Document:

Exhibit 10.3

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT,
dated as of September 1, 2015 (as amended, restated or modified from time, this “Security Agreement”),
is executed by, between and among by, between and among INERGETICS, INC., a corporation incorporated under the laws of the
State of Delaware (the “Grantor”), and _________ (“_____”),
_____ (“_____,” and together with _____, collectively, the “Contractors”) and _____ (“_____”
and together with the Contractors, collectively, the “Secured Parties”).

 

WITNESSETH:

 

WHEREAS, the
Contractors have made or will make loans, and/or advances (the “Contractor Loans”), to the Grantor to,
among other items, enable the Grantor to have its products manufactured, packaged and shipped to customers pursuant to a Master
Purchase Order Assignment Agreement dated as of September 1, 2015, by and between the Contractors and the Grantor (as amended,
supplemented, renewed, modified and/or otherwise changed from time to time, the “P.O. Agreement,” and,
together with all other related documents including, but not limited to, this Security Agreement, any U.C.C. 1 Financing Statements
and/or other documents evidencing and/or perfecting liens created by this Security Agreement and other documents evidencing any
such liens, used to establish a lien or security interest in the assets of the Grantor, all Distributor’s Notes, Exchange
Notes, Prior Notes and all modifications, exhibits, amendments, supplements, annexes of related items, collectively, and including
any and all instruments evidencing the Contractor Loans and all exhibits, schedules, annexes, supplements, modifications and/or
amendments to any and/or all of such documents, all as amended, supplemented, modified and/or otherwise changed, from time to time,
collectively, the “P.O. Transaction Documents”), which aggregate principal amount of Contractor Loans
under the P.O. Agreement cannot at any time exceed $1,000,000 aggregate principal amount; and

 

WHEREAS, the
Contractors have previously made $395,000 aggregate principal amount of loans to the Grantor (the “Prior Loans”)
as set forth on Schedule I, which Prior Loans are evidenced by certain documents and/or instruments and all other
related documents including (to the extent they exist), but not limited to, any security agreements securing any collateral for
such Prior Loans and any U.C.C. 1 Financing Statements and/or other documents evidencing and/or perfecting liens created by
the security agreement and other documents evidencing any such liens or used to establish a lien or security interest in the assets
of the Grantor, (all such documents including, but not limited to, all exhibits, schedules, annexes, supplements and/or amendments
to any of such documents, all as amended, supplemented, modified and/or otherwise changed, collectively, the “Prior
Loan Documents”), which (i) Prior Loans with all accrued but unpaid interest, pursuant to the P.O. Agreement, and
(ii) a 12% $52,500 aggregate principal amount Convertible Debenture; Issue Date June 2015; issued to _____, as amended, supplemented
and/or modified from time to time, will be converted into Contractor Loans and be evidenced by “Exchange Notes”
and in the future the Contactors may make other loans and/or advances to the Grantor outside of the P.O. Agreement; and

 

WHEREAS, _____previously
made (and in the future may make additional) loans to the Grantor (the “Other Loans”) as set forth on
Schedule II hereto, which Other Loans are (and in the future may be) evidenced by notes, debentures and/or other
instruments (all such notes, debentures and/or instruments together with such other documents, agreements and other items related
to the Other Loans including, but not limited to, this Security Agreement and any U.C.C. 1 Financing Statements and/or other
documents evidencing liens created by the security agreement and other documents evidencing any such liens or used to establish
a lien or security interest in the assets of the Grantor, and all exhibits, schedules, annexes, supplements and/or amendments to
any of such documents, all as amended, supplemented, modified and/or otherwise changed, collectively, the “Other Loan
Documents”); and

 

     

     

    

  

WHEREAS, the
Secured Parties, the Grantor and certain other debtholders of the Grantor (the “Subordinating Creditors”)
have entered into a Subordination Agreement dated as of September 1, 2015 (the “Subordination Agreement”),
pursuant to which such Subordinating Creditors agreed to, among other items, subordinate: (i) all of their respective debts and
obligations in the Grantor to the Secured Parties to the extent provided therein; and (ii) each Subordinating Creditor’s
security interests of any nature or kind to the Secured Parties’ property and assets to the Loans (as hereinafter defined)
and to the Collateral (as defined below); and

 

WHEREAS, the
Contactor Loans, Exchange Notes, Prior Loans, Distributor Notes, Other Loans, and all other loans, obligations, payments and/or
advances of any nature or kind of Grantor to the Secured Parties including, but not limited to, under and/or pursuant to (a) the
P.O. Agreement, (including, but not limited to, the Contractor Expenses, the Commitment Fee, and all Contractors Deal Fees), (b)
this Security Agreement, (c) all other P.O. Transaction Documents, (d) all Other Loan Documents, (e) all Other Loans, (f) all
Prior Loans and (g) all Prior Loan Documents (the items set forth in (a) - (g), are each a “Loan Document”,
and collectively, the “Loan Documents”), whether now existing or hereafter arising, together with all
accrued and unpaid interest thereon, all other fees and charges due, owing or payable by the Grantor to one or more of the Secured
Parties together with all costs of collection with respect to any of the above (including, but not limited to, attorneys’
fees and court costs and expenses throughout all trial and appellate levels and all negotiations, mediations, arbitrations and
bankruptcy proceedings), and any and all other obligations of the Grantor to the Secured Parties whether now existing or arising
hereafter shall hereinafter collectively be referred to as the “Loans”; and

 

WHEREAS, in
order to induce the Secured Parties to make the Loans and enter into the P.O. Agreement, and with full knowledge that the Secured
Parties would not enter into the P.O. Agreement without this Security Agreement, the Grantor has agreed to execute and deliver
this Security Agreement to the Secured Parties, for the benefit of the Secured Parties; and

 

NOW, THEREFORE,
in consideration of the credit extended now and in the future by Secured Parties to the Grantor and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Grantor and Secured Parties hereby agree as follows:

 

Section
1          DEFINITIONS.

 

1.1      Defined
Terms.  Capitalized terms used but not otherwise defined in this Security Agreement shall have the meanings ascribed
to them in the P.O. Agreement.  For the purposes of this Security Agreement, the following capitalized words and phrases
shall have the meanings set forth below.

 

“Affiliate” shall
mean any Person which, directly or indirectly, owns or controls, on an aggregate basis, at least a five percent (5%) interest in
any other Person, or which is controlled by or is under common control with any other Person.

 

“Capital Securities”
shall mean, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether
voting or non-voting) of such Person’s capital, whether now outstanding or issued or acquired after the date hereof, including
common shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests
in a partnership or any other equivalent of such ownership interest.

 

“Collateral”
shall have the meaning set forth in Section 2.1 hereof.

 

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“Control” or
“Controlling” shall mean the possession of the power to direct, or cause the direction of, the management
and policies of a Person by contract, voting of securities, or otherwise.

 

“Event of Default”
shall have the meaning as such term may be defined in any of the other Loan Documents.

 

“Liens” shall
mean a lien, mortgage, charge pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction,
clouds on title and/or encumbrances.

 

“GAAP” shall
mean generally accepted accounting principles in the United States of America as in effect from time to time.

 

“Material Adverse Effect”
shall mean a material adverse effect on (a) the business, assets, property, operations, or condition (financial or otherwise) of
Grantor, (b) the validity or enforceability of this Agreement or any of the other Loan Documents or (c) the rights or remedies
of the Secured Parties hereunder or thereunder.

 

“Obligations”
shall mean, now existing or in the future: (i) all Loans, principal, advances and other financial accommodations (whether primary,
contingent or otherwise), (ii) all interest accrued thereon (including interest which would be payable as post-petition in connection
with any bankruptcy or similar proceeding, whether or not permitted as a claim thereunder), (iii) any fees due to Secured Parties
under this Agreement or any other Loan Documents, (iv) any expenses incurred by the Secured Parties under this Agreement or the
other Loan Documents, (v) any and all other liabilities and obligations of each of the Grantor to the Secured Parties, and (vi)
the performance by the Grantor of all covenants, agreements and obligations of every nature and kind on the part of the Grantor
to be performed under this Agreement and any other Loan Documents.

 

“Obligor” shall
mean Grantor, or any other party liable with respect to the Obligations.

 

“Permitted Liens”
means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course of business by operation
of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation of law, such as materialmen’s
liens, mechanics’ liens and other similar liens, arising in the ordinary course of business with respect to a liability that
is not yet due or delinquent or that are being contested in good faith by appropriate proceedings, (iv) Liens resulting from this
Security Agreement and the Other Security Agreement

 

“Person” shall
mean any individual, partnership, limited liability company, limited liability partnership, corporation, trust, joint venture,
joint stock company, association, unincorporated organization, government or agency or political subdivision thereof, or other
entity.

 

“Taxes”
shall mean any and all present and future taxes, duties, levies, imposts, deductions, assessments, charges or withholdings, and
any and all liabilities (including interest and penalties and other additions to taxes) with respect to the foregoing.

 

“UCC” shall mean
the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that in the
event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect
to the Lenders’ liens on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction
other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as enacted and
in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority,
or remedies.

 

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“Unmatured Event of Default”
shall mean any event which, with the giving of notice, the passage of time or both, would constitute an Event of Default.

 

1.2        Other
Terms Defined in UCC.  All other capitalized words and phrases used herein and not otherwise specifically defined
herein, in the P.O. Agreement, or in the other Loan Documents shall have the respective meanings assigned to such terms in the
UCC, to the extent the same are used or defined therein.

 

1.3        Other
Interpretive Provisions.

 

(a)          The
meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.  Whenever the
context so requires, the neuter gender includes the masculine and feminine, the single number includes the plural, and vice versa,
and in particular the word “Grantor” shall be so construed.

 

(b)          Section
and Schedule references are to this Security Agreement unless otherwise specified.  The words “hereof”, “herein”
and “hereunder” and words of similar import when used in this Security Agreement shall refer to this Security Agreement
as a whole and not to any particular provision of this Security Agreement.

 

(c)          The
term “including” is not limiting, and means “including, without limitation”.

 

(d)          In
the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including”; the words “to” and “until” each mean “to but excluding”, and the word
“through” means “to and including”.

 

(e)          Unless
otherwise expressly provided herein, (i) references to agreements (including this Security Agreement and the other Loan Documents)
and other contractual instruments shall be deemed to include all subsequent amendments, restatements, supplements and other modifications
thereto, but only to the extent such amendments, restatements, supplements and other modifications are not prohibited by the terms
of any Loan Document, and (ii) references to any statute or regulation shall be construed as including all statutory and regulatory
provisions amending, replacing, supplementing or interpreting such statute or regulation.

 

(f)          To
the extent any of the provisions of the other Loan Documents are inconsistent with the terms of this Security Agreement, the provisions
of this Security Agreement shall govern.

