No
Proceedings. Seller agrees, for the benefit of the parties to the Loan and Security Agreement, that it will not institute
against, or join any other Person in instituting against, any Bankruptcy Remote Entity any Event of Bankruptcy until one year
and one day after the Final Payout Date. In addition, all amounts payable by Buyer to Seller pursuant to this Agreement shall
be payable solely from funds available for that purpose (after Buyer has satisfied all obligations then due and owing under the
Loan and Security Agreement).

 

    26

     

    

 

SECTION 8.13.           No
Recourse Against Other Parties. No recourse under any obligation, covenant or agreement of Buyer contained in this Agreement
shall be had against any stockholder, employee, officer, director, member, manager incorporator or organizer of Buyer.

 

SECTION 8.14.           Grant
of Security Interest. It is the intention of the parties to this Agreement that each Conveyance of Seller’s right, title
and interest in and to the Receivables, the Related Assets and all the proceeds of all of the foregoing (collectively, the “Transferred
Assets”) to Buyer pursuant to this Agreement shall constitute an absolute and irrevocable purchase and sale or capital
contribution, as applicable, and not a loan or pledge. Notwithstanding the foregoing, if the Conveyance hereunder shall be characterized
as a loan and not a transfer and/or contribution, then (i) this Agreement shall be deemed to be, and hereby is, a security
agreement within the meaning of the Uniform Commercial Code and other applicable law and (ii) any applicable Conveyance by
Seller pursuant to this Agreement shall be deemed to be, and hereby is, the granting and creation of a first priority security
interest in Seller’s right, title and interest in such Transferred Assets (whether now owned or hereafter acquired) and
all proceeds of the foregoing to secure an obligation of Seller to pay over and transfer to Buyer any and all distributions received
by Seller in relation to the applicable Transferred Assets from time to time, whether in cash or in kind, so that the Buyer will
receive all distributions under and proceeds of and benefits of ownership of the applicable Transferred Assets. If any Conveyance
hereunder shall be characterized as a loan and not as a transfer and/or contribution, the Buyer and its assignees shall have,
with respect to such applicable Transferred Assets and other related rights, in addition to all the other rights and remedies
available to the Buyer and its assignees hereunder and under the underlying instruments, all the rights and remedies of a secured
party under any applicable Uniform Commercial Code or any equivalent foreign law, as applicable. Seller and the Buyer shall take
such actions as may be necessary to ensure that any security interest pursuant to this Section 8.14 would be deemed to be
a first priority perfected security interest in favor of the Buyer under Applicable Law and will be maintained as such throughout
the term of this Agreement or until such time as the applicable Conveyance is no longer deemed to be the granting of a security
interest. The Seller hereby authorizes the Buyer to file, or to cause the Administrative Agent to file, financing statements describing
the collateral covered thereby as “all of the debtor’s personal property or assets” or words to that effect,
notwithstanding that such wording may be broader in scope than the collateral described in this Agreement.

 

SECTION 8.15.           Binding
Terms in Other Transaction Documents. Seller hereby makes for the benefit of the Administrative Agent, each Lender, each other
Secured Party, each of the representations, warranties, covenants, and agreements, and accepts all other binding terms, including
the waiver of any rights, which are made applicable to Seller in any other Transaction Document, each as if the same (together
with any provisions incorporated therein by reference) were set forth in full herein..

 

SECTION 8.16.           Severability.
Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

[SIGNATURE PAGES
FOLLOW]

 

    27

     

    

 

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

 

EXELA
TECHNOLOGIES, INC.,

as Initial Servicer

 

	By:	/s/ Shrikant
    Sortur	 
	Name: Shrikant
    Sortur	 
	Title: Chief
    Financial Officer	 

 

EXELA RECEIVABLES 3 HOLDCO, LLC,

as Buyer

 

	By:	/s/ Shrikant Sortur	 
	Name: Shrikant
    Sortur	 
	Title: Chief
    Financial Officer	 

 

BANCTEC, INC.,

ECONOMIC RESEARCH SERVICES, INC.

EXELA ENTERPRISE SOLUTIONS, INC.,

HOV ENTERPRISE SERVICES, INC.,

HOV SERVICES, INC.,

HOV SERVICES, LLC,

J & B SOFTWARE, INC.,

REGULUS GROUP LLC,

REGULUS GROUP II LLC,

REGULUS INTEGRATED SOLUTIONS LLC,

SOURCECORP BPS INC.,

SOURCECORP MANAGEMENT, INC.,

SOURCEHOV HEALTHCARE, INC.

