Document:

CONFIDENTIAL
– FOR SETTLEMENT PURPOSES ONLY

 

COMPROMISE, SETTLEMENT AND MUTUAL
RELEASE AGREEMENT

 

This
Compromise, Settlement and Mutual Release Agreement (hereinafter referred to as the “Agreement”)
is made and entered into effective as of December 19, 2013 (the “Effective Date”), by and between Crossroads
Systems, Inc. (“Crossroads”) and Iron Mountain Information Management, LLC, formerly known as Iron Mountain
Information Management, Inc. (“Iron Mountain”). Crossroads and Iron Mountain are each referred to as
a “Party,” and together, are referred to as the “Parties.” For good and valuable
consideration, the sufficiency of which is hereby acknowledged, Iron Mountain and Crossroads agree as follows:

 

		1.	Monetary Payment. Iron Mountain shall pay to Crossroads a one-time,
lump sum cash payment of One Million Six Hundred Thousand Dollars ($1,600,000.00) (the “Payment”) no
later than January 15, 2014. The Payment shall be comprised as follows: (a) Five Hundred Fifty Thousand Dollars ($550,000) shall
be the fourth and final NRE payment due to Crossroads under Section 4.4 of the Professional Agreement executed between the Parties
on or about July 31, 2012, and (b) One Million Fifty Thousand Dollars ($1,050,000.00) shall be in consideration for the terms and
conditions of this Agreement. Iron Mountain shall not be responsible for the payment of any federal, state, or local taxes associated
with the Payment. The Payment shall be made pursuant to a wire transfer to an account designated by Crossroads.

 

		2.	Termination of Crossroads Agreements. The Parties mutually agree
to terminate their business relationship and any outstanding contracts or agreements between the Parties, except as stated in paragraph
3 below, including but not limited to the Master Agreement dated on or about July 31, 2012, as amended pursuant to the First Amendment
thereto with an effective date on or about July 31, 2012, the Professional Agreement dated on or about July 31, 2012, the Statement
of Work dated on or about July 27, 2012, the Securities Purchase Agreement, dated on or about July 31, 2012 (the “Securities
Purchase Agreement”), and the Registration Rights Agreement, dated on or about July 31, 2012 (the “Registration
Rights Agreement”) (collectively, the “Crossroads Agreements”).

  

		3.	Terms and Conditions Surviving Termination. By terminating the Crossroads
Agreements, the Parties are released from all the terms and conditions set forth in such Crossroads Agreements and agree to be
bound solely by the terms of this Agreement, except the following sections within the Crossroads Agreements shall survive such
termination:

  

		a.	Section 9 (Confidential Information and Business Disclosures) of the Master
Agreement, as amended by the First Amendment;

  

		b.	Section 12.10 (Non-Solicitation) of the Master Agreement;

 

    	Page 1 of 8

    	 

    

 

		c.	Article V of the Securities Purchase Agreement, to the extent of obligations
that remain to be performed thereunder; and

   

		d.	The Registration Rights Agreement, to the extent of obligations that remain
to be performed thereunder (it being acknowledged that Crossroads has complied with its obligations under Section 2 of the Registration
Rights Agreement to register the resale of the Capital Stock (as defined below) acquired pursuant to the Securities Purchase Agreement,
but may have additional obligations with respect thereto).

  

For the avoidance of doubt,
no license rights, sections or provisions of the Crossroads Agreements shall survive the termination of such Crossroads Agreements,
other than as set forth in Sections 3(a), 3(b), 3(c) and 3(d) above. For further clarification, the following sections shall
not survive termination of the Crossroads Agreements:

  

		e.	Section 3.4 (Exclusive Rights and Continuity Provisions) of the Master Agreement;

  

		f.	Section 6.3 (Source Code Escrow) of the Master Agreement;

  

		g.	Section 11.5 (Effect of Termination) of the Master Agreement;

  

		h.	Section 11.8 (Survival) of the Master Agreement; and

  

		i.	Section 8 (First Right of First Negotiation; Last Offer) of the Professional
Agreement.

  

Notwithstanding anything
to the contrary in the Crossroads Agreements or this Agreement, the irrevocable license granted to Iron Mountain in Section 3.4.1
of the Master Agreement is hereby revoked.

