Exhibit 10.3


 


Execution Version


 


SECURITY
AGREEMENT


 


This
SECURITY AGREEMENT, dated as of June 29, 2018 (as may be amended or restated from time to time, this “Agreement”),
is by and among LiveXLive Media, Inc., a Delaware corporation (the “Company”), any Subsidiaries of the Company
that now or at any time hereafter agree to guarantee the Company’s obligations under the Debentures and/or any documents
or instruments associated therewith (such Subsidiaries, the “Guarantors” and together with the Company, the
“Debtors”), the holders of the Company’s 12.75% Original Issue Discount Senior Secured Debentures due
June 29, 2021, in the original aggregate principal amount of $10,460,000] (collectively, the “Debentures”)
that are signatories hereto, their endorsees, transferees and assigns (the “Purchasers”), and JGB Collateral,
LLC, a Delaware limited liability company, in its capacity as agent for the Purchasers (“Agent” and collectively
with the Purchasers, the “Secured Parties”).


 


W
I T N E S S E T H:


 


WHEREAS,
pursuant to the Purchase Agreement (as defined in the Debentures), the Purchasers have severally agreed to extend the loans to
the Company evidenced by the Debentures; and


 


WHEREAS,
in order to induce the Purchasers to extend the loans evidenced by the Debentures, each Debtor has agreed to execute and deliver
to the Secured Parties this Agreement and to grant the Agent, on behalf of the Secured Parties, a security interest in certain
property of such Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s obligations
under the Debentures and other Transaction Documents and the Guarantors’ obligations under the Guarantee(as
defined below).


 


NOW,
THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:


 


1. Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used
but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel
paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”,
“investment property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”)
shall have the respective meanings given such terms in Article 9 of the UCC. Terms used herein but not otherwise defined in this
Agreement or in the UCC shall have the respective meanings given such terms in the Purchase Agreement.


 


(a)
 “CFC” means a Person that is a controlled foreign corporation under
Section 957 of the Internal Revenue Code of 1986.


 






     


     


    

 


(b) “Collateral”
means, excluding any Excluded Assets, all personal property of the Debtors, whether presently owned or existing or hereafter acquired
or coming into existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof,
and all proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the
Collateral and of insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash,
notes, securities, equity interests or other property at any time and from time to time acquired, receivable or otherwise distributed
in respect of, or in exchange for, any or all of the Pledged Securities (as defined below):


 


(i)
All goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships,
appliances, furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind
and nature and wherever situated, together with all documents of title and documents representing the same, all additions and
accessions thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items
used and useful in connection with any Debtor’s businesses and all improvements thereto; and (B) all inventory;


 


(ii)
 All contract rights and other general intangibles, including, without limitation, all partnership interests, membership
interests, stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities,
licenses, distribution and other agreements, computer software (whether “off-the-shelf”, licensed from any third party
or developed by any Debtor), computer software development rights, leases, franchises, customer lists, quality control procedures,
grants and rights, goodwill, Intellectual Property and income tax refunds;


 


(iii)
 All accounts, together with all instruments, all documents of title representing any
of the foregoing, all rights in any merchandising, goods, equipment, motor vehicles and trucks which any of the same may represent,
and all right, title, security and guaranties with respect to each account, including any right of stoppage in transit;


 


(iv) All documents, letter-of-credit rights, instruments and chattel paper;


 


(v) All
commercial tort claims;


 


(vi) All
deposit accounts and all cash (whether or not deposited in such deposit accounts), other than (a) payroll accounts, payroll tax
accounts or employee wage and benefit accounts, provided that the funds on deposit in such accounts shall at no time exceed the
actual payroll, payroll taxes and other employee wage and benefit payments then owing by such Debtor for the immediately succeeding
payroll period and (b) deposit and securities accounts (including securities entitlements and related assets) with balances or
assets that do not exceed $250,000; provided, however, that aggregate of all such accounts excluded pursuant to this clause (b)
shall not at any time exceed $1,000,000;


 






    	 	2	 



     


    

 


(vii) All
investment property;


 


(viii) All
supporting obligations;


 


(ix) All
files, records, books of account, business papers, and computer programs; and


 


(x) The
products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above.


 


Without
limiting the generality of the foregoing, the “Collateral” shall include all investment property and general intangibles
respecting ownership and/or other equity interests in each Guarantor, including, without limitation, the shares of capital stock
and the other equity interests listed on Schedule H hereto (as the same may be modified from time to time pursuant to the terms
hereof), and any other shares of capital stock and/or other equity interests of any other direct or indirect subsidiary of any
Debtor obtained in the future, and, in each case, all certificates representing such shares and/or equity interests and, in each
case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received, receivable
or distributed in respect of, or exchanged for, any of the foregoing and all rights arising under or in connection with the Pledged
Securities, including, but not limited to, all dividends, interest and cash.


 


Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the
extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable
law); provided, however, that to the extent permitted by applicable law and solely to the extent doing so does not
void or invalidate such asset, this Agreement shall create a valid security interest in such asset and, to the extent permitted
by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset.


 


(c) “Excluded
Assets” means any United States intent-to-use trademark application unless and until an Amendment to Allege Use or a
verified Statement of Use is filed and accepted by the United States Patent and Trademark Office with respect to such intent-to-use
trademark application.


 


(d) “FSHCO”
means any entity with no material assets or business activities other than ownership of equity interest in one or more CFCs.


 


(e) “Guarantee”
means a subsidiary guarantee in a form acceptable to the Purchasers, under which the Guarantors party thereto jointly and severally
agree to guarantee and act as surety for payment of the Debentures and the other Obligations.


 






    	 	3	 



     


    

 


(f) “Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith,
including, without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all
letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof,
and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part
thereof, (iii) all trademarks, trade names, corporate names, trade
dress, service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now
existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith,
whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof
or any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade
secrets arising under the laws of the United States, any other country or any political subdivision thereof, (v) all rights to
obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes
of action for infringement of the foregoing.


 


(g) “Majority
in Interest” means, at any time of determination, the majority in interest
(based on then-outstanding principal amounts of Debentures at the time of such determination) of the Purchasers.


 


(h) “Necessary
Endorsement” means undated stock powers endorsed in blank or other proper
instruments of assignment duly executed and such other instruments or documents as the Agent may reasonably request.


 


(i)
 “Obligations” means all of the liabilities and obligations (primary,
secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or
acquired, or owing to, of any Debtor to the Secured Parties, including, without limitation, all obligations under this Agreement,
the Debentures, the Guarantee and any other instruments, agreements or other documents executed and/or delivered in connection
herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute
or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased
or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid,
to the extent all or any part of such payment is avoided or recovered directly or indirectly from any of the Secured Parties as
a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified
from time to time. Without limiting the generality of the foregoing, the term “Obligations” shall include, without
limitation: (i) principal of, and interest on the Debentures and the loans extended pursuant thereto; (ii) any and all other fees,
prepayment charges, indemnities, costs, obligations and liabilities of the Debtors from time to time under or in connection with
this Agreement, the Debentures, the Purchase Agreement, the Guarantee and any other instruments, agreements or other documents
executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition
interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving any Debtor.


