<SEC-DOCUMENT>0001144204-17-027904.txt : 20170516
<SEC-HEADER>0001144204-17-027904.hdr.sgml : 20170516
<ACCEPTANCE-DATETIME>20170516153823
ACCESSION NUMBER:		0001144204-17-027904
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20170510
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:		Financial Statements and Exhibits
FILED AS OF DATE:		20170516
DATE AS OF CHANGE:		20170516

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LAKELAND INDUSTRIES INC
		CENTRAL INDEX KEY:			0000798081
		STANDARD INDUSTRIAL CLASSIFICATION:	ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
		IRS NUMBER:				133115216
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15535
		FILM NUMBER:		17848481

	BUSINESS ADDRESS:	
		STREET 1:		3555 VETERANS MEMORIAL HIGHWAY
		STREET 2:		SUITE C
		CITY:			RONKONKOMA
		STATE:			NY
		ZIP:			11779
		BUSINESS PHONE:		6319819700

	MAIL ADDRESS:	
		STREET 1:		3555 VETERANS MEMORIAL HIGHWAY
		STREET 2:		SUITE C
		CITY:			RONKONKOMA
		STATE:			NY
		ZIP:			11779
</SEC-HEADER>
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<TYPE>8-K
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<FILENAME>v467073_8k.htm
<DESCRIPTION>FORM 8-K
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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">UNITED STATES</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</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"></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: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</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"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Date of Report (Date of earliest event reported):
<B>May 10, 2017</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; text-align: center"><B>Delaware</B></TD>
    <TD STYLE="width: 34%; text-align: center"><B>0-15535</B></TD>
    <TD STYLE="width: 33%; text-align: center"><B>13-3115216</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or Other Jurisdiction</TD>
    <TD STYLE="text-align: center">(Commission</TD>
    <TD STYLE="text-align: center">(I.R.S. Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">of Incorporation)</TD>
    <TD STYLE="text-align: center">File Number)</TD>
    <TD STYLE="text-align: center">Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 67%; text-align: center"><B>3555 Veterans Memorial Highway, Suite C</B></TD>
    <TD STYLE="width: 33%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>Ronkonkoma, New York</B></TD>
    <TD STYLE="text-align: center"><B>11779-7410</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Address of Principal Executive Offices)</TD>
    <TD STYLE="text-align: center">(Zip Code)</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: center"><B>(631) 981-9700</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</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-indent: 0.5in">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
(see General Instruction A.2. below):</P>

<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"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT>
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<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"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT>
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<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"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT>
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<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"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT>
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

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


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<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 1.01.</TD><TD STYLE="text-align: left">Entry into a Material Definitive Agreement.</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-indent: 0.5in">On May 10, 2017, Lakeland Industries, Inc.
(the &ldquo;Company&rdquo;) entered into a Loan Agreement (the &ldquo;Loan Agreement&rdquo;) with SunTrust Bank (&ldquo;Lender&rdquo;).
The Loan Agreement provides the Company with a secured (i) $20 million revolving credit facility, which includes a $5 million letter
of credit sub-facility, and (ii) $1,575,000 term loan with Lender. The Company may request from time to time an increase in the
revolving credit loan commitment of up to $10 million (for a total commitment of up to $30 million). Borrowing pursuant to the
revolving credit facility is subject to a borrowing base amount calculated as (a) 85% of eligible accounts receivable, as defined,
plus (b) an inventory formula amount, as defined, minus (c) an amount equal to the greater of (i) $1,500,000 or (ii) 7.5% of the
then current revolver commitment amount, minus (d) certain reserves as determined by the Loan Agreement. The credit facility matures
on May 10, 2020 (subject to earlier termination upon the occurrence of certain events of default as set forth in the Loan Agreement).
At the closing, the Company&rsquo;s existing financing facility with AloStar Bank of Commerce was fully repaid and terminated using
proceeds of the revolver in the amount of approximately $3.0 million. Proceeds will also be used to finance working capital and
other general corporate needs.</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-indent: 0.5in">Borrowings under the term loan and the revolving
credit facility bear interest at an interest rate determined by reference whether the loan is a base rate loan or Eurodollar loan,
with the rate election made by the Company at the time of the borrowing or at any time the Company elects pursuant to the terms
of the Loan Agreement. The term loan is payable in equal monthly principal installments of $13,125 each, beginning on June 1, 2017,
and on the first day of each succeeding month, with a final payment of the remaining principal and interest on May 10, 2020 (subject
to earlier termination as provided in the Loan Agreement). For that portion of the term loan that consists of Eurodollar loans,
the term loan shall bear interest at the LIBOR Market Index Rate (&ldquo;LIBOR&rdquo;) plus 2.0% per annum, and for that portion
of the term loan that consists of base rate loans, the term loan shall bear interest at the base rate then in effect plus 1.0%
per annum. All principal and unpaid accrued interest under the revolver credit facility shall be due and payable on the maturity
date of the revolver. For that portion of the revolver loan that consists of Eurodollar loans, the revolver shall bear interest
at LIBOR plus a margin rate of 1.75% per annum for the first six months and thereafter of between 1.5% and 2.0%, depending on the
Company&rsquo;s &ldquo;availability calculation&rdquo; (as defined in the Loan Agreement) and, for that portion of the revolver
that consists of base rate loans, the revolver shall bear interest at the base rate then in effect plus a margin rate of 0.75%
per annum for the first six months and thereafter of between 0.50% and 1.0%, depending on the availability calculation. As of the
closing, the Company elected all borrowings under the Loan Agreement to accrue interest at LIBOR which, as of that date, was 0.99500%.
As such, the initial rate of interest for the revolver is 2.745% per annum and the initial rate of interest for the term loan is
2.995% per annum. The Loan Agreement provides for payment of an unused line fee of between .25% and .50%, depending on the amount
by which the revolving credit loan commitment exceeds the amount of the revolving credit loans outstanding (including letters of
credit), which shall be payable monthly in arrears on the average daily unused portion of the revolver.</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; text-indent: 0.5in">The Company made certain representations
and warranties to Lender in the Loan Agreement that are customary for credit arrangements of this type. The Company also agreed
to maintain a minimum &ldquo;fixed charge coverage ratio&rdquo; (as defined in the Loan Agreement) as of the end of each fiscal
quarter, commencing with the fiscal quarter ending July 31, 2017, of not less than 1.10 to 1.00 during the applicable fiscal quarter,
and agreed to certain negative covenants that are customary for credit arrangements of this type, including restrictions on the
Company&rsquo;s ability to enter into mergers, acquisitions or other business combination transactions, conduct its business, grant
liens, make certain investments, incur additional indebtedness, and make stock repurchases.</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-indent: 0.5in">The Loan Agreement contains customary events
of default that include, among other things (subject to any applicable cure periods and materiality qualifier), non-payment of
principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events,
material judgements, material adverse change, and specified change of control events. Upon the occurrence of an event of default,
Lender may terminate all loan commitments, declare all of the unpaid principal of all loans, all accrued and unpaid interest, and
all other amounts owing under the Loan Agreement and related documents to be immediately due and payable, and may exercise its
other rights and remedies provided for under the Loan Agreement.</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-indent: 0.5in">In connection with the Loan Agreement, the
Company entered into a security agreement (the &ldquo;Security Agreement&rdquo;), dated May 10, 2017, with Lender pursuant to which
the Company granted to Lender a first priority perfected security interest in substantially all real and personal property of the
Company. The Company&rsquo;s obligations under the Loan Agreement are also guaranteed by its subsidiary, Laidlaw Adams &amp; Peck,
Inc., and further secured by a grant of security interests in substantially all of such guarantor&rsquo;s assets.</P>

<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-indent: 0.5in">The foregoing description of the Loan Agreement
and Security Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Loan
Agreement and Security Agreement, copies of which are attached as Exhibits 10.1 and 10.2 to this Current Report on Form 8-K and
are incorporated herein by reference.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 1.02.</TD><TD STYLE="text-align: left">Termination of a Material Definitive Agreement.</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-indent: 0.5in">The disclosures set forth in Item 1.01 are
incorporated by reference to this item. On May 10, 2017, that certain Loan and Security Agreement, dated June 28, 2013, as amended,
by and among the Company and Lakeland Protective Wear Inc., as borrowers, and Alostar Bank of Commerce, and related agreements
between the Company and Lakeland Protective Wear Inc., as borrowers, and Alostar Bank of Commerce, terminated upon the receipt
by Alostar Bank of Commerce of a payoff amount of approximately $3.0 million from the Company.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 2.03.</TD><TD STYLE="text-align: left">Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement
of the Registrant.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The disclosures set forth in Item 1.01 are
incorporated by reference to this item.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 9.01.</TD><TD STYLE="text-align: left">Financial Statements and Exhibits.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left">(d)</TD><TD STYLE="text-align: justify"><I>Exhibits</I>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.5in">10.1</TD><TD>Loan Agreement, dated May 10, 2017, by and between Lakeland Industries, Inc. and SunTrust Bank.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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"></TD><TD STYLE="width: 0.5in">10.2</TD><TD>Security Agreement, dated May 10, 2017, by and between Lakeland Industries, Inc. and SunTrust Bank.</TD></TR></TABLE>

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

<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">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.</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%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">LAKELAND INDUSTRIES, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>President and Chief Executive Officer</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">Date: May 16, 2017</P>

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


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<FILENAME>v467073_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: right; text-indent: 0in"><B>Exhibit 10.1</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: 0in"><B><U>LOAN AGREEMENT</U></B></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">THIS LOAN
AGREEMENT (together with all schedules, riders, exhibits and the Information Certificate annexed hereto from time to time, this
&ldquo;<U>Agreement</U>&rdquo;) is entered into May 10, 2017, between <B>SUNTRUST BANK</B>, a bank organized under the laws of
the State of Georgia (&ldquo;<U>Lender</U>&rdquo;) and <B>LAKELAND INDUSTRIES, INC.</B>, a Delaware corporation (&ldquo;<U>Borrower</U>&rdquo;).
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Terms Schedule or
the Definitions Schedule annexed hereto, as applicable. All schedules, Riders and exhibits, as well as the Information Certificate,
annexed hereto are incorporated herein and made a part hereof.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>LOANS AND TERMS OF REPAYMENT</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0.5in">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="text-transform: none"><U>Revolver Loans</U></FONT>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions of this Agreement, Lender agrees to establish the Commitment pursuant to which Lender shall make loans
to Borrower (each a &ldquo;<U>Revolver Loan</U>&rdquo;) from time to time, on Borrower&rsquo;s request therefor, on any Business
Day during the Term (other than the last Business Day of the Term) in an aggregate principal amount outstanding at any time that
will not result in Lender&rsquo;s Revolver Credit Exposure exceeding the lesser of (i) the Revolver Commitment Amount minus the
Availability Reserve, or (ii) the Borrowing Base at any date of determination. During the term of this Agreement, Borrower shall
be entitled to borrow, prepay and reborrow Revolver Loans in accordance with the terms and conditions of this Agreement; provided,
that Borrower may not borrow or reborrow if a Default or an Event of Default exists or would result therefrom. Lender shall have
no obligation to honor any request for a Revolver Loan on or after the Commitment Termination Date. The initial proceeds of the
Revolver Loans and the proceeds of the Term Loan shall be used to pay existing Indebtedness of Borrower to AloStar Bank, together
with all transaction fees, costs and expenses related thereto. The proceeds of subsequent Revolver Loans may be used by Borrower
solely to pay the Obligations or to make expenditures for other lawful purposes of Borrower to the extent not prohibited by this
Agreement or applicable law. In no event may any Revolver Loans be used to purchase or to carry, or to reduce, retire or refinance
any Indebtedness incurred to purchase or carry, any margin stock, as defined by Regulation U of the Board of Governors of the Federal
Reserve System, or for any related purpose that violates the provisions of Regulation&nbsp;T, U or X of the Board of Governors
of the Federal Reserve System. The Revolver Loans and interest accruing thereon shall be evidenced by the records of Lender (including
the Loan Account) and by the Revolver Note.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
at any time the aggregate Revolver Credit Exposure exceeds the lesser of (i) Revolver Commitment Amount minus the Availability
Reserve, or (ii) the Borrowing Base (an &ldquo;<U>Out-of-Formula Condition</U>&rdquo;), such aggregate Revolver Credit Exposure
shall nevertheless constitute Obligations that are secured by the Collateral and entitled to all benefits thereof. In no event,
however, shall Borrower have any right whatsoever to (1) receive any Revolver Loan, or (2) request the issuance of any Letter of
Credit if, before or after giving effect thereto, there shall exist a Default or an Out-of-Formula Condition. Out-of-Formula Loans
shall be payable immediately on demand. For so long as an Out-of-Formula Condition exists, the Obligations, at the election of
Lender, shall bear interest at the Default Rate.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Borrower has established a controlled disbursement account with Lender, the presentation for payment of any check or other item
for payment drawn on such account at a time when there are insufficient funds to cover such payment shall be deemed to be a request
for a Revolver Loan on the date of such presentation in the amount of the check or other item presented for payment. Lender may
disburse the proceeds of such Revolver Loan directly to the controlled disbursement account or other appropriate account maintained
with Lender. Borrower may also request a Revolver Loan by giving Lender written notice (or telephonic notice promptly confirmed
in writing) substantially in the form of <U>Exhibit 1.1(c)</U> (a &ldquo;<U>Notice of Revolver Borrowing</U>&rdquo;) prior to noon
(Atlanta, Georgia time) on the requested date of the requested Borrowing. Each Notice of Revolving Borrowing shall be irrevocable
and shall specify: (i) the aggregate principal amount of such Borrowing and (ii) the date of such Borrowing (which shall be a Business
Day). The request for the initial Revolver Loan hereunder shall be deemed a request for a Eurodollar Loan and all subsequent Revolver
Loans shall be made as Eurodollar Loans until Borrower shall have elected pursuant to <U>Section 1.5(b)</U> that the Revolver Loans
be a different Type. All Revolving Loans outstanding at any time shall be of the same Type.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
may make extensions of credit under this Agreement based on communications or instructions received from any Person believed by
Lender to be an Authorized Officer of Borrower, or, at the discretion of Lender, if such extensions of credit are necessary to
satisfy any Obligations. Unless payment is otherwise timely made by Borrower, the becoming due of any amount required to be paid
with respect to any of the Obligations (including any interest, fees or Lender Expenses) shall be deemed irrevocably to be a request
(without any requirement for the submission of a notice of borrowing) for a Revolver Loan on the due date of and in an aggregate
amount required to pay such Obligations. Lender shall have no obligation to honor any deemed request for a Revolver Loan on or
after the Commitment Termination Date or when any applicable condition precedent set forth in <U>Section 3</U> hereof is not satisfied,
but may do so in its discretion and without regard to the existence of, and without being deemed to have waived, any Default or
Event of Default. The proceeds of each Revolver Loan deemed requested by Borrower under this <U>Section 1.1(d)</U> may be disbursed
by Lender by way of direct payment of the relevant Obligations.</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><B><U>Term
Loan</U><FONT STYLE="font-size: 10pt">.</FONT></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall extend a term loan to Borrower through a single advance in an amount equal to $1,575,000 (the &ldquo;<U>Term Loan</U>&rdquo;).
The Term Loan shall be made on the Closing Date. The Term Loan shall initially be a Eurodollar Loan until Borrower shall have elected
pursuant to Section 1.5(b) that the Term Loan shall be a different Type. The Term Loan shall be of the same Type of interest rate
selection.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower&rsquo;s
obligation to repay the Term Loan shall be evidenced by an installment promissory note (as renewed, amended, substituted or replaced
from time to time, the &ldquo;<U>Term Note</U>&rdquo;). Lender shall disburse the proceeds of the Term Loan in such other manner
as the parties may agree.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
unpaid principal amount of the Term Note shall be paid in equal monthly principal installments of $13,125 each, beginning on June
1, 2017, and on the first day of each succeeding month until the Commitment Termination Date, when the unpaid principal and interest
evidenced by the Term Note shall be fully due and payable.</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payments</U></B>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
payments with respect to any of the Obligations shall be made to Lender in dollars on the date when due, in immediately available
funds, without any offset or counterclaim. Except where evidenced by Notes or other instruments made by Borrower to Lender specifically
containing payment provisions in conflict with this <U>Section 1.3</U> (in which event the conflicting provisions of such instruments
shall govern and control), the Obligations shall be due and payable as follows:</P>

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<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;&nbsp;Principal
payable on account of the Revolver Loans shall be due and payable immediately upon (x) receipt by Lender or Borrower of any proceeds
of any of the Accounts or Inventory, to the extent of such proceeds and (y) the Commitment Termination Date;</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;&nbsp;Interest
accrued on the principal balance of the Revolver Loans and the Term Loan during the Term shall be due and payable on (x)&nbsp;the
first day of each month, computed in arrears for the prior month; and (y)&nbsp;the Commitment Termination Date; interest accruing
at the Default Rate or after the Term shall be payable on demand; and</P>

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<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;&nbsp;All
other Obligations requiring the payment of money, if any, shall be due and payable as and when provided in the Loan Documents,
or, if the date of payment is not specified in the Loan Documents, <B>on demand</B>.</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever
any payment of any Obligations shall be due on a day that is not a Business Day, the date for payment thereof shall be extended
to the next succeeding Business Day and interest thereon shall continue to accrue and shall be payable for such extended period
of time. If any amount applied to the Obligations is subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other Person, then the Obligations or part thereof originally intended to
be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such amount
had not been made or received. The provisions hereof shall survive the Commitment Termination Date and payment in full of the Obligations.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><B>1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Letters
of Credit</U>. </B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Lender,
in reliance upon the agreements set forth herein, agrees to issue, at the request of Borrower, Letters of Credit for the account
of Borrower on the terms and conditions hereinafter set forth; <U>provided</U>, that (i) each Letter of Credit shall expire on
the earlier of (A)&nbsp;the stated expiry date of such Letter of Credit (or in the case of any renewal or extension thereof, the
expiry date of any such renewal or extension) and (B) the date that is five (5)&nbsp;Business Days prior to the Commitment Termination
Date; (ii) each Letter of Credit shall be in a stated amount of at least $25,000;<B> </B>and (iii) Borrower may not request any
Letter of Credit, if, after giving effect to such issuance (A) the aggregate LC&nbsp;Exposure would exceed the LC Commitment or
(B) the aggregate amount of outstanding Revolver Loans plus the LC Exposure would exceed the lesser of (I) the Revolver Commitment
Amount less Availability Reserve, or (II) the Borrowing Base.</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"><FONT STYLE="font-size: 10pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>To
request the issuance of a Letter of Credit (or any amendment, renewal or extension of an outstanding Letter of Credit), Borrower
shall give Lender irrevocable written notice at least five (5) Business Days prior to the requested date of such issuance specifying
the date (which shall be a Business Day) such Letter of Credit is to be issued (or amended, extended or renewed, as the case may
be), the expiration date of such Letter of Credit, the amount of such Letter of Credit, the name and address of the beneficiary
thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. In addition
to the satisfaction of the conditions in <U>Section&nbsp;3.2</U>, the issuance of such Letter of Credit (or any amendment which
increases the amount of such Letter of Credit) will be subject to the following further conditions: (i) such Letter of Credit shall
be in such form and contain such terms as Lender shall approve and (ii) Borrower shall have executed and delivered any additional
applications, agreements and instruments relating to such Letter of Credit as Lender shall reasonably require; <U>provided</U>,
that in the event of any conflict between such applications, agreements or instruments and this Agreement, the terms of this Agreement
shall control.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Lender
shall examine all documents purporting to represent a demand for payment under a Letter of Credit promptly following its receipt
thereof. Lender shall notify Borrower of such demand for payment and whether Lender has made or will make a LC Disbursement thereunder;
<U>provided</U>, that any failure to give or delay in giving such notice shall not relieve Borrower of its obligation to reimburse
Lender with respect to such LC Disbursement. Borrower shall be irrevocably and unconditionally obligated to reimburse Lender for
any LC Disbursements paid by Lender in respect of such drawing, without presentment, demand or other formalities of any kind. Unless
Borrower shall have notified Lender prior to 11:00 a.m. (Atlanta, Georgia<B> </B>time) on the Business Day immediately prior to
the date on which such drawing is honored that Borrower intend to reimburse Lender for the amount of such drawing in funds other
than from the proceeds of Revolving Loans, Borrower shall be deemed to have timely given notice of a request for a Revolver Loan
that is a Eurodollar Loan to Lender<B> </B>on the date on which such drawing is honored in an exact amount due to Lender; <U>provided</U>,
that for purposes solely of such Borrowing, the conditions precedent set forth in <U>Section&nbsp;3.2</U> hereof shall not be applicable.
The proceeds of such Borrowing shall be applied to reimburse Lender for such LC Disbursement<B>. </B></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"><FONT STYLE="font-size: 10pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
any Event of Default shall occur and be continuing, on the Business Day that Borrower receive notice from Lender demanding the
deposit of Cash Collateral pursuant to this paragraph, Borrower shall deposit in an account with Lender, in the name of Lender
and for its benefit, an amount in cash equal to 105% of the LC Exposure as of such date plus any accrued and unpaid fees thereon;
<U>provided</U>, that the obligation to deposit such Cash Collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or notice of any kind, upon the occurrence of any Event of Default with respect
to Borrower described in <U>Section 7.1(d)</U>. Such deposit shall be held by Lender as collateral for the payment and performance
of the obligations of Borrower under this Agreement. Lender shall have exclusive dominion and control, including the exclusive
right of withdrawal, over such account. Borrower agrees to execute any documents and/or certificates to effectuate the intent of
this paragraph. Other than any interest earned on the investment of such deposits, which investments shall be made at the option
and sole discretion of Lender and at Borrower&rsquo;s risk and expense, such deposits shall not bear interest. Interest and profits,
if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by Lender to the reimbursement
of LC Disbursements for which it had not been reimbursed and to the extent so applied, shall be held for the satisfaction of the
reimbursement obligations of Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated be
applied to satisfy other obligations of Borrower under this Agreement and the other Loan Documents. If Borrower is required to
provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent
not so applied as aforesaid) shall be returned to Borrower within three Business Days after all Events of Default have been cured
or waived.</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"><FONT STYLE="font-size: 10pt">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Borrower&rsquo;s
obligation to reimburse LC Disbursements hereunder shall be absolute, unconditional and irrevocable and shall be performed strictly
in accordance with the terms of this Agreement under all circumstances whatsoever and irrespective of any of the following circumstances:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
lack of validity or enforceability of any Letter of Credit or this Agreement;</FONT></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
existence of any claim, set-off, defense or other right which Borrower or any Subsidiary or Affiliate of Borrower may have at any
time against a beneficiary or any transferee of any Letter of Credit (or any Persons or entities for whom any such beneficiary
or transferee may be acting), Lender or any other Person, whether in connection with this Agreement or the Letter of Credit or
any document related hereto or thereto or any unrelated transaction; </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(iii)
Any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(iv)
Payment by Lender under a Letter of Credit against presentation of a draft or other document to Lender that does not comply with
the terms of such Letter of Credit;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(v)
Any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions
of this <U>Section 1.3</U>, constitute a legal or equitable discharge of, or provide a right of setoff against, Borrower&rsquo;s
obligations hereunder; or</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(vi)
The existence of a Default or an Event of Default.</FONT></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">Lender shall
have no liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any
payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to above), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter
of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of Lender; <U>provided</U>, that the foregoing shall not be construed to excuse
Lender from liability to Borrower to the extent of any actual direct damages (as opposed to special, indirect (including claims
for lost profits or other consequential damages), or punitive damages, claims in respect of which are hereby waived by Borrower
to the extent permitted by applicable law) suffered by Borrower that are caused by Lender&rsquo;s failure to exercise due care
when determining whether drafts or other documents presented under a Letter of Credit comply with the terms thereof. The parties
hereto expressly agree, that in the absence of gross negligence or willful misconduct on the part of Lender (as finally determined
by a court of competent jurisdiction), Lender shall be deemed to have exercised due care in each such determination. In furtherance
of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented that
appear on their face to be in substantial compliance with the terms of a Letter of Credit Lender may, in its sole discretion, either
accept and make payment upon such documents without responsibility for further investigation; regardless of any notice or information
to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit.</P>