  

		4.	Restriction. Iron Mountain agrees that it shall not build, develop,
offer or deliver a service (or functionality) that uses or incorporates products that are competitive with Crossroads’ StrongBox®
product (as it may be renamed) for 24 months from the Effective Date of this Agreement.

 

		5.	Transfer of Title to the Crossroads Strongbox Product. The Parties
mutually agree that the ownership and title to any and all Crossroads Strongbox products purchased by Iron Mountain and in the
physical possession of Crossroads or Iron Mountain as of the Effective Date of this Agreement, as mutually agreed by the parties,
shall transfer from Iron Mountain to Crossroads, and no license rights with respect to such StrongBox products shall survive the
termination of the Crossroads Agreements nor remain with Iron Mountain. Iron Mountain shall, at Iron Mountains’ expense,
properly package and ship to Crossroads such Crossroads StrongBox products in its possession.

 

    	Page 2 of 8

    	 

    

 

		6.	Crossroads’ Stock.

  

		a.	As additional consideration for the release contained in paragraph 7 hereof,
the Parties mutually agree that, for a period of two (2) years from the Effective Date of this Agreement (the “Holding
Period”), Iron Mountain and its affiliates shall not: (i) sell, transfer or assign (or propose to sell, transfer
or assign) any shares of capital stock of Crossroads or other securities that are convertible into the capital stock of Crossroads
and that were purchased by Iron Mountain Inc. on or about July 31, 2012 (together, the “Capital Stock”)
that are beneficially held by Iron Mountain or its affiliates to any person or entity other than to another Iron Mountain affiliate
or entity; or (ii) enter into any derivative, option, hedging or similar arrangement or transaction that has the effect of decreasing
the voting power or economic interest of Iron Mountain and its affiliates in the Capital Stock, in each case without the prior
written approval of Crossroads. Crossroads shall be entitled to impose stop transfer instructions or legends on such shares (which
legend shall be in substantially the form set forth in Section 2.2(c) of the Securities Purchase Agreement).

 

		b.	During the Holding Period, Iron Mountain shall vote or cause the voting
of all shares of the capital stock of Crossroads now held or hereafter acquired by Iron Mountain or any of its parents, subsidiaries
or affiliates (i) in favor of the election of each nominee to Crossroads’ Board of Directors (the “Board”)
that has been nominated by the Board, and (ii) in accordance with the Board’s recommendation on any proposal or other stockholder
vote on any other matter. Notwithstanding the foregoing, Iron Mountain shall not be compelled to vote or cause the voting of its
shares if such vote shall be (1) against Iron Mountain’s Code of Ethics or Anti-Corruption/Anti-Bribery policy, or (2) in
the reasonable good faith determination of Iron Mountain’s Board of Directors, detrimental to Iron Mountain’s legitimate
corporate interests, in which case Iron Mountain may abstain but shall not vote in a manner contrary to the manner directed by
the Crossroads Board; provided that in any such instance, Iron Mountain shall promptly, and in any event within three days of any
such determination (which shall in any event be delivered not later than seven business days in advance of any such meeting), provide
Crossroads with advance notice that it does not believe it can vote in the manner directed and a reasonably detailed explanation
of the rationale therefor and thereafter to meet (in person or telephonically), as promptly as practicable and in any event within
four business days prior to the meeting, with Crossroads or its representatives to discuss such matter. Crossroads shall ensure
that Iron Mountain is provided written notice of such vote concurrently with notice to its other stockholders, and that such notice
shall be delivered to Iron Mountain at its address on file with Crossroads’ transfer agent. Crossroads shall be entitled
to impose an appropriate legend on such shares to the effect that such shares are subject to the voting obligations contained herein.

