Exhibit
10.18


  


SECURITY
AGREEMENT


 


THIS
SECURITY AGREEMENT (this “Agreement”), is entered into as of February 25, 2019, by and between Bioxytran, Inc.,
a Nevada corporation (the “Borrower”), and Auctus Fund, LLC, a Delaware limited liability company (the “Secured
Party” or “Secured Parties”). All capitalized terms not otherwise defined herein shall the meanings
ascribed to them in that certain Securities Purchase Agreement and Note (as defined below) by and between Borrower and the Secured
Party of even date (the “Securities Purchase Agreement”).


 


RECITALS


 


WHEREAS,
the Secured Parties have loaned monies to Borrower, as more particularly described in the Securities Purchase Agreement and as
evidenced by the 8% senior secured convertible promissory note in the principal amount of $250,000.00 (the “Note”)
issued by Borrower to the Secured Party on February 25, 2019;


 


WHEREAS,
the term “Secured Party” as used in this Agreement shall mean, collectively, all holders of the Note, including those
persons who become holders of Note subsequent to the date hereof; and


 


WHEREAS,
this Agreement is being executed and delivered by Borrower to secure the Note.


 


NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties
hereto hereby agrees as follows:


 


1.
Obligations Secured. This Agreement secures, in part, the prompt payment and performance of all obligations of Borrower
under the Note, and all renewals, extensions, modifications, amendments, and/or supplements thereto (collectively, the “Secured
Obligations”).


 


2.
Grant of Security.


 


a.
Collateral. Borrower hereby grants, pledges, and assigns for the benefit of the Secured Parties, and there is hereby created
in favor of each of the Secured Parties, a security interest in and to all of Borrower’ s right, title, and interest in, to, and
under all of the collateral set forth on Exhibit A hereto (collectively, “Collateral”).


 


b.
Effective Date. This grant of security shall be effective as of the date hereof.


 


c.
Subordination. The Note and the Secured Obligations shall not be subordinated, or junior in interest, to any other obligations
of Borrower.


 






     


     


    

 


d.
Filings to Perfect Security. The Company will (and is hereby authorized to) file with any filing office such financing
statements, amendments, addenda, continuations, terminations, assignments and other records (whether or not executed by Borrower)
to perfect and to maintain perfected security interests in the Collateral by the Secured Parties, whereby (a) promptly upon the
execution of this Agreement, a Financing Statement on Form UCC-1 (the “Financing Statement’’) shall be filed with
the Nevada Secretary of State on behalf of the Secured Parties with respect to the Collateral; The Financing Statement shall designate
each of the Secured Parties as a Secured Party and Borrower as the debtor, shall identify the security interest in the Collateral,
and contain any other items required by law.


 


e.
Release of Security Interest. The security interest granted pursuant to this Agreement shall automatically terminate upon
the effective date of a Form S-1 registering the common stock of the Borrower, par value $.001 per share, issuable to the Secured
Party pursuant to the Note for resale at prevailing market prices. The Secured Party authorizes Borrower to file UCC termination
statements in order to terminate any Financing Statement in accordance with this Agreement.


 


The
Financing Statement shall contain a description of collateral consistent with the description set forth herein and shall not describe
the collateral as “all assets” or “all personal property.”


 


3.
Transfers and Other Liens. Except as set forth herein or in the Note, Borrower shall not, without the prior written consent
of all of the Secured Parties, at their sole and absolute discretion:


 


a.
Sell, transfer, assign, or dispose of (by operation of law or otherwise), any of the Collateral outside of the ordinary course
of business;


 


b.
Create or suffer to exist any lien, security interest, or other charge or encumbrance upon or with respect to any of the Collateral,
except the security interests created hereby; or


 


c.
Permit any of the Collateral to be levied upon under any legal process.


 


4.
Representations and Warranties. Borrower hereby represents and warrants to the Secured Parties as follows: (a) to Borrower’
s knowledge, Borrower is the owner of the Collateral (or, in the case of after-acquired Collateral, at the time Borrower acquires
rights in the Collateral, will be the owner thereat) and that, except as expressly provided herein, no other person has (or, in
the case of after-acquired Collateral, at the time Borrower acquires rights therein, will have) any right, title, claim or interest
(by way of Lien or otherwise) in, against or to the Collateral; (b) to Borrower’s knowledge, except as expressly provided herein,
upon the filing of a Financing Statement with the Nevada Secretary of State, the Secured Parties (or in the case of after-acquired
Collateral, at the time Borrower acquires rights therein, will have) will have a perfected security interest in the Collateral
to the extent that a security interest in the Collateral can be perfected by such filing; (c) all Accounts Receivable (as defined
in Exhibit A) are genuine and enforceable against the party obligated to pay the same; (d) Borrower has full power
and authority to enter into the transactions provided for in this Agreement and the Note; (e) this Agreement and the Note, when
executed and delivered by Borrower, will constitute the legal, valid and binding obligations of Borrower enforceable in accordance
with their terms; (t) the execution and delivery by Borrower of this Agreement and the Note and the performance and consummation
of the transactions contemplated hereby and thereby do not and will not violate Borrower’s Certificate of Incorporation or Bylaws
or any material judgment, order, writ, decree, statute, rule or regulation applicable to Borrower (g) there does not exist any
default or violation by Borrower of or under any of the terms, conditions or obligations of (i) any indenture, mortgage, deed
of trust, franchise, permit, contract, agreement, or other instrument to which Borrower is a party or by which Borrower is bound,
or (ii) any law, ordinance, regulation, ruling, order, injunction, decree, condition or other requirement applicable to or imposed
upon Borrower by any law, the action of any court or any governmental authority or agency; and the execution, delivery and performance
of this Agreement will not result in any such default or violation; (h) there is no action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand pending or, to the knowledge of Borrower, threatened which adversely affects Borrower’ s business
or financial condition and there is no basis known to Borrower for any action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand which could result in the same; and (i) this Agreement and the Note do not contain any untrue statement
of material fact or omit to state a material fact necessary in order to make the statements contained in this Agreement and the
Note not misleading.


