Document:

BB&T

 

LOAN AGREEMENT

 

9550902025 

Account Number

 

This Loan Agreement (this “Agreement”)
is made this 17 day of August, 2010 by and between BRANCH BANKING AND TRUST COMPANY, a North Carolina banking corporation (“Bank”),
and:

 

UNITED STRATEGIES, INC., a Delaware
corporation, and PROMARK TECHNOLOGY, INC., a Maryland corporation (collectively, “Borrowers”), having
their chief executive offices at 10900 Pump House Road, Suite B, Annapolis Junction, Maryland.

 

Borrowers have applied to Bank for and
Bank has agreed to make, subject to the terms of this Agreement, the following loan(s) (hereinafter referred to, singularly or
collectively, if more than one, as “Loan”):

 

Line of Credit (“Line of Credit”)
in the maximum principal amount not to exceed $10,000,000 at any one time outstanding for the purpose of funding working capital
needs and finance accounts receivables and inventory, which shall be evidenced by Borrowers’ Promissory Note dated on or
after the date hereof which shall mature on November 5, 2011, when the entire unpaid principal balance then outstanding plus accrued
interest thereon shall be paid in full. Prior to maturity or the occurrence of any Event of Default hereunder and subject to any
availability limitations, as applicable, Borrowers may borrow, repay, and reborrow under the Line of Credit through maturity. The
Line of Credit shall bear interest at the rate set forth in any such Note evidencing all or any portion of the Line of Credit,
the terms of which are incorporated herein by reference.

 

Additional terms, conditions and covenants
of this Agreement are described in Schedule DD, or other schedule attached hereto, the terms of which are incorporated herein by
reference. The promissory notes evidencing the Line of Credit is referred to herein as the “Note(s)” and shall include
all extensions, renewals, modifications and substitutions thereof. The Line of Credit shall be secured by the collateral described
in the security documents described below.

 

Section 1 Conditions Precedent

 

The Bank shall not be obligated to make
any disbursement of Loan proceeds until all of the following conditions have been satisfied by proper evidence, execution, and/or
delivery to the Bank of the following items in addition to this Agreement, all in form and substance satisfactory to the Bank
and the Bank’s counsel in their sole discretion: 

USA Patriot Act Verification Information:
Information or documentation, including, but not limited to, the legal name, address, tax identification number, driver’s
license, and date of birth (if Borrowers are individuals) of Borrowers sufficient for the Bank to verify the identity of Borrowers
in accordance with the USA Patriot Act. Borrowers shall notify Bank promptly of any change in such information.

 

Note(s): The Note(s) evidencing
the Loans(s) duly executed by Borrowers.

Flood
Hazard Certification: Evidence satisfactory to Bank and Bank’s counsel as to whether the Collateral is stored
in located within an area identified as having “special flood hazards” as such term is used in the Federal Flood Disaster
Protection Act of 1973.

Security
Agreement(s): Security Agreement(s) in which Borrowers collateral shall grant to Bank a first priority security
interest in the personal property specified therein (the “Collateral”). (If Bank has or will have a security interest
in any collateral which is inferior to the security interest of another creditor, Borrowers must fully disclose to Bank any and
all prior security interests, and Bank must specifically approve any such security interest which will continue during the Loan.)

UCC
Financing Statements: Copies of UCC Financing Statements duly filed in Borrowers’ or other owner’s state
of incorporation, organization or residence, and in all jurisdictions necessary, or in the opinion of the Bank desirable, to perfect
the security interests granted in the Security Agreement(s), and certified copies of Information Requests identifying all previous
financing statements on record for Borrowers or other owner, as appropriate from all jurisdictions indicating that no security
interest has previously been granted in any of the collateral described in the Security Agreement(s), unless prior approval has
been given by the Bank.

 

    	 

    	 

    

  

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Authorization
and Certificate: An Authorization and Certificate executed by each of the Borrowers under which such Borrower
authorizes Bank to file a UCC Financing Statement describing collateral owned by such Borrower.

Corporate
Resolution: A Corporate Resolution duly adopted by the Board of Directors of Borrowers authorizing the execution,
delivery, and performance of the Loan Documents on or in a form provided by or acceptable to Bank.

Articles
of Incorporation: A copy of the Articles of Incorporation and all other charter documents of Borrowers, all filed with
and certified by the Secretary of State of the State of the Borrowers’ incorporation.

By-Laws: A copy
of the By-Laws of Borrowers, certified by the Secretary of Borrowers as to their completeness and accuracy.

Certificate
of Incumbency: A certificate of the Secretary of Borrowers certifying the names and true signatures of the officers
of Borrowers authorized to sign the Loan Documents.

Certificate
of Existence:  A certification of the Secretary of State or the State Department of Assessments and Taxation,
as applicable, of the State of Borrowers’ Incorporation or Organization as to the existence or good standing of Borrowers
and their charter documents on file.

Commitment Fee: A
commitment fee (or balance thereof) of $15,000, payable to the Bank on the date of execution of the Loan Documents.

Opinion of Counsel:
An opinion of counsel for Borrowers satisfactory to Bank and Bank’s counsel.

Additional Documents:
Receipt by Bank of other approvals, opinions, or documents as Bank may reasonably request.

 

Section 2 Representations and Warranties

 

Borrowers represents and warrant to Bank
that:

2.01. Financial Statements.
The balance sheet of Borrowers and their subsidiaries, if any, and the related statements of income of Borrowers and their subsidiaries,
the accompanying footnotes together with the accountant’s opinion thereon, and all other financial information previously
furnished to the Bank, are true and correct and fairly reflect the financial condition of Borrowers and their subsidiaries as of
the dates thereof, including all contingent liabilities of every type, and the financial condition of Borrowers and their subsidiaries
as stated therein has not changed materially and adversely since the date thereof.

2.02. Name, Capacity and
Standing. Borrowers’ exact legal name is correctly stated in the initial paragraph of the Agreement. Borrowers warrant
and represent that they are duly organized and validly existing under the laws of their respective state of incorporation or organization;
that they and/or their subsidiaries, if any, are duly qualified and in good standing in every other state in which the nature of
their business shall require such qualification, and are each duly authorized by their board of directors, general partners or
member/manager(s), respectively, to enter into and perform the obligations under the Loan Documents.

2.03. No Violation of Other
Agreements. The execution of the Loan Documents, and the performance by Borrowers thereunder, will not violate any provision,
as applicable, of their articles of incorporation, by-laws, or of any law, other agreement, indenture, note, or other instrument
binding upon Borrowers, or give cause for the acceleration of any of the respective obligations of Borrowers.

2.04. Authority. All
authority from and approval by any federal, state, or local governmental body, commission or agency necessary to the making, validity,
or enforceability of this Agreement and the other Loan Documents has been obtained. 

2.05. Asset Ownership.
Borrowers have good and marketable title to all of the properties and assets reflected on the balance sheets and financial statements
furnished to the Bank, and all such properties and assets are free and clear of mortgages, deeds of trust, pledges, liens, and
all other encumbrances except as otherwise disclosed by such financial statements.

2.06. Discharge of Liens
and Taxes. Borrowers and their subsidiaries, if any, have filed, paid, and/or discharged all taxes or other claims which may
become a lien on any of their respective properties or assets, excepting to the extent that such items are being appropriately
contested in good faith and for which an adequate reserve (in an amount acceptable to Bank) for the payment thereof is being maintained.

 

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2.07. Regulations U and X.
None of the Loan proceeds shall be used directly or indirectly for the purpose of purchasing or carrying any margin stock in violation
of the provisions of Regulation U and Regulation X of the Board of Governors of the Federal Reserve System.

2.08. ERISA. Each employee
benefit plan, as defined by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), maintained by
Borrowers or by any subsidiary of Borrowers meets, as of the date hereof, the minimum funding standards of Section 302 of ERISA,
all applicable requirements of ERISA and of the Internal Revenue Code of 1986, as amended, and no “Reportable Event”
nor “Prohibited Transaction” (as defined by ERISA) has occurred with respect to any such plan.

2.09. Litigation. There
is no claim, action, suit or proceeding pending, or to the knowledge of Borrowers, threatened or reasonably anticipated, before
any court, commission, administrative agency, whether State or Federal, or arbitration which will materially adversely affect the
financial condition, operations, properties, or business of Borrowers or their subsidiaries, if any, or the ability of Borrowers
to perform their obligations under the Loan Documents.

2.10. Other Agreements.
The representations and warranties made by Borrowers to Bank in the other Loan Documents are true and correct in all respects on
the date hereof.

2.11. Binding and Enforceable.
The Loan Documents, when executed, shall constitute valid and binding obligations of Borrowers, the execution of such Loan Documents
has been duly authorized by Borrowers, and are enforceable in accordance with their terms, except as may be limited by bankruptcy,
insolvency, moratorium, or similar laws affecting creditors’ rights generally. 

2.12. Commercial Purpose.
The Loan(s) are not “consumer transactions”, as defined in the Maryland Uniform Commercial Code, and none of the collateral
was or will be purchased or held primarily for personal, family or household purposes.

 

Section 3 Affirmative Covenants

 

Borrowers covenant and agree that from
the date hereof and until payment in full of all indebtedness and performance of all obligations owed under the Loan Documents,
Borrowers shall:

 

3.01. Maintain Existence
and Current Legal Form of Business. (a) Maintain their existence and good standing in the state of their incorporation or organization,
(b) maintain their current legal form of business indicated above, and, (c), as applicable, qualify and remain qualified as a foreign
corporation, general partnership, limited partnership, limited liability partnership or limited liability company in each jurisdiction
in which such qualification is required.

3.02. Maintain Records.
Keep adequate records and books of account, in which complete entries will be made in accordance with GAAP consistently applied,
reflecting all financial transactions of Borrowers.

3.03. Maintain Properties.
Maintain, keep, and preserve all of their properties (tangible and intangible) including the collateral necessary or useful in
the conduct of their business in good working order and condition, ordinary wear and tear excepted.

3.04. Conduct of Business.
Continue to engage in an efficient, prudent, and economical manner in a business of the same general type as now conducted.

3.05. Maintain Insurance.
Maintain insurance with financially sound and reputable insurance companies or associations in such amounts and covering such risks
as are usually carried by companies engaged in the same or a similar business, and business interruption insurance if required
by Bank, which insurance may provide for reasonable deductible(s). Bank shall be named as loss payee (Long Form) on all policies
which apply to Bank’s collateral, and Borrowers shall deliver certificates of insurance at closing evidencing same. All such
insurance policies shall provide, and the certificates shall state, that no policy will be terminated without 20 days prior written
notice to Bank.

 

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3.06. Comply With Laws.
Comply in all respects with all applicable laws, rules, regulations, and orders including, without limitation, paying before the
delinquency of all taxes, assessments, and governmental charges imposed upon them or upon their property, and all environmental
laws.

3.07. Right of Inspection.
Permit the officers and authorized agents of Bank, at any reasonable time or times in Bank’s sole discretion, to examine
and make copies of the records and books of account of, to visit the properties of Borrowers, and to discuss such matters with
any officers, directors, managers, members or partners, limited or general of Borrowers, and Borrowers’ independent accountant
as Bank deems necessary and proper.

3.08. Reporting Requirements.
Furnish to the Bank:

Financial Statements:
As soon as available and not more than forty-five (45) days after the end of each fiscal quarter, balance sheets, statements of
income, cash flow, and retained earnings for the period ended and a statement of changes in the financial position, all in reasonable
detail, and all prepared in accordance with GAAP consistently applied and certified as true and correct by the President or chief
financial officer of Borrowers, as appropriate.

Annual Financial Statements:
As soon as available and not more than one hundred twenty (120) days after the end of each fiscal year, balance sheets, statements
of income, and retained earnings for the period ended and a statement of changes in the financial position, all in reasonable detail,
and all prepared in accordance with GAAP consistently applied. The financial statements must be of the following quality or better:
Audited.

Loan Base Report: On
or before the 15th day of each month, or as provided and/or required in accordance with Schedule DD, a Loan Base Report in a form
acceptable to Bank signed by the President or Chief Financial Officer of Borrowers, as appropriate.

Covenant Compliance Certificate:
As soon as available and not more than forty-five (45) days after the end of each fiscal quarter, a certificate, in a form satisfactory
to Bank, signed by the President or Chief Financial Officer of Borrowers, as appropriate, certifying that Borrowers are in compliance
with all covenants, financial or otherwise, under this Agreement.

Notice of Litigation:
Promptly after the receipt by Borrowers of notice or complaint of any action, suit, and proceeding before any court or administrative
agency of any type which, if determined adversely, could have a material adverse effect on the financial condition, properties,
or operations of Borrowers.

Tax Returns: As soon
as available each year, complete copies (including all schedules) of all state and federal tax returns filed by Borrowers.

Notice of Default: Promptly
upon discovery or knowledge thereof, notice of the existence of any event of default under this Agreement or any other Loan Documents.

USA Patriot Act Verification
Information: Information or documentation, including but not limited to the legal name, address, tax identification number,
driver’s license, and date of birth (if Borrowers are individuals) of Borrowers sufficient for Bank to verify the identity
of Borrowers in accordance with the USA Patriot Act. Borrowers shall notify Bank promptly of any change in such information.

Other Information: Such
other information as Bank may from time to time reasonably request.

3.09. Deposit Accounts.
Maintain substantially all of their demand deposit/operating accounts with Bank. 

3.10. Affirmative Covenants
from other Loan Documents. All affirmative covenants contained in the Security Agreement or other security document executed
by Borrowers which are described in Section 1 hereof are hereby incorporated by reference herein.

 

Section 4 Intentionally Deleted. 

 

Section 5 Financial Covenants

 

The Borrowers covenants and agrees that
from the date hereof until payment in full of all indebtedness and the performance of all obligations under the Loan Documents,
the Borrowers shall at all times maintain the following financial covenants and ratios all in accordance with GAAP unless otherwise
specified:

 

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Tangible Net Worth.
A minimum tangible net worth of not less than $1,000,000 through March 31, 2011, thereafter increasing to a minimum tangible net
worth of not less than $1,250,000 through maturity. Tangible Net Worth is defined as net worth, plus obligations contractually
subordinated to debts owed to Bank, minus goodwill, contract rights, and assets representing claims on stockholders or affiliated
entities.