 

    	Page 3 of 8

    	 

    

 

		7.	Release by Crossroads. In consideration of the agreement by Iron Mountain
as set forth in this Agreement, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged,
Crossroads, on behalf of itself and all of its respective directors, officers, employees, agents, representatives, parent and subsidiary
organizations, successor corporations or partnerships, insurers, and assigns (all of whom are hereinafter collectively referred
to as the “Crossroads Releasors”) hereby remises, releases, acquits, and forever discharges Iron Mountain
and all of its respective past and present representatives, agents, servants, employees, attorneys, officers, directors, board
members, shareholders, investors, trustees, partners, parent and subsidiary organizations, administrators, predecessors, successors,
insurers, sureties, assigns, and other related entities (all of whom are hereinafter collectively referred to as the “Iron
Mountain Releasees”), of and from any and all actions and causes of action, damages, suits, debts, dues, accounts,
bonds, agreements, contracts, covenants, promises, judgments, costs, attorneys’ fees, expenses, compensation, claims and
demands whatsoever, of every nature, kind, and description, whether now known or unknown, accrued or unaccrued, which the Crossroads
Releasors or anyone claiming by, through, or under them now has or ever had or could claim against the Iron Mountain Releasees,
including, but not limited to, those claims based upon or arising out of the Crossroads Agreements, the Parties’ business
relationship and any claims that were or could have been asserted by Crossroads against Iron Mountain up to and including the Effective
Date of this Agreement. This Release applies equally to known claims and Unknown Claims (as defined below), accrued or unaccrued
(collectively, the “Crossroads Released Claims”). Notwithstanding the foregoing, the Crossroads
Releasors expressly exclude from the effect of this Release and do not release the Iron Mountain Releasees from the terms and conditions
of this Agreement.

 

		8.	Release by Iron Mountain. In consideration of the agreement by Crossroads
as set forth in this Agreement, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged,
Iron Mountain, on behalf of itself and all of its respective directors, officers, employees, agents, representatives, parent and
subsidiary organizations, successor corporations or partnerships, insurers, and assigns (all of whom are hereinafter collectively
referred to as the “Iron Mountain Releasors”) hereby remises, releases, acquits, and forever discharges
Crossroads and all of its respective past and present representatives, agents, servants, employees, attorneys, officers, directors,
board members, shareholders, investors, trustees, partners, parent and subsidiary organizations, administrators, predecessors,
successors, insurers, sureties, assigns, and other related entities (all of whom are hereinafter collectively referred to as the
“Crossroads Releasees”), of and from any and all actions and causes of action, damages, suits, debts,
dues, accounts, bonds, agreements, contracts, covenants, promises, judgments, costs, attorneys’ fees, expenses, compensation,
claims and demands whatsoever, of every nature, kind, and description, whether now known or unknown, accrued or unaccrued, which
the Iron Mountain Releasors or anyone claiming by, through, or under them now has or ever had or could claim against the Crossroads
Releasees, including, but not limited to, those claims based upon or arising out of the Crossroads Agreements, the Parties’
business relationship and any claims that were or could have been asserted by Iron Mountain against Crossroads up to and including
the Effective Date of this Agreement. This Release applies equally to known claims and Unknown Claims (as defined below), accrued
or unaccrued (collectively, the “Iron Mountain Released Claims”). Notwithstanding the foregoing, the
Iron Mountain Releasors expressly exclude from the effect of this Release and do not release the Crossroads Releasees from the
terms and conditions of this Agreement.

 

    	Page 4 of 8

    	 

    

 

		9.	Definition of Unknown Claims. The Parties agree that an “Unknown
Claim,” as used in paragraphs 7 and 8 of this Agreement, is any released claim that any Releasor does not know or
suspect to exist in his, her, or its favor at the time of the release and, if known by him, her, or it might have affected his,
her, or its settlement with, and release of, the Releasees, or might have affected his, her, or its decision not to object to this
Agreement, including claims based on the discovery of facts in addition to or different from those which he, she, or it now knows
or believes to be true with respect to the Crossroads Released Claims or the Iron Mountain Released Claims.

 

		10.	No Admission of Liability. It is expressly understood and agreed that
this Agreement, and specifically the Payment, constitutes a compromise of disputed claims. This Agreement is not, and shall not
be construed as, an admission of guilt, fault, or liability on behalf of either Party. Rather, the Parties have entered into this
Agreement solely for the purpose of reaching a compromise and avoiding the expense and uncertainty of litigation and have relied
on their own judgment in entering into this settlement and not on any representations of the other Party.

