Document:

Exhibit 10.26 

 

Execution Version

 

PLEDGE AND SECURITY AGREEMENT

 

This PLEDGE AND SECURITY
AGREEMENT, dated as of April 12, 2019 (this “Agreement”), is made by each of the Loan Parties party hereto (each
a “Grantor” and collectively, the “Grantors”), in favor of Citizens Bank, N.A. (“Citizens
Bank”), in its capacity as collateral agent for the Secured Parties referred to below (in such capacity, together with
its successors and assigns in such capacity, if any, the “Collateral Agent”).

 

WITNESSETH:

 

WHEREAS, Limbach Holdings,
Inc., a Delaware corporation (“Ultimate Parent”), Limbach Holdings LLC, a Delaware limited liability company
(“Parent”), Limbach Facility Services LLC, a Delaware limited liability company (“Limbach”),
each subsidiary of Limbach listed as a “Borrower” on the signature pages thereto (together with Limbach, each a “Borrower”
and collectively, the “Borrowers”), each subsidiary of Ultimate Parent listed as a “Guarantor” on
the signature pages thereto (together with Ultimate Parent, Parent and each other Person that executes a joinder agreement and
becomes a “Guarantor” thereunder, each a “Guarantor” and collectively, the “Guarantors”),
the lenders from time to time party thereto (each a “Lender” and collectively, the “Lenders”),
the Collateral Agent, Citizens Bank, as administrative agent for the Lenders (in such capacity, together with its successors and
assigns in such capacity, the “Administrative Agent”) and Citizens Bank, as origination agent for the Lenders
(in such capacity, together with its successors and permitted assigns in such capacity, the “Origination Agent”
and together with the Collateral Agent and the Administrative Agent, each an “Agent” and collectively, the “Agents”)
are parties to that certain Financing Agreement, dated as of April 12, 2019 (such agreement, as amended, restated, supplemented,
modified or otherwise changed from time to time, including any replacement agreement therefor, being hereinafter referred to as
the “Financing Agreement”);

 

WHEREAS, pursuant to
the Financing Agreement, the Lenders have agreed to make certain loans (each a “Loan” and collectively, the
“Loans”), to the Borrowers;

 

WHEREAS, it is a condition
precedent to the Lenders making any Loan and providing any other financial accommodation to the Borrowers pursuant to the Financing
Agreement that each Grantor shall have executed and delivered to the Collateral Agent a pledge to the Collateral Agent, for the
benefit of the Secured Parties, and the grant to the Collateral Agent, for the benefit of the Secured Parties, of (a) a security
interest in and Lien on the outstanding shares of Equity Interests (as defined in the Financing Agreement) and indebtedness from
time to time owned by such Grantor of each Person now or hereafter existing and in which such Grantor has any interest at any time,
and (b) a security interest in all other personal property and fixtures of such Grantor;

 

WHEREAS, the Grantors
are mutually dependent on each other in the conduct of their respective businesses as an integrated operation, with credit needed
from time to time by each Grantor often being provided through financing obtained by the other Grantors and the ability to obtain
such financing being dependent on the successful operations of all of the Grantors as a whole; and

 

     

     

    

 

WHEREAS, each Grantor
has determined that the execution, delivery and performance of this Agreement directly benefit, and are in the best interest of,
such Grantor;

 

NOW, THEREFORE, for and
in consideration of the recitals made above and the agreements herein and in order to induce the Secured Parties to make and maintain
the Loans and to provide other financial accommodations to the Borrowers pursuant to the Financing Agreement, the Grantors hereby
jointly and severally agree with the Collateral Agent, for the benefit of the Secured Parties, as follows:

 

SECTION 1.          Definitions;
Construction.

 

(a)          All
initially capitalized terms used herein (including in the preamble and recitals hereof) without definition shall have the meanings
ascribed thereto in the Financing Agreement. Any terms (whether capitalized or lower case) used in this Agreement that are defined
in the Code (including, without limitation, Account, Account Debtor, Cash Proceeds, Certificate of Title, Chattel Paper, Commercial
Tort Claims, Commodity Account, Commodity Contracts, Deposit Account, Documents, Electronic Chattel Paper, Equipment, Fixtures,
General Intangibles, Goods, Instruments, Inventory, Investment Property, Letters of Credit, Letter of Credit Rights, Noncash Proceeds,
Payment Intangibles, Proceeds, Promissory Notes, Record, Securities Account Software, Supporting Obligations and Tangible Chattel
Paper) shall be construed and defined as set forth in the Code unless otherwise defined herein or in the Financing Agreement; provided,
that to the extent that the Code is used to define any term used herein and if such term is defined differently in different Articles
of the Code, the definition of such term contained in Article 9 of the Code shall govern. In addition to those terms defined elsewhere
in this Agreement, as used in this Agreement, the following terms shall have the following meanings:

 

“Additional
Collateral” has the meaning specified therefor in Section 4(a)(i) hereof.

 

“Administrative Agent” has the meaning
specified therefor in the recitals hereto.

 

“Agent” and “Agents”
have the meanings specified therefor in the recitals hereto.

 

“Agreement”
has the meaning specified therefor in the preamble hereto.

 

“Books”
means books and records (including each Grantor’s Records indicating, summarizing or evidencing such Grantor’s assets
(including the Collateral) or liabilities, each Grantor’s Records relating to such Grantor’s business operations or
financial condition, and each Grantor’s goods or General Intangibles related to such information).

 

“Borrower”
and “Borrowers” have the respective meanings specified therefor in the recitals hereto.

 

“Code”
means the New York Uniform Commercial Code, as in effect from time to time; provided that in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection, priority or remedies with respect to the Collateral Agent’s
Liens on any Collateral are governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State
of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies.

 

    	 	-2-	 

     

    

 

“Collateral” has the meaning specified
therefor in Section 2 hereof.

 

“Collateral Agent” has the meaning
specified therefor in the preamble hereto.

 

“Copyrights”
means any and all rights in any published and unpublished works of authorship, including (i) copyrights, (ii) all renewals,
extensions, restorations and reversions thereof, (iii) copyright registrations and recordings thereof and all applications
in connection therewith including those listed on Schedule II hereto, (iv) income, license fees, royalties, damages,
and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered into
in connection therewith and damages and payments for past, present, or future infringements thereof, (v) the right to sue
for past, present, and future infringements thereof, and (vi) all of each Grantor’s rights corresponding thereto throughout
the world.

 

“Copyright Security
Agreement” means each Copyright Security Agreement executed and delivered by Grantors, or any of them, and the Collateral
Agent, in substantially the form of Exhibit B.

 

“Excluded Assets”
has the meaning specified therefor in Section 2 hereof.

 

“Existing Issuer”
has the meaning specified therefor in the definition of the term “Pledged Shares”.

 

“Financing Agreement”
has the meaning specified therefor in the recitals hereto.

 

“General Intangibles”
means general intangibles (as that term is defined in the Code), and includes payment intangibles, software, contract rights, rights
to payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, Intellectual Property,
Intellectual Property Licenses, purchase orders, customer lists, route lists, rights to payment and other rights under any royalty
or licensing agreements, including Intellectual Property Licenses, infringement claims, monies due or recoverable from pension
funds, pension plan refunds, pension plan refund claims, insurance premium rebates, tax refunds, and tax refund claims, interests
in a partnership or limited liability company which do not constitute a security under Article 8 of the Code, and any other personal
property other than Commercial Tort Claims, money, Accounts, Chattel Paper, Deposit Accounts, goods, Investment Property, Negotiable
Collateral, and oil, gas, or other minerals before extraction.

 

“Grantor”
and “Grantors” have the respective meanings specified therefor in the preamble hereto.

 

“Guarantor”
and “Guarantors” have the respective meanings specified therefor in the recitals hereto.

 

    	 	-3-	 

     

    

 

“Intellectual
Property” means any and all Patents, Copyrights, Trademarks, trade secrets, know-how, inventions (whether or not patentable),
algorithms, software programs (including source code and object code), processes, product designs, industrial designs, blueprints,
drawings, data, customer lists, URLs and domain names, specifications, documentations, reports, catalogs, literature, and any other
forms of technology or proprietary information of any kind, including all rights therein and all applications for registration
or registrations thereof.

 

“Investment
Property” means investment property (as such term is defined in the Code) and all Pledged Interests (regardless of whether
classified as investment property under the Code).

 

“Lender”
and “Lenders” have the respective meanings specified therefor in the recitals hereto.

 

“Licenses”
means, with respect to any Person (the “Specified Party”), (i) any licenses or other similar rights provided
to the Specified Party in or with respect to Intellectual Property owned or controlled by any other Person, and (ii) any licenses
or other similar rights provided to any other Person in or with respect to Intellectual Property owned or controlled by the Specified
Party, in each case, including (A) any software license agreements (other than license agreements for commercially available
off-the-shelf software that is generally available to the public which have been licensed to a Grantor pursuant to end-user licenses),
(B) the license agreements listed on Schedule III hereto, and (C) the right to use any of the licenses or
other similar rights described in this definition in connection with the enforcement of any Secured Parties’ rights under
the Loan Documents.

 

“Negotiable
Collateral” means letters of credit, letter of credit rights, instruments, promissory notes, drafts and documents (as
each such term is defined in the Code).

 

“Parent”
has the meaning specified therefor in the recitals hereto.

 

“Patents”
means patents and patent applications, including (i) the patents and patent applications listed on Schedule IV
hereto, (ii) all continuations, divisionals, continuations- in-part, re-examinations, reissues, and renewals thereof and improvements
thereon, (iii) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto,
including payments under all licenses entered into in connection therewith and damages and payments for past, present, or future
infringements thereof, (iv) the right to sue for past, present, and future infringements thereof, and (v) all of each
Grantor’s rights corresponding thereto throughout the world.

 

“Patent Security
Agreement” means each Patent Security Agreement executed and delivered by Grantors, or any of them, and the Collateral
Agent, in substantially the form of Exhibit B.

 

“Pledged Debt”
means the indebtedness described in Schedule X hereto and all indebtedness from time to time owned or acquired by a
Grantor, the promissory notes and other Instruments evidencing any or all of such indebtedness, and all interest, cash, Instruments,
Investment Property, financial assets, securities, Equity Interests, other equity interests, stock options and commodity contracts,
notes, debentures, bonds, promissory notes or other evidences of indebtedness and all other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such indebtedness.

 

    	 	-4-	 

     

    

 

“Pledged Interests”
means, collectively, (a) the Pledged Debt, (b) the Pledged Shares and (c) all security entitlements in any and all
of the foregoing.

 

“Pledged Issuer”
has the meaning specified therefor in the definition of the term “Pledged Shares”.

 

“Pledged Shares”
means (a) the shares of Equity Interests described in Schedule XI hereto, whether or not evidenced or represented
by any stock certificate, certificated security or other Instrument, issued by the Persons described in such Schedule XI
(the “Existing Issuers”), (b) the shares of Equity Interests at any time and from time to time acquired
by a Grantor of any and all Persons now or hereafter existing (such Persons, together with the Existing Issuers, being hereinafter
referred to collectively as the “Pledged Issuers” and each individually as a “Pledged Issuer”),
whether or not evidenced or represented by any stock certificate, certificated security or other Instrument, and (c) the certificates
representing such shares of Equity Interests, all options and other rights, contractual or otherwise, in respect thereof and all
dividends, distributions, cash, Instruments, Investment Property, financial assets, securities, Equity Interests, other equity
interests, stock options and commodity contracts, notes, debentures, bonds, promissory notes or other evidences of indebtedness
and all other property (including, without limitation, any stock dividend and any distribution in connection with a stock split)
from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Equity Interests.

 

“Proceeds”
has the meaning specified therefor in Section 2(r) hereof.

 

“Record”
means record (as such term is defined in the Code), and includes information that is inscribed on a tangible medium which is stored
in an electronic or other medium and is retrievable in perceivable form.

 

“Secured Parties”
means, collectively, the Agents and the Lenders.

 

“Secured Obligations”
has the meaning specified therefor in Section 3 hereof.

 

“Supporting
Obligations” means supporting obligations (as such term is defined in the Code), and includes letters of credit and guaranties
issued in support of Accounts, Chattel Paper, documents, General Intangibles, instruments or Investment Property.

 

“Titled Collateral”
means all Collateral for which the title to such Collateral is governed by a Certificate of Title or certificate of ownership,
including, without limitation, all motor vehicles (including, without limitation, all trucks, trailers, tractors, service vehicles,
automobiles and other mobile equipment) for which the title to such motor vehicles is governed by a Certificate of Title or certificate
of ownership.

 

    	 	-5-	 

     

    

 

“Trademarks”
means any and all trademarks, trade names, registered trademarks, trademark applications, service marks, registered service marks,
brand names, certification marks, collective marks, logos, symbols, trade dress, assumed names, fictitious names and service mark
applications, including (i) the trade names, registered trademarks, trademark applications, registered service marks and service
mark applications listed on Schedule V hereto, (ii) all extensions, modifications and renewals thereof, (iii) all
income, royalties, damages and payments now and hereafter due or payable under and with respect thereto, including payments under
all licenses entered into in connection therewith and damages and payments for past or future infringements or dilutions thereof,
(iv) the right to sue for past, present and future infringements and dilutions thereof, (v) the goodwill of each Grantor’s
business symbolized by the foregoing or connected therewith, and (vi) all of each Grantor’s rights corresponding thereto
throughout the world.

 

“Trademark Security
Agreement” means each Trademark Security Agreement executed and delivered by Grantors, or any of them, and the Collateral
Agent, in substantially the form of Exhibit B.

 

(b)          This
Agreement shall be subject to the rules of construction set forth in Sections 1.02 and 1.03 of the Financing Agreement,
and such provisions are incorporated herein by this reference mutatis mutandis.

 

(c)          All
of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein by reference.

 

SECTION 2.          Grant
of Security Interest. As collateral security for the payment, performance and observance of all of the Secured Obligations,
each Grantor hereby pledges and assigns to the Collateral Agent (and its agents and designees), and unconditionally grants to the
Collateral Agent (and its agents and designees), for the benefit of the Secured Parties, to secure the Secured Obligations (whether
now existing or hereafter arising ) a continuing security interest in all such Grantor’s right, title, and interest in and
to all personal property and Fixtures of such Grantor, wherever located and whether now or hereafter existing and whether now owned
or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the following (all
being collectively referred to herein as the “Collateral”; for the avoidance of doubt, the Collateral shall
not include any of the Excluded Assets):

 

(a)          all
Accounts;

 

(b)          all
Books;

 

(c)          all
Chattel Paper (whether tangible or electronic);

 

(d)          all
Commercial Tort Claims, including, without limitation, those specified on Schedule IX;

 

(e)          all
Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise credited thereto and the monies
and property in the possession or under the control of any Secured Party or any affiliate, representative, agent or correspondent
of any Secured Party;

 

    	 	-6-	 

     

    

 

(f)          all
Documents;

 

(g)          all
General Intangibles (including, without limitation, all Payment Intangibles, Intellectual Property and Licenses);

 

(h)          all
Goods, including, without limitation, all Equipment, Fixtures and Inventory;

 

(i)           all
Investment Property;

 

(j)           all
Letter-of-Credit Rights;

 

(k)          all
Negotiable Collateral (including, without limitation, all Instruments and Promissory Notes);

 

(l)           all
Pledged Interests;

 

(m)         all
Securities Accounts;

 

(n)          all
Supporting Obligations;

 

(o)          all
cash posted to counterparties to agreements with a Grantor or any other Person;

 

(p)          all
money, Cash Equivalents, or other assets of each Grantor that are now or hereafter in the possession, custody, or control of any
Secured Party (or its agent or designee);

 

(q)          all
other tangible and intangible personal property of such Grantor (whether or not subject to the Code), including, without limitation,
all bank and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits,
income, benefits, substitutions and replacements of and to any of the property of such Grantor described in the preceding clauses
of this Section 2 hereof (including, without limitation, any proceeds of insurance thereon and all causes of action,
claims and warranties now or hereafter held by such Grantor in respect of any of the items listed above), and all books, correspondence,
files and other Records, including, without limitation, all tapes, disks, cards, Software, data and computer programs in the possession
or under the control of such Grantor or any other Person from time to time acting for such Grantor that at any time evidence or
contain information relating to any of the property described in the preceding clauses of this Section 2 hereof or
are otherwise necessary or helpful in the collection or realization thereof; and

 

    	 	-7-	 

     

    

 

(r)          all
Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing Collateral, in each case
howsoever such Grantor’s interest therein may arise or appear (whether by ownership, security interest, claim or otherwise),
whether tangible or intangible, of any of the foregoing, including proceeds of insurance or Commercial Tort Claims covering or
relating to any or all of the foregoing, and any and all Accounts, Books, Chattel Paper, Deposit Accounts, Equipment, Fixtures,
General Intangibles, Inventory, Investment Property, Intellectual Property, Negotiable Collateral, Pledged Interests, Securities
Accounts, Supporting Obligations, money, or other tangible or intangible property resulting from the sale, lease, license, exchange,
collection, or other disposition of any of the foregoing, the proceeds of any award in condemnation with respect to any of the
foregoing, any rebates or refunds, whether for taxes or otherwise, and all proceeds of any such proceeds, or any portion thereof
or interest therein, and the proceeds thereof, and all proceeds of any loss of, damage to, or destruction of the above, whether
insured or not insured, and, to the extent not otherwise included, any indemnity, warranty, or guaranty payable by reason of loss
or damage to, or otherwise with respect to any of the foregoing (the “Proceeds”). Without limiting the generality
of the foregoing, the term “Proceeds” includes whatever is receivable or received when Investment Property or proceeds
are sold, exchanged, collected, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes proceeds
of any indemnity or guaranty payable to any Grantor or Agent from time to time with respect to any of the Investment Property.

