Document:

Exhibit 10.1 

 

PROMISSORY NOTE 

 

	March 15, 2017	 	$	56,000.00	 

 

FOR VALUE RECEIVED, the undersigned, AGRITECH WORLDWIDE,
INC., a Nevada corporation (“Borrower”) hereby unconditionally and irrevocably promises to pay to the order
Jonathan Kahn and Mo Garfinkle (collectively, “Holder”), at the offices of Holder located in Chicago, Illinois,
or at such other place as Holder may designate from time to time in writing, in lawful money of the United States of America and
in immediately available funds, the amount of FIFTY-SIX THOUSAND DOLLARS AND 00/100 CENTS ($56,000.00) (collectively, the “Loans”),
plus interest thereon at the rate and in accordance with the terms set forth below.

 

1. Definitions. As used in this Promissory
Note (this “Note”), the following terms shall have the following meanings:

 

Bankruptcy Code: Title 11 of the United States
Code.

 

Business Day: any day other than a Saturday,
Sunday or other day on which banks in Chicago, Illinois are required to close.

 

Event of Default: any failure to pay any of
the Obligations when due.

 

Governmental Body: any foreign, federal, state,
municipal or other government, or any department, commission, board, bureau, agency, public authority or instrumentality thereof
or any court or arbitrator.

 

Maximum Rate: the highest rate of interest and
other charges which may be charged by Holder or which Borrower legally may contract to pay under applicable law.

 

Obligations: any and all indebtedness, liabilities
and obligations due or to become due, now existing or hereafter arising of Borrower to Holder under or in connection with this
Note.

 

Person: any individual, firm, corporation, limited
liability company, business enterprise, trust, association, joint venture, partnership or other entity, whether acting in an individual,
fiduciary or other capacity.

 

Principal Balance: the unpaid principal balance
of this Note outstanding from time to time.

 

2. Interest Rate; Maximum
Rate; Payments; Late Charges 

 

2.1 Interest Rate. The Principal
Balance shall bear interest at a rate per annum equal to 5.00%. Interest shall be computed on the basis of a year consisting of
365 days and charged for the actual number of days during the period for which interest is being charged. Accrued and unpaid interest
on the Principal Balance shall be payable monthly in arrears on the last Business day of each month in which any Obligations remain
outstanding commencing on the date such Principal Balance is disbursed hereunder.

 

2.3 Maximum Rate. Holder and Borrower
intend this Note to comply in all respects with all provisions of law and not to violate, in any way, any legal limitations on
interest and other charges. Accordingly, if, for any reason, Borrower is required to pay, or has paid, interest on the Principal
Balance or other charges at a rate in excess of the Maximum Rate, then the interest and other charges payable hereunder shall
be deemed to be reduced, automatically and immediately, to the Maximum Rate, the interest and other charges payable hereunder
shall be computed and paid at the Maximum Rate and the portion of all prior payments of interest or other charges in excess of
the Maximum Rate shall be deemed to have been payments in reduction of the Principal Balance.

 

     

     

    

 

2.4 Principal. The
Principal Balance, together with all accrued and unpaid interest thereon, shall be repaid to Holder out of the proceeds received
from the accounts receivable of Borrower collected after the date hereof immediately upon such receipt.

 

2.5 Application of
Payments. Any payments in respect of amounts due under this Note shall be applied first in satisfaction of any accrued and
unpaid interest, and then to the Principal Balance outstanding on a pro rata basis.

 

2.6 Expenses. Borrower
promises to pay to Holder all of Holder’s out-of-pocket costs and expenses in connection with the loan evidenced by this
Note, including Holder’s attorneys’ fees and expenses and costs of collection.

 

3. Prepayments. Borrower
may prepay the Principal Balance of this Note, in whole or in part at any time without notice, bonus or penalty.

 

4. Miscellaneous. 

 

4.1 Waivers. 

 

(a) Borrower waives presentment
for payment, notice of non-payment, notice of dishonour and notice of protest of this Note and waives any defences based upon indulgences
which may be granted by Holder to any party liable hereon. Borrower also waives the benefits of division and discussion and the
right to assert in any action or proceeding with regard to this Note any set-offs or counterclaims which Borrower may have.

 

(b) Neither the extension
of time for making any payment which is due and payable under this Note at any time or times, nor the failure, delay, or omission
of Holder to exercise or enforce any of its rights or remedies under this Note, shall constitute a waiver by Holder of its right
to enforce any such rights and remedies subsequently. The single or partial exercise of any such right or remedy shall not preclude
Holder’s further exercise of such right or remedy or any other right or remedy.

 

4.2 Modifications.
This Note may only be amended by an instrument in writing signed by the party against whom enforcement of the change or amendment
is sought.

 

4.3 Successors
and Assigns. This Note shall be binding upon Borrower and upon Borrower’s heirs, administrators, successors and
assigns, and shall inure to the benefit of Holder and their heirs, administrators, successors and assigns.

 

4.4 Severability. In the event that
any provision hereof shall be deemed to be invalid by reason of the operation of any law, or by reason of the interpretation placed
thereon by any court or any Governmental Body, this Note shall be construed as not containing such provision and the invalidity
of such provision shall not affect the validity of any other provisions hereof, and any and all other provisions hereof which
otherwise are lawful and valid shall remain in full force and effect.

 

    	 	-2-	 

     

    

 

4.5 Time of the Essence. Time
for the performance of the Obligations under this Note is of the essence.

 

4.6 Costs of
Collection. If any suit or action is instituted or attorneys are employed to collect this Note or any part hereof,
Borrower promises and agrees to pay all costs of collection, including all court costs and reasonable attorneys’ fees
based upon customary hourly rates and not a percentage of the indebtedness outstanding.

 

4.7 Further
Assurances. Borrower shall at all times do all such things and provide all such reasonable assurances as may be required
to consummate the transactions contemplated by this Note, and shall provide such further documents or instruments required by
Holder as may be reasonably necessary or desirable to effect the purpose of this Note and carry out its provisions.

 

5. GOVERNING LAW. This Note
shall be construed in accordance with and governed by the laws and decisions of the State of Illinois. 

 

6. VENUE; JURY TRIAL. Borrower
hereby agrees that all actions or proceedings initiated by Borrower and arising directly or indirectly out of this Note shall be
litigated in either the Circuit Court of Cook County, Illinois or in the United States District Court for the Northern District
of Illinois, or, if Holder initiates such action, in addition to the foregoing courts, any court in which Holder shall initiate
or to which Holder shall remove such action, to the extent such court otherwise has jurisdiction. Borrower hereby expressly submits
and consents in advance to such jurisdiction in any action or proceeding commenced in or removed by Holder to any of such courts,
and hereby waives personal service of the summons and complaint, or other process or papers issued therein, and agrees that service
of such summons and complaint or other process or papers may be made by registered or certified mail addressed to Borrower at the
address set forth below Borrower’s signature on this Note. Borrower waives any claim that any court having situs in Cook
County, Illinois is an inconvenient forum or an improper forum based on lack of venue. Should Borrower, after being so served,
fail to appear or answer any summons, complaint, process or papers so served within the period of time prescribed by law after
the mailing thereof, Borrower shall be deemed in default and an order and/or judgment may be entered by Holder against Borrower
as demanded or prayed for in such summons, complaint, process or papers. The exclusive choice of forum for Borrower set forth in
this paragraph shall not be deemed to preclude the enforcement, by Holder, of any judgment obtained in any other forum or the taking,
by Holder, of any action to enforce the same in any other appropriate jurisdiction, and Borrower hereby waives the right to collaterally
attack any such judgment or action. The parties hereto affirmatively waive any right to a trial by jury. 