 

(g)         This
Security Agreement and the other Loan Documents may use several different limitations, tests or measurements to regulate the same
or similar matters.  All such limitations, tests and measurements are cumulative and each shall be performed in accordance
with its terms.

 

Section
2         SECURITY FOR THE OBLIGATIONS.

 

2.1        Security
for Obligations.  As security for the payment and performance of the Obligations now existing or in the future, Grantor
does hereby pledge, assign, transfer, deliver and grant to the Secured Parties a continuing and unconditional first priority security
interest in and to any and all property of Grantor, of any kind or description, tangible or intangible, wheresoever located and
whether now existing or hereafter arising or acquired, including, but not limited to, the following (all of which property for
Grantor, along with the products and proceeds therefrom, are individually and collectively referred to as the “Collateral”):

 

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(a)          all
property of, or for the account of, Grantor now or hereafter coming into the possession, control or custody of, or in transit to,
the Secured Parties or any agent or bailee for the Secured Parties or any parent, affiliate or subsidiary of the Secured Parties
or any participant with the Secured Parties in the Obligations (whether for safekeeping, deposit, collection, custody, pledge,
transmission or otherwise), including all cash, earnings, dividends, interest, or other rights in connection therewith and the
products and proceeds therefrom, including the proceeds of insurance thereon; and

 

(b)          the
additional property of Grantor, whether now existing or hereafter arising or acquired, and wherever now or hereafter located, together
with all additions and accessions thereto, substitutions, betterments and replacements therefor, products and Proceeds therefrom,
and all of Grantor's books and records and recorded data relating thereto (regardless of the medium of recording or storage), together
with all of Grantor's right, title and interest in and to all computer software required to utilize, create, maintain and process
any such records or data on electronic media, identified and set forth as follows:

 

(i)       All
Accounts and all goods whose sale, lease or other disposition by Grantor has given rise to Accounts and have been returned to,
or repossessed or stopped in transit by, Grantor, or rejected or refused by any person who is or who may become obligated under,
with respect to, or on an Account (“Account Grantor”);

 

(ii)      All
Inventory, including raw materials, work-in-process and finished goods;

 

(iii)     All
goods (other than Inventory), including embedded software, Equipment, vehicles, furniture and Fixtures;

 

(iv)    All
Software and computer programs;

 

(v)     All
Securities, Investment Property, Financial Assets and Deposit Accounts;

 

(vi)    All
Chattel Paper, Electronic Chattel Paper, Instruments, Documents, Letter of Credit Rights, all proceeds of letters of credit, Health-Care-Insurance
Receivables, Supporting Obligations, notes secured by real estate, Commercial Tort Claims and General Intangibles, including Payment
Intangibles;

 

(vii)   All
real estate property owned by Grantor and the interest of Grantor in fixtures related to such real property; and

 

(viii)  All
Proceeds (whether Cash Proceeds or Noncash Proceeds) of the foregoing property, including all insurance policies and proceeds of
insurance payable by reason of loss or damage to the foregoing property, including unearned premiums, and of eminent domain or
condemnation awards.

 

2.2      Possession
and Transfer of Collateral.  Until an Event of Default has occurred and is continuing, Grantor shall be entitled
to possession and use of the Collateral (other than Instruments or Documents (including Tangible Chattel Paper and Investment Property
consisting of certificated securities) and other Collateral required to be delivered to the Secured Parties pursuant to this Section
2) .  The cancellation or surrender of any promissory note evidencing an Obligation, upon payment or otherwise, shall
not affect the right of the Secured Parties to retain the Collateral for any other of the Obligations except upon payment in full
of the Obligations.  Grantor shall not sell, assign (by operation of law or otherwise), license, lease or otherwise dispose
of, or grant any option with respect to any of the Collateral, except as permitted pursuant to the P.O. Agreement.

 

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2.3        Financing
Statements.  Grantor authorizes the Secured Parties to prepare and file such financing statements, amendments and
other documents and do such acts as the Secured Parties deem necessary in order to establish and maintain valid, attached and perfected,
first priority security interests in the Collateral in favor of the Secured Parties, free and clear of all Liens and claims and
rights of third parties whatsoever, except Permitted Liens.  Grantor hereby irrevocably authorizes the Secured Parties
at any time, and from time to time, to file in any jurisdiction any initial financing statements and amendments thereto that (a)
indicate the Collateral is comprised of all assets of Grantor (or words of similar effect), regardless of whether any particular
asset comprising a part of the Collateral falls within the scope of Article 9 of the UCC of the jurisdiction wherein such financing
statement or amendment is filed, and (b) contain any other information required by Section 5 of Article 9 of the UCC of the jurisdiction
wherein such financing statement or amendment is filed regarding the sufficiency or filing office acceptance of any financing statement
or amendment, including (i) whether Grantor is an organization, the type of organization, and (ii) in the case of a financing statement
filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of
the real property to which the Collateral relates.  Grantor agrees to furnish any such information to the Secured Parties
promptly upon request.  In addition, Grantor shall make appropriate entries on its books and records disclosing the security
interests of the Secured Parties in the Collateral.  Grantor hereby agrees that a photogenic or other reproduction
of this Security Agreement is sufficient for filing as a financing statement and Grantor authorizes the Secured Parties to file
this Security Agreement as a financing statement in any jurisdiction.

 

2.4        Preservation
of the Collateral.  The Secured Parties may, but are not required to, take such actions from time to time as the
Secured Parties reasonably deems appropriate to maintain or protect the Collateral. The Secured Parties shall have exercised reasonable
care in the custody and preservation of the Collateral if the Secured Parties take such action as Grantor shall reasonably request
in writing which is not inconsistent with the Secured Parties’ status as a secured party, but the failure of the Secured
Parties to comply with any such request shall not be deemed a failure to exercise reasonable care; provided, however
, the Secured Parties’ responsibility for the safekeeping of the Collateral shall (i) be deemed reasonable if such Collateral
is accorded treatment substantially equal to that which the Secured Parties accords its own property, and (ii) not extend to matters
beyond the control of the Secured Parties, including acts of God, war, insurrection, riot or governmental actions.  In
addition, any failure of the Secured Parties to preserve or protect any rights with respect to the Collateral against prior or
third parties, or to do any act with respect to preservation of the Collateral, not so requested by Grantor, shall not be deemed
a failure to exercise reasonable care in the custody or preservation of the Collateral.  Grantor shall have the sole
responsibility for taking such action as may be necessary, from time to time, to preserve all rights of Grantor and the Secured
Parties in the applicable Collateral against prior or third parties.  Without limiting the generality of the foregoing,
where Collateral consists in whole or in part of Capital Securities, Grantor represents to, and covenants with, the Secured Parties
that Grantor has made arrangements for keeping informed of changes or potential changes affecting the Capital Securities (including
rights to convert or subscribe, payment of dividends, reorganization or other exchanges, tender offers and voting rights), and
Grantor agrees that the Secured Parties shall have no responsibility or liability for informing Grantor of any such or other changes
or potential changes or for taking any action or omitting to take any action with respect thereto.

 

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2.5        Other
Actions as to any and all Collateral.  Grantor further agrees to take any other action reasonably requested by the
Secured Parties to ensure the attachment, perfection and first priority of, and the ability of the Secured Parties to enforce,
the security interest of the Secured Parties in any and all of the Collateral including (a) causing the Secured Parties’
name to be noted as secured party on any certificate of title for a titled good if such notation is a condition to attachment,
perfection or priority of, or ability of the Secured Parties to enforce, the security interest of the Secured Parties in such Collateral,
(b) if within the control of the Grantor, complying with, and, if not within the control of the Grantor, using best efforts to
comply with, any provision of any statute, regulation or treaty of the United States as to any material portion of the Collateral
as soon as possible but not more than forty-five (45) days after such request if compliance with such provision is a condition
to attachment, perfection or priority of, or ability of the Secured Parties to enforce, the security interest of the Secured Parties
in such Collateral, (c) using best efforts to obtain governmental and other third party consents and approvals, including without
limitation any consent of any licensor, lessor or other Person with authority or control over or an interest in any material portion
of the Collateral as soon as possible but not more than forty-five (45) days after such request, (d) using best efforts to obtain
waivers from mortgagees and landlords in form and substance reasonably satisfactory to the Secured Parties which affect any material
portion of the Collateral as soon as possible but not more than forty-five (45) days after such request, and (e) taking all actions
required by the UCC in effect from time to time or by other law, as applicable in any relevant UCC jurisdiction, or by other law
as applicable in any foreign jurisdiction.  Grantor further agrees to indemnify and hold the Secured Parties harmless
against claims of any Persons not a party to this Security Agreement concerning disputes arising over the Collateral except to
the extent resulting from the gross negligence or willful misconduct of the Secured Parties or its Affiliates.

 

2.6        Collateral
in the Possession of a Warehouseman or Bailee.  If any material portion of the Collateral at any time is in the possession
of a warehouseman or bailee, Grantor shall promptly notify the Secured Parties thereof, and, as soon as possible but not more than
forty-five (45) days later, shall use best efforts to obtain a Collateral Access Agreement in form and substance reasonably satisfactory
to the Secured Parties from such warehouseman or bailee.

 

2.7        Letter-of-Credit
Rights.  If Grantor at any time is a beneficiary under a letter of credit now or hereafter issued in favor of Grantor,
Grantor shall promptly notify the Secured Parties thereof and, at the request and option of the Secured Parties, Grantor shall,
pursuant to an agreement in form and substance reasonably satisfactory to the Secured Parties, either (i) arrange for the issuer
and any confirmer of such letter of credit to consent to an assignment to the Secured Parties of the proceeds of any drawing
under the letter of credit, or (ii) arrange for the Secured Parties to become the transferee beneficiary of the letter of credit,
with the Secured Parties agreeing, in each case, that the proceeds of any drawing under the letter to credit are to be applied
as provided in the P.O. Agreement.

 

2.8        Commercial
Tort Claims.  If Grantor shall at any time hold or acquire a Commercial Tort Claim, Grantor shall promptly notify
the Secured Parties in writing signed by Grantor of the details 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 Security Agreement, in each case in form and substance
reasonably satisfactory to the Secured Parties, and shall execute any amendments hereto deemed reasonably necessary by the Secured
Parties to perfect the security interest of the Secured Parties in such Commercial Tort Claim.

