Document:

First Financial Bank, National Association
	Borrowers:	Environmental Quality Management, Inc.
	 	EQ Engineers, LLC
	Loan Number:	820106477

 

GUARANTY

 

THIS GUARANTY (this
“Guaranty”), dated as of September 28, 2012 (the “Effective Date”), made by EQM TECHNOLOGIES
& ENERGY, INC., a Delaware corporation (“Guarantor”), to, and for the benefit of, FIRST FINANCIAL
BANK, NATIONAL ASSOCIATION, a national banking association, for itself and as agent for each of its affiliates (collectively,
“Bank”), is as follows:

 

1.          GUARANTY.

 

1.1           Guaranty.
For value received and in consideration of any loan, advance or financial accommodation of any kind whatsoever heretofore, now
or hereafter made, given or granted to one or more of ENVIRONMENTAL QUALITY MANAGEMENT, INC., an Ohio corporation (“EQMI”),
or EQ ENGINEERS, LLC, an Indiana limited liability company (“EQE; and, together with EQMI, each a “Borrower”
and, collectively, “Borrowers”), Guarantor hereby absolutely, irrevocably and unconditionally guarantees to
Bank: (i) the full and prompt payment when due of the principal of, all interest on, and all fees in respect of, all of the Loans
and Letter of Credit Obligations and (ii) the full and prompt payment and performance of any and all other Obligations, whether
all or any portion of such Loans, Letter of Credit Obligations and other Obligations are now or hereafter existing, direct or indirect,
related or unrelated, joint or several, or absolute or contingent, whether or not for the payment of money, and whether arising
by reason of an extension of credit, opening of a letter of credit, loan, guarantee, rate management obligation or in any other
manner (all of the indebtedness, liabilities and obligations described in the foregoing clauses (i) and (ii) of this Section
1.1 which are outstanding from time to time are collectively referred to as the “Guaranteed Obligations”).
Guarantor hereby absolutely, irrevocably and unconditionally guarantees to Bank the full and prompt payment and performance of
the Guaranteed Obligations when any of the Guaranteed Obligations are due, including, without limitation, on the occurrence of
an Event of Default, by reason of the maturity or acceleration of any of the Guaranteed Obligations, on the occurrence of a default
under the terms of this Guaranty, or otherwise, and at any times after the date when due.

 

1.2           Capitalized
Terms. Capitalized terms used, but not defined, in this Guaranty, have the meanings attributed to them in the Loan Agreement
dated as of even date herewith among Borrowers and Bank, (as the same may be amended, renewed, consolidated, restated or replaced
from time to time, the “Loan Agreement”). Guarantor has had an opportunity to review the Loan Agreement and
the other Loan Documents and to discuss the same with counsel. As used herein:

 

“Event of Default”
has the meaning given in Section 5.1.

 

“Material Adverse
Effect” means a material adverse effect, as determined by Bank in good faith, on (i) Guarantor’s and/or the Borrowers’,
as applicable: (a) business, property, assets, operations or condition, financial or otherwise or (b) ability to perform any of
its payment or other Obligations under this Guaranty or any of the other Loan Documents to which Guarantor is a party, (ii) the
recoverable value of the Loan Collateral or Bank’s rights or interests therein, (iii) the enforceability of any of the Loan
Documents to which Guarantor is a party, or (iv) the ability of Bank to exercise any of its rights or remedies under the Loan Documents
or by law provided.

 

“Parent Pledge
Agreement” means the Pledge Agreement dated as of even date herewith executed by Parent in favor of Bank, among other
things, granting a Lien in favor of Bank on all of the now and hereafter acquired equity interests of EQMI, and its successors
and assigns.

 

“Permitted Liens”
means the Liens and interests in favor of Bank granted or provided under the Loan Documents and, to the extent reflected on Guarantor’s
books and records and not impairing the operations of Guarantor or any performance under, or contemplated by, the Loan Documents:

 

(i)          Liens
arising by operation of law for taxes not yet due and payable;

 

(ii)         Liens
of mechanics, materialmen, shippers and warehousemen for services or materials for which payment is not yet due;

 

(iii)        Liens
incurred or deposits made in the ordinary course of Guarantor’s business in connection with workers’ compensation,
unemployment insurance and other types of social security;

 

(iv)        Liens,
if any, specifically permitted by Bank from time to time in writing;

 

    	 

    	 

    

 

(v)         Liens
on Equipment securing Indebtedness under capitalized leases or purchase money Indebtedness so long as (a) the total amount of obligations
secured by the purchase money security interests or the subject of capitalized leases during any period does not, together with
any other capital expenditures made by Guarantor for the applicable period, exceed $300,000 in the aggregate in any fiscal year
for Guarantor; (b) such purchase money Indebtedness or capitalized lease Indebtedness will not be secured by any of the Loan Collateral
other than the property so acquired and any identifiable proceeds, (c) any Liens relating to such purchase money Indebtedness or
capitalized lease Indebtedness will not extend to or cover any property of Guarantor other than the property so acquired and any
identifiable proceeds, and (d) the principal amount of such capitalized lease or purchase money Indebtedness will not, at the time
of the incurrence thereof, exceed the value of the property so acquired;

 

(vi)        Liens
for taxes, assessments and other similar charges to the extent payment thereof shall not at the time be required to be made;

 

(vi)        those
Liens described on Schedule II; provided that those Liens secure only the Indebtedness which the Liens secure on
the Effective Date; and

 

(vii)       Liens
arising from the claims or demands of materialmen, mechanics, carriers, warehousemen, landlords, bailees and other like Persons
(“Third Party Claims”) if each of the following conditions is met: (a) the validity or amount of the Third Party
Claim is being contested in good faith and by appropriate and lawful proceedings promptly initiated and diligently conducted, (b)
Guarantor has given prior notice to Bank of the Third Party Claim, (c) Guarantor has established appropriate reserves (in Bank’s
reasonable discretion exercised in good faith) for the Third Party Claim, (d) levy and execution on the Third Party Claim have
been and continue to be stayed, (e) the Third Party Claim does not prevent Bank from having a perfected first priority security
interest in, or a first priority Lien on, the Loan Collateral, (f) Guarantor’s title to, and its right to use, any of the
Loan Collateral are not, in Bank’s judgment exercised in good faith, materially affected thereby, and (g) the amount of all
Third Party Claims do not exceed, as of any date, $100,000 in the aggregate for Guarantor; and, provided, further, that
Guarantor must promptly pay each such Third Party Claim to the extent the dispute is finally settled in favor of the claimant thereof.