 

		11.	Authority; No Prior Assignment. Crossroads warrants and represents
that it is fully entitled and duly authorized to give the release contained herein, and that it has not assigned any of the rights
or causes of action released herein, and that it has not relied upon any representation, promise, or statement made by anyone which
is not recited, contained or embodied in this Agreement. Similarly, Iron Mountain warrants and represents that it is fully entitled
and duly authorized to give the release contained herein, and that it has not assigned any of the rights or causes of action released
herein, and that it has not relied upon any representation, promise, or statement made by anyone which is not recited, contained
or embodied in this Agreement. Each of the signatories hereto represents and warrants that he or she is duly authorized to execute
this Agreement on behalf of such Party.

 

		12.	Representation of Comprehension of Document. In entering into this
Agreement, the Parties represent that they have relied upon the legal advice of their attorneys, who are the attorneys of their
own choice, and that the terms of this Agreement have been completely read and explained to them by their attorneys and these terms
are fully understood and voluntarily accepted by them. Notwithstanding the identity of the drafters of this Agreement, the Parties
agree that there shall be no presumption against a Party arising out of or relating to the identity of such drafters.

 

		13.	Notices. All notices, demands, requests, offers, or responses permitted
or required to be given under this Agreement shall be deemed sufficient if mailed by registered or certified mail, postage prepaid,
or sent by overnight delivery (e.g., by Federal Express), addressed to:

 

Notices to Iron Mountain:

Iron Mountain Information Management,
LLC

745 Atlantic Avenue

Boston, MA 02111

Attn: Scott Erlich

 

    	Page 5 of 8

    	 

    

 

With a cc to: Legal Department,
IP and Technology Group

 

Notices to Crossroads:

Crossroads Systems, Inc.

11000 N. MoPac Expressway

Austin, Texas 78759

Attn: CEO

With a cc to: Chief Financial Officer

 

		14.	Binding Effect. This Agreement shall be binding upon and shall inure
to the benefit of the Parties, their officers, directors, affiliates, representatives, agents, shareholders, members, licenses,
employees, investors, trustees, parent and subsidiary corporations or related entities, successors in interest, and/or assigns,
and any and all others acting by or through them or under their direction or control, including but not limited to all persons
or entities that may attempt to make a claim through the Parties.

 

		15.	Confidentiality. The Parties hereby agree that the terms of this Agreement
shall remain strictly confidential as between them and shall not be disclosed to third parties except as expressly provided herein.
However, the Parties hereto may disclose the terms of this Agreement to their respective legal or tax advisors, accountants, investment
bankers, lenders, in connection with any financing or acquisition due diligence, as required by law (including, United States securities
laws or the laws of any securities exchange on which a Party has any securities listed or in response to any lawful subpoena),
or as reasonably required by auditors to be disclosed in any or all Parties' financial statements, including footnotes thereto.
For the sake of clarity, it is understood that Crossroads is a public reporting company and Crossroads has determined that Crossroads
will be required to file this Agreement as a material contract.

 

		16.	Non-Disparagement. Neither Party shall make, express, speak, write
or otherwise communicate in any way, directly or indirectly, any derogatory, disparaging, or other statements regarding the other
Party which are or may reasonably be construed to be injurious to the other Party’s business reputation or goodwill.

 

		17.	Enforcement. The Parties recognize and agree that if for any reason
any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached, immediate
and irreparable harm or injury would be caused for which money damages would not be an adequate remedy. Accordingly, each Party
agrees that, in addition to any other remedies that may be available, the other Party shall be entitled to an injunction (without
posting a bond or other undertaking) restraining any violation or threatened violation of such provisions of this Agreement. In
the event that any action shall be brought in equity to enforce such provisions of this Agreement, no Party shall allege, and each
Party hereby waives the defense, that there is an adequate remedy at law.

 

		18.	No Third Party Beneficiaries. This Agreement is made for the sole
benefit of the Parties to it. No other person or entity not described herein shall have any rights or remedies under or by reason
of this Agreement.

 

    	Page 6 of 8

    	 

    

 

		19.	Costs. The Parties shall each bear its own
attorneys’ fees, costs, and other fees incurred in connection with this Agreement, the Crossroads Agreements and the dispute
between the Parties that is the subject of this Agreement.

