Document:

Form of Warrant Agreement.

 Exhibit 10.10 
 FORM OF WARRANT AGREEMENT 
 OPPORTUNITY ACQUISITION CORP. 
 and 
 AMERICAN STOCK TRANSFER & TRUST
COMPANY, as Warrant Agent 
  
  
 WARRANT AGREEMENT 
 Dated as of
                    , 2008 

 Table of Contents 
  

					
	 SECTION 1
	  	Appointment of Warrant Agent	  	1
			
	 SECTION 2
	  	Warrant Certificates	  	1
			
	 SECTION 3
	  	Execution of Warrant Certificates	  	2
			
	 SECTION 4
	  	Registration and Countersignature	  	2
			
	 SECTION 5
	  	Registration of Transfers and Exchanges; Transfer Restrictions	  	2
			
	 SECTION 6
	  	Terms of Warrants	  	5
			
	 SECTION 7
	  	Payment of Taxes	  	9
			
	 SECTION 8
	  	Mutilated or Missing Warrant Certificates	  	9
			
	 SECTION 9
	  	Reservation of Warrant Shares	  	10
			
	 SECTION 10
	  	Obtaining Stock Exchange Listings; State Registration	  	10
			
	 SECTION 11
	  	Adjustment of Number of Warrant Shares	  	11
			
	 SECTION 12
	  	Fractional Interests	  	21
			
	 SECTION 13
	  	Notices to Warrant Holders	  	21
			
	 SECTION 14
	  	Merger, Consolidation or Change of Name of Warrant Agent	  	23
			
	 SECTION 15
	  	Warrant Agent	  	23
			
	 SECTION 16
	  	Change of Warrant Agent	  	26
			
	 SECTION 17
	  	Notices to Company and Warrant Agent	  	27
			
	 SECTION 18
	  	Supplements and Amendments	  	27
			
	 SECTION 19
	  	Successors	  	28
			
	 SECTION 20
	  	Termination	  	28
			
	 SECTION 21
	  	Governing Law	  	28
			
	 SECTION 22
	  	Benefits of This Agreement	  	28
			
	 SECTION 23
	  	Counterparts	  	28
			
	 SECTION 24
	  	Force Majeure	  	28
			
	 Exhibit A
	  	Form of Warrant Certificate	  	
			
	 Exhibit B
	  	Legend for Private Warrants	  	

 WARRANT AGREEMENT dated as of
                    , 2008, (the “Agreement”) between Opportunity Acquisition Corp., a Delaware corporation (the
“Company”), and American Stock Transfer & Trust Company, a New York corporation, as Warrant Agent (the “Warrant Agent”). 
 WHEREAS, the Company intends to file a registration statement (the “Registration Statement”) with the Securities Exchange Commission for the initial public offering of units (the
“Initial Public Offering”), each unit (“Unit”) consisting of one share of the Company’s common stock, par value $0.001 per share (“Common Stock”), and one warrant initially entitling the
holders to purchase one share of Common Stock at an exercise price of $7.50 per share (each, a “Public Warrant”); 
 WHEREAS, the Company has agreed to issue (i) in a private placement to occur concurrently with the execution of those certain Initial Unit Subscription Agreements, dated January 11, 2008, by and between the Company and JMP
Group Inc. (the “Founding Stockholder”) and Opp. Funding LLC (collectively, the “Founding Holders”), 3,712,500 Units and 600,000 Units, respectively (the “Founder’s Units”), each unit
consisting of one share of Common Stock (the “Founder’s Shares”), and one warrant initially entitling the holders to purchase one share of Common Stock at an exercise price of $7.50 per share (the “Founder’s
Warrants”), to the Founding Holders, (ii) in a private placement that is to close immediately prior to the closing of the Initial Public Offering, such private placement to be made pursuant to that certain Warrant Purchase Agreement
dated January 18, 2008, by and between the Company and the Founding Stockholder, 4,000,000 warrants, each initially entitling the holders to purchase one share of Common Stock at an exercise price of $7.50 per share (the “Private
Placement Warrants” and together with the Founder’s Warrants, the “Private Warrants”), to the Founding Stockholder, and (iii) up to 17,250,000 Public Warrants (assuming the over-allotment is exercise in full) to
be offered to the public pursuant to the Registration Statement (the Public Warrants and the Private Warrants are hereinafter called, collectively, the “Warrants” and, individually, a “Warrant”). The shares of
Common Stock issuable on exercise of the Warrants are referred to as the “Warrant Shares”; and 
 WHEREAS, the
Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, transfer, exchange, and exercise of Warrants and other matters as provided herein. 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereto agree as follows: 
 SECTION 1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance with
the instructions set forth hereinafter in this Agreement, and the Warrant Agent hereby accepts such appointment. 
 SECTION 2.
Warrant Certificates. The certificates evidencing the Warrants (the “Warrant Certificates”) to be delivered pursuant to this Agreement shall be in registered form only and shall be substantially in the form set forth in
Exhibit A attached hereto, the warrant certificates for the Private Warrants shall bear the legend set forth in Exhibit B except as set forth herein. 

 SECTION 3. Execution of Warrant Certificates. Warrant Certificates shall be signed on
behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, or a Vice President and by its Treasurer or Secretary or an Assistant Treasurer or Assistant Secretary. Each such signature upon the Warrant Certificates
may be in the form of a facsimile signature of any present or such future officer and may be imprinted or otherwise reproduced on the Warrant Certificates and for that purpose the Company may adopt and use the facsimile signature of any person who
shall have been any such officer, notwithstanding the fact that at the time the Warrant Certificates shall be countersigned and delivered or disposed of he or she shall have ceased to hold such office. 
 In case any officer of the Company who shall have signed any of the Warrant Certificates shall cease to be such officer before the Warrant Certificates
so signed shall have been countersigned by the Warrant Agent, or disposed of by the Company, such Warrant Certificates nevertheless may be countersigned and delivered or disposed of as though such person had not ceased to be such officer of the
Company; and any Warrant Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Warrant Certificate, shall be a proper officer of the Company to sign such Warrant Certificate, although at
the date of the execution of this Warrant Agreement any such person was not such officer. 
 Warrant Certificates shall be dated the date of
countersignature by the Warrant Agent. 
 SECTION 4. Registration and Countersignature. Warrant Certificates shall be
countersigned by the Warrant Agent and shall not be valid for any purpose unless so countersigned. The Warrant Agent shall, upon written instructions of the Chairman of the Board, President, Chief Executive Officer, Vice President, Treasurer, or
Chief Financial Officer of the Company, countersign, issue, and deliver Warrants as provided in this Agreement. 
 The Company and the
Warrant Agent may deem and treat the registered holder(s) of the Warrant Certificates as the absolute owner(s) thereof (notwithstanding any notation of ownership or other writing thereon made by anyone), for all purposes, and neither the Company nor
the Warrant Agent shall be affected by any notice to the contrary. 
 SECTION 5. Registration of Transfers and Exchanges; Transfer
Restrictions. The Warrant Agent shall from time to time, subject to the limitations of this Section 5, register the transfer of any outstanding Warrant Certificates upon the records to be maintained by it for that purpose, upon surrender
thereof to the Warrant Agent at its principal corporate trust office, which is currently located at the address listed in Section 17 hereof, duly endorsed or accompanied (if so required by the Warrant Agent) by a written instrument or
instruments of transfer in a form satisfactory to the Warrant Agent, duly executed by the registered holder or holders thereof or by the duly appointed legal representative thereof or by an attorney duly authorized in writing. Upon any such
registration of transfer, a new Warrant Certificate or Warrant Certificates evidencing, in the aggregate, a like number of Warrants as the Warrant Certificates so surrendered, shall be issued to the transferee(s) and the surrendered Warrant
Certificates shall be cancelled by the Warrant Agent. Cancelled Warrant Certificates shall thereafter be disposed of by the Warrant Agent in its customary manner. Notwithstanding the foregoing, the undersigned may transfer any of the foregoing
securities to any Permitted Transferees, so long as, prior to such transfer, such Permitted Transferee executes and delivers to 

  

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the Company an agreement, in form and substance satisfactory to the Company. As used herein, “Permitted Transferee” of a holder of Units, Common
Stock, or Warrants means: (i) immediate family members of the holder and trusts established by the holder for estate planning purposes and transferees by will or the laws of descent, (ii) current and former officers, directors, members,
and employees of the holder, (iii) affiliates of the holder, (iv) charitable organizations, (v) the Company’s executive officers and directors, and (vi) transferees pursuant to a qualified domestic relations order.

 The Founder’s Warrants, without the prior written consent of the Company, shall not be, directly or indirectly, sold, offered,
contracted, or granted any option to be sold, pledged, transferred, hedged, or established or increased an open “put equivalent position” or liquidated or decreased a “call equivalent position” within the meaning of Rule 16a-1 of
the Securities Exchange Act of 1934, as amended, or otherwise disposed of or transferred, or registered under the Securities Act of 1933, as amended, until one year after the consummation of the Initial Business Combination, unless, subsequent to
the consummation of the Initial Business Combination, (A) the Closing Price (as such term is defined in the Warrant Agreement) of the Company’s Common Stock equals or exceeds the Subject Amount (“Subject Amount” means $14.25 or,
in the event that the exercise price of the Warrants is adjusted pursuant to the Warrant Agreement, such amount as shall be obtained by multiplying the Subject Amount in effect immediately prior to such adjustment by the same fraction used to adjust
the exercise price) per share for any 20 trading days within any 30-trading-day period, or (B) subsequent to the consummation of the Initial Business Combination, the Company consummates a merger, capital stock exchange, stock purchase, asset
acquisition, or other similar transaction which results in all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities, or other property. Notwithstanding the foregoing, the undersigned may
transfer any of the foregoing securities to any Permitted Transferees, so long as, prior to such transfer, such Permitted Transferee executes and delivers to the Company an agreement, in for and substance satisfactory to the Company. As used herein,
“Permitted Transferee” of a holder of Units, Common Stock, or Warrants means: (i) immediate family members of the holder and trusts established by the holder for estate planning purposes and transferees by will or the laws of descent,
(ii) current and former officers, directors, members, and employees of the holder, (iii) affiliates of the holder, (iv) charitable organizations, (v) the Company’s executive officers and directors, and (vi) transferees
pursuant to a qualified domestic relations order. 
 Each holder of Private Warrants and Warrant Shares issuable upon exercise of the Private
Warrants [will be] subject to other restrictions, and [will be] subject to additional agreements, pursuant to a letter agreement (each, an “Insider Letter”) to be entered into by such holder and the Company in connection with the
Initial Public Offering. 
 The holders of any Private Warrants or Warrant Shares issued upon exercise of any Private Warrants further agree
prior to any transfer of such securities, to give written notice to the Company expressing its desire to effect such transfer and describing briefly the proposed transfer. Upon receiving such notice, the Company shall present copies thereof to its
counsel and the holder agrees not to make any disposition of all or any portion of such securities unless and until: 
  

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 (a) there is then in effect a registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with such registration statement, in which case the legend set forth in the first paragraph of Exhibit B hereof, (collectively the “Private Placement Legend”) with respect to
such securities sold pursuant to such registration statement shall be removed; or 
 (b) if reasonably requested by the Company, (A) the
holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such Securities under the Securities Act of 1933, as amended, (B) the Company
shall have received customary representations and warranties regarding the transferee that are reasonably satisfactory to the Company signed by the proposed transferee, and (C) the Company shall have received an agreement by such transferee
containing such representations, warranties, and agreements as the Company may reasonably require to ensure that such transfer is being made in compliance with the Securities Act of 1933, as amended (the “Act”), and such further agreement
as shall be called for by the applicable Insider Letter. 
 Each Public Warrant shall initially be issued together with one share of Common
Stock as a Unit. The share of Common Stock and Public Warrant comprising a Unit shall not be separately transferable until five Business Days (or as soon as practicable thereafter) following the earlier to occur of the expiration of the
underwriters’ over-allotment option or the exercise of such option in full, subject to the Company having filed a correct report or Form 8-K with the Securities and Exchange Commission containing an audited balance sheet reflecting the
Company’s receipt of the net proceeds of the offering of the Units (including any net proceeds received from the underwriters’ exercise of the over-allotment option if any portion of the over-allotment option is exercised prior to the
filing of such Current Report on Form 8-K) and has issued a press release announcing when such separate trading will begin (the later of such dates, the “Detachment Date”). Prior to the Detachment Date, the Public Warrants may
be transferred or exchanged only together with the Unit in which such Public Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such Unit. Furthermore, prior to the Detachment Date, each
transfer of a Unit on the register relating to such Units shall operate also to transfer the Public Warrant included in such Unit. 
 Subject
to the terms of this Agreement, Warrant Certificates may be exchanged at the option of the holder(s) thereof, when surrendered to the Warrant Agent at its principal corporate trust office, which is currently located at the address listed in
Section 17 hereof, for another Warrant Certificate or other Warrant Certificates of like tenor and representing in the aggregate a like number of Warrants. Any holder desiring to exchange a Warrant Certificate shall deliver a written request to
the Warrant Agent, and shall surrender, duly endorsed or accompanied (if so required by the Warrant Agent) by a written instrument or instruments of transfer in form satisfactory to the Warrant Agent, duly executed by such holder or by the duly
appointed legal representative thereof or by a duly authorized attorney, the Warrant Certificate or Certificates to be so exchanged. Warrant Certificates surrendered for exchange shall be cancelled by the Warrant Agent. Such cancelled Warrant
Certificates shall then be disposed of by such Warrant Agent in its customary manner. 
  

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 The Warrant Agent is hereby authorized to countersign, in accordance with the provisions of this
Section 5 and of Section 4 hereof, the new Warrant Certificates required pursuant to the provisions of this Section 5. 
 SECTION 6. Terms of Warrants. 
 (a) Exercise Price and Exercise Period. 
 The exercise price per share that Warrant Shares shall be purchasable upon the exercise of Warrants (the “Exercise Price”) initially
shall be $7.50 per share, and each Warrant shall be initially exercisable to purchase one share of Common Stock. 
 Subject to the terms of
this Agreement (including without limitation Section 6(e) below), each Warrant holder shall have the right, which may be exercised commencing at the opening of business on the first day of the applicable Warrant Exercise Period set forth below
and until 5:00 p.m., New York time, on the last day of such Warrant Exercise Period, to receive from the Company the number of fully paid and nonassessable Warrant Shares which the holder may at the time be entitled to receive on exercise of such
Warrants and payment of the Exercise Price then in effect for such Warrant Shares or on a cashless basis pursuant to Section 6(d), if applicable. No adjustments as to dividends will be made upon exercise of the Warrants. 
 The “Warrant Exercise Period” shall (x) commence (subject to Section 6(e) below), (A) for all Warrants other than the
Founder’s Warrants on the later of (i) the date that is one year from the date of the final prospectus for the Initial Public Offering or (ii) the date on which the Company completes its Initial Business Combination (as such term is
defined in the Company’s certificate of incorporation, as the same may be amended or supplemented from time to time), and (B) for the Founder’s Warrants on the date that the Closing Price of the Common Stock equals or exceeds the
Subject Amount (“Subject Amount” means $14.25 or, in the event that the Exercise Price of the Warrants is adjusted pursuant to this Agreement, such amount shall be obtained by multiplying the Subject Amount in effect immediately
prior to such adjustments by the same fraction used to adjust the Exercise Price pursuant to Section 11(o) per share for any 20 trading days within a 30-trading day period beginning 90 days after the Initial Business Combination, and
(y) shall end on the earlier of: (i) the date that is five years from the date of the final prospectus for the Initial Public Offering or (ii) 5:00 p.m., New York Time, on the Business Day immediately preceding the date on which
such Warrants are redeemed pursuant to Section 6(b) below or 5:00 p.m., New York time, or the day such warrants expire pursuant to Section 6(f) below. 
 The “Closing Price” of the Common Stock on any date of determination means: 
  

	 	(i)	the last reported sale price for the regular trading session (without considering after hours or other trading outside regular trading session hours) of the Common Stock (regular
way) on the American Stock Exchange on that date, 

  

	 	(ii)	if the Common Stock is not listed for trading on the American Stock Exchange on that date, the last reported sale price as reported in the composite transactions for the principal
United States securities exchange on which the Common Stock is so listed, 

  

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	 	(iii)	if the Common Stock is not so reported, the last quoted bid price for the Common Stock in the over-the-counter market as reported by the OTC Bulletin Board, the National Quotation
Bureau, or similar organization, or 

  

	 	(iv)	if the Common Stock is not so quoted, the average of the mid-point of the last bid and ask prices for the Common Stock from at least three nationally recognized investment-banking
firms that the Company selects for this purpose. 

 Each Warrant not exercised or redeemed prior to 5:00 p.m., New York time,
on the last day of the Warrant Exercise Period shall become void and all rights thereunder and all rights in respect thereof under this Agreement shall cease as of such time. 
 (b) Redemption of Warrants. 
 The
Company may call the Warrants for redemption, in whole and not in part, at a price of $.01 per Warrant, upon not less than 30 days’ nor more than 60 days prior written notice of redemption to each Warrant holder, at any time after such Warrants
have become exercisable pursuant to Section 6(a), if, and only if, (i) the Closing Price of the Common Stock has equaled or exceeded the Subject Amount per share for any 20 trading days within a 30-trading day period ending on the third
Business Day prior to the date the notice of redemption is sent to Warrant holders and (ii) at all times from and including the date on which such notice of redemption is sent through and including the applicable redemption date, a registration
statement under the Act is in effect covering the Warrant Shares issuable upon exercise of the Warrants and a current prospectus relating to those Warrant Shares is available. The Company shall make copies of such prospectus available to holders of
the Warrants from time to time in such quantities as they may request. 
 Upon a call for redemption of Warrants by the Company, the Company
shall have the right to require all (and not less than all) holders of Warrants subject to redemption who exercise such Warrants after the Company’s call for redemption to do so on a cashless basis in accordance with the procedures set forth in
Section 6(d). The initial notice of such redemption shall specify if the Warrants are subject to cashless redemption. 
 Notwithstanding
the foregoing, no Private Warrants shall be redeemable at the option of the Company so long as they are held by the Founding Holders or their Permitted Transferees; provided that the fact that one or more Private Warrants are non-redeemable because
of the reason described above shall not affect the Company’s right to redeem the Public Warrants and all Private Warrants that are not held by the Founding Holders or their Permitted Transferees. 
 (c) Exercise Procedure. 
 A Warrant
may be exercised upon surrender to the Company at the principal stock transfer office of the Warrant Agent, which is currently located at the address listed in Section 17 

  

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hereof, of the certificate or certificates evidencing the Warrants to be exercised with the form of election to purchase on the reverse thereof duly filled
in and signed and such other documentation as the Warrant Agent may reasonably request, and upon payment to the Warrant Agent for the account of the Company of the Exercise Price (adjusted as herein provided if applicable) or on a cashless basis
pursuant to Section 6(d), if applicable, for the number of Warrant Shares in respect of which such Warrants are then exercised. Payment of the aggregate Exercise Price (unless on a cashless basis pursuant to Section 6(d)) shall be made by
certified or official bank check payable to the order of the Company. In no event will any Warrants be settled on a net cash basis. Anything herein to the contrary notwithstanding, in the event that any Warrants are issued in book-entry form through
the facilities of The Depository Trust Company or a similar depositary (in either case, the “Depositary”), then such Warrants may be exercised and the Warrant Certificate surrendered in accordance with the procedures of the
Depositary as in effect from time to time. 
 Subject to the provisions of Section 7 hereof, upon such surrender of Warrants and payment
of the Exercise Price or on a cashless basis pursuant to Section 6(d), if applicable, the Company shall issue and cause to be delivered with all reasonable dispatch to and in such name or names as the Warrant holder may designate, a certificate
or certificates for the number of full Warrant Shares issuable upon the exercise of such Warrants. Such certificate or certificates shall be deemed to have been issued and any person so designated to be named therein shall be deemed to have become a
holder of record of such Warrant Shares as of the date of the surrender of such Warrants and payment of the Exercise Price or on a cashless basis pursuant to Section 6(d), if applicable. 
 The Warrants shall be exercisable, at the election of the holders thereof, either in full or from time to time in part and, in the event that a
certificate evidencing Warrants is exercised in respect of fewer than all of the Warrant Shares issuable on such exercise at any time prior to the date of expiration of the Warrants, a new certificate evidencing the remaining Warrant or Warrants
will be issued, and the Warrant Agent is hereby irrevocably authorized to countersign and to deliver the required new Warrant Certificate or Certificates pursuant to the provisions of this Section 6 and of Section 4 hereof, and the
Company, whenever required by the Warrant Agent, shall supply the Warrant Agent with Warrant Certificates duly executed on behalf of the Company for such purpose. The Warrant Agent may assume that any Warrant presented for exercise is permitted to
be so exercised under applicable law and shall have no liability for acting in reliance on such assumption. 
 All Warrant Certificates
surrendered upon exercise of Warrants shall be canceled by the Warrant Agent. Such canceled Warrant Certificates shall then be disposed of by the Warrant Agent in its customary manner. The Warrant Agent shall account promptly to the Company with
respect to Warrants exercised and concurrently pay to the Company all monies received by the Warrant Agent for the purchase of the Warrant Shares through the exercise of such Warrants. 
 The Warrant Agent shall keep copies of this Agreement and any notices given or received hereunder available for inspection by the holders with reasonable
prior written notice during normal business hours at its office. The Company shall supply the Warrant Agent from time to time with such numbers of copies of this Agreement as the Warrant Agent may request. 
  

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 (d) Cashless Exercise. 
 (i) The Private Warrants may be exercised on a cashless basis by the Founding Holders and any Permitted Transferees, at the Founding Holders’ or
such Permitted Transferee’s election (the “Cashless Exercise Election”). 
 (ii) Upon a call for redemption of
Warrants on a cashless basis by the Company pursuant to Section 6(b) (the “Cashless Exercise Demand”), all holders of Warrants subject to redemption who exercise such Warrants shall do so on a cashless basis. 
 (iii) If the Founding Holders or any Permitted Transferee makes a Cashless Exercise Election with respect to any Private Warrants or if the Company
makes a Cashless Exercise Demand with respect to the Warrants subject to redemption and the holders thereof elect to exercise such Warrants after the Company’s call for redemption, then upon surrender of such Warrants in accordance with
Section 6(c), the Company shall issue and cause to be delivered with all reasonable dispatch to and in such name or names as the Founding Holders or such Permitted Transferee or such Warrant holders, as the case may be, may designate, a
certificate or certificates for the number of full Warrant Shares to be issued upon such cashless exercise, computed as follows: by dividing (x) the product of the total number of shares of Common Stock underlying the Warrants being exercised
multiplied by the difference between the Exercise Price of the Warrants and the Fair Market Value (defined below) of one share of Common Stock by (y) the Fair Market Value. The “Fair Market Value” shall mean the average reported
Closing Price of the Company’s Common Stock for the 10 trading days ending on the third trading day prior to (x) with respect to Private Warrants subject to a Cashless Exercise Election, the date on which the Warrant Certificates
evidencing the Warrants being exercised and the applicable Warrant exercise notice are received by the Warrant Agent and (y) with respect to Warrants subject to a Cashless Exercise Demand, the date on which the notice of redemption is sent to
the holders of Warrants. 
 (iv) If the Company makes a Cashless Exercise Demand, the notice of redemption shall contain the information
necessary to calculate the number of Warrant Shares to be received by Warrant holders upon exercise of the Warrants, including the Fair Market Value in such case. 
 (e) Registration Requirement. Notwithstanding anything else in this Section 6, no Warrants (including any Private Warrants) may be exercised unless at the time of exercise (i) a registration statement
covering the Warrant Shares to be issued upon exercise is effective under the Act and (ii) a current prospectus relating to the Warrant Shares available. The Company shall use its commercially reasonable efforts to have a registration statement
in effect covering Warrant Shares issuable upon exercise of the Warrants from the date the Warrants become exercisable and to maintain and make available a current prospectus relating to those Warrant Shares until the Warrants expire or are
redeemed. In the event that, at the end of the Warrant Exercise Period, a registration statement covering the Warrant Shares to be issued upon exercise has never become effective under the Act all the rights of holders hereunder shall terminate and
all of the Warrants shall expire. In no event shall the Warrants be settled on a net cash basis nor shall the Company be required to issue shares that have not been registered under the Act, upon the exercise of any Warrant. 
  

