Document:

NOTE
PURCHASE AGREEMENT

 

THIS
NOTE PURCHASE AGREEMENT (“Agreement”) is made as of November 22, 2017 (the “Execution Date”)
by and between Marina Biotech, Inc., a Delaware corporation (the “Company”), and River Charitable Remainder
Unit Trust, FBO Isaac Blech, July 20, 1987, Isaac Blech Trustee (the “Lender”). Capitalized terms used but
not defined herein shall have the respective meanings ascribed to such terms in the Note (as defined below).

 

WHEREAS,
the Lender wishes to provide financing to the Company through the issuance by the Company to the Lender of the Note (as defined
below), and the Company desires to accept such financing and to issue the Note pursuant to the terms and conditions set forth
below;

 

NOW
THEREFORE, in consideration of the mutual promises and covenants set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Company and the Lender agree as follows:

 

1.
Definitions.

 

(a)
“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities
Act.

 

(b)
“Change of Control” shall mean:

 

(i)
The acquisition by any individual, entity or group (within the meaning of Rule 13d-3 promulgated under the Exchange Act or any
successor provision) (any of the foregoing hereafter a “Person”) of forty percent (40%) or more of either (a)
the then outstanding shares of the capital stock of the Company (the “Outstanding Capital Stock”) or (b) the
combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors
(the “Voting Securities”), provided, however, that such an acquisition by one of the following
shall not constitute a change of control: (1) the Company or any of its subsidiaries, or any employee benefit plan (or related
trust) sponsored or maintained by the Company or any of its subsidiaries or (2) any Person that is eligible, pursuant to Rule
13d-1(b) under the Exchange Act, to file a statement on Schedule 13G with respect to its beneficial ownership of Voting Securities,
whether or not such Person shall have filed a statement on Schedule 13G, unless such Person shall have filed a statement on Schedule
13D with respect to beneficial ownership of forty percent (40%) or more of the Voting Securities or (3) any corporation with respect
to which, following such acquisition, more than sixty percent (60%) of both the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally
in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the Outstanding Capital Stock or Voting Securities immediately prior
to such acquisition in substantially the same proportions as their ownership, immediately prior to such acquisition, of the Outstanding
Capital Stock or Voting Securities, as the case may be; or

 

    	 

     

    

 

(ii)
Individuals who, as of the date of issuance of the Note constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board, provided that any individual becoming a director subsequent to
the Closing Date whose election or nomination for election by the Company’s shareholders was approved by a vote of at least
a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the Directors of the Company (as such terms are used
in Rule 14a-11 of Regulation 14A, or any successor section, promulgated under the Exchange Act); or

 

(iii)
Approval by the shareholders of the Company of a reorganization, merger or consolidation (a “Business Combination”),
in each case, with respect to which all or substantially all holders of the Outstanding Capital Stock and Voting Securities immediately
prior to such Business Combination do not, following such Business Combination, beneficially own, directly or indirectly, in substantially
the same proportions, more than sixty percent (60%) of, respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may
be, of the corporation resulting from the Business Combination; or

 

(iv)
A complete liquidation or dissolution of the Company; or

 

(v)
A sale or other disposition of all or substantially all of the assets of the Company other than to a corporation with respect
to which, following such sale or disposition, more than sixty percent (60%) of the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors are
then owned beneficially, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Capital Stock or Voting Securities immediately prior to such sale or disposition in substantially
the same proportions as their ownership of the Outstanding Capital Stock and Voting Securities, as the case may be, immediately
prior to such sale or disposition.

 

(c)
“Commission” shall mean the Securities and Exchange Commission.

 

(d)
“Common Stock” shall mean the shares of the common stock, par value $0.006 per share, of the Company.

 

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(e)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(f)
“Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess of $25,000 (other than
trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations
in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated balance
sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $25,000 due under
leases required to be capitalized in accordance with GAAP (as hereinafter defined).

 

(g)
“IP Security Agreement” shall mean that certain Intellectual Property Security Agreement dated as of the Closing
Date by the Company in favor of the Lender.

 

(h)
“Liens” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right
or other restriction.

 

(i)
“Maturity Date” shall be as set forth in each Note (as defined below).

 

(j)
“Note” shall mean the promissory note issued to the Lender pursuant to Section 2.1 below, in the aggregate
principal amount of $500,000, the form of which is attached hereto as Exhibit A.

 

(k)
“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity
of any kind.

 

(l)
“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal
investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

(m)
“Purchase Price” shall mean $500,000.

 

(n)
“Securities Act” shall mean the Securities Act of 1933, as amended.

 

(o)
“SEC Reports” shall mean all reports, schedules, forms, statements and other documents required to be filed
by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two
years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material).

 

(p)
“Security Agreement” shall mean that certain Security Agreement dated as of the Closing Date by the Company
in favor of the Lender.

 

(q)
“Subsidiary” means any subsidiary of the Company as set forth in the SEC Reports (other than the Company’s
non-operating subsidiary, Atossa HealthCare, Inc.) and shall, where applicable, also include any direct or indirect subsidiary
of the Company formed or acquired after the date hereof.

 

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(r)
“Transaction Documents” means the Note, this Agreement, the Security Agreement and the IP Security Agreement.

 

2.
Issuance of the Note.

 

2.1
General. In consideration of (and subject to)
the payment of the Purchase Price by the Lender, the Company shall sell and issue the Note to the Lender on the Closing Date (as
defined below). The Note shall be convertible as set forth in the Note.

 

3.
Closing Mechanics.

 

3.1
Closing. The closing (the “Closing”)
of the purchase and sale of the Note shall take place on the date of this Agreement or at such later time as the Company and the
Lender agree upon orally or in writing. At the Closing, the Lender shall deliver the Purchase Price to the Company by wire transfer
of immediately available funds to an account designated in writing by the Company to the Lender prior to the Closing, and the
Company shall deliver to the Lender the Note duly executed by the Company, in return for the Purchase Price provided to the Company.
Also at the Closing, the Company shall deliver a duly executed Security Agreement and IP Security Agreement to the Lender, and
the Lender shall deliver a duly executed Security Agreement and IP Security Agreement to the Company. The date of the Closing
shall be referred to herein as the “Closing Date”.

 

4.
Representations and Warranties of the Company.
In connection with the purchase and sale of the Note provided for herein, the Company hereby represents and warrants to the Lender
that:

 

4.1
Organization, Good Standing and Qualification.
The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use
its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation
nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as
a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could
not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of
any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii)
or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

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4.2
Authorization. All Company action has been taken
on the part of the Company necessary for the authorization, execution and delivery of this Agreement and the Note. Except as may
be limited by applicable bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement of creditors’
rights, the Company has taken all action required to make all of the obligations of the Company reflected in the provisions of
this Agreement and the other Transaction Documents, the valid and enforceable obligations they purport to be. 

 

4.3
Compliance with Other Instruments. Neither the authorization, execution and delivery of this Agreement, nor the issuance
and delivery of the Note, will constitute or result in a material default or violation of any law or regulation applicable to
the Company or any material term or provision of the Company’s current Certificate of Incorporation (as amended and restated
to date), By-laws (as amended and restated to date) or any material agreement or instrument by which it is bound or to which its
properties or assets are subject.

 

4.4
Subsidiaries. All of the direct and indirect subsidiaries of the Company are as set forth in the SEC Reports. The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens,
and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other
references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

4.5
Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws
(collectively, the “Required Approvals”).

 

4.6
[Intentionally omitted].

 

4.7
Capitalization. The capitalization of the Company is as set forth on Schedule 4.7. The Company has not issued any
capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee
stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the
Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding
as of the date of the most recently filed periodic report under the Exchange Act. Except as set forth on Schedule 4.7,
no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents. Except as set forth on Schedule 4.7, and except as a result of the purchase
and sale of the Note, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any
Person any right to subscribe for or acquire any shares of Common Stock or the capital stock of any Subsidiary, or contracts,
commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional
shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities
will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person and will not
result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of
such securities. There are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation
rights or “phantom stock” plans or any similar plan or agreement. All of the outstanding shares of capital stock of
the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal
and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights
to subscribe for or purchase securities. Except as set forth on Schedule 4.7, no further approval or authorization of any
stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders
agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company
is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

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4.8
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective
dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as
applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

4.9
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i)
there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse
Effect, (ii) except as set forth on Schedule 4.9, the Company has not incurred any liabilities (contingent or otherwise)
other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and
(B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made
any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase
or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or
Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any
request for confidential treatment of information. No event, liability, fact, circumstance, occurrence or development has occurred
or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses,
properties, operations, assets or financial condition, that would be required to be disclosed by the Company under applicable
securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading
Day prior to the date that this representation is made.

 

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4.10
Litigation. Except as set forth on Schedule 4.10, there is no action, suit, inquiry, notice of violation, proceeding
or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any
of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Note or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any
director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal
or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there
is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or
officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

4.11
Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such
Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company
and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive
officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not
subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and
its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment
and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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4.12
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred
that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any
of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree
or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance
or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating
to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters,
except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

4.13
Environmental Laws. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws
relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land
surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder
(“Environmental Laws”); (ii) have received all permits licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such
permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

4.14
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material Permit.

 

4.15
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and
the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries
and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance
with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company
and the Subsidiaries are in compliance.

 

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4.16
Intellectual Property. To the Company’s knowledge, the Company and the Subsidiaries have, or have rights to use,
all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights,
licenses and other intellectual property rights and similar rights as described in the SEC Reports as necessary or required for
use in connection with their respective businesses and which the failure to so have could have a Material Adverse Effect (collectively,
the “Intellectual Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice
(written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected
to expire or terminate or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary
has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a
claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person,
except as could not have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all
such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual
Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

4.17
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Purchase
Price. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

 

4.18
Transactions With Affiliates and Employees. Except as set forth on Schedule 4.18, none of the officers or directors
of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from providing for the borrowing of money from or lending of money to, or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member
or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements
under any stock option plan of the Company.

