Document:

Exhibit 10.2

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
(B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE
FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE.

 

IPSIDY INC.

 

SENIOR SECURED CONVERTIBLE NOTE

 

	Issuance Date: March 21, 2022	Original Principal Amount: US $[●]

 

FOR VALUE RECEIVED,
Ipsidy Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of [●] or its registered
assigns (“Holder”) the amount set forth above as the Original Principal Amount (as reduced pursuant to the terms hereof
pursuant to redemption, conversion or otherwise, the “Principal”) when due, whether upon the Maturity Date, or upon
acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”)
on any outstanding Principal at the Interest Rate (as defined below) or the Default Rate (as defined below), as applicable, from the date
set forth above as the Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon the
Maturity Date or upon acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof). This Senior
Secured Convertible Note (including all Senior Secured Convertible Notes issued in exchange, transfer or replacement hereof, this “Note”)
is one of an issue of Senior Secured Convertible Notes issued pursuant to the Securities Purchase Agreement (collectively, the “Notes”,
and such other Senior Secured Convertible Notes, the “Other Notes”). Certain capitalized terms used herein are defined
in Section 31.

 

(1) PAYMENTS OF PRINCIPAL. On the Maturity
Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal and accrued and unpaid Interest on
such Principal and Interest. Other than as specifically permitted by this Note, the Company may not prepay any portion of the outstanding
Principal or accrued and unpaid Interest, if any.

 

(2) INTEREST; INTEREST RATE.

 

		(a)	Commencing on the Issuance Date, this Note shall bear Interest at a rate of 9.75% per annum (the “Interest
Rate”) of the then outstanding Principal. Notwithstanding the foregoing, upon the occurrence (and during the continuance) of
an Event of Default (as defined below), this Note shall bear Interest at a rate of 14.75% per annum (the “Default Rate”)
of the then outstanding Principal. In the event that such Event of Default is subsequently cured or waived in accordance with the terms
of this Note (and no other Event of Default then exists (including, without limitation, for the Company’s failure to pay such Interest
at the Default Rate on the applicable Interest Date (as defined below))), Interest hereunder shall thereafter accrue at the Interest Rate
as of the calendar day immediately following the date of such cure or waiver; provided, that the Interest as calculated and unpaid
during the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such
Event of Default through and including the date of such cure or waiver of such Event of Default.

 

     

     

    

 

		(b)	Interest shall be computed on the basis of a 360-day year and
twelve 30-day months, shall be payable in arrears on each Interest Date, shall compound each calendar month, and shall be payable in
accordance with the terms of this Note. Interest shall be paid on each Interest Date and on the Maturity Date in cash; provided,
that, with respect to the Interest to be paid on each of June 30, September 30, and December 31, 2022, and March 31, and June 30, 2023,
subject to Sections 3(d) and 16, the Company may, at its option, pay some or all of such Interest by issuing and delivering
shares of Common Stock with a value equal to the amount of the Interest being paid. The number of the shares of Common Stock to be issued
and delivered with respect to each such payment of Interest shall be calculated as follows:

 

		(i)	if the Common Stock issued and delivered to a holder is Freely Tradable (as defined below), the number
of shares of Common Stock to be issued to the Holder shall equal the quotient (rounded up to the next whole share) of (A) the amount of
Interest to be paid on an Interest Date divided by (B) the arithmetic average of the VWAPs of the Common Stock for each of the
ten Trading Days immediately preceding the Interest Date; and

 

		(ii)	if the Common Stock issued and delivered to a holder is not Freely Tradable (as defined below), the number
of shares of Common Stock to be issued to the Holder shall equal the quotient (rounded up to the next whole share) of (A) the amount of
Interest to be paid on an Interest Date divided by (B) 80% of the arithmetic average of the VWAPs of the Common Stock for each
of the ten Trading Days immediately preceding the Interest Date.

 

For purposes of this Note, “Freely
Tradable” means, with respect to shares of Common Stock, that (i) such shares have been registered under the Securities Act
pursuant to an effective registration statement and may be immediately resold by the Holder or (ii) such shares may be immediately resold
by the Holder pursuant to Rule 144 under the Securities Act without any restrictions.

 

(3) CONVERSION OF NOTES. At any time after
the Issuance Date, this Note shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock (as defined
below), on the terms and conditions set forth in this Section 3.

 

		(a)	Conversion Right. Subject to the provisions of Sections
3(d) and 16, at any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the
outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and non-assessable shares of Common Stock
in accordance with Section 3(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a share
of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company
shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp,
issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent (as defined below))
that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount.

 

		(b)	Conversion Rate. The number of shares of Common Stock issuable
upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined by dividing (x) such Conversion Amount by
(y) the Conversion Price (the “Conversion Rate”).

 

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		(i)	“Conversion Amount” means the sum of (x) the
portion of the Principal to be converted, redeemed or otherwise with respect to which this determination is being made and (y) all accrued
and unpaid Interest with respect to such portion of the Principal amount, if any.

 

		(ii)	“Conversion Price” means, as of any Conversion
Date or other date of determination, $3.70, subject to adjustment as provided herein.

 

		(c)	Mechanics of Conversion.

 

		(i)	Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a
“Conversion Date”), the Holder shall deliver (whether via facsimile, electronic mail or otherwise), for receipt on
or prior to 6:00 p.m., New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit
I (the “Conversion Notice”) to the Company. If required by Section 3(c)(iii), within two (2) Trading Days
following a conversion of this Note as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service
for delivery to the Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction
as contemplated by Section 19(b)). On or before the first (1st) Trading Day following the date of receipt of a Conversion Notice
(it being agreed that the date of receipt shall be determined in accordance with Section 9(f) of the Securities Purchase Agreement), the
Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation and representation as to whether such shares
of Common Stock may then be resold pursuant to Rule 144 or an effective and available registration statement, in the form attached hereto
as Exhibit II to the Holder and the Company’s transfer agent (the “Transfer Agent”), which confirmation
shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before
the second (2nd) Trading Day following the date on which the Company has received a Conversion Notice (or such earlier date as required
pursuant to the Exchange Act or other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Conversion
Date of such shares of Common Stock issuable pursuant to such Conversion Notice), the Company shall (1) provided that the Transfer Agent
is participating in the Fast Automated Securities Transfer Program of The Depository Trust Company (“DTC”) and the
shares of Common Stock to be issued are covered by an effective, usable registration statement or may otherwise be resold under Rule 144
without restriction, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled pursuant to such conversion
to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (2) if the
Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program or the shares of Common Stock that are to be
issued are not covered by an effective, usable registration statement and may not be resold under Rule 144 without restriction, upon
the request of the Holder, issue and deliver to the facsimile number or the e-mail address as specified in the Conversion Notice a book-entry
statement, registered in the name of the Holder or its designee, representing the number of shares of Common Stock to which the Holder
shall be entitled pursuant to such conversion. If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii)
and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company
shall as soon as practicable and in no event later than two (2) Business Days after receipt of this Note and at its own expense, issue
and deliver to the Holder (or its designee) a new Note (in accordance with Section 19(d)) representing the outstanding Principal
not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated
for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

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		(ii)	Registration; Book-Entry. The Company shall maintain a
register (the “Register”) for the recordation of the names and addresses of the holders of each Note and the principal
amount of the Notes held by such holders (the “Registered Notes”). The entries in the Register shall be conclusive
and binding for all purposes absent manifest error. The Company and the holders of the Notes shall treat each Person whose name is recorded
in the Register as the owner of a Note for all purposes (including, without limitation, the right to receive payments of Principal and
Interest hereunder) notwithstanding notice to the contrary. A Registered Note may be assigned, transferred or sold in whole or in part
only by registration of such assignment or sale on the Register. Upon its receipt of a written request to assign, transfer or sell all
or part of any Registered Note by the holder thereof, the Company shall record the information contained therein in the Register and
issue one or more new Registered Notes in the same aggregate principal amount as the principal amount of the surrendered Registered Note
to the designated assignee or transferee pursuant to Section 19, provided that if the Company does not so record an assignment,
transfer or sale (as the case may be) of all or part of any Registered Note within two (2) Business Days of such a request, then the
Register shall be automatically deemed updated to reflect such assignment, transfer or sale (as the case may be). Notwithstanding anything
to the contrary set forth in this Section 3, following conversion of any portion of this Note in accordance with the terms hereof,
the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion Amount represented by
this Note is being converted (in which event this Note shall be delivered to the Company following conversion thereof as contemplated
by Section 3(c)(i)) or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion
Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company shall maintain records showing
the Principal and Interest converted and/or paid (as the case may be) and the dates of such conversions, and/or payments (as the case
may be) or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender
of this Note upon conversion. If the Company does not update the Register to record such Principal and Interest converted and/or paid
(as the case may be) and the dates of such conversions, and/or payments (as the case may be) within two (2) Business Days of such occurrence,
then the Register shall be automatically deemed updated to reflect such occurrence.

 

		(iii)	Pro Rata Conversion; Disputes. In the event that the Company
receives a Conversion Notice from more than one holder of Notes for the same Conversion Date and the Company can convert some, but not
all, of such portions of the Notes submitted for conversion, the Company, subject to Sections 3(d) and 16, shall convert
from each holder of Notes electing to have Notes converted on such date a pro rata amount of such holder’s portion of its Notes
submitted for conversion based on the principal amount of Notes submitted for conversion on such date by such holder relative to the
aggregate principal amount of all Notes submitted for conversion on such date. In the event of a dispute as to the number of shares of
Common Stock issuable to the Holder in connection with a conversion of this Note, the Company shall issue to the Holder the number of
shares of Common Stock not in dispute and resolve such dispute in accordance with Section 24.

 

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		(d)	Limitations on Conversions. The Company shall not effect the conversion of any portion of this
Note, and the Holder shall not have the right to convert any portion of this Note pursuant to the terms and conditions of this Note and
any such conversion shall be null and void and treated as if never made, to the extent that after giving effect to such conversion, the
Holder together with the other Attribution Parties collectively would beneficially own in excess of 9.99% (the “Maximum Percentage”)
of the shares of Common Stock outstanding immediately after giving effect to such conversion. For purposes of the foregoing sentence,
the aggregate number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties shall include the number
of shares of Common Stock held by the Holder and all other Attribution Parties plus the number of shares of Common Stock issuable upon
conversion of this Note with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock
which would be issuable upon (A) conversion of the remaining, non-converted portion of this Note beneficially owned by the Holder or any
of the other Attribution Parties and (B) exercise or conversion of the unexercised or non-converted portion of any other securities of
the Company (including, without limitation, any convertible notes or convertible preferred stock or warrants) beneficially owned by the
Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained in this
Section 3(d). For purposes of this Section 3(d), beneficial ownership shall be calculated in accordance with Section 13(d)
of the Exchange Act. For purposes of determining the number of outstanding shares of Common Stock the Holder may acquire upon the conversion
of this Note without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice by
the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported Outstanding
Share Number”). If the Company receives a Conversion Notice from the Holder at a time when the actual number of outstanding
shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall notify the Holder in writing of the number
of shares of Common Stock then outstanding and, to the extent that such Conversion Notice would otherwise cause the Holder’s beneficial
ownership, as determined pursuant to this Section 3(d), to exceed the Maximum Percentage, the Holder must notify the Company
of a reduced number of shares of Common Stock to be purchased pursuant to such Conversion Notice. For any reason at any time, upon the
written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail
to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder and any
other Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event that the issuance
of shares of Common Stock to the Holder upon conversion of this Note results in the Holder and the other Attribution Parties being deemed
to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined
under Section 13(d) of the Exchange Act), the number of shares so issued by which the Holder’s and the other Attribution Parties’
aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and
shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. For purposes of clarity,
the shares of Common Stock issuable pursuant to the terms of this Note in excess of the Maximum Percentage shall not be deemed to be beneficially
owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act. No prior inability
to convert this Note pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect
to any subsequent determination of convertibility. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 3(d) to the extent necessary to correct this paragraph (or any portion
of this paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section
3(d) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained
in this paragraph may not be waived and shall apply to a successor holder of this Note.

 

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(4) RIGHTS UPON EVENT OF DEFAULT.

 

		(a)	Event of Default. Each of the following events shall constitute
an “Event of Default” and each of the events in clauses (viii), (ix) and (x) shall constitute a “Bankruptcy
Event of Default”:

 

		(i)	the failure of the applicable Registration Statement (as defined in the Registration Rights Agreement)
to be filed with the SEC on or prior to the date that is five (5) days after the applicable Filing Deadline (as defined in the Registration
Rights Agreement) or the failure of the applicable Registration Statement to be declared effective by the SEC on or prior to the date
that is five (5) days after the applicable Effectiveness Deadline (as defined in the Registration Rights Agreement);

 

		(ii)	while the applicable Registration Statement is required to be
maintained effective pursuant to the terms of the Registration Rights Agreement, the effectiveness of the applicable Registration Statement
lapses for any reason (including, without limitation, the issuance of a stop order) or such Registration Statement (or the prospectus
contained therein) is unavailable to any holder of Registrable Securities (as defined in the Registration Rights Agreement) for sale
of all of such holder’s Registrable Securities in accordance with the terms of the Registration Rights Agreement, and such lapse
or unavailability continues for a period of five (5) consecutive days or for more than an aggregate of ten (10) days in any 365-day period
(excluding days during an Allowable Grace Period (as defined in the Registration Rights Agreement));

 

		(iii)	the suspension from trading or the failure of the Common Stock
to be trading or listed (as applicable) on an Eligible Market for a period of ten (10) consecutive Trading Days;

 

		(iv)	the Company’s failure to timely file all reports, statements
and other documents required to be filed under Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act (after giving effect to any extension
permitted by Rule 12b-25 promulgated thereunder but only to the extent the Company actually files any such report, statement or document
within the periods specified in Rule 12b-25);

 

		(v)	the Company’s (A) failure to deliver the required number
of shares of Common Stock within five (5) Trading Days after the applicable Conversion Date or (B) notice, written or oral, to any holder
of the Notes, including, without limitation, by way of public announcement or through any of its agents, at any time, of its intention
not to comply, as required, with a request for conversion of any Notes into shares of Common Stock that is requested in accordance with
the provisions of the Notes, other than pursuant to Sections 3(d) and 16;

 

		(vi)	the Company and its Subsidiaries’ collective failure to
pay to the Holder any amount of Principal or Interest or other amounts when and as due under this Note (including, without limitation,
the Company and its Subsidiaries’ collective failure to pay any redemption payments or amounts hereunder) or any other Transaction
Document (as defined in the Securities Purchase Agreement) or any other agreement, document, certificate or other instrument delivered
in connection with the transactions contemplated hereby and thereby, except, in the case of a failure to pay Interest when and as due,
in which case only if such failure remains uncured for a period of at least two (2) Trading Days;

 

		(vii) 	the Company fails to instruct the Transfer Agent to remove any
restrictive legend on any shares of Common Stock issued to the Holder upon conversion of any Securities (as defined in the Securities
Purchase Agreement) acquired by the Holder under the Securities Purchase Agreement (including this Note) as and when required by the
Securities Purchase Agreement, unless otherwise then prohibited by applicable federal securities laws, and any such failure remains uncured
for at least five (5) days;

 

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		(viii)	bankruptcy, insolvency, reorganization or liquidation proceedings
or other proceedings for the relief of debtors shall be instituted by or against the Company or any Subsidiary and, if instituted against
the Company or any Subsidiary by a third party, shall not be dismissed within thirty (30) days of their initiation;

 

		(ix)	the commencement by the Company or any Subsidiary of a voluntary
case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or of any
other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree, order, judgment or
other similar document in respect of the Company or any Subsidiary in an involuntary case or proceeding under any applicable federal,
state or foreign bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case
or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable
federal, state or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any
substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition
of debts, or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability
to pay its debts generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any
such action or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action
under federal, state or foreign law;

 

		(x)	the entry by a court of (i) a decree, order, judgment or other
similar document in respect of the Company or any Subsidiary of a voluntary or involuntary case or proceeding under any applicable federal,
state or foreign bankruptcy, insolvency, reorganization or other similar law or (ii) a decree, order, judgment or other similar document
adjudging the Company or any Subsidiary as bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization,
arrangement, adjustment or composition of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign
law or (iii) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree,
order, judgment or other similar document unstayed and in effect for a period of thirty (30) consecutive days;

 

		(xi)	a final judgment or judgments for the payment of money aggregating
in excess of $400,000 are rendered against the Company and/or any of its Subsidiaries and which judgments are not, within thirty (30)
days after the entry thereof, bonded, discharged, settled or stayed pending appeal, or are not discharged within thirty (30) days after
the expiration of such stay; provided, however, any judgment which is covered by insurance or an indemnity from a creditworthy
party shall not be included in calculating the $400,000 amount set forth above so long as the Company provides the Holder a written statement
from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to the Holder) to the effect that such
judgment is covered by insurance or an indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of
such insurance or indemnity within thirty (30) days of the issuance of such judgment;

 

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		(xii)	the occurrence of any default under, redemption of or acceleration
prior to maturity of at least an aggregate of $400,000 of Indebtedness (as defined in the Securities Purchase Agreement) of the Company
or any of its Subsidiaries owed to any third party, other than with respect to any Other Notes:

 

		(xiii)	the Company and/or any Subsidiary, individually or in the aggregate,
either (i) is in breach or violation of any agreement for monies owed or owing in an amount in excess of $400,000, which failure to pay
or other breach or violation, as applicable permits the other party thereto to declare an event of default or otherwise accelerate amounts
due thereunder, or (ii) suffers to exist any other circumstance or event that would, with or without the passage of time or the giving
of notice, result in a default or event of default under any agreement binding the Company or any Subsidiary, which default or event
of default would or is likely to have a material adverse effect on the business, assets, operations (including results thereof), liabilities,
condition (including financial condition) or prospects of the Company and its Subsidiaries, taken as a whole;

 

		(xiv)	other than as specifically set forth in another clause of this
Section 4(a), the Company or any Subsidiary breaches any representation or warranty in any material respect (other than representations
or warranties to the extent subject to material adverse effect or materiality, to which extent they may not be breached in any respect),
or any covenant or other term or condition of any Transaction Document, except, in the case of a breach of a covenant or other term or
condition that is curable, only if such breach remains uncured for a period of five (5) consecutive Trading Days;

 

		(xv)	a false or inaccurate certification (including a false or inaccurate
deemed certification) by the Company as to whether any Event of Default has occurred;

 

		(xvi)	any breach or failure in any respect by the Company or any Subsidiary
to comply with any provision of Section 13 of this Note, but only with respect to clauses (g) (restriction on transfer of assets),
(i) (change in nature of business), (j) (preservation of existence), (k) (maintenance of properties), (m) (maintenance of insurance),
(n) (transactions with affiliates), and (q) (change in collateral; collateral records) of Section 13 of this Note if such
breach or failure remains uncured for a period of five (5) consecutive days;

 

		(xvii) 	any provision of any Transaction Document (including, without
limitation, the Security Documents) shall at any time for any reason (other than pursuant to the express terms thereof) cease to be valid
and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested by any party
thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental authority having jurisdiction over any
of them, seeking to establish the invalidity or unenforceability thereof, or the Company or any Subsidiary shall deny in writing that
it has any liability or obligation purported to be created under any Transaction Document (including, without limitation, the Security
Documents);

 

		(xviii) 	any Security Document shall for any reason fail or cease to create
a separate valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien (as defined in
the Securities Purchase Agreement) on the Collateral (as defined in the Security Documents) in favor of the Collateral Agent (as defined
in the Securities Purchase Agreement) or any material provision of any Security Document shall at any time for any reason cease to be
valid and binding on or enforceable against the Company or the validity or enforceability thereof shall be contested by any party thereto,
or a proceeding shall be commenced by the Company or any governmental authority having jurisdiction over the Company, seeking to establish
the invalidity or unenforceability thereof; or

 

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		(xix)	any material damage to, or loss, theft or destruction of, any
Collateral, whether or not insured, or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other
casualty which causes, for more than fifteen (15) consecutive days, the cessation or substantial curtailment of revenue producing activities
at any facility of the Company or any Subsidiary, if any such event or circumstance has had, or would reasonably be expected to have,
a material adverse effect on the business, assets, operations (including results thereof), liabilities, condition (including financial
condition) or prospects of the Company and its Subsidiaries, taken as a whole; or

 

		(xx)	any Event of Default (as defined in the Other Notes) occurs with
respect to any Other Notes.