 

Notwithstanding anything herein to the
contrary, the term “Collateral” shall not include, and no Grantor is pledging, nor granting a security interest hereunder
in, the following, in each case, as and to the extent provided herein (collectively, the “Excluded Assets”):
(i) any of such Grantor’s right, title or interest in any lease, permit, license, license agreement, contract or agreement
to which such Grantor is a party as of the date hereof or any of its right, title or interest thereunder to the extent, but only
to the extent, that such a grant would, under the express terms of such lease, permit, license, license agreement, contract or
agreement on the date hereof result in a breach of the terms of, or constitute a default under, such lease, permit, license, license
agreement, contract or agreement (other than to the extent that (A) any such term has been waived, (B) the consent of
the other party to such lease, permit, license, license agreement, contract or agreement has been obtained, or (C) would be
rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Code or other applicable law (including the
Bankruptcy Code) or principles of equity); provided, that (x) immediately upon the ineffectiveness, lapse, termination
or waiver of any such provision, the Excluded Assets shall no longer include, and the Collateral shall include, and such Grantor
shall be deemed to have granted a security interest in, all such right, title and interest as if such provision had never been
in effect and (y) the foregoing exclusion shall in no way be construed so as to limit, impair or otherwise affect the Collateral
Agent’s unconditional continuing security interest in and liens upon any rights or interests of any Grantor in or to (1) the
proceeds of, or any monies due or to become due under, any such lease, permit, license, license agreement, contract or agreement
(including any Accounts, proceeds of Inventory or Equity Interests), and (2) the proceeds from the sale, license, lease, or
other dispositions of any such lease, permit, license, license agreement, contract or agreement); (ii) any intent-to-use United
States trademark and/or service mark applications for which an amendment to allege use or statement of use has not been filed under 15
U.S.C. § 1051(c) or 15 U.S.C. § 1051(d), respectively, or if filed, has not been deemed in conformance with 15
U.S.C. § 1051(a) or examined and accepted, respectively, by the United States Patent and Trademark Office, provided
that, upon such filing and acceptance, such intent-to-use applications shall no longer be included in the Excluded Assets and shall
be included in the definition of Collateral; (iii) any fee-owned Real Property with a fair market value less than $250,000, unless
requested by the Origination Agent; (iv) any leased Real Property requiring the payment of annual rent or royalties exceeding in
the aggregate $500,000, unless requested by the Origination Agent; (v) assets subject to a Permitted Lien securing Permitted Purchase
Money Indebtedness only to the extent and for so long as the terms of the agreement in which such Permitted Lien is granted validly
prohibits the creation of any other Lien on such asset; (vi) Equity Interests in any Special Purpose Joint Venture to the extent
a Lien on such Equity Interests is prohibited by the Governing Documents of such Special Purpose Joint Venture; and (vii) those
assets as to which the Origination Agent and the Grantors agree in writing that the cost of obtaining such a security interest
or perfection thereof are excessive in relation to the benefit to the Secured Parties of the security to be afforded thereby.

 

    	 	-8-	 

     

    

 

SECTION 3.          Security
for Secured Obligations.

 

(a)          The
security interest created hereby in the Collateral constitutes continuing collateral security for all of the following obligations,
whether now existing or hereafter incurred (the “Secured Obligations”):

 

(i)          the
prompt payment by each Grantor, as and when due and payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), of all amounts from time to time owing by it under or in respect of the Financing Agreement and/or the other
Loan Documents, including, without limitation, (i) all Obligations, (ii) in the case of a Guarantor, all Guaranteed Obligations
and all other amounts from time to time owing by such Grantor in respect of its guaranty made under any Guaranty to which it is
a party, including, without limitation, all obligations guaranteed by such Grantor and (iii) all interest, fees, commissions,
charges, expense reimbursements, indemnifications and all other amounts due or to become due under any Loan Document (including,
without limitation, all interest, fees, commissions, charges, expense reimbursements, indemnifications and other amounts that accrue
after the commencement of any Insolvency Proceeding of any Loan Party, whether or not the payment of such interest, fees, commissions,
charges, expense reimbursements, indemnifications and other amounts are unenforceable or are not allowable, in whole or in part,
due to the existence of such Insolvency Proceeding); and

 

(ii)         the
due performance and observance by each Grantor of all of its other obligations from time to time existing in respect of the Loan
Documents.

 

(b)          Without
limiting the foregoing, this Agreement secures the payment of all amounts which constitute part of the Secured Obligations and
would be owed by Grantors, or any of them, to any of the Secured Parties, but for the fact that they are unenforceable or not allowable
(in whole or in part) as a claim in an Insolvency Proceeding involving any Grantor due to the existence of such Insolvency Proceeding.
Further, the security interest created hereby encumbers each Grantor’s right, title, and interest in all Collateral, whether
now owned by such Grantor or hereafter acquired, obtained, developed, or created by such Grantor and wherever located.

 

    	 	-9-	 

     

    

 

SECTION 4.          Delivery
of the Pledged Interests.

 

(a)          (i)
All promissory notes currently evidencing the Pledged Debt with a principal outstanding amount exceeding $100,000 in the aggregate,
and all certificates currently representing the Pledged Shares (if any) shall be delivered to the Collateral Agent (or its custodian,
designee or other nominee) on or prior to the execution and delivery of this Agreement. All other promissory notes, certificates
and Instruments constituting Pledged Interests from time to time required to be pledged to the Collateral Agent pursuant to the
terms of this Agreement or the Financing Agreement (the “Additional Collateral”) shall be delivered to the Collateral
Agent (or its custodian, designee or other nominee) promptly upon, but in any event within five (5) days of, receipt thereof
by or on behalf of any of the Grantors. All such Additional Collateral shall be held by or on behalf of the Collateral Agent (or
its custodian, designee or other nominee) pursuant hereto and shall be delivered in suitable form for transfer by delivery or shall
be accompanied by duly executed instruments of transfer or assignment or undated stock powers executed in blank, all in form and
substance reasonably satisfactory to the Collateral Agent. If any Pledged Interests consists of uncertificated securities, unless
the immediately following sentence is applicable thereto, such Grantor shall cause the Collateral Agent (or its designated custodian
or nominee) to become the registered holder thereof, or cause each issuer of such securities to agree that it will comply with
instructions originated by the Collateral Agent with respect to such securities without further consent by such Grantor. If any
Pledged Interests consists of security entitlements, such Grantor shall transfer such security entitlements to the Collateral Agent
(or its custodian, nominee or other designee), or cause the applicable securities intermediary to agree that it will comply with
entitlement orders by the Collateral Agent without further consent by such Grantor.

 

(ii)         Within
five (5) days (or such longer period as is applicable due to the operation of Section 7.01(b)(i)(y) of the Financing Agreement)
of the receipt by a Grantor of any Additional Collateral, a Pledge Amendment, duly executed by such Grantor, in substantially the
form of Exhibit A hereto (a “Pledge Amendment”), shall be delivered to the Collateral Agent, in
respect of the Additional Collateral that must be pledged pursuant to this Agreement and the Financing Agreement. The Pledge Amendment
shall from and after delivery thereof constitute part of Schedules X and XI hereto. Each Grantor hereby authorizes
the Collateral Agent to attach each Pledge Amendment to this Agreement and agrees that all promissory notes, certificates or Instruments
listed on any Pledge Amendment delivered to the Collateral Agent (or its custodian, designee or other nominee) shall for all purposes
hereunder constitute Pledged Interests and such Grantor shall be deemed upon delivery thereof to have made the representations
and warranties set forth in Section 5 hereof with respect to such Additional Collateral.

 

(b)          Each
Grantor agrees that it will cooperate with Collateral Agent in obtaining all necessary approvals and making all necessary filings
under federal, state, local, or foreign law to effect the perfection of the security interest on the Investment Property or to
effect any sale or transfer thereof.

 

    	 	-10-	 

     

    

 

(c)          If
any Grantor shall receive, by virtue of such Grantor’s being or having been an owner of any Pledged Interests, any (i) stock
certificate (including, without limitation, any certificate representing a stock dividend or distribution in connection with any
increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares, stock split,
spin-off or split-off), promissory note or other Instrument, (ii) option or right, whether as an addition to, substitution
for, or in exchange for, any Pledged Interests, or otherwise, (iii) dividends payable in cash (except such dividends permitted
to be retained by any such Grantor pursuant to Section 7 hereof) or in securities or other property or (iv) dividends,
distributions, cash, Instruments, Investment Property and other property in connection with a partial or total liquidation or dissolution
or in connection with a reduction of capital, capital surplus or paid-in surplus, such Grantor shall hold such stock certificate,
promissory note, Instrument, option, right, payment or distribution in trust for the benefit of the Collateral Agent, shall segregate
it from such Grantor’s other property and shall deliver it forthwith to the Collateral Agent (or its custodian, designee
or other nominee), in the exact form received, with any necessary indorsement and/or appropriate stock powers duly executed in
blank, to be held by the Collateral Agent (or its custodian, designee or other nominee) as Pledged Interests and as further collateral
security for the Secured Obligations.

 

SECTION 5.          Representations
and Warranties. In order to induce Collateral Agent to enter into this Agreement for the benefit of the Secured Parties, each
Grantor jointly and severally makes the following representations and warranties to the Secured Parties, as of the Effective Date
and as of the date of the making of any Revolving Loan (or other extension of credit) after the Effective Date, and such representations
and warranties shall survive the execution and delivery of this Agreement:

 

(a)          Schedule I
hereto sets forth (i) the exact legal name (within the meaning of Section 9-503 of the Code) of each Grantor, (ii) the
state or jurisdiction of organization of each Grantor, (iii) the type of organization of each Grantor and (iv) the organizational
identification number of each Grantor or states that no such organizational identification number exists.

 

(b)          There
is no pending or, to the knowledge of any Grantor, threatened action, suit, proceeding or claim before any court or other Governmental
Authority or any arbitrator, or any order, judgment or award by any court or other Governmental Authority or any arbitrator, that
could reasonably be expected to adversely affect the grant by any Grantor, or the perfection, of the security interest purported
to be created hereby in the Collateral, or the exercise by the Collateral Agent of any of its rights or remedies hereunder.

 

    	 	-11-	 

     

    

 

(c)          As
of the Effective Date, all Equipment, Inventory and other Goods of each Grantor is located at the addresses specified therefor
in Schedule VI hereto (other than (x) Equipment which in the ordinary course of such Grantor’s business is out
for repair or is in-transit between locations specified in Schedule VI and/or Specified Third Party Locations, (y) Job Inventory,
and (z) Equipment which in the ordinary course of such Grantor’s business is in use at a temporary project or job site).
Each Grantor’s chief place of business and chief executive office, the place where such Grantor keeps its Records concerning
Accounts and all originals of all Chattel Paper are located at the addresses specified therefor in Schedule VI hereto
(as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof). None of the Accounts is
evidenced by Promissory Notes or other Instruments. Set forth in Schedule VII hereto is a complete and accurate list,
as of the date of this Agreement, of each Deposit Account, Securities Account and Commodities Account of each Grantor, together
with the name and address of each institution at which each such Account is maintained, the account number for each such Account
and a description of the purpose of each such Account. Set forth in Schedule V hereto is (i) a complete and correct
list of each trade name used by each Grantor and (ii) the name of, and each trade name used by, each Person from which such
Grantor has acquired any substantial part of the Collateral within five (5) years of the date hereof.

 

(d)          As
of the Effective Date, (i) Schedule II provides a complete and correct list of all registered Copyrights owned
by any Grantor, all applications for registration of Copyrights owned by any Grantor, and all other Copyrights owned by any Grantor
and material to the conduct of the business of any Grantor; (ii) Schedule III provides a complete and correct
list of all Licenses entered into by any Grantor pursuant to which (A) any Grantor has provided any license or other rights
in Intellectual Property owned or controlled by such Grantor to any other Person other than non-exclusive software licenses granted
in the ordinary course of business or (B) any Person has granted to any Grantor any license or other rights in Intellectual
Property owned or controlled by such Person that is material to the business of such Grantor including any Intellectual Property
that is incorporated in any Inventory, software, or other product marketed, sold, licensed, or distributed by such Grantor (other
than off-the-shelf, shrink-wrapped or “click to accept” software licenses or other licenses to generally commercially
available software); (iii) Schedule IV provides a complete and correct list of all Patents owned by any Grantor
and all applications for Patents owned by any Grantor; and (iv) Schedule V provides a complete and correct list
of all registered Trademarks owned by any Grantor, all applications for registration of Trademarks owned by any Grantor, and all
other Trademarks owned by any Grantor and material to the conduct of the business of any Grantor.

 

(e)          (i)
(A) Each Grantor owns exclusively, or holds licenses in, or otherwise possesses legally enforceable rights in, all Intellectual
Property that is necessary in or material to the operation of its business as currently conducted, or (B) each Grantor is
the sole and exclusive owner of Intellectual Property (free and clear of any Liens) used by it and has sole and exclusive rights
to the use and distribution therefor or the material covered thereby in connection with the services or products in respect of
which such Intellectual Property are currently being used, sold, licensed or distributed.

 

(ii)         Except
for those claims which the applicable Grantor is diligently pursuing the remedy thereof, no claims with respect to the Intellectual
Property rights of any Grantor are pending or, to the knowledge of any Grantor, threatened against any Grantor or, to the knowledge
of any Grantor, any other Person, (i) alleging that the manufacture, sale, licensing or use of any Intellectual Property as
now manufactured, sold, licensed or used by any Grantor or any third party infringes on any intellectual property rights of any
third party, (ii) against the use by any Grantor or any third party of any technology, know-how or computer software used
in any Grantor’s business as currently conducted or (iii) challenging the ownership by any Grantor, or the validity
or effectiveness, of any such Intellectual Property.

 

    	 	-12-	 

     

    

 

(f)          (i)
No Grantor has infringed on any intellectual property rights of any third party and (ii) none of the Intellectual Property
rights of any Grantor infringes on any intellectual property rights of any third party, except for such infringements which, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

(g)          All
registered Copyrights, registered Trademarks, and issued Patents that are owned by such Grantor and necessary in or material to
the conduct of its business are valid, subsisting and enforceable and have at all times been in compliance with all laws, rules,
regulations, and orders of any Governmental Authority applicable thereto.

 

(h)          Each
Grantor has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights in all trade
secrets owned by such Grantor that are necessary in or material to the conduct of the business of such Grantor.

 

(i)          Other
than software which by the terms of its own license explicitly permits the licensee to distribute the software, together with other
commercial programs with no restrictions on such Grantor’s ability to charge fees for such distribution and with no restriction
on such Grantor’s right to receive payments for transfer of its Intellectual Property, none of the proprietary software licensed
or distributed by any Grantor that is material to generating revenue for such Grantor is subject to any “copyleft”
or other obligation or condition (including any obligation or condition under any “open source” license such as the
GNU Public License, Lesser GNU Public License, or Mozilla Public License) that would require, or condition the use or distribution
of such software, on the disclosure, licensing or distribution of any source code of the proprietary software. No open source or
public library software licensed pursuant to any GNU public license which requires any Grantor to license such Grantor’s
software products to third parties, or any other license which requires any Grantor to license such Grantor’s software products
to third parties, is embodied or incorporated, in any manner, in any Grantor’s source code.

 

(j)          The
Existing Issuers set forth in Schedule XI identified as a Subsidiary of a Grantor are each such Grantor’s only
Subsidiaries existing on the date hereof. The Pledged Shares have been duly authorized and validly issued and are fully paid and
nonassessable and the holders thereof are not entitled to any preemptive, first refusal or other similar rights. Except as noted
in Schedule XI hereto, the Pledged Shares constitute 100% of the issued shares of Equity Interests of the Pledged
Issuers as of the date hereof. All other shares of Equity Interests constituting Pledged Interests will be duly authorized and
validly issued, fully paid and nonassessable.

 

(k)          The
promissory notes currently evidencing the Pledged Debt (if any) have been, and all other promissory notes from time to time evidencing
Pledged Debt (if any), when executed and delivered, will have been, duly authorized, executed and delivered by the respective makers
thereof, and all such promissory notes are or will be, as the case may be, legal, valid and binding obligations of such makers,
enforceable against such makers in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws.

 

(l)          The
Grantors are and will at all times be the sole and exclusive owners of, or otherwise have and will have adequate rights in, the
Collateral free and clear of all Liens, except for the Permitted Liens. No effective financing statement or other instrument similar
in effect covering all or any part of the Collateral is on file in any recording or filing office except such as may have been
filed to perfect or protect any Permitted Lien.

 

    	 	-13-	 

     

    

 

(m)          No
authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person (other
than those that have been obtained and are in full force and effect) is required for (i) the due execution, delivery and performance
by any Grantor of this Agreement, (ii) the grant by any Grantor of the security interest purported to be created hereby in
the Collateral or (iii) the exercise by the Collateral Agent of any of its rights and remedies hereunder, except, in the case
of this clause (iii), as may be required in connection with any sale of any Pledged Interests by laws affecting the offering
and sale of securities generally. No authorization or approval or other action by, and no notice to or filing with, any Governmental
Authority or any other Person, is required for the perfection of the security interest purported to be created hereby in the Collateral
(other than those that have been obtained and are in full force and effect), except (A) for the filing under the Uniform Commercial
Code as in effect in the applicable jurisdiction of the financing statements described in Schedule VIII hereto, all
of which financing statements have been duly filed and are in full force and effect, (B) with respect to the perfection of
the security interest created hereby in the United States Intellectual Property and Licenses, for the recording of the appropriate
Assignment for Security, substantially in the form of Exhibit B hereto in the United States Patent and Trademark Office
or the United States Copyright Office, as applicable, (C) with respect to the perfection of the security interest created
hereby in Titled Collateral (to the extent such perfection is required under Section 6(a)(H) of this Agreement), for the submission
of an appropriate application requesting that the Lien of the Collateral Agent be noted on the Certificate of Title or certificate
of ownership, completed and authenticated by the applicable Grantor, together with the Certificate of Title or certificate of ownership,
with respect to such Titled Collateral, to the appropriate Governmental Authority, (D) with respect to any action that may
be necessary to obtain control of Collateral constituting Deposit Accounts (other than Excluded Accounts), Electronic Chattel Paper,
Investment Property, or Letter-of-Credit Rights having a face amount and/or value not greater than $100,000 in the aggregate (except
to the extent a security interest therein can be perfected by filing a financing statement under the UCC of any relevant jurisdiction),
the taking of such actions, and (E) the Collateral Agent’s having possession of all Documents, Chattel Paper, Instruments
and cash constituting Collateral (subclauses (A), (B), (C), (D), and (E), each a “Perfection Requirement”
and collectively, the “Perfection Requirements”).