 

1.3           Security.
This Guaranty and the Guaranteed Obligations are secured by the Parent Pledge Agreement. Bank shall have all of its rights and
remedies set forth in the Parent Pledge Agreement.

 

2.          NATURE
OF THE GUARANTY.

 

2.1           Absolute
Obligations. The obligations of Guarantor under this Guaranty are absolute and unconditional and will be continuing and remain
in full force and effect subject to Sections 2.2 and 2.6. This is a continuing guaranty of payment and not of collection.
Guarantor’s obligations under this Guaranty will not be released, discharged, affected, modified or impaired by any event,
including, without limitation, any of the following events:

 

(i)          the
compromise, settlement, release, discharge or termination of any or all of the Guaranteed Obligations by operation of law or otherwise,
except as may result from the full and prompt performance and payment of the Guaranteed Obligations;

 

(ii)         the
extension of the time for payment of any of the Guaranteed Obligations, or the waiver, modification or amendment (whether material
or otherwise) of any of the Guaranteed Obligations or the acceptance of partial payments of the Guaranteed Obligations;

 

(iii)        the
taking or failure to take any action under the Loan Agreement, any of the other Loan Documents or this Guaranty;

 

(iv)        the
invalidity or unenforceability of any provision of the Loan Agreement, any of the other Loan Documents, or this Guaranty or any
other defense any Borrower or other obligor or guarantor of the Guaranteed Obligations may assert to the payment or performance
of the Guaranteed Obligations other than payment and satisfaction in full of all of the Guaranteed Obligations;

 

(v)         any
(a) failure by Bank to take any steps to perfect, maintain, or enforce its Liens on any of the Loan Collateral, (b) subordination
of any of the Guaranteed Obligations and any security therefor to any other Indebtedness of any Borrower to any Person, or (c)
loss, release, substitution of, or other dealings with, any collateral or other security given to Bank with respect to the Guaranteed
Obligations;

 

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(vi)        the
voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all of the assets, marshaling
of assets and liabilities, receivership, insolvency, bankruptcy, assignment, composition with creditors or readjustment of, or
other similar proceedings affecting any Borrower, Guarantor or any other obligor or guarantor of any or all of the Guaranteed Obligations;

 

(vii)       any
allegation of invalidity or contest of the validity of this Guaranty in any of the proceedings described in clause (vi) of this
Section 2.1;

 

(viii)      any
act, election or remedy, or other election, occurrence or circumstance of any nature, whether or not under Bank’s control,
that may affect or impair any subrogation right of Guarantor or the effectiveness or value thereof;

 

(ix)         the
default or failure of Guarantor to perform fully any of its obligations set forth in this Guaranty;

 

(x)          Bank’s
election, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”),
of the application of Section 1111(b)(2) of the Bankruptcy Code;

 

(xi)         any
borrowing or grant of a security interest by any Borrower, as debtor-in-possession, under Section 364 of the Bankruptcy Code;

 

(xii)        the
disallowance of all or any portion of Bank’s claim(s) for repayment of the Guaranteed Obligations under Section 502 of the
Bankruptcy Code; or

 

(xiii)       any
other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor other than payment
and satisfaction in full of all of the Guaranteed Obligations.

 

2.2           Revival
of Guaranty. If (i) any demand is made at any time on Bank for the repayment of any amount received by it or as proceeds of
any collateral or security which have been applied in payment of any of the Guaranteed Obligations, and (ii) Bank makes any repayment
by reason of any judgment, decree or order of any court or administrative body or by reason of any settlement or compromise of
such demand, Guarantor will be liable under this Guaranty for all amounts so repaid to the same extent as if such amounts had never
been received originally by Bank.

 

2.3           Waivers
By Guarantor. Guarantor hereby covenants that this Guaranty will not be discharged except by complete performance of the obligations
contained in this Guaranty. Guarantor waives all setoffs and counterclaims and all presentments, demands for performance, notices
of nonperformance, protests, notices of protest, notices of dishonor, and notices of acceptance of, and reliance on, this Guaranty.
Guarantor further waives all (i) notices of the existence, creation or incurring of new or additional Indebtedness arising either
from additional loans extended to any Borrower or otherwise, (ii) notices that the principal amount, or any portion thereof (and
any interest thereon), of the Loans or any of the other Guaranteed Obligations is due, (iii) notices of any and all proceedings
to collect from any Borrower, any indorser or any other guarantor of all or any part of the Guaranteed Obligations, or from anyone
else, (iv) to the extent permitted by law, notices of exchange, sale, surrender or other handling of any security or collateral
given to Bank to secure payment of all or any part of the Guaranteed Obligations, and (v) defenses based on suretyship or impairment
of collateral.

 

2.4           Application
of Proceeds by Bank. Bank will have the exclusive right to determine, in its sole discretion, the order and method of the application
of payments from and credits to, if any, Guarantor, Borrowers or any other Person on account of the Guaranteed Obligations or of
any other liability of Guarantor to Bank.

 

2.5           Responsibility
of Guarantor. Guarantor hereby assumes responsibility for keeping itself informed of the financial condition of Borrowers and
any and all indorsers, obligors or other guarantors of any instrument or document evidencing all or any part of the Guaranteed
Obligations and of all other circumstances bearing on the risk of nonpayment of the Guaranteed Obligations or any part thereof
that diligent inquiry would reveal. Bank will have no duty to advise Guarantor of information known to Bank regarding such condition
or any such circumstances.

 

2.6           Termination
of Guaranty. Except as provided in Section 2.2, Guarantor’s obligations under this Guaranty for the Guaranteed
Obligations will terminate upon the later to occur of: (a) the payment and performance in full of the Guaranteed Obligations and
(b) the Payment in Full of the Obligations.

 

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2.7           Taxes.
All payments to be made hereunder by Guarantor shall be made without setoff, counterclaim or other defense. All such payments shall
be made free and clear of and without deduction for or on account of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by
any governmental authority (collectively, “Taxes”) excluding Taxes imposed on or measured by Bank’s gross
or net income, franchise taxes, branch profits taxes, taxes on doing business or taxes measured by or imposed upon the overall
capital or net worth of Bank or its applicable lending office, or any branch or affiliate thereof, in each case imposed by the
jurisdiction under the laws of which Bank, applicable lending office, branch or affiliate is organized or is located, or any nation
within which such jurisdiction is located or any political subdivision thereof. If any Taxes are imposed and required to be withheld
from any amount payable by Guarantor hereunder, Guarantor shall be obligated to (a) pay such additional amount so that Bank will
receive a net amount (after giving effect to the payment of such additional amount and to the deduction of all Taxes) equal to
the amount due hereunder, (b) pay such Taxes to the appropriate taxing authority for the account of Bank, and (c) as promptly as
possible thereafter, send Bank a certified copy of any original official receipt showing payment thereof, together with such additional
documentary evidence as Bank may from time to time require in its discretion exercised in good faith. If Guarantor fails to pay
any Taxes when due to the appropriate taxing authority or fails to remit to Bank the required receipts or other required documentary
evidence, Guarantor shall be obligated to indemnify Bank for any incremental Taxes, interest or penalties that may become payable
by Bank as a result of such failure. The obligations of Guarantor under this Section 2.7 shall survive the repayment of
the Guaranteed Obligations and the termination of the Loan Agreement and the other Loan Documents.