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 (f) Expiry Upon Liquidation of Trust Account. If the Company is dissolved because it fails to
effect an Initial Business Combination within the required time period, all of the rights of holders hereunder shall terminate and all of the Warrants shall expire unexercised. 
 (g) Adjustment of Founder’s Warrants. 
 (i) If the underwriters with respect to the Initial Public Offering do not exercise in full the over-allotment option granted to them by the Company or if such underwriters terminate such option before it is fully exercised, the number of
Founder’s Warrants necessary to ensure that the aggregate amount of outstanding Founder’s Warrants does not exceed 20% of the issued and outstanding Public Warrants upon consummation of the Initial Public Offering shall be immediately
forfeited to the Company by the Founding Stockholders (and, upon such forfeiture, such Warrants shall be deemed to no longer be outstanding), and the Company will deliver to the Warrant Agent the certificates evidencing the Warrants so forfeited and
the Warrant Agent shall cancel such certificates. The Company will not make any cash payment to the Founding Holders or any Permitted Stockholders in respect of any such adjustment. 
 (ii) If the number of Units offered to the public in connection with the Initial Public Offering is increased or decreased, the Founder’s Warrants
(including the Founder’s Warrants subject to forfeiture) will be adjusted in the same proportion as the increase or decrease of the Units offered to the public in order to ensure that the aggregate amount of outstanding Founder’s Warrants
does not fall below or exceed 20% of the issued and outstanding Public Warrants upon consummation of the Initial Public Offering (including any shares of Common Stock issued pursuant to the underwriter’s over-allotment option). The Company will
not make or receive any cash payment to or from the Founding Holders or any Permitted Transferees in respect of any such adjustment. 
 (iii) Any additional Warrants issued pursuant to (ii) above shall be deemed to be Founder’s Warrants hereunder and any such Warrants (A) shall be subject to the transfer restrictions and adjustment provisions set forth in
this Agreement with respect thereto, and (B) shall bear the legends set forth in this Agreement with respect thereto. 
 SECTION 7.
Payment of Taxes. The Company will pay all documentary stamp taxes attributable to the initial issuance of Warrant Shares upon the exercise of Warrants; provided, however, that the Company shall not be required to pay any tax or taxes
which may be payable in respect of any transfer involved in the issue of any Warrant Certificates or any certificates for Warrant Shares in a name other than that of the registered holder of a Warrant Certificate surrendered upon the exercise of a
Warrant, and the Company shall not be required to issue or deliver such Warrant Certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid. 
 SECTION 8. Mutilated or Missing Warrant Certificates. In case any
of the Warrant Certificates shall be mutilated, lost, stolen, or destroyed, the Company shall issue and the Warrant Agent shall countersign, in exchange and substitution for and upon cancellation of the mutilated Warrant Certificate, or in lieu of
and substitution for the Warrant Certificate lost, 

  

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stolen, or destroyed, a new Warrant Certificate of like tenor and representing an equivalent number of Warrants, but only upon receipt of evidence
satisfactory to the Company and the Warrant Agent of such loss, theft or destruction of such Warrant Certificate and such indemnity, as the Company and the Warrant Agent may deem satisfactory. Applicants for such new Warrant Certificates must pay
such reasonable charges as the Company may prescribe. 
 SECTION 9. Reservation of Warrant Shares. The Company will at all
times reserve and keep available, free from preemptive rights, out of the aggregate of its authorized but unissued Common Stock, for the purpose of enabling it to satisfy any obligation to issue Warrant Shares upon exercise of Warrants, the maximum
number of shares of Common Stock which may then be deliverable upon the exercise of all outstanding Warrants. The Warrant Agent shall have no duty to verify availability of such shares set aside by the Company. 
 The Company or, if appointed, the transfer agent for the Common Stock (the “Transfer Agent”) and every subsequent transfer agent for any
shares of the Common Stock issuable upon the exercise of any of the Warrants will be irrevocably authorized and directed at all times to reserve such number of authorized shares as shall be required for such purpose. The Company will keep a copy of
this Agreement on file with the Transfer Agent and with every subsequent transfer agent for any shares of the Common Stock issuable upon the exercise of the Warrants. The Warrant Agent is hereby irrevocably authorized to requisition from time to
time from such Transfer Agent the stock certificates required to honor outstanding Warrants upon exercise thereof in accordance with the terms of this Agreement. The Company will supply such Transfer Agent with duly executed certificates for such
purposes. The Company will furnish such Transfer Agent a copy of all notices of adjustments and certificates related thereto, transmitted to each holder pursuant to Section 13 hereof. 
 Before taking any action which would cause an adjustment pursuant to Section 11 hereof to reduce the Exercise Price below the then par value (if
any) of the Warrant Shares, the Company will take any commercially reasonable action which may, in the opinion of its counsel (which may be counsel employed by the Company), be necessary in order that the Company may validly and legally issue fully
paid and nonassessable Warrant Shares at the Exercise Price as so adjusted. 
 The Company covenants that all Warrant Shares which may be
issued upon exercise of Warrants will, upon payment of the Exercise Price therefor or on a cashless basis pursuant to Section 6(d), if applicable, when issued, be duly authorized, fully paid, nonassessable, free of preemptive rights and free
from all taxes, liens, charges and security interests with respect to the issue thereof. 
 SECTION 10. Obtaining Stock Exchange
Listings; State Registration. The Company will from time to time use commercially reasonable efforts so that the Warrant Shares, immediately upon their issuance upon the exercise of Warrants, will be listed on the principal securities exchanges
and markets, if any, on which other shares of Common Stock are then listed. To the extent that the Common Stock is not listed on a national securities exchange or there is no exemption from state “blue sky” securities laws for the issuance
of the Warrant Shares, the Company will use commercially reasonable efforts so that the Warrant Shares are registered in all states in which the holders of the Warrants reside. 
  

 10 

 SECTION 11. Adjustment of Number of Warrant Shares. 
 The number of Warrant Shares issuable upon the exercise of each Warrant is subject to adjustment from time to time upon the occurrence of the events
enumerated in this Section 11. For purposes of this Section 11, “Common Stock” means shares now or hereafter authorized of any class of common stock of the Company and any other stock of the Company, however designated,
that has the right (subject to any prior rights of any class or series of preferred stock) to participate in any distribution of the assets or earnings of the Company without limit as to per share amount. 
 (a) Adjustment for Change in Capital Stock. 
 If the Company: 
 (1) pays a dividend or makes a distribution on its Common Stock in either case in shares of its Common Stock;

 (2) subdivides its outstanding shares of Common Stock into a greater number of shares; 
 (3) combines its outstanding shares of Common Stock into a smaller number of shares; 
 (4) makes a distribution on its Common Stock in shares of its capital stock other than Common Stock; or 
 (5) issues by reclassification of its Common Stock any shares of its capital stock, 
 then the number of shares of Common Stock issuable upon exercise of each Warrant immediately prior to such action shall be adjusted so that the holder of any Warrant thereafter exercised shall receive the aggregate
number and kind of shares of capital stock of the Company which he would have received immediately following such action if such Warrant had been exercised immediately prior to such action. 
 The adjustment shall become effective immediately after the record date in the case of a dividend or distribution and immediately after the effective
date in the case of a subdivision, combination or reclassification. 
 Such adjustment shall be made successively whenever any event listed
above shall occur. 
 (b) Adjustment for Rights Issue. 
 If the Company distributes any rights, options, or warrants to all holders of its Common Stock entitling them to purchase shares of Common Stock at a price per share less than the Closing Price per share of Common
Stock on the trading day immediately preceding the ex-dividend date for such distribution of rights, options, or warrants, the number of shares of 

  

 11 

 
Common Stock issuable upon exercise of each Warrant shall be adjusted in accordance with the formula: 
  

					
	N’ = N x  	  	O + A	  	
	  	O + (A x P/M)	  	

 where: 
 N’ = the adjusted number of shares of Common Stock issuable upon exercise of each Warrant. 
 N = the
current number of shares of Common Stock issuable upon exercise of each Warrant. 
 O = the number of shares of Common Stock outstanding on
the record date for such distribution. 
 A = the number of additional shares of Common Stock issuable pursuant to such rights, options, or
warrants. 
 P = the purchase price per share of the additional shares pursuant to such rights, options, or warrants. 
 M = the Closing Price per share of Common Stock on the record date. 
 The adjustment shall be made successively whenever any such rights, options, or warrants are issued and shall become effective immediately after the record date for the determination of stockholders entitled to
receive the rights, options, or warrants. If at the end of the period during which such rights, options, or warrants are exercisable, not all rights, options, or warrants shall have been exercised, the number of shares of Common Stock issuable upon
exercise of each Warrant shall be immediately readjusted to what it would have been if “A” in the above formula had been the number of shares actually issued. 
 (c) Adjustment for Other Distributions. 
 If the Company distributes to all holders of its Common
Stock any of its assets (including cash) or debt securities or any rights, options, or warrants to purchase debt securities, assets, or other securities of the Company the number of shares of Common Stock issuable upon exercise of each Warrant shall
be adjusted in accordance with the formula: 
  

 12 

 where: 
  

					
	N’ = N x  	  	M	  	
	  	M - F	  	

  

					
	N’	 	=	  	the adjusted number of shares of Common Stock issuable upon exercise of each Warrant.
			
	N	 	=	  	the current number of shares of Common Stock issuable upon exercise of each Warrant.
			
	M	 	=	  	the Closing Price per share of Common Stock on the trading day immediately preceding the ex-dividend date for such distribution.
			
	F	 	=	  	the fair market value on the ex-dividend date for such distribution of the assets, securities, rights, options or warrants distributable to one share of Common Stock after taking into
account, in the case of any rights, options, or warrants, the consideration required to be paid upon exercise thereof. The Board of Directors shall reasonably determine the fair market value in good faith as described in a Board of Directors
resolution which shall be filed with the Warrant Agent.

 The adjustment shall be made successively whenever any such distribution is made and shall become
effective immediately after the record date for the determination of stockholders entitled to receive such distribution. 
 This subsection
(c) does not apply to regular quarterly cash dividends on the Common Stock in an amount per share not to exceed the Permitted Dividend (“Permitted Dividend” means $0.125 or, in the event that the Exercise Price is adjusted
pursuant to this Warrant Agreement, such amount shall be obtained by multiplying the Permitted Dividend in effect immediately prior to such adjustment by the same fraction used to adjust the Exercise Price pursuant to Section 11(o) below) of rights,
options, or warrants referred to in subsection (b) of this Section 11. If any adjustment is made pursuant to this subsection (c) as a result of the issuance of rights, options, or warrants and at the end of the period during which any such
rights, options, or warrants are exercisable, not all such rights, options, or warrants shall have been exercised, the Warrant shall be immediately readjusted as if “F” in the above formula was the aggregate fair market value on the
dividend date of such rights, options, or warrants as shall have been exercised at the end of such period divided by the number of shares of Common Stock outstanding on the ex-dividend date for such distribution. Notwithstanding anything to the
contrary contained in this subsection (c), if “M-F” in the above formula is less than $1.00, the Company may elect to, and if “M-F” or is a negative number, the Company shall, in lieu of the adjustment otherwise required by this
subsection (c), distribute to the holders of the Warrants, upon exercise thereof, the evidences of indebtedness, assets, rights, options, or warrants (or the proceeds thereof) which would have been distributed to such holders had such Warrants been
exercised immediately prior to the record date for such distribution. 
  

 13 

 (d) Adjustment for Common Stock Issue. 
 If the Company issues shares of Common Stock for a consideration per share less than the Closing Price per share of Common Stock on the date the Company
fixes the offering price of such additional shares, the number of shares of Common Stock issuable upon exercise of each Warrant shall be adjusted in accordance with the formula: 
  

					
	N’ = N x  	  	A	  	
	  	O + P/M	  	

 where: 
  

					
	N’	  	=	  	the adjusted number of shares of Common Stock issuable upon exercise of each Warrant.
			
	 N
	  	=	  	the current number of shares of Common Stock issuable upon exercise of each Warrant.
			
	 O
	  	=	  	the number of shares of Common Stock outstanding immediately prior to the issuance of such additional shares.
			
	 P
	  	=	  	the aggregate consideration received for the issuance of such additional shares.
			
	 M
	  	=	  	the Closing Price per share of Common Stock on the date of issuance of such additional shares.
			
	 A
	  	=	  	the number of shares of Common Stock outstanding immediately after the issuance of such additional shares.

 The adjustment shall be made successively whenever any such issuance is made, and shall become
effective immediately after such issuance. 
 This subsection (d) does not apply to: 
 (1) any of the transactions described in subsections (b) and (c) of this Section 11, 
 (2) the exercise of Warrants, or the conversion or exchange of other securities convertible or exchangeable for Common Stock, or the issuance of Common
Stock upon the exercise of rights or warrants issued to the holders of Common Stock, 
 (3) Common Stock (and options exercisable therefor)
issued to the Company’s employees, officers, directors, consultants, or advisors (whether or not still in such capacity on the date of exercise) under bona fide employee benefit plans or stock option plans 

  

 14 

 
adopted by the Board of Directors of the Company and approved by the holders of Common Stock when required by law, if such Common Stock would otherwise be
covered by this subsection (d), 
 (4) Common Stock issued in a bona fide underwritten public offering for cash, or 
 (5) Common Stock issued to effect the Initial Business Combination and Common Stock issued to effect any other bona fide merger, stock purchase, asset
acquisition, or similar business combination with non-affiliates of the Company. 
 (e) Adjustment for Convertible Securities Issue.

 If the Company issues any securities convertible into or exchangeable for Common Stock (other than securities issued in transactions
described in subsections (b) and (c) of this Section 11) for a consideration per share of Common Stock initially deliverable upon conversion or exchange of such securities less than the Closing Price per share on the date of issuance
of such securities, the number of shares of Common Stock issuable upon exercise of each Warrant shall be adjusted in accordance with this formula: 
  

					
	N’ = N x  	  	O + D	  	
	  	O + P/M	  	

 where: 
  

					
	 N’
	  	=	  	the adjusted number of shares of Common Stock issuable upon exercise of each Warrant.
			
	 N
	  	=	  	the current number of shares of Common Stock issuable upon exercise of each Warrant.
			
	 O
	  	=	  	the number of shares outstanding immediately prior to the issuance of such securities.
			
	 P
	  	=	  	the aggregate consideration received for the issuance of such securities.
			
	 M
	  	=	  	the Closing Price per share of Common Stock on the date of issuance of such securities.
			
	 D
	  	=	  	the maximum number of shares deliverable upon conversion or in exchange for such securities at the initial conversion or exchange rate.

  
  

 15 

 The adjustment shall be made successively whenever any such issuance is made, and shall become effective
immediately after such issuance. 
 If all of the Common Stock deliverable upon conversion or exchange of such securities have not been
issued when such securities are no longer outstanding, then the number of shares of Common Stock issuable upon exercise of each Warrant shall promptly be readjusted to what it would have been had the adjustment upon the issuance of such securities
been made on the basis of the actual number of shares of Common Stock issued upon conversion or exchange of such securities. 
 This
subsection (e) does not apply to: 
 (1) convertible securities issued in a bona fide underwritten public offering for cash or a bona
fide underwritten offering pursuant to Rule 144A under the act for cash; or 
 (2) Common Stock issued to effect the Initial Business
Combination and Common Stock issued to effect any other bona fide merger, stock purchase, asset acquisition, or similar business combination with non-affiliates of the Company. 
 (f) Adjustment for Tender or Exchange Offer. If the Company or any of its subsidiaries makes a payment in respect of a tender offer or exchange
offer for the Common Stock, if the cash and value of any other consideration included in the payment per share of the Common Stock exceeds the Closing Price of the Common Stock on the trading day next succeeding the last date on which tenders or
exchanges may be made pursuant to such tender or exchange offer, the number of shares of Common Stock issuable upon exercise of each Warrant will be increased based on the following formula: 
  

					
	N’ = N o  	  	AC + (SP’ x OS’)	  	
	  	OSo x SP’	  	

 where, 
  

					
	 N’
	  	=	  	the adjusted number of shares of Common Stock issuable upon exercise of each Warrant;
			
	 No
	  	=	  	the current number of shares of Common Stock issuable upon exercise of each warrant;
			
	 AC
	  	=	  	the aggregate value of all cash and any other consideration (as determined by the Board of Directors of the Company as described in a Board of Directors resolution which shall be filed with
the Warrant Agent) paid or payable for shares purchased in such tender or exchange offer;

  

 16 

					
	 OSo
	  	=	  	the number of shares of Common Stock outstanding immediately prior to the date such tender or exchange offer expires;
			
	 OS’
	  	=	  	the number of shares of Common Stock outstanding immediately after the date such tender or exchange offer expires; and
			
	 SP’
	  	=	  	the Closing Price of the Common Stock on the trading day next succeeding the date such tender or exchange offer expires.

 The adjustment shall be made successively and shall become effective immediately following the
date such tender or exchange offer expires. 
 (g) Consideration Received. 
 For purposes of any computation respecting consideration received pursuant to subsections (d), (e), and (f) of this Section 11, the following
shall apply: 
 (1) in the case of the issuance of shares of Common Stock for cash, the consideration shall be the amount of such cash,
provided that in no case shall any deduction be made for any commissions, discounts or other expenses incurred by the Company for any underwriting or other sale or disposition of the issue or otherwise in connection therewith; 
 (2) in the case of the issuance of shares of Common Stock for a consideration in whole or in part other than cash, the consideration other than cash
shall be deemed to be the fair market value thereof as reasonably determined by the Board of Directors of the Company (irrespective of the accounting treatment thereof) and described in a Board resolution which shall be filed with the Warrant Agent;
and 
 (3) in the case of the issuance of securities convertible into or exchangeable for shares, the aggregate consideration received
therefor shall be deemed to be the consideration received by the Company for the issuance of such securities plus the additional minimum consideration, if any, to be received by the Company upon the conversion or exchange thereof for the maximum
number of shares used to calculate the adjustment (the consideration in each case to be determined in the same manner as provided in clauses (1) and (2) of this subsection). 
 (h) Defined Terms; When De Minimis Adjustment May Be Deferred. 
 As used in this Agreement: 
 (1) “ex-dividend date” means the first date on which the shares of
Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive the issuance or distribution in question; 
 (2) “trading day” means, with respect to the Common Stock or any other security, a day during which (i) trading in the Common Stock or such other security generally 

  

 17 

 
occurs, (ii) there is no market disruption event (as defined below), and (iii) a Closing Price for the Common Stock is available for such day;
provided that if the Common Stock or such other security is not admitted for trading or quotation on or by any exchange, bureau or other organization, “trading day” will mean any Business Day; 
 (3) “market disruption event” means, with respect to the Common Stock, the occurrence or existence of more than one-half hour period in the
aggregate on any trading day for the Common Stock of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options, contract, or
future contracts relating to the Common Stock, and such suspension or limitation occurs or exists at any time before 1:00 p.m. (New York time) on such day; and 
 (4) “Business Day” means, any day which is not a Saturday, Sunday, or any other day on which banks in the City of New York, New York, are authorized or required by law to close. 
 No adjustment in the number of shares of Common Stock issuable upon exercise of each Warrant need be made unless the adjustment would require an increase
or decrease of at least 1% in such number. Any adjustments that are not made shall be carried forward and taken into account in any subsequent adjustment. 
 All calculations under this Section 11 shall be made to the nearest cent or to the nearest 1/100th of a share, as the case may be. 
 (i) When No Adjustment Required. 
 No adjustment need be made for a transaction referred to in
subsections (b), (c), (d), (e), or (f) of this Section 11 if Warrant holders are to participate, without requiring the Warrants to be exercised, in the transaction on a basis and with notice that the Board of Directors of the Company
reasonably determines to be fair and appropriate in light of the basis and notice on which holders of Common Stock participate in the transaction. 
 No adjustment need be made for a change in the par value or no par value of the Common Stock. 
 To the extent the Warrants become
convertible into cash, no adjustment need be made thereafter as to the amount of cash into which such Warrants are exercisable. Interest will not accrue on the cash. 
 (j) Notice of Adjustment. 
 Whenever the number of shares of Common Stock issuable upon exercise of
each Warrant or the Exercise Price is adjusted, the Company shall provide the notices required by Section 13 hereof. 
  

 18 

 (k) Notice of Certain Transactions. 
 If: 
 (1) the Company takes any action that
would require an adjustment in the Exercise Price pursuant to subsections (a), (b), (c), (d), (e), or (f) of this Section 11 and if the Company does not arrange for Warrant holders to participate pursuant to subsection (i) of this
Section 11; 
 (2) the Company takes any action that would require a supplemental Warrant Agreement pursuant to subsection (l) of
this Section 11; or 
 (3) there is a liquidation or dissolution of the Company, 
 the Company shall mail to Warrant holders a notice stating the proposed record date for a dividend, distribution, or issuance or the proposed effective date of a
subdivision, combination, reclassification, consolidation, merger, transfer, lease, liquidation, or dissolution. The Company shall mail the notice at least 15 days before such date. Failure to mail the notice or any defect in it shall not affect the
validity of the transaction. 
 (l) Reorganization of Company. 
 If the Company consolidates or merges with or into, or sells, transfers, or leases all or substantially all its assets to, any person, upon consummation
of such transaction the Warrants shall automatically become exercisable for the kind and amount of securities, cash, or other assets which the holder of a Warrant would have owned immediately after the consolidation, merger, transfer, or lease if
such holder had exercised the Warrant immediately before the effective date of the transaction; provided that (i) if the holders of Common Stock were entitled to exercise a right of election as to the kind or amount of securities, cash, or
other assets receivable upon such consolidation or merger, then the kind and amount of securities, cash, or other assets for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per
share by the holders of Common Stock in such consolidation or merger that affirmatively make such election or (ii) if a tender or exchange offer shall have been made to and accepted by the holders of Common Stock under circumstances in which,
upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of which
such maker is a part, and together with any affiliate or associate (within the meaning of Rule 12b-2 under the Exchange Act) of such maker and any members of any such group of which any such affiliate or associate is a part, own beneficially (within
the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the outstanding shares of Common Stock, the holder of a Warrant shall be entitled to receive the highest amount of cash, securities or other property to which such holder would
actually have been entitled as a shareholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Common Stock held by such holder had been purchased pursuant
to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 11. Concurrently with the 

  

 19 

 
consummation of any such transaction, the corporation or other entity formed by or surviving any such consolidation or merger if other than the Company, or
the person to which such sale, transfer, or lease shall have been made, shall enter into a supplemental Warrant Agreement so providing and further providing for adjustments which shall be as nearly equivalent as may be practical to the adjustments
provided for in this Section; provided that the predecessor Company shall not be released from its obligations under this Agreement. The successor Company shall mail to Warrant holders a notice describing the supplemental Warrant Agreement.