 






    	 	4	 



     


    

 


(j)
 “Organizational Documents” means with respect to any Debtor, the
documents by which such Debtor was organized (such as a certificate of incorporation, certificate of limited partnership or articles
of organization, and including, without limitation, any certificates of designation for preferred stock or other forms of preferred
equity) and which relate to the internal governance of such Debtor (such as bylaws, a partnership agreement or an operating, limited
liability or members agreement).


 


(k) “Permitted
Liens” shall have the meaning ascribed to such term in the Debentures.


 


(l) “Pledged
Interests” shall have the meaning ascribed to such term in Section 4(j).


 


(m)
 “Pledged Securities” shall have the meaning ascribed to such term
in Section 4(i).


 


(n) “UCC”
means the Uniform Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that
defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed
in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions,
they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones
shall be controlling.


 


2. Grant
of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by the Debentures
and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations,
each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Agent, on behalf of the Secured Parties,
a security interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of
whatsoever kind and nature in and to, the Collateral (a “Security Interest” and, collectively, the “Security
Interests”). Notwithstanding anything to the contrary contained herein or in any Transaction Document, in no event shall
the Security Interest granted herein or therein attach to any Excluded Asset.


 






    	 	5	 



     


    

 


3. Delivery
of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, or at any time after the date hereof
upon the acquisition or possession by the Debtor, each Debtor shall deliver or cause to be delivered to the Agent (a) any and
all certificates and other instruments representing or evidencing the Pledged Securities together with appropriate instruments
of transfer executed in blank, and (b) any and all certificates and other instruments or documents representing any of the other
Collateral (other than checks to be deposited in the ordinary course of business) or which require or permit possession by the
Agent to perfect its Security Interest therein, with a value in excess of $100,000 individually or $500,000 in the aggregate,
in each case, to the extent delivery of the Collateral is required for “control” within the meaning of Section 9-104
of the UCC, and in each case, together with all Necessary Endorsements. The Debtors are, contemporaneously with the execution
hereof, delivering to Agent, or have previously delivered to Agent, a true and correct copy of each Organizational Document governing
any of the Pledged Securities.


 


4. Representations,
Warranties, Covenants and Agreements of the Debtors. Except as set forth under the corresponding section of the disclosure
schedules delivered to the Secured Parties concurrently herewith (the “Disclosure Schedules”), which Disclosure
Schedules shall be deemed a part hereof, each Debtor represents and warrants on the date hereof to, and covenants and agrees with,
the Secured Parties as follows:


 


(a)
Each Debtor has the requisite corporate, partnership, limited liability company or other power and authority to enter into this
Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by each Debtor of this
Agreement and the filings contemplated therein have been duly authorized by all necessary corporate action on the part of such
Debtor and no further action is required by such Debtor. This Agreement has been duly executed by each Debtor. This Agreement
constitutes the legal, valid and binding obligation of each Debtor, enforceable against each Debtor in accordance with its terms
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws of general
application relating to or affecting the rights and remedies of creditors and by general principles of equity.


 


(b)
 The Debtors have no place of business or offices where their respective books of account and records are kept (other than
temporarily at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth
on Schedule A attached hereto (other than Collateral with a value not exceeding $100,000 in the aggregate, Collateral in
transit between locations, out for repair or refurbishment, or which consists of laptops or other equipment used by an employee
of a Debtor in the ordinary course of business). Except as specifically set forth on Schedule A, each Debtor is the record
owner of the real property where such Collateral is located, and there exist no mortgages or other liens on any such real property
except for Permitted Liens. Except as disclosed on Schedule A, none of such Collateral (other than Collateral with a value not
exceeding $100,000 in the aggregate, Collateral in transit between locations, out for repair or refurbishment)
is in the possession of any consignee, bailee, warehouseman,
agent or processor.


 






    	 	6	 



     


    

 


(c)
 Except for Permitted Liens and except as set forth on Schedule B attached hereto,
the Debtors are the sole owner of the Collateral (except for non-exclusive licenses granted by any Debtor in the ordinary course
of business), free and clear of any liens, security interests, encumbrances, rights or claims, and are fully authorized to grant
the Security Interests. Except as set forth on Schedule C attached hereto, there is not on file in any governmental or
regulatory authority, agency or recording office an effective financing statement, security agreement or transfer or any notice
of any of the foregoing (other than those that will be filed in favor of the Secured Parties pursuant to this Agreement) covering
or affecting any of the Collateral. Except as set forth on Schedule C attached hereto and except pursuant to this
Agreement, as long as this Agreement shall be in effect, the Debtors shall not knowingly permit to be on file in any such office
or agency any other financing statement or other document or instrument (except (i) in connection with Permitted Liens or (ii)
to the extent filed or recorded in favor of the Secured Parties pursuant to the terms of this Agreement).


 


(d)
 No written claim has been received that any Collateral or any Debtor’s use of any Collateral violates the rights of
any third party. To the knowledge of the Debtors, there has been no adverse decision to any Debtor’s claim of ownership
rights in or exclusive rights to use the Collateral in any jurisdiction or to any Debtor’s right to keep and maintain such
Collateral in full force and effect, and to the knowledge of the Debtors, there
is no proceeding involving said rights pending
or, to the knowledge of any Debtor, threatened before any court, judicial body, administrative or regulatory agency, arbitrator
or other governmental authority.


 


(e)
 Each Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place
of business and its Collateral at the locations set forth on Schedule A attached hereto,
except for Collateral with a value not exceeding $100,000 in the aggregate, Collateral in transit, in temporary possession of
an employee, or absent for repair, refurbishment or other bona fide business reason, and may not relocate such books of
account and records or tangible Collateral unless it delivers to the Secured Parties at least 7 days prior to such relocation(i)
written notice of such relocation and the new location thereof (which must be within the United States) and (ii) prior to or contemporaneously
therewith takes all actions reasonably requested by the Agent to maintain a valid and continuing perfected first priority lien
in the Collateral, subject to Permitted Liens.


 






    	 	7	 



     


    

 


(f)
 This Agreement creates in favor of the Agent, on behalf of the Secured Parties, a valid security interest in the Collateral,
subject only to Permitted Liens, securing the payment and performance of the Obligations. Upon making the filings described in
the immediately following paragraph, all security interests created hereunder in any Collateral which may be perfected by filing
Uniform Commercial Code financing statements shall have been duly perfected. Except for the filing of the Uniform Commercial Code
financing statements referred to in the immediately following paragraph, the recordation of the Intellectual Property Security
Agreement (as defined in Section 4(p) hereof) with respect to copyrights and copyright applications in the United States Copyright
Office referred to in paragraph (hh), the execution by all applicable parties and delivery of deposit account control agreements
satisfying the requirements of Section 9-104(a)(2) of the UCC with respect to each deposit account of the Debtors, and
the delivery of the certificates and other instruments provided in Section 3, no action is necessary on the date hereof
to create, perfect or protect the security interests in the Collateral created hereunder. Without limiting the generality of the
foregoing, except for the filing of said financing statements, the
recordation of said Intellectual Property Security Agreement, and the execution and delivery of said deposit account control agreements,
no consent of any third parties and no authorization, approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for (i) the execution, delivery and performance of this Agreement, (ii) the creation
or perfection of the Security Interests created hereunder in the Collateral or (iii) the enforcement of the rights of the Agent
and the Secured Parties hereunder, except for those consents and approvals which have already been obtained. The Secured Parties
acknowledge that additional steps may be required to perfect their security interest in assets or other property or Foreign Subsidiaries
located outside of the United States, Canada or the European Union.