 

3.          REPRESENTATIONS
AND WARRANTIES; COVENANTS.

 

3.1           Representations
and Warranties. To induce Bank to have extended and to continue to extend the Guaranteed Obligations, and for other good and
valuable consideration, Guarantor hereby represents and warrants to Bank that:

 

(a)            This
Guaranty is the legal, valid and binding obligation of Guarantor, enforceable in accordance with its terms;

 

(b)            The
execution, delivery, and such performance of this Guaranty does not and will not, by the lapse of time, by the giving of notice,
or the satisfaction of any other condition, violate or contravene any authority having the force of law or any agreement, instrument
or other document to which Guarantor is a party or by which Guarantor or any of its properties is or may be bound;

 

(c)            The
execution and delivery of this Guaranty by Guarantor does not: (i) require any consent or approval of any Person, (ii) violate,
or constitute a default under, any rule or provision of Guarantor’s articles, certificates, regulations, bylaws, operating
agreement, any resolution of its members, managers, or directors, as applicable, or other agreement, document or instrument to
which Guarantor is a party or by which Guarantor or any of Guarantor’s properties is or may be bound or affected, (iii) violate,
or constitute a default under, any law, requirement, rule, regulation, ordinance or restriction of any Governmental Authority or
agency applicable to Guarantor or by which Guarantor’s properties are bound or affected, or (iv) result in the creation
or imposition of any Lien on any of the property of Guarantor except in favor of Bank;

 

(d)            There
is no action or proceeding pending before any court or Governmental Authority which materially, adversely affects the condition
(financial or otherwise) of Guarantor or any of its properties;

 

(e)            Attached
hereto as Schedule I, and incorporated by reference herein, is a true and complete listing of all Indebtedness for borrowed
money of each Guarantor as of the Closing Date. Except as set forth on Schedule I, no Guarantor has guaranteed the obligations
of any Person (except in favor of Bank and by indorsement of negotiable instruments payable at sight for deposit or collection
or similar banking transactions in the usual course of such entity’s business);

 

(f)           Guarantor
(i) is duly organized and is and shall remain validly existing and in good standing under the laws of Delaware, and is and shall
remain qualified to do business as a foreign corporation under the laws of each jurisdiction in which the failure to be so qualified
and in good standing could reasonably be expected to have a Material Adverse Effect, and (ii) has and shall maintain all requisite
power and authority, corporate or otherwise, to conduct its business, to own its property, to execute, deliver and perform all
of its obligations under this Guaranty and each of the other Loan Documents, as applicable, to which Guarantor is a party.

 

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3.2           Covenants.
Until this Guaranty is terminated in accordance with its terms:

 

(a)          Indebtedness.
Without Bank’s prior written consent, Guarantor will not incur any Indebtedness other than: (i) the Beacon Noteholder Subordinated
Debt, the Additional Beacon Noteholder Subordinated Debt, the December 2011 Beacon Noteholder Subordinated Debt, and the other
Indebtedness set forth on Schedule I; (ii) the Guaranteed Obligations; (iii) Indebtedness which (A) which is unsecured,
(B) which is not for borrowed money, (C) which has been incurred in the ordinary course of Guarantor’s or its Subsidiaries’
business, (D) which is not otherwise prohibited under any provision of this Guaranty, and (E) the nonpayment of or other default
under which would not have a Material Adverse Effect; (iv) Indebtedness in respect of taxes, assessments or governmental charges
to the extent that payment thereof shall not at the time be required to be made; (v) Indebtedness in respect of judgments or awards
which (1) have been vacated, discharged or stayed within 10 days of the entry thereof or have been in force for less than
the applicable appeal period so long as execution is not levied thereunder (or in respect of which (A) Guarantor shall at the
time in good faith be prosecuting an appeal or proceedings for review and (B) a stay of execution shall have been obtained pending
such appeal or review), and (2) (A) are not, in the aggregate, in an amount in excess of $100,000 (and individually in excess
of $50,000) of any available insurance coverage, as determined by Bank in its discretion exercised in good faith, in effect to
satisfy such judgments or award for which the insurer has admitted in writing its liability for the full amount thereof and (B)
do not have a Material Adverse Effect (regardless of monetary amount or insurance coverage); (vi) Indebtedness under capitalized
leases or purchase money financing if (1) such Indebtedness is not secured by any of the Loan Collateral other than the property
so acquired and any identifiable proceeds, (2) any Liens relating to such Indebtedness do not extend to or cover any property
of Guarantor other than the property so acquired and any identifiable proceeds therefrom, (3) the principal amount of such capitalized
lease or purchase money Indebtedness will not, at the time of the incurrence thereof, exceed the value of the property so acquired;
and (4) the total amount of such Indebtedness during any period does not exceed $300,000 for Guarantor in any fiscal year; and
(vii) Indebtedness representing reimbursement obligations and other liabilities of Guarantor with respect to surety bonds (whether
payment, performance or otherwise), letters of credit, banker’s acceptances, drafts or similar documents or instruments
issued for such Guarantor’s account in the ordinary course of Guarantor’s business; provided, that no Indebtedness
otherwise permitted under this Section 3.2(a) to be incurred shall be permitted to be incurred if, after giving effect
to the incurrence thereof, any Event of Default shall have occurred and be continuing.

 

(b)          Guaranties.
Without Bank’s prior written consent, Guarantor will not guaranty or enter into any agreements of guaranty or indemnity
of the obligations of any Person except (i) those guaranties which are in favor of Bank; (ii) by indorsement of negotiable instruments
payable at sight for deposit or collection or similar banking transactions in the usual course of such Guarantor’s business,
and (iii) guaranties of direct obligations of Guarantor’s direct and indirect Subsidiaries, which obligations are permitted
under the Loan Documents.