 






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5.
Events of Default. For purposes of this Agreement, the term “Event of Default” shall mean and refer to any of
the following:


 


		a.	Failure
of Borrower to perform or observe any covenant set forth in this Agreement, or to perform or observe any other term, condition,
covenant, warranty, agreement or other provision contained in this Agreement, where such failure continues for fifteen (15) days
after receipt of written notice from Lender specifying such failure;



 


		b.	Any
representation or warranty made or furnished by Borrower in writing in connection with this Agreement and the Note or any statement
or representation made in any certificate, report or opinion delivered pursuant to this Agreement or in connection with this Agreement
is false, incorrect or incomplete in any material respect at the time it is furnished; or



 


		c.	Occurrence
of any other Event of Default as defined in the Note.



 


6.
Remedies. Upon the occurrence and during the continuance of an Event of Default (subject to the notice and cure provisions
provided for herein, if any), each Secured Party shall have the rights of a secured creditor under the Uniform Commercial Code
of the applicable jurisdiction, all rights granted by the Note, this Security Agreement and by law, including the right to require
Borrower to assemble the Collateral and make it available to the Secured Parties at a place to be designated by Borrower. The
rights and remedies provided in this Agreement and the Note are cumulative and may be exercised independently or concurrently,
and are not exclusive of any other right or remedy provided at law or in equity. No failure to exercise or delay by the Secured
Parties in exercising any right or remedy under this Agreement or the Note shall impair or prohibit the exercise of any such rights
or remedies in the future or be deemed to constitute a waiver or limitation of any such right or remedy or acquiescence therein.
Every right and remedy granted to the Secured Parties under this Agreement and the Note or by law or in equity may be exercised
by any Secured Party at any time and from time to time.


 


7.
Further Assurances. Borrower agrees that, from time to time, at its own expense, it will:


 


		a.	Protect
and defend the Collateral against all claims and demands of all persons at any time claiming the same or any interest therein,
and preserve and protect Secured Party’s security interest in the Collateral.



 


		b.	Promptly
execute and deliver to Secured Parties all instruments and documents, and take all further action necessary or desirable, as any
Secured Party may reasonably request to (i) continue, perfect, or protect any security interest granted or purported to be granted
hereby, and (ii) enable a Secured Party to exercise and enforce any of Secured Party’s rights and remedies hereunder with
respect to any Collateral.



 






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		c.	Permit
a Secured Party’s representatives to inspect and make copies of all books and records relating to the Collateral, wherever
such books and records are located, and to conduct an audit relating to the Collateral at any reasonable time or times.



 


8.
Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed telex, e-mail or facsimile if sent during normal business
hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be sent as follows:


 


If
to the Borrower, to:


 


Bioxytran,
Inc.


233
Needham Street, Suite 300


Newton,
MA 02464


Attn:
David Platt


E-mail:
info@us-rem.com


 


If
to the Secured Party:


 


Auctus
Fund, LLC


545
Boylston Street, 2nd Floor


Boston,
MA 02116


Attn:
Lou Posner


Facsimile:
(617) 532-6420


 


or
to such other address or telecopy number as the party to whom notice is to be given may have furnished to the other party in writing
in accordance herewith.


 


10.
Amendments and Waivers. No modification, amendment or waiver of any provision of, or consent required by, this Agreement,
nor any consent to any departure herefrom, shall be effective unless it is in writing and signed by each of the parties hereto.
Such modification, amendment, waiver or consent shall be effective only in the specific instance and for the purpose for which
given.


 


11.
Exclusivity and Waiver of Rights. No failure to exercise and no delay in exercising on the part of any party, any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or
privilege preclude any other right, power or privilege. The rights and remedies herein provided are cumulative and are not exclusive
of any other rights or remedies provided by law.


