On December 14, 2018, ATRM Holdings, Inc. issued to Digirad Corporation an unsecured promissory note in the principal amount of $275,000.00 in exchange for the same amount in cash (the Digirad Note). The Digirad Note bears interest at 10.0% per annum for the first 12 months of its term, and at 12.0% per annum for the remaining 12 months. All unpaid principal and interest under the Digirad Note is due on December 14, 2020. The Company may prepay the Digirad Note at any time after a specified amount of advance notice to Digirad (subject to certain restrictions under the Company's existing loan agreements). The Digirad Note provides for customary events of default, the occurrence of any of which may result in the principal and unpaid interest then outstanding becoming immediately due and payable. In connection with the Digirad Note, Digirad is expected to enter into a subordination agreement with the Company and Gerber Finance Inc. ("Gerber Finance"), which provides credit facilities for certain subsidiaries of the Company, pursuant to which Digirad will agree to subordinate all of the Company's obligations to Digirad to the obligations of certain subsidiaries of the Company to Gerber Finance under their loan agreements with Gerber Finance. In addition to the Digirad Note, on December 17, 2018, the Company issued to Lone Star Value Management, LLC. an unsecured promissory note in the principal amount of $300,000.00 in exchange for the same amount in cash (the "LSVM Note"). The LSVM Note was issued pursuant to a securities purchase agreement by and between the Company and LSVM dated as of the same date. The LSVM Note bears interest at 10.0% per annum, with interest payable annually; provided, however, LSVM may elect to receive any interest payment entirely in-kind at a rate of 12.0% per annum. Any unpaid principal and interest under the LSVM Note is due on November 30, 2020. The Company may prepay the LSVM Note at any time after a specified amount of advance notice to LSVM (subject to certain restrictions under the Company's existing loan agreements). The Note provides for customary events of default, the occurrence of any of which may result in the principal and unpaid interest then outstanding becoming immediately due and payable.