 

		20.	Attorneys’ Fees. If any legal or equitable action arises out
of or is necessary to enforce the terms of this Agreement, the prevailing Party shall be entitled to recover attorneys’ fees
and costs that are reasonably incurred and paid, in addition to any other relief to which a Party may be entitled.

 

		21.	Choice of Law. The Parties agree that this Agreement shall be construed
and interpreted under, and any dispute relating to this Agreement shall be decided under the laws of the State of New York, without
reference to conflict of laws principles (other than Section 5-1401 of the New York General Obligations Law).

 

		22.	No Other Conditions. The terms of this Agreement are not subject to,
or conditioned upon, any action by Crossroads or Iron Mountain, including, but not limited to, the execution by Crossroads or Iron
Mountain of any agreements relating to group purchasing arrangements for Iron Mountain services or products.

 

		23.	No Oral Modifications or Waivers. This Agreement may not be amended,
altered, modified or changed in any way except by a writing signed by each Party. No provision of this Agreement may be waived
except through a writing signed each Party. The express waiver by either Party of any provision of this Agreement shall not constitute
a waiver of any future obligation to comply with such provision. The failure by either Party to enforce any provision of this Agreement
shall not constitute a waiver of future enforcement of that or any other provision.

 

		24.	Severability. If any provision in this Agreement is held invalid
or unenforceable by a body of competent jurisdiction (a) such provision shall be limited or, if necessary, severed only as necessary
to eliminate such invalidity or unenforceability, (b) the Parties shall in good faith negotiate a valid, enforceable substitute
provision that most nearly effects their original intent, including, without limitation, their economic intent, in entering into
this Agreement, and (c) the other provisions of this Agreement shall remain in full force and effect.

 

		25.	Headings. The headings of the various paragraphs of this Agreement
have been included only in order to make it easier to locate the subject covered by each provision and are not to be used in construing
this Agreement or in ascertaining its meaning.

 

		26.	Execution in Counterparts. This Agreement may be executed in multiple,
separate counterpart originals, or with detachable signature pages, which together shall constitute the original thereof. Facsimile,
photocopy, PDF, or other copied signatures shall be considered as original signatures for all purposes. This Agreement shall become
effective only upon the execution of the Agreement by each Party to this Agreement.

 

		27.	Completeness of Agreement. This Agreement constitutes the entire and
sole understanding between the Parties with respect to its subject matter and fully supersedes, unless expressly otherwise provided
in this Agreement, all prior negotiations, agreements and understandings between the Parties with respect thereto.

 

    	Page 7 of 8

    	 

    

 

 

IN WITNESS WHEREOF, the Parties
have duly authorized and caused this Agreement to be executed effective as of the Effective Date.

 

	Iron Mountain Information Management, LLC.:	 	Crossroads Systems, Inc.:	 
	 	 	 	 
	By:	 /s/ Harold E. Ebbighausen	 	By:	 /s/ Rick Coleman	 
	 	 	 	 	 	 
	Name:	 Harold E. Ebbighausen	 	Name: 	 Rick Coleman	 
	 	 	 	 	 	 
	Title:	 President, North America	 	Title:	 Chief Executive Officer	 
	 	 	 	 	 	 
	Date:	 12/20/2013	 	Date :	 12/20/2013	 

 

 

 

 

    	Page 8 of 8EXECUTION VERSION

 

CONSENT, LIMITED WAIVER AND AMENDMENT NO.
4 TO

LOAN AND SECURITY AGREEMENT

 

Consent, Limited Waiver and Amendment No.
4 to Loan and Security Agreement, dated as of September 26, 2013 (the “Amendment”), is by and between DYNASIL CORPORATION
OF AMERICA, a Delaware corporation (the “Borrower”), and SOVEREIGN BANK, N.A., a national banking association (the
“Lender”), with an address at 3 Terry Drive, Suite 102, Newtown, PA 18940.