 

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2.9         Electronic
Chattel Paper and Transferable Records.  If Grantor at any time holds or acquires an interest in any electronic chattel
paper or any “transferable record”, as that term is defined in Section 201 of the federal Electronic Signatures in
Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
Grantor shall promptly notify the Secured Parties thereof and, at the request of the Secured Parties, shall take such action as
the Secured Parties may reasonably request to vest in the Secured Parties control under Section 9-105 of the UCC of such electronic
chattel paper or control under Section 201 of the federal Electronic Signatures in Global and National Commerce Act or, as the
case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable
record.  The Secured Parties agrees with Grantor that the Secured Parties will arrange, pursuant to procedures reasonably
satisfactory to the Secured Parties and so long as such procedures will not result in the Secured Parties loss of control, for
Grantor to make alterations to the electronic chattel paper or transferable record permitted under Section 9-105 of the UCC or,
as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform
Electronic Transactions Act for a party in control to make without loss of control.

 

Section
3         REPRESENTATIONS AND WARRANTIES.

 

Grantor makes the following representations
and warranties to the Secured Parties:

 

3.1        Grantor
Organization and Name. Grantor is a corporation duly incorporated, existing and in good standing under the laws of the State
of Delaware, with full and adequate power to carry on and conduct its business as presently conducted.  Grantor is duly
licensed or qualified in all foreign jurisdictions wherein the nature of its activities requires such qualification or licensing
except where the failure to be so licensed or qualified would not cause a Material Adverse Effect.  The exact legal name
of Grantor is as set forth in the first paragraph of this Security Agreement.

 

3.2         Authorization.  Grantor
has full right, power and authority to enter into this Security Agreement and to perform all of its duties and obligations under
this Security Agreement.  The execution and delivery of this Security Agreement and the other Loan Documents to which
Grantor is a party will not, nor will the observance or performance of any of the matters and things herein or therein set forth,
violate or contravene any provision of law or of the articles of incorporation or by-laws   of Grantor.  All
necessary and appropriate action has been taken on the part of Grantor to authorize the execution and delivery of this Security
Agreement.

 

3.3        Validity
and Binding Nature.  This Security Agreement is the legal, valid and binding obligation of Grantor, enforceable against
Grantor in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors'
rights generally and to general principles of equity.

 

3.4        Consent;
Absence of Breach.  The execution, delivery and performance of this Security Agreement and any other documents or
instruments to be executed and delivered by Grantor in connection herewith, do not and will not (a) require any consent, approval,
authorization, or filings with, notice to or other act by or in respect of, any governmental authority or any other Person (other
than filings or notices in connection with the Liens granted pursuant to his Security Agreement, or pursuant to federal or state
securities laws or other than any consent or approval which has been obtained and is in full force and effect); (b) conflict with
(i) any provision of law or any applicable regulation, order, writ, injunction or decree of any court or governmental authority
except for such conflicts which would not result in a Material Adverse Effect, (ii) the articles of incorporation, bylaws or other
organic document of Grantor, or (iii) any material agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding upon Grantor or any of its properties or assets except for such conflicts which would not result in a
Material Adverse Effect; or (c) require, or result in, the creation or imposition of any Lien on any asset of Grantor, other than
Liens in favor of the Secured Parties created pursuant to this Security Agreement and Permitted Liens.

 

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3.5        Ownership
of Collateral; Liens.  Grantor is the sole owner of all of the Collateral, free and clear of all Liens, charges and
claims (including infringement claims with respect to patents, trademarks, service marks, copyrights and the like), other than
Permitted Liens.

 

3.6        Adverse
Circumstances.  No condition, circumstance, event, agreement, document, instrument, restriction, litigation or proceeding
(or, to Grantor's knowledge, threatened litigation or proceeding or basis therefor) exists which (a) would have a Material Adverse
Effect upon Grantor, or (b) would constitute an Event of Default or an Unmatured Event of Default.

 

3.7        Security
Interest.  This Security Agreement creates a valid security interest in favor of the Secured Parties in the Collateral
and, when properly perfected by filing in the appropriate jurisdictions, or by possession or Control of such Collateral by the
Secured Parties or delivery of such Collateral to the Secured Parties, shall constitute a valid, perfected, first-priority security
interest in such Collateral.

 

3.8        Place
of Business.  The principal place of business and books and records of Grantor and the location of all Collateral,
is as set forth on Schedule 3.8 attached hereto and made a part hereof, and Grantor shall promptly notify the Secured
Parties of any change in such locations.  Grantor will not remove or permit the Collateral to be removed from such locations
without the prior written consent of the Secured Parties, except as permitted pursuant to the P.O. Agreement.

 

3.9        Complete
Information.  This Security Agreement and all financial statements, schedules, certificates, confirmations, agreements,
contracts, and other materials and information heretofore or contemporaneously herewith furnished in writing by Grantor to the
Secured Parties for purposes of, or in connection with, this Security Agreement and the transactions contemplated hereby is, and
all written information hereafter furnished by or on behalf of Grantor to the Secured Parties pursuant hereto or in connection
herewith will be, true and accurate in every material respect on the date as of which such information is dated or certified, and
none of such information is or will be incomplete by omitting to state any material fact necessary to make such information not
misleading in light of the circumstances under which made (it being recognized by the Secured Parties that any projections and
forecasts provided by Grantor are based on good faith estimates and assumptions believed by Grantor to be reasonable as of the
date of the applicable projections or assumptions and that actual results during the period or periods covered by any such projections
and forecasts may differ from projected or forecasted results).

 

Section
4         REMEDIES.

 

Upon the occurrence
and during the continuation of any Event of Default, the Secured Parties shall have all rights, powers and remedies set forth in
this Security Agreement or the other Loan Documents or in any other written agreement or instrument relating to any of the Obligations
or any security therefor, as a secured party under the UCC or as otherwise provided at law or in equity. Without limiting the generality
of the foregoing, the Secured Parties may, at its option upon the occurrence and during the continuation of any Event of Default,
declare its commitments to Grantor to be terminated and all Obligations to be immediately due and payable, or, if provided in the
Loan Documents, all commitments of the Secured Parties to Grantor shall immediately terminate and all Obligations shall be automatically
due and payable, all without demand, notice or further action of any kind required on the part of the Secured Parties, except as
required by the Loan Documents.  Grantor hereby waives any and all presentment, demand, notice of dishonor, protest,
and all other notices and demands, except as required by the Loan Documents, in connection with the enforcement of the Secured
Parties’ rights under the Loan Documents, and hereby consents to, and waives notice of release, with or without consideration,
of any Collateral, notwithstanding anything contained herein or in the Loan Documents to the contrary.  In addition to
the foregoing upon the occurrence and during the continuation of an Event of Default:

 

    	 	9	 

     

    

 

4.1        Possession
and Assembly of Collateral.  The Secured Parties may, without notice, demand or initiate legal process of any kind,
take possession of any or all of the Collateral (in addition to Collateral of which the Secured Parties already have possession),
wherever it may be found, and for that purpose may pursue the same wherever it may be found, and may at any time enter into any
of Grantor's premises where any of the Collateral may be or is supposed to be, and search for, take possession of, remove, keep
and store any of the Collateral until the same shall be sold or otherwise disposed of and the Secured Parties shall have the right
to store and conduct a sale of the same in any of Grantor's premises without cost to the Secured Parties.  At the Secured
Parties’ request, Grantor will, at Grantor’s sole expense, assemble the Collateral and make it available to the Secured
Parties at a place or places to be designated by the Secured Parties which is reasonably convenient to the Secured Parties and
Grantor.

 

4.2        Sale
of Collateral.  The Secured Parties may sell any or all of the Collateral at public or private sale, upon such terms
and conditions as the Secured Parties may deem proper, and the Secured Parties may purchase any or all of the Collateral at any
such sale.  Grantor acknowledges that the Secured Parties may be unable to effect a public sale of all or any portion
of the Collateral because of certain legal and/or practical restrictions and provisions which may be applicable to the Collateral
and, therefore, may be compelled to resort to one or more private sales to a restricted group of offerees and purchasers.  Grantor
consents to any such private sale so made even though at places and upon terms less favorable than if the Collateral were sold
at public sale.  The Secured Parties shall have no obligation to clean-up or otherwise prepare the Collateral for sale.  The
Secured Parties may apply the net proceeds, after deducting all costs, expenses, attorneys' and paralegals' fees incurred or paid
at any time in the collection, protection and sale of the Collateral and the Obligations, to the payment of the Obligations, returning
the excess proceeds, if any, to Grantor. Any notification of intended disposition of the Collateral required by law shall be conclusively
deemed reasonably and properly given if given by the Secured Parties at least ten (10) calendar days before the date of such disposition.  Grantor
hereby confirms, approves and ratifies all acts and deeds of the Secured Parties relating to the foregoing, and each part thereof,
and expressly waives any and all claims of any nature, kind or description which it has or may hereafter have against the Secured
Parties or its representatives, by reason of taking, selling or collecting any portion of the Collateral other than in the event
of any intentional misconduct or gross negligence.  Grantor consents to releases of the Collateral at any time (including
prior to default) and to sales of the Collateral in groups, parcels or portions, or as an entirety, as the Secured Parties shall
deem appropriate.  Grantor expressly absolves the Secured Parties from any loss or decline in market value of any Collateral
by reason of delay in the enforcement or assertion or non-enforcement of any rights or remedies under this Security Agreement.

 

    	 	10	 

     

    

  

4.3         Standards
for Exercising Remedies. To the extent that applicable law imposes duties on the Secured Parties to exercise remedies
in a commercially reasonable manner, Grantor acknowledges and agrees that it is not commercially unreasonable for the Secured Parties
(a) to incur expenses deemed necessary by the Secured Parties to prepare Collateral for disposition or otherwise to complete raw
material or work-in-process into finished goods or other finished products for disposition, (b) to fail to obtain third party consents
for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third
party consents for the collection or disposition of Collateral to be collected or disposed of, (c) to fail to exercise collection
remedies against Account Grantors or other Persons obligated on Collateral or to remove liens or encumbrances on or any adverse
claims against Collateral, (d) to exercise collection remedies against Account Grantors and other Persons obligated on Collateral
directly or through the use of collection agencies and other collection specialists, (e) to advertise dispositions of Collateral
through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (f) to contact
other Persons, whether or not in the same business as Grantor, for expressions of interest in acquiring all or any portion of the
Collateral, (g) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the collateral
is of a specialized nature, (h) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of
the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets,
(i) to dispose of assets in wholesale rather than retail markets, (j) to disclaim disposition warranties, including any warranties
of title, (k) to purchase insurance or credit enhancements to insure the Secured Parties against risks of loss, collection or disposition
of Collateral or to provide to the Secured Parties a guaranteed return from the collection or disposition of Collateral, or (l)
to the extent deemed appropriate by the Secured Parties, to obtain the services of other brokers, investment bankers, consultants
and other professionals to assist the Secured Parties in the collection or disposition of any of the Collateral.  Grantor
acknowledges that the purpose of this section is to provide non-exhaustive indications of what actions or omissions by the Secured
Parties would not be commercially unreasonable in the Secured Parties’ exercise of remedies against the Collateral and that
other actions or omissions by the Secured Parties shall not be deemed commercially unreasonable solely on account of not being
indicated in this Section.  Without limitation upon the foregoing, nothing contained in this Section shall be construed
to grant any rights to Grantor or to impose any duties on the Secured Parties that would not have been granted or imposed by this
Security Agreement or by applicable law in the absence of this Section.