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


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<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"><FONT STYLE="font-size: 10pt">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Letter of Credit shall be subject to the Uniform Customs and Practices for Documentary Credits (1993 Revision), International Chamber
of Commerce Publication No. 500, as the same may be amended from time to time, or to ISP 98 (International Standby Practices),
as the same may be amended from time to time, and, to the extent not inconsistent therewith, the governing law of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><B>1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interest
Rates</U>. </B></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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Obligations shall bear interest (i) for that portion of the Term Loan that consists of Base Rate Loans, the Base Rate in effect
from time to time plus 1.00% per annum; (ii) for that portion of the Term Loan that consists of Eurodollar Loans, the LIBOR Market
Index Rate plus 2.00% per annum; (iii) for that portion of the Revolver Loans that consists of Base Rate Loans, the Base Rate in
effect from time to time, plus the Applicable Margin; (iv) for that portion of the Revolver Loans that consists of Eurodollar Loans,
the LIBOR Market Index Rate, plus the Applicable Margin; and (v) if any other Loan Obligation (including, to the extent permitted
by law, interest not paid when due), at the Base Rate in effect from time to time, plus the Applicable Margin for Base Rate Loans.
The Base Rate shall be determined daily on each Business Day and shall be increased or decreased, as applicable, automatically
on the date of each such determination. All interest chargeable under this Agreement shall be computed on the basis of the actual
number of days elapsed in a year of 360 days. At any time that an Event of Default exists, the principal amount of the Obligations
outstanding shall bear interest at the Default Rate at Lender&rsquo;s option. The LIBOR Market Index Rate on the date hereof is
0.99500% and therefore (A) the rate of interest in effect hereunder for Revolving Loans which consist of Eurodollar Loans, expressed
in simple interest terms as of the date hereof, is 2.745% per annum and (B) the rate of interest in effect hereunder for that portion
of the Term Loan bearing interest as a Eurodollar Loan, expressed in simple interest terms as of the date hereof, is 2.99500% per
annum.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Loan may be converted to a different Type at the election of Borrower pursuant to this <U>Section 1.5</U>. Borrower may make such
election by giving Lender written notice (or telephonic notice promptly confirmed in writing) substantially in the form of <U>Exhibit
1.5(b)</U> attached hereto (a &ldquo;<U>Notice of Conversion</U>&rdquo;) one (1) Business Day prior to the requested date of a
conversion of the Loans to a different Type. Each such Notice of Conversion shall be irrevocable and shall specify the effective
date of the election (which shall be a Business Day) made pursuant to such Notice of Conversion, and whether the resulting interest
rate election is for Base Rate Loans or Eurodollar Loans. Until Borrower has delivered to Lender a Notice of Conversion, Borrower
shall be deemed to have elected all Loans to bear interest as Eurodollar Loans. Borrower shall not be permitted to deliver more
than four (4) Notices of Conversion during any Fiscal Year. </FONT></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><B>1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fees
and Reimbursement of Expenses</U>. </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall pay to Lender the fees set forth in Item 5(a) of the Terms Schedule.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall reimburse Lender for all Lender Expenses and all other expenses as set forth in Item 5(b) of the Terms Schedule.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
fees shall be fully earned by Lender when due and payable; except as otherwise set forth herein or required by applicable law,
shall not be subject to rebate, refund or proration; are and shall be deemed to be for compensation for services; and are not,
and shall not be deemed to be, interest or any other charge for the use, forbearance or detention of money. All amounts chargeable
to Borrower under this <U>Section&nbsp;1.6</U> shall be Obligations secured by the Collateral, shall be payable on demand to Lender,
and shall bear interest from the date such demand is made until paid in full at the rate applicable to Revolver Loans from time
to time.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maximum
Interest</U><FONT STYLE="font-weight: normal">. In no event shall the aggregate of all amounts that are contracted for, charged
or received by Lender pursuant to the terms of the Loan Documents and that are deemed interest under applicable law exceed the
highest rate permissible under any applicable law, that a court of competent jurisdiction shall, in a final determination, deem
applicable hereto. If any interest is charged or received in excess of the maximum rate allowable under applicable law (&ldquo;<U>Excess</U>&rdquo;),
Borrower acknowledges and stipulates that any such charge or receipt shall be the result of an accident and bona fide error, and
such Excess, to the extent received, shall be applied first to reduce the principal Obligations and the balance, if any, returned
to Borrower, it being the intent of the parties hereto not to enter into a usurious or other illegal relationship. The provisions
of this Section shall be deemed to be incorporated into every Loan Document (whether or not any provision of this Section is referred
to therein). </FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loan
Account; Account Stated</U><FONT STYLE="font-weight: normal">. Lender shall maintain for its books an account (&ldquo;<U>Loan Account</U>&rdquo;)
evidencing the Obligations resulting from each Loan, including the amount of principal and interest payable from time to time hereunder.
Any failure of Lender to make an entry in the Loan Account, or any error in doing so, shall not limit or otherwise affect the agreement
of Borrower to repay the Obligations in accordance with the Loan Documents. The entries made in the Loan Account shall constitute
rebuttably presumptive evidence of the information therein, provided that if a copy of information contained in the Loan Account
is provided to an Obligor, or an Obligor inspects the Loan Account at any time, then the information contained in the Loan Account
shall be conclusive and binding on such Obligor for all purposes, absent manifest error, unless such Obligor notifies Lender in
writing within 30 days after such Obligor&rsquo;s receipt of such copy or such Obligor&rsquo;s inspection of the Loan Account of
its intention to dispute the information contained therein.</FONT></P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Application
of Payments and Collections</U><FONT STYLE="font-weight: normal">. Borrower irrevocably waives the right to direct the application
of any and all payments and collections at any time or hereafter received by Lender from or on behalf of Borrower, and agrees that
Lender shall have the continuing right to apply and reapply any and all such payments and collections received at any time hereafter
against the Obligations, in such manner as Lender may deem advisable. </FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Collateral</U><FONT STYLE="font-weight: normal">.
All of the Obligations shall be secured by a continuing security interest and Lien upon all personal property of Borrower as provided
in the Security Agreement and the other Security Documents.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>TERM AND TERMINATION</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Term</U><FONT STYLE="font-weight: normal">.
Subject to Lender&rsquo;s right to cease making Loans and other extensions of credit to Borrower at any time on or after the Commitment
Termination Date, the Commitment shall become effective on the date of this Agreement (subject to satisfaction of the conditions
set forth in Section 3 hereof) and shall expire at the close of business on the day specified in Item&nbsp;6 of the Terms Schedule
(the &ldquo;<U>Term</U>&rdquo;), unless sooner terminated as provided in Section 2.2 hereof. </FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination;
Effect of Termination</U><FONT STYLE="font-weight: normal">. Lender may terminate the Commitment, without notice, at any time that
an Event of Default exists. The Commitment shall automatically terminate upon the occurrence of an Event of Default resulting from
the commencement of an Insolvency Proceeding by or against Borrower. Borrower may terminate the Commitment (in whole, but not in
part) by giving Lender at least 30 days prior written notice of Borrower&rsquo;s desire to terminate the Commitment, which notice
shall be irrevocable (unless otherwise agreed in writing by Lender). On the date of a termination by Borrower or Lender, all Obligations
shall become immediately due and payable without notice to or demand upon Borrower and shall be paid to Lender in cash or by wire
transfer of immediately available funds. No termination of the Commitment shall in any way affect any of Lender&rsquo;s rights
or remedies, or any of Borrower&rsquo;s duties or obligations under the Loan Documents, or any Liens held by Lender.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Inability
to Determine Interest Rates</U><FONT STYLE="font-weight: normal">. If, prior to the commencement of any Interest Period for any
Eurodollar Loan:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall have determined (which determination shall be conclusive and binding upon Borrower) that, by reason of circumstances affecting
the relevant interbank market, adequate means do not exist for ascertaining the LIBOR Market Index Rate for such Interest Period,
or </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall have received notice that the LIBOR Market Index Rate does not adequately and fairly reflect the cost to Lender of making,
funding or maintaining their Eurodollar Loans for such Interest Period,</FONT></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">Lender shall
give written notice (or telephonic notice, promptly confirmed in writing) to Borrower as soon as practicable thereafter. Until
Lender shall notify Borrower that the circumstances giving rise to such notice no longer exist, (i)&nbsp;the obligations of Lender
to make Eurodollar Loans or to continue or convert outstanding Loans as or into Eurodollar Loans shall be suspended and (ii) all
such affected Loans shall be converted into Base Rate Loans on the last day of the then current Interest Period applicable thereto
unless Borrower prepays such Loans in accordance with this Agreement. Unless Borrower notifies Lender at least one (1) Business
Day before the date of any Eurodollar Loan for which a Notice of Revolving Borrowing or a Notice of Conversion has previously been
given that it elects not to borrow, continue or convert to a Eurodollar Loan on such date, then such Revolving Loan shall be made
as, continued as or converted into a Base Rate Loan.<B> </B></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Illegality</U><FONT STYLE="font-weight: normal">.
If any Change in Law shall make it unlawful or impossible for Lender to make, maintain or fund any Eurodollar Loan, Lender shall
promptly give notice thereof to Borrower, whereupon until the circumstances giving rise to such suspension no longer exist, the
obligation of Lender to make Eurodollar Loans, or to continue or convert outstanding Loans as or into Eurodollar Loans, shall be
suspended. In the case of the making of a Eurodollar Loan, Lender&rsquo;s Revolver Loan shall be made as a Base Rate Loan as part
of the same Revolver Loan for the same Interest Period and, if the affected Eurodollar Loan is then outstanding, such Loan shall
be converted to a Base Rate Loan either (i) on the last day of the then current Interest Period applicable to such Eurodollar Loan
if Lender may lawfully continue to maintain such Loan to such date or (ii) immediately if Lender shall determine that it may not
lawfully continue to maintain such Eurodollar Loan to such date. Notwithstanding the foregoing, Lender shall, prior to giving such
notice to Lender, designate a different Applicable Lending Office if such designation would avoid the need for giving such notice
and if such designation would not otherwise be disadvantageous to Lender in the good faith exercise of its discretion.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Increased
Costs</U><FONT STYLE="font-weight: normal">.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any Change in Law shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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"><FONT STYLE="font-weight: normal">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;impose,
modify or deem applicable any reserve, special deposit or similar requirement that is not otherwise included in the determination
of the LIBOR Market Index Rate hereunder against assets of, deposits with or for the account of, or credit extended by, Lender
(except any such reserve requirement reflected in the LIBOR Market Index Rate); or</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;impose
on Lender or the eurodollar interbank market any other condition affecting this Agreement or any Eurodollar Loans made by Lender
or any Letter of Credit or any participation therein; </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">and the result
of any of the foregoing is to increase the cost to Lender of making, converting into, continuing or maintaining a Eurodollar Loan
or to increase the cost to Lender of participating in or issuing any Letter of Credit or to reduce the amount received or receivable
by Lender hereunder (whether of principal, interest or any other amount),</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">then, from
time to time, Lender may provide Borrower with written notice and demand with respect to such increased costs or reduced amounts,
and within five (5) Business Days after receipt of such notice and demand Borrower shall pay to Lender such additional amounts
as will compensate Lender for any such increased costs incurred or reduction suffered.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Lender shall have determined that on or after the date of this Agreement any Change in Law regarding capital or liquidity requirements
has or would have the effect of reducing the rate of return on Lender&rsquo;s capital (or on the capital of the Parent Company
of Lender) as a consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which
Lender, or such Parent Company could have achieved but for such Change in Law (taking into consideration Lender&rsquo;s policies
or the policies of such Parent Company with respect to capital adequacy and liquidity), then, from time to time, Lender may provide
Borrower with written notice and demand with respect to such reduced amounts, and within five (5) Business Days after receipt of
such notice and demand Borrower shall pay to Lender such additional amounts as will compensate Lender or such Parent Company for
any such reduction suffered.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
certificate of Lender setting forth the amount or amounts necessary to compensate Lender or the Parent Company of Lender specified
in subsection (a) or (b) of this Section shall be delivered to Borrower and shall be conclusive, absent manifest error.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure
or delay on the part of Lender to demand compensation pursuant to this Section shall not constitute a waiver of Lender&rsquo;s
right to demand such compensation.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-size: 10pt"><U>Funding
Indemnity</U>. <FONT STYLE="font-weight: normal">In the event of (a) the payment of any principal of a Eurodollar Loan other than
on the last day of the Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion or
continuation of a Eurodollar Loan other than on the last day of the Interest Period applicable thereto, or (c) the failure by Borrower
to borrow, prepay, convert or continue any Eurodollar Loan on the date specified in any applicable notice (regardless of whether
such notice is withdrawn or revoked), then, in any such event, Borrower shall compensate Lender, within five (5) Business Days
after written demand from Lender, for any loss, cost or expense attributable to such event. In the case of a Eurodollar Loan, such
loss, cost or expense shall be deemed to include an amount determined by Lender to be the excess, if any, of (A) the amount of
interest that would have accrued on the principal amount of such Eurodollar Loan if such event had not occurred at the LIBOR Market
Index Rate applicable to such Eurodollar Loan for the period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest
Period for such Eurodollar Loan) over (B) the amount of interest that would accrue on the principal amount of such Eurodollar Loan
for the same period if the LIBOR Market Index Rate were set on the date such Eurodollar Loan was prepaid or converted or the date
on which Borrower failed to borrow, convert or continue such Eurodollar Loan. A certificate as to any additional amount payable
under this Section submitted to Borrower by Lender shall be conclusive, absent manifest error.</FONT></FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-size: 10pt"><U>Taxes</U><FONT STYLE="font-weight: normal">.</FONT></FONT></P>

<P STYLE="font: bold 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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Defined
Terms</U>. For purposes of this <U>Section 2.7</U>, the term &ldquo;applicable law&rdquo; includes FATCA.</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payments
Free of Taxes</U>. Any and all payments by or on account of any obligation of any Obligor under any Loan Document shall be made
without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the
good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment
by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall
timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if
such Tax is an Indemnified Tax, then the sum payable by the applicable Obligor shall be increased as necessary so that after such
deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under
this Section) Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.</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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment
of Other Taxes by Borrower</U>. Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable
law, or at the option of Lender timely reimburse it for the payment of, any Other Taxes.</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">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
by Borrower</U>. Borrower shall indemnify Lender, within 10 days after written demand therefor, for the full amount of any Indemnified
Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid
by Lender or required to be withheld or deducted from a payment to Lender and any reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. Such demand shall include a certificate identifying the nature and the amount of Indemnified Taxes for which indemnification
is sought.</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">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Evidence
of Payments</U>. As soon as practicable after any payment of Taxes by Borrower or any other Obligor to a Governmental Authority
pursuant to this Section 2.7, Borrower or other Obligor shall deliver to Lender the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to Lender.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Treatment
of Certain Refunds</U>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund
of any Taxes as to which it has been indemnified pursuant to this <U>Section 2.7</U> (including by the payment of additional amounts
pursuant to this <U>Section 2.7</U>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent
of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses
(including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified
party the amount paid over pursuant to this paragraph (f) (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.
Notwithstanding anything to the contrary in this paragraph (f), in no event will the indemnified party be required to pay any amount
to an indemnifying party pursuant to this paragraph (f) the payment of which would place the indemnified party in a less favorable
net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such
refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect
to such Tax had never been paid; <U>provided</U>, <U>however</U>, a partial payment shall be required to the extent that there
is not a less favorable after-tax provision. This paragraph shall not be construed to require any indemnified party to make available
its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other
Person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival</U>.
Each party&rsquo;s obligations under this <U>Section 2.7</U> shall survive any assignment of rights by, or the replacement of,
Lender, the termination of the Commitment and the repayment, satisfaction or discharge of all obligations under any Loan Document.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>CONDITIONS PRECEDENT</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Closing
Conditions</U><FONT STYLE="font-weight: normal">. Lender shall not be obligated to make any extension of credit hereunder unless,
on or before May 10</FONT>, <FONT STYLE="font-weight: normal">2017,</FONT> <FONT STYLE="font-weight: normal">each of the following
conditions has been satisfied:</FONT></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"><FONT STYLE="font-size: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Borrower
and each other Person that is to be a party to any Loan Document shall have executed and delivered each such Loan Document, all
in form and substance satisfactory to Lender;</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"><FONT STYLE="font-size: 10pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Borrower
shall cause to be delivered to Lender the documents described in Item 7 of the Terms Schedule, each in form and substance satisfactory
to Lender;</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"><FONT STYLE="font-size: 10pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Lender
shall have received evidence satisfactory to it that there are no Liens upon any Collateral other than the Permitted Liens;</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"><FONT STYLE="font-size: 10pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Lender
shall have received a final payoff letter from any Person whose outstanding loans to Borrower are to be satisfied from proceeds
of the initial Loans hereunder;</P>

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


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<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"><FONT STYLE="font-size: 10pt">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Lender
shall have received a Borrowing Base Certificate prepared as of a date satisfactory to Lender, which indicates that, upon giving
effect to the initial funding of Loans and the issuance of Letters of Credit as of the Closing Date, plus the payment by Borrower
of all fees and expenses incurred in connection herewith, plus the payment of all payables that are unpaid beyond their customary
payment terms as of the Closing Date, Availability shall be not less than $3,500,000 as of the Closing 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"><FONT STYLE="font-size: 10pt">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Lender
shall have received assurances, satisfactory to it, that no litigation is pending or threatened against any Obligor which Lender
determines may have a Material Adverse Effect;</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"><FONT STYLE="font-size: 10pt">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Borrower
shall have satisfied such additional closing conditions as are set forth in Items 7 and 8 of the Terms Schedule; and</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"><FONT STYLE="font-size: 10pt">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
of the conditions precedent set forth in any Rider is satisfied.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Ongoing
Conditions Precedent</U><FONT STYLE="font-weight: normal">. Lender shall not be obligated to make any extension of credit unless
each of the following conditions is satisfied at the time of the requested extension of credit and after giving effect thereto:</FONT></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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall have received from Borrower a notice of borrowing and such other information as Lender reasonably requests in connection
with the funding of any Loan or other extension of credit;</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Default or Event of Default shall exist (whether before or after giving effect to the funding of any Loan or other extension of
credit);</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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
representations and warranties made by any Obligor in any of the Loan Documents, or otherwise in writing to Lender, as updated
in accordance with Section 4.16, shall be true and correct in all material respects with the same effect as though the representations
and warranties have been made on the date of the funding of the requested Loan or other extension of credit, except to the extent
such representations and warranties relate solely to a specific earlier date, in which case such representations and warranties
shall continue to be true and correct in all material respects as of such specific earlier date; and</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">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall have received each Borrowing Base Certificate then required by the terms of this Agreement.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>BORROWER&rsquo;S REPRESENTATIONS AND WARRANTIES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.05pt">To induce
Lender to enter into this Agreement and to extend credit, Borrower makes the following representations and warranties, all of which
shall be deemed made as of the date hereof and on each date that a request for an extension of credit hereunder is made:</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.05pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Existence
and Rights; Predecessors</U><FONT STYLE="font-weight: normal">. Borrower is an entity as described in the Closing Certificate,
duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and is duly qualified
or licensed to transact businesses in all places where the failure to be so qualified could reasonably be expected to have a Material
Adverse Effect; has the right and power to enter into and discharge all of its obligations under the Loan Documents, each of which
constitutes a legal, valid and binding obligation of Borrower, enforceable against it in accordance with its terms, subject only
to bankruptcy and similar laws affecting creditors&rsquo; rights generally; and has the power, authority, rights and franchises
to own its property and to carry on its business as presently conducted. Except as may be otherwise described in the Information
Certificate, during the 5 year period prior to the date of this Agreement, Borrower has not been a party to any merger, consolidation
or acquisition of all or substantially all of the assets or equity interests of any other Person and has not changed its legal
status or the jurisdiction in which it is organized. </FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Authority</U><FONT STYLE="font-weight: normal">.
The execution, delivery and performance of the Loan Documents by Borrower and each other Person (other than Lender) executing any
Loan Document have been duly authorized by all necessary actions of such Person, and do not and will not violate any provision
of law, or any writ, order or decree of any court or governmental authority or agency, or any provision of the Organic Documents
of such Person, and do not and will not result in a breach of, or constitute a default or require any consent under, or result
in the creation of any Lien upon any property or assets of such Person pursuant to, any law, regulation, instrument or agreement
to which any such Person is a party or by which any such Person or its properties may be subject or bound.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Litigation</U><FONT STYLE="font-weight: normal">.
Except as set forth in the Information Certificate, there are no actions or proceedings, pending as to the knowledge of Borrower
or threatened, against any Obligor before any court or administrative agency in which amounts in dispute exceed $25,000, and Borrower
has no knowledge or belief of any pending, threatened or imminent, governmental investigations or claims, complaints, actions or
prosecutions involving Borrower or any Obligor. Borrower is not in default with respect to any order, writ, injunction, decree
or demand of any court or any governmental or regulatory authority.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Financial
Condition</U><FONT STYLE="font-weight: normal">. All financial statements and information relating to Borrower which have been
delivered to Lender pursuant to this Agreement have been prepared in accordance with GAAP, unless otherwise stated therein and
except for interim financial statements which (i) will not have all the footnotes required by GAAP and (ii) other than Fiscal Quarters,
will not have all the footnotes required by GAAP and (ii) other than Fiscal Quarters, will not have Statements of Cash Flows, and
fairly and reasonably present Borrower&rsquo;s financial condition. There has been no material adverse change in the financial
condition of Borrower since the date of the most recent of such financial statements submitted to Lender. Borrower has no knowledge
of any material liabilities, contingent or otherwise, that are not reflected in such financial statements and information. Borrower
has not entered into any special commitments or contracts which are not reflected in such financial statements or information and
which may have a material adverse effect upon Borrower&rsquo;s financial condition, operations or business as now conducted. Borrower
is, and after consummating the transactions described in the Loan Documents will be, Solvent.</FONT></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Taxes</U><FONT STYLE="font-weight: normal">.
Borrower has filed all tax returns that it is required to file, and has paid all Taxes shown on said returns as well as all Taxes
shown on all assessments received by it to the extent that such Taxes are not being Properly Contested; and Borrower is not subject
to any tax Liens and has not received any notice of deficiency or other official notice to pay any Taxes. </FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Material
Agreements</U><FONT STYLE="font-weight: normal">. Borrower is not a party to any agreement or instrument materially adversely affecting
its business, assets, operations or condition nor is Borrower in default in the performance, observance or fulfillment of any material
obligations, covenants or conditions contained in any agreement or instrument where such default could reasonably be expected to
have a Material Adverse Effect.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title
to Assets; Intellectual Property</U><FONT STYLE="font-weight: normal">. Borrower has good title to its assets and the same are
not subject to any Liens other than Permitted Liens. Borrower possesses all necessary trademarks, trade names, copyrights, patents,
patent rights and licenses to conduct business as now operated, without any known conflict with the rights of others, including
items described in the Information Certificate.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compliance
With Laws</U><FONT STYLE="font-weight: normal">. Borrower, and its properties, business operations and leaseholds, are in compliance
in all material respects with all applicable laws.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Business
and Collateral Locations</U><FONT STYLE="font-weight: normal">. Borrower&rsquo;s chief executive office, principal place of business,
office where Borrower&rsquo;s business records are located and all other places of business of Borrower are as described in the
Information Certificate or contemplated and/or permitted by Section 4 of the Security Agreement; and except as otherwise described
in the Information Certificate, none of the Collateral is in the possession of any Person other than Borrower, other than Inventory
in-transit to Borrower or its customers or Inventory held by subcontractors for processing or fabrication.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>ERISA</U><FONT STYLE="font-weight: normal">.
Except as otherwise set forth in the Information Certificate, Borrower has no Plan. No Plan established or maintained by Borrower
had, has, or is expected to have a material accumulated funding deficiency (as such term is defined in Section 302 of ERISA), and
no material liability to the Pension Benefit Guaranty Corporation, has been or is expected by Borrower to be, incurred with respect
to any such Plan by Borrower. Borrower is not required to contribute to or is not contributing to a Multiemployer Plan and has
no withdrawal liability to any Plan, nor has any reportable event referred to in Section 4043(b) of ERISA occurred that has resulted
or could result in liability of Borrower; and Borrower does not have any reason to believe that any other event has occurred that
has resulted or could result in liability of Borrower as set forth above.</FONT></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Labor
Relations</U><FONT STYLE="font-weight: normal">. Except as described in the Information Certificate, neither Borrower nor any of
its Subsidiaries is a party to or bound by any collective bargaining agreement, management agreement or consulting agreement. On
the date hereof, there are no material grievances, disputes or controversies with any union or any other organization of Borrower&rsquo;s
or any Subsidiary&rsquo;s employees, or, to Borrower&rsquo;s knowledge, any threats of strikes, work stoppages or any asserted
pending demands for collective bargaining by any union or organization.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Anti-Terrorism
Laws</U><FONT STYLE="font-weight: normal">. Neither Borrower nor any of its Affiliates is in violation of any anti-terrorism law,
including the PATRIOT Act, engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions set forth in any anti-terrorism law, including the PATRIOT Act; or
is any of the following (each a &ldquo;<U>Blocked Person</U>&rdquo;): (i) a Person that is listed in the annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224; (ii) a Person owned or controlled by, or acting for or on behalf of, any
Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224; (iii) a Person
or entity with which any bank or other financial institution is prohibited from dealing or otherwise engaging in any transaction
by any anti-terrorism law; (iv) a Person or entity that commits, threatens or conspires to commit or supports &ldquo;terrorism&rdquo;
as defined in Executive Order No. 13224; (v) a Person or entity that is named as a &ldquo;specially designated national&rdquo;
on the most current list published by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any
replacement website or other replacement official publication of such list; or (vi) a Person who is affiliated with a Person listed
above. Neither Borrower nor its Affiliates conducts any business or engages in making or receiving any contribution of funds, goods
or services to or for the benefit of any Blocked Person or deals in, or otherwise engages in any transaction relating to, any property
or interests in property blocked pursuant to Executive Order No. 13224.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Capital
Structure</U><FONT STYLE="font-weight: normal">. As of the date hereof, the Information Certificate sets forth (a) the correct
name of each Subsidiary, its jurisdiction or organization and the percentage of its Equity Interests owned by Borrower. Borrower
has good title to all of the Equity Interests it purports to own in each of its Subsidiaries, free and clear of any Lien other
than Permitted Liens. Since the date of the last audited financial statements of Borrower, Borrower has not made, nor is obligated
to make, any Distributions. Except as set forth in the Information Certificate, there are no outstanding agreements or instruments
binding upon holders of Borrower&rsquo;s Equity Interests relating to ownership of such Equity Interests.</FONT></P>