 

(c)          Payments
on Subordinated Debt; Amendments. Guarantor will not, and will not permit any of its Subsidiaries to: (i) make any payment
(including any principal, premium, interest, fee or charge) with respect to any of the Beacon Noteholder Subordinated Debt, the
Additional Beacon Noteholder Subordinated Debt or the December 2011 Beacon Noteholder Subordinated Debt except as expressly permitted
by the Beacon Noteholder Subordination Agreement, the Additional Beacon Noteholder Subordination Agreement or the December 2011
Beacon Noteholder Subordination Agreement, as applicable; (ii) repurchase or acquire for value any of the Beacon Noteholder Subordinated
Debt, the Additional Beacon Noteholder Subordinated Debt or the December 2011 Beacon Noteholder Subordinated Debt except as expressly
permitted by the Beacon Noteholder Subordination Agreement, the Additional Beacon Noteholder Subordination Agreement or the December
2011 Beacon Noteholder Subordination Agreement, as applicable; or (iii) amend, or consent to any amendment to, the Beacon Noteholder
Subordinated Debt Documents, the Additional Beacon Noteholder Subordinated Debt Documents, the December 2011 Beacon Noteholder
Subordinated Debt Documents, or any one or more thereof.

 

(d)          
Title to Property; No Liens. Guarantor will have: (i) good and indefeasible title to, and ownership of, all of its personal
property and (ii) good and marketable fee simple title to all of its real property, in each case free and clear of all Liens except
to the extent of Permitted Liens.

 

(e)          Maintenance
of Books and Records; Access and Inspection. Guarantor shall, and shall cause each of its Subsidiaries to, keep and maintain
complete books of account, records and files with respect to its business in accordance with GAAP consistently applied and shall
accurately and completely record all transactions therein. Bank may, at all times during normal business hours, have (i) access
to, and the right to examine and inspect, all of Guarantor’s real and personal property and (ii) access to, and the right
to inspect, audit and make extracts from, all of Guarantor’s records, files and books of account, and Guarantor shall execute
and deliver at the request of Bank such instruments as may be necessary for Bank to obtain such information concerning the business
of Guarantor as Bank may require from any Person; however, unless an Event of Default has occurred or exists, Bank will
give Guarantor reasonable notice before it makes the inspections and examinations at any office or place of business of Guarantor.

 

(f)          Mergers;
Acquisitions. Guarantor will not merge or consolidate or be merged or consolidated with or into any other Person, or otherwise
reorganize, liquidate or wind-up or dissolve itself.

 

(g)          Liability
Insurance. Guarantor will, at all times, maintain in full force and effect such liability insurance with respect to its activities
and business interruption, product liability and other insurance as may be reasonably required by Bank, such insurance to be provided
by insurer(s) reasonably acceptable to Bank. Such insurance shall name Bank as an additional insured containing a severability
of interest/cross-liability endorsement acceptable to Bank.

 

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(h)          Property
Insurance. Guarantor will insure all of its real and personal property against loss or damage by fire, theft, burglary, pilferage,
loss in transit and such other extended coverage hazards as Bank shall specify in amounts and under policies by insurers reasonably
acceptable to Bank. The policies or a certificate thereof signed by the insurer evidencing that such insurance coverage is in
effect for periods of not less than one year (as measured from the date of renewal) shall be delivered to Bank within five Business
Days after the issuance of the policies to Guarantor and after each renewal thereof. All premiums thereon shall be paid by Guarantor
when due so as to keep such insurance in full force and effect at all times. With respect to any policy insuring any Loan Collateral,
such policy shall name Bank (and no other party, except to the extent of Permitted Liens) as loss payee and, as appropriate, mortgagee
under a New York standard mortgagee clause or other similar clause acceptable to Bank and shall provide that such policy may not
be amended or canceled without 30 days prior written notice to Bank. If Guarantor fails to do so, Bank may (but shall not be required
to) procure such insurance with respect to any of the Loan Collateral, and all such costs and expenses incurred by Bank shall
be payable by Guarantor on demand and secured by the Loan Collateral provided by Guarantor.

 

(i)          Solvency.
Guarantor will continue to be Solvent.

 

3.3           Parent
Pledge Agreement. Guarantor will perform, observe and comply with all of the terms and conditions of the Parent Pledge Agreement.

 

4.          EXPENSES.
Guarantor will pay all of the costs, expenses and fees, including, without limitation, all reasonable attorneys’ fees, incurred
by Bank in enforcing or attempting to enforce this Guaranty, whether the same is enforced by suit or otherwise, and all amounts
recoverable by law, including, without limitation, interest on any unpaid amounts due under this Guaranty.

 

5.          DEFAULT;
SUBORDINATION; MAXIMUM LIABILITY.

 

5.1           Events
of Default. (i) Each of the following events, whether or not caused by or within the control of Guarantor, will constitute
an “Event of Default” under this Guaranty:

 

(a)          Guarantor
does not pay, when due, any of the Indebtedness owing from such Guarantor to Bank;

 

(b)          Guarantor
does not observe, perform, or comply with any term or provision of this Guaranty or of any of the other Loan Documents to which
such Guarantor is a party or by which it is bound (exclusive of those defaults covered by the other clauses of this Section
5.1(i));

 

(c)          Guarantor
fails to make any payment due to any Affiliate of Bank, materially breaches any agreement between such Guarantor and any Affiliate
of Bank, or makes any material misrepresentation to any Affiliate of Bank;

 

(d)          Any
representation, warranty or statement made by, or on behalf of Guarantor, (1) in this Guaranty, in connection with this Guaranty,
in connection with any transaction relating to this Guaranty or in any of the other Loan Documents was false in any material respect,
in the good faith judgment of Bank, when made or furnished or when treated as being made or furnished or (2) to induce Bank to
make any Loan was false in any material respect, in the good faith judgment of Bank, when made or furnished or when treated as
being made or furnished;

 

(e)          Guarantor:
(1) is, as of any date, not Solvent, (2) becomes generally unable to pay its debts as they become due, (3) makes a general assignment
for the benefit of creditors, or (4) calls a meeting of creditors for the composition of debts; or the Board of Directors of Guarantor
(or any committee thereof) adopts a resolution authorizing or has otherwise authorized the actions described in subitems (3) or
(4) of this clause (e);

 

(f)          (1)
There is filed by Guarantor any case, petition, proceeding or other action (“Bankruptcy Case”) under any existing
or future bankruptcy, insolvency, reorganization, liquidation or arrangement or readjustment of debt law or any similar existing
or future law of any applicable jurisdiction (“Insolvency Law”), (2) an involuntary Bankruptcy Case (“Involuntary
Proceeding”) is commenced against Guarantor under any Insolvency Law and the Involuntary Proceeding is not controverted
within 10 days, or is not dismissed within 60 days, after the commencement of the Bankruptcy Case, or (3) a custodian, receiver,
trustee, sequestrator, or agent is appointed or authorized to take charge of any of Guarantor’s properties;