 If the issuer of securities deliverable upon exercise of Warrants under the supplemental Warrant Agreement is an affiliate of the formed,
surviving, transferee or lessee corporation, that issuer shall join in the supplemental Warrant Agreement. 
 If this subsection
(l) applies, subsections (a), (b), (c), (d), (e), and (f) of this Section 11 do not apply. 
 (m) Warrant Agent’s
Disclaimer. 
 The Warrant Agent has no duty to determine when an adjustment under this Section 11 should be made, how it should be
made or what it should be. The Warrant Agent has no duty to determine whether any provisions of a supplemental Warrant Agreement under subsection (l) of this Section 11 are correct. The Warrant Agent makes no representation as to the
validity or value of any securities or assets issued upon exercise of Warrants. The Warrant Agent shall not be responsible for the Company’s failure to comply with this Section. 
 (n) When Issuance May Be Deferred. 
 In any case in which this Section 11 shall require that an adjustment in the number of shares of Common Stock issuable upon exercise of each Warrant be made effective as of a record date for a specified event, the Company may elect to
defer until the occurrence of such event issuing to the holder of any Warrant exercised after such record date the Warrant Shares and other capital stock of the Company, if any, issuable upon such exercise over and above the Warrant Shares and other
capital stock of the Company, if any, issuable upon such exercise on the basis of the number of shares of Common Stock issuable upon exercise of each Warrant; provided, however, that the Company shall deliver to such holder a due bill or other
appropriate instrument evidencing such holder’s right to receive such additional Warrant Shares and other capital stock upon the occurrence of the event requiring such adjustment. 
 (o) Adjustment in Exercise Price. 
 Upon each event that provides for an adjustment of the number of shares of Common Stock issuable upon exercise of each Warrant pursuant to this Section 11, each Warrant outstanding prior to the making of the adjustment shall thereafter
have an adjusted Exercise Price (calculated to the nearest ten millionth) obtained from the following formula: 
  

					
	E’ = E x  	  	N	  	
	  	N’	  	

  

 20 

 where: 
  

	 	E’ =	the adjusted Exercise Price. 

  

	 	E =	the Exercise Price prior to adjustment. 

  

	 	N’ =	the number of Warrant Shares issuable upon exercise of a Warrant immediately after giving effect to the aforesaid adjustment in the number of such shares. 

 

	 	N =	the number of Warrant Shares issuable upon exercise of a Warrant immediately before giving effect to the aforesaid adjustment in the number of such shares. 

Following any adjustment to the Exercise Price pursuant to this Section 11, the amount payable, when adjusted and together with any consideration
allocated to the issuance of the Warrants, shall never be less than the par value per Warrant Share at the time of such adjustment. Such adjustment, shall be made successively whenever any event listed above shall occur. 
 (p) Form of Warrants. 
 Irrespective
of any adjustments in the number or kind of shares issuable upon the exercise of the Warrants or the Exercise Price, Warrants theretofore or thereafter issued may continue to express the same number and kind of shares and Exercise Price as are
stated in the Warrants initially issuable pursuant to this Agreement. 
 The provisions of this Section 11 shall not apply until
issuance of the Public Warrants. 
 SECTION 12. Fractional Interests. The Company shall not be required to issue fractional
Warrant Shares on the exercise of Warrants. If more than one Warrant shall be presented for exercise in full at the same time by the same holder, the number of full Warrant Shares which shall be issuable upon the exercise thereof shall be computed
on the basis of the aggregate number of Warrant Shares issuable on exercise of all the Warrants so presented. If any fraction of a Warrant Share would, except for the provisions of this Section 12, be issuable on the exercise of any Warrants
(or specified portion thereof), the Company shall, upon such exercise, round up to the nearest whole number of number of Warrant Shares to be issued to the Warrant holder. 
 SECTION 13. Notices to Warrant Holders. Upon any adjustment of the Exercise Price pursuant to Section 11, the Company shall promptly
thereafter, and in any event within five days, (i) cause to be filed with the Warrant Agent a certificate executed by the Chief Financial Officer or principal financial officer of the Company setting forth the number of Warrant Shares issuable
upon exercise of each Warrant on the Exercise Price after such adjustment and setting forth in reasonable detail the method of calculation and the facts upon which such calculations are based, 

  

 21 

 
and (ii) cause to be given to each of the registered holders of the Warrant Certificates at his address appearing on the Warrant register written notice
of such adjustments by first-class mail, postage prepaid. Where appropriate, such notice may be given in advance and included as a part of the notice required to be mailed under the other provisions of this Section 13. The Warrant Agent shall
be fully protected in relying on any such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of such adjustment unless and until it shall have received such certificate. 
 In case: 
 (a) the Company shall authorize
the issuance to all holders of shares of Common Stock of rights, options or warrants to subscribe for or purchase shares of Common Stock or of any other subscription rights or warrants; or 
 (b) the Company shall authorize the distribution to all holders of shares of Common Stock of evidences of its indebtedness or assets (other than regular
cash dividends in an amount that would not result in an adjustment to the number of Warrant Shares issuable upon exercise of a Warrant or dividends in an amount that payable in shares of Common Stock or distributions referred to in subsection
(b) of Section 11 hereof); or 
 (c) of any consolidation or merger to which the Company is a party and for which approval of any
shareholders of the Company is required, or of the conveyance, lease, or transfer of all or substantially all of the properties and assets of the Company, or of any reclassification or change of Common Stock issuable upon exercise of the Warrants
(other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or a tender offer or exchange offer for shares of Common Stock; or 
 (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 
 (e) the Company proposes to take any action not specified above which would require an adjustment of the Exercise Price pursuant to Section 11
hereof or that would result in a change in the type of securities or other property received upon exercise of Warrants; 
 then the Company shall cause to be
filed with the Warrant Agent and shall cause to be given to each of the registered holders of the Warrant Certificates at his address appearing on the Warrant register, at least 10 calendar days prior to the applicable record date hereinafter
specified, or as promptly as practicable under the circumstances in the case of events for which there is no record date, by first-class mail, postage prepaid, a written notice stating (i) the date as of which the holders of record of shares of
Common Stock will be entitled to receive any such rights, options, warrants, or distribution are to be determined, or (ii) the initial expiration date set forth in any tender offer or exchange offer for shares of Common Stock, or (iii) the
date on which any such consolidation, merger, conveyance, transfer, lease, dissolution, liquidation, or winding up is expected to become effective or consummated, and the date as of which it is expected that holders of record of shares of Common
Stock shall be entitled to exchange such shares for securities or other property, if any, deliverable upon such reclassification, consolidation, merger, 

  

 22 

 
conveyance, transfer, dissolution, liquidation, or winding up. The failure to give the notice required by this Section 13 or any defect therein shall
not affect the legality or validity of any distribution, right, option, warrant, consolidation, merger, conveyance, transfer, lease, dissolution, liquidation, or winding up, or the vote upon any action. 
 Nothing contained in this Agreement or in any of the Warrant Certificates shall be construed as conferring upon the holders thereof the right to vote or
to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of Directors of the Company or any other matter, or any rights whatsoever as shareholders of the Company. 
 SECTION 14. Merger, Consolidation, or Change of Name of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with
which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party, or any corporation succeeding to all or substantially all the corporate trust or agency business of the Warrant
Agent, shall be the successor to the Warrant Agent hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor
warrant agent under the provisions of Section 16. In case at the time such successor to the Warrant Agent shall succeed to the agency created by this Agreement, and in case at that time any of the Warrant Certificates shall have been
countersigned but not delivered, any such successor to the Warrant Agent may adopt the countersignature of the original Warrant Agent; and in case at that time any of the Warrant Certificates shall not have been countersigned, any successor to the
Warrant Agent may countersign such Warrant Certificates either in the name of the predecessor Warrant Agent or in the name of the successor to the Warrant Agent; and in all such cases such Warrant Certificates shall have the full force and effect
provided in the Warrant Certificates and in this Agreement. 
 In case at any time the name of the Warrant Agent shall be changed and at such
time any of the Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent whose name has been changed may adopt the countersignature under its prior name, and in case at that time any of the Warrant Certificates shall
not have been countersigned, the Warrant Agent may countersign such Warrant Certificates either in its prior name or in its changed name, and in all such cases such Warrant Certificates shall have the full force and effect provided in the Warrant
Certificates and in this Agreement. 
 SECTION 15. Warrant Agent. The Warrant Agent undertakes the duties and obligations
imposed by this Agreement (and no implied duties or obligations shall be read into this Agreement against the Warrant Agent) upon the following terms and conditions, by all of which the Company and the holders of Warrants, by their acceptance
thereof, shall be bound: 
 (a) The statements contained herein and in the Warrant Certificates shall be taken as statements of the Company
and the Warrant Agent assumes no responsibility for the correctness of any of the same except such as describe the Warrant Agent or action taken or to be taken by it. The Warrant Agent assumes no responsibility with respect to the distribution of
the Warrant Certificates except as herein otherwise provided. 
  

 23 

 (b) The Warrant Agent shall not be responsible for any failure of the Company to comply with any of the
covenants contained in this Agreement or in the Warrant Certificates to be complied with by the Company. 
 (c) The Warrant Agent may consult
at any time with counsel of its own selection (who may be counsel for the Company) and the Warrant Agent shall incur no liability or responsibility to the Company or to any holder of any Warrant Certificate in respect of any action taken, suffered,
or omitted by it hereunder in good faith and in accordance with the opinion or the advice of such counsel. The Warrant Agent may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or through agents or
attorneys and the Warrant Agent shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 
 (d) The Warrant Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Warrant Agent and conforming to the
requirements of this Agreement. The Warrant Agent shall incur no liability or responsibility to the Company or to any holder of any Warrant Certificate for any action taken in reliance on any Warrant Certificate, certificate of shares, notice,
resolution, waiver, consent, order, certificate, or other paper, document, or instrument (whether in its original or facsimile form) believed by it to be genuine and to have been signed, sent or presented by the proper party or parties. 

(e) The Company agrees to pay to the Warrant Agent such compensation for all services rendered by the Warrant Agent in the administration and
execution of this Agreement as the Company and the Warrant Agent shall agree in writing and to reimburse the Warrant Agent for all expenses, taxes and governmental charges and other charges of any kind and nature incurred by the Warrant Agent in the
execution of this Agreement (including reasonable fees and expenses of its outside counsel) and to indemnify the Warrant Agent (and any predecessor Warrant Agent) and save it harmless against any and all claims (whether asserted by the Company, a
holder or any other person), damages, losses, expenses (including taxes other than taxes based on the income of the Warrant Agent), liabilities, including judgments, costs, and reasonable outside counsel fees and expenses, for anything done or
omitted by the Warrant Agent in the execution of this Agreement except as a result of its negligence or willful misconduct. The provisions of this Section 15(e) shall survive the expiration of the Warrants and the termination of this Agreement.

 (f) The Warrant Agent shall be under no obligation to institute any action, suit or legal proceeding or to take any other action likely to
involve expense unless the Company or one or more registered holders of Warrant Certificates shall furnish the Warrant Agent with security and indemnity satisfactory to it for any costs and expenses which may be incurred, but this provision shall
not affect the power of the Warrant Agent to take such action as it may consider proper, whether with or without any such security or indemnity. All rights of action under this Agreement or under any of the Warrants may be enforced by the Warrant
Agent without the possession of any of the Warrant Certificates or the production thereof at any trial or other proceeding relative thereto, and any such action, suit or proceeding instituted by the Warrant Agent shall be brought in its name as
Warrant Agent and any recovery of judgment shall be for the ratable benefit of the registered holders of the Warrants, as their respective rights or interests may appear. 
  

 24 

 (g) The Warrant Agent, and any stockholder, director, officer, or employee of it, may buy, sell, or deal
in any of the Warrants or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it
were not Warrant Agent under this Agreement, subject to compliance with applicable laws. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity. 
 (h) The Warrant Agent shall act hereunder solely as agent for the Company, and its duties shall be determined solely by the provisions hereof. The
Warrant Agent shall not be liable for anything that it may do or refrain from doing in connection with this Agreement except for its own negligence or willful misconduct. Notwithstanding anything in this Agreement to the contrary, in no event shall
the Warrant Agent be liable for special, indirect, punitive, or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Warrant Agent has been advised of the likelihood of the loss or damage and
regardless of the form of the action. 
 (i) The Warrant Agent shall not at any time be under any duty or responsibility to any holder of any
Warrant Certificate to make or cause to be made any adjustment of the Exercise Price or number of the Warrant Shares or other securities or property deliverable as provided in this Agreement, or to determine whether any facts exist which may require
any of such adjustments, or with respect to the nature or extent of any such adjustments, when made, or with respect to the method employed in making the same. The Warrant Agent shall not be accountable with respect to the validity or value or the
kind or amount of any Warrant Shares or of any securities or property which may at any time be issued or delivered upon the exercise of any Warrant or with respect to whether any such Warrant Shares or other securities will when issued be validly
issued and fully paid and nonassessable, and makes no representation with respect thereto. 
 (j) Notwithstanding anything in this Agreement
to the contrary, the Warrant Agent shall not have any liability to any holder of a Warrant Certificate or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree, or ruling issued by a court of competent jurisdiction or by a governmental, regulatory, or administrative agency or commission, or any statute, rule, regulation, or executive order promulgated or enacted by any
governmental authority prohibiting or otherwise restraining performance of such obligation. 
 (k) Any application by the Warrant Agent for
written instructions from the Company may, at the option of the Warrant Agent, set forth in writing any action proposed to be taken or omitted by the Warrant Agent under this Agreement and the date on and/or after which such action shall be taken or
such omission shall be effective. The Warrant Agent shall not be liable for any action taken by, or omission of, the Warrant Agent in accordance with a proposal included in such application on or after the date specified in such application (which
date shall not be less than three Business Days after the date any officer of the Company actually receives 

  

 25 

 
such application, unless any such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date
in the case of an omission), the Warrant Agent shall have received written instructions in response to such application specifying the action to be taken or omitted. 
 (l) No provision of this Agreement shall require the Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its
rights. 
 (m) In addition to the foregoing, the Warrant Agent shall be protected and shall incur no liability for, or in respect of, any
action taken or omitted by it in connection with its administration of this Agreement if such acts or omissions are not the result of the Warrant Agent’s reckless disregard of its duty, negligence, or willful misconduct and are in reliance upon
(i) the proper execution of the certification concerning beneficial ownership appended to the form of assignment and the form of the election attached hereto unless the Warrant Agent shall have actual knowledge that, as executed, such
certification is untrue, or (ii) the non-execution of such certification including, without limitation, any refusal to honor any otherwise permissible assignment or election by reason of such non-execution. 
 SECTION 16. Change of Warrant Agent. The Warrant Agent may at any time resign as Warrant Agent upon written notice to the Company; provided
that no such resignation shall become effective until the appointment of a successor Warrant Agent and its acceptance in writing of such appointment. If the Warrant Agent shall become incapable of acting as Warrant Agent, the Company shall appoint a
successor to such Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or of such incapacity by the Warrant Agent or by the registered holder of a
Warrant Certificate, then the registered holder of any Warrant Certificate or the Warrant Agent may apply, at the expense of the Company, to any court of competent jurisdiction for the appointment of a successor to the Warrant Agent. If the Warrant
Agent shall be incapable of acting as Warrant Agent the, pending appointment of a successor to such Warrant Agent, either by the Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. The holders of a
majority of the unexercised Warrants then outstanding held by persons who are not affiliates of the Company or any of the Founding Holders shall be entitled at any time to remove the Warrant Agent and appoint a successor to such Warrant Agent. If a
Successor Warrant Agent shall not have been appointed within 30 days of such removal, the Warrant Agent may apply, at the expense of the Company, to any court of competent jurisdiction for the appointment of a successor to the Warrant Agent. Such
successor to the Warrant Agent need not be approved by the Company or the former Warrant Agent. After appointment the successor to the Warrant Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been
originally named as Warrant Agent without further act or deed; but the former Warrant Agent upon payment of all fees and expenses due it and its agents and counsel shall deliver and transfer to the successor to the Warrant Agent any property at the
time held by it hereunder and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Failure to give any notice provided for in this Section 16, however, or any defect therein, shall not affect the
legality or validity of the appointment of a successor to the Warrant Agent. 
  

 26 

 SECTION 17. Notices to Company and Warrant Agent. Any notice or demand authorized by this
Agreement to be given or made by the Warrant Agent or by the registered holder of any Warrant Certificate to or on the Company shall be sufficiently given or made when and if deposited in the mail, first class or registered, postage prepaid, or hand
delivered, or sent by overnight delivery service, in each case addressed (until another address is filed in writing by the Company with the Warrant Agent), as follows: 
 Opportunity Acquisition Corp. 
 c/o JMP Group Inc. 
 600 Montgomery Street, Suite 1100 
 San
Francisco, California 94111 
 Attn: Joseph A. Jolson 
 Fax No.: (415) 263-1336 
 with a copy to: 
 Greenberg Traurig LLP 
 2375 East Camelback
Road, Suite 700 
 Phoenix, Arizona 85016 
 Attention: Brian H. Blaney, Esq. 
 Fax No.: (602) 445-8603 
 In case the Company shall fail to maintain such office or agency or shall fail to give such notice of the location or of any change in the location
thereof, presentations may be made and notices and demands may be served at the principal corporate trust office of the Warrant Agent. 
 Any
notice pursuant to this Agreement to be given by the Company or by the registered holder(s) of any Warrant Certificate to the Warrant Agent shall be sufficiently given when and if deposited in the mail, first-class or registered, postage prepaid, or
hand delivered, or sent by overnight delivery service, in each case addressed (until another address is filed in writing by the Warrant Agent with the Company) to the Warrant Agent as follows: 
 American Stock Transfer & Trust Company 
 59 Maiden Lane, Plaza Level 
 New York, New York 10038 
 Attention: Compliance Department 
 SECTION 18. Supplements and Amendments. The Company and the
Warrant Agent may from time to time supplement or amend this Agreement without the approval of any holders of Warrant Certificates in order to cure any ambiguity or to correct or supplement any provision contained herein which may be defective or
inconsistent with any other provision herein, or to make any other provisions in regard to matters or questions arising hereunder which the Company and the Warrant Agent may deem necessary or desirable and which shall not in any way adversely affect
the interests of the holders of Warrant Certificates theretofore issued. Upon the delivery of a certificate from an appropriate officer of the Company and an opinion of counsel that states that the proposed supplement or amendment is in compliance
with the terms of this Section 18, the Warrant Agent shall execute such supplement or amendment. Notwithstanding anything in this Agreement to the contrary, the prior written consent of the 

  

 27 

 
Warrant Agent must be obtained in connection with any supplement or amendment that alters the rights or duties of the Warrant Agent. The Company and the
Warrant Agent may amend any provision herein with the consent of the holders of a majority of the unexercised Warrants then outstanding held by persons who are not affiliates of the Company or any of the Founders; provided that any amendment
affecting the Public Warrants must be approved by the holders of a majority of the outstanding Public Warrants. Without limiting the generality of the foregoing, prior to the issuance of any Public Warrants, this Agreement (including Exhibit A
hereto) may be amended by the Company and the Warrant Agent, without the consent of any holder of Warrants, to modify in any way or provide for the terms of the Public Warrants. 
 SECTION 19. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall
bind and inure to the benefit of their respective successors and assigns hereunder. 
 SECTION 20. Termination. This Agreement
will terminate one day after the date that is five years from the date of the final prospectus for the Initial Public Offering, or on any earlier date if all Warrants have been exercised or expired without exercise. The provisions of Section 15
hereof shall survive such termination. 
 SECTION 21. Governing Law. This Agreement and each Warrant Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of New York and for all purposes shall be governed by and construed in accordance with the internal laws of said State, to the fullest extent permitted by applicable law.
The parties agree that, all actions and proceedings arising out of this Agreement or any of the transactions contemplated hereby, shall be brought in the United States District Court for the Southern District of New York or in a New York State Court
in the County of Manhattan, City of New York and that, in connection with any such action or proceeding, submit to the jurisdiction of, and venue in, such court, to the fullest extent permitted by applicable law. 
 SECTION 22. Benefits of This Agreement. Nothing in this Agreement shall be construed to give to any person or corporation other than the
Company, the Warrant Agent and the registered holders of the Warrant Certificates, any legal or equitable right, remedy, or claim under this Agreement, and this Agreement shall be for the sole and exclusive benefit of the Company, the Warrant Agent
and the registered holders of the Warrant Certificates. 
 SECTION 23. Counterparts. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
 SECTION 24. Force Majeure. In no event shall the Warrant Agent be responsible or liable for any failure or delay in the performance of its
obligations under this Agreement arising out of or caused by, directly or indirectly, forces beyond its reasonable control, including without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services. 
 [Remainder of Page Intentionally Left Blank] 
  

 28 

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

			
	OPPORTUNITY ACQUISITION CORP.
		
	By:	 	  

	Name:	 	Joseph A. Jolson
	Title:	 	Chairman and Chief Executive Officer
	
	 AMERICAN STOCK TRANSFER & TRUST
 COMPANY,
as Warrant Agent

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 29 

 EXHIBIT A 
 [Form of Warrant Certificate] 
 [Face] 
 THIS WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO 
 5:00 P.M. NEW YORK CITY
TIME,                 , 2013 
 [five years from
the date of the Company’s prospectus] 
  

							
	No.                    	 		  	OPPORTUNITY ACQUISITION CORP.	  	             WARRANT(S)

 Incorporated Under the Laws of the State of Delaware 
 CUSIP                      
 This Warrant Certificate certifies that
                                , or registered assigns, is the registered holder
of                                  warrants (the “Warrants”) to
purchase shares of Common Stock, $0.001 par value (the “Common Stock”), of Opportunity Acquisition Corp., a Delaware corporation (the “Company”). Each Warrant entitles the holder, upon exercise during the period set
forth in the Warrant Agreement referred to below, to receive from the Company that number of fully paid and nonassessable shares of Common Stock (each, a “Warrant Share”) as set forth below at the exercise price (the
“Exercise Price”) as set forth below pursuant to the Warrant Agreement upon surrender of this Warrant Certificate and payment of the Exercise Price in lawful money of the Unites States of America (or on a cashless basis, if
applicable, pursuant to the terms of the Warrant Agreement) at the office or agency of the Warrant Agent, but only subject to the conditions set forth herein and in the Warrant Agreement. Capitalized terms used in this Warrant Certificate but not
defined herein shall have the meanings given to them in the Warrant Agreement. 
 Each Warrant is initially exercisable for one share of
Common Stock. The number of Warrant Shares issuable upon exercise of a Warrant is subject to adjustment upon the occurrence of certain events as set forth in the Warrant Agreement. 
 The Exercise Price is $7.50 per share of Common Stock. The Exercise Price is subject to adjustment upon the occurrence of certain events as set forth in
the Warrant Agreement. 
 Warrants may be exercised only during the Warrant Exercise Period subject to the conditions set forth in the
Warrant Agreement and to the extent not exercised by the end of such Warrant Exercise Period such Warrants shall become void. 
 Reference is
hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Warrant Certificate shall not be valid unless countersigned by the manual signature of the Warrant Agent, as such term is used in the Warrant
Agreement. 
  

