Document:

Exhibit 10.2

 

 

 

THIRD CONSOLIDATED, AMENDED AND RESTATED
SECURITY AGREEMENT

 

THIS CONSOLIDATED, AMENDED AND RESTATED
SECURITY AGREEMENT (this “Agreement”), dated as of December 1, 2015, is made by and between Protalex, Inc.,
a Delaware corporation (the “Grantor”), and Niobe Ventures, LLC (the “Secured Party”) and
amends and restates the Security Agreements by and between Grantor and Secured Party described on Exhibit B hereto.

 

WHEREAS, the Grantor has issued
to the Secured Party a Consolidated, Amended and Restated Promissory Note in the principal amount of Nine Million Two Hundred Nineteen
Thousand Three Hundred Sixty Six and 67/100 Dollars ($9,219,366.67) (the “Consolidated Note”); and

 

WHEREAS, the Grantor and the Secured
Party have entered into an Amended and Restated 2014 Credit Facility Agreement, dated of even date hereof, pursuant to which the
Secured Party may loan to the Grantor up to an incremental $7.5 million (the “Credit Facility Agreement”); and

 

WHEREAS, the Grantor and
the Secured Party have agreed to execute and deliver this Agreement, among other things, to continue to secure the obligations
of the Grantor to the Secured Party under the Consolidated Note and any incremental notes issued pursuant to the Credit Facility
Agreement.

 

NOW, THEREFORE, The Grantor and
the Secured Party hereby agree as follows:

 

Definitions; Interpretation.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

“Collateral” means the
property described on Exhibit A attached hereto and all Negotiable Collateral and Intellectual Property to the extent not
described on Exhibit A, except (i) to the extent any such property is nonassignable by its terms without the consent of
the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law,
including, without limitation, applicable provisions of the New York Uniform Commercial Code as amended or supplemented
from time to time.), or (ii) the granting of a security interest in such property is contrary to applicable law, provided that
upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral.

 

“Copyrights” means any
and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative
work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing,
created, acquired or held.

 

“Event of Default” has
the meaning set forth in the Note.

 

“Intellectual Property”
means all of Grantor’s right, title, and interest in and to the following, except to the extent any security interest hereunder
would cause any application for a Trademark to be deemed invalidated, canceled or abandoned due to the grant and/or enforcement
of such security interest, including, without limitation, all U.S. trademark applications that are based on an intent-to-use, unless
and until such time that the grant and/or enforcement of the security interest will not affect the status or validity of such trademark:

 

		(a)	Copyrights, Trademarks and Patents;

 

    	 		 

     

    

  

		(b)	and all trade secrets, and any and all intellectual property rights in computer software and computer
software products now or hereafter existing, created, acquired or held;

 

		(c)	and all design rights which may be available to Grantor now or hereafter existing, created, acquired
or held;

 

		(d)	and all claims for damages by way of past, present and future infringement of any of the rights
included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the
intellectual property rights identified above;

 

		(e)	licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees
and royalties arising from such use to the extent permitted by such license or rights;

 

		(f)	amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents; and

 

		(g)	proceeds and products of the foregoing, including without limitation all payments under insurance
or any indemnity or warranty payable in respect of any of the foregoing.

 

“Lien” means any mortgage,
deed of trust, pledge, security interest, assignment, deposit arrangement, charge or encumbrance, lien, or other type of preferential
arrangement.

 

“Obligations” means
the indebtedness, liabilities and other obligations of the Grantor to the Secured Party under the Consolidated Note including without
limitation, the unpaid principal of the Consolidated Note and all interest accrued thereon payable by the Grantor to the Secured
Party thereunder or in connection therewith.

 

“Patents” means all
patents, patent applications and like protections, including, without limitation, improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same.