 

BACKGROUND

 

WHEREAS, the Lender and the Borrower made,
executed and delivered a Loan and Security Agreement dated July 10, 2010, as amended by a certain Amendment No. 1 to Loan and Security
Agreement dated as of April 1, 2011, as further amended by that certain Amendment No. 2 to Loan and Security Agreement dated as
of April 12, 2012 and as further amended by a certain Amendment No. 3 to Loan and Security Agreement dated as of June 29, 2012
(as amended, the “Existing Loan Agreement”);

 

WHEREAS, the Borrower has requested that
the Lender: (a) consent to the transfer of certain assets of Dynasil Biomedical Corp. (“DBM”) to a newly formed subsidiary
of DBM (“Xcede Technologies, Inc.”); (b) waive any requirements that Xcede Technologies, Inc. join the Existing Loan
Agreement as a guarantor and grant security in its assets to secure its guaranty; (c) exclude Xcede Technologies, Inc., its assets,
operations and financial results from being subject to the terms of Existing Loan Agreement; and (d) to effect the foregoing, to
waive and amend certain provisions of the Existing Loan Agreement as more fully set forth herein; and

 

WHEREAS, the Lender is willing to consent
to the asset transfer, and to grant the waivers and amendments described above, and as more particularly set forth herein, all
subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
mutual promises herein contained, and each intending to the legally bound thereby, the parties hereby agree as follows:

 

1.           Capitalized
Terms. Except as expressly defined herein, all capitalized terms herein which are defined in the Existing Loan Agreement shall
have the same meanings herein as therein.

 

2.           Amendments
to Existing Loan Agreement. Section 1(a) of the Existing Loan Agreement is hereby amended so that the following definitions
shall be inserted or amended, as the context requires, as follows:

 

“Excluded Subsidiary” shall mean Xcede Technologies,
Inc., a Delaware corporation, in which, as of the Effective Date, Dynasil Biomedical Corp. shall own 2,700,000 shares of common
stock.

 

    	1

    	 

    

 

The definition “Subsidiary”
shall be amended by inserting, at the end of that definition, the following new sentence:

 

“Any Excluded Subsidiary shall not be deemed a
Subsidiary for any purpose under this Agreement, including, without limitation, for the purposes of compliance with the requirements
of Section 12(e) and Section 13 hereof.”

 

3.           Consent.
Subject to the satisfaction of the terms and conditions set forth in Section 5 hereof, and in reliance on the representations set
forth in Section 6 hereof, the Lender hereby consents to the transfer of the property described on Exhibit A annexed
hereto (the “Xcede Assets”), and agrees to release the Lender’s security interest in the Xcede Assets. On the
Effective Date, the Lender shall, deliver and file, or authorize the Borrower to file, a UCC-3 release in the form of Exhibit
B annexed hereto.

 

4.           Limited
Waivers. Subject to the satisfaction of the terms and conditions of Section 5 hereof, and in reliance on the representation
contained in Section 6 hereof, on the Effective Date, with respect to the creation , existence and future operation of the Excluded
Subsidiary, the Lender waives compliance with any requirement (and any resulting Default or Event of Defaults that would result
from such non-compliance) of the Existing Loan Agreement, including, without limitation: (i) Section 12(e) to the extent the formation
of the Excluded Subsidiary would be prohibited unless such Excluded Subsidiary would become a Guarantor and execute and deliver
to Lender a Subsidiary Security Agreement; (ii) Section 12(e)(iii) to the extent transfer of the Xcede Assets constitutes a disposition
of assets by the Borrower or by Guarantor outside the ordinary course of business; (iii) Section 12(e)(v) to the extent that any
future transactions of the Excluded Subsidiary, including, without limitation, any capital raising, debt raising or operational
activities approved by the Borrower or any Guarantor may constitute a transaction outside the ordinary course of its respective
business; (iv) Section 12(g)(i) to the extent the transfer of the Xcede Assets to the Excluded Subsidiary constitutes an acquisition
of, or investment in, stock of any Person; (v) Section 12(c) to the extent that any future financing or equity raising activity
of the Excluded Subsidiary approved by the Borrower or any Guarantor may constitute permission to create a lien, claim, security
interest or other encumbrance on any of the Borrower or any Guarantor’s assets; and (vi) Sections 10(r) and 11(i) to the
extent that the transfer of intellectual property to the Excluded Subsidiary as part of the Xcede Assets may constitute a breach
of such warranty, representation or covenant. The grant by the Lender of the above waivers shall not be construed as, and does
not constitute, a waiver of any other existing Default or Event of Default under the Existing Loan Agreement.