 

(g)          An
event or development occurs that Bank, in good faith, determines has had a Material Adverse Effect;

 

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(h)          There
occurs an uninsured casualty loss with respect to Guarantor’s assets having an aggregate fair market value of greater than
$100,000;

 

(i)          Any
default occurs under the terms applicable to any Indebtedness of Guarantor in an aggregate amount exceeding $250,000 which represents
any borrowing or financing from, by or with any Person;

 

(j)          A
contribution failure occurs with respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA;

 

(k)          There
is instituted against Guarantor any criminal proceeding for which forfeiture of any asset having an aggregate fair market value
of greater than $500,000 is a potential penalty and is reasonably likely to occur, or Guarantor is enjoined, restrained or in any
way prevented by order of any Governmental Authority from conducting any material part of its business affairs and such order is
not completely stayed, to the satisfaction of Bank, or dissolved within one Business Day from the effective date of such order;

 

(l)          Guarantor
shall voluntarily dissolve or cease to exist, or any final and nonappealable order or judgment shall be entered against Guarantor
decreeing its involuntary dissolution; or

 

(m)          Guarantor
or any of its Subsidiaries discovers, identifies, is given notice by any Person, or otherwise has knowledge of (1) the existence
of any Environmental Liability or (2) any one or more Releases of Hazardous Substances on, about or affecting any real property
owned or occupied by Guarantor or its Subsidiaries or Guarantor’s business operations, which, (A) is not entirely covered
by insurance and (B) by itself or in the aggregate, will or could reasonably be estimated to subject Guarantor to indebtedness,
liability, or obligations in excess of $500,000 during the term of this Guaranty.

 

(ii)         Each
Event of Default will be deemed continuing until it is waived in writing by, or cured to the written satisfaction of, Bank.

 

5.2           Payment
of Guaranteed Obligations. At any time after all or any portion of the Guaranteed Obligations are due and payable, whether
on maturity, after the acceleration of any of the Guaranteed Obligations, on the occurrence of an Event of Default, on the occurrence
of any default under this Guaranty, or otherwise: (i) Guarantor will, on the demand of Bank, immediately deposit with Bank in U.S.
dollars the total amount of the Guaranteed Obligations due and payable (whether due and payable as a result of maturity, acceleration,
or otherwise), and (ii) Bank will have the right: (a) to proceed directly against Guarantor under this Guaranty without first exhausting
any other remedy it may have and without resorting to any security or guaranty held by Bank, (b) to compromise, settle, release,
discharge or terminate any of the obligations of any other obligor(s) or guarantor(s) of the Guaranteed Obligations as Bank, in
its discretion, determines without thereby in any way affecting, limiting or diminishing its rights thereafter to enforce the obligations
of Guarantor under this Guaranty, (c) to sell, collect, or otherwise dispose of and to apply the proceeds of any collateral or
other security given to Bank with respect to the Guaranteed Obligations in satisfaction of the Guaranteed Obligations in such order
and method of application as may be elected by Bank in its discretion exercised in good faith, and (d) to exercise all of Bank’s
other powers, rights and remedies under this Guaranty, the Parent Pledge Agreement, the other Loan Documents and under applicable
law. Bank will not have any obligation to marshal any assets in favor of Guarantor or against or in payment of any or all of the
Guaranteed Obligations.

 

5.3           Subordination.
Until the Guaranteed Obligations have been fully paid, performed and satisfied: (i) any and all claims of Guarantor against Borrowers
(or any one of them), any indorser or any other obligor or guarantor of all or any part of the Guaranteed Obligations, or against
any of their respective properties are, by the signing of this Guaranty by Guarantor, made subordinate and subject in right of
payment and performance to the prior payment and performance to Bank in full of all of the Guaranteed Obligations; and (ii) Guarantor
will not exercise any right to enforce any remedy which Guarantor now has or may in the future have against any Borrower, any indorser
or any other obligor or guarantor of all or any part of the Guaranteed Obligations.

 

5.4           Maximum
Liability. The provisions of this Guaranty are severable, and in any action or proceeding involving any state corporate law,
or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally,
if the obligations of Guarantor under this Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable
on account of the amount of Guarantor’s liability under this Guaranty, then, notwithstanding any other provision of this
Guaranty to the contrary, the amount of such liability shall, without any further action by Guarantor or Bank, be automatically
limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest
amount determined hereunder being Guarantor’s “Maximum Liability”). This Section with respect to the Maximum
Liability of Guarantor is intended solely to preserve the rights of Bank to the maximum extent not subject to avoidance under applicable
law, and neither Guarantor nor any other Person or entity shall have any right or claim under this Section with respect to such
Maximum Liability, except to the extent necessary so that the obligations of Guarantor hereunder shall not be rendered voidable
under applicable law. Guarantor agrees that the Guaranteed Obligations may at any time and from time to time exceed the Maximum
Liability of Guarantor without impairing this Guaranty or affecting the rights and remedies of Bank hereunder; provided
that, nothing in this sentence shall be construed to increase Guarantor’s obligations hereunder beyond its Maximum Liability.

 

    	-7-

    	 

    

 

6.          GENERAL.

 

6.1           Cumulative
Remedies. The remedies provided in this Guaranty, the Loan Agreement, and the other Loan Documents are cumulative and not exclusive
of any remedies provided by law. Exercise of one or more remedy(ies) by Bank does not require that all or any other remedy(ies)
be exercised and does not preclude later exercise of the same remedy. If there is any conflict, ambiguity, or inconsistency, in
Bank’s judgment, between the terms of this Guaranty and any of the Loan Agreement or other Loan Documents, then the applicable
terms and provisions, in Bank’s judgment, providing Bank with the greater rights, remedies, powers, privileges, or benefits
will control.

 

6.2           Waivers
and Amendments in Writing. Failure by Bank to exercise any right, remedy or option under this Guaranty, the Loan Agreement
or in any other Loan Document or delay by Bank in exercising the same shall not operate as a waiver by Bank of its right to exercise
any such right, remedy or option. No waiver by Bank shall be effective unless it is in writing and then only to the extent specifically
stated. This Guaranty cannot be amended, modified, changed or terminated orally.

