Prior to the Effective Date, Molekule was a party to (i) an amended and restated loan and security agreement dated August 29, 2019 (as amended, the Senior Term Loan") with Silicon Valley Bank (SVB") and (ii) a mezzanine loan and security agreement dated March 22, 2021 (as amended, the Mezzanine Term Loan" and, together with the Senior Term Loan, the Loan Agreements") also with SVB. As of September 30, 2022, an aggregate principal amount of approximately $34,400,000 was outstanding under the Loan Agreements. SVB consented to the Merger under both Loan Agreements, provided that, as a condition to such consent, AeroClean was required to become a co-borrower under each Loan Agreement at Closing and grants SVB a first priority lien on substantially all of AeroClean's assets, other than certain customary excluded assets.

On January 12, 2023, AeroClean executed a joinder agreement, became a co-borrower under each Loan Agreement and granted SVB a first priority lien on substantially all of AeroClean's assets, other than certain customary excluded assets. In addition, SVB's consent was conditioned upon AeroClean having unrestricted and unencumbered cash of at least $20,000,000 at the Closing; this condition was satisfied as of the Closing. The Senior Term Loan provides for a term loan facility of which approximately $4.4 million was outstanding at September 30, 2022 (the Term Loan Advances").

The Senior Term Loan has a stated maturity date of April 1, 2026. In addition, the co-borrowers are required to pay a certain deferral fee in the amount of $380,000, which is payable upon the earlier of (i) April 1, 2026, (ii) termination of the Senior Term Loan, or (iii) the payment in full of the Term Loan Advances. The principal amount outstanding under the Senior Term Loan accrues interest at a floating per annum rate equal to the greater of (i) the Prime Rate plus 1.00% and (ii) 4.25%.

The co-borrowers are required to pay interest monthly and repay the principal amount of the Term Loan Advances in 36 equal monthly installments commencing May 1, 2023. The Mezzanine Term Loan provides for two mezzanine term loans in the aggregate principal amount of $30,000,000 outstanding as of September 30, 2022, including (i) a tranche of $15,000,000 with a maturity date of March 1, 2027 (the Mezzanine Term Loan A Tranche") and (ii) a tranche of $15,000,000 with a maturity date of March 1, 2028 (the Mezzanine Term Loan B Tranche"). The co-borrowers are required to pay interest monthly and to repay the Mezzanine Term Loan in monthly installments beginning (i) with respect to the Mezzanine Term Loan A Tranche, April 1, 2024, and (b) with respect to the Mezzanine Term Loan B Tranche, April 1, 2025.

Each of the Senior Term Loan and the Mezzanine Term Loan contain a financial covenant which, after the Closing, will require the co-borrowers to maintain in the aggregate, at all times, and be tested as of any day, unrestricted and unencumbered cash and cash equivalents of at least $2,000,000. In addition, the co-borrowers will be required to attain, in the aggregate, a net revenue of (i) $50,000,000 for the calendar year ending December 31, 2023 and (ii) with respect to future annual periods, net revenue levels reasonably agreed between Molekule and SVB prior to February 28 of each calendar year thereafter.