 

5.           Conditions.
The effectiveness of this Amendment is subject to the following conditions:

 

(a)          the
execution and delivery of this Amendment by the Borrower and the Lender;

 

    	2

    	 

    

 

(b)          the
execution and delivery of a pledge agreement (the “Pledge Agreement”) pursuant to which DBM grants to the Lender a
first priority pledge of all of DBM’s shares of common stock in Xcede Technologies, Inc., together with the original stock
certificate(s) and stock power(s) executed in blank by DBM (the “Pledged Collateral”).

 

(c)         
all other documents and legal matters in connection with the transactions contemplated by this Agreement shall have been delivered,
executed and shall be in form and substance satisfactory to the Lender;

 

(d)          Massachusetts Capital Resources Company
shall have consented in writing to the matters described herein, shall have agreed to release its liens on the Xcede Assets, shall
have agreed to a junior lien on the Pledged Collateral, and shall executed and delivered a consent, limited waiver and amendment
to the existing note purchase agreement with the Borrower which shall be in form and substance reasonably satisfactory to the Lender;

 

(e)          The
Borrower shall have paid $300,000 as a prepayment on the Term Loan, which shall be applied to the unpaid principal balance thereof
in inverse order of maturity; and

 

(f)           the
Borrower shall have paid the Lender all fees, costs and expenses of the Lender in connection with this Amendment, including, without
limitation, reasonable fees, costs and expenses of counsel.

 

The date on which all of the
conditions this Section 5 shall have been satisfied shall be the “Effective Date.”

 

6.           Representations
and Warranties. The Borrower hereby represents and warrants, to the Lender as follows:

 

(a)          the
Borrower is a Delaware corporation, duly organized, validly existing and in good standing under the laws of the jurisdiction of
its formation;

 

(b)          the
Borrower has the power and authority to execute, deliver and perform its obligations under this Amendment (and DBM has the power
and authority to execute, deliver and perform its obligations under the Pledge Agreement);

 

(c)          the
execution, delivery and performance by the Borrower of this Amendment (and DBM’s execution, delivery and performance of the
Pledge Agreement) have been duly authorized by all necessary corporate action and does not and will not require any registration
with, consent or approval of, notice to or action by, any Person (including any governmental agency);

 

(d)          this
Amendment and the other loan documents executed in connection herewith and therewith, including, without limitation, the Pledge
Agreement, (the “Loan Documents”) to which the Borrower or any of its Affiliates is a party, as each Loan Document
is amended by this Amendment, constitute the legal, valid and binding obligation of the Borrower and such Subsidiaries, enforceable
against such Person in accordance with its terms;

 

    	3

    	 

    

 

(e)          no
Event of Default shall exist solely as a result of the consummation of the transactions contemplated hereby; and

 

(f)          by
its signature below, the Borrower agrees that it shall constitute an Event of Default if any representation or warranty made herein
is untrue or incorrect in any material respect as of the date when made or deemed made.

 

7.           Agreement
in Full Force and Effect as Amended. Except as specifically amended hereby, the Existing Loan Agreement and other Loan Documents
shall remain in full force and effect and are hereby ratified and confirmed as so amended. Except as expressly set forth herein,
this Amendment shall not be deemed to be a waiver, amendment or modification of any provisions of the Existing Loan Agreement or
any other Loan Document or any right, power or remedy of the Lender, nor constitute a waiver of any provision of the Existing Loan
Agreement or any other Loan Document, or any other document, instrument and/or agreement executed or delivered in connection therewith
or of any Event of Default under any of the foregoing, in each case, whether arising before or after the date hereof or as a result
of performance hereunder or thereunder. This Amendment also shall not preclude the future exercise of any right, remedy, power,
or privilege available to the Lender whether under the Existing Loan Agreement, the other Loan Documents, at law or otherwise and
nothing contained herein shall constitute a course of conduct or dealing among the parties hereto. On the Effective Date, all references
to the Existing Loan Agreement shall be deemed to mean the Existing Loan Agreement as modified hereby. This Amendment shall not
constitute a novation or satisfaction and accord of the Existing Loan Agreement and/or other Loan Documents, but shall constitute
an amendment thereof. The parties hereto agree to be bound by the terms and conditions of the Existing Loan Agreement and Loan
Documents as amended by this Amendment, as though such terms and conditions were set forth herein. Each reference in the Existing
Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of
similar import shall mean and be a reference to the Existing Loan Agreement as amended by this Amendment, and each reference herein
or in any other Loan Document to the “Existing Loan Agreement” shall mean and be a reference to the Existing Loan Agreement
as amended and modified by this Amendment.