 

4.4        UCC
and Offset Rights.  The Secured Parties may exercise, from time to time, any and all rights and remedies available
to it under the UCC or under any other applicable law in addition to, and not in lieu of, any rights and remedies expressly granted
in this Security Agreement or in any other agreements between any Obligor and the Secured Parties, and may, without demand or notice
of any kind, appropriate and apply toward the payment of such of the Obligations, whether matured or unmatured, including costs
of collection and attorneys' and paralegals' fees and costs, and in such order of application as the Secured Parties may, from
time to time, elect, any indebtedness of the Secured Parties to any Obligor, however created or arising, including balances, credits,
deposits, accounts or moneys of such Obligor in the possession, control or custody of, or in transit to the Secured Parties.  Grantor,
on behalf of itself and any Obligor, hereby waives the benefit of any law that would otherwise restrict or limit the Secured Parties
in the exercise of its right, which is hereby acknowledged, to appropriate at any time hereafter any such indebtedness owing from
the Secured Parties to any Obligor.

 

4.5        Additional
Remedies.  Upon the occurrence and during the continuation of an Event of Default, the Secured Parties shall have
the right and power to:

 

(a)          instruct
Grantor, at its own expense, to notify any parties obligated on any of the Collateral, including any Account Grantors, to make
payment directly to the Secured Parties of any amounts due or to become due thereunder, or the Secured Parties may directly notify
such obligors of the security interest of the Secured Parties, and/or of the assignment to the Secured Parties of the Collateral
and direct such obligors to make payment to the Secured Parties of any amounts due or to become due with respect thereto, and thereafter,
collect any such amounts due on the Collateral directly from such Persons obligated thereon;

 

    	 	11	 

     

    

  

(b)          enforce
collection of any of the Collateral, including any Accounts, by suit or otherwise, or make any compromise or settlement with respect
to any of the Collateral, or surrender, release or exchange all or any part thereof, or compromise, extend or renew for any period
(whether or not longer than the original period) any indebtedness thereunder;

 

(c)          take
possession or control of any proceeds and products of any of the Collateral, including the proceeds of insurance thereon;

 

(d)          extend,
renew or modify for one or more periods (whether or not longer than the original period) the Obligations or any obligation of any
nature of any other obligor with respect to the Obligations;

 

(e)          grant
releases, compromises or indulgences with respect to the Obligations, any extension or renewal of any of the Obligations, any security
therefor, or to any other obligor with respect to the Obligations;

 

(f)           transfer
the whole or any part of Capital Securities which may constitute Collateral into the name of the Secured Parties or the Secured
Parties’ nominee without disclosing, if the Secured Parties so desires, that such Capital Securities so transferred are subject
to the security interest of the Secured Parties, and any corporation, association, or any of the managers or trustees of any trust
issuing any of such Capital Securities, or any transfer agent, shall not be bound to inquire, in the event that the Secured Parties
or such nominee makes any further transfer of such Capital Securities, or any portion thereof, as to whether the Secured Parties
or such nominee has the right to make such further transfer, and shall not be liable for transferring the same;

 

(g)         vote
the Collateral;

 

(h)          make
an election with respect to the Collateral under Section 1111 of the Bankruptcy Code or take action under Section 364 or any other
section of Bankruptcy Code; provided , however , that any such action of the Secured Parties as set forth herein shall not, in
any manner whatsoever, impair or affect the liability of Grantor hereunder, nor prejudice, waive, nor be construed to impair, affect,
prejudice or waive the Secured Parties’ rights and remedies at law, in equity or by statute, nor release, discharge, nor
be construed to release or discharge, Grantor, any guarantor or other Person liable to the Secured Parties for the Obligations;
and

 

(i)           at
any time, and from time to time, accept additions to, releases, reductions, exchanges or substitution of the Collateral, without
in any way altering, impairing, diminishing or affecting the provisions of this Security Agreement, the Loan Documents, or any
of the other Obligations, or the Secured Parties’ rights hereunder, under the Obligations.

 

Grantor hereby ratifies and confirms whatever
the Secured Parties may do with respect to the Collateral and agrees that the Secured Parties shall not be liable for any error
of judgment or mistakes of fact or law with respect to actions taken in connection with the Collateral other than as a result of
intentional misconduct or gross negligence.

 

    	 	12	 

     

    

  

4.6        Attorney-in-Fact.  Grantor
hereby irrevocably makes, constitutes and appoints the Secured Parties (and any officer of the Secured Parties or any Person designated
by the Secured Parties for that purpose) as Grantor's true and lawful proxy and attorney-in-fact (and agent-in-fact) in Grantor's
name, place and stead, with full power of substitution, to (i) take such actions as are permitted in this Security Agreement, (ii)
execute such financing statements and other documents and to do such other acts as the Secured Parties may require to perfect and
preserve the Secured Parties’ security interest in, and to enforce such interests in the Collateral, and (iii) upon the occurrence
of an Event of Default, carry out any remedy provided for in this Security Agreement, including endorsing Grantor's name to checks,
drafts, instruments and other items of payment, and proceeds of the Collateral, executing change of address forms with the postmaster
of the United States Post Office serving the address of Grantor, changing the address of Grantor to that of the Secured Parties,
opening all envelopes addressed to Grantor and applying any payments contained therein to the Obligations.  Grantor hereby
acknowledges that the constitution and appointment of such proxy and attorney-in-fact are coupled with an interest and are irrevocable.  Grantor
hereby ratifies and confirms all that such attorney-in-fact may do or cause to be done by virtue of any provision of this Security
Agreement.

 

4.7        No
Marshaling.  The Secured Parties shall not be required to marshal any present or future collateral security (including
this Security Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort
to such collateral security or other assurances of payment in any particular order.  To the extent that it lawfully may,
Grantor hereby agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede
the enforcement of the Secured Parties’ rights under this Security Agreement or under any other instrument creating or evidencing
any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment
thereof is otherwise assured, and, to the extent that it lawfully may, Grantor hereby irrevocably waives the benefits of all such
laws.

 

4.8        No
Waiver.  No Event of Default shall be waived by the Secured Parties except in writing.  No failure or delay
on the part of the Secured Parties in exercising any right, power or remedy hereunder shall operate as a waiver of the exercise
of the same or any other right at any other time; nor shall any single or partial exercise of any such right, power or remedy preclude
any other or further exercise thereof or the exercise of any other right, power or remedy hereunder.  There shall be
no obligation on the part of the Secured Parties to exercise any remedy available to the Secured Parties in any order.  The
remedies provided for herein are cumulative and not exclusive of any remedies provided at law or in equity.  Grantor
agrees that in the event that Grantor fails to perform, observe or discharge any of its Obligations or liabilities under this Security
Agreement or any other agreements with the Secured Parties, no remedy of law will provide adequate relief to the Secured Parties,
and further agrees that the Secured Parties shall be entitled to temporary and permanent injunctive relief in any such case without
the necessity of proving actual damages.

 

4.9        Application
of Proceeds.  The Secured Parties will within three (3) Business Days after receipt of cash or solvent credits from
collection of items of payment, proceeds of Collateral or any other source, apply the whole or any part thereof against the Obligations
secured hereby.  The Secured Parties shall further have the exclusive right to determine how, when and what application
of such payments and such credits shall be made on the Obligations, and such determination shall be conclusive upon Grantor.  Any
proceeds of any disposition by the Secured Parties of all or any part of the Collateral may be first applied by the Secured Parties
to the payment of expenses incurred by the Secured Parties in connection with the Collateral, including reasonable attorneys’
fees and legal expenses and costs as provided for in Section 5.13 hereof.

 

    	 	13	 

     

    

  

Section
5         MISCELLANEOUS.

 

5.1         Entire
Agreement.  This Security Agreement and the other Loan Documents (i) are valid, binding and enforceable against Grantor
and the Secured Parties in accordance with their respective provisions and no conditions exist as to their legal effectiveness;
(ii) constitute the entire agreement between the parties with respect to the subject matter hereof and thereof; and (iii) are the
final expression of the intentions of Grantor and the Secured Parties.  No promises, either expressed or implied, exist
between Grantor and the Secured Parties, unless contained herein or therein.  This Security Agreement, together with
the other Loan Documents, supersedes all negotiations, representations, warranties, commitments, term sheets, discussions, negotiations,
offers or contracts (of any kind or nature, whether oral or written) prior to or contemporaneous with the execution hereof with
respect to any matter, directly or indirectly related to the terms of this Security Agreement and the other Loan Documents.  This
Security Agreement and the other Loan Documents are the result of negotiations between the Secured Parties and Grantor and have
been reviewed (or have had the opportunity to be reviewed) by counsel to all such parties, and are the products of all parties.  Accordingly,
this Security Agreement and the other Loan Documents shall not be construed more strictly against the Grantor merely because of
the Grantor’s involvement in their preparation.

 

5.2         Notices.  Any
notices, consents, waivers, or other communications required or permitted to be given under the terms of this Security Agreement
must be in writing and in each case properly addressed to the party to receive the same in accordance with the information below,
and will be deemed to have been delivered: (i) if mailed by certified mail, return receipt requested, postage prepaid and properly
addressed to the address below, then three (3) business days after deposit of same in a regularly maintained U.S. Mail receptacle;
or (ii) if mailed by Federal Express, UPS or other nationally recognized overnight courier service, next business morning delivery,
then one (1) business day after deposit of same in a regularly maintained receptacle of such overnight courier; or (iii) if hand
delivered, then upon hand delivery thereof to the address indicated on or prior to 5:00 p.m., EST, on a Business Day.  Any
notice hand delivered after 5:00 p.m., EST, shall be deemed delivered on the following Business Day.  Notwithstanding
the foregoing, notice, consents, waivers or other communications referred to in this Security Agreement may be sent by e-mail,
or other method of delivery, but shall be deemed to have been delivered only when the sending party has confirmed (by reply e-mail
or some other form of written confirmation) that the notice has been received by the other party.  The addresses and email
adresses for such communications shall be as set forth below, unless such address or information is changed by a notice conforming
to the requirements hereof.  No notice to or demand on the Grantor in any case shall entitle the Grantor to any other
or further notice or demand in similar or other circumstances:

 

	If to the Grantor:	Inergetics, Inc.
	 	550 Broad Street, Suite 1212
	 	Newark, NJ 07102
	 	Attn: Michael James
	 	E-Mail: ______
	 	 
	With a copy to (which shall	______
	not constitute notice)	______
	 	 
	If to the Secured Parties:	_____
	 	_____
	 	_____

 

    	 	14	 

     

    

  

5.3        Amendments;
Waivers.  No delay on the part of the Secured Parties in the exercise of any right, power or remedy shall operate
as a waiver thereof, nor shall any single or partial exercise by the Secured Parties of any right, power or remedy preclude other
or further exercise thereof, or the exercise of any other right, power or remedy.  No amendment, modification or waiver
of, or consent with respect to, any provision of this Security Agreement or the other Loan Documents shall in any event be effective
unless the same shall be in writing and acknowledged by the Secured Parties, and then any such amendment, modification, waiver
or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

5.4        WAIVER
OF DEFENSES.  GRANTOR WAIVES EVERY PRESENT AND FUTURE DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH GRANTOR
MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY SECURED PARTY IN ENFORCING THIS SECURITY AGREEMENT.  PROVIDED SECURED
PARTY ACTS IN GOOD FAITH, GRANTOR RATIFIES AND CONFIRMS WHATEVER SECURED PARTY MAY DO PURSUANT TO THE TERMS OF THIS SECURITY AGREEMENT.  THIS
PROVISION IS A MATERIAL INDUCEMENT FOR SECURED PARTY GRANTING ANY FINANCIAL ACCOMMODATION TO GRANTOR.