 


(g)
 Each Debtor hereby authorizes the Agent to file one or more financing statements (at the expense of the Debtor)under the
UCC necessary or reasonably desirable to perfect the Security Interests granted herein, in each case with the proper filing and
recording agencies in any jurisdiction deemed proper by it (and such authorization includes describing the Collateral as “all
assets” of such Debtor).


 


(h)
 The execution, delivery and performance of this Agreement by the Debtors does not (i)
violate any of the provisions of any Organizational Documents of any Debtor or any judgment, decree, order or award of any court,
governmental body or arbitrator or any applicable law, rule or regulation applicable to any Debtor or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material agreement,
credit facility, debt or other instrument (evidencing any Debtor’s debt or otherwise). If any, all required consents (including,
without limitation, from stockholders or creditors of any Debtor) necessary for any Debtor to enter into and perform its obligations
hereunder have been obtained.


 


(i)
The capital stock and other equity interests listed on Schedule H hereto (the “Pledged Securities”)
represent all of the capital stock and other equity interests of the Guarantors, and represent all capital stock and other equity
interests owned, directly or indirectly, by any Debtor, provided that Pledged Securities shall not include (i) any voting stock
of any CFC, (ii) any voting stock of any FSHCO, or (iii) any stock of any subsidiary of a CFC or a FSHCO. All of the Pledged Securities
are validly issued, fully paid and nonassessable, and the Company is the legal and beneficial owner of the Pledged Securities,
free and clear of any lien, security interest or other encumbrance except for the security interests created by this Agreement
and other Permitted Liens.  Nothing herein shall limit the Agent’s right
to a security interest in up to 65% of the voting stock of any CFC or FSHCO pursuant to the terms of the Debenture in connection
with a Permitted Acquisition.


 






    	 	8	 



     


    

 


(j)
 The ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral
(the “Pledged Interests”) by their express terms do not provide that they are securities governed by Article 8 of
the UCC and are not held in a securities account or by any financial intermediary. No Pledged Interest is evidenced or represented
by a certificate or otherwise certificated.


 


(k)
 Except for Permitted Liens, each Debtor
shall at all times take such actions as the Agent may reasonably request to
maintain the liens and Security Interests provided
for hereunder as valid and perfected first priority liens and security interests in the Collateral in favor of the Agent, on behalf
of the Secured Parties, until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14 hereof.
Each Debtor hereby agrees to defend the same against the claims of any and all
persons and entities. Each Debtor shall safeguard and protect all Collateral for the account of the Agent on behalf of Secured
Parties. Without limiting the generality of the foregoing, each Debtor shall pay all fees, taxes and other amounts necessary to
maintain the Collateral and the Security Interests hereunder (other than those fees and taxes that are being contested in good
faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP), and each Debtor
shall obtain and furnish to the Agent from time to time, upon demand, such releases and/or subordinations of claims and liens
which may be required to maintain the priority of the Security Interests hereunder.


 


(l)
 No Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except
for non-exclusive licenses granted by a Debtor in its ordinary course of business and sales of inventory or obsolete or worn-out
items by a Debtor in its ordinary course of business and otherwise in accordance with
the terms of the Debentures) without the prior written consent of the Agent.


 


(m) Each
Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order (except
for normal wear and tear and Collateral that has become obsolete in the business judgment of the applicable Debtor) and
shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.


 






    	 	9	 



     


    

 


(n) Each
Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral
hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established
reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances
by other such entities and otherwise as is prudent for entities engaged in similar businesses. Each Debtor shall cause each insurance
policy issued in connection herewith to provide, and shall provide evidence reasonably satisfactory to the Agent in its sole discretion
demonstrating, that (a) the Agent will be named as lender loss payee and additional insured under each such insurance policy;
(b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly
notify the Agent and such cancellation or change shall not be effective as to the Agent for at least 30 days
after receipt by the Agent of such notice, unless the effect of such change is to extend or increase coverage under the policy;
and (c) the Agent will have the right (but no obligation) at its election to remedy any default in the payment of premiums within
30 days of notice from the insurer of such default. If no Event of Default (as defined in the Debentures) exists and if the proceeds
arising out of any claim or series of related claims do not exceed $100,000, loss payments in each instance will be applied by
the applicable Debtor to the repair and/or replacement of property with respect to which the loss was incurred to the extent reasonably
feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable to the applicable
Debtor; provided, however,
that payments received by any Debtor after an Event of Default occurs and is continuing or in excess of $100,000for any occurrence
or series of related occurrences shall be paid to the Agent on behalf of the Secured Parties and, if received by such Debtor,
shall be held in trust for the Secured Parties and immediately paid over to the Agent unless otherwise directed in writing by
the Agent. Copies of such policies or the related certificates, in each case, naming the Agent as lender loss payee and additional
insured shall be delivered to the Agent at least annually and at the time any new policy of insurance is issued.


 


(o)
 Each Debtor shall, within 10 days of obtaining
knowledge thereof, advise the Secured Parties promptly, in sufficient detail, of any material adverse change in the Collateral,
and of the occurrence of any event which would have a material adverse effect on the value of the Collateral or on the Agent’s
security interest therein.


 


(p)
 Each Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and assurances and take such further action as the Agent may
from time to time request and may in its sole discretion deem
necessary to perfect, protect or enforce the Agent’s security interest in the Collateral including, without limitation,
if applicable, the execution and delivery of a separate security agreement with respect to each Debtor’s Intellectual Property
(“Intellectual Property Security Agreement”) in which the Agent, on behalf of the Secured Parties, have been
granted a security interest hereunder, substantially in a form reasonably acceptable to the Agent, which Intellectual Property
Security Agreement, other than as stated therein, shall be subject to all of the terms and conditions hereof. Each Debtor hereby
further authorizes the Agent to file with the United States Patent and Trademark Office and the United States Copyright Office
(and any successor office and any similar office in any United States state or other country) this Agreement, the Intellectual
Property Security Agreement, and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting
the security interest granted by such Debtor hereunder, without the signature of such Debtor where permitted by law, and naming
such Debtor as debtor, and the Agent as secured party.


 



    	 	10	 



     


    

 


(q)
 Each Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours
and upon reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by
the Agent from time to time.


 


(r)
 Each Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any
material rights, claims, causes of action (to the extent that such Debtor determines in its commercially reasonable discretion
that the pursuit of such right, claim or cause of action is beneficial to such Debtor) and accounts receivable in respect of the
Collateral.


 


(s)
 Each Debtor shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment,
execution or other legal process levied against a material portion of the Collateral and of any other information received by
such Debtor that may materially affect the value of the Collateral, the Security Interest or the rights and remedies of the Agent
or the Secured Parties hereunder.


 


(t)
 All information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of any Debtor with respect
to the Collateral is accurate and complete in all material respects as of the date furnished.