 

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4.19
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and
regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. Except
as set forth on Schedule 4.19, the Company and the Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP
and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. Except as set forth on Schedule 4.19, the Company and
the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required
to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of
the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since
the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the
Exchange Act) that have materially affected, or is reasonably likely to materially affect, the internal control over financial
reporting of the Company and its Subsidiaries.

 

4.20
Private Placement. Assuming the accuracy of the Lender’s representations and warranties set forth in Section 5, no
registration under the Securities Act is required for the offer and sale of the Note by the Company to the Lender as contemplated
hereby.

 

4.21
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

4.22
No Disagreements with Accountants and Lawyers. Except as set forth on Schedule 4.22, there are no disagreements
of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and
lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants
and lawyers which could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents.

 

4.23
Seniority. As of the Closing Date, no Indebtedness or other claim against the Company is senior to the Note in right of
payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured by
purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations
(which is senior only as to the property covered thereby).

 

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4.24
No Integrated Offering. Assuming the accuracy of the Lender’s representations and warranties set forth in Section
5, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Note to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the
registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading
Market on which any of the securities of the Company are listed or designated.

 

4.25
No Disqualification Events. With respect to the Note to be offered and sold hereunder in reliance on Rule 506 under the
Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer
of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”
and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for
a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any
Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure
obligations under Rule 506(e), and has furnished to the Lender a copy of any disclosures provided thereunder.

 

5.
Representations and Warranties of the Lender.
In connection with the purchase and sale of Note provided for herein, the Lender hereby represents and warrants to the Company
that:

 

5.1
Authorization. This Agreement constitutes the
Lender’s valid and legally binding obligation, enforceable in accordance with its terms, except as may be limited by (i)
applicable bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement of creditors’
rights and (ii) laws relating to the availability of specific performance, injunctive relief or other equitable remedies. The
Lender represents that it has full power and authority to enter into this Agreement.

 

5.2
Purchase Entirely for Own Account. The Lender
acknowledges that this Agreement is made with the Lender in reliance upon the Lender’s representation to the Company that
the Note and the securities of the Company that may be issuable upon conversion of the Note (collectively, the “Securities”)
will be acquired for investment for the Lender’s own account, not as a nominee or agent, and not with a view to the resale
or distribution of any part thereof, and that the Lender has no present intention of selling, granting any participation in, or
otherwise distributing the same. By executing this Agreement, the Lender further represents that the Lender does not have any
contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to
any third person, with respect to the Securities.

 

5.3
Disclosure of Information. The Lender acknowledges
that it has received all the information it considers necessary or appropriate for deciding whether to acquire the Securities.
The Lender further represents that it has had an opportunity to ask questions of and receive answers from the Company regarding
the terms and conditions of the offering of the Securities, and that such questions have been answered to the Lender’s satisfaction.

 

    	11

     

    

 

5.4
Investment Experience. The Lender is an investor in securities of companies in the development stage and acknowledges that
it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial
or business matters that it is capable of evaluating the merits and risks of the investment in the Securities. If other than an
individual, the Lender also represents it has not been organized solely for the purpose of acquiring the Securities.

 

5.5
Accredited Investor. The Lender is an “accredited
investor” within the meaning of Rule 501 of Regulation D of the Securities Act of 1933, as amended (the “Securities
Act”), as presently in effect, and has checked the applicable box on Exhibit B attached to this Agreement as
to the Lender’s qualification as an accredited investor.

 

5.6
Restricted Securities. The Lender understands
that the Securities are characterized as “restricted securities” under the federal securities laws inasmuch as they
are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the Securities Act only in certain limited circumstances. The Lender
represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the
resale limitations imposed thereby and by the Securities Act.

 

5.7
Legends. It is understood that the Securities may bear a legend substantially as follows: 

 

“THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD
PURSUANT TO RULE 144 UNDER SUCH ACT.”

 

5.8
Bad Actor Representations. Neither the Lender nor any beneficial owner of the Lender that would be regarded as a beneficial
owner of the Company’s outstanding voting equity securities (upon conversion of the Note):

 

(a)
has been convicted, within ten (10) years before the date of this Agreement, of any felony or misdemeanor: (x) in connection with
the purchase or sale of any security; (y) involving the making of any false filing with the Securities and Exchange Commission
(the “SEC”); or (z) arising out of the conduct of the business of an underwriter, broker, dealer, municipal
securities dealer, investment adviser, or paid solicitor of purchasers of securities;

 

    	12

     

    

 

(b)
is subject to any order, judgment or decree of any court of competent jurisdiction, entered within five (5) years before the date
of this Agreement, that, as of the date of this Agreement, restrains or enjoins such person from engaging or continuing to engage
in any conduct or practice: (x) in connection with the purchase or sale of any security; (y) involving the making of any false
filing with the SEC; or (z) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities
dealer, investment adviser, or paid solicitor of purchasers of securities;

 

(c)
is subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a
state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission (or an
agency or officer of a state performing like functions); an appropriate federal banking agency; the Commodity Futures Trading
Commission; or the National Credit Union Administration that: (x) as of the date of this Agreement, bars the person from: (1)
association with an entity regulated by such commission, authority, agency, or officer; (2) engaging in the business of securities,
insurance or banking; or (3) engaging in savings association or credit union activities; or (y) constitutes a final order based
on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct entered within ten (10)
years before the date of this Agreement;

 

(d)
is subject to an order of the SEC entered pursuant to Section 15(b) or 15B(c) of the Exchange Act, or Section 203(e) or (f) of
the Investment Advisers Act of 1940, as amended (the “Advisers Act”), that, as of the date of this Agreement:
(x) suspends or revokes such person’s registration as a broker, dealer, municipal securities dealer, or investment adviser;
(y) places limitations on the activities, functions or operations of such person; or (z) bars such person from being associated
with any entity or from participating in the offering of any penny stock;

 

(e)
is subject to any order of the SEC entered within five (5) years before the date of this Agreement that, as of the date of this
Agreement, orders the person to cease and desist from committing or causing a violation or future violation of: (x) any scienter-based
anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section
10(b) of the Exchange Act, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Advisers Act, or any other rule or regulation
under any such law; or (y) Section 5 of the Securities Act;

 

(f)
is suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities
exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent
with just and equitable principles of trade;

 

(g)
has filed (as a registrant or issuer), or was or was named as an underwriter in, any registration statement or Regulation A offering
statement filed with the SEC that, within five (5) years before the date of this Agreement, was the subject of a refusal order,
stop order, or order suspending the Regulation A exemption, or is, as of the date of this Agreement, the subject of an investigation
or proceeding to determine whether a stop order or suspension order should be issued; or

 

    	13

     

    

 

(h)
is subject to a United States Postal Service false representation order entered within five (5) years before the date of this
Agreement, or is, as of the date of this Agreement, subject to a temporary restraining order or preliminary injunction with respect
to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through
the mail by means of false representations.

 

The
Lender agrees promptly to notify the Company should the Lender become aware of any change in the information set forth in this
Section 5.8. The Lender acknowledges that the Company and/or its affiliates and/or any agents or representatives of the foregoing
may be required to disclose to other prospective investors in the Company and/or affiliated issuers information provided by the
Lender relating to any of such information, and consents to such disclosures.

 

5.9
Execution of Financing Documents. The Lender hereby acknowledges and agrees that, if the Note is converted in connection
with a Qualified Financing (as defined in the Note), then the Lender shall be required to (and hereby agrees that it shall) execute
and deliver to the Company, in connection with and as a condition to such conversion and the issuance by the Company of any securities
of the Company as a result thereof, such agreements (or counterpart signature pages or joinders thereto, as applicable) relating
to the purchase and sale of such securities as were executed and delivered by the purchasers of such securities in the Qualified
Financing as may reasonably be requested by the Company.

 

6.
Defaults and Remedies.

 

6.1
Events of Default. The following events shall be considered Events of Default with respect to the Note:

 

(a)
The Company shall default in the payment of any part of the principal or unpaid accrued interest on the Note for more than twenty
(20) days after such payments are due;

 

(b)
The Company shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts as
they become due, or shall file a voluntary petition for bankruptcy, or shall file any petition or answer seeking for itself any
reorganization, arrangement, composition, readjustment, dissolution or similar relief under any present or future statute, law
or regulation, or shall file any answer admitting the material allegations of a petition filed against the Company in any such
proceeding, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of the Company,
or of all or any substantial part of the properties of the Company, or the Company or its directors shall take any action looking
to the dissolution or liquidation of the Company;

 

(c)
Within twenty (20) days after the commencement of any proceeding against the Company seeking any bankruptcy reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation,
such proceeding shall not have been dismissed, or within twenty (20) days after the appointment without the consent or acquiescence
of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the
Company, such appointment shall not have been vacated;

 

    	14

     

    

 

(d)
The Company shall fail to observe or perform any other obligation to be observed or performed by it under this Agreement or the
other Transaction Documents within ten (10) days after written notice from the Lender to perform or observe such obligation;

 

(e)
A Change of Control Event with respect to the Company shall have occurred;

 

(f)
Any money judgment, writ or similar final process shall be entered or filed against the Company or any Subsidiary or any of their
property or other assets for more than $250,000, and shall remain unvacated, unbonded, unappealed, unsatisfied, or unstayed for
a period of 60 calendar days;

 

(g)
A default by the Company under any one or more obligations (including, without limitation, any office lease or pre-existing loan
currently outstanding) in an aggregate monetary amount in excess of $100,000 for more than 90 calendar days after the due date,
unless the Company is contesting the validity of such obligation in good faith and has segregated cash funds equal to not less
than one-half of the contested amount; or

 

(h)
Any material representation or warranty of the Company made in the Agreement which is false or misleading in any material respect
as of the Execution Date, except to the extent such representation or warranty is made as of a different date in which case such
representation or warranty shall have been false or misleading in any material respect as of such date.