 

5.5        MANDATORY
FORUM SELECTION.  ANY DISPUTE ARISING UNDER, RELATING TO, OR IN CONNECTION WITH THE AGREEMENT OR RELATED TO ANY MATTER
WHICH IS THE SUBJECT OF OR INCIDENTAL TO THE AGREEMENT (WHETHER OR NOT SUCH CLAIM IS BASED UPON BREACH OF CONTRACT OR TORT) SHALL
BE SUBJECT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, NEW YORK. 
THIS PROVISION IS INTENDED TO BE A “MANDATORY” FORUM SELECTION CLAUSE AND GOVERNED BY AND INTERPRETED CONSISTENT WITH
NEW YORK LAW.

 

5.6        WAIVER
OF JURY TRIAL.  GRANTOR AND SECURED PARTY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL,
EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE
OR DEFEND ANY RIGHTS UNDER THIS SECURITY AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT, ANY OF THE OTHER OBLIGATIONS, THE COLLATERAL,
OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF CONDUCT OR
COURSE OF DEALING IN WHICH SECURED PARTY AND GRANTOR ARE ADVERSE PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL
BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR SECURED PARTY GRANTING ANY
FINANCIAL ACCOMMODATION TO GRANTOR.

 

5.7        Assignability.  The
Secured Parties, prior to the occurrence of an Event of Default and with the consent of Grantor, which consent will not be unreasonably
withheld, and after the occurrence and during the continuation of an Event of Default without consent from or notice to anyone,
may at any time assign the Secured Parties’ rights in this Security Agreement, the other Loan Documents, the Obligations,
or any part thereof and transfer the Secured Parties’ rights in any or all of the Collateral, and the Secured Parties thereafter
shall be relieved from all liability with respect to such Collateral.  This Security Agreement shall be binding upon
the Secured Parties and Grantor and its respective legal representatives and successors.  All references herein to Grantor
shall be deemed to include any successors, whether immediate or remote.  In the case of a joint venture or partnership,
the term “Grantor” shall be deemed to include all joint venturers or partners thereof, who shall be jointly and severally
liable hereunder.

 

    	 	15	 

     

    

  

5.8         Binding
Effect.  This Security Agreement shall become effective upon execution by Grantor and the Secured Parties.

 

5.9         Governing
Law.  Except in the case of the Mandatory Forum Selection clause set forth in Section 5.5 hereof,  this
Security Agreement shall be delivered and accepted in and shall be deemed to be a contract made under and governed by the internal
laws of the State of New York, without regard to conflict of laws principles.

 

5.10       Enforceability.  Wherever
possible, each provision of this Security Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Security Agreement shall be prohibited by, unenforceable or invalid under any jurisdiction, such
provision shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition or invalidity, without
invalidating the remaining provisions of this Security Agreement or affecting the validity or enforceability of such provision
in any other jurisdiction.

 

5.11       Time
of Essence.  Time is of the essence in making payments of all amounts due the Secured Parties under the Loan Documents
and in the performance and observance by Grantor of each covenant, agreement, provision and term of this Security Agreement and
the other Loan Documents.

 

5.12       Counterparts;
Email Signatures.  This Security Agreement may be executed in any number of counterparts and by the different parties
hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Security Agreement.  Receipt of an executed signature page to this Security Agreement
by email or other electronic transmission shall constitute effective delivery thereof.  Electronic records of executed
Loan Documents maintained by the Secured Parties shall be deemed to be originals thereof.

 

5.13       Costs,
Fees and Expenses.  Grantor shall pay or reimburse the Secured Parties for all reasonable costs, fees and expenses
incurred by the Secured Parties or for which the Secured Parties become obligated in connection with the enforcement of this Security
Agreement, including search fees, costs and expenses and attorneys' fees, costs and time charges of counsel to the Secured Parties
and all taxes payable in connection with this Security Agreement.  In furtherance of the foregoing, Grantor shall pay
any and all stamp and other taxes, UCC search fees, filing fees and other costs and expenses in connection with the execution and
delivery of this Security Agreement and the other Loan Documents to be delivered hereunder, and agrees to save and hold the Secured
Parties harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to
pay such costs and expenses.  That portion of the Obligations consisting of costs, expenses or advances to be reimbursed
by Grantor to the Secured Parties pursuant to this Security Agreement or the other Loan Documents which are not paid on or prior
to the date hereof shall be payable by Grantor to the Secured Parties on demand.  If at any time or times hereafter the
Secured Parties: (a) employs counsel for advice or other representation (i) with respect to this Security Agreement or the other
Loan Documents, (ii) to represent the Secured Parties in any litigation, contest, dispute, suit or proceeding or to commence, defend,
or intervene or to take any other action in or with respect to any litigation, contest, dispute, suit, or proceeding (whether instituted
by the Secured Parties, Grantor, or any other Person) in any way or respect relating to this Security Agreement, or (iii) to enforce
any rights of the Secured Parties against Grantor or any other Person under of this Security Agreement; (b) takes any action to
protect, collect, sell, liquidate, or otherwise dispose of any of the Collateral; and/or (c) attempts to or enforces any of the
Secured Parties’ rights or remedies under this Security Agreement, the costs and expenses incurred by the Secured Parties
in any manner or way with respect to the foregoing, shall be part of the Obligations, payable by Grantor to the Secured Parties
on demand.

 

    	 	16	 

     

    

  

5.14       Termination.  This
Security Agreement and the Liens and security interests granted hereunder shall not terminate until the termination of the Loan
Documents and the commitments to make Loans thereunder and the full and complete performance and satisfaction and payment in full
of all the Obligations (other than contingent indemnification obligations to the extent no claim giving rise thereto has been asserted).  Upon
termination of this Security Agreement, the Secured Parties shall also deliver to Grantor (at the sole expense of Grantor) such
UCC termination statements and such other documentation, without recourse, warranty or representation whatsoever, as shall be reasonably
requested by Grantor to effect the termination and release of the Liens and security interests in favor of the Secured Parties
affecting the Collateral.

 

5.15       Reinstatement.  This
Security Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against
Grantor for liquidation or reorganization, should Grantor become insolvent or make an assignment for the benefit of any creditor
or creditors or should a receiver or trustee be appointed for all or any significant part of Grantor’s assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any
part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any
obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise,
all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not
so rescinded, reduced, restored or returned.

 

[-Remainder of Page Deliberately Left
Blank-]

  

    	 	17	 

     

    

 

IN WITNESS WHEREOF,
Grantor and the Secured Parties have executed this Security Agreement as of the date first above written.

  

	 	 GRANTOR:
	 	 
	 	INERGETICS, INC.
	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

  

	 	 SECURED PARTIES:
	 	 	 
	 	_____
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	_____
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	_____
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	18Exhibit 10.4

 

SUBORDINATION
AGREEMENT

 

THIS SUBORDINATION
AGREEMENT (this “Agreement”) is made and executed as of the 1st day of September, 2015, by, between and
among INERGETICS, INC., a corporation incorporated under the laws of the State of Delaware (the “Borrower”);
______ (“______”),______ (“______,” and together with ______, collectively, the “______”) and
______ (“______,” and together with the ______, collectively, the “Senior Lenders”) and ______,
______, ______ (each individually referred to as a “Subordinating Creditor” and all of them collectively
sometimes referred to as the “Subordinating Creditors”).

 

WITNESSETH:

  

WHEREAS, each
of the Subordinating Creditors made one or more loans to the Borrower (collectively, the “Subordinated Debt”)
all of which are identified in Schedule I attached hereto, which Subordinated Debt is evidenced by certain documents
and/or other instruments and all other related documents and agreements including, but not limited to, those set forth in Schedule
I hereto, the Security Agreement dated September 1, 2015, by and among the Borrower, ______ and ______ (as amended by the
______ and all exhibits, schedules, annexes, supplements and modifications and/or amendments thereto collectively, the “Subordinating
Creditors’ Security Agreement”), all documents, instruments, notes, debentures or other security agreements
and other documents securing any collateral for any Subordinated Debt and any U.C.C. 1 Financing Statements and/or other documents
evidencing or perfecting liens and/or security interests in any assets of the Borrower created by any security agreements (all
such documents including, but not limited to, all amendments, supplements, exhibits, schedules and/or annexes to such documents,
collectively, the “Subordinated Debt Loan Documents”); and

 

WHEREAS, the Contractors have made
or will make loans, and/or advances (the “Contractor Loans”), to the Borrower to, among other items,
enable the Borrower to have its products manufactured pursuant to a Master Purchase Order Assignment Agreement dated as of September
1, 2015, by and between the Contractors and the Borrowers (as amended, supplemented, renewed, modified and/or otherwise changed
from time to time, the “P.O. Agreement,” and, together with all other related documents including, but
not limited to, the security agreement dated September 1, 2015 by and among the Senior Lenders and the Borrower (the “Security
Agreement”), any U.C.C. 1 Financing Statements and/or other documents evidencing liens created by the Security
Agreement and other documents evidencing any such liens or used to establish a lien or security interest in the assets of the Borrower,
all Distributor’s Notes, Exchange Notes, Prior Notes and all modifications, exhibits, amendments, supplements, annexes of
related items, collectively, and including any and all instruments evidencing the Contractor Loans and all exhibits, schedules,
annexes, supplements, modifications and/or amendments to any and/or all of such documents, all as amended, supplemented, modified
and/or otherwise changed, from time to time, collectively, the “P.O. Transaction Documents”), which aggregate
principal amount of Contractor Loans under the P.O. Agreement cannot at any time exceed $1,000,000 aggregate principal amount;
and