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


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-size: 10pt"><U>Anti-Corruption
Laws and Sanctions</U>. <FONT STYLE="font-weight: normal">Borrower has implemented and maintains in effect policies and procedures
designed to ensure compliance in all material respects by Borrower, its Subsidiaries and their respective directors, officers,
employees and agents with Anti-Corruption Laws and applicable Sanctions, and Borrower, its Subsidiaries and their respective directors,
officers and employees and to the knowledge of Borrower its agents, are in compliance in all material respects with Anti-Corruption
Laws and applicable Sanctions. None of (a) Borrower, any Subsidiary or any of their respective directors, officers or employees,
or (b) to the knowledge of Borrower, any agent of Borrower or any Subsidiary that will act in any capacity in connection with or
benefit from the credit facilities established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, use of proceeds
or other transactions will violate Anti-Corruption Laws or applicable Sanctions.</FONT></FONT><FONT STYLE="font-weight: normal">
</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Patriot
Act</U><FONT STYLE="font-weight: normal">. To the extent applicable, Borrower and each Subsidiary is in compliance, in all material
respects, with (a) the Trading with the Enemy Act, as amended, and each of the foreign asset control regulations of the United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating
thereto and (b) the Patriot Act. </FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Information
Certificate</U><FONT STYLE="font-weight: normal">. All of the representations and warranties in the Information Certificate are
true and correct as of the date of this Agreement and will remain true after the date of this Agreement; provided that Borrower
may update the Information Certificate from time to time by delivering written notice thereof to Lender so long as any changes
set forth in any such update are not otherwise violative of this Agreement.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>AFFIRMATIVE COVENANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.2pt">At all times
prior to the Commitment Termination Date and payment in full of the Obligations, Borrower covenants that it shall, and shall cause
each of its Subsidiaries to:</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notices</U><FONT STYLE="font-weight: normal">.
Notify Lender, promptly after Borrower&rsquo;s obtaining knowledge thereof, of (i)&nbsp;any Default or Event of Default; (ii) the
commencement of any action, suit or other proceeding against, or any demand for arbitration with respect to, any Obligor involving
more than $75,000 in the aggregate; (iii) the occurrence or existence of any default by an Obligor under any agreement relating
to Indebtedness for money borrowed involving more than $75,000 in the aggregate; or (iv) any other event or transaction which has
or could reasonably be expected to have a Material Adverse Effect.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Maintenance
of Rights and Properties</U><FONT STYLE="font-weight: normal">. Maintain and preserve all rights, franchises and other authority
adequate for the conduct of its business; maintain its properties, equipment and facilities in good order and repair, ordinary
wear and tear excepted; conduct its business in an orderly manner without voluntary interruption; and maintain and preserve its
existence.</FONT></P>

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


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    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Insurance</U><FONT STYLE="font-weight: normal">.
In addition to the insurance required by the Loan Documents with respect to the Collateral, maintain with its current insurers
or with other financially sound and reputable insurers having a rating of at least A or better by <I>Best&rsquo;s Ratings</I>,
a publication of A.M. Best Company, (i)&nbsp;insurance with respect to its properties and business against such casualties and
contingencies of such type (including product liability, workers&rsquo; compensation, larceny, embezzlement or other criminal misappropriation
insurance) and in such amounts and with such coverages, limits and deductibles as is customary in the business of Borrower or such
Subsidiary and (ii) business interruption insurance in an amount approved by Lender in its reasonable discretion.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Visits,
Inspections and Appraisals</U><FONT STYLE="font-weight: normal">. Permit representatives of Lender, as often as may be reasonably
requested, but only during normal business hours and (except when a Default or Event of Default exists) upon reasonable prior notice
to Borrower to: visit and inspect properties of Borrower and each of its Subsidiaries; inspect, audit and make extracts from Borrower&rsquo;s
Books, including all records relating to any Collateral; and discuss with its officers, employees and independent accountants Borrower&rsquo;s
and each Subsidiary&rsquo;s business, financial conditions, business prospects and results of operations; provided that Borrower
shall not be responsible for Lender&rsquo;s expenses incurred by Lender in connection with such visits or inspections except to
the extent provided in Section 5(c) of the Terms Schedule.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Taxes</U><FONT STYLE="font-weight: normal">.
Pay and discharge all Taxes prior to the date on which such Taxes become delinquent or any penalties attached thereto, except and
to the extent only that such Taxes are being Properly Contested. If requested by Lender, Borrower shall provide proof of payment
or, in the case of withholding or other employee taxes, deposit required by applicable law and shall deliver to Lender copies of
all of tax returns (and amendments thereto).</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Financial
Statements and Other Information</U><FONT STYLE="font-weight: normal">. Keep adequate records and books of account with respect
to its business activities in which proper entries are made in accordance with GAAP reflecting all its financial transactions;
and cause to be prepared and furnished to Lender the following:</FONT></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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as available, and in any event within 90<B> </B>days after the close of each Fiscal Year, unqualified audited balance sheets
of Borrower and its Subsidiaries as of the end of such Fiscal Year and the related statements of income, shareholders&rsquo; equity
and cash flow, on a consolidated basis, certified without any going concern or other material qualification by Friedman LLP or
another firm of independent certified public accountants of recognized national standing selected by Borrower but reasonably acceptable
to Lender and setting forth in each case in comparative form the corresponding consolidated and consolidating figures for the preceding
Fiscal Year together with the Internal Transfer Pricing Study prepared by Thomson Reuters Corporation or another firm reasonably
acceptable to Lender;</P>

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


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    <!-- Field: /Page -->

<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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as available, and in any event within 30 days after the end of each Fiscal Month hereafter, including the last Fiscal Month
of Borrower&rsquo;s Fiscal Year, unaudited balance sheets of Borrower and its Subsidiaries as of the end of such Fiscal Month and
the related unaudited consolidated statements of income for such Fiscal Month and for the portion of Borrower&rsquo;s Fiscal Year
then elapsed, on a consolidated and basis, setting forth in each case in comparative form the corresponding figures for the preceding
Fiscal Year and certified by the principal financial officer of Borrower as prepared in accordance with GAAP and fairly presenting
the consolidated financial position and results of operations of Borrower and its Subsidiaries for such Fiscal Month and period
subject only to changes from audit and year end adjustments and except that such statements need not contain notes;</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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as available, and in any event within 45 days after the end of each Fiscal Quarter of Borrower, a calculation of Availability
as of the last day of such Fiscal Quarter;</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">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;promptly
after the same are filed, copies of all quarterly reports that Borrower is required to file with the SEC under Section 13 or 15(d)
of the Securities and Exchange Act of 1934, as amended from time to time, and any successor statute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.9pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
Borrowing Base Certificate</FONT></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">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on
the Closing Date (prepared as of a date acceptable to Lender),</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;&nbsp;on
or before the 15<SUP>th</SUP> day of each calendar month (prepared as of the close of business of the previous fiscal month); <U>provided</U>,
<U>however</U>, if at any time Borrower shall fail to maintain Availability of at least 20% of the Revolver Commitment Amount,
the foregoing provision providing for a monthly borrowing base certificate shall automatically be deemed to be changed to provide
for a weekly borrowing base certificate (or more frequent reporting as Lender may reasonably require). All calculations of Availability
in connection with any Borrowing Base Certificate shall originally be made by Borrower and certified by an Authorized Officer to
Lender, <U>provided</U> that Lender shall have the right to review and adjust, in the exercise of its credit judgment, any such
calculation (i) to reflect its reasonable estimate of declines in value of any of the Collateral described therein and (ii) to
the extent that such calculation is not in accordance with this Agreement or does not accurately reflect the amount of the Availability
Reserve. In no event shall the Borrowing Base on any date be deemed to exceed the amount of the Borrowing Base shown on the Borrowing
Base Certificate last received by Lender prior to such date, as the calculation in such Borrowing Base Certificate may be adjusted
from time to time by Lender as herein authorized;</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">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">together
with each monthly Borrowing Base Certificate, an accounts receivable roll-forward report with respect to all of Borrower&rsquo;s
Accounts; <U>provided</U>, <U>however</U>, if Borrower is required to provide a weekly Borrowing Base Certificate in accordance
with the terms of clause (e)(ii) above, Borrower shall deliver such accounts receivable roll-forward report with respect to all
of Borrower&rsquo;s Accounts together with each such weekly Borrowing Base Certificate;</FONT></P>

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


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<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">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;together
with each month end Borrowing Base Certificate (i) a detailed aged trial balance of all of Borrower&rsquo;s Accounts, specifying
the names, face value, dates of invoices and due dates for each Account Debtor obligated on an Account so listed, (ii) a calculation
of all eligible and ineligible Accounts and Inventory, (iii) a summary inventory report by location, (iv) an in-transit inventory
report, and (v) a summary accounts payable aging (with a detailed accounts payable aging to be provided upon Lender&rsquo;s 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">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;promptly
after the sending or filing thereof, as the case may be, copies of any statements or reports which Borrower has made generally
available to its shareholders; copies of any regular, periodic and special reports or registration statements or prospectuses which
Borrower files with any governmental authority; and copies of any press releases or other statements made available by Borrower
to the public concerning material changes to or developments in the business 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">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;promptly
upon receipt thereof, a copy of any other report or &ldquo;management letter&rdquo; submitted by independent accountants to Borrower
notifying Borrower of a significant deficiency or material weakness in the financial reporting infrastructure of Borrower in connection
with any annual, interim or special audit of the books 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">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
reporting with respect to the Collateral as provided in the Security Agreement and the other Security Documents; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
later than 30 days prior to the commencement of each Fiscal Year, deliver Projections to Lender for such Fiscal Year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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: 1in">Concurrently
with the delivery of the financial statements described in clauses (a) and (b) of this Section, or more frequently if requested
by Lender during any period that a Default or Event of Default exists, Borrower shall cause to be prepared and furnished to Lender
a Compliance Certificate.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compliance
with Laws</U><FONT STYLE="font-weight: normal">. Comply in all material respects with all applicable laws (including the PATRIOT
Act) and all other laws regarding the collection, payment and deposit of Taxes, and shall obtain and keep in full force and effect
any and all governmental approvals necessary to the ownership of its properties or the conduct of its business and shall promptly
report to Lender any non-compliance known by Borrower.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Financial
Covenants</U><FONT STYLE="font-weight: normal">. Comply with all of the financial covenants set forth in Item 9 of the Terms Schedule.</FONT></P>

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


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Banking
Relationship</U><FONT STYLE="font-weight: normal">. During the term of this Agreement, Borrower shall maintain its primary banking
relationship with Lender. Borrower agrees to close all deposit accounts with AloStar Bank of Commerce and to terminate all treasury
management products with AloStar Bank of Commerce within 60 days after the date of this Agreement.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Government
Accounts</U>.<FONT STYLE="font-weight: normal"> In the event that an Account Debtor is the United States of America or any department,
agency or instrumentality thereof or any other state or local jurisdiction, Borrower shall promptly upon Lender&rsquo;s request
assign its right to payment of such Account to Lender in a manner satisfactory to Lender so as to comply with the Assignment of
Claims Act of 1940 (31 U.S.C. &sect;3727 and 41 U.S.C. &sect;15) or any similar state or local laws and Borrower&rsquo;s failure
to comply promptly with such request by Lender shall entitle Lender to exclude any such Account as an Eligible Account.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Post-Closing
Covenant</U><FONT STYLE="font-weight: normal">. Within 25 days after the date hereof, Borrower shall deliver or cause to be delivered
to Lender, a lender&rsquo;s loss payee endorsement (in form and substance reasonably satisfactory to Lender) issued by Lloyd&rsquo;s
of London with respect to policy no. CGSF10054900.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>NEGATIVE COVENANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.05pt">At all
times prior to the Commitment Termination Date and payment in full of the Obligations. Borrower shall not and Borrower shall not
permit any Subsidiary to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.05pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Fundamental
Changes</U><FONT STYLE="font-weight: normal">. Merge, reorganize as a different type of legal entity, or consolidate with any Person,
or liquidate, wind up its affairs or dissolve itself, in each case whether in a single transaction or in a series of related transactions,
except for mergers or consolidations of any Subsidiary with another Subsidiary; change its name or conduct business under any fictitious
name except for fictitious name, if any, shown in the Information Certificate; change its federal employer identification number,
organizational identification number or state of organization; relocate its chief executive office or principal place of business
without having first provided 30 days prior written notice to Lender; amend, modify or otherwise change any of the terms or provisions
in any of its Organic Documents, except for changes that do not affect in any way Borrower&rsquo;s authority to enter into and
perform the Loan Documents to which it is a party, the perfection of Lender&rsquo;s Liens and any of the Collateral, or its authority
or obligation to perform and pay the Obligations; or create any Subsidiary (except in connection with a Permitted Acquisition or
except with the consent of Lender, such consent not to be unreasonably withheld); or make any Acquisition (except for Permitted
Acquisitions).</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conduct
of Business</U><FONT STYLE="font-weight: normal">. Sell, lease or otherwise dispose of any of its assets (including any Collateral)
other than a Permitted Asset Disposition; suspend or otherwise discontinue all or any material part of its business operations;
or engage in any business other than the business engaged in by it on the Closing Date without the prior written consent of Lender.</FONT></P>

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


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    <!-- Field: /Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Liens</U><FONT STYLE="font-weight: normal">.
Create, incur or suffer to exist any Lien on any of its assets other than Permitted Liens.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investments</U><FONT STYLE="font-weight: normal">.
Make any Investments in any Person except for:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;existing
Investments in Foreign Subsidiaries of Borrower;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
Investments in Foreign Subsidiaries made after the date hereof so long as: (1) no Default or Event of Default shall have occurred
and be continuing or would result therefrom, (2) either (i) Availability is at least 25% of the then current Revolver Commitment
Amount immediately after giving effect to any such Investment in Foreign Subsidiaries or (ii) Availability is at least 20% of the
then current Revolver Commitment Amount immediately after giving effect to any such Investment in Foreign Subsidiaries and the
pro forma Fixed Charge Coverage Ratio is at least 1.10 to 1.0 computed on a pro forma basis as of the last day of the most recent
Fiscal Quarter for which Lender should have received monthly financial statements in accordance with Section 5.6(b) (hereinafter
such last day shall be referred to as the &ldquo;<U>Computation Date</U>&rdquo;), with such pro forma calculation being made for
the four (4) Fiscal Quarter period ending as of the Computation Date and with the amount of any such Investment in Foreign Subsidiaries
being included in such computation and being deemed to have been made on the Computation Date and (3) the maximum aggregate amount
of such Investments in Foreign Subsidiaries made by Borrower in any Fiscal Year together with the maximum aggregate amount of Distributions
made by Borrower in such Fiscal Year shall not exceed the sum of (i) $4,000,000 in the aggregate (calculated on a non-cumulative
basis) plus (ii) up to $2,000,000 of the aggregate amount of dividends received by Borrower for such Fiscal Year from Foreign Subsidiaries;
</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reimbursement
of expenses to officers or employees of Borrower in the Ordinary Course of Business;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;transfers
by a Subsidiary to Borrower or to another Subsidiary that is an Obligor; and</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;transfers
to Lender pursuant to the Loan Documents.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Indebtedness</U><FONT STYLE="font-weight: normal">.
Create, incur, guarantee or suffer to exist any Indebtedness other than Permitted Indebtedness.</FONT></P>

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


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Distributions</U><FONT STYLE="font-weight: normal">.
Declare or make any Distribution other than (a) a Distribution from a Subsidiary of Borrower to Borrower or another Subsidiary
of Borrower to another Subsidiary of Borrower and (b) other Distributions so long as (1) no Default or Event of Default shall have
occurred and be continuing or would result therefrom, (2) either (i) Availability is at least 25% of the then current Revolver
Commitment Amount immediately after giving effect to any such Distribution or (ii) Availability is at least 20% of the then current
Revolver Commitment Amount immediately after giving effect to any such Distribution and the pro forma Fixed Charge Coverage Ratio
is at least 1.10 to 1.0 computed on a pro forma basis as of the last day of the most recent Fiscal Quarter for which Lender should
have received monthly financial statements in accordance with Section 5.6(b) (hereinafter such last day shall be referred to as
the &ldquo;<U>Computation Date</U>&rdquo;), with such pro forma calculation being made for the four (4) Fiscal Quarter period ending
as of the Computation Date and with the amount of any such Distribution being included in such computation and being deemed to
have been made on the Computation Date and (3) the maximum aggregate amount of such Distributions made by Borrower in any Fiscal
Year together with the maximum aggregate amount of Investments in Foreign Subsidiaries made by Borrower in such Fiscal Year shall
not exceed $4,000,000 in the aggregate (calculated on a non-cumulative basis).</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>ERISA</U><FONT STYLE="font-weight: normal">.
Withdraw from participation in, permit any full or partial termination of, or permit the occurrence of any other event with respect
to any Plan maintained for the benefit of Borrower&rsquo;s employees under circumstances that could result in liability to the
Pension Benefit Guaranty Corporation, or any of its successors or assigns, or to any entity which provides funds for such Plan;
or withdraw from any Multiemployer Plan described in Section 4001(a)(3) of ERISA which covers Borrower&rsquo;s employees.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
and Accounting Matters</U><FONT STYLE="font-weight: normal">. File or consent to the filing of any consolidated income tax return
with any Person other than a Subsidiary; make any significant change in accounting treatment or reporting practices, except as
required or permitted by GAAP; or establish a fiscal year different than the Fiscal Year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">6.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Affiliate
Transactions</U><FONT STYLE="font-weight: normal">. Enter into or be party to any transaction with an Affiliate, except (a) transactions
contemplated by the Loan Documents; (b) payment of reasonable compensation to officers and employees for services actually rendered;
(c) transactions with Affiliates that were consummated prior to the Closing Date or pursuant to agreements entered into prior to
the Closing Date; and (d) transactions with Affiliates that are (i) fully disclosed to Lender, and (ii) entered into in the Ordinary
Course of Business, upon fair and reasonable terms and no less favorable than would be obtained in a comparable arm&rsquo;s-length
transaction with a non-Affiliate.</FONT></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.35pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">6.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock
Repurchases</U><FONT STYLE="font-weight: normal">. Make any Stock Repurchase unless (1) no Default or Event of Default shall have
occurred and be continuing or would result therefrom and (2) either (i) Availability is at least 25% of the then current Revolver
Commitment Amount immediately after giving effect to any such Stock Repurchase or (ii) Availability is at least 20% of the then
current Revolver Commitment Amount immediately after giving effect to any such Stock Repurchase and the pro forma Fixed Charge
Coverage Ratio is at least 1.10 to 1.0 computed on a pro forma basis as of the last day of the most recent Fiscal Quarter for
which Lender should have received monthly financial statements in accordance with Section 5.6(b) (hereinafter such last day shall
be referred to as the &ldquo;<U>Computation Date</U>&rdquo;), with such pro forma calculation being made for the four (4) month
Fiscal Quarter period ending as of the Computation Date and with the amount of any such Stock Repurchase being included in such
computation and being deemed to have been made on the Computation Date.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>EVENTS OF DEFAULTS; REMEDIES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Events
of Default</U><FONT STYLE="font-weight: normal">. The occurrence or existence of any one or more of the following events or conditions
shall constitute an Event of Default under this Agreement:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall fail to pay (i) interest in respect of the Obligations or fees, reimbursable items or other charges payable under any of
the Loan Documents when due and such failure shall continue unremedied for a period of five days, or (ii) any principal in respect
of the Obligations when due (whether due at stated maturity, on demand, upon acceleration or otherwise).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
Any Obligor fails or neglects to perform, keep or observe the covenant contained in <U>Section 5.8</U> on the date that Borrower
is required to perform, keep or observe such covenant; (ii) any Obligor fails or neglects to perform, keep or observe in any material
respect any covenant contained in <U>Sections 5.1</U>, <U>5.4</U>, <U>5.6</U>, <U>5.7</U> or <U>6</U> on the date that Borrower
is required to perform, keep or observe such covenant if the breach of any such covenant is not cured to Lender's satisfaction
within 5 Business Days after any Senior Officer's receipt of written notice of such breach from Lender, <U>provided</U> that such
notice and opportunity to cure shall not apply in the case of any failure to perform, keep or observe any such covenant that is
not capable of being cured at all within such 5-Business Day period; (iii) any Obligor fails or neglects to perform, keep or observe
in any material respect any other covenant contained in this Agreement if the breach of such other covenant is not cured to Lender's
satisfaction within 30 days after of any Senior Officer's receipt of written notice of such breach from Lender, <U>provided</U>
that such notice and opportunity to cure shall not apply in the case of any failure to perform, keep or observe any covenant that
is not capable of being cured at all within such 30-day period; or (iv) any Obligor fails or neglects to perform or discharge in
any material respect any covenant or undertaking by it in any other Loan Document if such breach is not cured to Lender's satisfaction
within 30 days after any Senior Officer's receipt of written notice of such breach from Lender, <U>provided</U> that such notice
and opportunity to cure shall not apply in the case of any failure to perform, keep or observe any covenant that is not capable
of being cured at all or within such 30-day period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
representation, statement, report, or certificate made or delivered by Borrower to Lender is not true and correct, in any material
respect, when made or furnished.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
Insolvency Proceeding (i) is commenced against an Obligor and is not dismissed within 45 days thereafter or (ii) is commenced by
an Obligor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
or more judgments that in the aggregate impose monetary liability greater than $500,000<B> </B>shall be entered against any Obligor
and (i) enforcement proceedings shall have been commenced by any creditor upon such judgment, (ii) there shall be any period of
30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, shall not
be in effect, or (iii) results in the creation or imposition of a Lien upon any of the Collateral that is not a Permitted Lien.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is a default, after the expiration of any applicable cure period, in any material agreement, mortgage, or indenture in excess of
$250,000 to which Borrower is a party with a Person other than Lender, if as a result of such default the Indebtedness evidenced
or secured by any such agreement may be accelerated or demand for payment thereof may be made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Guarantor dies or becomes the subject of an Insolvency Proceeding; revokes or attempts to revoke the guaranty signed by such Guarantor;
repudiates or disputes such Guarantor&rsquo;s liability thereunder; is in default under the terms thereof; or fails to confirm
in writing, promptly after receipt of Lender&rsquo;s written request therefor, such Guarantor&rsquo;s ongoing liability under the
guaranty in accordance with the terms thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Reportable Event (consisting of any of the events set forth in Section 4043(b) of ERISA) shall occur which Lender, in its reasonable
discretion, shall determine constitutes grounds for the termination by the Pension Benefit Guaranty Corporation of any Plan or
the appointment by the appropriate United States district court of a trustee for any Plan, or if any Plan shall be terminated or
any such trustee shall be requested or appointed, or if Borrower or any other Obligor is in &ldquo;default&rdquo; (as defined in
Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan resulting from Borrower&rsquo;s, or such other Obligor&rsquo;s
complete or partial withdrawal from such Multiemployer Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Obligor shall challenge in any action, suit or other proceeding the validity or enforceability of any of the Loan Documents, the
legality or enforceability of any of the Obligations or the perfection or priority of any Lien granted to Lender, or any of the
Loan Documents ceases to be in full force or effect for any reason other than a full or partial waiver or release by Lender in
accordance with the terms thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Change of Control shall occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
occurrence of an event or development which has a Material Adverse Effect.<B> </B></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Remedies</U><FONT STYLE="font-weight: normal">.
If an Event of Default as described in Section 7.1(d) shall have occurred and continue in effect, all the Obligations shall become
automatically due and payable and the Commitment shall terminate without any action by Lender or notice of any kind. Upon or after
the occurrence of an Event of Default, Lender may, in its discretion, without notice to or demand upon any Obligor, do any one
or more of the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Declare
all Obligations, whether arising pursuant to this Agreement or otherwise, due, whereupon the same shall become without further
notice or demand (all of which notice and demand Borrower expressly waives) immediately due and payable, and Borrower shall pay
to Lender the entire principal of and accrued and unpaid interest on the Loans and other Obligations plus reasonable attorneys&rsquo;
fees and its court costs if such principal and interest are collected by or through an attorney-at-law;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cease
advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement among Borrower
and Lender;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terminate
the Commitment, but without affecting Lender&rsquo;s rights and security interest in the Collateral and without affecting the Obligations
owing by Borrower to Lender;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notify
Account Debtors or lessees of Borrower that the Accounts have been assigned to Lender and that Lender has a security interest therein,
collect them directly, and charge the collection costs and expenses to the Loan Account;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take
immediate possession of any Collateral, wherever located; require Borrower to assemble the Collateral, at Borrower&rsquo;s expense,
and make it available to Lender at a place designated by Lender which is reasonably convenient to both parties; and enter any premises
where any of the Collateral may be located and keep and store the Collateral on said premises until sold (and if said premises
are the property of Borrower, then Borrower agrees not to charge Lender for storage thereof);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sell
or otherwise dispose of all or any part of the Collateral in its then condition, or after any further manufacturing or processing
thereof, at public or private sales, with such notice as may be required by applicable law, in lots or in bulk, for cash or on
credit, all as Lender in its discretion may deem advisable; and Borrower agrees to any requirement of notice to Borrower or any
other Obligor of any proposed public or private sale or other disposition of Collateral by Lender shall be deemed reasonable notice
thereof if given at least 10 days prior thereto, and such sale may be at such locations as Lender may designate in said notice;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 35.25pt">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Petition
for and obtain the appointment of a receiver, without notice of any kind whatsoever, to take possession of any or all of the Collateral
and business of Borrower and to exercise such rights and powers as the court appointing such receiver shall confer upon such receiver;
and</P>

