Document:

Exhibit
10.2

 

SECURITY
AGREEMENT

 

THIS
SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”)
dated as of June 30, 2020 between Innovative Payment Solutions, Inc., a Nevada corporation, (the “Company”) and all
wholly-owned or majority-owned subsidiaries of the Company (together with each other Person who becomes a party to this Agreement
by execution of a joinder in the form of Exhibit A attached hereto, which shall include all wholly-owned or majority-owned
subsidiaries of the Company acquired after the date hereof for so long as this Agreement remains in effect, are hereinafter sometimes
referred to individually as a “Debtor” and, collectively, as the “Debtors”) and Cavalry Fund I LP, a Delaware
limited partnership, in its capacity as Collateral Agent for the benefit of itself and each of the Purchasers (as hereinafter
defined) (each, together with its respective successors and assigns, a “Secured Party,” and collectively the “Secured
Parties”).

 

 W
I T N E S S E T H:

 

WHEREAS,
the Purchasers as from time to time parties to the Purchase Agreements (as hereafter defined) (each a “Purchaser”,
and together with their successors and assigns and each other purchaser of a Note (as defined below) and their respective successors
and assigns, individually and collectively, the “Purchasers”), pursuant to which such Purchasers will purchase from
the Company certain Original Issue Discount Senior Secured notes each made by the Company and dated as of the date hereof in an
original aggregate principal amount of $600,000 (all such notes, together with any promissory notes or other securities issued
in exchange or substitution therefor or replacement thereof, and as any of the same may be amended, supplemented, restated or
modified and in effect from time to time, the “Notes”);

 

AND
WHEREAS, the Notes are being acquired by Purchasers, and Purchasers have made certain financial accommodations to the Company
pursuant to certain Purchase Agreements, dated as of the date hereof among the Company, and the Purchasers (as the same may be
amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreements”);

 

AND
WHEREAS, each Debtor will derive substantial benefit and advantage from the financial accommodations to the Company set forth
in the Purchase Agreements and the Notes, and it will be to each such Debtor’s direct interest and economic benefit to assist
the Company in procuring said financial accommodations from Purchasers;

 

AND
WHEREAS, to induce Purchasers to enter into the Purchase Agreements and purchase the Notes, each Debtor will pledge and grant
a security interest in all of its right, title and interest in and to the Collateral (as hereinafter defined) as security for
its Obligations for the benefit of the Secured Party, Purchasers and their respective successors and assigns.

 

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

 

Section
1. Definitions. Capitalized terms used herein without definition and defined in the Purchase Agreement are used herein
as defined therein. In addition, as used herein:

 

“Accounts”
means any “account,” as such term is defined in the UCC, and, in any event, shall include, without limitation, “supporting
obligations” as defined in the UCC.

 

“Chattel
Paper” means any “chattel paper,” as such term is defined in the UCC.

 

     

     

    

 

“Collateral”
shall have the meaning ascribed thereto in Section 3 hereof.

 

“Commercial
Tort Claims” means “commercial tort claims”, as such term is defined in the UCC.

 

“Contracts”
means all contracts, undertakings, or other agreements (other than rights evidenced by Chattel Paper, Documents or Instruments)
in or under which a Debtor may now or hereafter have any right, title or interest, including, without limitation, with respect
to an Account, any agreement relating to the terms of payment or the terms of performance thereof.

 

“Copyrights”
means any copyrights, rights and interests in copyrights, works protectable by copyrights, copyright registrations and copyright
applications, including, without limitation, the copyright registrations and applications listed on Schedule III attached
hereto (if any), and all renewals of any of the foregoing, all income, royalties, damages and payments now and hereafter due and/or
payable under or with respect to any of the foregoing, including, without limitation, damages and payments for past, present and
future infringements of any of the foregoing and the right to sue for past, present and future infringements of any of the foregoing. 

 

“Deposit
Accounts” means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name
of a Debtor.

 

“Documents”
means any “documents,” as such term is defined in the UCC, and shall include, without limitation, all documents of
title (as defined in the UCC), bills of lading or other receipts evidencing or representing Inventory or Equipment.

 

“Equipment”
means any “equipment,” as such term is defined in the UCC and, in any event, shall include, Motor Vehicles.

 

“Event
of Default” shall have the meaning set forth in the Notes.

 

“Excluded
Assets” means each of the following: (1) any lease, license or other agreement or any property subject to a capital lease,
purchase money security interest or similar arrangement, to the extent that a grant of a Lien thereon in favor of Secured Party
would violate or invalidate such lease, license, agreement or capital lease, purchase money security interest or similar arrangement
or create a right of termination in favor of any other party thereto (other than the Debtors), so long as such provision exists
and so long as such lease, license or agreement was not entered into in contemplation of circumventing the obligation to provide
Collateral hereunder or in violation of the Purchase Agreement, other than to the extent that any such term would be rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant
jurisdiction or any other applicable law including the bankruptcy code, or principles of equity.