 


(u)
 Each Debtor was organized and remains organized solely under the laws of the state set forth next to such Debtor’s
name in Schedule D attached hereto, which Schedule D sets forth each Debtor’s actual legal name and organizational
identification number or, if any Debtor does not have an organizational identification number, states that one does not exist.
The Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and
any licenses, franchises or similar rights material to its business. No Debtor will (i) change its name, type of organization,
jurisdiction of organization, organizational identification number (if it has one), legal or corporate structure, or identity,
(ii) add any new fictitious name or D/B/A or (iii) relocate its chief executive office to a new location unless it provides at
least 15 days prior written notice to the Secured Parties of such change. At the time of such written notification or contemporaneously
with such relocation, such Debtor shall take any further action requested by the Agent reasonably necessary to perfect and continue
the perfection of the Security Interests granted and evidenced by this Agreement.


 


(v) Except
in the ordinary course of business, no Debtor may consign any of its inventory or sell any of its inventory on bill and hold,
sale or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be unreasonably
withheld.


 






    	 	11	 



     


    

 


(w) 
(i) no Debtor has any trade names except as set forth on Schedule E attached hereto; (ii) no Debtor has used any name other
than that stated in the preamble hereto or as set forth on Schedule E for the preceding five years; and (iii) no entity
has merged into any Debtor or been acquired by any Debtor within the past five years except as set forth on Schedule E.


 


(x)
 Each Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Agent regarding
the Pledged Interests consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by
Section 8-106 (or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement
with respect to the Pledged Interests (or one that would confer “control” within the meaning of Article 8 of the UCC)
with any other person or entity.


 


(y) Each
Debtor shall promptly inform the Agent of the acquisition of any chattel paper and upon
the Agent’s reasonable request, each Debtor shall cause all tangible chattel paper constituting Collateral to be
delivered to the Agent, or, if such delivery is not possible, then to cause such tangible chattel paper to contain a legend noting
that it is subject to the security interest created by this Agreement. To the extent that any Collateral consists of electronic
chattel paper, the applicable Debtor shall cause the underlying chattel paper to be marked and maintained in accordance with Section
9-105 of the UCC (or successor section thereto).


 


(z) If
there is any investment property or deposit account included as Collateral that can be perfected by “control” through
a deposit account control agreement, the applicable Debtor shall cause such a deposit account control agreement, in form and substance
in each case satisfactory to the Agent, to be entered into in accordance with the terms
of the Debentures.


 


(aa)
To the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the
issuer of each underlying letter of credit to consent to an assignment of the proceeds thereof to the Secured
Parties.


 


(bb)
 To the extent that any Collateral is in the possession of any third party(other
than Collateral with a value not exceeding $100,000 in the aggregate, Collateral in transit, in possession of an officer or employee,
in possession of a third party for repair, refurbishment or other bona fide business reason), the applicable Debtor shall
join with the Agent in notifying such third party of the Secured Parties’ security interest in such Collateral and shall
use its best efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form
and substance reasonably satisfactory to the Agent.


 


(cc)If
any Debtor shall at any time hold or acquire a commercial tort claim in an amount reasonably likely to be in excess of $100,000,
such Debtor shall promptly notify the Agent in a writing signed by such Debtor of the particulars thereof and grant
to the Agent, on behalf of the Secured Parties, in such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance satisfactory to the Agent.


 






    	 	12	 



     


    

 


(dd)Following
the date hereof, each Debtor shall cause each new subsidiary of such Debtor to become a party hereto (an “Additional
Debtor”) within 10 days of the acquisition or formation of such new subsidiary (or such later date as may be approved
by the Agent) by executing and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto. Concurrent
therewith, the Additional Debtor shall deliver replacement schedules for, or supplements to all other Schedules to (or referred
to in) this Agreement, as applicable, which replacement schedules shall supersede, or supplements shall modify, the Schedules
then in effect. The Additional Debtor shall also deliver such opinions of counsel, authorizing resolutions, good standing certificates,
incumbency certificates, organizational documents and other information and documentation as the Agent may reasonably request.
Upon delivery of the foregoing to the Agent, the Additional Debtor shall be and become a party to this Agreement with the same
rights and obligations as the Debtors, for all purposes hereof as fully and to the same extent as if it were an original signatory
hereto and shall be deemed to have made the representations, warranties and covenants set forth herein as of the date of execution
and delivery of such Additional Debtor Joinder, and all references herein to the “Debtors” shall be deemed to include
each Additional Debtor.


 


(ee)
Each Debtor shall be entitled to exercise all voting and/or consensual rights and powers inuring to an owner of the Pledged
Securities and any part thereof for all purposes not inconsistent with the terms of this Agreement or any other Transaction Document.


 


(ff)Each
Debtor shall register the pledge of the applicable Pledged Securities on the books of such Debtor. Each Debtor shall notify each
issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Parties on
the books of such issuer. Further, except with respect to certificated securities delivered to the Agent, the applicable Debtor
shall deliver to Agent an acknowledgement of pledge (which, where appropriate, shall comply with the requirements of the relevant
UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement
shall confirm that: (a) it has registered the pledge on its books and records; and (b) at any time directed by Agent during the
continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into the name of
any designee of Agent, will take such steps as may be necessary to effect the transfer, and will comply with all other instructions
of Agent regarding such Pledged Securities without the further consent of the applicable Debtor.


 






    	 	13	 



     


    

 


(gg)
In the event that, upon an occurrence and during the continuation of an Event of Default, Agent shall sell all or any of
the Pledged Securities to another party or parties (herein called the “Transferee”) or shall purchase or retain
all or any of the Pledged Securities, each Debtor shall, to the extent applicable: (i) deliver to Agent or the Transferee, as
the case may be, the articles of incorporation, bylaws, minute books, stock certificate books, corporate seals, deeds,
leases, indentures, agreements, evidences of indebtedness, books of account, financial records and all other Organizational
Documents and records of the Debtors and their direct and indirect subsidiaries; (ii) use its best efforts to obtain
resignations of the persons then serving as officers and directors of the Debtors and their direct and indirect subsidiaries,
if so requested; and (iii) use its best efforts to obtain any approvals that are required by any governmental or regulatory
body in order to permit the sale of the Pledged Securities to the Transferee or the purchase or retention of the Pledged
Securities by Agent and allow the Transferee or Agent to continue the business of the Debtors and their direct and indirect
subsidiaries.


 


(hh)
Without limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) provide any
requested documents and information and carry out any actions reasonably requested in connection with recording of the security
interest contemplated hereby with respect to all Intellectual Property at the United States Copyright Office or United States
Patent and Trademark Office, and (ii) give the Agent notice whenever
it acquires (whether absolutely or by exclusive license) or creates any additional material Intellectual Property that is subject
to an application or registration at the United States Patent and Trademark Office or the United States Copyright Office.


 


(ii)Each
Debtor will from time to time, at the joint and several expense of the Debtors, promptly execute and deliver all such further
instruments and documents, and take all such further action as may be necessary or reasonably desirable, or as the Agent may reasonably
request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Agent,
for the benefit of the Secured Parties, to exercise and enforce the rights and remedies hereunder and with respect to any Collateral
or to otherwise carry out the purposes of this Agreement.


 


(jj)As
of the date hereof, Schedule F attached hereto lists all of the patents, patent applications, trademarks, trademark applications,
registered copyrights, and domain names owned by any of the Debtors as of the date hereof. As of the date hereof, Schedule
F lists all material licenses in favor of any Debtor for the use of any patents, trademarks, copyrights and domain names as
of the date hereof. All material patents of the Debtors have been duly recorded at the United States Patent and Trademark Office.


