Document:

Supplemental
Agreement dated as of April 17, 2015 among Steve Saleen (“SS”), Saleen Automotive, Inc (“SAI”), WM
Industries Corp. (f/k/a WM GreenTech Automotive,Corp.) (WMIC”), and GreenTech Automotive, Inc. (“GTA”).

 

RECITALS:

 

		●	Concurrently
                                         herewith, GTA is entering into a Securities Purchase Agreement (the “Securities
                                         Purchase Agreement”) and related documents dated on or about the date hereof pursuant
                                         to which GTA is acquiring $500,000 principal amount of 10.0% First Lien Convertible Notes
                                         (“Notes”).

 

		●	As
                                         further consideration for the purchase of the Notes and the mutual undertakings of the
                                         parties in connection with the transactions contemplated by the Securities Purchase Agreement
                                         and related documents the parties agree as follows:

 

		1.	SS
                                         and SAI (as successor to W270, Inc.) agree Section 3.5 of the Assignment and License
                                         Agreement dated May 23, 2013 between W270, Inc. and SS, hereby is deleted and of no further
                                         force or effect.

 

		2.	SAI
                                         and WMIC agree that Section 3 “Exclusivity” of the parties’ Joint Branding,
                                         Marketing, and Distribution Agreement is hereby amended (i) by deleting in the first
                                         sentence the clause “in the first two-year period beginning February 1, 2014”
                                         and inserting in lieu thereof the clause “for the period until February 1, 2018”,
                                         and (ii) by deleting in the second sentence the clause “Starting year three (3)”,
                                         and inserting in lieu thereof the clause, “For each one year period commencing
                                         February 1, 2018”.

 

		3.	SAI
                                         and GTA agree that the proceeds of the $500,000 issuance of Notes shall be disbursed
                                         promptly over the next three weeks directly for the acquisition of vehicle chassis, vehicle
                                         parts and to pay rent obligations, the timing and recipients of which shall be specifically
                                         discussed and mutually agreed in the reasonable discretion of the parties in connection
                                         with each funding.

 

IN WITNESS WHEREOF, the undersigned parties have entered
into this Supplemental Agreement as of the date and year first above written.

 

	 	SALEEN AUTOMOTIVE, INC.	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	WM INDUSTRIES CORP.	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	GREENTECH AUTOMOTIVE, INC.	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 
	 	STEVE SALEENSECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of April 17, 2015(this “Agreement”), is among Saleen Automotive, Inc., a Nevada
corporation (the “Company”), all of the Subsidiaries of the Company (such Subsidiaries, the “Guarantors”,
and together with the Company, the “Debtors”), and the holders, each signatory hereto, of the Company’s
10.0% First Lien Convertible Notes issued or to be issued in the original aggregate principal amount of up to

$500,000
(the “Notes”) pursuant to the Purchase Agreement (as defined below) (collectively, together with their endorsees,
transferees and assigns, the “Secured Parties”, and each individually, a “Secured Party”).

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to that certain Securities Purchase Agreement dated on or about April 17, 2015 between the Company and the Secured Parties
(the “Purchase Agreement”), the Secured Parties have severally agreed to extend the loans to the Company evidenced
by the Notes;

 

WHEREAS,
pursuant to that certain Subsidiary Guarantee, dated as of the date hereof (“Guarantee”), the Guarantors have
jointly and severally agreed to guarantee and act as surety for payment of such Notes;

 

WHEREAS,
in order to induce the Secured Parties to extend the loans evidenced by the Notes, each Debtor has agreed to execute and deliver
to the Secured Parties this Agreement and to grant 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 Notes and
other Transaction Documents and the Guarantors’ obligations under the Guarantee; and

 

WHEREAS,
the rights of each Secured Party hereunder shall be pari passu with each other Secured Party and enforced through the agent
for the Secured Parties appointed pursuant to Section 18 hereunder.

 

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.