 

“Permitted Liens” mean:
(i) Liens in favor of the Secured Party in respect of the Obligations hereunder; (ii) Liens for taxes, fees, assessments or other
governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and which are
adequately reserved for in accordance with GAAP; (iii) Liens of materialmen, mechanics, warehousemen, carriers or employees or
other like Liens arising in the ordinary course of business and securing obligations either not delinquent or being contested in
good faith by appropriate proceedings; (iv) Liens consisting of deposits or pledges to secure the payment of worker’s compensation,
unemployment insurance or other social security benefits or obligations, or to secure the performance of bids, trade contracts,
leases, public or statutory obligations, surety or appeal bonds or other obligations of a like nature incurred in the ordinary
course of business; (v) easements, rights of way, servitudes or zoning or building restrictions and other minor encumbrances on
real property and irregularities in the title to such property which do not in the aggregate materially impair the use or value
of such property or risk the loss or forfeiture of title thereto; and (vi) Liens upon or in any equipment now or hereafter acquired
or held by the Grantor to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing
or refinancing the acquisition of such equipment, provided that the Lien is confined solely to the equipment so acquired and accessions
thereon and proceeds thereof.

 

“Person” means an individual,
corporation, partnership, joint venture, trust, unincorporated organization, governmental agency or authority, or any other entity
of whatever nature.

 

    	 	2	 

     

    

  

“Trademarks” means any
trademark and service mark rights, whether registered or not, applications to register and registrations of the same and like protections,
and the parts of the goodwill of the business connected with the use of and symbolized by such marks.

 

“UCC” means the Uniform
Commercial Code as the same may, from time to time, be in effect in the State of New York.

 

Where applicable and
except as otherwise defined herein, terms used in this Agreement shall have the meanings assigned to them in the UCC.

 

In this Agreement, (i) the
meaning of defined terms shall be equally applicable to both the singular and plural forms of the terms defined; (ii) the
captions and headings are for convenience of reference only and shall not affect the construction of this Agreement; (iii) the
words “hereof,” “herein,” “hereto,” “hereunder” and the like mean and refer to
this Agreement as a whole and not merely to the specific Article, Section, subsection, paragraph or clause in which the respective
word appears; (iv) the words “including,” “includes” and “include” shall be deemed to be followed
by the words “without limitation;” and (v) the term “or” shall not be limiting.

 

Security Interest.

 

Subject to the Permitted
Liens, as security for the payment and performance of the Obligations, the Grantor hereby pledges, assigns and grants to the Secured
Party a security interest in all of the Grantor’s right, title and interest in, to and under all of the Collateral (other
than as set forth in Section 2(b) hereof).

 

Notwithstanding the foregoing,
except for fixtures (to the extent covered by Article 9 of the UCC), such grant of a security interest shall not extend to,
and the term “Collateral” shall not include, any asset which would be real property under the law of the jurisdiction
in which it is located.

 

This Agreement shall
create a continuing security interest in the Collateral that shall remain in effect until terminated in accordance with the provisions
hereof.

 

Financing Statements,
Etc. The Grantor hereby authorizes the Secured Party to file (with a copy thereof to be provided to the Grantor contemporaneously
therewith), at any time and from time to time thereafter, all financing statements, financing statement assignments, continuation
financing statements, and UCC filings, in form reasonably satisfactory to the Secured Party. The Grantor shall execute and deliver
and shall take all other action, as the Secured Party may reasonably request, to perfect and continue perfected, maintain the priority
of or provide notice of the security interest of the Secured Party in the Collateral (subject to the terms hereof) and to accomplish
the purposes of this Agreement. Without limiting the generality of the foregoing, the Grantor ratifies and authorizes the filing
by the Secured Party of any financing statements filed prior to the date hereof that accomplish the purposes of this Agreement.

 

Representations and
Warranties. The Grantor represents and warrants to the Secured Party that:

 

(a)       Grantor is a business entity duly
formed, validly existing and in good standing under the law of the jurisdiction of its organization and has all requisite power
and authority to execute, deliver and perform its obligations under this Agreement.

 

(b)       The execution, delivery and performance
by the Grantor of this Agreement has been duly authorized by all necessary corporate action of the Grantor, and this Agreement
constitutes the legal, valid and binding obligation of the Grantor, enforceable against the Grantor in accordance with its terms,
except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other laws of general
application affecting enforcement of creditors’ rights generally, as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies.