UNITED INFORMATION SERVICES, INC.,

each as an Originator

 

	By:	/s/ Shrikant Sortur	 
	Name: Shrikant
    Sortur	 
	Title: Chief
    Financial Officer	 

 

[Signature Page to
Second Tier Purchase and Sale Agreement (Receivables)]

 

     

     

    

 

NOVITEX GOVERNMENT SOLUTIONS, LLC,

as an Originator

 

	By:	/s/ Parrie Ahammer	 
	Name: Parrie
    Ahammer	 
	Title: Manager	 

 

[Signature Page to
Second Tier Purchase and Sale Agreement (Receivables)]

 

     

     

    

 

Certain identified information has been excluded from
this exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed.
[***] indicates that information has been redacted.

 

ANNEX 1

 

UCC DETAILS SCHEDULE

[***]

 

     

     

    

  

ANNEX 2

 

NOTICE INFORMATION

 

If to Seller or Buyer, to the following:

 

300 First Stamford Place, Second Floor West

Stamford, CT 06902

Attention: Secretary

Email: legalnotices@exelatech.com

Telephone: 203-487-5345

 

With a copy to Administrative Agent at its address set forth
in the Loan and Security Agreement.

 

With an additional copy to legal team at:

 

With a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Attn: Brian Kim

Tel: 373-3780

Email: bkim@paulweiss.comExhibit 10.4

 

(Execution Version)

 

SUB-SERVICING AGREEMENT

 

among

 

EXELA TECHNOLOGIES, INC.

 

Servicer

 

and

 

EACH ENTITY LISTED ON SCHEDULE 1 HERETO

 

Sub-Servicer

 

Dated as of December 17, 2020

 

     

     

    

 

	 	TABLE OF CONTENTS	 
	 	 	 
	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS	1
	 	 	 
	Section 1.01	Definitions	1
	 	 	 
	ARTICLE II SERVICING	1
	 	 	 
	Section 2.01	Each Sub-Servicer to Act as Sub-Servicer	1
	 	 	 
	ARTICLE III GENERAL SERVICING PROCEDURES	2
	 	 	 
	Section 3.01	Servicing Compensation, Remittance to Servicer	2
	 	 	 
	ARTICLE IV TERMINATION	2
	 	 	 
	Section 4.01	Termination	2
	 	 	 
	Section 4.02	Transfer Procedures	3
	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF SUB-SERVICER AND SERVICER	3
	 	 	 
	ARTICLE VI MISCELLANEOUS PROVISIONS	3
	 	 	 
	Section 6.01	Execution; Binding Effect	3
	 	 	 
	Section 6.02	Governing Law	3
	 	 	 
	Section 6.03	Relationship of Parties	4

 

    i

     

    

 

SCHEDULES

 

	SCHEDULE 1	LIST
OF SUB-SERVICERS

 

    ii

     

    

 

This Sub-Servicing Agreement
(as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”) is entered into
as of December 17, 2020, by and between EXELA TECHNOLOGIES, INC., a Delaware corporation (the “Servicer”)
and EACH ENTITY LISTED ON SCHEDULE 1 HERETO, severally and not jointly (each, a “Sub-Servicer”).

 

WHEREAS, the Servicer
has entered into a Loan and Security Agreement dated as of December 10, 2020 (as amended, restated, supplemented or otherwise
modified from time to time, the “Loan Agreement”), pursuant to which the Servicer has agreed to undertake certain
duties and obligations as the Initial Servicer with respect to the servicing, administration and collection of Collateral (including
the Pool Receivables), subject to the terms and conditions set forth in the Loan Agreement;

 

WHEREAS, pursuant to
the Loan Agreement, the Servicer may delegate its duties and obligations thereunder to any sub-servicer, provided that, the Initial
Servicer shall remain liable for the performance of the duties and obligations so delegated; and

 

WHEREAS, the Servicer
desires that each Sub-Servicer sub-service the Collateral (including the Pool Receivables) on behalf of Servicer and under the
terms herein.

 

NOW, THEREFORE, in consideration
of the mutual premises and agreements set forth herein and for other good and valuable consideration, the receipt and the sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01     Definitions.

 

In this Agreement, unless
otherwise specified, capitalized terms are used as defined in (or by reference in) the Loan Agreement.

 

ARTICLE II

 

SERVICING

 

Section 2.01     Each
Sub-Servicer to Act as Sub-Servicer.