 

    	 

    	 

    

 

(a)
“Collateral” means the collateral in which the Secured Parties are granted a security interest by this Agreement
and which shall include the following 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 interest 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, trademarks, service marks, trade styles, trade names, patents, patent applications, copyrights, 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);

 

(vii)
All investment property;

 

(viii)
All supporting obligations;

 

(ix)
All files, records, books of account, business papers, and computer programs, including without limitation and all files, records,
books, ledger cards, correspondence, computer programs, tapes, disks, digital storage media and related data processing software
that at any time evidence or contain information relating to any of the Collateral set forth in clauses (i)-(viii) above or are
otherwise necessary or helpful in the collection thereof or realization thereupon; and 

 

    	 

    	 

    

 

(x)
the products, profits and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above, and all payments under
insurance (whether or not the Secured Party is the loss payee thereof) or under any indemnity, warranty or guaranty, payable by
reason or loss or damage to, or otherwise with respect to, any 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, 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.

 

(b)
“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, company names, business names, fictitious
business 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.

 

    	 

    	 

    

 

(c)
“Majority in Interest” means, at any time of determination, at least a majority in interest (based on then-outstanding
principal amounts of Notes at the time of such determination) of the Secured Parties.

 

(d)
“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 (as that term is defined below) may reasonably request.

 

(e)
“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 either (i) under this Agreement, the Notes, the Guarantee, the other Transaction Documents and any other instruments,
agreements or other documents executed and/or delivered in connection herewith or therewith, or (ii) related to any other liabilities
or obligations associated with any indebtedness for borrowed money from any Secured Party to any Debtor, 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 Notes
and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Debtors
from time to time under or in connection with this Agreement, the Notes, the Guarantee, the other Transaction Documents 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.

 

(f)
“Organizational Documents” means with respect to any Debtor, the documents by which such Debtor was organized
(such as articles 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).

 

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

 

(h)
“Transaction Documents” shall have the meaning ascribed to such term in the Purchase Agreement. 

 

    	 

    	 

    

 

(i)
“UCC” means the Uniform Commercial Code of the State of California 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
Notes 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 Secured Parties, subject to Permitted
Liens (as defined in the Notes), a first priority 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”).

 

3.
Delivery of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, 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 all Necessary Endorsements, and (b) any and all certificates and other instruments or documents representing any
of the other Collateral, in each case, together with all Necessary Endorsements. The Debtors are, contemporaneously with the execution
hereof, delivering to the Agent, or have previously delivered to the 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 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 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.

 

(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. 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 is in the possession of any consignee, bailee, warehouseman,
agent or processor.

 

    	 

    	 

    

 

(c)
Except for Permitted Liens and except as set forth on Schedule B attached hereto, the Debtors are the sole owner of the
Collateral, 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 B attached hereto, there is not on file in any governmental or
regulatory authority, agency or recording office an effective financing statement, security agreement, license 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 B attached hereto and except pursuant to this
Agreement, as long as this Agreement shall be in effect, the Debtors shall not execute and shall not knowingly permit to be on
file in any such office or agency any other financing statement or other document or instrument (except to the extent filed or
recorded in favor of the Secured Parties pursuant to the terms of this Agreement).

 

(d)
Except as set forth on Schedule 4(d) hereto, no written claim has been received that any Collateral or Debtor’s use of any
Collateral violates the rights of any third party. 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 there is no proceeding involving said rights pending or, to the best 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 and may not relocate such books of
account and records or tangible Collateral unless it delivers to the Secured Parties at least 30 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) evidence
that appropriate financing statements under the UCC and other necessary documents have been filed and recorded and other steps
have been taken to perfect the Security Interests to create in favor of the Secured Parties a valid, perfected and continuing
second priority lien in all the Collateral.