 

(n)          This
Agreement creates a legal, valid and enforceable security interest in favor of the Collateral Agent, for the benefit of the Secured
Parties, in the Collateral, as security for the Secured Obligations. The compliance with the Perfection Requirements results in
the perfection of such security interests. Such security interests are, or in the case of Collateral in which any Grantor obtains
rights after the date hereof, will be, perfected, first priority security interests, subject in priority only to the Permitted
Liens that, pursuant to the definition of the term “Permitted Liens”, are not prohibited from being prior to the Liens
in favor of the Collateral Agent, for the benefit of the Secured Parties, and the recording of such instruments of assignment described
above. Such Perfection Requirements and all other action necessary or desirable to perfect and protect such security interest have
been duly made or taken, except for (i) the Collateral Agent’s having possession of all Instruments, Documents, Chattel
Paper and cash constituting Collateral after the date hereof, (ii) the Collateral Agent’s having control of all Deposit
Accounts, Electronic Chattel Paper, Investment Property or Letter-of- Credit Rights constituting Collateral after the date hereof,
and (iii) the other filings and recordations and actions described in Section 5(m) hereof.

 

    	 	-14-	 

     

    

 

(o)          As
of the date hereof, no Grantor holds any Commercial Tort Claims with a maximum potential value in excess of $100,000 or is aware
of any such pending claims, except for such claims described in Schedule IX.

 

SECTION 6.          Covenants
as to the Collateral. So long as any of the Secured Obligations (whether or not due) shall remain unpaid (other than Contingent
Indemnity Obligations) or any Lender shall have any Commitment under the Financing Agreement, unless the Collateral Agent shall
otherwise consent in writing, each Grantor, jointly and severally, covenants and agrees that:

 

(a)          Further
Assurances. Each Grantor will at its expense, at any time and from time to time, promptly execute and deliver all further instruments
and documents and take all further action that may be necessary or desirable or that the Collateral Agent may reasonably request
in order (i) to perfect and protect, or maintain the perfection of, the security interest and Lien purported to be created
hereby; (ii) to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder in respect of the Collateral;
or (iii) otherwise to effect the purposes of this Agreement, including, without limitation: (A) at the reasonable request
of Collateral Agent marking conspicuously all Chattel Paper, Instruments and Licenses having an aggregate value or face amount
in excess of $100,000 more for all such Chattel Paper, Instruments and Licenses, and all of its Records pertaining to such Collateral
with a legend, in form and substance satisfactory to the Collateral Agent, indicating that such Chattel Paper, Instrument, License
or Collateral is subject to the security interest created hereby, (B) if any Account shall be evidenced by a Promissory Note
or other Instrument or Chattel Paper, to the extent required hereunder, delivering and pledging to the Collateral Agent such Promissory
Note, other Instrument or Chattel Paper, duly endorsed and accompanied by executed instruments of transfer or assignment, all in
form and substance satisfactory to the Collateral Agent, (C) executing and filing (to the extent, if any, that such Grantor’s
signature is required thereon) or authenticating the filing of, such financing or continuation statements, or amendments thereto,
(D) with respect to Intellectual Property hereafter existing and not covered by an appropriate security interest grant, the
executing and recording in the United States Patent and Trademark Office or the United States Copyright Office, as applicable,
appropriate instruments granting a security interest, as may be necessary or desirable or that the Collateral Agent may reasonably
request in order to perfect and preserve the security interest purported to be created hereby, (E) delivering to the Collateral
Agent irrevocable proxies in respect of the Pledged Interests, (F) furnishing to the Collateral Agent from time to time statements
and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as required
pursuant to the terms of the Financing Agreement, (G) if at any time after the date hereof, any Grantor acquires or holds
any Commercial Tort Claim with a maximum potential value in excess of $100,000, immediately notifying the Collateral Agent in a
writing signed by such Grantor setting forth a brief description of such Commercial Tort Claim, (H) upon the acquisition after
the date hereof by any Grantor of any Titled Collateral (other than (x) Titled Collateral with an aggregate value of less than
$100,000 and (y) Equipment that is subject to a purchase money security interest permitted by Section 7.02(a) of the Financing
Agreement), and if reasonably requested by the Collateral Agent, immediately causing the Collateral Agent to be listed as a lienholder
on such Certificate of Title or certificate of ownership and delivering evidence of the same to the Collateral Agent, and (I) taking
all actions required by law in any relevant Uniform Commercial Code jurisdiction, or by other law as applicable in any foreign
jurisdiction. No Grantor shall take or fail to take any action which would in any material respect impair the validity or enforceability
of the Collateral Agent’s security interest in and Lien on any Collateral.

 

    	 	-15-	 

     

    

 

(b)          Location
of Equipment, Inventory and Other Goods. Each Grantor will keep its Equipment, Inventory and other Goods (other than (x) Equipment
and Inventory sold in the ordinary course of business in accordance with Section 6(h) hereof, (x) Equipment which in
the ordinary course of such Grantor’s business is out for repair, or is in-transit between locations owned or leased by the
Loan Parties within the continental United States and/or Specified Third Party Locations, (y) Job Inventory, and (z) Equipment
which in the ordinary course of such Grantor’s business is in use at a temporary project or job site) at locations owned
or leased by the Loan Parties within the continental United States or at Specified Third Party Locations; provided that
(i) all action has been taken to grant to the Collateral Agent a perfected, first priority security interest in such Equipment,
Inventory and other Goods (subject in priority only to Permitted Liens that, pursuant to the definition of the term “Permitted
Liens”, are not prohibited from being prior to the Liens in favor of the Collateral Agent, for the benefit of the Secured
Parties), and (ii) the Collateral Agent’s rights in such Equipment, Inventory and other Goods, including, without limitation,
the existence, perfection and priority of the security interest created hereby in such Equipment, Inventory and other Goods, are
not adversely affected thereby.

 

(c)          Condition
of Equipment. Each Grantor will maintain or cause the Equipment which is necessary or useful in the proper conduct of its business
to be maintained and preserved in good condition and working order, ordinary wear and tear and casualty excepted, and in accordance
with any manufacturer’s manual, ordinary wear and tear excepted, and will forthwith, or in the case of any loss or damage
to any Equipment promptly after the occurrence thereof, make or cause to be made all repairs, replacements and other improvements
in connection therewith which are necessary, consistent with past practice. Each Grantor will promptly furnish to the Collateral
Agent a statement describing in reasonable detail any loss or damage in excess of $250,000 to any Equipment.

 

(d)          Taxes,
Etc. Each Grantor jointly and severally agrees to pay, in full before delinquency or before the expiration of any extension
period, all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims (including claims
for labor, materials and supplies) against, the Equipment and Inventory, except to the extent otherwise provided in the Financing
Agreement.

 

    	 	-16-	 

     

    

 

(e)          Insurance.
Each Grantor will, at its own expense, maintain insurance with respect to the Collateral in accordance with the terms of the Financing
Agreement. Each Grantor will, if requested by the Collateral Agent, deliver to the Collateral Agent original or duplicate insurance
policies as required by the Financing Agreement. Each Grantor will also, at the request of the Collateral Agent, execute and deliver
instruments of assignment of such insurance policies and use commercially reasonable efforts to cause the respective insurers to
acknowledge notice of such assignment.

 

(f)          Provisions
Concerning the Accounts and the Licenses.

 

(i)          Each
Grantor will, except as otherwise provided in this subsection (f), continue to collect, at its own expense, all amounts due
or to become due under the Accounts. In connection with such collections, each Grantor may (and, at the Collateral Agent’s
direction, upon the occurrence and at any time during the continuance of an Event of Default, will) take such action as such Grantor
(or, if applicable, the Collateral Agent) may deem necessary or advisable to enforce collection or performance of the Accounts;
provided, however, that the Collateral Agent shall have the right, upon the occurrence and at any time during the
continuance of an Event of Default, to notify the Account Debtors or obligors under any Accounts of the assignment of such Accounts
to the Collateral Agent and to direct such Account Debtors or obligors to make payment of all amounts due or to become due to such
Grantor thereunder directly to the Collateral Agent or its designated agent and, upon such notification and at the expense of such
Grantor and to the extent permitted by law, to enforce collection of any such Accounts and to adjust, settle or compromise the
amount or payment thereof, in the same manner and to the same extent as such Grantor might have done. After receipt by any Grantor
of a notice from the Collateral Agent that the Collateral Agent has notified, intends to notify, or has enforced or intends to
enforce a Grantor’s rights against the Account Debtors or obligors under any Accounts as referred to in the proviso to the
immediately preceding sentence, (A) all amounts and proceeds (including Instruments) received by such Grantor in respect of
the Accounts shall be received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other funds
of such Grantor and shall be forthwith paid over to the Collateral Agent or its designated agent in the same form as so received
(with any necessary endorsement) to be held as cash collateral and applied as specified in Section 9(c) hereof, and
(B) such Grantor will not adjust, settle or compromise the amount or payment of any Account or release wholly or partly any
Account Debtor or obligor thereof or allow any credit or discount thereon. In addition, the Collateral Agent may (in its sole and
absolute discretion) direct any or all of the banks and financial institutions with which any Grantor either maintains a Deposit
Account or a lockbox or deposits the proceeds of any Accounts to send immediately to the Collateral Agent or its designated agent
by wire transfer (to such account as the Collateral Agent shall specify, or in such other manner as the Collateral Agent shall
direct) all or a portion of such securities, cash, investments and other items held by such institution; provided that,
so long as no Event of Default has occurred and is continuing, the Collateral Agent will not direct any such bank or financial
institution to transfer funds in accordance with the foregoing. Any such securities, cash, investments and other items so received
by the Collateral Agent or its designated agent shall (in the sole and absolute discretion of the Collateral Agent) be held as
additional Collateral for the Secured Obligations or distributed in accordance with Section 9 hereof.

 

    	 	-17-	 

     

    

 

(ii)         Upon
the occurrence and during the continuance of any breach or default under any material License by any party thereto other than a
Grantor, (A) the relevant Grantor will, promptly after obtaining knowledge thereof, give the Collateral Agent written notice
of the nature and duration thereof, specifying what action, if any, it has taken and proposes to take with respect thereto, (B) no
Grantor will, without the prior written consent of the Collateral Agent, declare or waive any such breach or default or affirmatively
consent to the cure thereof or exercise any of its remedies in respect thereof, and (C) each Grantor will, upon written instructions
from the Collateral Agent and at such Grantor’s expense, take such action as the Collateral Agent may deem necessary or advisable
in respect thereof.

 

(iii)        Each
Grantor will, at its expense, promptly deliver to the Collateral Agent a copy of each notice or other communication received by
it by which any other party to any material License (A) declares a breach or default by a Grantor of any material term thereunder,
(B) terminates such material License or (C) purports to exercise any of its rights or affect any of its obligations thereunder,
together with a copy of any reply by such Grantor thereto.

 

(iv)        Each
Grantor will exercise promptly and diligently each and every right which it may have under each License material to its business
(other than any right of termination) and will duly perform and observe in all respects all of its obligations under each such
License and will take all action necessary to maintain such Licenses in full force and effect. No Grantor will, without the prior
written consent of the Collateral Agent, cancel, terminate, amend or otherwise modify in any respect, or waive any provision of,
any License material to its business unless otherwise permitted under Section 7.02(c) of the Financing Agreement.

 

(g)          Provisions
Concerning the Pledged Interests. Each Grantor will

 

(i)          at
the Grantors’ joint and several expense, defend the Collateral Agent’s right, title and security interest in and to
the Pledged Interests against the claims of any Person;

 

(ii)         not
make or consent to any amendment or other modification or waiver with respect to any Pledged Interests or enter into any agreement
or permit to exist any restriction with respect to any Pledged Interests (other than as permitted under the Loan Documents); and

 

(iii)        except
as permitted under the Financing Agreement, not permit the issuance of (A) any additional shares of any class of Equity Interests
of any Pledged Issuer, (B) any securities convertible voluntarily by the holder thereof or automatically upon the occurrence
or non-occurrence of any event or condition into, or exchangeable for, any such shares of Equity Interests or (C) any warrants,
options, contracts or other commitments entitling any Person to purchase or otherwise acquire any such shares of Equity Interests.

 

(h)          Transfers
and Other Liens.

 

(i)          Except
to the extent expressly permitted by Section 7.02(c) of the Financing Agreement, no Grantor will sell, assign (by operation
of law or otherwise), lease, license, exchange or otherwise transfer or dispose of any of the Collateral.

 

    	 	-18-	 

     

    

 

(ii)         Except
to the extent expressly permitted by Section 7.02(a) of the Financing Agreement, no Grantor will create, suffer to
exist or grant any Lien upon or with respect to any Collateral.

 

(i)          Intellectual
Property.

 

(i)          Upon
the reasonable request of the Collateral Agent and to the extent applicable, in order to facilitate filings with the United States
Patent and Trademark Office and the United States Copyright Office, each Grantor shall execute and deliver to the Collateral Agent
one or more Copyright Security Agreements, Trademark Security Agreements, or Patent Security Agreements to further evidence the
Collateral Agent’s Lien on such Grantor’s Patents, Trademarks, or Copyrights, and the General Intangibles of such Grantor
relating thereto or represented thereby.

 

(ii)         Each
Grantor shall have the duty, with respect to Intellectual Property that is necessary in or material to the conduct of such Grantor’s
business, to protect and diligently enforce and defend at such Grantor’s expense its Intellectual Property, including (A) to
diligently enforce and defend, including promptly suing for infringement, misappropriation, or dilution and to recover any and
all damages for such infringement, misappropriation, or dilution, and filing for opposition, interference, and cancellation against
conflicting Intellectual Property rights of any Person, (B) to prosecute diligently any trademark application or service mark
application that is part of the Trademarks pending as of the date hereof or hereafter until the termination of this Agreement,
(C) to prosecute diligently any patent application that is part of the Patents pending as of the date hereof or hereafter
until the termination of this Agreement, (D) to take all reasonable and necessary action to preserve and maintain all of such
Grantor’s Trademarks, Patents, Copyrights, Licenses, and its rights therein, including paying all maintenance fees and filing
of applications for renewal, affidavits of use, and affidavits of noncontestability, and (E) to require all employees, consultants,
and contractors of each Grantor who were involved in the creation or development of such Intellectual Property to sign agreements
containing assignment of Intellectual Property rights and obligations of confidentiality. Each Grantor further agrees not to abandon
any Intellectual Property or Intellectual Property License that is necessary in or material to the conduct of such Grantor’s
business. Each Grantor hereby agrees to take the steps described in this Section 6(i)(ii) with respect to all new or
acquired Intellectual Property to which it or any of its Subsidiaries is now or later becomes entitled that is necessary in or
material to the conduct of such Grantor’s business.

 

(iii)        Grantors
acknowledge and agree that the Secured Parties shall have no duties with respect to any Intellectual Property or Licenses of any
Grantor. Without limiting the generality of this Section 6(i)(iii), Grantors acknowledge and agree that no member of
the Secured Parties shall be under any obligation to take any steps necessary to preserve rights in the Collateral consisting of
Intellectual Property or Licenses against any other Person, but any Secured Party may do so at its option from and after the occurrence
and during the continuance of an Event of Default, and all expenses incurred in connection therewith (including reasonable fees
and expenses of attorneys and other professionals) shall be for the sole account of the Borrowers and shall be chargeable to the
Loan Account.

 

    	 	-19-	 

     

    

 

(iv)        Each
Grantor shall promptly file an application with the United States Copyright Office for any Copyright that has not been registered
with the United States Copyright Office if such Copyright is necessary in or material to the conduct of such Grantor’s business.
Any expenses incurred in connection with the foregoing shall be borne by the Grantors.

 

(v)         On
each date on which financial statements are delivered by the Borrowers pursuant to Section 7.01(a)(ii) of the Financing
Agreement, each Grantor shall provide the Collateral Agent with a written report of all new Patents, Trademarks, or Copyrights
that are registered or the subject of pending applications for registrations, and of all Licenses that are material to the conduct
of such Grantor’s business, in each case, which were acquired, registered, or for which applications for registration were
filed by any Grantor during the prior period and any statement of use or amendment to allege use with respect to intent-to-use
trademark applications. In the case of such registrations or applications therefor, which were acquired by any Grantor, each such
Grantor shall file the necessary documents with the appropriate Governmental Authority identifying the applicable Grantor as the
owner (or as a co-owner thereof, if such is the case) of such Intellectual Property. In each of the foregoing cases, the applicable
Grantor shall promptly cause to be prepared, executed, and delivered to the Collateral Agent supplemental schedules to the applicable
Loan Documents to identify such Patent, Trademark and Copyright registrations and applications therefor (with the exception of
Trademark applications filed on an intent-to-use basis for which no statement of use or amendment to allege use has been filed)
and Licenses as being subject to the security interests created thereunder. Notwithstanding the foregoing, if no such Patents,
Trademarks, Copyrights or Licenses have been acquired in such time frame, the Grantors need not provide an additional report under
this subsection.