 

WHEREAS, the Contractors have previously
made $______ aggregate principal amount of loans to the Borrower (the “Prior Loans”) as set forth on
Schedule II, which Prior Loans are evidenced by certain documents and/or instruments and all other related documents
including, but not limited to, any security agreements securing any collateral for such Prior Loans and any U.C.C. 1 Financing
Statements and/or other documents evidencing liens created by the security agreement and other documents evidencing any such liens
or used to establish a lien or security interest in the assets of the Borrower, (all such documents including, but not limited
to, all exhibits, schedules, annexes, supplements and/or amendments to any of such documents, all as amended, supplemented, modified
and/or otherwise changed, collectively, the “Prior Loan Documents”), which Prior Loans, pursuant to the
P.O. Agreement, will be converted into Contractor Loans and be evidenced by “Exchange Notes”; and

 

    	 	1	 

     

    

 

WHEREAS, ______ previously made
(and in the future may make additional) loans to the Borrower (the “Other Loans”) as set forth on Schedule
III hereto, which Other Loans are (and in the future may be) evidenced by notes, debentures and/or other instruments (all
such notes, debentures and/or instruments together with such other documents, agreements and other items related to the Other Loans
including, but not limited to, the Security Agreement and any U.C.C. 1 Financing Statements and/or other documents evidencing
liens created by the security agreement and other documents evidencing any such liens or used to establish a lien or security interest
in the assets of the Borrower, and all exhibits, schedules, annexes, supplements and/or amendments to any of such documents, all
as amended, supplemented, modified and/or otherwise changed, collectively, the “Other Loan Documents”);
and

 

WHEREAS, all
of Borrower’s current and future obligations to (i) the Contractors pursuant to the P.O. Documents including, but not
limited to, the Contractor Loans, Distributor’s Notes and Prior Notes and upon exchange of the Prior Notes for the Exchange
Notes, the Exchange Notes, and (ii) ______ under the Other Loans and Other Loan Documents are secured by the Security Agreement,
which Security Agreement provides the Senior Lenders with a continuing and unconditional first priority security interest (the
“Security Interest”) in the collateral stated therein and also in the case of the Contractors to all
Collateral (collectively, the “Collateral”); and

 

WHEREAS, each
Subordinating Creditor has agreed pursuant to this Agreement to subordinate: (i) all of their respective Subordinated Debt; and
(ii) each Subordinating Creditor’s security interests of any nature or kind to the Senior Lenders’ property and
assets, to the Senior Debt (as hereinafter defined) and to the Security Interest, all as more specifically hereinafter set forth;
and

 

WHEREAS, all
capitalized terms used in this Agreement and not otherwise defined herein shall have the same meanings ascribed to such terms in
the P.O. Agreement;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the Senior
Lenders and the Subordinating Creditors do hereby agree as follows:

 

1.            Recitals.
The recitals set forth above are true and correct and are incorporated herein by reference.

 

    	 	2	 

     

    

 

2.            Subordination.
Until all (i) Contactor Loans, Exchange Notes, Prior Loans, Distributor Notes, Other Loans, and all other obligations of any nature
or kind of Borrower to the Senior Lenders including, but not limited to, under and/or pursuant to (a) the P.O. Agreement,
(including, but not limited to, the Contractor Expenses, the Commitment Fee, all Contractors Deal Fees), (b) the Security Agreement,
(c) all other P.O. Transaction Documents, (d) the Other Loan Documents, (e) the Other Loans and (f) the Prior Loan Documents
(the items set forth in (a) - (f), are each a “Senior Debt Document”, and collectively, the “Senior
Debt Documents”), whether now existing or hereafter arising, together with all accrued and unpaid interest thereon,
all other fees and charges due, owing or payable by the Borrower to one or more of the Senior Lenders together with all costs of
collection with respect to any of the above (including, but not limited to, attorneys’ fees and court costs and expenses
throughout all trial and appellate levels and all negotiations, mediations, arbitrations and bankruptcy proceedings), and any and
all other obligations of the Borrower to the Senior Lenders whether now existing or arising hereafter (collectively, the “Senior
Debt”) are indefeasibly paid in full in immediately available funds to the Senior Lenders (hereinafter referred to
as a “Discharge” or as the Senior Debt being “Discharged”), each Subordinating
Creditor does hereby fully and unconditionally subordinate: (i) any right to payment or distribution by or on behalf of the Senior
Lenders, directly or indirectly, of assets of the Borrower of any kind or character for or on account of the Subordinated Debt;
and (ii) any and all security interests, liens, charges, encumbrances or other interests that each Subordinating Creditor may have
or obtain at any time in any assets or property of the Borrower to secure the Subordinated Debt, or any portion thereof (collectively,
the “Subordinating Creditors Liens”), to the prior payment in full of the Senior Debt, and to the Security
Interests in the Collateral, and each Subordinating Creditor agrees that until such time as the Senior Debt has been Discharged,
any and all Subordinating Creditors Liens shall be junior and subordinate to the Security Interests, and the Security Interests
shall be first, senior and prior to each of the Subordinating Creditors Liens. The priority specified in the preceding sentence
shall be applicable and effective irrespective of: (a) the dates, times or order of attachment or perfection of the Subordinating
Creditors Liens or the Security Interests; (b) the time or order of filing of any Subordinating Creditors Liens or the Security
Interests; (c) the time or order of filing of any financing statements relating to any of the Subordinating Creditors Liens or
the Security Interests; (d) the time or order of obtaining control or possession of any Collateral or any other assets of the Borrower;
(e) the giving or failure to give notice of the acquisition or expected acquisition of any purchase money liens; or (f) the failure
to perfect or maintain the perfection or priority of the Security Interests or the failure of the Senior Lenders to obtain control
or possession of any Collateral. Each Subordinating Creditor, to the fullest extent permitted by applicable law, waives as to the
Senior Lenders, any requirement regarding, and agrees not to demand, request, plead or otherwise claim the benefit of, any marshaling,
appraisement, valuation or other similar right that may otherwise be available to any Subordinating Creditor under applicable law
with respect to any Collateral. For avoidance of doubt, each of the Senior Lenders and each Subordinating Creditor hereby clarify
for each other that the Senior Debt and the Security Interests shall be senior in all respects to the Subordinated Debt and the
Subordinating Creditors Liens, and that the Subordinated Debt and the Subordinating Creditors Liens shall be junior and subordinate
in all respects to the Senior Debt and the Security Interests.

 

3.            No
Payments or Enforcement. Until the Senior Debt is Discharged, and except only as expressly permitted by this Section 3
below, each Subordinating Creditor agrees that it will not demand or receive from Borrower, and Borrower will not pay to any Subordinating
Creditor, all or any part of the Subordinated Debt, by way of payment, prepayment, setoff, lawsuit or otherwise, nor will any Subordinating
Creditor exercise any remedy with respect to the Subordinated Debt or any of the Subordinating Creditors Liens against any assets
or property of Borrower, nor will any Subordinating Creditor commence, or cause to commence, prosecute or participate in any administrative,
legal or equitable action against Borrower, or any one of them, in connection with the Subordinated Debt or the Subordinating Creditors
Liens; provided, however, that so long as, and only to the extent that, Subordinating Creditors have not received
a written notice from the Senior Lenders advising as to the existence of an uncured default or “Event of Default”
(as such or similar defined term may be defined in any of the Senior Debt Documents) by Borrower under any of the Senior Debt Documents,
Borrower may pay regularly scheduled payments of interest only through the issuance of Borrower’s Common Stock or preferred
stock (as the case may be in accordance with the documents underlying the Subordinated Debt) to each Subordinating Creditor on
account of the Subordinated Debt (provided that once the Senior Lenders deliver to Subordinating Creditors any notice as to the
existence of any such default or Event of Default by Borrower, no such payments or issuances shall be further made by Borrower
or accepted by Subordinating Creditors).

 

    	 	3	 

     

    

 

4.            Subordination
Upon Any Distribution of Assets of the Borrower.  In the event of any payment or distribution of assets of Borrower
of any kind or character, whether in cash, property, or securities, upon the dissolution, winding up, or total or partial liquidation
or reorganization, readjustment, arrangement, or similar proceeding relating to the Borrower or its property and assets, whether
voluntary or involuntary, or in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon an assignment
for the benefit of creditors, or upon any other marshaling or composition of the assets and liabilities of the Borrower, or otherwise
(such events, collectively, the “Insolvency Events”): (i) all amounts owing on account of the Senior
Debt shall first be paid in full and in cash, or payment provided for in cash or in cash equivalents, before any payment or distribution
is made on account of the Subordinated Debt; and (ii) to the extent permitted by applicable law, any payments or distributions
on account of the Subordinated Debt to which any Subordinating Creditor would be entitled except for the provisions hereof, shall
be paid or delivered by the trustee in bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating agent
making such payment or distribution directly to the Senior Lenders for application to the payment of the Senior Debt in accordance
with clause (i), after giving effect to any concurrent payment or distribution or provision therefor to the Senior Lenders in respect
of such Senior Debt.

 

5.            Payment
Over to Senior Lenders.  In the event that, notwithstanding the provisions of this Agreement, any payments or distributions
on account of the Subordinated Debt or in any way relating to the Collateral or any assets or property of any of the Borrower shall
be received in contravention of this Agreement by any Subordinating Creditor before all Senior Debt is Discharged, such payments
or distributions shall be held in trust for the benefit of the Senior Lenders and shall be immediately paid over or delivered to
the Senior Lenders, in the same form as received, with any necessary endorsements, for application to the payment of the Senior
Debt remaining unpaid, after giving effect to any concurrent payments or distributions to the Senior Lenders in respect of the
Senior Debt.

 

6.            Release
of Collateral Upon Permitted Collateral Sale. In connection with any sale, lease, exchange, transfer or other disposition of
Collateral or any other assets of the Borrower by the Senior Lenders (or on behalf of, or for the benefit of, the Senior Lenders),
each Subordinating Creditor hereby agrees: (i) that upon the written request of the Senior Lenders with respect to the Collateral
or other assets subject to such sale or other disposition (which written request shall specify the proposed closing date), release
or otherwise terminate any Subordinating Creditors Liens on such Collateral or other assets; (ii) to promptly deliver such
terminations of financing statements, partial lien releases, mortgage satisfactions and discharges, endorsements, assignments or
other instruments of transfer, termination or release (collectively, “Release Documents”) and take such
further actions as the Senior Lenders shall reasonably require in order to release and/or terminate the Subordinating Creditors
Liens or any other claims that any Subordinating Creditor may have on the Collateral or any other assets of any of the Borrower
subject to such sale or other disposition; provided that no such Release Documents shall be filed or become effective until the
closing of such sale or other disposition; and (iii) shall be deemed to have consented under the documents evidencing the
Subordinated Debt to such sale or disposition free and clear of such Subordinating Creditors Liens or other claims or security
interests any Subordinating Creditor may have and to have waived the provisions of the documents evidencing the Subordinated Debt
to the extent necessary to permit such transaction.