 

    	 	3	 

     

    

  

(c)       Except for the filing of appropriate
financing statements, no authorization, consent, approval, license, exemption of, or filing or registration with, any governmental
authority or agency, or approval or consent of any other Person, is required for the due execution, delivery or performance by
the Grantor of this Agreement unless the same has already been obtained or is being obtained simultaneously in connection herewith.

 

(d)       This Agreement creates a security
interest that is enforceable against the Collateral in which the Grantor now has rights and will create a security interest that
is enforceable against the Collateral in which the Grantor hereafter acquires rights at the time the Grantor acquires any such
rights.

 

(e)       The Grantor has the right and power
to grant the security interests in the Collateral to the Secured Party in the Collateral, and the Grantor is the sole and complete
owner of the Collateral, free from any Lien other than the Permitted Liens.

 

Covenants of the Grantor.
Until this Agreement has terminated in accordance with the terms hereof, the Grantor agrees to do the following:

 

The Grantor shall give
prompt written notice to the Secured Party (and in any event not later than ten (10) days following any change described below
in this subsection) of: (i) any change in the Grantor’s name; (ii) any changes in the Grantor’s identity or structure
in any manner which might make any financing statement filed hereunder incorrect or misleading; or (iii) any change in jurisdiction
of organization; provided that the Grantor shall not locate any Collateral outside of the United States nor shall the Grantor
change its jurisdiction of organization to a jurisdiction outside of the United States.

 

The Grantor shall not
surrender or lose possession of, sell, lease, rent or otherwise dispose of or transfer any of the Collateral or any right or interest
therein, except in the ordinary course of business consistent with past practice and except to the extent of equipment that is
obsolete or no longer useful to its business.

 

The Grantor shall keep
the Collateral free of all Liens except the Permitted Liens.

 

Collection of Accounts.
The Grantor shall endeavor in the first instance diligently to collect all amounts due or to become due on or with respect to the
accounts and other rights to payment.

 

Authorization; Secured
Party Appointed Attorney-in-Fact. The Secured Party shall have the right, to, in the name of the Grantor, or in the name of
the Secured Party or otherwise, upon notice to, but without the requirement of assent by the Grantor, and the Grantor hereby constitutes
and appoints the Secured Party (and any employees or agents designated by a Secured Party) as the Grantor’s true and lawful
attorney-in-fact, with full power and authority to: (i) assert, adjust, sue for, compromise or release any claims under any policies
of insurance; and (ii), execute any and all such other documents and instruments, and do any and all acts and things for and on
behalf of the Grantor, that such Secured Party may deem necessary or advisable to maintain, protect, realize upon and preserve
the Collateral and the Secured Party’s security interests therein and to accomplish the purposes of this Agreement. The Secured
Party agrees that, except upon and during the continuance of an Event of Default, it shall not exercise the power of attorney,
or any rights granted to the Secured Party under this Section 7. The foregoing power of attorney is coupled with an interest and
is irrevocable so long as the Obligations have not been indefeasibly paid and performed in full and the commitments not terminated.
The Grantor hereby ratifies, to the extent permitted by law, all that the Secured Party shall lawfully and in good faith do or
cause to be done by virtue of and in compliance with this Section 7.

 

    	 	4	 

     

    

  

Remedies.

 

Upon the occurrence and
during the continuance of an Event of Default, the Secured Party shall have, in addition to all other rights and remedies granted
to the Secured Party in this Agreement or the Consolidated Note, all rights and remedies of a secured party under the UCC and other
applicable laws. Without limiting the generality of the foregoing, upon the occurrence and during the continuance of an Event of
Default, the Secured Party may sell, resell, lease, use, assign, license, sublicense, transfer or otherwise dispose of any or all
of the Collateral in its then condition or following any commercially reasonable preparation or processing (utilizing in connection
therewith any of Grantor’s assets, without charge or liability to any Secured Party therefor) at public or private sale,
by one or more contracts, in one or more parcels, at the same or different times, for cash or credit, or for future delivery without
assumption of any credit risk, all as the Secured Party deem advisable; provided, however, that the Grantor shall be credited with
the net proceeds of sale only when such proceeds are finally collected by the Secured Party. Each Secured Party shall have the
right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase the whole or any
part of the Collateral so sold, free of any right or equity of redemption, which right or equity of redemption the Grantor hereby
releases, to the extent permitted by law. The Grantor hereby agrees that the sending of notice by ordinary mail, postage prepaid,
to the address of the Grantor set forth herein or subsequent address that the Grantor provides to the Secured Party in writing,
of the place and time of any public sale or of the time after which any private sale or other intended disposition is to be made,
shall be deemed reasonable notice thereof if such notice is sent ten (10) business days prior to the date of such sale or other
disposition or the date on or after which such sale or other disposition may occur.