 


12.
Invalidity. Any term or provision of this Agreement shall be ineffective to the extent it is declared invalid or unenforceable,
without rendering invalid or enforceable the remaining terms and provisions of this Agreement.


 






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13.
Headings. Headings used in this Agreement are inserted for convenience only and shall not affect the meaning of any term
or provision of this Agreement.


 


14.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original instrument,
but all of which collectively shall constitute one and the same agreement.


 


15.
Assignment. This Agreement and the rights and obligations hereunder shall not be assignable or transferable by the any
of the parties without the prior written consent of all Secured Parties, at their sole and absolute discretion.


 


16.
Survival. Unless otherwise expressly provided herein, all representations warranties, agreements and covenants contained
in this Agreement shall survive the execution hereof and shall remain in full force and effect until the earliest to occur of
(a) the payment in full of the Note, and (b) the conversion of the principal and accrued and unpaid interest and all other amounts
owing under the Note into common stock of Borrower.


 


17.
Miscellaneous. This Agreement shall inure to the benefit of each of the parties hereto and all their respective successors
and permitted assigns. Nothing in this Agreement is intended or shall be construed to give to any other person, firm or corporation
any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained.


 


18.
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEVADA (WITHOUT
GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAWS PROVISIONS).


 


19.
CONSENT TO JURISDICTION. Any action brought by either party against the other
arising out of or related to this agreement shall be commenced only in the state or federal courts of general jurisdiction located
in the Commonwealth of Massachusetts, except that all such disputes between the parties shall be subject to alternative dispute
resolution through binding arbitration at the Holder’s sole discretion and election (regardless of which party initiates
the legal proceedings). 


 


20.
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION
WITH THISAGREEMENT. EACH OF THE PARTIES HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND EACH OF THE OTHER PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 20.


 






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21.
Attorneys’ Fees. In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing
party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of
such prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses
of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals.


 


22.
Entire Agreement. This Agreement contains the entire agreement among the parties with respect to the transactions contemplated
by this Agreement and supersedes all prior agreements or understandings among the parties with respect to the subject matter hereof.


 


[SIGNATURE
PAGE(S) FOLLOW]


 






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IN
WITNESS WHEREOF, this Security Agreement has been executed as of the date first set written above.


 


Bioxytran,
Inc.


 


	By:	/s/
David Platt	 
	Name:	David
    Platt	 
	Title:	Chief
    Executive Officer	 


 


AUCTUS
FUND, LLC


 


	By:	/s/
Lou Posner	 
	Name:	Lou
    Posner	 
	Title:	Managing
    Member	 


 




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EXHIBIT
A


 


COLLATERAL


 


Borrower
hereby grants, pledges, and assigns for the benefit of each Secured Party, and there is hereby created in favor of the Secured
Parties, a security interest in and to all of Borrower’s right, title, and interest in, to, and under all assets and all personal
property of Borrower and its subsidiaries, whether now or hereafter existing, or now owned or hereafter acquired, including but
not limited to the following (collectively, “Collateral”):


 


1.
All accounts, chattel paper, contracts, contract rights, accounts receivable, tax refunds, Note receivable, documents, other choses
in action and general intangibles, including, but not limited to, proceeds of inventory and returned goods and proceeds from the
sale of goods and services, and all rights, liens, securities, guaranties, remedies and privileges related thereto, including
the right of stoppage in transit and rights and property of any kind forming the subject matter of any of the foregoing (“Accounts
Receivable”);


 


2.
All time, savings, demand, certificate of deposit or other accounts in the name of Borrower or in which Borrower has any right,
title or interest, including but not limited to all sums now or at any time hereafter on deposit, and any renewals, extensions
or replacements of and all other property which may from time to time be acquired directly or indirectly using the proceeds of
any of the foregoing;


 


3.
All inventory and equipment of every type or description wherever located, including, but not limited to all raw materials, parts,
containers, work in process, finished goods, goods in transit, wares, merchandise furniture, fixtures, hardware, machinery, tools,
parts, supplies, automobiles, trucks, other intangible property of whatever kind and wherever located associated with the Borrower’s
business, tools and goods returned for credit, repossessed, reclaimed or otherwise reacquired by Borrower;


 


4.
All documents of title and other property from time to time received, receivable or otherwise distributed in respect of, exchange
or substitution for or addition to any of the foregoing including, but not limited to, any documents of title;


 


5.
All know-how, information, permits, patents, copyrights, goodwill, trademarks, trade names, licenses and approvals held by Borrower,
including all other intangible property of Borrower;


 


6.
All assets of any type or description that may at any time be assigned or delivered to or come into possession of Borrower for
any purpose for the account of Borrower or as to which Borrower may have any right, title, interest or power, and property in
the possession or custody of or in transit to anyone for the account of Borrower, as well as all proceeds and products thereof
and accessions and annexations thereto; and


 


7.
All proceeds (including but not limited to insurance proceeds) and products of and accessions and annexations to any of the foregoing.