 

7.            Authorization
to Senior Lenders.  If, while any Subordinated Debt is outstanding, any Insolvency Event shall occur and be continuing
with respect to the Borrower or its property or assets that constitutes a default or Event of Default under the Senior Debt Documents,
each Subordinating Creditor shall promptly take such action as the Senior Lenders reasonably may request to effectuate the provisions
of this Agreement: (A) to collect the Subordinated Debt for the account of the Senior Lenders and to file appropriate claims or
proofs of claim in respect of the Subordinated Debt; (B) to execute and deliver to the Senior Lenders such powers of attorney,
assignments, and other instruments as it may request to enable it to enforce any and all claims with respect to the Subordinated
Debt consistent with the terms of this Agreement; and (C) to collect and receive any and all payments and distributions on account
of the Subordinated Debt as provided herein until the Senior Debt is Discharged.

 

    	 	4	 

     

    

 

8.            Power
of Attorney. Effective upon the occurrence of an Event of Default by the Borrower under the Senior Debt Documents, each Subordinating
Creditor hereby irrevocably constitutes and appoints the Senior Lenders, and any agent or representative of the Senior Lenders,
with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of each Subordinating Creditor and in the name of each Subordinating Creditor or in the Senior Lenders’ own name,
from time to time in the Senior Lenders’ discretion, for the purpose of carrying out the terms of this Agreement, to take
any and all action and to execute any and all documents and instruments, in each case, which may be necessary or commercially reasonable
and appropriate to accomplish the purposes of this Agreement, including any Release Documents, such power of attorney being coupled
with an interest and irrevocable. Each Subordinating Creditor hereby ratifies all that said attorneys shall lawfully do or cause
to be done pursuant to the power of attorney granted in this Section. No Person to whom this power of attorney is presented, as
authority for the Senior Lenders to take any action or actions contemplated hereby, shall be required to inquire into or seek confirmation
from any Subordinating Creditor as to the authority of the Senior Lenders to take any action described herein, or as to the existence
of or fulfillment of any condition to this power of attorney, which is intended to grant to the Senior Lenders the authority to
take and perform the actions contemplated herein.

 

9.             Certain
Agreements of Subordinating Creditors.

 

(a)          No
Benefits.  Each Subordinating Creditor understands that there are various agreements between the Senior Lenders and
the Borrower evidencing and governing the Senior Debt, and each Subordinating Creditor acknowledges and agrees that such agreements
are not intended to confer any benefits on Subordinating Creditors, and that the Senior Lenders shall not have any obligation to
any Subordinating Creditor, or any other Persons, to exercise any rights, enforce any remedies, or take any actions which may be
available to them under such agreements.

 

(b)          No
Interference.  Each Subordinating Creditor acknowledges that the Borrower has granted to the Senior Lenders security
interests in all of the Collateral, and each agrees not to interfere with or in any manner oppose a disposition of any Collateral
by the Senior Lenders in accordance with applicable law and the terms of the Senior Debt Documents.

 

(c)          Reliance
by Senior Lenders.  Each Subordinating Creditor acknowledges and agrees that the Senior Lenders have relied upon
and will continue to rely upon the subordination provisions provided for herein and the other provisions hereof in consenting to
any loans or other financial accommodations by the Senior Lenders to the Borrower.

 

(d)          Obligations
of Borrower Not Affected.  Each Subordinating Creditor hereby agrees that at any time and from time to time, without
notice to or the consent of any Subordinating Creditor, without incurring any responsibility or obligation to any Subordinating
Creditor, and without impairing or releasing the subordination provided for herein or otherwise impairing the rights of the Senior
Lenders hereunder: (i) the time for Borrower’s performance of or compliance with any of its agreements contained in the Senior
Debt Documents may be extended or such performance or compliance may be waived by the Senior Lenders; (ii) the agreements of Borrower
under the Senior Debt Documents may from time to time be modified by the Senior Lenders and the Borrower for the purpose of adding
any requirements thereto or changing in any manner the rights and obligations of the respective parties thereunder; (iii) the manner,
place, or terms for payment of the Senior Debt or any portion thereof may be altered or the terms for payment extended, or the
Senior Debt may be increased, renewed, modified or amended, in whole or in part, all in accordance with the terms of the Senior
Debt Documents; (iv) the maturity of the Senior Debt may be accelerated in accordance with the terms of any present or future agreement
between the Borrower and the Senior Lenders; (v) any Collateral may be sold, exchanged, released, or substituted and any of the
Security Interests may be terminated, subordinated, or fail to be perfected or become unperfected; (vi) any guarantor or obligor
or other Person liable in any manner for Senior Debt may be discharged, released, or substituted; and (vii) all other rights against
the Borrower, any other party, or with respect to any Collateral, may be exercised by the Senior Lenders (or the Senior Lenders
may waive or refrain from exercising such rights); provided, however, notwithstanding the foregoing to the contrary,
the Senior Lenders agree that, without the prior written consent of the Subordinating Creditors (such consent not to be unreasonably
withheld, conditioned or delayed): (y) the Senior Lenders shall not increase the principal amount of the Senior Debt beyond the
current $1,000,000 credit limit; and (z) the Senior Lenders shall not further subordinate the Senior Debt to other debt obligations
incurred by the Borrower in a manner that would, as a result of this Agreement, push the Subordinating Creditors Liens to a third
position.

 

    	 	5	 

     

    

 

(e)          Rights
of Senior Lender Not to Be Impaired.  No right of the Senior Lenders to enforce the subordination provided for herein
or to exercise its other rights hereunder shall at any time in any way be prejudiced or impaired by any act or failure to act by
the Borrower or the Senior Lenders hereunder or under or in connection with the Senior Debt Documents, or by any noncompliance
by the Borrower with the terms and provisions and covenants herein, in the Senior Debt Documents, regardless of any knowledge thereof
the Senior Lenders may have or otherwise be charged with.

 

(f)           Financial
Condition of the Borrower.  No Subordinating Creditor shall have any right to require the Senior Lenders to obtain
or disclose any information with respect to: (i) the financial condition or assets or liabilities of the Borrower, or the
ability of the Borrower to pay the Senior Debt, or perform its obligations under the Senior Debt Documents; (ii) the Senior Debt;
(iii) the Collateral or other security for any or all of the Senior Debt; (iv) the existence or nonexistence of any guarantees
of, or any other subordination agreements with respect to, all or any part of the Senior Debt; (v) any action or inaction on the
part of the Senior Lenders or any other party; or (vi) any other matter, fact, or occurrence whatsoever, except that the Senior
Lenders agree to provide written notice of any default or Event of Default by Borrowers under the Senior Debt Documents; provided,
however, that no rights or benefits conferred upon the Senior Lenders by this Agreement or under the Senior Debt Documents
shall be impaired or adversely affected by any failure of the Senior Lenders to provide such notice.

 

(g)          Notices
of Default. Each Subordinating Creditor hereby agrees to deliver to the Senior Lenders, concurrently with the giving thereof
to the Borrower: (i) a copy of any written notice by such Subordinating Creditor of a breach, default, or “Event of
Default” (as such or similar defined term may be defined in any of the Senior Debt Documents) under or in connection with
the Subordinated Debt, or any written notice of demand for payment from the Borrower; and (ii) a copy of any written notice
sent by any Subordinating Creditor to Borrower stating any Subordinating Creditor’s intention to exercise any enforcement
rights or remedies against the Borrower, including written notice pertaining to any foreclosure on all or any part of any assets
or properties of the Borrower at any time securing the Subordinated Debt.

 

(h)          No
Increase in Subordinating Creditor Debt. Each Subordinating Creditor and the Borrower hereby represent and warrant unto the
Senior Lenders that the maximum amount of debt currently permitted under the Subordinated Debt existing as of the date hereof,
or the documents or instruments evidencing same, is as stated on Schedule I (for each Subordinating Creditor, as applicable,
the “Maximum Limit”). In this regard, each Subordinating Creditor and Borrower hereby covenant and agree
that: (i) the Subordinated Debt (in each case for each Subordinating Creditor) shall never exceed the Maximum Limit; and (ii) no
Subordinating Creditor will make any other or additional loans, advances, or financial accommodations to the Borrower, directly
or indirectly, whether related to the Subordinated Debt, new loans, advances, or accommodations, or otherwise, unless first approved
in writing by the Senior Lenders, which approval may be withheld or conditioned in the Senior Lenders’ sole and absolute
discretion.

 

    	 	6	 

     

    

 

(i)           No
Other Obligations. Each Subordinating Creditor and the Borrower hereby represent and warrant unto the Senior Lenders that,
except for the Subordinated Debt and Subordinating Creditors Liens, no Subordinating Creditor has any other liabilities or obligations
owing to them by the Borrower, or any other liens or security interests associated with any such other liabilities or obligations,
and to the extent there are any such other liabilities or obligations, or other liens or security interests, for purposes of this
Agreement, same shall be included as part of the Subordinated Debt and the Subordinating Creditors Liens, and be subject to all
of the terms and provisions of this Agreement in the same manner as the Subordinated Debt and the Subordinating Creditors Liens.

 

10.          Restrictions
on Transferability of Subordinated Debt. Each Subordinating Creditor agrees that it shall not transfer, assign, encumber, hypothecate
or subordinate, at any time while this Agreement remains in effect, any right, claim or interest of any kind in or to any of the
Subordinated Debt, either principal or interest or otherwise, and there shall promptly be placed on each promissory note or other
document or agreement constituting a portion of the Subordinated Debt, a legend reciting that the same is subject to this Agreement;
provided, however, notwithstanding the foregoing to the contrary, prior to the occurrence of an Event of Default
by any the Borrower under the Senior Debt Documents, a Subordinating Creditor shall have the right to transfer or assign any portion
of the Subordinated Debt for such Subordinating Creditor, but only if the transferee or assignee first executes an agreement reasonably
acceptable to the Senior Lenders pursuant to which such transferee or assignee agrees to the terms and provisions of this Agreement
for the benefit of the Senior Lenders (after the occurrence of an Event of Default by the Borrower under the Senior Debt Documents,
no such assignment or transfer of any portion of the Subordinated Debt shall be permitted).

 

11.          Statement
of Account. Each Subordinating Creditor hereby agrees that, from time to time, but only upon and after the occurrence of an
Event of Default by the Borrower under the Senior Debt Documents, it will provide and deliver to the Senior Lenders, upon demand,
a statement of the account of the Borrower with each Subordinating Creditor.