 Exhibit A-1 

 This Warrant Certificate shall be governed and construed in accordance with the internal laws of the
State of New York, without regard to conflicts of laws principles thereof. 
  

			
	OPPORTUNITY ACQUISITION CORP.
		
	By:	 	  

	Name:	 	Joseph A. Jolson
	Title:	 	Chairman and Chief Executive Officer
		
	By:	 	  

	Name:	 	
	Title:	 	Secretary

 Countersigned: 
 Dated:                              
 AMERICAN STOCK TRANSFER & TRUST 
 COMPANY, as Warrant Agent

  

			
		
	By	 	  

		 	Authorized Signatory

  

 Exhibit A-2 

 EXHIBIT A 
 [Form of Warrant Certificate] 
 [Reverse] 
 The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive shares of
Common Stock, par value $0.001 per share, of the Company (the “Common Stock”), and are issued pursuant to a Warrant Agreement dated as of
[                    ], 2008 (as the same may be amended or supplemented from time to time, (the “Warrant Agreement”), duly
executed and delivered by the Company to American Stock Transfer & Trust Company, a New York corporation, as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in and made a
part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties, and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders” or
“holder” meaning the registered holders or registered holder) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request to the Company or the Warrant Agent. Capitalized terms used in this
Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement. 
 Warrants may be exercised at
any time during the Warrant Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them by surrendering this Warrant Certificate, with the form of election to purchase set forth
hereon properly completed and executed, together with payment of the Exercise Price as specified in the Warrant Agreement (or on a cashless basis, if applicable, pursuant to the terms of the Warrant Agreement) at the principal corporate trust office
of the Warrant Agent. In the event that upon any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there shall be issued to the holder hereof or his assignee a
new Warrant Certificate evidencing the number of Warrants not exercised. No adjustment shall be made for any dividends on any Common Stock issuable upon exercise of this Warrant. 
 Notwithstanding anything else in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a
registration statement covering the Warrant Shares to be issued upon exercise is effective under the Act and (ii) a current prospectus relating to the Warrant Shares is available. In no event shall the Warrants be settled on a net cash basis
nor shall the Company be required to issue Warrant Shares that have not been registered under the Act upon the exercise of any Warrant. 
 As
described on the fact of this certificate, the number of Warrant Shares issuable upon the exercise of a Warrant and the Exercise Price are subject to adjustment upon the occurrence of certain events as set forth in the Warrant Agreement. No
fractions of a share of Common Stock will be issued upon the exercise of any Warrant, but the Company shall round up to the nearest whole number the number of Warrant Shares to be issued as provided in the Warrant Agreement. 
  

 Exhibit A-3 

 Warrant Certificates, when surrendered at the principal corporate trust office of the Warrant Agent by
the registered holder thereof in person or by legal representative or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any charge, for
another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like number of Warrants. 
 Upon due
presentation for registration of transfer of this Warrant Certificate at the principal corporate trust office of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of
Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed in connection therewith.

 The Company and the Warrant Agent may deem and treat the registered holder(s) thereof as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s) hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall
be affected by any notice to the contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company. 
  

 Exhibit A-4 

 Election to Purchase 
 (To Be Executed Upon Exercise Of Warrant) 
 The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to receive                      shares of Common Stock and herewith tenders payment for such shares
to the order of Opportunity Acquisition Corp. in the amount of $             in accordance with the terms hereof. The undersigned requests that a certificate for such shares be
registered in the name of                         , whose address is
                                        
and that such shares be delivered to                          whose address is
                                        .
If said number of shares is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the remaining balance of such shares be registered in the name of
                            , whose address is
                                        ,
and that such Warrant Certificate be delivered to
                                , whose address is
                                        .

  

			
	Signature:	 	  

 Date:
                    , 20     
  

	
	Signature Guaranteed:

  

 Exhibit A-5 

 ASSIGNMENT 
 To Be Executed by the Registered Holder in Order to Assign Warrants 

	
	 For Value Received,
                                        
                                        
                                        
                     hereby sells, assigns, and
 transfers unto
                                        
                                        
                                        
                                        
                                        
            

	(PLEASE TYPE OR PRINT NAME AND ADDRESS)
	                                      
                                        
                                        
                                        
                                        
                                        
                   
	                                      
                                        
                                        
                                        
                                        
                                        
                   
	(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)
	
	                                      
                                        
                                        
                                        
                                        
                                        
                   
	 to be delivered to
                                        
                                        
                                        
                                        
                                       
 
 (PLEASE PRINT OR TYPE NAME AND ADDRESS)

	
	                                      
                               of the Warrants represented by this Warrant Certificate, and
hereby irrevocably constitute and appoint
                                        
                                        
     Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises.
	

  

							
	Dated:	 	                              
	 		  	  

		 		 		  	(SIGNATURE)

  

 Exhibit A-6 

 EXHIBIT B 
 LEGEND FOR PRIVATE WARRANTS 
 THE WARRANTS
REPRESENTED BY THIS WARRANT CERTIFICATE (INCLUDING THE SECURITIES ISSUABLE UPON EXERCISE OF THE WARRANTS) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT AND LAWS.(1) 
 THE WARRANTS EVIDENCED HEREBY (INCLUDING THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF SUCH WARRANTS) ARE
SUBJECT TO RESTRICTIONS ON TRANSFER, SALE, PLEDGE AND OTHER DISPOSITION AND OTHER AGREEMENTS SET FORTH IN (I) THE WARRANT AGREEMENT DATED AS OF
                    , 2008 BETWEEN THE CORPORATION (AS DEFINED BELOW) AND THE WARRANT AGENT REFERRED TO BELOW AND (II) THE AMENDED AND
RESTATED CERTIFICATE OF INCORPORATION OF THE CORPORATION, COPIES OF WHICH CAN BE OBTAINED, WITHOUT CHARGE, BY THE HOLDER HEREOF UPON REQUEST TO THE CORPORATION’S SECRETARY AT THE PRINCIPAL OFFICE OF THE CORPORATION. 
  

			
	No.             	  	             Warrants

  

 Exhibit B-1Revolving/Term Loan Agreement

 Exhibit 10.1 
  
  
  
  
 REVOLVING/TERM LOAN AGREEMENT 
 between 
 EP MEDSYSTEMS, INC., 
 and

 PROCATH CORPORATION 
 and 
 KELTIC FINANCIAL PARTNERS, LP 
  
  
  
  
 Dated: as of February 28, 2008 

 REVOLVING/TERM LOAN AGREEMENT 
 This REVOLVING/TERM LOAN AGREEMENT (as amended, modified or supplemented from time to time, the “Agreement”) made as of
February 28, 2008, by and among 
 EP MEDSYSTEMS, INC., a New Jersey corporation bearing federal employer identification number
22-3212190 and New Jersey state organizational number 0100541773 and having its principal place of business at 575 Route 73 North, Building D, West Berlin, Camden County, New Jersey 08091 (“MEDSYSTEMS”) 
 and 
 PROCATH CORPORATION, a New
Jersey corporation bearing federal employer identification number 22-3261466 and New Jersey state organizational number 0100568383 and having its principal place of business at 575 Route 73 North, Building D, West Berlin, Camden
County, New Jersey 08091 (“PROCATH”) 
 and 
 KELTIC FINANCIAL PARTNERS, LP, a Delaware limited partnership, with a place of business at 580 White Plains Road, Suite 610, Tarrytown, New York 10591 (“Lender”), 
 W I T N E S S E S   T H A T : 
 WHEREAS, MEDSYSTEMS and PROCATH have requested that Lender extend a ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 ($1,500,000) DOLLAR revolving credit facility to MEDSYSTEMS and PROCATH on a joint
and several basis, the proceeds of which will be used to repay existing indebtedness and to provide working capital and financial support to PROCATH and MEDSYSTEMS. 
 WHEREAS, MEDSYSTEMS and PROCATH have also requested that Lender extend a ONE MILLION FIVE HUNDRED THOUSAND AND NO/100
($1,500,000) DOLLAR term loan facility to PROCATH and MEDSYSTEMS on a joint and several basis, the proceeds of which will be used to repay existing indebtedness and to provide working capital and financial support to
MEDSYSTEMS and PROCATH based on the value of the Mortgaged Premises defined below. 

 WHEREAS, Lender is willing to extend the revolving credit facility and the term loan facility on a
joint and several basis to PROCATH and MEDSYSTEMS on the terms and subject to the conditions set forth in this Agreement. 
 AGREEMENT 
 1. DEFINITIONS. As used herein, the following terms shall have the following meanings (terms defined in
the singular shall have the same meaning when used in the plural and vice versa): 
 1.1 “Account Debtor” shall mean any
Person who is or may become obligated under or on account of any Receivable. 
 1.2 “Affiliate” shall mean any Person:
(i) which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, either Borrower, (ii) which beneficially owns or holds 5% or more of any class of the voting stock or other
equity interest in either Borrower; or (iii) 5% or more of the voting stock or other equity interest of which is beneficially owned or held by either Borrower. For purposes hereof, “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting stock or other equity interests, by contract or otherwise. 
 1.3 “Authenticate” shall mean to sign or to execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in
part, with the present interest of the authenticating person to identify the person and adopt or accept a Record. 
 1.4 “Bank
Accounts” shall have the meaning given that term in Section 5.23 of this Agreement. 
 1.5 “Banking
Day” shall mean any day on which commercial banks are not authorized or required to close in New York State. 
 1.6 “Blocked
Account” shall have the meaning given that term in Section 2.7(a)(1) of this Agreement. 
 1.7
“Borrowers” shall mean MEDSYSTEMS and PROCATH. 
 1.8 “Borrowing Base Certificate” shall mean
a borrowing base certificate substantially in the form of Exhibit A attached hereto or as otherwise acceptable to Lender. 
 1.9
“Capital Expenditure” shall mean, as determined in accordance with GAAP, the dollar amount of gross expenditures (including obligations under capital leases) made or incurred for fixed assets, real property, plant and equipment, and
all renewals, improvements and replacements thereto (but not repairs thereof) during any period. 
 1.10 “Cash Collateral”
shall have the meaning given that term in Section 9.20 of this Agreement. 
  

 2 

 1.11 “Certification as to Liens” means that certification given by Borrowers setting
forth the existence or non-existence of liens filed against them. 
 1.12 “Code” shall mean the Internal Revenue Code of the
United States. 
 1.13 “Collateral“ shall mean all of the Property and interests in Property described in the General
Security Agreement, and all other personal property of Borrowers and interests of Borrowers in personal property that now or hereafter secures the payment and performance of any of the Obligations pursuant to any of the Loan Documents or otherwise
including, without limitation, any proceeds and insurance proceeds of the foregoing. 
 1.14 “Compliance Certificate“ shall
mean the certificate substantially in the form of Exhibit B attached hereto and made a part hereof. 
 1.15 “Contract
Year” shall mean, during the term of the Revolving Loan and the Term Loan, each consecutive twelve (12) month period commencing on the date hereof and, in each case, ending on the date which is one day prior to the applicable
anniversary date hereof. 
 1.16 “Copyright Security Agreement” is a collective term which means all of the following:

  

	 	(a)	that certain Copyright Security Agreement executed by MEDSYSTEMS in favor of Lender on even date herewith; and 

  

	 	(b)	all extensions, modifications, refinancings, renewals, substitutions, replacements and/or redatings of either of the foregoing thereof made with the written consent of Lender from
time to time hereafter. 

 1.17 “Default” shall mean an event or condition the occurrence of which would, with
the lapse of time or the giving of notice, or both, become an Event of Default, whether or not Lender has declared an Event of Default to have occurred. 
 1.18 “Deposit Account” shall have the meaning given to such term in the UCC in effect from time to time in the State of New York. 
 1.19 “EBITDA” shall mean Borrowers’ consolidated total income before interest expense, taxes, depreciation and amortization, all
calculated in accordance with GAAP. 
 1.20 “Eligible Inventory” shall mean Inventory which has been identified and
described to Lender’s satisfaction, is represented by Borrowers (by their acceptance of Revolving Loan Advances thereon) as meeting all of the following criteria on the date of any Revolving Loan Advance based thereon and thereafter while any
Obligation is outstanding, and is in all other respects acceptable to Lender in Lender’s sole and absolute discretion exercised in good faith: 
  

	 	(a)	Borrowers are the sole owner of the Inventory; none of the Inventory is being held or shipped by Borrowers on a consignment or approval basis; Borrowers have not sold, assigned or
otherwise transferred all or any portion thereof; and none of the Inventory is subject to any claim, lien or security interest or subject to any licensing or other such agreement. 

  

 3 

	 	(b)	If any of the Inventory is represented or covered by any document of title, instrument or chattel paper, Borrowers are the sole owner of all such documents, instruments and chattel
paper, all thereof are in the possession of Borrowers, none thereof has been sold, assigned or otherwise transferred, and none thereof is subject to any claim, lien or security interest. 

  

	 	(c)	The Inventory shall consist of saleable non-obsolete raw materials, finished goods and purchased components with a six month supply or less manufactured or acquired by Borrowers in
the ordinary course of Borrowers’ business, as conducted on the date hereof, subject to its contract or sole possession and located only (1) at the Mortgaged Premises and (2) at 575 Route 73 North, Building C, West Berlin, Camden
County, New Jersey 08091 (premises leased by MEDSYSTEMS) but only if landlord or bailee waivers in form and substance acceptable to Lender have been executed and delivered to Lender by such landlord or bailee and (3) at locations set
forth in Section 5.15 of this Agreement but only if landlord or bailee waivers in form and substance acceptable to Lender have been executed and delivered to Lender by such landlord or bailee and (4) at other locations acceptable to
Lender in its sole and absolute discretion exercised in good faith but only if landlord or bailee waivers in form and substance acceptable to Lender have been executed and delivered to Lender by the landlord or bailee of such other locations.

 1.21 “Eligible Receivables” shall mean and include only Receivables of Borrowers, the records and accounts
of which are located in compliance with Section 5.14 of this Agreement, are acceptable to Lender in Lender’s sole and absolute discretion exercised in good faith, and that arise out of sales in the ordinary course of Borrowers’
business, made by Borrowers to a Person which is not an Affiliate of either Borrower nor an employee of either Borrower nor controlled by an Affiliate of either Borrower, which are not in dispute and which do not then violate any warranty with
respect to Eligible Receivables set forth herein or in the General Security Agreement. No Receivable shall be an Eligible Receivable if more than ninety (90) days have passed since the original invoice date or if the invoice was issued prior to
the date that the goods or the services described in such invoice were provided. In addition and in all events, Lender may treat any Receivable as ineligible if: 
  

	 	(a)	 any warranty contained in this Agreement or in the General Security Agreement with respect to Eligible Receivables or any 

  

 4 

	 	 
warranty with respect to such Receivable contained in this Agreement or in the General Security Agreement has been breached; or 

 

	 	(b)	the Account Debtor or any Affiliate of the Account Debtor has disputed liability, or made any claim with respect to such Receivable or with respect to any other Receivable due from
such customer or Account Debtor to Borrowers, with respect to any Receivable which Lender, in its sole and absolute discretion exercised in good faith, deems material; or 

  

	 	(c)	the Account Debtor has filed a case for bankruptcy or reorganization under the Bankruptcy Code, or if any case under the Bankruptcy Code has been filed against the Account Debtor,
or if the Account Debtor has assigned for the benefit of creditors, or if the Account Debtor has failed, suspended business operations, become insolvent, or had or suffered a receiver or a trustee to be appointed for all or a significant portion of
its assets or affairs; or 

  

	 	(d)	if the Account Debtor is also a supplier to or creditor of either Borrower to the extent of the claimed right of offset or if the Account Debtor has or asserts any right of offset
with respect to any Receivable or asserts any claim or counterclaim against either Borrower with respect to any Receivable or otherwise, to the extent of the claimed right of offset; or 

  

	 	(e)	it arises from the sale to an Account Debtor outside the United States or Canada (except sales to an Account Debtor located in the province of Quebec is ineligible), unless the sale
is on letter of credit, acceptance, foreign credit insurance or other terms acceptable to Lender; or 

  

	 	(f)	fifty (50%) percent or more of the Receivables of any Account Debtor and its Affiliates is ineligible, then all the Receivables of such Account Debtor and its Affiliates
may be deemed ineligible by Lender under this Agreement; or 

  

	 	(g)	the total unpaid Receivables of the Account Debtor exceed fifteen (15%) percent of the amount of all Eligible Receivables, but only to the extent of such excess; or

  

	 	(h)	it relates to a sale of goods or services to the United States of America, or any agency or department thereof, unless the applicable Borrower assigns its right to payment of such
Receivable to Lender, in form and substance satisfactory to Lender, so as to comply with the Assignment of Claims Act of 1940, as amended; or 

  

 5 

	 	(i)	it relates to sale of goods or services to a state or local governmental authority or an agent or department thereof; or 

  

	 	(j)	it relates to intercompany sales or any Receivable due from an Affiliate of either Borrower; or 

  

	 	(k)	it consists of a sale to an Account Debtor on consignment, bill and hold, guaranteed sale, sale or return, sale on approval, payment plan, scheduled installment plan, extended
payment terms or any other repurchase or return basis; or 

  

	 	(l)	the Account Debtor is located in a state in which the applicable Borrower is deemed to be doing business under the laws of such state and which denies creditors access to its courts
in the absence of qualifications to transact business in such state or of the filing of any reports with such state, unless the applicable Borrower has qualified as a foreign corporation authorized to do business in such state or has filed all
required reports; or 

  

	 	(m)	the Receivable is evidenced by chattel paper or an instrument of any kind, or has been reduced to judgment; or 

  

	 	(n)	the Receivable arises from a sale of goods or services to an individual who is purchasing such goods primarily for personal, family or household purposes; or

  

	 	(o)	if Lender believes, in its sole and absolute judgment, that collection of such Receivable is insecure or that such Receivable may not be paid by reason of the Account Debtor’s
financial inability to pay. 

 1.22 “Environment” shall mean any water or water vapor, any land surface or
subsurface, air, fish, wildlife, biota and all other natural resources. 
 1.23 “Environmental Laws” shall mean all federal,
state and local environmental, land use, zoning, health, chemical use, safety and sanitation laws, statutes, ordinances and codes relating to the protection of the Environment and/or governing the use, storage, treatment, generation, transportation,
processing, handling, production or disposal of “hazardous substances” and the rules, regulations, policies, guidelines, interpretations, decisions, orders and directives of federal, state and local governmental agencies and authorities
with respect thereto. 
 1.24 “Equipment” shall have the meaning given that term in the UCC; 
 1.25 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  

 6 

 1.26 “Events of Default” shall have the meaning set forth in Article 12 of this
Agreement. 
 1.27 “Fiscal Year” shall mean with respect to any Person, a year of 365 or 366 days, as the case may be,
ending on the last day of December in any calendar year. 
 1.28 “GAAP” shall mean generally accepted accounting principles
consistently applied and maintained throughout the period indicated and consistent with the prior financial practice of Borrowers, except for changes mandated by the Financial Accounting Standards Board or any similar accounting authority of
comparable standing. Whenever any accounting term is used herein which is not otherwise defined, it shall be interpreted in accordance with GAAP. 
 1.29 “General Security Agreement” shall mean the general security agreement of even date herewith executed and delivered by Borrowers to Lender, as the same may be amended, modified or supplemented from time to time.

 1.30 “Governmental Rules” shall have the meaning given to such term in Section 5.25 of this Agreement.

 1.31 “Indebtedness” shall mean and include all obligations for borrowed money of any kind or nature, including funded
debt and unfunded liabilities, contingent obligations under guaranties or letters of credit, and all obligations for the acquisition or use of any fixed asset, including capitalized leases, or improvements which are payable over a period longer than
one year, regardless of the term thereof or the Person or Persons to whom the same is payable. 
 1.32 “Inventory” shall
have the meaning given to such term in the General Security Agreement. 
 1.33 “Loan Documents” shall mean this Agreement,
the Certification as to Liens, the Copyright Security Agreement, the General Security Agreement, the Mortgage, the Patent Security Agreement, the Revolving Note, the Term Note, the Trademark and Tradename Agreement and all other documents and
instruments to be delivered by Borrowers or any other Person under this Agreement or in connection with the Revolving Loan and the Term Loan or any other Indebtedness or Obligations of Borrowers to Lender, as the same may be amended, modified or
supplemented from time to time. 
 1.34 “Lockbox” shall mean the account or accounts established by Borrowers pursuant to
the lockbox agreement among Borrowers, Lender and a financial institution with which the applicable Borrower maintains a depository account into which the proceeds of all Collateral are to be deposited. 
 1.35 “Material Adverse Effect” shall mean (a) the occurrence of any event or the existence of any condition which, in the sole and
absolute discretion of Lender exercised in good faith, (1) materially and adversely changes the business, condition (financial or otherwise), creditworthiness, operations, performance or properties of MEDSYSTEMS or (2)

  

 7 

 
materially impairs the ability of MEDSYSTEMS to discharge its obligations under the Revolving Loan or (b) the occurrence of any event or the
existence of any condition which, in the sole and absolute discretion of Lender exercised in good faith, (1) materially and adversely changes the business, condition (financial or otherwise), creditworthiness, operations, performance or
properties of PROCATH or (2) materially impairs the ability of PROCATH to discharge its obligations under the Term Loan or (c) the occurrence of any event or the existence of any condition which, in the sole and absolute
discretion of Lender exercised in good faith, materially impairs the value, collectability or salability of the Collateral or the perfection or priority of the liens and security interests granted to Lender herein or which causes Lender to deem
itself insecure or (d) the occurrence of any event or the existence of any condition which, in the sole and absolute discretion of Lender exercised in good faith, materially impairs the ability of Borrowers, as a whole, to pay or perform the
Obligations in accordance with their terms. 
 1.36 “Maximum Facility” shall mean THREE MILLION AND NO/100 ($3,000,000)
DOLLARS. 
 1.37 “Mortgage” shall mean that certain mortgage against the Mortgaged Premises dated even date herewith and
executed by PROCATH (with the consent and lease subordination executed by PROCATH) for the benefit of Lender so as to secure the repayment of the Obligations and all extensions, modifications, refinancings, renewals, substitutions,
replacements and/or redatings thereof made with the written consent of Lender. 
 1.38 “Mortgaged Premises” means the
Mortgaged Premises described in the Mortgage and commonly known as 575 Route 73 North, Building D, Berlin, Camden County, New Jersey 08091. 
 1.39 “Notice of Borrowing” shall mean a borrowing request in a Record substantially in the form of Exhibit C attached hereto. 
 1.40 “Obligations” shall mean and include the payment and performance of all loans (including the Revolving Loan and the Term Loan), advances, debts, liabilities, obligations, covenants and duties
owing by either Borrower, whether jointly or severally, to Lender of any kind or nature, present or future, whether or not evidenced by any note, guaranty or other instrument, whether or not arising under this Agreement, the other Loan
Documents or under any other agreement or by operation of law, whether or not for the payment of money, whether arising by reason of an extension of credit, opening, guaranteeing or confirming of a letter of credit, loan, guaranty, indemnification
or in any other manner, whether direct or indirect (including those acquired by purchase or assignment), absolute or contingent, due or to become due, now due or hereafter arising and howsoever acquired including, without limitation, all interest,
charges, expenses, commitment, facility, collateral management or other fees, attorneys’ fees and expenses, consulting fees and expenses and any other sum chargeable to either Borrower, whether jointly or severally, and whether under
this Agreement, the other Loan Documents or any other agreement with Lender. 
 1.41 “Patent Security Agreement” is a
collective term which means all of the following: 
  

	 	(a)	that certain Patent Security Agreement executed by MEDSYSTEMS in favor of Lender on even date herewith; 

  

 8 

	 	(b)	that certain Patent Security Agreement executed by PROCATH in favor of Lender on even date herewith; and 

  

	 	(c)	all extensions, modifications, refinancings, renewals, substitutions, replacements and/or redatings of either of the foregoing thereof made with the written consent of Lender from
time to time hereafter. 