 

(f)
This Agreement creates in favor 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 execution and delivery of this Agreement, 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 below) with the United States Copyright Office or the United States Patent and Trademark
Office with respect to copyrights, patents and trademarks (and applications relating each of the foregoing) as described in paragraph
4(mm), the execution 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 further action is necessary to create, perfect or protect the security interests created hereunder. Without limiting
the generality of the foregoing, except for the execution and delivery of this Agreement by all (100%) of the Secured Parties,
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, except as set forth on Schedule 4(f), 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 that the Secured Parties shall have a second priority security interest with respect to the Collateral).

 

    	 

    	 

    

  

(g)
Each Debtor hereby authorizes the Agent to file one or more financing statements under the UCC, with respect to the Security Interests,
with the proper filing and recording agencies in any jurisdiction deemed proper by it.

 

(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 agreement, credit facility, debt or other instrument (evidencing
any Debtor's debt or otherwise) or other understanding to which any Debtor is a party or by which any property or asset of any
Debtor is bound or affected. 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 the Company. 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.

 

(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.

 

(k)
Except for Permitted Liens, until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14
hereof, each Debtor shall at all times maintain in favor of the Secured Parties the liens and Security Interests provided for
hereunder as valid and perfected first priority liens and security interests in all the Collateral. 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 Secured Parties. At the request of the Agent, each Debtor will sign and deliver to the Agent on behalf
of the Secured Parties at any time or from time to time one or more financing statements pursuant to the UCC in form reasonably
satisfactory to the Agent and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the
Agent to be, necessary or desirable to effect the rights and obligations provided for herein. 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, 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)
Except as listed on Schedule I, no Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose
of any of the Collateral (except for licenses granted by a Debtor in its ordinary course of business and sales of inventory and
other unused or outdated assets by a Debtor in its ordinary course of business) without the prior written consent of a Majority
in Interest.

 

(m)
Each Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order
and shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

(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 but in any event sufficient
to cover the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide,
and the insurer issuing such policy to certify to the Agent, that (i) the Agent will be named as lender loss payee and additional
insured under each such insurance policy; (ii) 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 thirty (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 (iii) the Agent will have the right (but no obligation) at its election to remedy any default in
the payment of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default (as defined
in the Notes) exists, 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 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 promptly, but no later than ten (10) days after obtaining knowledge thereof, advise the Secured Parties, through
the Agent, in sufficient detail of any 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 Secured Parties’ 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 Secured Parties’ 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 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.

 

(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 rights,
claims, causes of action 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 any Collateral and of any other information received by such Debtor that may materially
affect the value of the Collateral, the Security Interests or the rights and remedies of 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 and will be accurate and complete in all material respects as of the date furnished.

 

(u)
The Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and
any rights and franchises material to its business.

 

(v)
No Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it
has one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least thirty (30) days
prior written notice to the Secured Parties of such change and, at the time of such written notification, such Debtor provides
any financing statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted
and evidenced by this Agreement.

 

(w)
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.

 

    	 

    	 

    

 

(x)
No Debtor may relocate its chief executive office to a new location without providing thirty (30) days’ prior written notification
thereof to the Secured Parties and so long as, at the time of such written notification, such Debtor provides any financing statements
or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(y)
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 organizational identification number
or, if any Debtor does not have one, states that one does not exist.

 

(z)
(i) The actual name of each Debtor is the name set forth in Schedule D attached hereto; (ii) no Debtor has any trade names
except as set forth on Schedule E attached hereto; (iii) 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 (5) years; and (iv) no entity has merged into any Debtor or
been acquired by any Debtor within the past five (5) years except as set forth on Schedule E.

 

(aa)
At any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the Security Interest created hereby, the applicable Debtor shall deliver
such Collateral to the Agent.

 

(bb)
Each Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of the 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
(or one that would confer “control” within the meaning of Article 8 of the UCC) with any other person or entity.

 

(cc)
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” within the meaning of Section 9-105 of the UCC (or successor section
thereto).