 

Maximum Funded Debt. Maximum
Funded Debt of 3.5 times EBITDA, on a rolling 6 month annualized basis. At no time shall the ratio of Borrowers’ interest
bearing liabilities exceed Borrowers’ EBIDTA by an amount greater than 3.5 times. This covenant will be tested quarterly,
commencing with the quarter ending December 31, 2010, by annualizing the preceding 6 month period.

 

Section 6 Negative Covenants

 

Borrowers covenants and agrees that from
the date hereof and until payment in full of all indebtedness and performance of all obligations under the Loan Documents, Borrowers
shall not, without the prior written consent of Bank:

6.01.      Liens.
Create, incur, assume, or suffer to exist any lien upon or with respect to the Collateral, or any other property owned by Borrowers,
now owned or hereafter acquired, except:

		(a)	Liens and security interests in favor of Bank;

		(b)	Liens for taxes not yet due and payable or otherwise
being contested in good faith and for which appropriate reserves are maintained;

		(c)	Other liens imposed by law not yet due and payable,
or otherwise being contested in good faith and for which appropriate reserves are maintained; and

		(d)	purchase money security interests on any property
hereafter acquired, provided that such lien shall attach only to the property acquired.

6.02.      Debt.
Create, incur, assume, or suffer to exist any debt, except:

		(a)	Debt to the Bank;

		(b)	Debt outstanding on the date hereof and shown on the
most recent financial statements submitted to the Bank;

		(c)	Accounts payable to trade creditors incurred in the
ordinary course of business;

		(d)	Debt secured by purchase money security interests
as outlined above in Section 6.01 (d); and

		(e)	Additional debt not to exceed $100,000 in the aggregate
at any time.

6.03.      Capital
Expenditures. Expenditures for fixed assets in any fiscal year shall not exceed in the aggregate the sum of $100,000.

6.04.      Change
of Legal Form of Business; Purchase of Assets. Change Borrowers’ name or the legal form of Borrowers’ business
as shown above, whether by merger, consolidation, conversion or otherwise, and Borrowers shall not purchase all or substantially
all of the assets or business of any Person.

6.05.      Leases.
Create, incur, assume, or suffer to exist any leases, except:

		(a)	Leases outstanding on the date hereof and showing
on the most recent financial statement submitted to Bank; and

		(b)	Operating Leases for machinery and equipment which
do not in the aggregate require payments in excess of $100,000 in any fiscal year of the Borrowers.

6.06.      [Intentionally
Omitted].

6.07.      Salaries.
Salaries and any other cash compensation to owners/officers/partners/managers shall be limited as follows: NO LIMIT. 

6.08.      Guaranties.
Assume, guarantee, endorse, or otherwise be or become directly or contingently liable for obligations of any Person, except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business.

6.09.      Loans.
Loans to directors, officers, partners, members, shareholders, subsidiaries and affiliates shall not exceed in the aggregate the
sum of $100,000.

 

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6.10.      Disposition
of Assets. Sell, lease, or otherwise dispose of any of their assets or properties except in the ordinary and usual course of
their business.

6.11.      Transfer
of Ownership. (a) issue, transfer or sell any new class of stock, or (b) except for the issuance of shares of stock under the
United Strategies, Inc. 2001 Stock Option Plan, issue, transfer or sell, in the aggregate, from their treasury stock and/or currently
authorized but unissued shares of any class of stock, more than 10% of the total number of all such issued and outstanding shares
as of the date of this Agreement.

 

6.12.      Negative
Covenants from other Loan Documents. All negative covenants contained in the Security Agreement or other security document
executed by Borrowers which are described in Section 1 hereof are hereby incorporated by reference herein.

 

Section 7 Intentionally Deleted.

 

Section 8 Events of Default

 

The following shall be “Events of Default” by Borrowers:

8.01. The failure to make prompt payment of any installment
of principal or interest on any of the Note(s) when due or payable.

8.02. Should any representation or warranty made
in the Loan Documents prove to be false or misleading in any material respect.

8.03. Should any report, certificate,
financial statement, or other document furnished prior to the execution of or pursuant to the terms of this Agreement prove to
be false or misleading in any material respect.

8.04. Should Borrowers default
on the performance of any other obligation of indebtedness when due or in the performance of any obligation incurred in connection
with money borrowed.

8.05. Should Borrowers breach
any covenant, condition, or agreement made under any of the Loan Documents.

8.06. Should a custodian be
appointed for or take possession of any or all of the assets of Borrowers , or should Borrowers either voluntarily or involuntarily
become subject to any insolvency proceeding, including becoming a debtor under the United States Bankruptcy Code, any proceeding
to dissolve Borrowers, any proceeding to have a receiver appointed, or should Borrowers make an assignment for the benefit of creditors,
or should there be an attachment, execution, or other judicial seizure of all or any portion of Borrowers’ assets, including
an action or proceeding to seize any funds on deposit with the Bank, and such seizure is not discharged within 45 days.

8.07. Should final judgment
for the payment of money be rendered against Borrowers which is not covered by insurance and shall remain undischarged for a period
of 60 days unless such judgment or execution thereon be effectively stayed.

8.08. Upon the termination of existence of or dissolution
of Borrowers.

8.09. Should Bank in good faith
deem itself, its liens and security interests, if any, or any debt thereunder unsafe or insecure, or should Bank believe in good
faith that the prospect of payment of any debt or other performance by Borrowers is impaired. 

8.10. Should any lien or security
interest granted to Bank to secure payment of the Note(s) terminate, fail for any reason to have the priority agreed to by Bank
on the date granted, or become unperfected or invalid for any reason.

 

Section 9 Remedies Upon Default

 

Upon the occurrence of any of the above
listed Events of Default, Bank may at any time thereafter, at its option, take any or all of the following actions, at the same
or at different times:

9.01. Declare the balance(s) of
the Note(s) to be immediately due and payable, both as to principal and interest, late fees, and all other amounts/expenditures
without presentment, demand, protest, or notice of any kind, all of which are hereby expressly waived by Borrowers, and such balance(s)
shall accrue interest at the Default Rate as provided herein until paid in full;

 

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9.02. Require Borrowers to pledge
additional collateral to Bank from Borrowers’ assets and properties, the acceptability and sufficiency of such collateral
to be determined in Bank’s sole discretion;

9.03. Take immediate possession
of and foreclose upon any or all collateral which may be granted to Bank as security for the indebtedness and obligations of Borrowers
under the Loan Documents;

9.04. Exercise any and all other
rights and remedies available to Bank under the terms of the Loan Documents and applicable law, including the Maryland Uniform
Commercial Code; 

9.05. Any obligation of Bank
to advance funds to Borrowers or any other Person under the terms of under the Note(s) and all other obligations, if any, of Bank
under the Loan Documents shall immediately cease and terminate unless and until Bank shall reinstate such obligation in writing.

 

Section 10 Miscellaneous Provisions

 

10.01. Definitions.

 

“Availability”
shall mean the lesser of (i) $10,000,000.00 or (ii) the Collateral Loan Value shown on the Loan Base Report furnished by Borrowers
to Bank on or before the 15th day of each month as long as this Agreement shall remain in force, or as provided and/or determined
in accordance with Schedule DD. The percentages of acceptable collateral, as defined by Bank, which will be used to determine the
Collateral Loan Value, shall be the following (unless otherwise set forth in Schedule DD hereto): Eligible Inventory - 50% (with
$1,000,000 sublimit); Eligible Accounts - 85%.

“Default
Rate” shall mean a rate of interest equal to Bank’s Prime Rate plus five percent (5%) per annum (not to exceed
the legal maximum rate) from and after the date of an Event of Default hereunder which shall apply, in the Bank’s sole discretion,
to all sums owing, including principal and interest, on such date.

“Loan
Documents” shall mean this Agreement including any schedule attached hereto, the Note, the Security Agreement, all UCC
Financing Statements, and all other documents, certificates, and instruments executed in connection therewith, and all renewals,
extensions, modifications, substitutions, and replacements thereto and therefore.

“Person”
shall mean an individual, partnership, corporation, trust, unincorporated organization, limited liability company, limited liability
partnership, association, joint venture, or a government agency or political subdivision thereof.

“GAAP”
shall mean generally accepted accounting principles as established by the Financial Accounting Standards Board or the American
Institute of Certified Public Accountants, as amended and supplemented from time to time.

“Prime
Rate” shall mean the rate of interest per annum announced by Bank from time to time and adopted as its Prime Rate, which
is one of several rate indexes employed by Bank when extending credit, and may not necessarily be the Bank’s lowest lending
rate.

10.02. Non-impairment. If
any one or more provisions contained in the Loan Documents shall be held invalid, illegal, or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions contained therein shall not in any way be affected or impaired
thereby and shall otherwise remain in full force and effect.

10.03. Applicable Law.
The Loan Documents shall be construed in accordance with and governed by the laws of the State of Maryland.

10.04. Waiver. Neither
the failure or any delay on the part of Bank in exercising any right, power or privilege granted in the Loan Documents shall operate
as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise of any other right,
power, or privilege which may be provided by law.

10.05. Modification. 
No modification, amendment, or waiver of any provision of any of the Loan Documents shall be effective unless in writing and
signed by Borrowers and Bank.

 

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10.06. Payment Amount Adjustment.
In the event that any Loan(s) referenced herein has a variable (floating) interest rate and the interest rate increases, Bank,
at its sole discretion, may at any time adjust the Borrowers’ payment amount(s) to prevent the amount of interest accrued
in a given period to exceed the periodic payment amount or to cause the Loan(s) to be repaid within the same period of time as
originally agreed upon.

10.07. Stamps and Fees. Borrowers
shall pay all federal or state stamps, taxes, or other fees or charges, if any are payable or are determined to be payable by reason
of the execution, delivery, or issuance of the Loan Documents or any security granted to Bank; and Borrowers agree to indemnify
and hold harmless the Bank against any and all liability in respect thereof.

10.08. Attorneys’ Fees.
In the event Borrowers shall default in any of their obligations hereunder and Bank believes it necessary to employ an attorney
to assist in the enforcement or collection of the indebtedness of Borrowers to Bank, to enforce the terms and provisions of the
Loan Documents, to modify the Loan Documents, or in the event Bank voluntarily or otherwise should become a party to any suit or
legal proceeding (including a proceeding conducted under the Bankruptcy Code), Borrowers agree to pay the reasonable attorneys’
fees of Bank and all related costs of collection or enforcement that may be incurred by the Bank. Borrowers shall be liable for
such attorneys’ fees and costs whether or not any suit or proceeding is actually commenced.

10.09. Bank Making Required
Payments. In the event Borrowers shall fail to maintain insurance, pay taxes or assessments, costs and expenses which Borrowers
is, under any of the terms hereof or of any Loan Documents, required to pay, or fail to keep any of the properties and assets constituting
collateral free from new security interests, liens, or encumbrances, except as permitted herein, Bank may at its election make
expenditures for any or all such purposes and the amounts expended together with interest thereon at the Default Rate, shall become
immediately due and payable to Bank, and shall have benefit of and be secured by the collateral; provided, however, the Bank shall
be under no duty or obligation to make any such payments or expenditures.

10.10. Right of Offset.
Any indebtedness owing from Bank to Borrowers may be set off and applied by Bank on any indebtedness or liability of Borrowers
to Bank, at any time and from time to time after maturity, whether by acceleration or otherwise, and without demand or notice to
Borrowers. Bank may sell participations in or make assignments of any Loan made under this Agreement, and Borrowers agree that
any such participant or assignee shall have the same right of setoff as is granted to the Bank herein.

10.11. UCC Authorization. Borrowers
authorizes Bank to file such UCC Financing Statements describing the collateral in any location deemed necessary and appropriate
by Bank.

10.12. Modification and Renewal
Fees. Bank may, at its option, charge any fees for modification, renewal, extension, or amendment of any terms of the Note(s)
permitted by law.

10.13. Conflicting Provisions.
If provisions of this Agreement shall conflict with any terms or provisions of any of the Note(s) or security document(s) or any
schedule attached hereto, the provisions of such Note(s) or security document(s) or any schedule attached hereto, as appropriate,
shall take priority over any provisions in this Agreement.

10.14. Notices. Any notice
permitted or required by the provisions of this Agreement shall be deemed to have been given when delivered in writing to the Corporate
Banking Department of the Bank at its offices at 111 S. Calvert Street, Suite 2200, Baltimore, Maryland 21202, and to the Presidents
of the Borrowers at their offices at 10900 Pump House Road, Suite B, Annapolis Junction, Maryland 20701, when sent by certified
mail and return receipt requested.

10.15. Consent to Jurisdiction.
Borrowers hereby irrevocably agree that any legal action or proceeding arising out of or relating to this Agreement may be
instituted in any Maryland state court or federal court sitting in the state of Maryland, or in such other court and venue as Bank
may choose in its sole discretion. Borrowers consent to the jurisdiction of such courts and waive any objection relating to the
basis for personal or in rem jurisdiction or to venue which Borrowers may now or hereafter have in any such legal action or proceedings.

 

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10.16. Counterparts. This
Agreement may be executed by one or more parties on any number of separate counterparts and all of such counterparts taken together
shall be deemed to constitute one and the same instrument.

10.17. Entire Agreement. The
Loan Documents embody the entire agreement between Borrowers and Bank with respect to the Loans, and there are no oral or parol
agreements existing between Bank and Borrowers with respect to the Loans which are not expressly set forth in the Loan Documents.

10.18.  Indemnification. The
Borrowers hereby agree to and do hereby indemnify and defend the Bank, its affiliates, their successors and assigns and their respective
directors, officer, employees and shareholders, and do hereby hold each of them harmless from and against, any loss, liability,
lawsuit, proceeding, cost expense or damage (including reasonable in-house and outside counsel fees, whether suit is brought or
not) arising from or otherwise relating to the closing, disbursement, administration, or repayment of the Loans, including without
limitation: (i) the failure to make any payment to Bank promptly when due, whether under the Notes evidencing the Loans or otherwise;
(ii) the breach of any representations or warranties to the Bank contained in this agreement or in any other loan documents now
or hereafter executed in connection with the Loans; or (iii) the violation of any covenants or agreements made for the benefit
of Bank and contained in any of the loan documents; provided, however, that the foregoing indemnification shall not be deemed to
cover any loss which is finally determined by a court of competent jurisdiction to result solely from Bank’s gross negligence
or willful misconduct.