 

The cash proceeds actually
received from the sale or other disposition or collection of the Collateral, and any other amounts received in respect of the Collateral
the application of which is not otherwise provided for herein shall be applied first, to the payment of the reasonable costs
and expenses of the Secured Party in exercising or enforcing their rights hereunder and in collecting or attempting to collect
any of the Collateral, and to the payment of all other amounts payable to the Secured Party pursuant to Section 12 hereof; and
second, to the payment of the Obligations. Any surplus thereof that exists after payment and performance in full of the
Obligations shall be promptly paid over to the Grantor or otherwise disposed of in accordance with the UCC or other applicable
law. The Grantor shall remain liable to the Secured Party for any deficiency that exists after any sale or other disposition or
collection of the Collateral.

 

Certain Waivers.

 

The Grantor waives, to
the fullest extent permitted by law: (i) any right of redemption with respect to the Collateral, whether before or after sale
hereunder, and all rights, if any, of marshalling of the Collateral or other collateral or security for the Obligations; (ii) any
right to require the Secured Party to: (A) proceed against any Person, (B) exhaust any other collateral or security for
any of the Obligations, (C) pursue any remedy in the Secured Party’s power or (D) except as provided herein or
in the Consolidated Note, make or give any presentments, demands for performance, notices of nonperformance, protests, notices
of protests or notices of dishonor in connection with any of the Collateral; and (iii) all claims, damages and demands against
the Secured Party arising out of the repossession, retention, sale or application of the proceeds of any sale of the Collateral.

 

    	 	5	 

     

    

  

Notices. All notices
or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered personally or
sent by nationally-recognized overnight courier or by registered or certified mail, postage prepaid, return receipt requested or
by facsimile, with confirmation as provided above addressed as follows:

 

If to Grantor:

 

Protalex, Inc.

131 Columbia
Turnpike, Suite 1,

Florham Park,
NJ 07932

Attention:
Chief Financial Officer

 

With copies to

 

Morse, Zelnick, Rose & Lander LLP

825 Third Avenue, 16th Floor

New York, NY 10022

Attention: Kenneth S. Rose,
Esq.

Fax: 212-208-6809

 

If to the Secured Party:

 

Niobe Ventures, LLC

c/o Arnold P. Kling

410 Park Avenue, Suite 1710

New York, NY 10021

Attention: Arnold Kling, Managing
Member

Fax: 212-713-1818

 

With a copy to

 

Morse, Zelnick, Rose & Lander LLP

825 Third Avenue, 16th Floor

New York, NY 10022

Attention: Kenneth S. Rose, Esq.

Fax: 212-208-6809

 

No Waiver; Cumulative
Remedies. No failure on the part of the Secured Party to exercise, and no delay in exercising, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power
or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The
rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges that may
otherwise be available to the Secured Party.

 

Costs and Expenses.
The Grantor agrees to pay all reasonable costs and expenses of the Secured Party, in connection with the enforcement and preservation
of any rights or interests under, this Agreement and the protection, sale or collection of, or other realization upon, any of the
Collateral, including all reasonable expenses of taking, collecting, holding, sorting, handling, preparing for sale, selling or
the like and other such expenses of sales and collections of the Collateral.

 

    	 	6	 

     

    

  

Binding Effect.
This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Grantor, the Secured Party and their respective
successors and assigns.

 

Governing Law.
This Agreement shall be governed by and construed under the laws of the State of New York without regard to principles of conflict
of laws.