 1.42 “Person” shall mean an individual, partnership, limited liability company,
limited liability partnership, corporation, joint venture, joint stock company, land trust, business trust or unincorporated organization, or a government or agency or political subdivision thereof. 
 1.43 “Plan” shall mean an employee benefit plan or other plan now or hereafter maintained for employees of either Borrower or any
subsidiary of either Borrower and covered by Title IV of ERISA. 
 1.44 “Pledge of Cash Collateral” shall have the meaning
given that term in Section 9.20 of this Agreement. 
 1.45 “Property” shall have the meaning given such term in
the General Security Agreement. 
 1.46 “Receivables” shall have the meaning given to such term in the General Security
Agreement. 
 1.47 “Reconciliation Report” shall mean a report in form satisfactory to Lender, reconciling Borrowers’
month-end Receivable agings, payable agings and Inventory listings to Borrowers’ monthly financial statements, and including (but only if requested) bank reconciliations. 
 1.48 “Record” shall mean information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is
retrievable in perceivable form. If Lender so specifies with respect to a particular type of Record, that type of Record shall be signed or otherwise authenticated by the applicable Borrower. 
 1.49 “Reportable Event” shall have the meaning assigned to that term in Title IV of ERISA. 
 1.50 “Revolving Loan” shall mean the revolving loan facility extended by Lender to Borrowers, jointly or severally, pursuant to
Article 2 of this Agreement, and all Revolving Loan Advances disbursed by Lender thereunder and all interest thereon and all fees, costs and expenses payable by Borrowers in connection therewith. 
  

 9 

 1.51 “Revolving Loan Advance” shall mean any loan or advance made by Lender in
connection with the Revolving Loan. 
 1.52 “Revolving Loan Borrowing Capacity” shall have the meaning set forth in
Section 2.1 of this Agreement. 
 1.53 “Revolving Loan Interest Rate” shall mean the per annum rate equal to the
greater of: (a) the prime rate published in the “Money Rates” column of The Wall Street Journal from time to time or, in the event that The Wall Street Journal is not available at any time, such rate published in another publication
as determined by Lender plus 175 basis points (1.75%) or (b) eight percent (8.00%)—in each instance calculated on the basis of a year consisting of 360 days and paid for the number of days actually elapsed. 
 1.54 “Revolving Note” shall mean Borrowers’ joint and several promissory note dated on or about even date herewith and given by
Borrowers to Lender to evidence the Revolving Loan Advances, as such note may from time to time be extended, modified, refinanced, renewed, substituted, replaced and/or redated with the written consent of Lender. 
 1.55 “Solvent” shall mean when used with respect to any Person, such Person (i) owns Property the fair value of which is greater
than the amount required to pay all of such Person’s Indebtedness (including contingent debts), (ii) owns property the present fair salable value of which is greater than the amount that will be required to pay the probable liabilities of
such Person on its then existing Indebtedness as such become absolute and matured, (iii) is able to pay all of its Indebtedness as such Indebtedness matures, and (iv) has capital sufficient to carry on its then existing business.

 1.56 “Term Loan” shall mean the $1,500,000 term loan extended by Lender to Borrowers jointly and severally pursuant to
Article 2 of this Agreement, and all interest thereon and all fees, costs and expenses payable by Borrowers in connection therewith. 
 1.57 “Term Loan Collateral Deficiency” shall mean the following: 
 (a) on days that a Borrowing Base Certificate
is submitted by Borrowers to Lender, the amount by which the outstanding principal amount of the Term Loan exceeds the sum of (1) up to eighty-five (85%) percent of the net face amount of Borrowers’ Eligible Receivables (as set
forth in the aforesaid Borrowing Base Certificate) PLUS (2) the lesser of $250,000 or up to twenty-five (25%) percent of the Value of Borrowers’ Eligible Inventory (as set forth in the aforesaid Borrowing Base
Certificate with Value meaning the lesser of cost or the fair market value of such Inventory) PLUS (3) the lesser of $500,000 or 75% of the fair market value of the Mortgaged Premises based on an appraisal satisfactory to Lender prepared
by an independent appraiser satisfactory to Lender and obtained at Borrowers’ expense; and 
 (b) on days that a Borrowing Base
Certificate is not submitted by Borrowers to Lender, the amount by which the outstanding principal amount of the Term Loan exceeds the sum of (1) up to eighty-five (85%) percent of the net face amount of Borrowers’ Eligible
Receivables as shown in the last Borrowing Base Certificate submitted by Borrowers 

  

 10 

 
to Lender LESS (2) 85% of Borrowers’ cash collections of Accounts Receivable received from the date of the last Borrowing Base Certificate
submitted by Borrowers to Lender (determined by reference to Borrowers’ records as available to Lender) PLUS (3) the lesser of $250,000 or up to twenty-five (25%) percent of the Value of Borrowers’ Eligible
Inventory (Value meaning the lesser of cost or the fair market value of such Inventory) PLUS (4) the lesser of $500,000 or 75% of the fair market value of the Mortgaged Premises based on an appraisal satisfactory to Lender prepared by an
independent appraiser satisfactory to Lender and obtained at Borrowers’ expense. 
 1.58 “Term Loan Interest Rate”
shall mean the per annum rate equal to the greater of: (a) the prime rate published in the “Money Rates” column of The Wall Street Journal from time to time or, in the event that The Wall Street Journal is not available at any time,
such rate published in another publication as determined by Lender plus 200 basis points (2.00%) or (b) eight and one-quarter percent (8.25%)—in each instance calculated on the basis of a year consisting of 360 days and paid for the
number of days actually elapsed. 
 1.59 “Term Note” shall mean Borrowers’ joint and several promissory note dated on
or about even date herewith and given by Borrowers to Lender to evidence the Term Loan, as such note may from time to time be extended, modified, refinanced, renewed, substituted, replaced and/or redated with the written consent of Lender.

 1.60 “Termination Date” shall mean the earlier of the date which is the third anniversary of the date hereof, or the date
on which Lender terminates this Agreement pursuant to Section 12.1 of this Agreement. 
 1.61 “Termination
Notice” as defined in Section 3.6 of this Agreement. 
 1.62 “Trademark and Tradename Agreement” is a
collective term which means all of the following: 
 (a) that certain Trademark and Tradename Security Agreement executed by
MEDSYSTEMS in favor of Lender on even date herewith; and 
 (b) all extensions, modifications, refinancings, renewals, substitutions,
replacements and/or redatings of either of the foregoing thereof made with the written consent of Lender from time to time hereafter. 
 1.63
“UCC” means the Uniform Commercial Code as in effect from time to time. 
 2. THE REVOLVING LOAN AND THE TERM LOAN.

 2.1 Revolving Loan Advances. 
 (a) Subject to the terms and conditions of this Agreement (including without limitation subsection (b) and subsection (c) below) and relying upon the representations 

  

 11 

 
and warranties set forth in this Agreement, for so long as no Default or Event of Default exists, Lender shall lend in its discretion to MEDSYSTEMS
and PROCATH on the request of MEDSYSTEMS (acting as agent for itself and for PROCATH), a sum (“Revolving Loan Borrowing Capacity”) equal to the lesser of: 
  

	 	(1)	ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 ($1,500,000) DOLLARS, or 

  

	 	(2)	the sum of (i) up to eighty-five (85%) percent of the net face amount of Borrowers’ Eligible Receivables PLUS (ii) the lesser of $250,000 or
up to twenty-five (25%) percent of the Value of Borrowers’ Eligible Inventory PLUS (iii) the lesser of $500,000 or 75% of the fair market value of the Mortgaged Premises based on an appraisal satisfactory to Lender
prepared by an independent appraiser satisfactory to Lender and obtained at Borrowers’ expense LESS (iv) the outstanding principal amount of the Term Loan. Value shall mean the lesser of cost or the fair market value of such
Inventory. If the calculation set forth in this subparagraph (2) results in a negative number, such amount is intended to be the Term Loan Collateral Deficiency for purposes of this Agreement and Section 9.20 below. In such
case, Borrowers will be required to comply with the provisions of Section 9.20 below as they relate to the existence of any such Term Loan Collateral Deficiency. Borrowers will not be permitted to borrow under the Revolving Loan
until Borrowers cure the Term Loan Collateral Deficiency. Borrowers’ failure for any reason to cure the Term Loan Collateral Deficiency in the manner required by Section 9.20 below shall be an Event of Default
hereunder. 

 (b) (1) Within the limits of the Revolving Loan Borrowing Capacity and subject to the limitations set forth in
this Agreement, MEDSYSTEMS (acting as agent for itself and for PROCATH) may borrow, repay and reborrow Revolving Loan Advances. 
 (2) Within the limits of the Revolving Loan Borrowing Capacity and subject to the limitations set forth in this Agreement, PROCATH (acting through MEDSYSTEMS as agent for PROCATH) may borrow, repay and reborrow
Advances. 
 (c) The fact that only one Revolving Loan account may be charged on Lender’s books in no way alters or lessens the joint
and several liability of both Borrowers under this Agreement for the performance and payment of all the Obligations, it being understood (as also set forth in Section 2.10 below) that EACH BORROWER IS JOINTLY AND SEVERALLY AND
UNCONDITIONALLY LIABLE AS A GUARANTOR OF THE PAYMENT AND PERFORMANCE OF THE OBLIGATIONS OF THE OTHER BORROWER, SUCH “GUARANTY” LIABILITY BEING ONE OF PAYMENT, AND NOT MERELY ONE OF COLLECTION 
  

 12 

 (d) The foregoing shall not prohibit MEDSYSTEMS from transferring and distributing any Revolving
Loan proceeds received by it to PROCATH so long as such transfer and distribution is made in the ordinary course of MEDSYSTEMS’ business. The foregoing shall not prohibit PROCATH from transferring and distributing any
Revolving Loan proceeds received by it to MEDSYSTEMS so long as such transfer and distribution is made in the ordinary course of PROCATH’s business. 
 2.2 Overline. 
 (a) Borrowers acknowledge that Lender has advised Borrowers of each and all of
the following: 
 (1) Lender does not intend to permit Borrowers either separately or in the aggregate to incur Obligations at any time in
an outstanding principal amount exceeding the Maximum Facility. 
 (2) With respect to the Revolving Loan, Lender does not intend to permit
Borrowers either separately or in the aggregate (i) to borrow at any time that there exists a Term Loan Collateral Deficiency not cured in the manner required by Section 9.20 below or (ii) to at any time have Revolving
Loan Advances outstanding in a principal amount which exceeds the Revolving Loan Borrowing Capacity or which creates or results in a Term Loan Collateral Deficiency. 
 (3) Lender does not intend to permit the existence of any Term Loan Collateral Deficiency which is not cured in the manner required by
Section 9.20 below. 
 (b) Notwithstanding the foregoing, it is agreed that should the Obligations of Borrowers to Lender
incurred under the Revolving Loan exceed the Revolving Loan Borrowing Capacity or should the Obligations of Borrowers to Lender incurred under the Revolving Loan and the Term Loan exceed the Maximum Facility then, all such Obligations in excess of
the Revolving Loan Borrowing Capacity or the Maximum Facility shall (a) constitute Obligations under this Agreement, (b) be entitled to the benefit of all security and protection under this Agreement and the other Loan Documents,
(c) be secured by the Collateral and (d) be payable immediately without notice or demand by Lender. 
 2.3 Reserves.
The Revolving Loan Borrowing Capacity shall be subject to such reserves as Lender shall deem necessary and proper in Lender’s sole and absolute discretion exercised in good faith. Reserves may be established by Lender from time to time in such
manner (including reduction of the advance rates set forth in Subsection 2.1(a) above) and for such reasons as Lender may determine from time to time in Lender’s sole and absolute discretion. Payments, deposits, guaranties or
indemnifications made by Lender under any reimbursement agreement, guaranty or similar instrument made in respect of any such instrument may be treated by Lender as Revolving Loan Advances to Borrowers under this Agreement. 
  

 13 

 2.4 Manner of Borrowing. 
 (a) Borrowers have requested that, as a convenience to each of them, all requests for Advances and the extension of any other financial accommodations to
any of them under this Agreement shall be made only by MEDSYSTEMS, acting in its capacity as agent for itself and for PROCATH. 
 (b) In furtherance of the foregoing, Borrowers hereby direct, and Lender hereby agrees, that the making of Advances and the extension of any other financial accommodations extended to either Borrower under this Agreement shall be made by
MEDSYSTEMS, acting in its capacity as agent as aforesaid. 
 (c) Borrowers further authorize MEDSYSTEMS, acting in its
capacity as agent as aforesaid, to designate any Advance received hereunder and any other financial accommodation extended hereunder as having been made, issued or extended for the account of the Borrower designated by MEDSYSTEMS. 

(d) In the absence of any such designation, the request will be deemed to have been made on behalf of MEDSYSTEMS for itself. 
 (e) Notwithstanding MEDSYSTEMS’ designation (or lack of a designation) as it relates to any such Advance or any such other financial
accommodation as having been made or extended for the account of a designated Borrower, Lender will charge the joint and several Revolving Loan account of all Borrowers and may in addition charge a specific loan account of either Borrower also.

 (f) The authority of MEDSYSTEMS, acting in its capacity as agent as aforesaid, to so request Advances or other financial
accommodations on behalf of, and to bind, Borrowers, shall continue unless and until Lender’s actual receipt of written notice from both Borrowers as to the termination of such authority, which notice must be signed by the respective President
of each Borrower, and which notice must be binding on both Borrowers and shall be effective only as to Advances made or financial accommodations extended more than sixty (60) days following Lender’s receipt of such notice. Borrowers
understand that Lender’s receipt of any such written notice constitutes an Event of Default under the Loan Agreement. 
 (g)
Notwithstanding the foregoing, it is the intent of this Agreement that each entity named as Borrower shall be considered individually and collectively as a “Borrower” hereunder regardless whether either such entity actually receives
the proceeds of the Revolving Loan Advances made hereunder or any financial accommodation provided hereunder and regardless which entity is the source of any Collateral, it being further intended that each entity named as “Borrower” is and
shall be jointly and severally liable as a “Borrower” for the payment of all Obligations. 
 (h) Each Advance shall be requested
in an Authenticated Record sent via facsimile or electronic transmission including, without limitation, via e-mail by a Notice of Borrowing executed by an authorized officer of MEDSYSTEMS, not later than 11:00 a.m. Eastern Time on any Banking Day on
which a Revolving Loan Advance is requested. Provided 

  

 14 

 
that the Borrowers shall have satisfied all conditions precedent set forth in this Agreement, including the reaffirmation of the representations and
warranties and covenants as required under Article 10 of this Agreement, and the Borrowers shall have sufficient Revolving Loan Borrowing Capacity to permit an Advance under this Agreement in accordance with Section 2.1 of this
Agreement, Lender shall make the Advance to the Borrowers in the amount requested in the Authenticated Record by MEDSYSTEMS in immediately available funds for credit to any account (other than a payroll account) of MEDSYSTEMS as agent
as aforesaid at a bank in the United States of America as MEDSYSTEMS may specify (provided, however, that the Borrowers shall pay Lender its usual and customary fees for such transfer). Lender shall not be responsible for any failure of any
amount so transferred to be credited to any such account, unless such failure is due to Lender’s gross negligence or willful misconduct. 
 2.5 Term Loan. Lender agrees to extend the Term Loan on a joint and several basis to Borrowers on the terms and conditions set forth in this Agreement. The Term Loan will bear interest at the rate and will be repaid as set
forth herein and in the Term Note. 
 2.6 Evidence of Borrowers’ Obligations. 
 (a) Borrowers’ joint and several obligation to pay principal of, and interest on, the Revolving Loan Advances made to Borrowers shall be evidenced
by the Revolving Note. 
 (b) Borrowers’ joint and several obligation to pay principal of, and interest on, the Term Loan shall be
evidenced by the Term Note. 
 (c) In addition to being evidenced by the Revolving Note, all Revolving Loan Advances made by Lender under
the Revolving Loan and all interest due on the Revolving Loan and all other amounts due under the Revolving Loan and this Agreement and all payments made on account of principal and/or interest and/or such other amounts may be entered by Lender on
its records. The aggregate unpaid principal and/or interest and/or other amounts entered and shown on Lender’s records shall further evidence the principal and/or interest and/or other amounts owing and unpaid on the Revolving Loan and this
Agreement. 
 (d) In addition to being evidenced by the Term Note, the Term Loan advance made by Lender under the Term Loan and all interest
due on the Term Loan and all other amounts due under the Term Loan and this Agreement and all payments made on account of principal and/or interest and/or such other amounts may be entered by Lender on its records. The aggregate unpaid principal
and/or interest and/or other amounts entered and shown on Lender’s records shall further evidence the principal and/or interest and/or other amounts owing and unpaid on the Term Loan and this Agreement. 
 2.7 Collections/Balance/Statements, etc. 
 (a) Collection and Remittance. 
 (1) Borrowers agree to and shall establish and maintain, and
hereby permits Lender to establish and maintain, one or more demand deposit accounts in 

  

 15 

 
Lender’s name at one or more other financial institutions of Lender’s choosing. Included in the foregoing is any demand deposit account created and
utilized by Lender by operation of Section 9.20 below because of the existence of any Term Loan Collateral Deficiency. Each such demand deposit account is called a “Blocked Account” in this Agreement. Borrowers
agree that each Blocked Account is owned by Lender and holds funds of Lender and not funds of either Borrower. Each Borrower understands, acknowledges and agrees that it has rights in and to a Blocked Account only to the extent that funds in any
such account exceeds the Obligations after this Agreement has been terminated and the Obligations have been indefeasibly paid in full. Each Borrower hereby authorizes Lender to effect the repayment of the Obligations on a continuing and continual
basis, either daily or on another frequency determined by Lender, by Lender’s transfer, withdrawal or “sweep” of all funds on deposit in the Blocked Accounts. 
 (2) Each Borrower also covenants and agrees that it shall open a Lockbox over which Lender shall have the sole power of withdrawal. On the date hereof,
Lockboxes are maintained as set forth on Schedule 2.6. All proceeds of Collateral whether cash, checks, drafts, notes, acceptances or other forms of payment, if received by either Borrower, shall be received by the applicable Borrower in
trust for Lender, and each Borrower agrees to deliver or cause to be delivered, such payments forthwith, in the identical form in which received, to Lender or to the Lockbox, as Lender shall require from time to time. Collected funds in the Lockbox
shall be swept daily and the proceeds deposited to the Blocked Accounts to be processed against the Obligations as aforesaid or deposited into an account of Lender or of either Borrower as Lender shall elect. 
 (b) Determination of Balance of Revolving Loan. In determining the outstanding balance of the Revolving Loan, (i) available funds in
the Lender’s account at Harris Trust and Savings Bank, Chicago, Illinois 60690, Account Name: Keltic Financial Partners, LP, Account No. 3117009, ABA #071000288 (or such other account as Lender may direct from time to time), before 2 p.m.
Eastern Time of a Banking Day will be credited on that Banking Day, and thereafter on the following Banking Day, and shall be applied to pay late charges, accrued and unpaid interest, principal, escrows (if any), and any other fees, costs and
expenses and other of the Obligations for which Borrowers are obligated to Lender, in such order as Lender may elect from time to time in its sole discretion; (ii) any other form of funds received by Lender will be credited and applied as set
forth above on the Banking Day when Lender has received notification that such funds are collected and available to Lender if before 2 p.m. (Eastern Time), and thereafter on the following Banking Day; (iii) all credits shall be conditional upon
final payment to Lender in cash or solvent credits of the items giving rise to them and, if any item is not so paid, the amount of any credit given for it shall be charged to the balance of the Revolving Loan whether or not the item is returned; and
(iv) for the purpose of computing interest on the Revolving Loan and other Obligations, interest shall continue to accrue on the amount of any payment credited to the Revolving Loan balance by Lender for a period of two (2)Banking Days after
the date so credited. 
 2.8 Payment on Termination Date. Notwithstanding anything herein to the contrary, the entire
outstanding principal balance of the Revolving Loan and the Term Loan, plus all accrued and unpaid interest thereon and all fees and other amounts payable under this Agreement and the Loan Documents, shall be due and payable in full, on the
Termination Date. 
  

 16 

 2.9 Borrowers’ Absolute Guaranty Obligations. 
 (a) Guaranty of Payment. As it relates to each Borrower’s Obligations owed to Lender, the other Borrower hereby absolutely,
unconditionally and irrevocably guarantees to Lender as a primary obligor and not as a mere surety the punctual payment and performance of all those Obligations. 
 (b) Obligations Unconditional. The aforesaid guaranty obligations (the “Guaranty”) shall remain in full force and effect until all Obligations and all sums due hereunder are paid in
full, irrespective of any interruptions in the business relationships of either Borrower with Lender. Each Borrower’s Guaranty hereunder shall not be affected, modified or impaired by any state of facts or the happening from time to time of any
event, including, without limitation, any of the following, whether or not with notice to or the consent of either Borrower: 
  

	 	(1)	the invalidity, irregularity, illegality or unenforceability of, or any defect in any Loan Document or any Collateral; 

  

	 	(2)	any present or future law or order of any government (de jure or de facto) or of any agency thereof purporting to reduce, amend or otherwise affect any Loan Document
or any other obligation of either Borrower or any other guarantor of the Obligations or any other terms of payment; 

  

	 	(3)	Lender’s waiver compromise, settlement, release or termination of any or all of the obligations, covenants or agreements of the other Borrower under any Loan Document or of any
other guarantor of the Obligations or any part thereof, or of any other party who has given collateral as security for the payment of the Obligations or any part thereof 

  

	 	(4)	Lender’s failure to give notice to either Borrower of the occurrence of an event of default under any Loan Document; 

  

	 	(5)	the loss, impairment by Lender, release by Lender (whether with or without consideration), sale, exchange, surrender or other change in any Collateral; 

  

	 	(6)	the extension of the time for payment of any principal of or interest on the Obligations or of the time for performance of any other obligations, covenants or agreements under or
arising out of any Loan Document or the extension or the renewal of any thereof; 

  

 17 

	 	(7)	the modification or amendment (whether material or otherwise) of any obligation, covenant or agreement set forth in any Loan Document; 

  

	 	(8)	the performance of, or the omission to perform, any of the actions referred to in any Loan Document; 

  

	 	(9)	any failure, omission or delay on the part of Lender to enforce, assert or exercise any right, power or remedy conferred on the Lender in any Loan Document;

  

	 	(10)	the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all the assets, marshaling of assets and liabilities, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition with creditors or readjustment of, or other similar proceedings affecting either Borrower or the assets of either of them, or any allegation or
contest of the validity of any Loan Document; 

  

	 	(11)	the default or failure of either Borrower to fully perform any obligations set forth herein; 

  

	 	(12)	any event or action that would, in the absence of this paragraph, result in the release or discharge of either Borrower from the performance or observance of any Guaranty
obligation, covenant or agreement contained herein (other than payment in full of the Obligations or a written release provided by Lender to the applicable Borrower); or 

  

	 	(13)	any other circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or a guarantor. 