10.19. WAIVER OF JURY TRIAL.
UNLESS EXPRESSLY PROHIBITED BY APPLICABLE LAW, BORROWERS HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS ARISING
OUT OF THIS AGREEMENT OR ANY OF THE LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP BETWEEN
BORROWERS AND BANK. THIS PROVISION IS A MATERIAL INDUCEMENT FOR BANK TO MAKE THE LOAN AND ENTER INTO THIS AGREEMENT. FURTHER, BORROWERS
HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF BANK, NOR BANK’S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
BANK WOULD NOT SEEK TO ENFORCE THIS WAIVER OR RIGHT TO JURY TRIAL PROVISION. NO REPRESENTATIVE OR AGENT OF BANK, NOR BANK’S
COUNSEL, HAS THE AUTHORITY TO WAIVE, CONDITION OR MODIFY THIS PROVISION.

 

[SIGNATURES ON FOLLOWING PAGE]

 

    	-9-

    	 

    

 

BB&T

 

LOAN AGREEMENT

 

Signature
Page

 

IN WITNESS WHEREOF, Borrower and Bank have caused this Agreement
to be duly executed under seal all as of the date first above written.

 

	 	BORROWERS:	 
	 	UNITED STRATEGIES, INC.	 
	 	a Delaware corporation	 
	 	 	 
	 	By:	/s/ William Ochall	(SEAL)
	 	Name:  William Ochall	 
	 	Title:    Chief Financial Officer	 
	 	 	 
	 	PROMARK TECHNOLOGY, INC.,	 
	 	a Maryland corporation	 
	 	 	 
	 	By:	/s/ William Ochall	(SEAL)
	 	Name:  William Ochall	 
	 	Title:    Chief Financial Officer	 

 

STATE OF MARYLAND

 

CITY/COUNTY OF Anne Arundel_____

 

I, Stacy Charlier_,
a Notary Public of the City/County and State aforesaid, certify that WILLIAM OCHALL, personally came before me this day and acknowledged
that he is the Chief Financial Officer of UNITED STRATEGIES, INC., a Delaware corporation, and the Chief Financial Officer of PROMARK
TECHNOLOGY, INC., a Maryland corporation, and that by authority duly given and as the act of the corporations, the foregoing instrument
was signed in their name by him, as their Chief Financial Officer.

 

Witness my hand and
official stamp or seal, this 18 day of August, 2010.

 

	My commission expires: 10/16/10	/s/ Stacy Charlier	 
	 	Notary Public	 

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

    	 

    	 

    

 

BB&T

 

LOAN AGREEMENT

 

		BRANCH BANKING AND TRUST COMPANY,	 
	 	a North Carolina corporation	 
	 	 	 
	 	By:	/s/ Brannon E. Fitch	(SEAL)
	 	 	Brannon E. Fitch	 
	 	 	Senior Vice President	 

 

STATE OF MARYLAND

 

CITY/COUNTY OF Anne Arundel______

 

I, Stacy Charlier_,
a Notary Public of the City/County and State aforesaid, certify that BRANNON E. FITCH, personally came before me this day and acknowledged
that he is the Senior Vice President of BRANCH BANKING AND TRUST COMPANY, a North Carolina corporation, and that by authority duly
given and as the act of the corporation, the foregoing instrument was signed in its name by him, as its Senior Vice President.

 

Witness my hand and
official stamp or seal, this 18 day of August, 2010.

 

	My commission expires: 10/16/10	/s/ Stacy Charlier	 
	 	Notary Public	 

 

    	 

    	 

    

 

AMENDMENT TO LOAN AGREEMENT

 

THIS AMENDMENT TO LOAN
AGREEMENT (this “Amendment”) is made as of the ___ day of March, 2011, by and among UNITED STRATEGIES, INC.
a Delaware corporation, and PROMARK TECHNOLOGY, INC., a Maryland corporation (collectively, “Borrowers”)
and BRANCH BANKING AND TRUST COMPANY a North Carolina banking corporation (“Bank”).

 

RECITALS:

 

R-1.          Pursuant
to the terms of that certain Promissory Note dated August 17, 2010 (collectively, the “Note”), Grantor is justly indebted
unto Lender up to a maximum principal amount of up to Ten Million Dollars ($10,000,000.00) (“Loan”).

 

R-2.          The
Loan is governed by that certain Loan Agreement dated August 17, 2010 (the “Loan Agreement”).

 

R-3.          The
parties now desire to amend the Loan Agreement to remove the Maximum Funded Debt covenant and replace it with a Fixed Charge Coverage
covenant.

 

NOW THEREFORE, in consideration
of the premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereby agree as follows:

 

1.          Incorporation
of Recitals. The above recitals are hereby incorporated herein and made a part of this Amendment by this reference.

 

2.          Modifications.
The Loan Agreement is hereby modified by deleting the Maximum Funded Debt covenant set forth in the last paragraph of Section
5 of the Loan Agreement and replacing it with the following Fixed Charge Coverage covenant:

 

Fixed Charge
Coverage. Borrower shall maintain EBITDA plus rent expense at a minimum of 1.25 times Fixed Charges. Fixed Charges shall
include current portion of long term debt (secured and unsecured), capital lease obligations, interest expense (current and deferred)
and rental expense. This ratio will be measured quarterly, commencing with the quarter ending March 31, 2011, based upon the trailing
six months performance, annualized.

 

Account No. 9550902025 Note
No. 00001 

 

    	Page 1

    	 

    

 

3.          Survival.
Borrower, Guarantors and Bank acknowledge that the Loan Agreement and all other loan documents executed in connection with the
Line now, or in the past, are in full force and effect and are binding according to their terms. Borrower, Guarantors and Bank
hereby renew and extend their covenant and agreement to perform, comply with, and be bound by each and every of the terms and provisions
of the Loan Agreement, as modified by the terms of this Amendment.

 

4.          Miscellaneous.
Except as expressly modified herein, all terms and conditions of the Loan Agreement shall remain in full force and effect. This
Amendment is and in all respects shall be deemed to be an amendment to the Loan Agreement and in no event shall be deemed or construed
to be a replacement or novation thereof. In the event of a conflict between the terms of the Loan Agreement and the terms of this
Amendment, the terms of this Amendment shall control. All capitalized terms used in this Amendment and not defined herein and which
are defined in the Loan Agreement shall have the meanings assigned to same in the Loan Agreement.

 

(Signature page follows)

 

Account No. 9550902025 Note No. 00001

 

    	Page 2

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Amendment or caused the same to be executed as of the date first above written.

 

	 	BORROWERS:	 
	 	 	 
	 	UNITED STRATEGIES, INC.,	 
	 	 	 
	 	a Delaware corporation	 
	 	 	 
	 	By:	/s/ William Ochall	[Seal]
	 	 	 
	 	Name:	William Ochall	 
	 	 	 
	 	Title:	Chief Financial Officer	 
	 	 	 
	 	PROMARK TECHNOLOGY, INC.,	 
	 	 	 
	 	a Maryland corporation	 
	 	 	 
	 	By:	/s/ William Ochall	[Seal]
	 	 	 
	 	Name:	William Ochall	 
	 	 	 
	 	Title:	Chief Financial Officer	 

 

STATE OF MARYLAND

 

CITY/COUNTY OF Prince George__________

 

I, Sarah Grimm__________
Notary Public of the City/County and State aforesaid, certify that WILLIAM OCHALL, personally came before me this day and acknowledged
that he is the Chief Financial Officer of UNITED STRATEGIES, INC., a Delaware corporation, and the Chief Financial Officer of
PROMARK TECHNOLOGY, INC., a Maryland corporation, and that by authority duly given and as the act of the corporations, the foregoing
instrument was signed in their name by him, as their Chief Financial Officer.

 

Witness my hand and
official stamp or seal, this 3rd__ day of March, 2011. 

 

	My commission expires: 10/30/2013	/s/ Sarah M. Grimm	 
	 	Notary Public	 

 

(SIGNATURES CONTINUE ON FOLLOWING PAGE)

 

Account No. 9550902025 Note No. 00001

 

    	Page 1

    	 

    

 

	 	BANK:
	 	BRANCH BANKING AND TRUST COMPANY,
	 	a North Carolina corporation
	 	 	 	 
	 	By:	/s/ Brannon E. Fitch	[Seal]
	 	 	Brannon E. Fitch	 
	 	 	Senior Vice President	 

 

STATE OF MARYLAND

 

CITY/COUNTY OF______________________________

 

I, _______________
Notary Public of the City/County and State aforesaid, certify that Brannon E. Fitch personally came before me this day and acknowledged
that he is the Senior Vice President of Branch Banking and Trust Company, a North Carolina corporation, and that by authority duly
given and as the act of the corporation, the foregoing instrument was signed in their name by him, as its Senior Vice President.

 

Witness my hand and
official stamp or seal, this ____ day of March, 2011.

 

	My commission expires:	 
	 	Notary Public

 

Account No. 9550902025 Note No. 00001

 

    	Page 1

    	 

    

  

	Maker	UNITED STRATEGIES, INC. 	 	 
	Address	140900 PUMP HOUSE RD STE B	 	9550902025
	 	ANNAPOLIS JUNCTION, MD 20701-1208	 	Customer Number
	 	 	 	 
	 	 	 	 00001
	 	 		Note Number

 BB&T

 

	$	10,000,000	 	$	08/17/2010	 	$	10,000,000	 	$	11/07/2011
	 	Original Amount of Note	 	 	Original Date	 	 	Modification Amount	 	 	Modification Date

 

This Note Modification Agreement (hereinafter Agreement) is
made and entered into this       7th     day of         November
, 2011       by and between UNITED STRATEGIES, INC and PROMARK TECHNOLOGY, INC.,                                       maker(s),
co-maker(s), endorser(s), or other obligor(s) on the Promissory Note (as defined below), hereinafter also referred to jointly and
severally as Borrower(s); Branch Banking and Trust Company, a North Carolina banking corporation, hereinafter referred to as Bank;
and                                            owners
other than Borrower(s) (if any) of any property pledged to secure performance of Borrower(s)’s obligations to Bank, hereinafter
referred to jointly and severally as Debtor(s)/Grantor(s).

 

Witnesseth: Whereas, Borrower(s)
has previously executed a Promissory Note payable to Bank, which Promissory Note includes the original Promissory Note and all
renewals, extensions and modifications thereof, collectively “Promissory Note”, said Promissory Note being more particularly
identified by description of the original note above; and Borrower(s) and Bank agree that said Promissory Note be modified only
to the limited extent as is hereinafter set forth; that all other terms, conditions, and covenants of said Promissory Note remain
in full force and effect, and that all other obligations and covenants of Borrower(s), except as herein modified, shall remain
in full force and effect, and binding between Borrower(s) and Bank; and Whereas Debtor(s)/Grantor(s), if different from Borrower(s),
has agreed to the terms of this modification; NOW THEREFORE, in mutual consideration of the premises, the sum of Ten Dollars ($10)
and other good and valuable consideration, each to the other parties paid , the parties hereto agree that said Promissory Note
is amended as hereinafter described:

 

	 ̈	Borrower shall pay a prepayment fee as set forth in the Prepayment Fee Addendum attached hereto.

 

INTEREST
RATE, PRINCIPAL AND INTEREST PAYMENT TERM MODIFICATIONS (To the extent no change is made, existing terms continue. Sections not
completed are deleted.)

 

Interest shall accrue from the
date hereof on the unpaid principal balance outstanding from time to time at the:

 

	 ̈	Fixed rate of ____________________ % per annum.

 

	x	Variable rate of the Bank’s Prime Rate plus      0.250     % per annum to be adjusted            Daily                                                            as the Banks Prime Rate Changes.

 

	£	As of the Modification Date, any fixed, floating, or average maximum rate and fixed minimum rate in effect by virtue of the Promissory Note are hereby deleted.

 

	 	The interest rate will in no instance exceed the maximum rate permitted by applicable law and if checked here  ̈, the interest rate will not decrease below a fixed minimum rate of _____ %. If checked here  ̈ the interest rate will not exceed  ̈ a fixed maximum rate of ______ %, an average maximum rate of _____ %, or  ̈ a floating maximum rate of the greater of _____ % or the Bank’s Prime Rate. If an average maximum rate is specified, a determination of any required reimbursement of interest by Bank will be made:  ̈ when Promissory Note is repaid in full by Borrower 111 annually beginning on ______________ .

 

	 ̈	 
	 	 
	 	 

 

	 	Principal and interest are payable as follows:

 

	x	
        Principal (plus any accrued
interest not otherwise scheduled herein) } is due in full at maturity on    11/05/2012                       

 

	£	Principal plus accrued Interest

 

	£	Payable in consecutive                           
    installments of  ̈ Principal } commencing on                                   

 

	 ̈	
        Principal and interest 

 

	 	
        and continuing on the same day of each calendar period
        thereafter, in                            equal
        payments of $ , with one final payment of all remaining principal and accrued interest due on                                     .

 

	£	ChoiceLine Payment Option: 2% of outstanding balance is payable monthly commencing on                                             
    and continuing on the same day of each month thereafter, with one final payment of all remaining principal and accrued
    interest due on                                                     

 

	x	Accrued interest is payable             Monthly             commencing on                  December 5, 2011            and continuing on the same day of each calendar period thereafter, with one final payment of all remaining interest due on                November 5, 2012         .

 

    	Page 1 of 4

    	 

    

 

 

	 	Bank reserves the right in its sole discretion to adjust the fixed payment due hereunder                      
    on                          
    and continuing on the same day of each calendar period thereafter, in order to maintain an amortization period of no more
    than months from the date of the initial principal payment due hereunder. Borrower understands the payment may increase if
    Interest rates Increase.