 

		(b)	Notice of an Event of Default; Redemption Right. Upon the
occurrence of an Event of Default with respect to this Note or any Other Note, the Company shall within one (1) Business Day deliver
written notice thereof via facsimile or electronic mail and overnight courier (with next day delivery specified) (an “Event
of Default Notice”) to the Holder. At any time during the period beginning upon the earlier of the Holder’s receipt of
an Event of Default Notice and the Holder becoming aware of an Event of Default and ending on the date that all then continuing Events
of Default are cured, the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof
(the “Event of Default Redemption Notice”) to the Company, which Event of Default Redemption Notice shall indicate
the portion of this Note the Holder is electing to redeem. Each portion of this Note subject to redemption by the Company pursuant to
this Section 4(b) shall be redeemed by the Company at a price equal to the Conversion Amount to be redeemed. Redemptions required
by this Section 4(b) shall be made in accordance with the provisions of Section 11. To the extent redemptions required
by this Section 4(b) are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by the Company,
such redemptions shall be deemed to be voluntary prepayments. Subject to Sections 3(d) and 16, until the entire payment
required to be made under this Section 4(b) (the “Event of Default Redemption Price”) is paid in full, the
Conversion Amount submitted for redemption under this Section 4(b) may be converted, in whole or in part, by the Holder into Common
Stock pursuant to the terms of this Note.

 

		(c)	Mandatory Redemption upon Bankruptcy Event of Default.
Notwithstanding anything to the contrary herein, and notwithstanding any conversion that is then required or in process, upon any Bankruptcy
Event of Default, whether occurring prior to or following the Maturity Date, the Company shall immediately pay to the Holder an amount
in cash representing all outstanding Principal and accrued and unpaid Interest, in addition to any and all other amounts due hereunder,
without the requirement for any notice or demand or other action by the Holder or any other person or entity, provided, that the
Holder may, in its sole discretion, waive such right to receive payment upon a Bankruptcy Event of Default, in whole or in part, and
any such waiver shall not affect any other rights of the Holder hereunder, including any other rights in respect of such Bankruptcy Event
of Default, any right to conversion, and any right to payment of the Event of Default Redemption Price or any other Redemption Price,
as applicable.

 

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(5) RIGHTS UPON FUNDAMENTAL TRANSACTION.

 

		(a)	Notice of a Fundamental Transaction; Assumption. If, at any time when this Note is issued and outstanding
and prior to conversion of all of this Note, the Company shall enter into or be party to a Fundamental Transaction, the Company shall
give the Holder notice of such Fundamental Transaction at least twenty (20) Trading Days but not later than ten (10) Trading Days prior
to the consummation thereof (which requirement, for the avoidance of doubt, may be satisfied by delivery of a Change of Control Notice
pursuant to Section 5(b)). The Company shall not enter into any Fundamental Transaction (other than a Change of Control) in
which the Company is not the Successor Entity unless (i) the Successor Entity shall assume in writing all of the obligations of the Company
under this Note and the other Transaction Documents in accordance with the provisions of this Section 5(a), and (ii) upon
the occurrence of such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after
the date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and shall have the right to exercise every right and power of the Company, and shall assume
all of the obligations of the Company, under this Note and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written
notice to the Company to waive this Section 5(a) to permit the Fundamental Transaction without the assumption of this Note. The
provisions of this Section 5(a) shall apply similarly and equally to successive Fundamental Transactions and, subject to Section 16,
shall be applied without regard to any limitations on the conversion of this Note.

 

		(b)	Notice of a Change of Control; Redemption Right. No sooner than twenty (20) Trading Days nor later
than ten (10) Trading Days prior to the consummation of a Change of Control, but not prior to the public announcement of such Change of
Control, the Company shall deliver written notice thereof via facsimile or electronic mail and overnight courier to the Holder (a “Change
of Control Notice”). At any time during the period beginning after the Holder’s receipt of a Change of Control Notice
or the Holder becoming aware of a Change of Control if a Change of Control Notice is not delivered to the Holder in accordance with the
immediately preceding sentence (as applicable) and ending on twenty (20) Trading Days after the later of (A) the date of consummation
of such Change of Control or (B) the date of receipt of such Change of Control Notice or (C) the date of the announcement of such
Change of Control, the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof (“Change
of Control Redemption Notice”) to the Company, which Change of Control Redemption Notice shall indicate the Conversion Amount
the Holder is electing to redeem. The portion of this Note subject to redemption pursuant to this Section 5(b) shall be redeemed
by the Company in cash at a price equal to the greatest of:

 

		(i)	the product of (w) the Change of Control Redemption Premium multiplied by (y) the Conversion Amount being
redeemed;

 

		(ii)	the product of (x) the Change of Control Redemption Premium multiplied by (y) the product of (A) the Conversion
Amount being redeemed multiplied by (B) the quotient determined by dividing (I) the greatest Closing Sale Price of the shares of Common
Stock during the period beginning on the date immediately preceding the earlier to occur of (1) the consummation of the applicable Change
of Control and (2) the public announcement of such Change of Control and ending on the date the Holder delivers the Change of Control
Redemption Notice by (II) the Conversion Price then in effect; and

 

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		(iii)	the product of (y) the Change of Control Redemption Premium multiplied
by (z) the product of (A) the Conversion Amount being redeemed multiplied by (B) the quotient of (I) the aggregate cash consideration
and the aggregate cash value of any non-cash consideration per share of Common Stock to be paid to the holders of the shares of Common
Stock upon consummation of such Change of Control (any such non-cash consideration constituting publicly-traded securities shall be valued
at the highest of the Closing Sale Price of such securities as of the Trading Day immediately prior to the consummation of such Change
of Control, the Closing Sale Price of such securities on the Trading Day immediately following the public announcement of such proposed
Change of Control and the Closing Sale Price of such securities on the Trading Day immediately prior to the public announcement of such
proposed Change of Control) divided by (II) the Conversion Price then in effect (the greatest amount determined pursuant to clause (i),
(ii) or (iii), the “Change of Control Redemption Price”).

 

Redemptions required by this Section
5(b) shall be made in accordance with the provisions of Section 11 and shall have priority to payments to shareholders
in connection with such Change of Control. To the extent redemptions required by this Section 5(b) are deemed or determined by
a court of competent jurisdiction to be prepayments of this Note by the Company, such redemptions shall be deemed to be voluntary prepayments.
Notwithstanding anything to the contrary in this Section 5(b), but subject to Sections 3(d) and 16, until the
Change of Control Redemption Price is paid in full, the Conversion Amount submitted for redemption under this Section 5(b) may
be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3. In the event of the Company’s redemption
of any portion of this Note under this Section 5(b), the Holder’s damages would be uncertain and difficult to estimate because
of the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment
opportunity for the Holder. Accordingly, any redemption premium due under this Section 5(b) is intended by the parties to be, and
shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty.

 

(6) RIGHTS UPON ISSUANCE OF PURCHASE RIGHTS.
In addition to any adjustments pursuant to Section 7 below, if at any time the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders
of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares
of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility
of this Note and assuming for such purpose that the Note was converted at the Conversion Price as of the applicable record date) immediately
prior to the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, that to the extent that the Holder’s right to participate in any such Purchase Right would result
in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall be entitled to participate in
such Purchase Right to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of Common
Stock as a result of such Purchase Right (and beneficial ownership) to the extent of any such excess) and such Purchase Right to such
extent shall be held in abeyance up to ninety (90) Trading Days (and, if such Purchase Right has an expiration date, maturity date or
other similar provision, such term shall be extended by such number of days held in abeyance, if applicable) for the benefit of the Holder
until the applicable expiration date, maturity date or similar time (as extended pursuant to the foregoing), until such time or times
during such extended period, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold
on such initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance (and, if such Purchase Right has an expiration
date, maturity date or other similar provision, such term shall be extended by such number of days held in abeyance, if applicable)) to
the same extent as if there had been no such limitation). The Holder shall be deemed to have waived the right to receive any such Purchase
Rights that remain held in abeyance at the end of such abeyance period if not granted prior to such time.

 

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(7) RIGHTS UPON ISSUANCE OF OTHER SECURITIES.

 

		(a)	Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company
at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, stock combination, recapitalization or other
similar transaction) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price
in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time on or after the Issuance Date
combines (by any stock split, stock dividend, stock combination, recapitalization or other similar transaction) one or more classes of
its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination
will be proportionately increased. Any adjustment pursuant to this Section 7(a) shall become effective immediately after the
effective date of such subdivision or combination. If any event requiring an adjustment under this Section 7(a) occurs during
the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion Price shall be adjusted appropriately
to reflect such event.

 

		(b)	Calculations. All calculations under this Section 7 shall be made by rounding to the nearest
cent or the nearest 1/100 of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include
shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale
of Common Stock.

 

		(c)	Voluntary Adjustment by Company. Subject to the rules and regulations of the Principal Market,
the Company may at any time during the term of this Note, with the prior written consent of the Required Holders, reduce the then current
Conversion Price of each of the Notes to any amount and for any period of time deemed appropriate by the board of directors of the Company.

 

(8) REDEMPTIONS AT THE COMPANY’S ELECTION.

 

		(a)	Company Optional Redemption. At any time beginning on or after the occurrence of both (i) the Company’s
having raised $50.0 million in net cash proceeds in a financing transaction (including the issuance of debt or equity securities) and
(ii) the Common Stock having traded at or above a price in excess of 500% of the Conversion Price then in effect for thirty (30) consecutive
Trading Days, the Company shall have the right to redeem all, or any part, of the Conversion Amount then remaining under this Note (the
“Company Optional Redemption Amount”) on the Company Optional Redemption Date (each as defined below) (a “Company
Optional Redemption”). The portion of this Note subject to redemption pursuant to this Section 8(a) shall be redeemed
by the Company in cash at a price (the “Company Optional Redemption Price”) equal to 100% of the Conversion Amount
being redeemed as of the Company Optional Redemption Date. The Company may exercise its right to require redemption under this Section
8(a) by delivering a written notice thereof by facsimile or electronic mail and overnight courier to all, but not less than all, of
the holders of Notes (the “Company Optional Redemption Notice” and the date all of the holders of Notes received such
notice is referred to as the “Company Optional Redemption Notice Date”). The Company may deliver only one Company Optional
Redemption Notice hereunder in any given twenty (20) Trading Day period and each Company Optional Redemption Notice shall be irrevocable.
The Company Optional Redemption Notice shall (x) state the date on which the Company Optional Redemption shall occur (the “Company
Optional Redemption Date”) which date shall not be less than ten (10) Trading Days nor more than twenty (20) Trading Days following
the Company Optional Redemption Notice Date, and (y) state the aggregate Conversion Amount of the Notes which is being redeemed in such
Company Optional Redemption from the Holder and all of the other holders of the Notes pursuant to this Section 8(a) (and analogous
provisions under the Other Notes) on the Company Optional Redemption Date. Notwithstanding anything herein to the contrary, at any time
prior to the date the Company Optional Redemption Price is paid, in full, the Company Optional Redemption Amount may be converted, in
whole or in part, by the Holder into shares of Common Stock pursuant to Section 3. All Conversion Amounts converted by the
Holder after the Company Optional Redemption Notice Date shall reduce the Company Optional Redemption Amount of this Note required to
be redeemed on the Company Optional Redemption Date. Redemptions made pursuant to this Section 8(a) shall be made in accordance
with Section 11.

 

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		(b)	Pro Rata Redemption Requirement. If the Company elects
to cause a Company Optional Redemption of this Note pursuant to Section 8(a), then it must simultaneously take the same action
with respect to all of the Other Notes.

 

(9) NONCIRCUMVENTION. The Company hereby
covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation (as defined in the Securities Purchase
Agreement), Bylaws (as defined in the Securities Purchase Agreement) or through any reorganization, transfer of assets, consolidation,
merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and
take all action as may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing
or any other provision of this Note or the other Transaction Documents, the Company (a) shall not increase the par value of any shares
of Common Stock receivable upon conversion of this Note above the Conversion Price then in effect, and (b) shall take all such actions
as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common
Stock upon the conversion of this Note.

 

(10) RESERVATION OF AUTHORIZED SHARES.
So long as any Notes remain outstanding, the Company shall at all times reserve the Required Reserve Amount (as defined in the Securities
Purchase Agreement). The Required Reserve Amount (including, without limitation, each increase in the number of shares so reserved) shall
be allocated pro rata among the holders of the Notes based on the original principal amount of the Notes held by each holder on the Closing
Date or increase in the number of reserved shares, as the case may be (the “Authorized Share Allocation”). In the event
that a holder shall sell or otherwise transfer any of such holder’s Notes, each transferee shall be allocated a pro rata portion
of such holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any Person that ceases to hold
any Notes shall be allocated to the remaining holders of Notes, pro rata based on the principal amount of the Notes then held by such
holders.

 

(11) REDEMPTIONS.

 

		(a)	Mechanics. The Company shall deliver the applicable Event of Default Redemption Price to the Holder
in cash within five (5) Business Days after the Company’s receipt of the Holder’s Event of Default Redemption Notice. If the
Holder has submitted a Change of Control Redemption Notice in accordance with Section 5(b), the Company shall deliver the applicable
Change of Control Redemption Price to the Holder in cash concurrently with the consummation of such Change of Control if such notice is
received prior to the consummation of such Change of Control and within five (5) Business Days after the Company’s receipt of such
notice otherwise. The Company shall deliver the applicable Company Optional Redemption Price to the Holder in cash on the applicable Company
Optional Redemption Date. Notwithstanding anything herein to the contrary, in connection with any redemption hereunder at a time the Holder
is entitled to receive a cash payment under any of the other Transaction Documents, at the option of the Holder delivered in writing to
the Company, the applicable Redemption Price hereunder shall be increased by the amount of such cash payment owed to the Holder under
such other Transaction Document and, upon payment in full or conversion in accordance herewith, shall satisfy the Company’s payment
obligation under such other Transaction Document. In the event of a redemption of less than all of the Conversion Amount of this Note,
the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with Section 19(d)) representing
the outstanding Principal which has not been redeemed. In the event that the Company does not pay the applicable Redemption Price to the
Holder within the time period required, at any time thereafter and until the Company pays such unpaid Redemption Price in full, the Holder
shall have the option, in lieu of redemption, to require the Company to promptly return to the Holder all or any portion of this Note
representing the Conversion Amount that was submitted for redemption and for which the applicable Redemption Price has not been paid.
Upon the Company’s receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion
Amount, (y) the Company shall immediately return this Note, or issue a new Note (in accordance with Section 19(d)), to the Holder,
and in each case the principal amount of this Note or such new Note (as the case may be) shall be increased by an amount equal to the
difference between (1) the applicable Redemption Price (as the case may be, and as adjusted pursuant to this Section 11, if applicable)
minus (2) the Principal portion of the Conversion Amount submitted for redemption and (z) the Conversion Price of this Note or such new
Notes (as the case may be) shall be automatically adjusted with respect to each conversion effected thereafter by the Holder to the lowest
of (A) the Conversion Price as in effect on the date on which the applicable Redemption Notice is voided, (B) 75% of the lowest Closing
Bid Price of the Common Stock during the period beginning on and including the date on which the applicable Redemption Notice is delivered
to the Company and ending on and including the date on which the applicable Redemption Notice is voided and (C) 75% of the quotient of
(I) the sum of the five (5) lowest VWAPs of the Common Stock during the twenty (20) consecutive Trading Day period ending and including
the applicable Conversion Date divided by (II) five (5) (it being understood and agreed that all such determinations shall be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period).

 

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		(b)	Redemption by Other Holders. Upon the Company’s receipt
of notice from any of the holders of the Other Notes for redemption or repayment as a result of an event or occurrence substantially
similar to the events or occurrences described in Section 4(b) or Section 5(b) (each, an “Other Redemption Notice”),
the Company shall immediately, but no later than one (1) Business Day of its receipt thereof, forward to the Holder by facsimile or electronic
mail a copy of such notice. If the Company receives a Redemption Notice and one or more Other Redemption Notices, during the seven (7)
Business Day period beginning on and including the date which is two (2) Business Days prior to the Company’s receipt of the Holder’s
applicable Redemption Notice and ending on and including the date which is two (2) Business Days after the Company’s receipt of
the Holder’s applicable Redemption Notice and the Company is unable to redeem all principal, interest and other amounts designated
in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day period, then the Company shall
redeem a pro rata amount from each holder of the Notes (including the Holder) based on the principal amount of the Notes submitted for
redemption pursuant to such Redemption Notice and such Other Redemption Notices received by the Company during such seven (7) Business
Day period.

 

(12) VOTING RIGHTS. The Holder shall have
no voting rights as the holder of this Note, except as required by law (including, without limitation, the General Corporation Law of
the State of Delaware) and as expressly provided in this Note.

 

(13) COVENANTS. Until all of the Notes
have been converted, redeemed or otherwise satisfied in accordance with their terms:

 

		(a)	Rank. All payments due under this Note (i) shall rank pari
passu with all Other Notes and (ii) shall be senior to all other Indebtedness of the Company and its Subsidiaries (other than Permitted
Indebtedness secured by Permitted Liens).

 

		(b)	Incurrence of Indebtedness. The Company shall not, and
the Company shall cause each of its Subsidiaries to not, directly or indirectly, incur or guarantee, assume or suffer to exist any Indebtedness
(other than (i) the Indebtedness evidenced by this Note and the Other Notes and (ii) other Permitted Indebtedness).

 

		(c)	Existence of Liens. The Company shall not, and the Company
shall cause each of its Subsidiaries to not, directly or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by the Company or any
of its Subsidiaries (collectively, “Liens”) other than Permitted Liens.

 

		(d)	Restricted Payments. The Company shall not, and the Company
shall cause each of its Subsidiaries to not, directly or indirectly, redeem, defease, repurchase, repay or make any payments in respect
of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private
transactions or otherwise), all or any portion of any Indebtedness (other than Permitted LOC Debt and the Notes) whether by way of payment
in respect of principal of (or premium, if any) or interest on, such Indebtedness if at the time such payment is due or is otherwise
made or, after giving effect to such payment, (i) an event constituting an Event of Default has occurred and is continuing or (ii) an
event that with the passage of time and without being cured would constitute an Event of Default has occurred and is continuing.

 

		(e)	Restriction on Redemption and Cash Dividends. Except with
respect to the Securities (as defined in the Securities Purchase Agreement), the Company shall not, and the Company shall cause each
of its Subsidiaries to not, directly or indirectly, redeem, repurchase or declare or pay any cash dividend or distribution on any of
its capital stock (other than to the Company or any of its Subsidiaries).

 

		(f)	Restriction of Acquisitions and Investments. The Company
shall not, and shall cause each of its Subsidiaries not to, engage in any acquisition or investment transactions (whether through the
acquisition of assets, the purchase of equity interests, merger, share exchange or otherwise) in which the total cash portion of the
purchase price paid by the Company or any of its Subsidiaries is greater than $5.0 million.

 

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		(g)	Restriction on Transfer of Assets. The Company shall not,
and the Company shall cause each of its Subsidiaries to not, directly or indirectly, sell, lease, license, assign, transfer, spin-off,
split-off, close, convey or otherwise dispose of any assets or rights of the Company or any Subsidiary owned or hereafter acquired whether
in a single transaction or a series of related transactions, other than (i) sales, leases, licenses, assignments, transfers, conveyances
and other dispositions of such assets or rights by the Company and its Subsidiaries in the ordinary course of business consistent with
its past practice, (ii) sales of inventory and product in the ordinary course of business, and (iii) sales, transfers, conveyances and
dispositions for cash of the items described on Exhibit III hereto.

 

		(h)	Maturity of Indebtedness. The Company shall not, and the
Company shall cause each of its Subsidiaries to not, directly or indirectly, permit any Indebtedness (other than Permitted LOC Debt and
Indebtedness under the Stern Amended and Restated Convertible Note, dated February 14, 2020, as amended) of the Company or any of
its Subsidiaries to mature or accelerate prior to the Maturity Date.

 

		(i)	Change in Nature of Business. The Company shall not, and the Company shall cause each of the Guarantors
to not, directly or indirectly, engage in any material line of business substantially different from those lines of business conducted
by or publicly contemplated to be conducted by the Company and each of the Guarantors on the Issuance Date or any business substantially
related or incidental thereto (except as contemplated by Section 13(g) and it being agreed and understood that the engagement
by the Company or any of the Guarantors in any business in respect of a new identity verification software product or service is not substantially
different from the lines of business conducted by the Company and the Guarantors as of the Issuance Date). The Company shall not, and
the Company shall cause each of the Guarantors to not, directly or indirectly, modify its or their corporate structure or purpose.