 

6.2
Remedies. Upon the occurrence of an Event of
Default under Section 6.1 hereof, at the option and upon the declaration of the Lender, the entire unpaid principal and accrued
and unpaid interest on the Note shall, without presentment, demand, protest, or notice of any kind, all of which are hereby expressly
waived, be forthwith due and payable, and the Lender may, immediately and without expiration of any period of grace, enforce payment
of all amounts due and owing under the Note and exercise any and all other remedies granted at law, in equity or otherwise.

 

7.
Miscellaneous.

 

7.1
Successors and Assigns. Except as otherwise provided
herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the
parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason
of this Agreement, except as expressly provided in this Agreement.

 

7.2
Governing Law. This Agreement and the Notes shall be governed by and construed under the laws of the State of New York
as applied to agreements among New York residents, made and to be performed entirely within the State of New York. The Lender
hereby expressly consents to the exclusive jurisdiction of the state and federal courts situated in the City, County and State
of New York for all actions arising out of, or relating to this Agreement, and irrevocably waives the defense of inconvenient
forum to the maintenance of such action or proceeding.

 

    	15

     

    

 

7.3
Execution. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party execution (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

7.4
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

7.5
Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively
given: (i) upon personal delivery to the party to be notified; (ii) when sent by confirmed electronic mail or facsimile if sent
during normal business hours of the recipient, if not so confirmed, then on the next business day; (iii) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications
shall be sent to the respective parties at the addresses set forth on the signature page hereto (or at such other addresses as
shall be specified by notice given in accordance with this Section 7.5).

 

7.6
Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief
to which such party may be entitled. Each party hereto shall pay all costs and expenses that it incurs with respect to the negotiation,
execution, delivery and performance of this Agreement.

 

7.7
Entire Agreement; Amendments and Waivers. This Agreement and the Note and the other documents delivered pursuant hereto
constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.
Any term of this Agreement or the Note may be amended and the observance of any term of this Agreement or the Note may be waived
(either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company
and the Lender. Any waiver or amendment effected in accordance with this Section shall be binding upon each party to this Agreement
and any future holder of the Note.

 

7.8
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded
and shall be enforceable in accordance with its terms.

 

7.9
Acknowledgement. In order to avoid doubt, it is acknowledged that the Lender shall be entitled to the benefit of all adjustments
in the number of shares of Common Stock of the Company issuable as a result of any splits, recapitalizations, combinations or
other similar transaction affecting the Company’s common stock that occur prior to the conversion of the Note.

 

    	16

     

    

 

7.10
Indemnity; Costs, Expenses and Attorneys’ Fees.
The Company shall indemnify and hold the Lender harmless from any loss, cost, liability and legal or other expense, including
attorneys’ fees of the Lender’s counsel, which the Lender may directly or indirectly suffer or incur by reason of
the failure of the Company to perform any of its obligations under this Agreement, the Note, any agreement executed in connection
herewith or therewith, any grant of or exercise of remedies with respect to any collateral at any time securing any obligations
evidenced by this Agreement or the Note, or the Lender’s execution or performance of this Agreement or any agreement executed
in connection herewith, provided, however, that the indemnity provided by this section shall not apply to liabilities that the
Lender may directly or indirectly suffer or incur by reason of the Lender’s gross negligence, willful misconduct or fraud.

 

7.11
Further Assurance. From time to time, the Company
shall execute and deliver to the Lender such additional documents and shall provide such additional information to the Lender
as the Lender may reasonably require to carry out the terms of this Agreement and the Note, and any agreements executed in connection
herewith or therewith.

 

7.12.
Confidentiality. The Lender acknowledges and agrees that any information or data it has acquired from or about the Company,
not otherwise properly in the public domain, was received in confidence. The Lender agrees not to divulge, communicate or disclose,
except as may be required by law or for the performance of this Agreement, or use to the detriment of the Company or for the benefit
of any other person or persons, or misuse in any way, any confidential information of the Company, including any technical, trade
or business secrets of the Company and any technical, trade or business materials that are treated by the Company as confidential
or proprietary, and confidential information obtained by or given to the Company about or belonging to third parties.

 

[remainder
of page intentionally left blank; signature page follows]

 

    	17

     

    

 

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

 

	 	 	THE
    COMPANY:
	 	 	Marina
    Biotech, Inc.
	 	 	 	 
	 	 	By:
    	/s/
    Vuong Trieu
	 	 	Name:	Vuong
    Trieu
	 	 	Title:	Executive
    Chairman
	 	 	 	 
	 	Address:	17870
    Castleton Street, Suite 250
	 	 	City
    of Industry, CA 91748
	 	 	 
	 	 	THE
    LENDER:
	 	 	River
    Charitable Remainder Unit Trust,
	 	 	FBO
    Isaac Blech, July 20, 1987,
	 	 	Isaac
    Blech Trustee
	 	 	 	 
	 	 	/s/
    Isaac Blech
	 	 	Name:	Isaac
    Blech
	 	 	Title:
    	Trustee
    
	 	 	 	 
	 	Address:	4
    World Trade Center 
	 	 	150
    Greenwich Street, 49th Floor
	 	 	New
    York, NY 10007

 

    	 

     

    

 

EXHIBIT
A

 

Form
of Promissory Note

 

    	 

     

    

 

EXHIBIT
B

 

ACCREDITED
INVESTOR QUESTIONNAIRE

 

	A.	APPLICABLE
    TO INDIVIDUALS ONLY. Please answer the following questions concerning your financial condition as an “accredited
    investor” (within the meaning of Rule 501 of Regulation D). If the Lender is more than one individual, each individual
    must initial an answer where the question indicates a “yes” or “no” response, indicating to which
    individual it applies. The Lender must answer “yes” in response to question 1, 2 or 3 below to be considered an
    “accredited investor.” If the Lender is purchasing jointly with his or her spouse, one answer may be indicated
    for the couple as a whole:

 

	 	1.
    	Does
    your net worth*, or joint net worth with your spouse, exceed $1,000,000?

 

	 	Yes______	No______

 

	 	2.	Did
    you have an individual income ** in excess of $200,000, or joint income together with your spouse in excess of $300,000, in
    each of the two most recent years and do you reasonably expect to reach the same income level in the current year?

 

	 	Yes______	No______

 

	 	3.	Are
    you an executive officer or director of the issuer?

 

	 	Yes______	No______

 

	*	For
    purposes hereof net worth shall be deemed to include ALL of your assets, liquid or illiquid (including such items as furnishings,
    automobile and restricted securities), exclusive of the value of your principal residence, MINUS any liabilities (including
    such items as home mortgages and other debts and liabilities).
	 	 
	**	For
    purposes hereof the term “income” is not limited to “adjusted gross income” as that term is defined
    for federal income tax purposes, but rather includes certain items of income which are deducted in computing “adjusted
    gross income.” For investors who are salaried employees, the gross salary of such investor, minus any significant expenses
    personally incurred by such investor in connection with earning the salary, plus any income from any other source including
    unearned income, is a fair measure of “income” for purposes hereof. For investors who are self-employed, “income”
    is generally construed to mean total revenues received during the calendar year minus significant expenses incurred in connection
    with earning such revenues.

 

    	 

     

    

 

	B.	APPLICABLE
    TO CORPORATIONS, PARTNERSHIPS AND OTHER ENTITIES ONLY:

 

The
Lender is an accredited investor because the Lender falls within at least one of the following categories (Check all appropriate
lines):

 

	 	______	(i)
    a bank as defined in Section 3(a)(2) of the Securities Act or a savings and loan association or other institution as defined
    in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;
	 	 	 
	 	______	(ii)
    a broker-dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;
	 	 	 
	 	______	(iii)
    an insurance company as defined in Section 2(13) of the Securities Act;
	 	 	 
	 	______	(iv)
    an investment company registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”)
    or a business development company as defined in Section 29(a)(48) of the Investment Company Act;
	 	 	 
	 	______	(v)
    a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the
    Small Business Investment Act of 1958, as amended;
	 	 	 
	 	______	(vi)
    a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its
    political subdivisions, for the benefit of its employees, where such plan has total assets in excess of $5,000,000;
	 	 	 
	 	______	(vii)
    an employee benefit plan within the meaning of Title 1 of the Employee Retirement Income Security Act of 1974, as amended
    (“ERISA”), where the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which
    is either a bank, savings and loan association, insurance company, or registered investment adviser, or an employee benefit
    plan that has total assets in excess of $5,000,000, or a self-directed plan the investment decisions of which are made solely
    by persons that are accredited investors;
	 	 	 
	 	______	(viii)
    a private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;
	 	 	 
	 	______	(ix)
    an organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, a Massachusetts or similar business
    trust, or a partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess
    of $5,000,000;
	 	 	 
	 	______	(x)
    a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered,
    whose purchase is directed by a “sophisticated” person, who has such knowledge and experience in financial and
    business matters that he is capable of evaluating the merits and risks of the prospective investment;
	 	 	 
	 	______	(xi)
    an entity in which all of the equity investors are persons or entities described above (“accredited investors”).
    ALL EQUITY OWNERS MUST COMPLETE PART “A” ABOVE.SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT (this “Agreement”), dated as of November 22, 2017, among Marina Biotech, Inc., a
Delaware corporation (the “Company”), IthenaPharma, Inc., a Delaware corporation and a wholly-owned subsidiary
of the Company (“Ithena”), Cequent Pharmaceuticals, Inc., a Delaware corporation and a wholly-owned subsidiary
of the Company (“CPI”), and MDRNA Research, Inc., a Delaware corporation and a wholly-owned subsidiary of the
Company (“Research” and, collectively with the Company, Ithena and CPI, the “Grantors” and
each, individually, a “Grantor”), and River Charitable Remainder Unit Trust, FBO Isaac Blech, July 20, 1987,
Isaac Blech Trustee (the “Purchaser”) under that certain Note Purchase Agreement dated as of the date hereof
between the Company and the Purchaser (as it may be amended, restated, supplemented, replaced or otherwise modified from time
to time, the “Purchase Agreement).