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


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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 27pt">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set off any Deposit Account maintained by Borrower with Lender and apply the balances therein
to the payment of the Obligations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">In the course
of effectuating any such remedies, Lender is hereby granted an irrevocable, non-exclusive license or other right to use, license
or sub-license (exercisable without payment of compensation to any Obligor or any other Person) any or all of Borrower&rsquo;s
patents, trademarks, tradenames and copyrights and all of Borrower&rsquo;s computer hardware and software, trade secrets, brochures,
customer lists, promotional and advertising materials, labels, and packaging materials, and any property of a similar nature, in
advertising for sale, marketing, selling and collecting and in completing the manufacturing of any Collateral, and Borrower&rsquo;s
rights under all licenses and franchise agreements shall inure to Lender&rsquo;s benefit. The proceeds realized from any sale or
other disposition of any Collateral may be applied, after allowing two Business Days for collection, first to any expenses (including
reasonable attorney&rsquo;s fees) incurred by Lender and then to the remainder of the Obligations in such order of application
as Lender may elect in its discretion, with Borrower and Obligors remaining liable for any deficiency.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Cumulative
Rights; No Waiver</U><FONT STYLE="font-weight: normal">. All covenants, conditions, warranties, guaranties, indemnities and other
undertakings of Borrower in any of the Loan Documents shall be deemed cumulative, and Lender shall have all other rights and remedies
not inconsistent herewith as provided under the UCC, or other applicable law. No exercise by Lender of one right or remedy shall
be deemed an election, and no waiver by Lender of any Default or Event of Default on one occasion shall be deemed to be a continuing
waiver or applicable to any other occasion. No delay by Lender shall constitute a waiver, election or acquiescence by Lender in
any failure by Borrower strictly to comply with its obligations under the Loan Documents.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: none">SECTION
8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>GENERAL PROVISIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Accounting
Terms</U><FONT STYLE="font-weight: normal">. Unless otherwise specified herein, all terms of an accounting character used in this
Agreement shall be interpreted, all accounting determinations under this Agreement shall be made, and all financial statements
required to be delivered under this Agreement shall be prepared in accordance with GAAP, applied on a basis consistent with the
most recent audited financial statements of Borrower and its Subsidiaries delivered to Lender prior to the Closing Date and using
the same method for inventory valuation as used in such audited financial statements, except for any changes required by GAAP.
</FONT></P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Certain
Matters of Construction</U><FONT STYLE="font-weight: normal">. The terms &ldquo;herein,&rdquo; &ldquo;hereof&rdquo; and &ldquo;hereunder&rdquo;
and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision.
Any pronoun used shall be deemed to cover all genders. The section titles, table of contents and list of exhibits appear as a matter
of convenience only and shall not affect the interpretation of this Agreement. All references in this Agreement to statutes shall
include all amendments of same and implementing regulations and any successor statutes and regulations; to any instrument or agreement
(including any of the Loan Documents) shall include any and all modifications and supplements thereto and any and all restatements,
extensions or renewals thereof to the extent such modifications, supplements, restatements, extensions or renewals of any such
documents are permitted by the terms thereof; to any Person shall mean and include the successors and permitted assigns of such
Person; to&nbsp;&rdquo;including&rdquo; shall&nbsp;be understood to mean &ldquo;including, without limitation&rdquo;; or to the
time of day shall mean the time of day on the day in question in Atlanta, Georgia, unless otherwise expressly provided in this
Agreement. Whenever in any provision of this Agreement Lender is authorized to take or decline to take any action (including making
any determination) in the exercise of its &ldquo;discretion,&rdquo; such provision shall be understood to mean that Lender may
take or refrain to take such action in its sole and absolute discretion unless qualified by the term &ldquo;reasonable.&rdquo;
Whenever the phrase &ldquo;to Borrower&rsquo;s knowledge&rdquo; or words of similar import relating to the knowledge or the awareness
of Borrower are used in this Agreement or other Loan Documents, such phrase shall mean and refer to the actual knowledge of any
Senior Officer of Borrower.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Power
of Attorney</U><FONT STYLE="font-weight: normal">. Borrower hereby irrevocably makes, constitutes and appoints Lender (and any
of Lender&rsquo;s officers, employees or agents designated by Lender), with full power of substitution, as Borrower&rsquo;s true
and lawful attorney, in Borrower&rsquo;s or Lender&rsquo;s name: (a) to endorse Borrower&rsquo;s name on any checks, notes, acceptances,
money orders, drafts or other forms of payment or security that may come into Lender&rsquo;s possession; (b) after the occurrence
of an Event of Default, to sign Borrower&rsquo;s name on drafts against Account Debtors, on schedules and assignments of Accounts,
on notices to Account Debtors and on any Account invoice or bill of lading; (c) after the occurrence of an Event of Default, to
send requests for verification of Accounts, and to contact Account Debtors in any other manner to verify the Accounts; (d) after
the occurrence of an Event of Default and upon notice to Borrower, to notify the post office authorities to change the address
for delivery of Borrower&rsquo;s mail to any address designated by Lender, to receive and open all mail addressed to Borrower,
and to retain all mail relating to the Collateral and forward, within ten (10) Business Days of Lender&rsquo;s receipt thereof,
all other mail to Borrower; and (e) after the occurrence of an Event of Default to do all other things necessary to carry out this
Agreement. The foregoing power of attorney, being coupled with an interest, is irrevocable so long as any Obligations are outstanding.
Borrower ratifies and approves all acts of the attorney. Neither Lender nor its employees, officers, or agents shall be liable
for any acts or omissions or for any error in judgment or mistake of fact or law except for gross negligence or willful misconduct.</FONT></P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notices
and Communications</U><FONT STYLE="font-weight: normal">. Except as otherwise provided in Section 1.1, all notices, requests and
other communications to or upon a party hereto shall be in writing (including facsimile transmission or similar writing) and shall
be given to such party at the address or facsimile number for such party in Item 10 of the Terms Schedule or at such other address
or facsimile number as such party may hereafter specify for the purpose by notice to Lender and Borrower in accordance with the
provisions of this Section. Each such notice, request or other communication shall be effective (i)&nbsp;if given by facsimile
transmission, when transmitted to the facsimile number specified herein for the noticed party and confirmation of receipt is received,
(ii)&nbsp;if by nationally recognized overnight courier, when delivered with receipt acknowledged in writing by the noticed party
or (iii)&nbsp;if given by personal delivery, when duly delivered with receipt acknowledged in writing by the noticed party. Notwithstanding
the foregoing, no notice to or upon Lender pursuant to Sections 1.1<I>, </I>2.2 or 5.1 shall be effective until actually received
by the individual to whose attention at Lender such notice is required to be sent. Any written notice, request or demand that is
not sent in conformity with the provisions hereof shall nevertheless be effective on the date that such&nbsp;notice, request or
demand is actually received by the individual to whose attention at the&nbsp;noticed party such notice, request or demand is required
to be sent.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Performance
of Borrower&rsquo;s Obligations</U><FONT STYLE="font-weight: normal">. If Borrower shall fail to discharge any covenant, duty or
obligation hereunder or under any of the other Loan Documents, Lender may, in its reasonable discretion at any time, for Borrower&rsquo;s
account and at Borrower&rsquo;s expense, pay any amount or do any act required of Borrower hereunder or under any of the other
Loan Documents or otherwise lawfully requested by Lender. All reasonable costs and expenses incurred by Lender in connection with
the taking of any such action shall be reimbursed to Lender by Borrower on demand with interest at the Default Rate from the date
such payment is made or such costs or expenses are incurred to the date of payment thereof. Any payment made or other action taken
by Lender under this Section shall be without prejudice to any right to assert, and without waiver of, an Event of Default hereunder
and without prejudice to Lender&rsquo;s right to proceed thereafter as provided herein or in any of the other Loan Documents.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Further
Assurances</U><FONT STYLE="font-weight: normal">. Borrower agrees to take such further actions as Lender shall reasonably request
from time to time in connection herewith to evidence or give effect to this Agreement and the other Loan Documents and any of the
transactions contemplated hereby. Promptly after Lender&rsquo;s request therefor, Borrower shall execute or cause to be executed
and delivered to Lender such instruments, assignments, title certificates or other documents as are necessary under the UCC or
other applicable law (including any motor vehicle certificates of title act) to perfect (or continue the perfection of) Lender&rsquo;s
Liens upon the&nbsp;Collateral and shall take such other action as may be reasonably requested by Lender to give effect to or carry
out the intent and purposes of this&nbsp;Agreement.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Successors
and Assigns</U><FONT STYLE="font-weight: normal">. This Agreement shall bind and inure to the benefit of the respective successors
and assigns of each of the parties, provided, that Borrower may not assign this Agreement or any rights or obligations hereunder
without Lender&rsquo;s prior written consent and any prohibited assignment shall be absolutely void. Lender may sell, assign, transfer,
negotiate or grant participations in all or any part of, or any interest in, or any right or remedy under, the Obligations and
the Loan Documents.</FONT></P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>General
Indemnity</U><FONT STYLE="font-weight: normal">. Borrower hereby agrees to indemnify and defend the Indemnitees against and to
hold the Indemnitees harmless from any Indemnified Claim that may be instituted or asserted against or incurred by any of the&nbsp;Indemnitees
and that either (i) arises out of or relates to this Agreement or any of the other Loan Documents (including any transactions entered
into pursuant to any of the Loan Documents, Lender&rsquo;s Liens upon the Collateral, or the performance by Lender of Lender&rsquo;s
duties or the exercise of any Lender&rsquo;s rights or remedies under this Agreement or any of the other Loan Documents), or (ii)
results from any Borrower&rsquo;s failure to observe, perform or discharge any of such Borrower&rsquo;s covenants or duties hereunder.
Without limiting the generality of the foregoing, this indemnity shall extend to any Indemnified Claims instituted or asserted
against or incurred by any of the Indemnitees under any environmental laws. Additionally, if any Taxes (excluding Taxes imposed
upon or measured solely by the net income of Lender, but including any intangibles tax, stamp tax, recording tax or franchise tax)
shall be payable by Lender or any Obligor on account of the execution or delivery of this Agreement, or the execution, delivery,
issuance or recording of any of the other Loan&nbsp;Documents, or the creation or repayment of any of the&nbsp;Obligations hereunder,
by reason of any applicable law now or hereafter in effect, Borrower shall pay (or&nbsp;shall promptly reimburse Lender for the
payment of) all such Taxes, including any interest and penalties thereon, and will indemnify and hold Indemnitees harmless from
and against all liability in connection therewith. The&nbsp;foregoing indemnities shall not apply to Indemnified Claims incurred
by any Indemnitee as a&nbsp;direct&nbsp;and proximate result of its own gross negligence or willful misconduct. Notwithstanding
anything to the contrary in any of the Loan Documents, the obligations of Borrower and each other Obligor with respect to each
indemnity given by it in this Agreement or any of the other Loan Documents in favor of Lender shall survive the termination of
the Commitment and payment in full of the Obligations. Notwithstanding anything to the contrary in the foregoing or in any of the
Loan Documents, Borrower shall not be responsible for any Indemnified Claim to the extent caused by the gross negligence or willful
misconduct of Lender, its representatives and/or agents, or any person or entity acting on its behalf.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Interpretation;
Severability</U><FONT STYLE="font-weight: normal">. Section headings and section numbers have been set forth herein for convenience
only. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Lender or Borrower,
whether under any rule of construction or otherwise, as this Agreement has been reviewed and prepared by all parties hereto. Each
provision of this Agreement shall be severable from every other provision of this Agreement for purposes of determining the legal
enforceability of any specific provision.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Indulgences
Not Waivers</U><FONT STYLE="font-weight: normal">. Lender&rsquo;s failure at any time or times to require strict performance by
Borrower of any provision of this Agreement or any of the other Loan Documents shall not waive, affect or otherwise diminish any
right of Lender thereafter to demand strict compliance and performance with such provision.</FONT></P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Modification;
Counterparts; Facsimile Signatures</U><FONT STYLE="font-weight: normal">. This Agreement cannot be amended unless in writing signed
by Borrower and Lender; supersedes all prior agreements, understandings, negotiations and inducements regarding the same subject
matter, and, together with the other Loan Documents, represents the entire understanding of the parties with respect to the subject
matter hereof and thereof. This Agreement and any amendments hereto may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all
of which counterparts taken together shall constitute but one and the same instrument. Counterparts of each of the Loan Documents
may be delivered by facsimile or electronic mail and the effectiveness of each such Loan Document and signatures thereon shall
have the same force and effect as manually signed originals.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Governing
Law; Consent to Forum</U><FONT STYLE="font-weight: normal">. This Agreement shall be deemed to have been made in New York, New
York, and shall be governed by and construed in accordance with the internal laws (but without regard to conflict of law provisions)
of the State of New York. Borrower hereby consents to the non-exclusive jurisdiction of any United States federal court sitting
in or with direct or indirect jurisdiction over the Southern District of New York or any state or superior court sitting in New
York County, New York, in any action, suit or other proceeding arising out of or relating to this Agreement or any of the other
Loan Documents; and Borrower irrevocably agrees that all claims and demands in respect of any such action, suit or proceeding may
be heard and determined in any such court and irrevocably waives any objection it may now or hereafter have as to the venue of
any such action, suit or proceeding brought in any such court or that such court is an inconvenient forum. Lender reserves the
right to bring proceedings against any Obligor in the courts of any other jurisdiction. Nothing in this Agreement shall be deemed
or operate to affect the right of Lender to serve legal process in any other manner permitted by law or to preclude the enforcement
by Lender of any judgment or order obtained in such forum or the taking of any action under this Agreement to enforce same in any
other appropriate forum or jurisdiction.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-size: 10pt"><U>Waiver
of Certain Rights</U><FONT STYLE="font-weight: normal">.</FONT></FONT> <FONT STYLE="font-weight: normal">To the fullest extent
permitted by applicable law, Borrower hereby knowingly, intentionally and intelligently waives (with the benefit of advice of legal
counsel of its own choosing): (i) the right to trial by jury (which Lender hereby also waives) in any action, suit, proceeding
or counterclaim of any kind arising out of, related to or based in any way upon any of the Loan Documents, the Obligations or the
Collateral; (ii) any claim against Lender on any theory of liability, for special, indirect, consequential, exemplary or punitive
damages arising out of, in connection with, or as a result of any of the Loan Documents, any transaction thereunder, the enforcement
of any remedies by Lender or the use of any proceeds of any Loans; and (iii) notice of acceptance of this Agreement by Lender<FONT STYLE="font-size: 10pt">.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>[</B>Remainder
of page intentionally left blank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">signatures
begin on following page.<B>]</B></P>

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


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<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">IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed on the date first set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 214.5pt; text-align: justify; text-indent: 0in">&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="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>BORROWER</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>LAKELAND INDUSTRIES, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 44%; text-align: justify; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ <I><U STYLE="text-decoration: none">Christopher J. Ryan</U></I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0in">Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0in">President &amp; Secretary</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>Accepted in Atlanta, Georgia</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>LENDER</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>SUNTRUST BANK</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;/s/ William A. Sykstus</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0in">William A. Sykstus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Director</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>TERMS
SCHEDULE</U></B></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">This <B>Terms
Schedule</B> is a part of the Loan Agreement dated May 10, 2017, between <B>LAKELAND INDUSTRIES, INC.</B>, as Borrower, and <B>SUNTRUST
BANK</B>, as Lender (as at any time amended, the &ldquo;<U>Loan Agreement</U>&rdquo;). Capitalized terms used in this Terms Schedule,
unless otherwise defined herein, shall have the meanings ascribed to them in the Definitions Schedule annexed to the Loan Agreement.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">1.</TD><TD><B><U>Authorized Officers (Definitions Schedule)</U></B>:</TD>
</TR></TABLE>

<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">Danyel Webley,
Vice President, Finance</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">2.</TD><TD><B><U>Guarantor (Definitions Schedule)</U></B>:</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Laidlaw Adams
&amp; Peck, Inc.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">3.</TD><TD><U>Revolver Commitment Amount (&sect;1.1)</U>:</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">$20,000,000
which amount may be increased in minimum amounts of $2,500,000 (upon the request of Borrower and with the consent of Lender in
its sole discretion) by up to $10,000,000 (for a total of $30,000,000) so long as, prior to giving effect to such increase, no
Default or Event of Default has occurred and is continuing.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">4.</TD><TD><B><U>Interest Rates (&sect;1.4)</U></B>:</TD>
</TR></TABLE>

<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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
&ldquo;<U>Applicable Margin</U>&rdquo; means, as of any date of determination (with respect to any portion of the outstanding Revolver
Loans on such date), the applicable margin set forth in the following table that corresponds to the most recent Availability calculation
delivered to Lender pursuant to Section 5.6(c) of the Agreement (the &ldquo;<U>Availability Calculation</U>&rdquo;); <U>provided</U>,
<U>however</U>, that for the period from the Closing Date through the end of the month in which Lender receives the Availability
Calculation in respect of the testing period ending October 31, 2017, the Applicable Margin shall be at the margin in the row styled
&ldquo;Level II&rdquo;:</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="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Level</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Availability</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Applicable Margin <BR>
for Eurodollar Loan</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">Applicable Margin for <BR>
Base Rate Loans</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 12%; text-align: center; text-indent: 0in; vertical-align: top">I</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 61%; text-align: justify; text-indent: 0in; padding-left: 0.1in">If Availability is equal to or greater than 66.7% of the current Revolver Commitment Amount</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1.50</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0.50</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">II</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in; padding-left: 0.1in">If Availability is less than 66.7% of the current maximum amount of the commitment under the Revolver but equal to or greater than 33.3% of the current maximum amount of the commitment under the Revolver</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.75</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.75</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">III</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0in; padding-left: 0.1in">If Availability is less than 33.3% of the current maximum amount of the commitment under the Revolver</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.00</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<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; text-align: left; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Except as
set forth in the foregoing proviso, the Applicable Margin shall be based upon the most recent Availability Calculation, which will
be calculated as of the end of each Fiscal Quarter. Except as set forth in the foregoing proviso, the Applicable Margin shall be
re-determined quarterly on the first day of the month following the date of delivery to Lender of the certified calculation of
the Availability pursuant to Section 5.6(c) of the Agreement; <U>provided</U>, <U>however</U>, that if Borrower fails to provide
such certification when such certification is due, the Applicable Margin shall be set at the margin in the row styled &ldquo;Level
III&rdquo; as of the first day of the month following the date on which the certification was required to be delivered until the
date on which such certification is delivered (on which date (but not retroactively), without constituting a waiver of any Default
or Event of Default occasioned by the failure to timely deliver such certification), the Applicable Margin shall be set at the
margin based upon the calculations disclosed by such certification. In the event that the information regarding Availability contained
in any certificate delivered pursuant to Section 5.6(c) of the Agreement is shown to be inaccurate, and such inaccuracy, if corrected,
would have led to the application of a higher Applicable Margin for any period than the Applicable Margin actually applied for
the applicable period of interest, then (i) Borrower shall immediately deliver to Lender a correct certificate for such period,
(ii) the Applicable Margin shall be determined as if the correct Applicable Margin (as set forth in the table above) were applicable
for such period, and (iii) Borrower shall immediately deliver to Lender full payment in respect of the accrued additional interest
as a result of such increased Applicable Margin for such applicable period of interest, which payment shall be promptly applied
by Lender to the affected Obligations.</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
&ldquo;<U>Default Margin</U>&rdquo; is 2.00%.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">5.</TD><TD><B><U>Fees and Expenses (&sect;1.5)</U></B>:</TD>
</TR></TABLE>