 

		(j)	Preservation of Existence, Etc. The Company shall maintain and preserve, and cause each of the
Guarantors (as defined in the Security Agreement) to maintain and preserve, its existence and material rights and privileges, and become
or remain, and cause each of the Guarantors to become or remain, duly qualified and in good standing in each jurisdiction in which the
character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary.

 

		(k)	Maintenance of Properties, Etc. The Company shall maintain and preserve, and cause each of the
Guarantors to maintain and preserve, all of its material properties which are necessary or useful in the proper conduct of its business
in good working order and condition, ordinary wear and tear excepted, and comply, and cause each of the Guarantors to comply, at all times
with the provisions of all material leases to which it is a party as lessee or under which it occupies property, so as to prevent any
material loss or material forfeiture thereof or thereunder.

 

		(l)	Maintenance of Intellectual Property. The Company will, and will cause each of its Subsidiaries
to (except as contemplated by Section 13(g)), take all action necessary or advisable to maintain all of the Intellectual Property
Rights (as defined in the Securities Purchase Agreement) of the Company and/or any of its Subsidiaries (except as contemplated by Section
13(g)) that are necessary or material to the conduct of its business in full force and effect.

 

		(m)	Maintenance of Insurance. The Company shall maintain, and
cause each of its Subsidiaries to maintain (except as contemplated by Section 13(g)), insurance with responsible and reputable
insurance companies or associations (including, without limitation, comprehensive general liability, cybersecurity, hazard and business
interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such amounts
and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally
in accordance with sound business practice by companies in similar businesses similarly situated.

 

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		(n)	Transactions with Affiliates. The Company shall not, nor
shall it permit any of the Guarantors to, enter into, renew, extend or be a party to, any transaction or series of related transactions
(including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets of any kind or the rendering of
services of any kind) with any affiliate other than as contemplated by the Transaction Documents, except (i) transactions between or
among the Company and its Subsidiaries and (ii) transactions in the ordinary course of business in a manner and to an extent consistent
with past practice and necessary or desirable for the prudent operation of its business, for fair consideration and on terms no less
favorable to it or its Subsidiaries than would be obtainable in a comparable arm’s length transaction with a Person that is not
an affiliate thereof.

 

		(o)	Restricted Issuances. The Company shall not, directly or
indirectly, without the prior written consent of the holders of a majority in aggregate principal amount of the Notes then outstanding,
(i) issue any Notes (other than as contemplated by the Securities Purchase Agreement and the Notes) or (ii) issue any other securities
that would cause a breach or default under the Notes.

 

		(p)	[Reserved.]

 

		(q)	Change in Collateral; Collateral Records. The Company shall (i) give the Collateral Agent not less
than twenty (20) days’ prior written notice of any change in the location of any Collateral (as defined in the Security Documents),
other than to locations set forth in the perfection certificate delivered in connection with the Securities Purchase Agreement and with
respect to which the Collateral Agent has filed financing statements and otherwise fully perfected its Liens thereon, (ii) advise
the Collateral Agent promptly, in sufficient detail, of any material adverse change relating to the type, quantity or quality of the Collateral
or the Lien granted thereon and (iii) execute and deliver, and cause each of the Guarantors to execute and deliver, to the Collateral
Agent for the benefit of the Holder and holders of the Other Notes from time to time, solely for the Collateral Agent’s convenience
in maintaining a record of Collateral, such written statements and schedules as the Collateral Agent may reasonably require, designating,
identifying or describing the Collateral.

 

(14) SECURITY. This Note and the Other
Notes are secured to the extent and in the manner set forth in the Transaction Documents (including, without limitation, the Security
Agreement).

 

(15) DISTRIBUTION OF ASSETS. In addition
to any adjustments pursuant to Section 7, if the Company shall declare or make any dividend or other distributions of its assets
(or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise (including
without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (the “Distributions”), then the Holder
will be entitled to such Distributions as if the Holder had held the number of shares of Common Stock acquirable upon complete conversion
of this Note (without taking into account any limitations or restrictions on the convertibility of this Note and assuming for such purpose
that the Note was converted at the Conversion Price as of the applicable record date) immediately prior to the date on which a record
is taken for such Distribution or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined
for such Distributions (provided, however, that to the extent that the Holder’s right to participate in any such Distribution
would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall be entitled to participate
in such Distribution to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of Common
Stock as a result of such Distribution (and beneficial ownership) to the extent of any such excess) and the portion of such Distribution
shall be held in abeyance for ninety (90) Trading Days for the benefit of the Holder until such time or times during such abeyance period,
if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which
time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution or on
any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation). The Holder shall
be deemed to have waived the right to receive any such Distributions that remain held in abeyance at the end of such abeyance period if
not granted prior to such time.

 

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(16) NASDAQ MATTERS.

 

		(a)	No Issuance of More than 19.99% of Outstanding Shares of Common
Stock. Notwithstanding anything to the contrary contained in this Note or any of the other Transaction Documents, unless and until
the Company obtains (i) shareholder approval to issue 20% or more of the Common Stock outstanding at the time the Note is originally
issued in accordance with Rule 5635(d) of The Nasdaq Stock Market (or any successor to such rule) or (ii) a written opinion from outside
counsel to the Company that such approval is not required (which such opinion shall be reasonably satisfactory to the Holder), if the
Company is required to deliver shares of Common Stock to the Holder pursuant to this Note or any of the other Transactions Documents
(upon conversion, redemption, as payment of interest or otherwise) and such number of shares, in the aggregate with all other shares
of Common Stock previously delivered by the Company to (x) all Holders (including the Holder) pursuant to the Notes and the other Transaction
Documents and (y) the purchasers of any other securities that are required to be aggregated for purposes of Rule 5635(d) of The Nasdaq
Stock Market with the transactions contemplated hereby, would exceed 19.99% of the Common Stock outstanding on the date that the Notes
are first issued, the Company will pay to such Holder the value of any such shares that are subject to the foregoing 19.99% limitation
in cash (with the value of each such excess share equal to the arithmetic average of the VWAPs of the Common Stock for each of the ten
Trading Days immediately preceding the date any such payment is due). The Company will use its best efforts to ensure that each Holder
is treated on a ratable and proportionate basis with all other Holders to the extent the Company is required to pay any amounts in cash
pursuant to this Section 16(b). Without limiting the effect of the foregoing, so long as the Company complies with its obligations
under this Section 16(a), it shall not be required to seek shareholder approval pursuant to Rule 5635(d) of The Nasdaq Stock Market.

 

		(b)	Limitation on Issuance of Shares to Officers, Directors and
Related Entities. Notwithstanding anything to the contrary contained in this Note or any of the other Transaction Documents, if the
Company is required to issue shares of Common Stock to a Holder who is an officer or director of the Company (or an entity affiliated
with any such officer or director) pursuant to this Note or any of the other Transactions Documents (upon conversion, redemption, as
payment of interest or otherwise) and such issuance would be (i) subject to Rule 5635(c) of The Nasdaq Stock Market (or any successor
to such rule) and (ii) deemed to be at a price less than $2.99 per share, then the number of shares to be issued to such Holder upon
any such conversion, redemption, payment of interest or other issuance shall be recalculated to ensure that the value of any such shares
is at least equal to $2.99 per share and shall otherwise be in conformity with exclusion from such Rule 5635(c) and the interpretations
of The Nasdaq Stock Market related thereto. Each Holder who is an officer or director of the Company (or an entity affiliated with any
such officer or director) acknowledges and agrees that the operation of this Section 16(b) may result in the issuance of fewer
shares to such officer or director (or entity affiliated with any such officer of director) than to a Holder who is not subject to this
Section 16(b).

 

(17) AMENDING THE TERMS OF THIS NOTE. The
prior written consent of the Required Holders and the Company shall be required for any change, waiver or amendment to this Note, except
for Sections 3(d) and 16, which may not be amended, modified or waived by the parties hereto. Any change, waiver or amendment
so approved shall be binding upon all existing and future holders of this Note and any Other Notes; provided, however, that
no such change, waiver or amendment, as applied to any of the Notes held by any particular holder of Notes, shall, without the written
consent of that particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid Interest, or extend the
Maturity Date, of the Notes, (ii) disproportionally and adversely affect any of such holder’s rights under the Notes as compared
to the other holders of Notes; or (iii) modify any of the provisions of, or impair the right of such holder under, this Section 17.

 

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(18) TRANSFER. This Note and any shares
of Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by the Holder without the consent of
the Company, subject only to the provisions of Section 2(g) of the Securities Purchase Agreement).

 

(19) REISSUANCE OF THIS NOTE.

 

		(a)	Transfer. If this Note is to be transferred, the Holder
shall surrender this Note to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note
(in accordance with Section 19(d)), registered as the Holder may request, representing the outstanding Principal being transferred
by the Holder and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 19(d))
to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this Note,
acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following conversion or redemption of any portion
of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note.

 

		(b)	Lost, Stolen or Mutilated Note. Upon receipt by the Company
of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note (as to which a written
certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction,
of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon
surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section
19(d)) representing the outstanding Principal.

 

		(c)	Note Exchangeable for Different Denominations. This Note
is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Note or Notes (in accordance
with Section 19(d) and in principal amounts of at least $1,000) representing in the aggregate the outstanding Principal of this
Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder at the time of
such surrender.

 

		(d)	Issuance of New Notes. Whenever the Company is required
to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall represent,
as indicated on the face of such new Note, the Principal remaining outstanding (or in the case of a new Note being issued pursuant to
Section 19(a) or Section 19(c), the Principal designated by the Holder which, when added to the principal represented by
the other new Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding under this Note immediately
prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such new Note, which is the same
as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid
Interest, from the Issuance Date.

 

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(20) REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative and in addition to all other remedies available
under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other
injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual and consequential damages for any failure
by the Company to comply with the terms of this Note. No failure on the part of the Holder to exercise, and no delay in exercising, any
right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Holder of any right,
power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. In addition, the exercise
of any right or remedy of the Holder at law or equity or under this Note or any of the documents shall not be deemed to be an election
of Holder’s rights or remedies under such documents or at law or equity. The Company covenants to the Holder that there shall be
no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with
respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall
not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company
acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for
any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder
shall be entitled, in addition to all other available remedies, to specific performance and/or temporary, preliminary and permanent injunctive
or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and
without posting a bond or other security. The Company shall provide all information and documentation to the Holder that is reasonably
requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Note (including,
without limitation, compliance with Section 7).

 

(21) PAYMENT OF COLLECTION, ENFORCEMENT AND
OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through
any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions of this
Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors’
rights and involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement
or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’
fees and disbursements. The Company expressly acknowledges and agrees that no amounts due under this Note shall be affected, or limited,
by the fact that the purchase price paid for this Note was less than the Original Principal Amount hereof.

 

(22) CONSTRUCTION; HEADINGS. This Note
shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed against any such Person as the
drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of,
this Note. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter,
singular and plural forms thereof. The terms “including,” “includes,” “include” and words of like
import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Note instead of just the provision in which they are found. Unless
expressly indicated otherwise, all section references are to sections of this Note. Terms used in this Note and not otherwise defined
herein, but defined in the other Transaction Documents, shall have the meanings ascribed to such terms on the Closing Date in such other
Transaction Documents unless otherwise consented to in writing by the Holder.

 

(23) FAILURE OR INDULGENCE NOT WAIVER.
No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other
right, power or privilege. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving
party. Notwithstanding the foregoing, nothing contained in this Section 23 shall permit any waiver of any provision of Section
3(d) or Section 16.

 

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(24) DISPUTE RESOLUTION.

 

		(a)	Submission to Dispute Resolution.

 

		(i)	In the case of a dispute relating to a Closing Bid Price, a Closing
Sale Price, a Conversion Price, a VWAP or a fair market value or the arithmetic calculation of a Conversion Rate, or the applicable Redemption
Price (as the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company
or the Holder (as the case may be) shall submit the dispute to the other party via facsimile or electronic mail (A) if by the Company,
within two (2) Business Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder at any time
after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly resolve
such dispute relating to such Closing Bid Price, such Closing Sale Price, such Conversion Price, such VWAP or such fair market value,
or the arithmetic calculation of such Conversion Rate or such applicable Redemption Price (as the case may be), at any time after the
fifth (5th) Business Day following such initial notice by the Company or the Holder (as the case may be) of such dispute to the Company
or the Holder (as the case may be), then the Holder may, at its sole option, select an independent, reputable investment bank reasonably
acceptable to the Company to resolve such dispute.

 

		(ii)	The Holder and the Company shall each deliver to such investment
bank (A) a copy of the initial dispute submission so delivered in accordance with the first sentence of this Section 24 and (B)
written documentation supporting its position with respect to such dispute, in each case, no later than 5:00 p.m. (New York time) by
the fifth (5th) Business Day immediately following the date on which the Holder selected such investment bank (the “Dispute
Submission Deadline”) (the documents referred to in the immediately preceding clauses (A) and (B) are collectively referred
to herein as the “Required Dispute Documentation”) (it being understood and agreed that if either the Holder or the
Company fails to so deliver all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to
so submit all of the Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit
any written documentation or other support to such investment bank with respect to such dispute and such investment bank shall resolve
such dispute based solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission
Deadline). Unless otherwise agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither
the Company nor the Holder shall be entitled to deliver or submit any written documentation or other support to such investment bank
in connection with such dispute (other than the Required Dispute Documentation).

 

		(iii)	The Company and the Holder shall cause such investment bank to
determine the resolution of such dispute and notify the Company and the Holder of such resolution no later than ten (10) Business Days
immediately following the Dispute Submission Deadline. The fees and expenses of such investment bank shall be borne solely by the Company
(unless such investment bank determines that the Holder’s claim in the dispute is without any merit and was not made in good faith,
in which case such fees and expenses of such investment bank shall be borne by the Holder), and such investment bank’s resolution
of such dispute shall be final and binding upon all parties absent manifest error.

 

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		(b)	Miscellaneous. The Company expressly acknowledges and agrees
that (i) this Section 24 constitutes an agreement to arbitrate between the Company and the Holder (and constitutes an arbitration
agreement) under § 7501, et seq. of the New York Civil Practice Law and Rules (“CPLR”) and that the Holder is
authorized to apply for an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section
24, (ii) the terms of this Note and each other applicable Transaction Document shall serve as the basis for the selected investment
bank’s resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make
all findings, determinations and the like that such investment bank determines are required to be made by such investment bank in connection
with its resolution of such dispute and in resolving such dispute such investment bank shall apply such findings, determinations and
the like to the terms of this Note and any other applicable Transaction Documents, (iii) the Holder (and only the Holder), in its sole
discretion, shall have the right to submit any dispute described in this Section 24 to any state or federal court sitting in The
City of New York, Borough of Manhattan in lieu of utilizing the procedures set forth in this Section 24 and (iv) nothing in this
Section 24 shall limit the Holder from obtaining any injunctive relief or other equitable remedies (including, without limitation,
with respect to any matters described in this Section 24).

 

(25) NOTICES; CURRENCY; PAYMENTS.

 

		(a)	Notices. Whenever notice is required to be given under
this Note, unless otherwise provided herein, such notice shall be given in accordance with Section 9(f) of the Securities Purchase
Agreement.

 

		(b)	The Company shall provide the Holder with prompt written notice
of all actions taken pursuant to this Note, including in reasonable detail a description of such action and the reason therefore. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the
Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least ten (10) Trading
days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon
the Common Stock, (B) with respect to any grant, issuances, or sales of any Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property to holders of shares of Common Stock or (C) for determining rights to vote with respect to any
Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior
to or in conjunction with such notice being provided to the Holder.

 

		(c)	Currency. All dollar amounts referred to in this Note are
in United States Dollars (“U.S. Dollars”), and all amounts owing under this Note shall be paid in U.S. Dollars. All
amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange
Rate on the date of calculation. “Exchange Rate” means, in relation to any amount of currency to be converted into
U.S. Dollars pursuant to this Note, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation
(it being understood and agreed that where an amount is calculated with reference to, or over, a period of time, the date of calculation
shall be the final date of such period of time).

 

		(d)	Payments. Whenever any payment of cash is to be made by
the Company to any Person pursuant to this Note, unless otherwise expressly set forth herein, such payment shall be made in lawful money
of the United States of America by a certified check drawn on the account of the Company and sent via overnight courier service to such
Person at such address as previously provided to the Company in writing (which address, in the case of each of the Buyers, shall initially
be as set forth on the Schedule of Buyers attached to the Securities Purchase Agreement), provided that the Holder may elect to receive
a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such
request and the Holder’s wire transfer instructions. Whenever any amount expressed to be due by the terms of this Note is due on
any day which is not a Business Day, the same shall instead be due on the next succeeding day that is a Business Day.

 

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(26) CANCELLATION. After all Principal
and accrued Interest and other amounts at any time owed on this Note have been paid in full, this Note shall automatically be deemed canceled,
shall be surrendered to the Company for cancellation and shall not be reissued.

 

(27) WAIVER OF NOTICE. To the extent permitted
by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all other demands and notices in connection with
the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement.

 

(28) GOVERNING LAW. This Note shall be
construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of
this Note shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Except as otherwise required by Section 24 above, each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding
is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein
(i) shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other
jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral or any other security for such
obligations, or to enforce a judgment or other court ruling in favor of the Holder or (ii) shall limit, or shall be deemed or construed
to limit, any provision of Section 24. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

(29) SEVERABILITY. If any provision of
this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision
that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be
valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions
of this Note so long as this Note as so modified continues to express, without material change, the original intentions of the parties
as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially
impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise
be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable
provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

(30) MAXIMUM PAYMENTS. Without limiting
Section 9(d) of the Securities Purchase Agreement, nothing contained herein shall be deemed to establish or require the payment
of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required
to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited
against amounts owed by the Company to the Holder and thus refunded to the Company.

 

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(31) CERTAIN DEFINITIONS. For purposes
of this Note, the following terms shall have the following meanings:

 

		(a)	“Affiliate” means, with respect to any Person,
any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person, it being understood
for purposes of this definition that “control” of a Person means the power directly or indirectly either to vote 10% or more
of the stock having ordinary voting power for the election of directors of such Person or direct or cause the direction of the management
and policies of such Person whether by contract or otherwise.

 

		(b)	“Attribution Parties” means, collectively,
the following Persons and entities: (i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or
from time to time after the Issuance Date, directly or indirectly managed or advised by the Holder’s investment manager or any
of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting
or who could be deemed to be acting as a Group together with the Holder or any of the foregoing, and (iv) any other Persons whose beneficial
ownership of the Company’s Common Stock would or could be aggregated with the Holder’s and the other Attribution Parties
for purposes of Section 13(d) of the Exchange Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and
all other Attribution Parties to the Maximum Percentage.

 

		(c)	“Bloomberg” means Bloomberg, L.P.

 

		(d)	“Business Day” means any day other than Saturday,
Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided,
however, that, for the avoidance of doubt, commercial banks shall not be deemed to be authorized or required by law to remain
closed due to “stay at home,” “shelter-in-place,” “non-essential employee” or any other similar orders
or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic
funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers
on such day.

 

		(e)	“Change of Control” means any Fundamental Transaction
other than (i) any merger of the Company or any of its, direct or indirect, wholly-owned Subsidiaries with or into the Company or any
such direct or indirect, wholly-owned Subsidiary, (ii) any reorganization, recapitalization or reclassification of the shares of Common
Stock in which holders of the Company’s voting power immediately prior to such reorganization, recapitalization or reclassification
continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and, directly or indirectly,
are, in all material respects, the holders of all or substantially all of the voting power of the surviving entity (or entities with
the authority or voting power to elect the members of the board of directors (or their equivalent if other than a corporation) of such
entity or entities) after such reorganization, recapitalization or reclassification, or (iii) pursuant to a migratory merger effected
solely for the purpose of changing the jurisdiction of incorporation of the Company or any of its Subsidiaries.

 

		(f)	“Change of Control Redemption Premium” means
120%.

