<SEC-DOCUMENT>0001387131-21-001129.txt : 20210125
<SEC-HEADER>0001387131-21-001129.hdr.sgml : 20210125
<ACCEPTANCE-DATETIME>20210125060352
ACCESSION NUMBER:		0001387131-21-001129
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20210115
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20210125
DATE AS OF CHANGE:		20210125

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Byrna Technologies Inc.
		CENTRAL INDEX KEY:			0001354866
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				711050654
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-132456
		FILM NUMBER:		21547758

	BUSINESS ADDRESS:	
		STREET 1:		107 AUDUBON ROAD
		STREET 2:		BLDG 2, SUITE 201
		CITY:			WAKEFIELD
		STATE:			MA
		ZIP:			01880
		BUSINESS PHONE:		978-868-5011

	MAIL ADDRESS:	
		STREET 1:		107 AUDUBON ROAD
		STREET 2:		BLDG 2, SUITE 201
		CITY:			WAKEFIELD
		STATE:			MA
		ZIP:			01880

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Security Devices International Inc.
		DATE OF NAME CHANGE:	20060301
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>byrn-8k_011521.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Washington,
D.C. 20549</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt"><B>FORM
8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>CURRENT
REPORT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>Pursuant
to Section 13 or 15(d) of the</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>Securities
Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Date
of Report (Date of earliest event reported): <B>January 15, 2021</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 24pt"><B>BYRNA
TECHNOLOGIES INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Exact
name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Delaware</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State
or other jurisdiction of incorporation)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 30.15pt; text-align: center; font: 10pt Times New Roman, Times, Serif; width: 15%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 30.15pt; text-align: center; width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>333-132456</B></FONT></TD>
    <TD STYLE="padding-left: 30.15pt; text-align: center; font: 10pt Times New Roman, Times, Serif; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 30.15pt; text-align: center; width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>71-1050654</B></FONT></TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 30.15pt; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 30.15pt; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Commission
    File Number)</FONT></TD>
    <TD STYLE="padding-left: 30.15pt; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 30.15pt; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(IRS
    Employer Identification No.)</FONT></TD>
    <TD>&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>100
Burtt Road, Suite 115 </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Andover,
MA 01810</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address
and Zip Code of principal executive offices)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(978)
868-5011</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Registrant&rsquo;s
telephone number, including area code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&sect;230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging
growth company&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
registered pursuant to Section 12(b) of the Act: None</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0%; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.75in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
                                         1.01.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Entry
                                         into a Material Definitive Agreement.</B></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 19, 2021, Byrna Technologies Inc. (the &ldquo;Company&rdquo;) entered into a Commercial Loan and Security Agreement (the
&ldquo;Loan Agreement&rdquo;) with Needham Bank (the &ldquo;Bank&rdquo;), pursuant to which the Bank established a revolving line
of credit of up to $5,000,000 as evidenced by a Secured Revolving Line of Credit Note executed by the Company in favor of the
Bank (the &ldquo;Revolving Note&rdquo;) and (ii) a non-revolving equipment line of credit of up to $1,500,000 as evidenced by
equipment term notes in the principal amounts drawn from time to time (the &ldquo;Term Notes,&rdquo; and together with the Revolving
Note, the &ldquo;Notes&rdquo;). Pursuant to the Loan Agreement, the Company granted the Bank a security interest in substantially
all of the assets of the Company to secure the Notes. The Loan Agreement contains customary affirmative and negative covenants
for loans of this nature.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest
on each of the Notes accrues at a floating rate equal to the greater of (i) the sum of the Prime Rate (as described below) plus
0.50%, and (ii) 4.00%, per annum, and is payable monthly in arrears (except as described below). The &ldquo;Prime Rate&rdquo;
means the Prime Rate as published in the &ldquo;Money Rates&rdquo; Section of the Wall Street Journal (or, if such rate is no
longer published, such other comparable reference rate as designated by the Bank). If not sooner repaid or accelerated, the Revolving
Note matures on January 19, 2024. After the first anniversary of each Term Note, the Company is required to pay, in addition to
interest, amortization payments based on a five-year amortization schedule. The Company may draw down on the non-revolving equipment
line of credit until January 19, 2023. If not sooner repaid or accelerated, each Term Note matures six years after its issuance
date. The Company may prepay the Notes, in whole or in part, without penalty at any time. The obligations of the Company under
the Notes may be accelerated upon the occurrence of an event of default under the Loan Agreement, which includes customary events
of default. Additionally, the Company will be required to pay an unused line fee in respect of unused portions of the revolving
line of credit and the non-revolving equipment line of credit.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
foregoing descriptions of the Loan Agreement, the Revolving Note and the Form of Term Note are qualified in their entirety by
reference to the full and complete terms of these documents, which are attached as Exhibits 4.1, 4.2 and 4.3, respectively, to
this Current Report on Form 8-K and incorporated herein by reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0%; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.75in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
                                         1.02.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Termination
                                         of a Material Definitive Agreement.</B></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
previously disclosed, on December 1, 2020 the Company entered into a Purchase Agreement and Joint Escrow Instructions (the &ldquo;Purchase
Agreement&rdquo;) with Janes Source Properties LLC, a Nevada limited liability company (the &ldquo;Seller&rdquo;), which Purchase
Agreement was dated effective November 27, 2020. Pursuant to the Purchase Agreement, the Company agreed to purchase, for a price
of $2,100,000, certain real property, consisting of approximately 11,300 square foot industrial office/warehouse building situated
on an approximately 0.70-acre parcel, located in Las Vegas, Nevada. On December 23, 2020, the Company provided notice to Seller
of its decision to terminate the Purchase Agreement. A copy of the Purchase Agreement was filed as an exhibit to the Company&rsquo;s
Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 2, 2020. The description of the Purchase
Agreement contained in this Current Report on Form 8-K does not purport to be complete and is qualified in its entirety by reference
to the copy of the Purchase Agreement filed as an exhibit to the December 2, 2020 Form 8-K.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0%; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.75in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
                                         2.03.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Creation
                                         of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
                                         of a Registrant.</B></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
information contained in Item 1.01 above is incorporated by reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0%; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.75in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
                                         5.03.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Creation
                                         of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
                                         of a Registrant.</B></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with entering into the Loan Agreement, on January 15, 2021, the Company filed an Amendment (the &ldquo;Amendment&rdquo;)
to the Certificate of Designations of Series A Convertible Preferred Stock (the &ldquo;Certificate of Designations&rdquo;). The
Amendment revised the Certificate of Designations to permit the Company to incur indebtedness of up to $7,000,000 without the
prior consent of the holders of Series A Convertible Preferred Stock. The Amendment required, and the Company obtained, the consent
of the holders of Series A Convertible Preferred Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
foregoing description of the Amendment is qualified in its entirety by reference to the full and complete terms of the Amendment,
which is attached hereto as Exhibit 3.1 to this Current Report on Form 8-K and incorporate herein by reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0%; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.75in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
                                         7.01.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Regulation
                                         FD Disclosure.</B></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 22, 2021, the Company issued a press release. Pursuant to Item 7.01 of Form 8-K, a copy of the press release is furnished
as Exhibit 99.1 to this Current Report on Form 8-K.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
information in Item 7.01 and Exhibit 99.1 shall not be deemed &ldquo;filed&rdquo; for purposes of Section 18 of the Securities
Exchange Act of 1934, or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference
in any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general
incorporation language in such filing, unless expressly incorporated by specific reference in such filing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0%; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.75in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item&nbsp;9.01.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Financial
                                         Statements and Exhibits.</B></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 6%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 93%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibits.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ex3-1.htm">3.1</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ex3-1.htm">Amendment to the Certificate of Designations of Series A Convertible Preferred Stock, dated January 15, 2021</A></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><A HREF="ex4-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="ex4-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commercial Loan and Security Agreement, by and between Byrna Technologies Inc. and Needham Bank, dated January 19, 2021</FONT></A></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><A HREF="ex4-2.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="ex4-2.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Secured Revolving Line of Credit Note, by Byrna Technologies Inc. in favor of Needham Bank, dated January 19, 2021</FONT></A></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><A HREF="ex4-3.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="ex4-3.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Term Note</FONT></A></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; vertical-align: top; font: 10pt Times New Roman, Times, Serif"><A HREF="ex99-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="ex99-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Press Release, dated January 22, 2021</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 90.3pt; text-align: center; color: #231F20"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SIGNATURES</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #231F20"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.95pt; text-indent: 22.5pt; color: #231F20"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: black"><B>BYRNA
    TECHNOLOGIES INC</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</FONT></B></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 50%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 37%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date:
    January 22, 2021</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;/s/
    Bryan Ganz</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:
        Bryan Ganz</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:
        Chief Executive Officer</FONT></P></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
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<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>ex3-1.htm
<DESCRIPTION>AMENDMENT TO THE CERTIFICATE OF DESIGNATIONS
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
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<BODY>


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<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><A HREF="byrn-8k_011521.htm"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">BYRNA TECHNOLOGIES INC.&nbsp;8-K</FONT></A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 3.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CERTIFICATE OF AMENDMENT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TO THE<BR>
CERTIFICATE OF DESIGNATIONS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SERIES A CONVERTIBLE PREFERRED STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>BYRNA TECHNOLOGIES INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pursuant to Section 151 of the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Delaware General Corporation Law</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Byrna Technologies Inc. (the &ldquo;Corporation&rdquo;),
a corporation organized and existing under the General Corporation Law of the State of Delaware (the &ldquo;DGCL&rdquo;), DOES
HEREBY CERTIFY:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FIRST: That the original Certificate of Designations
of Series A Convertible Preferred Stock of the Corporation was filed with the Secretary of State of the State of Delaware on April
8, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">SECOND: That on December 17, 2020, the Board
of Directors of the Corporation, acting in accordance with the provisions of Section 141 of the DGCL, adopted the following resolutions
with the effect of approving and adopting this Certificate of Amendment to the Certificate of Designations (the &ldquo;Certificate
of Amendment&rdquo;) and authorizing and directing the officers of the Corporation, for and on behalf of the Corporation, to execute
and file this Certificate of Amendment with the Secretary of State of the State of Delaware in accordance with Section 151 of the
DGCL:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">RESOLVED, that the Board
approves the Proposed Amendment, subject to the requisite approval of the holders of the Series A Convertible Preferred Stock;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">RESOLVED FURTHER, that
the officers of the Corporation be, and each of them hereby is, authorized and directed, for and on behalf of the Corporation,
to take all action deemed necessary or appropriate to solicit the approval by holders of the outstanding shares of the Series A
Convertible Preferred Stock with respect to the Certificate of Amendment, and that any and all such actions that may have been
taken to date with respect thereto are hereby ratified, confirmed, authorized and approved in all respects; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">RESOLVED FURTHER, that,
upon receipt of the approval by the holders of the outstanding shares of the Series A Convertible Preferred Stock, the officers
of the Corporation be, and each of them hereby is, authorized and directed, for and on behalf of the Corporation, to execute and
file the Certificate of Amendment with the Secretary of State of the State of Delaware, with such changes thereto as such officers
may deem necessary or appropriate, with the execution thereof to be evidence of approval of such changes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">THIRD: That Section 3(iii) of the Certificate
of Designations of Series A Convertible Preferred Stock shall be amended and restated to read in its entirety as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;(iii) (A) issue any securities having
a preference over the Series A Preferred Stock upon a Liquidation Event (as defined below) or with respect to the right to dividends
or (B) enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including
but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom, if the aggregate value of such securities or such indebtedness as described in (iii)(A)
and (iii)(B), in the aggregate, would exceed $7,000,000.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FOURTH: That this Certificate of Amendment
shall become effective upon filing with the Secretary of State of the State of Delaware.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">******************</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">IN WITNESS WHEREOF, the Corporation has caused
this Certificate of Amendment to be signed by its Chief Executive Officer this 15th day of January, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;/s/ Bryan Ganz</FONT></TD>
    <TD STYLE="width: 50%; font: 12pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-size: 10pt">Bryan Ganz, Chief Executive Officer</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</TD></TR>
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<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>3
<FILENAME>ex4-1.htm
<DESCRIPTION>COMMERCIAL LOAN AND SECURITY AGREEMENT
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

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<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><A HREF="byrn-8k_011521.htm"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">BYRNA TECHNOLOGIES INC.&nbsp;8-K</FONT></A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 4.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 42%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NEEDHAM BANK</B></FONT></TD>
    <TD STYLE="width: 58%; text-align: right; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>COMMERCIAL LOAN AND </B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SECURITY AGREEMENT</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This COMMERCIAL LOAN
AND SECURITY AGREEMENT (as it may be amended, restated, supplemented or otherwise modified from time to time, this &ldquo;<U>Agreement</U>&rdquo;)
is made this 19<SUP>th</SUP> day of January 2021 (the &ldquo;<U>Effective Date</U>&rdquo;) by and between <B>BYRNA TECHNOLOGIES INC.</B>,
a Delaware corporation having its principal office location located at 100 Burtt Road, Andover, Massachusetts 01810 (&ldquo;<U>Borrower</U>&rdquo;),
and <B>NEEDHAM BANK</B>, a Massachusetts co-operative bank having an address of 1063 Great Plain Avenue, Needham, Massachusetts
02492 (&ldquo;<U>Lender</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 1.</B></TD><TD><B>AMOUNTS AND TERMS OF CREDIT AND INTEREST</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Revolving
Line of Credit</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions of this Agreement, Lender hereby establishes a revolving line of credit of up to FIVE MILLION and 00/100
DOLLARS ($5,000,000.00) (the &ldquo;<U>Revolving Loan</U>&rdquo;) to be advanced as hereinafter provided. Subject to the terms of
this Agreement, upon Borrower&rsquo;s request and absent the occurrence of an Event of Default hereunder, Lender shall make advances
in the form of direct loans to Borrower; <U>provided</U>, <U>however</U>, that no advance under the Revolving Loan will be made
if, after giving effect to Borrower&rsquo;s request for such advance, the aggregate outstanding principal balance of all outstanding
advances made under the Revolving Loan would exceed the <U>lesser of</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(a)</TD><TD>Five Million and 00/100 Dollars ($5,000,000.00) (the
&ldquo;<U>Credit Limit</U>&rdquo;), and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">the aggregate sum of:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;up
to eighty-five percent (85%) (or such other higher percentage as may from time to time be fixed by Lender upon notice to Borrower)
of the aggregate unpaid face amount of all Eligible Accounts Receivable (as defined below) which are due and payable to Borrower
and which arise out of a contract with any federal, state or municipal governmental agency or any department or instrumentality
thereof, less than one hundred (120) days from the invoice date thereof, PLUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;up
to eighty percent (80%) (or such other higher percentage as may from time to time be fixed by Lender upon written notice to Borrower)
of the aggregate unpaid face amount of all other remaining Eligible Accounts Receivable less than ninety (90) days from the invoice
date thereof, PLUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
sum of (a) fifty percent (50%) (or such other higher percentage as may from time to time be fixed by Lender upon notice to Borrower)
of Eligible Inventory (as defined below) and (b) twenty-five percent (25%) (or such other higher percentage as may from time to
time be fixed by Lender upon notice to Borrower) of Borrower&rsquo;s raw materials; <U>provided</U>, <U>however</U>, that strictly
for purposes of calculating the Borrowing Base (as defined below), under no circumstances shall the credit available from the sum
of Eligible Inventory and raw materials exceed Two Million Five Hundred Thousand and 00/100 Dollars ($2,500,000.00), PLUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;so
long as Borrower&rsquo;s current chargeback rate with respect to Credit Card Receivables (as defined below) is five percent (5.00%)
or less, fifty percent (50%) (or such other higher percentage as may be from time to time be fixed by Lender upon notice to Borrower)
of the sum equal to ninety percent (90%) of all Eligible Credit Card Receivables (as defined below). For purposes of the foregoing,
the Borrower&rsquo;s current cancellation and/or chargeback rate shall be the quotient equal to (a) the sum of the chargebacks/reversals
received by each applicable Credit Card Issuer or Credit Card Processor, <U>divided</U> by (b) the sum of all credit card payments
received on behalf of Borrower by each applicable Credit Card Issuer or Credit Card Processor, all as determined in accordance
with each respective monthly credit card processing statement generated and issued to Borrower by each applicable Credit Card Issuer
and Credit Card Processor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The aggregate sum of
the foregoing subsections 1.1.1(b)(i), 1.1.1(b)(ii), 1.1.1(b)(iii) and 1.1.1(b)(iv) are hereinafter referred to as the &ldquo;<U>Borrowing
Base</U>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of calculating the Borrowing Base set forth above, (i) as used herein the term &ldquo;<U>Account</U>&rdquo; means an account,
as that term is defined, from time to time, in Article 9 of the Uniform Commercial Code as adopted in the State of Delaware from
time to time (the &ldquo;<U>UCC</U>&rdquo;, provided that if by reason of mandatory provisions of law, the creation and/or perfection
or the effect of perfection or non-perfection of the security interests in any collateral is governed by the Uniform Commercial
Code as in effect in a jurisdiction other than the State of Delaware, the term &ldquo;<U>UCC</U>&rdquo; shall also mean the Uniform
Commercial Code as in effect from time to time in such other jurisdiction), of Borrower and, in any event, shall include, without
limitation, any right of Borrower to payment of a monetary obligation, whether or not earned by performance and whether or not
evidenced by an instrument, for (a) property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed
of, (b) services rendered or to be rendered, (c) a policy of insurance issued or to be issued, or (d) a secondary obligation incurred
or to be incurred, (ii) as used herein the term &ldquo;<U>Account Debtor</U>&rdquo; means a person or entity obligated on an Account,
chattel paper or general intangible, and (iii) as used herein the term &ldquo;<U>Eligible Accounts Receivable</U>&rdquo; are defined
as Accounts which are owing to Borrower which met the following specifications at the time it came into existence and continues
to meet the same until collected in full:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">The Account arose from the performance of services or an outright sale of goods by Borrower, such
goods have been shipped to the Account Debtor, and Borrower has possession of, or has delivered to Lender, shipping and delivery
receipts evidencing such shipment.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">The Account is solely owned by Borrower and is not subject to any prior assignment, claim, lien,
or security interest, and Borrower will not make any further assignment thereof or create any further security interest therein,
nor permit Borrower&rsquo;s rights therein to be reached by attachment, levy, garnishment or other judicial process.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">The Account is the binding obligation of the Account Debtor enforceable by Borrower in the courts
of the jurisdiction in which the Account Debtor is located and the Account is not subject to set-off, credit, allowance, adjustment
or other defense by the Account Debtor, except for a discount or allowance allowed by Borrower in the ordinary course of its business
for prompt payment and the Account Debtor has not returned any of the goods from the sale of which the Account arose.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">The Account arose in the ordinary course of Borrower&rsquo;s business and did not arise from the
performance of services or a sale of goods to a supplier or employee of Borrower.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify">No notice of bankruptcy or insolvency of the Account Debtor has been received by or is known
to Borrower.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(vi)</TD><TD STYLE="text-align: justify">The Account is not owed by an Account Debtor whose principal place of business is outside
the United States of America.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(vii)</TD><TD STYLE="text-align: justify">The Account did not arise out of a transaction with an officer, director, shareholder, employee
or agent of Borrower and is not owed by an entity which is a parent, subsidiary or affiliate of Borrower.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(viii)</TD><TD STYLE="text-align: justify">The Account Debtor is not located in any jurisdiction in which Borrower has not complied
with any laws which might restrict the ability of Borrower to collect such Account, including, without limitation, the State
of New Jersey, the State of West Virginia or the State of Minnesota, unless Borrower has filed and shall file all legally
required notices of business activity reports, including, without limitation, each required Notice of Business Activities
Report(s) with the New Jersey Division of Taxation, the West Virginia Department of Tax and Revenue or the Minnesota
Department of Revenue, as applicable.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ix)</TD><TD STYLE="text-align: justify">The Account is not evidenced by a promissory note.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(x)</TD><TD>The Account is on an absolute sale basis and not on
consignment, on approval, or on a sale and return basis or subject to any other repurchase or return agreement.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xi)</TD><TD STYLE="text-align: justify">The Account did not arise out of any sale made on a bill and hold, dating or delayed shipment
basis.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xii)</TD><TD STYLE="text-align: justify">The Account did not arise out of a contract with the United States government or any
department, agency or instrumentality thereof, unless Borrower has complied with the Federal Assignment of Claims Act or
other applicable law.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xiii)</TD><TD STYLE="text-align: justify">Borrower has not received any notice, whether written or oral, pursuant to which the Account
Debtor is disputing all or any portion of the Account owed on the basis of failure to perform by Borrower.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xiv)</TD><TD STYLE="text-align: justify">Borrower has sent a written invoice to the Account Debtor in the amount of the Account.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Provided that if at
any time fifty percent (50%) or more of the aggregate amount of the Accounts due from any one (1) Account Debtor are unpaid in
whole or in part more than ninety (90) days from the respective dates of invoice (or more than one hundred twenty (120) days from
the respective dates of invoice with respect to any contracts entered into with any federal, state or municipal governmental agency
or any department or instrumentality thereof), from and after such time none of the Accounts (then existing or thereafter arising)
due from such Account Debtor shall be deemed to be Eligible Accounts Receivable for purposes of calculating the Borrowing Base
until such time as all Accounts due from such Account Debtor are, as a result of actual payments received thereon, no more than
ninety (90) days from the date of invoice (or more than one hundred twenty (120) days from the respective dates of invoice with
respect to any contracts entered into with any federal, state or municipal governmental agency or any department or instrumentality
thereof).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The characterization
of any Account due from an Account Debtor as an Eligible Accounts Receivable shall not be deemed a determination by Lender as to
its actual value nor in any way obligate Lender to accept any Account subsequently arising from such Account Debtor to be, or to
continue to deem such Account to be, an Eligible Accounts Receivable. It is Borrower&rsquo;s sole responsibility to determine the creditworthiness
of Account Debtors and all risks concerning the same and collection of Accounts are solely with Borrower. All Accounts, whether
or not Eligible Accounts Receivable, constitute Collateral (as hereinafter defined).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of calculating the Borrowing Base set forth above, &ldquo;<U>Eligible Inventory</U>&rdquo; means all Inventory (as defined
in Article 9 of the UCC) of Borrower, including, without limitation, Borrower&rsquo;s finished goods which are initially and at
all times until sold new and unused, merchantable and saleable through normal trade channels; located at a location which has been
identified in writing to Lender or otherwise permitted hereunder; subject to a perfected first-priority security interest in favor
of Lender (other than Permitted Liens (as defined herein)); and is owned by Borrower free and clear of any lien except in favor
of Lender (other than Permitted Liens). In determining the amount to be so included, Eligible Inventory shall be valued at its
net orderly liquidation value, as determined by Lender in its sole discretion. An item of Inventory shall not be included in Eligible
Inventory if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">It is used, returned, rejected, damaged, and/or otherwise not in merchantable and saleable through
normal trade channels;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">It is obsolete;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">It is perishable or alive;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">It is consignment Inventory or otherwise acquired by Borrower on consignment;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify">Borrower does not have good, valid and marketable title to such Inventory;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(vi)</TD><TD STYLE="text-align: justify">It is subject to any assignment, claim, lien, or security interest (other than those filed in favor
of Lender or other Permitted Liens);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(vii)</TD><TD STYLE="text-align: justify">It is subject to a judgment, order or decree that restricts or prevents Borrower from selling it;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(viii)</TD><TD STYLE="text-align: justify">Borrower does not have actual and exclusive possession thereof (either directly or through a bailee
or agent of Borrower);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ix)</TD><TD STYLE="text-align: justify">It is in-transit to or from a location of Borrower (other than with an employee in the ordinary
course of business or between Borrower locations);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(x)</TD><TD STYLE="text-align: justify">It is not covered by insurance as required pursuant to this Agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xi)</TD><TD STYLE="text-align: justify">Unless it is subject to a landlord&rsquo;s consent and waiver of lien (or other similar type document)
in form and substance acceptable to Lender executed by the applicable lessor or warehouseman, as the case may be, in favor of Lender,
it is located on real property leased by Borrower or in a contract warehouse;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xii)</TD><TD STYLE="text-align: justify">It is the subject of a bill of lading or other document of title;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xiii)</TD><TD STYLE="text-align: justify">It is not subject to a valid first priority perfected security interest in favor of Lender;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xiv)</TD><TD STYLE="text-align: justify">It is the subject of restrictive or custom orders;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xv)</TD><TD STYLE="text-align: justify">It constitutes work-in-process, raw materials, or goods that constitute spare parts, packaging
and shipping materials, supplies used or consumed in Borrower&rsquo;s business, bill and hold goods, defective goods, or &ldquo;seconds&rdquo;;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xvi)</TD><TD STYLE="text-align: justify">It is subject to a third-party trademark, licensing or other proprietary rights, unless Lender
is satisfied that such Inventory can be freely sold by Lender on and after the occurrence of an Event of Default despite such third-party
rights;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xvii)</TD><TD STYLE="text-align: justify">It is shrink reserve; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(xviii)</TD><TD STYLE="text-align: justify">It is subject to reserve for market adjustment.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of calculating the Borrowing Base set forth above, the following definitions shall apply:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Credit
Card Agreement</U>&rdquo; or &ldquo;<U>Credit Card Agreements</U>&rdquo; means each and every agreement now or hereafter entered into
by Borrower with any Credit Card Issuer or any Credit Card Processor, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Credit
Card Direction Letter</U>&rdquo; means a letter agreement signed and delivered by Borrower and addressed to a Credit Card Issuer
or Credit Card Processor who is a party to a Credit Card Agreement with Borrower, in form and substance reasonably satisfactory
to Lender and countersigned by such Credit Card Issuer or Credit Card Processor, which Credit Card Direction Letter shall require
ACH or wire transfer into the Operating Account maintained with Lender, no less frequently than each business day, of all Credit
Card Receivables due and payable to Borrower from such Credit Card Issuer or Credit Card Processor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Credit
Card Issuer</U>&rdquo; means the issuers of MasterCard or Visa bank credit or debit Cards or other bank credit or debit cards issued
through MasterCard International, Inc., Visa U.S.A., Inc., Visa International, American Express, Discover, and Diners Club (or
their respective successors).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Credit
Card Processor</U>&rdquo; means any person or entity that acts as a credit card clearinghouse or processor with respect to any sales
transactions involving credit card purchases by customers using credit cards issued by any Credit Card Issuer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-size: 10pt; color: #333333">(e)</FONT><FONT STYLE="color: #333333">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-size: 10pt">&ldquo;<U>Credit
Card Receivable</U>&rdquo; or &ldquo;<U>Credit Card Receivables</U>&rdquo; means, collectively, each Account, together with all income,
payments and proceeds thereof, owed to Borrower from any Credit Card Issuer or Credit Card Processor arising from the sale of goods
or Inventory or the performance of services by Borrower to customers who have purchased such goods, Inventory or services using
a credit or debit card, including, without limitation, all amounts at any time due or to become due from any Credit Card Issuer
or Credit Card Processor under each Credit Card Agreement or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Eligible
Credit Card Receivable</U>&rdquo; or &ldquo;<U>Eligible Credit Card Receivables</U>&rdquo; means at the time of any determination
thereof, each Credit Card Receivable that satisfies the following criteria at the time of its creation and continues to meet the
same at the time of such determination: such Credit Card Receivable (i) has been fully earned and represents the bona fide amount
due to Borrower from a Credit Card Issuer or Credit Card Processor, and in each case originated in the ordinary course of Borrower&rsquo;s
business, (ii) is due and payable to Borrower from a Credit Card Issuer or Credit Card Processor that has previously executed and
delivered in favor of Lender an original fully executed Credit Card Direction Letter and such Credit Card Direction Letter remains
in full force and effect as of the time of such determination; <U>provided</U>, <U>however</U>, any Credit Card Receivable which
has been received on behalf of Borrower by Fiserv, Inc. and which otherwise satisfies the criteria contained herein to constitute
an Eligible Credit Card Receivable shall nonetheless be deemed to be Eligible Credit Card Receivable for purposes of calculating
the Borrowing Base even though Lender may not have yet received a fully executed Credit Card Direction Letter from Fiserv, Inc.,
and (iii) is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of the excluding criteria set
forth in subsections (i) through (viii) below. Without limiting the foregoing, to qualify as an Eligible Credit Card Receivable,
a Credit Card Receivable shall indicate no person other than Borrower as the payee or remittance party. In determining the amount
to be so included in the Borrowing Base, the face amount of a Credit Card Receivable shall be reduced by, without duplication,
to the extent not reflected in such face amount, (x) the amount of accrued and actual discounts, claims, credits or credits pending,
promotional program allowances, price adjustments, finance charges, credit card processor fees or other allowances (including any
amount that Borrower may be obligated to rebate to a customer, a Credit Card Issuer or a Credit Card Processor pursuant to the
terms of any Credit Card Agreement), and (y) the aggregate amount of all cash received in respect of such Credit Card Receivable
but not yet applied by Borrower to reduce the amount of such Credit Card Receivable. Unless otherwise approved from time to time
by Lender in its sole discretion, no Credit Card Receivable shall constitute an Eligible Credit Card Receivable if, without duplication:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such Credit Card Receivable is not owned by Borrower and Borrower does not have good or marketable title to such Credit Card Receivable;</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such Credit Card Receivable does not constitute an Account or a &ldquo;payment intangible&rdquo; (as defined in the UCC);</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Credit Card Issuer or Credit Card Processor with respect to such Credit Card Receivable is the subject of any bankruptcy or insolvency proceedings;</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such Credit Card Receivable is not the valid, legally enforceable obligation of the applicable Credit Card Issuer or Credit Card Processor with respect thereto;</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such Credit Card Receivable is subject to any lien or security interest other than a lien in favor of Lender;</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such Credit Card Receivable is not subject to a valid and perfect lien and security interest in favor of Lender, senior in priority to all other liens;</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such Credit Card Receivable is subject to risk of set-off, non-collection or not being processed due to unpaid and/or accrued credit card processor fee balances due to any Credit Card Issuer or Credit Card Processor, limited to the lesser of the balance of the Credit Card Receivable or such unpaid credit card processor fees; or</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such Credit Card Receivable is evidenced by chattel paper or an instrument of any kind unless such chattel paper or instrument is subject to the perfected lien and security interest in favor of Lender; or</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
interest on the outstanding principal balance of the Revolving Loan shall be payable in accordance with the terms of that certain
Secured Revolving Line of Credit Note of even date made and delivered by Borrower and payable to the order of Lender in the maximum
principal amount of FIVE MILLION and 00/100 DOLLARS ($5,000,000.00) (as it may be amended, restated, supplemented, or otherwise
modified from time to time, the &ldquo;<U>Revolving Note</U>&rdquo;). Interest on the Revolving Loan shall be computed on the basis
of a 360-day year, for the actual number of days elapsed. Default interest shall be charged in accordance with the terms of the
Revolving Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
not sooner paid, the then outstanding principal balance of the Revolving Loan, together with all accrued and outstanding interest
and fees thereon, shall be payable in full without notice or demand on January 19, 2024 (the &ldquo;<U>Revolving Loan Maturity Date</U>&rdquo;).
On any date on which a regularly scheduled payment of accrued interest is due and payable under the Revolving Note, Lender may
charge the Operating Account (as defined hereinbelow) with the amount thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
advance under the Revolving Loan will be made after January 18, 2024 (the &ldquo;<U>Revolving Loan Advance Expiration Date</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the close of Lender&rsquo;s business on the Revolving Loan Advance Expiration Date, Borrower may, subject to the terms and conditions
of the Revolving Note, repay, in whole or in part, the principal balance of the Revolving Loan and may, absent the occurrence of
an Event of Default (as defined below) hereunder which remains uncured and outstanding, re-borrow any such principal amounts repaid,
all in accordance with the terms and conditions of this Agreement and the Revolving Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
proceeds of any advance made under the Revolving Loan shall be used by Borrower (i) to provide for the working capital needs of
Borrower and (ii) for any other general corporate purposes of Borrower. Lender agrees that so long as Borrower complies with the
terms and conditions of the Revolving Note and this Agreement, and provides not less than twenty-four (24) hours&rsquo; notice of any
proposed advance under the Revolving Note, Lender shall cause the amount of such requested advance under the Revolving Loan to
be made available to Borrower at the time and in the manner requested by Borrower; <U>provided</U>, <U>however</U>, that Lender
shall have no obligation to make the requested advance if, after giving effect to the requested advance, the aggregate outstanding
principal balance of all advances under the Revolving Note will exceed Five Million and 00/100 Dollars ($5,000,000.00). If, at
any time, the aggregate unpaid principal balance of all advances made under the Revolving Loan exceeds $5,000,000.00, Borrower
shall immediately pay to Lender the amount of such excess without notice or demand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing
with Borrower&rsquo;s fiscal year ending on November 30, 2021 and continuing on the last day of each fiscal year thereafter during
the term of the Revolving Loan, Borrower shall pay to Lender, on an annual basis within thirty (30) days after each fiscal year-end,
the Revolving Loan Unused Fee (as defined below). For purposes of this Agreement, the &ldquo;<U>Revolving Loan Unused Fee</U>&rdquo;
means an amount equal to the product of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">one-quarter of one percent (0.25%) (or twenty-five (25) basis points), <U>multiplied by</U></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">the daily average unused portion of the Revolving Loan, measured annually in arrears based on Lender&rsquo;s
and Borrower&rsquo;s books and records.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used herein, the
term &ldquo;<U>unused portion of the Revolving Loan</U>&rdquo; means that amount by which (x) the maximum principal amount of the
Revolving Loan (i.e., $5,000,000.00) exceeds (y) the then aggregate outstanding principal balance of the Revolving Loan, whether
such excess results from the fact that Lender has for any reason not made advances up to the maximum principal amount of the Revolving
Loan, from the fact that any advances previously made have been repaid by Borrower, or due to any other reason. Such Revolving
Loan Unused Fee shall be computed in arrears on the daily average unused portion of the Revolving Loan during the prior fiscal
year then ending and shall be computed for the actual number of days during such measurement period. On any date which the Revolving
Loan Unused Fee is due hereunder, Lender may charge the Operating Account with the amount thereof, if not already paid, after notice
to Borrower of Lender&rsquo;s intention to charge for such unpaid fee. The failure of Lender to charge such account shall not relieve
Borrower of its obligations to pay the Revolving Loan Unused Fee when due and payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
consideration of Lender making the Revolving Loan available to Borrower, at the Closing, Borrower shall pay to Lender a one-time
non-refundable loan origination fee in the amount of Twenty-Five Thousand and 00/100 Dollars ($25,000.00), which loan origination
fee will be deemed fully earned upon the Effective Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Revolving
Equipment Line of Credit</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions of this Agreement, Bank will make a non-revolving equipment line of credit available to Borrower on
or about the date of execution of this Agreement in the maximum principal amount of up to ONE MILLION FIVE HUNDRED THOUSAND and
00/100 DOLLARS ($1,500,000.00) (the &ldquo;<U>Equipment Loan</U>,&rdquo; and hereinafter together with the Revolving Loan and each
term loan evidenced by an Equipment Term Note (as defined in <U>Section 1.2.6</U> below), are each referred to herein as a &ldquo;<U>Loan</U>&rdquo;
and collectively as the &ldquo;<U>Loans</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the terms and conditions hereof, including, without limitation, <U>Sections 1.2.3</U>, <U>1.2.4</U> and <U>1.2.5</U>
below, during the period commencing with the Effective Date and expiring on the <U>earlier</U> to occur of: (i) the date that is
twenty-four (24) months from the Effective Date (i.e., January 19, 2023), (ii) the date on which the undrawn available loan proceeds
under Equipment Loan is reduced to zero ($0.00), and (iii) the termination of this Agreement (such period of time being referred
to herein as the &ldquo;<U>Equipment Line Draw Period</U>&rdquo;), Lender agrees that so long as Borrower complies with the terms
and conditions of this Agreement, including, without limitation, the delivery to Lender of the required Equipment Documentation
(as defined in <U>Section 1.2.3</U> below) in form reasonably satisfactory to Lender in its sole discretion, and provides not less
than twenty-four (24) hours&rsquo; prior notice of any proposed advance under the Equipment Loan (or such shorter period as agreed by
Lender in its sole discretion), Lender agrees to make advances under the Equipment Loan in the form of direct loans to Borrower