 

W
I T N E S S E T H:

 

WHEREAS,
the Company and the Purchaser are parties to the Purchase Agreement, and

 

WHEREAS,
pursuant to the terms and conditions of the Purchase Agreement, the Purchaser has agreed to extend a loan to the Grantors through
the purchase of one or more notes repayment of which is evidenced by the Note issued pursuant to the Purchase Agreement, and

 

WHEREAS,
in order to induce the Purchaser to enter into the Purchase Agreement and the other Transaction Documents, the Grantors have agreed
to execute and deliver to the Purchaser this Agreement and to grant the Purchaser a continuing security interest in and to the
Collateral in order to secure the prompt and complete payment, observance and performance of, among other things, the Secured
Obligations, and

 

NOW,
THEREFORE, for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency
and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

1.
Defined Terms. All capitalized terms used herein (including in the preamble and recitals hereof) without definition shall
have the meanings ascribed thereto in the Note, or if not expressly defined in the Note, then in the Purchase Agreement. Any terms
used in this Agreement that are defined in the Code (whether or not capitalized) shall be construed and defined as set forth in
the Code unless otherwise defined herein or in the Note or the Purchase Agreement; provided, however, that if the
Code is used to define any term used herein and if such term is defined differently in different Articles of the Code, the definition
of such term contained in Article 9 of the Code shall govern. In addition to those terms defined elsewhere in this Agreement,
as used in this Agreement, the following terms shall have the following meanings:

 

    	 	1	 

     

    

 

(a)
“Account” means an account as that term is defined in the Code.

 

(b)
“Account Debtor” means an account debtor (as that term is defined in the Code).

 

(c)
“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter
in effect, or any successor statute.

 

(d)
“Books” means books and records (including each Grantor’s Records indicating, summarizing, or evidencing
such Grantor’s assets (including the Collateral) or liabilities, each Grantor’s Records relating to such Grantor’s
business operations or financial condition, and each Grantor’s goods or General Intangibles related to such information).

 

(e)
“Chattel Paper” means chattel paper (as that term is defined in the Code) and includes tangible chattel paper
and electronic chattel paper.

 

(f)
“Closing Date” has the meaning specified therefor in the Purchase Agreement.

 

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

 

(h)
“Collateral” has the meaning specified therefor in Section 2; provided, however, that “Collateral”
shall not include any Excluded Property; and provided, further, that if and when any property shall cease to be Excluded Property,
such property shall be deemed at all times from and after the date hereof to constitute Collateral.

 

(i)
“Commercial Tort Claims” means commercial tort claims (as that term is defined in the Code), and includes those
commercial tort claims listed on Schedule 8 attached hereto.

 

(j)
“Company” and “Companies” shall mean the Grantors.

 

(k)
“Copyrights” means copyrights and copyright registrations, and also includes (i) the copyright registrations
and applications listed on Schedule 2 attached hereto and made a part hereof (as the same may be amended or modified from
time to time), (ii) all extensions or renewals thereof, (iii) all income, royalties, damage awards and payments now and hereafter
due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and
damages and payments for past or future infringements thereof, (iv) the right to sue for past, present and future infringements
thereof, and (v) all of each Grantor’s rights corresponding thereto throughout the world.

 

    	 	2	 

     

    

 

(l)
“Deposit Account” means a deposit account (as that term is defined in the Code).

 

(m)
“Equipment” means equipment (as that term is defined in the Code).

 

(n)
“Excluded Property” means, collectively, (i) any permit, lease, license, contract, instrument or other agreement
held by any Grantor that prohibits or requires the consent of any Person other than the Grantors which consent has not been obtained
as a condition to the creation by such Grantor of a Lien thereon, or any permit, lease, license, contract or other agreement held
by any Grantor to the extent that any applicable law, treaty, rule, or regulation or any change in the interpretation or application
thereof by any Governmental Authority applicable thereto prohibits the creation of a Lien thereon, but only, in each case, to
the extent, and for so long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by
the Code, (ii) any “intent to use” Trademark applications for which a statement of use has not been filed (but only
until such statement is filed), and (iii) Equipment owned by any Grantor that is subject to a purchase money Lien or capital lease
(in each case, to the extent permitted under the Purchase Agreement) if the contract or other agreement in which such Lien is
granted (or in the documentation providing for such capital lease) prohibits or requires the consent of any Person which consent
has not been obtained other than the Grantors as a condition to the creation of any other Lien on such Equipment; provided, however,
Excluded Property shall not include any Collateral described in subsection (i) and (iii) of this subsection (n) to the
extent that any such consent or lapse, as applicable, (x) has not been waived or (y) would be rendered ineffective pursuant to
Sections 9-406, 9-408, 9-409 of the Code or other applicable provisions of the Code of any relevant jurisdiction or any other
applicable law (including the Bankruptcy Code, when applicable) or principles of equity; provided, that immediately upon the ineffectiveness,
lapse, termination or waiver of any such provision, the Collateral shall include, and each such Grantor shall be deemed to have
granted a security interest in, all such right, title and interest as if such provision had never been in effect. “Excluded
Property” shall not include any Proceeds, substitutions or replacements of Excluded Property (unless such Proceeds, substitutions
or replacements would constitute Excluded Property). It is hereby understood, agreed and acknowledged that the patents covering
the Company’s DiLA2 delivery system (with respect to which the Company has entered into a binding term sheet for the sale
of the Company’s assets relating thereto), and the patents covering the Company’s Smarticles delivery technology (which
patents were sold to Novosom Verwaltungs GmbH in September 2017, and which are no longer owned by the Company), are Excluded Property,
and thus are not included in the Collateral.

 

(o)
“Event of Default” has the meaning specified therefor in the Purchase Agreement.

 

    	 	3	 

     

    

 

(p)
“General Intangibles” means general intangibles (as that term is defined in the Code).

 

(q)
“Governmental Authority” means any federal, state, local, or other governmental or administrative body, instrumentality,
board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar
dispute-resolving panel or body.

 

(r)
“Grantor” and “Grantors” have the meanings specified therefor in the recitals to this Agreement.

 

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

 

(t)
“Intellectual Property” means Patents, Copyrights, Trademarks, the goodwill associated with such Trademarks,
trade secrets and confidential and proprietary customer lists, and Intellectual Property Licenses.

 

(u)
“Intellectual Property Collateral” means Grantors’ Patents, Trademarks and Copyrights, now owned or hereafter
accrued, and all goodwill of the business connected with the use of, and symbolized by, such Trademarks.

 

(v)
“Intellectual Property Licenses” means rights under or interests in any Patent, Trademark, Copyright or other
Intellectual Property, including software license agreements with any other party (other than commercial off the shelf software),
whether the applicable Grantor is a licensee or licensor under any such license agreement, including the license agreements listed
on Schedule 3 attached hereto and made a part hereof.

 

(w)
“Intellectual Property Security Agreement” means the Intellectual Property Security Agreement among Grantors
and Agent, for the benefit of the Purchaser, dated the date hereof.

 

(x)
“Inventory” means inventory (as that term is defined in the Code).

 

(y)
“Investment Related Property” means investment property (as that term is defined in the Code).

 

(z)
“Negotiable Collateral” means letters of credit, letter-of-credit rights, instruments, promissory notes, drafts,
and documents.

 

(aa)
“Note” has the meaning specified therefor in the Purchase Agreement.

 

    	 	4	 

     

    

 

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

 

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

 

(dd)
“Patents” means (i) the patents and patent applications listed on Schedule 4 attached hereto and made
a part hereof (as the same may be amended or modified from time to time), (ii) all divisions, continuations, continuations-in-part,
reissues and extensions thereof, (iii) all income, royalties, damage awards and payments now and hereafter due or payable under
and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments
for past or future infringements thereof, (iv) the right to sue for past, present and future infringements thereof, and (v) all
of each Grantor’s rights corresponding thereto throughout the world.

 

(ee)
“Permitted Encumbrances” means (a) liens in favor of the Purchaser to secure the Secured Obligations, (b) liens
(i) with respect to the payment of taxes, assessments or other governmental charges or (ii) of suppliers, carriers, materialmen,
warehousemen, workmen or mechanics and other similar liens, in each case imposed by law and arising in the ordinary course of
business, and securing amounts that are not yet due or that are being contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves or other appropriate provisions are maintained on the books of the applicable
Grantor in accordance with GAAP and which do not involve, in the reasonable judgment of the Purchaser, any risk of the sale, forfeiture
or loss of any of the Collateral, (c) liens existing on the date hereof and set forth on Schedule 9 hereto, (d) liens securing
purchase money indebtedness, provided that (i) such liens exist prior to the acquisition of, or attach substantially simultaneous
with, or within 30 days after the, acquisition, repair, improvement or construction of, such property financed by such indebtedness
and (ii) such liens do not extend to any property of a Grantor other than the property (and proceeds thereof) acquired or built,
or the improvements or repairs, financed by such indebtedness, and (e) licenses entered into in the ordinary course of business.

 

    	 	5	 

     

    

 

(ff)
“Person” has the meaning specified therefor in the Purchase Agreement.

 

(gg)
“Proceeds” has the meaning specified therefor in Section 2.

 

(hh)
“Purchase Agreement” has the meaning specified therefor in the recitals to this Agreement.

 

(ii)
“Records” means information that is inscribed on a tangible medium or which is stored in an electronic or other
medium and is retrievable in perceivable form.