<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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall pay to Lender the following fees: (i) an up-front fee of $43,150 payable on the Closing Date; (ii) an unused line fee in
an amount equal to the Applicable Unused Fee Percentage of the daily amount by which the Revolver Loan balance for any month (or
portion thereof that the Commitment is in effect) is less than the Revolver Commitment Amount, payable in arrears for the previous
Fiscal Month on the first day of each Fiscal Month (commencing on June 1, 2017), but if the Commitment Termination Date occurs
on a day other than the first day of the month, then any such fee payable for the month in which termination shall occur shall
be paid on the effective date of such termination; and (iii) a letter of credit fee at a rate per annum equal to the Applicable
Margin for Eurodollar Rate Loans on the average daily amount of the LC Exposure during the period from and including the date of
issuance of each Letter of Credit to but excluding the date on which such Letter of Credit expires or is drawn in full (including
without limitation any LC Exposure that remains outstanding after the Commitment Termination Date), a fronting fee, which shall
accrue at the rate of 0.125% per annum on the daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed
LC Disbursements), which shall be computed on the basis of a hypothetical year of three hundred sixty (360) days until the date
that such Letter of Credit is irrevocably cancelled or expires, whichever is later, and Lender&rsquo;s standard fees with respect
to issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing clause (a)(iii), if the Default Rate is in effect, the rate per annum used to calculate the letter of credit fee
described above shall automatically be increased by an additional 2.00% per annum.</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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall reimburse Lender for all costs and expenses incurred by Lender and third parties engaged by Lender in connection with (i)
field examinations and reviews of Borrower&rsquo;s Books and such other matters pertaining to Borrower or any Collateral (including
appraisals) as Lender shall deem appropriate and shall also pay to Lender the standard amount charged by Lender per person per
day ($1,000 per person per day as of the date of the Loan Agreement) for each day that an agent of Lender shall reasonably be engaged
in an examination or review of any of Borrower&rsquo;s Books and (ii) appraisals of the Borrower&rsquo;s Inventory conducted by
a third party engaged by Lender; <U>provided</U>, <U>however</U>, that, if no Event of Default then exists, Borrower shall only
be required to reimburse Lender for (A) one (1) such field examination in any consecutive twelve (12) Fiscal Month period so long
as Availability is at least 50% of the Revolver Commitment Amount at all times during such period (2) two (2) of such field examinations
in any consecutive twelve (12) Fiscal Month period if Availability is less than 50% of the Revolver Commitment Amount at any time
during such period and (3) one (1) such appraisal of Borrower&rsquo;s Inventory. For the avoidance of doubt, if an Event of Default
exists, Lender shall be permitted to conduct as many audits, field examinations, and appraisals, as it shall deem necessary to
protect its rights under the Loan Documents and in the Collateral, and Borrower shall reimburse Lender for all costs and expenses
incurred by Lender and third parties engaged by Lender in connection with any such audit, appraisal, or field examination.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Term
(&sect;2.1)</U></B>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 37.5pt">May 10,
2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Documents
to be delivered at closing (&sect;3.1(b))</U></B>:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
copy of the Organic Documents of Borrower;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
certificate of the resolutions of the board of directors or other appropriate governing body of each Obligor, signed by a Senior
Officer of such Obligor, authorizing such Obligor to execute, deliver and perform its obligations under the Loan Documents;</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
favorable legal opinion of Borrower&rsquo;s general counsel addressed to Lender regarding such matters as Lender and its counsel
may reasonably request;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evidence
of insurance, including standard forms of certificates of insurance addressed to Lender, reasonably satisfactory to Lender and
otherwise confirming Borrower&rsquo;s satisfaction of the insurance requirements contained in the Loan Documents;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duly
executed and delivered Lien Waivers as required by any of the Loan Documents; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receipt
of Borrower&rsquo;s financial statements for its most recently concluded Fiscal Year and its most recently concluded Fiscal Month,
and such other financial reports, projections and information concerning any Obligor as Lender shall request.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Other
Closing Conditions (&sect;3.1(f))</U></B>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 38.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 38.5pt">Lender shall
have completed its field examinations of Borrower&rsquo;s assets, liabilities, books and records in form and substance acceptable
to Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 38.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 38.5pt">Lender shall
have received from Borrower with respect to the Alabama Real Estate:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
fully executed and notarized Mortgage, in proper form for recording in all appropriate places in all applicable jurisdictions,
encumbering the Alabama Real Estate;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
an ALTA mortgagee title insurance policy or unconditional commitment therefor issued by one or more title companies reasonably
satisfactory to Lender (the &ldquo;<U>Title&nbsp;Policy</U>&rdquo;) with respect to the Alabama Real Estate, in an amount not less
than the fair market value of the Alabama Real Estate, together with a title report issued by a title company with respect thereto
and copies of all recorded documents listed as exceptions to title or otherwise referred to therein, each in form and substance
reasonably satisfactory to Lender and (ii) evidence reasonably satisfactory to Lender that Borrower has paid to the title company
or to the appropriate Governmental Authorities all expenses and premiums of the title company and all other sums required in connection
with the issuance of the Title&nbsp;Policy and all recording and stamp taxes (including mortgage recording and intangible taxes)
payable in connection with recording the Mortgage of the Alabama Real Estate in the appropriate real estate records;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
recently issued flood zone determination certificate together with any other flood zone related evidence to enable Lender to be
in compliance with any applicable regulations of the Board of Governors of the Federal Reserve System, in form and substance reasonably
satisfactory to Lender;</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;evidence
of flood insurance, in each case in compliance with any applicable regulations of the Board of Governors of the Federal Reserve
System, in form and substance reasonably satisfactory to Lender;</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">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if
an exception to the Title Policy with respect to the Alabama Real Estate would arise without an ALTA survey, a current ALTA survey
of the Alabama Real Estate in form and substance reasonably satisfactory to Lender; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 34.95pt">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reports
and other reasonable information, in form, scope and substance reasonably satisfactory to Lender, regarding environmental matters
relating to the Alabama Real Estate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">Lender shall
have received all original stock certificates with respect to the Equity Interests pledged pursuant to the Pledge Agreement together
with all stock powers executed in blank.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Financial
Covenants (Section 5.8)</U></B>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 38.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 38.5pt">Borrower
covenants that, from the Closing Date until the Commitment Termination Date and payment in full of Obligations, Borrower shall
comply with the following covenants, unless Lender consents otherwise in writing:</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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fixed
Charge Coverage Ratio</U>. At the end of each Fiscal Quarter of Borrower, commencing with the Fiscal Quarter ending July 31, 2017,
Borrower and its Subsidiaries (including Foreign Subsidiaries) shall maintain a Fixed Charge Coverage Ratio of not less than 1.10
to 1.00 for the Applicable Fiscal 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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used herein, the following terms shall have the following meanings ascribed to them:</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">&ldquo;<U>Adjusted
EBITDA</U>&rdquo; shall mean for Borrower and its Subsidiaries (including Foreign Subsidiaries) for any Applicable Period, an amount
equal to EBITDA for such period <U>plus</U> add backs to EBITDA requested by Borrower and approved by Lender in its reasonable
discretion.</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">&ldquo;<U>Applicable
Fiscal Period</U>&rdquo; means a period of trailing 4 consecutive Fiscal Quarters ending at the end of each Fiscal Month.</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">&ldquo;<U>Capital
Expenditures</U>&rdquo; means, for any period, the aggregate cost of all capital assets acquired by Borrower and its Subsidiaries
(including Foreign Subsidiaries) during such period, as determined in accordance with GAAP.</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">&ldquo;<U>EBITDA</U>&rdquo;
shall mean for Borrower and its Subsidiaries (including any Foreign Subsidiaries) for any Applicable Period, an amount equal to
the sum of (a) Net Income for such period <U>plus</U> (b)&nbsp;to the extent deducted in determining Net Income for such period,
(i)&nbsp;Interest Expense, (ii)&nbsp;income tax expense, (iii)&nbsp;depreciation and amortization, and (iv) the amount of any non-cash
compensation as the result of any grant of stock or stock equivalents to employees, officers, directors or consultants of Borrower
and its Subsidiaries.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Fixed
Charges</U>&rdquo; shall mean, for Borrower and its Subsidiaries for such Applicable Period, the sum (without duplication) of (a)&nbsp;Interest
Expense for such Applicable Period, (b)&nbsp;scheduled principal payments made on Indebtedness of Borrower and its Subsidiaries
during such Applicable Period and (c)&nbsp;dividends and distributions to holders of capital stock, warrants and related instruments
paid during such Applicable 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">&ldquo;<U>Fixed
Charge Coverage Ratio</U>&rdquo; means for any Applicable Period, a ratio of (a) Adjusted EBITDA for such Applicable Period <U>minus</U>
the actual amount paid by Borrower and its Subsidiaries in cash on account of unfinanced Capital Expenditures during such Applicable
Period (which for the avoidance of doubt shall include Capital Expenditures financed with proceeds of Revolver Loans) <U>minus</U>
taxes actually paid in cash during such applicable period to (b) Fixed Charges for such Applicable 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">&ldquo;<U>Interest
Expense</U>&rdquo; shall mean, for Borrower and its Subsidiaries for any Applicable Period determined on a consolidated basis in
accordance with GAAP, the sum of (i)&nbsp;total interest expense, including without limitation the interest component of any payments
in respect of capital leases capitalized or expensed during such period (whether or not actually paid during such period) <U>plus</U>
(ii)&nbsp;the net amount payable (or <U>minus</U> the net amount receivable) under hedging agreements during such period (whether
or not actually paid or received during such 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">&ldquo;<U>Net
Income</U>&rdquo; shall mean, for any period, the net income (or loss) of Borrower and its Subsidiaries for such period determined
on a consolidated basis in accordance with GAAP, but excluding therefrom (to the extent otherwise included therein) (i) any extraordinary
gains or losses, (ii) any equity interest of Borrower or any Subsidiary of Borrower in the unremitted earnings of any person that
is not a Subsidiary and (iii) any income (or loss) of any person accrued prior to the date it becomes a Subsidiary or is merged
into or consolidated with Borrower or any Subsidiary on the date that such person&rsquo;s assets are acquired by Borrower or any
Subsidiary.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Notices
(&sect;8.4)</U></B></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">If to Borrower:</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">202 Pride
Lane, S.W.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Decatur,
Alabama 35603</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>Attn</U>:
Teri W. Hunt</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Email Address:
<U>thunt@lakeland.com</U>&#9;</P>

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


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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">3333 Peachtree
Road, 4<SUP>th</SUP> Floor, East Tower</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Atlanta,
Georgia 30326</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>Attn</U>:
Joseph A. Massaroni</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>Email
Address: </U>&nbsp;<U>joseph.a.massaroni@suntrust.com</U></P>