 


(kk)As
of the date hereof, except as set forth on Schedule G attached hereto, none of the account debtors or other persons or
entities obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any
similar federal, state or local statute or rule in respect of such Collateral. Each Debtor shall promptly provide written notice
to the Agent of any and all accounts which arise out of contracts with any governmental authority and, to the extent necessary
to perfect or continue the perfected status of the Security Interests in such accounts and proceeds thereof, shall execute and
deliver to the Agent an assignment of claims for such accounts and cooperate with the Agent in taking any other steps required,
in its reasonable judgment, under the Federal Assignment of Claims Act or any similar federal, state or local statute or rule
to perfect or continue the perfected status of the Security Interests in such accounts and proceeds thereof.


 






    	 	14	 



     


    

 


(ll)
Until the Obligations shall have been paid in full, each Debtor covenants that it shall promptly, in no event later than 10 days
following the formation or acquisition thereof (or such later date as may be approved by the Agent), direct any direct or indirect
subsidiary of such Debtor formed or acquired after the date hereof enter into a
subsidiary guarantee acceptable to Agent in form and substance.


 


5. Effect
of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership
interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests
upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets
of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement
of any of Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights
notwithstanding any provisions in the Organizational Documents or agreements to which any Debtor is subject or to which any Debtor
is party.


 


6. Defaults.
The following events shall be “Events of Default”
under this Agreement:


 


(a)
The occurrence of an Event of Default (as defined in the Debentures) under the Debentures; and


 


(b)
The failure by any Debtor to observe or perform any of its covenants or agreements contained in this Agreement, which failure
is not cured, if possible to cure, within 10 days following notice of failure sent by the Agent or any Purchaser to the Company.


 


7. Duty
To Hold In Trust.


 


(a) Upon
the occurrence and during the continuation of any
Event of Default, and upon receipt of written notice from the Agent, each Debtor shall, upon receipt of any revenue, income,
dividend, interest or other sums subject to the Security Interests, whether payable pursuant to the Debentures or otherwise,
or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same
in trust for the Agent for the benefit of the Secured Parties and shall promptly endorse
and transfer any such sums or instruments, or both, to the Agent for the benefit of the Secured Parties pro-rata in proportion
to their respective then-currently outstanding principal amount of Debentures for application to the satisfaction of the Obligations
(and if any Debenture is not outstanding, pro-rata in proportion to the initial purchases of the remaining Debentures).


 






    	 	15	 



     


    

 


(b) If
any Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation,
shares of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in connection with any reorganization of such Debtor or any of
its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in
exchange for, such Pledged Securities or otherwise), such Debtor agrees to (i) accept the same as the agent of the Secured Parties;
(ii) hold the same in trust for the Agent for the benefit of the Secured Parties; and (iii) to deliver any and all certificates
or instruments evidencing the same to Agent on or before the close of business on the fifth
Business Day following the receipt thereof by such Debtor, in the exact form received
together with the Necessary Endorsements, to be held by Agent subject to the terms of this Agreement as Collateral.


 


8. Rights
and Remedies Upon Default.


 


(a) Upon
the occurrence and during the continuation of any Event of Default, the Agent,
for the benefit of the Secured Parties, shall have the right to exercise all of the remedies conferred hereunder and under the
Debentures, and the Agent shall have all the rights and remedies of a secured party under the UCC. Without limitation, the Agent,
for the benefit of the Secured Parties, shall have the following rights and powers:


 


(i)
The Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance
of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor
shall assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at
such Debtor’s premises or elsewhere, and make available to the Agent, without rent, all of such Debtor’s respective
premises and facilities for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable
form.


 


(ii) Upon
notice to the Debtors by Agent, all rights of each Debtor to exercise the voting and other consensual rights which it would otherwise
be entitled to exercise and all rights of each Debtor to receive the dividends and interest which it would otherwise be authorized
to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive, for the benefit of the Secured Parties,
any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent’s
discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent shall have the right
(but not the obligation) to exercise all rights with respect to the Collateral as if it were the sole and absolute owner thereof,
including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection
with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or
any Debtor or any of its direct or indirect subsidiaries.


 






    	 	16	 



     


    

 


(iii)
The Agent shall have the right to operate the business of each Debtor using the Collateral and shall have the right to assign,
sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either
with or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and
at such time or times and at such place or places, and upon such terms and conditions as the Agent may deem commercially reasonable,
all without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to
any Debtor or right of redemption of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other
transfer of Collateral, the Agent, for the benefit of the Secured Parties, may, unless prohibited by applicable law which cannot
be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption
and equities of any Debtor, which are hereby waived and released. The Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.


 


(iv) The
Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights against such
account debtors and obligors.


 


(v) The
Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other person
or entity holding any investment property to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.


 


(vi) The
Agent may (but is not obligated to) transfer any or all Intellectual Property pledged
as Collateral and registered in the name of any Debtor at the United States Patent and Trademark Office and/or Copyright
Office into the name of the Secured Parties or any designee or any purchaser of any Collateral.


 


(b)The
Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
to adversely affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit, the Debtors
will only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights that it
may have to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder, including,
without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its
rights and remedies with respect thereto.


 






    	 	17	 



     


    

 


(c) For
the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by
agreement or applicable law, each Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured Parties, a nonexclusive
license (exercisable without payment of royalty or other compensation to such Debtor, such license to be irrevocable during the
term hereof) to use, license or sublicense, in all cases solely following the occurrence and during the continuation of an Event
of Default, any Intellectual Property included among the Collateral, and including in such license access to all media in which
any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout
thereof.


 


9. Applications
of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on
account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding,
storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable, actual and documented attorneys’ fees and out-of-pocket
expenses incurred by the Agent in enforcing the Secured Parties’ rights hereunder and in connection with collecting,
storing and disposing of the Collateral, and then to satisfaction of the Obligations pro rata among the Secured Parties (based
on then-outstanding principal amounts of Debentures at the time of any such determination), and to the payment of any other amounts
required by applicable law, after which the Secured Parties shall pay to the applicable Debtor any surplus proceeds. If, upon
the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the
Secured Parties are legally entitled, the Debtors will be liable for the deficiency, together with interest thereon, at the Applicable
Interest Rate, and the reasonable fees
of any attorneys employed by the Secured Parties to collect such deficiency. To the extent permitted by applicable law, each Debtor
waives all claims, damages and demands against the Secured Parties arising out of the repossession, removal, retention or sale
of the Collateral, unless due solely to the gross negligence or willful misconduct of the Secured Parties as determined by a final
judgment (not subject to further appeal) of a court of competent jurisdiction.


 


10. Securities
Law Provision. Each Debtor recognizes that Agent may be limited in its ability to effect a sale to the public of all or part
of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state
securities laws (collectively, the “Securities
Laws”), and may be compelled to resort to one or more sales to a restricted
group of purchasers who may be required to agree to acquire the Pledged Securities for their own account, for investment and not
with a view to the distribution or resale thereof. Each Debtor agrees that sales so made may be at prices and on terms less favorable
than if the Pledged Securities were sold to the public, and that Agent has no obligation to delay the sale of any Pledged Securities
for the period of time necessary to register the Pledged Securities for sale to the public under the Securities Laws. Each Debtor
shall cooperate with Agent in its attempt to satisfy any requirements under the Securities Laws (including, without limitation,
registration thereunder if requested by Agent) applicable to the sale of the Pledged Securities by Agent.