 

	 ̈	At the Borrower’s request, the Bank has agreed to readvance the principal amount of $_______________________________. The outstanding principal balance under the Promissory Note prior to the readvance is $                     , making the total outstanding principal balance now due hereunder to be $                            (“Modification Amount”).

 

	£	 

 

	£	 

 

	 ̈	Borrower hereby authorizes Bank to automatically draft from its demand deposit or savings account(s) with Bank or other bank, any payment(s) due on the date(s) due. Borrower shall provide appropriate account number(s) for account(s) at Bank or other bank.

 

The Following scheduled payment(s)
is (are) deferred:

 

	 ̈	$______________ principal    } Payment(s) due on                                                                              

 

	 ̈	$______________ interest

 

is (are) hereby deferred. Payments
will resume on according to the schedule contained herein or to the existing schedule (If no other changes are made herein).

 

    	Page 2 of 4

    	 

    

 

The Borrower(s) promises to pay Bank, or order, a late fee in
the amount of five percent (5%) of any installment past due for fifteen (15) or more days. Where any installment payment is past
due for fifteen (15) or more days, subsequent payments shall first be applied to the past due balance. In addition, the undersigned
shall pay to Bank a returned payment fee if the undersigned or any other obligor hereon makes any payment at any time by check
or other instrument, or by any electronic means, which Is returned to Bank because of nonpayment due to nonsufficient funds,

 

COLLATERAL:  ̈
The Promissory Note, as modified, and the performance of the terms of any agreement or instrument relating to, evidencing, or securing
the Promissory Note, as modified, shall be additionally secured by collateral hereinafter described, a new security instrument
shall be executed by Borrower(s), and/or Debtor(s)/Grantor(s), and all other steps necessary to perfect or record the Bank’s
lien with priority acceptable to Bank shall be taken. In addition to Bank’s right of off-set and to any liens and security
interests granted to Bank in the Agreements, the undersigned hereby grants to Bank a security interest in all of its depository
accounts with and investment property held by Bank, which shall serve as collateral for the indebtedness and obligations evidenced
by the Promissory Note, as modified.

 

Deed(s) of Trust f Mortgage(s)
granted in favor of Bank as beneficiary! mortgagee:

 

	£	dated                                  
      in the maximum principal amount of $                                                                                

 

	 	granted by                                                                                                                                                                          

 

	£	dated                                                 
 in the maximum principal amount of $                                                                

 

	 	granted by.                                                                                                                                                                      

 

Security Agreement(s) granting
a security interest to Bank:

 

	 ̈	dated                                           given
by                                                                                                                       

 

	 ̈	dated                                           given
by                                                                                                                       

 

	 ̈	
        Securities Account Pledge and Security Agreement dated                                             , executed by                     

	 	 

  

	£	Control Agreement(s) dated____,
    covering	£
Deposit Account(s)	£
Investment Property
	 	£ Letter of Credit Rights	£ Electronic Chattel Paper

 

	 ̈	Assignment of Certificate of Deposit, Security Agreement, and Power of Attorney (for Certificated Certificates
    of Deposit) dated                                                     ,
    executed by                                                                              .

 

	 ̈	Pledge and Security Agreement for Publicly Traded Certificated Securities dated                                     ,
    executed by                                                      .

 

	 ̈	Assignment of Life Insurance Policy as Collateral dated                        
    , executed by                                                                            .

 

	 ̈	Loan Agreement dated _____________________ executed by Borrower and  ̈ Guarantor(s).

 

	£	 
	 	 
	 	 

 

	£	 

 

Secured Guaranty section:

 

	£	 
	 	 
	 	 

 

	£	 
	 	 

 

	 ̈	The collateral hereinafter described shall be and hereby is deleted as security interest for payment of the Promissory Note:
	 	 
	 	 

 

	OTHER	 

 

If the Promissory Note being modified by
this Agreement is signed by more than one person or entity, the modified Promissory Note shall be the joint and several obligation
of all signers and the property and liability of each and all of them. It is expressly understood and agreed that this Agreement
is a modification only and not a novation. The original obligation of the Borrower(s) evidenced by the Promissory Note is not extinguished
hereby. It is agreed that except for the modification(s) contained herein, the Promissory Note, and any other Loan Documents or
Agreements evidencing, securing or relating to the Promissory Note and all singular terms and conditions thereof, shall be and
remain in full force and effect. This Agreement shall not release or affect the liability of any co-makers, obligors, endorsers
or guarantors of said Promissory Note. Borrower and Debtor(s)/Grantor(s), if any, jointly and severally consent to the terms of
this Agreement, waive any objection thereto, affirm any and all obligations to Bank and certify that there are no defenses or offsets
against said obligations or the Bank, including without limitation the Promissory Note. Bank expressly reserves all rights as to
any party with right of recourse on the Promissory Note.

 

In the event periodic accruals of interest
shall exceed any periodic fixed payment amount described above, the fixed payment amount shall be immediately increased or supplemental
interest payments required on the same periodic basis as specified above (increased fixed payments or supplemental payments to
be determined in the Bank’s sole discretion), in such amounts and at such times as shall be necessary to pay all accruals
of interest for the period and all accruals of unpaid interest from previous periods. Such adjustments to the fixed payment amount
or supplemental payments shall remain in effect for so long as any interest accruals shall exceed the original fixed
payment amount and shall be further adjusted upward or downward to reflect changes in any variable interest rate
based on an index such as the Bank’s Prime Rate; provided that unless elected otherwise above, the fixed payment amount shall
not be reduced below the original fixed payment amount. However, Bank shall have the right, in its sole discretion, to lower the
fixed payment amount below the original payment amount. Notwithstanding any other provision contained in this agreement, In no
event shall the provisions of this paragraph be applicable to any Promissory Note which requires disclosures pursuant to the Consumer
Protection Act (Truth-in-Lending Act), 15 USC $1601, et seq., as implemented by Regulation Z.

 

    	Page 3 of 4

    	 

    

  

Borrower agrees that the only interest
charge is the interest actually stated in the Promissory Note, as modified hereby, and that any loan or origination fee shall be
deemed charges rather than interest, which charges are fully earned and non-refundable. It is further agreed that any late charges
are not a charge for the use of money but are imposed to compensate Bank for some of the administrative services, costs and losses
associated with any delinquency or default under the Promissory Note, and said charges shall be fully earned and non-refundable
when accrued. All other charges imposed by Bank upon Borrower in connection with the Promissory Note and the loan including, without
limitation, any commitment fees, loan fees, facility fees, origination fees, discount points, default and late charges, prepayment
fees, statutory attorneys’ fees and reimbursements for costs and expenses paid by Bank to third parties or for damages incurred
by Bank are and shall be deemed to be charges made to compensate Bank for underwriting and administrative services and costs, other
services, and costs or losses incurred and to be incurred by Bank in connection with the Promissory Note and the loan and shall
under no circumstances be deemed to be charges for the use of money. All such charges she be fully earned and non-refundable when
due.

 

The Bank may, at its option, charge any
fees for the modification, renewal, extension, or amendment of any of the terms of the Promissory Note as permitted by applicable
law.

 

In the words “Prime Rate’,
“Bank Prime Rate”, “BB&T Prime Rate”, “Bank’s Prime Rate” or “BB&T’s
Prime Rate” are used In this Agreement, they shall refer to the rate announced by the Bank from time to time as its Prime
Rate. The Bank makes loans both above and below the Prime Rate and uses indexes other than the Prime Rate. Prime Rate Is the name
given a rate index used by the Bank and does not in itself constitute a representation of any preferred rate or treatment.

 

Unless otherwise provided herein, it is
expressly understood and agreed by and between Borrower(s), Debtor(s)/Grantor(s) and Bank that any and all collateral (including
but not limited to real property, personal property, fixtures, inventory, accounts, instruments, general intangibles, documents,
chattel paper, and equipment) given as security to insure faithful performance by Borrower(s) and any other third party of any
and all obligations to Bank, however created, whether now existing or hereafter arising, shall remain as security for the Promissory
Note, as modified hereby.

 

It is understood and agreed that if Bank
has released collateral herein, it shall not be required or obligated to take any further steps to release said collateral from
any lien or security interest unless Bank determines, in its sole discretion, that it may do so without consequence to its secured
position and relative priority in other collateral; and unless Borrower(s) bears the reasonable cost of such action. No delay or
omission on the part of the Bank in exercising any right hereunder shall operate as a waiver of such right or of any other right
of the Bank, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same, or of any other
right on any further occasion. Each of the parties signing this Agreement regardless of the time, order or place of signing waives
presentment, demand, protest, and notices of every kind, and assents to any one or more extensions or postponements of the time
of payment or any other indulgences, to any substitutions, exchanges or releases of collateral if at any time there Is available
to the Bank collateral for the Promissory Note, as amended, and to the additions or releases of any other parties or persons primarily
or secondarily liable. Whenever possible the provisions of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is prohibited by or invalid under such law, such provisions
shall be ineffective to the extent of any such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement. All rights and obligations arising hereunder shall be governed by and construed
in accordance with the laws of the same state which governs the interpretation and enforcement of the Promissory Note.

 

From and after any event of default under
the Promissory Note, as modified hereby, or any related deed of trust, security agreement or loan agreement, interest shall accrue
on the sum of the principal balance and accrued interest then outstanding at the variable rate equal to the Bank’s Prime
Rate plus 5% per annum (“Default Rate’’), provided that such rate shall not exceed at any time the highest rate
of interest permitted by the laws of the State of Maryland; and further that such rate shall apply after judgement. In the event
of any default, the then remaining unpaid principal amount and accrued but unpaid interest then outstanding shall bear interest
at the Default Rate until such principal and interest have been paid in full. Bank shall not be obligated to accept any check,
money order, or other payment instrument marked “payment in full” on any disputed amount due hereunder, and Sank expressly
reserves the right to reject all such payment instruments. Borrower agrees that tender of its check or other payment instrument
so marked will not satisfy or discharge its obligation under the Promissory Note, disputed or otherwise, even if such check or
payment instrument is inadvertently processed by Bank unless in fact such payment is in fact sufficient to pay the amount due hereunder.

 

WAIVER OF TRIAL BY JURY.
UNLESS EXPRESSLY PROHIBITED BY APPLICABLE LAW, THE UNDERSIGNED HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS
ARISING OUT OF THIS AGREEMENT, THE PROMISSORY NOTE OR ANY LOAN DOCUMENT EXECUTED IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF
THE RELATIONSHIP BETWEEN THE UNDERSIGNED AND BANK. THIS PROVISION IS A MATERIAL INDUCEMENT FOR BANK TO MAKE THE LOAN EVIDENCED
BY THE PROMISSORY NOTE AND THIS AGREEMENT. FURTHER, THE UNDERSIGNED HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF BANK, NOR
BANK’S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BANK WOULD NOT SEEK TO ENFORCE THIS WAIVER OR RIGHT TO JURY
TRIAL PROVISION IN THE EVENT OF LITIGATION. NO REPRESENTATIVE OR AGENT OF BANK, NOR BANK’S COUNSEL, HAS THE AUTHORITY TO
WAIVE, CONDITION OR MODIFY THIS PROVISION.

 

The following paragraph does not apply
if the Agricultural purpose block was checked on Page 1 of the Promissory Note: Upon the occurrence of any default hereunder, the
undersigned authorize any attorney admitted to practice before any court of record in the United States to appear on behalf of
the undersigned in any court having jurisdiction in one or more proceedings, or before any clerk thereof or prothonotary or other
court official, and to CONFESS JUDGMENT AGAINST THE UNDERSIGNED, WITHOUT PRIOR NOTICE OR OPPORTUNITY OF THE UNDERSIGNED
FOR PRIOR HEARING, in favor of the Bank for full amount due on this Agreement and the Promissory Note (including the outstanding
Principal, accrued interest and any and all other costs, fees, expenses and late charges) plus court costs and attorney’s
fees of 15% of the total amount then due hereunder. The undersigned waive the benefit of any and every statute, ordinance
or rule of court which may be lawfully waived conferring upon the undersigned any right or privilege of exemption, homestead rights,
appeal, stay of execution or supplementary proceedings, inquisition, extension upon any levy on real estate or personal property,
and any other relief from enforcement or immediate enforcement of a judgment or related proceedings on a judgment. The authority
and power to appear for and enter judgment against the undersigned shall not be exhausted by one or more exercises thereof, or
by any imperfect exercise thereof, and shall not be extinguished by any judgment entered pursuant thereto; such authority and power
may be exercised on one or more occasions, from time to time, in the same or different jurisdictions as often as the Bank shall
deem necessary or advisable, for all of which the Note shall be sufficient authority.

 

Unless otherwise required under a Loan
Agreement, if applicable, and as long as any indebtedness evidenced by the Promissory Note, as modified by this Agreement remains
outstanding or as long as Bank remains obligated to make advances, the undersigned shall furnish annually an updated financial
statement in a form satisfactory to Bank, which, when delivered shall be the properly of the Bank. Further, the undersigned agree
to provide any and all documentation requested by the Bank in order to verify the identity of the undersigned in accordance with
the USA Patriot Act

 

(SIGNATURES ON FOLLOWING PAGE)

 

    	Page 4 of 4

    	 

    

BB&T

NOTE MODIFICATION AGREEMENT

 

	Borrower:	UNITED STRATEGIES, INC.

 

	Account Number:	9550902025	 	Note Number:	00001
	 	 	 	 	 
	Modification Amount:	10,000,000.00	 	Modification Date:	11/07/2011

 

IN WITNESS WHEREOF, the undersigned,
on the day and year first written above, has caused this Agreement to be executed under seal.

 

Borrower is a Corporation:

 

	WITNESS:	 	 	 
	 	 	NAME OF CORPORATION	 
	/s/ W.A.B.	 	By:	/s/ William Ochall	(Seal)
	 	 	 	 
	 	 	Title	Chief Financial Officer	 
	 	 	 	 
	 	 	By:	 	(Seal)
	 	 	 	 
	 	 	Title	 	 

 

If Borrower is a Partnership, Limited
Liability Company, Limited Liability partnership or

Limited Liability Limited Partnership:

 

	WITNESS:	 	 	 
	 	 	NAME OF CORPORATION	 
		 	By:	 	(Seal)
	 	 	 	 
	 	 	Title	 	 
	 	 	 	 
	 	 	By:	 	(Seal)
	 	 	 	 
	 	 	Title	 	 

 

If Borrower is an individual:

 

WITNESS:

 

	 	 	 	 (Seal)

 

Additional Borrowers and Debtors/Grantors/Guarantors:

 

	WITNESS:	 	Promark Technology, Inc.	 
	 	 	 	 