 

6.3           Entire
Agreement; Counterparts; Fax Signatures. This Guaranty and the other Loan Documents to which Guarantor is a party constitute
the entire agreement between the parties with respect to the subject matter of this Guaranty, and supersede all prior written and
oral agreements and understandings. Any request from time to time by Guarantor for Bank’s consent under any provision in
this Guaranty must be in writing, and any consent to be provided by Bank under this Guaranty from time to time must be in writing
in order to be binding on Bank; however, Bank will have no obligation to provide any consent requested by Guarantor, and
Bank may, for any reason in its discretion exercised in good faith, elect to withhold the requested consent. Two or more duplicate
originals of this Guaranty may be signed by the parties, each of which shall be an original but all of which together shall constitute
one and the same instrument. Any documents delivered by, or on behalf of, Guarantor by facsimile transmission or other electronic
delivery of an image file reflecting the execution hereof: (i) may be relied on by each party as if the document were a manually
signed original and (ii) will be binding on each party for all purposes of the Loan Agreement and other Loan Documents.

 

6.4           Headings;
Construction. Section headings in this Guaranty are included for convenience of reference only and shall not relate to the
interpretation or construction of this Guaranty. Any and all references in this Guaranty to any other document or documents will
be references to that other document or documents as they may, from time to time, be modified, amended, renewed, consolidated,
extended or replaced.

 

6.5           Separate
Instrument. This Guaranty constitutes a separate instrument, enforceable in accordance with its terms, and neither this Guaranty
nor the obligations of Guarantor under this Guaranty will, under any circumstance or in any legal proceeding, be deemed to have
merged into any other agreement or obligation of Guarantor.

 

6.6           Severability.
If any term of this Guaranty is found invalid under Ohio law or laws of mandatory application by a court of competent jurisdiction,
that invalid term will be considered excluded from this Guaranty and will not invalidate the remaining terms of this Guaranty.

 

6.7           OHIO
LAW. THIS GUARANTY HAS BEEN DELIVERED AT AND ACCEPTED AT AND SHALL BE DEEMED TO HAVE BEEN MADE IN HAMILTON COUNTY, OHIO. THIS
GUARANTY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OHIO (WITHOUT REFERENCE
TO OHIO CONFLICTS OF LAW PRINCIPLES).

 

    	-8-

    	 

    

 

6.8           WAIVER
OF JURISDICTION. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR BANK TO ACCEPT THIS GUARANTY AND TO HAVE EXTENDED AND TO CONTINUE
TO EXTEND CREDIT TO BORROWER, GUARANTOR AND BANK AGREE THAT ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS
GUARANTY, ITS VALIDITY OR PERFORMANCE, AND WITHOUT LIMITATION ON THE ABILITY OF BANK, ITS SUCCESSORS AND ASSIGNS, TO EXERCISE ALL
RIGHTS AS TO THE LOAN COLLATERAL AND TO INITIATE AND PROSECUTE IN ANY APPLICABLE JURISDICTION ACTIONS RELATED TO REPAYMENT OF THE
GUARANTEED OBLIGATIONS, SHALL BE INITIATED AND PROSECUTED AS TO ALL PARTIES AND THEIR SUCCESSORS AND ASSIGNS AT CINCINNATI, OHIO.
BANK AND GUARANTOR EACH CONSENTS TO AND SUBMITS TO THE EXERCISE OF JURISDICTION OVER ITS PERSON BY ANY COURT SITUATED AT CINCINNATI,
OHIO HAVING JURISDICTION OVER THE SUBJECT MATTER, AND CONSENTS THAT ALL SERVICE OF PROCESS BE MADE BY CERTIFIED MAIL DIRECTED TO
GUARANTOR AND BANK AT THEIR RESPECTIVE ADDRESSES SET FORTH IN THIS GUARANTY OR AS OTHERWISE PROVIDED UNDER THE LAWS OF THE STATE
OF CINCINNATI, OHIO. GUARANTOR WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

 

6.9           Successors
and Assigns. This Guaranty will inure to the benefit of Bank, its successors and assigns and be binding on the successors and
assigns of Guarantor.

 

6.10         Notices.
Any notice required, permitted or contemplated hereunder shall, except as expressly provided in this Guaranty, be in writing and
addressed to the party to be notified at the address set forth below or at such other address as each party may designate for itself
from time to time by notice hereunder, and shall be deemed validly given: (i) three days following deposit in the U.S. certified
mails (return receipt requested), with proper postage prepaid, or (ii) the next Business Day after such notice was delivered to
a regularly scheduled overnight delivery carrier with delivery fees either prepaid or an arrangement satisfactory with such carrier
made for the payment thereof, or (iii) upon receipt of notice given by telecopy (fax), mailgram, telegram, telex or personal delivery:

 

	To Guarantor:	EQM Technologies & Energy, Inc.
	 	1800 Carillon Boulevard
	 	Cincinnati, Ohio 45240
	 	Attention:  Chief Executive Officer
	 	Fax:  (513) 825-7495
	 	 
	To Bank:	First Financial Bank, National Association
	 	255 E. Fifth Street, Suite 800
	 	Cincinnati, Ohio 45202
	 	Attention: Mr. Thomas J. Fischer, Vice President
	 	Fax: (513) 246-1872

 

6.11         Separate
Action. Each default in payment of any amount due under this Guaranty will, at Bank’s sole option, give rise to a separate
cause of action under this Guaranty, and separate suits, at Bank’s sole option, may be brought under this Guaranty as each
cause of action arises.

 

6.12         Survival
and Continuation of Representations and Warranties. All of Guarantor’s representations and warranties contained in this
Guaranty shall: (i) survive the execution, delivery and acceptance hereof by the parties hereto and the closing of the transactions
described herein or related hereto, (ii) be deemed to be made as of each and every day of the term of this Guaranty, and (iii)
remain true until the Guaranteed Obligations are fully performed, paid and satisfied, subject to any changes to such representations
and warranties that (a) are not prohibited hereby, (b) do not constitute defaults hereunder, or (c) have been consented to by Bank
in writing.

 

6.13         Equitable
Relief. Guarantor recognizes that, in the event that Guarantor fails to perform, observe or discharge any of its obligations
or liabilities under this Guaranty, any remedy at law may prove to be inadequate relief to Bank; therefore, Guarantor agrees
that Bank, if Bank so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity
of proving actual damages.

 

    	-9-

    	 

    

 

6.14         WAIVER
OF JURY TRIAL. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR BANK TO ENTER INTO THIS GUARANTY AND TO HAVE EXTENDED AND TO CONTINUE
TO EXTEND CREDIT TO BORROWER, GUARANTOR AND BANK EACH WAIVE TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING
IN RESPECT OF OR ARISING OUT OF THIS GUARANTY.