 






    	 	18	 



     


    

 


11. Costs
and Expenses. The Debtors shall pay all other claims and charges which in the reasonable opinion of the Agent is reasonably
likely to prejudice, imperil or otherwise affect the Collateral or the Security Interests therein. The Debtors will also, upon
demand, pay to the Agent the amount of any and all reasonable expenses, including the reasonable, actual and documented fees and
out-of-pocket expenses of its legal counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties,
may incur in connection with the protection, satisfaction, foreclosure, collection or enforcement of the Security Interest and
the administration, continuance, amendment or enforcement of this Agreement and pay to the Agent the amount of any and all reasonable
expenses, including the reasonable, actual and documented fees and out-of-pocket expenses of its counsel and of any experts and
agents, which the Agent, for the benefit of the Secured Parties, and the Secured Parties may incur in connection with (i) the
enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization
upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of the Secured Parties under the Debentures.
Any invoiced fees due and payable hereunder shall be added to the principal amount of the Debentures and shall bear interest at
the Applicable Interest Rate.


 


12. Responsibility
for Collateral. The Debtors assume all liabilities and responsibility in connection with all Collateral, and the Obligations
shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its
unavailability for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any Secured Party (i)
has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any
rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b)
each Debtor shall remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed
by such Debtor thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability under any such contract
or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Secured Party of any payment relating
to any of the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to perform any of the obligations
of any Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Agent or any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party
under any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect
the payment of any amounts which may have been assigned to the Agent or to which the Agent or any Secured Party may be entitled
at any time or times.


 






    	 	19	 



     


    

 


13. Security
Interests Absolute. All rights of the Secured Parties and all obligations of the Debtors hereunder, shall be absolute and
unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Debentures or any agreement
entered into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of
payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any
consent to any departure from the Debentures or any other agreement entered into in connection with the foregoing; (c) any exchange,
release or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other
collateral for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties
to obtain, adjust, settle and cancel in their sole discretion any insurance claims or matters made or arising in connection with
the Collateral; or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor,
or a discharge of all or any part of the Security Interests granted hereby. Until the Obligations shall have been paid in full,
the rights of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation,
the running of the statute of limitations or bankruptcy of a Debtor or any other person liable for any Obligations. Each Debtor
expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the event
that at any time any transfer of any Collateral or any payment received by the Secured Parties hereunder shall be deemed by final
order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or
insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Parties, then,
in any such event, each Debtor’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged
or satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation
enforceable in accordance with the terms and provisions hereof. Each Debtor waives all right to require the Secured Parties to
proceed against any other person or entity or to apply any Collateral
which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other remedy. Each Debtor waives any defense
arising by reason of the application of the statute of limitations to any obligation secured hereby.


 


14. Term
of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Debentures
have been paid in full and all other Obligations (other than inchoate indemnity and expense obligations as to which no claim has
been made) have been paid or discharged; provided, however, that all indemnities of the Debtors contained in this Agreement
(including, without limitation, Annex B hereto) shall survive and remain operative and in full force and effect regardless
of the termination of this Agreement.


 






    	 	20	 



     


    

 


15. Power
of Attorney; Further Assurances.


 


(a)
 Each Debtor authorizes the Agent, and does hereby make, constitute and appoint the Agent and its officers, agents, successors
or assigns with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of
the Agent or such Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks,
drafts, money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance)
in respect of the Collateral that may come into possession of the Agent; (ii) to sign and endorse any invoice, freight or express
bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection
with accounts, and other documents relating to the Collateral; (iii) to pay or discharge taxes, liens, security interests or other
encumbrances at any time levied or placed on or threatened against the Collateral; (iv) to demand, collect, receipt for, compromise,
settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual Property pledged
as Collateral or provide licenses respecting any Intellectual Property pledged
as Collateral; and (vi) generally, at the option of the Agent, and at the expense of the Debtors, at any time, or from
time to time, to execute and deliver any and all documents and instruments and to do all acts and things which the Agent deems
necessary to protect, preserve and realize upon the Collateral and the Security Interests granted therein in order to effect the
intent of this Agreement and the Debentures all as fully and effectually as the Debtors might or could do, and each Debtor hereby
ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with
an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be
outstanding. The designation set forth herein shall be deemed to amend and supersede
any inconsistent provision in the Organizational Documents or other documents or agreements to which any Debtor is subject or
to which any Debtor is a party. Without limiting the generality of the foregoing, after the occurrence and during the continuance
of an Event of Default, the Agent is specifically authorized to execute and file any applications for or instruments of transfer
and assignment of any patents, trademarks, copyrights or other Intellectual Property pledged
as Collateral with the United States Patent and Trademark Office and the United States Copyright Office.


 


(b)
 On a continuing basis, each Debtor will take all such action as may reasonably be deemed
necessary or advisable, or as reasonably requested by the Agent, to perfect the Security Interests granted hereunder and otherwise
to carry out the intent and purposes of this Agreement, or for assuring and confirming to the Agent the grant or perfection of
a perfected security interest in all the Collateral under the UCC.


 


16. Notices.
All notices, requests, demands and other communications
hereunder shall be subject to the notice provision of the Purchase Agreement and sent to the address of the applicable Purchaser
and Company set forth therein, or, with respect to the Agent, to the address set forth on Annex B hereto.


 


17. Other
Security. To the extent that the Obligations
are now or hereafter secured by property other than the Collateral or by the guarantee, endorsement or property of any other person,
firm, corporation or other entity, then the Agent shall have the right, in its sole discretion, to pursue, relinquish, subordinate,
modify or take any other action with respect thereto, without in any way modifying or affecting any of the Secured Parties’
rights and remedies hereunder.


 


18. Appointment
of Agent. The Secured Parties hereby appoint JGB Collateral, LLC to act as their agent for purposes of exercising any and
all rights and remedies of the Secured Parties hereunder and under the other Transaction Documents. The Agent shall have the rights,
responsibilities and immunities set forth in Annex B hereto.


 






    	 	21	 



     


    

 


19. Termination
of Security Interests; Release of Collateral.


 


 (a) Upon termination of this Agreement in accordance with Section 14hereof (other than contingent indemnification obligations), the Security Interests shall automatically terminate and all rights to the Collateral shall automatically revert to the Debtors. Upon any such termination of the Security Interests or release of such Collateral, the Agent will, at the expense of the Debtors, execute and deliver to the Debtors such documents as the Debtors shall reasonably request, but without recourse or warranty to the Agent, including but not limited to written authorization to file termination statements to evidence the termination of the Security Interests in such Collateral.




 


(b) The
Agent and Secured Parties hereby agree that the Security Interests held on any Collateral constituting property being sold, transferred
or disposed of in a disposition permitted hereunder or under the Debentures shall automatically be released upon such sale, transfer
or disposal permitted hereunder or under the Debentures. Upon any such termination of the Security Interests or release of such
Collateral, the Agent will, at the expense of the Debtors, execute and delivery to the Company such documents as the Debtors shall
reasonably request, but without recourse or warranty to the Agent, including but not limited to written authorization to file
termination statements to evidence the termination of the Security Interests in such Collateral.