 

(dd)
If there is any investment property or deposit account included as Collateral that can be perfected by “control” through
an account control agreement, the applicable Debtor shall, promptly upon written request of the Agent following the occurrence
of an Event of Default, cause such an account control agreement, in form and substance in each case satisfactory to the Agent,
to be entered into and delivered to the Agent for the benefit of the Secured Parties.

 

(ee)
To the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall, promptly upon written request
of the Agent following the occurrence of an Event of Default, cause the issuer of each underlying letter of credit to consent
to an assignment of the proceeds thereof to the Secured Parties.

 

    	 

    	 

    

 

(ff)
To the extent that any Collateral is in the possession of any third party, 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.

 

(gg)
If any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly notify the Secured Parties
in a writing signed by such Debtor of the particulars thereof and grant to 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 reasonably
satisfactory to the Agent.

 

(hh)
Each Debtor shall immediately provide written notice to the Secured Parties 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 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.

 

(ii)
Each Debtor shall cause each subsidiary of such Debtor to immediately become a party hereto (an “Additional Debtor”),
by executing and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply
with the provisions hereof applicable to the Debtors. 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 authorizing
resolutions, good standing certificates, incumbency certificates, organizational documents, financing statements 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.

 

(jj)
Each Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Notes.

 

    	 

    	 

    

 

(kk)
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 the 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:

 

	(i)		it
                                         has registered the pledge on its books and records; and (ii) at any time directed by
                                         the 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 the Agent,
                                         will take such steps as may be necessary to effect the transfer, and will comply with
                                         all other instructions of the Agent regarding such Pledged Securities without the further
                                         consent of the applicable Debtor.

 

(ll)
In the event that, upon an occurrence of an Event of Default, the 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 the 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 commercially reasonable 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 the Agent and allow the Transferee or the Agent to continue the business
of the Debtors and their direct and indirect subsidiaries.

 

(mm)
Without limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) cause to be
registered at the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated
hereby with respect to all Intellectual Property registered at the United States Copyright Office or United States Patent and
Trademark Office to be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires (whether absolutely
or by license) or creates any additional material Intellectual Property.

 

(nn)
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 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 Secured Parties
to exercise and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes
of this Agreement.

 

(oo)
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. 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 and trademarks of the Debtors have been duly recorded at the United States Patent and Trademark Office and all material
copyrights of the Debtors have been duly recorded at the United States Copyright Office.

 

(pp)
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.

 

    	 

    	 

    

 

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 the 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”:

 

Notes;

 

(a)
The occurrence of an Event of Default (as defined in the Notes) under the

  

(b)
Any representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when
made;

 

(c)
The failure by any Debtor to observe or perform any of its obligations hereunder for five (5) business days after delivery to
such Debtor of notice of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be
cured within such time frame and such Debtor is using best efforts to cure same in a timely fashion; or

 

(d)
If any material provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity
or enforceability thereof shall be contested by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental
authority having jurisdiction over any Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor
shall deny that any Debtor has any material liability or obligation purported to be created under this Agreement.

 

7.
Duty to Hold in Trust.

 

(a)
Upon the occurrence and continuation of any Event of Default, each Debtor shall, upon receipt of any revenue, income, dividend,
interest or other sums subject to the Security Interests, whether payable pursuant to the Notes 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
Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Parties, pro- rata
in proportion to their respective then-currently outstanding principal amount of Notes for application to the satisfaction of
the Obligations.

 

    	 

    	 

    

  

(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 on behalf of and for the benefit of the Secured Parties; and (iii) deliver any and all certificates or
instruments evidencing the same to the 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 the Agent subject to
the terms of this Agreement as Collateral.

 

8.
Rights and Remedies Upon Default.

 

(a)
Upon the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Agent, shall have
the right to exercise all of the remedies conferred hereunder and under the Notes and other Transaction Documents, and the Secured
Parties, acting through 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 the 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, the 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 the Agent, to exercise
in such Agent’s discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, the Agent
shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as 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.