 

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		(g)	“Closing Bid Price” and “Closing Sale
Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such
security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis
and does not designate the closing bid price or the closing trade price (as the case may be) then the last bid price or last trade price,
respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the
principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such
security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or
if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter
market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price,
respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market
makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing
Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing
Bid Price or the Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined
by the Company and the Required Holders. If the Company and the Required Holders are unable to agree upon the fair market value of such
security, then such dispute shall be resolved in accordance with the procedures in Section 24. All such determinations shall be
appropriately adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during
such period.

 

		(h)	“Closing Date” shall have the meaning set forth
in the Securities Purchase Agreement, which date is the date the Company initially issued Notes pursuant to the terms of the Securities
Purchase Agreement.

 

		(i)	“Common Stock” means (i) the Company’s
shares of common stock, $0.0001 par value per share, and (ii) any capital stock into which such common stock shall have been changed
or any share capital resulting from a reclassification of such common stock.

 

		(j)	“Convertible Securities” means any stock or
other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable
or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

 

		(k)	“Current Subsidiary” means any Person in which
the Company on the Issuance Date, directly or indirectly, (i) owns at least 25% of the outstanding capital stock or holds at least 25%
of the outstanding equity or similar interest of such Person or (ii) controls the business, operations or administration of such Person,
and all of the foregoing, collectively, “Current Subsidiaries”.

 

		(l)	“Eligible Market” means The New York Stock
Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Principal Market.

 

		(m)	“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder.

 

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		(n)	“Fundamental Transaction” means (A) that the
Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions,
(i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Subject Entity, or (ii) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company or any of its “significant
subsidiaries” (as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more
Subject Entities to make, or allow the Company to be subject to or have its Common Stock be subject to or party to one or more Subject
Entities making, a purchase, tender or exchange offer that is accepted by the holders of at least either (x) 50% of the outstanding shares
of Common Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities
making or party to, or Affiliated with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding;
or (z) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity
making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under
the Exchange Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement or
other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with
one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of
the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of
Common Stock held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock
purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject
Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of at least 50% of the outstanding
shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company shall, directly or indirectly,
including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually or
the Subject Entities in the aggregate to be or become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction
in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme
of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50%
of the aggregate ordinary voting power represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary
voting power represented by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Note calculated
as if any shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary
voting power represented by issued and outstanding shares of Common Stock or other equity securities of the Company sufficient to allow
such Subject Entities to effect a statutory short form merger or other transaction requiring other shareholders of the Company to surrender
their shares of Common Stock without approval of the shareholders of the Company or (C) directly or indirectly, including through subsidiaries,
Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction
structured in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct
this definition or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument
or transaction.

 

		(o)	“GAAP” means United States generally accepted
accounting principles, consistently applied.

 

		(p)	“Group” means a “group” as that
term is used in Section 13(d) of the Exchange Act and as defined in Rule 13d-5 thereunder.

 

		(q)	“Indebtedness” shall have the meaning ascribed
to such term in the Securities Purchase Agreement.

 

		(r)	“Interest Date” means March 31, June 30, September
30, and December 31, of each year commencing June 30, 2022.

 

    25

     

    

 

		(s)	“Maturity Date” shall mean March 31, 2025.
Notwithstanding the foregoing, the Maturity Date may be extended at the option of the Holder (i) in the event that, and for so long as,
an Event of Default shall have occurred and be continuing or any event shall have occurred and be continuing that with the passage of
time and the failure to cure would result in an Event of Default or (ii) through the date that is twenty (20) Business Days after
the consummation of a Fundamental Transaction in the event that a Fundamental Transaction is publicly announced or a Change of Control
Notice is delivered prior to the Maturity Date; provided, however, that if a Holder elects to convert some or all of this
Note pursuant to Section 3 hereof, and the Conversion Amount would be limited pursuant to Section 3(d) or Section 16(a)
hereunder, the Maturity Date shall automatically be extended until such time as such provision shall not limit the conversion of
this Note.

 

		(t)	“New Subsidiary” means, as of any date of determination,
any Person (other than an Excluded Subsidiary (as defined in the Security Agreement)) in which the Company after the Issuance Date, directly
or indirectly, (i) owns at least 25% of the outstanding capital stock or holds at least 25% of the outstanding equity or similar interest
of such Person or (ii) controls the business, operations or administration of such Person, and all of the foregoing, collectively, “New
Subsidiaries”.

 

		(u)	“Options” means any rights, warrants or options
to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

		(v)	“Parent Entity” of a Person means an entity
that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed
on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public
market capitalization as of the date of consummation of the Fundamental Transaction.

 

		(w)	“Permitted Indebtedness” means:

 

		(i)	Indebtedness evidenced by this Note and the Other Notes;

 

		(ii)	Indebtedness set forth on Schedule 3(n) to the Securities Purchase
Agreement, as in effect as of the Issuance Date;

 

		(iii)	Indebtedness secured by Permitted Liens or unsecured but as described
in clauses (iv) and (vi) of the definition of Permitted Liens; and

 

		(iv)	other Indebtedness consisting of a revolving or line of credit
facility or facilities in an aggregate amount not to exceed $10.0 million that may rank senior to the obligations owing with respect
to the Notes (any such Indebtedness, the “Permitted LOC Debt”); provided, that no Default or Event of Default
shall exist hereunder at the time of incurrence of such Permitted LOC Debt or would result therefrom.

 

    26

     

    

 

		(x)	“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 (A) upon or in any equipment acquired or held by the Company
or any of its Subsidiaries to secure the purchase price of such equipment or Indebtedness incurred solely for the purpose of financing
the acquisition or lease of such equipment, or (B) existing on such equipment at the time of its acquisition, provided that the Lien
is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment, in either case, with respect
to Indebtedness in an aggregate amount not to exceed $300,000, (v) Liens securing Indebtedness permitted pursuant to clause (iv) of the
definition of Permitted Indebtedness, (vi) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness
secured by Liens of the type described in clause (iv) above, provided that any extension, renewal or replacement Lien shall be limited
to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced does
not increase, (vii) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom duties
in connection with the importation of goods, (viii) Liens arising from judgments, decrees or attachments in circumstances not constituting
an Event of Default under Section 4(a)(xii), and (ix) Liens arising from the licensing of Intellectual Property in the ordinary
course of the Company’s business.

 

		(y)	“Person” means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or
any department or agency thereof.

 

		(z)	“Principal Market” means the Nasdaq Capital
Market.

 

		(aa)	“Redemption Notices” means, collectively, the
Event of Default Redemption Notices, the Company Optional Redemption Notices and the Change of Control Redemption Notices, and each of
the foregoing, individually, a “Redemption Notice.”

 

		(bb)	“Redemption Prices” means, collectively, Event
of Default Redemption Prices, the Change of Control Redemption Prices, and the Company Optional Redemption Prices, and each of the foregoing,
individually, a “Redemption Price.”

 

		(cc)	“Registration Rights Agreement” means that
certain registration rights agreement, dated as of the Closing Date, by and among the Company and the initial holders of the Notes relating
to, among other things, the registration of the resale of the Common Stock issuable upon conversion of the Notes or otherwise pursuant
to the terms of the Notes, as may be amended from time to time.

 

		(dd)	“Required Holders” means the holders of 66.67%
in principal amount of the Notes then outstanding.

 

		(ee)	“SEC” means the United States Securities and
Exchange Commission or the successor thereto.

 

		(ff)	“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations thereunder.

 

		(gg)	“Securities Purchase Agreement” means that
certain securities purchase agreement, dated as of the Issuance Date, by and among the Company and the initial holders of the Notes (the
“Buyers”) pursuant to which the Company issued the Notes, as may be amended from time to time.

 

		(hh)	“Security Agreement” shall have the meaning
as set forth in the Securities Purchase Agreement.

 

		(ii)	“Subject Entity” means any Person, Persons
or Group or any Affiliate or associate of any such Person, Persons or Group.

 

		(jj)	“Subsidiaries” means, as of any date of determination,
collectively, all Current Subsidiaries and all New Subsidiaries, and each of the foregoing, individually, a “Subsidiary.”

 

    27

     

    

 

		(kk)	“Successor Entity” means the Person (or, if
so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if
so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

 

		(ll)	“Trading Day” means, as applicable, (x) with
respect to all price or trading volume determinations relating to the Common Stock, any day on which the Common Stock is traded on the
Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities
exchange or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include
any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common
Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate
in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless
such day is otherwise designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price
determinations relating to the Common Stock, any day on which The New York Stock Exchange (or any successor thereto) is open for trading
of securities.

 

		(mm) 	“VWAP” means, for any security as of any date,
the dollar volume-weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal
trading market for such security, then on the principal securities exchange or securities market on which such security is then traded),
during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg through its
“VAP” function (set to 09:30 start time and 16:00 end time) or, if the foregoing does not apply, the dollar volume-weighted
average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning
at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average
price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing
ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly
Pink Sheets LLC). If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security
on such date shall be the fair market value as mutually determined by the Company and the Required Holders. If the Company and the Required
Holders are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures
in Section 24. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination,
recapitalization or other similar transaction during such period.

 

(32) DISCLOSURE. Upon delivery by the Company
to the Holder (or receipt by the Company from the Holder) of any notice in accordance with the terms of this Note, unless the Company
has in good faith determined that the matters relating to such notice do not constitute material, non-public information relating to the
Company or any of its Subsidiaries, the Company shall, within one (1) Business Day following such notice delivery date, publicly disclose
such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice
contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to the Holder
explicitly in writing in such notice (or immediately upon receipt of notice from the Holder, as applicable), and in the absence of any
such written indication in such notice (or notification from the Company immediately upon receipt of notice from the Holder), the Holder
shall be entitled to presume that information contained in the notice does not constitute material, non-public information relating to
the Company or any of its Subsidiaries. Nothing contained in this Section 32 shall limit any obligations of the Company, or any
rights of the Holder, under Section 4(i) of the Securities Purchase Agreement.

 

[signature page follows]

 

    28

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed as of the Issuance Date set out above.

 

	 	COMPANY:
	 	 
	 	IPSIDY INC.  
	 	 
	 	By:  	 
	 	 	Name:   	Stuart Stoller
	 	 	Title: 	Chief Financial Officer

 

Senior Convertible Note - Signature Page

 

     

     

    

 

EXHIBIT I

 

IPSIDY INC.

 

CONVERSION NOTICE

 

Reference is made
to the Senior Secured Convertible Note (the “Note”) issued to the undersigned by Ipsidy Inc., a Delaware corporation (the
“Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as
defined in the Note) of the Note indicated below into shares of Common Stock, $0.0001 par value per share (the “Common Stock”),
of the Company, as of the date specified below. Capitalized terms not defined herein shall have the meaning as set forth in the Note.

 

	Date of Conversion:	 	 
	 	 	 
	Aggregate Principal to be converted:	 	 
	 	 	 
	Aggregate accrued and unpaid Interest with respect to such portion of the Aggregate Principal to be converted:	 	 
	 	 	 
	AGGREGATE CONVERSION AMOUNT TO BE CONVERTED:	 	 
	 	 	 
	Please confirm the following information:	 	 
	 	 	 
	Number of shares of Common Stock to be issued:	 	 

 

Please issue the Common Stock into which the Note is
being converted to Holder, or for its benefit, as follows:

 

		☐	Check
here if requesting delivery as a book-entry statement to the following name and to the following facsimile number or e-mail address:

 

	Issue to:	 	 

 

		☐	Check
here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

DTC Participant: _____________________________

 

DTC Number:________________________________

 

Account Number: _____________________________

 

Date _____________, ____

 

By: _____________________________

 

Name:

 

Title:

 

Tax ID: ______________

 

Facsimile ____________

 

E-mail address:

 

    I-1

     

    

 

EXHIBIT II

 

ACKNOWLEDGMENT

 

The Company hereby
(a) acknowledges this Conversion Notice, (b) certifies that the above indicated number of shares of Common Stock [are][are not] eligible
to be resold by the Holder either (i) pursuant to Rule 144 (subject to the Holder’s execution and delivery to the Company of
a customary 144 representation letter) or (ii) an effective and available registration statement and (c) hereby directs [Transfer Agent]
to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated [March 21, 2022]
from the Company and acknowledged and agreed to by __________.

 

	 	COMPANY:
	 	 
	 	IPSIDY INC.  
	 	 
	 	By:	     
	 	 	Name:	 
	 	 	Title:	 

 

    II-1

     

    

 

EXHIBIT III

 

PERMITTED DISPOSITIONS

 

 

See attached.

 

 

 

 

 

 

 

 

 

 

III-1Exhibit 10.3

 

SECURITY AND PLEDGE AGREEMENT

 

SECURITY AND PLEDGE AGREEMENT,
dated as of March 21, 2022 (this “Agreement”), made by Ipsidy Inc., a Delaware corporation (the “Company”),
and each of the direct and indirect Subsidiaries of the Company signatory hereto from time to time, if any (each a “Grantor”
and together with the Company, collectively, the “Grantors”), in favor of Stephen Garchik, in his capacity as collateral
agent (in such capacity, the “Collateral Agent” as hereinafter further defined) for the Noteholders (as defined below)
party to the Securities Purchase Agreement, dated as of March 21, 2022 (as amended, modified, supplemented, extended, renewed, restated
or replaced from time to time, the “Securities Purchase Agreement”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and each
party listed as a “Buyer” on the Schedule of Buyers attached to the Securities Purchase Agreement (each a “Buyer”
and collectively, the “Buyers”) are parties to the Securities Purchase Agreement, pursuant to which the Company shall
be required to sell, and the Buyers shall purchase or have the right to purchase, the Notes issued pursuant thereto (as such Notes may
be amended, modified, supplemented, extended, renewed, restated or replaced from time to time in accordance with the terms thereof, collectively,
the “Notes”);

 

WHEREAS, certain Grantors
(other than the Company) from time to time (each a “Guarantor” and collectively, the “Guarantors”)
may execute and deliver one or more guarantees (each, a “Guaranty” and collectively, the “Guaranties”)
in form and substance acceptable to and in favor of the Collateral Agent, for the benefit of himself and the Noteholders (as defined below),
with respect to the Company’s obligations under the Securities Purchase Agreement, the Notes, and the other “Transaction Documents”
(as defined in the Securities Purchase Agreement);

 

WHEREAS, it is a condition
precedent to the Buyers’ obligation to purchase the Notes issued pursuant to the Securities Purchase Agreement that the Grantors
shall have executed and delivered to the Collateral Agent this Agreement providing for the grant to the Collateral Agent, for the benefit
of the Noteholders, of a valid, enforceable, and perfected security interest in substantially all personal property of each Grantor to
secure all of the Company’s obligations under the Transaction Documents and the Guarantors’ obligations under the Guaranties,
as applicable; and

 

WHEREAS, each Grantor has
determined that the execution, delivery and performance of this Agreement directly benefits, and is in the best interest of, such Grantor.

 

     

    

    

 

NOW, THEREFORE, in consideration
of the premises and the agreements herein and in order to induce the Buyers to perform under the Securities Purchase Agreement, each Grantor
agrees with the Collateral Agent, for the benefit of the Collateral Agent and the Noteholders, as follows:

 

SECTION 1. Definitions.

 

(a) Reference
is hereby made to the Securities Purchase Agreement and the Notes for a statement of the terms thereof. All terms used in this Agreement
and the recitals hereto which are defined in the Securities Purchase Agreement, the Notes or in the Code, and which are not otherwise
defined herein shall have the same meanings herein as set forth therein; provided that terms used herein which are defined in the
Code on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of the Code except as the
Collateral Agent may otherwise determine.

 

(b) The
following terms shall have the respective meanings provided for in the Code: “Accounts”, “Account Debtor”, “Cash
Proceeds”, “Certificate of Title”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity
Account”, “Commodity Contracts”, “Deposit Account”, “Documents”, “Electronic Chattel Paper”,
“Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”, “Inventory”,
“Investment Property”, “Letter-of-Credit Rights”, “Payment Intangibles”, “Proceeds”, “Promissory
Notes”, “Security”, “Record”, “Security Account”, “Software”, and “Supporting
Obligations”.

 

(c) As
used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally
to both the singular and plural forms of such terms:

 

“Affiliate”
of any Person means any other Person which, directly or indirectly, controls or is controlled by or is under common control with such
Person and any officer or director of such Person. A Person shall be deemed to be “controlled by” any other Person if such
Person possesses, directly or indirectly, power to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting
power for the election of directors or managers or power to direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise.

 

“Bankruptcy Code”
means Title 11 of the United States Code, 11 U.S.C §§ 101 et seq. (or any successor statute, or other applicable bankruptcy,
insolvency or similar laws).

 

“Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to
remain closed.

 

“Buyer”
or “Buyers” shall have the meaning set forth in the recitals hereto.

 

“Capital Stock”
means (i) with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however
designated and whether or not voting) of corporate stock (including, without limitation, any warrants, options, rights or other securities
exercisable or convertible into equity interests or securities of such Person), and (ii) with respect to any Person that is not a corporation,
any and all partnership, membership or other equity interests of such Person.

 

“Closing Date”
means the date the Company initially issues the Notes pursuant to the terms of the Securities Purchase Agreement.

 

“Code”
means Articles 8 or 9 of the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if
perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “Code” means the Uniform Commercial
Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect
of perfection or non-perfection or priority.

 

    2

     

    

 

“Collateral”
shall have the meaning set forth in Section 2(a) of this Agreement.

 

“Collateral Agent”
shall have the meaning set forth in the preamble hereto.

 

“Company”
shall have the meaning set forth in the preamble hereto.

 

“Controlled Account
Agreement” means a deposit account control agreement or securities account control agreement with respect to a Pledged Account,
in form and substance reasonably satisfactory to the Collateral Agent, as the same may be amended, modified, supplemented, extended, renewed,
restated or replaced from time to time.

 

“Controlled Accounts”
means the Deposit Accounts, Commodity Accounts, Securities Accounts, and/or Foreign Currency Controlled Account of the Grantors listed
on Schedule IV attached hereto (as may be amended, supplemented or otherwise modified from time to time); provided, that
the Controlled Accounts shall not include (i) accounts used solely for payroll or employee benefits, (ii) trust accounts, (iii) escrow
accounts, (iv) accounts with respect to which the aggregate amount on deposit, collectively for all such accounts, does not exceed $25,000
at any time, (v) zero balance accounts, and (vi) any account used for the cash collateralization of any bond or letter of credit
to the extent the Lien on such cash collateral is permitted under the Securities Purchase Agreement and the Notes.

 

“Copyright Licenses”
means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensee or licensor and providing for
the grant of any right to use or sell any works covered by any Copyright (including, without limitation, all Copyright Licenses set forth
in Schedule II hereto).

 

“Copyrights”
means all domestic and foreign copyrights, whether registered or not, including, without limitation, all copyright rights throughout the
universe (whether now or hereafter arising) in any and all media (whether now or hereafter developed),in and to all original works of
authorship fixed in any tangible medium of expression, acquired or used by any Grantor (including, without limitation, all copyrights
described in Schedule II hereto), all applications, registrations and recordings thereof (including, without limitation, applications,
registrations and recordings in the United States Copyright Office or in any similar office or agency of the United States or any other
country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions or renewals
thereof.

 

“Domestic Subsidiary”
means any Subsidiary other than a Foreign Subsidiary.

 

“Event of Default”
shall have the meaning set forth in Section 4(a) of the Notes.