	/s/ W.A.B.	 	/s/ William Ochall	 (Seal)
	 	 	 	 
	 	 	Chief Financial Officer	 (Seal)
	 	 	 	 
	 	 	 	 (Seal)
	 	 	 	 
	 	 	 	 (Seal)
	 	 	 	 
	 	 	 	 (Seal)

 

    	 

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

This Schedule “DD” is an attachment
to and a part of the Loan Agreement (the “Loan Agreement”) dated August 17, 2010 between Branch Banking and
Trust Company (“Bank”) and UNITED STRATEGIES, INC., a Delaware corporation and PROMARK TECHNOLOGY, INC., a Maryland
corporation (collectively, “Borrower”).

 

DD.01. Definitions. In addition
to the words and terms defined elsewhere in this Schedule DD, the Loan Agreement and the Uniform Commercial Code of Maryland, as
amended from time to time, (the “UCC”) the following terms shall have the following specified meanings:

 

(a)          Account
Debtor. Any Person obligated to Borrower on an Account.

 

(b)          Account(s).
Any right to payment of a monetary obligation, whether or not earned by performance, including without limitation any receivable,
contract right, note, draft, instrument, acceptance, chattel paper, lease, or other writing or open account resulting from the
sale, lease, license, assignment or other disposal of property by Borrower, or from services rendered or to be rendered by Borrower.

 

(c)          Advance
Rate. The percentage of the total value of Eligible Accounts, Eligible Inventory, Eligible Export-Related Accounts, Eligible
Export-Related Inventory, or Other Collateral Bank will lend to Borrower, as set forth in Section DD.02.

 

(d)          Asset
Based Lending Credit Line Sweep Services Agreement. If applicable, that agreement between Bank and Borrower whereby Borrower
agrees that all remittances in payment of Accounts shall be deposited in its designated Collateral Reserve Account, Operating Account,
or Medicare Receivables Account, as applicable, and shall be administered and applied in accordance with the ABL Credit Line Sweep
Services Agreement. This agreement is to be read in conjunction with, and is a part of, the Treasury Management Agreement, the
Loan Agreement and this Schedule DD.

 

(e)          Asset
Based Sweep Services Attachment. If applicable, that agreement between Bank and Borrower whereby Borrower agrees that all remittances
in payment of Accounts which are deposited to the Collateral Reserve Account will be applied to the outstanding Line of Credit,
as well as other provisions of the Loan Documents. This agreement is to be read in conjunction with, and is a part of, the Treasury
Management Agreement, the Loan Agreement, and this Schedule DD.

 

(f)          Availability.
The lesser of the Bank’s Line of Credit or Collateral Loan Value reduced by (i) the principal balance outstanding under the
Line of Credit, (ii) the Letter of Credit Exposure Reserve, and (iii) the Availability Reserve as determined by Bank from the most
recent Loan Base Report and otherwise in the sole discretion of the Bank after consideration of Collections.

 

(g)          Availability
Reserve. A reserve against Availability determined by Bank in its sole discretion from time to time to reflect events, conditions,
contingencies or risks or other loans of Bank which without limitation do or may affect the Collateral Loan Value, the business
prospects of Borrower or any Account Debtor, or the security interest of Bank, including enforceability, perfection and the priority
thereof.

 

(h)          Bill
and Hold. An Account generated by the sale of goods for which an invoice has been issued to the buyer, but the goods represented
by such Account remain undelivered to the buyer and/or under the control of Borrower or Borrower’s representative.

 

(i)          Collateral.
Collateral shall mean the assets and property described in the Security Agreement including, without limitation, Borrower’s
Accounts, Inventory and Other Collateral.

 

Account No. 9550902025 Note No. 00001

 

    	Page 1 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

(j)          Collections.
Collections shall be deemed to include Proceeds of Collateral, in any form received by Bank pursuant to a Lockbox Agreement, or
deposited in a Collateral Reserve Account or an Operating Account or a Medicare Receivables Account or other account maintained
with Bank, or any other account maintained for the benefit of the Bank, such as a blocked account, which Collections shall be the
exclusive and sole property of Bank to the extent applied to the outstanding balance of the Line of Credit.

 

(k)          Collateral
Loan Value. The aggregate value of the Advance Rate as applied to the Eligible Accounts, and/or Eligible Export-Related Accounts,
the Advance Rate as applied to the Eligible Inventory and/or Eligible Export-Related Inventory and the Advance Rate applied to
the value of Other Collateral, if any.

 

(1)         Collateral
Reserve Account. The demand deposit account maintained with Bank by Borrower into which all proceeds of the Collateral shall
be deposited and to which only Bank will have access.

 

(m)          Contra
Account. An Account subject to offset, in the sole discretion of Bank, by an Account Debtor of Borrower.

 

(n)          Credit
Insurance. A policy of credit insurance, satisfactory to Bank, insuring Accounts collaterally assigned to Bank naming Bank
as a “loss payee.”

 

(o)          Cross
Aging Rule. Should any Account due Borrower from an Account Debtor have 50% (upon notice, such other percentage as Bank in
its discretion shall determine) or more of their total aggregate Accounts aged in excess of the Eligibility Period, then all Accounts
from such Account Debtor shall be deemed ineligible.

 

(p)          Eligible
Account and/or Eligible Inventory. An Eligible Account is an Account which is not an Ineligible Account, as defined in Section
DD.03 hereof; and Eligible Inventory is Inventory which is not Ineligible Inventory, as defined in Section DD.04 hereof.

 

(q)          Eligible
Export-Related Account and/or Eligible Export-Related Inventory. An Eligible Export-Related Account is a foreign account which
is not an Ineligible Foreign Account, as defined in Section DD.03 hereof; and Eligible Export-Related Inventory is Inventory which
is not Ineligible Export-Related Inventory as defined in Section DD.04 hereof.

 

(r)          Eligibility
Period. The Eligibility Period for any Account shall mean not more than 90 days from the original invoice date.

 

(s)          Exam.
Exam means those examinations on the premises of Borrower or wherever books, records, or Collateral are located, however maintained,
including but not limited to the inspection of Inventory, and standard testing of such books and records by Bank’s representatives,
at any time during normal business hours of Borrower, with or without prior notice to Borrower from Bank, as provided in Section
DD.06(b).

 

(t)          Excess
Inventory. That level of Inventory on hand determined by Bank to be in excess of a N/A months supply of Borrower’s requirements
therefor unless, upon written notice by Bank, Bank in its discretion shall determine a greater or lesser level of Inventory.

 

(u)          Fees.
Those fees which Borrower will pay to Bank in conjunction with Bank’s asset based lending services as set forth in Section
DD-07 hereof, whether or not actual loan obligations exist, while the Loan Agreement is in force.

 

Account No. 9550902025 Note No. 00001

 

    	Page 2 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

(v)         Foreign
Accounts. Any Account due from any Person located outside the fifty states comprising the United States of America and the
District of Columbia unless the Account is due from a Person located in a country, commonwealth and/or possession identified in
Section DD.02(f) hereof.

 

(w)        Government
Account. Any Account owed by the United States of America or any state or political subdivision thereof, or any department,
agency, authority, board or instrumentality thereof.

 

(x)         Ineligible
Accounts and/or Ineligible Inventory. Shall have the meanings given in Sections DD.03 and DD.04 hereof.

 

(y)        Ineligible
Export-Related Accounts and/or Ineligible Export-Related Inventory. Shall have the meaning given in Sections DD.03 and DD.04
hereof.

 

(z)         Intellectual
Property. Property of any Person constituting under any applicable federal or state law a patent, copyright, trademark, service
mark, trade name, trade secret, or license or other right to use any of the foregoing.

 

(aa)       Inter-Company
Account. Any Account from any Account Debtor with Borrower in any manner including, without limitation, as owner, member, partner,
shareholder, officer, director, employee, agent, or which is an affiliate of Borrower.

 

(bb)      Inventory.
Goods which are leased or held by Borrower for sale or lease as lessor or furnished under a contract of service, and shall include
goods, finished goods, raw materials, work-in-process, and materials to be used and/or consumed in a business and proceeds thereof
including Accounts and Chattel Paper.

 

(cc)       Inventory
Caps. The maximum loan amount Bank may lend against the Eligible Inventory and/or Eligible Export-Related Inventory, as set
forth in Section DD.02(c) and (d).

 

(dd)      Letter
of Credit. Any Letter of Credit issued by Bank on behalf of Borrower, as Applicant; provided, however, inclusion of this definition
shall not imply, or be construed as, a commitment by Bank to issue any Letters of Credit.

 

(ee)       Letter
of Credit Exposure Reserve. At any given date, the aggregate face amount of outstanding Letters of Credit on such date plus
the aggregate amount of drafts drawn under or purporting to be drawn under Letters of Credit that have been paid by Bank and for
which Bank has not been reimbursed.

 

(ff)        License
Agreement. An agreement between Borrower and Licensor pursuant to which Borrower is authorized to use such Licensor’s
Intellectual Property in connection with the manufacturing, sale or other transfer or distribution of Inventory.

 

(gg)      Licensor.
Any Person from whom Borrower obtains a License Agreement.

 

(hh)     Licensor/Bank Agreement.
An agreement satisfactory to Bank among Borrower, Bank and Licensor pursuant to which Licensor consents and authorizes Bank to
enforce its security interests and liens against Inventory with the benefit of the Intellectual Property regardless of whether
Borrower has defaulted under a License Agreement therefor.

 

(ii)         Line
of Credit. The amount of each Line of Credit (domestic and/or foreign) approved by Bank and set forth in the Loan Agreement.

 

Account No. 9550902025 Note No. 00001

 

    	Page 3 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

(jj)         Loan
Base Report. That report on Bank’s standard form, or in a form otherwise acceptable to Bank, to be prepared, signed,
dated and delivered by Borrower in accordance with Bank’s instructions, and submitted to Bank by Borrower at specified intervals
and/or occasions, and detailing pertinent information as regards Accounts and/or Inventory and/or Other Collateral, Reserves, Collateral
Loan Value, outstanding Line of Credit balance, and Availability.

 

(kk)       Lockbox
Agreement. That agreement on Bank’s standard form, or in a form otherwise acceptable to Bank, to be executed by Borrower
relating to the provision for lockbox services and requirements.

 

(ll)         Medicare
Receivable. A Government Account arising from the provision of Medicare products and services by Borrower as an eligible provider
and/or supplier of Medicare products or services.

 

(mm)     Medicare
Receivables Account. A deposit account in Borrower’s name only maintained at Bank into which proceeds/payments of Medicare
Receivables shall be deposited; and, notwithstanding any provision in the Loan Agreement, this Schedule or other agreements between
Borrower and Bank, the Bank shall not have a right of offset, and by execution hereof does hereby waive, such right of offset to
the proceeds/payments of Medicare Receivables deposited to such account.

 

(nn)      Operating
Account. Operating Account shall mean the Borrower’s demand deposit account at any time with Bank, or any substitute
or replacement account at Bank.

 

(oo)      Other
Collateral. Collateral that shall be included in Collateral Loan Value, other than Accounts or Inventory, as specifically approved
and determined by Bank in its sole discretion.

 

(pp)      Person.
Any individual, corporation, general or limited partnership, limited liability company or partnership, limited liability limited
partnership, trust, unincorporated organization, association, joint venture, or a state or federal government agency or political
subdivision thereof.

 

(qq)      Proceeds.
Proceeds shall have the meaning given to it under the UCC and shall include without limitation the collections and distributions
of Collateral, cash or non-cash.

 

(rr)        Reserves.
Aggregate deductions from the Collateral Loan Value and/or Availability as determined by Bank from time to time, including, but
not limited to, Letter of Credit Exposure Reserve and the Availability Reserve.

 

DD.02. Advance Rates/Advances/ Prepayment
and Other Provisions. 

Bank agrees that the Advance Rates to be used to calculate
the Collateral Loan Value shall be:

	 	(a)	85% against the Eligible Accounts.
	 	(b)	0% against the Eligible Export-Related Accounts

 

	 	(c)	Against the Eligible Inventory as follows:	Inventory Sublimits:

	 	50%	Finished Inventory	$1,000,000.00
	 	0%	Raw Materials Inventory	$0
	 	0%	Work in Process Inventory	$0
	 	0%	In Transit Inventory	$0
	 	0%	Other Eligible Inventory	$0
	 	 	 	 
	 	 	 	Subtotal:    $1,000,000.00

 

	 	(d)	Against Eligible Export-Related Inventory as follows:

	 	0%	Raw Materials Inventory	$0
	 	0%	Work in Process Inventory	$0
	 	0%	Work in Process Inventory	$0
	 	0%	Other Eligible Inventory	$0
	 	 	 	 
	 	 	 	Subtotal:     $0.00

 

Account No. 9550902025 Note No. 00001

 

    	Page 4 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

Inventory values will not exceed
the lower of cost or market and, if required by Bank, will be reduced by the LIFO reserve. The aggregate loan advances against
Eligible Inventory shall not exceed at any time the foregoing Inventory Sublimits or Subtotals or an Aggregate Inventory Sublimit
of $1,000,000.00 (the “Inventory Caps”).

 

(e)          Other
Collateral shall be included in the Collateral Loan Value as approved by Bank from time to time, together with an Advance Rate
determined by Bank from time to time.

 

(f)          Any
Account due from a Person located in the following identified countries, commonwealths, and/or possessions shall not be deemed
a Foreign Account: (list) NONE.

 

(g)          Notwithstanding
that the following Account Debtor(s) shall be ineligible pursuant to the terms hereof, such Account Debtor(s) shall nonetheless
be deemed eligible by Bank, subject to any limitations and/or advance provisions set forth below, until Bank, upon written notice,
in its sole discretion, shall provide otherwise:

 

	Account Debtor/Address	 	Limitations/Advance Provisions
	 	 	 
	NONE.	 	 