 (c) Waiver by the Borrowers (as Guarantors). Each Borrower (in its capacity as a guarantor) hereby waives: 
  

	 	(1)	notice of acceptance of the Guaranty; 

  

	 	(2)	diligence, presentment and demand for payment of any of the Obligations; 

  

	 	(3)	protest and notice of protest, dishonor or default with respect to any sums due under any of the Obligations; 

  

 18 

	 	(4)	any and all notices to which either Borrower (in its capacity as a guarantor) might otherwise be entitled; 

  

	 	(5)	any demand for payment under the Guaranty; 

  

	 	(6)	any and all defenses to payment including, without limitations any defenses and counterclaims of either of the Borrowers or any other guarantor of the Obligations based upon fraud,
negligence or the failure of any condition precedent or claims of offset or defenses involving the invalidity, irregularity or unenforceability of all or any part of the liabilities herein guaranteed or any defense otherwise available to either of
the Borrowers or any other guarantor of the Obligations. 

 Until such time as the Obligations are paid in full and the Lender
has received all other sums due under the terms of the Loan Documents, each Borrower waives any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution or any other claim which either Borrower may now or hereafter have
against the other Borrower or any other person directly or contingently liable for the Obligations guaranteed hereunder, or against or with respect to the property of either Borrower (including, without limitation, property collateralizing the
Obligations), arising from the existence or performance of the Guaranty and whether or not such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise. 
 (d) Nature of Guaranty. The Guaranty is a guaranty of payment and not of collection and each Borrower hereby waives the right to require
that any action be brought first against the other Borrower or any other person directly or contingently liable for the Obligations guaranteed hereunder, or to require that resort be made to any security or to any balance of any deposit account or
credit on the books of Lender in favor of either of the Borrowers or of any other person directly or contingently liable for the Obligations guaranteed hereunder. 
 (e) Continuation of Guaranty. Each Borrower further agrees that the Guaranty obligations hereunder shall continue to be effective or reinstated, as the case may be, if at any time payment or any part
thereof of any sums due under any of the Obligations is rescinded or must otherwise be restored by Lender upon the bankruptcy or reorganization of either of the Borrowers, or any other person directly or contingently liable for the Obligations
guaranteed hereunder, or otherwise. 
 2.10 Subordination of Debt. Each Borrower hereby subordinates to the prior payment of
the Obligations any and all indebtedness now or hereafter owed to it by the other Borrower. Each Borrower also agrees with Lender that, from and after the date whereon Lender notifies such Borrower that an Event of Default has occurred hereunder and
is continuing, such Borrower shall not demand or accept any payment from the other Borrower of any such indebtedness, shall not claim any offset or other reduction of the guarantying Borrower’s liabilities hereunder because of any such
indebtedness and shall not take any action 

  

 19 

 
to obtain any interest in any of the Collateral; provided, however, that, if Lender so requests, such indebtedness shall be collected, enforced and received
by the guarantying Borrower as trustee for Lender and paid over to Lender on account of the Obligations, but without reducing or affecting in any manner the Guaranty liability of the guarantying Borrower under the other provisions of the Guaranty
except to the extent the Obligations shall have been reduced by such payment. 
 3. LENDER’S COMPENSATION. 
 3.1 Interest on Revolving Loan Advances. Borrowers shall pay interest monthly, in arrears, on the first day of each month, commencing
April 1, 2008, on the average daily unpaid principal amount of the Revolving Loan at a fluctuating rate which is equal to the Revolving Loan Interest Rate. Notwithstanding the foregoing, on and after the occurrence of an Event of Default,
Borrowers shall pay interest on the Revolving Loan at a rate which is three and one-half percent (3.5%) per annum above the Revolving Loan Interest Rate; provided, however, in no event shall any interest to be paid under this Agreement
or under any Loan Document exceed the maximum rate permitted by law. 
 3.2 Interest on Term Loan. Borrowers shall pay interest
monthly, in arrears, on the first day of each month, commencing April 1, 2008, on the outstanding unpaid principal amount of the Term Loan at a fluctuating rate which is equal to the Term Loan Interest Rate. Notwithstanding the foregoing, on
and after the occurrence of an Event of Default, Borrowers shall pay interest on the Term Loan at a rate which is three and one-half percent (3.5%) per annum above the Term Loan Interest Rate; provided, however, in no event shall any
interest to be paid under this Agreement or under any Loan Document exceed the maximum rate permitted by law. 
 3.3 Commitment and
Closing Fee. Borrowers shall have paid to Lender on or before the date of this Agreement Forty-Five Thousand and 00/100 Dollars ($45,000.00) as a non-refundable commitment and closing fee. 
 3.4 Facility Fee. Borrowers shall pay to Lender monthly, in arrears, on the first day of each month (commencing on the first day of the
first calendar month after the date hereof), a facility fee in an amount equal to one percent (1%) per annum of the Maximum Facility, which facility fee, despite permitted monthly installment payments, is deemed earned in full for each year on
the date hereof and on each anniversary hereof. 
 3.5 Collateral Management Fee. Borrowers shall pay to Lender monthly, in
arrears, on the first day of each month, commencing on the first day of the first calendar month after the date hereof, a collateral management fee in an amount of One Thousand Two Hundred and Fifty and 00/100 Dollars ($1,250.00). Notwithstanding
the foregoing, on and after the occurrence of an Event of Default, Borrowers shall pay to Lender monthly, in arrears, on the first day of each month, commencing on the first day of the first calendar month after the occurrence of an Event of
Default, a collateral management fee in an amount of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00). 
  

 20 

 3.6 Field Examination/Appraisal Fees. Borrowers shall promptly reimburse Lender for all
costs and expenses associated with periodic field examinations and fixed asset, inventory, real estate and environmental appraisals performed by Lender and its agents, as from time to time deemed necessary by Lender. 
 3.7 Liquidated Damages. If Borrowers prepay the principal of the Revolving Loan to Lender (other than from time to time from working
capital or from proceeds arising from the sale of Inventory and Receivables) or if Borrowers prepay the principal of the Term Loan to Lender (other than required monthly installments of principal) or if the outstanding Obligations become due prior
to the Termination Date for any reason or no reason, Borrowers shall pay to Lender at the time of such prepayment, liquidated damages in an amount equal to: (a) five percent (5%) of the Maximum Facility if the prepayment is made before the
first anniversary of the date hereof; and (b) two percent (2%) of the Maximum Facility if the prepayment is made on or after the first anniversary of the date but before the second anniversary of the date hereof and (c) one percent
(1%) of the Maximum Facility if the prepayment is made on or after the second anniversary of the date but before the third anniversary of the date hereof. Partial prepayments of the Revolving Loan (except as set forth specifically above) and
the Term Loan (except as set forth specifically above) are not allowed. Borrower may not prepay one loan facility without paying the other in full. Borrowers shall give Lender at least ninety (90) days’ advance written notice
(“Termination Notice”) of Borrowers’ election to prepay the Term Loan and to terminate the availability of the Revolving Loan under this Agreement prior to the Termination Date. The Termination Notice shall be irrevocable and
shall specify the effective date of such termination, which effective date shall not be less than ninety (90) days after the giving of the Termination Notice and shall be in no event later than the Termination Date. After the Termination Date,
Lender shall have no obligation to make any Revolving Loan Advance(s) to Borrowers. 
 3.8 Computation of Interest and Fees.
All interest and fees under this Agreement shall be computed on the basis of a year consisting of three hundred sixty (360) days for the number of days actually elapsed. 
 3.9 Payments. All payments with respect to the Obligations shall either be charged by Lender to Borrowers’ account, charged as a
Revolving Loan Advance or made by Borrowers to Lender in U.S. currency and without any defense, offset or counterclaim of any kind, at 580 White Plains Road, Suite 610, Tarrytown, New York 10591, or to such other address as Lender shall specify, by
12:00 noon New York, New York time on the date when due. Whenever any payment to be made shall otherwise be due on a day that is not a Banking Day, such payment shall be made on the next succeeding Banking Day and such extension of time shall be
included in computing interest in connection with any such payment. Lender may make a Revolving Loan Advance to reimburse itself for any payments on the Obligations (including fees and expenses payable by Borrowers), which are not paid when due,
without notice or demand to Borrowers. Any delay or failure by Lender submitting any invoice for such interest or fee or in the making of a Revolving Loan Advance against the Revolving Loan shall not discharge or relieve Borrowers of their
obligation to make such interest or fee payment. 
 4. APPLICATION OF PROCEEDS. The proceeds of the Revolving Loan 

  

 21 

 
Advances shall be used solely by Borrowers to affect the acquisition of certain assets allowed by Section 9.1 below, to repay existing indebtedness
incurred in connection therewith, and for working capital needed in the normal operation of Borrowers’ business. 
 5. INDUCING
REPRESENTATIONS. In order to induce Lender to make the Revolving Loan and the Term Loan, Borrowers make the following representations and warranties to Lender: 
 5.1 Organization and Qualifications.  
 (a) MEDSYSTEMS is a corporation organized and
existing pursuant to the laws of the State of New Jersey having its principal place of business at 575 Route 73 North, Building D, Township of West Berlin, Camden County, New Jersey 08091. MEDSYSTEMS’ federal tax identification number is
22-3212190. Its New Jersey state organizational identification number is 0100541773. On the date hereof, MEDSYSTEMS is not qualified to do business in any state other than the state of New Jersey. 
 (b) PROCATH is a corporation organized and existing pursuant to the laws of the State of New Jersey having its principal place of business at 575
Route 73 North, Building D, Township of West Berlin, Camden County, New Jersey 08091. PROCATH’s federal tax identification number is 22-3261466. Its New Jersey state organizational identification number is 0100568383. On
the date hereof, PROCATH is not qualified to do business in any state other than the state of New Jersey. 
 5.2 Name and
Address.  
 (a) During the preceding five (5) years, MEDSYSTEMS has not been known by nor has used any other name,
whether corporate, fictitious or otherwise, except as set forth on Schedule 5.2 attached hereto. MEDSYSTEMS’ office is at the address set forth above. 
 (b) During the preceding five (5) years, PROCATH has not been known by nor has used any other name, whether corporate, fictitious or otherwise, except as set forth on Schedule 5.2 attached hereto.
PROCATH’s office is at the address set forth above. 
 5.3 Structure. Borrowers have no subsidiaries or Affiliates,
except as set forth on Schedule 5.3 attached hereto. 
 5.4 Legally Enforceable Agreement. The execution, delivery and
performance of this Agreement, each and all of the other Loan Documents and each and all other instruments and documents to be delivered by each Borrower or its Affiliates under this Agreement and the creation of all liens and security interests
provided for herein are within each Borrower’s corporate powers, have been duly authorized by all necessary or proper corporate action (including the consent of shareholders where required), are not in contravention of any agreement or
indenture to which either Borrower is a party or by which it is bound, or of the Certificate of Incorporation or By-Laws of either Borrower, and are not in contravention of any provision of law and the same do not require the consent or approval of
any governmental body, agency, authority or any other Person which has not been obtained and a copy thereof furnished to Lender. 
  

 22 

 5.5 Solvent Financial Condition. Each Borrower is Solvent. 
 5.6 Financial Statements. Borrowers’ internally prepared quarterly year-to-date financial statements for the period ending
September 30, 2007, copies of which have been delivered to Lender, fairly present Borrowers’ financial condition and results of operations as relevant and as of such dates and there have been no material changes since such dates. Borrowers
have no contingent liabilities, liabilities for taxes, unusual forward or long-term commitments, or unrealized or unanticipated losses from any unfavorable commitments, which were not disclosed in such financial statements or the notes thereto.

 5.7 Joint Ventures. Borrowers are not engaged in any joint venture or partnership with any other Person except those set
forth on Schedule 5.7 attached hereto. 
 5.8 Real Estate. Attached hereto as Schedule 5.8 is a list showing all
real property owned or leased by Borrowers, and if leased, the correct name and address of the landlord and the date and term of the applicable lease. 
 5.9 Patents, Trademarks, Copyrights and Licenses. Borrowers own or possess all the patents, trademarks, service marks, trade names, copyrights and licenses necessary for the present and planned future
conduct of its business without any conflict with the rights of others. All such patents, trademarks, service marks, trade names, copyrights, licenses and other similar rights are listed on Schedule 5.9 attached hereto. 
 5.10 Existing Business Relationship. There exists no actual or threatened termination, cancellation or limitation of, or any adverse
modification or change in, the business relationship of either Borrower with any supplier, customer or group of customers whose purchases individually or in the aggregate could have a Material Adverse Effect on either Borrower. 
 5.11 Investment Company Act: Federal Reserve Board Regulations. Neither Borrower is an “investment company”, or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company”, as such terms are defined in the Investment Company Act of 1940, as amended (15 U.S.C. §§ 80(a)(1), et
seq.). The making of the Revolving Loan and the Term Loan under this Agreement by Lender, the application of the proceeds and repayment thereof by Borrowers and the performance of the transactions contemplated by this Agreement will not violate any
provision of such Act, or any rule, regulation or order issued by the Securities and Exchange Commission thereunder. Borrowers do not own any margin security as that term is defined in Regulation U of the Board of Governors of the Federal Reserve
System and the proceeds of the Revolving Loan and the Term Loan made pursuant to this Agreement will be used only for the purposes contemplated under this Agreement. None of the proceeds will be used, directly or indirectly, for the purpose of
purchasing or carrying any margin security or for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase or carry margin security or for any other purpose which might cause either the Revolving Loan and the
Term Loan to be a 

  

 23 

 
“purpose credit” within the meaning of said Regulation U or Regulations T or X of the Federal Reserve Board. Borrowers will not take, or permit any
agent acting on its behalf to take, any action which might cause this Agreement or any document or instrument delivered pursuant hereto to violate any regulation of the Federal Reserve Board. 
 5.12 Tax Returns. Borrowers have filed all tax returns (federal, state or local) required to be filed and paid all taxes shown thereon to
be due including interest and penalties or have provided adequate reserves therefor except where the failure to file any such tax return would not have a Material Adverse Effect. No assessments have been made against Borrowers by any taxing
authority nor has any penalty or deficiency been made by any such authority. To Borrowers’ knowledge, no federal income tax return of Borrowers is presently being examined by the Internal Revenue Service nor are the results of any prior
examination by the Internal Revenue Service or any State or local tax authority being contested by Borrowers. 
 5.13
Litigation. Except as disclosed in Schedule 5.13, no action or proceeding is now pending or, to the knowledge of Borrowers, is threatened against either Borrower at law, in equity or otherwise, before any court, board,
commission, agency or instrumentality of the federal or state government or of any municipal government or any agency or subdivision thereof, or before any arbitrator or panel of arbitrators, and neither Borrower has accepted liability for any such
action or proceeding. Except as disclosed in Schedule 5.13, there is no proceeding pending before any governmental agency (federal, state or local) and, to the best of Borrowers’ knowledge, no investigation has been commenced before any
such governmental agency the effect of which, if adversely decided, would or could, have a Material Adverse Effect. 
 5.14 Receivables
Locations. Annexed hereto as Schedule 5.14 is a list showing all places at which Borrowers maintain, or will maintain, records relating to Receivables. 
 5.15 Inventory Locations. Annexed hereto as Schedule 5.15 is a list showing all places where Borrowers maintain, or will maintain, Inventory. Such list indicates whether the premises are owned or
leased by Borrowers or whether the premises are the premises of a warehouseman or other third party, and if owned by a third party, the name and address of such third party. 
 5.16 Equipment List and Locations. Annexed hereto as Schedule 5.16 is a list showing all of Borrowers’ equipment, and
describing the places where the same is located. Such list indicates whether such premises are owned or leased by the applicable Borrower or whether the premises are the premises of another third party, and if leased, the name and address of such
third party. 
 5.17 Title/Liens. 
 (a) Borrowers have good and marketable title to the Collateral as sole owner thereof. 
  

 24 

 (b) There are no existing liens on any Property of either Borrower except for liens in favor of Lender
and liens described in Schedule 5.17. 
 (c) None of the Collateral is subject to any prohibition against encumbering, pledging,
hypothecating or assigning the same or requires notice or consent in connection therewith. 
 5.18 Existing Indebtedness.
Borrowers do not have any existing Indebtedness except the Indebtedness described in Schedule 5.18. 
 5.19 ERISA
Matters. Borrowers do not maintain any Plan and represents that it will not institute a Plan during the term of this Agreement. 
 5.20 O.S.H.A. Borrowers have duly complied with, and its facilities, business, leaseholds, equipment and other property are in compliance in all respects with, the provisions of the federal Occupational Safety and Health Act
and all rules and regulations thereunder and all similar state and local Governmental Rules except where the failure to comply will not result in a Material Adverse Effect. There are no outstanding citations, notices or orders of non-compliance
issued to Borrowers or relating to their facilities, business, leaseholds, equipment or other property under any such Governmental Rules which have a Material Adverse Effect. 
 5.21 Environmental Matters. 
 (a) (1) No Property owned or used by Borrowers is or has been used by Borrowers for the generation, manufacture, refining, transportation, treatment, storage, handling or disposal of any “hazardous substances” or “hazardous
wastes”. 
 (2) The following are all of the Standard Industrial Classification Codes applicable to the properties and operations of
MEDSYSTEMS: 3841. 
 (3) The following are all of the Standard Industrial Classification Codes applicable to the properties and
operations of PROCATH: 3841. 
 (b) To Borrowers’ knowledge, each Borrower is in compliance with all applicable Environmental
Laws. 
 (c) To Borrowers’ knowledge, there has been no contamination or release of hazardous substances at, upon, under or within any
Property owned or leased by Borrowers. 
 (d) To Borrowers’ knowledge, there are not now and never have been above-ground or
underground storage tanks at any Property owned or leased by Borrowers. 
 (e) To Borrowers’ knowledge, all permits and authorizations
required under Environmental Laws for all operations of Borrowers have been duly issued and are in full force and effect, including but not limited to those for air emissions, water discharges and treatment, storage tanks and the generation,
treatment, storage and disposal of hazardous substances. 
  

 25 

 (f) To Borrowers’ knowledge, there are no past, pending or, to Borrowers’ knowledge,
threatened environmental claims against Borrowers or any Property owned or leased by Borrowers; and to Borrowers’ knowledge, there is no condition or occurrence on any Property owned or leased by Borrowers that could be anticipated (1) to
form the basis of an environmental claim against Borrowers or their properties or (2) to cause any Property owned or leased by Borrowers to be subject to any restrictions on its ownership, occupancy or transferability under any Environmental
Law. 
 (g) To Borrowers’ knowledge, no portion of any Property owned or leased by Borrowers contains asbestos-containing material that
is or threatens to become friable. 
 (h) The representations and warranties set forth in this Section 5.21 shall survive
repayment of the Obligations and the termination of this Agreement and the other Loan Documents. 
 5.22 Labor Disputes. There
are no pending or, to Borrowers’ knowledge, threatened labor disputes which could have a Material Adverse Effect. 
 5.23 Location
of Banking and Securities Accounts. Annexed hereto as Schedule 5.23 is a complete and accurate list of all deposit, checking and other bank accounts, all securities and other accounts maintained with any broker dealer and all other
similar accounts maintained by Borrowers (collectively, “Bank Accounts”), together with a description thereof. 
 5.24
Compliance With Laws. 
 (a) Each Borrower is in compliance with all federal, state and local governmental rules, ordinances
and regulations (“Governmental Rules”) applicable to its ownership or use of properties or the conduct of its business except where the failure to comply will not result in a Material Adverse Effect. 
 (b) On March 26, 2007, the United States Department of Treasury, Office of Foreign Assets Control (“OFAC”) settled claims of
violations by MEDSYSTEMS of the Iranian Transactions Regulations arising out of MEDSYSTEMS’ October 2003 voluntary disclosure that sales of WorkMate brand cardiac monitoring workstations were made during the period October 1999
– March 2004 (the “Iranian Export Violations”) without proper licensing by MEDSYSTEMS’ foreign distributors to hospitals in Iran. Under the settlement agreement order, MEDSYSTEMS’ was required to pay a
$33,000 fine and take compliance steps as follows: 
  

	 	(1)	provide OFAC with a written statement signed by MEDSYSTEMS (A) confirming that MEDSYSTEMS has not been involved in any violation of an OFAC transaction since the
date of the aforesaid voluntary disclosure or (B) detailing any violations by MEDSYSTEMS uncovered since such date; 

  

 26 

	 	(2)	provide a detailed description of the internal control system by which MEDSYSTEMS monitors suspicious activity and ensures that it does not violate any OFAC sanctions.

  

	 	(3)	institute no later May 11, 2007 regular OFAC-compliance training of all staff who oversee high-risk transactions; 

  

	 	(4)	review both the mailing addresses and permanent addresses in MEDSYSTEMS’ client databases to identify OFAC sanctions targets, and if any are found to exist, take
appropriate action with respect thereto in compliance with applicable OFAC Regulations; 

  

	 	(5)	obtain and maintain records of appropriate information about the parties with whom MEDSYSTEMS does business, including locations and ultimate destinations of any export
transactions in which MEDSYSTEMS is involved; 

  

	 	(6)	review all Code W-9 forms, if any, in MEDSYSTEMS’ files to confirm compliance with both Code Regulations and OFAC Regulations; and 

  

	 	(7)	through March 2010, audit its activities for violations of any OFAC sanctions and annually provide to OFAC a written summary of the findings signed by MEDSYSTEMS or it
s duly authorized representative. 

 MEDSYSTEMS represents and warrant that it is in compliance with the OFAC settlement order and a
copy of its required annual OFAC audit summary is attached hereto as Schedule 5.24. Borrowers represent and warrant that there are no OFAC violations have occurred since the date of MEDSYSTEMS’ October 2003 voluntary disclosure.