 


20. Miscellaneous.


 


(a)
 No course of dealing between the Debtors and the Secured Parties, nor any failure to
exercise, nor any delay in exercising, on the part of the Secured Parties, any right, power or privilege hereunder or under the
Debentures shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder
or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.


 


(b)
 All of the rights and remedies of the Agent, on behalf of the Secured Parties, with
respect to the Collateral, whether established hereby or by the Debentures or by any other agreements, instruments or documents
or by law shall be cumulative and may be exercised singly or concurrently.


 


(c)
 This Agreement, together with the exhibits and schedules hereto, contain the entire
understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into this Agreement and the exhibits
and schedules hereto. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument
signed, in the case of an amendment, by the Debtors and the Agent (or, in the event that the Agent no longer holds any Debentures,
in a written instrument signed by the Debtors and the Majority in Interest), or, in the case of a waiver, by the party against
whom enforcement of any such waived provision is sought.


 






    	 	22	 



     


    

 


(d)
 If any term, provision, covenant or restriction of this Agreement is held by a court
of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated,
and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the
same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated
and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions
without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.


 


(e)
 No waiver of any default with respect to any provision, condition or requirement of
this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder
in any manner impair the exercise of any such right.


 


(f)
 This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.
The Company and the Guarantors may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Secured Party and any assignment in contravention herewith shall be null and void. Any Secured Party may assign
any or all of its rights under this Agreement to any Person to whom such Secured Party assigns or transfers any Obligations, provided
such transferee agrees in writing to be bound, with respect to the transferred Obligations, by the provisions of this Agreement
that apply to the “Secured Parties”.


 


(g)
 Each party shall take such further action and execute and deliver such further documents as may be necessary or appropriate
in order to carry out the provisions and purposes of this Agreement.


 


(h)
 Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, each party hereto agrees that
all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and
the Debentures (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners,
members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York,
Borough of Manhattan. Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located,
each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City
of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby
irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under the Purchase Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial
by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.


 






    	 	23	 



     


    

 


(i)
 This Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the
event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature
were the original thereof.


 


(j) All
Debtors shall jointly and severally be liable for the obligations of each Debtor to the Secured Parties hereunder.


 


(k) Each
Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured Parties and their respective partners, members,
shareholders, officers, directors, employees and agents (and any other persons with other titles that have similar functions)
(collectively, “Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties,
suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the
foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise
from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses
which result from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision
of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification
provision in the Debentures, the Purchase Agreement or any other agreement, instrument or other document executed or delivered
in connection herewith or therewith.


 


(l) Nothing
in this Agreement shall be construed to subject Agent or any Secured Party to liability as a partner in any Debtor or any if its
direct or indirect subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect subsidiaries
that is a limited liability company, nor shall Agent or any Secured Party be deemed to have assumed any obligations under any
partnership agreement or limited liability company agreement, as applicable, of any such Debtor or any of its direct or indirect
subsidiaries or otherwise, unless and until any such Secured Party exercises its right to be substituted for such Debtor as a
partner or member, as applicable, pursuant hereto.


 


(m)
 To the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require
the consent, approval or action of any partner or member, as applicable, of any Debtor or any direct or indirect subsidiary of
any Debtor or compliance with any provisions of any of the Organizational Documents, the Debtors hereby grant such consent and
approval and waive any such noncompliance with the terms of said documents.


 


[SIGNATURE
PAGES FOLLOW]


 







    	 	24	 



     


    

 


IN
WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.


 





	DEBTORS:


	 
	 	 
	LIVEXLIVE MEDIA, INC.	 
	 	 	 
	By:	/s/
Robert Ellin	 
	 	Name: Robert Ellin	 
	 	Title:   CEO	 
	 	 	 
	slacker,
inc.	 
	 	 	 
	By:	/s/
Robert Ellin	 
	 	Name: Robert Ellin	 
	 	Title:   Executive Chairman	 
	 	 	 
	livexlive,
corp.	 
	 	 	 
	By:	/s/ Robert Ellin	 
	 	Name: Robert Ellin	 
	 	Title:
      CEO and President	 
	 	 	 
	LXL
STUDIOS, INC.	 
	 	 	 
	By:	/s/ Robert Ellin	 
	 	Name: Robert Ellin	 
	 	Title:   President	 
	 	 	 
	AGENT	 
	 	 	 
	JGB
    COLLATERAL, LLC	 
	 	 	 
	By:	/s/
Brett Cohen	 
	 	Name: Brett
    Cohen	 
	 	Title:   President	 


 


[SIGNATURE
PAGE OF HOLDERS FOLLOWS]


 






    	 	25	 



     


    

 





[SIGNATURE
PAGE OF PURCHASER TO LIVEXLIVE MEDIA, INC.]


 


Name
of Investing Entity: JGB Partners, LP


 


Signature
of Authorized Signatory of Investing entity:  /s/ Brett Cohen                             


 


Name
of Authorized Signatory:  Brett Cohen                                                   


 


Title
of Authorized Signatory:  President                                                        


 






    	 	26	 



     


    

 


[SIGNATURE
PAGE OF PURCHASER TO LIVEXLIVE MEDIA, INC.]


 


Name
of Investing Entity: JGB Capital, LP


 


Signature
of Authorized Signatory of Investing entity:  /s/ Brett Cohen                                    


 


Name
of Authorized Signatory:  Brett Cohen                                                     


 


Title
of Authorized Signatory:  President                                                            


 






    	 	27	 



     


    

 





[SIGNATURE
PAGE OF PURCHASER TO LIVEXLIVE MEDIA, INC.]


 


Name
of Investing Entity: JGB (Cayman) Finlaggan Ltd.


 


Signature
of Authorized Signatory of Investing entity:  /s/ Brett Cohen                                        


 


Name
of Authorized Signatory:  Brett Cohen                                                   


 


Title
of Authorized Signatory:  President                                                          


 






    	 	28	 



     


    

 





ANNEX
A


to


SECURITY


AGREEMENT


 


FORM
OF ADDITIONAL DEBTOR JOINDER


 


Security
Agreement dated as of June 29, 2018 made by


LiveXLive
Media, Inc.


and
its subsidiaries party thereto from time to time, as Debtors


to
and in favor of


the
Secured Parties identified therein (the “Security Agreement”)


 


Reference
is made to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have
the meanings given to such terms in, or by reference in, the Security Agreement.


 


The
undersigned hereby agrees that upon delivery of this Additional Debtor Joinder to the Secured Parties referred to above, the undersigned
shall (a) be an Additional Debtor under the Security Agreement, (b) have all the rights and obligations of a Debtor under the
Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to
have made the representations and warranties set forth therein as of the date of execution and delivery of this Additional Debtor
Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY
INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY
TRIAL PROVISIONS SET FORTH THEREIN.


 


Attached
hereto are supplemental and/or replacement Schedules to the Security Agreement, as applicable.


 


An
executed copy of this Joinder shall be delivered to the Secured Parties, and the Secured Parties may rely on the matters set forth
herein on or after the date hereof. This Joinder shall not be modified, amended or terminated without the prior written consent
of the Secured Parties.