 

Entire Agreement;
Amendment. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and shall
not be amended except by the written agreement of the Grantor and the Secured Party. Notwithstanding the foregoing, this Agreement
may not be amended and any term hereunder may not be waived with respect to any Secured Party without the written consent of such
Secured Party unless such amendment or waiver applies to all Secured Party in the same fashion.

 

Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be valid, legal and enforceable under
all applicable laws and regulations. If, however, any provision of this Agreement shall be invalid, illegal or unenforceable under
any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum
requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be invalid, illegal or unenforceable
only to the extent of such invalidity, illegality or limitation on enforceability without affecting the remaining provisions of
this Agreement, or the validity, legality or enforceability of such provision in any other jurisdiction.

 

Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

Termination. Upon
the payment and performance in full of all Obligations, this Agreement shall terminate and the Secured Party shall promptly, at
the cost of the Grantor, execute and deliver to the Grantor such documents and instruments reasonably requested by the Grantor
as shall be necessary to evidence termination of all security interests given by the Grantor to the Secured Party hereunder; provided,
however, that the obligations of the Grantor under Section 12 hereof shall survive such termination.

 

    	 	7	 

     

    

 

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

 

	 	GRANTOR:
	 	 	 
	 	PROTALEX, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	Kirk M. Warshaw, Chief Financial Officer
	 	 	 
	 	 	 
	 	 	 
	 	NIOBE VENTURES, LLC
	 	 	 
	 	 	 
	 	By:	 
	 	 	Arnold P. Kling, Manager

 

    	 	8	 

     

    

 

EXHIBIT A

 

COLLATERAL DESCRIPTION ATTACHMENT TO
SECURITY AGREEMENT

 

DEBTORPROTALEX, INC., a Delaware corporation

 

SECURED PARTY:Niobe Ventures, LLC

 

All personal property of Grantor (herein referred to as
“Grantor” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located
including, without limitation:

 

		(a)	all accounts (including health-care-insurance receivables), chattel paper (including tangible and
electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and
additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including
promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including
returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money,
and all of Grantor’s books and records with respect to any of the foregoing, and the computers and equipment containing
said books and records; provided that notwithstanding the foregoing, "Collateral" shall not include more than 65% of
the stock of any subsidiary that is not incorporated, formed or organized under the laws of the United States, any state thereof
or the District of Columbia (a "Foreign Subsidiary"), or more than 65% of the stock of any subsidiary substantially all
of the assets of which are stock in Foreign Subsidiaries;

 

		(b)	all common law and statutory copyrights and copyright registrations, applications for registration,
now existing or hereafter arising, in the United States of America or in any foreign jurisdiction, obtained or to be obtained on
or in connection with any of the foregoing, or any parts thereof or any underlying or component elements of any of the foregoing,
together with the right to copyright and all rights to renew or extend such copyrights and the right (but not the obligation) of
Secured Party to sue in their own name and/or in the name of the Debtor for past, present and future infringements of copyright;

 

		(c)	all trademarks, service marks, trade names and service names and the goodwill associated therewith,
together with the right to trademark and all rights to renew or extend such trademarks and the right (but not the obligation) of
Secured Party to sue in their own name and/or in the name of the Debtor for past, present and future infringements of trademark;

 

		(d)	all (i) patents and patent applications filed in the United States Patent and Trademark Office
or any similar office of any foreign jurisdiction, and interests under patent license agreements, including, without limitation,
the inventions and improvements described and claimed therein, (ii) licenses pertaining to any patent whether Debtor is licensor
or licensee, (iii) income, royalties, damages, payments, accounts and accounts receivable now or hereafter due and/or payable under
and with respect thereto, including, without limitation, damages and payments for past, present or future infringements thereof,
(iv) right (but not the obligation) to sue in the name of Debtor and/or in the name of Secured Party for past, present and future
infringements thereof, (v) rights corresponding thereto throughout the world in all jurisdictions in which such patents have been
issued or applied for, and (vi) reissues, divisions, continuations, renewals, extensions and continuations-in-part with respect
to any of the foregoing; and

 

		(e)	any and all cash proceeds and/or non-cash proceeds of any of the foregoing, including, without
limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment. All terms
above have the meanings given to them in the New York Uniform Commercial Code, as amended or supplemented from time to
time.