 

(vi)        Anything
to the contrary in this Agreement notwithstanding, in no event shall any Grantor, either itself or through any agent, employee,
licensee, or designee, file an application for the registration of any Copyright with the United States Copyright Office or any
similar office or agency in another country without giving the Collateral Agent written notice thereof at least three (3) Business
Days prior to such filing and complying with Section 6(i)(i) hereof and, if available, each such application for registration
shall be filed on an “expedited basis”. Upon receipt from the United States Copyright Office of notice of registration
of any Copyright, each Grantor shall promptly (but in no event later than three (3) Business Days (or such longer period as
agreed to by the Collateral Agent in writing in its sole discretion) following such receipt) notify (but without duplication of
any notice required by Section 6(i)(v) hereof) the Collateral Agent of such registration by delivering, or causing
to be delivered, to the Collateral Agent, documentation sufficient for the Collateral Agent to perfect the Collateral Agent’s
Liens on such Copyright. If any Grantor acquires from any Person any Copyright registered with the United States Copyright Office
or an application to register any Copyright with the United States Copyright Office, such Grantor shall promptly (but in no event
later than ten (10) Business Days (or such longer period as agreed to by the Collateral Agent in writing in its sole discretion)
following such acquisition) notify the Collateral Agent of such acquisition and deliver, or cause to be delivered, to the Collateral
Agent, documentation sufficient for the Collateral Agent to perfect the Collateral Agent’s Liens on such Copyright. In the
case of such Copyright registrations or applications therefor which were acquired by any Grantor, each such Grantor shall promptly
(but in no event later than ten (10) Business Days (or such longer period as agreed to by the Collateral Agent in writing
in its sole discretion) following such acquisition) file the necessary documents with the appropriate Governmental Authority identifying
the applicable Grantor as the owner (or as a co-owner thereof, if such is the case) of such Copyrights.

 

    	 	-20-	 

     

    

 

(vii)       Each
Grantor shall take reasonable steps to maintain the confidentiality of, and otherwise protect and enforce its rights in, the Intellectual
Property that is necessary in or material to the conduct of such Grantor’s business, including, as applicable (A) protecting
the secrecy and confidentiality of its confidential information and trade secrets by having and enforcing a policy requiring all
current employees, consultants, licensees, vendors and contractors with access to such information to execute appropriate confidentiality
agreements; (B) taking actions reasonably necessary to ensure that no trade secret falls into the public domain; and (C) protecting
the secrecy and confidentiality of the source code of all software programs and applications of which it is the owner or licensee
by having and enforcing a policy requiring any licensees (or sublicensees) of such source code to enter into license agreements
with commercially reasonable use and non-disclosure restrictions.

 

(viii)      No
Grantor shall enter into any License to receive any license or rights in any Intellectual Property of any other Person unless such
Grantor has used commercially reasonable efforts to permit the assignment of or grant of a security interest in such Intellectual
Property License (and all rights of Grantor thereunder) to the Collateral Agent (and any transferees of the Collateral Agent).

 

(j)          Deposit,
Commodities and Securities Accounts. Subject to the requirements and conditions set forth in Article VIII of the
Financing Agreement, each Grantor shall cause each bank and other financial institution with an account referred to in Schedule VII
hereto (other than any Excluded Account) to execute and deliver to the Collateral Agent (or its designee) a control agreement,
in form and substance reasonably satisfactory to the Origination Agent, duly executed by such Grantor and such bank or financial
institution. Subject to the following sentence, without the prior written consent of the Collateral Agent, no Grantor shall make
or maintain any Deposit Account, Commodity Account or Securities Account except for (i) the accounts set forth in Schedule VII
hereto (as such schedule may be updated from time to time) or (ii) accounts with respect to which the applicable bank or financial
institution shall have executed and delivered to the Collateral Agent a control agreement, in form and substance reasonably satisfactory
to the Collateral Agent, with respect to such account. The provisions of this Section 6(j) shall not apply to Excluded
Accounts (whether now existing or hereafter opened or acquired).

 

(k)          Titled
Collateral. At the reasonable request of the Collateral Agent, each Grantor shall (i) cause all Collateral, now owned or hereafter
acquired by any Grantor, which under applicable law are required to be registered, to be properly registered in the name of such
Grantor, (ii) cause all Titled Collateral, to be properly titled in the name of such Grantor, and if reasonably requested by the
Origination Agent, with the Collateral Agent’s Lien noted thereon and (iii) if reasonably requested by the Origination Agent
and to the extent perfection is required hereunder with respect to Titled Collateral with an aggregate value of more than $100,000,
promptly deliver to the Collateral Agent (or its designee or custodian) originals of all such Certificates of Title or certificates
of ownership for such Titled Collateral, with the Collateral Agent’s Lien noted thereon.

 

    	 	-21-	 

     

    

 

(l)          Control.
Each Grantor hereby agrees to take any or all action that may be necessary or desirable or that the Collateral Agent may reasonably
request in order for the Collateral Agent to obtain control in accordance with Sections 9-104, 9-105, 9-106, and 9-107
of the Code with respect to the following Collateral: (i) Electronic Chattel Paper, (ii) Investment Property and (iii) Letter-of-Credit
Rights. Each Grantor hereby acknowledges and agrees that any agent or designee of the Collateral Agent shall be deemed to be a
“secured party” with respect to the Collateral under the control of such agent or designee for all purposes.

 

(m)          Records;
Inspection and Reporting.

 

(i)          Each
Grantor shall keep adequate records concerning the Accounts, Chattel Paper and Pledged Interests.

 

(ii)         Except
as otherwise expressly permitted by Section 7.02(m) of the Financing Agreement, no Grantor shall change (A) its
name, identity or organizational structure, without giving the Collateral Agent and the Origination Agent at least thirty (30)
days’ (or such shorter time period as may be agreed by the Collateral Agent and the Origination Agent in their discretion)
prior written notice, (B) its jurisdiction of incorporation or organization as set forth in Schedule I hereto
or (C) its chief executive office as set forth in Schedule VI hereto. Each Grantor shall immediately notify the
Collateral Agent upon obtaining an organizational identification number, if on the date hereof such Grantor did not have such identification
number.

 

(n)          Partnership
and Limited Liability Company Interest. Except with respect to partnership interests and membership interests evidenced by
a certificate, which certificate has been pledged and delivered to the Collateral Agent pursuant to Section 4 hereof,
no Grantor that is a partnership or a limited liability company shall, nor shall any Grantor with any Subsidiary that is a partnership
or a limited liability company, permit such partnership interests or membership interests to (i) be dealt in or traded on
securities exchanges or in securities markets, (ii) become a security for purposes of Article 8 of any relevant Uniform Commercial
Code, (iii) become an investment company security within the meaning of Section 8-103 of any relevant Uniform Commercial
Code or (iv) be evidenced by a certificate. Each Grantor agrees that such partnership interests or membership interests shall
constitute General Intangibles.

 

SECTION 7.          Voting
Rights, Dividends, Etc. in Respect of the Pledged Interests.

 

(a)          So
long as no Event of Default shall have occurred and be continuing:

 

    	 	-22-	 

     

    

 

(i)          each
Grantor may exercise any and all voting and other consensual rights pertaining to any Pledged Interests for any purpose not inconsistent
with the terms of this Agreement, the Financing Agreement or the other Loan Documents; provided, however, that (A) each
Grantor will give the Collateral Agent at least five (5) Business Days’ written notice of the manner in which it intends
to exercise, or the reasons for refraining from exercising, any such right that could reasonably be expected to adversely affect
in any material respect the value, liquidity or marketability of any Collateral or the creation, perfection and priority of the
Collateral Agent’s Lien; and (B) none of the Grantors will exercise or refrain from exercising any such right, as the
case may be, if Collateral Agent gives a Grantor notice that, in the Collateral Agent’s judgment, such action (or inaction)
could reasonably be expected to adversely affect in any material respect the value, liquidity or marketability of any Collateral
or the creation, perfection and priority of the Collateral Agent’s Lien;

 

(ii)         each
of the Grantors may receive and retain any and all dividends, interest or other distributions paid in respect of the Pledged Interests
to the extent permitted by the Financing Agreement; provided, however, that any and all (A) dividends and interest
paid or payable other than in cash in respect of, and Instruments and other property received, receivable or otherwise distributed
in respect of or in exchange for, any Pledged Interests, (B) dividends and other distributions paid or payable in cash in
respect of any Pledged Interests in connection with a partial or total liquidation or dissolution or in connection with a reduction
of capital, capital surplus or paid-in surplus, and (C) cash paid, payable or otherwise distributed in redemption of, or in
exchange for, any Pledged Interests, together with any dividend, interest or other distribution or payment which at the time of
such payment was not permitted by the Financing Agreement, shall be, and shall forthwith be delivered to the Collateral Agent,
to hold as, Pledged Interests and shall, if received by any of the Grantors, be received in trust for the benefit of the Collateral
Agent, shall be segregated from the other property or funds of the Grantors, and shall be forthwith delivered to the Collateral
Agent in the exact form received with any necessary indorsement and/or appropriate stock powers duly executed in blank, to be held
by the Collateral Agent as Pledged Interests and as further collateral security for the Secured Obligations; and

 

(iii)        the
Collateral Agent will execute and deliver (or cause to be executed and delivered) to a Grantor all such proxies and other instruments
as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights which it
is entitled to exercise pursuant to Section 7(a)(i) hereof and to receive the dividends, interest and/or other distributions
which it is authorized to receive and retain pursuant to Section 7(a)(ii) hereof.

 

(b)          Upon
the occurrence and during the continuance of an Event of Default:

 

(i)          all
rights of each Grantor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant
to Section 7(a)(i) hereof, and to receive the dividends, distributions, interest and other payments that it would otherwise
be authorized to receive and retain pursuant to Section 7(a)(ii) hereof (other than any such payments that constitute
Permitted Restricted Payments pursuant to clause (a) or (b) of the definition thereof), shall cease, and all such rights shall
thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise such voting and other consensual
rights and to receive and hold as Pledged Interests such dividends, distributions and interest payments;

 

    	 	-23-	 

     

    

 

(ii)         the
Collateral Agent is authorized to notify each debtor with respect to the Pledged Debt to make payment directly to the Collateral
Agent (or its designee) and may collect any and all moneys due or to become due to any Grantor in respect of the Pledged Debt,
and each of the Grantors hereby authorizes each such debtor to make such payment directly to the Collateral Agent (or its designee)
without any duty of inquiry;

 

(iii)        without
limiting the generality of the foregoing, the Collateral Agent may at its option exercise any and all rights of conversion, exchange,
subscription or any other rights, privileges or options pertaining to any of the Pledged Interests as if it were the absolute owner
thereof, including, without limitation, the right to exchange, in its discretion, any and all of the Pledged Interests upon the
merger, consolidation, reorganization, recapitalization or other adjustment of any Pledged Issuer, or upon the exercise by any
Pledged Issuer of any right, privilege or option pertaining to any Pledged Interests, and, in connection therewith, to deposit
and deliver any and all of the Pledged Interests with any committee, depository, transfer agent, registrar or other designated
agent upon such terms and conditions as it may determine; and

 

(iv)        all
dividends, distributions, interest and other payments that are received by any of the Grantors contrary to the provisions of Section 7(b)(i)
hereof shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of the Grantors,
and shall be forthwith paid over to the Collateral Agent as Pledged Interests in the exact form received with any necessary indorsement
and/or appropriate stock powers duly executed in blank, to be held by the Collateral Agent as Pledged Interests and as further
collateral security for the Secured Obligations.

 

SECTION 8.          Additional
Provisions Concerning the Collateral.

 

(a)          To
the maximum extent permitted by applicable law, and for the purpose of taking any action that the Collateral Agent may deem necessary
or advisable to accomplish the purposes of this Agreement, each Grantor hereby (i) authorizes the Collateral Agent to execute
any such agreements, instruments or other documents in such Grantor’s name and to file such agreements, instruments or other
documents in such Grantor’s name and in any appropriate filing office, (ii) authorizes the Collateral Agent at any time
and from time to time to file, one or more financing or continuation statements and amendments thereto, relating to the Collateral
(including, without limitation, any such financing statements that (A) describe the Collateral as “all assets”
or “all personal property” (or words of similar effect) or that describe or identify the Collateral by type or in any
other manner as the Collateral Agent may determine, regardless of whether any particular asset of such Grantor falls within the
scope of Article 9 of the Uniform Commercial Code or whether any particular asset of such Grantor constitutes part of
the Collateral, and (B) contain any other information required by Part 5 of Article 9 of the Code for the sufficiency
or filing office acceptance of any financing statement, continuation statement or amendment, including, without limitation, whether
such Grantor is an organization, the type of organization and any organizational identification number issued to such Grantor)
and (iii) ratifies such authorization to the extent that the Collateral Agent has filed any such financing statements, continuation
statements, or amendments thereto, prior to the date hereof. A photocopy or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.

 

    	 	-24-	 

     

    

 

(b)          Each
Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact and proxy, with full authority in the place and
stead of such Grantor and in the name of such Grantor or otherwise, from time to time after the occurrence and during the continuance
of an Event of Default in the Collateral Agent’s discretion, to take any action and to execute any instrument that the Collateral
Agent may deem necessary or advisable to accomplish the purposes of this Agreement (subject to the rights of a Grantor under Section 6
hereof and Section 7(a) hereof), including, without limitation, (i) to obtain and adjust insurance required to
be paid to the Collateral Agent pursuant to the Financing Agreement, (ii) to ask, demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due and to become due under or in connection with the respect of any Collateral,
(iii) to receive and open all mail addressed to such Grantor and to notify postal authorities to change the address for the delivery
of mail to such Grantor to that of Collateral Agent, (iv) to receive, endorse, and collect any drafts or other Instruments,
Documents and Chattel Paper in connection with clause (i) or (ii) above, (v) to receive, indorse and collect all
Instruments made payable to such Grantor representing any dividend, interest payment or other distribution in respect of any Pledged
Interests and to give full discharge for the same, (vi) to file any claims or take any action or institute any proceedings
which the Collateral Agent may deem necessary or desirable for the collection of any Collateral or otherwise to enforce the rights
of the Collateral Agent and the Lenders with respect to any Collateral, (vii) to execute assignments, licenses and other documents
to enforce the rights of the Collateral Agent and the Lenders with respect to any Collateral, (viii) to pay or discharge taxes
or Liens levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary
to discharge the same to be determined by the Collateral Agent in its sole discretion, and such payments made by the Collateral
Agent to become Obligations of such Grantor to the Collateral Agent, due and payable immediately without demand, subject to the
terms of the Financing Agreement, (ix) to sign and endorse any invoices, freight or express bills, bills of lading, storage
or warehouse receipts, assignments, verifications and notices in connection with Accounts, Chattel Paper and other documents relating
to the Collateral, (x) to repair, alter, or supply goods, if any, necessary to fulfill in whole or in part the purchase order of
any Person obligated to such Grantor in respect of any Account of such Grantor, (xi) to use any Intellectual Property or Intellectual
Property Licenses of such Grantor, including but not limited to any labels, Patents, Trademarks, trade names, URLs, domain names,
industrial designs, Copyrights, or advertising matter, in preparing for sale, advertising for sale, or selling Inventory or other
Collateral and to collect any amounts due under Accounts, contracts or Negotiable Collateral of such Grantor, and (xii) Collateral
Agent, on behalf of the Secured Parties, shall have the right, but shall not be obligated, to bring suit in its own name to enforce
the Intellectual Property and Licenses and, if Collateral Agent shall commence any such suit, the appropriate Grantor shall, at
the request of Collateral Agent, do any and all lawful acts and execute any and all proper documents reasonably required by Collateral
Agent in aid of such enforcement. Each Grantor hereby ratifies all that such attorney-in-fact shall lawfully do or cause to be
done by virtue hereof. This power is coupled with an interest and is irrevocable until the date on which all of the Secured Obligations
(other than Contingent Indemnity Obligations) have been indefeasibly paid in full in cash after the termination of each Lender’s
Commitment and each of the Loan Documents.

 

    	 	-25-	 

     

    

 

(c)          For
the purpose of enabling the Collateral Agent to exercise rights and remedies hereunder, at such time after the occurrence and during
the continuance of an Event of Default as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies,
and for no other purpose, each Grantor hereby (i) grants to the Collateral Agent an irrevocable, non-exclusive license (exercisable
without payment of royalty or other compensation to any Grantor) to use, assign, license or sublicense any Intellectual Property
now or hereafter owned by any Grantor, wherever the same may be located, including in such license reasonable access to all media
in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout
thereof; and (ii) assigns to the Collateral Agent, to the extent assignable, all of its rights to any Intellectual Property
now or hereafter licensed or used by any Grantor. Notwithstanding anything contained herein to the contrary, but subject to the
provisions of the Financing Agreement that limit the right of a Grantor to dispose of its property and Section 6(i)
hereof, so long as no Event of Default shall have occurred and be continuing, each Grantor may exploit, use, enjoy, protect, license,
sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary course of
its business. In furtherance of the foregoing, unless an Event of Default shall have occurred and be continuing, the Collateral
Agent shall from time to time, upon the written request of a Grantor, execute and deliver any instruments, certificates or other
documents, in the form so requested, which such Grantor shall have certified are appropriate (in such Grantor’s judgment)
to allow it to take any action permitted above (including relinquishment of the license provided pursuant to this clause (c)
as to any Intellectual Property). Further, upon the date on which all of the Secured Obligations (other than Contingent Indemnity
Obligations) have been indefeasibly paid in full in cash after the termination of each Lender’s Commitment and each of the
Loan Documents, the Collateral Agent (subject to Section 13(e) hereof) shall release and reassign to the Grantors all
of the Collateral Agent’s right, title and interest in and to the Intellectual Property, and the Licenses, all without recourse,
representation or warranty whatsoever and at the Grantors’ sole expense. The exercise of rights and remedies hereunder by
the Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by any Grantor
in accordance with the second sentence of this clause (c). Each Grantor hereby releases the Collateral Agent from any claims,
causes of action and demands at any time arising out of or with respect to any actions taken or omitted to be taken by the Collateral
Agent under the powers of attorney granted herein other than actions taken or omitted to be taken through the Collateral Agent’s
gross negligence or willful misconduct, as determined by a final determination of a court of competent jurisdiction.