and Lender shall cause the amount of such advance to be made available to Borrower at the time and in the manner requested by Borrower;
<U>provided</U>, <U>however</U>, that Lender shall have no obligation to make the requested advance, if, after giving effect to
the requested advance, the aggregate outstanding principal balance of all advances made under the Equipment Loan will exceed One
Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00). No advance under the Equipment Loan shall be made after the expiration
or earlier termination of the Equipment Line Draw Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
proceeds of any advance made under the Equipment Loan shall be used by Borrower solely towards the payment of the purchase price
for either new/unused and/or used equipment and machinery to be acquired by Borrower (to be owned and held in Borrower&rsquo;s name)
which is to be used in connection with, or is directly related to, the continued operation of Borrower&rsquo;s business as it is currently
conducted as of the Effective Date or in connection with Borrower&rsquo;s business as of the date of any requested advance under
the Equipment Loan. Lender shall be under no obligation to make or honor any requested advance under the Equipment Loan until Lender
has received written evidence, in form and substance satisfactory to Lender in its sole discretion, identifying the specific equipment
or machinery being purchased by Borrower and the corresponding net purchase price to be paid by Borrower therefor, which written
evidence may include, but is not limited to, any of receipts, invoices, purchase orders or bills of lading, which describes the
make and model of each piece of equipment or machinery being purchased and more particularly identifies each piece of equipment
or machinery by an individual serial number, as applicable (collectively, the &ldquo;<U>Equipment Documentation</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions of this Agreement, including, without limitation, Borrower&rsquo;s delivery to Lender of the required
Equipment Documentation, (1) each requested advance under the Equipment Loan made in connection with Borrower&rsquo;s purchase
of a new and unused piece of equipment or machinery shall be in an amount not to exceed ninety percent (90%) of the purchase price
to be paid by Borrower for such new and unused equipment or machinery as evidenced by a written invoice, or other Equipment Documentation
in form reasonably acceptable to Lender in its sole discretion, issued by the seller of such equipment or machinery, and (2) each
requested advance under the Equipment Loan made in connection with Borrower&rsquo;s purchase of a used piece of equipment or machinery
shall be in an amount not to exceed either (x) eighty percent (80%) of the purchase price to be paid by Borrower for such used
piece equipment or machinery as evidenced by a written invoice issued by the seller of such equipment or machinery, or (y) if a
written invoice is not available in connection with Borrower&rsquo;s purchase of such used piece of equipment or machinery, eighty
percent (80%) of the appraised value of the used piece of equipment or machinery being purchased as established pursuant to a current
appraisal of the specific equipment or machinery, which appraisal shall be in form reasonably acceptable to Lender, or (z) if neither
a written invoice nor a current appraisal of the specific used equipment or machinery being purchased by Borrower is available,
then seventy-five percent (75%) of the current net book value of the specific used equipment or machinery being purchased by Borrower
as determined by Borrower and the seller of such equipment or machinery and approved by Lender in its sole yet reasonable discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contemporaneously
with, and as a condition precedent to, Lender making each advance to Borrower under the Equipment Loan, Borrower shall duly execute
and deliver an equipment term note in the form of promissory note attached hereto as <B><U>Exhibit C</U></B> and made a part hereof
with each such equipment term note being in an original principal sum equal to the amount of the corresponding advance being made
by Lender to Borrower under the Equipment Loan (each equipment term note executed and delivered by Borrower in connection with
each advance made under the Equipment Loan are collectively, and each individually as the context may require, referred to herein
as an &ldquo;<U>Equipment Term Note</U>&rdquo;) (each Equipment Term Note, together with the Revolving Note are sometimes collectively
referred to herein as the &ldquo;<U>Notes</U>&rdquo;). Pursuant to the terms of each Equipment Term Note, Borrower shall make payments
of accrued interest only, in arrears, during the first twelve (12) months of the term of each Equipment Term Note, which interest
only period shall be immediately followed by a five (5) year Amortization Period (as such term is defined in each Equipment Term
Note) during which Borrower shall make amortizing payments of principal (together with payments of accrued interest, in arrears)
based upon a fully amortizing five (5) year amortization schedule. On any date on which a regularly scheduled payment of accrued
interest and/or principal is due under any Equipment Term Note, Lender may charge the Operating Account with the amount thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal
and interest on the Equipment Loan shall be payable in accordance with the terms and conditions of each respective Equipment Term
Note executed and delivered by Borrower to Lender in connection with each advance made under the Equipment Loan as more particularly
set forth in <U>Section 1.2.5</U> above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Equipment Term Note may be prepaid by Borrower, in whole or in part, without premium or penalty as more particularly set forth
in each respective Equipment Term Note. The Equipment Loan is a non-revolving facility and any amounts borrowed and repaid or prepaid
under each respective Equipment Term Note may not be re-borrowed by Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing
with Borrower&rsquo;s fiscal year ending on November 30, 2021 and continuing on the last day of each fiscal year thereafter until
the expiration of the Equipment Line Draw Period, Borrower shall pay to Lender, on an annual basis within thirty (30) days after
each fiscal year-end, the Equipment Loan Unused Fee (as defined below). For purposes of this Agreement, the &ldquo;<U>Equipment
Loan Unused Fee</U>&rdquo; means an amount equal to the product of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">one-quarter of one percent (0.25%) (or twenty-five (25) basis points), <U>multiplied by</U></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">the daily average unused portion of the Equipment Loan, measured annually in arrears based on Lender&rsquo;s
books and records and such other information deemed relevant to Lender.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used herein, the
term &ldquo;<U>unused portion of the Equipment Loan</U>&rdquo; means that amount by which (x) the maximum principal amount of the
Equipment Loan (i.e., $1,500,000.00) exceeds (y) the aggregate principal amount of all advances previously made by Lender to Borrower
under the Equipment Loan in accordance with the terms of this Agreement, whether such excess is due to the fact that Lender has
for any reason not made advances up to the maximum principal amount of the Equipment Loan or due to any other reason. Such Equipment
Loan Unused Fee shall be computed in arrears on the daily average unused portion of the Equipment Loan during the prior fiscal
year then ending and shall be computed for the actual number of days during such measurement period. On any date which the Equipment
Loan Unused Fee is due hereunder, Lender may charge the Operating Account with the amount thereof if not already paid. The failure
of Lender to charge such account shall not relieve Borrower of its obligations to pay the Equipment Loan Unused Fee when due and
payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.2.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
consideration of Lender making the Equipment Loan available to Borrower, at the Closing, Borrower shall pay to Lender a one-time
non-refundable loan origination fee in the amount of Seven Thousand Five Hundred and 00/100 Dollars ($7,500.00), which loan origination
fee will be deemed fully earned upon the closing of the Equipment Loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All of Borrower&rsquo;s liabilities
and obligations owing to Lender, of every kind and description, whether direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising, regardless of how they arise or by what agreement or instrument they may be evidenced,
including those arising under any other agreements, instruments or documents executed in conjunction herewith, or whether evidenced
by an agreement or instrument, including obligations to perform acts and refrain from taking action, including, without limitation,
those arising under this Agreement, the Revolving Note and each Equipment Term Note are collectively referred to herein as Borrower&rsquo;s
&ldquo;<U>Liabilities</U>&rdquo;. In addition to the foregoing, the term &ldquo;<U>Liabilities</U>&rdquo; as used herein means the
indebtedness evidenced by each of the Revolving Note, each Equipment Term Note and any of the other Loan Documents (as that term
is defined in <U>Section 11.13</U> herein), including all principal and interest together with all other indebtedness and costs
and expenses for which Borrower is responsible under each of the Revolving Note, each Equipment Term Note or under any of the other
Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 2.</B></TD><TD><B>CONDITIONS TO MAKING THE LOANS</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a condition precedent to the closing of the Loans and Lender&rsquo;s obligations to fund any advance under the Revolving Loan or
the Equipment Loan, Borrower shall, on or prior to the Effective Date, deliver or cause to be delivered to Lender the following,
all in form and substance satisfactory to Lender (unless one or more such requirements has or have been waived in writing by Lender):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">The Loan Documents (as defined hereinbelow) have been duly executed by Borrower;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">A written opinion of Borrower&rsquo;s legal counsel, in form and substance satisfactory to Lender
and opining, without limitation, to the valid organization and due authority of Borrower and as to the due authority, execution,
delivery and enforceability of the Loan Documents with respect to Borrower;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify">A field exam of Borrower&rsquo;s assets and books and records shall have been completed the results
of which shall be satisfactory to Lender in its sole yet reasonable discretion;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify">Lender&rsquo;s receipt, review and approval of the most recent Form 10-K and Form 10-<BR>
Q for Borrower as filed with the U.S. Securities and Exchange Commission;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD STYLE="text-align: justify">Evidence that Borrower has satisfied the insurance requirements of Lender identified in this Agreement
and/or any of the other Loan Documents, all in form and amount satisfactory to and approved by Lender;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD STYLE="text-align: justify">Lender&rsquo;s receipt, review and approval of (i) a copy of Borrower&rsquo;s Certificate of Incorporation
duly certified by the Secretary of State for the State of Delaware, (ii) a copy of Borrower&rsquo;s Foreign Corporation Certificate
of Registration duly certified by the Secretary of State for the Commonwealth of Massachusetts; (iii) a certificate of legal existence
and good standing duly issued by the Secretary of State for the State of Delaware, (iv) a certificate of legal existence and good
standing duly issued by the Secretary of State for the Commonwealth of Massachusetts and every other jurisdiction where the nature
of Borrower&rsquo;s business is such that qualification is required, (v) authorizing resolutions executed by the board of directors
of Borrower in form and substance acceptable to Lender and Lender&rsquo;s legal counsel duly authorizing the financing transactions
evidenced by this Agreement, and (vi) a certificate of the secretary of Borrower certifying an attached copy of the Certificate
of Incorporation, the Foreign Corporation Certificate of Registration and the by-laws of Borrower (if such by-laws exists) and
a copy of the authorizing resolutions referenced in subsection (v) above;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD STYLE="text-align: justify">Evidence satisfactory to Lender that there is not pending against Borrower any petition in bankruptcy,
whether voluntary or involuntary, an assignment for the benefit of creditors or any other proceeding pursuant to any federal or
state bankruptcy insolvency laws;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD STYLE="text-align: justify">No adverse change to the financial condition of Borrower shall have occurred since the most recent
Form 10-K and Form 10-Q statements of Borrower previously delivered to Lender;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">The federal tax identification number for Borrower;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(j)</TD><TD STYLE="text-align: justify">Evidence that Borrower has established the Operating Account with Lender; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(k)</TD><TD STYLE="text-align: justify">Such other items and documentation that Lender may reasonably require.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 3.</B></TD><TD><B>WARRANTIES AND REPRESENTATIONS OF BORROWER</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
induce Lender to enter into this Agreement and to make the Loans, Borrower warrants and represents in favor of Lender (which representations
and warranties will survive the delivery of each of the Revolving Note, each Equipment Term Note and the making of any advances
under the Revolving Loan and the Equipment Loan and shall be deemed to be continuing as of each Advance until each of the Loans
have been repaid in full (other than contingent obligations not yet due and owing) and Lender no longer has any obligation to make
any advances under any of the Loans pursuant to <U>Section 1</U> herein) that, as of the Effective Date:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">Borrower is a duly organized and existing corporation under the laws of the State of Delaware and
is in good standing under the laws of the State of Delaware.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">Borrower is duly qualified to do business and in good standing as a foreign corporation in each
state or other jurisdiction where the nature of the business conducted by it or the property owned by it requires such qualification,
including, without limitation, the Commonwealth of Massachusetts, other than any qualification the lack thereof would not reasonably
be expected to result in a material adverse effect.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify">Borrower has good and marketable title to all properties and assets which it purports to own, free
and clear of all mortgages, liens, pledges, charges, security interests and encumbrances, other than liens filed in connection
with any capital leases as may be permitted hereunder, if any, and those being granted to Lender and any other of the following
liens or encumbrances which, together with the foregoing, shall constitute &ldquo;<U>Permitted Liens</U>&rdquo;: (i) liens for
taxes not yet due or which are being contested in good faith by appropriate proceedings if adequate reserves with respect thereto
are maintained on the books of Borrower, (ii) any non-consensual liens arising by operation of law, arising in the ordinary course
of business, and for amounts which are not overdue for a period of more than thirty (30) days or that are being contested in good
faith by appropriate proceedings; <U>provided</U>, <U>however</U>, that the foregoing shall not be deemed in any manner to exempt
Borrower from any obligation contained herein requiring Borrower to remove or bond over any mechanic&rsquo;s and materialmen&rsquo;s
lien filed against any Collateral and/or to exercise commercially reasonable efforts to deliver to Lender any applicable landlord
consent and waiver of lien, (iii) easements, rights of way, restrictions, minor defects or irregularities in title and other similar
liens not interfering in any material respect with the ordinary conduct of the business of Borrower and/or the perfection or enforcement
of Lender&rsquo;s lien and security interest in the Collateral granted pursuant to the terms hereof, (iv) normal and customary
rights of setoff upon deposits in favor of depository institutions and liens of a collecting bank on payment items in the course
of collection, and (v) non-exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify">As of the Effective Date, Borrower owns and holds or leases all real and personal property necessary
or incidental to the present and reasonably expected planned future conduct of its business, including, without limitation, patents,
trademarks, service marks, trade names, copyrights and licenses and other rights with respect to the foregoing, and all such tangible
assets and properties of Borrower, whether real or personal, owned or leased, have been well maintained and are in good operating
condition and repair (with the exception of normal wear and tear), and are free from defects other than such minor defects as do
not interfere with the intended use thereof in the conduct of normal operations or adversely affect the resale value thereof.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD STYLE="text-align: justify">All books and records of Borrower, including, but not limited to, minute books, by-laws and books
of account are accurate and reflect all matters and transactions which should currently be reflected therein.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD STYLE="text-align: justify">The general business of Borrower is the manufacturing and sale of non-lethal weapons and munitions
and other services and products related thereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD STYLE="text-align: justify">As of the Effective Date, other than the equity interests of Byrna South Africa, a South African
company (formerly known as Roboro Industries Ptd Ltd), Borrower does not have any subsidiaries and/or investments in the stock
or securities of any other corporation, firm, trust or other entity and has not otherwise invested in the stock, common or preferred,
or invested in any other ownership interest of any corporation or other entity, other than Cash Equivalents. &ldquo;Cash Equivalents&rdquo;
means (a) any evidence of debt, maturing not more than one year from date of acquisition, issued or guaranteed by the United States
Government or any agency thereof, (b) commercial paper, maturing not more than 270 days from the date of issue, or corporate demand
notes, in each case (unless issued by Lender or its holding company) rated at least A-l by Standard &amp; Poor&rsquo;s Ratings
Services, a division of The McGraw-Hill Companies, Inc. or P-l by Moody&rsquo;s Investors Service, Inc., (c) any certificate of
deposit, time deposit or banker&rsquo;s acceptance, maturing not more than 180 days after such time, or any overnight Federal Funds
transaction that is issued or sold by Lender or its holding company (or by a commercial banking institution that is a member of
the Federal Reserve System and has a combined capital and surplus and undivided profits of not less than $500,000,000), (d) any
repurchase agreement entered into with Lender (or commercial banking institution of the nature referred to in clause (c)) which
(i) is secured by a fully perfected security interest in any obligation of the type described in any of clauses (a) through (c)
above and (ii) has a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase
obligation of Lender (or other commercial banking institution) thereunder and (e) money market accounts or mutual funds which invest
exclusively in assets satisfying the foregoing requirements, and (f) other short term liquid investments approved in writing by
Lender.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD STYLE="text-align: justify">There are no actions, suits, investigations or proceedings pending, or to the knowledge of Borrower
threatened in writing, against Borrower or any of Borrower&rsquo;s properties or assets in any court, before any governmental authority,
arbitration board, or any other tribunal which, singly or in the aggregate, if decided adversely against Borrower, would materially
and adversely affect the business, properties or financial condition of Borrower. Borrower is not, nor by execution and delivery
of this Agreement and the performance of its obligations hereunder (with or without the passage of time) will Borrower be, in default
with respect to any order of any court, governmental authority, arbitration board or other tribunal.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">Borrower has furnished Lender with current financial statements and certain other financial information
as requested by Lender. Such financial statements, including in each case any explanatory notes thereto are fairly presented, have
been prepared in accordance with generally accepted principles of accounting consistently maintained and applied throughout the
periods covered thereby (except as may be noted therein), and fairly present the financial condition of Borrower on the respective
dates thereof.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(j)</TD><TD STYLE="text-align: justify">Except to the extent reflected or reserved against in the financial statements referred to in <U>Section
3.1(i)</U> above, Borrower, as of the date of said financial statements, does not have any liabilities of any nature, whether accrued,
absolute, contingent or otherwise, including, without limitation, tax liabilities, due or to become due, or arising out of transactions
entered into or any state of facts existing prior thereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(k)</TD><TD STYLE="text-align: justify">Since the date of the financial statements referred to in <U>Section 3.1(i)</U> above, there has
not been:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting a material portion of the assets or business of Borrower; or</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any materially adverse:</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">controversy with any labor organization or employees;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">claim or controversy involving any federal, state or local governmental agencies; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.5in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">other event or condition materially affecting the business or properties of Borrower.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(l)</TD><TD STYLE="text-align: justify">Borrower has filed all federal and state income tax returns, excise tax returns, and all other
tax returns of every kind and nature which are required to be filed by Borrower as of the Effective Date and has paid all taxes
shown to be due on said returns.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(m)</TD><TD STYLE="text-align: justify">Borrower keeps all records concerning its Accounts and has its chief executive office and principal
place of business at the address set forth in the introductory paragraph of this Agreement. Except as set forth on <B><U>Schedule
1</U></B> annexed hereto, as of the Effective Date, Borrower does not have any other addresses at which Borrower has an office,
conducts business or at which any of Borrower&rsquo;s properties or assets is located.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(n)</TD><TD STYLE="text-align: justify">The execution and delivery of this Agreement, the borrowing by Borrower as herein provided, the
execution and delivery by Borrower of all instruments, agreements and documents of every kind and nature pursuant hereto and the
performance by Borrower of all of its obligations to Lender hereunder have been duly authorized by the board of directors of Borrower
and, to the extent required by law or otherwise, by Borrower&rsquo;s shareholders, as applicable, and this Agreement and all instruments,
agreements and documents executed pursuant hereto are valid and binding obligations of Borrower enforceable in accordance with
their terms except to the extent such enforceability may be limited by laws of general application affecting the rights of creditors
and by general principles of equity.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(o)</TD><TD STYLE="text-align: justify">There is no provision in the Certificate of Incorporation or the by-laws of Borrower, or any material