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


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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">The undersigned
have executed this Terms Schedule on the day and year first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><B>&nbsp;</B></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="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>Accepted in Atlanta, Georgia</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>BORROWER</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>LAKELAND INDUSTRIES, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 44%; text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">/s/ Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">CEO &amp; President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>Accepted in Atlanta, Georgia</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>LENDER</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>SUNTRUST BANK</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">/s/ William M. Sykstus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">William M. Sykstus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">Director</TD></TR>
</TABLE>
<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 0.5in; text-align: center; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>DEFINITIONS
SCHEDULE</U></B></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">This <B>Definitions
Schedule</B> is a part of the Loan Agreement dated May 10, 2017, between <B>LAKELAND INDUSTRIES, INC.,</B> as Borrower, and <B>SUNTRUST
BANK</B>, as Lender (as at any time amended, the &ldquo;<U>Loan Agreement</U>&rdquo;). When used in the Loan Agreement or in any
Schedule (including this Definitions Schedule) or Rider thereto, the following terms shall have the following meanings (terms defined
in the singular to have the same meaning when used in the plural and <I>vice versa</I>):</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">&ldquo;<U>Account
Control Agreement</U>&rdquo; means a Deposit Account Control Agreement in form and substance reasonably acceptable to Lender as
security for the Obligations, executed by each depository institution at which Borrower maintains a banking account.</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">&ldquo;<U>Account
Debtor</U>&rdquo; means a Person obligated to pay an Account.</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">&ldquo;<U>Accounts</U>&rdquo;
shall mean all &ldquo;accounts,&rdquo; as such term is defined in the UCC, of Borrower whether now existing or hereafter created
or arising, including, without limitation, (a) all accounts receivable, other receivables, book debts and other forms of obligations
(other than forms of obligations evidenced by chattel paper (as defined in the UCC) or instruments (as defined in the UCC) (including
any such obligations that may be characterized as an account or contract right under the UCC), (b) all of Borrower&rsquo;s rights
in, to and under all purchase orders or receipts for goods or services, (c) all of Borrower&rsquo;s rights to any goods represented
by any of the foregoing (including unpaid sellers&rsquo; rights of rescission, replevin, reclamation and stoppage in transit and
rights to returned, reclaimed or processed goods), (d) all rights to payment due to Borrower for property sold, leased, licensed,
assigned or otherwise disposed of, for a policy of insurance issued or to be issued, for a secondary obligation incurred or to
be incurred, arising out of the use of a credit card or charge card, or for services rendered or to be rendered by Borrower or
in connection with any other transaction (whether or not yet earned by performance on the part of Borrower), and (e) all collateral
security of any kind, given by any Account Debtor or any other Person with respect to any of the foregoing.</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"><FONT STYLE="font-size: 10pt">&ldquo;<U>Accounts
Formula Amount</U>&rdquo; </FONT>means, on any date of determination thereof, an amount equal to 85% of the net amount of Eligible
Accounts on such date plus an amount equal to the lesser of (a) $1,000,000 and (b) 85% of the net amount of Eligible Direct Container
Shipment Accounts on such date. As used herein, the phrase &quot;net amount of Eligible Accounts&quot; and &ldquo;net amount of
Eligible Direct Container Shipment Accounts&rdquo; shall mean the face amount of such Accounts on any date less any and all returns,
rebates, discounts (which may, at Lender's option, be calculated on shortest terms), credits, allowances or Taxes (including sales,
excise or other taxes) at any time issued, owing, claimed by Account Debtors, granted, outstanding or payable in connection with,
or any interest accrued on the amount of, such Accounts at such 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">&ldquo;<U>Acquisition</U>&rdquo;
means, with respect to any Person, the acquisition by such Person, in a single transaction or in a series of related transactions,
of (a) all or any substantial portion of the property of another Person, or any division, line of business or other business unit
of another Person or (b) at least a majority of the voting stock of another Person, in each case whether or not involving a merger
or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Affiliate</U>&rdquo;
means a Person (i)&nbsp;which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, another Person; (ii)&nbsp;which beneficially owns or holds 20% or more of any class of the Equity Interests
of a Person; or (iii)&nbsp;20% or more of the Equity Interests with power to vote of which is beneficially owned or held by another
Person or a Subsidiary of another Person. For purposes hereof, &ldquo;control&rdquo; means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of any
Equity Interest, by contract or otherwise.</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">&ldquo;<U>Agreement</U>&rdquo;
means the Loan Agreement, together with all Schedules (including the Terms Schedule and this Definitions Schedule), Exhibits and
Riders thereto (if any), in each case, whether now or hereafter annexed thereto.</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">&ldquo;<U>Alabama
Real Estate</U>&rdquo; means the real property of Borrower located at 202 Pride Lane S.W., Decatur, Alabama 35603.</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">&ldquo;<U>Anti-Corruption
Laws</U>&rdquo; means all laws, rules, and regulations of any jurisdiction applicable to Borrower or its Subsidiaries from time
to time concerning or relating to bribery or corruption.</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">&ldquo;<U>Applicable
Lending Office</U>&rdquo; shall mean, for each Type of Loan, the &ldquo;Lending Office&rdquo; of Lender (or an Affiliate of Lender)
as Lender may from time to time specify to Borrower as the office by which its Loans of such Type are to be made and maintained.</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">&ldquo;<U>Applicable
Margin</U>&rdquo; shall have the meaning ascribed to it in Item 4 of the Terms Schedule.</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">&ldquo;<U>Applicable
Unused Fee Percentage</U>&rdquo; means for any applicable period of calculation: (a) 0.50% per annum if the average Unused Revolver
Amount for such period is equal to or greater than 50% of the Revolver Commitment Amount for such period or (b) 0.25% per annum
if the average Unused Revolver Amount for such period is less than 50% of the Revolver Commitment Amount for such 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">&ldquo;<U>Authorized
Officer</U>&rdquo; means each Senior Officer, each Person identified in Item 1 of the Terms Schedule, and each other person designated
in writing by Borrower to Lender as an authorized officer to make requests for Loans or other extensions of credit under the Agreement.</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">&ldquo;<U>Availability</U>&rdquo;
means on any determination date, the amount equal to the lesser of (a) the Revolver Commitment Amount less the Availability Reserve
or (b) the Borrowing Base on such date, minus (in both cases (a) and (b)) the Revolver Credit Exposure on such date. If the amount
of the Revolver Credit Exposure is greater than the Borrowing Base at any date, Availability is zero.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Availability
Reserve</U>&rdquo; means on any date of determination thereof, an amount equal to the sum of the following (without duplication):
(i) an amount equal to three (3) months rental payments or other similar charges owing at such time by Borrower in respect of business
premises of Borrower owned by any Person other than Borrower on which Collateral of Borrower is located which Lender has not received
a Lien Waiver from the landlord or owner of such property; (ii) an amount equal to $150,000 for in-transit inventory expense; (iii)
any amounts which any Obligor is obligated to pay pursuant to the provisions of any of the Loan Documents that Lender elects to
pay for the account of such Obligor in accordance with authority contained in any of the Loan Documents; (iv) all customer deposits
or other prepayments held by Borrower; (v) the aggregate amount of all liabilities and obligations that are secured by Liens upon
any of the Collateral that are senior in priority to Lender&rsquo;s Liens if such Liens are not Permitted Liens (provided that
the imposition of a reserve hereunder on account of such Liens shall not be deemed a waiver of the Event of Default that arises
from the existence of such Liens) or are Permitted Liens; (vi) the outstanding amount of Banking Relationship Indebtedness (excluding
therefrom the Borrowings under this Agreement); and (vii) the Dilution Reserve and (viii) such additional reserves as Lender (in
its discretion exercised reasonably and in accordance with its customary business practices for comparable asset based transactions)
may from time to time establish against the gross amounts of Eligible Accounts and Eligible Inventory to reflect risks or contingencies
arising after the Closing Date that may affect such items and that have not already been taken into account in the calculation
of the Borrowing Base set forth in the Borrowing Base Certificate most recently provided by Borrower at such time pursuant to this
Agreement.</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">&ldquo;<U>Banking
Relationship Indebtedness</U>&rdquo; means Indebtedness or other obligations of Borrower to Lender (or any Affiliate of Lender),
including any Indebtedness arising out of or relating to (i)&nbsp;demand deposit and operating account relationships between Borrower
and Lender (or any Affiliate of Lender) or any cash management services provided to Borrower, including any obligations under Cash
Management Agreements, (ii) an agreement relating to any swap, cap, floor, collar, option, forward or combination thereof or similar
transaction, with respect to interest rate, foreign exchange, currency, commodity, credit or equity risk, and (iii) other products
provided by Lender to Borrower, including commercial credit card and merchant card services.</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">&ldquo;<U>Base
Rate</U>&rdquo; means the highest of (i) the rate which Lender announces from time to time as its prime or base lending rate, as
in effect from time to time, (ii) the Federal Funds rate, as in effect from time to time, plus one-half of one percent (&frac12;%)
per annum and (iii) one-month LMIR determined on a daily basis (any changes in such rate to be effective as of the date of any
change in such rate). Lender&rsquo;s prime lending rate is a reference rate and does not necessarily represent the lowest or best
rate actually charged to any customer. Lender may make commercial loans or other loans at rates of interest at, above, or below
Lender prime lending rate.</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">&ldquo;<U>Base
Rate Loan</U>&rdquo; when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, bears interest at a rate determined by reference to the Base Rate.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Bill
of Lading</U>&rdquo; shall have the meaning given to the term &ldquo;bill of lading&rdquo; in Section 1-201(6) of the UCC.</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">&ldquo;<U>Borrower&rsquo;s
Books</U>&rdquo; means all of Borrower&rsquo;s books and records relating to its existence, governance, financial condition or
operations, or any of the Collateral, regardless of the medium in which any such information may be recorded.</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">&ldquo;<U>Borrowing</U>&rdquo;
means a borrowing consisting of Loans of the same Type, made or converted or continued on the same 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">&ldquo;<U>Borrowing
Base</U>&rdquo; means on any date of determination thereof, an amount equal to the sum of the (a) Accounts Formula Amount, plus
(b) the Inventory Formula Amount, minus (c) an amount equal to the greater of (i) $1,500,000 or (ii) 7.5% of the then current Revolver
Commitment Amount, minus (d) the Availability Reserve on such date. For the avoidance of doubt, no asset acquired in connection
with an Acquisition shall be included in the Borrowing Base until Lender has completed its due diligence with respect to such asset,
including the receipt of any appraisals or field examinations with respect thereto (which Lender agrees to do in a commercially
reasonable time), and such due diligence is satisfactory to Lender in all respects in its reasonable discretion.</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">&ldquo;<U>Borrowing
Base Certificate</U>&rdquo; means a certificate, substantially in the form attached hereto as Exhibit 5.6(d), by which Borrower
shall certify to Lender, with such frequency as provided in Section 5.6(d) of the Loan Agreement, the amount of the Borrowing Base
as of the date of the certificate (which date shall be not more than two (2) Business Days earlier than the date of submission
of such certificate to Lender) and the calculation of such amount.</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">&ldquo;<U>Business
Day</U>&rdquo; means any day of the week, excluding Saturdays, Sundays, or a day on which banks in Georgia are authorized or required
to be closed.</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">&ldquo;<U>Cash
Collateral</U>&rdquo; means cash, and any interest or other income earned thereon, that is deposited with Lender in accordance
with the Agreement to cash collateralize any of the Obligations.</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">&ldquo;<U>Cash
Collateral Account</U>&rdquo; means a demand deposit, money market or other account established by Borrower Lender or an Affiliate
of Lender, which account shall be under the control of and in Lender&rsquo;s name and subject to Lender Liens.</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">&ldquo;<U>Cash
Management Agreements</U>&rdquo; means any agreements between Borrower and Lender for the provision of cash management services
to Borrower, including automated clearinghouse services, controlled disbursement services, electronic funds transfer services,
information reporting services, lockbox services, stop payment services and wire transfer services.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Change
in Law</U>&rdquo; shall mean (i) the adoption of any applicable law, rule or regulation after the date of this Agreement, (ii)
any change in any applicable law, rule or regulation, or any change in the interpretation, implementation or application thereof,
by any Governmental Authority after the date of this Agreement, or (iii) compliance by Lender (or its Applicable Lending Office)
with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued
after the date of this Agreement; <FONT STYLE="font-weight: normal; text-underline-style: double">provided that for purposes of
this Agreement, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives
in connection therewith and (y) all requests, rules, guidelines or directives promulgated by Lender for International Settlements,
the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory
authorities, in each case pursuant to Basel III, shall in each case be deemed to be a &ldquo;Change in Law&rdquo;, regardless
of the date enacted, adopted or issued.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Change
of Control</U>&rdquo; means that: (a) any Person or two or more Persons acting in concert (other than Permitted Holders), shall
have acquired beneficial ownership, directly or indirectly, of the Equity Interests of Borrower (or other securities convertible
into such Equity Interests) representing 50% or more of the combined voting power of all Equity Interests of Borrower entitled
(without regard to the occurrence of any contingency) to vote for the election of members of the board of directors of Borrower&#894;
(b) without the prior written consent of Lender (which shall not be unreasonably withheld), any Person or two or more Persons acting
in concert (other than Permitted Holders), shall have acquired by contract or otherwise, or shall have entered into a contract
or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly,
a controlling influence over the management or policies of Borrower or control over the Equity Interests of such Person entitled
to vote for members of the board of directors of Borrower on a fully diluted basis (and taking into account all such Equity Interests
that such Person or group has the right to acquire pursuant to any option right) representing 50% or more of the combined voting
power of such Equity Interests&#894; or (c) during any period of 24 consecutive months commencing on or after the Closing Date,
the occurrence of a change in the composition of the board of directors of Borrower such that a majority of the members of such
board of directors are not Continuing Directors.</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">&ldquo;<U>Closing
Certificate</U>&rdquo; means the Closing and Incumbency Certificate, executed by certain senior officers of Borrower in favor of
Lender as of the Closing 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">&ldquo;<U>Closing
Date</U>&rdquo; means the date on which the initial extension of credit is made by Lender, whether by funding of a Loan or otherwise.</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">&ldquo;<U>Code</U>&rdquo;
shall mean the Internal Revenue Code of 1986, as amended and in effect from time to time.</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">&ldquo;<U>Collateral</U>&rdquo;
means all of the property and interests in property described in the Security Agreement; all property described in any of the other
Security Documents as security for the payment or performance of any of the Obligations; and all other property and interests in
property that now or hereafter secure the payment or performance of any of the Obligations.</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">&ldquo;<U>Commitment</U>&rdquo;
means the commitment of Lender to make Revolver Loans in accordance with the Agreement, up to the Revolver Commitment Amount.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Commitment
Termination Date</U>&rdquo; means the date that is the sooner to occur of (i) the last day of the Term or (ii) the date on which
the Commitment is terminated pursuant to <U>Section&nbsp;2</U> of the Loan Agreement.</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">&ldquo;<U>Compliance
Certificate</U>&rdquo; means a Compliance Certificate, in the form attached hereto as Exhibit A, to be submitted to Lender by Borrower
pursuant to the Agreement and certified as true and correct by a Senior Officer.</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">&ldquo;<U>Consolidated</U>&rdquo;
means, when used with reference to financial statements or financial statement items of Borrower and its Subsidiaries, such statements
or items on a consolidated basis in accordance with applicable principles of consolidation under GAAP.</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">&ldquo;<U>Continuing
Director</U>&rdquo; means (a) any of Christopher J. Ryan, Alfred John Kreft, Stephen M. Bachelder, Thomas McAteer, or James M.
Jenkins, which constitute the members of the board of directors of Borrower who are directors of Borrower on the Closing Date,
and (b) any individual who becomes a member of the board of directors of Borrower after the Closing Date if such individual was
approved, appointed or nominated for election to the board of directors by either the Permitted Holders or a majority of the Continuing
Directors, but excluding any such individual originally proposed for election in opposition to the board of directors in office
at the Closing Date in an actual or threatened election contest relating to the election of the directors of Borrower and whose
initial assumption of office resulted from such contest or the settlement thereof.</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">&ldquo;<U>Controlled
Group</U>&rdquo; shall mean, at any time, Borrower and all members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control and all other entities which, together with any Borrower, are treated as a single
employer under Section 414 of the Code.</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">&ldquo;<U>Custome</U>r&rdquo;
shall mean and include the account debtor with respect to any Account and/or the prospective purchaser of goods, services or both
with respect to any contract or contract right, and/or any party who enters into or proposes to enter into any contract or other
arrangement with Borrower, pursuant to which Borrower is to deliver any personal property or perform any services.</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">&ldquo;<U>Default</U>&rdquo;
means an event or condition the occurrence of which would, with the lapse of time or the giving of notice, or both, become an Event
of Default.</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">&ldquo;<U>Default
Rate</U>&rdquo; means, with respect to any Obligations and during any time that an Event of Default exists, a per annum rate equal
to the sum of the Default Margin (as specified in Item 4 of the Terms Schedule), <U>plus</U> the Applicable Margin <U>plus</U>
the Base Rate in effect from time to time.</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">&ldquo;<U>Dilution
Ratio</U>&rdquo; means, at any date, the amount (expressed as a percentage) equal to (i)&nbsp;the aggregate amount of all deductions,
credit memos, returns, adjustments, allowances, bad debt write-offs and other non-cash credits which are recorded to reduce Accounts
for the twelve most recently ended Fiscal Months, divided by (ii) total gross sales from Borrower for the same Fiscal Months.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Dilution
Reserve</U>&rdquo; means, at any date, an amount equal to (i) the percentage points by which the Dilution Ratio exceeds five percent
(5%), multiplied by (ii) the Eligible Accounts on such 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">&ldquo;<U>Direct
Container Shipment Account</U>&rdquo; means an Account generated upon a direct container shipment from an Affiliate of Borrower
in China directly to a customer of Borrower in the United States in satisfaction of Borrower&rsquo;s obligations under its sales
contract with such customer.</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">&ldquo;<U>Distribution</U>&rdquo;
means, in respect of any entity, (i) any declaration or payment of any dividend or the incurrence of any liability to make any
other payment or distribution of cash or other property or assets in respect of any Equity Interests of the entity (except distributions
in such Equity Interests), (ii) any payment, loan, contribution, or other transfer of funds or other property to any holder of
an equity interest in the entity other than payments of compensation in the ordinary course of business to such holders who are
employees of such entity and (iii) any payment of management fees (or other fees of a similar nature) by the entity to any holder
of an Equity Interest of such entity or its Affiliates; and any payment in the nature deferred purchase price of property, however
characterized, including , without limitation, as an &ldquo;earn-out,&rdquo; fee, royalty or otherwise.</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">&ldquo;<U>Dollars</U>&rdquo;
and &ldquo;<U>$</U>&rdquo; means dollars in lawful currency of the United States of America.</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">&ldquo;<U>Domestic
Subsidiary</U>&rdquo; shall mean any Subsidiary of any Person that is organized or incorporated in the United States, any State
or territory thereof or the District of Columbia.</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">&ldquo;<U>Dominion
Account</U>&rdquo; means a special account of Lender established by Borrower at Lender, and over which Lender shall have sole and
exclusive access and control for withdrawal purposes.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Eligible
Account</U>&rdquo; means an Account which arises in the Ordinary Course of Business of Borrower from the sale of goods or the provision
of services, in each case which is payable in Dollars by the United States of America, is subject to Lender's duly perfected Lien
subject only to Permitted Liens, and is deemed by Lender, in its reasonable credit judgment, to be an Eligible Account. Without
limiting the generality of the foregoing, no Account shall be an Eligible Account if: (i) it arises out of a sale made by Borrower
to any other Subsidiary or Affiliate of Borrower, or a Person controlled by an Affiliate of Borrower; (ii) it is due or unpaid
more than 90 days after the original invoice date; (iii) it is unpaid more than 60 days after its due date; (iv) 50% or more of
the Accounts from the Account Debtor are not deemed Eligible Accounts hereunder; (v) (A) the total unpaid Accounts of certain Account
Debtors (to be agreed to by Borrower and Lender) exceeds a percentage (to be agreed to by Borrower and Lender) of the aggregate
amount of all Eligible Accounts, to the extent of such excess; or (B) the total unpaid Accounts of any other Account Debtor exceeds
15% of the aggregate amount of all Eligible Accounts, to the extent of such excess; (vi) any covenant, representation or warranty
contained in the Security Agreement with respect to such Account is inaccurate, untrue or has been breached; (vii) the Account
Debtor is also Borrower's creditor or supplier to the extent that it has the right to offset, deduct or assert counterclaims with
respect to such Account, or the Account Debtor has disputed liability with respect to such Account, or the Account Debtor has made
any claim with respect to any other Account due from such Account Debtor to Borrower, or the Account otherwise is or may become
subject to any right of setoff, counterclaim, recoupment, reserve, defense or chargeback, provided that, the Accounts of such Account
Debtor shall be ineligible only to the extent of such dispute or right of offset, counterclaim, recoupment, reserve, defense or
chargeback; (viii) an Insolvency Proceeding has been commenced by or against the Account Debtor or the Account Debtor has failed,
suspended or ceased doing business; (ix) the Account Debtor is not or has ceased to be Solvent; (x) it arises from a sale to an
Account Debtor that is organized under the laws of any jurisdiction outside of the United States or that has its principal office,
assets or place of business outside the United States except to the extent that the sale is supported by a letter of credit or
credit insurance that is acceptable in all respects to Lender and duly assigned to Lender; (xi) it arises from a sale to the Account
Debtor on a bill-and-hold, guaranteed sale, sale-or-return, sale-on-approval, consignment or any other repurchase or return basis;
(xii) the Account Debtor is located in any state which imposes conditions on the right of a creditor to collect accounts receivable
unless the Borrower has either qualified to transact business in such state as a foreign entity, is not required to so qualify
or filed a Notice of Business Activities Report or other required report with the appropriate officials in those states for the
then current year; (xiii) the Account Debtor is located in a state in which Borrower is deemed to be doing business under the laws
of such state and which denies creditors access to its courts in the absence of qualification to transact business in such state
or of the filing of any reports with such state, unless Borrower has qualified as a foreign entity authorized to transact business
in such state or has filed all required reports; (xiv) the Account is subject to a Lien other than in favor of Lender or other
than a Permitted Lien; (xv) the Account is evidenced by Chattel Paper or an Instrument of any kind, or has been reduced to judgment;
(xvi) the Account represents a progress billing or a retainage or arises from a sale on a cash-on-delivery basis; (xvii) Borrower
has made any agreement with the Account Debtor for any deduction therefrom (to the extent of such deduction), except for discounts
or allowances which are made in the Ordinary Course of Business for prompt payment and which discounts or allowances are reflected
in the calculation of the face value of each invoice related to such Account or are otherwise disclosed to Lender in writing to
the extent they exceed $50,000<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>1</SUP></FONT>; or (xviii) Borrower
has made an agreement with the Account Debtor to extend the time of payment thereof beyond payment and due dates provided in clauses
(ii) and (iii) above. For the avoidance of doubt, no Account shall simultaneously constitute both an Eligible Account and an Eligible
Direct Container Shipment Account.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>1</SUP></FONT>
Lakeland requested $100,000; Courtney and I thought $50,000 was more appropriate.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Eligible
Direct Container Shipment Account</U>&rdquo; means a Direct Container Shipment Account that would be an Eligible Account but for
its ineligibility under clause (xv) of the definition thereof.</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">&ldquo;<U>Eligible
Foreign In-Transit Inventory</U>&rdquo; means Inventory which is owned by Borrower (other than packaging or shipping materials,
labels, samples, display items, bags, replacement parts and manufacturing supplies) which would constitute Eligible Inventory but
for the fact that such Inventory is in transit from a location outside the United States to a location of Borrower in the United
States and which Lender, in its reasonable credit judgment, deems to be Eligible In-Transit Inventory. Without limiting the generality
of the foregoing, no Inventory shall be Eligible Foreign In-Transit Inventory unless: (a) title to such Inventory has passed to
Borrower; (b) Borrower shall have been invoiced for the full purchase price for such Inventory to the applicable vendor, including
all shipping and related charges (or, with respect to Inventory purchased from any Affiliate of Borrower, such Affiliate has executed
an agreement in favor of Lender and in form and substance reasonably acceptable to Lender in which such Affiliate waives all rights
of an unpaid seller with respect to such Inventory) and such vendor has no right under any applicable law or pursuant to any document
or agreement relating to such Inventory to reclaim, divert the shipment of, stop delivery of or otherwise assert any Lien rights
or title retention with respect to, such Inventory; (c) such Inventory is in the possession and control of a third-party shipping
company that is independent of the seller thereof; (d) such Inventory is evidenced by a tangible Bill of Lading that (i) is
an ocean Bill of Lading, (ii) names Borrower, and only Borrower (or, following the request of Lender while an Event of Default
exists, names Lender and only Lender), as consignee, (iii) is located in the United States and in possession of a customs broker
that is a party to an Imported Goods Agreement or, following the request of Lender, in the possession of Lender; (iv) is issued
either by a common carrier which is not an Affiliate of the applicable vendor or Borrower; (v) covers only such in-transit
Inventory; (vi) names Lender as a notify party and bears a conspicuous notation on its face of Lender&rsquo;s security interest
therein (unless such Bill of Lading is a negotiable Bill of Lading issued to the order of Lender); (vii) is subject to Lender&rsquo;s
duly perfected, first-priority security interest and no other Lien that is not a Permitted Lien; and (viii) is otherwise in
form and content reasonably acceptable to Lender; (e) such Inventory is fully insured with such insurance companies, in such
amounts and subject to such deductibles as are reasonably satisfactory to Lender and with respect to which Lender has been named
a loss payee; (f) Borrower has engaged an independent customs broker or other agent with respect to such Inventory, and such
customs broker or other agent and Borrower shall have executed and delivered to Lender an Imported Goods Agreement in form and
substance reasonably acceptable to Lender; (g) Borrower and the applicable customs broker or other agent are in full compliance
with the terms and conditions of the applicable Imported Goods Agreement; (h) such Inventory shall not have been in transit
for more than 60 days; and (i) Lender is otherwise satisfied in its reasonable discretion with all aspects of the arrangement
among Borrower, the shipping company and all other carriers, the seller of such Inventory and any customs broker or other agent
of Borrower involved in the procurement of such Inventory. For the avoidance of doubt, no Inventory shall simultaneously constitute
both Eligible In-Transit Inventory and Eligible Inventory.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<FONT STYLE="font-size: 10pt"><U>Eligible
Inventory</U>&rdquo; means Inventory owned by Borrower which is held for resale which Lender, in its reasonable credit judgment,
deems to be Eligible Inventory. Without limiting the generality of the foregoing, no such Inventory shall be Eligible Inventory
unless (i) it is Inventory in good, saleable condition and not materially defective; (ii) it is finished goods or raw materials;
(iii) it is not Foreign In-Transit Inventory; (iv) it is not held on consignment or other sale or return terms; (v) it is not Slow-Moving
Inventory; (vi) it meets all standards imposed by any governmental authority; (vii) it conforms in all respects to the warranties
and representations set forth in the Security Agreement; (viii) it is at all times subject to Lender's duly perfected, first priority
security interest and no other Lien except a Permitted Lien; (ix) it is situated at a location in compliance with the Loan Agreement,
is not in transit or outside the continental United States; and (x) it is not the subject of a negotiable warehouse receipt or
other negotiable Document or under license to a third party.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Eligible
Slow-Moving Inventory</U>&rdquo; shall mean finished goods Inventory that would be Eligible Inventory but for the fact that it
is Slow-Moving Inventory.</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">&ldquo;<U>Equipment</U>&rdquo;
means as to any Person, all of such Person&rsquo;s now owned and hereafter acquired equipment, as defined in the UCC, wherever
located, including all attachments, accessions and property now or hereafter affixed thereto or used in connection therewith, and
substitutions and replacements thereof, wherever located.</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">&ldquo;<U>Equity
Interest</U>&rdquo; means the interest of (i)&nbsp;a shareholder in a corporation, (ii)&nbsp;a partner (whether general or limited)
in a partnership (whether general, limited or limited liability), (iii)&nbsp;a member in a limited liability company, or (iv)&nbsp;any
other Person having any other form of equity security or ownership interest.</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">&ldquo;<U>ERISA</U>&rdquo;
means the Employee Retirement Income Security Act of 1974.</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">&ldquo;<U>Eurodollar
Loan</U>&rdquo; when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
bears interest at a rate determined by reference to the LIBOR Market Index Rate.</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">&ldquo;<U>Eurodollar
Rate</U>&rdquo; means (a) the rate per annum equal to the London interbank offered rate for deposits in U.S. Dollars appearing
on Reuters screen page LIBOR 01 (or on any successor or substitute page of such service or any successor to such service, or such
other commercially available source providing such quotations as may be designated by Lender from time to time) at approximately
11:00 a.m. (London time) two (2) Business Days prior the first day of such Interest Period, for a one (1) month period, divided
by (b) a percentage equal to 1.00% minus the then stated maximum rate of all reserve requirements (including any marginal, emergency,
supplemental, special or other reserves and without benefit of credits for proration, exceptions or offsets that may be available
from time to time) applicable to any member bank of the Federal Reserve System in respect of Eurocurrency liabilities as defined
in Regulation D (or any successor category of liabilities under Regulation D); provided, that (x) if the rate referred to in clause
(a) above is not available at any such time for any reason, then the rate referred to in clause (a) shall instead be the interest
rate per annum, as determined by Lender, equal to the arithmetic average of the rates per annum at which deposits in U.S. Dollars
in an amount equal to the amount of such Eurodollar loans are offered by major banks in the London market to Lender at approximately
11:00 a.m. (London time), two (2) Business Days prior to the first day of such Interest Period, and (y) if the interest rate determined
pursuant to this definition is less than zero, then the Eurodollar Rate shall be deemed to equal zero.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Event
of Default</U>&rdquo; means any event or condition described in <U>Section&nbsp;7</U> of the Agreement<B>.</B></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">&ldquo;<U>Excluded
Taxes</U>&rdquo; shall mean any of the following Taxes imposed on or with respect to Lender or required to be withheld or deducted
from a payment to Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits
Taxes, in each case, (i) imposed as a result of Lender being organized under the laws of, or having its principal office or, its
applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are
Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of Lender with respect
to an applicable interest in a Loan or a Commitment pursuant to a law in effect on the date on which Lender changes its lending
office, except in each case to the extent that, pursuant to Section 2.7, amounts with respect to such Taxes were payable to Lender
immediately before it changed its lending office, (c) Taxes attributable to Lender&rsquo;s failure to comply with Section 2.7 and
(d) any U.S. federal withholding Taxes imposed under FATCA.</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">&ldquo;<U>FATCA</U>&rdquo;
shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations
thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.</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">&ldquo;<U>Federal
Funds Rate</U>&rdquo; means, for any day, the rate per annum (rounded upwards, if necessary, to the next 1/100<SUP>th</SUP> of
1%) equal to the weighted average of the rates on overnight Federal funds transactions with member banks of the Federal Reserve
System arranged by Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding Business
Day or if such rate is not so published for any Business Day, the Federal Funds Rate for such day shall be the average rounded
upwards, if necessary, to the next 1/100th of 1% of the quotations for such day on such transactions received by Lender from three
Federal funds brokers of recognized standing selected by Lender.</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">&ldquo;<U>Fiscal
Month</U>&rdquo; means any fiscal month 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">&ldquo;<U>Fiscal
Quarter</U>&rdquo; means any fiscal quarter 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>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Fiscal
Year</U>&rdquo; means the fiscal year of Borrower for accounting and tax purposes which is described in the Information Certificate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Fixed
Assets</U>&rdquo; means property of Borrower consisting of Equipment, Fixtures or real estate.</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">&ldquo;<U>Foreign
In-Transit Inventory</U>&rdquo; shall mean Inventory of Borrower that is in transit from a location outside the United States to
any location within the United States of Borrower or a Customer 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">&ldquo;<U>Foreign
Subsidiary</U>&rdquo; shall mean any Subsidiary of any Person that is not organized or incorporated in the United States, any State
or territory thereof or the District of Columbia.</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">&ldquo;<U>GAAP</U>&rdquo;
means generally accepted accounting principles in the United States of America.</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">&ldquo;<U>Governmental
Authority</U>&rdquo; shall mean the government of the United States, any other nation or any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).</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">&ldquo;<U>Guarantor</U>&rdquo;
means each Person listed on Item 2 of the Terms Schedule as a Guarantor and any other Person who may guarantee payment or collection
of any of the Obligations.</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">&ldquo;<U>Guaranty</U>&rdquo;
means each guaranty now or hereafter executed by a Guarantor with respect to any of the Obligations.</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">&ldquo;<U>Imported
Goods Agreement</U>&rdquo; means an agreement among Borrower, Lender and a customs broker or other agent engaged by Borrower (and
reasonably acceptable to Lender) with respect to Inventory purchased from a Person located outside the United States, pursuant
to which, among other things, the customs broker or other agent agrees, upon notice from Lender, to hold and dispose of the subject
Inventory of which it has possession or control solely as directed by Lender.</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">&ldquo;<U>Indebtedness</U>&rdquo;
of any Person shall mean, without duplication, (i) obligations of such Person for borrowed money, (ii) obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments, (iii) obligations of such Person in respect of the deferred
purchase price of property or services (other than trade payables incurred in the ordinary course of business on terms customary
in the trade), (iv) obligations of such Person under any conditional sale or other title retention agreement(s) relating to property
acquired by such Person, (v) capitalized lease obligations of such Person, (vi) obligations, contingent or otherwise, of such Person
in respect of letters of credit, acceptances or similar extensions of credit, (vii) guaranties by such Person of the type of indebtedness
described in clauses (i) through (vi) above, (viii) all indebtedness of a third party secured by any lien on property owned by
such Person, whether or not such indebtedness has been assumed by such Person, (ix) all obligations of such Person, contingent
or otherwise, to purchase, redeem, retire or otherwise acquire for value any common stock of such Person, (x) off-balance sheet
liability retained in connection with asset securitization programs, synthetic leases, sale and leaseback transactions or other
similar obligations arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing
but which does not constitute a liability on the consolidated balance sheet of such Person and its subsidiaries and (xi) obligations
under any interest rate hedge agreement or foreign exchange agreement.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Indemnified
Claims</U>&rdquo; means all claims, demands, liabilities, obligations, losses, damages, penalties, actions, judgments, suits, awards,
remedial response costs, expenses or disbursements of any kind or nature whatsoever (including reasonable attorneys&rsquo;, accountants&rsquo;,
auctioneers&rsquo;, consultants&rsquo; or paralegals&rsquo; fees and expenses), which may at any time be imposed on, incurred by,
or asserted against any Indemnitee in any way relating to or arising out of the administration, performance or enforcement by Lender
of any of the Loan Documents or consummation of any of the transactions described therein; the existence of, perfection of a Lien
upon or the sale or collection of or other realization upon any Collateral; or the failure of any Obligor to observe, perform or
discharge any of such Obligor&rsquo;s covenants or duties under any of the Loan Documents, in each case including any cost or expense
incurred by any Indemnitee in connection with any investigation, litigation, arbitration, or other judicial or non-judicial proceeding
whether or not such Indemnitee is a party thereto. Notwithstanding the foregoing, no Indemnitee shall be entitled to payment indemnity
in the event of the gross negligence or willful misconduct of the Indemnitee.</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">&ldquo;<U>Indemnified
Taxes</U>&rdquo; shall mean (a) Taxes other than Excluded Taxes, imposed on or with respect to any payment made by or on account
of any obligation of any Obligor under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.</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">&ldquo;<U>Indemnitees</U>&rdquo;
means Lender and each of its officers, directors, agents (including legal counsel) and Affiliates.</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">&ldquo;<U>Information
Certificate</U>&rdquo; means the Information Certificate dated on May 10, 2017, executed by Borrower in favor of Lender.</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">&ldquo;<U>Insolvency
Proceeding</U>&rdquo; means a bankruptcy, receivership, assignment for the benefit of creditors, debt adjustment, liquidation or
any other insolvency case or proceeding under any applicable law.</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">&ldquo;<U>Interest
Period</U>&rdquo; shall mean a period of one month.</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">&ldquo;<U>Interest
Rate Determination Date</U>&rdquo; means two (2) Business Days prior to the Closing Date and two (2) Business Days prior to the
first day of each calendar month thereafter.</P>