 

“General
Intangibles” means any “general intangibles,” as such term is defined in the UCC, and, in any event, shall include,
without limitation, all right, title and interest in or under any Contract, models, drawings, materials and records, claims, literary
rights, goodwill, rights of performance, Copyrights, Trademarks, Patents, warranties, rights under insurance policies and rights
of indemnification.

 

“Goods”
means any “goods”, as such term is defined in the UCC, including, without limitation, fixtures and embedded Software
to the extent included in “goods” as defined in the UCC.

 

    2

     

    

 

“Governmental
Authority” means the government of the United States of America or any other nation, or any political subdivision thereof,
whether state or local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administration powers or functions of or pertaining to government over
any Debtor or any of its subsidiaries, or any of their respective properties, assets or undertakings.

 

“Instruments”
means any “instrument,” as such term is defined in the UCC, and shall include, without limitation, promissory notes,
drafts, bills of exchange, trade acceptances, letters of credit, letter of credit rights (as defined in the UCC), and Chattel
Paper.

 

“Inventory”
means any “inventory,” as such term is defined in the UCC.

 

“Investment
Property” means any “investment property”, as such term is defined in the UCC.

 

“Obligations”
means all obligations, liabilities and indebtedness of every nature of Debtors from time to time owed or owing under or in respect
of this Agreement, the Notes, and any of the other Security Documents, as the case may be, including, without limitation, the
principal amount of all debts, claims and indebtedness, accrued and unpaid interest and all fees, costs and expenses, whether
primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and/or from time to time hereafter owing, due or payable
whether before or after the filing of a bankruptcy, insolvency or similar proceeding under applicable federal, state, foreign
or other law and whether or not an allowed claim in any such proceeding.

 

“Lien”
has the meaning set forth in the Purchase Agreement.

 

“Motor
Vehicles” shall mean motor vehicles, tractors, trailers and other like property, whether or not the title thereto is governed
by a certificate of title or ownership.

 

“Patents”
means any patents, pending patents and patent applications, including, without limitation, the inventions and improvements described
and claimed therein, all patentable inventions and those patents and patent applications listed on Schedule IV attached
hereto (if any), and the reissues, divisions, continuations, renewals, extensions and continuations-in-part of any of the foregoing,
and all income, royalties, damages and payments now or hereafter due and/or payable under or with respect to any of the foregoing,
including, without limitation, damages and payments for past, present and future infringements of any of the foregoing and the
right to sue for past, present and future infringements of any of the foregoing.

 

“Permitted
Indebtedness” has the meaning set forth in the Notes.

 

“Permitted
Lien” has the meaning set forth in the Notes.

 

“Proceeds”
means “proceeds,” as such term is defined in the UCC and, in any event, includes, without limitation, (a) any and
all proceeds of any insurance, indemnity, warranty or guaranty payable with respect to any of the Collateral, (b) any and all
payments (in any form whatsoever) made or due and payable from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any person acting under
color of Governmental Authority), and (c) any and all other amounts from time to time paid or payable under, in respect of or
in connection with any of the Collateral.

 

“Representative”
means any Person acting as agent, representative or trustee on behalf of the Secured Party from time to time.

 

    3

     

    

 

“Security
Documents” means this Agreement, and any other documents securing the Liens of the Secured Party hereunder.

 

“Software”
means all “software” as such term is defined in the UCC, now owned or hereafter acquired by a Debtor, other than software
embedded in any category of Goods, including, without limitation, all computer programs and all supporting information provided
in connection with a transaction related to any program.

 

“Trademarks”
means any trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service
marks, logos, other business identifiers, prints and labels on which any of the foregoing have appeared or appear, all registrations
and recordings thereof, and all applications in connection therewith, including, without limitation, the trademarks and applications
listed in Schedule V attached hereto (if any) and renewals thereof, and all income, royalties, damages and payments now
or hereafter due and/or payable under or with respect to any of the foregoing, including, without limitation, damages and payments
for past, present and future infringements of any of the foregoing and the right to sue for past, present and future infringements
of any of the foregoing.

 

“Transaction
Documents” means the Purchase Agreements, the Notes, the Security Documents, and any other related agreements.

 

“UCC”
shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided, that to the extent that
the Uniform Commercial Code is used to define any term herein and such term is defined differently in different Articles or Divisions
of the Uniform Commercial Code, the definition of such term contained in Article or Division 9 shall govern.