indenture, contract or agreement to which Borrower is a party or by which Borrower is bound, which prohibits the execution and
delivery of this Agreement or the performance by Borrower of its obligations hereunder and Borrower&rsquo;s performance of its obligations
under this Agreement will not constitute or result in the occurrence of an event of default under any such indenture, contract
or agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(p)</TD><TD STYLE="text-align: justify">No event has occurred, and no condition exists, which, upon the execution and delivery of this
Agreement would constitute a default or an Event of Default hereunder. Neither the nature of Borrower or any of its businesses
or assets, nor any relationships, agreements or contracts between Borrower and any other person, nor any circumstances in connection
with the execution or delivery of this Agreement, is such as to require a consent, approval, or authorization of or filing, registration,
or qualification with, any governmental authority on the part of Borrower as a condition of the execution and delivery of this
Agreement or any other instrument, agreement or document contemplated hereby, or the performance by Borrower of its obligations
hereunder or thereunder.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(q)</TD><TD STYLE="text-align: justify">Borrower has obtained and maintained all licenses, certificates, permits, franchises, rights, code
approvals and private product approvals, whether federal, state, local or foreign, which are necessary or reasonably required for
the lawful operation of Borrower&rsquo;s business as presently conducted, and Borrower is not in material violation of any valid
rights of others with respect to any of the foregoing.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(r)</TD><TD STYLE="text-align: justify">A true and complete list of all of the registered (with either United States Patent &amp; Trademark
Office or United States Copyright Office) trademarks, tradenames, service marks, patents and copyrights (including any registrations
of or pending applications for any of the foregoing) owned or used by Borrower in the conduct of Borrower&rsquo;s business as of
the Effective Date is disclosed on <B><U>Schedule 2</U></B> annexed hereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(s)</TD><TD STYLE="text-align: justify">No part of the proceeds of any of the Loans will be used, in whole or in part, for the purpose
of (a) acquiring all or substantially all of the assets or stock of any person, entity or corporation, or (b) purchasing or carrying
any &ldquo;margin stock&rdquo; as such term is defined in Regulation U of the Board of Governors of the Federal Reserve System.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(t)</TD><TD STYLE="text-align: justify">Borrower is in compliance with all federal, state, county and municipal laws, ordinances, rules
or regulations applicable to it, its property or the conduct of its business, including, without limitation, those pertaining to
or concerning the employment of labor, employee benefits, public health, safety and the environment.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(u)</TD><TD STYLE="text-align: justify">All capital stock or other equity interests of Borrower (i) are validly issued, fully paid and
non-assessable and (ii) as of the Effective Date, are free of preemptive rights.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(v)</TD><TD STYLE="text-align: justify">There is no other indebtedness for borrowed money, subordinated or otherwise, owed by Borrower
to any person except as set forth on <B><U>Schedule 3</U></B> annexed hereto.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(w)</TD><TD STYLE="text-align: justify">As of the Effective Date, Borrower has delivered to Lender true, accurate and complete copies of
all policies of fire, liability, workers&rsquo; compensation, builders risk, title and other forms of insurance owned, held by
or applicable to Borrower (or its assets or business). All such policies are in full force and effect, all premiums with respect
thereto covering all periods up to and including the Effective Date have been paid, and no notice of cancellation or termination
has been received with respect to any such policy. Such insurance policies provide types and amounts of insurance customarily obtained
by businesses similar to the business of Borrower.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(x)</TD><TD STYLE="text-align: justify">As of the Effective Date and immediately after giving effect to the transactions contemplated herein,
Borrower is, and will be after the transactions contemplated by and under this Agreement, solvent. For purposes of this agreement
&ldquo;<U>solvent</U>&rdquo; means (a) the fair value of the properties and assets of Borrower exceeds its total liabilities (including
probable liability in respect of contingent liabilities), (b) the present fair saleable value of the assets of Borrower is not
less than the amount that will be required to pay its probable liability on its debts as they become absolute and matured, and
(c) Borrower does not intend to, and does not believe that it will, incur debts or liabilities beyond its ability to pay as such
debts and liabilities mature.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(y)</TD><TD STYLE="text-align: justify">Borrower is in compliance in all material respects with all applicable provisions of the Employee
Retirement Income Security Act of 1974, as amended or recodified from time to time (&ldquo;<U>ERISA</U>&rdquo;). Borrower has not
violated any provision of any employee pension benefit plan (as defined in ERISA) maintained or contributed to by Borrower (each,
a &ldquo;<U>Plan</U>&rdquo;). No Reportable Event (as defined in ERISA) has occurred and is continuing with respect to any Plan initiated
by Borrower. Borrower has met its minimum funding requirements under ERISA with respect to each Plan, and each Plan will be able
to fulfill its benefit obligations as they come due in accordance with the Plan documents and under generally accepted accounting
principles. </TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 4.</B></TD><TD><B>INTENTIONALLY OMITTED.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 5</B>.</TD><TD><B>AFFIRMATIVE COVENANTS OF BORROWER</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">So long as this Agreement
is in effect, Borrower hereby covenants and agrees in favor of Lender as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will duly and punctually pay all interest, principal and fees becoming due to Lender under each of the Loans and will duly and
punctually perform all obligations on its part to be done or performed under this Agreement, or pursuant to any instrument, document
or agreement executed pursuant hereto or in connection herewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will, at all times, keep proper books of account in which full, true and correct entries will be made of its transactions in accordance
with generally accepted accounting principles consistently applied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will, upon reasonable notice, at all reasonable times, make its assets, books and records available, in its offices, for inspection,
examination and copying by Lender and Lender&rsquo;s representatives and will, at all reasonable times, permit inspection of its properties
by Lender and Lender&rsquo;s representatives; <U>provided</U>, <U>however</U>, that absent the existence of an Event of Default hereunder,
Lender shall not conduct a field exam of Borrower&rsquo;s assets and books and records more often than once per each consecutive
twelve (12) month period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall furnish or cause to be furnished to Lender from time to time, the following tax returns, financial statements, reports and
other information, all in form, manner of presentation and substance acceptable to Lender:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">5.4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Borrower&rsquo;s
Quarterly Financial Statements</U>. On a quarterly basis, commencing with the fiscal quarter ending on February 28, 2021, within
thirty (30) days following Borrower&rsquo;s filing with the U.S. Securities and Exchange Commission (the &ldquo;<U>SEC</U>&rdquo;),
a full, complete and accurate copy of Borrower&rsquo;s Form 10-Q in the same form, and with all accompanying attachments and schedules,
as was filed by Borrower with the SEC. Notwithstanding the foregoing, if at any time while any principal balance under any of the
Loans remains outstanding and/or Lender continues to have any obligation to make any advances under any of the Loans pursuant to
<U>Section 1</U> Borrower ceases to be a publicly traded entity, Borrower shall thereafter, on a quarterly basis, within thirty
(30) days from the end of each fiscal quarter, furnish to Lender current management prepared quarterly financial statements for
Borrower, which shall include a balance sheet and income and expense statement, reflecting the financial condition of Borrower
as of the end of each such fiscal quarter and the results of its operations during such fiscal quarter. Such statements and reports
shall also contain comparative statements for the prior fiscal quarter. Such statements and reports shall be prepared in accordance
with generally accepted accounting principles, or other recognized method of accounting acceptable to Lender, consistently applied,
in form and manner of presentation acceptable to Lender, and certified to by Borrower as being true, accurate and complete, such
statements and reports to include and to be supplemented by such detail and supporting data and schedules as Lender may from time
to time reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">5.4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Borrower&rsquo;s
Annual Financial Statements</U>. On an annual basis, commencing with Borrower&rsquo;s fiscal year ending on November 30, 2021,
within thirty (30) days following Borrower&rsquo;s filing with the SEC, a full, complete and accurate copy of Borrower&rsquo;s
Form 10-K in the same form, and with all accompanying attachments and schedules, as was filed by Borrower with the SEC. Notwithstanding
the foregoing, if at any time while any principal balance under any of the Loans remains outstanding and/or Lender continues to
have any obligation to make any advances under any of the Loans pursuant to <U>Section 1</U> Borrower ceases to be a publicly traded
entity, Borrower shall thereafter, on an annual basis, within one hundred twenty (120) days after the end of each fiscal year,
furnish to Lender current annual financial statements for Borrower, which shall include a balance sheet and income and expense
statement, reflecting the financial condition of Borrower as of the end of each such fiscal year and the results of its operations
during such fiscal year. Such statements and reports shall also contain comparative statements for the prior fiscal year. Such
statements and reports shall be prepared in accordance with generally accepted accounting principles, or other recognized method
of accounting acceptable to Lender, consistently applied, in form and manner of presentation acceptable to Lender, by an independent
certified public accountant acceptable to lender on a reviewed basis by the accountant together with a review report issued by
the accountant and signed by the president or treasurer (or other duly authorized officer) of Borrower, representing that neither
the accounting firm nor the president or treasurer (or other duly authorized officer) of Borrower is aware of any material modifications
necessary to the financial statements for them to be in conformity with generally accepted accounting principles consistently applied,
such statements and reports to include and to be supplemented by such detail and supporting data and schedules as Lender may from
time to time reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">5.4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Copies
of Borrower&rsquo;s Filed Form 8-K</U>. During at any time while any principal balance under any of the Loans remains outstanding
and/or Lender continues to have any obligation to make any advances under any of the Loans pursuant to <U>Section 1</U>, Borrower
shall furnish to Lender, within thirty (30) days following Borrower&rsquo;s filing with the SEC, a full, complete and accurate
copy of any Form 8-K filed by Borrower with the SEC, in the same form, and with all accompanying attachments and schedules, as
was filed by Borrower with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">5.4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Projections</U>. On an annual basis, within sixty (60) days after the end of each fiscal year, a current management prepared and
reasonably detailed projection for Borrower&rsquo;s business operations for the next twelve (12) months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 5.4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenant Compliance Certificate</U>. On a quarterly basis, contemporaneously with Borrower&rsquo;s delivery to Lender of a copy of its filed Form 10-Q or Form 10-K, as applicable, pursuant to <U>Sections 5.4.1</U> and <U>5.4.2</U>, commencing with the fiscal quarter ending on November 30, 2021, a Covenant Compliance Certificate signed by the president or treasurer (or other duly authorized officer) of Borrower in the form attached hereto as <B><U>Exhibit B</U></B> and made a part hereof, certifying that such officer has reviewed the provisions of this Agreement (including, without limitation, the financial covenants contained in this Agreement, to the extent they are being tested at that time) and stating Borrower has not been and is not in default as to any of the covenants and agreements of Borrower contained in this Agreement as of the last date of such period, or in the event of any such default, setting forth the details thereof. The calculations contained in each Covenant Compliance Certificate delivered to Lender shall be based upon and derived from the figures contained in Borrower&rsquo;s filed Form 10-Q or Form 10-K, as applicable.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 5.4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Borrowing Base Certificate</U>. Borrower shall furnish to Lender, in connection with each request for an advance under the Revolving Loan, as well as on a bi-monthly basis on the first (1<SUP>st</SUP>) and fifteenth (15<SUP>th</SUP>) day of each calendar month, a Borrowing Base Certificate in the form attached hereto as <B><U>Exhibit B</U></B> and made a part hereof, together with an accounts payable aging report, an accounts receivable aging report, an inventory designation and all applicable monthly credit card and/or merchant service statements, including, without limitation, each monthly card processing statement delivered to Borrower by Fiserv, Inc., each such certificate, aging, designation and statement to be in such form and certified by such officers of Borrower as Lender may prescribe from time to time.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">5.4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice
of Management Change</U>.&nbsp;Borrower shall provide prompt written notice to Lender of any death, incapacity or departure of executive
management of Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 5.4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other Data and Information Requested</U>. At such other times as Lender may reasonably require, such other financial statements, data or information as Lender may reasonably request with respect to Borrower including, but not limited to, aged receivables, aged payables, leases, budgets, forecasts, reserves and cash flow projections.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will maintain its corporate existence in good standing, comply in all material respects with all laws and regulations of the United
States, of any state or states thereof, of any political subdivision thereof and of any governmental authority which may be applicable
to Borrower or to Borrower&rsquo;s business, other than those the lack thereof would not reasonably be expected to result in a
material adverse effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will pay all real and personal property taxes, assessments and charges and all franchise, income, unemployment, old age benefit,
withholding, sales and other taxes assessed against it or payable by it at such times and in such manner to prevent any penalty
from accruing or any lien or charge from attaching to its properties. The provisions of this <U>Section 5.6</U>, however, shall
not preclude Borrower from contesting in good faith and diligently prosecuting any such tax or imposition, <U>provided</U>, <U>however</U>,
that Borrower shall establish adequate reserves in respect of such tax or imposition in the event such contest is resolved against
Borrower. Borrower shall not be in default under this Agreement by reason of the existence of a lien for taxes not then due and
payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will put and maintain its properties and assets in good repair, working condition and order (ordinary wear and tear excepted) and,
from time to time, make all necessary or reasonably proper repairs, renewals and replacements thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will: (a) keep its properties and assets insured against fire and other hazards (so called &ldquo;All Risk&rdquo; coverage) in
amounts and with companies reasonably satisfactory to Lender to the same extent and covering such risks as is customary in the
same or a similar business, but in no event in an amount less than the full replacement value thereof, which policies shall name
Lender as lender&rsquo;s loss payable, as its interest may appear, (b) maintain public liability coverage against claims for personal
injuries or death in such coverage amounts as required by Lender, and (c) maintain all worker&rsquo;s compensation, employment
or similar insurance as may be required by applicable law. The policies referenced in the aforesaid subsections (b) and (c) shall
name Lender as an additional insured thereunder. All policies of insurance required hereunder shall provide for a minimum of thirty
(30) days&rsquo; (ten (10) days for non-payment) prior written notice to Lender before cancellation. Borrower further agrees to
deliver copies of certificates of insurance for all of the aforesaid insurance policies to Lender, and, upon request, to provide
Lender with copies of the insurance policies. In the event of any loss or damage exceeding deductible amounts to any of Borrower&rsquo;s
assets, including any Collateral securing the Liabilities of Borrower owing to Lender, Borrower shall give prompt written notice
to Lender and to its insurers of such loss or damage and shall promptly file proofs of loss with said insurers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will pay or reimburse Lender, on demand, for all reasonable and documented out of pocket expenses (including, without limitation,
reasonable and documented outside counsel fees) incurred or paid by Lender in connection with the preparation, amendment, interpretation,
extension or negotiation of this Agreement, and any instrument, agreement or document to be delivered pursuant hereto; the enforcement
by Lender of its rights as against Borrower; the administration, supervision, protection or realization on any Collateral (as defined
below) held by Lender as security for any Liabilities of Borrower, and in the defense of any action against Lender with respect
to its rights or liabilities hereunder or thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will promptly provide written notice to Lender with respect to any indebtedness for borrowed money which is in a principal amount
equal to, or in excess of, One Hundred Thousand and 00/100 Dollars ($100,000.00) and which is owed to any bank, lending institution,
person or entity other than Lender, which written notice will contain the salient terms of such indebtedness (e.g., the principal
amount borrowed, the maturity date and the regularly scheduled payment terms).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall pay or cause to be paid when due all amounts necessary to fund in accordance with their terms of Borrower&rsquo;s deferred
compensation plans whether now in existence or hereafter created, and Borrower will not withdraw from participation in, permit
the termination or partial termination of, or permit the occurrence of any other event with respect to any deferred compensation
plan maintained for the benefit of its employees under circumstances that could result in liability to the Pension Benefit Guaranty
Corporation, or any of its successors or assigns, or to the entity which provides funds for such deferred compensation plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
any principal balance under any of the Loans remains outstanding and/or Lender continues to have any obligation to make any advances
under any of the Loans pursuant to <U>Section 1</U>, Borrower shall maintain its primary deposit and operating account at Lender
(collectively, and each singly as the context may require, the &ldquo;<U>Operating Account</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any attachment or mechanic&rsquo;s, laborer&rsquo;s, materialman&rsquo;s or similar statutory lien or any notice thereof shall be filed against any
Collateral, Borrower shall discharge or fully bond over the same within forty-five (45) days of such filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall promptly notify Lender in the event Borrower enters into any new real property lease agreement(s) and shall deliver to Lender
a fully executed copy of such new lease agreement(s), and upon the request of Lender, Borrower shall use commercially reasonable
efforts to deliver to Lender a duly executed landlord&rsquo;s consent and waiver of lien, in form and substance reasonably acceptable
to Lender, pursuant to the terms of which, <I>inter alia</I>, any lien or security interest in favor of the applicable landlord
in and to any Collateral (as defined hereinbelow) located or stored at such leased location is fully subordinated to Lender&rsquo;s
lien and security interest in and to such Collateral. Notwithstanding the foregoing, if despite Borrower&rsquo;s commercially reasonable
efforts, Borrower is unable to procure and deliver to Lender the requested landlord&rsquo;s consent and waiver of lien, such failure
shall not constitute an Event of Default hereunder, <U>provided</U>, <U>however</U>, that any Inventory of Borrower located or
stored at such new leased location shall thereafter be excluded from Eligible Inventory for purposes of calculating Borrower&rsquo;s
Borrowing Base until such time that Borrower delivers the requested landlord&rsquo;s consent and waiver of lien; <U>provided further</U>,
<U>however</U>, that the foregoing exclusion from the calculation of the Borrowing Base of any Eligible Inventory located or stored
at a leased location for which Lender has not yet received a duly executed landlord&rsquo;s consent and waiver of lien shall not
be applicable for the first thirty (30) days following the Effective Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 6.</B></TD><TD><B>NEGATIVE COVENANTS OF BORROWER</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For so long as this
Agreement remains in effect, Borrower will not:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issue
evidences of indebtedness or create, assume, become contingently liable for, or suffer to exist any indebtedness in addition to
the Liabilities of Borrower owing to Lender, except for (a) any indebtedness owed to Borrower&rsquo;s shareholders or officers
which is subordinated to the Liabilities of Borrower owing to Lender pursuant to a written subordination agreement in form and
substance satisfactory to Lender its sole discretion, (b) any unsecured trade payables incurred in the ordinary of Borrower&rsquo;s
business, (c) contingent liabilities arising with respect to customary indemnification obligations in favor of officers, directors,
managers, employees and agents set forth in Borrower&rsquo;s governing documents and/or typical and customary indemnification obligations
set forth in third party contracts entered into by Borrower in the ordinary course of business, (d) indebtedness in respect of
capital leases, (e) other unsecured debt in an aggregate amount outstanding at any time not to exceed $100,000, and (f) purchase
money financing for which Borrower has received Lender&rsquo;s prior written consent, provided, however, that Lender&rsquo;s prior
written consent shall not be required for any purchase money financing in an original principal sum equal to or less than Five
Hundred Thousand and 00/100 Dollars ($500,000.00) (each a &ldquo;<U>Permitted Purchase Money Financing</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intentionally
omitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
any time when an Event of Default exists (or if the making or payment of such distribution or dividend would immediately result
in an Event of Default hereunder), make or pay any distribution or dividend, either in cash or in kind, on any class of its capital
stock, or redeem, purchase or otherwise acquire, directly or indirectly, any of its capital stock (other than in connection with
an employee departure in accordance with the terms of any employee or management equity incentive or similar plan).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any loans or advances to any individual, firm or corporation without the prior written consent of Lender, which consent shall not
be unreasonably withheld, conditioned or delayed, including, without limitation, its shareholders, officers and employees; <U>provided</U>,
<U>however</U>, that Borrower may make (a) advances to its employees, including its officers, with respect to de minimis expenses
incurred by such employees, which expenses are reimbursable by Borrower and directly related to the conduct of Borrower&rsquo;s
business and (b) intercompany loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convert
into any other type of entity, or change its tax classification status, without the prior written consent of Lender, which consent
shall not be unreasonably withheld, conditioned or delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Invest
in or purchase any stock or securities of any individual, firm or corporation not otherwise made on or prior to the Effective Date;
<U>provided</U>, <U>however</U>, Borrower may invest in (a) direct obligations of the United States of America having a stated
maturity of one (1) year or less from the date of investment or certificates of deposit (or similar investments) issued by Lender,
(b) cash, (c) any other Cash Equivalent and (d) any investment not prohibited by <U>Section 6.8</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intentionally
omitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merge
or consolidate or be merged or consolidated with or into any other corporation or entity that would not result in Borrower surviving
such merger or consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sell
or dispose of any of its assets or its Inventory, except for (a) any sale undertaken in the ordinary course of Borrower&rsquo;s
business, (b) sales of other equipment or property to the extent Borrower replaces such equipment or property with substantially
the same functions provided by such replaced equipment or property within 60 days and (c) the licensing or sublicensing on a non-exclusive
basis and in the ordinary course of business of intellectual property rights or other non-exclusive licenses or sublicenses for
the use of property of Borrower in the ordinary course of business. Furthermore, Borrower may dispose of (or trade in) equipment
and machinery which is obsolete, worn out or no longer required for the conduct of Borrower&rsquo;s business so long as Borrower
receives therefor a sum (or credit) substantially equal to such equipment&rsquo;s fair market value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grant
or suffer to exist any mortgage, pledge, title retention agreement, security interest, lien, charge or encumbrance with respect
to any of its assets, tangible or intangible, whether now owned or hereafter acquired, or subject any of such assets to the prior
payment of any indebtedness, or transfer in any manner any of such assets with the intent or purpose, directly or indirectly, of
subjecting such assets to the payment of indebtedness, in each case other than Permitted Liens.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assume,
guarantee, endorse or otherwise become liable upon the obligations of any person, entity or corporation except by the endorsement
of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business, other than as permitted
by Section 6.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter
into, or be a party to, any transaction with any related (directly or indirectly) subsidiary or affiliate of Borrower (including,
without limitation, transactions involving the purchase, sale or exchange of property, the rendering of services or the sale of
stock or other equity interests) except in the ordinary course of business and upon fair and reasonable terms no less favorable
than would be obtained in a comparable arm&rsquo;s-length transaction with a person other than a related subsidiary or an affiliate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase,
acquire, redeem or retire, or make any commitment to purchase, acquire, redeem or retire any capital stock or other equity interest
of Borrower, whether now or hereafter outstanding, without the prior written consent of Lender, which consent shall not be unreasonably
withheld, conditioned or delayed, other than in connection with an employee or manager departure from Borrower in connection with
an equity incentive or other similar plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change
its name or conduct its business under any trade name or style other than as hereinabove set forth or change its chief executive
office, place of business or the present location of its assets or records relating thereto from those addresses set forth herein
without the consent of the Lender, which consent shall not be unreasonably withheld, conditioned or delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change
its state of organization or entity type without notifying Lender of such change, along with the new state of organization and
organizational number (if any) or change in entity within three (3) days of such change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Engage
in any business other than the business in which it is currently engaged, or a business reasonably allied thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Minimum
Fixed Charge Coverage Ratio and Maximum Total Leverage Ratio</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.18.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certain
Definitions</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Borrower&rsquo;s
Debt Service</U>&rdquo; means, as of any Calculation Date, the aggregate combined total of all scheduled principal and interest
payments due and payable by Borrower during the applicable Calculation Period under any and all loans and indebtedness for borrowed
money of Borrower (whether owing to Lender or another creditor of Borrower), including, without limitation, the Revolving Loan,
the Equipment Loan and each Equipment Term Note and any capital lease agreements to which Borrower is a party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Borrower&rsquo;s
EBITDA</U>&rdquo; means the EBITDA of Borrower, for any Calculation Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Calculation
Date</U>&rdquo; means each November 30<SUP>th</SUP>, February 28<SUP>th</SUP> (or February 29<SUP>th</SUP>), May 31<SUP>st</SUP>
and August 31<SUP>st</SUP> of each calendar year while any principal balance under any of the Loans remains outstanding and/or
Lender continues to have any obligation to make any advances under any of the Loans pursuant to <U>Section 1</U>, commencing with
November 30, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Calculation
Period</U>&rdquo; means the immediately trailing twelve (12) month period ending on each Calculation Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>EBITDA</U>&rdquo;
means income from continuing operations before the payment of interest and taxes, <U>plus</U> depreciation and amortization, determined
in accordance with generally accepted accounting principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vi) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Fixed
Charge Coverage Ratio</U>&rdquo; means, for each applicable Calculation Period the ratio of: (A) the sum of: (i) Borrower&rsquo;s
EBITDA, <U>less</U> (ii) any unfinanced capital expenditures of Borrower, <U>less</U> (iii) any cash taxes actually paid by Borrower,
all determined in accordance with generally accepted accounting principles, divided by (B) Borrower&rsquo;s Debt Service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Total
Leverage Ratio</U>&rdquo; means, for each applicable Calculation Period, the total aggregate funded and outstanding indebtedness
for borrowed money of Borrower, including, without limitation, all funded and outstanding indebtedness under the Loans, as of the
last day of such applicable Calculation Period, <U>divided</U> by Borrower&rsquo;s EBITDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">6.18.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Minimum
Fixed Charge Coverage Ratio</U>. As of the last day of each Calculation Period, commencing with the first Calculation Date occurring
on November 30, 2021, Borrower&rsquo;s Fixed Charge Coverage Ratio as of each Calculation Date shall be not less than 1.20x, to
be evidenced by the quarterly financial statements (e.g., Borrower&rsquo;s Form 10-Q) delivered to Lender pursuant to <U>Section
5.4</U> herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">6.18.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maximum
Total Leverage Ratio</U>. As of the last day of each Calculation Period, commencing with the first Calculation Date occurring on
November 30, 2021, Borrower&rsquo;s Total Leverage Ratio as of each Calculation Date shall not be greater than 3.50x, to be evidenced
by the quarterly financial statements delivered to Lender pursuant to <U>Section 5.4</U> herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 7.</B></TD><TD><B>SECURITY INTEREST; UCC-1 FINANCING STATEMENTS</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
consideration of the making of the Loans by Lender, Borrower hereby grants to Lender, and Lender shall have and hold as security
for the repayment of each of the Loans and all other Liabilities of Borrower owing to Lender, a continuing security interest in
and to, and Borrower collaterally assigns to Lender, all of Borrower&rsquo;s property and assets, whether real or personal, whether
granted directly or indirectly, whether granted now or in the future, wherever located and whether now owned or hereafter acquired
(collectively, the &ldquo;<U>Collateral</U>&rdquo;), including, without limitation, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(a)</TD><TD STYLE="text-align: justify">all Inventory and goods, as defined in Article 9 of
the UCC, including, without limitation, merchandise, raw materials and work in process, finished goods, and other tangible personal
property now owned or hereafter acquired and held for sale or lease or furnished or to be furnished under contracts of service
or used or consumed in Borrower&rsquo;s business; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(b)</TD><TD STYLE="text-align: justify">all Accounts, instruments (including promissory notes),
documents, chattel paper (whether tangible or electronic), contracts, contract rights, notes, bills, drafts, acceptances, instruments,
documents and general intangibles (including payment intangibles), as each is defined in Article 9 of the UCC, including, without
limitation, work-in-process/unbilled accounts, registered and unregistered tradenames, copyrights, customer lists, goodwill, computer
programs, computer records, computer software, computer data, trade secrets, trademarks, patents, ledger sheets, files, records,
data processing records relating to any accounts and all tax refunds of every kind and nature to which Borrower is now or hereafter
may become entitled to, no matter how arising, deposit accounts (whether maintained with Lender or another bank, trust company,
investment firm or fund or any similar institution or organization), letter of credit rights (whether or not the letter of credit
is evidenced by a writing), securities, security entitlements, security accounts, investment property, supporting obligations,
choses in action, commercial tort claims, and all other debts, obligations and liabilities in whatever form, owing to Borrower
from any person, firm or corporation or any other legal entity, whether now existing or hereafter arising, now or hereafter received
by or belonging or owing to Borrower, for goods sold by it or for services rendered by it, or however otherwise the same may have
been established or created, all guarantees and collateral therefor, all right, title and interest of Borrower in the merchandise
or services which gave rise thereto, including the rights of reclamation and stoppage in transit, all rights to replevy goods,
and all rights of an unpaid seller of merchandise or services (collectively hereinafter referred to as the &ldquo;<U>Receivables</U>&rdquo;);
and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(c)</TD><TD STYLE="text-align: justify">all motor vehicles, machinery, equipment (including,
without limitation, any machinery and equipment purchased with the proceeds of the Equipment Loan), fixtures, furniture, furnishings,
personal property and other goods, as defined in Article 9 of the UCC, whether now owned or hereafter acquired by Borrower and
wherever located, all replacements and substitutions therefor or accessions thereto (collectively hereinafter referred to as the
&ldquo;<U>Equipment</U>&rdquo;); and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify">all books and records relating to the conduct of business of Borrower; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD STYLE="text-align: justify">all investment property of Borrower, including, without limitation, all financial assets, all certificated
and uncertificated securities, security accounts, commodity accounts and commodity contracts; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD STYLE="text-align: justify">all proceeds and products of all of the foregoing in any form, including, without limitation, all
proceeds of credit, fire or other insurance, and also including, without limitation, rents and profits resulting from the temporary
use of any of the foregoing.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the
foregoing, the term &ldquo;<U>Collateral</U>&rdquo; shall not include (a) any permit, license or agreement (provided, however, that
the term &ldquo;<U>Collateral</U>&rdquo; shall include all Eligible Accounts Receivable) entered into by Borrower (i) to the extent
that any such permit, license or agreement or any requirement of law applicable thereto prohibits the creation of a lien thereon,
but only to the extent, and for as long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective
by the UCC or any other requirement of law, (ii) which would be abandoned, invalidated or unenforceable as a result of the creation
of a lien in favor of Lender or (iii) to the extent that the creation of a lien in favor of Lender would result in a breach or
termination pursuant to the terms of or a default under any such permit, license or agreement (other than to the extent that any
such term would be rendered ineffective pursuant to the Sections 9-406, 9-407, 9-408 or 9-409 of the UCC or any other applicable
law (including the Bankruptcy Code) or principles of equity), (b) property owned by Borrower that is subject to a purchase money
lien created in connection with any Permitted Purchase Money Financing or a capital lease if the agreement pursuant to which such
lien is granted (or in the document providing for such capital lease) prohibits or requires the consent of any Person (other than
Borrower) which has not been obtained as a condition to the creation of any other lien on such property, (c) any &ldquo;intent
to use&rdquo; trademark applications for which a statement of use has not been filed (but only until such statement is filed),
(d) Exempt Accounts, and (e) equity interests of any foreign subsidiary and the equity interests of any domestic subsidiary the
sole assets of which are the equity interests of a foreign subsidiary. &ldquo;<U>Exempt Accounts</U>&rdquo; shall mean, collectively,
payroll accounts, withholding accounts, employee benefit accounts, trust accounts and escrow accounts. Notwithstanding the foregoing,
upon Borrower&rsquo;s request, Lender hereby agrees not to perfect any security interest granted to Lender herein in and to any
intellectual property of Borrower identified on <B><U>Schedule 2</U></B> attached hereto and made a part hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Borrower will execute
and deliver all agreements, instruments and documents reasonably required by Lender to create and perfect the security interest
granted pursuant to this <U>Section 7.2</U>. In addition to the foregoing, in the event that any proceeds of the Loans are used
by Borrower towards the purchase of a new or used motor vehicle, or any other asset which is evidenced by a certificate of title,
Borrower shall, at Lender&rsquo;s reasonable request, within five (5) days of Borrower&rsquo;s receipt of its certificate of title
pertaining to such motor vehicle or other asset, deliver such original certificate of title to Lender and promptly after such time
undertake and complete all reasonably necessary actions requested by Lender in order to perfect Lender&rsquo;s security interest
in and to such motor vehicle or other asset.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Borrower agrees to
label all chattel paper serving as Collateral under this Agreement with the words, &ldquo;<I>Subject to the security interest of
Needham Bank</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If Borrower shall at
any time acquire a commercial tort claim, as defined in the UCC, Borrower shall promptly notify Lender in a writing signed by Borrower
of the brief details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance satisfactory to Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will, at its expense, furnish to Lender, upon Lender&rsquo;s reasonable request, such further information, will execute and deliver
to Lender such financing statements and other agreements, instruments or documents, and will do all such acts as Lender may, at
any time or from time to time, reasonably request, or as may be necessary or appropriate to establish and maintain a valid and
enforceable first priority security interest (subject to Permitted Liens) in the Collateral in favor of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
hereby irrevocably authorizes Lender at any time and from time to time to file initial UCC-1 financing statements, continuation
statements and amendments thereto in such locations and offices as Lender shall deem necessary or appropriate to perfect the security
interests in the Collateral granted herein, which such initial UCC-1 financing statements may (a) indicate the Collateral (i) as
all assets of Borrower or words of similar effect regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article 9 of the UCC, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain
any other information required by Part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing
statement or amendment. Without limiting the generality of the foregoing, such other information may include, among other things,
(i) if Borrower is an organization, the type of organization and any organization identification number issued to Borrower, and
(ii) in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber
to be cut, a sufficient description of real property to which the Collateral relates. Borrower agrees to furnish such information
to Lender promptly upon request. Borrower also ratifies its authorization for Lender to have filed any like initial financing statements
or amendments thereto if filed prior to the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
and all deposits or other sums of Borrower which are at any time in the possession of Lender and/or credited by or due from Lender
to Borrower shall at all times constitute additional security for all Liabilities of Borrower owing to Lender and Borrower hereby
grants in favor of Lender a continuing security interest in and to such deposits and other sums, which deposits or other sums may
be set-off against any such Liabilities at any time after the occurrence and continuance of an Event of Default, whether or not
other security or Collateral held by Lender is deemed to be adequate. Any and all instruments, documents, policies and certificates
of insurance, securities, goods, Inventory, Receivables, Equipment, choses in action, chattel paper, cash, property and the proceeds
thereof owned by any Borrower or in which Borrower has an interest, in each case constituting Collateral, which now or hereafter
are at any time in possession or control of Lender or in transit by mail or carrier to or from Lender or in the possession of any
third-party acting on Lender&rsquo;s behalf, without regard to whether Lender received the same in pledge, for safekeeping, as agent
for collection or transmission or otherwise or whether Lender has conditionally released the same, shall constitute additional
security for the Liabilities of Borrower to Lender and may be applied at any time after the occurrence and continuance of an Event
of Default to such Liabilities, whether due or not. ANY AND ALL RIGHTS TO REQUIRE LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH
RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LIABILITIES OF BORROWER TO LENDER PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH
RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 8.</B></TD><TD><B>COLLECTION</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
may at any time and from time to time after the occurrence and during the continuance of an Event of Default hereunder, require
Borrower to establish a &ldquo;lock box&rdquo; arrangement with Lender for the receipt of remittances from Borrower&rsquo;s Account
Debtors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
may at any time after the occurrence of an Event of Default hereunder, notify Account Debtors on any Collateral, or require Borrower
to notify such Account Debtors, that such Account Debtors shall subsequently make all future payments on their account or accounts
with Borrower directly to Lender; or, alternatively, require Borrower to hold all proceeds received from collection of Accounts
or the sale of inventory in trust for Lender without commingling the same with other funds of Borrower, and to turn the same over
to the Lender immediately upon receipt in the identical form received, at which time Lender may at its option either apply such
proceeds to the Liabilities of Borrower owing to Lender, in accordance with <U>Section 8.6</U> hereinbelow, or release such proceeds
to Borrower for use in its business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
has the right at any time after the occurrence of an Event of Default hereunder, directly or through its agent or nominee or a
duly appointed receiver, to collect proceeds directly from Account Debtors on any Collateral and for that purpose to do all acts
and things necessary or incident thereto, including the right to sue on any Accounts, and to sell, transfer, set over, compromise,
discharge, or extend the whole or any part of any Accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
does hereby make, constitute and appoint any officer or agent of Lender as Borrower&rsquo;s true and lawful attorney-in-fact, with
power to endorse the name of Borrower or any of Borrower&rsquo;s officers or agents upon any notices, checks, drafts, money orders,
or other instruments of payment (including payments payable under any policy of insurance on any Collateral) or Collateral that
may come into possession of Lender in full or partial payment of any Liabilities of Borrower owing to Lender; to sign and endorse
the name of Borrower or any of Borrower&rsquo;s officers or agents upon any warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with Borrower&rsquo;s Accounts, and any instruments or documents relating thereto, or to
Borrower&rsquo;s rights therein; to give written notice to such office or officials of the United States Post Office to effect such change
or changes of address so that all mail addressed to Borrower may be delivered directly to Lender; granting unto Borrower&rsquo;s
said attorney-in-fact full power to do any and all things necessary to be done in and about Borrower&rsquo;s premises as fully and effectually
as Borrower might or could do, and hereby ratifying all that said attorney-in-fact shall lawfully do or cause to be done by virtue
hereof. Neither Lender nor the attorney-in-fact shall be liable for any acts or omissions nor for any errors of judgment or mistake,
except for their gross negligence or willful misconduct. This power of attorney shall be irrevocable for the term of this Agreement
and all transactions hereunder and thereafter as long as Borrower may be indebted to Lender and any Liabilities of Borrower owing
to Lender remain unsatisfied. With the exception of the power granted to Lender (or any officer or agent of Lender) to endorse
checks, drafts, and any other form of payment, which right may be exercised at any time and from time to time, Lender will not