 

Bank reserves the right, upon
notice, in its sole discretion, to amend the Eligibility Period, Inventory Caps, Reserves, or the provisions of Section DD.02(f)
and (g) at any time; and, the Loan Base Report, upon receipt by Bank, shall be subject to Bank’s satisfactory review, acceptance
or correction.

 

Bank agrees to (i) make advances
under the Line of Credit automatically, without any request by Borrower upon the presentment of items drawn against Borrower’s
operating account, provided the Availability, as shown upon a current acceptable Loan Base Report as required herein, and otherwise
determined by Bank in its sole discretion after consideration of Collections, is sufficient to cover such advances, or (ii) fund
the operating account based on request(s) for advances from Borrower orally or in writing provided the Availability is sufficient
to cover such advances. Borrower shall submit a completed Loan Base Report to Bank as required, so long as the Line of Credit shall
exist, regardless of the outstanding balance thereof. It is further provided that Borrower releases Bank from any liability or
obligation for and agrees to indemnify and hold Bank harmless from and against any loss, cost, damage or expense (including Bank’s
reasonable attorneys’ fees) incurred or suffered as a result of the payment by Bank of any item drawn against Borrower’s
checking account that is subsequently determined to have been improperly paid for any reason, except for the gross negligence or
willful misconduct of Bank. Bank also reserves the right, upon notice, in its sole discretion, to discontinue the automatic payment
of items presented to Bank, and to require written or oral advance requests to be made by Borrower.

 

Bank is authorized (without any
further request from Borrower) to advance on behalf of Borrower as a Loan all sums required to be paid by Borrower to Bank in respect
of any Letter of Credit pursuant to the terms of the Application for Letter of Credit (including all fees associated therewith),
but Bank shall have no obligation to make such a Loan.

 

Bank may debit the amount of
any payment due under the Loan Agreement and this Schedule DD from the Operating Account, any deposit account or loan account of
Borrower maintained with Bank, but Bank shall have no obligation to do so.

 

Account No. 9550902025 Note No. 00001

 

    	Page 5 of 12

    	 

    

  

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

If the principal balance outstanding
at any time under the Line of Credit exceeds the lesser of the approved maximum amount of the Line of Credit or the Collateral
Loan Value reduced by the Reserves (herein an “Overadvance”), Borrower shall immediately prepay the Line of Credit
to the extent necessary to eliminate such excess. For so long as the Overadvance shall exist and be continuing, and without prejudice
to any other rights Bank may have hereunder, Bank shall be authorized upon written notice to Borrower to assess an overadvance
fee as determined by Bank in its discretion in an amount up to 1% of the Overadvance, but not less than $1,500, subject to such
other minimum amount as Bank in its discretion upon notice to Borrower shall determine.

 

DD.03. Ineligible Accounts.

Ineligible Accounts shall include the following:

(a)          The
amount of any Account outside of the Eligibility Period.

(b)          Any
Account which is a Contra Account.

(c)          Any
Account subject to the Cross Aging Rule.

(d)          Any
Account which has been bonded or become subject to a suretyship or other similar arrangement.

(e)          Any
Inter-Company Account.

(f)          Any
Foreign Account, including any Export-Related Account, unless such Account shall be insured by Credit Insurance, or such Account
shall be supported by a letter of credit for the benefit of and acceptable to Bank, or such Account shall be eligible pursuant
to a duly executed Loan Authorization Agreement issued by the Small Business Administration of the United States Government in
favor of Bank, or such Account is eligible pursuant to a duly executed Borrower Agreement issued by the Export-Import Bank of the
United States in favor of Bank, or such Account is otherwise expressly approved in writing by the Bank.

(g)          Any
Account representing a Bill and Hold or similar arrangement.

(h)          Any
Government Account due from any branch, agency, or political subdivision of the State or Federal Government, including without
limitation, any municipality, county, or board (each a “Governmental Entity”)for which the proper Assignment of Claims
form, governmental consents, approvals, or Notice of Assignment form have not been fully executed or warrant issued for payment
thereof by the Governmental Entity if such assignments, consents, approvals or warrants for payment shall be required by Bank in
writing.

(i)          Any
Account due from any government agency which, by contract, precludes and/or prohibits the collateral assignment of such Account,
unless otherwise expressly approved by Bank in writing.

(j)          Any
Account which, at the discretion of Bank, is deemed doubtful for collection for any reason, including but not limited to, those
involving disputes, returns, credit worthiness, legal proceedings, whether in process, pending or threatened, conditional payments,
is not free of all liens, encumbrances, charges, rights and interest except those in favor of Bank; or represent deposits, retainages,
or progress billings, or are not payable in U.S. Dollars.

(k)          That
portion of Accounts due from an Account Debtor which is in excess of a concentration limit of twenty-five percent (25%) of Borrower’s
aggregate dollar amount of all outstanding Accounts.

(l)          That
portion of Accounts which represent a credit balance on any Account outside of the Eligibility Period.

(m)          Any
Chattel Paper unless expressly made an Eligible Account in writing by Bank.

(n)          Any
Account otherwise deemed ineligible by Bank in its sole discretion.

 

Bank reserves the right, upon
notice, in its sole discretion, to amend the terms of the Ineligible Accounts at any time.

 

Account No. 9550902025 Note No. 00001

 

    	Page 6 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

DD.04.         Ineligible
Inventory.

Ineligible Inventory shall include the
following:

 

		(a)	Inventory not legally owned by Borrower, including but
not be limited to, goods on consignment from any supplier, vendor, and/or individual, or goods on demonstration and/or for trial,
and not subject to the first lien priority security interest in favor of Bank.

		(b)	Inventory not in new and/or salable condition, including
but not limited to, damaged goods, goods used by Borrower and/or potential buyers, goods with missing components/parts and not
in a whole condition.

		(c)	Inventory which has been held by Borrower more than 12
months without being sold and/or leased.

		(d)	Inventory representing work-in-process unless authorized
by Bank pursuant to DD.02(c) and/or (d).

		(e)	Inventory deemed by Bank, at its sole discretion, to
cause and/or represent unusual danger to the health and/or safety of individual(s) and/or the environment.

		(f)	Inventory which violates any federal law and/or laws
of the city, county, or state where the goods are stored.

		(g)	Inventory of which Borrower is the legal owner but which
is being stored and/or housed at a location other than the place of business of Borrower or in transit (unless otherwise approved
by Bank in writing including conditions thereof) or is otherwise authorized as set forth hereinabove in Section DD.02(c) and/or
(d).

		(h)	Inventory deemed otherwise ineligible by Bank in its
sole discretion.

		(i)	Inventory subject to a security interest, lien or other
encumbrance in favor of any other Person.

		(j)	Inventory, if Export-Related Inventory, unless such Inventory
is eligible pursuant to a duly executed Loan Authorization Agreement issued by the Small Business Administration of the United
States Government in favor of Bank, or such Inventory is eligible pursuant to a duly executed Borrower Agreement issued by the
Export-Import Bank of the United States in favor of Bank, or such Inventory is otherwise expressly approved in writing by Bank.

		(k)	Inventory determined by Bank to be Excess Inventory.

		(l)	Inventory subject to a License Agreement for which Bank
shall have required in writing a Licensor/Bank Agreement and such agreement shall not have been obtained.

 

Bank reserves the right, upon
notice, in its sole discretion, to amend the terms of the Ineligible Inventory at any time.

 

DD.05. Proceeds of Collateral and
Application of Proceeds. (Check either (b) or (c); and (a) if applicable.)

		x	(a)          Borrower
shall execute a Lockbox Agreement with Bank and shall notify, or cause to be notified, all Account Debtors to forward all remittances
to the lockbox in accordance with such Lockbox Agreement. Customer shall pay all costs of such lockbox, including set up and administration
thereof.

		 ̈	(b)          Borrower
agrees to deposit all Proceeds of the Collateral in a Collateral Reserve Account at Bank, except that Medicare Receivables proceeds
shall be deposited to the Medicare Receivables Account.

		 ̈	(c)          Borrower
agrees to deposit all Proceeds of the Collateral in an Operating Account.

Borrower agrees that all Proceeds
shall be applied as described in the Loan Documents (including the Asset-Based Sweep Services Attachment or the ABL Credit Line
Sweep Services Agreement, if applicable). Bank reserves the right, in its sole discretion, to require Borrower to implement DD.05
(b) and/or DD.05 (a) immediately upon written notification from Bank.

 

DD.06.  Reporting / Exam.

(a)          Reporting.
(Check all that apply)

Borrower shall provide the following
reports, financial statements, list of Account Debtors and addresses and other reports to Bank upon execution hereof and thereafter
as indicated below (herein the “Required Information”). Unless and until the Bank shall agree otherwise, such Required
Information shall be submitted to Bank electronically in non-scanned PDF format acceptable to Bank via the internet as an electronic
record thereof or in such other format acceptable to Bank.

 

Account No. 9550902025 Note No. 00001

 

    	Page 7 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

	Weekly	 	Quarterly	 	Annually	 	Month-End	 	 
	 	 	£	 	 	 	S	 	Monthly Loan Base Reports. Monthly Loan Base Reports, prepared as of the end of each reporting period. Except as set forth below, Loan Base Reports are required for all loans covered by this Agreement no later than 15 days following each reporting period end. Additionally, all other required reports indicated below will also be due on the fifteenth (15th) day of each reporting period.
	S	 	 	 	 	 	 	 	Weekly Loan Base Reports.  Weekly Loan Base Reports, based on information with an “as of” date no more than eight (8) business days old when received by Bank.  Sales and cash receipts journals shall accompany each report.  The last Weekly Loan Base Report provided each month shall be a full or partial week with an “as of” date consistent with Borrower’s fiscal month end, subject to reconciling adjustments, if any, in the monthly reports hereinafter required.
	 	 	£	 	 	 	S	 	Accounts Aging based upon invoice date by the fifteenth (15th) day of each reporting period.
	 	 	£	 	 	 	S	 	Inventory Report by the fifteenth (15th) day of each reporting period.
	 	 	£	 	 	 	£	 	Accounts Payable Aging by the fifteenth (15th) day of each reporting period.
	 	 	S	 	 	 	£	 	Financial Statements, which shall be due on the 45th day after the end of each quarter as indicated.
	 	 		 	S	 	£	 	A list of Account Debtors with current addresses.
	£	 	£	 	£	 	£	 	Other: _______

 

Borrower shall forward to Bank
any of these reports at such other times as Bank may require them, upon notice to Borrower, and/or any other reports deemed necessary
by Bank in its discretion to monitor the Collateral for the Line of Credit. Notwithstanding any provision to the contrary, if any,
in the Loan Agreement, the foregoing reporting requirements shall not be subject to notice of default by Bank, or right to cure
by Borrower, it being expressly understood and agreed that timely receipt of same are material and fundamental to the Bank’s
administration and funding of the Line of Credit. Upon written notice, Bank shall be authorized to impose a late reporting fee
as determined by Bank for failure of Borrower to timely comply with the reporting requirements of this section.

 

(b)          Exam.
From time to time, but at least two (2) times per year, as deemed necessary by Bank in its sole discretion to monitor Collateral,
Borrower hereby authorizes Bank or any agent or representative thereof to inspect, examine and verify the Accounts, Inventory,
and Other Collateral, make copies of and make abstracts from all the records and books of account of, and visit the properties
of Borrower, and to discuss the affairs, finances, and Collateral generally of Borrower with any of its respective owners, officers,
directors, shareholders, members, or partners and Borrower’s independent accountants and consultants. Without expense to
Bank, Bank may use any of Borrower’s personnel, equipment, including computer equipment, programs and computer readable media
as deemed necessary by Bank to conduct such Exam.

 

Account No. 9550902025 Note No. 00001

 

    	Page 8 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

DD.07. Fees.

		(a)	Borrower shall pay to Bank the sum of $400 per month
as a fee for the use of Bank’s asset based lending services which shall be in addition to any fees or other charges for
the treasury services of Bank. This fee may be changed by written notice to Borrower.

		(b)	Borrower shall pay to Bank for each Exam of Borrower,
an examination fee of $750.00 per diem per examiner plus expenses such as, but not limited to, travel expense(s), specialized
equipment needed to count and/or value goods pledged as Collateral to Bank, the use of outside firms to perform any Exam as deemed
necessary by Bank in its sole discretion to monitor Collateral, with said reimbursement being represented by receipts and/or listing
of expense(s) submitted to Borrower by Bank along with Bank’s invoice for reimbursement. Bank reserves the right to change
the examination fee upon notice to Borrower.

		(c)	Borrower shall pay to Bank the actual cost of any
appraisal of Inventory and/or Other Collateral performed by an independent appraiser as required by Bank.

		(d)	Bank in its discretion may charge a late reporting
fee for Borrower’s failure to provide timely reports required under Section DD.06.

		(e)	Bank reserves the right to debit all Fees from the
Operating Account of Borrower.

 

DD.08. Events of Default. In
addition to those Events of Default appearing elsewhere in the Loan Agreement, each of the following shall constitute an additional
Event of Default under the Loan Agreement:

		(a)	The refusal by Borrower to permit Bank to inspect,
examine or verify the books and records in accordance with the Exam provisions of this Loan Agreement.

		(b)	Failure to execute a Lockbox Agreement and notify
Account Debtors to remit payments to the Lockbox, if required by Bank.

		(c)	Failure to deposit checks or other remittances received
in payment of Accounts into the Collateral Reserve Account or Operating Account, as required pursuant to Section DD.05.

		(d)	If the outstanding principal balance under the Line
of Credit plus the Reserves exceeds the Collateral Loan Value or the amount of the Line of Credit and Borrower fails immediately
to prepay the Line of Credit by an amount sufficient to bring Borrower in compliance with this Schedule DD.

		(e)	If Borrower fails to comply with the Reporting requirements
of DD.06(a).

		(f)	If Borrower fails to otherwise comply with any of
the provisions of this Schedule “DD” or the Loan Agreement.

 

DD.09. Other Provisions.

		(a)	Notice. Any notice required to be given
herein shall be effective when made and, notwithstanding any provisions in the Loan Agreement to the contrary, may be made by
hand delivery, confirmed facsimile transmission, overnight courier, first class or certified mail return receipt requested.