 

(jj)
“Security Interest” has the meaning specified therefor in Section 2.

 

(kk)
“Secured Obligations” means each and all of the following: (a) each and all of the present and future obligations
of Grantors now existing or hereafter arising from this Agreement or the other Transaction Documents, and (b) all Obligations
of the Grantors, including, in the case of each of clauses (a) and (b), reasonable attorneys fees and expenses and any interest,
fees, or expenses that accrue after the filing of an Insolvency Proceeding, regardless of whether allowed or allowable in whole
or in part as a claim in any Insolvency Proceeding.

 

(ll)
“Secured Party’s Liens” means the Liens granted by the Grantors to Secured Parties under the Transaction
Documents.

 

(mm)
“Securities Account” means a securities account (as that term is defined in the Code).

 

(nn)
“Stock” means all shares, options, warrants, interests, participations, or other equivalents (regardless of
how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity
security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Commission under
the Exchange Act).

 

(oo)
“Supporting Obligations” means supporting obligations (as such term is defined in the Code).

 

    	 	6	 

     

    

 

(pp)
“Trademarks” means trademarks, trade names, trademark applications, service marks, service mark applications,
and also includes (i) the registered or applied for trade names, trademarks, trademark applications, service marks, and service
mark applications listed on Schedule 5 attached hereto and made a part hereof (as the same may be amended or modified from
time to time), (ii) all renewals thereof, (iii) all income, royalties, damage awards and payments now and hereafter due or payable
under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments
for past or future (A) infringements and dilutions thereof and (B) injury to the goodwill associated therewith, (iv) the right
to sue for past, present and future (A) infringements and dilutions thereof and (B) injury to the goodwill associated therewith,
(v) the goodwill of each Grantor’s business symbolized by the foregoing or connected therewith, and (vi) all of each Grantor’s
rights corresponding thereto throughout the world.

 

(qq)
“Transaction Documents” means this Agreement, the Purchase Agreement, the Note and the Intellectual Property
Security Agreement.

 

(rr)
“URL” means “uniform resource locator,” an internet web address.

 

2.
Guaranty and Grant of Security. (A) Each Grantor, in consideration of the mutual benefits obtained thereby and for other
valuable consideration hereby acknowledged, hereby unconditionally guarantees for the benefit of the Purchaser the prompt payment
and performance of each and all of the Secured Obligations of the other, without setoff or counterclaim each of which are hereby
waived.

 

(B)
Each Grantor hereby unconditionally grants, assigns, and pledges to the Purchaser to secure the Secured Obligations a continuing
security interest (herein referred to as the “Security Interest”) in all such Grantor’s right, title
and interest in and to the following, whether now owned or hereafter acquired or arising and wherever located (the “Collateral”):

 

	 	(a)	all
    of such Grantor’s Accounts;
	 	 	 
	 	(b)	all
    of such Grantor’s Books;
	 	 	 
	 	(c)	all
    of such Grantor’s Chattel Paper;
	 	 	 
	 	(d)	all
    of such Grantor’s Deposit Accounts;
	 	 	 
	 	(e)	all
    of such Grantor’s Equipment and fixtures;
	 	 	 
	 	(f)	all
    of such Grantor’s General Intangibles, including the Intellectual Property Collateral;
	 	 	 
	 	(g)	all
    of such Grantor’s Inventory;

 

    	 	7	 

     

    

 

	 	(h)	all
    of such Grantor’s Investment Related Property;
	 	 	 
	 	(i)	all
    of such Grantor’s Negotiable Collateral;
	 	 	 
	 	(j)	all
    of such Grantor’s rights in respect of Supporting Obligations;
	 	 	 
	 	(k)	all
    of such Grantor’s Commercial Tort Claims;

 

(l)
all of such Grantor’s money, cash equivalents, or other assets of each such Grantor that now or hereafter come into the
possession, custody, or control of the Purchaser;

 

(m)
all of the proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance or
Commercial Tort Claims covering or relating to any or all of the foregoing, and any and all Accounts, Books, Chattel Paper, Deposit
Accounts, Equipment, General Intangibles, Inventory, Investment Related Property, Negotiable Collateral, Supporting Obligations,
money, or other tangible or intangible property resulting from the sale, lease, license, exchange, collection, or other disposition
of any of the foregoing, the proceeds of any award in condemnation with respect to any of the foregoing, any rebates or refunds,
whether for taxes or otherwise, and all proceeds of any such proceeds, or any portion thereof or interest therein, and the proceeds
thereof, and all proceeds of any loss of, damage to, or destruction of the above, whether insured or not insured, and, to the
extent not otherwise included, any indemnity, warranty, or guaranty payable by reason of loss or damage to, or otherwise with
respect to any of the foregoing (the “Proceeds”). Without limiting the generality of the foregoing, the term
“Proceeds” includes whatever is receivable or received when Investment Related Property or proceeds are sold, exchanged,
collected, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity
or guaranty payable to any Grantor or the Purchaser from time to time with respect to any of the Investment Related Property.

 

3.
Security for Obligations. This Agreement and the Security Interest created hereby secures the Secured Obligations, whether
now existing or arising hereafter. Without limiting the generality of the foregoing, this Agreement secures the payment of all
amounts which constitute part of the Secured Obligations and would be owed by Grantors, or any of them, to the Purchaser but for
the fact that they are unenforceable or not allowable due to the existence of an Insolvency Proceeding involving any Grantor.

 

4.
Grantors Remain Liable; Third Party Licensees. (A) Anything herein to the contrary notwithstanding, (a) each of the Grantors
shall remain liable under the contracts and agreements included in the Collateral to perform all of the duties and obligations
thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Purchaser of any of the rights
hereunder shall not release any Grantor from any of its duties or obligations under such contracts and agreements included in
the Collateral, and (c) the Purchaser shall not have any obligation or liability under such contracts and agreements included
in the Collateral by reason of this Agreement, nor shall the Purchaser be obligated to perform any of the obligations or duties
of any Grantors thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. Until an Event
of Default shall occur and be continuing, except as otherwise provided in this Agreement or the other Transaction Documents, Grantors
shall have the right to possession and enjoyment of the Collateral for the purpose of conducting the ordinary course of their
respective businesses, subject to and upon the terms hereof and of the other Transaction Documents.

 

    	 	8	 

     

    

 

(B)
The Purchaser acknowledges and agrees that the security interest arising hereunder in any Intellectual Property licensed by a
Grantor to a third party in an arms-length transaction shall be subject to the rights of such third party licensee, whether such
arms-length transaction is now existing or is entered into following the execution and delivery of this Agreement. Upon the request
of a Grantor, the Purchaser shall provide an estoppel to such third party licensee with respect to the foregoing. The Purchaser
hereby acknowledges that no security interest or right is granted by any Grantor in property to the extent that such property,
including Intellectual Property, is not owned by said Grantor.

 

5.
Representations and Warranties. As of the Closing, each Grantor hereby represents and warrants as follows:

 

(a)
The exact legal name, jurisdiction of incorporation, organization or formation, organizational identification number, if any,
and chief executive office of each of the Grantors is set forth on Schedule 1 attached hereto. No Grantor has trade names
except as set forth on Schedule 1 attached hereto.

 

(b)
Schedule 6 attached hereto sets forth all Real Property owned or leased by Grantors as of the Closing Date.

 

(c)
As of the Closing Date, no Grantor has any interest in, or title to, any registered Copyrights, material Intellectual Property
Licenses or Trademarks except as set forth on Schedules 2, 3 and 5, respectively, attached hereto. This Agreement
is effective to create a valid and continuing Lien on such Copyrights, Intellectual Property Licenses, Patents and Trademarks
and, upon filing of the Intellectual Property Security Agreement with the United States Copyright Office and filing of the Intellectual
Property Security Agreement with the United States Patent and Trademark Office, and the filing of appropriate financing statements
in the jurisdictions listed on Schedule 7 hereto, all action necessary or desirable to protect and perfect the Security
Interest in the United States in and to each Grantor’s Patents, Trademarks, Copyrights or Intellectual Property Licenses
constituting Collateral has been taken and such perfected Security Interest is enforceable as such as against any and all creditors
of and purchasers from any Grantor, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency,
reorganization, fraudulent transfer, moratorium or similar laws relating to or limiting creditors’ rights generally. No
Grantor has any interest in any Copyright that is necessary in connection with the operation of such Grantor’s business,
except for those Copyrights identified on Schedule 2 attached hereto which have been registered with the United States
Copyright Office.

 

    	 	9	 

     

    

 

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

 

(e)
No written claim has been received by any Grantor that any Collateral or any Grantor’s use of any Collateral violates the
rights of any third party that has not been resolved to the satisfaction of such Grantor. There has been no adverse decision to
any Grantor’s claim of ownership rights in or exclusive rights to use the Collateral in any jurisdiction or to such Grantor’s
right to keep and maintain such Collateral in full force and effect, and there is no proceeding involving said rights pending
or, to the knowledge of such Grantor, threatened before any court, judicial body, administrative or regulatory agency, arbitrator
or other governmental authority.

 

(f)
Each Grantor shall at all times maintain its books of account and records relating to the Collateral at its principal place of
business (except when temporarily kept at the offices of its attorneys or accountants) and may not relocate such books of account
and records or tangible Collateral unless it delivers to the Purchaser at least thirty (30) days prior to such relocation (i)
written notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that
appropriate financing statements under the Code and other necessary documents have been filed and recorded and other steps have
been taken to perfect the Security Interests to create in favor of the Purchaser, subject to Permitted Encumbrances, a valid,
perfected and continuing perfected first priority lien in the Collateral.