exercise any of the powers granted under this <U>Section 8</U> absent the occurrence and during the continuance of an Event of
Default hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
Lender exercises any of its rights contained in <U>Sections 8.1</U> or <U>8.2</U>, Borrower may continue to collect proceeds from
Account Debtors on any Collateral and use the proceeds in any lawful manner not inconsistent with the terms of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that Lender exercises any of its rights contained in <U>Sections 8.1</U> or <U>8.2</U>, Lender shall credit to Borrower
the proceeds received from Account Debtors on any Collateral, such credits to be entered within two (2) business days after receipt
and clearance of such proceeds. Such credits, however, are conditional upon final payment to Lender at its office in cash or solvent
credits of the items giving rise to them, and, if any item is return, rescinded or not so paid, the amount of any credit given
with respect to any Liabilities of Borrower owing to Lender shall be reversed or, in the discretion of Lender, it shall be charged
to the Operating Account or any other deposit accounts of Borrower maintained with Lender, whether or not the item is returned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 9.</B></TD><TD><B>EVENTS OF DEFAULT; REMEDIES</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Events
of Default</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The occurrence of any
of the following events (after the expiration of any applicable grace and/or cure periods) shall be an event of default hereunder
(each an &ldquo;<U>Event of Default</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">Borrower shall fail to pay in full (i) any installment of principal on account of any of the Loans
when such payment is due and payable or (ii) any interest payment on account of any of the Loans within three (3) Business Days
of such payment being due and payable; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">Borrower fails to pay in full either the Revolving Loan Unused Fee when due pursuant to <U>Section
1.1.10</U> herein or the Equipment Loan Unused Fee when due pursuant to <U>Section 1.2.8</U> herein and/or Borrower fails to satisfy
either the minimum Fixed Charge Coverage Ratio covenant or the maximum Total Leverage Ratio covenant pursuant to <U>Sections 6.18.2</U>
and <U>6.18.3</U> herein, respectively (without the benefit of any grace or cure period with respect to any of the foregoing covenants);
or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify">Borrower shall fail to observe or perform any other covenant or agreement contained in this Agreement
or in any instrument, document or agreement executed with or given to Lender whether now or in the future and such failure continues
uncured for thirty (30) days following Borrower&rsquo;s receipt of written notice from Lender; <U>provided</U>, <U>however</U>,
in the event that Borrower commences a cure of such failure within such 30-day period and continues to diligently prosecute such
cure, the applicable cure period shall be extended for an additional period of time, not to exceed sixty (60) days in total, to
allow Borrower time to effect a cure; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(d)</TD><TD STYLE="text-align: justify">Any warranty, representation or statement made or furnished to Lender by or on behalf of Borrower
proves to have been false in any material respect when made or furnished; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(e)</TD><TD STYLE="text-align: justify">Any event which results in the acceleration of the maturity of the indebtedness of Borrower owing
to others in excess of $250,000.00 under any indenture, agreement, undertaking or otherwise; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(f)</TD><TD STYLE="text-align: justify">The dissolution or termination of existence of Borrower; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(g)</TD><TD STYLE="text-align: justify">Borrower shall: (i) cease, be unable, or admit in writing its inability to pay its debts as they
mature, or make a general assignment for the benefit of, or enter into any composition, trust mortgage or other arrangement with
creditors; (ii) apply for, or consent (by admission of material allegations of a petition or otherwise) to the appointment of a
receiver, trustee or liquidator of a substantial part of its assets, or authorize such application or consent, or proceedings seeking
such appointment shall be commenced; or (iii) apply for, or consent (by admission of material allegations of a petition or otherwise)
to the application of any bankruptcy, reorganization, readjustment of debt, insolvency, dissolution, liquidation or other similar
law of any jurisdiction, or authorize such application or consent, or (iv) any involuntary petition for bankruptcy, reorganization
or arrangement shall be consented to, or acquiesced in, or not objected to and has not been discharged within ninety (90) days
of filing. Upon the filing of any involuntary petition, Lender&rsquo;s agreement to consider making additional advances under any of
the Loans pursuant to this Agreement shall immediately terminate; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(h)</TD><TD STYLE="text-align: justify">Borrower shall have any Material Adverse Change (as defined below) in its financial condition since
the date of this Agreement that, in Lender&rsquo;s reasonable judgment, affects Borrower&rsquo;s ability to pay or perform its Liabilities;
<U>provided</U>, <U>however</U>, for purposes of this clause (h) there will not deemed to be any Material Adverse Change if (a)
Borrower is in compliance with all applicable financial covenants hereunder, including, without limitation, those contained in
<U>Sections 6.18.2</U> and <U>6.18.3</U>, respectively, or (b) if the alleged change is not an ongoing and continuous adverse change,
or (c) Borrower has then, or within thirty (30) days after being notified of such Material Adverse Change by Lender, made such
arrangements or taken such measures as will in the reasonable determination of Lender eliminate such Material Adverse Change. For
purposes of this Agreement, the term &ldquo;<U>Material Adverse Change</U>&rdquo; means any development, event, condition, obligation,
liability or circumstance or set of events, conditions, obligations, liabilities or circumstances or any change(s) which, as reasonably
determined by Lender in good faith, materially and adversely affect: (i) the business, assets, properties, Collateral, financial
condition, contingent liabilities, prospects, material agreements or results of operations of Borrower, or (ii) Borrower&rsquo;s
ability to pay and perform the Liabilities in accordance with the terms of this Agreement and the other Loan Documents, or (iii)
the validity or enforceability of this Agreement or any of the other Loan Documents or the rights and remedies, liens, security
interests or Collateral of Lender hereunder; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">The entry of any judgment(s) in excess of $250,000.00 against Borrower in excess of any insurance
coverage, which judgment(s) is not satisfied or appealed from (with execution or similar process stayed) within fifteen (15) days
of its entry; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(j)</TD><TD STYLE="text-align: justify">The service of process upon Lender seeking to attach by trustee process any funds of Borrower on
deposit with Lender.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceleration;
Cease Making Advances</U>. Upon the occurrence of any Event of Default, all Liabilities of Borrower owing to Lender shall, at Lender&rsquo;s
option and without presentment or demand for payment, notice of non-payment, protest or any other notice or demand of any kind,
all of which are expressly waived by Borrower, and notwithstanding any terms of payment in any note or other instrument evidencing
such Liabilities, become immediately due and payable, and any obligation of Lender to consider making subsequent advances under
any of the Loans pursuant to <U>Section 1</U> herein shall immediately terminate. In addition to the foregoing, upon the occurrence
of any Event of Default, Lender shall have all rights and remedies afforded to it under any of the Loan Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights
and Remedies of Lender</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 9.3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence and during the continuance of any Event of Default, Lender shall have all the rights and remedies of a secured party under the UCC, in addition to all other rights and remedies conferred upon Lender in this Agreement. Unless otherwise provided by law, Lender may require Borrower to assemble any tangible personal property constituting Collateral and make it available to Lender at Borrower&rsquo;s sole cost and expense at a place to be designated by Lender which is reasonably convenient to both parties.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 9.3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any sale or other disposition of the Collateral may be at public or private sale upon such terms and in such manner as Lender deems advisable, having due regard to compliance with any statute or regulation which might affect, limit or apply to Lender&rsquo;s disposition of the Collateral. Lender may conduct any such sale or other disposition of the Collateral upon Borrower&rsquo;s premises. Unless the Collateral is perishable or threatens to decline speedily in value, or is of a type customarily sold on a recognized market (in which event Lender shall provide Borrower with such notice as may be practicable under the circumstances), Lender shall give Borrower at least the greater of the minimum notice required by law or ten (10) days prior written notice of the date, time and place of any proposed public sale, and of the date after which any private sale or other disposition of the Collateral may be made. Lender may purchase the Collateral, or any portion thereof, at any public sale.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 9.3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Lender sells any of the Collateral on credit, Borrower will be credited only with payments actually made by the purchaser of such Collateral and received by Lender. If the purchaser fails to pay for the Collateral, Lender may re-sell the Collateral and Borrower shall be credited with the proceeds of the sale.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 9.3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence and during the continuance of any Event of Default, Lender shall have the right to the immediate possession of all Collateral and its products and proceeds, and in its sole discretion may operate and use said Collateral, complete any work-in-process, and sell any Collateral without being liable to Borrower on account of any losses, damage, or depreciation that may occur as a result thereof so long as Lender shall act in good faith.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 9.3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence and during the continuance of any Event of Default, Lender may enter upon, occupy, manage and use (through a custodian or receiver or otherwise) any premises owned or occupied by Borrower, remove any Collateral therefrom and may exclude Borrower from such premises or portion thereof as may have been so entered upon, occupied, or used by Lender. Lender shall not be required to remove any of the Collateral from any such premises upon Lender&rsquo;s taking possession thereof and may render any Collateral unusable to Borrower. In no event shall Lender be liable to Borrower for use or occupancy by Lender of any premises pursuant to this Agreement.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 9.3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with Lender&rsquo;s exercise of Lender&rsquo;s rights under this Agreement, Lender may at any time, after the occurrence and during the continuance of any Event of Default hereunder, transfer any Collateral into its own name or that of its nominee and may at any time after the occurrence of any Event of Default hereunder receive the income thereon and hold the same as security for Liabilities or apply it to principal or interest due on the Liabilities.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"> 9.3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower hereby grants to Lender a non-exclusive irrevocable license in connection with Lender&rsquo;s exercise of its rights hereunder, to use, apply and affix any trademark, trade name, logo or the like in which Borrower now or hereafter has rights, which license may be used upon the occurrence and during the continuance of any Event of Default.</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">9.3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, after the
occurrence and during the continuance of any Event of Default, Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to Borrower, all of which are hereby expressly waived, to set off and
to appropriate and apply any and all deposits (general or special) and any other assets at any time held or owing by Lender to
or for the credit or the account of Borrower against and on account of the Liabilities of Borrower to Lender despite the fact that
any such Liabilities may then be contingent or unmatured and without regard for the availability or adequacy of other Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 10.</B></TD><TD><B>NOTICE</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
notices and other communications hereunder shall be made by personal delivery, nationally recognized overnight air courier, or
certified or registered first class mail, return receipt requested, and shall be deemed to be received by the party to whom it
was sent when received if sent by personal delivery, one (1) business day after sending if sent by overnight air courier, and three
(3) business days after mailing if sent by certified or registered mail. All such notices and other communications to a party hereto
shall be addressed to such party at the address set forth at the beginning of this Agreement or to such other address as such party
may designate for itself in a notice to the other parties given in accordance with this <U>Section 10.1</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
addresses to which such communications shall be sent are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">If intended for Borrower, to:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Byrna Technologies Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">100 Burtt Road</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">Andover, MA
01810</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">Attention: Bryan
Ganz</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">with a copy
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Taft Stettinius &amp;
Hollister LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">200 Public Square, Suite
3500</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Cleveland, OH 44114-2302</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Attn: Michael Wager,
Esq., Katharine Mascarenhas, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Email: mwager@taftlaw.com;
kmascarenhas@taftlaw.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(b)</TD><TD>If intended for Lender, to:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Needham Bank&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">214 Garden Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Needham, MA 02492</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Attn:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James
Daley, Senior Vice President</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">with a copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Murtha Cullina LLP&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">99 High Street, 20<SUP>th
</SUP>Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Boston, MA 02110</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Attn:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Matthew
D. Ray, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
addresses set forth herein may be changed by notice to the other parties given in accordance with the requirements of <U>Section
10.1</U> above. Email shall not constitute sufficient notice under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 11.</B></TD><TD><B>MISCELLANEOUS</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
indebtedness and obligations of Borrower owing to Lender for borrowed money, however arising and whether now existing or hereafter
arising, shall be cross-guaranteed, cross-defaulted and cross-collateralized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will from time to time execute and deliver to Lender all such other and further instruments and documents and take or cause to
be taken all such other and further action as Lender may reasonably request in order to effect and confirm or vest more securely
in Lender all rights contemplated in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Borrower is comprised of more than one entity or individual, the term Borrower shall mean all of them and the Liabilities of Borrower
arising under this Agreement or any other Loan Documents shall be the joint and several obligation and liability of each entity
or individual comprising Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
may take any action herein prohibited or omit to perform any act required to be performed by Borrower if Borrower shall obtain
Lender&rsquo;s prior written consent to each such action, or omission to act. No waiver on Lender&rsquo;s part on any one occasion shall be
deemed a waiver on any other occasion. Lender shall not be deemed to have waived any of its rights hereunder unless such waiver
shall be in writing and duly signed by an authorized officer of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement may be amended only by an instrument in writing and duly signed by Borrower and an authorized officer of Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
covenants, agreements, representations and warranties contained in this Agreement shall bind each Borrower, its respective successors
and permitted assigns, and shall inure to Lender&rsquo;s benefit and the benefit of Lender&rsquo;s successors and assigns, whether expressed
or not; <U>provided</U>, <U>however</U>, that Borrower may not assign any rights or obligations under this Agreement without the
prior written consent of Lender in Lender&rsquo;s sole discretion; <U>provided further</U>, that prior to the occurrence of an
Event of Default hereunder, Lender may not assign any rights or obligations under this Agreement without the prior written consent
of Borrower. Notwithstanding the foregoing, it is agreed that Lender may grant to other financial institutions participating interests
in any of the Loans made pursuant to this Agreement without any requirement to obtain the prior written consent of Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
rights of Lender hereunder shall be cumulative. Lender shall not be required to have recourse to any Collateral before enforcing
its rights or remedies against Borrower. Borrower hereby waives presentment and protest of any instrument and any notice thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any provisions of this Agreement shall be held to be illegal or unenforceable, such illegality or unenforceability shall relate
solely to such provision and shall not affect the remainder of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Massachusetts, without regards to
its conflicts of law principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall take effect as an instrument under seal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BORROWER
AND LENDER EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE OR HEREAFTER HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. Borrower hereby certifies that neither
Lender nor any of its representatives, agents or legal counsel has represented, expressly or otherwise, that Lender would not,
in the event of any such suit, action or proceeding, seek to enforce this waiver of right to trial by jury. Borrower acknowledges
that Lender has been induced to enter into this Agreement by, among other things, this waiver. Borrower acknowledges that it has
read the provisions of this Agreement and in particular, this <U>Section 11.11</U>; has consulted legal counsel of its sole choosing;
understands the right it is granting in this Agreement and is waiving in this <U>Section 11.11</U> in particular, and makes the
above waiver knowingly, voluntarily and intentionally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
and Lender each agree that any action or proceeding to enforce or arising out of this Agreement may be commenced in any state court
of the Commonwealth of Massachusetts, City of Boston, or in the District Court of the United States for the District of the Commonwealth
of Massachusetts, and Borrower waives personal service of process and agrees that a summons and complaint commencing an action
or proceeding in any such court shall be properly served and confer personal jurisdiction if served by registered or certified
mail to Borrower or as otherwise provided by the laws of the Commonwealth of Massachusetts or the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement may be executed in multiple counterparts, each of which shall be effective upon delivery and, thereafter, shall be deemed
to be an original, and all of which shall be taken as one and the same instrument with the same effect as if each party hereto
had signed on the same signature page. Any signature page of this Agreement may be detached from any counterpart of this Agreement
without impairing the legal effect of any signature thereto and may be attached to another part of this Agreement identical in
form hereto and having attached to it one or more additional signature pages. This Agreement together with any and all loan documents,
agreements and instruments executed in connection with any of the Loans and all documents, agreements and instruments executed
in connection with any of the Loans subsequent to the Effective Date (collectively, the &ldquo;<U>Loan Documents</U>&rdquo;) may
be transmitted by electronic mail in portable document format (&ldquo;<U>PDF</U>&rdquo;) and signatures appearing on electronic mail
instruments shall be treated as original signatures. Any party delivering an executed counterpart of the Loan Documents by PDF
or other electronic method of transmission also shall deliver an original executed counterpart of the Loan Documents, but the failure
to deliver an original executed counterpart shall not affect the validity, enforceability or binding effect hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and all covenants, agreements, representations and warranties made herein shall survive the making by Lender of
the Loans, the execution and delivery to Lender of this Agreement, the Revolving Note, each Equipment Term Note and the other Loan
Documents and shall continue in full force and effect so long as any balance under any of the Revolving Note or any Equipment Term
Note remains outstanding and unpaid and so long as Lender continues to have any obligation to consider making subsequent advances
under any of the Loans pursuant to <U>Section 1</U> herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The captions herein contained are inserted as a matter of convenience only and such captions do not form a part of this Agreement
and shall not be utilized in the construction hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.16</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower,
nor any transferee under a permitted transfer (collectively, the &ldquo;<U>Related Persons</U>&rdquo;), will be included in, owned
by, controlled by, act for or on behalf of, provide assistance, support, sponsorship, or services of any kind to, or otherwise
associate with any of the persons referred to or described in any list of persons, entities, and governments issued by the Office
of Foreign Assets Control of the United States Department of the Treasury (&ldquo;<U>OFAC</U>&rdquo;) pursuant to Executive Order
13224 &ndash; Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism,
as amended (&ldquo;<U>Executive Order 13224</U>&rdquo;), or any similar list issued by OFAC or any other department or agency of
the United States of America (collectively, the &ldquo;<U>OFAC Lists</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will comply at all times with the requirements of Executive Order 13224; the International Emergency Economic Powers Act, 50 U.S.C.
Sections 1701-06; the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, Pub. L. 107-56 (the &ldquo;<U>PATRIOT Act</U>&rdquo;); the Iraqi Sanctions Act, Pub. L. 101-513, 104 Stat. 2047-55;
the United Nations Participation Act, 22 U.S.C. Section 287c; the Antiterrorism and Effective Death Penalty Act (enacting 8 U.S.C.