 






    	 	A-1	 



     


    

 





IN
WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the name and on behalf of the undersigned.


 


	 	[Name of Additional Debtor]
	 	 	 
	 	By:	                       
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address: 	 


 


Dated:




 






    	 	A-2	 



     


    

 





ANNEX
B


to


SECURITY


AGREEMENT


 


THE
AGENT


 


1.
Appointment. The Secured Parties (all capitalized terms used herein and not otherwise defined shall have the respective
meanings provided in the Security Agreement to which this Annex B is attached (as may be amended, restated or otherwise modified,
the “Agreement”)), by their acceptance of the benefits of the Agreement, hereby designate JGB Collateral, LLC
(“Agent”) as the Agent to act as specified herein and in the Agreement. Each Secured Party shall be deemed
irrevocably to authorize the Agent to take such action on its behalf under the provisions of the Agreement and any other Transaction
Document (as such term is defined in the Purchase Agreement) and to exercise such powers and to perform such duties hereunder
and thereunder as are specifically delegated to or required of the Agent by the terms hereof and thereof and such other powers
as are reasonably incidental thereto. The Agent may perform any of its duties hereunder by or through its agents or employees.


 


2.
Nature of Duties. The Agent shall have no duties or responsibilities except those expressly set forth in the Agreement
and the other Transaction Documents. Neither the Agent nor any of its partners, members, shareholders, officers, directors, employees
or agents shall be liable for any action taken or omitted by it as such under the Agreement or hereunder or in connection herewith
or therewith, be responsible for the consequence of any oversight or error of judgment or answerable for any loss, unless caused
solely by its or their gross negligence or willful misconduct as determined by a final judgment (not subject to further appeal)
of a court of competent jurisdiction. The duties of the Agent shall be mechanical and administrative in nature; the Agent shall
not have by reason of the Agreement or any other Transaction Document a fiduciary relationship in respect of any Debtor or any
Secured Party and nothing in the Agreement or any other Transaction Document, expressed or implied, is intended to or shall be
so construed as to impose upon the Agent any obligations in respect of the Agreement or any other Transaction Document except
as expressly set forth herein and therein.


 


3.
Lack of Reliance on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs
of the Company and its subsidiaries in connection with such Secured Party’s investment in the Debtors, the creation and
continuance of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any
action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of
the value of the Collateral from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing
basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether coming into its
possession before any Obligations are incurred or at any time or times thereafter. The Agent shall not be responsible to the Debtors
or any Secured Party for any recitals, statements, information, representations or warranties herein or in any document, certificate
or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectibility, priority or sufficiency of the Agreement or any other Transaction Document, or for the financial condition
of the Debtors or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or
observance of any of the terms, provisions or conditions of the Agreement or any other Transaction Document, or the financial
condition of the Debtors, or the value of any of the Collateral, or the existence or possible existence of any default or Event
of Default under the Agreement, the Debentures or any of the other Transaction Documents.


 






    	 	B-1	 



     


    

 


4.
Certain Rights of the Agent. The Agent shall have the right to take any action with respect to the Collateral, on behalf
of all of the Secured Parties. To the extent practical, the Agent shall request instructions from the Secured Parties with respect
to any material act or action (including failure to act) in connection with the Agreement or any other Transaction Document, and
shall be entitled to act or refrain from acting in accordance with the instructions of a Majority in Interest; if such instructions
are not provided despite the Agent’s request therefor, the Agent shall be entitled to refrain from such act or taking such
action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions
to be taken by the Agent and the Agent shall not incur liability to any person or entity by reason of so acting or refraining.
Without limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent as a result of
the Agent acting or refraining from acting hereunder in accordance with the terms of the Agreement or any other Transaction Document,
and the Debtors shall have no right to question or challenge the authority of, or the instructions given to, the Agent pursuant
to the foregoing and (b) the Agent shall not be required to take any action which the Agent believes (i) could reasonably be expected
to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction Documents or applicable law.


 


5.
Reliance. The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message
signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the
other Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining
to this Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected by it.
Anything to the contrary notwithstanding, the Agent shall have no obligation whatsoever to any Secured Party to assure that the
Collateral exists or is owned by the Debtors or is cared for, protected or insured or that the liens granted pursuant to the Agreement
have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any particular priority.


 






    	 	B-2	 



     


    

 


6.
Indemnification. To the extent that the Agent is not reimbursed and indemnified by the Debtors, the Secured Parties
will jointly and severally reimburse and indemnify the Agent, in proportion to their initially purchased respective principal
amounts of Debentures, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against
the Agent in performing its duties hereunder or under the Agreement or any other Transaction Document, or in any way relating
to or arising out of the Agreement or any other Transaction Document except for those determined by a final judgment (not subject
to further appeal) of a court of competent jurisdiction to have resulted solely from the Agent’s own gross negligence or
willful misconduct. Prior to taking any action hereunder as Agent, the Agent may require each Secured Party to deposit with it
sufficient sums as it determines in good faith is necessary to protect the Agent for costs and expenses associated with taking
such action.


 


7.
Resignation by the Agent.


 


(a)
The Agent may resign from the performance of all its functions and duties under the Agreement and the other Transaction Documents
at any time by giving 30 days’ prior written notice (as provided in the Agreement) to the Debtors and the Secured Parties.
Such resignation shall take effect upon the appointment of a successor Agent pursuant to clauses (b) and (c) below.


 


(b)
Upon any such notice of resignation, the Secured Parties, acting by a Majority in
Interest, shall appoint a successor Agent hereunder.


 


(c)
If a successor Agent shall not have been so appointed within said 30-day period, the Agent shall then appoint a successor Agent
who shall serve as Agent until such time, if any, as the Secured Parties appoint a successor Agent as provided above. If a successor
Agent has not been appointed within such 30-day period, the Agent may petition any court of competent jurisdiction or may interplead
the Debtors and the Secured Parties in a proceeding for the appointment of a successor Agent, and all fees, including, but not
limited to, extraordinary fees associated with the filing of interpleader and expenses associated therewith, shall be payable
by the Secured Parties on demand.


 






    	 	B-3	 



     


    

 


8.
Rights with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that
it shall not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant
to any other agreement or otherwise (other than as expressly permitted by the terms of the Transaction Documents), or take or
institute any action against the Agent or any of the other Secured Parties in respect of the Collateral or its rights hereunder
(other than as expressly permitted by the terms of the Transaction Documents) and (ii) that such Secured Party has no other rights
with respect to the Collateral other than as set forth herein and the other Transaction Documents. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring Agent and the retiring Agent shall be discharged from its duties and
obligations under the Agreement. After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of
the Agreement including this Annex B shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Agent.


 


9.
Unless otherwise expressly provided herein, all notices and other communications to the Agent provided for hereunder or under
the other Transaction Documents shall be in writing (including by facsimile transmission) and mailed, faxed or delivered, to the
address, facsimile number or electronic mail address specified for notices below or to such other address as shall be designated
by the Agent in a notice to the Debtors and Secured Parties:


 


JGB
Collateral, LLC


c/o
JGB Management Inc.


21
Charles Street


Westport,
CT 10017


Attention:
Johanna White


Telephone
(212) 355-5771


Email:
jwhite@jgbcap.com


Facsimile:
(212) 253-4095


 


 


 B-4