 

(iii)
The Agent 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.

 

    	 

    	 

    

 

(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 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 adversely to 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 the Agent’s right following an Event of Default to take immediate possession of the Collateral
and to exercise its rights and remedies with respect thereto.

 

(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, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to such Debtor) to use, license or sublicense
following an Event of Default, any Intellectual Property now owned or hereafter acquired by such Debtor, and wherever the same
may be located, 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.
Inter Secured Party Rights; Transaction/Applications of Proceeds.

 

(a)
All Obligations owed to the Secured Parties shall rank in the order of priority pari passu and pro-rata in
proportion to each Secured Party’s outstanding principal amount of Notes at any given time that a determination needs to
be made of pro-rata holdings. If an Event of Default occurs and any party hereto collects proceeds pursuant to its rights under
any Obligations, the Agent shall be immediately notified and such payment shall be shared with all of the other Secured Parties
as set forth above. Notwithstanding anything to the contrary contained in the Purchase Agreement or any document executed in connection
with the Obligations and irrespective of: (i) the time, order or method of attachment or perfection of the security interests
created in favor of Secured Parties; (ii) the time or order of filing or recording of financing statements or other documents
filed or recorded to perfect security interests in any Collateral; (iii) anything contained in any filing or agreement to which
any Secured Party now or hereafter may be a party; and (iv) the rules for determining perfection or priority under the Uniform
Commercial Code or any other law governing the relative priorities of secured creditors, each of the Secured Parties acknowledges
that (x) all other Secured Parties have a valid security interest in the Collateral and (y) the security interests of the Secured
Parties in any Collateral pursuant to any outstanding Obligations shall be pari passu with each other and enforced
pursuant to the terms of this Agreement through the Agent. Each Secured Party, severally and not jointly with the other Secured
Parties, shall indemnify, defend, and hold harmless the other Secured Parties against and in respect of any and all claims, demands,
losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties, and reasonable
professional and attorneys’ fees, including those arising from settlement negotiations, that the other Secured Parties shall
incur or suffer, which arise, result from, or relate to a breach of, or failure by such Secured Party to perform under this Agreement.

 

(b)
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, then to the reasonable attorneys’ fees and expenses incurred by the Agent in
enforcing the Secured Parties’ rights hereunder and in connection with collecting, storing and disposing of the Collateral,
then to satisfaction of the Obligations pro rata among the Secured Parties (based on then-outstanding principal amounts of Notes
at the time of any such determination), and then to the payment of any other amounts required by applicable law. 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 rate of twelve
percent (12%) per annum or the lesser amount permitted by applicable law (the “Default 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 the 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 the 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 the Agent in its attempt to satisfy any requirements under
the Securities Laws applicable to the sale of the Pledged Securities by the Agent.

 

    	 

    	 

    

 

11.
Costs and Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection
with any filing required hereunder, including, without limitation, any financing statements pursuant to the UCC, continuation
statements, partial releases and/or termination statements related thereto or any expenses of any searches reasonably required
by the Agent. The Debtors shall also 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 fees and expenses of its counsel
and of any experts and agents, which the Agent, for the benefit of the Secured Parties, may incur in connection with (a) the enforcement
of this Agreement, (b) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the
Collateral, or (c) the exercise or enforcement of any of the rights of the Secured Parties under the Notes. Until so paid, any
fees payable hereunder shall be added to the principal amount of the Notes and shall bear interest at the Default 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.