Section 219, 18 U.S.C. Section 2332d, and 18 U.S.C. Section 2339b); the International Security and Development Cooperation Act,
22 U.S.C. Section 2349 aa 9; the Terrorism Sanctions Regulations, 31 C.F.R. Part 595; the Terrorism List Governments Sanctions
Regulations, 31 C.F.R. Part 596; the Foreign Terrorist Organizations Sanctions Regulations, 31 C.F.R. Part 597; Bank Secrecy Act,
Pub. L. 91-508, 84 Stat. 1114, 1118; the Trading with the Enemy Act, 50 U.S.C. App. Section 1 et seq.; the laws relating to prevention
and detection of money laundering in 18 U.S.C. Sections 1956 and 1957 and any similar laws or regulations currently in force or
hereafter enacted (collectively, the &ldquo;<U>Anti-Terrorism Regulations</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Borrower becomes aware or receives any notice that any of the Related Persons are named on any of the OFAC Lists (such occurrence,
an &ldquo;<U>OFAC Violation</U>&rdquo;), Borrower will immediately comply with all laws applicable to such OFAC Violation (regardless
of whether the party included on any of the OFAC Lists is located within the jurisdiction of the United States of America), including,
without limitation, the Anti-Terrorism Regulations, and Borrower will take any and all steps necessary to comply with all laws
applicable to any such OFAC Violation, including, without limitation, the requirements of the Anti-Terrorism Regulations (including
the &ldquo;freezing&rdquo; and/or &ldquo;blocking&rdquo; of assets).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1.5in; text-align: left"><B>SECTION 12.</B></TD><TD><B>TERMINATION OF THIS AGREEMENT</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
renewed in writing, this Agreement shall terminate on the date upon which Lender is no longer obligated to consider making additional
advances under any of the Loans pursuant to <U>Section 1</U> herein and each of the Loans, together with all accrued and outstanding
interest and fees due thereon, has been repaid in full in cash (the &ldquo;<U>Termination Date</U>&rdquo;), upon which date the Collateral
shall be released. Notwithstanding the foregoing or anything in this Agreement or elsewhere to the contrary, Lender may terminate
this Agreement immediately and without notice upon the occurrence and during the continuance of any Event of Default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that Lender continues to make loans or advances hereunder to Borrower after the Termination Date without a written extension
of such Termination Date or after the occurrence of an Event of Default, all such advances: (i) shall be made in the sole and absolute
discretion of Lender; and (ii) shall, together with all other Liabilities of Borrower owing to Lender, be payable thereafter ON
DEMAND.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[SIGNATURE PAGE FOLLOWS]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the undersigned have executed and delivered this Commercial Loan and Security Agreement as a sealed instrument effective as of
the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>WITNESS</U></B>:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>BORROWER</U></B>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BYRNA TECHNOLOGIES INC.,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Delaware corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">/s/ James Dunfey</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Bryan Ganz</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Print Witness Name:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD>Bryan Ganz</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD>President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>WITNESS</U>:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>LENDER</U></B>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NEEDHAM BANK</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">/s/ R. Sutton</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ James Daley</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Print Witness Name:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James Daley</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Senior Vice President</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Other addresses at which Borrower has
an office, conducts business or at which any of Borrower&rsquo;s property is located</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>1.</B></TD><TD><B>Office Apartment</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Avalon Oaks</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Apartment 4AD-4213</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">4213 Avalon Drive</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Wilmington, MA 01887</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>2.</B></TD><TD><B>Plant Facility</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">5031 Industrial Rd.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Fort Wayne, IN 46825</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3.</B></TD><TD><B>Office Space</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">9555 S. Eastern Ave. Ste 210</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Las Vegas, NV. 89123</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>List of Borrower&rsquo;s Intellectual
Property</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[see attached listings]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Other Indebtedness of Borrower</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>NONE</U>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>EXHIBIT A</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>BORROWING BASE CERTIFICATE</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned <B>BYRNA
TECHNOLOGIES INC.</B>, a Delaware corporation (&ldquo;<U>Borrower</U>&rdquo;) hereby certifies to <B>NEEDHAM BANK</B> (&ldquo;<U>Lender</U>&rdquo;)
pursuant to that certain Commercial Loan and Security Agreement dated as of January 19, 2021 and entered into by and between Borrower
and Lender (as the same may be amended, restated, supplemented or otherwise modified from time to time, the &ldquo;<U>Loan Agreement</U>&rdquo;)
that the amounts and representations as set forth below are true and correct as of __________________ ____, 20___.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 75%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>I.</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Eligible Accounts Receivable</U></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Eligible Accounts Receivable under a contract with any federal, state or municipal governmental agency or any department or instrumentality thereof less than one hundred twenty (120)days from invoice date</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Line A multiplied
    by 85% advance rate = credit available from Eligible Accounts Receivable under a contract with any federal, state or
    municipal governmental agency or any department or instrumentality thereof less than one hundred twenty (120) days from
    invoice date</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">C.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total of all other Eligible Accounts Receivable less than ninety (90) days from invoice date</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">D.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Less</U>: cross-aged
    Accounts (___% threshold)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">E.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net of all other Eligible Accounts Receivable less than ninety (90) days from invoice date (Line C &ndash; Line D)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Line E multiplied by 80% advance rate = credit available from all other Eligible Accounts Receivable less than ninety (90) days from invoice date</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">G.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Eligible
    Accounts Receivable borrowing base (Line B + Line F)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>II.</B></FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Eligible Inventory
    and Raw Materials</U></B></FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">H.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net orderly liquidation value of Eligible Inventory</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

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    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 75%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">I.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Less</U>: ineligible
    Inventory</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">J.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net Eligible Inventory(Line H &ndash; Line I)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">K.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Line J multiplied by 50% advance rate = credit available from Eligible Inventory</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">L.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Raw materials</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">M.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Line L multiplied by 25% advance rate = credit available from raw materials</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The <U>lesser of</U>:
    (i) $2,500,000, or (ii) (Line K + Line M) = total Eligible Inventory and raw materials borrowing base</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>III.</B></FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Eligible Credit
    Card Receivables</U></B></FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">O.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ninety percent (90%) of all Eligible Credit Card Receivables</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">P.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Line O multiplied by 50% advance rate = total Eligible Credit Card Receivables borrowing base</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>IV.</B></FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Borrowing
    Base Summary</U></B></FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Q.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Eligible
    Accounts Receivable borrowing base (Line G)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">R.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Eligible
    Inventory and raw materials borrowing base (Line N)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">S.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total Eligible Credit Card Receivables borrowing base (Line P)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">T.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total borrowing base (Line Q + Line R + Line S)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Less</U>: aggregate
    principal amount of all advances outstanding under the Revolving Loan</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">V.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Remaining
    availability or (deficiency) under the Revolving Loan (Line T &ndash; Line U)</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The representations and warranties contained
in the Loan Agreement and in any certificate, document or financial or other statement furnished at any time thereunder are true,
correct and complete in all material respects with the same effect as though such representations and warranties had been made
on the date hereof, except to the extent that any such representation and warranty relates solely to an earlier date (in which
case such representation and warranty shall be true, correct and complete on and as of such earlier date). There has been no adverse
change, and there is no litigation or proceedings which may cause an adverse change, in the financial condition or business operations
of Borrower since the date of the last financial statements or Borrowing Base Certificate furnished to Lender, nor to the knowledge
of Borrower is there any existing Event of Default under the Loan Agreement as of the date of this Borrowing Base Certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>WITNESS</U>:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>BORROWER</U>:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BYRNA TECHNOLOGIES INC.,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Delaware corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Print Witness Name:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>EXHIBIT B</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>COVENANT COMPLIANCE CERTIFICATE</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned <B>BYRNA
TECHNOLOGIES INC.</B>, a Delaware corporation (&ldquo;<U>Borrower</U>&rdquo;), hereby certifies in favor of <B>NEEDHAM BANK</B> (&ldquo;<U>Lender</U>&rdquo;)
pursuant to that certain Commercial Loan and Security Agreement entered into by and between Lender and Borrower dated as of January
19, 2021 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the &ldquo;<U>Loan Agreement</U>&rdquo;),
that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">A.</TD><TD><U>General</U></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized
terms not defined herein shall have the meanings set forth in the Loan Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the calculation period, there does not exist an Event of Default or an event or circumstance which, with notice or the lapse of
time, or both, would constitute an Event of Default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">B.</TD><TD><U>Financial Covenants</U></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For such calculation
period as may be designated below, the computations, ratios and calculations as set forth below have been made in accordance with
<U>Section 6.18</U> of the Loan Agreement and are true and correct:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Minimum Fixed Charge Coverage Ratio
(Section 6.18.2 of the Loan Agreement)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Fixed Charge Coverage
Ratio of Borrower as of ____________________, 20____ for the preceding 12-month period was equal to _____:1.0, computed as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 10%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 75%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EBITDA of Borrower</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unfinanced capital expenditures of Borrower</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">C.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash taxes actually paid by Borrower</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">D.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A &ndash; (B+ C) =</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">E.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower&rsquo;s Debt Service</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ratio of D to E
    =_____:1.0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Maximum
Total Leverage Ratio (Section 6.18.3 of the Loan Agreement)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Total Leverage
Ratio of Borrower as of ____________________, 20____ for the preceding 12-month period was equal to _____:1.0, computed as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 10%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 75%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Aggregate
    total of all funded and outstanding indebtedness for borrowed money of Borrower</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EBITDA of Borrower</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$___________</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">C.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ratio of A to B
    =_____:1.0</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the undersigned Borrower
has executed and delivered this Covenant Compliance Certificate as a sealed instrument as of _______________________, 20___.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>WITNESS</U>:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>BORROWER</U>:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BYRNA TECHNOLOGIES INC.,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Delaware corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Print Witness Name:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>EXHIBIT C</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>FORM OF EQUIPMENT TERM NOTE</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SECURED EQUIPMENT TERM NOTE</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 22%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4pt">DATE OF NOTE:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4pt">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4pt">BORROWER:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4pt">&nbsp;</P></TD>
    <TD STYLE="width: 78%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>________________</B>, 20___</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>BYRNA TECHNOLOGIES INC.</B>, a Delaware
        corporation</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PRINCIPAL AMOUNT:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LOAN TERM:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">MATURITY DATE:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.5pt; text-align: justify; text-indent: -35.5pt">______________________________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.5pt; text-align: justify; text-indent: -35.5pt">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Seventy-Two (72) Months</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">___________, 20___</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">FOR VALUE RECEIVED, Borrower, on a joint
and several basis, promises to pay to <B>NEEDHAM BANK</B> (hereinafter &ldquo;<U>Lender</U>,&rdquo; which term shall include its
successors and permitted assigns), or its order, the Principal Amount of <FONT STYLE="text-transform: uppercase"><B>___________________________
AND </B></FONT><B>___/100 DOLLARS ($____________________)</B>, or such lesser amount as may be outstanding hereunder, together
with accrued interest thereon or on so much as remains outstanding at the effective Interest Rate herein specified. This Note is
executed and delivered pursuant to the terms and conditions of that certain Commercial Loan and Security Agreement dated as of
January 19, 2021 entered into between Borrower and Lender (the &ldquo;<U>Loan Agreement</U>&rdquo; which term shall include all modifications,
extensions, renewals and replacements thereof).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">INTEREST RATE: Subject to the terms of
this Note, the outstanding principal balance of this Note shall accrue interest at a fluctuating per annum interest rate equal
to sum of the Prime Rate (as defined herein) <U>plus</U> fifty (50) basis points (0.50%). As used herein, the term &ldquo;<U>Prime
Rate</U>&rdquo; shall mean <FONT STYLE="background-color: white">the Prime Rate as published in the &ldquo;<I>Money Rates&rdquo;</I>
section of <I><U>The Wall Street Journal</U></I>, provided, however, if such rate is, at any time during the term of this Note,
no longer so published by <I><U>The Wall Street Journal</U></I>, upon written notice to the Borrower, the Lender shall designate
a comparable reference rate which shall be deemed the &ldquo;Prime Rate&rdquo; hereunder.</FONT> The effective interest rate under
this Note shall be automatically changed contemporaneously with each change in the Prime Rate, provided, however, that Lender has
no obligation to notify Borrower of any changes in the effective rate of interest under this Note. Notwithstanding anything contained
herein to the contrary, at no point in time during the term of this Note shall the effective interest rate under this Note be less
than four percent (4.00%) per annum. Interest on the outstanding principal balance of this Note shall be calculated on the basis
of actual days elapsed and a 360-day year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">REPAYMENT; PAYMENT DAY: Commencing on _________
1, 20___, and thereafter on the first (1<SUP>st</SUP>) day of each succeeding month (the first (1<SUP>st</SUP>) day of each calendar
month being referred to herein as a &ldquo;<U>Payment Day</U>&rdquo;) until the date which is the twelfth (12<SUP>th</SUP>) month
anniversary date of this Note (the &ldquo;<U>Conversion Date</U>&rdquo;) (the period commencing on the date of this Note and ending
on the Conversion Date is referred to herein as the &ldquo;<U>Interest Only Period</U>&rdquo;), Borrower shall make consecutive
monthly payments of accrued interest only, in arrears. Thereafter, commencing with the first Payment Day following the expiration
of the Interest Only Period and continuing thereafter on each successive Payment Day for the remaining term of this Note (the period
commencing with the expiration of the Interest Only Period and ending on the Maturity Date is referred to herein as the &ldquo;<U>Amortization
Period</U>&rdquo;), Borrower shall make consecutive monthly amortizing payments of principal (calculated by Lender based upon a
fully amortizing five (5) year amortization scheduled commencing on the first day of the Amortization Period), together with a
payment of accrued interest, in arrears. The entire outstanding principal balance of this Note, together with all accrued interest
and other fees and charges payable hereunder, shall be due and payable in full on the Maturity Date. If any Payment Day would otherwise
fall on a day that is not a Business Day, such Payment Day will be the next immediate Business Day. For purposes of this Note,
&ldquo;<U>Business Day</U>&rdquo; is a day which is neither a Saturday nor a Sunday nor a legal holiday on which commercial banks
are authorized to be closed in Boston, Massachusetts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Note constitutes an &ldquo;Equipment
Term Note&rdquo; as referenced in the Loan Agreement and the loan evidenced by this Note represents an advance previously made
under the &ldquo;Equipment Loan&rdquo; as referenced in the Loan Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payments made hereunder shall be applied
first to Lender&rsquo;s costs and expenses, then to accrued interest then outstanding, and the remainder, if any, to any current
or past due required principal payment due hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On any date on which a regularly scheduled
payment of accrued interest and/or principal is due under this Note, the Lender may charge the Operating Account (as defined in
the Loan Agreement) with the amount thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All capitalized terms not defined herein
shall be given the same meaning as set forth in the Loan Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The occurrence of any Event of Default
(after the expiration of any applicable cure or grace period) under the Loan Agreement shall be an Event of Default hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PREPAYMENT: Borrower shall have the right
to prepay, without premium or penalty, the principal balance of any outstanding Advance made under this Note, in whole or in part,
together with all accrued and unpaid interest thereon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrower agrees to pay all expenses including
reasonable attorney&rsquo;s fees, which Lender may incur in effecting collection of this Note, upon an Event of Default or following
maturity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Lender shall not, by any act, delay, omission
or otherwise be deemed to have waived any of its rights or remedies hereunder unless such waiver be in writing and signed by Lender.
A delay, omission or waiver on one occasion shall not be deemed a waiver or bar on any future occasion of the same or any other
right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrower and each endorser and guarantor
of this Note or the obligation represented hereby, waives, to the extent permitted by applicable law, presentment, demand, notice,
protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this
Note, except as specifically provided herein with respect to notices of default and pursuant to the terms of the Loan Agreement;
assents to any extension or postponement of the time of payment or any other indulgence and to the addition or release of any other
party primarily or secondarily liable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE BORROWER AND LENDER MUTUALLY HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS WAIVER CONSTITUTES A MATERIAL
INDUCEMENT FOR LENDER TO ACCEPT THIS NOTE AND MAKE THE LOAN EVIDENCED HEREBY.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrower and each endorser and guarantor
hereby assent to the release in whole or in part of any Collateral (as defined in the Loan Agreement) held as security herefor,
and agrees that Lender need not proceed against any Collateral held as security herefor before proceeding directly against Borrower
or against any endorser or guarantor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrower shall pay to Lender a late charge
in the amount of five (5%) percent of each payment due hereunder which is more than fifteen (15) days in arrears to offset the
additional expenses involved in processing delinquent payments. In addition, from and after the date on which this Note becomes,
or at Lender&rsquo;s option, could become, due and payable (whether accelerated or not), at maturity, upon default or otherwise,
and solely during the existence of such circumstance, interest shall accrue and shall be due and payable on demand at a rate (the
&ldquo;<U>Default Rate</U>&rdquo;) which is four (4%) percent per annum higher than the Interest Rate hereinabove specified but
in no event higher than the maximum interest rate permitted by law. The Default Rate shall change each time the Interest Rate changes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrower shall not be obligated to pay
and Lender shall not collect interest at a rate higher than the maximum permitted by law or the maximum that will not subject Lender
to any civil or criminal penalties. If, because of the acceleration of maturity the payment of interest in advance or any other
reason, Borrower is required, under the provisions of any Loan Document or otherwise, to pay interest at a rate in excess of such
maximum rate, the rate of interest under such provisions shall immediately and automatically be reduced to such maximum rate and
any payment made in excess of such maximum rate, together with interest thereon at the rate provided herein from the date of such
payment, shall be immediately and automatically applied to the reduction of the unpaid principal balance of this Note as of the
date on which such excess payment was made. If the amount to be so applied to reduction of the unpaid principal balance exceeds
the unpaid principal balance, the amount of such excess shall be refunded by Lender to Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon receipt of an affidavit of an officer
of Lender as to the loss, theft, destruction or mutilation of this Note or any other security document(s) which is not of public
record and, in the case of any such destruction or mutilation, upon surrender and cancellation of such Note or other document(s),
Borrower will issue, in lieu thereof, a replacement promissory note or other document(s) in the same principal amount hereof and
otherwise of like tenor at no cost to Borrower.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Note shall be deemed to be a Massachusetts
instrument, and all rights and obligations hereunder shall be governed by the laws of the Commonwealth of Massachusetts and enforced
in the courts of the Commonwealth of Massachusetts sitting in the City of Boston.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Borrower&rsquo;s obligations under this
Note are secured by, <I>inter alia</I>, the first priority security interest (subject to any Permitted Liens) in the Collateral
(as defined in the Loan Agreement) granted by Borrower in favor of Lender pursuant to the terms of the Loan Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[SIGNATURE PAGE FOLLOWS]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IN WITNESS WHEREOF, Borrower has duly executed and delivered this Secured Equipment Term Note UNDER SEAL to be effective as of
the date first set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>WITNESS:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BORROWER:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BYRNA TECHNOLOGIES INC.,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Delaware corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Print Witness Name:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>4
<FILENAME>ex4-2.htm
<DESCRIPTION>SECURED REVOLVING LINE OF CREDIT NOTE
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0; text-align: right"><B></B></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><A HREF="byrn-8k_011521.htm"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">BYRNA TECHNOLOGIES INC.&nbsp;8-K</FONT></A></P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 4.2</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0pt 0; text-align: right"><I>Execution Version</I></P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>SECURED
REVOLVING LINE OF CREDIT NOTE</U></FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$5,000,000.00 </FONT></TD>
    <TD STYLE="width: 50%; text-align: right; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">January
    19, 2021</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD COLSPAN="2" STYLE="text-align: right; vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Needham, Massachusetts</FONT></TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FOR
VALUE RECEIVED, the undersigned, <B>BYRNA TECHNOLOGIES INC.</B>, a Delaware corporation (the &quot;<U>Borrower</U>&quot;), promises
to pay to <B>NEEDHAM BANK</B>, a Massachusetts co-operative bank (the &quot;<U>Lender</U>&quot;), or its order, at the office
of the Lender located at 1063 Great Plain Avenue, Needham, Massachusetts 02492, or such other place as the Lender shall designate,
the maximum principal sum of FIVE MILLION and 00/100 DOLLARS ($5,000,000.00) (or if less, the aggregate unpaid principal amount
of all loans or advances made by the Lender to the Borrower pursuant to this Secured Revolving Line of Credit Note (as it may
be amended, restated, supplemented or otherwise modified from time to time, this &quot;<U>Note</U>&quot;) and that certain Commercial
Loan and Security Agreement of even date hereof entered into by and between the Lender and the Borrower (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the &quot;<U>Loan Agreement</U>&quot;)), together with interest
on the unpaid principal balance hereof at a fluctuating per annum interest rate equal to sum of the Prime Rate (as defined herein)
<U>plus</U> fifty (50) basis points (0.50%). As used herein, the term &quot;<U>Prime Rate</U>&quot; shall mean <FONT STYLE="background-color: white">the
Prime Rate as published in the &ldquo;<I>Money Rates&rdquo;</I> section of <I><U>The Wall Street Journal</U></I>, provided, however,
if such rate is, at any time during the term of this Note, no longer so published by <I><U>The Wall Street Journal</U></I>, upon
written notice to the Borrower, the Lender shall designate a comparable reference rate which shall be deemed the &quot;Prime Rate&quot;
hereunder. </FONT>The effective interest rate under this Note shall be automatically changed contemporaneously with each change
in the Prime Rate, provided, however, that the Lender has no obligation to notify the Borrower of any changes in the effective
rate of interest under this Note. Notwithstanding anything contained herein to the contrary, at no point in time during the term
of this Note shall the effective interest rate under this Note be less than four percent (4.00%) per annum.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commencing
on March 1, 2021 and continuing thereafter on the same day of each succeeding month during the term of this Note (the first (1<SUP>st</SUP>)
day of each calendar month is hereinafter referred to as a &quot;<U>Payment Date</U>&quot;), the Borrower shall make consecutive
monthly payments of any and all accrued interest only, in arrears.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest
on the outstanding principal balance of this Note shall be calculated on the basis of actual days elapsed and a 360-day year.
If not sooner repaid or accelerated pursuant to the terms of the Loan Agreement, the entire outstanding principal balance under
this Note, together with all accrued and outstanding interest thereon and any other fees and charges then due, shall be due and
payable in full on January 19, 2024 (the &quot;<U>Maturity Date</U>&quot;). All Payment Dates are subject to the Following Business
Day Convention (as defined below). This Note constitutes the &quot;Revolving Note&quot; referenced in the Loan Agreement and the
loan evidenced by this Note constitutes the &quot;Revolving Loan&quot; referenced in the Loan Agreement. All other capitalized
terms not defined herein shall be given the same meaning as set forth in the Loan Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
&quot;<U>Following Business Day Convention</U>&quot; means the convention for adjusting any relevant date that would otherwise
fall on a day that is not a Business Day so that the date will be the first following day that is a Business Day. &quot;<U>Business
Day</U>&quot; is a day which is neither a Saturday nor a Sunday nor a legal holiday on which commercial banks are authorized to
be closed in Boston, Massachusetts.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
at any time the aggregate outstanding principal balance under this Note exceeds Five Million and No/100 Dollars ($5,000,000.00),
the Borrower shall immediately pay to the Lender an amount equal to such excess.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Borrower may prepay, in whole or in part, the outstanding principal balance of this Note without premium or penalty at any time.