 

(d)          If
any Grantor fails to perform any agreement or obligation contained herein, the Collateral Agent may itself perform, or cause performance
of, such agreement or obligation, in the name of such Grantor or the Collateral Agent, and the expenses of the Collateral Agent
incurred in connection therewith shall be jointly and severally payable by the Grantors pursuant to Section 10 hereof
and shall be secured by the Collateral.

 

    	 	-26-	 

     

    

 

(e)          The
powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral, for the benefit of the
Secured Parties, and shall not impose any duty upon it to exercise any such powers. Other than the exercise of reasonable care
to assure the safe custody of any Collateral in its actual possession and the accounting for moneys actually received by it hereunder,
the Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against
prior parties or any other rights pertaining to any Collateral and shall be relieved of all responsibility for any Collateral in
its actual possession upon surrendering it or tendering surrender of it to any of the Grantors (or whomsoever shall be lawfully
entitled to receive the same or as a court of competent jurisdiction shall direct). The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which the Collateral Agent accords its own property, it being understood that the Collateral Agent
shall not have responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders
or other matters relating to any Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such matters.
The Collateral Agent shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution
in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent
or bailee selected by the Collateral Agent in good faith.

 

(f)          Anything
herein to the contrary notwithstanding (i) each Grantor shall remain liable under the Licenses and otherwise in respect of
the Collateral to the extent set forth therein to perform all of its obligations thereunder to the same extent as if this Agreement
had not been executed, (ii) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor
from any of its obligations under the Licenses or otherwise in respect of the Collateral, and (iii) the Collateral Agent shall
not have any obligation or liability by reason of this Agreement under the Licenses or otherwise in respect of the Collateral,
nor shall the Collateral Agent be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

 

(g)          The
Collateral Agent may at any time after the occurrence during the continuance of an Event of Default in its discretion (i) without
notice to any Grantor, transfer or register in the name of the Collateral Agent or any of its nominees any or all of the Pledged
Interests, subject only to the revocable rights of such Grantor under Section 7(a) hereof, and (ii) exchange certificates
or Instruments constituting Pledged Interests for certificates or Instruments of smaller or larger denominations.

 

SECTION 9.          Remedies
Upon Default. If any Event of Default shall have occurred and be continuing:

 

    	 	-27-	 

     

    

 

(a)          The
Collateral Agent may exercise in respect of the Collateral, in addition to any other rights and remedies provided for herein, in
the other Loan Documents, or otherwise available to it, all of the rights and remedies of a secured party upon default under the
Code (whether or not the Code applies to the affected Collateral), and also may (i) take absolute control of the Collateral,
including, without limitation, transfer into the Collateral Agent’s name or into the name of its nominee or nominees (to
the extent the Collateral Agent has not theretofore done so) and thereafter receive, for the benefit of the Collateral Agent and
the Lenders, all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with
respect thereto as though it were the outright owner thereof, (ii) require each Grantor to, and each Grantor hereby agrees
that it will at its own expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed
by the Collateral Agent and make it available to the Collateral Agent at a place or places to be designated by the Collateral Agent
that is reasonably convenient to both parties, and the Collateral Agent may enter into and occupy any premises owned or leased
by any Grantor where the Collateral or any part thereof is located or assembled for a reasonable period in order to effectuate
the Collateral Agent’s rights and remedies hereunder or under law, without obligation to any Grantor in respect of such occupation,
and (iii) without notice except as specified below and without any obligation to prepare or process the Collateral for sale,
(A) sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s
offices, at any exchange or broker’s board or elsewhere, for cash, on credit or for future delivery, and at such price or
prices and upon such other terms as the Collateral Agent may deem commercially reasonable and/or (B) lease, license or otherwise
dispose of the Collateral or any part thereof upon such terms as the Collateral Agent may deem commercially reasonable. Each Grantor
agrees that, to the extent notice of sale or any other disposition of the Collateral shall be required by law, at least ten (10) days’
prior notice to the applicable Grantor of the time and place of any public sale or the time after which any private sale or other
disposition of the Collateral is to be made shall constitute reasonable notification and specifically such notification shall constitute
a reasonable “authenticated notification of disposition” within the meaning of Section 9-611 of the Code. The Collateral
Agent shall not be obligated to make any sale or other disposition of Collateral regardless of notice of sale having been given.
The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor,
and such sale may, without further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that
(A) the internet shall constitute a “place” for purposes of Section 9-610(b) of the Code, and (B) to the extent notification
of sale shall be required by law, notification by mail of the URL where a sale will occur and the time when a sale will commence
at least ten (10) days prior to the sale shall constitute a reasonable notification for purposes of Section 9-611(b) of the Code.
Each Grantor agrees that any sale of Collateral to a licensor pursuant to the terms of a license agreement between such licensor
and a Grantor is sufficient to constitute a commercially reasonable sale (including as to method, terms, manner, and time) within
the meaning of Section 9-610 of the Code. Each Grantor hereby waives any claims against the Collateral Agent and the Lenders arising
by reason of the fact that the price at which the Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale or was less than the aggregate amount of the Secured Obligations, even if the Collateral
Agent accepts the first offer received and does not offer the Collateral to more than one offeree, and waives all rights that such
Grantor may have to require that all or any part of the Collateral be marshaled upon any sale (public or private) thereof. Each
Grantor hereby acknowledges that (i) any such sale of the Collateral by the Collateral Agent shall be made without warranty,
(ii) the Collateral Agent may specifically disclaim any warranties of title, possession, quiet enjoyment or the like, (iii) the
Collateral Agent may bid (which bid may be, in whole or in part, in the form of cancellation of indebtedness), if permitted by
law, for the purchase, lease, license or other disposition of the Collateral or any portion thereof for the account of the Collateral
Agent (on behalf of itself and the Lenders) and (iv) such actions set forth in clauses (i), (ii) and (iii) above
shall not adversely affect the commercial reasonableness of any such sale of the Collateral. In addition to the foregoing, (i) upon
written notice to any Grantor from the Collateral Agent, each Grantor shall cease any use of the Intellectual Property or any trademark,
patent or copyright similar thereto for any purpose described in such notice; (ii) the Collateral Agent may, at any time and
from time to time, upon five (5) days’ prior notice to any Grantor, license, whether general, special or otherwise,
and whether on an exclusive or non-exclusive basis, any of the Intellectual Property, throughout the universe for such term or
terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole discretion determine; and (iii) the
Collateral Agent may, at any time, pursuant to the authority granted in Section 8 hereof (such authority being effective
upon the occurrence and during the continuance of an Event of Default), execute and deliver on behalf of a Grantor, one or more
instruments of assignment of the Intellectual Property (or any application or registration thereof), in form suitable for filing,
recording or registration in any country.

 

    	 	-28-	 

     

    

 

(b)          Each
Grantor recognizes that the Collateral Agent may deem it impracticable to effect a public sale of all or any part of the Pledged
Shares or any other securities constituting Pledged Interests and that the Collateral Agent may, therefore, determine to make one
or more private sales of any such securities to a restricted group of purchasers who will be obligated to agree, among other things,
to acquire such securities for their own account, for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than the prices and
other terms which might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sales
shall be deemed to have been made in a commercially reasonable manner and that the Collateral Agent shall have no obligation to
delay the sale of any such securities for the period of time necessary to permit the issuer of such securities to register such
securities for public sale under the Securities Act. Each Grantor further acknowledges and agrees that any offer to sell such securities
which has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general circulation in
the financial community of New York, New York (to the extent that such an offer may be so advertised without prior registration
under the Securities Act) or (ii) made privately in the manner described above to not less than fifteen bona fide offerees
shall be deemed to involve a “public disposition” for the purposes of Section 9-610(c) of the Code (or any successor
or similar, applicable statutory provision) as then in effect in the State of New York, notwithstanding that such sale may not
constitute a “public offering” under the Securities Act, and that the Collateral Agent may, in such event, bid for
the purchase of such securities.

 

(c)          Any
cash held by the Collateral Agent (or its agent or designee) as Collateral and all Cash Proceeds received by the Collateral Agent
(or its agent or designee) in respect of any sale of or collection from, or other realization upon, all or any part of the Collateral
may, in the discretion of the Collateral Agent, be held by the Collateral Agent (or its agent or designee) as collateral for, and/or
then or at any time thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to Section 10
hereof) in whole or in part by the Collateral Agent against, all or any part of the Secured Obligations in such order as the Collateral
Agent shall elect, consistent with the provisions of the Financing Agreement. Any surplus of such cash or Cash Proceeds held by
the Collateral Agent (or its agent or designee) and remaining after the date on which all of the Secured Obligations (other than
Contingent Indemnity Obligations) have been indefeasibly paid in full in cash after the termination of each Lender’s Commitment
and each of the Loan Documents, shall be paid over to whomsoever shall be lawfully entitled to receive the same or as a court of
competent jurisdiction shall direct.

 

    	 	-29-	 

     

    

 

(d)          In
the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which the Collateral
Agent and the Lenders are legally entitled, the Grantors shall be jointly and severally liable for the deficiency, together with
interest thereon at the highest rate specified in any applicable Loan Document for interest on overdue principal thereof or such
other rate as shall be fixed by applicable law, together with the costs of collection and the reasonable fees, costs, expenses
and other client charges of any attorneys employed by the Collateral Agent to collect such deficiency.

 

(e)          Each
Grantor hereby acknowledges that if the Collateral Agent complies with any applicable requirements of law in connection with a
disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of any sale or other disposition
of the Collateral.

 

(f)          The
Collateral Agent shall not be required to marshal any present or future collateral security (including, but not limited to, this
Agreement and the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such
collateral security or other assurances of payment in any particular order, and all of the Collateral Agent’s rights and
remedies hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition
to all other rights, however existing or arising. To the extent that any Grantor lawfully may, such Grantor hereby agrees that
it will not invoke any law relating to the marshalling of collateral which might cause delay in or impede the enforcement of the
Collateral Agent’s rights and remedies under this Agreement or under any other instrument creating or evidencing any of the
Secured Obligations or under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is
secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives
the benefits of all such laws.

 

(g)          The
Collateral Agent is hereby granted a license or other right to use, without liability for royalties or any other charge, each Grantor’s
Intellectual Property, including but not limited to, any labels, Patents, Trademarks, trade names, URLs, domain names, industrial
designs, Copyrights, and advertising matter, whether owned by any Grantor or with respect to which any Grantor has rights under
license, sublicense, or other agreements (including any License), as it pertains to the Collateral, in preparing for sale, advertising
for sale and selling any Collateral, and each Grantor’s rights under all licenses and all franchise agreements shall inure
to the benefit of the Collateral Agent.

 

(h)          Each
of the Grantors irrevocably and unconditionally:

 

    	 	-30-	 

     

    

 

(i)          consents
to the appointment of pre-judgment and/or post- judgment receiver with all of the same powers that would otherwise be available
to the Grantors, including, but not limited to the power to (A) hold, manage, control or dispose of the Collateral wherever
located, (B) take any action with respect to the Collateral to the maximum extent permitted by law and (C) conduct a
public or private sale of any or all of the Loan Parties’ right, title and interest in and to such Collateral, including
any disposition of the Collateral to the Collateral Agent/Lenders in exchange for cancellation of all or a portion of the Obligations;

 

(ii)         consents
that any such receiver can be appointed without a hearing or prior notice to the Grantors;

 

(iii)        agrees
not to oppose or otherwise interfere (directly or indirectly) with any effort by Collateral Agent to seek the appointment of a
receiver;

 

(iv)        waives
any right to demand that a bond be posted in connection with the appointment of any such receiver; and

 

(v)         waives
any right to appeal the entry of an order authorizing the appointment of a receiver.

 

SECTION 10.         Indemnity
and Expenses.

 

(a)          Each
Grantor jointly and severally agrees to defend, protect, indemnify and hold harmless each Agent and each other Indemnitee from
and against any and all claims, losses, damages, liabilities, obligations, penalties, fees, reasonable and documented costs and
expenses (including, without limitation, reasonable and documented attorneys’ fees, costs, expenses and disbursements) incurred
by such Agent or such Indemnitee to the extent that they arise out of or otherwise result from or relate to or are in connection
with this Agreement (including, without limitation, enforcement of this Agreement); provided, however, that the Grantors
shall not have any obligation to any Agent or any other Indemnitee under this subsection for any claims, losses or liabilities
which are finally determined by a final non-appealable judgment of a court of competent jurisdiction to have resulted primarily
from (x) the gross negligence or willful misconduct of such Indemnitee or (y) a material breach by such Agent or Indemnitee of
its obligations under this Agreement or the other Loan Documents.

 

(b)          Each
Grantor jointly and severally agrees to pay to the Agents upon demand the amount of any and all reasonable and documented costs
and expenses, including the reasonable and documented fees, costs, expenses and disbursements of counsel for the Agents and of
any experts and agents (including, without limitation, any collateral trustee which may act as agent of the Agents), which the
Agents may incur in connection with (i) the preparation, negotiation, execution, delivery, recordation, administration, amendment,
waiver or other modification or termination of this Agreement, (ii) the custody, preservation, use or operation of, or the
sale of, collection from, or other realization upon, any Collateral, (iii) the exercise or enforcement of any of the rights
of the Agents hereunder, or (iv) the failure by any Grantor to perform or observe any of the provisions hereof.

 

    	 	-31-	 

     

    

 

SECTION 11.         Notices,
Etc. All notices and other communications provided for hereunder shall be given in accordance with the notice provision of
the Financing Agreement.

 

SECTION 12.         Security
Interest Absolute; Joint and Several Obligations.

 

(a)          All
rights of the Secured Parties, all Liens and all obligations of each of the Grantors hereunder shall be absolute and unconditional
irrespective of (i) any lack of validity or enforceability of the Financing Agreement or any other Loan Document, (ii) any
change in the time, manner or place of payment of, or in any other term in respect of, all or any of the Secured Obligations, or
any other amendment or waiver of or consent to any departure from the Financing Agreement or any other Loan Document, (iii) any
exchange or release of, or non-perfection of any Lien on any Collateral, or any release or amendment or waiver of or consent to
departure from any guaranty, for all or any of the Secured Obligations, or (iv) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any of the Grantors in respect of the Secured Obligations. All authorizations
and agencies contained herein with respect to any of the Collateral are irrevocable and powers coupled with an interest.

 

(b)          Each
Grantor hereby waives (i) promptness and diligence, (ii) notice of acceptance and notice of the incurrence of any Obligation
by the Borrowers, (iii) notice of any actions taken by any Agent, any Lender, any Guarantor or any other Person under any
Loan Document or any other agreement, document or instrument relating thereto, (iv) all other notices, demands and protests,
and all other formalities of every kind in connection with the enforcement of the Obligations, the omission of or delay in which,
but for the provisions of this subsection (b), might constitute grounds for relieving such Grantor of any such Grantor’s
obligations hereunder and (v) any requirement that any Agent or any Lender protect, secure, perfect or insure any security
interest or other lien on any property subject thereto or exhaust any right or take any action against any Grantor or any other
Person or any collateral.

 

(c)          All
of the obligations of the Grantors hereunder are joint and several. The Collateral Agent may, in its sole and absolute discretion,
enforce the provisions hereof against any of the Grantors and shall not be required to proceed against all Grantors jointly or
seek payment from the Grantors ratably. In addition, the Collateral Agent may, in its sole and absolute discretion, select the
Collateral of any one or more of the Grantors for sale or application to the Secured Obligations, without regard to the ownership
of such Collateral, and shall not be required to make such selection ratably from the Collateral owned by all of the Grantors.
The release or discharge of any Grantor by the Collateral Agent shall not release or discharge any other Grantor from the obligations
of such Person hereunder.

 

SECTION 13.         Miscellaneous.

 

(a)          No
amendment of any provision of this Agreement (including any Schedule attached hereto) shall be effective unless it is in writing
and signed by each Grantor affected thereby and the Collateral Agent, and no waiver of any provision of this Agreement, and no
consent to any departure by any Grantor therefrom, shall be effective unless it is in writing and signed by the Collateral Agent,
and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

    	 	-32-	 

     

    

 

(b)          No
failure on the part of the Secured Parties to exercise, and no delay in exercising, any right hereunder or under any other Loan
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The rights and remedies of the Secured Parties provided herein and in the
other Loan Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights
of the Secured Parties under any Loan Document against any party thereto are not conditional or contingent on any attempt by such
Person to exercise any of its rights under any other Loan Document against such party or against any other Person, including but
not limited to, any Grantor.

 

(c)          This
Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject
to paragraph (e) below, until the date on which all of the Secured Obligations (other than Contingent Indemnity Obligations)
have been indefeasibly paid in full in cash after the termination of each Lender’s Commitment and each of the Loan Documents
and (ii) be binding on each Grantor and all other Persons who become bound as debtor to this Agreement in accordance with
Section 9-203(d) of the Code, and shall inure, together with all rights and remedies of the Secured Parties hereunder, to
the benefit of the Secured Parties and their respective successors, transferees and assigns. Without limiting the generality of
clause (ii) of the immediately preceding sentence, the Secured Parties may assign or otherwise transfer their respective rights
and obligations under this Agreement and any other Loan Document to any other Person pursuant to the terms of the Financing Agreement,
and such other Person shall thereupon become vested with all of the benefits in respect thereof granted to the Secured Parties
herein or otherwise. Upon any such assignment or transfer, all references in this Agreement to any Secured Party shall mean the
assignee of any such Secured Party. None of the rights or obligations of any Grantor hereunder may be assigned or otherwise transferred
without the prior written consent of the Collateral Agent, and any such assignment or transfer shall be null and void.

 

(d)          Upon
the date on which all of the Secured Obligations (other than Contingent Indemnity Obligations) have been indefeasibly paid in full
in cash after the termination of each Lender’s Commitment and each of the Loan Documents, (i) subject to paragraph (e)
below, this Agreement and the security interests and licenses created hereby shall terminate and all rights to the Collateral shall
revert to the Grantors and (ii) the Collateral Agent will, upon the Grantors’ request and at the Grantors’ expense,
without any representation, warranty or recourse whatsoever, (A) return to the Grantors (or whomsoever shall be lawfully entitled
to receive the same or as a court of competent jurisdiction shall direct) such of the Collateral as shall not have been sold or
otherwise disposed of or applied pursuant to the terms hereof and (B) execute and deliver to the Grantors such documents as
the Grantors shall reasonably request to evidence such termination.