 

(g)
The execution, delivery and performance of this Agreement by each Grantor does not (i) violate any of the provisions of the Organizational
Documents of any Grantor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable
law, rule or regulation applicable to any Grantor or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
such Grantor’s debt or otherwise) or other understanding to which any Grantor is a party or by which any property or asset
of any Grantor is bound or affected, except in all cases, for such conflicts, defaults, terminations, amendments, acceleration,
cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect. If any, all required
consents (including, without limitation, from stockholders or creditors of the Grantor) necessary for the Grantor to enter into
and perform its obligations hereunder have been obtained.

 

    	 	10	 

     

    

 

(h)
This Agreement creates a valid security interest in the Collateral of each of Grantors, to the extent a security interest therein
can be created under the Code, securing the payment of the Secured Obligations. Except to the extent a security interest in the
Collateral cannot be perfected by the filing of a financing statement under the Code, all filings and other actions necessary
or desirable to perfect and protect such security interest have been duly taken or will have been taken upon the filing of financing
statements listing each applicable Grantor, as a debtor, and the Purchaser, as secured party, in the jurisdictions listed next
to such Grantor’s name on Schedule 6 attached hereto. Upon the making of such filings, the Purchaser shall have,
subject to Permitted Encumbrances, a first priority perfected security interest in the Collateral of each Grantor to the extent
such security interest can be perfected by the filing of a financing statement. All action by any Grantor necessary to protect
and perfect such security interest on each item of Collateral has been duly taken (to the extent such action is required under
this Agreement).

 

(i)
No consent, approval, authorization, or other order or other action by, and no notice to or filing with, any Governmental Authority
or any other Person is required (i) for the grant of a Security Interest by such Grantor in and to the Collateral pursuant to
this Agreement or for the execution, delivery, or performance of this Agreement, except those consents, approvals, authorizations
or other actions, the failure of which to obtain could not reasonably be expected to cause a material adverse effect to such Grantor,
or (ii) for the exercise by the Purchaser of the voting or other rights provided for in this Agreement or any other Transaction
Document with respect to the Investment Related Property or the remedies in respect of the Collateral pursuant to this Agreement
or any other Transaction Document, except as may be required in connection with such disposition of Investment Related Property
by laws affecting the offering and sale of securities generally.

 

6.
Covenants. Each Grantor, jointly and severally, covenants and agrees with Purchaser for the benefit of the Purchaser that
from and after the date of this Agreement and until the date of termination of this Agreement in accordance with the terms hereof
:

 

(a)
Possession of Collateral. In the event that any Collateral, including Proceeds, is evidenced by or consists of Negotiable
Collateral, Investment Related Property, or Chattel Paper, with a value, individually or in the aggregate, in excess of Twenty-Five
Thousand Dollars ($25,000), and if and to the extent that perfection or priority of the Purchaser’s Security Interest is
dependent on or enhanced by possession, the applicable Grantor, promptly (and in any event within one (1) Business Day) upon the
request of the Purchaser, shall execute such other documents and instruments as shall be reasonably requested by the Purchaser
or, if applicable, endorse and deliver physical possession of such Collateral to the Purchaser or its representative, together
with, if applicable, such undated powers endorsed in blank as shall be reasonably requested by the Purchaser;

 

    	 	11	 

     

    

 

(b)
Chattel Paper.

 

(i)
In the event that the Grantors acquire electronic Chattel Paper with a value, individually or in the aggregate, in excess of Twenty-Five
Thousand Dollars ($25,000), the applicable Grantor shall promptly (and in any event within two (2) Business Days) notify the Purchaser
thereof, and upon the request of the Purchaser, take all steps reasonably necessary to grant the Purchaser control of all such
electronic Chattel Paper in accordance with the Code and all “transferable records” as that term is defined in Section
16 of the Uniform Electronic Transaction Act and Section 201 of the federal Electronic Signatures in Global and National Commerce
Act as in effect in any relevant jurisdiction;

 

(ii)
If any Grantor retains possession of any Chattel Paper or instruments (which retention of possession shall be subject to the extent
permitted hereby and by the Purchase Agreement), promptly upon the request of the Purchaser, such Chattel Paper and instruments
shall be marked with the following legend: “This writing and the obligations evidenced or secured hereby are subject to
the Security Interest of River Charitable Remainder Unit Trust, FBO Isaac Blech, July 20, 1987, Isaac Blech Trustee”;

 

(c)
Letter-of-Credit Rights. Each Grantor that is or becomes the beneficiary of a letter of credit with a face value in excess
of Twenty-Five Thousand Dollars ($25,000) shall promptly (and in any event within two (2) Business Days after becoming a beneficiary),
notify the Purchaser thereof and, thereafter, upon the request by the Purchaser, except with respect to documentary letters of
credit received by a Grantor from customers in the ordinary course of business if no Event of Default has occurred and is continuing,
take such actions the Purchaser may reasonably request to grant the Purchaser control thereof;

 

(d)
Commercial Tort Claims. Each Grantor shall promptly (and in any event within two (2) Business Days of receipt thereof),
notify the Purchaser in writing upon becoming a plaintiff in respect of, or otherwise obtaining a Commercial Tort Claim after
the date hereof and, upon request of the Purchaser, promptly amend Schedule 8 to this Agreement to describe such after-acquired
Commercial Tort Claim in a manner that reasonably identifies such Commercial Tort Claim, and hereby authorizes the filing of additional
financing statements or amendments to existing financing statements describing such Commercial Tort Claims, and agrees to do such
other acts or things deemed necessary or desirable by Agent to give the Purchaser, subject to Permitted Encumbrances, a first
priority perfected security interest in any such Commercial Tort Claim;

 

(e)
Government Contracts. If any Account or Chattel Paper, individually or in the aggregate with a value in excess of Twenty-Five
Thousand Dollars ($25,000), arises out of a contract or contracts with the United States of America or any department, agency,
or instrumentality thereof, Grantors shall promptly (and in any event within two (2) Business Days of the creation thereof) notify
the Purchaser thereof in writing and execute any instruments or take any steps reasonably required by the Purchaser, to the extent
permitted under, and in accordance with, applicable law, in order that all moneys due or to become due under such contract or
contracts shall be assigned to the Purchaser, and shall provide written notice thereof under the Assignment of Claims Act or other
applicable law;

 

    	 	12	 

     

    

 

(f)
Intellectual Property.

 

(i)
Upon request of the Purchaser, in order to facilitate filings with the United States Patent and Trademark Office and the United
States Copyright Office, each Grantor shall execute and deliver to the Purchaser one or more Intellectual Property Security Agreements
in form and substance reasonably satisfactory to further evidence the Purchaser’s Liens on such Grantor’s Patents,
Trademarks, or Copyrights, and the General Intangibles of such Grantor relating thereto or represented thereby;

 

(ii)
Each Grantor shall have the duty, to the extent necessary or economically desirable in the operation of its business, (A) to promptly
sue for infringement, misappropriation, or dilution and to recover any and all awarded damages for such infringement, misappropriation,
or dilution, (B) to prosecute diligently any trademark application or service mark application that is part of such Grantor’s
Trademarks pending as of the date hereof or hereafter until the termination of this Agreement, (C) to prosecute diligently any
patent application that is part of such Grantor’s Patents pending as of the date hereof or hereafter until the termination
of this Agreement, and (D) to take all reasonable and necessary action to preserve and maintain all of such Grantor’s Trademarks,
Patents, Copyrights, Intellectual Property Licenses, and its rights therein, including the filing of applications for renewal,
affidavits of use, affidavits of noncontestability and opposition and interference and cancellation proceedings. Each Grantor
shall promptly file an application with the United States Copyright Office for any Copyright that has not been registered with
the United States Copyright Office if such Copyright is necessary or economically desirable in the operation of such Grantor’s
business. Any expenses incurred in connection with the foregoing shall be borne by the appropriate Grantor. Each Grantor further
agrees not to abandon any Trademark, Patent, Copyright, or Intellectual Property License that is necessary or economically desirable
in the operation of such Grantor’s business; provided, however that any such Copyright shall then be deemed to be included
on Schedule 2 hereof;

 

(iii)
Grantors acknowledge and agree that the Purchaser shall have no duties with respect to the Trademarks, Patents, Copyrights, or
Intellectual Property Licenses. Without limiting the generality of this Section 6(f), Grantors acknowledge and agree that
the Purchaser shall not be under any obligation to take any steps necessary to preserve rights in the Trademarks, Patents, Copyrights,
or Intellectual Property Licenses against any other Person, but the Purchaser may do so at its option from and after the occurrence
and during the continuance of an Event of Default, and all expenses incurred in connection therewith (including reasonable fees
and expenses of attorneys and other professionals) shall be for the sole account of the Company and shall be chargeable to the
Company;

 

    	 	13	 

     

    

 

(iv)
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 with the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency without giving the Purchaser prompt (and in any event within ten (10) Business Days) written
notice thereof. Promptly upon any such filing, each Grantor shall comply with Section 6(f)(i) hereof;

 

(g)
Investment Related Property.