 

6.15         Indemnity.
Guarantor shall indemnify, defend, save and hold Bank, its affiliates, and their respective officers, directors, attorneys, and
employees harmless of, from and against all claims, demands, liabilities, judgments, losses, damages, taxes, costs and expenses,
joint or several (including all accounting fees and reasonable attorneys’ fees), that Bank or any such indemnified party
may incur arising out of this Guaranty or any act taken by Bank hereunder (including any arising out of the comparative, contributory
or sole negligence of any of Bank or any such indemnified party) except to the extent of the willful misconduct or gross negligence
of such indemnified party, as determined by a court of competent jurisdiction in a final non-appealable judgment or order. The
provisions of this Section 6.15 shall survive the termination of this Guaranty.

 

[Signature Page Follows]

 

    	-10-

    	 

    

 

	First Financial Bank, National Association
	Borrowers:	Environmental Quality Management, Inc.
	 	EQ Engineers, LLC
	Loan Number:	820106477

 

Guarantor has signed
this Guaranty as of the Effective Date.

 

	 	EQM Technologies &
    Energy, Inc.
	 	 	 
	 	By:	/s/ Robert R. Galvin
	 	 	Robert R. Galvin, Chief Financial Officer

 

Accepted as of the Effective Date.

 

	FIRST FINANCIAL BANK, NATIONAL ASSOCIATION	 
	 	 	 
	By:	/s/ David A. Enright	 
	 	David A. Enright, Vice President	 

 

SIGNATURE PAGE TO

GUARANTY

 

    	 

    	 

    

  

SCHEDULE I

 

Beacon Noteholder Subordinated Debt

 

Additional Beacon Noteholder Subordinated
Debt (including Additional Greber Convertible Subordinated Note)

 

December 2011 Beacon Noteholder Subordinated
Debt

 

Capital Lease Liability – ($35,816 at
6/30/2012)

 

    	 

    	 

    

 

SCHEDULE II

 

Liens:

 

Liens related to the US Bank Letter of Credit
(SLCLSTL02779) - Lexon Insurance at Beneficiary.

 

Liens in favor of the Beacon Subordinated
Noteholders on the Beacon Texas Facility to the extent expressly permitted by, and subject to the terms of, the Beacon Noteholder
Subordination Agreement.

 

The encumbrances on the Beacon Texas Facility
as set forth in that certain Commitment for Title Insurance, No. 11-7406-23857 issued by Fidelity National Title Insurance Company
dated January 3, 2011 (FN#11-197549).

 

Liens related to Capital LeasesExhibit 10.1

 

FIRST Amendment

to

Loan
and security agreement

 

THIS
fIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 13th
day of November, 2012, by and among (a) SILICON VALLEY BANK, a California corporation with a loan production office located
at5 Radnor Corporate Center, 100 Matsonford Road, Suite 555, Radnor, Pennsylvania 19087 (“Bank”)
and (b) (i) INSPRO TECHNOLOGIES CORPORATION, a Delaware corporation
whose address is 150 N. Radnor-Chester Road, Suite B-101, Radnor, Pennsylvania 19087 (“Corp.”), (ii)
INSPRO TECHNOLOGIES, LLC, a Delaware limited liability company
whose address is 1510 Chester Pike, Baldwin Tower, Suite 400, Eddystone, Pennsylvania 19022 (“LLC”),
and (iii) ATIAM TECHNOLOGIES L.P., a Delaware limited partnership
whose address is 1510 Chester Pike, Baldwin Tower, Suite 400, Eddystone, Pennsylvania 19022 (“L.P.”)
(Corp, LLC and L.P. are individually and collectively, jointly and severally, “Borrower”).

 

Recitals

 

A.           Bank
and Borrower have entered into that certain Loan and Security Agreement dated as of October 3, 2012 (as the same may from time
to time be further amended, modified, supplemented or restated, the “Loan Agreement”).

 

B.           Bank
has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.           Borrower
has requested that Bank amend the Loan Agreement to (i) waive certain covenant defaults, (ii) revise a financial covenant,
and (iii) make certain other revisions to the Loan Agreement as more fully set forth herein.

 

D.           Bank
has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject
to the conditions and in reliance upon the representations and warranties set forth below.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.          Definitions.
Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

 

2.          Amendments
to Loan Agreement.

 

2.1           Section
6.7 (Financial Covenant). Section 6.7 is amended in its entirety and replaced with the following:

 

6.7           Financial
Covenant. Maintain at all times, to be reported as of the last day of each month, on a consolidated basis with respect to Borrower
and its Subsidiaries, an Adjusted Quick Ratio of at least (a) 1.75 to 1.0 commencing with the month ending August 31, 2012 and
as of the last day of each month thereafter, through and including the month ending October 31, 2012, and (b) 1.50 to 1.0 commencing
with the month ending November 30, 2012 and as of the last day of each month thereafter.

 

2.2           Exhibit
D (Compliance Certificate). The Compliance Certificate is amended in its entirety and replaced with the Compliance Certificate
in the form of Schedule 1 attached hereto.

 

    	 

    	 

    

 

3.          Limitation
of Amendments.

 

3.1           The
amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as
written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition
of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under
or in connection with any Loan Document.

 

3.2           This
Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties,
covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall
remain in full force and effect.

 

4.          Waivers.
Bank hereby waives Borrower’s (i) existing default under the Loan Agreement by virtue of Borrower’s failure to
comply with the Adjusted Quick Ratio financial covenant set forth in Section 6.7 thereof as of the month ended September 30, 2012
and (ii) anticipated default under the Loan Agreement by virtue of Borrower’s anticipated failure to comply with the Adjusted
Quick Ratio financial covenant set forth in Section 6.7 thereof as of the month ended October 31, 2012. Bank’s waiver of
Borrower’s compliance of said affirmative covenant shall apply only to the foregoing specific periods. Borrower hereby acknowledges
and agrees that except as specifically provided herein, nothing in this Section or anywhere in this Amendment shall be deemed or
otherwise construed as a waiver by Bank of any of its rights and remedies pursuant to the Loan Documents, applicable law or otherwise.

 

5.          Representations
and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

 

5.1           Immediately
after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate
and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to
an earlier date, in which case they are true and correct as of such date),and (b) no Event of Default has occurred and is
continuing;

 

5.2           Borrower
has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended
by this Amendment;

 

5.3           The
organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been
amended, supplemented or restated and are and continue to be in full force and effect;

 

5.4           The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, have been duly authorized;

 

5.5           The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any
contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental
or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

 

    	 

    	 

    

 

5.6           The
execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement,
as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing,
recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on
either Borrower, except as already has been obtained or made; and

 

5.7           This
Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower
in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

 

6.          Ratification
of Perfection Certificate. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained
in a certain Perfection Certificate dated as of October 3, 2012 between Borrower and Bank, and acknowledges, confirms and agrees
the disclosures and information Borrower provided to Bank in said Perfection Certificate have not changed, as of the date hereof.