 

    	 	-33-	 

     

    

 

(e)          This
Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor
for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or
creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time payment or performance of the Secured Obligations,
or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned
by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,”
or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof,
is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount
paid and not so rescinded, reduced, restored or returned.

 

(f)          Upon
the execution and delivery, or authentication, by any Person of a security agreement supplement in substantially the form of Exhibit C
hereto (each a “Security Agreement Supplement”), (i) such Person shall be referred to as an “Additional
Grantor” and shall be and become a Grantor, and each reference in this Agreement to “Grantor” shall also
mean and be a reference to such Additional Grantor, and each reference in this Agreement and the other Loan Documents to “Collateral”
shall also mean and be a reference to the Collateral of such Additional Grantor, and (ii) the supplemental Schedules I-XI
attached to each Security Agreement Supplement shall be incorporated into and become a part of and supplement Schedules I-XI,
respectively, hereto, and the Collateral Agent may attach such Schedules as supplements to such Schedules, and each reference to
such Schedules shall mean and be a reference to such Schedules, as supplemented pursuant hereto.

 

(g)          THIS
AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS REQUIRED
BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT OF PERFECTION
OR NON-PERFECTION OF THE SECURITY INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED
BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

(h)          EACH
GRANTOR HEREBY IRREVOCABLY CONSENTS TO AND WAIVES ANY RIGHT TO OBJECT TO OR OTHERWISE CONTEST THE APPOINTMENT OF A RECEIVER AFTER
THE OCCURRENCE OF AN EVENT OF DEFAULT. EACH GRANTOR (i) GRANTS SUCH WAIVER AND CONSENTS KNOWINGLY AFTER HAVING DISCUSSED THE
IMPLICATIONS THEREOF WITH COUNSEL, (ii) ACKNOWLEDGES THAT (A) THE UNCONTESTED RIGHT TO HAVE A RECEIVER APPOINTED FOR
THE FOREGOING PURPOSES IS CONSIDERED ESSENTIAL BY THE SECURED PARTIES IN CONNECTION WITH THE ENFORCEMENT OF THEIR RIGHTS AND REMEDIES
HEREUNDER AND UNDER THE OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH, AND (B) THE AVAILABILITY OF SUCH APPOINTMENT AS A
REMEDY UNDER THE FOREGOING CIRCUMSTANCES WAS A MATERIAL FACTOR IN INDUCING THE SECURED PARTIES TO MAKE (AND COMMIT TO MAKE) THE
LOAN TO THE BORROWERS, AND (iii) AGREES TO ENTER INTO ANY AND ALL STIPULATIONS IN ANY LEGAL ACTIONS, OR AGREEMENTS OR OTHER
INSTRUMENTS IN CONNECTION WITH THE FOREGOING AND TO COOPERATE FULLY WITH THE SECURED PARTIES IN CONNECTION WITH THE ASSUMPTION
AND EXERCISE OF CONTROL BY THE RECEIVER OVER ALL OR ANY PORTION OF THE COLLATERAL.

 

    	 	-34-	 

     

    

 

(i)          In
addition to and without limitation of any of the foregoing, this Agreement shall be deemed to be a Loan Document and shall otherwise
be subject to all of terms and conditions contained in Sections 12.10 and 12.11 of the Financing Agreement,
mutatis mutandi.

 

(j)          Each
Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding
with respect to this Agreement any special, exemplary, punitive or consequential damages.

 

(k)         Any
provision of this Agreement which 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 hereof or thereof or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

(l)          Section
headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other
purpose. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this Agreement.
Each provision of this Agreement shall be severable from every other provision of this Agreement for the purposes of determining
the legal enforceability of any specific provision.

 

(m)         This
Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which
shall be deemed an original, but all of such counterparts taken together shall constitute one and the same agreement. Delivery
of an executed counterpart of this Agreement by facsimile or electronic mail shall be equally effective as delivery of an original
executed counterpart.

 

(n)          Neither
this Agreement nor any uncertainty or ambiguity herein shall be construed against any member of the Lender Group, any Bank Product
Provider, or any Grantor, whether under any rule of construction or otherwise. This Agreement has been reviewed by all parties
and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes
and intentions of all parties hereto.

 

[REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

    	 	-35-	 

     

    

 

IN WITNESS WHEREOF, each
Grantor has caused this Agreement to be executed and delivered by its officer thereunto duly authorized, as of the date first above
written.

 

	 	GRANTORS:
	 	 
	
         

         
	
        LIMBACH FACILITY SERVICES LLC,

        a Delaware limited liability company

	 	 
	 	By:	
        /s/ John
        T. Jordan, Jr.

	 	 	Name:  John T. Jordan, Jr.
	 	 	Title:  Executive Vice President, Chief Financial Officer and Treasurer

 

	 	
        LIMBACH COMPANY LLC,

        a Delaware limited liability company

	 	 
	 	By:	
        /s/ John
        T. Jordan, Jr.

	 	 	Name:  John T. Jordan, Jr.
	 	 	Title:  Executive Vice President, Chief Financial Officer and Treasurer
	 	 	 
	 	
        LIMBACH COMPANY LP,

        a Delaware limited partnership

	 	 
	 	By:	
        /s/ John
        T. Jordan, Jr.

	 	 	Name:  John T. Jordan, Jr.
	 	 	Title:  Executive Vice President, Chief Financial Officer and Treasurer
	 	 
	 	
        HARPER LIMBACH LLC,

        a Delaware limited liability company

	 	 
	 	By:	
        /s/ John
        T. Jordan, Jr.

	 	 	Name:  John T. Jordan, Jr.
	 	 	Title:  Treasurer

 

[Signature
Page to PLEDGE AND Security Agreement]

 

     

     

    

 

	 	
        HARPER LIMBACH CONSTRUCTION LLC,

        a Delaware limited liability company

	 	 
	 	By:	
        /s/ John
        T. Jordan, Jr.

	 	 	Name:  John T. Jordan, Jr.
	 	 	Title:  Treasurer

 

	 	
        LIMBACH HOLDINGS, INC.,

        a Delaware corporation

	 	 
	 	By:	
        /s/ John
        T. Jordan, Jr.

	 	 	Name:  John T. Jordan, Jr.
	 	 	Title:  Chief Financial Officer
	 	 	 
	 	
        LIMBACH HOLDINGS LLC,

        a Delaware limited liability company

	 	 
	 	By:	
        /s/ John
        T. Jordan, Jr.

	 	 	Name:  John T. Jordan, Jr. 
	 	 	Title:  Executive Vice President, Chief Financial Officer and Treasurer

 

[Signature
Page to PLEDGE AND Security Agreement]

 

     

     

    

 

	Acknowledged and Agreed:	 
	 	 
	CITIZENS BANK, N.A.,	 
	as Collateral Agent	 

 

	By:	
        /s/ Robert
        Kelly
	 
	 	Name: Robert Kelly	 
	 	Title: Senior Vice President	 

 

[Signature
Page to PLEDGE AND Security Agreement]

 

     

     

    

 

EXHIBIT A

 

PLEDGE AMENDMENT

 

This Pledge Amendment,
dated __________ ____, ___, is delivered pursuant to Section 4 of the Security Agreement referred to below. The undersigned
hereby agrees that this Pledge Amendment may be attached to the Pledge and Security Agreement, dated April 12, 2019, as it may
heretofore have been or hereafter may be amended, restated, supplemented, modified or otherwise changed from time to time (the
“Security Agreement”) and that the promissory notes or shares listed on this Pledge Amendment shall be hereby
pledged and assigned to the Collateral Agent and become part of the Pledged Interests referred to in the Security Agreement and
shall secure all of the Secured Obligations referred to in the Security Agreement.

 

	Pledged Debt
	Grantor	 	Name of Maker	 	Description	 	Principal Amount

    Outstanding as of
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

	Pledged Shares
	Grantor	 	Name of

    Pledged

    Issuer	 	Number of

    Shares	 	Percentage of

    Outstanding

    Shares	 	Class	 	Certificate

    Number
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

	 	[PLEDGOR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	CITIZENS BANK, N.A.,	 
	as the Collateral Agent	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 	Exh. A-1	 

     

    

 

EXHIBIT B

 

GRANT OF A SECURITY INTEREST — [TRADEMARKS]
[PATENTS] [COPYRIGHTS]

 

This [Trademark][Copyright][Patent]
Security Agreement (this “[Trademark][Copyright][Patent] Security Agreement”) is made as of ____________, 20___,
by ____________ (“Grantor”), in favor of Citizens Bank, N.A., in its capacity as collateral agent for itself
and the other Secured Parties (together with its successors and assigns in such capacity, “Grantee”).

 

WHEREAS, the Grantor
[has adopted, used and is using, and holds all right, title and interest in and to, the trademarks and service marks listed on
the attached Schedule A, which trademarks and service marks are registered or applied for in the United States Patent
and Trademark Office (the “Trademarks”)] [holds all right, title and interest in the letter patents, design
patents and utility patents listed on the attached Schedule A, which patents are issued or applied for in the United
States Patent and Trademark Office (the “Patents”)] [holds all right, title and interest in the copyrights listed
on the attached Schedule A, which copyrights are registered in the United States Copyright Office (the “Copyrights”)];

 

WHEREAS, the Grantor
has entered into a Pledge and Security Agreement, dated April 12, 2019 (as amended, restated, supplemented, modified or otherwise
changed from time to time, the “Security Agreement”), in favor of Grantee; and

 

WHEREAS, pursuant to
the Security Agreement, the Grantor has granted to the Grantee for the benefit of the Secured Parties (as defined in the Security
Agreement), a continuing security interest in all right, title and interest of the Grantor in, to and under the [Trademarks, together
with, among other things, the goodwill of the business symbolized by the Trademarks] [Patents] [Copyrights] and the applications
and registrations thereof, and all proceeds thereof, including, without limitation, any and all causes of action which may exist
by reason of infringement thereof and any and all damages arising from past, present and future violations thereof (the “Collateral”),
to secure the payment, performance and observance of the Secured Obligations (as defined in the Security Agreement).

 

NOW, THEREFORE, as collateral
security for the payment, performance and observance of all of the Secured Obligations, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Grantor does hereby grant to the Grantee and grant to the Grantee
for the benefit of the Secured Parties, a continuing security interest in the Collateral to secure the prompt payment, performance
and observance of the Secured Obligations.

 

All capitalized terms
used but not otherwise defined herein have the meanings given to them in the Security Agreement

 

The Grantor does hereby
further acknowledge and affirm that the rights and remedies of the Grantee with respect to the Collateral are more fully set forth
in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth
herein.

 

    	 	Exh. B-1	 

     

    

 

This [Trademark][Patent][Copyright]
Agreement shall be construed under and governed by the provisions set forth in Sections 13(g), (h), and (i)
of the Security Agreement, mutatis mutandis.

 

This [Trademark][Patent][Copyright]
Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery
of an executed counterpart by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart.

 

[Remainder of page intentionally left
blank]

 

    	 	Exh. B-2	 

     

    

 

IN WITNESS WHEREOF, the
Grantor has caused this [Trademark][Copyright][Patent] Security Agreement to be duly executed by its officer thereunto duly authorized
as of the date first set forth above.

 

	 	[GRANTOR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	Exh. B-3	 

     

    

 

SCHEDULE A TO GRANT OF A SECURITY INTEREST

 

[Trademark Registrations and Applications]

 

[Patents and Patent Applications]

 

[Copyright Registrations and Applications]

 

    	 	Exh. B-4	 

     

    

 

EXHIBIT C

 

FORM OF SECURITY AGREEMENT SUPPLEMENT

 

[Date of Security Agreement Supplement]

 

Citizens Bank, N.A., as Collateral Agent

525 William Penn Place, 26th Floor

Pittsburgh, Pennsylvania 15219-1729

 

Ladies and Gentlemen:

 

Reference hereby is made
to (i) the Financing Agreement, dated as of April 12, 2019 (such agreement, as amended, restated, supplemented, modified
or otherwise changed from time to time, including any replacement agreement therefor, being hereinafter referred to as the “Financing
Agreement”) by and among Limbach Holdings, Inc., a Delaware corporation (“Ultimate Parent”), Limbach
Holdings LLC, a Delaware limited liability company (“Parent”), Limbach Facility Services LLC, a Delaware limited
liability company (“Limbach”), each subsidiary of Limbach listed as a “Borrower” on the signature
pages thereto (together with Limbach, each a “Borrower” and collectively, the “Borrowers”),
each subsidiary of Ultimate Parent listed as a “Guarantor” on the signature pages thereto (together with Ultimate Parent,
Parent and each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder, each a “Guarantor”
and collectively, the “Guarantors”), the lenders from time to time party thereto (each a “Lender”
and collectively, the “Lenders”), Citizens Bank, N.A. (“Citizens Bank”), as collateral agent
for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “Collateral Agent”),
Citizens Bank, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity,
the “Administrative Agent”) and Citizens Bank, as origination agent for the Lenders (in such capacity, together
with its successors and permitted assigns in such capacity, the “Origination Agent” and together with the Collateral
Agent and the Administrative Agent, each an “Agent” and collectively, the “Agents”) and (ii) the
Pledge and Security Agreement, dated as of April 12, 2019 (as amended, restated, supplemented or otherwise modified from time to
time, the “Security Agreement”), made by the Grantors (as defined therein) from time to time party thereto in
favor of the Collateral Agent. Capitalized terms defined in the Financing Agreement or the Security Agreement, not otherwise defined
herein and are used herein shall have the meanings ascribed to them in the Financing Agreement or the Security Agreement.

 

SECTION 1.          Grant
of Security. The undersigned hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security
interest in, all of its right, title and interest in and to all of the Collateral (as defined in the Security Agreement) of the
undersigned, whether now owned or hereafter acquired by the undersigned, wherever located and whether now or hereafter existing
or arising, including, without limitation, the property and assets of the undersigned set forth on the attached supplemental schedules
to the Schedules to the Security Agreement.

 

    	 	Exh. C-1	 

     

    

 

SECTION 2.          Security
for Obligations. The grant of a security interest in the Collateral by the undersigned under this Security Agreement Supplement
and the Security Agreement secures the payment of all Secured Obligations of the undersigned now or hereafter existing under or
in respect of the Loan Documents, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement
obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise. Without
limiting the generality of the foregoing, each of this Security Agreement Supplement and the Security Agreement secures the payment
of all amounts that constitute part of the Secured Obligations and that would be owed by the undersigned to the Collateral Agent
or any Secured Party under the Loan Documents but for the fact that such Secured Obligations are unenforceable or not allowable
due to the existence of a bankruptcy, reorganization or similar proceeding involving a Grantor.

 

SECTION 3.          Supplements
to Security Agreement Schedules. The undersigned has attached hereto supplemental Schedules I through XI
to Schedules I through XI, respectively, to the Security Agreement, and the undersigned hereby certifies, as
of the date first above written, that such supplemental Schedules have been prepared by the undersigned in substantially the form
of the equivalent Schedules to the Security Agreement, and such supplemental Schedules include all of the information required
to be scheduled to the Security Agreement and do not omit to state any information material thereto.

 

SECTION 4.          Representations
and Warranties. The undersigned hereby makes each representation and warranty set forth in Section 5 of the Security
Agreement (as supplemented by the attached supplemental Schedules) to the same extent as each other Grantor.

 

SECTION 5.          Obligations
Under the Security Agreement. The undersigned hereby agrees, as of the date first above written, to be bound as a Grantor by
all of the terms and provisions of the Security Agreement to the same extent as each of the other Grantors. The undersigned further
agrees, as of the date first above written, that each reference in the Security Agreement to an “Additional Grantor”
or a “Grantor” shall also mean and be a reference to the undersigned.

 

SECTION 6.          Governing
Law. This Security Agreement Supplement shall be governed by, and construed in accordance with, the laws of the State of New
York.

 

SECTION 7.          Loan
Document. In addition to and without limitation of any of the foregoing, this Security Agreement Supplement shall be deemed
to be a Loan Document and shall otherwise be subject to all of terms and conditions contained in Sections 12.10 and 12.11
of the Financing Agreement, mutatis mutandi.

 

	 	Very truly yours,
	 	 
	 	[NAME OF ADDITIONAL LOAN PARTY]
	 	 	 
	 	By:	 
	 		Name:
	 		Title:

 

    	 	Exh. C-2	 

     

    

 

	Acknowledged and Agreed:	 
	 	 
	Citizens Bank, N.A.,	 
	as Collateral Agent	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 	Exh. C-3Exhibit

Exhibit 10.1
BUSINESS LOAN AGREEMENT
	
								
	Principal
	Loan Date
	Maturity
	Loan No
	Call / Coll
	Account
	Officer
	Initials

	$100,000,000.00
	11-05-2015
	02-28-2021
	     4061100374
	 
	Note #1000
	823
	 

References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing "***" has been omitted due to text length limitations.
	