 

[The remainder of this page is intentionally left blank]

 

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IN WITNESS WHEREOF, this Promissory Note has
been executed and delivered by Borrower as of the date first set forth above.

 

	 	BORROWER:
	 	 
	 	AGRITECH
    WORLDWIDE, INC.,

a Nevada corporation
	 	 	 
	 	By:	/s/
    Jonathan Kahn
	 	Name:	Jonathan
    Kahn
	 	Title:	Chief
    Executive Officer

 

Signature Page to Demand Note 

 

 

-4-Exhibit
10.2 

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT (this “Security Agreement”), dated as of March 15, 2017, between AGRITECH WORLDWIDE,
INC., a Nevada corporation (“Grantor”), and Jonathan Kahn, individually and in its capacity as Agent for Lenders
(as defined below).

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to that certain Demand Note dated as of the date hereof by and among Grantor, Agent, Jonathan Kahn and Mo Garfinkle (collectively,
the “Lenders”) (including all annexes, exhibits and schedules thereto, as from time to time amended, restated,
supplemented or otherwise modified, the “Note”), Lenders have agreed to make the Loans on behalf of Grantor;

 

WHEREAS,
in order to induce Agent and Lenders to enter into the Note and to induce Lenders to make the Loans and to incur other Obligations
as provided for in the Note, Grantor has agreed to grant a continuing lien on the Collateral (as hereinafter defined) to secure
the Obligations;

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.    DEFINED
TERMS.

 

(a)    All
capitalized terms used but not otherwise defined herein have the meanings given to them in the Note. All other terms contained
in this Security Agreement, unless the context indicates otherwise, have the meanings provided for by the Code to the extent the
same are used or defined therein.

 

(b)    “Uniform
Commercial Code jurisdiction” means any jurisdiction that has adopted all or substantially all of Article 9 as contained
in the 2004 Official Text of the Uniform Commercial Code, as recommended by the National Conference of Commissioners on Uniform
State Laws and the American Law Institute, together with any subsequent amendments or modifications to the Official Text.

 

     

     

    

 

2.    GRANT
OF LIEN.

 

To
secure the full and timely payment and performance by Grantor to Agent and Lenders of the Obligations, Grantor hereby grants to
Agent, for the benefit of itself and the Lenders, a security interest and lien in and right of setoff against all of Grantor’s
assets, personal property, fixtures, rights and interests of Grantor (subject only to Permitted Encumbrances (as defined below)),
whether now existing or owned and hereafter arising or acquired and wherever located, including, without limitation, all of Grantor’s:
(A) Accounts; (B) Goods for sale, lease or other disposition by Grantor which have given rise to Accounts and have been returned
to or repossessed or stopped in transit by Grantor; (C) contract rights and documents, instruments, contracts or other writings
executed in connection therewith, including, but not limited to, all real and personal property lease rights; (D) Chattel
Paper, Electronic Chattel Paper, Tangible Chattel Paper, Documents of Title, Instruments, Documents, General Intangibles, Payment
Intangibles, Letter of Credit Rights, letters of credit and Supporting Obligations; (E) patents, trademarks, trade names,
trademark registrations and copyrights, all applications therefor, service marks, trade secrets, goodwill, inventions, processes,
designs, formulas, and other intellectual or proprietary rights or interests, of any kind, nature or description whatsoever, and
all registrations, licenses, franchises, customer lists, tax refund claims, claims against carrier and shippers, insurance claims,
guaranty claims, all other claims, proof of claims filed in any bankruptcy, insolvency or other proceeding, contract rights, choses
in action, security interests, security deposits and rights to indemnification; (F) Goods, including, without limitation,
Inventory, Equipment, Fixtures, trade fixtures and vehicles; (G) Investment Property; (H) deposits, cash and cash equivalents
and any other property of Grantor now or hereafter in the possession, custody or control of Agent or any of the Lenders, whether
for safekeeping, deposit, collection, custody, pledge, transmission or otherwise; (I) Commercial Tort Claims; (J) deposit
accounts held with Agent or any other depository institution; (K) all other personal property of Grantor of any kind or nature;
and (L) additions and accessions to, substitutions for and replacements, products and cash and non-cash Proceeds of all of
the foregoing property, including, but not limited to, Proceeds of all insurance policies insuring the foregoing and all of Grantor’s
books and records relating to any of the foregoing and to Grantor’s business (all of the foregoing property, together with
all other real or personal property of any other Person now or hereafter pledged to Agent, for the benefit of itself and the Lenders,
to secure, either directly or indirectly, repayment of any of the Obligations, is collectively referred to as the “Collateral”).
Notwithstanding the foregoing, any voting stock in excess of 65% of the voting stock of any foreign subsidiary shall not be deemed
to be Collateral and no security interest is granted hereby in such voting stock in excess of 65%. Grantor shall make appropriate
entries upon its financial statements and books and records disclosing Agent’s first position priority security interest
and lien in the Collateral (subject only to Permitted Encumbrances).

 

3.    AGENT’S
AND LENDERS’ RIGHTS; LIMITATIONS ON AGENT’S AND LENDERS’ OBLIGATIONS.

 

(a)    It
is expressly agreed by Grantor that, anything herein to the contrary notwithstanding, Grantor shall remain liable under each of
its contractual obligations and each of its licenses to observe and perform all of the conditions and obligations to be observed
and performed by it thereunder. Neither Agent nor any Lender shall have any obligation or liability under any contractual obligation
or license by reason of or arising out of this Security Agreement or the granting herein of a lien thereon or the receipt by Agent
or any Lender of any payment relating to any contractual obligation or license pursuant hereto. Neither Agent nor any Lender shall
be required or obligated in any manner to perform or fulfill any of the obligations of Grantor under or pursuant to any contractual
obligation or license, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received
by it or the sufficiency of any performance by any party under any contractual obligation or license, or to present or file any
claims, or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned
to it or to which it may be entitled at any time or times.

 

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(b)    Agent
may at any time after an Event of Default has occurred and is continuing without prior notice to Grantor, notify Account Debtors
and other Persons obligated on the Collateral that Agent has a security interest therein, and that payments shall be made directly
to Agent. Upon the request of Agent, following the occurrence and during the continuation of an Event of Default, Grantor shall
so notify Account Debtors and other Persons obligated on Collateral. Once any such notice has been given to any Account Debtor
or other Person obligated on the Collateral, the affected Grantor shall not give any contrary instructions to such Account Debtor
or other Person without Agent’s prior written consent.

 

(c)    So
long as an Event of Default has occurred and continuing, Agent may at any time in Agent’s own name, in the name of a nominee
of Agent or in the name of Grantor communicate (by mail, telephone, facsimile or otherwise) with Account Debtors, parties to contracts
and obligors in respect of Instruments to verify with such Persons, to Agent’s satisfaction, the existence, amount, terms
of, and any other matter relating to, Accounts, Instruments, Chattel Paper and/or payment intangibles. So long as an Event of
Default has occurred and is continuing, Grantor, at its own expense, shall cause the independent certified public accountants
then engaged by Grantor to prepare and deliver to Agent and each Lender at any time and from time to time promptly upon Agent’s
request the following reports with respect to Grantor: (i) a reconciliation of all Accounts; (ii) an aging of all Accounts;
(iii) trial balances; and (iv) a test verification of such Accounts as Agent may request. Grantor, at its own expense,
shall deliver to Agent the results of each physical verification, if any, which Grantor may in its discretion have made, or caused
any other Person to have made on its behalf, of all or any portion of its Inventory.