 

(i)
If any Grantor shall receive or become entitled to receive any Investment Related Property after the Closing Date, it shall promptly
(and in any event within five (5) Business Days of receipt thereof) take all actions necessary to cause such Investment Related
Property to become Collateral hereunder and subject to a lien and security interest in favor of the Purchaser;

 

(ii)
Upon the occurrence and during the continuance of an Event of Default, all sums of money and property paid or distributed in respect
of the Investment Related Property which are received by any Grantor shall be held by the Grantors in trust for the benefit of
the Purchaser segregated from such Grantor’s other property, and such Grantor shall deliver it forthwith to the Purchaser
in the exact form received;

 

(iii)
Each Grantor shall promptly deliver to the Purchaser a copy of each notice or other communication received by it in respect of
any Investment Related Property;

 

(iv)
Each Grantor agrees that it will cooperate with the Purchaser in obtaining all necessary approvals and making all necessary filings
under federal, state, local, or foreign law in connection with the Security Interest on the Investment Related Property or any
sale or transfer thereof;

 

(h)
Transfers and Other Liens. Except as otherwise expressly permitted hereby or by the Purchase Agreement, Grantors shall
not (i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, any of the
Collateral, or (ii) create or permit to exist any Lien upon or with respect to any of the Collateral of any of Grantors, except
for Permitted Encumbrances. The inclusion of Proceeds in the Collateral shall not be deemed to constitute the Purchaser’s
consent to any sale or other disposition of any of the Collateral except as expressly permitted in this Agreement or the other
Transaction Documents;

 

(i)
Insurance. The Grantors shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral,
including Collateral hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by
entities of established reputation having similar properties similarly situated and in such amounts as are customarily carried
under similar circumstances by other such entities and otherwise as is prudent for entities engaged in similar businesses but
in any event sufficient to cover the full replacement cost thereof (it being agreed that the insurance policies and amounts maintained
by Grantors as of the Closing Date are satisfactory). The Grantors shall cause each insurance policy issued in connection herewith
to provide, and the insurer issuing such policy to certify to the Purchaser that (a) the Purchaser will be named as loss payee
and additional insured under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed
for any reason whatsoever, such insurer will promptly notify the Purchaser and such cancellation or change shall not be effective
as to the Purchaser for at least thirty (30) days after receipt by the Purchaser of such notice, unless the effect of such change
is to extend or increase coverage under the policy; and (c) the Purchaser will have the right (but no obligation) at its election
to remedy any default in the payment of premiums within thirty (30) days of notice from the insurer of such default. If no Event
of Default exists and if the proceeds arising out of any claim or series of related claims do not exceed $100,000, loss payments
in each instance will be available to the Grantors and applied by the Grantors to the repair and/or replacement of property with
respect to which the loss was incurred. If no Event of Default exists and such proceeds exceed $100,000, and in any event after
an Event of Default occurs, all proceeds then or thereafter in existence shall be paid to the Purchaser (for application to the
Obligations) and, if received by any Grantor, shall be held in trust for the Purchaser and promptly paid over to the Purchaser
(for application to the Obligations) unless otherwise directed in writing by the Purchaser.

 

    	 	14	 

     

    

 

(j)
Copies. The Grantors shall deliver copies of such policies or the related certificates evidencing that the Purchaser is
listed as loss payee on property insurance and as additional insured on liability insurance within 10 days of closing and at the
time any new policy of insurance is issued.

 

(k)
Permitted Encumbrances. The Grantors shall not prepay or amend any obligations secured by the Permitted Encumbrances without
the prior written consent of the Purchaser.

 

7.
Relation to Other Security Documents. The provisions of this Agreement shall be read and construed with the other Transaction
Documents referred to below in the manner so indicated.

 

(a)
Purchase Agreement. In the event of any conflict between any provision in this Agreement and a provision in the Purchase
Agreement, such provision of the Purchase Agreement shall control.

 

(b)
Note. In the event of any conflict between any provision in this Agreement and a provision in the Note, such provision
of the Note shall control.

 

(c)
Intellectual Property Security Agreements. The provisions of any executed Intellectual Property Security Agreements are
supplemental to the provisions of this Agreement, and nothing contained in the Intellectual Property Security Agreements shall
limit any of the rights or remedies of the Purchaser hereunder.

 

    	 	15	 

     

    

 

8.
Further Assurances.

 

(a)
Each Grantor agrees that from time to time, at its own expense, such Grantor will promptly execute and deliver all further instruments
and documents, and take all further action, that may be necessary or that the Purchaser may reasonably request, in order to perfect
and protect the Security Interest granted or purported to be granted hereby or to enable the Purchaser to exercise and enforce
its rights and remedies hereunder with respect to any of the Collateral.

 

(b)
Subject to Section 8(c), each Grantor authorizes the filing by the Purchaser of financing or continuation statements, or amendments
thereto, and such Grantor will execute and deliver to the Purchaser such other instruments or notices, as may be necessary or
as the Purchaser may reasonably request, in order to perfect and preserve the Security Interest granted or purported to be granted
hereby.

 

(c)
Each Grantor authorizes the Purchaser at any time and from time to time to file, transmit, or communicate, as applicable, financing
statements and amendments (i) describing the Collateral as “all personal property of debtor” or “all assets
of debtor” or words of similar effect, (ii) describing the Collateral as being of equal or lesser scope or with greater
detail, or (iii) that contain any information required by part 5 of Article 9 of the Code for the sufficiency or filing office
acceptance.

 

(d)
Each Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with
respect to any financing statement filed in connection with this Agreement without the prior written consent of the Purchaser,
subject to such Grantor’s rights under Section 9-509(d)(2) of the Code.

 

9.
Right to Perform Contracts, Exercise Rights, etc. Upon the occurrence and during the continuance of an Event of Default,
the Purchaser (or its designee) (a) may proceed to perform any and all of the obligations of any Grantor contained in any contract,
lease, or other agreement and exercise any and all rights of any Grantor therein contained as fully as such Grantor itself could,
(b) shall have the right to use any Grantor’s rights under Intellectual Property Licenses in connection with the enforcement
of the Purchaser’s rights hereunder, including the right to prepare for sale and sell any and all Inventory and Equipment
now or hereafter owned by any Grantor and now or hereafter covered by such licenses, but only to the extent permitted by such
licenses or the licensors thereunder or applicable law, and (c) shall have the right to request that any Stock that is pledged
hereunder be registered in the name of the Purchaser or any of its nominees.

 

10.
Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Purchaser its attorney-in-fact, with full authority
in the place and stead of such Grantor and in the name of such Grantor or otherwise, at such time as an Event of Default has occurred
and is continuing under the Note, to take any action and to execute any instrument which the Purchaser may reasonably deem necessary
or advisable to accomplish the purposes of this Agreement, including:

 

    	 	16	 

     

    

 

(a)
to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become
due under or in connection with the Accounts or any Supporting Obligations in connection therewith or any other Collateral of
such Grantor;

 

(b)
to receive and open all mail addressed to such Grantor and to notify postal authorities to change the address for the delivery
of mail to such Grantor to that of the Purchaser;

 

(c)
to receive, indorse, and collect any drafts or other instruments, documents, Negotiable Collateral or Chattel Paper;

 

(d)
to file any claims or take any action or institute any proceedings which the Purchaser may deem necessary or desirable for the
collection of any of the Collateral of such Grantor or otherwise to enforce the rights of the Purchaser with respect to any of
the Collateral;

 

(e)
to repair, alter, or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any Person obligated
to such Grantor in respect of any Account of such Grantor;

 

(f)
to use any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, advertising matter or
other industrial or intellectual property rights, in advertising for sale and selling Inventory and other Collateral and to collect
any amounts due under Accounts, contracts or Negotiable Collateral of such Grantor; and

 

(g)
the Purchaser shall have the right, but shall not be obligated, to bring suit in its own name to enforce the Trademarks, Patents,
Copyrights and Intellectual Property Licenses and, if the Purchaser shall commence any such suit, the appropriate Grantor shall,
at the request of the Purchaser, do any and all lawful acts and execute any and all proper documents reasonably required by the
Purchaser in aid of such enforcement.

 

To
the extent permitted by law, each Grantor hereby ratifies all that such attorney-in-fact shall lawfully do or cause to be done
by virtue hereof. This power of attorney is coupled with an interest and shall be irrevocable until this Agreement is terminated.

 

11.
Purchaser May Perform. If any of Grantors fails to perform any agreement contained herein, the Purchaser may perform, or
cause performance of, such agreement, and the reasonable out-of-pocket expenses of the Purchaser incurred in connection therewith
shall be payable severally by Grantors.

 

12.
Collection of Accounts, General Intangibles and Negotiable Collateral. At any time upon the occurrence and during the continuance
of an Event of Default, the Purchaser or its designee may notify Account Debtors of any Grantor that the Accounts, General Intangibles,
Chattel Paper or Negotiable Collateral have been assigned to the Purchaser or that the Purchaser has a security interest therein,
and (b) collect the Accounts, General Intangibles and Negotiable Collateral directly, and any collection costs and expenses shall
constitute part of such Grantor’s Secured Obligations under the Transaction Documents.

 

    	 	17	 

     

    

 

13.
Remedies. Upon the occurrence and during the continuance of an Event of Default:

 

(a)
The Purchaser may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein, in the
other Transaction Documents, or otherwise available to it, all the rights and remedies of a secured party on default under the
Code or any other applicable law. Without limiting the generality of the foregoing, each Grantor expressly agrees that, in any
such event, the Purchaser without demand of performance or other demand, advertisement or notice of any kind (except a notice
specified below of time and place of public or private sale) to or upon any of Grantors or any other Person (all and each of which
demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the Code or any other applicable
law), may take immediate possession of all or any portion of the Collateral and (i) require Grantors to, and each Grantor hereby
agrees that it will at its own expense and upon request of the Purchaser forthwith, assemble all or part of the Collateral as
directed by the Purchaser and make it available to the Purchaser at one or more locations where such Grantor regularly maintains
Inventory, and (ii) without notice except as specified below, sell or otherwise dispose of the Collateral or any part thereof
in one or more parcels at public or private sale or other disposition, at any of the Purchaser’s offices or elsewhere, for
cash, on credit, and upon such other terms as the Purchaser may deem commercially reasonable. Without limiting the generality
of the foregoing, the Purchaser may disclaim any and all representations and warranties in connection with any such sale or other
disposition. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days notice to
any of Grantors of the time and place of any public sale or the time after which any private sale is to be made shall constitute
reasonable notification and specifically such notice shall constitute a reasonable “authenticated notification of disposition”
within the meaning of Section 9-611 of the Code. The Purchaser shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. The Purchaser 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.