 

    3

     

    

 

“Excluded Collateral”
means (a) the Capital Stock (including any debt or other instrument treated as equity for U.S. federal income tax purposes) of (i) any
Foreign Subsidiary that is not a Grantor and (ii) any other Subsidiary of a Grantor (which such Subsidiary is not itself a Grantor) substantially
all of the assets of which consist, directly or indirectly, of the Capital Stock (including any debt or other instrument treated as equity
for U.S. federal income tax purposes) of one or more Foreign Subsidiaries (in each case, with respect to preceding clauses (i) and (ii),
to the extent that such Capital Stock represents more than 65% of the issued and outstanding voting Capital Stock of such Subsidiary),
and (iii) any Excluded Subsidiary, (b) any property to the extent the grant of a security interest in such property is prohibited
by applicable law, (c) any “intent to use” trademark applications for which a statement of use has not been filed and
accepted with the U.S. Patent and Trademark Office, (d) any rights under any lease, instrument, contract or agreement of any Grantor (including
any Patent Licenses, Trademark Licenses and Copyright Licenses) to the extent that the granting of a security interest therein would,
under the express terms of such lease, instrument, contract, license or agreement (i) be prohibited or restricted or (ii) constitute
a default under or result in a termination of any such lease, instrument, contract or agreement governing such right, unless (A) such
prohibition or restriction is not enforceable or is otherwise ineffective under any applicable law or (B) consent to such security interest
has been obtained from any applicable third party, (e) any item of General Intangibles that is now or hereafter held by such Grantor but
only to the extent that such item of General Intangibles (or any agreement evidencing such item of General Intangibles) contains a term
or is subject to a rule of law, statute or regulation that restricts, prohibits, or requires a consent (that has not been obtained) of
a Person (other than such Grantor) to, the creation, attachment or perfection of the security interest granted herein, and any such restriction,
prohibition and/or requirement of consent is effective and enforceable under applicable law and is not rendered ineffective by applicable
law (including, without limitation, pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC), (f) any leased real property,
(g) equity interests in any joint venture entities, but only to the extent that the organizational documents or other agreements with
equity holders of such joint ventures contain customary provisions that restrict or do not permit the pledge of such equity interests,
and (h) any assets with respect to which the Collateral Agent and the Company shall have determined that the cost of obtaining a Lien
in such assets is excessive in relation to the value of the security to be afforded thereby; provided, however, that (x) Excluded
Collateral shall not include any Proceeds of any foregoing item and (y) if any of the foregoing items at any time ceases to satisfy
the criteria for Excluded Collateral (whether as a result of the applicable Grantor obtaining any necessary consent, any change in any
rule of law, statute or regulation, or otherwise), such item shall no longer be Excluded Collateral and the term “Collateral”
shall immediately and automatically include such item and the Liens granted herein on such item shall immediately and automatically attach
thereto.

 

“Excluded Subsidiary”
means any Foreign Subsidiary which (i) does not account for a material portion of the Grantors’ revenue or assets and (ii) that
does not own or hold any material Intellectual Property that is used or useful in the operation of the Grantors’ business; provided,
that at such time that any of the foregoing conditions are no longer satisfied for any such Subsidiary, the relevant Subsidiary shall
no longer be an Excluded Subsidiary. Notwithstanding the foregoing or anything to the contrary herein, the Collateral Agent acknowledges
and agrees that as of the Closing Date, each of MultiPay S.A, IDGS S.A.S., Ipsidy Peru SAC, Ipsidy Enterprises Ltd and Cards Plus (Pty
Ltd) is an Excluded Subsidiary and shall at all times remain an Excluded Subsidiary in the absence of, after the Closing Date, (i) a material
increase in its contribution to the Grantors’ revenue or assets or (ii) its ownership or holding of any material Intellectual Property
that is used or useful in the operation of the Grantors business.

 

“Foreign Currency
Controlled Accounts” means any Controlled Account of the Grantors holding non-United States dollar deposits.

 

    4

     

    

 

“Foreign Subsidiary”
means any Subsidiary of a Grantor organized under the laws of a jurisdiction other than the United States, any of the states thereof,
Puerto Rico or the District of Columbia.

 

“GAAP”
means U.S. generally accepted accounting principles consistently applied.

 

“Governmental Authority”
means any nation or government, any Federal, state, city, town, municipality, county, local, foreign or other political subdivision thereof
or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Guaranteed Obligations”
shall have the meaning set forth in each Guaranty.

 

“Guarantor”
or “Guarantors” shall have the meaning set forth in the recitals hereto.

 

“Guaranty”
or “Guaranties” shall have the meaning set forth in the recitals hereto.

 

“Insolvency Proceeding”
means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other bankruptcy or insolvency
law, assignments for the benefit of creditors, formal or informal moratoria, compositions, or extensions generally with creditors, or
proceedings seeking reorganization, arrangement, or other similar relief.

 

“Intellectual Property”
means, collectively, the Copyrights, Trademarks and Patents.

 

“Intellectual Property
Security Agreement” means the Intellectual Property Security Agreement required to be delivered pursuant to Section 5(h)(i)
of this Agreement, in the form attached hereto as Exhibit A.

 

“Licenses”
means, collectively, the Copyright Licenses, the Trademark Licenses and the Patent Licenses.

 

“Lien”
means any mortgage, lien, pledge, charge, security interest, adverse claim or other encumbrance upon or in any property or assets.

 

“Notes”
shall have the meaning set forth in the recitals hereto.

 

“Noteholders”
means, at any time, the holders of the Notes at such time.

 

“Obligations”
shall have the meaning set forth in Section 3 of this Agreement.

 

“Paid in Full”
or “Payment in Full” means the indefeasible payment in full in cash (or solely with respect to the Notes, the conversion
of all of the Notes pursuant to their respective terms) of all of the Obligations (other than contingent indemnification obligations to
the extent no claim giving rise thereto has been asserted).

 

“Patent Licenses”
means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensee or licensor and providing for
the grant of any right to manufacture, use or sell any invention covered by any Patent (including, without limitation, all Patent Licenses
set forth in Schedule II hereto).

 

“Patents”
means all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, ideas,
concepts, methods, techniques, processes, proprietary information, technology, know-how, formulae, rights of publicity and other general
intangibles of like nature, now existing or hereafter acquired (including, without limitation, all domestic and foreign letters patent,
design patents, utility patents, industrial designs, inventions, trade secrets, ideas, concepts, methods, techniques, processes, proprietary
information, technology, know-how and formulae described in Schedule II hereto), all applications, registrations and recordings
thereof (including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office, or
in any similar office or agency of the United States or any other country or any political subdivision thereof), and all reissues, reexaminations,
divisions, continuations, continuations in part and extensions or renewals thereof.

 

    5

     

    

 

“Perfection Requirement”
or “Perfection Requirements” shall have the meaning set forth in Section 4(j) of this Agreement.

 

“Person”
means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization,
joint venture or other enterprise or entity or Governmental Authority.

 

“Pledged Accounts”
means all of each Grantor’s right, title and interest in all of its Deposit Accounts, Commodity Accounts and Securities Accounts
(in all cases, including, without limitation, all Controlled Accounts and Foreign Currency Control Accounts).

 

“Pledged Entity”
means, each Person listed from time to time on Schedule IV hereto as a “Pledged Entity,” together with each other Person,
any right in or interest in or to all or a portion of whose Capital Stock is acquired or otherwise owned by a Grantor after the date hereof,
to the extent not constituting Excluded Collateral.

 

“Pledged Equity”
means all of each Grantor’s right, title and interest in and to all of the Securities and Capital Stock now or hereafter owned by
such Grantor to the extent not constituting Excluded Collateral, regardless of class or designation, including all substitutions therefor
and replacements thereof, all proceeds thereof and all rights relating thereto, also including any certificates representing the Securities
and/or Capital Stock, the right to receive any certificates representing any of the Securities and/or Capital Stock, all warrants, options,
share appreciation rights and other rights, contractual or otherwise, in respect thereof, and the right to receive dividends, distributions
of income, profits, surplus, or other compensation by way of income or liquidating distributions, in cash or in kind, and cash, instruments,
and other property from time to time received, receivable, or otherwise distributed in respect of or in addition to, in substitution of,
on account of, or in exchange for any or all of the foregoing.

 

“Pledged Operating
Agreements” means all of each Grantor’s rights, powers and remedies under the limited liability company operating agreements
of each of the Pledged Entities that are limited liability companies, as may be amended, modified, supplemented, extended, renewed, restated
or replaced from time to time.

 

“Pledged Partnership
Agreements” means all of each Grantor’s rights, powers, and remedies under the partnership agreements of each of the Pledged
Entities that are partnerships, as may be amended, modified, supplemented, extended, renewed, restated or replaced from time to time.

 

“Securities Purchase
Agreement” shall have the meaning set forth in the recitals hereto.

 

“Subsidiaries”
means any Person in which the Company, directly or indirectly, (I) owns at least 25% of the outstanding capital stock or holds at least
25% of the outstanding equity or similar interest of such Person or (II) controls the business, operations or administration of such Person,
and each of the foregoing, is individually referred to herein as a “Subsidiary.”

 

“Trademark Licenses”
means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensor or licensee and providing for
the grant of any right concerning any Trademark, together with any goodwill connected with and symbolized by any such licenses, contracts
or agreements and the right to prepare for sale or lease and sell or lease any and all Inventory now or hereafter owned by any Grantor
and now or hereafter covered by such licenses, contracts or agreements (including, without limitation, all Trademark Licenses described
in Schedule II hereto).

 

“Trademarks”
means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a’s,
assumed names, Internet domain names, trade styles, designs, logos and other source or business identifiers and all general intangibles
of like nature, now or hereafter owned, adopted, acquired or used by any Grantor (including, without limitation, all domestic and foreign
trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a’s, assumed names, Internet
domain names, trade styles, designs, logos and other source or business identifiers described in Schedule II hereto), all
applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings in the United
States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or
any political subdivision thereof), and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized
by such marks and all customer lists, formulae and other Records of any Grantor relating to the distribution of products and services
in connection with which any of such marks are used.

 

    6

     

    

 

SECTION 2. Grant of
Security Interest.

 

(a) As
collateral security for the due and punctual payment and performance of all of the Obligations, as and when due, each Grantor hereby pledges
and assigns to the Collateral Agent, for himself and for the benefit of the Noteholders, and grants to the Collateral Agent, for himself
and for the benefit of the Noteholders, a continuing security interest in, all of the following personal property and assets of such Grantor,
wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind, nature and description,
whether tangible or intangible (collectively, the “Collateral”):

 

(i) all
Accounts;

 

(ii) all
Chattel Paper (whether tangible or Electronic Chattel Paper);

 

(iii) all
Commercial Tort Claims, including, without limitation, those specified on Schedule VI hereto;

 

(iv) all
Documents;

 

(v) all
Equipment;

 

(vi) all
Fixtures;

 

(vii) all
General Intangibles (including, without limitation, all Payment Intangibles);

 

(viii) all
Goods;

 

(ix) all
Instruments (including, without limitation, all Promissory Notes and each certificated Security);

 

(x) all
Inventory;

 

(xi) all
Investment Property (and, regardless of whether classified as Investment Property under the Code, all Pledged Equity, Pledged Operating
Agreements and Pledged Partnership Agreements);

 

(xii) all
Intellectual Property and all Licenses;

 

(xiii) all
Letter-of-Credit Rights;

 

(xiv) all
Pledged Accounts, all cash and other property from time to time deposited therein, and all monies and property in the possession or under
the control of the Collateral Agent or any Noteholder or any Affiliate, representative, agent or correspondent of the Collateral Agent
or any such Noteholder;

 

(xv) all
Supporting Obligations;

 

(xvi) all
other tangible and intangible personal property of each Grantor (whether or not subject to the Code), including, without limitation, all
Deposit Accounts and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits,
income, benefits, substitutions and replacements of and to any of the property of any Grantor described in the preceding clauses of this
Section 2(a) (including, without limitation, any proceeds of insurance thereon and All causes of action, claims and warranties
now or hereafter held by each Grantor in respect of any of the items listed above), and all books, correspondence, files and other Records,
including, without limitation, all tapes, desks, cards, Software, data and computer programs in the possession or under the control of
any Grantor or any other Person from time to time acting for any Grantor, in each case, to the extent of such Grantor’s rights therein,
that at any time evidence or contain information relating to any of the property described in the preceding clauses of this Section
2(a) or are otherwise necessary or helpful in the collection or realization thereof; and

 

(xvii) all
Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing Collateral;

 

in each case howsoever any Grantor’s interest
therein may arise or appear (whether by ownership, security interest, claim or otherwise).

 

    7

     

    

 

(b) Notwithstanding
anything herein to the contrary, the term “Collateral” shall not include any Excluded Collateral.

 

(c) Each
Grantor agrees not to further encumber, or permit any other Lien (other than Permitted Liens) to exist that encumbers, any of its Copyrights,
Copyright applications, Copyright registrations and like protections in each work of authorship and derivative work, whether published
or unpublished, any Licenses, Patents, Patent applications and like protections, including improvements, divisions, continuations, renewals,
reissues, extensions, and continuations-in-part of the same, Trademarks, service marks and, to the extent permitted under applicable law,
any applications therefor, whether registered or not, and the goodwill of the business of such Grantor connected with and symbolized thereby,
know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present,
or future infringement of any of the foregoing, in each case without the Collateral Agent’s prior written consent (which consent
may be withheld or given in the Collateral Agent’s sole discretion).

 

(d) The
Grantors agree that the pledge of the shares of Capital Stock acquired by a Grantor of any and all Persons now or hereafter existing who
is a Foreign Subsidiary, to the extent such pledge is otherwise required by this Agreement, may be supplemented by one or more separate
pledge agreements, deeds of pledge, share charges or other similar agreements or instruments, executed and delivered by the relevant Grantors
in favor of the Collateral Agent, which pledge agreements will provide for the pledge of such shares of Capital Stock in accordance with
the laws of the applicable foreign jurisdiction. With respect to such shares of Capital Stock, the Collateral Agent may, at any time and
from time to time, in his reasonable discretion, take such actions in such foreign jurisdictions that will result in the perfection of
the Lien created in such shares of Capital Stock.

 

(e) In
addition, to secure the prompt and complete payment, performance and observance of the Obligations and in order to induce the Buyers as
aforesaid, each Grantor hereby grants to the Collateral Agent, for himself and for the ratable benefit of the Noteholders, a right of
set-off against the property of such Grantor held by the Collateral Agent, for himself and for the ratable benefit of the Noteholders,
consisting of property described above in Section 2(a) now or hereafter in the possession or custody of or in transit to the Collateral
Agent, for any purpose, including safekeeping, collection or pledge, for the account of such Grantor, or as to which such Grantor may
have any right or power; provided that such right shall only to be exercised after an Event of Default has occurred and is continuing.

 

    8

     

    

 

SECTION 3. Security
for Obligations. The security interest created hereby in the Collateral constitutes continuing collateral security for all of the
following obligations, whether direct or indirect, absolute or contingent, and whether now existing or hereafter incurred (collectively,
the “Obligations”):

 

(a) (i)
the payment by the Company and each Grantor, as and when due and payable (by scheduled maturity, required prepayment, acceleration, demand
or otherwise), of all amounts from time to time owing by it in respect of the Securities Purchase Agreement, this Agreement, the Notes
and the other Transaction Documents, and (ii) in the case of the Guarantors, the payment by such Guarantors, as and when due and payable
of all Guaranteed Obligations under the Guaranties, including, without limitation, in both cases, (A) all principal of, interest, make-whole
and other amounts on the Notes (including, without limitation, all interest, make-whole and other amounts that accrues after the commencement
of any Insolvency Proceeding of any Grantor, whether or not the payment of such interest is enforceable or is allowable in such Insolvency
Proceeding), and (B) all fees, interest, premiums, penalties, contract causes of action, costs, commissions, expense reimbursements, indemnifications
and all other amounts due or to become due under this Agreement or any of the Transaction Documents; and

 

(b) the
due performance and observance by each Grantor of all of its other obligations from time to time existing in respect of any of the Transaction
Documents, including without limitation, with respect to any conversion or redemption rights of the Noteholders under the Notes.

 

SECTION 4. Representations
and Warranties. Each Grantor represents and warrants as follows:

 

(a) Schedule
I hereto sets forth (i) the exact legal name of each Grantor, and (ii) the state of incorporation, organization or formation and the
organizational identification number of each Grantor in such state. The information set forth in Schedule I hereto with respect
to such Grantor is true and accurate in all respects. During the five (5) year period prior to the Closing Date, such Grantor has not
previously changed its name (or operated under any other name), jurisdiction of organization or organizational identification number from
those set forth in Schedule I hereto except as disclosed in Schedule I hereto.

 

(b) There
is no pending or, to its knowledge, written notice threatening any action, suit, proceeding or claim affecting any Grantor before any
Governmental Authority or any arbitrator, or any order, judgment or award issued by any Governmental Authority or arbitrator, in each
case, that may adversely affect the grant by any Grantor, or the perfection, of the security interest purported to be created hereby in
any significant portion of the Collateral, or the exercise by the Collateral Agent of any of his rights or remedies hereunder.

 

(c) All
Federal, state and local tax returns and other material reports required by applicable law to be filed by any Grantor have been filed,
or extensions have been obtained, and all taxes, assessments and other governmental charges imposed upon any Grantor or any property of
any Grantor (including, without limitation, all federal income and social security taxes on employees’ wages) and which have become
due and payable on or prior to the date hereof have been paid, except to the extent (i) contested in good faith by proper proceedings
with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP or (ii) to the extent that
the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

    9

     

    

 

(d) All
Equipment, Fixtures, Goods and Inventory of each Grantor now existing are, and all Equipment, Fixtures, Goods and Inventory of each Grantor
hereafter existing will be, located and/or based at the addresses specified therefor in Schedule III hereto (which may be located
at other locations within the United States and except for Inventory or Goods in transit or mobile Equipment in the possession of such
Grantor’s employees or agents or out for repair, in each case, in the ordinary course of business) except that each Grantor will
give the Collateral Agent written notice of any change in the location of any such Collateral (except for Inventory or Goods in transit
or mobile Equipment in the possession of such Grantor’s employees or agents or out for repair, in each case, in the ordinary course
of business) within 30 days of such change, other than to locations set forth on Schedule III hereto. Each Grantor’s principal
place of business and chief executive office, the place where each Grantor keeps its Records concerning the Collateral and all originals
of all Chattel Paper are located and will continue to be located at the addresses specified therefor in Schedule III hereto, except
that each Grantor will give the Collateral Agent written notice of any change in any such location. As of the date hereof, none of the
Accounts is evidenced by Promissory Notes or other Instruments.

 

(e) Set
forth in Schedule IV hereto is a complete and accurate list, as of the date of this Agreement, of (i) each Promissory Note, Security
and other Instrument owned by each Grantor, (ii) each Pledged Account of each Grantor, together with the name and address of each institution
at which each such Pledged Account is maintained, the account number for each such Pledged Account and a description of the purpose of
each such Pledged Account and (iii) the name of each Foreign Currency Controlled Account, together with the name and address of each institution
at which each such Foreign Currency Controlled Account is maintained. Set forth in Schedule II hereto is a complete and correct list as
of the date hereof of each trade name used by each Grantor.

 

(f) Each
Grantor has delivered to the Collateral Agent complete and correct copies of each License described in Schedule II hereto, including
all schedules and exhibits thereto, which represent all of the Licenses of the Grantors existing on the date of this Agreement. Each such
License sets forth the entire agreement and understanding of the parties thereto relating to the subject matter thereof, and there are
no other agreements, arrangements or understandings, written or oral, relating to the matters covered thereby or the rights of such Grantor
or any of its Affiliates in respect thereof. Each material License now existing is, and any material License entered into in the future
will be, the legal, valid and binding obligation of the parties thereto, enforceable against such parties in accordance with its terms.
No default under any material License by any such party has occurred, nor does any defense, offset, deduction or counterclaim exist thereunder
in favor of any such party.

 

(g) Each
Grantor owns and controls, or otherwise possesses adequate rights to use, all of its Intellectual Property (to the extent material or
otherwise necessary for the operation of any Grantor’s business), which is the only Intellectual Property necessary to conduct its
business in substantially the same manner as conducted as of the date hereof. Schedule II hereto sets forth a true and complete
list of all Intellectual Property and Licenses owned or used by each Grantor as of the date hereof, and applications for grant or registration
of Intellectual Property. To the knowledge of each Grantor, all such Intellectual Property of such Grantor (to the extent material or
otherwise necessary for the operation of any Grantor’s business) is subsisting and in full force and effect, has not been adjudged
invalid or unenforceable, is valid and enforceable and has not been abandoned in whole or in part. Except as set forth in Schedule
II, no such Intellectual Property is the subject of any licensing or franchising agreement. Except as set forth in Schedule II,
no Grantor has any knowledge of any infringement upon or conflict with the Patent, Trademark, Copyright, trade secret rights of others
and, each Grantor, to its knowledge, is not now infringing or in conflict with any Patent, Trademark, Copyright, trade secret or similar
rights of others, and to the knowledge of each Grantor, no other Person is now infringing or in conflict in any material respect with
any such properties, assets and rights owned or used by each Grantor. No Grantor has received any notice that it is violating or has violated
the Trademarks, Patents, Copyrights, inventions, trade secrets, proprietary information and technology, know-how, formulae, rights of
publicity or other intellectual property rights of any third party.