 

4.    REPRESENTATIONS
AND WARRANTIES. Grantor represents and warrants that as of the date hereof:

 

(a)    Grantor
has rights in and the corporate power to transfer each item of the Collateral upon which it purports to grant a lien hereunder
free and clear of any and all liens other than those liens securing the obligations of Grantor pursuant to and under that certain
Loan and Security Agreement, dated as of February 1, 2017, by and among the Grantor, as borrower, GKS Funding LLC, as administrative
agent, and the other lenders party thereto (the “Permitted Encumbrances”).

 

(b)    No
effective security agreement, financing statement, equivalent security or lien instrument or continuation statement covering all
or any part of the Collateral is on file or of record in any public recording office, except such as may have been filed (i) by
Grantor or Agent in favor of Agent pursuant to this Security Agreement, and (ii) in connection with any other Permitted Encumbrances.

 

(c)    This
Security Agreement is effective to create a valid, continuing and perfected lien in favor of Agent, for itself and the benefit
of Lenders, on the Collateral with respect to which a lien may be perfected by filing a financing statement pursuant to the Code.
Such lien is prior to all other liens, and is enforceable as such as against any and all creditors of and purchasers from Grantor
(other than purchasers and lessees of Inventory in the ordinary course of business and non-exclusive licensees of General Intangibles
in the ordinary course of business), except as enforcement may be limited by bankruptcy, insolvency or similar laws relating to
the enforcement of creditors’ rights generally and by equitable principles. All action by Grantor necessary or desirable
to protect and perfect such lien on each item of the Collateral has been duly taken.

 

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(d)    With
respect to the Accounts, (i) they represent bona fide sales of Inventory or rendering of services to Account Debtors in the
ordinary course of Grantor’s business and are not evidenced by a judgment, Instrument or Chattel Paper; (ii) to Grantor’s
knowledge, there are no setoffs, claims or disputes existing or asserted with respect thereto and Grantor has not made any agreement
with any Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less than the full
amount thereof, any release of any Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance
allowed by Grantor in the ordinary course of its business for prompt payment; (iii) to Grantor’s knowledge, there are
no facts, events or occurrences which in any way impair the validity or enforceability thereof or could reasonably be expected
to reduce the amount payable thereunder as shown on Grantor’s books and records and any invoices, and statements delivered
to Agent and Lenders with respect thereto; (iv) Grantor has not received any notice of proceedings or actions which are threatened
or pending against any Account Debtor which would reasonably be expected to result in any material adverse change in such Account
Debtor’s financial condition; and (v) Grantor has no knowledge that any Account Debtor is unable generally to pay its
debts as they become due. Further with respect to the Accounts (x) the amounts shown on all invoices and statements which
may be delivered to the Agent with respect thereto are actually and absolutely owing to Grantor as indicated thereon and are not
in any way contingent; (y) no payments have been or shall be made thereon; and (z) to Grantor’s knowledge, all
Account Debtors have the capacity to contract.

 

(e)    This
Security Agreement is effective to create a valid and continuing lien on and, upon filing of any copyright security agreements
with the United States Copyright Office or filing of any patent security agreements or any trademark security agreements with
the United State Patent and Trademark Office, perfected liens in favor of Agent on Grantor’s Patents, Trademarks and Copyrights.
Upon filing of any copyright security agreements with the United States Copyright Office and filing of any patent security agreements
and any trademark security agreements with the United State Patent and Trademark Office and the filing of appropriate financing
statements, all action necessary to protect and perfect Agent’s lien on Grantor’s Patents, Trademarks or Copyrights
shall have been duly taken.

 

5.    COVENANTS.
Grantor covenants and agrees with Agent, for the benefit of Agent and Lenders, that from and after the date of this Security Agreement
and until the indefeasible and final payment in full of the Obligations:

 

(a)    Further
Assurances; Pledge of Instruments; Chattel Paper.

 

(i)    At
any time and from time to time, upon the reasonable written request of Agent and at the sole expense of Grantor, Grantor shall
promptly and duly execute and deliver any and all such further instruments and documents and take such further actions as Agent
may deem reasonably necessary to obtain the full benefits of this Security Agreement and of the rights and powers herein granted,
including (A) using its commercially reasonable efforts to secure all consents and approvals necessary for the assignment
to or for the benefit of Agent of any license or contract held by Grantor and to enforce the security interests granted hereunder;
and (B) filing any financing or continuation statements under the Code with respect to the liens granted hereunder as to
those relevant jurisdictions that are not Uniform Commercial Code jurisdictions.

 

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(ii)    Unless
Agent shall otherwise consent in writing (which consent may be revoked), Grantor shall deliver to Agent all Collateral consisting
of negotiable Documents, certificated securities, Chattel Paper and Instruments (in each case, accompanied by stock powers, allonges
or other instruments of transfer executed in blank) promptly after Grantor receives the same.

 

(iii)    Grantor
will take all steps necessary to grant the Agent control of all electronic chattel paper in accordance with the Code and all “transferable
records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National
Commerce Act.

 

(iv)    Grantor
hereby irrevocably authorizes the Agent at any time and from time to time to file in any appropriate filing office in any Uniform
Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as
all assets of Grantor or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article 9 of the Code or such jurisdiction, or (ii) as being of an equal or lesser scope or with greater
detail, and (b) contain any other information required by part 5 of Article 9 of the Code for the sufficiency or filing office
acceptance of any financing statement or amendment, including (i) whether Grantor is an organization, the type of organization
and any organization identification number issued to Grantor, and (ii) in the case of a financing statement filed as a fixture
filing, a sufficient description of real property to which the Collateral relates. Grantor agrees to furnish any such information
to the Agent promptly upon request.

 

(b)    Maintenance
of Records. Grantor shall keep and maintain, at its own cost and expense, satisfactory and complete records of the Collateral,
including a record of any and all payments received and any and all credits granted with respect to the Collateral and all other
dealings with the Collateral. If Grantor retains possession of any Chattel Paper or Instruments with Agent’s consent, 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 Jonathan Kahn, as Agent, for the benefit of Agent and certain Lenders.”

 

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(c)    Covenants
Regarding Patent, Trademark and Copyright Collateral.

 

(i)    Grantor
shall provide a report to Agent each month in which it notifies Agent if it knows that any application or registration relating
to any registered Patent, Trademark or Copyright (now or hereafter existing) it owns is reasonably expected to become abandoned
or dedicated to the public domain, or of any material adverse determination or development (including the institution of, or any
such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright
Office or any court) regarding Grantor’s ownership of any such Patent, Trademark or Copyright, its right to register the
same, or to keep and maintain the same.

 

(ii)    Grantor
shall provide a report to Agent each month in which it notifies Agent if either itself or through any agent, employee, licensee
or designee, filed 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, and, upon request of Agent, Grantor shall
execute and deliver Patent Security Agreements, Copyright Security Agreements or Trademark Security Agreements as Agent may reasonably
request to evidence Agent’s lien on such Patent, Trademark or Copyright, and the General Intangibles of Grantor relating
thereto or represented thereby.