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


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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<FONT STYLE="font-size: 10pt"><U>Inventory
Formula Amount</U></FONT>&rdquo; <FONT STYLE="font-size: 10pt">means on any date of determination thereof, an amount equal to the
sum of:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
lesser of (i) 65% of Eligible Inventory, valued at the lower of cost or market and (ii) 85% of the Net Orderly Liquidation Value
of Eligible Inventory, <U>plus</U></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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
lesser of (i) $2,000,000 and (ii) 65% of the Net Orderly Liquidation Value of Eligible Foreign In-Transit Inventory, <U>plus</U></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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
least of (i) $2,000,000, (ii) 65% of Eligible Slow-Moving Inventory, valued at the lower of cost or market and (iii) 85% of the
Net Orderly Liquidation Value of Eligible Slow-Moving Inventory.</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">&ldquo;<U>Investment</U>&rdquo;
means, as to any Person, any direct or indirect acquisition, transfer of Property or investment by such Person, whether by means
of (a) the purchase or other acquisition of Equity Interests of another Person or (b) a loan, advance or capital contribution to,
guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which
the investor guarantees Indebtedness of such other Person. For purposes of covenant compliance, the amount of any Investment shall
be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.</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">&ldquo;<U>LC
Commitment</U>&rdquo; means that portion of the Revolver Commitment Amount that may be used by Borrower for the issuance of Letters
of Credit in an aggregate face amount not to exceed $5,000,000.</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">&ldquo;<U>LC
Disbursement</U>&rdquo; means a payment made by Lender pursuant to a Letter of Credit.</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">&ldquo;<U>LC
Exposure</U>&rdquo; means, at any time, the sum of (i)&nbsp;the aggregate undrawn amount of all outstanding Letters of Credit at
such time, <I>plus</I> (ii)&nbsp;the aggregate amount of all LC Disbursements that have not been reimbursed by or on behalf of
Borrower at such time.</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">&ldquo;<U>Lender
Expenses</U>&rdquo; means all of the following: (a) Taxes and insurance premiums required to be paid by Borrower under the Loan
Documents which are paid or advanced by Lender; (b)&nbsp;filing, recording, publication and search fees paid or incurred by Lender,
including all recording taxes; and (c)&nbsp;the costs, fees (including reasonable attorneys&rsquo;, paralegals&rsquo;, auctioneers&rsquo;
appraisers&rsquo; or other consultants fees) and expenses incurred by Lender (i)&nbsp;to inspect, copy, audit or examine or any
of Borrower&rsquo;s Books or inspect, count or appraise any Collateral in accordance with this Agreement, (ii)&nbsp;to correct
any Default or enforce any provision of any of the Loan Documents, whether or not litigation is commenced, (iii)&nbsp;in gaining
possession of, maintaining, handling, preserving, insuring, storing, shipping, preparing for sale, advertising for sale, selling
or foreclosing a Lien upon any of the Collateral, whether or not a sale is consummated, (iv)&nbsp;in collecting the Accounts or
recovering any of the Obligations, or (v)&nbsp;in structuring, drafting, reviewing or preparing any amendment, modification or
waiver of any of the Loan Documents or in defending the validity, priority or enforceability of Liens.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Letter
of Credit</U>&rdquo; means any documentary or standby Letter of Credit issued pursuant to <U>Section&nbsp;1.4</U> by Lender for
the account of Borrower pursuant to the LC Commitment.</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">&ldquo;<U>LIBOR
Market Index Rate</U>&rdquo; or &ldquo;<U>LMIR</U>&rdquo; means the rate per annum equal to the Eurodollar Rate determined with
respect to an Interest Period of one month. The LIBOR Market Index Rate shall be determined monthly on each Interest Rate Determination
Date and shall be increased or decreased, as applicable, automatically and without notice to any person on such Interest Rate Determination
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">&ldquo;<U>Lien</U>&rdquo;
means any interest in property securing an obligation owed to or a claim by a Person, whether such interest is based on common
law, statute or contract.</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">&ldquo;<U>Lien
Waiver</U>&rdquo; means the waiver or subordination of Liens satisfactory to Lender from a lessor, mortgagee, warehouse operator,
processor or other third party that may have a Lien upon any Collateral that is in such third party&rsquo;s possession or is located
or leased by such party to Borrower, by which such Person shall waive or subordinate its Liens and claims with respect to any Collateral
in favor of Lender and shall assure Lender&rsquo;s access to any Collateral for the purpose of allowing Lender to enforce its rights
and Liens with respect thereto.</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">&ldquo;<U>Loan</U>&rdquo;
means an advance of money made by Lender to Borrower pursuant to the Agreement, including all Revolver Loans and the Term Loan.</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">&ldquo;<U>Loan
Account</U>&rdquo; shall have the meaning set forth in <U>Section 1.8</U> of the Loan Agreement.</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">&ldquo;<U>Loan
Documents</U>&rdquo; means, collectively, the Agreement (including each Rider from time to time executed by the parties), each
Note, the Security Documents, Cash Management Agreements, each Lien Waiver, Borrowing Base Certificates, and any other instruments
or agreements executed by an Obligor in connection with the Agreement or any of the Obligations.</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">&ldquo;<U>Material
Adverse Effect</U>&rdquo; means the effect of any event, condition, action, omission or circumstance, which, alone or when taken
together with other events, conditions, actions, omissions or circumstances occurring or existing concurrently therewith, (i)&nbsp;has
a material adverse effect upon the business, operations, properties or condition (financial or otherwise) of all Obligors taken
as a whole; (ii)&nbsp;has or would be reasonably expected to have any material adverse effect upon the validity or enforceability
of the Agreement or any of the other material Loan Documents; (iii)&nbsp;has any material adverse effect upon the title to or value
of any material part of the Collateral, the Liens of Lender with respect to the Collateral or the priority of any such Liens; (iv)&nbsp;materially
impairs the ability of any Obligor to perform its obligations under any of the Loan Documents, including repayment of any of the
Obligations when due; or (v)&nbsp;materially impairs or delays Lender&rsquo;s ability to enforce or collect the Obligations or
realize upon the Collateral in accordance with the Loan Documents or applicable law.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Mortgage</U>&rdquo;
means the mortgage of even date herewith granted by Borrower to Lender granting Lender a Lien on the Alabama Real Estate to secure
the Obligations.</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">&ldquo;<U>Multiemployer
Plan</U>&rdquo; shall mean a &ldquo;multiemployer plan&rdquo; as defined in Sections 3(37) or 4001(a)(3) of ERISA to which contributions
are required or, within the preceding five plan years, were required by Borrower or any member of the Controlled Group.</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">&ldquo;<U>Negotiable
Document</U>&rdquo; shall mean a Document that is &ldquo;negotiable&rdquo; within the meaning of Article 7 of the Uniform Commercial
Code.</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">&ldquo;<U>Net
Orderly Liquidation Value</U>&rdquo; means the net orderly liquidation value of Inventory of Borrower determined pursuant to an
appraisal performed by an appraiser satisfactory to Lender, which appraisal shall include, without limitation, as a factor in the
determination of net orderly liquidation value, all costs and expenses projected to be incurred in the conduct of any liquidation
of all or any portion of the Inventory.</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">&ldquo;<U>Notes</U>&rdquo;
means the Revolver Note and any other promissory note executed by Borrower at Lender&rsquo;s request to evidence any of the Obligations.</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">&ldquo;<U>Notice
of Conversion</U>&rdquo; means a notice given by Borrower to Lender in respect of the conversion or continuation of an outstanding
Borrowing as provided in <U>Section 1.5(b)</U>.</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">&ldquo;<U>Notice
of Revolving Borrowing</U>&rdquo; shall have the meaning as set forth in <U>Section 1.1(c)</U>.</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">&ldquo;<U>Obligations</U>&rdquo;
means (a) all Indebtedness, obligations, covenants, and duties now or at any time or times hereafter owing by Borrower to Lender
of any kind and description, whether incurred pursuant to or evidenced by any of the Loan Documents or any other agreement and
whether direct or indirect, absolute or contingent, due or to become due, or joint or several, including the principal of and interest
on the Loans, all fees, all obligations of Borrower in connection with any indemnification of Lender, all obligations of Borrower
to reimburse Lender in connection with any Letters of Credit or bankers acceptances, and all Lender Expenses and (b) all Banking
Relationship Indebtedness.</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">&ldquo;<U>Obligor</U>&rdquo;
means Borrower, each Guarantor, and each other Person that is at any time liable for the payment of the whole or any part of the
Obligations or that has granted in favor of Lender a&nbsp;Lien upon any of any of such Person&rsquo;s assets to secure payment
of any of the Obligations.</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">&ldquo;<U>Ordinary
Course of Business</U>&rdquo; means, with respect to any Person, the&nbsp;ordinary course of such Person&rsquo;s business, as conducted
by such Person in accordance with past&nbsp;practices and undertaken by such Person in good faith and not for the purpose of evading
any&nbsp;covenant or restriction in any Loan Document.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Organic
Documents</U>&rdquo; means, with respect to any Person, its charter, certificate or articles of incorporation, bylaws, articles
of organization, limited liability agreement, operating agreement, members agreement, shareholders agreement, partnership agreement,
certificate of partnership, certificate of formation, voting trust, or similar agreement or instrument governing the formation
or operation of such Person.</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">&ldquo;<U>Other
Connection Taxes</U>&rdquo; means, with respect to Lender, Taxes imposed as a result of a present or former connection between
Lender and the jurisdiction imposing such Tax (other than connections arising from Lender having executed, delivered, become a
party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in
any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).</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">&ldquo;<U>Other
Taxes</U>&rdquo; means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise
from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection
of a security interest under, or otherwise with respect to, any Loan Document.</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">&ldquo;<U>Out-of-Formula
Condition</U>&rdquo; shall have the meaning set forth in <U>Section 1.1(b)</U> hereof.</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">&ldquo;<U>Out-of-Formula
Loan</U>&rdquo; means a Revolver Loan made or existing when an Out-of-Formula Condition exists or the amount of any Revolver Loan
which, when funded, results in an Out-of-Formula Condition.</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">&ldquo;<U>Parent
Company</U>&rdquo; shall mean, with respect to Lender, the &ldquo;bank holding company&rdquo; as defined in Regulation Y, if any,
of Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of Lender.</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">&ldquo;<U>Patriot
Act</U>&rdquo; the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).</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">&ldquo;<U>Payment
Items</U>&rdquo; means all checks, drafts, or other items of payment payable to Borrower, including proceeds of any of the 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Payment
Office</U>&rdquo; means the office of Lender located at 3333 Peachtree Road, 4<SUP>th</SUP> Floor, East Atlanta, Georgia 30326,
or such other location as to which Lender shall have given written notice to 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">&ldquo;<U>Permitted
Acquisition</U>&rdquo; means any Acquisition that satisfies the following conditions:</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;either
(i) Availability is at least 25% of the then current Revolver Commitment Amount immediately after giving effect to such Acquisition
or (ii) Availability is at least 20% of the then current Revolver Commitment Amount immediately after giving effect to any Acquisition
and the pro forma Fixed Charge Coverage Ratio is at least 1.10 to 1.0 computed on a pro forma basis as of the last day of the most
recent Fiscal Quarter for which Lender should have received monthly financial statements in accordance with Section 5.6(b) (hereinafter
such last day shall be referred to as the &ldquo;<U>Computation Date</U>&rdquo;), with such pro forma calculation being made for
the four (4) Fiscal Quarter period ending as of the Computation Date and with the amount of any such Acquisition being included
in such computation and being deemed to have been made on the Computation 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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
Default or Event of Default shall exist and be continuing immediately before or immediately after giving effect thereto;</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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
Subsidiary created or acquired in connection with a Permitted Acquisition shall (A) become a co-Borrower hereunder pursuant to
a joinder agreement n form and substance satisfactory to Lender, (B) have its Equity Interests pledged by Borrower to Lender to
secure the Obligations pursuant to a pledge agreement in form and substance satisfactory to Lender, (C) co-Borrower shall have
the stock certificate evidencing its Equity Interests delivered to Lender together with stock powers executed in blank, and (D)
execute and deliver any and all documents requested by Lender to perfect and protect the Liens granted to Lender by such Subsidiary;
and</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">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at
least five (5) Business Days prior to the consummation of such Acquisition, an Authorized Officer of the Borrower shall provide
a compliance certificate, in form and detail reasonably satisfactory to the Lender, confirming that the foregoing conditions have
been met.</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"><FONT STYLE="font-size: 10pt">&ldquo;<U>Permitted
Asset Disposition</U>&rdquo; means a sale, lease, license, consignment or other transfer or disposition of assets (real or personal,
tangible or intangible) of an Obligor, including a disposition of property of a Obligor in connection with a sale-leaseback transaction
or synthetic lease, in each case only if such disposition (i) consists of the sale of Inventory of Borrower in the Ordinary Course
of Business; (ii) is a transfer of property to Borrower by another Obligor; or (iii) is a disposition of Fixed Assets consented
to by Lender in its discretion or otherwise expressly</FONT> permitted by the Loan Documents<FONT STYLE="font-size: 10pt">.</FONT></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">&ldquo;<U>Permitted
Holder</U>&rdquo; means each of Christopher J. Ryan, Stephen M. Bachelder, Alfred John Kreft, Thomas McAteer, James M. Jenkins,
Teri Hunt, Daniel Edwards and Charles D. Roberson.</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">&ldquo;<U>Permitted
Indebtedness</U>&rdquo; means (a) the Obligations; (b) purchase money Debt to the extent incurred for the acquisition of fixed
assets consistent with the terms of the Loan Agreement; (c) Debt not otherwise permitted hereunder, but only to the extent outstanding
on the Closing Date in amounts disclosed in writing to Lender; (d) Debt arising from endorsements of Payment Items for collection
or deposit in the Ordinary Course of Business; (f) the loan from Business Development Bank of Canada to Lakeland Protective Real
Estate Inc. in the current approximate amount of $775,000 secured by the building in Ontario, Canada, which loan financed such
building; (g) Debts incurred by Foreign Subsidiaries owned directly or indirectly by Borrower not to exceed $5,000,000 and which
may be secured by Liens on Accounts or Inventories of the Borrower and (h) Debt that is not included in any of the preceding clauses
of this definition, is not secured by a Lien, does not exceed $2,000,000 in the aggregate at any time and is subject to terms and
agreements acceptable to Lender in its sole discretion.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Permitted
Lien</U>&rdquo; means any of the following: (i) Liens granted in favor of Lender; (ii) Liens for Taxes (excluding any Lien imposed
pursuant to the provisions of ERISA) not yet due or being Properly Contested; (iii) statutory Liens (other than Liens for Taxes)
arising in the Ordinary Course of Business of Borrower or a Subsidiary, but only if and for so long as payment in respect of such
Liens is not at the time required or the Indebtedness secured by any such Liens is being Properly Contested and such Liens do not
materially detract from the value of the property of Borrower or such Subsidiary and do not materially impair the use thereof in
the operation of Borrower&rsquo;s or such Subsidiary&rsquo;s business; (iv) purchase money Liens securing Indebtedness incurred
for the purchase of Fixed Assets, provided that such Liens are confined to the property so acquired and secure only the Indebtedness
incurred to acquire such property; (v) Liens arising from the rendition, entry or issuance against Borrower or any Subsidiary of
any judgment, writ, order or decree for so long as each such Lien is in existence for less than 30 consecutive days after it first
arises or the judgment, writ, order or decree is being Properly Contested and is at all times junior in priority to any Liens in
favor of Lender; (vi) normal and customary rights of setoff upon deposits of cash in favor of banks and other depository institutions
and Liens of a collecting bank arising under the UCC, on payment items in the course of collections; (vii) Liens consisting of
pledges or deposits in the Ordinary Course of Business in connection with workers&rsquo; compensation, employment and unemployment
insurance and other social security legislation or to secure the performance of letters of credit, bids, statutory obligations,
surety and appeal bonds and other similar obligations; (viii) Liens described in the definition of Permitted Indebtedness; and
(ix) such other Liens as may be consented to in writing by Lender in its discretion.</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">&ldquo;<U>Person</U>&rdquo;
means an individual, partnership, corporation, limited liability company, limited liability partnership, joint stock company, land
trust, business trust, or unincorporated organization, or a government or agency, department, or other subdivision thereof.</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">&ldquo;<U>Plan</U>
&ldquo; means an employee pension benefit plan that is covered by Title IV of ERISA or subject to the minimum funding standards
under Section 412 of the Internal Revenue Code and that is either (i)&nbsp;maintained by Borrower for employees or (ii)&nbsp;maintained
pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and
to which Borrower is then making or accruing an obligation to make contributions or has within the preceding 5 years made or accrued
such contributions.</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; text-align: left; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Pledge
Agreement</U>&rdquo; means that certain pledge agreement of even date herewith whereby Borrower pledges 65% of the Equity Interests
in each of its Foreign Subsidiaries.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Projections</U>&rdquo;
mean projections of Borrower&rsquo;s financial condition, results of operations, cash flow, operating budget and Availability,
prepared on a month-to-month basis for the applicable Fiscal Year pursuant to and as required by <U>Section 5.6(k)</U> hereof.</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">&ldquo;<U>Properly
Contested</U>&rdquo; means, in the case of any Indebtedness of an Obligor (including any Taxes) that is not paid as and when due
or payable by reason of such Obligor&rsquo;s bona fide dispute concerning its liability to pay same or concerning the amount thereof,
(i)&nbsp;such Indebtedness is being properly contested in good faith by appropriate proceedings promptly instituted and diligently
conducted; (ii)&nbsp;such Obligor has established appropriate reserves as shall be required in conformity with GAAP; (iii)&nbsp;the
non-payment of such Indebtedness is not reasonably expected to have a Material Adverse Effect; (iv)&nbsp;no Lien is imposed upon
any of such Obligor&rsquo;s assets with respect to such Indebtedness unless such Lien is at all times subordinate in priority to
the Liens of Lender (except only with respect to property taxes that have priority as a&nbsp;matter of applicable state law) and
enforcement of such Lien is stayed during the period prior to the final resolution or disposition of such dispute; (v) if the Indebtedness
results from, or is determined by the entry, rendition or issuance against an Obligor or any of its assets of, a judgment, the
enforcement of such judgment is stayed pending a timely appeal or other judicial review; and (vi)&nbsp;if such contest is abandoned,
settled or determined adversely (in&nbsp;whole or in part) to such Obligor, such Obligor forthwith pays such Indebtedness and all
penalties, interest and other amounts due in connection therewith.</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">&ldquo;<U>Property</U>&rdquo;
means an interest of any kind in any property or asset, whether real, personal or mixed, and whether tangible or intangible.</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">&ldquo;<U>Regulation
D</U>&rdquo; means Regulation D of the Board of Governors of the Federal Reserve System, as the same may be in effect from time
to time, and any successor regulations.</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">&ldquo;<U>Regulation&nbsp;Y</U>&rdquo;
shall mean Regulation&nbsp;Y of the Board of Governors of the Federal Reserve System, as the same may be in effect from time to
time, and any successor regulations.</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">&ldquo;<U>Revolver
Commitment Amount</U>&rdquo; means an amount equal to the amount shown on Item 3 of the Terms Schedule.</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">&ldquo;<U>Revolver
Credit Exposure</U>&rdquo; means at any date the sum of the outstanding Revolver Loans and the LC Exposure.</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">&ldquo;<U>Revolver
Loan</U>&rdquo; shall have the meaning set forth in <U>Section 1.1(a)</U> of the Loan Agreement.</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">&ldquo;<U>Revolver
Note</U>&rdquo; means the Revolver Note to be executed by Borrower in favor of Lender, in form satisfactory to Lender, which shall
be in the face amount of the Revolver Commitment Amount and shall evidence all outstanding Revolver Loans and the LC Exposure at
any time under the Agreement.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Rider</U>&rdquo;
means, on any date, any rider or supplement executed by Borrower and Lender with reference to this Agreement.</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">&ldquo;<U>Sanctioned
Country</U>&rdquo; shall mean, at any time, a country or territory that is, or whose government is, the subject or target of any
Sanctions.</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">&ldquo;<U>Sanctioned
Person</U>&rdquo; shall mean, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained
by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any EU member state, (b) any
Person located, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person.</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">&ldquo;<U>Sanctions</U>&rdquo;
shall mean economic or financial sanctions or trade embargoes administered or enforced from time to time by (a) the U.S. government,
including those administered by the Office of Foreign Assets Control or the U.S. Department of State or (b) the United Nations
Security Council, the European Union or Her Majesty&rsquo;s Treasury of the United Kingdom.</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">&ldquo;<U>Security
Agreement</U>&rdquo; means the Security Agreement among Borrower and Lender dated or to be dated on or about the date hereof.</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">&ldquo;<U>Security
Documents</U>&rdquo; means each instrument or agreement at any time securing or assuring payment of any of the Obligations<B><I>,
</I></B>including the Security Agreement, the Mortgage, the Pledge Agreement and the Account Control Agreement.</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">&ldquo;<U>Senior
Officer</U>&rdquo; means any person occupying any of the following positions with Borrower as of any applicable date: the chairman
of the board of directors, president, chief executive officer, chief financial officer, managing member or managing partner.</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">&ldquo;<U>Slow-Moving
Inventory</U>&rdquo; means Goods with over one year of supply.</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">&ldquo;<U>Solvent</U>&rdquo;
means, as to any Person, such Person (i)&nbsp;is able to pay all of its debts as such debts mature, (ii)&nbsp;has capital that
is not unreasonably small for its business and is sufficient to carry on its business and transactions and all business and transactions
in which it is about to engage, (iii)&nbsp;is not &ldquo;insolvent&rdquo; within the meaning of Section 101(32) of Title 11 of
the United States Code, and (iv)&nbsp;has not incurred (by way of assumption or otherwise) any obligations or liabilities (contingent
or otherwise) under any of the Loan Documents, or made any conveyance pursuant to or in connection therewith, with actual intent
to hinder, delay or defraud either present or future creditors of such Person.</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">&ldquo;<U>Stock
Repurchase</U>&rdquo; means, in respect of any entity, (i) any payment on account of the purchase, redemption, defeasance, sinking
fund or other retirement of any Equity Interests of the entity or any other payment or distribution made in respect thereof, either
directly or indirectly, (ii) any payment made to redeem, purchase, repurchase or retire, or to obtain the surrender of, any outstanding
warrants, options or other rights to acquire Equity Interests of the entity now or hereafter outstanding and (iii) any payment
of a claim for the rescission of the purchase or sale of, or for material damages arising from the purchase or sale of, any shares
of the entity&rsquo;s Equity Interests or of a claim for reimbursement, indemnification or contribution arising out of or related
to any such claim for damages or rescission.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Subsidiary</U>&rdquo;
means a Person in which 50% or more of all Equity Interests (or those having a power to vote) is owned, directly or indirectly,
by Borrower, one or more other Subsidiaries of Borrower or one or more other Subsidiaries.</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">&ldquo;<U>Taxes</U>&rdquo;
means any present or future taxes, levies, imposts, duties, fees, assessments, deductions, withholdings or other charges of whatever
nature, including income, receipts, excise, property, sales, use, transfer, license, payroll, withholding, social security and
franchise taxes now or hereafter imposed or levied by the United States or any other governmental authority and all&nbsp;interest,
penalties, additions to tax and similar liabilities with respect thereto, but excluding, in&nbsp;the case of Lender, taxes imposed
on or measured by the net income or overall gross&nbsp;receipts of Lender.</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">&ldquo;<U>Term</U>&rdquo;
means the term set forth in <U>Section 2.1</U> of the Loan Agreement.</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">&ldquo;<U>Terms
Schedule</U>&rdquo; means the Terms Schedule annexed to the Loan Agreement.</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">&ldquo;<U>Trading
with the Enemy Act</U>&rdquo; shall mean the Trading with the Enemy Act of the United States of America (50 U.S.C. App. &sect;&sect;
1 et seq.), as amended and in effect from time to time.</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">&ldquo;<U>Type</U>&rdquo;,
when used in reference to a Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the LIBOR Market Index Rate or the Base Rate.</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">&ldquo;<U>UCC</U>&rdquo;
means the Uniform Commercial Code (or any successor statute) as adopted and in force in the State of New York or, when the laws
of any other state govern the method or manner of the&nbsp;perfection or enforcement of any security interest in any of the Collateral,
the Uniform Commercial Code (or any successor statute) of such state.</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">&ldquo;<U>Unused
Revolver Amount</U>&rdquo; means for any applicable period of calculation, the extent to which the Revolver Credit Exposure for
such period is less than the Revolver Commitment Amount.</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">&ldquo;<U>Withholding
Agent</U>&rdquo; shall mean Borrower, any other Obligor or Lender, as applicable.</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">All other
capitalized terms contained in the Agreement and not otherwise defined therein shall have, when the context so indicates, the meanings
provided for by the UCC. Without limiting the generality of the foregoing, the following terms shall have the meaning ascribed
to them in the UCC: Account, Chattel Paper, Commercial Tort Claim, Deposit Account, Document, Electronic Chattel Paper, Equipment,
Fixtures, Goods, General Intangible, Instrument, Inventory, Investment Property, Letter-of-Credit Right, Payment Intangible, Security,
Securities Account, and Software.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>[</B>Remainder
of page intentionally left blank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">signatures
begin on following page.<B>]</B></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">The undersigned
have executed this Definitions Schedule on the day and year first above written.</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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>BORROWER</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>LAKELAND INDUSTRIES, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 44%; text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">/s/ Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">CEO &amp; President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>Accepted in Atlanta, Georgia</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><U>LENDER</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>SUNTRUST BANK</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">/s/ William M. Sykstus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">William M. Sykstus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in">Director</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">Loan Agreement
Definitions Schedule</P>