 

    10

     

    

 

(h) Except
for Intellectual Property identified on Schedule II or in a License as jointly owned, each Grantor is and will be at all times
the sole and exclusive owner of the Collateral pledged by such Grantor hereunder free and clear of any Liens, except for Permitted Liens
thereon. No effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file
in any recording or filing office except such as (i) may have been filed in favor of the Collateral Agent and/or the Noteholders relating
to this Agreement or the other Transaction Documents, and (ii) are securing Permitted Liens and, solely with respect to such Permitted
Liens in effect on the date hereof, disclosed on Schedule VII hereto.

 

(i) The
exercise by the Collateral Agent of any of his rights and remedies hereunder will not contravene any law or any contractual restriction
binding on or otherwise affecting each Grantor or any of its properties and will not result in or require the creation of any Lien, upon
or with respect to any of its properties.

 

(j) No
authorization or approval or other action by, and no notice to or filing with, any Governmental Authority, is required for (i) the grant
by each Grantor, or the perfection, of the security interest purported to be created hereby in the Collateral, or (ii) the exercise by
the Collateral Agent of any of his rights and remedies hereunder, except for (A) the filing under the Code as in effect in the applicable
jurisdiction of the financing statements described in Schedule V hereto, all of which financing statements have been duly
filed (or will be filed substantially simultaneously with the Closing Date) and are in full force and effect, (B) with respect to all
Pledged Accounts, and all cash and other property from time to time deposited therein, the execution of a Controlled Account Agreement
with the depository or other institution with which the applicable Pledged Accounts are maintained, as provided in Section 5(i),
(C) with respect to Commodity Contracts, the execution of a control agreement with the commodity intermediary with which such Commodity
Contract is carried, (D) with respect to the perfection of the security interest created hereby in the United States Intellectual Property
and Licenses, filing under the Code as in effect in the applicable jurisdiction of the financing statements described in Schedule V
hereto and the recording of the appropriate Intellectual Property Security Agreement in the United States Patent and Trademark Office
or the United States Copyright Office, as applicable, (E) with respect to the perfection of the security interest created hereby in foreign
Intellectual Property and Licenses, registrations and filings in jurisdictions located outside of the United States and covering rights
in such jurisdictions relating to such foreign Intellectual Property and Licenses, (F) with respect to the perfection of the security
interest created hereby in any Letter-of-Credit Rights, the consent of the issuer of the applicable letter of credit to the assignment
of proceeds as provided in the Code as in effect in the applicable jurisdiction, (G) with respect to Investment Property constituting
uncertificated securities, the applicable Grantor causing the issuer thereof either (i) to register the Collateral Agent as the registered
owner of such securities or (ii) to agree in an authenticated record with such Grantor and the Collateral Agent that such issuer will
comply with instructions with respect to such securities originated by the Collateral Agent without further consent of such Grantor, such
authenticated record to be in form and substance satisfactory to the Collateral Agent, (H) with respect to Investment Property constituting
certificated securities or instruments, such items to be delivered to and held by or on behalf of the Collateral Agent pursuant hereto
in suitable form for transfer by delivery or accompanied by duly executed instruments of transfer or assignment in blank, all in form
and substance satisfactory to the Collateral Agent, (I) with respect to any action that may be necessary to obtain control of Collateral
constituting Commodity Contracts, Electronic Chattel Paper or Letter of Credit Rights, the taking of such actions, and (J) the Collateral
Agent having possession of all Documents, Chattel Paper and Instruments and cash constituting Collateral (subclauses (A) through (J) each
a “Perfection Requirement” and collectively, the “Perfection Requirements”).

 

(k) This
Agreement creates in favor of the Collateral Agent a legal, valid and enforceable security interest in the Collateral, as security for
the Obligations. The performance of the Perfection Requirements results in the perfection of such security interest in the Collateral.
Such security interest is (or in the case of Collateral in which each Grantor obtains rights after the date hereof, will be), subject
only to Permitted Liens and the Perfection Requirements, a first priority, valid, enforceable and perfected security interests in all
personal property of each Grantor (other than Excluded Collateral). Such recordings and filings and all other action necessary to perfect
and protect such security interest have been duly taken (and, in the case of Collateral in which any Grantor obtains rights after the
date hereof, will be duly taken), except for the Collateral Agent’s having possession of all Documents, Chattel Paper and Instruments
constituting Collateral after the date hereof and the other actions, filings and recordations described above, including the Perfection
Requirements. Notwithstanding the foregoing or anything to the contrary herein, no Grantor shall be required to (i) take any steps to
perfect a security interest in any Pledged Account that does not constitute a Controlled Account or (ii) take any steps in any jurisdiction
located outside of the United States for the perfection of any security interests, except to the extent (A) any Foreign Subsidiary
becomes a Grantor or otherwise ceases to be an Excluded Subsidiary or (B) any Grantor acquires material assets in such foreign jurisdiction
(other than in the ordinary course of business consistent with past practice), and in each such circumstance, upon request by the Collateral
Agent in his reasonable discretion.

 

(l) As
of the date hereof, no Grantor holds any Commercial Tort Claims or has knowledge of any pending Commercial Tort Claims, except for the
Commercial Tort Claims described in Schedule VI.

 

    11

     

    

 

(m) All
of the Pledged Equity is as of the date hereof owned by the applicable Grantor as set forth in Schedule IV, and is as of the date
hereof represented by the certificates listed on Schedule IV hereto (if applicable). As of the date hereof, there are no existing
options, warrants, calls or commitments of any character whatsoever relating to the Pledged Equity other than as contemplated and permitted
by the Transaction Documents. Each Grantor is the sole holder of record and the sole beneficial owner of the Pledged Equity, as applicable,
subject to Permitted Liens. None of the Pledged Equity has been issued or transferred in violation of the securities registration, securities
Disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject. The Pledged Equity constitutes 100%
or such other percentage as set forth on Schedule IV of the issued and outstanding shares of Capital Stock of the applicable Pledged Entity.

 

(n) Such
Grantor (i) is a corporation, limited liability company or limited partnership, as applicable, duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation, organization or formation, (ii) has all requisite corporate, limited
liability company or limited partnership power and authority to conduct its business as now conducted and as presently contemplated and
to execute and deliver this Agreement and each other Transaction Document to which such Grantor is a party, and to consummate the transactions
contemplated hereby and thereby and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character
of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except where the
failure to be so qualified would not result in a Material Adverse Effect.

 

(o) The
execution, delivery and performance by each Grantor of this Agreement and each other Transaction Document to which such Grantor is a party
(i) have been duly authorized by all necessary corporate, limited liability company or limited partnership action, (ii) do not and will
not contravene its charter or by-laws, limited liability company or operating agreement, certificate of partnership or partnership agreement,
as applicable, or any applicable law or any contractual restriction binding on such Grantor or its properties, (iii) do not and will not
result in or require the creation of any Lien (other than pursuant to any Transaction Document) upon or with respect to any of its assets
or properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal
of any material permit, license, authorization or approval applicable to it or its operations or any of its assets or properties.

 

(p) This
Agreement and each of the other Transaction Documents to which any Grantor is or will be a party, when delivered, will be a legal, valid
and binding obligation of such Grantor, enforceable against such Grantor in accordance with its terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, suretyship or other similar laws and equitable principles (regardless
of whether enforcement is sought in equity or at law).

 

SECTION 5. Covenants
as to the Collateral. So long as any of the Obligations shall remain outstanding (other than contingent indemnification obligations
to the extent no claim giving rise thereto has been asserted), unless the Collateral Agent shall otherwise consent in writing:

 

    12

     

    

 

(a) Further
Assurances. Each Grantor will, at its expense, at any time and from time to time, promptly execute and deliver all further instruments
and documents and take all further action that the Collateral Agent may reasonably request in order to: (i) perfect and protect the security
interest of the Collateral Agent created hereby; (ii) enable the Collateral Agent to exercise and enforce his rights and remedies hereunder
in respect of the Collateral, including, without limitation, the Controlled Accounts; or (iii) otherwise effect the purposes of this Agreement,
including, without limitation: (A) marking conspicuously all Chattel Paper and each License and, at the request of the Collateral Agent,
each of its Records pertaining to the Collateral with a legend, in form and substance satisfactory to the Collateral Agent, indicating
that such Chattel Paper, License or Collateral is subject to the security interest created hereby, (B) delivering and pledging to the
Collateral Agent each Promissory Note, Security (subject to the limitations set forth in Section 2), Chattel Paper or other Instrument,
now or hereafter owned by any Grantor, duly endorsed and accompanied by executed instruments of transfer or assignment, all in form and
substance satisfactory to the Collateral Agent, (C) executing and filing (to the extent, if any, that any Grantor’s signature is
required thereon) or authenticating the filing of, such financing or continuation statements, or amendments thereto, as may be necessary
or that the Collateral Agent may reasonably request in order to perfect and preserve the security interest created hereby, (D) furnishing
to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other reports
in connection with the Collateral in each case as the Collateral Agent may reasonably request, all in reasonable detail, (E) if any Collateral
shall be in the possession of a third party, notifying such Person of the Collateral Agent’s security interest created hereby and
obtaining a written acknowledgment from such Person, in form and substance reasonably satisfactory to the Collateral Agent, that such
Person holds possession of the Collateral for the benefit of the Collateral Agent (for the benefit the Noteholders), (F) if at any time
after the date hereof, any Grantor acquires or holds any Commercial Tort Claim, promptly notifying the Collateral Agent in a writing signed
by such Grantor setting forth a brief description of such Commercial Tort Claim and granting to the Collateral Agent a security interest
therein and in the proceeds thereof, which writing shall incorporate the provisions hereof and shall be in form and substance satisfactory
to the Collateral Agent, (G) upon the acquisition after the date hereof by any Grantor of any motor vehicle or other Equipment subject
to a certificate of title or ownership (other than a motor vehicle or Equipment that is subject to a purchase money security interest)
that constitutes Collateral, causing the Collateral Agent to be listed as the lienholder on such certificate of title or ownership and
delivering evidence of the same to the Collateral Agent in accordance with Section 5(j) hereof; and (H) taking all actions required
by the Code or by other law, as applicable, in any relevant Code jurisdiction or by other law as applicable in any foreign jurisdiction,
in each case with respect to the security interest created hereby.

 

(b) Location
of Collateral. Each Grantor will keep the Collateral (except for Collateral in the possession of such Grantor’s employees or
agents or out for repair, in each case, in the ordinary course of business) (i) at the locations specified therefor on Schedule III
hereto (except with respect to Inventory, Goods and Equipment with a fair market value of less than $50,000), (ii) at such other locations
set forth on Schedule III, or (iii) at such other locations in the United States, provided that the Grantors shall give the Collateral
Agent written notice 30 days prior to any change in the location of any material Collateral or upon the acquisition of any material Collateral
to be kept at such other locations.

 

(c) Condition
of Equipment. Each Grantor will maintain or cause to be maintained and preserved in good condition, repair and working order, ordinary
wear and tear excepted, the Equipment (necessary or material to its business) and will forthwith, or in the case of any loss or damage
to any Equipment of any Grantor within a commercially reasonable time after the occurrence thereof, make or cause to be made all repairs,
replacements and other improvements in connection therewith which are necessary or material to the conduct of its business. Any Grantor
will promptly furnish to the Collateral Agent a statement describing in reasonable detail any such loss or damage in excess of $100,000
per occurrence to any Equipment.

 

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(d) Taxes,
Etc. Each Grantor agrees to pay promptly when due all property and other taxes, assessments and governmental charges or levies imposed
upon, and all claims (including claims for labor, materials and supplies) against, the Equipment and Inventory, except to the extent (i)
the validity thereof is being contested in good faith by proper proceedings with respect to which adequate reserves in accordance with
GAAP have been set aside for the payment thereof or (ii) that the failure to do so could not reasonably be expected to have a Material
Adverse Effect.

 

(e) Insurance.

 

(i) Each
Grantor will, at its own expense, maintain insurance (including, without limitation, comprehensive general liability, hazard, cybersecurity
and business interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business,
in such amounts and covering such risks, in such form and with responsible and reputable insurance companies or associations as is required
by any Governmental Authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice
by companies in similar businesses similarly situated and in any event, in amount, adequacy and scope reasonably satisfactory to the Collateral
Agent (it being agreed that the insurance maintained by the Grantors as of the Closing Date is reasonably satisfactory to the Collateral
Agent). Any Grantor will also execute and deliver such additional documents as reasonably requested by the Collateral Agent for Collateral
Agent to maintain his security interest in such insurance.

 

(ii) To
the extent requested by the Collateral Agent after the occurrence and during the continuance of an Event of Default, each such policy
for liability insurance shall provide for all losses to be paid on behalf of the Collateral Agent and any Grantor as their respective
interests may appear, and each policy for property damage insurance shall provide for all losses to be adjusted with, and paid directly
to, the Collateral Agent. In addition to and without limiting the foregoing, to the extent requested by the Collateral Agent at any time
and from time to time, each such policy shall in addition (A) name the Collateral Agent as an additional insured party and/or loss payee,
as applicable, thereunder (without any representation or warranty by or obligation upon the Collateral Agent) as its interests may appear
and (B) provide that at least 30 days’ prior written notice of cancellation, lapse, expiration or other adverse change shall be
given to the Collateral Agent by the insurer. Any Grantor will, if so requested by the Collateral Agent, deliver to the Collateral Agent
original or duplicate policies of such insurance (including certificates demonstrating compliance with this Section 5(e)).

 

(iii) Reimbursement
under any liability insurance maintained by any Grantor pursuant to this Section 5(e) may be paid directly to the Person who
shall have incurred liability covered by such insurance.

 

(iv) Notwithstanding
anything to the contrary in subsection 5(e)(iii) above, following and during the continuance of an Event of Default, all insurance payments
in respect of each Grantor’s properties and business shall be paid to the Collateral Agent and applied as specified in Section
7(b) hereof.

 

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(f) Provisions
Concerning the Accounts and the Licenses.

 

(i) Each
Grantor will (A) give the Collateral Agent at least 15 days’ prior written notice of any change in such Grantor’s name, identity
or organizational structure, (B) maintain its jurisdiction of incorporation, organization or formation as set forth in Schedule
I hereto, (C) immediately notify the Collateral Agent upon obtaining an organizational identification number, if on the date hereof
such Grantor did not have such identification number, and (D) keep adequate records concerning the Collateral and permit representatives
of the Collateral Agent during normal business hours on reasonable notice to such Grantor, to inspect and make abstracts from such records.

 

(ii) Each
Grantor will (except as otherwise provided in this subsection (f)), continue to collect, at its own expense, amounts due or to become
due under the Accounts in manner consistent with past practice. In connection with such collections, any Grantor may (and, at the Collateral
Agent’s direction after the occurrence and during the continuance of an Event of Default, will) take such action as any Grantor
(or, after the occurrence and during the continuance of an Event of Default, the Collateral Agent) may deem necessary or advisable to
enforce collection or performance of the Accounts; provided, however, that the Collateral Agent shall have the right at
any time following the occurrence and during the continuance of an Event of Default to notify the Account Debtors or obligors under any
Accounts of the assignment of such Accounts to the Collateral Agent and to direct such Account Debtors or obligors to make payment of
all amounts due or to become due to any Grantor thereunder directly to the Collateral Agent or his designated agent and, upon such notification,
and at the expense of any Grantor and to the extent permitted by applicable law, to enforce collection of any such Accounts and to adjust,
settle or compromise the amount or payment thereof, in the same manner and to the same extent as any Grantor might have done. After receipt
by any Grantor, after the occurrence and during the continuance of an Event of Default, of a notice from the Collateral Agent that the
Collateral Agent has notified, intends to notify, or has enforced or intends to enforce any Grantor’s rights against the Account
Debtors or obligors under any Accounts as referred to in the proviso to the immediately preceding sentence, (A) all amounts and proceeds
(including Instruments) received by any Grantor in respect of the Accounts shall be received in trust for the benefit of the Collateral
Agent hereunder (for the benefit the Noteholders), shall be segregated from other funds of any Grantor and shall be forthwith paid over
to the Collateral Agent in the same form as so received (with any necessary endorsement) to be applied as specified in Section 7(b)
hereof, and (B) no Grantor will adjust, settle or compromise the amount or payment of any Account or release wholly or partly any Account
Debtor or obligor thereof or allow any credit or discount thereon. In addition, upon the occurrence and during the continuance of an Event
of Default, the Collateral Agent may (in his sole and absolute discretion) direct any or all of the banks and financial institutions with
which any Grantor either maintains a Deposit Account or a lockbox (including, without limitation, any Controlled Account) or deposits
the proceeds of any Accounts to send immediately to the Collateral Agent by wire transfer (to such deposit account as the Collateral Agent
shall specify, or in such other manner as the Collateral Agent shall direct) all or a portion of such securities, cash, investments and
other items held by such institution. Any such securities, cash, investments and other items so received by the Collateral Agent shall
be applied as specified in accordance with Section 7(b) hereof.

 

(g) [Reserved].

 

(h) Intellectual
Property.

 

(i) If
applicable, each Grantor shall duly execute and deliver the applicable Intellectual Property Security Agreement. Each Grantor (either
itself or through licensees) will, and will cause each licensee thereof to, take all action necessary to maintain all of the Intellectual
Property in full force and effect, including, without limitation, using the proper statutory notices, numbers and markings (relating to
patent, trademark and copyright rights) and using the Trademarks on each applicable trademark class of goods in order to so maintain the
Trademarks in full force and free from any claim of abandonment for non-use, and each Grantor will not (nor permit any licensee thereof
to) do any act or knowingly omit to do any act whereby any Intellectual Property may become abandoned, cancelled or invalidated; provided,
however, that so long as no Event of Default has occurred and is continuing, no Grantor shall have an obligation to use or to maintain
any Intellectual Property (A) that relates solely to any product or work, that is no longer necessary or material and has been, or is
in the process of being, discontinued, abandoned or terminated in the ordinary course of business and consistent with the exercise of
reasonable business judgment, (B) that is being replaced with Intellectual Property substantially similar to the Intellectual Property
that may be abandoned or otherwise become invalid, so long as the failure to use or maintain such Intellectual Property does not materially
adversely affect the validity of such replacement Intellectual Property and so long as such replacement Intellectual Property is subject
to the Lien created by this Agreement and does not have a material adverse effect on the business of any Grantor or (C) that is substantially
the same as another Intellectual Property that is in full force, so long the failure to use or maintain such Intellectual Property does
not materially adversely affect the validity of such replacement Intellectual Property and so long as such other Intellectual Property
is subject to the Lien and security interest created by this Agreement and does not have a material adverse effect on the business of
any Grantor.

 

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(ii) Each
Grantor will cause to be taken all necessary steps in any proceeding before the United States Patent and Trademark Office and the United
States Copyright Office or any similar office or agency in any other country or political subdivision thereof to maintain each registration
of the Intellectual Property and application for registration of Intellectual Property (other than the Intellectual Property described
in the proviso to the immediately preceding sentence), including, without limitation, filing of renewals, affidavits of use, affidavits
of incontestability and opposition, interference and cancellation proceedings and payment of maintenance fees, filing fees, taxes or other
governmental fees. If any Intellectual Property (other than Intellectual Property described in the proviso to the second sentence of subsection
(i) of this clause (h)) is infringed, misappropriated, diluted or otherwise violated in any material respect by a third party, each Grantor
shall (x) upon learning of such infringement, misappropriation, dilution or other violation, promptly notify the Collateral Agent and
(y) shall use commercially reasonable efforts to protect, preserve and enforce, as it shall deem appropriate, its rights to such Intellectual
Property. Each Grantor shall furnish to the Collateral Agent from time to time upon its reasonable request statements and schedules further
identifying and describing the Intellectual Property and Licenses and such other reports in connection with the Intellectual Property
and Licenses as the Collateral Agent may reasonably request, all in reasonable detail and promptly upon request of the Collateral Agent,
following receipt by the Collateral Agent of any such statements, schedules or reports, each Grantor shall modify this Agreement by amending
Schedule II hereto, as the case may be, to include any Intellectual Property and License, as the case may be, which is or hereafter becomes
part of the Collateral under this Agreement and shall execute and authenticate such documents and do such acts as shall be necessary or,
in the reasonable judgment of the Collateral Agent, desirable to subject such Intellectual Property and Licenses to the Lien and security
interest created by this Agreement. Notwithstanding anything herein to the contrary, upon the occurrence and during the continuance of
an Event of Default, no Grantor may abandon, surrender or otherwise permit any Intellectual Property to become abandoned, cancelled or
invalid without the prior written consent of the Collateral Agent, and if any Intellectual Property is infringed, misappropriated, diluted
or otherwise violated in any material respect by a third party, each Grantor will take such reasonable action as the Collateral Agent
shall deem appropriate under the circumstances to protect such Intellectual Property.