 (c) On November 3, 2006, the United States Department of Commerce, Bureau of Industry and Safety (“BIS”) entered
into a settlement order with MEDSYSTEMS which settled administrative claims arising out of the Iranian Export Violations. A related criminal investigation commenced by the United States’ Attorney Office of the District of New Jersey
resulted in an advice from such office in March 2006 that a criminal matter would not be prosecuted. A copy of the favorable disposition by the United States’ Attorney Office of the District of New Jersey is attached hereto as Schedule
5.24. Borrowers are not aware of any administrative or criminal investigation proceeding with respect to its sales and that all foreign sales are in compliance with law. 
 (d) The Security and Exchange Commission commenced administrative proceedings to determine whether the Iranian Export Violations constituted federal
security law violations. A copy of the current status of such investigation is attached hereto as Schedule 5.24. 
  

 27 

 5.25 No Other Violations. Neither Borrower is in violation of any term of its Certificate
of Incorporation or By-laws. No event or condition has occurred or is continuing which constitutes or results in (or would constitute or result in, with the giving of notice, lapse of time or other condition) (a) a material breach of, or a
material default under, any agreement, undertaking or instrument to which either Borrower is a party or by which it or any of its Property may be affected, or (b) the imposition of any lien on any Property of either Borrower. 
 5.26 Survival of Representations and Warranties. Each Borrower covenants, warrants and represents to Lender that all of its representations
and warranties contained in this Agreement or in any other Loan Documents shall be true at the time of each Borrower’s execution of this Agreement and the other Loan Documents, and Lender’s right to bring an action for breach of any such
representation or warranty or to exercise any remedy under this Agreement based upon the breach of such representation or warranty shall survive the execution, delivery and acceptance hereof by Lender and the closing of the transactions described
herein or related hereto until the Obligations are finally and irrevocably paid in full. The representations and warranties of each Borrower contained in this Agreement or in any other Loan Documents shall be deemed to be restated and reconfirmed by
Borrowers’ submission of each Borrowing Base Certifications for the duration of the term, or the extended or renewed term or terms hereof. 
 6. FINANCIAL STATEMENTS AND INFORMATION; CERTAIN NOTICES TO LENDER. So long as either Borrower shall have any Obligations to Lender under this Agreement, Borrowers shall deliver to Lender, or shall cause to be delivered to
Lender in form satisfactory to Lender: 
 6.1 Borrowing Base Certificate.  
 (a) Contemporaneously with Each Borrowing Request: Contemporaneously with each request for a Revolving Loan Advance, a satisfactorily completed
and executed Borrowing Base Certificate in the form attached as Exhibit A hereto, together with sales journals, cash receipts journals and detailed sales credit reports (including the reporting required by Section 3.2(c) of the General
Security Agreement); 
 (b) Weekly: Weekly (on or before Tuesday of each week as of the preceding week end), a satisfactorily
completed and executed Borrowing Base Certificate in the form attached as Exhibit A hereto, together with sales journals, cash receipts journals, detailed sales credit reports and an aged detail of accounts receivable and the reporting required by
Section 3.2(c) of the General Security Agreement; 
 (c) Monthly: Monthly (within two (2) days after the end of each
month), a satisfactorily completed and executed Borrowing Base Certificate in the form attached as Exhibit A hereto, together with sales journals, cash receipts journals, detailed sales credit reports and an aged summary of accounts receivable and
the reporting required by Section 3.2(c) of the General Security Agreement. 
  

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 6.2 Monthly Reports. Within fifteen (15) days after the end of each month, a detailed
accounts receivable aging, a detailed accounts payable aging, a summary perpetual inventory report, a collateral update certificate, and a Reconciliation Report of Borrowers for such month, all in form satisfactory to Lender, prepared by the
applicable Borrower and if Lender so requests, customer statements. 
 6.3 Monthly Financial Statements. Within thirty
(30) days after the end of each calendar month, each of the following: 
  

	 	(a)	a copy of Borrowers’ consolidated and consolidating monthly financial statements, internally prepared by Borrowers’ management and substantially in the same form (except
for notes to the financial statements) as required for Borrowers’ annual financial statements and showing Borrowers’ assets and liabilities at the end of said calendar month and year to date and the results of their operations during said
calendar month and year to date, said statements to be certified by the principal financial officer of Borrowers as having been prepared in accordance with GAAP and being correct and complete subject only to year end adjustments; and

  

	 	(b)	the Compliance Certificate. 

 6.4 Quarterly
Financial Statements. Not in limitation of the right of Lender to request other information, as soon as available and in any event within 45 days after the end of each of Borrowers’ first, second and third fiscal quarters, each of the
following: 
  

	 	(a)	Borrowers’ quarterly report on Form 10-Q or, if Borrowers are no longer required to file reports with the Securities and Exchange Commission, their balance sheet (consolidated
and consolidating with each other) as of the end of each such fiscal quarter and year-to-date and their statements of operations (consolidated and consolidating with each other) for such periods, all in reasonable detail and in each case duly
prepared in accordance with GAAP on a review basis by independent certified public accountants of recognized standing acceptable to Lender, substantially in the same form (except for notes to the financial statements), all in reasonable detail and
all being correct and complete in all material respects subject only to year end adjustments; together with; together with 

  

	 	(b)	Borrowers’ consolidating balance sheet as of the end of each such fiscal quarter and year-to-date and Borrowers’ consolidating statements of operations and cash flows for
such periods; together with 

  

	 	(c)	the Compliance Certificate. 

  

 29 

 6.5 Annual Financial Statements. Not in limitation of the right of Lender to request other
information, Borrowers shall deliver to Lender as soon as available and in any event within 120 days after the end of each of Borrowers’ fiscal years, each of the following: 
  

	 	(a)	Borrowers’ annual report on Form 10-K or, if Borrowers are no longer required to file reports with the Securities and Exchange Commission, their annual audit report for such
year (consolidated and consolidating with each other), including therein their balance sheet as of the end of such fiscal year and their statements of operations, cash flows and changes in stockholders’ equity (consolidated and consolidating
with each other) for such fiscal year, setting forth in comparative form the corresponding figures for the preceding fiscal year, prepared in accordance with GAAP, all in reasonable detail and in each case duly certified, without exception, by
independent certified public accountants of recognized standing acceptable to Lender, together with each of the following: 

  

	 	(b)	all accompanying footnotes and a copy of the management letter, if any, issued by such accounting firm; 

  

	 	(c)	Borrowers’ consolidating balance sheet as of the end of each such fiscal year and Borrowers’ consolidating statements of operations and cash flows for such period;
together with 

  

	 	(d)	the Compliance Certificate. 

 6.6
Projections. No later than thirty-one (31) days after the start of each Fiscal Year of Borrowers, monthly financial projections for such fiscal year and annual projections for each succeeding Fiscal Year of Borrowers in form
satisfactory to Lender. 
 6.7 Customer Lists. Semiannually, a list of all of Borrowers’ customers and vendors, including
the addresses, and telephone and facsimile numbers of such customers and vendors which lists shall be delivered within thirty (30) days of the end of the second fiscal quarter of each Fiscal Year and each Fiscal Year end. 
 6.8 Notice of Event of Default and Adverse Business Developments. Immediately after becoming aware of the existence of a Default or
an Event of Default or after becoming aware of any developments or other information which is likely to result in a Material Adverse Effect, including, without limitation, the following: 
 (a) any dispute that may arise between either Borrower and any governmental regulatory body or law enforcement authority, including any action relating
to any tax liability of either Borrower; 
 (b) any labor controversy resulting in or threatening to result in a strike or work stoppage
against either Borrower; 
  

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 (c) any proposal by any public authority to acquire the assets or business of either Borrower;

 (d) the location of any Collateral other than at the applicable Borrower’s place of business or as permitted under this Agreement;

 (e) any proposed or actual change of the applicable Borrower’s name, identity, state of organization or organizational structure; or

 (f) any other matter which has resulted or may result in a Material Adverse Effect. 
 In each case, the applicable Borrower will provide Lender with telephonic notice followed by notice in a Record specifying and describing the nature of
such Default, Event of Default or development or information, and such anticipated effect. 
 6.9 Other Information. Such other
information respecting the financial condition of either Borrower or any Property of either Borrower in which Lender may have a lien as Lender may, from time to time, request. Each Borrower authorizes Lender to communicate directly with each such
Borrower’s independent certified public accountants and authorizes those accountants to provide Lender with financial statements and to discuss with Lender the financial statements and tax information. On or before the date of this Agreement,
each Borrower shall deliver to Lender a letter addressed to such accountants instructing them to comply with the provisions of this Section 6.9, and shall undertake best efforts to have such letter acknowledged by such accountants.

 7. ACCOUNTING. Lender may from time to time render to Borrowers a statement of account with respect to Lender’s records
as to the amounts owed by Borrowers under the Revolving Loan and the Term Loan. Lender may also from time to time otherwise account to Borrowers. Each and every statement of account or other account shall be deemed final, binding and conclusive upon
Borrowers in all respects, as to all matters reflected therein, unless there exists manifest error or unless Borrowers, within thirty (30) days after the date the account was rendered, delivers to Lender notice in a Record of any objections
which Borrowers may have to any such account and in that event only those items expressly objected to in such notice shall be deemed to be disputed. If Borrowers dispute the correctness of any statement, the notice given by Borrowers shall specify
in detail the particulars of the basis for contending that such statement is incorrect. 
 8. AFFIRMATIVE COVENANTS. Each
Borrower represents and warrants that, so long as it shall have any Obligations to Lender under this Agreement, each Borrower will: 
 8.1
Business and Existence. Preserve and maintain the applicable Borrower’s separate existence and rights, privileges and franchises. 
 8.2 Trade Names. Transact business in the applicable Borrower’s own name and invoice all of its receivables in its own name. 
  

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 8.3 Transactions with Affiliates. Whenever the applicable Borrower’s engages in
transactions with any of its Affiliates, conduct the same on an arms-length basis or other basis more favorable to such Borrower. 
 8.4
Taxes. Except as it relates to taxes, assessments, water and sewer rents, and other governmental charges, imposed upon the Mortgaged Premises which shall be governed by the applicable provisions of the Mortgage, pay and discharge all
taxes, assessments, government charges and levies imposed upon the applicable Borrower, its income or its profits or upon any Property belonging to it prior to the date on which penalties attach thereto, except where (a) the failure to pay the
same shall not result in a lien on any Collateral or (b) the failure to pay the same shall not cause or result in a Material Adverse Effect or (c) such taxes, assessments, government charges and levies are less than Five Thousand and
00/100 Dollars ($5,000.00) in the aggregate and the same are being contested in good faith by appropriate proceedings being diligently conducted. 
 8.5 Compliance with Laws. Comply with all Governmental Rules applicable to the applicable Borrower including, without limitation, all laws and regulations regarding the collection, payment and deposit of
employees’ income, unemployment and Social Security taxes except where (a) the failure to so comply shall not result in a lien on any Collateral or (b) the failure to so comply shall not cause or result in a Material Adverse Effect.

 8.6 Maintain Properties; Insurance. Safeguard and protect all Property used in the conduct of the applicable Borrower’s
business (except that the maintenance of the Mortgaged Premises shall be governed by the applicable provisions of the Mortgage), and keep all of such Borrower’s Property insured with insurance companies licensed to do business in the states
where the Property is located against loss or damage by fire or other risk under extended coverage endorsement and against theft, burglary, and pilferage together with such other hazards as Lender may from time to time request, in amounts
satisfactory to Lender. The applicable Borrower shall annually, within thirty (30) days of the renewal date of each applicable policy of insurance, deliver to Lender the policy or policies of such insurance or certificates of insurance or other
evidence of insurance in form and content satisfactory to Lender, all of which shall contain endorsements in form satisfactory to Lender naming Lender as lender loss payee and additional insured and providing that the insurance shall not be
canceled, amended or terminated except upon thirty (30) days’ prior written notice to Lender. All insurance proceeds received by Lender shall be retained by Lender for application to the payment of such portion of the Obligations as Lender
may determine in Lender’s sole and absolute discretion. The applicable Borrower shall promptly notify Lender of any event or occurrence causing a loss or decline in the value of Property insured in excess of Twenty-Five Thousand and 00/100
Dollars ($25,000.00) or the existence of an event justifying a claim under any insurance and the estimated amount thereof. 
 8.7
Business Records. Keep adequate records and books of account with respect to the applicable Borrower’s business activities in which proper entries are made in accordance with sound bookkeeping practices reflecting all financial
transactions of such Borrower; and such Borrower shall maintain all of its Bank Accounts as set forth on Schedule 5.23 of this Agreement. 
  

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 8.8 Litigation. Give Lender prompt notice of any suit at law or in equity against either
Borrower involving money or property valued in excess of Twenty-Five Thousand and 00/100 Dollars ($25,000.00) except where the same is fully covered by insurance and the insurer has accepted liability therefor in writing. 
 8.9 Damage or Destruction of Collateral. Maintain or cause to be maintained the Collateral and all Properties of each Borrower in good
condition and repair at all times, preserve the Collateral and all its other Properties from loss, damage, or destruction of any nature whatsoever and provide Lender with prompt notice in a Record of any destruction or substantial damage to any
Collateral subject to Lender’s security interest having a market value in excess of Twenty-Five Thousand and 00/100 Dollars ($25,000.00) and of the occurrence of any condition or event which has caused, or may cause, loss or depreciation
in the value of any Collateral in excess of Twenty-Five Thousand and 00/100 Dollars ($25,000.00). 
 8.10 Name Change.
Provide Lender with not fewer than thirty (30) days notice in an Authenticated Record prior to any proposed change of name or the creation of any subsidiary. 
 8.11 Access to Books and Records. Provide Lender with such reports and with such access to the applicable Borrower’s books and records and permit Lender to copy and inspect such reports and books
and records all as Lender deems necessary or desirable to enable Lender to monitor the credit facilities extended hereby. Lender may upon prior notice examine and inspect the Inventory, equipment or other Collateral and may examine, inspect and copy
all books and records with respect thereto at any time during the applicable Borrower’s normal business hours. Each Borrower shall maintain full, accurate and complete records respecting Inventory, including a perpetual inventory, and all other
Collateral at all times. Each Borrower will pay all costs to be paid on taxes, assessments, governmental charges or private encumbrances levied, assessed, imposed or payable upon or with respect to the Inventory, equipment or other Collateral or any
part thereof. 
 8.12 Solvent. Continue to be Solvent. 
 8.13 Compliance With Environmental Laws. Comply with all applicable Environmental Laws. 
 8.14 Compliance with ERISA and other Employment Laws. Comply with all applicable provisions of ERISA and the Internal Revenue Code of 1986,
as amended, and any other applicable laws, rules or regulations relating to the compensation of employees and funding of employee pension plans. 
 8.15 Proceeds of Collateral. Forthwith upon receipt, pay to Lender the proceeds of all Collateral, whereupon such proceeds shall be applied to the Obligations in such order and manner as shall be determined in the sole and
absolute discretion of Lender. 
 8.16 Delivery of Documents. Notify Lender if any proceeds of Receivables shall include, or
any of the Receivables shall be evidenced by, notes, trade acceptances or 

  

 33 

 
instruments or documents, or if any Inventory is covered by documents of title or chattel paper, whether or not negotiable, and if required by Lender,
immediately deliver them to Lender appropriately endorsed. Each Borrower waives protest regardless of the form of the endorsement. If either Borrower fails to endorse any instrument or document, Lender is authorized to endorse it on the applicable
Borrower’s behalf. 
 9. NEGATIVE COVENANTS. So long as Borrowers shall have any Obligation to Lender under this Agreement
and unless Lender has first consented thereto in an Authenticated Record, Borrowers shall not in the collective aggregate: 
 9.1
Indebtedness. Create, incur, assume or suffer to exist, voluntarily or involuntarily, any Indebtedness, except (i) Obligations to Lender, (ii) trade debt incurred in the ordinary course of the applicable Borrower’s
respective business; (iii) purchase money financing and equipment leases not to exceed Twenty-Five Thousand and 00/100 Dollars ($25,000.00) in any Fiscal Year in the aggregate for Borrowers; and (iv) existing Indebtedness described
in Section 5.18 and/or on Schedule 5.18 related thereto. 
 9.2 Mergers; Consolidations; Acquisitions. Enter
into any merger, consolidation, reorganization or recapitalization with any other Person; take any steps in contemplation of dissolution or liquidation; conduct any part of its business through any corporate subsidiary, unincorporated association or
other Person; acquire the stock or assets of any Person, whether by merger, consolidation, purchase of stock or otherwise; or acquire all or any substantial part of the properties of any Person. 
 9.3 Sale or Disposition. Except for the contemplated sale of MEDSYSTEMS’ ALERT catheter product line to a European entity and
except as it relates to the removal of fixtures on the Mortgaged Premises which shall be governed by the applicable provisions of the Mortgage, sell or dispose of all or any Properties or grant any Person an option to acquire any such Property,
provided, however, that the foregoing shall not prohibit sales of Inventory in the ordinary course of the applicable Borrower’s business or dispositions of obsolete Inventory not included as Eligible Inventory in Borrowers’ reports to
Lender or obsolete Equipment. 
 9.4 Defaults. Permit any landlord, mortgagee, trustee under deed of trust or lienholder to
declare a default under any lease, mortgage, deed of trust or lien on real estate owned or leased by either Borrower, which default remains uncured after any stated cure period or for a period in excess of thirty (30) days from its occurrence,
whichever is less, unless such default is being contested by the applicable Borrower in good faith by appropriate proceedings being diligently conducted. 
 9.5 Limitations on Liens. Except as it relates to any mortgage, pledge, lien, security interest (including, without limitation, a purchase money security interest), encumbrance, attachment, levy,
distraint or other judicial process on or against the Mortgaged Premises which shall be governed by the applicable provisions of the Mortgage, suffer any lien, encumbrance, mortgage or security interest (other than liens created hereunder or liens
relating to Indebtedness contemplated by Section 9.1 above) on any of its property, except such liens as appear on Schedule 5.17 attached hereto, if any, and any renewals, extensions or modifications thereof. 
  

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 9.6 Dividends and Distributions. Pay any cash dividends, make any capital distribution in
cash or other Property or return of capital, or purchase or redeem any of its stock or other securities, or retire any of its stock, or take any action which would have an effect equivalent to any of the foregoing. 
 9.7 Borrowers’ Names and Offices. Transfer either Borrower’s chief executive office or change its organizational name or office
where it maintains its records (including computer printouts and programs) with respect to Receivables or any other Collateral, except with Lender’s prior consent in an Authenticated Record. 
 9.8 Fiscal Year. Change its Fiscal Year. 
 9.9 Change of Control/Management. Have (a) a chief executive officer other than David Bruce or David Jenkins or another qualified chief executive officer that is reasonably acceptable to Lender and
is employed in such capacity, whether temporary or permanent, within sixty (60) days after his or her predecessor ceases to act in that capacity or (b) have a chief financial officer other than James Caruso or another qualified chief
financial officer that is reasonably acceptable to Lender and is employed in such capacity, whether temporary or permanent, within sixty (60) days after his or her predecessor ceases to act in that capacity. 
 9.10 Guaranties; Contingent Liabilities. Assume, guarantee, endorse, contingently agree to purchase or otherwise become liable upon the
obligation of any Person, except by the endorsement of negotiable instruments for deposit or collection or similar transactions in its ordinary course of business as currently conducted. 
 9.11 Removal of Collateral. Except as it relates to the removal of fixtures on the Mortgaged Premises which shall be governed by the
applicable provisions of the Mortgage, remove, or cause or permit to be removed, any of the Collateral or other Property from the premises where such Collateral or Property is currently located and as set forth on Schedule 5.14, Schedule
5.15 or Schedule 5.16 of this Agreement, except for sales of Inventory in the ordinary course of business or dispositions of obsolete Inventory not included as Eligible Inventory in Borrowers’ reports to Lender or obsolete Equipment.

 9.12 Transfer of Notes or Instruments. Sell, assign, transfer, discount or otherwise dispose of any promissory note or other
instrument payable to it with or without recourse except in accordance with Section 8.16 and except Borrowers’ endorsements of checks in the ordinary course of business and necessary for collection for the benefit of Borrowers
and/or Lender. 
 9.13 Settlements. Compromise, settle or adjust any claim relating to any of the Collateral unless
specifically allowed by the General Security Agreement. 
  

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 9.14 Change of Business. Cause or permit a change in the nature of its business as
conducted on the date of this Agreement. 
 9.15 Change of Accounting Practices. Change the applicable Borrower’s present
accounting principles or practices in any respect, except that upon notice to Lender in a Record Borrowers may change their accounting principles or practices consistent with GAAP. 
 9.16 Inconsistent Agreement. Enter into any agreement containing any provision which would be violated by the performance of
Borrowers’ Obligations or other obligations under this Agreement or any other Loan Document. 
 9.17 Loan or Advances.
Make any loans or advances to any Person, including without limitation any Affiliate of either Borrower or any stockholder or employee of any of the foregoing, other than travel advances and loans to its employees for expenses incurred in the
ordinary course of business. 
 9.18 Investments. Make any investment in any Person including, without limitation, any
Affiliate of either Borrower. 
 9.19 Affiliates or Subsidiaries. Form any Affiliates or subsidiaries not existing on the date
hereof. 
 9.20 Term Loan Collateral Deficiency. 
 (a) Lender will test for the existence of a Term Loan Collateral Deficiency on each day, whether or not a Borrowing Base Certificate is submitted by Borrowers. 
 (b) In the event that a Term Loan Collateral Deficiency exists at any time, Borrowers hereby authorize Lender to retain from the cash proceeds
collected from Borrowers’ Account Debtors an amount equal to such Term Loan Collateral Deficiency (such cash amount, as from time to time determined, being the “Cash Collateral”). Lender will retain the Cash Collateral
as pledged collateral (the “Pledge of Cash Collateral”) in a specially designated Blocked Account maintained by Lender in the name of Lender at a financial institution acceptable to Lender and otherwise satisfactory to Lender in all
respects to secure the payment of the Obligations until such time that as the Cash Collateral, or a portion thereof, is no longer needed to cure the applicable Term Loan Collateral Deficiency. At such time, that portion of the Cash Collateral
no longer needed to cure the applicable Term Loan Collateral Deficiency will be released to Borrowers so long as no Default or Event of Default has occurred hereunder. If Lender is for any reason unable to retain or maintain any required
Cash Collateral or Pledge of Cash Collateral, Borrowers shall immediately make payment to Lender in the amount of the required Cash Collateral. If Borrowers fail to do so after demand made by Lender, an Event of Default will
have occurred under this Agreement. 
 9.21 Limitation on Transactions with Affiliates or Subsidiaries. Borrowers will not
transact any business with any Affiliate or any Subsidiary in an amount which exceeds $200,000 in the aggregate during calendar year 2008. After calendar year 2008, Borrowers will not transact any business with any Affiliate or any Subsidiary.