 

(iii)   Grantor
shall take all actions necessary or reasonably requested by Agent to maintain and pursue each application, to obtain the relevant
registration and to maintain the registration of each of the Patents, Trademarks and Copyrights (now or hereafter existing), including
the filing of applications for renewal, affidavits of use, affidavits of noncontestability and opposition and interference and
cancellation proceedings.

 

(iv)    In
the event that Grantor becomes aware that any of its Patent, Trademark or Copyright Collateral is infringed upon in any material
respect, or misappropriated or diluted by a third party, Grantor shall promptly notify Agent. Grantor shall, unless it shall reasonably
determine that such Patent, Trademark or Copyright is not material to the conduct of its business or operations, after having
exhausted negotiations or other attempts to resolve the dispute, take commercially reasonable actions to abate (including, if
appropriate, to sue for) infringement, misappropriation or dilution and to recover any and all damages for such infringement,
misappropriation or dilution, and shall take such other actions as Agent shall deem necessary under the circumstances to protect
such Patent, Trademark or Copyright.

 

(d)    Indemnification.
In any suit, proceeding or action brought by Agent or any Lender relating to any Collateral for any sum owing with respect thereto
or to enforce any rights or claims with respect thereto, Grantor will save, indemnify and keep Agent and Lenders harmless from
and against all expense (including reasonable attorneys’ fees and expenses), loss or damage suffered by reason of any defense,
setoff, counterclaim, recoupment or reduction of liability whatsoever of the Account Debtor or other Person obligated on the Collateral,
arising out of a breach by Grantor of any obligation thereunder or arising out of any other agreement, indebtedness or liability
at any time owing to, or in favor of, such obligor or its successors from Grantor, except in the case of Agent or any Lender,
to the extent such expense, loss, or damage is attributable to the gross negligence or willful misconduct of Agent or such Lender
as determined by a final non-appealable judgment of a court of competent jurisdiction. All such obligations of Grantor shall be
and remain enforceable against and only against Grantor and shall not be enforceable against Agent or any Lender.

 

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(e)    Compliance
with Terms of Accounts, etc. In all material respects, Grantor will perform and comply with all obligations in respect of
the Collateral and all other agreements to which it is a party or by which it is bound relating to the Collateral.

 

(f)    Limitation
on Liens on Collateral. Grantor will not create, permit or suffer to exist, and will take commercially reasonable efforts
defend the Collateral against, and take such other action as is necessary or requested by Agent to remove, any lien on the Collateral
except Permitted Encumbrances, and will use commercially reasonable efforts to defend the rights of Agent and Lenders in and to
any of Grantor’s rights under the Collateral against the claims and demands of all Persons whomsoever.

 

(g)    Limitations
on Disposition. Grantor will not sell, license, lease, transfer or otherwise dispose of any of the Collateral, or attempt
or contract to do so, other than sales of Inventory in the ordinary course of business.

 

(h)    Further
Identification of Collateral. Grantor will, if so requested by Agent, furnish to Agent, not more than monthly, statements
and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Agent
may request, all in such detail as Agent may specify.

 

(i)     Notices.
Grantor will advise Agent promptly, in reasonable detail, (i) of any lien (other than Permitted Encumbrances) or claim made
or asserted against any of the Collateral, and (ii) of the occurrence of any other event which could have a material adverse
effect on the aggregate value of the Collateral or on the liens created hereunder.

 

(j)     Good
Standing Certificates. If requested by Agent, Grantor shall provide to Agent a certificate of good standing from its state
of incorporation or organization not more frequently than once during each fiscal year.

 

(k)    No
Reincorporation. Grantor shall not reincorporate or reorganize itself under the laws of any jurisdiction other than the jurisdiction
in which it is incorporated or organized as of the date hereof without the prior written consent of Agent.

 

(l)     Terminations;
Amendments Not Authorized. Grantor acknowledges that it is not authorized to file any financing statement or amendment or
termination statement with respect to any financing statement without the prior written consent of Agent and agrees that it will
not do so without the prior written consent of Agent, subject to Grantor’s rights under Section 9-509(d)(2) of the Code.

 

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(m)    Release
of Grantor. This Security Agreement and all obligations of Grantor hereunder and all security interests granted hereby shall
be released and terminated upon the indefeasible and final payment in full of the Obligations. Upon such release and termination,
all rights in and to the Collateral shall automatically revert to Grantor, and Agent and the Lenders shall return any Collateral
in their possession to Grantor, or to the Person or Persons legally entitled thereto, and shall endorse, execute, deliver, record
and file all instruments and documents, and do all other acts and thing, reasonably required for the return of the Collateral
to Grantor, or to the Person or Persons legally entitled thereto, and to evidence or document the release of the ratable benefit
of Agent and Lenders arising under this Security Agreement, all at the expense of and as reasonably requested by Grantor.

 

6.    AGENT’S
APPOINTMENT AS ATTORNEY-IN-FACT.

 

On
the date hereof Grantor shall execute and deliver to Agent a power of attorney (the “Power of Attorney”) substantially
in the form attached hereto as Exhibit A. The power of attorney granted pursuant to the Power of Attorney is a power coupled
with an interest and shall be irrevocable until the indefeasible and final payment in full of the Obligations. The powers conferred
on Agent, for the benefit of Agent and Lenders, under the Power of Attorney are solely to protect Agent’s interests (for
the benefit of Agent and Lenders) in the Collateral and shall not impose any duty upon Agent or any Lender to exercise any such
powers. Agent agrees that (a) except for the powers granted in clause (h) of the Power of Attorney, it shall not exercise
any power or authority granted under the Power of Attorney unless an Event of Default has occurred and is continuing, and (b) Agent
shall account for any moneys received by Agent in respect of any foreclosure on or disposition of Collateral pursuant to the Power
of Attorney provided that none of Agent nor any Lender shall have any duty as to any Collateral except as provided herein
with respect to Collateral in its possession or under its control, and Agent and Lenders shall be accountable only for amounts
they actually receive as a result of the exercise of such powers. NONE OF AGENT, LENDERS OR THEIR RESPECTIVE AFFILIATES, OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL BE RESPONSIBLE TO GRANTOR FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER
OF ATTORNEY OR OTHERWISE, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED
BY A FINAL NON-APPEALABLE JUDGMENT OF A COURT OF COMPETENT JURISDICTION, NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL
DAMAGES.

 

    	 	8	 

     

    

 

7.    REMEDIES;
RIGHTS UPON DEFAULT.

 

(a)    In
addition to all other rights and remedies granted to it under this Security Agreement, the Note, and under any other instrument
or agreement securing, evidencing or relating to any of the Obligations (but subject to the terms of such instruments of agreements),
if any Event of Default shall have occurred and be continuing, Agent may exercise all rights and remedies of a secured party under
the Code. Without limiting the generality of the foregoing, Grantor expressly agrees that in any such event Agent, without demand
of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public
or private sale) to or upon Grantor 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 and other applicable law), may forthwith enter upon the premises
of Grantor where any Collateral is located through self-help, without judicial process, without first obtaining a final judgment
or giving Grantor or any other Person notice and opportunity for a hearing on Agent’s claim or action and may collect, receive,
assemble, process, appropriate and realize upon the Collateral, or any part thereof, and may forthwith sell, lease, license, assign,
give an option or options to purchase, or sell or otherwise dispose of and deliver said Collateral (or contract to do so), or
any part thereof, in one or more parcels at a public or private sale or sales, at any exchange at such prices as it may deem acceptable,
for cash or on credit or for future delivery without assumption of any credit risk. Agent or any Lender shall have the right upon
any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase for the benefit
of Agent and Lenders, the whole or any part of said Collateral so sold, free of any right or equity of redemption, which equity
of redemption Grantor hereby releases. Such sales may be adjourned and continued from time to time with or without notice. Agent
shall have the right to conduct such sales on Grantor’s premises or elsewhere and shall have the right to use Grantor’s
premises without charge for such time or times as Agent deems necessary or advisable.