 

(b)
The Purchaser is hereby granted a license or other right to use, without liability for royalties or any other charge, each Grantor’s
labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names, Trademarks, service marks and advertising
matter, URLs, domain names, industrial designs, other industrial or intellectual property or any property of a similar nature,
whether owned by any of Grantors or with respect to which any of Grantors have rights under license, sublicense, or other agreements,
(but only to the extent (i) such license, sublicense or agreement does not prohibit such use by the Purchaser and (ii) such Grantor
will not be in default under such license, sublicense or other agreement as a result of such use by the Purchaser) as it pertains
to the Collateral, in preparing for sale, advertising for sale and selling any Collateral, and each Grantor’s rights under
all licenses and all franchise agreements shall inure to the benefit of the Purchaser.

 

    	 	18	 

     

    

 

(c)
Any cash held by the Purchaser as Collateral and all cash proceeds received by the Purchaser in respect of any sale of, collection
from, or other realization in any manner upon all or any part of the Collateral shall be applied against the Secured Obligations
in the order set forth as follows:

 

FIRST,
to the payment of all reasonable out-of-pocket costs and expenses (including without limitation, reasonable attorneys’ fees)
of each of the Purchaser in connection with enforcing its rights under this Agreement and the other Transaction Documents; SECOND,
to the payment of all accrued and unpaid fees and interest to the Purchaser on the Note; THIRD to the payment of the outstanding
principal amount of the Note; and FOURTH to the payment of the surplus, if any, to whoever may be lawfully entitled to receive
such surplus.

 

In
the event the proceeds of Collateral are insufficient to satisfy all of the Secured Obligations in full, each Grantor shall remain
jointly and severally liable for any such deficiency.

 

(d)
Each Grantor hereby acknowledges that the Secured Obligations arose out of a commercial transaction.

 

14.
Remedies Cumulative. Each right, power, and remedy of the Purchaser as provided for in this Agreement or in the other Transaction
Documents or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall
be in addition to every other right, power, or remedy provided for in this Agreement or in the other Transaction Documents or
now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by the
Purchaser of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise by the
Purchaser of any or all such other rights, powers, or remedies.

 

15.
Marshaling. The Purchaser shall not be required to marshal any present or future collateral security (including but not
limited to the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such
collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in
respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and
remedies, however existing or arising. To the extent that it 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 Purchaser’s
rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Secured Obligations or
under which any of the Secured Obligations is outstanding or by which any of the Secured 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.

 

    	 	19	 

     

    

 

16.
Indemnity and Expenses.

 

(a)
Each Grantor agrees to indemnify the Purchaser from and against all claims, lawsuits and liabilities (including reasonable attorneys’
fees) growing out of or resulting from this Agreement (including enforcement of this Agreement) or any other Transaction Document
to which such Grantor is a party, except claims, losses or liabilities resulting from the gross negligence or willful misconduct
of the party seeking indemnification as determined by a final non-appealable order of a court of competent jurisdiction, and subject
to any other express limitations set forth in the Transaction Documents. This provision shall survive the termination of this
Agreement and the repayment of the Secured Obligations.

 

(b)
Grantors, jointly and severally, shall, upon demand, pay to the Purchaser all the fees, costs, charges and expenses which the
Purchaser may reasonably incur in connection with (i) the custody, preservation, use or operation of, or, upon an Event of Default,
the sale of, collection from, or other realization upon, any of the Collateral in accordance with this Agreement and the other
Transaction Documents, (ii) the exercise or enforcement of any of the rights of the Purchaser hereunder or (iii) the failure by
any of Grantors to perform or observe any of the provisions hereof.

 

17.
Merger, Amendments; Etc. THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES. No waiver of any provision of this Agreement, and no consent to any departure
by any of Grantors herefrom, shall in any event be effective unless the same shall be in writing and signed by the Purchaser,
and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
No amendment of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the Purchaser
and each of Grantors to which such amendment applies.

 

18.
Addresses for Notices. All notices and other communications provided for hereunder shall be given in the form and manner
and delivered to the Purchaser at its address specified in the Purchase Agreement, and to any of the Grantors at their respective
addresses specified in the Purchase Agreement, as applicable, or, as to any party, at such other address as shall be designated
by such party in a written notice to the other party.

 

    	 	20	 

     

    

 

19.
Continuing Security Interest: Assignments under Credit Agreement. This Agreement shall create a continuing security interest
in the Collateral and shall (a) remain in full force and effect until the Obligations have been indefeasibly paid in full or otherwise
terminated in accordance with the provisions of the Note and the Purchase Agreement, (b) be binding upon each of Grantors, and
their respective successors and assigns, and (c) inure to the benefit of, and be enforceable by, the Purchaser, and its successors,
transferees and assigns. Without limiting the generality of the foregoing clause (c), the Purchaser may, in accordance with the
provisions of the Note and the Purchase Agreement, assign or otherwise transfer all or any portion of its rights and obligations
under the Note and the Purchase Agreement to any other Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to the Purchaser herein or otherwise without prior notice or consent to the Grantors. Upon
indefeasible payment in full or other termination of the Obligations in accordance with the provisions of the Note and the Purchase
Agreement, the Security Interest granted hereby shall automatically terminate and all rights to the Collateral shall automatically
revert to Grantors or any other Person entitled thereto. At such time, upon the Grantors reasonable request, the Purchaser shall
authorize the filing of appropriate termination statements to terminate such Security Interests and shall execute and deliver
all further instruments and documents, and take all further action, that may be necessary or that the Grantors may reasonably
request, in order to effectuate the foregoing termination of such Security Interests. No transfer or renewal, extension, assignment,
or termination of this Agreement, any other Transaction Document, or any other instrument or document executed and delivered by
any Grantor to the Purchaser nor any additional loans made by the Purchaser to the Grantors, or any of them, nor the taking of
further security, nor the retaking or re-delivery of the Collateral to Grantors, or any of them, by the Purchaser, shall release
any of Grantors from any obligation, except a release or discharge executed in writing by the Purchaser in accordance with the
provisions of the Note and the Purchase Agreement. The Purchaser shall not by any act, delay, omission or otherwise, be deemed
to have waived any of its rights or remedies hereunder, unless such waiver is in writing and signed by the Purchaser and then
only to the extent therein set forth. A waiver by the Purchaser of any right or remedy on any occasion shall not be construed
as a bar to the exercise of any such right or remedy which the Purchaser would otherwise have had on any other occasion.

 

20.
Governing Law.

 

(a)
THE VALIDITY OF THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER TRANSACTION
DOCUMENT IN RESPECT OF SUCH OTHER TRANSACTION DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF,
AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO
OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

    	 	21	 

     

    

 

(b)
THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS
SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY
OF NEW YORK, STATE OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER
PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE PURCHASER ELECTS TO BRING SUCH ACTION
OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. PURCHASER AND EACH GRANTOR WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE
LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING
IS BROUGHT IN ACCORDANCE WITH THIS SECTION 21(b).

 

(c)
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, PURCHASER AND EACH GRANTOR HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. PURCHASER AND EACH GRANTOR
REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

21.
Miscellaneous.

 

(a)
This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one
and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission
shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed
counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed
counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability,
and binding effect of this Agreement. The foregoing shall apply to each other Transaction Document mutatis mutandis.

 

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

 

(c)
Headings used in this Agreement are for convenience only and shall not be used in connection with the interpretation of any provision
hereof.

 

    	 	22	 

     

    

 

(d)
The pronouns used herein shall include, when appropriate, either gender and both singular and plural, and the grammatical construction
of sentences shall conform thereto.

 

(e)
Unless the context of this Agreement or any other Transaction Document clearly requires otherwise, references to the plural include
the singular, references to the singular include the plural, the terms “includes” and “including” are
not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
“and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and
similar terms in this Agreement or any other Transaction Document refer to this Agreement or such other Transaction Document,
as the case may be, as a whole and not to any particular provision of this Agreement or such other Transaction Document, as the
case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified.
Any reference in this Agreement or in any other Transaction Document to any agreement, instrument, or document shall include all
alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements,
thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements set forth herein or in the other Transaction Documents). Any
reference herein to the satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or cash
collateralization in accordance with the terms hereof) of all Obligations other than unasserted contingent indemnification Obligations.
Any reference herein to any Person shall be construed to include such Person’s successors and assigns. Any requirement of
a writing contained herein shall be satisfied by the transmission of a Record and any Record so transmitted shall constitute a
representation and warranty as to the accuracy and completeness of the information contained therein.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	23	 

     

    

 

IN
WITNESS WHEREOF, the undersigned parties hereto have executed this Agreement by and through their duly authorized officers, as
of the day and year first above written:

 

	 	MARINA
    BIOTECH, INC.
	 	 	 
	 	By:
    	/s/
    Vuong Trieu
	 	Name:	Vuong
    Trieu
	 	Title:	Executive
    Chairman
	 	 	 
	 	ITHENA
    PHARMACEUTICALS, INC.
	 	 	 
	 	By:
    	/s/
    Vuong Trieu
	 	Name:	Vuong
    Trieu
	 	Title:	CFO
	 	 	 
	 	CEQUENT
    PHARMACEUTICALS, INC.
	 	 	 
	 	By:
    	/s/
    Vuong Trieu
	 	Name:	Vuong
    Trieu
	 	Title:	President
	 	 	 
	 	MDRNA
    RESEARCH, INC.
	 	 	 
	 	By:
    	/s/
    Vuong Trieu
	 	Name:	Vuong
    Trieu
	 	Title:	President
	 	 	 
	 	RIVER
    CHARITABLE REMAINDER UNIT
	 	TRUST,
    F/B/O ISAAC BLECH, JULY 20, 1987,
	 	ISAAC
    BLECH TRUSTEE
	 	 	 
	 	By:
    	/s/
    Isaac Blech
	 	Name:	Isaac
    Blech
	 	Title:	Trustee

 

    	 	24

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