The line of credit evidenced by this Note is a revolving facility. Principal amounts repaid shall be available to be re-advanced
to the Borrower, subject to the terms and conditions of the Loan Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
occurrence of any of the following events (each an &quot;<U>Event of Default</U>&quot;) shall constitute an Event of Default hereunder:
(i) the failure to pay in full any payment of principal due hereunder when such payment is due or the failure to pay any interest
due within three (3) Business Days of when such payment is due; or (ii) the occurrence and continuance of an Event of Default
under the Loan Agreement. Upon the occurrence and during the continuance of an Event of Default, in addition to any rights and
remedies afforded the Lender under the Loan Agreement, at the option of the Lender, the entire outstanding principal balance under
this Note, together with all accrued and outstanding interest thereon and any other fees and charges then due, shall become immediately
due and payable in full without notice or demand.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Borrower&rsquo;s obligations under this Note are secured by, <I>inter alia</I>, the first priority (subject to any Permitted Liens)
security interest in the Collateral (as defined in the Loan Agreement) granted by the Borrower in favor of the Lender pursuant
to the terms of the Loan Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
any payment of principal or interest hereunder is not paid in full when due and such default constitutes an Event of Default which
is continuing, interest on such unpaid balance may, at the option of the Lender, thereafter accrue and be payable at a per annum
rate equal to four percent (4.00%) greater than the rate of interest otherwise applicable to such balance (the &quot;<U>Default
Rate</U>&quot;). In no event, however, shall advances evidenced by this Note bear interest rate in excess of the maximum interest
permitted by applicable law. If any payment or installment to be made hereunder, whether interest, principal or both, shall not
be paid within fifteen (15) days of the date when due (other than principal due on the Maturity Date or at an earlier date if
due to an Event of Default or other circumstances), then, in addition to interest and without limiting the Lender&rsquo;s rights
by reason of such default, there shall be paid, upon demand, a late charge equal to five percent (5.00%) of any such late payment
or installment.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Note is issued pursuant to the aforementioned Loan Agreement, to which reference is made for a complete description of the rights,
obligations, limitations and restrictions of the Borrower and the Lender.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Borrower hereby authorizes the Lender to automatically debit the amount of each regularly scheduled payment of accrued interest,
when due and payable hereunder, against the Borrower's Operating Account (as defined in the Loan Agreement) established and maintained
with the Lender pursuant to the Loan Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower
agrees to pay all expenses including reasonable attorney&rsquo;s fees, which Lender may incur in effecting collection of this
Note, upon an Event of Default or following maturity.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
delay or omission on the part of the Lender in exercising any right hereunder shall operate as a waiver of such right or of any
other right of such Lender, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same
or any other right on any future occasion. The Borrower and every endorser or guarantor of this Note regardless of the time, order
or place of signing waives, to the extent permitted by applicable law, presentment, demand, protest and notices of every kind,
except as specifically provided herein with respect to notices of default or as provided by the terms of the Loan Agreement, and
assents to any one or more extensions or postponements of the time of payment or any other indulgences, to any substitutions,
exchanges or releases of collateral if at any time there be available to the Lender collateral for this Note, and to the additions
or releases of any other parties or persons primarily or secondarily liable hereunder.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
receipt of an affidavit of an officer of the Lender as to the loss, theft, destruction or mutilation of the Note or any other
security document(s) which is not of public record and, in the case of any such destruction or mutilation, upon surrender and
cancellation of such Note or other document(s), Borrower will issue, in lieu thereof, a replacement Note or other document(s)
in the same principal amount thereof and otherwise of like tenor.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
rights and obligations under this Note shall be governed by the laws of the Commonwealth of Massachusetts and this Note shall
be deemed to be made under seal.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
BORROWER AND LENDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF
ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER DOCUMENTS CONTEMPLATED TO BE EXECUTED
IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.
THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR LENDER TO ACCEPT THIS NOTE AND MAKE THE LOAN EVIDENCED HEREBY.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[SIGNATURE
PAGE FOLLOWS]</FONT></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">IN
WITNESS WHEREOF, the Borrower has duly executed and delivered this Secured Revolving Line of Credit Note UNDER SEAL to be effective
as of the date first set forth above.</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 53%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>WITNESS: </B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BORROWER:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BYRNA TECHNOLOGIES INC.,</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Delaware corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-bottom: Black 1pt solid">/s/ James Dunfey</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Bryan Ganz&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Print Witness Name: James Dunfey</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bryan Ganz&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President&nbsp;</FONT></TD></TR>
</TABLE>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>5
<FILENAME>ex4-3.htm
<DESCRIPTION>FORM OF TERM NOTE
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: right"></P>

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<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><A HREF="byrn-8k_011521.htm"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">BYRNA TECHNOLOGIES INC.&nbsp;8-K</FONT></A></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
4.3</B></FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>SECURED
EQUIPMENT TERM NOTE</U></B></FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify; width: 15%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DATE
    OF NOTE:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify; width: 75%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>________________</B>,
    20___</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BORROWER:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BYRNA
    TECHNOLOGIES INC.</B>, a Delaware corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRINCIPAL
<BR>
AMOUNT:</FONT></P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LOAN
TERM:</FONT></P></TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Seventy-Two
    (72) Months</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MATURITY
    DATE:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman,serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">___________,
    20___</FONT></TD></TR>
</TABLE>


<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FOR
VALUE RECEIVED, Borrower, on a joint and several basis, promises to pay to <B>NEEDHAM BANK</B> (hereinafter &ldquo;<U>Lender</U>,&rdquo;
which term shall include its successors and permitted assigns), or its order, the Principal Amount of <FONT STYLE="text-transform: uppercase"><B>___________________________
AND </B></FONT><B>___/100 DOLLARS ($____________________)</B>, or such lesser amount as may be outstanding hereunder, together
with accrued interest thereon or on so much as remains outstanding at the effective Interest Rate herein specified. This Note
is executed and delivered pursuant to the terms and conditions of that certain Commercial Loan and Security Agreement dated as
of January 19, 2021 entered into between Borrower and Lender (the &quot;<U>Loan Agreement</U>&quot; which term shall include all
modifications, extensions, renewals and replacements thereof).</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INTEREST
RATE: Subject to the terms of this Note, the outstanding principal balance of this Note shall accrue interest at a fluctuating
per annum interest rate equal to sum of the Prime Rate (as defined herein) <U>plus</U> fifty (50) basis points (0.50%). As used
herein, the term &quot;<U>Prime Rate</U>&quot; shall mean <FONT STYLE="background-color: white">the Prime Rate as published in
the &ldquo;<I>Money Rates&rdquo;</I> section of <I><U>The Wall Street Journal</U></I>, provided, however, if such rate is, at
any time during the term of this Note, no longer so published by <I><U>The Wall Street Journal</U></I>, upon written notice to
the Borrower, the Lender shall designate a comparable reference rate which shall be deemed the &quot;Prime Rate&quot; hereunder.
</FONT>The effective interest rate under this Note shall be automatically changed contemporaneously with each change in the Prime
Rate, provided, however, that Lender has no obligation to notify Borrower of any changes in the effective rate of interest under
this Note. Notwithstanding anything contained herein to the contrary, at no point in time during the term of this Note shall the
effective interest rate under this Note be less than four percent (4.00%) per annum. Interest on the outstanding principal balance
of this Note shall be calculated on the basis of actual days elapsed and a 360-day year.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">REPAYMENT;
PAYMENT DAY: Commencing on _________ 1, 20___, and thereafter on the first (1<SUP>st</SUP>) day of each succeeding month (the
first (1<SUP>st</SUP>) day of each calendar month being referred to herein as a &ldquo;<U>Payment Day</U>&rdquo;) until the date
which is the twelfth (12<SUP>th</SUP>) month anniversary date of this Note (the &ldquo;<U>Conversion Date</U>&rdquo;) (the period
commencing on the date of this Note and ending on the Conversion Date is referred to herein as the &ldquo;<U>Interest Only Period</U>&rdquo;),
Borrower shall make consecutive monthly payments of accrued interest only, in arrears. Thereafter, commencing with the first Payment
Day following the expiration of the Interest Only Period and continuing thereafter on each successive Payment Day for the remaining
term of this Note (the period commencing with the expiration of the Interest Only Period and ending on the Maturity Date is referred
to herein as the &ldquo;<U>Amortization Period</U>&rdquo;), Borrower shall make consecutive monthly amortizing payments of principal
(calculated by Lender based upon a fully amortizing five (5) year amortization scheduled commencing on the first day of the Amortization
Period), together with a payment of accrued interest, in arrears. The entire outstanding principal balance of this Note, together
with all accrued interest and other fees and charges payable hereunder, shall be due and payable in full on the Maturity Date.
If any Payment Day would otherwise fall on a day that is not a Business Day, such Payment Day will be the next immediate Business
Day. For purposes of this Note, &ldquo;<U>Business Day</U>&rdquo; is a day which is neither a Saturday nor a Sunday nor a legal
holiday on which commercial banks are authorized to be closed in Boston, Massachusetts.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Note constitutes an &ldquo;Equipment Term Note&rdquo; as referenced in the Loan Agreement and the loan evidenced by this Note
represents an advance previously made under the &ldquo;Equipment Loan&rdquo; as referenced in the Loan Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payments
made hereunder shall be applied first to Lender&rsquo;s costs and expenses, then to accrued interest then outstanding, and the
remainder, if any, to any current or past due required principal payment due hereunder.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
any date on which a regularly scheduled payment of accrued interest and/or principal is due under this Note, the Lender may charge
the Operating Account (as defined in the Loan Agreement) with the amount thereof.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
capitalized terms not defined herein shall be given the same meaning as set forth in the Loan Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
occurrence of any Event of Default (after the expiration of any applicable cure or grace period) under the Loan Agreement shall
be an Event of Default hereunder.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PREPAYMENT:
Borrower shall have the right to prepay, without premium or penalty, the principal balance of any outstanding Advance made under
this Note, in whole or in part, together with all accrued and unpaid interest thereon.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower
agrees to pay all expenses including reasonable attorney&rsquo;s fees, which Lender may incur in effecting collection of this
Note, upon an Event of Default or following maturity.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lender
shall not, by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder unless such
waiver be in writing and signed by Lender. A delay, omission or waiver on one occasion shall not be deemed a waiver or bar on
any future occasion of the same or any other right.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower
and each endorser and guarantor of this Note or the obligation represented hereby, waives, to the extent permitted by applicable
law, presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance,
default or enforcement of this Note, except as specifically provided herein with respect to notices of default and pursuant to
the terms of the Loan Agreement; assents to any extension or postponement of the time of payment or any other indulgence and to
the addition or release of any other party primarily or secondarily liable.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
BORROWER AND LENDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF
ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER DOCUMENTS CONTEMPLATED TO BE EXECUTED
IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.
THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR LENDER TO ACCEPT THIS NOTE AND MAKE THE LOAN EVIDENCED HEREBY.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower
and each endorser and guarantor hereby assent to the release in whole or in part of any Collateral (as defined in the Loan Agreement)
held as security herefor, and agrees that Lender need not proceed against any Collateral held as security herefor before proceeding
directly against Borrower or against any endorser or guarantor.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower
shall pay to Lender a late charge in the amount of five (5%) percent of each payment due hereunder which is more than fifteen
(15) days in arrears to offset the additional expenses involved in processing delinquent payments. In addition, from and after
the date on which this Note becomes, or at Lender&rsquo;s option, could become, due and payable (whether accelerated or not),
at maturity, upon default or otherwise, and solely during the existence of such circumstance, interest shall accrue and shall
be due and payable on demand at a rate (the &ldquo;<U>Default Rate</U>&rdquo;) which is four (4%) percent per annum higher than
the Interest Rate hereinabove specified but in no event higher than the maximum interest rate permitted by law. The Default Rate
shall change each time the Interest Rate changes.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower
shall not be obligated to pay and Lender shall not collect interest at a rate higher than the maximum permitted by law or the
maximum that will not subject Lender to any civil or criminal penalties. If, because of the acceleration of maturity the payment
of interest in advance or any other reason, Borrower is required, under the provisions of any Loan Document or otherwise, to pay
interest at a rate in excess of such maximum rate, the rate of interest under such provisions shall immediately and automatically
be reduced to such maximum rate and any payment made in excess of such maximum rate, together with interest thereon at the rate
provided herein from the date of such payment, shall be immediately and automatically applied to the reduction of the unpaid principal
balance of this Note as of the date on which such excess payment was made. If the amount to be so applied to reduction of the
unpaid principal balance exceeds the unpaid principal balance, the amount of such excess shall be refunded by Lender to Borrower.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation of this Note or any other security
document(s) which is not of public record and, in the case of any such destruction or mutilation, upon surrender and cancellation
of such Note or other document(s), Borrower will issue, in lieu thereof, a replacement promissory note or other document(s) in
the same principal amount hereof and otherwise of like tenor at no cost to Borrower.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Note shall be deemed to be a Massachusetts instrument, and all rights and obligations hereunder shall be governed by the laws
of the Commonwealth of Massachusetts and enforced in the courts of the Commonwealth of Massachusetts sitting in the City of Boston.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Borrower&rsquo;s
obligations under this Note are secured by, <I>inter alia</I>, the first priority security interest (subject to any Permitted
Liens) in the Collateral (as defined in the Loan Agreement) granted by Borrower in favor of Lender pursuant to the terms of the
Loan Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[SIGNATURE
PAGE FOLLOWS]</FONT></P>

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<P STYLE="font: 11pt Calibri,sans-serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IN WITNESS WHEREOF, Borrower has duly executed and delivered this Secured Equipment Term Note UNDER SEAL to be effective as of
the date first set forth above.</FONT></P>

<P STYLE="font: 11pt Calibri,sans-serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
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    <TD STYLE="width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 53%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>WITNESS: </B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BORROWER:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BYRNA TECHNOLOGIES INC.,</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Delaware corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-bottom: Black 1pt solid"></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Print Witness Name:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>6
<FILENAME>ex99-1.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: left"><A HREF="byrn-8k_011521.htm"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">BYRNA TECHNOLOGIES INC.&nbsp;8-K</FONT></A></P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0pt 0; text-align: center; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;<IMG SRC="ex991001.jpg" ALT=""></B></FONT></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>Byrna
Technologies Enters into New Credit Facility</B></FONT></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ANDOVER,
MA &ndash; January 22, 2021 - Byrna Technologies Inc. (OTCQB: BYRN) (CSE: BYRN) (&ldquo;Byrna&rdquo; or the &ldquo;Company&rdquo;)
today announced the closing of a new asset based (&ldquo;ABL&rdquo;) revolving credit facility with Needham Bank.</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
new ABL provides Byrna with up to $5.0 million available for general corporate purposes and working capital. In addition to the
$5.0 million revolving line of credit, the Company also entered into an agreement for a $1.5 million equipment line.</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CEO,
Bryan Ganz, commented, &ldquo;<FONT STYLE="background-color: #FEFEFE">Our new credit facility gives us the financial flexibility
to meet the strong demand for our flagship product, the Byrna HD, continue to invest in new product innovation, and expand our
marketing and branding initiatives. We view our ability to acquire a new credit facility as indicative of the confidence our creditors
have in the Company, management team, and future growth strategy.&rdquo;</FONT></FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>About
Byrna Technologies Inc. &nbsp;</B></FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Byrna
is a technology company, specializing in the development, manufacture, and sale of innovative less lethal equipment and munitions.
For more information on the Company, please visit the corporate website <FONT STYLE="color: #0070C0"><U>here</U></FONT> or the
Company's investor relations site <FONT STYLE="color: #0070C0"><U>here.</U></FONT></FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>About
the Byrna<SUP>&reg; </SUP>HD</B>&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Byrna HD is a handheld, CO2 powered, non-lethal option for home safety and personal security with the form factor of a compact
handgun. It provides a safety zone of 60 feet and comes with multiple easily reloadable magazines that can hold five .68 caliber
hard kinetic rounds or highly effective payload rounds designed to burst on impact. Payload rounds include the Company's proprietary
chemical irritant and pepper rounds designed to burn an assailant's eyes and respiratory system upon contact.</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 237.55pt 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Forward
Looking Information</I></B></FONT></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>This
news release contains &quot;forward-looking statements&quot; within the meaning of the U.S. and Canadian securities laws. All
statements contained in this news release, other than statements of current and historical fact, are forward-looking. Often, but
not always, forward-looking statements can be identified by the use of words such as &quot;plans&quot;, &quot;expects&quot;, &quot;intends&quot;,
&quot;anticipates&quot; and &quot;believes&rdquo; and statements that certain actions, events or results &quot;may&quot;, &quot;could&quot;,
&quot;would&quot;, &quot;should&quot;, &quot;might,&quot; &quot;occur&quot; or &quot;be achieved&quot; or &quot;will be taken.&rdquo;
Forward-looking statements include descriptions of currently occurring matters which may continue in the future. Forward-looking
statements in this news release include but are not limited to future uses of the credit facilities. Forward-looking statements
are not, and cannot be, a guarantee of future results or events. Forward-looking statements are based on, among other things,
opinions, assumptions, estimates and analyses that, while considered reasonable by the Company at the date the forward-looking
information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may
cause actual results and events to be materially different from those expressed or implied.</I></FONT></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 11pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Any
number of risk factors could affect our actual results and cause them to differ materially from those expressed or implied by
the forward-looking statements in this news release, including, but not limited to: changes in cash needs including but not limited
to any change due or related to the ongoing pandemic, downturns in&nbsp;the business, changes in suppliers&rsquo; credit terms,
delays in production or fulfillment that impact expected future revenues, changes in public sentiment, competitive landscape,
public safety matters, laws and regulations applicable to the Company&rsquo;s business, merger or acquisition opportunities, or
other future events that may affect the company&rsquo;s cash needs or liquidity.&nbsp;The order in which these factors appear
should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive,
accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. Investors
should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A in our most recent&nbsp;Form&nbsp;10-K
and subsequent filings with the Securities and Exchange Commission (&ldquo;SEC&rdquo;),&nbsp;should understand it is impossible
to predict or identify all such factors or risks, should not consider the foregoing list, or the risks identified in our SEC filings,
to be a complete discussion of all potential risks or uncertainties., and should not place undue reliance on forward-looking information.
The Company assumes no obligation to update or revise any forward-looking information, except as required by applicable law.</I></FONT></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Contact:</B></FONT></P>
        <P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Byrna
Technologies Inc.&nbsp;</FONT></P>
        <P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lisa
Wager, Chief Legal Officer</FONT></P>
        <P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">978-665-2721&nbsp;</FONT></P></TD>
    <TD STYLE="width: 50%"><P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Investor
Relations Counsel:</B></FONT></P>
        <P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Equity Group Inc.&nbsp;</FONT></P>
        <P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fred
Buonocore, CFA&nbsp;&nbsp;212-836-9607</FONT></P>
        <P STYLE="font: 12pt Arial,sans-serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mike
Gaudreau&nbsp;&nbsp; 212-836-9620</FONT></P></TD></TR>
</TABLE>
<P STYLE="margin: 0">&nbsp;</P>
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    <!-- Field: /Page -->

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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