  

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 9.22 EBITDA. Permit Borrowers’ EBITDA to be less than the following as at each testing
date set forth below, compliance for this covenant to be determined based on the consolidated performance of both Borrowers for the applicable fiscal quarter without regard to Borrowers’ cumulative performance for the fiscal year to date:

  

			
	 Amount
	  	 Time Period

	 (negative) $1,500,000
	  	as at March 31, 2008
		
	 (negative) $2,500,000
	  	for the period from January 1, 2008, to and including June 30, 2008
		
	 (negative) $3,000,000
	  	for the period from January 1, 2008, to and including September 30, 2008
		
	 (negative) $3,000,000
	  	for the period from January 1, 2008, to and including December 31, 2008
		
	 (negative) $2,000,000
	  	as at March 31, 2009 (based on a trailing 12 months)
		
	 (negative) $750,000
	  	as at June 30, 2009 (based on a trailing 12 months)
		
	 (negative) $250,000
	  	as at September 30, 2009 (based on a trailing 12 months)
		
	 (positive) $250,000
	  	as at December 31, 2009 (based on a trailing 12 months)
		
	 (positive) $750,000
	  	as at March 31, 2010, and as at each June 30, September 30, December 31 and March 31 thereafter (based on a trailing 12 months as at each such March 31, June 30, September 30, and December 31)

  

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 9.23 Capital Expenditures. Make or agree to make Capital Expenditures determined based on
the consolidated financial statements of both Borrowers, without regard to any Affiliate or Subsidiary of either Borrower, in an amount which exceeds $500,000 during any one Fiscal Year. 
 10. CONDITIONS TO REVOLVING LOAN ADVANCES. 
 10.1 Lender’s Right to Take Certain Actions. Lender’s obligation to make any Revolving Loan Advance is subject to the condition that, as of the date of the Revolving Loan Advance, no Default or
Event of Default shall have occurred and be continuing and that the matters set forth in Section 5 of this Agreement and the representations and covenants set forth in the other Loan Documents continue to be true and complete.
Borrowers’ acceptance of each Revolving Loan Advance under this Agreement shall constitute a confirmation binding on Borrowers, as of the date of the Revolving Loan Advance, of the matters set forth in Section 5 of this Agreement,
of the representations and covenants set forth in the other Loan Documents, and that no Default or Event of Default then exists. If requested by Lender, Borrowers shall further confirm such matters by delivery of a Record dated the day of the
Revolving Loan Advance and signed by an authorized officer of Borrowers. 
 11. TERM. Unless sooner terminated by Lender
pursuant to the terms of this Agreement, the period during which the Revolving Loan shall be available shall initially be a period commencing on the date hereof and concluding on the Termination Date. 
 12. EVENTS OF DEFAULT. 
 12.1
Defaults. The occurrence of any one or more of the following shall constitute an “Event of Default”: 
 (a) if
either Borrower shall fail to make any payment when due on any Obligation under this Agreement or any other Loan Document; or 
 (b) if
either Borrower shall fail to comply with any term, condition, covenant, warranty or representation contained in Section 6.1, Section 6.2, Section 6.8, Section 8.1, Section 8.4, Section 8.6, Section 8.11,
Section 8.15, Section 9.1, Section 9.2, Section 9.3, Section 9.5, Section 9.7, Section 9.10, Section 9.11, Section 9.12, Section 9.22 and Section 9.23 of this Agreement; or 
 (c) if either Borrower shall fail to comply with any term, condition, covenant, warranty or representation contained in Articles 6, 8 or 9 of
this Agreement (other than those set forth in subsection (b) above which are governed by said subsection (b)), provided, however, that if the applicable Borrower’s failure is capable of cure, Lender will provide such Borrower notice and 5
days opportunity to cure before an Event of Default is deemed to exist, provided further however that Lender will not be required to provide the foregoing notice and opportunity to cure, together with any similar notice and opportunity to cure
required under any other subsection of this Section 12.1 or under any other Loan Document, more than twice in any one calendar year; or 
  

 38 

 (d) if either Borrower shall fail to comply with any term, condition, covenant or warranty of or in this
Agreement other than in Articles 6, 8 or 9 of this Agreement, and such failure continues for a period in excess of fifteen (15) days after the earlier of (1) Borrowers’ knowledge that a default exists or (2) notice thereof
is given by Lender to the applicable Borrower; or 
 (e) if either Borrower shall fail to comply with any term, condition, covenant,
warranty or representation contained in any of the other Loan Documents or any other agreement between Lender and the applicable Borrower and such failure continues beyond any applicable grace or notice period; or 
 (f) if either Borrower shall cease to be Solvent, make an assignment for the benefit of its creditors, call a meeting of its creditors to obtain any
general financial accommodation, suspend business or if any case under any provision of the Bankruptcy Code including provisions for reorganizations, shall be commenced by or against either Borrower or if a receiver, trustee or equivalent officer
shall be appointed for all or any of the Properties of either Borrower; or 
 (g) if any statement or representation contained in any
financial statement or certificate delivered by either Borrower to Lender shall be false, in any material respect, when made, or if of a continuing nature, becomes materially false; to the extent that any aforementioned statement or representation
is made to the best of the information, knowledge or belief of Borrowers but the underlying statement or representation is nonetheless false or misleading in any material respect, an Event of Default will be deemed to have occurred hereunder if
Borrowers fail to correct the condition underlying the statement or representation within twenty (20) days after notice from Lender to do so; or 
 (h) if Borrowers’ independent public accountants shall refuse to deliver any financial statement required by this Agreement; or 
 (i) if a judgment (other than a judgment where the claim is fully covered by insurance and the insurance company has accepted liability therefore in writing) shall be entered against either Borrower in any action or
proceeding and shall not be stayed, vacated, bonded, paid or discharged within twenty (20) days after the earlier of (1) Borrowers’ knowledge that the judgment has been entered or (2) notice thereof is given by Lender to the
applicable Borrower, it being understood that an Event of Default will have occurred only after the expiration of the aforesaid 20-day period, provided further however that Lender will not be required to provide the foregoing 20-day period, together
with any similar notice or similar time period for cure required under any other subsection of this Section 12.1 or under any other Loan Document, more than twice in any one calendar year; or 
 (j) if any obligation of either Borrower in respect of any Indebtedness (other than Indebtedness to Lender) exceeding in the aggregate Fifty Thousand
and 00/100 Dollars ($50,000.00) shall be declared to be or shall become due and payable prior to its stated maturity or such obligation shall not be paid as and when the same becomes due and payable; or there shall occur any event or condition
which constitutes an event of default under any mortgage, indenture, instrument, agreement or evidence of Indebtedness relating to any 

  

 39 

 
obligation of either Borrower in respect of any such Indebtedness the effect of which is to permit the holder or the holders of such mortgage, indenture,
instrument, agreement or evidence of Indebtedness, or a trustee, agent or other representative on behalf of such holder or holders, to cause the Indebtedness evidenced thereby to become due prior to its stated maturity; or 
 (k) the occurrence and continuance of any Material Adverse Effect, provided, however, that if the Material Adverse Effect is capable of cure, Lender
will provide Borrowers notice and 5 days opportunity to cure before an Event of Default is deemed to exist, provided further however that Lender will not be required to provide the foregoing notice and opportunity to cure, together with any similar
notice and opportunity to cure required under any other subsection of this Section 12.1 or under any other Loan Document, more than twice in any one calendar year. 
 Upon any Event of Default, Lender may terminate this Agreement without prior notice or demand to either Borrower or may demand payment in full of all
Obligations (whether otherwise then payable on demand or not) without terminating this Agreement and upon the occurrence of any Event of Default or event which the giving of notice or passage of time would become such an Event of Default, shall, in
any event, be under no further responsibility to extend any credit or afford any financial accommodation to either Borrower, whether under this Agreement or otherwise. 
 12.2 Obligations Immediately Due. Upon the Termination Date, all of Borrowers’ Obligations to Lender including, but not limited to, the Revolving Loan and the Term Loan shall immediately become due
and payable without further notice or demand. 
 12.3 Continuation of Security Interests. Notwithstanding any termination,
until all Obligations of Borrowers shall have been fully paid and satisfied, Lender shall retain all security in and title to all existing and future Collateral held by Lender under the General Security Agreement or under any other Loan Document and
Borrowers shall continue to assign Receivables and consign Inventory to Lender and continue to turn over all proceeds of Collateral to Lender. 
 13. REMEDIES OF LENDER. Upon the occurrence of any Event of Default or upon any termination of this Agreement, then Lender shall have, in addition to all of its other rights under this Agreement all of the rights and remedies
provided in the General Security Agreement. 
 14. GENERAL PROVISIONS. 
 14.1 Rights Cumulative. Lender’s rights and remedies under this Agreement shall be cumulative and non-exclusive of any other rights or
remedies which Lender may have under any other agreement or instrument, by operation of law or otherwise. 
 14.2 Successors and
Assigns. This Agreement is entered into for the benefit of the parties hereto and their successors and assigns. It shall be binding upon and shall inure to the benefit of the parties, their successors and assigns. Lender shall have the
right, without the necessity of any further consent or authorization by Borrowers, to sell, assign, securitize or 

  

 40 

 
grant participation in all, or a portion of, Lender’s interest in the Revolving Loan and the Term Loan, to other financial institutions of the
Lender’s choice and on such terms as are acceptable to Lender in its sole discretion. Lender shall give Borrowers notice of any such sale, assignment or participation. 
 14.3 Notice. Wherever this Agreement provides for notice to any party (except as expressly provided to the contrary), it shall be given by
messenger, facsimile, certified U.S. mail with return receipt requested, or nationally recognized overnight courier with receipt requested, effective when either received or receipt rejected by the party to whom addressed, or by electronic mail, and
shall be addressed as follows, or to such other address as the party affected may hereafter designate (notices sent to MEDSYSTEMS will be deemed to be notices sent to PROCATH, without need for a separate notice to be sent to
PROCATH): 
  

					
	 If to Lender:
	  	Keltic Financial Partners, LP
		  	Attn: John P. Reilly, Managing Partner
		  	580 White Plains Road
		  	Suite 610
		  	Tarrytown, New York 10591
		  	Telephone:	  	914-921-3555 (ext. 208)
		  	Facsimile:	  	914-921-1154
		  	E-mail:	  	both of aliobis@kelticfinancial.com and
		  		  	jreilly@kelticfinancial.com
		
	 With a copy to:
	  	Lender’s counsel:
		  	Meyner and Landis, LLP
		  	Suite 2500
		  	One Gateway Center
		  	Newark, New Jersey 07102
		  	 Attn: John N. Malyska, Esq.

		  	Telephone:	  	973-624-2800 Ext. 442
		  	Facsimile:	  	973-624-0356
		  	E-mail:	  	jmalyska@meyner.com
		
	 If to Borrowers:
	  	EP MEDSYSTEMS, INC.
		  	575 Route 73 North
		  	Building D
		  	West Berlin, New Jersey 08091
		  	 Attn: James Caruso, CFO

		  	Telephone:	  	856-753-8533
		  	Facsimile:	  	856-753-8544
		  	E-mail:	  	jcaruso@epmedsystems.com
		
	 With a copy to:
	  	Borrowers’ counsel:
		  	Morgan Lewis & Bockius LLP
		  	1701 Market Street
		  	Philadelphia, Pennsylvania 19103
		  	 Attn: Joanne R. Soslow, Esq.

		  	 Telephone:
	  	 215-963-5262

		  	 Facsimile:
	  	 215-963-5001

		  	 E-mail:
	  	 jsoslow@morganlewis.com

  

 41 

 14.4 Strict Performance. The failure, at any time or times hereafter, to require strict
performance by Borrowers of any provision of this Agreement shall not waive, affect or diminish any right of Lender thereafter to demand strict compliance and performance therewith. Any suspension or waiver by Lender of any Default or Event of
Default by Borrowers under this Agreement or any other Loan Document shall not suspend, waive or affect any other Default or Event of Default by Borrowers under this Agreement or any other Loan Document, whether the same is prior or subsequent
thereto and whether of the same or a different type. 
 14.5 Waiver. Each Borrower waives presentment, protest, notice of
dishonor and notice of protest upon any instrument on which it may be liable to Lender as maker, endorser, guarantor or otherwise. 
 14.6
Construction of Agreement. The parties hereto agree that the terms and language of this Agreement were the result of negotiations between the parties, and, as a result, there shall be no prescription that any ambiguities in this
Agreement shall be resolved against any party. Any controversy over the construction of this Agreement shall be decided mutually without regard to events of authorship or negotiation. 
 14.7 Expenses. If, at any time or times prior or subsequent to the date hereof, regardless of whether or not a Default or an Event of
Default then exists or any of the transactions contemplated under this Agreement are concluded, Lender employs counsel for advice or other representation, or incurs legal expenses, or consulting fees and expenses, or other costs or out-of-pocket
expenses in connection with: (A) the negotiation and preparation of this Agreement or any other Loan Document, or any amendment of or modification of this Agreement or any other Loan Document; (B) the administration of this Agreement or
any of the other Loan Documents and the transactions contemplated hereby and thereby; (C) periodic audits and appraisals performed by Lender; (D) any litigation, contest, dispute, suit, proceeding or action (whether instituted by Lender,
either Borrower or any other Person) in any way relating to the Collateral, this Agreement or any other Loan Document or either Borrower’s affairs; (E) the perfection of any lien on the Collateral; (F) any attempt to enforce any
rights or remedies of Lender against either Borrower or any other Person which may be obligated to Lender by virtue of this Agreement or any other Loan Document including, without limitation, the Account Debtors; or (G) any attempt to inspect,
verify, protect, preserve, restore, collect, sell, liquidate or otherwise dispose of or realize upon the Collateral; then, in any such event, the reasonable attorneys’ fees and expenses arising from such services and all expenses, costs,
charges and other fees of such counsel of Lender or relating to any of the events or actions described in this Section 14.7 shall be payable by Borrowers to Lender, and shall be additional Obligations under this Agreement secured by the
Collateral. Additionally, if any taxes (excluding taxes imposed upon or measured by the net income of Lender, but including any intangibles tax, stamp tax or recording tax) shall be payable on account of the execution or delivery of this Agreement,
or the execution, delivery, issuance or recording of any other Loan 

  

 42 

 
Document, or the creation of any of the Obligations under this Agreement, by reason of any existing or hereafter enacted federal or state statute, each
Borrower will pay (or will promptly reimburse Lender for the payment of) all such taxes including, but not limited to, any interest and penalties thereon, and will indemnify, defend and hold Lender harmless from and against any liability in
connection therewith. Borrowers shall also reimburse Lender for all other expenses incurred by Lender in connection with the transactions contemplated under this Agreement or the other Loan Documents, including, without limitation, fees in
connection with any bank account, the Lockbox, wire charges, automatic clearing house fees and other similar costs and expenses. 
 14.8
Reimbursements Charged to Revolving Loan. With respect to any amount advanced by Lender and required to be reimbursed by Borrowers pursuant to the foregoing provisions of Section 14.7, it is hereby agreed that Lender may
charge any such amount to the Revolving Loan on the dates such reimbursement is made. Each Borrower’s obligations under Section 14.7 are joint and several and shall survive termination of the other provisions of this Agreement.

 14.9 Waiver of Right to Jury Trial. 
 (a) Borrowers and Lender recognize that in matters related to the Loan and this Agreement, and as it may be subsequently modified and/or amended, any such party may be entitled to a trial in which matters of fact are
determined by a jury (as opposed to a trial in which such matters are determined by a federal or state judge). By execution of this Agreement, Lender and Borrowers will give up their respective right to a trial by jury. Borrowers and Lender each
hereby expressly acknowledged that this waiver is entered into to avoid delays, minimize trial expenses, and streamline the legal proceedings in order to accomplish a quick resolution of claims arising under or in connection with the Revolving Note
and this Agreement. 
 (b) WAIVER OF JURY TRIAL. TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, BORROWERS AND LENDER EACH HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT THAT EITHER BORROWERS OR LENDER MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION, DIRECTLY OR INDIRECTLY, AT ANY TIME ARISING OUT OF, UNDER, OR IN CONNECTION WITH THE REVOLVING LOAN,
THIS AGREEMENT, OR ANY TRANSACTION CONTEMPLATED THEREBY OR HEREBY, BEFORE OR AFTER MATURITY. 
 (c) CERTIFICATIONS. EACH
BORROWER HEREBY CERTIFIES THAT NEITHER ANY REPRESENTATIVE NOR AGENT OF LENDER NOR LENDER’S COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. EACH
BORROWER ACKNOWLEDGES THAT LENDER HAS BEEN INDUCED TO ENTER INTO THE TRANSACTION BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATION HEREIN. 
  

 43 

 14.10 Indemnification by Borrowers/Waiver of Claims. Each Borrower hereby covenants and
agrees to indemnify, defend (with counsel selected by Lender) and hold harmless Lender and its officers, partners, employees, consultants and agents from and against any and all claims, damages, liabilities, costs and expenses (including, without
limitation, the actual fees and expenses of counsel) which may be incurred by or asserted against Lender or any such other Person in connection with: 
 (a) any investigation, action or proceeding arising out of or in any way relating to this Agreement, any of the Revolving Loan and the Term Loan, any of the other Loan Documents, any other agreement relating to any of
the Obligations, any of the Collateral, or any act or omission relating to any of the foregoing; or 
 (b) any taxes, liabilities, claims or
damages relating to the Collateral or Lender’s liens thereon; or 
 (c) the correctness, validity or genuineness of any instrument or
document that may be released or endorsed to either Borrower by Lender (which shall automatically be deemed to be without recourse to Lender in any event), or the existence, character, quantity, quality, condition, value or delivery of any goods
purporting to be represented by any such documents; or 
 (d) any broker’s commission, finder’s fee or similar charge or fee in
connection with the Revolving Loan and the transactions contemplated in this Agreement. 
 Notwithstanding anything contained herein to the contrary, the
foregoing indemnity obligations shall not apply to any claims, damages, liabilities, costs and costs attributable to Lender’s willful misconduct. 
 14.11 Savings Clause for Indemnification. To the extent that the undertaking to indemnify, pay and hold harmless set forth in Section 14.10 above may be unenforceable because it is violative
of any law or public policy, Borrowers shall contribute the maximum portion which it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all matters referred to under Section 14.10. 
 14.12 Waiver. To the extent permitted by applicable law, no claim may be made by Borrowers or any other Person against Lender or any of its
Affiliates, partners, officers, employees, agents, attorneys or consultants for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract, tort or any other theory of liability arising out of or related
to the transactions contemplated by this Agreement or the other Loan Documents or any act, omission or event occurring in connection therewith; and each Borrower hereby waives, releases and agrees not to sue upon any claim for any such damages,
whether or not accrued and whether or not known or suspected to exist in its favor. Neither Lender nor any of its Affiliates, partners, officers, employees, agents, attorneys or consultants shall be liable for any action taken or omitted to be taken
by it or them under or in connection with this Agreement or the transactions contemplated hereby, except for its or their own negligence or willful misconduct. 
  

 44 

 14.13 Entire Agreement; Amendments; Lender’s Consent. This Agreement (including the
Exhibits and Schedules thereto) and the other Loan Documents supersede, with respect to their subject matter, all prior and contemporaneous agreements, understandings, inducements or conditions between the respective parties, whether express or
implied, oral or written. No amendment or waiver of any provision of this Agreement or any other Loan Document, nor consent to any departure by either Borrower therefrom, shall in any event be effective unless the same shall be in a Record
Authenticated by Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
 14.14 Cross Default; Cross Collateral. Each Borrower hereby agrees that (a) all other agreements between either Borrower and Lender are hereby amended so that an Event of Default under this
Agreement is an Event of Default under all such other agreements and an Event of Default under any one of the other agreements is an Event of Default under this Agreement, and (b) the Collateral under this Agreement secures the Obligations now
or hereafter outstanding under all other agreements between either Borrower and Lender and the Collateral pledged under any other agreement with Lender secures the Obligations under this Agreement. 
 14.15 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute but one and the same agreement. 
 14.16 Severability of
Provisions. Any provision of this Agreement or any of the other Loan Documents that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions of this Agreement or the other Loan Documents or affecting the validity or enforceability of such provision in any other jurisdiction. 
 14.17 Table of Contents; Headings. The table of contents and headings preceding the text of this Agreement are inserted solely for
convenience of reference and shall not constitute a part of this Agreement or affect its meaning, construction or effect. 
 14.18
Exhibits and Schedules. All of the Exhibits and Schedules to this Agreement are hereby incorporated by reference herein and made a part hereof. 
 15. GOVERNING LAW; CONSENT TO JURISDICTION. 
 15.1 THIS AGREEMENT WAS NEGOTIATED IN THE STATE
OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY BORROWERS IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE REVOLVING NOTE AND THE TERM NOTE DELIVERED PURSUANT THERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A
SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREIN, AND IN ALL RESPECTS, INCLUDING MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY,
AND 

  

 45 

 
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAW OF THE UNITED
STATES OF AMERICA EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING
TO THE LAW OF THE STATE IN WHICH THE APPLICABLE INDIVIDUAL PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE VALIDITY AND THE ENFORCEABILITY OF
ALL LOAN DOCUMENTS AND ALL OF THE INDEBTEDNESS OR OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, LENDER AND BORROWERS HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER
JURISDICTION GOVERNS THIS AGREEMENT, THE REVOLVING NOTE AND THE TERM NOTE; AND THIS AGREEMENT, THE REVOLVING NOTE AND THE TERM NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 15.2 ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR EITHER BORROWER, ANY GUARANTOR OR OTHER PARTY TO THIS TRANSACTION ARISING OUT OF OR RELATING
TO THIS AGREEMENT SHALL BE INSTITUTED IN THE SOLE OPTION OF LENDER IN ANY FEDERAL OR STATE COURT LOCATED IN WESTCHESTER COUNTY, NEW YORK, PURSUANT TO § 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND LENDER AND BORROWERS WAIVE ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND LENDER AND EACH BORROWER HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. EACH BORROWER SHALL
DESIGNATE FROM TIME TO TIME AN AUTHORIZED AGENT HAVING AN OFFICE IN THE STATE OF NEW YORK TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT
LOCATED IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SUCH AGENT AT SUCH ADDRESS AND WRITTEN NOTICE OF SUCH SERVICE ON SUCH BORROWER MAILED OR DELIVERED TO SUCH BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT
EFFECTIVE SERVICE OF PROCESS UPON SUCH BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. EACH BORROWER (1) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGE OF ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (2) MAY AT
ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH OFFICE SHALL BE DESIGNATED AS THE ADDRESS FOR SERVICE OF PROCESS), AND (3) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS
AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN WESTCHESTER COUNTY, NEW YORK OR IS DISSOLVED WITHOUT 

  

 46 

 
LEAVING A SUCCESSOR. EACH BORROWER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS CONSENT TO JURISDICTION PROVISION WITH ITS LEGAL COUNSEL, AND HAS MADE
THIS WAIVER KNOWINGLY AND VOLUNTARILY. 
 THIS IS THE LAST PAGE OF THIS DOCUMENT. 
 THE NEXT PAGE IS THE SIGNATURE PAGE. 
  

 47 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their officers
thereunto duly authorized on the day and year first above written. 
  

							
		 		 	 KELTIC FINANCIAL PARTNERS, LP

				
		 		 	 By:
	 	Keltic Financial Services LLC,
		 		 		 	its general partner
				
		 		 	 By:
	 	 /s/ John P. Reilly

		 		 		 	John P. Reilly
		 		 		 	Managing Partner
			
	 WITNESS AS TO BOTH:
	 		 	 EP MEDSYSTEMS, INC.

				
	 /s/ David I. Bruce
	 		 	By:	 	 /s/ James J. Caruso

	 David I. Bruce
	 		 		 	James J. Caruso
			
		 		 	 PROCATH CORPORATION

				
		 		 	 By:
	 	 /s/ James J. Caruso

		 		 		 	James J. Caruso

  

 48

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