 

    	A-1 

     

    

 

EXHIBIT B

 

PRIOR SECURITY AGREEMENTS

 

		1.	THE CONSOLIDATED, AMENDED AND RESTATED SECURITY AGREEMENT, dated as of October 11, 2013, by and between Protalex, Inc. and
Niobe Ventures, LLC.

 

		2.	THE SECOND CONSOLIDATED, AMENDED AND RESTATED SECURITY AGREEMENT, dated as of November 4, 2014, by and between Protalex, Inc.
and Niobe Ventures, LLC.

 

  

    	B-1Exhibit 4.1

 

Execution Version

 

INSTRUMENT OF RESIGNATION,
APPOINTMENT AND ACCEPTANCE (this “Agreement”), dated as of December 2, 2015, by and among GE EQUIPMENT MIDTICKET
LLC, SERIES 2014-1, a Delaware limited liability company (the “Issuer”), GENERAL ELECTRIC CAPITAL LLC, a Delaware
limited liability company (formerly known as General Electric Capital Corporation) (the “Resigning Administrator”),
and GE CAPITAL US HOLDINGS, INC., a Delaware corporation (the “Successor Administrator”).

 

RECITALS

 

WHEREAS, Issuer and Resigning
Administrator are parties to an Administration Agreement dated as of September 17, 2014 (the “Administration Agreement”);
and

 

WHEREAS, the Resigning Administrator
wishes to resign as Administrator under the Administration Agreement; the Issuer wishes to appoint the Successor Administrator
to succeed the Resigning Administrator as Administrator under the Administration Agreement; and the Successor Administrator wishes
to accept appointment as Administrator under the Administration Agreement.

 

NOW, THEREFORE, in consideration
of the mutual covenants and promises herein, the receipt and sufficiency of which is hereby acknowledged, the Issuer, the Resigning
Administrator and the Successor Administrator agree as follows:

 

ARTICLE ONE

THE RESIGNING ADMINISTRATOR

 

Section 1.          Definitions.
Capitalized terms used in this Agreement and not otherwise defined herein are used as defined in the Administration Agreement.

 

Section 2.          Resignation.
Pursuant to Sections 8(b) and 8(e) of the Administration Agreement, the Resigning Administrator hereby notifies the
Issuer, the Servicer and the Indenture Trustee that the Resigning Administrator is hereby resigning as Administrator under the
Administration Agreement, effective as of the Effective Time. The Issuer hereby consents to the resignation of the Resigning Administrator.

 

Section 3.          Appointment.
The Issuer hereby appoints the Successor Administrator as Administrator under the Administration Agreement, effective as of the
Effective Time, and confirms to the Successor Administrator all the rights, responsibilities, duties and liabilities of the Administrator
under the Administration Agreement.

 

Section 4.          Acceptance
of Appointment. (a) The Successor Administrator hereby accepts its appointment as Administrator under the Administration Agreement,
effective as of the Effective Time, and agrees to perform the duties and obligations set forth therein and shall hereby be vested
with all the rights, responsibilities, duties and liabilities of the Administrator under the Administration Agreement.

 

(b)         This
Agreement shall not constitute (i) a waiver by any of the parties hereto of any obligation or liability which Resigning Administrator
may have incurred in connection with its performance as Administrator under the Administration Agreement or (ii) an assumption
by Successor Administrator of any liability of Resigning Administrator arising out of a breach by Resigning Administrator of its
duties under the Administration Agreement. This Agreement does not constitute a waiver or assignment by Resigning Administrator
of any compensation, reimbursement, expenses or indemnity to which it is or may be entitled pursuant to the Administration Agreement.

 

     

     

    

 

Section 5.          Waiver.
Each of the Issuer and the Servicer, hereby waives the requirement to provide at least sixty (60) days’ prior written notice
of the Resigning Administrator’s resignation pursuant to Sections 8(b) and 8(e) of the Administration Agreement.

 

Section 6.          Representations
of Successor Administrator. The Successor Administrator hereby represents and warrants to the Resigning Administrator and to
the Issuer that this Agreement has been duly authorized, executed and delivered on behalf of the Successor Administrator and constitutes
its legal, valid and binding obligation.