 

(a)            Servicer
hereby appoints each Sub-Servicer, and each Sub-Servicer hereby accepts such appointment, to sub-service (including the IP Services),
administer and collect on the Collateral (including the Pool Receivable originated by such Sub-Servicer) on behalf of Servicer
from and after the date hereof, in accordance with the terms of this Agreement and the Loan Agreement. Without limiting any other
provision of, and except as otherwise expressly provided in, this Agreement, from the date hereof until the termination of this
Agreement, each Sub-Servicer covenants that it will perform, observe and discharge all of the duties, agreements, covenants and
obligations of Servicer under the Loan Agreement required to be performed, observed or discharged on or after the date hereof,
and Servicer covenants that each Sub-Servicer is entitled to all rights and benefits under the Loan Agreement unless otherwise
agreed by the parties. Each Sub-Servicer shall have full power and authority, acting alone, to do any and all things in connection
with such servicing and administration which such Sub-Servicer may deem necessary or desirable, consistent with the terms of this
Agreement.

 

    1

     

    

 

Notwithstanding anything
to the contrary in this Agreement, each Sub-Servicer shall service any Pool Receivable that is subject to a Contract in accordance
with the terms of such Contract. In the event of any conflict between the terms of the servicing obligations under this Agreement
and any applicable Contract with respect to any Pool Receivables, the applicable Contract shall control with respect to the method
of servicing the Pool Receivables. To the extent that this Agreement contains any terms that are not in conflict with an applicable
Contract, the terms of this Agreement shall apply.

 

(b)            From
and after the date hereof, each Sub-Servicer shall assume responsibility under this Agreement to sub-service (including the IP
Services) and administer the Collateral (including each Pool Receivable) from time to time, all in accordance with this Agreement,
the Loan Agreement and all Applicable Laws, with reasonable care and diligence, and in accordance with the IP License, the Credit
and Collection Policy and consistent with the past practices of such Sub-Servicer.

 

(c)            Each
Sub-Servicer and the Servicer shall cooperate in good faith to resolve in a mutually agreeable manner any issues or disagreements
arising from the sub-servicing and administering the Pool Receivables.

 

ARTICLE III

 

GENERAL SERVICING PROCEDURES

 

Section 3.01     Servicing
Compensation, Remittance to Servicer.

 

As consideration for
servicing the Collateral, each Sub-Servicer shall receive its share, pro rata, of 90% of the Servicing Fee, between each
Sub-Servicer (the “Sub-Servicing Fee”). Such Sub-Servicing Fee shall be payable by the Servicer from any Servicing
Fees paid to the Servicer in accordance with Section 4.01 of the Loan Agreement. Such amounts will be remitted by
the Servicer to the Sub-Servicers by wire transfer by the 15th Business Day of each calendar month or such other time as the parties
may mutually agree.

 

ARTICLE IV

 

TERMINATION

 

Section 4.01     Termination.

 

(a)            Any
Party may terminate this Agreement without cause or payment of a termination fee upon reasonable advance written notice to the
other Parties; provided, that any Sub-Servicer shall automatically be removed from this Agreement concurrently with any removal
of such Person as an Originator under each First Tier Purchase and Sale Agreement such Sub-Servicer is party to.

 

(b)            The
Administrative Agent may (or at the direction of the Required Class Lenders of any Class, shall) terminate this Agreement
upon an Initial Servicer Default under the Loan Agreement by giving reasonable advance written notice of its desire to terminate
this Agreement to the Initial Servicer (and the Initial Servicer shall provide appropriate notice to each Sub-Servicer).

 

    2

     

    

 

(c)            Nothing
set forth herein, shall limit any other rights of any Credit Party to terminate this Agreement pursuant to the Loan Agreement,
as amended from time to time.

 

Section 4.02     Transfer
Procedures.

 

In the event a Sub-Servicer
is replaced or otherwise transfers servicing with respect to any Collateral pursuant to the terms of this Agreement, such Sub-Servicer
agrees to cooperate with the Servicer or a Successor Servicer, as applicable, and with any party designated as the replacement
sub-servicer in transferring the servicing to such replacement sub-servicer. On or before the date upon which servicing is transferred
from a Sub-Servicer to a replacement sub-servicer (the “Transfer Date”), such Sub-Servicer shall prepare, execute
and deliver to the replacement sub-servicer any and all documents and other instruments, place in such replacement sub-servicer’s
possession all Records necessary or appropriate to effect the purposes of such notice of termination.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES OF SUB-SERVICER

AND SERVICER

 

As of the date hereof,
each Sub-Servicer and the Servicer makes each of the representations and warranties set forth in Section 7.02 of the
Loan Agreement as to itself, which representations and warranties are incorporated herein as if set forth herein in their entirety,
mutatis mutandis.