		(b)	Operating Account. Notwithstanding any
provision in the Loan Agreement to the contrary, Borrower shall establish and maintain its Operating Account and Medicare Receivables
Account with Bank during the term hereof.

		(c)	Certain Events. Upon execution hereof
and with each borrowing made hereunder pursuant to the Loan Base Report, Borrower shall be deemed to certify to Bank that (i)
no Event of Default shall have occurred and be continuing, and no event shall have occurred and be continuing that, with the giving
of notice or passage of time or both, would be an Event of Default; (ii) no material adverse change shall have occurred in the
financial or operating condition or prospects of Borrower since the date of the Loan Agreement; (iii) all Loan Documents shall
have remained in full force and effect; and (iv) the representations and warranties contained in the Loan Agreement shall be true
and correct as of such date.

 

Account No. 9550902025 Note No. 00001

 

    	Page 9 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

		(d)	Electronic Transactions. Borrower and
Bank agree that the electronic reporting of Required Information authorized herein shall constitute an agreement under the Uniform
Electronic Transfer Act (the “Act”), in effect in the State of North Carolina; and any dispute or controversy relating
to such reporting shall be interpreted in accordance with the provisions of the Act. With respect to such reporting, Borrower
acknowledges that Bank shall not be responsible (i) for any failure, interruption, or delay in the performance of the internet;
(ii) for any unauthorized, inadvertent, or fraudulent access, use or disclosure to third parties of the Required Information should
it occur by error of transmission of Customer or reply thereto by Bank or otherwise; (iii) for Bank’s failure to maintain
security measures at the time of transmission or reply thereto to prevent unauthorized access, misappropriation and use of Required
Information by third parties. Borrower expressly assumes the risk of unauthorized access, use or misappropriation by third parties
of the Required Information transmitted to Bank via the internet and will hold harmless and indemnify Bank from any claim or expense,
including reasonable attorneys fees associated therewith. Until Bank shall receive written notice otherwise from Borrower, the
following persons may be contacted by Bank with any questions or issues about the Required Information:

 

	Primary Contact Person	 	Secondary Contact Person
	 	 	 
	Bill Ochall	 	Dale Foster
	Name	 	Name
	 	 	 
	Chief Financial Officer	 	President
	Title	 	Title
	 	 	 
	1-800-634-0255	 	1-800-634-0255
	Telephone Number	 	Telephone Number
	 	 	 
	billo@promarktech.com	 	dalef@promarktech.com
	E-mail Address	 	E-mail Address

 

This agreement is made and entered into
for the sole protection and benefit of Bank and Borrower, their successors and assigns, and no third person or persons shall have
any right(s) to action hereon.

 

[Signatures
on Following Page]

 

Account No. 9550902025 Note No. 00001

 

    	Page 10 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

IN WITNESS WHEREOF, Borrower and Bank have
executed this Schedule “DD” as of this date and have adopted as their respective seal the “seal” appearing
beside or near their signatures below.

 

	 	BORROWER:	 
	 	 	 	 
	 	UNITED STRATEGIES, INC.,	 
	 	a Delaware corporation	 
	 	 	 	 
	 	By:	/s/ William J. Ochall	[Seal]
	 	Name:	William Ochall	 
	 	Title:	Chief Financial Officer	 
	 	 	 	 
	 	PROMARK TECHNOLOGY, INC.,	 
	 	a Maryland corporation	 
	 	 	 	 
	 	By:	/s/ William J. Ochall	[Seal]
	 	Name:	William Ochall	 
	 	Title:	Chief Financial Officer	 

 

STATE OF MARYLAND

 

CITY/COUNTY OF Anne Arundel 

 

I, Stacy Charlier_____,
Notary Public of the City/County and State aforesaid, certify that WILLIAM OCHALL, personally came before me this day and acknowledged
that he is the Chief Financial Offier of UNITED STRATEGIES, INC., a Delaware corporation, and the Chief Financial Officer of PROMARK
TECHNOLOGY, INC., a Maryland corporation, and that by authority duly given and as the act of the corporations, the foregoing instrument
was signed in their name by him, as their Chief Financial Officer.

 

Witness my hand and
official stamp or seal, this 17___ day of August, 2010.

 

	My commission expires: 10/16/10	/s/ Stacy Charlier	 
	 	Notary Public	 
	 	 	 

(SIGNATURES CONTINUE ON FOLLOWING PAGE)

 

Account No. 9550902025 Note No. 00001

 

    	Page 11 of 12

    	 

    

 

BB&T

 

SCHEDULE “DD” TO BB&T
LOAN AGREEMENT

 

	 	BRANCH BANKING AND TRUST COMPANY,
	 	a North Carolina corporation
	 	 	 
	 	By:	[Seal]
	 	 	Brannon E. Fitch
	 	 	Senior Vice President

 

STATE OF MARYLAND

 

CITY/COUNTY OF ______________

 

I, ______________,
a Notary Public of the City/County and State aforesaid, certify that BRANNON E. FITCH, personally came before me this day and acknowledged
that he is the Senior Vice President of BRANCH BANKING AND TRUST COMPANY, a North Carolina corporation, and that by authority duly
given and as the act of the corporation, the foregoing instrument was signed in its name by him, as its Senior Vice President.

 

Witness my hand and
official stamp or seal, this ________ day of August, 2010.

 

	My commission expires:	 	 
	 	Notary Public	 

 

Account No. 9550902025 Note No. 00001

 

    	Page 12 of 12Exhibit 10.1 

 

CHINA HGS REAL ESTATE INC.

 

INDEPENDENT DIRECTOR AGREEMENT

 

 

 

This DIRECTOR AGREEMENT
(the “Agreement”) is made and entered into as of this 22nd day of August, 2012, effective as of August 22, 2012 (the
“Effective Date”), by and between China HGS Real Estate Inc., a Florida corporation whose shares are publicly
traded (the “Company”), and John Chen, a citizen of the China, with an address at No. 27 Dong San Huan North
Road, Chaoyang District, Beijing 100020, China (the “Independent Director”).

 

WHEREAS, the Company
desires to engage the Independent Director as Chair of the Audit Committee, and the Independent Director desires to serve, as a
non-employee director of the Company, subject to the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants contained herein, the receipt of which is hereby acknowledged, the Company and the Independent
Director, intending to be legally bound, hereby agree as follows:

 

1.DEFINITIONS.

 

(a)“Corporate
Status” describes the capacity of the Independent Director with respect to the Company and the services performed by the
Independent Director in that capacity.

 

(b)“Entity”
shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization
or other legal entity.

 

(c)“Proceeding”
shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal
or informal, including a proceeding initiated by the Independent Director pursuant to Section 12 of this Agreement to enforce the
Independent Director’s rights hereunder.

 

(d)“Expenses”
shall mean all reasonable fees, costs and expenses, approved by the Company in advance and reasonably incurred in connection with
any Proceeding, including, without limitation, attorneys’ fees, disbursements and retainers, fees and disbursements of expert
witnesses, private investigators, professional advisors (including, without limitation, accountants and investment bankers), court
costs, transcript costs, fees of experts, travel expenses, duplicating, printing and binding costs, telephone and fax transmission
charges, postage, delivery services, secretarial services, and other disbursements and expenses.

 

(e)“Liabilities”
shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.

 

    	 

    	 

    
 

(f)“Parent”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending
with the Company, if each of the corporations or entities, other than the Company, owns stock or other interests possessing 50%
or more of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

 

(g)“Subsidiary”
shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning
with the Company, if each of the corporations or entities, other than the last corporation or entity in the unbroken chain, owns
stock or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock
or other interests in one of the other corporations or entities in the chain.

 

2.SERVICES
OF INDEPENDENT DIRECTOR. While this Agreement is in effect, the Independent Director shall perform duties as an independent director
and/or a member of the committees of the Board, be compensated for such and be reimbursed expenses in accordance with the Schedule
A attached to this Agreement, subject to the following.

 

(a)The Independent
Director will perform services as is consistent with Independent Director’s position with the Company, as required and authorized
by the By-Laws and Articles of Incorporation of the Company, and in accordance with high professional and ethical standards and
all applicable laws and rules and regulations pertaining to the Independent Director’s performance hereunder, including without
limitation, laws, rules and regulations relating to a public company.

 

(b)The Independent
Director is solely responsible for taxes arising out of any compensation paid by the Company to the Independent Director under
this Agreement, and the Independent Director understands that she will be issued a U.S. Treasury Form 1099 for any compensation
paid to him by the Company. The Independent Director acknowledges and agrees that because she is not an employee of the Company,
the Company will not withhold any amounts for taxes from any of her payments under the Agreement.

 

(c)The Company
may offset any and all monies payable to the Independent Director to the extent of any monies owing to the Company from the Independent
Director.

 

(d)The rules
and regulations of the Company notified to the Independent Director, from time to time, apply to the Independent Director. Such
rules and regulations are subject to change by the Company in its sole discretion. Notwithstanding the foregoing, in the event
of any conflict or inconsistency between the terms and conditions of this Agreement and rules and regulations of the Company, the
terms of this Agreement control.

 

3.REQUIREMENTS
OF INDEPENDENT DIRECTOR. During the term of the Independent Director’s services to the Company hereunder, Independent Director
shall observe all applicable laws and regulations relating to independent directors of a public company as promulgated from time
to time, and shall not: (1) be an employee of the Company or any Parent or Subsidiary; (2) accept, directly or indirectly, any
consulting, advisory, or other compensatory fee from the Company other than as a director and/or a member of a committee of the
Board; (3) be an affiliated person of the Company or any Parent or Subsidiary, as the term “affiliate” is defined in
17 CFR 240.10A-3(e)(1), other than in his capacity as a director and/or a member of a committee of the Board; (4) possess an interest
in any transaction with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(a),
other than in his capacity as a director and/or a member of a committee of the Board committees; (5) be engaged in a business relationship
with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(b), except that
the required beneficial interest therein shall be modified to be 5% hereby.

 

    	2

    	 

    
 

4.REPORT OBLIGATION.
While this Agreement is in effect, the Independent Director shall immediately report to the Company in the event: (1) the Independent
Director knows or has reason to know or should have known that any of the requirements specified in Section 3 hereof is not satisfied
or is not going to be satisfied; and (2) the Independent Director simultaneously serves on an audit committee of any other public
company.

 

5.TERM AND
TERMINATION. The term of this Agreement and the Independent Director’s services hereunder shall be for three (3) years from
the Effective Date, unless terminated as provided for in this Section 5. This Agreement and the Independent Director’s services
hereunder shall terminate upon the earlier of the following:

 

(a)Removal
of the Independent Director as a director of the Company, upon proper Board or stockholder action in accordance with the By-Laws
and Articles of Incorporation of the Company and applicable law;

 

(b)Resignation
of the Independent Director as a director of the Company upon written notice to the Board of Directors of the Company;

 

(c)Termination
of this Agreement by the Company, in the event any of the requirements specified in Section 3 hereof is not satisfied, as determined
by the Company in its sole discretion; or

 

(d)Failure of the stockholders of
the Company to re-elect the Independent Director at the Company’s annual shareholders’ meeting.

 

6.LIMITATION
OF LIABILITY. In no event shall the Independent Director be individually liable to the Company or its shareholders for any damages
for breach of fiduciary duty as an independent director of the Company, unless the Independent Director’s act or failure
to act involves intentional misconduct, fraud or a knowing violation of law.

 

7.AGREEMENT
OF INDEMNITY. The Company agrees to indemnify the Independent Director as follows:

 

(a)Subject
to the exceptions contained in Section 8(a) below, if the Independent Director was or is a party or is threatened to be made a
party to any Proceeding (other than an action by or in the right of the Company) by reason of the Independent Director’s
Corporate Status, the Independent Director shall be indemnified by the Company against all Expenses and Liabilities incurred or
paid by the Independent Director in connection with such Proceeding (referred to herein as “INDEMNIFIABLE EXPENSES”
and “INDEMNIFIABLE LIABILITIES,” respectively, and collectively as “INDEMNIFIABLE AMOUNTS”).

 

    	3

    	 

    
 

(b)Subject
to the exceptions contained in Section 8(b) below, if the Independent Director was or is a party or is threatened to be made a
party to any Proceeding by or in the right of the Company, to procure a judgment in its favor by reason of the Independent Director’s
Corporate Status, the Independent Director shall be indemnified by the Company against all Indemnifiable Expenses.

 

(c)For purposes
of this Agreement, the Independent Director shall be deemed to have acted in good faith in conducting the Company’s affairs
as an independent director of the Company and/or a member of a committee of the Board of the Company, if the Independent Director:
(i) exercised or used the same degree of diligence, care, and skill as an ordinarily prudent man would have exercised or used under
the circumstances in the conduct of his own affairs; or (ii) took, or omitted to take, an action in reliance upon advise of counsels
or other professional advisors for the Company, or upon statements made or information furnished by other directors, officers or
employees of the Company, or upon a financial statement of the Company provided by a person in charge of its accounts or certified
by a public accountant or a firm of public accountants, which the Independent Director had reasonable grounds to believe to be
true.

 

8.EXCEPTIONS
TO INDEMNIFICATION. Director shall be entitled to indemnification under Sections 7(a) and 7(b) above in all circumstances other
than the following:

 

(a)If indemnification
is requested under Section 7(a) and it has been adjudicated finally by a court or arbitral body of competent jurisdiction that,
in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, (i) the Independent Director
failed to act in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the best interests
of the Company, (ii) the Independent Director had reasonable cause to believe that the Independent Director’s conduct was
unlawful, or (iii) the Independent Director’s conduct constituted willful misconduct, fraud or knowing violation of law,
then the Independent Director shall not be entitled to payment of Indemnifiable Amounts hereunder.