 

If
any Event of Default shall have occurred and be continuing, Grantor further agrees, at Agent’s request, to assemble the
Collateral and make it available to Agent at a place or places designated by Agent which are reasonably convenient to Agent and
Grantor, whether at Grantor’s premises or elsewhere. Until Agent is able to effect a sale, lease, or other disposition of
Collateral, Agent shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate
for the purpose of preserving Collateral or its value or for any other purpose deemed appropriate by Agent. Agent shall have no
obligation to Grantor to maintain or preserve the rights of Grantor as against third parties with respect to Collateral while
Collateral is in the possession of Agent. Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession
of Collateral and to enforce any of Agent’s remedies (for the benefit of Agent and Lenders), with respect to such appointment
without prior notice or hearing as to such appointment. Agent shall apply the net proceeds of any such collection, recovery, receipt,
appropriation, realization or sale to the Obligations as provided in the Note, and only after so paying over such net proceeds,
and after the payment by Agent of any other amount required by any provision of law, need Agent account for the surplus, if any,
to Grantor. To the maximum extent permitted by applicable law, Grantor waives all claims, damages, and demands against Agent or
any Lender arising out of the repossession, retention or sale of the Collateral except to the extent that such arise out of the
gross negligence or willful misconduct of Agent or such Lender as determined by a final non-appealable judgment of a court of
competent jurisdiction. Grantor agrees that ten (10) days prior notice by Agent of the time and place of any public sale
or of the time after which a private sale may take place is reasonable notification of such matters. Grantor shall remain liable
for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations, including
any attorneys’ fees and other expenses incurred by Agent or any Lender to collect such deficiency.

 

    	 	9	 

     

    

 

(b)    Except
as otherwise specifically provided herein, Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent
permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral.

 

(c)    To
the extent that applicable law imposes duties on the Agent to exercise remedies in a commercially reasonable manner, Grantor acknowledges
and agrees that it is not commercially unreasonable for the Agent so long as an Event of Default shall have occurred and be continuing
(i) to fail to incur expenses reasonably deemed significant by the Agent to prepare Collateral for disposition or otherwise
to complete raw material or work in process into finished goods or other finished products for disposition, (ii) to fail
to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail
to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of,
(iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove
liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other
Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to
advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of
a specialized nature, (vi) to contact other Persons, whether or not in the same business as Grantor, for expressions of interest
in acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet
sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing
so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to
disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements
to insure the Agent against risks of loss, collection or disposition of Collateral or to provide to the Agent a guaranteed return
from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the Agent, to obtain the services
of other brokers, investment bankers, consultants and other professionals to assist the Agent in the collection or disposition
of any of the Collateral. Grantor acknowledges that the purpose of this Section 7(c) is to provide non-exhaustive indications
of what actions or omissions by the Agent would not be commercially unreasonable in the Agent’s exercise of remedies against
the Collateral and that other actions or omissions by the Agent shall not be deemed commercially unreasonable solely on account
of not being indicated in this Section 7(c). Without limitation upon the foregoing, nothing contained in this Section 7(c) shall
be construed to grant any rights to Grantor or to impose any duties on Agent that would not have been granted or imposed by this
Security Agreement or by applicable law in the absence of this Section 7(c).

 

    	 	10	 

     

    

 

(d)    Neither
the Agent nor the Lenders shall be required to make any demand upon, or pursue or exhaust any of their rights or remedies against,
Grantor, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Obligations or to pursue
or exhaust any of their rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof.
Neither the Agent nor the Lenders shall be required to marshal the Collateral or any guarantee of the Obligations or to resort
to the Collateral or any such guarantee in any particular order, and all of its and their rights hereunder shall be cumulative.
To the extent it may lawfully do so, Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of,
and covenants not to assert against the Agent or any Lender, any valuation, stay, appraisement, extension, redemption or similar
laws and any and all rights or defenses it may have as a surety now or hereafter existing which, but for this provision, might
be applicable to the sale of any Collateral made under the judgment, order or decree of any court, or privately under the power
of sale conferred by this Security Agreement, or otherwise.

 

8.    GRANT
OF LICENSE TO USE INTELLECTUAL PROPERTY-COLLATERAL. Solely for the purpose of enabling Agent to exercise rights and remedies
under Section 7 hereof (including, without limiting the terms of Section 7 hereof, in order to take possession
of, hold, preserve, assemble, prepare for sale, market for sale, sell or otherwise dispose of Collateral) at such time as Agent
shall be lawfully entitled to exercise such rights and remedies, Grantor hereby grants to Agent, for the benefit of Agent and
Lenders, an irrevocable, terminable (pursuant to Section 15 hereof), nonexclusive, non-transferable, non-sublicensable license
to use, solely during the continuance of an Event of Default, any Intellectual Property now owned or hereafter acquired by Grantor,
wherever such Intellectual Property may be located (exercisable without payment or royalty or other compensation to Grantor, but
subject to any and all obligations to pay royalties or other compensation to any third parties under any relevant license or other
agreement with any third parties with respect to any such Intellectual Property), expect to the extent the foregoing license granted
by Grantor to Agent, or the use of any such Intellectual Property by or for the benefit of Agent or Lenders, is prohibited by,
or constitutes a breach or default under, or results in the termination of, or requires any consent not obtained under, any contract,
license, agreement, instrument or other document related to such Intellectual Property.

 

9.    LIMITATION
ON AGENT’S AND LENDERS’ DUTY IN RESPECT OF COLLATERAL. Agent and each Lender shall use reasonable care with respect
to the Collateral in its possession or under its control. Neither Agent nor any Lender shall have any other duty as to any Collateral
in its possession or control or in the possession or control of any agent or nominee of Agent or such Lender, or any income thereon
or as to the preservation of rights against prior parties or any other rights pertaining thereto.

 

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

 

    	 	11	 

     

    

 

11.    NOTICES.
Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties
desires to give and serve upon any other party any communication with respect to this Security Agreement, each such notice, demand,
request, consent, approval, declaration or other communication shall be in writing and shall be given to Agent and/or Grantor,
as applicable, via overnight delivery.

 

12.    SEVERABILITY.
Whenever possible, each provision of this Security Agreement shall be interpreted in a manner as to be effective and valid under
applicable law, but if any provision of this Security Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the
remaining provisions of this Security Agreement. This Security Agreement is to be read, construed and applied together with the
Note which, taken together, set forth the complete understanding and agreement of Agent, Lenders and Grantor with respect to the
matters referred to herein and therein.