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>v467073_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<P STYLE="margin: 0"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.2</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS SECURITY AGREEMENT
(this &ldquo;<U>Agreement</U>&rdquo;) is made on May 10, 2017, between <B>LAKELAND INDUSTRIES, INC., </B>a Delaware corporation
(&ldquo;<U>Borrower</U>&rdquo;)<B> </B>and <B>SUNTRUST BANK</B>, a Georgia banking corporation (together with its successors or
assigns, &ldquo;<U>Lender</U>&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B><U>Recitals</U>:</B></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">Lender and Borrower
are parties to a certain Loan Agreement dated of even date herewith (as at any time amended, restated, supplemented or otherwise
modified, the &ldquo;<U>Loan Agreement</U>&rdquo;), pursuant to which Lender has made, or may from time to time hereafter make,
loans and other financial accommodations available to Borrower. A condition to the provision of financing by Lender to Borrower
under the Loan Agreement is Borrower&rsquo;s execution 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">NOW, THEREFORE, for
Ten Dollars ($10.00) and other valuable consideration, receipt whereof is hereby acknowledged, Lender and Borrower hereby agree
as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions;
Rules of Construction</U>. </B>Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed
to such terms in the Loan Agreement or, if not otherwise defined in the Loan Agreement, the UCC to the extent the same are used
or defined therein. The word &ldquo;including&rdquo; shall mean &ldquo;including, without limitation,&rdquo; and the words &ldquo;herein,&rdquo;
&ldquo;hereof,&rdquo; and &ldquo;hereunder&rdquo; shall have reference to this Agreement taken as a whole and not to any particular
provision hereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grant
of Security Interest</U></B>. To secure the prompt payment and performance of all of the Obligations, Borrower hereby grants to
Lender a continuing security interest in and Lien upon all personal property of Borrower, including all of Borrower&rsquo;s right,
title and interest in and to the following property, whether now owned or existing or hereafter created, acquired or arising and
wheresoever located: all Accounts; all Goods (including all Inventory and Equipment (including Fixtures)); all Instruments; all
Chattel Paper (including Electronic Chattel Paper); all Documents; all General Intangibles (including Payment Intangibles and Software);
all Deposit Accounts; all Investment Property (including all Securities and Securities Accounts but excluding any Securities that
constitute Margin Stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System) unless otherwise expressly
provided in a Security Document and, in the case of Securities of a Foreign Subsidiary, limited to 65% of such Securities); all
Letter-of-Credit Rights; all Commercial Tort Claims (including Commercial Tort Claims, if any, listed in the Information Certificate);
all monies now or at any time or times hereafter in the possession or under the control of Lender; all accessions to, substitutions
for and all replacements, products and cash and non-cash proceeds of any of the foregoing, including proceeds of and unearned premiums
with respect to insurance policies insuring any of the Collateral and claims against any Person for loss of, damage to or destruction
of any of the Collateral; and all of Borrower&rsquo;s Books. Borrower represents that the foregoing security interest is a first
priority security interest in Borrower&rsquo;s Collateral and that there shall be no other Liens on the Collateral except in each
case for the Permitted Liens and third party liens on Inventory that is not Eligible Inventory solely on account of a lien waiver/subordination
not being received from the consignee/warehouseman in possession thereof.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding anything
contained in this Agreement to the contrary, Lender shall not have a security interest in voting Equity Interests of any controlled
foreign corporation (as that term is defined in the Internal Revenue Code (a &ldquo;CFC&rdquo;)), solely to the extent that (a)
such Equity Interests represent more than 65% of the outstanding voting Equity Interests of such CFC, and (b) pledging or hypothecating
more than 65% of the total outstanding voting Equity Interests of such CFC would result in material adverse tax consequences; provided,
that, the foregoing exclusion shall in no way be construed to limit, impair, or otherwise affect any of Lender&rsquo;s continuing
security interests in and liens upon any rights or interests of Borrower in or to (i) monies due or to become due under or in connection
with any described contract, lease, permit, license, license agreement, or Equity Interest (including any Accounts or Equity Interests),
or (ii) any proceeds from the sale, license, lease, or other dispositions of any such contract, lease, permit, license, license
agreement, or Equity Interest).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Setoff</U>.</B>
All sums at any time standing to Borrower&rsquo;s credit on Lender&rsquo;s books and all of Borrower&rsquo;s property at any time
in Lender&rsquo;s possession, or upon or in which Lender has a Lien shall be security for the Obligations. In addition to and not
in limitation of the above, with respect to any deposits of property of Borrower in Lender&rsquo;s possession or control, now or
in the future, to the extent consistent with the terms of the Loan Agreement, Lender shall have the right to setoff all or any
portion thereof, at any time, against any Obligations, even though unmatured, without prior notice or demand to Borrower.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Location
of Collateral</U>.</B> All tangible items of Collateral, other than Inventory in transit and Inventory located outside the United
States for processing and fabrication, shall at all times be kept at one or more of the business locations of Borrower or other
third party locations set forth in the Information Certificate and shall not be moved therefrom, without the prior written approval
of Lender, not to be unreasonably withheld, except that, in the absence of an Event of Default and acceleration of the maturity
of the Obligations in consequence thereof, Borrower may (i)&nbsp;make sales or other dispositions of any Collateral to the extent
not prohibited by the Loan Agreement and (ii)&nbsp;move Inventory or Equipment or any record relating to any Collateral to a location
in the United States other than those shown on the Information Certificate so long as Borrower has given Lender at least 30&nbsp;days
prior written notice of such new location, provided that Borrower shall not maintain any Collateral having a value in excess of
$50,000 at any location unless (i) Borrower is the owner of such location, (ii) Borrower has obtained a Lien Waiver from the owner
and each other Person in possession or control of any Collateral at such location (or Lender has expressly waived the requirement
for the delivery of a Lien Waiver with respect to such location), or (iii) the Collateral consists of Inventory placed with a warehouseman,
bailee or processor and Lender has received from such warehouseman, bailee or processor an acceptable Lien Waiver/Access Agreement
(or Lender has expressly waived the requirement for the delivery of a Lien Waiver/Access Agreement with respect to such location).</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance</U>.</B>
Borrower shall maintain and pay for insurance upon all Collateral covering such risks in such amounts on such conditions and with
such insurance companies as are reasonably satisfactory to Lender. All proceeds payable under each such policy shall be payable
to Lender for application to the Obligations. Borrower shall deliver a certificate of insurance (and, upon Lender&rsquo;s request
the originals or certified copies of such policies) to Lender with satisfactory lender&rsquo;s loss payable endorsements reasonably
satisfactory to Lender, naming Lender as loss payee, assignee or additional insured, as appropriate. Unless Lender has otherwise
agreed, each policy of insurance or endorsement shall contain a clause requiring the insurer to give not less than 30 days (or
ten (10) days in the case of non-payment of premium) prior written notice to Lender in the event of cancellation of the policy
for any reason whatsoever and a clause specifying that the interest of Lender shall not be impaired or invalidated by any act or
neglect of Borrower or the owner of the Property or by the occupation of the premises for purposes more hazardous than are permitted
by said policy. If Borrower fails to provide and pay for such insurance, Lender may, at its option, but shall&nbsp;not be required
to, procure the same and charge Borrower therefor. At any time that an Event of Default exists and is continuing, Lender alone
shall be authorized to settle, adjust and compromise all insurance claims and Lender shall have all rights and remedies with respect
to such&nbsp;policies of insurance as are provided in the Loan Documents.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Expenses;
Safeguarding Collateral</U></B>. All reasonable expenses of protecting, storing, warehousing, insuring, handling, maintaining and
shipping any Collateral, all Taxes imposed under any applicable law on any of the Collateral or in respect of the sale thereof,
and all other payments required to be made by Lender to any Person to realize upon any Collateral shall be borne and paid by Borrower.
Lender shall not be responsible in any way for the safeguarding of any Collateral not in its possession or control and the same
shall be at Borrower&rsquo;s sole risk.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Accounts</U></B>.
Lender may rely, in determining which Accounts are Eligible Accounts, on all statements and representations made by Borrower with
respect to any Account. Unless otherwise indicated in writing to Lender or excluded by Borrower in its calculation of the Borrowing
Base in any Borrowing Base Certificate, with respect to each Eligible Account, the Borrower warrants that:</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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is genuine and in all respects what it purports to be, and it is not evidenced by a judgment;</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
arises out of a bona fide sale and delivery of goods by Borrower in the Ordinary Course of Business and substantially in accordance
with the terms and conditions of all purchase orders, contracts or other documents relating thereto;</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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is for a sum certain maturing as stated in the duplicate invoice covering such sale, a copy of which has been furnished or is available
to Lender on 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">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is not, and, to the best of Borrower&rsquo;s knowledge, will not (by voluntary act or omission of Borrower) be in the future, subject
to any offset, Lien, deduction, defense, dispute, counterclaim or any other adverse condition except as arising in the Ordinary
Course of Business and for disputes resulting in returned goods where the amount in controversy is immaterial, and each such Account
is absolutely owing to Borrower and is not contingent in any respect or for any reason;</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">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
has not made any agreement with any Account Debtor thereunder for any extension, compromise, settlement or modification of any
such Account or any deduction therefrom, except discounts or allowances which are granted by Borrower in the Ordinary Course of
Business for prompt payment and which are reflected in the calculation of the net amount of each respective invoice related thereto
and are reflected in the Schedules of Accounts submitted to Lender pursuant to <U>Section 8</U> hereof or which are otherwise disclosed
to Lender in writing;</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the best of the Borrower&rsquo;s knowledge, there are no facts, events or occurrences which are reasonably likely to impair the
validity or enforceability of such Account or reduce in any material respect the amount payable thereunder from the face amount
of the invoice and statements delivered to Lender with respect thereto, except as otherwise disclosed to Lender in writing; and</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">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the best of the Borrower&rsquo;s knowledge, except as otherwise disclosed to Lender in writing, the Account Debtor thereunder (1)&nbsp;had
the capacity to contract at the time any contract or other document giving rise to the Account was executed and (2) is Solvent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Administration
of Accounts</U>. </B></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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall keep accurate and complete records of its Accounts and all payments and collections thereon and shall submit to Lender on
such periodic basis as Lender shall reasonably request in writing a sales and collections report for the preceding period, in form
reasonably satisfactory to Lender. In addition, if Accounts in an aggregate&nbsp;face&nbsp;amount in excess of $75,000 cease to
be Eligible Accounts in whole or in part, Borrower shall notify Lender of such occurrence promptly (and in any event within 15
days of each month end) after Borrower&rsquo;s having obtained knowledge of such occurrence and the&nbsp;Borrowing Base shall thereupon
be adjusted to reflect such occurrence.</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Borrower grants any discounts, allowances or credits that are not shown on the face of the invoice for the Account involved, Borrower
shall report such discounts, allowances or credits, as the case may be, to Lender as part of the next required Schedule of Accounts.
If any amounts due and owing in excess of $50,000 are in dispute between Borrower and any Account Debtor, or if any returns are
made in excess of $50,000 with respect to any Accounts owing from an Account Debtor, Borrower shall provide Lender with written
notice thereof at the time of submission of the next Schedule of Accounts, explaining in reasonable detail the reason for the dispute
or return, all claims related thereto and the amount in controversy. At any time an Event of Default exists, Lender shall have
the right to settle or adjust all disputes and claims directly with the Account Debtor and to compromise the amount or extend the
time for payment of any Accounts comprising a part of the Collateral upon such terms and conditions as Lender may deem advisable,
and to charge the deficiencies, and reasonable costs and expenses thereof, including reasonable attorneys&rsquo; fees, to 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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
an Account of Borrower includes a charge for any Taxes payable to any&nbsp;governmental authority, and unless the payment of such
Taxes is being Properly Contested, Lender is authorized, in its sole discretion, upon notice to Borrower and after Borrower&rsquo;s
failure or inability to pay such Tax, to pay such Tax (without duplication of other payments made with respect to any such Tax)
to the&nbsp;proper taxing authority for the account of Borrower and to charge Borrower therefor; provided,&nbsp;however, that Lender
shall not be liable for any Taxes that may be due by 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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether
or not a Default or an Event of Default exists, Lender&nbsp;shall have the right at any time, in the name of Lender, any designee
of Lender or Borrower to verify the&nbsp;validity, amount or any other matter relating to any Accounts of Borrower by mail, telephone,
telegraph or otherwise.</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">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall maintain a Dominion Account at Lender pursuant to arrangements acceptable to Lender (including, without limitation, lockbox
arrangements and lockbox accounts). Borrower shall issue to Lender an irrevocable letter of instruction effective during the Term
directing the remittance of all Payment Items or other remittances received by Lender or such other bank in the Dominion Account
to Lender for application to the Obligations. All funds deposited in the Dominion Account shall be subject to Lender&rsquo;s Lien.
Borrower shall obtain the agreement (in favor of and in form and content satisfactory to Lender) by each bank at which a Dominion
Account is maintained to waive any offset rights against the funds deposited into such Dominion Account, except offset rights in
respect of charges incurred in the administration of such&nbsp;Dominion Account. Lender assumes no responsibility to Borrower for
such Dominion Account, including any claim of accord and satisfaction or release with respect to deposits accepted by any bank
thereunder.</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">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall request in writing and otherwise take such reasonable steps to ensure that all Account Debtors forward payment directly to
the Dominion Account (or other collection arrangements related to the Dominion Account), and deposit and cause its Subsidiaries
to deposit or cause to be deposited promptly, all cash, checks, drafts or other Payment Items relating to or constituting payments
made in respect of any and all Collateral (whether or not otherwise delivered to pursuant to such collection arrangements) into
the Dominion Account. Borrower shall issue to each bank servicing such collection arrangements an irrevocable letter of instruction
effective during the Term directing such bank to deposit all payments or other remittances received by it to the Dominion Account.
All&nbsp;Payment Items received by Borrower in respect of its Accounts, together with the&nbsp;proceeds of any other Collateral,
shall be held by Borrower as trustee of an express trust for Lender&rsquo;s benefit; Borrower shall promptly deposit same in kind
in the Dominion Account.</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">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
as a result of such application, a credit balance exists, the balance shall not accrue interest in favor of Borrower and shall
be made available to Borrower for withdrawal as long as no Default or Event of Default exists. Borrower irrevocably waives the
right to direct the application of any payments or Collateral proceeds, and agrees that Lender shall have the continuing, exclusive
right to apply and reapply same against the Obligations, in the manner set forth 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">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
retains the right at all&nbsp;times after an Event&nbsp;of Default has occurred and is continuing to notify Account Debtors of
Borrower that Accounts have been assigned to Lender and to collect Accounts directly in its own name and to charge&nbsp;to Borrower
the reasonable collection costs and expenses actually incurred by Lender, including reasonable attorneys&rsquo; fees.</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">&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;Except
as otherwise disclosed in the Loan Agreement, Borrower and its Subsidiaries shall not open any other deposit account unless Lender
shall have consented thereto, such consent to not be unreasonably withheld, and the depository bank for such deposit account shall
have entered into an Account Control Agreement reasonably acceptable to Lender. As of the Closing Date, all bank accounts of any
nature of Borrower and its Subsidiaries are listed on <U>Schedule&nbsp;8</U> to the Information Certificate, which Schedule shall
designate the depository accounts.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><U>Administration
of Inventory</U></FONT>. </B></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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall keep accurate and complete records of its Inventory. Borrower shall furnish Lender inventory reports respecting such Inventory
(including in-transit inventory) in form and detail satisfactory to Lender at such times as Lender may reasonably request, but
in any event on or before the 15th day of such month. Borrower shall, at its own expense, conduct periodic physical and cycle counts
consistent with Borrower&rsquo;s historical practices and shall provide to Lender a report based on each such physical and cycle
count promptly after completion thereof, together with such supporting information as Lender shall request. Lender may participate
in and observe each physical or cycle count of inventory, which participation shall be at Borrowers' expense at any time that an
Event of Default exists.</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall not acquire or accept any Inventory on&nbsp;consignment or approval having a market value of more than $25,000 in the aggregate
without Lender's prior written consent, which may not be unreasonably withheld, and Borrower will use its commercially reasonable
efforts to insure that all Inventory that is produced in the&nbsp;United States of America will be produced in material compliance
with the Fair Labor Standards Act; shall produce, use, store and maintain all Inventory with reasonable care in accordance with
applicable standards of its insurance policies and in material conformity with applicable law; and shall maintain current rent
payments (within applicable grace periods provided for in leases) at all locations at which any Inventory is maintained or stored
(other than consigned locations).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Administration
of Equipment</U>. </B></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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall keep accurate records itemizing and describing the material items and cost of Equipment and all dispositions made in accordance
with <U>Section&nbsp;10(b)</U> below (all of which records shall be available to Lender upon demand for inspection and copying
at any reasonable time), and, on Lender&rsquo;s request, shall furnish Lender with a current schedule containing such information.
Promptly after Lender&rsquo;s request, Borrower shall deliver to Lender evidence of ownership of the Equipment.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall not sell, lease or otherwise dispose of or transfer any Equipment without the prior written consent of Lender, which may
not be unreasonably withheld, other than in accordance with the terms of the Loan Agreement or (i) a disposition of Equipment that
is no longer useful in Borrower&rsquo;s business so long as the aggregate fair market value or book value (whichever is greater)
of all such dispositions by Borrower during any one year during the Term does not exceed $300,000, no Default or Event of Default
exists at the time of such disposition and all proceeds thereof are remitted to Lender for application to the Obligations, (ii)
a replacement of Equipment that is substantially worn, damaged or obsolete with Equipment of like kind, function and value, provided
that the replacement Equipment shall be acquired within 30 days after any disposition of the Equipment that is to be replaced,
the replacement Equipment shall be free and clear of Liens other than Permitted Liens, and Borrower shall have given Lender at
least 10 days prior written notice of such disposition, or (iii) a disposition of a Subsidiary or operation of Borrower with the
consent of Lender, which may not be unreasonably withheld.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Perfection
of Liens; Further Assurances</U></B><U>.</U> Borrower shall execute all documents and take whatever actions are requested by Lender
to perfect and continue the perfection of Lender&rsquo;s Liens in Borrower&rsquo;s Collateral. Promptly after Lender&rsquo;s request
therefor, Borrower shall execute or cause to be executed and delivered to Lender such instruments, assignments, title certificates
or other documents as are necessary under the UCC or other applicable law (including any necessary motor vehicle certificates of
title act) to perfect (or continue the perfection of) Lender&rsquo;s Liens upon Borrower&rsquo;s Collateral and shall take such
other action as may be requested by Lender to give effect to or carry out the intent and purposes of the Loan Agreement and the
other Loan Documents. Upon reasonable request of Lender, Borrower shall deliver to Lender any and all of the documents evidencing
or constituting Borrower&rsquo;s Collateral, and Borrower shall note Lender&rsquo;s interest upon any and all chattel paper and
instruments if not delivered to Lender for possession by Lender. Unless prohibited by applicable law and except as provided in,
and consistent with, any Loan Document, Borrower hereby irrevocably authorizes Lender to execute (if necessary) and file in any
jurisdiction any financing statement or amendment thereto on Borrower&rsquo;s behalf, including UCC financing statements that indicate
Borrower&rsquo;s Collateral (i)&nbsp;as &ldquo;all assets&rdquo; or &ldquo;all personal property&rdquo; of Borrower or words to
similar effect. Borrower hereby appoints Lender as Borrower&rsquo;s irrevocable attorney in fact for the purpose of executing any
documents necessary to perfect of continue the perfection of any Liens. Borrower shall reimburse Lender for all reasonable out-of-pocket
expenses actually incurred for the perfection, termination, and continuing of the perfection of Lender&rsquo;s Liens in the Collateral.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Events
of Default</U></B><U>.</U> The occurrence or existence of any one or more of the following events or conditions shall constitute
an event of default under this Agreement: (a)&nbsp;any representation or other statement made by Borrower herein proves to have
been false or misleading in any material respect when made; (b)&nbsp; Borrower fails to perform or discharge in any material respect
any of its covenants or obligations under this Agreement contained in <U>Sections 5</U>, <U>8(a)</U>, <U>8(b)</U>, <U>8(f)</U>
and <U>11 </U>if the breach of any such covenant is not cured to Lender&rsquo;s satisfaction within 5 Business Days of any Senior
Officer&rsquo;s receipt of written notice of such breach from Lender, provided that such notice and opportunity to cure shall not
apply in the case of any failure to perform, keep or observe any covenant that is not capable of being cured at all; (c) Borrower
fails to perform or discharge in any material respect any other covenant contained in this Agreement if the breach of such other
covenant is not cured to Lender&rsquo;s satisfaction within 30 days after any Senior Officer&rsquo;s receipt of written notice
of such breach from Lender, provided that such written notice and opportunity to cure shall not apply in the case of any failure
to perform, keep or observe any covenant that is not capable of being cured at all; or (d)&nbsp;an Event of Default under (and
as defined in) the Loan Agreement shall occur or exist.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights
and Remedies Upon Default</U></B>.</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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
or after the occurrence of any event of default referenced in <U>Section&nbsp;12</U> above and during the continuance thereof,
all of the Obligations shall, at the option of Lender and upon written notice to Borrower, become immediately due and payable,
and Lender shall thereupon have and may exercise from time to time any and all rights and remedies afforded to a secured party
under the UCC, together with every right and remedy available to Lender under any other applicable law. In addition to, and without
limiting the generality of the foregoing, Lender shall have the right: (i)&nbsp;to enforce the remedies described in the Loan Agreement,
(ii)&nbsp;to bid and be the purchaser at any sale of Collateral if permitted by law; (iii)&nbsp;to incur reasonable attorney&rsquo;s
fees and expenses in exercising any of the rights, remedies, powers or privileges provided hereunder, and to pay, satisfy and discharge,
or to bond, deposit or indemnify against, any tax or other Lien which in the reasonable opinion of Lender or its counsel may in
any manner or to any extent be a Lien upon any of the Collateral, all of which fees, payments and expenses shall become part of
Lender&rsquo;s expenses of retaking, holding, preparing for sale and the like, and shall be added to and become a part of the principal
amount of the Obligations; and (iv)&nbsp;to apply the proceeds realized from any collection, sale, lease or other disposition of
the Collateral <U>first</U> to the reasonable costs, expenses and attorney&rsquo;s fees actually incurred by Lender for collection
and for acquisition, protection, removal, storage, sale and delivery of the Collateral, <U>second</U>, to interest due upon the
principal amount of the Obligations, and <U>third</U>, to the principal amount of the Obligations. If any deficiency shall arise,
Borrower shall remain bound and liable to Lender therefor.</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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall not be liable or responsible to Borrower in any way for the safeguarding of any of the Collateral, for any loss or damage
thereto, for any diminution in the value thereof, or for any act or default of any carrier, warehouseman, forwarding agency, or
other Person whomsoever, but the same shall be at all times at Borrower&rsquo;s risk, except to the extent that any loss or damage
to such Collateral shall have been caused by the gross negligence or willful misconduct of Lender. All rights, remedies, powers,
and privileges of Lender hereunder are cumulative and not alternative, and may be exercised concurrently or seriatim, and, so long
as not inconsistent herewith, are in addition to and not in lieu of any other rights of Lender at law, in equity, under statute
or under any other agreement with Borrower.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indulgences
Not Waivers</U></B>. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege
hereunder shall operate as a waiver thereof or give rise to any estoppel, nor be construed as an agreement to modify the terms
of this Agreement, nor shall any single or partial exercise by a party of any right, remedy, power or privilege preclude any other
or further exercise by a party of the same or of any other right, remedy, power, or privilege; nor shall any waiver by a party
of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or
privilege with respect to any other occurrence. No waiver by a party hereunder shall be effective unless it is in writing and signed
by the party making such waiver, and then only to the extent specifically stated in such writing.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U></B>.
All notices, requests and demands to or upon a party hereto shall be in writing and sent in accordance with the Loan Agreement.
Notice sent at least 10 Business Days before the date of any intended public sale or the date after which any private sale or other
intended disposition of the Collateral is to be made by Lender shall be deemed to be reasonable notice of such sale or other disposition,
provided that notice is hereby waived with respect to any of the Collateral which threatens to decline speedily in value or is
of a type customarily sold on a recognized market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement; Amendments; Counterparts</U></B>. This Agreement, along with the Loan Agreement, constitute and express the entire understanding
between the parties hereto with respect to the subject matter hereof; this Agreement may not be changed, altered, waived, modified,
supplemented, discharged, canceled, terminated, or amended orally or in any manner other than by an agreement in writing signed
by the parties hereto; and may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered (including by facsimile or electronic mail) shall be deemed to be an original and
all of which counterparts taken together shall constitute but one and the same instrument.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section
Headings; Severability</U></B>. The section headings in this Agreement are for convenience of reference only; they form no part
of this Agreement and shall not affect its interpretation. The provisions of this Agreement are independent of and separable from
each other. If any provision hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability
shall not affect the validity or enforceability of any other provision hereof, but this Agreement shall be construed as if such
invalid or unenforceable provision had never been contained herein.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U></B>. The rights, remedies, powers, and privileges of the parties hereunder shall inure to the benefit of the respective
successors and assigns of each such parties, and the duties and obligations of the parties hereunder shall bind the respective
successors and assigns of each such parties; provided, that Borrower may not assign this Agreement or any rights or obligations
hereunder without Lender&rsquo;s prior written consent and any prohibited assignment shall be absolutely void.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Term
of Agreement</U></B>. This Agreement shall continue in full force and effect until the sooner to occur of (a)&nbsp;the date on
which Lender and Borrower, in writing, mutually agree to terminate this Agreement or (b)&nbsp;the date on which all of the Obligations
have been paid in full (other than indemnities and similar contingent Obligations not then due and payable) and the commitments
under the Loan Agreement have been terminated in accordance with the terms thereof.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law; Forum Selection</U></B>. This Agreement shall be governed in all respect by, and construed in accordance with, the laws of
the State of New York, including the UCC (except, when the laws of any other state govern the method or manner of the perfection
or enforcement of any security interest in any of the Collateral, the laws of such other state shall govern as to such matters).
Borrower hereby consents to the non-exclusive jurisdiction of any United States federal court sitting in or with direct or indirect
jurisdiction over the Southern District of New York or any state or superior court sitting in New York County, New York, in any
action, suit or other proceeding arising out of or relating to this Agreement or any of the other Loan Documents; and Borrower
irrevocably agrees that all claims and demands in respect of any such action, suit or proceeding may be heard and determined in
any such court and irrevocably waives any objection it may now or hereafter have as to the venue of any such action, suit or proceeding
brought in any such court or that such court is an inconvenient forum. Lender reserves the right to bring proceedings against any
Obligor in the courts of any other competent jurisdiction which has subject matter jurisdiction. Nothing in this Agreement shall
be deemed or operate to affect the right of Lender to serve legal process in any other manner permitted by law or to preclude the
enforcement by Lender of any judgment or order obtained in such forum or the taking of any action under this Agreement to enforce
same in any other appropriate forum or jurisdiction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waivers</U>.
To the fullest extent permitted by applicable law, Borrower waives notice of Lender&rsquo;s acceptance of this Agreement and notice
of any hearing in connection with, and the requirement to post bond as a condition to, the issuance of an immediate writ of possession
with respect to any of the Collateral. Borrower and Lender each hereby waives the right to trial by jury in any action, suit, proceeding
or counterclaim concerning this Agreement or any of the Obligations. </B></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">IN WITNESS WHEREOF,
Borrower has caused this Agreement to be signed, sealed and delivered on the day and year first written above.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><B>BORROWER:</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><B>LAKELAND INDUSTRIES, INC.</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>Name:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>Title:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">CEO &amp; President</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-top: 0pt; margin-bottom: 0pt; text-align: center">[Signatures continued on following page]</P>

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


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-decoration: underline"><U>Accepted by Lender in Atlanta, Georgia</U>:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>SUNTRUST BANK</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ William M. Sykstus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name:</TD>
    <TD STYLE="border-bottom: Black 1pt solid"> William M. Sykstus</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Director</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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