				
	Borrower:
	OFS Capital Corporation, a Delaware corporation
10 South Wacker Drive, Suite 2500
Chicago, IL  60606
	Lender:
	Pacific Western Bank
Los Angeles Real Estate and Construction
9701 Wilshire Boulevard, Suite 700
Beverly Hills, CA  90212

THIS BUSINESS LOAN AGREEMENT dated April 10, 2019, is made and executed between OFS Capital Corporation, a Delaware corporation ("Borrower") and Pacific Western Bank ("Lender") on the following terms and conditions.   Borrower has received prior commercial loans from Lender or has applied to Lender for a commercial loan or loans or other financial accommodations, including those which may be described on any exhibit or schedule attached to this Agreement.   Borrower understands and agrees that:   (A)   in granting, renewing, or extending any Loan, Lender is relying upon Borrower's representations, warranties, and agreements as set forth in this Agreement;   (B)   the granting, renewing, or extending of any Loan by Lender at all times shall be subject to Lender's sole judgment and discretion; and   (C)   all such Loans shall be and remain subject to the terms and conditions of this Agreement.
TERM.   This Agreement shall be effective as of April 10, 2019, and shall continue in full force and effect until such time as all of Borrower's Loans in favor of Lender have been paid in full, including principal, interest, costs, expenses, attorneys' fees, and other fees and charges, or until such time as the parties may agree in writing to terminate this Agreement.
ADVANCE AUTHORITY.   The following person or persons are authorized to request advances and authorize payments under the line of credit until
Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority: Bilal Rashid, Jeff Cerny, and Tod Reichert.
CONDITIONS PRECEDENT TO EACH ADVANCE.   Lender's obligation to make the initial Advance and each subsequent Advance under this Agreement shall be subject to the fulfillment to Lender's satisfaction of all of the conditions set forth in this Agreement and in the Related Documents.
Advance Rate. The aggregate principal amount of all Advances outstanding at any time shall not exceed 50.00% of all then outstanding non-SBIC investment loans made by Borrower or Guarantor to entities that are acceptable to Lender, which Borrower or Guarantor loans are deemed to be eligible by Lender in its sole discretion (“Eligible Loans”).   In addition to the other conditions set forth below, Lender’s obligation to make any Advance shall be subject to receipt by Lender of a consolidated borrowing base certificate from Borrower, in form and substance acceptable to Lender (“Borrowing Base Certificate”), listing all detail requested by Lender with respect to each Borrower and Guarantor loan then outstanding and calculating the availability based on the advance rate set forth above and the eligibility criteria of Lender (the “Borrowing Base”).
Unused Commitment Fee.  Any unused portion of the $100,000,000.00 commitment, in an amount over $15,000,000.00, shall be subject to a monthly fee of 0.50% (one-half percentage point per annum).
Non-Eligible Loan.   Without limiting Lender’s discretion, Eligible Loans shall specifically exclude each of the following loans made by Borrower or
Guarantor from time to time:
(a)  All loans where the loan documents (including promissory notes or assignments) evidencing and securing such loans are not being held by Custodian; all loans which together with the loan documents (including promissory notes or assignments) evidencing and securing such loans are not subject to a Custody Control Agreement that is in full force and effect and that Custodian, Borrower and Guarantor are in compliance with; 
(b)  All loans placed on non-accrual;
(c)  All loans that are 61-90 days or more past-due;
(d)  All loans to an entity if any loan to such entity is 61-90 days or more past-due;
(e)  All foreign loans; and
(f)  All subordinated investments (which, for purposes of this Agreement, means all investments identified as subordinated on Borrower’s consolidated schedule of investments included in any filing with the Securities and Exchange Commission).
Loan Documents.   Borrower shall provide to Lender the following documents for the Loan:   (1)   the Note;   (2)   Security Agreements granting to Lender security interests in the Collateral;   (3)   financing statements and all other documents perfecting Lender's Security Interests;   (4)   evidence of insurance as required below;   (5)   together with all such Related Documents as Lender may require for the Loan; all in form and substance satisfactory to Lender and Lender's counsel.
Borrower's Authorization.   Borrower shall have provided in form and substance satisfactory to Lender properly certified resolutions, duly authorizing the execution and delivery of this Agreement, the Note and the Related Documents.   In addition, Borrower shall have provided such other resolutions, authorizations, documents and instruments as Lender or its counsel, may require.
Payment of Fees and Expenses.   Borrower shall have paid to Lender all fees, charges, and other expenses which are then due and payable as specified in this Agreement or any Related Document.
Representations and Warranties.   The representations and warranties set forth in this Agreement, in the Related Documents, and in any document or certificate delivered to Lender under this Agreement are true and correct.
No Event of Default.   There shall not exist at the time of any Advance a condition which would constitute an Event of Default under this Agreement or under any Related Document.
REPRESENTATIONS AND WARRANTIES.   Borrower represents and warrants to Lender, as of the date of this Agreement, as of the 

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date of each disbursement of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at such other times expressly noted below:
Eligible Loans.   All Eligible Loans are made by and owned entirely either by Borrower or by Guarantor, free and clear of all liens except (A) for liens permitted or provided for under this Agreement or (B) liens in favor of Borrower or Guarantor, as applicable.
Organization.   Borrower is a corporation for profit which is, and at all times shall be, duly organized, validly existing, and in good standing under and by virtue of the laws of the State of Delaware.   Borrower is, and at all times shall be, duly qualified as a foreign corporation in all states in which the failure to so qualify would have a material adverse effect on its business or financial condition.   Borrower has the full power and authority to own its properties and to transact the business in which it is presently engaged or presently proposes to engage.   Borrower maintains an office at 10 South Wacker Drive, Suite 2500, Chicago, IL   60606.
Unless Borrower has designated otherwise in writing, the offices at which Borrower keeps its books and records including its records concerning the Collateral (other than books and records, including records concerning the Collateral, in the possession of Borrower’s custodian or third-party recordkeepers) are as follows: (1) 10 South Wacker Drive, Suite 2500, Chicago, IL   60606; (2) 4700 Wilshire Boulevard, Los Angeles, CA  90010; and (3) 540 Madison Avenue, New York, NY  10022.   Borrower will notify Lender prior to any change in the location of Borrower's state of organization or any change in Borrower's name.   Borrower shall do all things necessary to preserve and to keep in full force and effect its existence, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to Borrower and Borrower's business activities, except where the failure to comply could not reasonably be expected to be, have, or result in a material adverse effect on Borrower’s business or financial condition.
Assumed Business Names.   Borrower has filed or recorded all documents or filings required by law relating to all assumed business names used by Borrower.   Excluding the name of Borrower, the following is a complete list of all assumed business names under which Borrower does business: None.
Authorization.   Borrower's execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized by all necessary action by Borrower and do not result in a violation of or constitute a default under   (1)   any provision of   (a)   Borrower's articles  of incorporation or organization, or bylaws, or   (b)   any  agreement or other instrument binding upon Borrower or   (2)    any law, governmental regulation, court decree, or order applicable to Borrower or to Borrower's properties, the effect of which, in each case, could reasonably be expected to be, have, or result in a material adverse effect on Borrower’s business or financial condition.
Financial Information.   Each of Borrower's financial statements supplied to Lender present fairly in all material respects the financial condition, assets and liabilities and results of operations of Borrower at the dates and for the relevant periods indicated in accordance with GAAP consistently applied, and there has been no material adverse change in Borrower's financial condition subsequent to the date of the most recent financial statement supplied to Lender.   Borrower has no material contingent obligations except as disclosed in such financial statements.
Legal Effect.   This Agreement constitutes, and any instrument or agreement Borrower is required to give under this Agreement when delivered will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject to the effect of any applicable bankruptcy, moratorium, insolvency, reorganization or other similar law affecting the enforceability of creditors’ rights generally and to the effect of general principles of equity which may limit the availability of equitable remedies.
Properties.   Except as contemplated by this Agreement or as previously disclosed in Borrower's financial statements or in writing to Lender and as accepted by Lender, and except for liens permitted or provided for under this Agreement, Borrower owns and has good title to all of Borrower's properties free and clear of all Security Interests, and has not executed any security documents or financing statements relating to such properties. All of Borrower's properties are titled in Borrower's legal name, and Borrower has not used or filed a financing statement under any other name since November 7, 2012.
Hazardous Substances.   Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that:   Borrower has no knowledge of, or reason to believe that there has been (a) any material breach or violation of any Environmental Laws by Borrower; (b) any actual or threatened litigation or claims of any kind by any person (i) relating to non-compliance by or liability of Borrower under any Environmental Laws or (ii) that alleges than Borrower has liability or potential liability with respect to any Hazardous Substance or any Environmental Laws.
Litigation and Claims.   No material litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower's financial condition or properties, other than litigation, claims, or other events, if any, that have been disclosed in Borrower’s public filings.
Taxes.   To the best of Borrower's knowledge, all of Borrower's tax returns and reports that are or were required to be filed, have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently being or to be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided.
Lien Priority.   Unless otherwise previously disclosed to Lender in writing, and other than with respect to liens permitted or provided for under this Agreement or the Related Documents, Borrower has not entered into or granted any security agreements, or permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing repayment of Borrower's Loan and Note, that, as of the date of this Agreement, are in existence and are superior to Lender's Security Interests and rights in and to such Collateral.
Binding Effect.   This Agreement, the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers thereof, as well as upon their successors and assigns, and are legally enforceable in accordance with their respective terms, subject to the effect of any applicable bankruptcy, moratorium, insolvency, reorganization or other similar law affecting the enforceability of creditors’ rights generally and to the effect of general principles of equity which may limit the availability of equitable remedies.
AFFIRMATIVE COVENANTS.   Borrower covenants and agrees with Lender that, so long as this Agreement remains in effect, Borrower will:
Notices of Claims and Litigation.   Promptly inform Lender in writing of   (1)   all material adverse changes in Borrower's financial condition, and (2)   all existing and all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower or any Guarantor which could materially affect the financial condition of Borrower or the financial condition of any Guarantor.
Financial Records.   Maintain its books and records in accordance with GAAP, applied on a consistent basis (except for the omission of footnotes and year-end adjustments in interim financial statements), and permit Lender to examine and audit Borrower's books and records at all reasonable times.

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Financial Statements.   Furnish Lender with the following:
(i)   Financial Statements:
Annual Financial Statements.     Borrower shall provide to Lender, as soon as available, but in no event later than ninety (90) days after the end of each fiscal year, a consolidated and consolidating balance sheet and income statement for the period ended in form satisfactory to Lender, audited by a CPA acceptable to Lender or an independent public accountant of recognized national standing; provided that the requirements set forth in this paragraph may be fulfilled by providing to Lender the report of the Borrower to the Securities and Exchange Commission (“SEC”) on Form 10-K for the applicable fiscal year.   
Interim Financial Statements.   Borrower shall provide to Lender, as soon as available, but in no event later than forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of Borrower, a consolidated and consolidating balance sheet and income statement for the period ended in form satisfactory to Lender; provided that the requirements set forth in this paragraph may be fulfilled by providing to Lender the report of the Borrower to the SEC on Form 10-Q for the applicable quarterly period.   
(ii)   Financial Ratios/Covenants:
Minimum Tangible Net Asset Value.   Borrower shall maintain a minimum Net Asset Value in the amount of $125,000,000.00.   The term “Net Asset Value" is defined as the total assets less goodwill/other intangibles and less the total liabilities, on a consolidated basis.   This required value must be maintained at all times and may be evaluated quarterly.
Statutory Asset Coverage Test.   Statutory Asset Coverage Test shall not be less than 150%.   The term "Statutory Asset Coverage Test" is defined as the ratio which the value of total assets, less all liabilities and indebtedness not represented by “Senior Securities” (as such term is defined and determined pursuant to the Investment Company Act of 1940, as amended, and any orders of the SEC issued to the Borrower thereunder), bears to the aggregate amount of Senior Securities representing indebtedness.  For purposes of this Statutory Asset Coverage Test, any indebtedness of any SBIC shall be excluded from the definition of “Senior Securities.”  This required test must be maintained at all times and may be evaluated quarterly.
Minimum Quarterly Net Investment Income.   Borrower shall maintain a minimum Quarterly Net Investment Income after the management/incentive fees in the amount of $3,000,000.00.   The term "Net Investment Income" is defined as the total investment income less total expenses, as presented in Borrower’s consolidated financial statements.   This required minimum income must be maintained at all times and may be evaluated quarterly.
Debt / Worth Ratio. Borrower shall maintain a maximum ratio of Debt/Worth of 300%. The ratio "Debt/Worth" means Borrower's total liabilities divided by Borrower's Net Asset Value (as defined above).  This required ratio must be maintained at all times and may be evaluated quarterly. 
(iii)   Reports/Schedules/Statements/Certifications:
Borrowing Base Certificate.   Borrower shall provide to Lender a Borrowing Base Certificate in the form satisfactory to Lender, on or before the tenth (10th) day after the end of each calendar month.   The aforementioned Borrowing Base Certificate shall set forth a calculation of the Borrowing Base as of the effective date of such Borrowing Base Certificate reasonably acceptable to Lender, and unless Lender notifies Borrower within ten (10) Business Days of Lender's receipt of a Borrowing Base Certificate that Lender does not accept the calculation of the Borrowing Base set forth in such Borrowing Base Certificate, the Borrowing Base set forth shall be deemed to be the applicable Borrowing Base for Advances of Loans until delivery to Lender of the next succeeding Borrowing Base Certificate.
Additional Information.   Furnish such additional information and statements, as Lender may request from time to time.
Insurance.  Maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar business, operating in the same or similar locations.  Borrower, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Borrower or any other person.  In connection with all policies covering assets in which Lender holds or is offered a security interest for the Loans, Borrower will provide Lender with such lender's loss payable or other endorsements as Lender may require.
Insurance Reports.   Furnish to Lender, upon request of Lender, evidence of each existing insurance policy showing such information as Lender may reasonably request, including without limitation the following:   (1) the name of the insurer;  (2) the risks insured;  (3) the amount of the policy; (4) the properties insured;  (5) the then current property values on the basis of which insurance has been obtained; and   (6) the expiration date of the policy.  To the extent there is a change in the information provided by Borrower with respect to items (1), (2), (3), (4), or (6) of the preceding sentence, Borrower shall notify Lender and provide such changed information.
Guaranties.   Prior to disbursement of any Loan proceeds, furnish executed guaranties of the Loans in favor of Lender, executed by the Guarantor named below, on Lender's forms, and in the amount and under the conditions set forth in those guaranties.
	
		
	Name of Guarantor
	Amount

	OFS Capital WM, LLC, a Delaware limited liability company
	Unlimited

	OFSCC-MB, Inc., a Delaware corporation
	Unlimited

Other Agreements.   Comply with all terms and conditions of all other material agreements, whether now or hereafter existing, between Borrower and any other party and notify Lender immediately in writing of any default in connection with any other such agreements, except, in each case, where the failure to comply or such default could not reasonably be expected to be, have, or result in a material adverse effect on Borrower’s business or financial condition.
Loan Proceeds.   Use all Loan Proceeds solely for Borrower's or Guarantor’s general corporate purposes and business operations, including, but not limited to, acquiring and funding investments, for working capital purposes, and the paying of dividends.   
Taxes, Charges and Liens.   Pay and discharge when due all of its material indebtedness and obligations, including without limitation all assessments, taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the date on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrower's properties, income, or profits. Provided however, Borrower will not be required to pay and discharge any such assessment, tax, charge, levy, lien or claim so long as   (1)   the legality of the same shall be contested in good faith by appropriate proceedings, and   (2)   Borrower shall have established on Borrower's books adequate reserves with respect to such contested assessment, tax, charge, levy, lien, or claim in accordance with GAAP.
Performance.   Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the 