 

13.    NO
WAIVER; CUMULATIVE REMEDIES. Neither Agent nor any Lender shall by any act, delay, omission or otherwise be deemed to have
waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by Agent and then only
to the extent therein set forth. A waiver by Agent of any right or remedy hereunder on any one occasion shall not be construed
as a bar to any right or remedy which Agent would otherwise have had on any future occasion. No failure to exercise nor any delay
in exercising on the part of Agent or any Lender, any right, power or privilege hereunder, shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or future exercise thereof
or the exercise of any other right, power or privilege. The rights and remedies hereunder provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights and remedies provided by law. None of the terms or provisions of this
Security Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by Agent and
Grantor.

 

14.    LIMITATION
BY LAW. All rights, remedies and powers provided in this Security Agreement may be exercised only to the extent that the exercise
thereof does not violate any applicable provision of law, and all the provisions of this Security Agreement are intended to be
subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that
they shall not render this Security Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered
or filed under the provisions of any applicable law.

 

15.    TERMINATION
OF THIS SECURITY AGREEMENT. Subject to Section 10 hereof, this Security Agreement shall terminate upon the indefeasible
and final payment in full of the Obligations.

 

16.    SUCCESSORS
AND ASSIGNS. This Security Agreement and all obligations of Grantor hereunder shall be binding upon the successors and assigns
of Grantor (including any debtor-in-possession on behalf of Grantor) and shall, together with the rights and remedies of Agent,
for the benefit of Agent and Lenders, hereunder, inure to the benefit of Agent and Lenders, all future holders of any instrument
evidencing any of the Obligations and their respective successors and assigns. No sales of participations, other sales, assignments,
transfers or other dispositions of any agreement governing or instrument evidencing the Obligations or any portion thereof or
interest therein shall in any manner impair the lien granted to Agent, for the benefit of Agent and Lenders, hereunder. Grantor
may not assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Security Agreement.

 

    	 	12	 

     

    

 

17.    COUNTERPARTS.
This Security Agreement may be authenticated in any number of separate counterparts, each of which shall collectively and separately
constitute one agreement. This Security Agreement may be authenticated by manual signature, facsimile or, if approved in writing
by Agent, electronic means, all of which shall be equally valid.

 

18.    GOVERNING
LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THE NOTE, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS SECURITY AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE, AND ANY APPLICABLE
LAWS OF THE UNITED STATES OF AMERICA. GRANTOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN COOK COUNTY,
CITY OF CHICAGO, ILLINOIS, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN GRANTOR, AGENT
AND LENDERS PERTAINING TO THIS SECURITY AGREEMENT OR THE NOTE OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT
OR THE NOTE, PROVIDED, THAT AGENT, LENDERS AND GRANTOR ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY
A COURT LOCATED OUTSIDE COOK COUNTY, AND, PROVIDED, FURTHER, NOTHING IN THIS SECURITY AGREEMENT SHALL BE DEEMED
OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL
OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT. GRANTOR EXPRESSLY
SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND GRANTOR HEREBY WAIVES
ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS. GRANTOR
HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE
OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO GRANTOR AT THE ADDRESS
SET FORTH ON THE SIGNATURE PAGE HERETO AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT THEREOF
OR FIVE (5) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID.

    	 	13	 

     

    

 

19.    WAIVER
OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY
RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION
RULES), THE PARTIES DESIRE THAT DISPUTES ARISING HEREUNDER OR RELATING HERETO BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE
LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO
WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT,
TORT, OR OTHERWISE, AMONG AGENT, LENDERS, AND GRANTOR ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED IN CONNECTION WITH, THIS SECURITY AGREEMENT OR THE NOTE OR THE TRANSACTIONS RELATED HERETO OR THERETO.

 

20.    SECTION
TITLES. The Section titles contained in this Security Agreement are and shall be without substantive meaning or content of
any kind whatsoever and are not a part of the agreement between the parties hereto.

 

21.    NO
STRICT CONSTRUCTION. The parties hereto have participated jointly in the negotiation and drafting of this Security Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Security Agreement shall be construed as if drafted
jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any provisions of this Security Agreement.

 

22.    ADVICE
OF COUNSEL. Each of the parties represents to each other party hereto that it has discussed this Security Agreement and, specifically,
the provisions of Section 18 and Section 19, with its counsel.

 

23.    BENEFIT
OF LENDERS. All liens granted or contemplated hereby shall be for the benefit of Agent, individually, and Lenders, and all
proceeds or payments realized from Collateral in accordance herewith shall be applied to the Obligations in accordance with the
terms of the Note.

 

24.    AGENT.

 

(a)    Appointment.
Each Lender hereby designates and appoints Agent as its agent under this Security Agreement, and each Lender hereby irrevocably
authorizes Agent to execute and deliver this Security Agreement (and any intercreditor or subordination agreements contemplated
hereby) and to take such action or to refrain from taking such action on its behalf under the provisions of this Security Agreement
and to exercise such powers as are set forth herein or therein, together with such other powers as are reasonably incidental thereto.
Agent is authorized and empowered to amend, modify, or waive any provisions of this Security Agreement on behalf of Lenders subject
to the requirement that certain of Lenders’ consent be obtained in certain instances as provided in this Section 24.
The provisions of this Section 24 are solely for the benefit of Agent and Lenders and Grantor shall not have any rights
as a third party beneficiary of any of the provisions hereof. In performing its functions and duties under this Security Agreement,
Agent shall act solely as agent of Lenders and does not assume and shall not be deemed to have assumed any obligation toward or
relationship of agency or trust with or for Grantor. Agent may perform any of its duties hereunder by or through its agents or
employees.

 

    	 	14	 

     

    

 

(b)    Nature
of Duties. The duties of Agent shall be mechanical and administrative in nature. Agent shall not have by reason of this Security
Agreement a fiduciary relationship in respect of any Lender.    Nothing in this Security Agreement, express
or implied, is intended to or shall be construed to impose upon Agent any obligations in respect of this Security Agreement except
as expressly set forth herein or therein. Each Lender shall make its own independent investigation of the financial condition
and affairs of Grantor in connection with the extension of credit under the Note and shall make its own appraisal of the creditworthiness
of Grantor, and Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any Lender with
any credit or other information with respect thereto (other than as expressly required herein). If Agent seeks the consent or
approval of any Lenders to the taking or refraining from taking any action hereunder, then Agent shall send notice thereof to
each Lender.

 

(c)    Rights,
Exculpation, Etc. Neither Agent nor any of its officers, directors, employees or agents shall be liable to any Lender for
any action taken or omitted by them hereunder, or in connection herewith, except that Agent shall be liable to the extent of its
own gross negligence or willful misconduct as determined by a final non-appealable order by a court of competent jurisdiction.
Agent shall not be liable for any apportionment or distribution of payments made by it in good faith and if any such apportionment
or distribution is subsequently determined to have been made in error the sole recourse of any Lender to whom payment was due
but not made, shall be to recover from other Lenders any payment in excess of the amount to which they are determined to be entitled
(and such other Lenders hereby agree to return to such Lender any such erroneous payments received by them). In no event shall
Agent be liable for punitive, special, consequential, incidental, exemplary or other similar damages. In performing its functions
and duties hereunder, Agent shall exercise the same care which it would in dealing with loans for its own account, but neither
Agent nor any of its agents or representatives shall be responsible to any Lender for any recitals, statements, representations
or warranties herein or for the execution, effectiveness, genuineness, validity, enforceability, collectibility, or sufficiency
of this Security Agreement or the transactions contemplated hereby, or for the financial condition of Grantor. Agent shall not
be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions
of this Security Agreement or the Note or the financial condition of Grantor, or the existence or possible existence of any Event
of Default. Agent may at any time request instructions from all affected Lenders with respect to any actions or approvals which
by the terms of this Security Agreement Agent is permitted or required to take or to grant. If such instructions are promptly
requested, Agent shall be absolutely entitled to refrain from taking any action or to withhold any approval and shall not be under
any liability whatsoever to any Person for refraining from any action or withholding any approval hereunder until it shall have
received such instructions from the Lenders as shall be prescribed by this Security Agreement. Without limiting the foregoing,
no Lender shall have any right of action whatsoever against Agent as a result of Agent acting or refraining from acting under
this Security Agreement in accordance with the instructions of all affected Lenders; and, notwithstanding the instructions of
all affected Lenders, Agent shall have no obligation to take any action if it believes, in good faith, that such action is deemed
to be illegal by Agent or exposes Agent to any liability for which it has not received satisfactory indemnification in accordance
with Section 24(e).