 

(iii) In
no event shall any Grantor, either itself or through any agent, employee, licensee or designee, file an application for the registration
of any Patent, Trademark or Copyright or the United States Copyright Office or the United States Patent and Trademark Office, as applicable,
or in any similar office or agency of the United States or any country or any political subdivision thereof unless it gives the Collateral
Agent prior written notice thereof. Upon request of the Collateral Agent, any Grantor shall execute, authenticate and deliver any and
all assignments, agreements, instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Collateral
Agent’s security interest hereunder in such Intellectual Property and the General Intangibles of any Grantor relating thereto or
represented thereby, and each Grantor hereby appoints the Collateral Agent its attorney-in-fact to execute and/or authenticate and file
all such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed, and such power (being coupled
with an interest) shall be irrevocable until all Obligations are Paid in Full.

 

(i) Pledged
Accounts.

 

(i) Within
(x) forty-five (45) days of written request by Collateral Agent, or (y) ten (10) Business Days upon the occurrence of an Event of
Default, each Grantor shall cause each bank and other financial institution which maintains a Controlled Account (each a “Controlled
Account Bank”) to execute and deliver to the Collateral Agent, in form and substance reasonably satisfactory to the Collateral
Agent, a Controlled Account Agreement with respect to such Controlled Account, duly executed by each Grantor and such Controlled Account
Bank. No Grantor shall create or maintain any Pledged Account without complying with the terms of this Agreement.

 

(ii) If
at any time after the Closing Date, the average daily balance of any Account that is not subject to a Controlled Account Agreement by
virtue of clause (iv) of the proviso to the definition of “Controlled Accounts” exceeds $25,000 during any calendar month
after the calendar month in which the Closing Date occurs, the Company shall promptly notify the Collateral Agent of same and within two
(2) Business Days following such notification, transfer to a Controlled Account an amount sufficient to reduce the total aggregate amount
of the cash in such Account to an amount not in excess of $25,000.

 

(j) Motor
Vehicles.

 

(i) Upon
the Collateral Agent’s written request, each Grantor shall deliver to the Collateral Agent originals of the certificates of title
or ownership for each motor vehicle owned by it, if any, with the Collateral Agent listed as lienholder, for the benefit of the Noteholders.

 

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(ii) Each
Grantor hereby appoints the Collateral Agent as its attorney-in-fact, effective the date hereof and terminating upon the termination of
this Agreement, upon the occurrence and during the continuance of an Event of Default, for the purpose of (A) executing on behalf of such
Grantor title or ownership applications for filing with appropriate Governmental Authorities to enable motor vehicles now owned or hereafter
acquired by such Grantor to be retitled and the Collateral Agent listed as lienholder thereof, (B) filing such applications with such
Governmental Authorities, and (C) executing such other agreements, documents and instruments on behalf of, and taking such other action
in the name of, such Grantor as the Collateral Agent may deem necessary or advisable to accomplish the purposes hereof (including, without
limitation, for the purpose of creating in favor of the Collateral Agent a perfected Lien on the motor vehicles and exercising the rights
and remedies of the Collateral Agent hereunder). This appointment as attorney-in-fact is coupled with an interest and is irrevocable until
all of the Obligations are Paid in Full.

 

(iii) Any
certificates of title or ownership delivered pursuant to the terms hereof shall be accompanied by odometer statements for each motor vehicle
covered thereby.

 

(iv) So
long as no Event of Default shall have occurred and be continuing, upon the request of any Grantor, the Collateral Agent shall execute
and deliver to any Grantor such instruments as such Grantor shall reasonably request to remove the notation of the Collateral Agent as
lienholder on any certificate of title for any motor vehicle; provided, however, that any such instruments shall be delivered,
and the release effective, only upon receipt by the Collateral Agent of a certificate from any Grantor stating that such motor vehicle
is to be sold or has suffered a casualty loss (with title thereto in such case passing to the casualty insurance company therefor in settlement
of the claim for such loss) and the amount that any Grantor will receive as sale proceeds or insurance proceeds. Any proceeds of such
sale or casualty loss shall be applied in a manner consistent with the Transaction Documents.

 

(k) Control.
Each Grantor hereby agrees to take any or all action that may be necessary or that the Collateral Agent may reasonably request in order
for the Collateral Agent to obtain “control” in accordance with Sections 9-105 through 9-107 of the Code with respect to the
following Collateral: (i) Electronic Chattel Paper, (ii) Investment Property, and (iii) Letter-of-Credit Rights.

 

(l) Inspection
and Reporting. Each Grantor shall permit the Collateral Agent, or any agent or representatives thereof or such professionals or other
Persons as the Collateral Agent may designate (at Grantors’ sole cost and expense) (i) to examine and make copies of and abstracts
from any Grantor’s records and books of account, (ii) to visit and inspect its properties, (iii) to verify materials, leases, Instruments,
Accounts, Inventory and other assets of any Grantor from time to time, and (iv) to conduct audits, physical counts, appraisals and/or
valuations, examinations at the locations of any Grantor; provided, that absent the occurrence and continuance of an Event of Default,
the Collateral Agent may not exercise such rights more than once per calendar year. Each Grantor shall also permit the Collateral Agent,
or any agent or representatives thereof or such attorneys, accountants or other professionals or other Persons as the Collateral Agent
may designate to discuss such Grantor’s affairs, finances and accounts with any of its directors, officers, managerial employees,
independent accountants or any of its other representatives; provided, that absent the occurrence and continuance of an Event of Default,
the Collateral Agent may not exercise such rights more than once per calendar year. Without limiting the foregoing, the Collateral Agent
may, at any time upon the occurrence and during the continuance of an Event of Default, in the Collateral Agent’s own name, in the
name of a nominee of the Collateral Agent, or in the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with
the Account Debtors of such Grantor, parties to contracts with such Grantor and/or obligors in respect of Instruments of such Grantor
to verify with such Persons, to the Collateral Agent’s satisfaction, the existence, amount, terms of, and any other matter relating
to, Accounts, Instruments, Chattel Paper, payment intangibles and/or other receivables.

 

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(m) Future
Subsidiaries. If any Grantor hereafter creates or acquires any Subsidiary (other than an Excluded Subsidiary), simultaneously with
the creation or acquisition of such Subsidiary, such Grantor shall (i) if such Subsidiary is a Domestic Subsidiary, cause such Subsidiary
to become a party to this Agreement as an additional “Grantor” hereunder, (ii) deliver to the Collateral Agent updated Schedules
to this Agreement, as appropriate (including, without limitation, an updated Schedule IV to reflect the grant by such Grantor of
a Lien on all Pledged Equity now or hereafter owned by such Grantor), (iii) if such Subsidiary is a Domestic Subsidiary, cause such Subsidiary
to duly execute and deliver a guaranty of the Obligations in favor of the Collateral Agent in form and substance acceptable to the Collateral
Agent, (iv) deliver to the Collateral Agent the stock certificates representing all of the Capital Stock of such Subsidiary, along with
undated stock powers for each such certificates, executed in blank (or, if any such shares of Capital Stock are uncertificated, confirmation
and evidence reasonably satisfactory to the Collateral Agent that the security interest in such uncertificated securities has been transferred
to and perfected by the Collateral Agent, in accordance with Sections 8-313, 8-321 and 9-115 of the Code or any other similar or local
or foreign law that may be applicable), and (v) duly execute and/or cause to be delivered to the Collateral Agent, in form and substance
reasonably acceptable to the Collateral Agent, such opinions of counsel and other documents as the Collateral Agent shall reasonably request
with respect thereto; provided, however, that no Grantor shall be required to pledge any Excluded Collateral. Each Grantor hereby authorizes
the Collateral Agent to attach such updated Schedules to this Agreement and agrees that all Pledged Equity listed on any updated Schedule
delivered to the Collateral Agent shall for all purposes hereunder be considered Collateral.

 

(n) Promissory
Notes and Other Instruments. To the extent that any Accounts shall become evidenced by a Promissory Note or other Instruments, the
Grantor shall promptly deliver such Promissory Note or other Instrument to the Collateral Agent, duly endorsed to the Collateral Agent
in a manner reasonably satisfactory to the Collateral Agent.

 

SECTION 6. Additional
Provisions Concerning the Collateral.

 

(a) To
the maximum extent permitted by applicable law, and for the purpose of taking any action that the Collateral Agent may deem necessary
or advisable to accomplish the purposes of this Agreement, each Grantor hereby (i) authorizes the Collateral Agent, following the occurrence
and during the continuance of an Event of Default, to execute any such agreements, instruments or other documents in such Grantor’s
name and to file such agreements, instruments or other documents in such Grantor’s name and in any appropriate filing office, (ii) authorizes
the Collateral Agent at any time and from time to time to file, one or more financing or continuation statements, and amendments thereto,
relating to the Collateral (including, without limitation, any such financing statements that (A) describe the Collateral as “all
assets” or “all personal property” (or words of similar effect) or that describe or identify the Collateral by type
or in any other manner as the Collateral Agent may determine regardless of whether any particular asset of such Grantor falls within the
scope of Article 9 of the Code or whether any particular asset of such Grantor constitutes part of the Collateral, and (B) contain any
other information required by Article 9 of the Code for the sufficiency or filing office acceptance of any financing statement, continuation
statement or amendment, including, without limitation, whether such Grantor is an organization, the type of organization and any organizational
identification number issued to such Grantor) and (iii) ratifies such authorization to the extent that the Collateral Agent has filed
any such financing or continuation statements, or amendments thereto, prior to the date hereof. A photocopy or other reproduction of this
Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted
by law.

 

(b) Each
Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact and proxy, with full authority in the place and stead
of such Grantor and in the name of such Grantor or otherwise, solely upon the occurrence and during the continuance of an Event of Default,
to take any action and to execute any instrument which the Collateral Agent may deem necessary or advisable to accomplish the purposes
of this Agreement, including, without limitation, (i) to obtain and adjust insurance required to be paid to the Collateral Agent pursuant
to Section 5(e) hereof, (ii) to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for
moneys due and to become due under or in respect of any Collateral, (iii) to receive, endorse, and collect any drafts or other instruments,
documents and chattel paper in connection with clause (i) or (ii) above, (iv) to file any claims or take any action or institute any proceedings
which the Collateral Agent may deem necessary or desirable for the collection of any Collateral or otherwise to enforce the rights of
the Collateral Agent and the Noteholders with respect to any Collateral, (v) to execute assignments, licenses and other documents to enforce
the rights of the Collateral Agent and the Noteholders with respect to any Collateral, and (vi) to verify any and all information with
respect to any and all Accounts. This power is coupled with an interest and is irrevocable until all of the Obligations are Paid in Full.

 

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(c) For
the purpose of enabling the Collateral Agent to exercise rights and remedies hereunder, at such time as the Collateral Agent shall be
lawfully entitled to exercise such rights and remedies and shall be entitled to exercise such rights and remedies pursuant to the terms
hereof, and for no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent assignable, an irrevocable, non-exclusive
license (exercisable without payment of royalty or other compensation to any Grantor) to use, assign, license or sublicense any Intellectual
Property now owned or hereafter acquired by such Grantor, wherever the same may be located, including in such license reasonable access
to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout
thereof. Notwithstanding anything contained herein to the contrary, but subject to the provisions of the Securities Purchase Agreement
that limit the right of any Grantor to dispose of its property, and Section 5(g) and Section 5(h) hereof, so long as no
Event of Default shall have occurred and be continuing, any Grantor may exploit, use, enjoy, protect, license, sublicense, assign, sell,
dispose of or take other actions with respect to the Intellectual Property in the ordinary course of its business and as otherwise expressly
permitted by any of the other Transaction Documents. In furtherance of the foregoing, unless an Event of Default shall have occurred and
be continuing, the Collateral Agent shall from time to time, upon the request of any Grantor, execute and deliver any instruments, certificates
or other documents, in the form so requested, which such Grantor shall have certified are appropriate (in such Grantor’s judgment)
to allow it to take any action permitted above (including relinquishment of the license provided pursuant to this clause (c) as to any
Intellectual Property). Further, upon the Payment in Full of all of the Obligations, the Collateral Agent (subject to Section 10(e)
hereof) shall release and reassign to any Grantor all of the Collateral Agent’s right, title and interest in and to the Intellectual
Property, and the Licenses, all without recourse, representation or warranty whatsoever. The exercise of rights and remedies hereunder
by the Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by each Grantor
in accordance with the second sentence of this clause (c). Each Grantor hereby releases the Collateral Agent from any claims, causes of
action and demands at any time arising out of or with respect to any actions taken or omitted to be taken by the Collateral Agent under
the powers of attorney granted herein other than actions taken or omitted to be taken through the Collateral Agent’s gross negligence
or willful misconduct, as determined by a final determination of a court of competent jurisdiction.

 

(d) If
any Grantor fails to perform any agreement or obligation contained herein, the Collateral Agent may himself perform, or cause performance
of, such agreement or obligation, in the name of such Grantor or the Collateral Agent, and the expenses of the Collateral Agent incurred
in connection therewith shall be payable by such Grantor pursuant to Section 8 hereof and shall be secured by the Collateral.

 

(e) The
powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty
upon him to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve
rights against prior parties or any other rights pertaining to any Collateral.

 

(f) Anything
herein to the contrary notwithstanding (i) each Grantor shall remain liable under the Licenses and otherwise with respect to any of the
Collateral to the extent set forth therein to perform all of its obligations thereunder to the same extent as if this Agreement had not
been executed, (ii) the exercise by the Collateral Agent of any of his rights hereunder shall not release any Grantor from any of its
obligations under the Licenses or otherwise in respect of the Collateral, and (iii) the Collateral Agent shall not have any obligation
or liability by reason of this Agreement under the Licenses or with respect to any of the other Collateral, nor shall the Collateral Agent
be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim
for payment assigned hereunder.

 

(g) As
long as no Event of Default shall have occurred and be continuing and until written notice (which may be concurrent with the exercise
of Collateral Agent’s remedies under Section 7 or otherwise) shall be given to the applicable Grantor:

 

(i) Each
Grantor shall have the right, from time to time, to vote and give consents with respect to the Pledged Equity, or any part thereof for
all purposes not inconsistent with the provisions of this Agreement, the Securities Purchase Agreement or any other Transaction Document;
provided, however, that no vote shall be cast, and no consent shall be given or action taken, which would have the effect of impairing
the position or interest of the Collateral Agent in respect of the Pledged Equity.

 

(h) 
As long as no Event of Default shall have occurred and be continuing and until written notice (which may be concurrent with the exercise
of Collateral Agent’s remedies under Section 7 or otherwise) shall be given to the applicable Grantor, each Grantor shall
be entitled, from time to time, to collect and receive for its own use all cash dividends and interest paid in respect of the Pledged
Equity to the extent not in violation of the Securities Purchase Agreement; provided, however, that until actually paid all rights to
such distributions shall remain subject to the Lien created by this Agreement; and

 

(i) All
dividends and interest and all other distributions in respect of any of the Pledged Equity, in each case, not paid in cash, whenever paid
or made, shall be delivered to the Collateral Agent to hold as Pledged Equity and shall, if received by any Grantor, be received in trust
for the benefit of the Collateral Agent (for the benefit the Noteholders), be segregated from the other property or funds of such Grantor,
and be forthwith delivered to the Collateral Agent as Pledged Equity in the same form as so received (with any necessary endorsement).

 

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SECTION 7. Remedies
Upon Event of Default; Application of Proceeds. If any Event of Default shall have occurred and be continuing:

 

(a) The
Collateral Agent may exercise in respect of the Collateral, in addition to any other rights and remedies provided for herein, in any other
Transaction Document or otherwise available to him, all of the rights and remedies of a secured party upon default under the Code (whether
or not the Code applies to the affected Collateral), and also may (i) take absolute control of the Collateral, including, without limitation,
transfer into the Collateral Agent’s name or into the name of his nominee or nominees (to the extent the Collateral Agent has not
theretofore done so) and thereafter receive, for the benefit of the Noteholders, all payments made thereon, give all consents, waivers
and ratifications in respect thereof and otherwise act with respect thereto as though he were the outright owner thereof, (ii) require
each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Collateral Agent forthwith, assemble
all or part of its respective Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place
or places to be designated by the Collateral Agent that is reasonably convenient to both parties, and the Collateral Agent may enter into
and occupy any premises owned or leased by any Grantor where the Collateral or any part thereof is located or assembled for a reasonable
period in order to effectuate the Collateral Agent’s rights and remedies hereunder or under law, without obligation to any Grantor
in respect of such occupation, and (iii) without notice except as specified below and without any obligation to prepare or process the
Collateral for sale, (A) sell the Collateral or any part thereof in one or more parcels at public or private sale (including, without
limitation, by credit bid), at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and
at such price or prices and upon such other terms as the Collateral Agent may deem commercially reasonable and/or (B) lease, license or
dispose of the Collateral or any part thereof upon such terms as the Collateral Agent may deem commercially reasonable. Each Grantor agrees
that, to the extent notice of sale or any other disposition of its respective Collateral shall be required by law, at least ten (10) days’
notice to any Grantor of the time and place of any public sale or the time after which any private sale or other disposition of its respective
Collateral is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale or other
disposition of any Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale
from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned. Each Grantor hereby waives any claims against the Collateral Agent and the Noteholders arising
by reason of the fact that the price at which its respective Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale or was less than the aggregate amount of the Obligations, even if the Collateral Agent accepts
the first offer received and does not offer such Collateral to more than one offeree, and waives all rights that any Grantor may have
to require that all or any part of such Collateral be marshaled upon any sale (public or private) thereof. Each Grantor hereby acknowledges
that (i) any such sale of its respective Collateral by the Collateral Agent shall be made without warranty, (ii) the Collateral Agent
may specifically disclaim any warranties of title, possession, quiet enjoyment or the like, and (iii) such actions set forth in clauses
(i) and (ii) above shall not adversely affect the commercial reasonableness of any such sale of Collateral. In addition to the foregoing,
(1) upon written notice to any Grantor from the Collateral Agent after and during the continuance of an Event of Default, such Grantor
shall cease any use of the Intellectual Property or any trademark, patent or copyright similar thereto for any purpose described in such
notice; (2) the Collateral Agent may, at any time and from time to time after and during the continuance of an Event of Default, upon
10 days’ prior notice to such Grantor, license, whether general, special or otherwise, and whether on an exclusive or non-exclusive
basis, any of the Intellectual Property, throughout the universe for such term or terms, on such conditions, and in such manner, as the
Collateral Agent shall in its sole discretion determine; and (3) the Collateral Agent may, at any time, pursuant to the authority granted
in Section 6 hereof or otherwise (such authority being effective upon the occurrence and during the continuance of an Event of
Default), execute and deliver on behalf of such Grantor, one or more instruments of assignment of the Intellectual Property (or any application
or registration thereof), in form suitable for filing, recording or registration in any country.

 

(b) Any
cash held by the Collateral Agent as Collateral and all Cash Proceeds received by the Collateral Agent in respect of any sale or disposition
of or collection from, or other realization upon, all or any part of the Collateral shall be applied as follows (subject to the provisions
of the Securities Purchase Agreement): first, to pay any fees, indemnities or expense reimbursements then due to the Collateral
Agent (including those described in Section 8 hereof); second, to pay any fees, indemnities or expense reimbursements then
due to the Noteholders, on a pro rata basis; third to pay interest due under the Notes owing to the Noteholders, on a pro rata
basis; fourth, to pay or prepay principal in respect of the Notes, whether or not then due, owing to the Noteholders, on a pro
rata basis; fifth, to pay or prepay any other Obligations, whether or not then due, in such order and manner as the Collateral
Agent shall elect, consistent with the provisions of the Securities Purchase Agreement and the other Transaction Documents. Any surplus
of such cash or Cash Proceeds held by the Collateral Agent and remaining after the Payment in Full of all of the Obligations shall be
paid over to whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct.