 

12.          Miscellaneous.

 

(a)          Subrogation.  Each
Subordinating Creditor hereby agrees that until the Senior Debt is Discharged, each shall waive any claims and shall not exercise
any right or remedy, direct or indirect, arising by way of subrogation or otherwise, against the Borrower.

 

(b)          Continuing
Agreement.  This Agreement is a continuing agreement of subordination and shall continue in effect and be binding
upon the Borrower and each Subordinating Creditor until the Senior Debt is Discharged.  The subordinations, agreements,
and priorities set forth herein shall remain in full force and effect regardless of whether any party hereto in the future seeks
to rescind, amend, terminate, or reform, by litigation or otherwise, its respective agreements with the Borrower.

 

    	 	7	 

     

    

 

(c)          Reinstatement.  This
Agreement shall continue to be effective or shall be reinstated, as the case may be, if, for any reason, any payment of the Senior
Debt by or on behalf of the Borrower shall be rescinded or must otherwise be restored or returned by the Senior Lenders, whether
as a result of an Insolvency Event or otherwise.

 

(d)          Obligations
of the Borrower Not Affected.  The provisions of this Agreement are intended solely for the purpose of defining the
relative rights of Subordinating Creditors, on the one hand, and of the Senior Lenders, on the other hand, with respect to the
obligations of the Borrowers to the Senior Lenders and Subordinating Creditors.  Nothing contained in this Agreement
shall: (i) impair, as between Subordinating Creditors and the Borrowers, the obligation of the Borrowers to pay their respective
obligations with respect to the Subordinated Debt as and when the same shall become due and payable (subject, however, to the terms
of this Agreement as applicable to the Senior Lenders’ rights hereunder); or (ii) otherwise affect the relative rights of
Subordinating Creditors against the Borrowers, on the one hand, and of the other creditors (other than the Senior Lenders) of the
Borrower against the Borrower, on the other hand.

 

(e)          Further
Assurances and Additional Acts.  Each Subordinating Creditor shall execute, acknowledge, deliver, file, notarize,
and register at its own expense all such further agreements, instruments, certificates, financing statements, documents, and assurances,
and perform such acts as the Senior Lenders reasonably shall deem necessary to effectuate the purposes of this Agreement, and promptly
provide the Senior Lenders with evidence of the foregoing reasonably satisfactory to the Senior Lenders.

 

(f)           Entire
Agreement. This Agreement: (i) is valid, binding and enforceable against each Subordinating Creditor and the Borrowers in accordance
with its terms and provisions and no conditions exist as to its legal effectiveness; and (ii) constitutes the entire agreement
between the parties with respect to the subject matter hereof. No promises, either expressed or implied, exist between the Senior
Lenders, Subordinating Creditors and the Borrower, unless contained herein. This Agreement is the result of negotiations between
Subordinating Creditors, the Borrower and the Senior Lenders and has been reviewed (or have had the opportunity to be reviewed)
by counsel to all such parties, and is the product of all parties. Accordingly, this Agreement shall not be construed more strictly
against the Borrower merely because of the Borrower’s involvement in its preparation.

 

(g)          Amendments;
Waivers. No delay on the part of the Senior Lenders in the exercise of any right, power or remedy shall operate as a waiver
thereof, nor shall any single or partial exercise by the Senior Lenders of any right, power or remedy preclude other or further
exercise thereof, or the exercise of any other right, power or remedy. No amendment, modification or waiver of, or consent with
respect to, any provision of this Agreement shall in any event be effective unless the same shall be in writing and acknowledged
by the Senior Lenders, and then any such amendment, modification, waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. The rights and remedies of the Senior Lenders under this Agreement are cumulative
and not exclusive of any rights, remedies, powers, and privileges that may otherwise be available to the Senior Lenders provided
by law.

 

(h)          MANDATORY
FORUM SELECTION.  EACH SUBORDINATING CREDITORM EACH SENIOR LENDER AND THE BORROWER IRREVOCABLY AGREE THAT ANY DISPUTE
ARISING UNDER, RELATING TO, OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR RELATED TO ANY MATTER WHICH IS THE
SUBJECT OF OR INCIDENTAL TO THIS AGREEMENT, OR THE COLLATERAL (WHETHER OR NOT SUCH CLAIM IS BASED UPON BREACH OF CONTRACT OR TORT)
SHALL BE SUBJECT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, NEW YORK. 
THIS PROVISION IS INTENDED TO BE A “MANDATORY” FORUM SELECTION CLAUSE AND GOVERNED BY AND INTERPRETED CONSISTENT WITH
NEW YORK LAW. EACH SUBORDINATING CREDITORS, EACH SENIOR LENDER AND BORROWER HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION AND VENUE
OF ANY STATE OR FEDERAL COURT HAVING ITS SITUS IN SAID COUNTY, AND EACH HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY OBJECTION BASED
ON FORUM NON CONVENIENS.

 

    	 	8	 

     

    

 

(i)           Governing
Law. This Agreement shall be delivered and accepted in and shall be deemed to be a contract made under and governed by the
internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such State, without
giving effect to the choice of law provisions of such State.

 

(j)           WAIVER
OF JURY TRIAL. EACH SUBORDINATING CREDITOR, THE BORROWER AND EACH SENIOR LENDER, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY
TO CONSULT WITH COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, THE COLLATERAL, OR ANY AMENDMENT, INSTRUMENT, DOCUMENT
OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING
RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF CONDUCT OR COURSE OF DEALING IN WHICH THE SENIOR
LENDERS, SUBORDINATING CREDITORS AND THE BORROWER ARE ADVERSE PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL
BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

(k)          Notices.
All notices of request, demand and other communications hereunder shall be addressed to the parties as follows:

  

	 	If to the Borrower:	Inergetics, Inc.
	 	 	550 Broad Street, Suite 1212
	 	 	Newark, NJ 07102
	 	 	Attn: Michael James
	 	 	E-Mail: ______
	 	 	 
	 	With a copy to (which shall	______
	 	not constitute notice)	______
	 	 	______
	 	 	 
	 	If to the Senior Lenders:	______
	 	 	______
	 	 	 
	 	If to Subordinating Creditors:	______
	 	 	______

 

    	 	9	 

     

    

 

unless the address is
changed by the party by like notice given to the other parties. Notice shall be in writing and shall be deemed delivered: (i) if
mailed by certified mail, return receipt requested, postage prepaid and properly addressed to the address below, then three (3)
business days after deposit of same in a regularly maintained U.S. Mail receptacle; or (ii) if mailed by Federal Express, UPS or
other nationally recognized overnight courier service, overnight delivery, then one (1) business day after deposit of same in a
regularly maintained receptacle of such overnight courier; or (iii) if hand delivered, then upon hand delivery thereof to the address
indicated on or prior to 5:00 p.m., EST, on a business day. Any notice hand delivered after 5:00 p.m., EST, shall be deemed delivered
on the following business day. Notwithstanding the foregoing, notice, consents, waivers or other communications referred to in
this Agreement may be sent by e-mail, or other method of delivery, but shall be deemed to have been delivered only when the sending
party has confirmed (by reply e-mail or some other form of written confirmation from the receiving party) that the notice has been
received by the other party, which receipt can be evidenced by a regular notice on the party giving notice’s computer or
other device showing the email notice was “delivered” or any other similar verbiage demonstrating receipt.

 

(l)           Binding
Effect. This Agreement shall become effective upon execution by the parties hereto and shall be binding on the parties hereto
and their respective successors and assigns.

 

(m)         Enforceability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by, unenforceable or invalid under any jurisdiction, such provision
shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition or invalidity, without invalidating
the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

(n)          Counterparts;
Electronic Signatures. This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same Agreement. Receipt of an executed signature page to this Agreement by facsimile or other electronic transmission
shall constitute effective delivery thereof.

 

(o)          Costs,
Fees and Expenses. The Borrower shall pay or reimburse the Senior Lenders for all reasonable costs, fees and expenses incurred
by the Senior Lenders or for which the Senior Lenders become obligated in connection with the enforcement of this Agreement, including
costs and expenses and attorneys’ fees, costs and time charges of counsel to the Senior Lenders throughout all court levels.

 

(p)         Termination.
This Agreement shall not terminate until the Senior Debt is Discharged, or until the Subordinated Debt is paid in full in accordance
with the provisions hereof.

 

(q)          Specific
Performance.  The Senior Lenders are hereby authorized to demand specific performance and/or any other equitable
relief and;/or remedy relating to any provision of this Agreement, the Security Agreement and/or any related documents, whether
or not the Borrower and/or the Subordinating Creditors shall have complied with any of the provisions hereof and/or thereof applicable
to it, at any time when any Subordinating Creditor shall have failed to comply (and/or have directly and/or indirectly indicated
that any of such persons intend not to comply) with any of the provisions of this Agreement, the Security Agreement and/or any
related documents, applicable to it. Each Subordinating Creditor and the Borrower each hereby irrevocably waives any defense
based on the adequacy of a remedy at law, which might be asserted as a bar to such remedy of specific performance and further knowingly
waive after consultation with their respective legal counsel any obligation and/or required under applicable law requiring any
Senior Lender to post a bond and/or make any similar undertaking in connection with any action seeking equitable relief.

 

    	 	10	 

     

    

 

(r)          Authority.
Each party hereby represents and warrants to the others that each party has the requisite power and authority to enter into this
Agreement and otherwise to carry out its respective obligations hereunder, and that the execution, delivery and performance by
each party of this Agreement have been duly authorized by all necessary action on the part of each party, respectively and as applicable,
and that the person executing this Agreement on behalf of each party has been fully authorized to do so in accordance with applicable
law and the governing documents of each party.

 

(s)         
Legal Fees and Expenses. In any action brought concerning and/or arising directly and/or indirectly out of this Agreement
and/or any of the other Senior Debt Documents, the prevailing party shall be entitled to recover from the other parties hereto
all of its legal fees and expenses incurred by it with respect to any such legal action.

  

[Signatures
on the following page]

 

    	 	11	 

     

    

 

[Signatures
page to subordination agreement]

 

IN WITNESS WHEREOF,
the undersigned have executed this Subordination Agreement as of the date first written above.

  

SUBORDINATING CREDITORS:

 

[______]

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

[______]

 

____________________________________

[______] (INDIVIDUALLY)

  

[______]

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

[______]

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

[Signatures
page to subordination agreement

continued
on next page]

 

    	 	12	 

     

    

 

[Signatures
page to subordination agreement

continued
from prior page]

 

BORROWER:

 

INERGETICS, INC., a Delaware
corporation

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

	SENIOR LENDERS:

 

	[______]
	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

	[______]
	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

	[______]
	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

[end
of Signatures page to subordination agreement]

 

    	 	13

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