 

Section 7.          Notices.
For the purposes of Section 10 of the Administration Agreement, all notices, whether faxed or mailed, will be deemed received
as provided in Section 10 of the Administration Agreement when sent pursuant to the following instructions:

 

TO THE RESIGNING ADMINISTRATOR:

 

General Electric Capital LLC

901 Main Avenue

Norwalk, Connecticut 06851

Attention: Legal Department

michael.paolillo@ge.com

 

With a copy to:

 

General Electric Capital LLC

201 Merritt 7

Norwalk, Connecticut 06851

Attention: Capital Markets - Securitization

charles.rhodes@ge.com

michael.paolillo@ge.com

 

TO THE SUCCESSOR ADMINISTRATOR:

 

GE Capital US Holdings, Inc.

901 Main Avenue

Norwalk, Connecticut 06851

Attention: Michael Paolillo

michael.paolillo@ge.com

 

    	 	2 
	 
GEEMT 2014-1 Instrument of Resignation and
 Appointment –Administrator

     

    

 

TO THE ISSUER:

 

GE Equipment Midticket LLC, Series 2014-1

10 Riverview Drive

Danbury, Connecticut 06810

Attention: Capital Markets Operations

Telephone: (203) 749-2101

Facsimile: (203) 749-4054

 

With a copy to:

 

GE Capital US Holdings, Inc.

901 Main Avenue

Norwalk, Connecticut 06851

Attention: Michael Paolillo

michael.paolillo@ge.com

 

Section 8.          Miscellaneous.
(a) This Agreement is entered into and the resignation, appointment and acceptance effected hereby shall be effective as of 1:00
a.m. (New York time) on December 2, 2015 (the “Effective Time”); provided, that (i) each of the Issuer,
the Resigning Administrator and the Successor Administrator shall have executed a counterpart of this Agreement and (ii) the Rating
Agency Condition shall have been satisfied.

 

(b)         THIS
AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401(1)
OF THE GENERAL OBLIGATIONS LAW, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA.

 

(c)         This
Agreement may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together
constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by electronic means shall be equally
as effective as delivery of an original executed counterpart of this Agreement.

 

[Signature pages follow.]

 

    	 	3 
	 
GEEMT 2014-1 Instrument of Resignation and
 Appointment –Administrator

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
this Instrument of Resignation, Appointment and Acceptance to be duly executed as of the day and year first above written.

 

	 	GE EQUIPMENT MIDTICKET LLC,
	 	SERIES 2014-1
	 	 	 
	 	 	By: CEF Equipment Holding, L.L.C., its Managing Member
	 	 	 
	 	By: 	/s/ Thomas A. Davidson
	 	 	Name:  	Thomas A. Davidson
	 	 	Title:  	President and Chief Executive Officer

 

    	 	S-1 
	 
GEEMT 2014-1 Instrument of Resignation and
 Appointment –Administrator

     

    

  

	 	GENERAL ELECTRIC CAPITAL LLC,
	 	as Resigning Administrator
	 	 	 
	 	By: 	/s/ Thomas A. Davidson
	 	 	Name:  	Thomas A. Davidson
	 	 	Title:  	Authorized Signatory

 

    	 	S-2 
	 
GEEMT 2014-1 Instrument of Resignation and
 Appointment –Administrator

     

    

  

	 	GE CAPITAL US HOLDINGS, INC., as Successor Administrator
	 	 	 
	 	By: 	/s/ Thomas A. Davidson
	 	 	Name: 	Thomas A. Davidson
	 	 	Title:  	Authorized Signatory

 

    	 	S-3 
	 
GEEMT 2014-1 Instrument of Resignation and
 Appointment –Administrator

     

    

  

Solely for the purposes of the waiver set forth in Section 5
of this Agreement:

 

	 	General electric capital LLC,
	 	as Servicer
	 	 	 
	 	By: 	/s/ Thomas A. Davidson
	 	 	Name: 	Thomas A. Davidson
	 	 	Title:  	Authorized Signatory

 

    	 	S-4 
	 
GEEMT 2014-1 Instrument of Resignation and
 Appointment –Administrator

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