 

7.          No
Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims
against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses,
claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder.

 

8.          Integration.
This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations
or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the
subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

 

9.          Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute
one and the same instrument.

 

10.         Effectiveness.
This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto,
and (b) Borrower’s payment of Bank’s legal fees and expenses incurred in connection with this Amendment.

 

[Signature page follows.]

 

In
Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first
written above. 

 

	BANK	BORROWER
	 	 
	SILICON VALLEY BANK	INSPRO TECHNOLOGIES CORPORATION
	 	 
	By   s/s Richard White	By        /s/ Anthony R. Verdi
	Name:   Richard White	Name:  Anthony R. Verdi
	Title:   Relationship Manager	Title: Chief Executive Officer, Chief Operating Officer and Chief Financial Officer

 

    	 

    	 

    

 

	 	INSPRO TECHNOLOGIES, LLC
	 	 
	 	By        /s/ Anthony R. Verdi
	 	Name:  Anthony R. Verdi
	 	Title: Chief Financial Officer
	 	 
	 	ATIAM TECHNOLOGIES L.P.
	 	 
	 	By        /s/ Anthony R. Verdi
	 	Name:  Anthony R. Verdi
	 	Title: Chief Financial Officer

 

Schedule 1

 

EXHIBIT D

 

COMPLIANCE CERTIFICATE

 

	TO:	SILICON VALLEY BANK	Date:	 

FROM:  INSPRO TECHNOLOGIES CORPORATION

INSPRO TECHNOLOGIES, LLC

ATIAM TECHNOLOGIES L.P.

 

The undersigned authorized officer of INSPRO TECHNOLOGIES CORPORATION,
INSPRO TECHNOLOGIES, LLC and ATIAM TECHNOLOGIES L.P. (“Borrower”) certifies that under the terms and conditions of
the Loan and Security Agreement between Borrower and Bank (the “Agreement”):

(1) Borrower is in complete compliance for the period ending
_______________ with all required covenants except as noted below; (2) there are no Events of Default; (3) all representations
and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however,
that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified
by materiality in the text thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; (4) Borrower,
and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has
timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except
as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims
made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously
provided written notification to Bank.

 

Attached are the required documents supporting the certification.
The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except
as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time
or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined
not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings
given them in the Agreement.

 

    	 

    	 

    

 

Please indicate compliance status by circling Yes/No under
“Complies” column.

 

	Reporting Covenant	 	Required	 	Complies
	 	 	 	 	 
	Monthly financial statements with 
 Compliance Certificate	 	Monthly within 30 days	 	Yes   No
	Annual financial statement (CPA Audited)	 	FYE within 180 days	 	Yes   No
	10-Q, 10-K and 8-K	 	Within 5 days after filing with SEC	 	Yes   No
	Borrowing Base Certificate A/R & A/P Agings, and Deferred Revenue schedule	 	Monthly within 30 days	 	Yes   No
	Board approved projections	 	Upon request of Bank	 	Yes   No

 

	Financial Covenant	 	Required	 	Actual	 	Complies
	 	 	 	 	 	 	 
	Maintain at all times (reported monthly)	 	 	 	 	 	 
	Adjusted Quick Ratio	 	*	 	_____:1.0	 	Yes   No

 

*As set forth in Section 6.7 of the Loan and Security Agreement

 

The following financial covenant analysis
and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

 

The following are the exceptions with respect
to the certification above: (If no exceptions exist, state “No exceptions to note.”) 

 

 

 

 

 

	INSPRO TECHNOLOGIES CORPORATION	 	BANK USE ONLY
	 	 	 	 	 	 	 	 
	By:	 	 	 	Received by:	 	 
	Name:	 	 	 	 	 	authorized signer	 
	Title:	 	 	 	Date:	 	 	 
	 	 	 	 	 	 	 	 
	INSPRO TECHNOLOGIES, LLC	 	Verified:	 	 	 
	 	 	 	 	 	 	authorized signer	 
	By:	 	 	 	Date:	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	Compliance Status: Yes No
	 	 	 	 	 
	ATIAM TECHNOLOGIES L.P.	 	 
	 	 	 	 	 
	By:	 	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 

 

 

    	 

    	 

    

 

Schedule 1 to Compliance Certificate

 

Financial Covenants of Borrower

 

In the event of a conflict between this
Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

 

Dated:____________________

 

I.           Adjusted
Quick Ratio (Section 6.7)

		Required:	1.75:1.00 commencing with the month ending August 31,
2012 and as of the last day of each month thereafter, through and including the month ending October 31, 2012; and

 

1.50 to 1.0 commencing with the month ending November 30, 2012
and as of the last day of each month thereafter.

 

	Actual:	____ : 1.00

 

	A.	 	Aggregate value of Borrower’s consolidated unrestricted cash maintained with Bank, plus for a period of ninety (90) days after the Effective Date Borrower’s consolidated, unrestricted cash maintained at PNC Bank	 	$
	 	 	 	 	 
	B.	 	Aggregate value of Borrower’s consolidated net billed accounts receivable, determined according to GAAP	 	$
	 	 	 	 	 
	C.	 	Quick Assets (the sum of lines A and B)	 	$
	 	 	 	 	 
	D.	 	Aggregate value of obligations to Bank	 	$
	 	 	 	 	 
	E.	 	Aggregate value of liabilities that should, under GAAP, be classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness but excluding all Subordinated Debt, and not otherwise reflected in line D above, that mature within one (1) year	 	$
	 	 	 	 	 
	F.	 	Current Liabilities (the sum of lines D and E)	 	$
	 	 	 	 	 
	G.	 	Aggregate value of current portion of all amounts received or invoiced by Borrower in advance of performance under contracts and not yet recognized as revenue	 	 
	 	 	 	 	 
	H.	 	Line F minus G	 	 
	 	 	 	 	 
	I.	 	Quick Ratio (line C divided by line H)	 	 

 

Is line I equal to or greater than:

 

1.75:1.00 commencing with the month ending August 31,
2012 and as of the last day of each month thereafter, through and including the month ending October 31, 2012; and

 

1.50 to 1.0 commencing with the month ending November
30, 2012 and as of the last day of each month thereafter?

 

	_____  No, not in compliance	 	_____  Yes, in compliance

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