 

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 Notes, any other Transaction
Documents 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 Notes, any other Transaction Documents 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 its 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 and performed 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. 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, automatically and without any action on the
part of the Agent or Secured Parties, on the date on which all payments under the Notes have been indefeasibly paid or otherwise
discharged in full and all other Obligations have been paid or discharged; provided, however, that all indemnities of the parties
hereto 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. The Agent and Secured Parties shall, at Debtor’s
request and expense, take any and all action required to discharge any and all security interests and release to Debtor any and
all Collateral in the Agent’s or Secured Parties’ possession or control. The Secured Parties hereby agree that the
Debtor shall have the right, and the Debtor is hereby authorized, to take all necessary action to cause the termination and release
of all security interests granted hereunder upon termination of this Agreement, including the filing of one or more UCC termination
statements or amendments relating to the Collateral.

 

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) sign and endorse any financing statement pursuant
to the UCC or 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) pay or discharge
taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv)
demand, collect, receive, compromise, settle and sue for monies due in respect of the Collateral; (v) transfer any Intellectual
Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Agent, and at the
expense of the Debtors, at any time, or from time to time, execute and deliver any and all documents and instruments and 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, the Notes and other Transaction Documents 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.
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, each Secured Party 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 with the United States Patent and Trademark Office and the United States Copyright Office.

 

(b)
On a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper
filing and recording agencies in any jurisdiction, including without limitation the jurisdictions indicated on Schedule C
attached hereto, all such instruments, and 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.

 

(c)
Each Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact, with full authority in the place and
instead of such Debtor and in the name of such Debtor, from time to time in the Agent’s discretion, to take any action and
to execute any instrument which the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including
the filing, in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to any
of the Collateral without the signature of such Debtor where permitted by law, which financing statements may (but need not) describe
the Collateral as “all assets” or “all personal property” or words of like import, and ratifies all such
actions taken by the Agent. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement.

 

16.
Notices. All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the
Purchase Agreement.

 

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 W-Net Fund I, L.P. or its appointed agent to act as their agent (“Agent”)
for purposes of exercising any and all rights and remedies of the Secured Parties hereunder. Such appointment shall continue until
revoked in writing by a Majority in Interest, at which time a Majority in Interest shall appoint a new Agent. The Agent shall
have the rights, responsibilities and immunities set forth in Annex B hereto. The Debtors shall be entitled to rely, without
independent verification and irrespective of contrary instructions from any Secured Party, on any action or decision of the Agent
as the act or decision of the Secured Parties.

 

19.
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 Notes 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 Secured Parties with respect to the Collateral, whether established hereby or by the Notes
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 a Majority in Interest or, in the case of a waiver, by the party against whom enforcement of any such waived
provision is sought.

 

(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 (other than by merger). 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 Securities, provided such transferee agrees in writing to be bound, with respect
to the transferred Securities, 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)
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 California, without regard to the principles of conflicts
of law thereof. Each Debtor agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and the Notes (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 County of Los Angeles. Each Debtor hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the County of Los Angeles 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 or 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 this 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.
If any party shall commence a proceeding to enforce any provisions of this Agreement, then the prevailing party in such proceeding
shall be reimbursed by the other party for its reasonable attorney’s fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such proceeding.

 

(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 or e-mail transmission, such signature shall create a valid binding obligation of the party executing the
same (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature were the original
thereof.

 

(j)
All Debtors shall be 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 any violation of the terms or provisions of this Agreement or the agreements underlying the Obligations or the
negligence or willful misconduct of the Indemnitee. This indemnification provision is in addition to, and not in limitation of,
any other indemnification provision in the Notes, 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 the Agent or any Secured Party to liability as a partner or member in
or of any Debtor or any of its direct or indirect subsidiaries, nor shall the 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.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, each of the Grantors have caused this Security Agreement to be executed and delivered by its duly authorized
officer as of the date first set forth above.

 

	SALEEN AUTOMOTIVE, INC.	 
	By:		 
	 	Steve Saleen	 
	 	Chief Executive Officer	 

	 	Saleen Automotive, Inc.
	 	By:	
	 	 	Steve Saleen
	 	 	Chief Executive Officer

 

	 	SMS Signature Cars
	 	By:	
	 	 	Steve Saleen
	 	 	Chief Executive Officer
	 	 	 

 

ACCEPTED:

 

	GREENTECH AUTOMOTIVE, INC.	 
	 	 	 