 

    20

     

    

 

(c) In
the event that the proceeds of any such sale, disposition, collection or realization are insufficient to pay all amounts to which the
Collateral Agent and the Noteholders are legally entitled, each Grantor shall be, jointly and severally, liable for the deficiency, together
with interest thereon at the highest rate specified in the Notes for interest on overdue principal thereof or such other rate as shall
be fixed by applicable law, together with the costs of collection and the reasonable fees, costs, expenses and other charges of any attorneys
employed by the Collateral Agent to collect such deficiency.

 

(d) To
the extent that applicable law imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner, each Grantor
acknowledges and agrees that it is commercially reasonable for the Collateral Agent (i) to fail to incur expenses deemed significant by
the Collateral Agent to prepare Collateral for disposition or otherwise to transform raw material or work in process into finished goods
or other finished products for disposition, (ii) 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, (iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated
on Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors
and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to
advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized
nature, (vi) to contact other Persons, whether or not in the same business as any Grantor, for expressions of interest in acquiring all
or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether
or not the Collateral is of a specialized nature, (viii) 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 capacity of doing so, or that match buyers and sellers of
assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession
or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Collateral Agent against risks of loss, collection
or disposition of Collateral or to provide to the Collateral Agent a guaranteed return from the collection or disposition of Collateral,
or (xii) to the extent deemed appropriate by the Collateral Agent, to obtain the services of brokers, investment bankers, consultants,
attorneys and other professionals to assist the Collateral Agent in the collection or disposition of any of the Collateral. Each Grantor
acknowledges that the purpose of this section is to provide non-exhaustive indications of what actions or omissions by the Collateral
Agent would be commercially reasonable in the Collateral Agent’s exercise of remedies against the Collateral and that other actions
or omissions by the Collateral Agent 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 any Grantor or to impose
any duties on the Collateral Agent that would not have been granted or imposed by this Agreement or by applicable law in the absence of
this section.

 

(e) The
Collateral Agent shall not be required to marshal any present or future collateral security (including, but not limited to, this 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, and all of the Collateral Agent’s rights hereunder and in respect of such collateral
security and other assurances of payment shall be cumulative and in addition to all other rights, however existing or arising. To the
extent that any Grantor lawfully may, each 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 Collateral Agent’s rights under this 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, each Grantor hereby irrevocably waives the
benefits of all such laws.

 

    21

     

    

 

SECTION 8. Indemnity
and Expenses.

 

(a) Each
Grantor agrees, jointly and severally, to defend, protect, indemnify and hold the Collateral Agent, each Noteholder and all of their respective
shareholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’
agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) harmless from and against any and all claims, damages, losses, liabilities, obligations, penalties, fees, costs and expenses
(including, without limitation, reasonable legal fees, costs, expenses, and disbursements of such Person’s counsel) as a result
of, arising out of, or relating to this Agreement (including, without limitation, enforcement of this Agreement) (the “Indemnified
Liabilities”), except to the extent resulting from such Person’s gross negligence or willful misconduct, as determined
by a final judgment of a court of competent jurisdiction no longer subject to appeal. To the extent that the foregoing undertaking by
any Grantor hereunder may be unenforceable for any reason, such Grantor shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities that is permissible under applicable law. Except as otherwise set forth herein, the mechanics and
procedures with respect to the rights and obligations under this Section 8(a) shall be the same as those set forth in Section 6
of the Registration Rights Agreement.

 

(b) Each
Grantor agrees, jointly and severally, to pay to the Collateral Agent upon demand the amount of any and all costs and expenses, including
the reasonable fees, costs, expenses and disbursements of counsel for the Collateral Agent and of any experts and agents (including, without
limitation, any collateral trustee which may act as agent of the Collateral Agent), which the Collateral Agent may incur in connection
with (i) the execution, delivery, recordation, administration, amendment, waiver or other modification or termination of this Agreement,
(ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any Collateral, (iii)
the exercise or enforcement of any of the rights of the Collateral Agent hereunder, or (iv) the failure by any Grantor to perform or observe
any of the provisions hereof.

 

SECTION 9. Notices,
Etc. All notices and other communications provided for hereunder shall be in writing and shall be mailed (by certified mail, first-class
postage prepaid and return receipt requested), telecopied, e-mailed or delivered, if to any Grantor, to the Company’s address, or
if to the Collateral Agent or any Noteholder, to him, her or it at his, her or its respective address, each as set forth in Section 9(f)
of the Securities Purchase Agreement; or as to any such Person, at such other address as shall be designated by such Person in a written
notice to all other parties hereto complying as to delivery with the terms of this Section 9. All such notices and other communications
shall be effective (a) if sent by certified mail, return receipt requested, when received or three (3) Business Days after deposited in
the mails, whichever occurs first, (b) if telecopied or e-mailed, when transmitted (during normal business hours) and confirmation is
received, and otherwise, the day after the notice or communication was transmitted and confirmation is received, or (c) if delivered in
person, upon delivery. For the avoidance of doubt, each Foreign Subsidiary that is a Grantor hereby appoints the Company as its agent
for receipt of service of process and all notices and other communications in the United States at the address specified below.

 

    22

     

    

 

SECTION 10. Miscellaneous.

 

(a) No
amendment of any provision of this Agreement shall be effective unless it is in writing and signed by each Grantor and the Collateral
Agent (and approved by the Required Holders), and no waiver of any provision of this Agreement, and no consent to any departure by each
Grantor therefrom, shall be effective unless it is in writing and signed by each Grantor and the Collateral Agent (and approved by the
Required Holders), and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which
given. No amendment, modification or waiver of this Agreement shall be effective to the extent that it (1) applies to fewer than
all of the holders of Notes or (2) imposes any obligation or liability on any holder of Notes without such holder’s prior written
consent (which may be granted or withheld in such holder’s sole discretion).

 

(b) No
failure on the part of the Collateral Agent to exercise, and no delay in exercising, any right reasonably hereunder or under any of the
other Transaction Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right reasonably preclude
any other or further exercise thereof or the exercise of any other right. The rights and remedies of the Collateral Agent or any Noteholder
provided herein and in the other Transaction Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies
provided by law. The rights of the Collateral Agent or any Noteholder under any of the other Transaction Documents against any party thereto
are not conditional or contingent on any attempt by such Person to exercise any of its rights under any of the other Transaction Documents
against such party or against any other Person, including but not limited to, any Grantor.

 

(c) Any
provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or thereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

(d) This
Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect until Payment in
Full of the Obligations, and (ii) be binding on each Grantor and all other Persons who become bound as debtor to this Agreement in accordance
with Section 9-203(d) of the Code and shall inure, together with all rights and remedies of the Collateral Agent and the Noteholders hereunder,
to the benefit of the Collateral Agent and the Noteholders and their respective permitted successors, transferees and assigns. Without
limiting the generality of clause (ii) of the immediately preceding sentence, without notice to any Grantor, the Collateral Agent and
the Noteholders may assign or otherwise transfer their rights and obligations under this Agreement and any of the other Transaction Documents
(solely to the extent expressly permitted pursuant to the other Transaction Documents), to any other Person and such other Person shall
thereupon become vested with all of the benefits in respect thereof granted to the Collateral Agent and the Noteholders herein or otherwise.
Upon any such assignment or transfer, all references in this Agreement to the Collateral Agent or any such Noteholder shall mean the assignee
of the Collateral Agent or such Noteholder. None of the rights or obligations of any Grantor hereunder may be assigned or otherwise transferred
without the prior written consent of the Collateral Agent, and any such assignment or transfer without such consent of the Collateral
Agent shall be null and void.

 

    23

     

    

 

(e) Upon
the Payment in Full of the Obligations, (i) this Agreement and the security interests created hereby shall terminate and all rights to
the Collateral shall revert to the respective Grantor that granted such security interests hereunder, and (ii) the Collateral Agent will,
upon any Grantor’s request and at such Grantor’s expense, (A) return to such Grantor such of the Collateral as shall not have
been sold or otherwise disposed of or applied pursuant to the terms hereof and (B) execute and deliver to such Grantor such documents
as such Grantor shall reasonably request to evidence such termination, all without any representation, warranty or recourse whatsoever.
If any of the Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the Transaction
Documents, then any security interests created by this Agreement on such Collateral (but not as to the Proceeds of the sale of such Collateral)
shall automatically terminate subject to the other provisions hereof, and Collateral Agent will, upon any Grantor’s request and
at such Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence
such termination, all without any representation, warranty or recourse whatsoever. Notwithstanding the foregoing, to the extent that any
payment received by the Collateral Agent or any Noteholder on account of the Obligations (from whatever source and whether before, after
or arising out of any enforcement or exercise of rights) is subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to any Grantor, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause
of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied this Agreement
and the Liens granted hereunder shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred.

 

(f) Governing
Law; Jurisdiction; Jury Trial.

 

(i) All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws
of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.

 

(ii) Each
Grantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough
of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents
or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim, defense or objection that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing
a copy thereof to such party at the address for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in anyway any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Collateral Agent or the Noteholders from bringing suit or taking other legal action against any Grantor in any other jurisdiction
to collect on a Grantor’s obligations or to enforce a judgment or other court ruling in favor of the Collateral Agent or a Noteholder.

 

    24

     

    

 

(iii) WAIVER
OF JURY TRIAL, ETC. EACH GRANTOR IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION
DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

(iv) Each
Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding referred
to in this Section any special, exemplary, indirect, incidental, punitive or consequential damages.

 

(g) Section
headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

(h) This
Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall
be deemed to be an original, but all of which taken together constitute one and the same Agreement. Delivery of any executed counterpart
of a signature page of this Agreement by pdf, facsimile or other electronic transmission shall be effective as delivery of a manually
executed counterpart of this Agreement.

 

(i) This
Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is
rescinded or must otherwise be returned by the Collateral Agent, any Noteholder or any other Person (upon (i) the occurrence of any Insolvency
Proceeding of any of the Company or any Grantor or (ii) otherwise, in all cases as though such payment had not been made).

 

SECTION 11. Material
Non-Public Information. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Agreement, unless
the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information relating
to the Company or any of its Subsidiaries, the Company shall within one (1) Business Day after any such receipt or delivery publicly disclose
such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice
contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to the Collateral
Agent and any applicable Noteholder contemporaneously with delivery of such notice, and in the absence of any such indication, the Collateral
Agent and each Noteholder shall be allowed to presume that all matters relating to such notice do not constitute material, non-public
information relating to the Company or its Subsidiaries. The foregoing shall not apply to notices or other information provided by the
Company or any of its Subsidiaries to the Collateral Agent that may constitute material, non-public information relating to the Company
or any of its Subsidiaries that the Collateral Agent agrees in writing to receive, with the understanding that such information shall
not be publicly disclosed under this Section 11. Nothing contained in this Section 11 shall limit any obligations of the
Company or any rights of the Collateral Agent or any Noteholder, under Section 4(k) of the Securities Purchase Agreement.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    25

     

    

 

IN WITNESS WHEREOF, each Grantor
has caused this Agreement to be executed and delivered by its officer thereunto duly authorized, as of the date first above written.

 

	 	GRANTORS:
	 	 
	 	IPSIDY, INC.
	 	 
	 	By:	/s/ Stuart Stoller
	 	Name: 	Stuart Stoller
	 	Title:	Chief Financial Officer
	 	 
	 	FIN HOLDINGS INC.
	 	 
	 	By:	/s/ Stuart Stoller
	 	Name:	Stuart Stoller
	 	Title:	Chief Financial Officer
	 	 
	 	INNOVATION IN MOTION, INC.
	 	 
	 	By:	/s/ Stuart Stoller
	 	Name:	Stuart Stoller
	 	Title:	Chief Financial Officer
	 	 
	 	ID SOLUTIONS, INC.
	 	 
	 	By:	/s/ Stuart Stoller
	 	Name:	Stuart Stoller
	 	Title:	Chief Financial Officer

 

[Signature Page to Security Agreement –
Ipsidy (March 2022)]

 

     

     

    

 

	COLLATERAL AGENT:	 
	 	 
	STEPHEN GARCHIK	 
	 	 
	/s/ Stephen Garchik	 

 

[Signature Page to Security Agreement –
Ipsidy (March 2022)]

 

     

     

    

 

EXHIBIT A

 

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

 

INTELLECTUAL PROPERTY
SECURITY AGREEMENT

 

This INTELLECTUAL PROPERTY
SECURITY AGREEMENT (as amended, modified, supplemented, renewed, restated or replaced from time to time, this “IP Security Agreement”),
dated [_____________], is made by the Persons listed on the signature pages hereof (collectively, the “Grantors”) in
favor of Stephen Garchik, in his capacity as collateral agent (the “Collateral Agent”) for the Noteholders. All capitalized
terms not otherwise defined herein shall have the meanings respectively ascribed thereto in the Security Agreement (as defined below).

 

WHEREAS, Ipsidy, Inc., a Delaware
corporation (the “Company”), and each party listed as a “Buyer” therein (collectively, the “Buyers”)
are parties to that certain Securities Purchase Agreement, dated March 21, 2022, pursuant to which the Company shall be required to sell,
and the Buyers shall purchase or have the right to purchase, the Notes (as defined therein) issued pursuant thereto (as such Notes may
be amended, modified, supplemented, renewed, restated or replaced from time to time in accordance with the terms thereof, collectively,
the “Notes”);

 

WHEREAS, it is a condition
precedent to the purchase of the Notes under the Securities Purchase Agreement that each Grantor has executed and delivered that certain
Security and Pledge Agreement, dated March 21, 2022, made by the Grantors to the Collateral Agent (as amended, modified, supplemented,
renewed, restated or replaced from time to time, the “Security Agreement”); and

 

WHEREAS, under the terms of
the Security Agreement, the Grantors have granted to the Collateral Agent, for the ratable benefit of the Collateral Agent and the Noteholders,
a security interest in, among other property, certain intellectual property of the Grantors, and have agreed as a condition thereof to
execute this IP Security Agreement for recording with the U.S. Patent and Trademark Office, the United States Copyright Office and other
governmental authorities, as applicable.

 

WHEREAS, the Grantors have
determined that the execution, delivery and performance of this IP Security Agreement directly benefits, and is in the best interest of,
the Grantors.

 

NOW, THEREFORE, in consideration
of the premises and the agreements herein and in order to induce the Buyers to perform under the Securities Purchase Agreement, each Grantor
agrees with the Collateral Agent, for the benefit of the Noteholders, as follows

 

SECTION 1. Grant of
Security. Each Grantor hereby grants to the Collateral Agent for the ratable benefit of the Collateral Agent and the Noteholders a
security interest in all of such Grantor’s right, title and interest in and to the following (the “Collateral”):

 

(i) the
Patents and Patent applications set forth in Schedule A hereto;

 

(ii) the
Trademark and service mark registrations and applications set forth in Schedule B hereto(provided that no security interest shall
be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant
of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable
federal law), together with the goodwill symbolized thereby;

 

(iii) all
Copyrights, whether registered or unregistered, now owned or hereafter acquired by such Grantor, including, without limitation, the copyright
registrations and applications and exclusive copyright licenses set forth in Schedule C hereto;

 

(iv) all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all rights
in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world and all other
rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto;

 

     

     

    

 

(v) any
and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse
or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover,
such damages; and

 

(vi) any
and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting
obligations relating to, any and all of the Collateral of or arising from any of the foregoing.

 

SECTION 2. Security
for Obligations. The grant of a security interest in, the Collateral by each Grantor under this IP Security Agreement secures the
payment of all Obligations of such Grantor now or hereafter existing under or in respect of the Notes and the Transaction Documents, whether
direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees,
indemnifications, contract causes of action, costs, expenses or otherwise.

 

SECTION 3. Recordation.
Each Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents and the Commissioner for Trademarks
and any other applicable government officer record this IP Security Agreement.

 

SECTION 4. Execution
in Counterparts. This IP Security Agreement may be executed in any number of counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

SECTION 5. Grants, Rights
and Remedies. This IP Security Agreement has been entered into in conjunction with the provisions of the Security Agreement. Each
Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies of, the
Collateral Agent with respect to the Collateral are more fully set forth in the Security Agreement, the terms and provisions of which
are incorporated herein by reference as if fully set forth herein.

 

SECTION 6. Governing
Law; Jurisdiction; Jury Trial.

 

(i) All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws
of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.

 

(ii) Each
Grantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough
of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents
or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim, defense or objection that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing
a copy thereof to such party at the address for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to
preclude the Collateral Agent or the Noteholders from bringing suit or taking other legal action against any Grantor in any other jurisdiction
to collect on a Grantor’s obligations or to enforce a judgment or other court ruling in favor of the Collateral Agent or a Noteholder.

 

(iii) WAIVER
OF JURY TRIAL, ETC. EACH GRANTOR IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION
DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

(iv) Each
Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding referred
to in this Section any special, exemplary, indirect, incidental, punitive or consequential damages.

 

[The remainder of the page is intentionally left
blank]

 

    A-2

     

    

 

IN WITNESS WHEREOF, each Grantor has caused this
Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

 

	 	[GRANTOR]
	 	 
	 	By:	              
	 	Name:
	 	Title:
	 	 
	 	Address for Notices:
	 	[INSERT GRANTOR ADDRESS]

 

[Signature Page to IP Security Agreement]

 

    A-3

     

    

 

Schedule A

 

Patents

 

	Grantor	 	 	Country	 	 	Title	 	 	Application or
 Patent No.	 	 	Application 
 or 
 Registration 
 Date	 	 	Assignees	 
	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 

 

     

     

    

 

Schedule B

 

Trademarks

 

	Grantor	 	 	Country	 	 	Title	 	 	Application or
 Patent No.	 	 	Application 
 or
 Registration
 Date	 	 	Assignees	 
	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 

 

     

     

    

 

Schedule C

 

Copyrights

 

     

     

    

 

SCHEDULE I

 

Legal Names; Organizational Identification
Numbers;

 

States or Jurisdiction of Organization

 

	Grantor’s Name	 	 	State of

 Organization	 	 	Federal Employer 

I.D.	 	 	Organizational I.D.	 
	 	           	 	 	 	              	 	 	 	               	 	 	 	             	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Changes during the five (5) year period prior
to the Closing Date

 

     

     

    

 

SCHEDULE II

 

Patents

 

	Grantor	 	 	Country	 	 	Title	 	 	Application or
 Patent No.	 	 	Application
 or
 Registration
 Date	 	 	Assignees	 
	 	      	 	 	 	         	 	 	 	        	 	 	 	           	 	 	 	              	 	 	 	              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Trademarks

 

	Grantor	 	 	Country	 	 	Trademark	 	 	Trademark

 No.	 	 	Filing

 Date	 	 	Publication

 Date	 	 	Registration

 Date	 	 	Assignees	 
	 	             	 	 	 	          	 	 	 	        	 	 	 	        	 	 	 	           	 	 	 	         	 	 	 	          	 	 	 	          	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

     

     

    

 

Copyrights

 

Licenses -

 

	Licensor	 	 	Licensee	 	 	 	 	 	Type	 	 	Scope	 	 	Term	 
	 	           	 	 	 	           	 	 	 	        	 	 	 	          	 	 	 	           	 	 	 	       	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

     

     

    

 

SCHEDULE III

 

Locations

 

	Grantor	 	 	Chief Executive 

Office	 	 	Chief Place of

 Business	 	 	Books and 

Records	 	 	Inventory, 

Equipment, Etc.	 
	 	      	 	 	 	    	 	 	 	            	 	 	 	            	 	 	 	               	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

     

     

    

 

SCHEDULE IV

Promissory Notes, Pledged Equity, Controlled
Accounts

 

Pledged Equity

 

	Grantor	 	 	Name of Issuer/ 

Pledged Entity	 	 	Description	 	 	Class	 	 	Certificate 

No.(s)	 
	 	           	 	 	 	           	 	 	 	             	 	 	 	       	 	 	 	            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Controlled Accounts

 

	Grantor	 	 	Name and Address of Institution	 	 	Account No.	 
	 	             	 	 	 	            	 	 	 	            	 
	 	 	 	 	 	 	 	 	 	 	 

 

Foreign Currency Controlled Accounts

 

     

     

    

 

SCHEDULE V

 

Financing Statements

 

	Grantor	 	 	Jurisdiction for Filing Financing Statement	 
	 	          	 	 	 	         	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

     

     

    

 

SCHEDULE VI

 

Commercial Tort Claims

 

     

     

    

 

SCHEDULE VII

 

Permitted Liens

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]