 

    	 	15	 

     

    

 

(d)    Reliance.
Agent shall be entitled to rely, and shall be fully protected in relying, upon any written or oral notices, statements, certificates,
orders or other documents or any telephone message or other communication (including any writing, telex, fax or telegram) believed
by it in good faith to be genuine and correct and to have been signed, sent or made by the proper Person, and with respect to
all matters pertaining to this Security Agreement and its duties hereunder or thereunder. Agent shall be entitled to rely upon
the advice of legal counsel, independent accountants, and other experts selected by Agent in its sole discretion.

 

(e)    Indemnification.
Lenders will reimburse and indemnify Agent for and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including, without limitation, attorneys’ fees and expenses), advances or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against Agent in its capacity as such in any
way relating to or arising out of this Security Agreement or any action taken or omitted by Agent in its capacity as such under
this Security Agreement, in proportion to each Lender’s pro rata share, but only to the extent that any of the foregoing
is not reimbursed by Grantor; provided, however, that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements to the extent resulting
from Agent’s gross negligence or willful misconduct as determined by a final non-appealable order by a court of competent
jurisdiction. If any indemnity furnished to Agent for any purpose shall, in the opinion of Agent, be insufficient or become impaired,
Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against even if so directed by
such portion of the Lenders as shall be prescribed by this Security Agreement until such additional indemnity is furnished. The
obligations of Lenders under this Section 24(e) shall survive the payment in full of the Obligations and the termination
of this Security Agreement.

 

(f)    Jonathan
Kahn (or any successor Agent) Individually. With respect to its commitments under the Note, Jonathan Kahn (or any successor
Agent) shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities
as and to the extent set forth herein for any other Lender. The terms “Lenders,” or any similar terms shall, unless
the context clearly otherwise indicates, include Jonathan Kahn (or any successor Agent) in its individual capacity as a Lender.
Jonathan Kahn (or any successor Agent), either directly or through strategic affiliations, may lend money to, acquire equity or
other ownership interests in, provide advisory services to and generally engage in any kind of banking, trust or other business
with Grantor as if it were not acting as Agent pursuant hereto and without any duty to account therefor to Lenders. Jonathan Kahn
(or any successor Agent), either directly or through strategic affiliations, may accept fees and other consideration from Grantor
for services in connection with this Security Agreement or otherwise without having to account for the same to Lenders.

 

    	 	16	 

     

    

 

(g)    Successor
Agent.

 

(i)    Resignation.
Agent may resign from the performance of all its agency functions and duties hereunder at any time by giving at least thirty (30) Business
Days’ prior written notice to Grantor and Lenders. Such resignation shall take effect upon the acceptance by a successor
Agent of appointment pursuant to clause (ii) below or as otherwise provided in clause (ii) below.

 

(ii)    Appointment
of Successor. Upon any such notice of resignation pursuant to clause (i) above, Lenders shall appoint a successor Agent
which, unless an Event of Default has occurred and is continuing, shall be subject to Grantor’s approval (which shall not
be unreasonably withheld or delayed). If a successor Agent shall not have been so appointed within the thirty (30) Business
Day period referred to in clause (i) above, the retiring Agent, upon notice to Grantor, shall then appoint a successor Agent
which, unless an Event of Default has occurred and is continuing shall be reasonably acceptable to Grantor (such consent not to
be unreasonably withheld) who shall serve as Agent until such time, if any, as Lenders appoint a successor Agent as provided above.

 

(iii)    Successor
Agent. Upon the acceptance of any appointment as Agent under this Security Agreement by a successor Agent, such successor
Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and
the retiring Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent’s resignation
as Agent, the provisions of this Section 24 shall continue to inure to its benefit as to any actions taken or omitted
to be taken by it in its capacity as Agent.

 

(h)    Collateral
Matters.

 

(i)    Release
of Collateral. Lenders hereby irrevocably authorize Agent, at its option and in its discretion, to release any lien granted
to or held by Agent upon any Collateral (A) upon the indefeasible and final payment in full of the Obligations, or (B) constituting
property being sold or disposed of if Grantor certifies to Agent that the sale or disposition is made in compliance (including
pursuant to any waiver, consent or amendment hereunder) with the provisions of this Security Agreement (and Agent may, but shall
not be required to, rely in good faith conclusively on any such certificate, without further inquiry).

 

    	 	17	 

     

    

  

(ii)    Confirmation
of Authority; Execution of Releases. Without in any manner limiting Agent’s authority to act without any specific or
further authorization or consent by Lenders (as set forth in Section 24(h)(i)), each Lender agrees to confirm in writing,
upon request by Agent or Grantor, the authority to release any Collateral conferred upon Agent under clauses (A) and (B)
of Section 24(h)(i). Upon receipt by Agent of any required confirmation from the Lenders of its authority to release
any particular item or types of Collateral, and upon at least ten (10) Business Days’ prior written request by Grantor,
Agent shall (and is hereby irrevocably authorized by Lenders to) execute such documents as may be necessary to evidence the release
of the liens granted to Agent upon such Collateral; provided, however, that (A) Agent shall not be required
to execute any such document on terms which, in Agent’s opinion, would expose Agent to liability or create any obligation
or entail any consequence other than the release of such liens without recourse or warranty, and (B) such release shall not
in any manner discharge, affect or impair the Obligations or any liens upon (or obligations of Grantor, in respect of), all interests
retained by Grantor, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral.

 

(iii)   Absence
of Duty. Agent shall have no obligation whatsoever to any Lender or any other Person to assure that the property covered by
this Security Agreement exists or is owned by Grantor or any other Loan Party or is cared for, protected or insured or has been
encumbered or that the liens granted to Agent have been properly or sufficiently or lawfully created, perfected, protected or
enforced or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care,
disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Agent in
this Section 24(h), it being understood and agreed that in respect of the property covered by this Security Agreement or
any act, omission or event related thereto, Agent may act in any manner it may deem appropriate, in its discretion, given Agent’s
own interest in property covered by this Security Agreement as one of the Lenders and that Agent shall have no duty or liability
whatsoever to any of the other Lenders, provided that Agent shall exercise the same care which it would in dealing with
loans for its own account.