	By:		 
	 	Gary Tang	 
	 	Executive Vice President - Finance	 

 

 

    	 

    	 

    

 

SCHEDULE
A

 

Principal
Place of Business of Debtors:

 

2735
Wardlow Road

Corona,
CA 92882

 

Locations
Where Collateral is Located or Stored:

 

2735
Wardlow Road

Corona,
CA 92882

 

SCHEDULE
B

Exceptions

 

UCC-1
Financing Statement regarding State tax lien filed by Employment Development Department on February 19, 2013 against SMS Signature
Cars.

 

UCC-1
Financing Statement regarding judgment lien filed by Chapman Ford, L.L.C. on August 13, 2012 against SMS Signature Cars.

 

UCC-1
Financing Statement regarding State tax lien filed by Employment Development Department on April 25, 2012 against SMS Signature
Cars.

 

UCC-1
Financing Statement filed by Strategic Funding Source, Inc. on May 2, 2011 against SMS Signature Cars.

 

UCC-1
Financing Statement filed by Pawnee Leasing Corporation on June 24, 2009 against SMS Signature Cars.

 

 

SCHEDULE
C

Recording
Jurisdictions

 

California
Florida

 

    	 

    	 

    

 

SCHEDULE
D

Legal
Names, Organizational Jurisdictions and Identification Numbers

 

	Name	 	Jurisdiction	 	ID
    Number	 	Address
	 	 	 	 	 	 	 
	

        

        Saleen
        Automotive, Inc.
	 	

        

        Nevada
	 	

        

        NV20111422852
	 	

        

        2735
        Wardlow Road

	 	 	 	 	 	 	Corona, CA 92882
	 	 	 	 	 	 	 
	Saleen Automotive,
    Inc.	 	Florida	 	P11000065963	 	2735
                                         Wardlow Road

        Corona,
        CA 92882

	 	 	 	 	 	 	 
	SMS Signature
    Cars	 	California	 	C3155834	 	2735
                                         Wardlow Road

        Corona,
        CA 92882

 

SCHEDULE
E

Names;
Mergers and Acquisitions

 

On
June 26, 2013, Saleen California Merger Corporation was merged with and into SMS Signature Cars, and Saleen Florida Merger Corporation
was merged with and into Saleen Automotive, Inc.

 

    	 

    	 

    

 

SCHEDULE
F

Intellectual
Property

 

	Mark	 	No.	 	Owner
	 	 	 	 	 
	

        Registered
        Trademarks

	 
	Saleen	 	2407911	 	Steve Saleen
	[Stylized "S"]	 	2007476	 	Steve Saleen
	Saleen	 	2005539	 	Steve Saleen
	Speedlab	 	3593081	 	Steve Saleen
	Supershaker	 	3706317	 	Steve Saleen
	 

        

        Trademarks
        - Applications Pending

	 
	SMS Supercars	 	85551574	 	SMS Signature
    Cars, Inc.
	SMS Supercars	 	85551743	 	SMS Signature
    Cars, Inc.
	SMS Supercars	 	85551715	 	SMS Signature
    Cars, Inc.
	Power in the Hands
    of a Few	 	85551696	 	Saleen Automotive,
    Inc.
	Power in the Hands
    of a Few	 	85551645	 	Saleen Automotive,
    Inc.
	 

        

        Trademarks
        - Common Law

	 
	Saleen Performance
    Vehicles	 	n/a	 	SMS Signature
    Cars, Inc.
	The Science of
    Speed	 	n/a	 	SMS Signature
    Cars, Inc.
	Speed Science
    Style	 	n/a	 	SMS Signature
    Cars, Inc.
	SMS Limited	 	n/a	 	SMS Signature
    Cars, Inc.
	Racecraft	 	n/a	 	SMS Signature
    Cars, Inc.
	Powerflash	 	n/a	 	SMS Signature
    Cars, Inc.