 

ARTICLE VI

 

MISCELLANEOUS PROVISIONS

 

Section 6.01     Execution;
Binding Effect.

 

This Agreement may be
executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which, when so executed,
shall be deemed to be an original; such counterparts, together, shall constitute one and the same agreement. This Agreement shall
inure to the benefit of and be binding upon each Sub-Servicer and the Servicer and their respective permitted successors and assigns.

 

Section 6.02     Governing
Law.

 

THIS AGREEMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT
THE PERFECTION, THE EFFECT OF PERFECTION OR PRIORITY OF THE INTERESTS OF ADMINISTRATIVE AGENT OR ANY CREDIT PARTY IN THE RECEIVABLES
AND RELATED ASSETS IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK).

 

    3

     

    

 

Section 6.03     Relationship
of Parties.

 

Nothing herein contained
shall be deemed or construed to create a partnership or joint venture between the parties. The duties and responsibilities of each
Sub-Servicer shall be rendered by it as an independent contractor and not as an agent of the Servicer. Each Sub-Servicer shall
have full control of all of its acts, doings, proceedings, relating to or requisite in connection with the discharge of its duties
and responsibilities under this Agreement.

 

[Signature Pages Follow]

 

    4

     

    

 

IN WITNESS WHEREOF, the
parties have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the date first
above written.

 

	 	EXELA TECHNOLOGIES, INC.
	 	 
	 	(Servicer)
	 	 
	 	By:	/s/ Shrikant Sortur
	 	 	Name: 	Shrikant Sortur
	 	 	Title: 	Chief Financial Officer

 

[Signature Page 1 of 3 for Sub-Servicing Agreement]

 

     

     

    

 

	 	BANCTEC, INC.
	 	HOV ENTERPRISE SERVICES, INC.
	 	HOV SERVICES, INC.
	 	HOV SERVICES, LLC
	 	SOURCECORP BPS INC.
	 	SOURCECORP MANAGEMENT, INC.
	 	SOURCEHOV HEALTHCARE, INC.
	 	UNITED INFORMATION SERVICES, INC.
	 	ECONOMIC RESEARCH SERVICES, INC.
	 	J&B SOFTWARE, INC.
	 	REGULUS GROUP, LLC
	 	REGULUS GROUP II, LLC
	 	REGULUS INTEGRATED SOLUTIONS LLC
	 	EXELA ENTERPRISE SOLUTIONS, INC.
	 	 
	 	(each a Sub-Servicer)
	 	 
	 	By:	/s/ Shrikant Sortur
	 	 	Name: 	Shrikant Sortur
	 	 	Title: 	Chief Financial Officer

 

[Signature page 2 of 3 for Sub-Servicing Agreement]

 

     

     

    

 

	 	SOURCEHOV, LLC
	 	 
	 	(a Sub-Servicer)
	 	 
	 	By:	/s/ Srini Murali
	 	 	Name: Srini Murali
	 	 	Title: Manager
	 	 
	 	NOVITEX GOVERNMENT SOLUTIONS, LLC
	 	 
	 	(a Sub-Servicer)
	 	 
	 	By:	/s/ Parrie Ahammer
	 	 	Name: Parrie Ahammer
	 	 	Title: Manager

 

[Signature page 3 of 3 for Sub-Servicing Agreement]

 

     

     

    

 

SCHEDULE 1

 

LIST OF SUB-SERVICERS

 

	Sub-Servicer
	BANCTEC, INC.
	ECONOMIC RESEARCH SERVICES, INC.
	EXELA ENTERPRISE SOLUTIONS, INC.
	SOURCEHOV HEALTHCARE, INC.
	UNITED INFORMATION SERVICES, INC.
	HOV ENTERPRISE SERVICES, INC.
	HOV SERVICES, INC.
	HOV SERVICES, LLC
	J&B SOFTWARE, INC.
	NOVITEX GOVERNMENT SOLUTIONS, LLC
	REGULUS GROUP II LLC
	REGULUS GROUP LLC
	REGULUS INTEGRATED SOLUTIONS LLC
	SOURCECORP BPS INC.
	SOURCECORP MANAGEMENT, INC.
	SOURCEHOV, LLC

 

Schedule
1

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