 

(b)If indemnification
is requested under Section 7(b) and

 

(i)it has
been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection with the subject of the Proceeding
out of which the claim for indemnification has arisen, the Independent Director failed to act in good faith and in a manner the
Independent Director reasonably believed to be in or not opposed to the best interests of the Company, including without limitation,
the breach of Section 4 hereof by the Independent Director, the Independent Director shall not be entitled to payment of Indemnifiable
Expenses hereunder; or

 

(ii)it has
been adjudicated finally by a court or arbitral body of competent jurisdiction that the Independent Director is liable to the Company
with respect to any claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen, including,
without limitation, a claim that the Independent Director received an improper benefit or improperly took advantage of a corporate
opportunity, the Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder with respect to such
claim, issue or matter.

 

    	4

    	 

    
 

9.WHOLLY OR
PARTLY SUCCESSFUL. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent
that the Independent Director is, by reason of the Independent Director’s Corporate Status, a party to and is successful,
on the merits or otherwise, in any Proceeding, the Independent Director shall be indemnified in connection therewith. If the Independent
Director is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less
than all claims, issues or matters in such Proceeding, the Company shall indemnify the Independent Director against those Expenses
reasonably incurred by the Independent Director or on the Independent Director’s behalf in connection with each successfully
resolved claim, issue or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding
by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

10.ADVANCES
AND INTERIM EXPENSES. The Company may pay to the Independent Director all Indemnifiable Expenses incurred by the Independent Director
in connection with any Proceeding, including a Proceeding by or in the right of the Company, in advance of the final disposition
of such Proceeding, if the Independent Director furnishes the Company with a written undertaking, to the satisfaction of the Company,
to repay the amount of such Indemnifiable Expenses advanced to the Independent Director in the event it is finally determined by
a court or arbitral body of competent jurisdiction that the Independent Director is not entitled under this Agreement to indemnification
with respect to such Indemnifiable Expenses.

 

11.PROCEDURE
FOR PAYMENT OF INDEMNIFIABLE AMOUNTS. The Independent Director shall submit to the Company a written request specifying the Indemnifiable
Amounts, for which the Independent Director seeks payment under Section 7 hereof and the Proceeding of which has been previously
notified to the Company and approved by the Company for indemnification hereunder. At the request of the Company, the Independent
Director shall furnish such documentation and information as are reasonably available to the Independent Director and necessary
to establish that the Independent Director is entitled to indemnification hereunder. The Company shall pay such Indeminfiable Amounts
within thirty (30) days of receipt of all required documents.

 

12.REMEDIES
OF INDEPENDENT DIRECTOR.

 

(a)RIGHT
TO PETITION COURT. In the event that the Independent Director makes a request for payment of Indemnifiable Amounts under Sections
7, 9-11 above, and the Company fails to make such payment or advancement in a timely manner pursuant to the terms of this Agreement,
the Independent Director may petition the appropriate judicial authority to enforce the Company’s obligations under this
Agreement.

 

    	5

    	 

    
 

(b)BURDEN
OF PROOF. In any judicial proceeding brought under Section 12 (a) above, the Company shall have the burden of proving that the
Independent Director is not entitled to payment of Indemnifiable Amounts hereunder.

 

(c)EXPENSES.
The Company agrees to reimburse the Independent Director in full for any Expenses incurred by the Independent Director in connection
with investigating, preparing for, litigating, defending or settling any action brought by the Independent Director under Section
12 (a) above, or in connection with any claim or counterclaim brought by the Company in connection therewith.

 

(d)VALIDITY
OF AGREEMENT. The Company shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section
12 (a) above, that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration
for this Agreement and shall stipulate in court that the Company is bound by all the provisions of this Agreement.

 

(e)FAILURE
TO ACT NOT A DEFENSE. The failure of the Company (including its Board of Directors or any committee thereof, independent legal
counsel, or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the
advancement of Indemnifiable Expenses under this Agreement shall not be a defense in any action brought under Section 12 (a) above.

 

13.PROCEEDINGS
AGAINST COMPANY. Except as otherwise provided in this Agreement, the Independent Director shall not be entitled to payment of Indemnifiable
Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought by the Independent Director against the
Company, any Entity which it controls, any director or officer thereof, or any third party, unless the Company has consented to
the initiation of such Proceeding. This section shall not apply to counterclaims or affirmative defenses asserted by the Independent
Director in an action brought against the Independent Director.

 

14.INSURANCE.
The Company will obtain and maintain a policy or policies of director and officer liability insurance, in an amount not less than
$2,000,000, of which the Independent Director will be named as an insured, providing the Independent Director with coverage for
Indemnifiable Amounts and/or Indemnifiable Expenses in accordance with said insurance policy or policies (“D&O INSURANCE”);
provided that:

 

(a)The Independent
Director agrees that, while the Company has valid and effective D&O Insurance, and except as provided in (c) of this section,
Sections 7-13 of this Agreement shall not apply, and the Company’s indemnification obligation to the Independent Director
under this Agreement shall be deemed fulfilled by virtue of purchasing and maintaining such insurance policy or policies, in accordance
with the terms and conditions thereof and subject to exclusions stated thereon. The Independent Director agrees that the Company
shall have no obligation to challenge the decisions made by the insurance carrier(s) (“INSURANCE CARRIER”) relating
to any claims made under such insurance policy or policies;

 

    	6

    	 

    
 

(b)The Independent
Director agrees that the Company’s indemnification obligation to the Independent Director under (a) of this section shall
be deemed discharged and terminated, in the event the Insurance Carrier refused payment for any Proceedings against the Independent
Director due to the acts or omissions of the Independent Director;

 

(c)While
the D&O Insurance is valid and effective, the Company agrees that it shall indemnify the Independent Director for the Indemnifiable
Amounts and Indemnifiable Expenses, to the extent that any Proceedings are coverable by D&O Insurance, but in excess of the
policy amount, in accordance with Sections 7-13 of this Agreement; and

 

(d)While the D&O
Insurance is valid and effective, the Company agrees that it shall indemnify the Independent Director to the extent that the Independent
Director has liability that would be part of the D&O Insurance deductible, if there is any; and

 

(e)While
the D&O Insurance is valid and effective, this Section 14 states the entire and exclusive remedy of the Independent Director
with respect to the indemnification obligation of the Company to the Independent Director under this Agreement.

 

15.SUBROGATION.
In the event of any payment of Indemnifiable Amounts under this Agreement and/or the D&O Insurance, the Company or its Insurance
Carrier, as the case may be, shall be subrogated to the extent of such payment to all of the rights of contribution or recovery
of the Independent Director against other persons, and the Independent Director shall take, at the request of the Company, all
reasonable action necessary to secure such rights, including the execution of such documents as are necessary to enable the Company
to bring suit to enforce such rights.

 

16.AUTHORITY.
Each party has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution,
delivery and performance of the undertakings contemplated by this Agreement have been duly authorized by each party hereto:

 

17.SUCCESSORS
AND ASSIGNMENT. This Agreement shall (a) be binding upon and inure to the benefit of all successors and assigns of the Company
(including any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or
indirect successor by merger or consolidation or otherwise by operation of law), and (b) be binding on and shall inure to the benefit
of the heirs, personal representatives, executors and administrators of the Independent Director. The Independent Director has
no power to assign this Agreement or any rights and obligations hereunder.

 

18.CHANGE
IN LAW. To the extent that a change in applicable law (whether by statute or judicial decision) shall mandate broader or narrower
indemnification than is provided hereunder, the Independent Director shall be subject to such broader or narrower indemnification
and this Agreement shall be deemed to be amended to such extent.

 

19.SEVERABILITY.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to
be illegal, invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application
to the minimum extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and
clauses of this Agreement shall remain fully enforceable and binding on the parties.

 

    	7

    	 

    
 

20.MODIFICATIONS
AND WAIVER. Except as provided in Section 18 hereof with respect to changes in applicable law which broaden or narrow the right
of the Independent Director to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by each of the parties hereto. No delay in exercise or non-exercise by the Company of any
right under this Agreement shall operate as a current or future waiver by it as to its same or different rights under this Agreement
or otherwise.

 

21.NOTICES.
All notices, requests, demands and other communications hereunder shall be in writing in English and shall be deemed to have been
duly given (a) when delivered by hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by express
mail with delivery confirmation with postage prepaid, on the 5th business day after the date on which it is so mailed:

 

If to Independent
Director, to: 21st Floor, Tower B, Jiaming Cente, No. 27 Dong San Huan North Road, Chaoyang District, Beijing 100020,
China

 

If to the Company,
to: 6 Xinghan Road, 19th Floor, Hanzhong City, Shaanxi Province, PRC 723000

 

Or to such other
address as may have been furnished in the same manner by any party to the others.

 

22.GOVERNING
LAW. This Agreement shall be governed by and construed and enforced under the laws of the State of New York.

 

23.CONSENT
TO JURISDICTION. The parties hereby consent to the jurisdiction of the courts having jurisdiction over matters arising in New York
County, New York for any proceeding arising out of or relating to this Agreement. The parties agree that in any such proceeding,
each party shall waive, if applicable, inconvenience of forum and right to a jury.

 

24.AGREEMENT
GOVERNS. This Agreement is to be deemed consistent wherever possible with relevant provisions of the By-Laws and Articles of Incorporation
of the Company; however, in the event of a conflict between this Agreement and such provisions, the provisions of this Agreement
shall control.

 

25.INDEPENDENT
CONTRACTOR. The parties understand, acknowledge and agree that the Independent Director’s relationship with the Company is
that of an independent contractor and nothing in this Agreement is intended to or should be construed to create a relationship
other than that of independent contractor. Nothing in this Agreement shall be construed as a contract of employment/engagement
between the Independent Director and the Company or as a commitment on the part of the Company to retain the Independent Director
in any capacity, for any period of time or under any specific terms or conditions, or to continue the Independent Director’s
service to the Company beyond any period.

 

    	8

    	 

    
 

26.ARBITRATION.
Any dispute, controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be settled by arbitration,
before one arbitrator in accordance with the rules of the American Arbitration Association then in effect and judgment upon the
award rendered by the arbitrator may be entered in any court having jurisdiction. The arbitrator will be selected, by the parties,
from a panel of attorney arbitrators. The parties agree that any arbitration shall be held in New York, New York. The language
of the arbitration shall be in English. The arbitrator will have no authority to make any relief, finding or award that does not
conform to the terms and conditions of this Agreement. Each party shall bear its own attorneys’ or expert fees and any and
all other party specific costs. Either party, before or during any arbitration, may apply to a court having jurisdiction for a
restraining order or injunction where such relief is necessary to protect its interests. Prior to initiation of arbitration, the
aggrieved party will give the other party written notice, in accordance with this Agreement, describing the claim as to which it
intends to initiate arbitration.

 

27.ENTIRE
AGREEMENT. This Agreement constitutes the entire agreement between the Company and the Independent Director with respect to the
subject matter hereof, and supersedes all prior understandings and agreements with respect to such subject matter.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Independent Director Indemnification Agreement as of the day and year first above written.

 

 

	 	 
	AGREED	AGREED
	 	 
	China HGS Real Estate Inc.	Independent Director
	 	 
	 	 
	 	 
	/s/Xiaojun Zhu_____________________	/s/John Chen_______________________
	Name:  Xiaojun Zhu	Name: John Chen
	Title:   Chairman and CEO	 
	 	 

 

    	9

    	 

    

 

SCHEDULE A

 

IPOSITION:

 

INDEPENDENT DIRECTOR.

 

II.COMPENSATION:

 

FEES. For all services
rendered by the Independent Director pursuant to this Agreement, both during and outside of normal working hours, including but
not limited to, attending all required meetings of the Board or applicable committees thereof, executive sessions of the independent
directors, reviewing filing reports and other corporate documents as requested by the Company, providing comments and opinions
as to business matters as requested by the Company, the Company agrees to pay to the Independent Director a fee in cash of Thirty-Six
Thousand Dollars ($36,000) per year during the Term (the “Base Fee”), or such greater (but not lesser) amount as shall
be approved from time to time by the Board. The Base Fee shall be paid in cash to the Independent Director on a quarterly basis
in equal installments 10 days prior to the last day of each calendar quarter.

 

STOCK. During the term
of the Independent Director’s service as a director or member of any committee of the Board, the Independent Director shall
be granted an option to purchase sixty thousand shares (60,000) shares of common stock of the Company on the date of execution
of this Agreement, with an exercise price equal to $2.37 per share. This Option shall become exercisable on a quarterly basis in
twelve (12) equal installments on the last day of each calendar quarter. The installments shall be cumulative (i.e., this option
may be exercised, as to any or all shares covered by an installment, at any time or times after an installment becomes exercisable
and until expiration or termination of this Option). Any such stock grant shall be in accordance with the Company’s securities
and incentive plan. The Independent Director’s rights in respect to any grant shall be determined solely by the Compensation
Committee of the Company and are subject to execution by Independent Director of certain Non-Statutory Stock Option Agreement as
established and requested by the Company pursuant to the Company’s securities and incentive plan.

 

EXPENSES. During the
term of the Independent Director’s service as a director of the Company, the Company shall promptly reimburse the Independent
Director for all expenses approved by the Company in advance and incurred by her in connection with attending (a) all meetings
of the Board or applicable committees thereof, (b) executive sessions of the independent directors, and (c) stockholder meetings,
as a director or a member of any committee of the Board, which are approved by the Company in advance. In addition, the Independent
Director shall rely on the Company to arrange for all hotel accommodations in connection with any such meetings the Independent
Director must attend. The amount of such expenses eligible for reimbursement by the Company during a calendar year shall not affect
such expenses eligible for reimbursement by the Company in any other calendar year, and the reimbursement of any such eligible
expenses shall be made promptly, usually within 10 business days, after the expense report and original receipts are submitted.

 

    	10

    	 

    
 

NO OTHER BENEFITS OR
COMPENSATION. The Independent Director acknowledges and agrees that she is not granted and is not entitled to any other benefits
or compensation from the Company for the services provided under this Agreement except expressly provided for in this Schedule
A or as determined from time to time by the Company in its sole discretion.

 

 

	 	 
	AGREED	AGREED
	 	 
	China HGS Real Estate Inc.	Independent Director
	 	 
	 	 
	 	 
	/s/Xiaojun Zhu______________________	/s/John Chen_________________
	Name:  Xiaojun Zhu	Name:  John Chen
	Title:   Chairman and CEO	 
	 	 

 

    	11

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