 

(iv)   Agency
for Perfection. Agent and each Lender hereby appoint each other Lender as agent for the purpose of perfecting Agent’s
security interest in assets which, in accordance with the Code in any applicable jurisdiction, can be perfected by possession
or control. Should any Lender (other than Agent) obtain possession or control of any such assets, such Lender shall notify Agent
thereof, and, promptly upon Agent’s request therefor, shall deliver such assets to Agent or in accordance with Agent’s
instructions or transfer control to Agent in accordance with Agent’s instructions. Each Lender agrees that it will not have
any right individually to enforce or seek to enforce this Security Agreement or to realize upon any collateral security for the
Loans unless instructed to do so by Agent in writing, it being understood and agreed that such rights and remedies may be exercised
only by Agent.

 

(i)    Notice
of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default except with respect
to defaults in the payment of principal, interest and fees required to be paid to Agent for the account of Lenders, unless Agent
shall have received written notice from a Lender or Grantor referring to this Security Agreement, describing such Event of Default
and stating that such notice is a “notice of default”. Agent will use reasonable efforts to notify each Lender of
its receipt of any such notice, unless such notice is with respect to defaults in the payment of principal, interest and fees,
in which case Agent will notify each Lender of its receipt of such notice. Agent shall take such action with respect to such Event
of Default as may be requested by the Lenders in accordance with Section 7. Unless and until Agent has received any
such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to
such Event of Default as it shall deem advisable or in the best interests of Lenders.

 

(j)    Lender
Actions Against Collateral. Each Lender agrees that it will not take any enforcement action, nor institute any actions or
proceedings, with respect to the Loans, against Grantor hereunder or against any Collateral (including the exercise of any right
of set-off) without the consent of the Agent or all Lenders. All such enforcement actions and proceedings shall be (i) taken
in concert and (ii) at the direction of or with the consent of Agent or all Lenders. With respect to any action by Agent
to enforce the rights and remedies of Agent and the Lenders under this Security Agreement, each Lender hereby consents to the
jurisdiction of the court in which such action is maintained.

 

[Signature
Page Follows]

 

    	 	18	 

     

    

 

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

 

	 	AGRITECH WORLDWIDE, INC.,

                                                                                a Nevada corporation, as Grantor

	 	 	 
	 	By:	/s/
Jonathan Kahn
	 	Name: 	Jonathan
Kahn
	 	Title:	Chief
Executive Officer
	 	 
	 	Address:
	 	1011
    Campus Drive
	 	Mundelein,
    Illinois 60060
	 	Attention:
    Jonathan Kahn
	 	Facsimile
    No.: [            ]

 

[Signature
Page to Security Agreement]

 

    	 	19	 

     

    

 

	 	JONATHAN KAHN,

                                                                                as Agent

	 	 	 
	 	By:	/s/
Jonathan Kahn
	 	Name: 	Jonathan
Kahn
	 	Title:	 

	 	 	 
	 	 
	 	 
	 	Attention:	 
	 	Telecopy:	 

 

[Signature
Page to Security Agreement]

 

    	 	20	 

     

    

 

EXHIBIT
A 

 

POWER
OF ATTORNEY 

 

This
Power of Attorney is executed and delivered by                     ,
a                  corporation (“Grantor”)
to [            ] (hereinafter referred to as “Attorney”),
as Agent for the benefit of Agent and Lenders, under a Note and a Security Agreement, both dated as of the date hereof, and other
related documents (the “Loan Documents”). No person to whom this Power of Attorney is presented, as authority for
Attorney to take any action or actions contemplated hereby, shall be required to inquire into or seek confirmation from Grantor
as to the authority of Attorney to take any action described below, or as to the existence of or fulfillment of any condition
to this Power of Attorney, which is intended to grant to Attorney unconditionally the authority to take and perform the actions
contemplated herein, and Grantor irrevocable waives any right to commence any suit or action, in law or equity, against any person
or entity which acts in reliance upon or acknowledges the authority granted under this Power of Attorney. The power of attorney
granted hereby is coupled with an interest, and may not be revoked or canceled by Grantor without Attorney’s written consent.

 

Grantor
hereby irrevocably constitutes and appoints Attorney (and all officers, employees or agents designated by Attorney), with full
power of substitution, as Grantor’s true and lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of Grantor and in the name of Grantor or in its own name, from time to time in Attorney’s discretion, to take
any and all appropriate action and to execute and deliver any and all documents and instruments which may be necessary to accomplish
the purposes of the Loan Documents and, without limiting the generality of the foregoing, Grantor hereby grants to Attorney the
power and right, on behalf of Grantor, without notice to or assent by Grantor, and subject to the terms of the Security Agreement
at any time, to do the following: (a) change the mailing address of Grantor, open a post office box on behalf of Grantor,
open mail for Grantor, and ask, demand, collect, give acquittances and receipts for, take possession of, endorse any invoices,
freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications,
and notices in connection with any property of Grantor; (b) effect any repairs to any asset of Grantor, or continue to obtain
any insurance and pay all or any part of the premiums therefor and costs thereof, and make, settle and adjust all claims under
such policies of insurance, and make all determinations and decisions with respect to such policies; (c) pay or discharge
any taxes, liens, security interests, or other encumbrances levied or placed on or threatened against Grantor or its property;
(d) defend any suit, action or proceeding brought against Grantor if Grantor does not defend such suit, action or proceeding
or if Attorney reasonably believes that Grantor is not pursuing such defense in a manner that will maximize the recovery to Attorney,
and settle, compromise or adjust any suit, action, or proceeding described above and, in connection therewith, give such discharges
or releases as Attorney may deem reasonably appropriate; (e) file or prosecute any claim, litigation, suit or proceeding
in any court of competent jurisdiction or before any arbitrator, or take any other action otherwise deemed appropriate by Attorney
for the purpose of collecting any and all such moneys due to Grantor whenever payable and to enforce any other right in respect
of Grantor’s property; (f) cause the certified public accountants then engaged by Grantor to prepare and deliver to
Attorney at any time and from time to time, promptly upon Attorney’s request, the following reports: (1) a reconciliation
of all accounts; (2) an aging of all accounts, (3) trial balances, (4) test verifications of such accounts as Attorney
may request, and (5) the results of each physical verification of inventory if any; (g) communicate in its own name
with any party to any contract with regard to the assignment of the right, title and interest of Grantor in and under the contracts
and other matters relating thereto; (h) to file such financing statements with respect to the Security Agreement, with or
without Grantor’s signature, or to file a photocopy of the Security Agreement in substitution for a financing statement,
as the Agent may deem appropriate and to execute in Grantor’s name such financing statements and amendments thereto and
continuation statements which may require Grantor’s signature; and (i) execute, in connection with sale provided for
in any Loan Document, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral
and to otherwise direct such sale or resale, all as though Attorney were the absolute owner of the property of Grantor for all
purposes, and to do, at Attorney’s option and Grantor’s expense, at any time or from time to time, all acts and other
things that Attorney reasonably deems necessary to perfect, preserve, or realize upon Grantor’s property or assets and Attorney’s
liens thereon, all as fully and effectively as Grantor might do. Grantor hereby ratifies, to the extent permitted by law, all
that said Attorney shall lawfully do or cause to be done by virtue hereof.

 

    	 	21	 

     

    

 

IN
WITNESS WHEREOF, this Power of Attorney is executed by Grantor pursuant to the authority of its board of directors this     
day              of 20    .

 

	 	GRANTOR
	 	 	 
	 	By:	        
	 	Name: 	 
	 	Title:	 

 

 

22

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