3

Related Documents, and in all other instruments and agreements between Borrower and Lender.   Borrower shall notify Lender promptly in writing of any default in connection with any such agreement.
Operations.   Maintain executive and management personnel with substantially the same qualifications and experience as the present executive and management personnel; provide written notice to Lender of any change in executive and management personnel; engage principally in the same or similar lines of business substantially as heretofore conducted.
Compliance with Governmental Requirements.   Comply with all material laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the conduct of Borrower's properties, businesses and operations, and to the use or occupancy of the Collateral, except where the failure to comply could not reasonably be expected to be, have, or result in a material adverse effect on Borrower’s business or financial condition.   
Inspection.   Upon reasonable notice from Lender, permit employees or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower's other properties and to examine or audit Borrower's books, accounts, and records and to make copies and memoranda of Borrower's books, accounts, and records.   If Borrower now or at any time hereafter maintains any records (including without limitation computer generated records and computer software programs for the generation of such records) in the possession of a third party, Borrower, upon reasonable notice and request of Lender, shall request that the third party permit Lender free access to such records, to the extent permitted by the third party, at all reasonable times and to provide Lender with copies of any records i t may request, all at Borrower's expense.
Environmental Compliance and Reports.   Borrower shall comply in all material respects with any and all Environmental Laws, except where the failure to comply could not reasonably be expected to be, have, or result in a material adverse effect on Borrower’s business or financial condition; shall furnish to Lender promptly and in any event within thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation, directive, letter or other communication from any governmental agency or instrumentality concerning any intentional or unintentional action or omission on Borrower's part in connection with any environmental activity in violation of any Environmental Laws or with regard to any Hazardous Substances, whether or not there is damage to the environment and/or other natural resources.
Additional Assurances.    Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, assignments, financing statements, instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure the Loans and to perfect all Security Interests.
RECOVERY OF ADDITIONAL COSTS.   If the imposition of or any change in any law, rule, regulation or guideline, or the interpretation or application of any thereof by any court or administrative or governmental authority (including any request or policy not having the force of law) shall impose, modify or make applicable any taxes (except federal, state or local income or franchise taxes imposed on Lender), reserve requirements, capital adequacy requirements or other obligations which would   (A)    increase the cost to Lender for extending or maintaining the credit facilities to which this Agreement relates,   (B)    reduce the amounts payable to Lender under this Agreement or   the Related Documents, or   (C)   reduce the rate of return on Lender's capital as a consequence of Lender's obligations with respect to the credit facilities to which this Agreement relates, then Borrower agrees to pay Lender such additional amounts as will compensate Lender therefor (“Additional Amounts”), within ten (10) days after Lender's written demand for such payment, which demand shall be accompanied by an explanation of such imposition or charge and a calculation in reasonable detail of the additional amounts payable by Borrower, which explanation and calculations shall be conclusive in the absence of manifest error.
LENDER'S EXPENDITURES.   If Borrower fails to comply with any provision of this Agreement or any Related Documents, including but not limited to Borrower's failure to discharge or pay when due any amounts Borrower is required to discharge or pay under this Agreement or any Related Documents, Lender on Borrower's behalf m ay (but shall not be obligated to) pay any such amounts and take any action that Lender deems appropriate to discharge or pay all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on any Collateral and pay all costs for insuring, maintaining and preserving any Collateral. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Borrower.   All such expenses will become a part of the Indebtedness and, at Lender's option, will   (A)   be payable on demand;   (B)   be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either   (1)   the term of any applicable insurance policy; or   (2)   the remaining term of the Note; or   (C)   be treated as a balloon payment which will be due and payable at the Note's maturity.
NEGATIVE COVENANTS.   Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower shall not, without the prior written consent of Lender:
Indebtedness and Liens.   (1) create, incur, assume, or guarantee indebtedness for borrowed money, including capital leases, other than (A) for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this Agreement, (B) unsecured indebtedness with a maturity date that is after the maturity date of the Indebtedness under this Agreement, (C) indebtedness incurred hereunder and pursuant to this Agreement and the Related Documents, (D) obligations payable to clearing agencies, brokers or dealers in connection with the purchase or sale of securities in the ordinary course of business, (E) any indebtedness that is expressly subordinated to the indebtedness incurred hereunder and pursuant to this Agreement, (F) any guarantee by the Borrower of indebtedness of an SBIC subsidiary of the Borrower on the SBA’s then applicable form, (G) repurchase obligations arising in the ordinary course of business with respect to U.S. government obligations; and (H) any guarantee in the ordinary course of business; 
(2)   mortgage, pledge, grant a security interest in, or encumber any of Borrower's assets, except that the Borrower may do and incur the following: (A) Permitted Liens; (B) liens on equity interests in any SBIC subsidiary of the Borrower created in favor of the SBA; (C) liens securing repurchase obligations arising in the ordinary course of business with respect to U.S. government obligations; (D) liens of clearing agencies, broker-dealers and similar liens incurred in the ordinary course of business; (E) liens securing the performance of, or payment in respect of, bids, insurance premiums, deductibles or co-insured amounts, tenders, government or utility contracts (other than for the repayment of borrowed money), surety, stay, customs and appeal bonds and other obligations of a similar nature incurred in the ordinary course of business; (F) liens arising out of judgments or awards that have been in force for less than the applicable period for taking an appeal so long as such judgments or awards do not either constitute an Event of Default or exceed $1,000,000 individually or in the aggregate; and (G) any right of set-off granted in favor of any financial institution in respect of deposit accounts opened and maintained in the ordinary course of business or pursuant to the requirements of this Agreement; or 
(3) sell, transfer, lease, assign, or otherwise dispose of its assets, or acquire assets, other than in the ordinary course of its business or otherwise in accordance with the investment objectives and policies of Borrower as set forth in the Registration Statement on Form N-2 as filed with the SEC in May 2018 and as such investment objectives and policies may be amended, changed, supplemented or modified from time to time.
Continuity of Operations.   (1) Engage in any business activities substantially different than those in which Borrower is presently engaged, and  (2) cease operations, liquidate, merge, consolidate with any other entity, or dissolve, except that (A) Borrower may engage in such actions in the ordinary course of its business and (B) Borrower may merge or consolidate with any other person so long as Borrower is 

4

the continuing or surviving entity in such transaction.
Loans and Acquisitions.  (1)   Loan, transfer, invest in or advance money or assets to any other person, enterprise or entity, except for loans, investments, and advances made in accordance with the investment objectives and policies of Borrower as set forth in the Registration Statement on Form N-2 as filed with the SEC in May 2018 and as such investment objectives and policies may be amended, changed, supplemented or modified from time to time, and (2) purchase, create or acquire any equity interest in any other enterprise or entity, other than, in each case, (A) in an existing subsidiary of Borrower as of the date of this Agreement or (B) in a financing subsidiary (including any passive holding company that holds the equity interest in such financing subsidiary) or tax blocker. 
Agreements.   Enter into any material agreement containing any provisions which would be violated or breached by the performance of Borrower's obligations under this Agreement or in connection herewith, except where such violation or breach could not reasonably be expected to be, have, or result in a material adverse effect on Borrower’s business or financial condition.
CESSATION OF ADVANCES.   If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if:   (A)   Borrower or any Guarantor is in default under the terms of this Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender;   (B)   Borrower or any Guarantor becomes insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged as bankrupt;   (C) there occurs a material adverse change in Borrower's financial condition, in the financial condition of any Guarantor, or in the value of any Collateral securing any Loan; or   (D)   any Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any other loan with Lender; or   (E)   Lender in good faith deems itself insecure, even though no Event of Default shall have occurred.
RIGHT OF SETOFF.   To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account).   This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future.   However, this does not include any trust accounts for which setoff would be prohibited by law.   Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the Indebtedness against any and all such accounts.
DEFAULT.  Each of the following shall constitute an Event of Default under this Agreement:
Payment Default.  Borrower fails to make any payment when due under the Loan.
Other Defaults.  Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents to which it is a party or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.
Default in Favor of Third Parties.  Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that could reasonably be expected to be, have, or result in a material adverse effect on Borrower's assets and property as a whole or Grantor's assets and property as a whole (it being understood that a default by Borrower or any Grantor for an amount equal to or exceeding $1,000,000, individually or in the aggregate, shall be deemed to have a material adverse effect on Borrower or such Grantor, respectively) or Borrower's or Grantor's ability to repay the Loans or perform their respective obligations under this Agreement or any of the Related Documents.
False Statements.  Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.
Insolvency.  The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.
Defective Collateralization.  This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason (other than as a result of termination in accordance with such agreement’s or document’s terms).
Creditor or Forfeiture Proceedings.  Commencement of foreclosure or forfeiture proceedings by any creditor of Borrower or by any governmental agency against a substantial part of the Collateral securing the Loan and, in any such case, such proceeding shall continue undismissed and unstayed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered.  However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.
Events Affecting Guarantor.  Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.
Change in Advisor.  OFS Capital Management, LLC, ceases to serve as Borrower’s investment advisor without the prior written consent of Lender.
Adverse Change.  A material adverse change occurs in Borrower's or any Grantor’s financial condition.
Custody Agreement and Custody Control Agreement.  The Custody Agreement is at any time terminated without Lender’s prior written consent, the Custodian at any time is removed or resigns without Lender’s prior written consent, or the Custody Control Agreement is at any time not in full force and effect or not being complied with by Custodian, Borrower or Guarantor.
Right to Cure.  If any one of the above Events of default, other than under the heading “Payment Default,” is curable and if Borrower or Grantor, as the case may be, has not been given a notice of a similar default within the preceding twelve (12) months, it may be cured if Borrower or Grantor, as the case may be, after Lender sends written notice to Borrower or Grantor, as the case may be, demanding cure of such default:  (1)  cure the default within fifteen (15) days; or  (2)  if the cure requires more than fifteen (15) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.
EFFECT OF AN EVENT OF DEFAULT.   If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related Documents, Lender may by notice to Borrower, and at any time during the continuance of such event, take either or both of the following actions: (1) terminate all commitments and obligations of Lender under this Agreement or the Related Documents or any other agreement between Borrower and Lender (including any obligation to make further Loan Advances or disbursements), and (ii) declare all Indebtedness to be due and payable, except that in the case of an Event of Default of the type described in the "Insolvency" subsection 

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above, such acceleration shall be automatic and not require presentment, demand, or notice.  In addition, Lender shall have all the rights and remedies provided in the Related Documents or available at law, in equity, or otherwise. Except as may be prohibited by applicable law, all of Lender's rights and remedies shall be cumulative and may be exercised singularly or concurrently.   Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Borrower or of any Grantor shall not affect Lender's right to declare a default and to exercise its rights and remedies.
INTEGRATION. The parties agree that (a) this Agreement, together with all of the Related Documents, represents the final agreement between the parties, and therefore incorporates all negotiations of the parties hereto (b) there are no unwritten oral agreements between the parties, and (c) this Agreement may not be contradicted by evidence of any prior, contemporaneous, or subsequent oral agreements or understandings of the parties.
COUNTERPARTS PROVISION.  This document may be executed in several counterparts, each of which all constitute an original, but of which together shall constitute as one and the same document.
MISCELLANEOUS PROVISIONS.   The following miscellaneous provisions are a part of this Agreement:
Amendments.   This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement.   No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.
Attorneys' Fees; Expenses.   Borrower agrees to pay upon demand all of Lender's costs and expenses, including Lender's attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Agreement.   Lender may hire or pay someone else to help enforce this Agreement, and Borrower shall pay the costs and expenses of such enforcement.   Costs and expenses include Lender's attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services.   Borrower also shall pay all court costs and such additional fees as may be directed by the court.
Caption Headings.   Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.
Consent to Loan Participation.   Borrower agrees and consents to Lender's sale or transfer, whether now or later, of one or more participation interests in the Loan to one or more purchasers, whether related or unrelated to Lender.   Borrower additionally waives any and all notices of sale of participation interests, as well as all notices of any repurchase of such participation interests.   Borrower also agrees that the purchasers of any such participation interests will be considered as the absolute owners of such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the sale of such participation interests.   Borrower further waives all rights of offset or counterclaim that it may have now or later against Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such purchaser may enforce Borrower's obligation under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan.   Borrower further agrees that the purchaser of any such participation interests may enforce its interests irrespective of any personal claims or defenses that Borrower may have against Lender.
Confidentiality.  Lender agrees to maintain the confidentiality of the information received in connection with this Agreement relating to Borrower or Guarantor or any of their respective businesses (other than any such information that is available to the Lender on a nonconfidential basis prior to disclosure by the Borrower or Guarantor), except that information may be disclosed (a) to its affiliates and to its and its affiliates’ respective partners, directors, officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this  Agreement  or  the  enforcement  of  rights  hereunder  or thereunder, (e) subject to an agreement containing provisions substantially the same as those of this paragraph, to any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement, and (f) with the consent of the Borrower, (i) to the extent such information (x) becomes publicly available other than as a result of a breach of this paragraph or (y) becomes available to Lender or any of its respective affiliates on a nonconfidential basis from a source other than Borrower.  In addition, Lender hereby acknowledges that United States securities laws prohibit any person with material, non-public information about a registered security from buying or selling such securities or, subject to certain limited exceptions, from communicating such information to any other person. Lender hereby agrees that the information provided in connection with this Agreement may contain material, non-public information and further agrees to comply, and to insure compliance by its representatives, with applicable securities laws concerning such information, so long as any such disclosure comports with all applicable laws.
Governing Law; Judicial Reference.   This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of California without regard to its conflicts of law provisions.   This Agreement has been accepted by Lender in the State of California.  That certain Judicial Reference Agreement among Lender, Borrower and Guarantor, as amended or replaced from time to time, is hereby incorporated into this Agreement by this reference.
Choice of Venue.   If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Los Angeles County, State of California.
No Waiver by Lender.   Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender.   No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right.   A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement.   No prior waiver by Lender, nor any course of dealing between Lender and Borrower, or between Lender and any Grantor, shall constitute a waiver of any of Lender's rights or of any of Borrower's or any Grantor's obligations as to any future transactions.   Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.
Notices.   Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received by e-mail or telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement.   Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address.   For notice purposes, Borrower agrees to keep Lender informed at all times of Borrower's current address.   Unless otherwise provided or required by law, if there is more than one Borrower, any notice given by Lender to any Borrower is deemed to be notice given to all Borrowers.
Severability.   If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance.   If feasible, 

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the offending provision shall be considered modified so that it becomes legal, valid and enforceable.   If the offending provision cannot be so modified, it shall be considered deleted from this Agreement.   Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement.
Successors and Assigns.   All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents shall bind Borrower's successors and assigns and shall inure to the benefit of Lender and its successors and assigns.   Borrower shall not, however, have the right to assign Borrower's rights under this Agreement or any interest therein, without the prior written consent of Lender. Notwithstanding anything herein to the contrary, where Lender assigns or otherwise transfers any of its rights or obligations under this Agreement, (i) Borrower shall only be obligated to pay Additional Amounts to the transferee of Lender to the extent Borrower would have been obligated to pay such Additional Amounts had such transfer not occurred and (ii) such transferee shall provide Borrower with any forms, documents, or certifications as may be required for Borrower to satisfy any information reporting or withholding tax obligations with respect to any payments under this Agreement.
Survival of Representations and Warranties.  Borrower understands and agrees that in extending Loan Advances, Lender is relying on all representations, warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to Lender under this Agreement or the Related Documents.   Borrower further agrees that regardless of any investigation made by Lender, all such representations, warranties and covenants will survive the extension of Loan Advances and delivery to Lender of the Related Documents, shall be continuing in nature, shall be deemed made and redated by Borrower at the time each Loan Advance is made (except where reference is made to a specific date),  and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur.
DEFINITIONS.   The following capitalized words and terms shall have the following meanings when used in this Agreement.   Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America.   Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require.   Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code.   Accounting words and terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with generally accepted accounting principles as in effect on the date of this Agreement:
Advance.   The word "Advance" means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower's behalf on a line of credit or multiple advance basis under the terms and conditions of this Agreement.
Agreement.   The word "Agreement" means this Business Loan Agreement, as this Business Loan Agreement may be amended or modified from time to time, together with all exhibits and schedules attached to this Business Loan Agreement from time to time.
Borrower.   The word "Borrower" means OFS Capital Corporation, a Delaware corporation and its successors and assigns.
Collateral.   The word "Collateral" means, collectively, the collateral described and defined in both Security Agreements.
Custodian.  The word “Custodian” means U.S. Bank National Association or any other custodian approved in writing by Lender and a party to a Custody Control Agreement.
Custody Agreement.  The words “Custody Agreement” mean that certain custody agreement dated as of November 7, 2012 by and between Borrower and U.S. Bank National Association, as amended from time to time, and any replacement custody agreement with another Custodian from time to time, which custody agreement is subject to a Custody Control Agreement. 
Custody Control Agreement.  The words “Custody Control Agreement” mean a Custody Control Agreement by and among Lender, Custodian and Borrower, as in existence and amended or replaced from time to time.
Environmental Laws.   The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42
U.S.C. Section 6901, et seq., Chapters 6.5 through 7.7 of Division 20 of the California Health and Safety Code, Section 25100, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.
Event of Default.   The words "Event of Default" mean any of the events of default set forth in this Agreement in the default section of this Agreement.
GAAP.   The word "GAAP" means generally accepted accounting principles.
Grantor.   The word "Grantor" means each and all of the persons or entities granting a Security Interest in any Collateral for the Loan, including without limitation Borrower and Guarantor granting such a Security Interest.
Guarantor.   The word "Guarantor" means, individually and collectively, as the context may require, OFS Capital WM, LLC, a Delaware limited liability company, and its successors and assigns, and OFSCC-MB, Inc., a Delaware corporation, and its successors and assigns.
Guaranty.   The word "Guaranty" means all guaranties from Guarantor to Lender, including without limitation guaranties of all or part of the Note, as such guaranties are amended or replaced from time to time.
Hazardous Substances.   The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled.   The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.
Indebtedness.   The word "Indebtedness" means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other indebtedness and costs and expenses for which Borrower is responsible under this Agreement or under any of the Related Documents.
Lender.   The word "Lender" means Pacific Western Bank and its successors and assigns.
Loan.   The word "Loan" means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter existing, and however evidenced, including without limitation those loans and financial accommodations described herein or described on any exhibit or schedule attached to this Agreement from time to time.
Note.   The word "Note" means the Note executed by Borrower in the principal amount of $15,000,000.00 dated November 5, 2015, 

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together with all renewals of, extensions of, modifications of, refinancings of, consolidations of and substitutions for the note or credit agreement.
Permitted Liens.   The words "Permitted Liens" mean   (1)   liens and security interests securing Indebtedness owed by Borrower to Lender;   (2) liens for taxes, assessments, or similar charges either not yet due or being contested in good faith;  (3)  liens of materialmen, mechanics, warehousemen, carriers, or custodians, or other liens arising in the ordinary course of business and securing obligations which are not yet delinquent;   (4) purchase money liens or purchase money security interests upon or in any property acquired or held by Borrower in the ordinary course of business to secure indebtedness outstanding on the date of this Agreement or permitted to be incurred under the paragraph of this Agreement titled "Indebtedness and Liens";   (5)   liens and security interests which, as of the date of this Agreement, have been disclosed to and approved by the Lender in writing; and   (6)   those liens and security interests which in the aggregate constitute an immaterial and insignificant monetary amount with respect to Borrower's total assets.
Related Documents.    The  words  "Related  Documents"  mean  all  promissory  notes,  credit  agreements,  loan  agreements,  environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Loan with Pacific Western Bank or its successors and assigns, and including the Custody Control Agreement.
Security Agreements.   The words "Security Agreement" mean, collectively, (i) that certain Commercial Security Agreement, dated as of April 10, 2019 between Borrower and Lender, as the same shall be amended from time to time, (ii) that certain Commercial Security Agreement, dated as of April 10, 2019, among OFS Capital WM, LLC, a Delaware limited liability company, as Grantor, Borrower, and Lender, as the same shall be amended from time to time, and (iii) that certain Commercial Security Agreement, dated as of April 10, 2019, among OFSCC-MB, Inc., a Delaware corporation, as Grantor, Borrower, and Lender, as the same shall be amended from time to time.
Security Interest.   The words "Security Interest" mean, without limitation, any and all types of collateral security, present and future, whether in the form of a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust receipt, lien or title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever whether created by law, contract, or otherwise.

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BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS.   THIS BUSINESS LOAN AGREEMENT IS DATED APRIL 10, 2019.

BORROWER:
OFS CAPITAL CORPORATION, A DELAWARE CORPORATION
	
	
	By:    /s/ Jeffrey A. Cerny                

	Name:    Jeffrey A. Cerny

	Title:    Chief Financial Officer

	
	
	LENDER:

	

PACIFIC WESTERN BANK

	By:    /s/ Todd Savitz            

	Authorized Signer

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