 

8.           Existing
Defaults and Events of Default. Except as expressly set forth herein, the execution, delivery and effectiveness of this Amendment
shall not directly or indirectly (i) be construed to continue to defer any enforcement action with respect to any pending or future
any Default or Event of Default, (ii) constitute a consent or waiver of any past, present or future violations of any provisions
of the Existing Loan Agreement or any other Loan Documents (iii) amend, modify or operate as a waiver of any provision of the Existing
Loan Agreement or any other Loan Documents or any right, power or remedy of the Lender, or (iv) constitute a course of dealing
or other basis for altering any Obligations or any other contract or instrument. Except as expressly set forth herein, the Lender
reserves all of its rights, powers, and remedies under the Existing Loan Agreement, the other Loan Documents and applicable law.
The Lender has not waived (regardless of any delay in exercising such rights and remedies) any Default or Event of Default that
may be continuing on the date hereof or any Event of Default that may occur after the date hereof, and Lender has not agreed to
forbear with respect to any of its rights or remedies concerning any Events of Default), that may have occurred or are continuing
as of the date hereof, or that may occur after the date hereof.

 

    	4

    	 

    

 

9.          No
Defenses or Counterclaims. The Borrower warrants and represents to the Lender, on behalf of itself and its Subsidiaries, that
none of the Borrower or its Subsidiaries has any claims, counterclaims, offsets or defenses to the Loan Documents or the Loans
and other Liabilities to the Lender, or if any such Person does have any claims, counterclaims, offsets or defenses to the Loan
Documents or the Obligations, the same are hereby waived, relinquished and released in consideration of the execution and delivery
of this Amendment by the Lender.

 

10.         Counterparts.
This Amendment may be executed by one or more of the parties to this Amendment and any number of separate counterparts, each of
which when so executed, shall be deemed an original and all said counterparts when taken together shall be deemed to constitute
but one and the same instrument.

 

11.         Successors
and Assigns. This Amendment shall be binding upon and inure to the benefit of the Borrower and its successors and assigns and
the Lender and its successors and assigns.         

 

12.         Further
Assurance. The Borrower hereby agrees from time to time, as and when requested by the Lender, to execute and deliver or cause
to be executed and delivered, all such documents, instruments and agreements and to take or cause to be taken such further or other
action as the Lender may reasonably deem necessary or desirable in order to carry out the intent and purposes of this Amendment,
the Existing Loan Agreement and the Loan Documents.

 

13.         GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF NEW JERSEY, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

 

14.         Severability.
Wherever possible, each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Amendment shall be prohibited by or invalid under such law, such provision shall be ineffective
to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions
of this Amendment.

 

15.         Reaffirmation.
The Borrower , on behalf of itself and its Subsidiaries, hereby ratifies and reaffirms all of its payment and performance obligations,
contingent or otherwise, under each of the Loan Documents to which it is a party (after giving effect hereto). The Borrower hereby
consents to this Amendment and acknowledges that each of the Loan Documents remains in full force and effect and is hereby ratified
and reaffirmed. The execution of this Amendment shall not operate as a waiver of any right, power or remedy of the Lender, constitute
a waiver of any provision of any of the Loan Documents or serve to effect a novation of the Obligations.

 

[Remainder of Page Intentionally
Left Blank; Signature Page Follow]

 

    	5

    	 

    

 

IN WITNESS WHEREOF, each of the undersigned has executed this
Amendment as of the date set forth above.

 

	 	DYNASIL CORPORATION OF AMERICA
	 	 	 
	 	By:	/s/
    Thomas     C. Leonard
	 	Name: 	Thomas C. Leonard
	 	Title:	Chief Financial Officer
	 	 	 
	 	SOVEREIGN BANK, N.A.
	 	 	 
	 	By:	/s/
    Martin M. Murphy
	 	Name: 	Martin M. Murphy
	 	Title:	Vice President

 

    	6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]