 

    	 

    	 

    

 

	No.	 	Description	 	Owner
	 	 	 	 	 
	

        Patents
        - Issued

	 
	D399,465	 	Side skirt for
    customized automobile body	 	Steve Saleen
	D418,468	 	Vehicle sideskirt
    set	 	Steve Saleen,
    Phil Frank
	D437,271	 	Mustang car brake
    and/or clutch pedal	 	Saleen Inc.*
	D443,570	 	Mustang car brake/clutch
    pedal	 	Saleen Inc.*
	D444,114	 	Pair of car pillar
    inserts	 	Saleen Inc.*
	D444,436	 	Vehicle brake
    pedal	 	Saleen Inc.*
	D444,435	 	Set of pedals
    for vehicle	 	Saleen Inc.*
	D447,102	 	Vehicle gas pedal	 	Saleen Inc.*
	D472,861	 	Automobile side
    skirt	 	Saleen Inc.*
	D472,855	 	Automobile front
    bumper	 	Saleen Inc.*
	D473,831	 	Automobile wing	 	Saleen Inc.*
	D476,605	 	Automobile rear
    bumper	 	Saleen Inc.*
	D482,995	 	Automobile flares	 	Saleen Inc.*
	D483,312	 	Automobile front
    flares	 	Saleen Inc.*
	7,597,088	 	Apparatus for
    boosting engine performance	 	MJ Acquisitions*
	 	 	 	 	 
	

        Patents
        - Applications Pending

	 
	463864	 	Transparent Vehicle
    Roof	 	Saleen Inc.*
	384838	 	Intercooler cartridge
    assembly	 	SMS Signature
    Cars, Inc.

 

Domains

 

saleen.com

 

Licenses

 

February
15, 2012 License Agreement between Steve Saleen and Roadwire, LLC (for the manufacture of Saleen seats)

 

February
7, 2011 License Agreement between Steve Saleen and Molly Saleen (for t-shirts and hats)

 

    	 

    	 

    

 

SCHEDULE
G

Government
Account Debtors

 

None.

 

SCHEDULE
H

Pledged
Securities

 

	SMS
    Signature Cars	 	100
    shares of Common Stock
	Saleen Automotive,
    Inc.	 	100 shares of
    Common Stock

 

SCHEDULE
I

Permitted
Licenses and Dispositions

 

None.

 

    	 

    	 

    

 

ANNEX
A

to

SECURITY
AGREEMENT

 

FORM
OF ADDITIONAL DEBTOR JOINDER

 

Security
Agreement dated as of June 26, 2013 made by

Saleen
Automotive, 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 (or the
Agent on their behalf), the undersigned shall (a) be an Additional Debtor under the Security Agreement, (b) have all the rights
and obligations of the Debtors 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 OWNED BY IT 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 (or the Agent on their behalf), 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.

 

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:	 	 

 

    	 

    	 

    

 

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 (the “Agreement”)), by their
acceptance of the benefits of the Agreement, hereby designate W-Net Fund I, L.P. (“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
Notes) 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.
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 (a) 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 (b) 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 Notes or any of the other Transaction Documents.

 

    	 

    	 

    

 

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 Secured Parties holding a majority in principal
amount of Notes (based on then-outstanding principal amounts of Notes at the time of any such determination); 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 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.

 

    	 

    	 

    

 

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 Notes, 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 thirty (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 thirty (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 thirty (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 Debtors on demand.

 

(d)
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.

 

8.
Rights with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (a) that
it shall not, and shall not attempt to, exerciseany rights with respect to its security interest in the Collateral, whether pursuant
to any other agreement or otherwise (other than pursuant to this Agreement), 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 any such action arising from
the breach of this Agreement) and (b) that such Secured Party has no other rights with respect to the

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