 

Section
2. Representations, Warranties and Covenants of Debtors. Each Debtor represents and warrants to, and covenants with,
the Secured Party as follows:

 

(a) Subject
to the Permitted Liens (as defined in the Notes), such Debtor has or will have rights in and the power to transfer the Collateral
in which it purports to grant a security interest pursuant to Section 3 hereof (subject, with respect to after acquired Collateral,
to such Debtor acquiring the same) and no Lien other than Permitted Liens exists or will exist upon such Collateral at any time.

 

(b) Subject
to the Permitted Liens, this Agreement is effective to create in favor of Secured Party a valid security interest in and Lien
upon all of such Debtor’s right, title and interest in and to the Collateral, and upon (i) the filing of appropriate UCC
financing statements in the jurisdictions listed on Schedule I attached hereto, (ii) creation of each Deposit Account,
(iii) filings in the United States Patent and Trademark Office, or United States Copyright Office with respect to Collateral that
constitutes Patents and Trademarks, or Copyrights, as the case may be, (iv) the filing of the Mortgages in the jurisdictions listed
on Schedule I hereto, (v) the delivery to the Secured Party of the Collateral together with assignments in blank, (vi)
the security interest created hereby being noted on each certificate of title evidencing the ownership of any Motor Vehicle in
accordance with Section 4.1(d) hereof and (v) delivery to the Secured Party or its Representative of Instruments duly endorsed
by such Debtor or accompanied by appropriate instruments of transfer duly executed by such Debtor with respect to Instruments
not constituting Chattel Paper, such security interest will be a duly perfected second priority perfected security interest in
all of the Collateral, subordinate only to the Senior Indebtedness (as defined in the Notes) and subject to Permitted Liens. Each
Debtor shall, upon request from the Secured Party, enter into a Deposit Account Control Agreement, the form and substance of which
shall be mutually agreed upon by the parties in good faith.

 

    4

     

    

 

(c) All
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on Schedule I attached
hereto. Except as disclosed on Schedule I, none of the Collateral is in the possession of any bailee, warehousemen, processor
or consignee. Schedule I discloses such Debtor’s name as of the date hereof as it appears in official filings in
the state or province, as applicable, of its incorporation, formation or organization, the type of entity of such Debtor (including
corporation, partnership, limited partnership or limited liability company), organizational identification number issued by such
Debtor’s state of incorporation, formation or organization (or a statement that no such number has been issued), such Debtor’s
state or province, as applicable, of incorporation, formation or organization and the chief place of business, chief executive
office and the office where such Debtor keeps its books and records and the states in which such Debtor conducts its business.
Such Debtor has only one state or province, as applicable, of incorporation, formation or organization. Such Debtor does not do
business and has not done business during the past five years under any trade name or fictitious business name except as disclosed
on Schedule II attached hereto.

 

(d) No
Copyrights, Patents or Trademarks listed on Schedules III, IV and V, respectively, if any, have been adjudged invalid or
unenforceable or have been canceled, in whole or in part, or are not presently subsisting. Each of such Copyrights, Patents and
Trademarks (if any) is valid and enforceable. Subject to the Permitted Liens, such Debtor is the sole and exclusive owner of the
entire and unencumbered right, title and interest in and to each of such Copyrights, Patents and Trademarks, identified on Schedules
III, IV and V, as applicable, as being owned by such Debtor, free and clear of any liens (subject to the Permitted Lien),
charges and encumbrances, including without limitation licenses, shop rights and covenants by such Debtor not to sue third persons.
Such Debtor has adopted, used and is currently using, or has a current bona fide intention to use, all of such Trademarks and
Copyrights. Such Debtor has no notice of any suits or actions commenced or threatened with reference to the Copyrights, Patents
or Trademarks owned by it.

 

(e) Each
Debtor agrees to deliver to the Secured Party an updated Schedule I, II, III, IV and/or V within five Business Days of
any change thereto.

 

(f) All
depositary and other accounts including, without limitation, Deposit Accounts, securities accounts, brokerage accounts and other
similar accounts, maintained by each Debtor are described on Schedule VI hereto, which description includes for each such
account the name of the Debtor maintaining such account, the name, address and telephone and telecopy numbers of the financial
institution at which such account is maintained, the account number and the account officer, if any, of such account. No Debtor
shall open any new Deposit Accounts, securities accounts, brokerage accounts or other accounts unless such Debtor shall have given
Secured Party 10 Business Days’ prior written notice of its intention to open any such new accounts. Each Debtor shall deliver
to Secured Party a revised version of Schedule VI showing any changes thereto within five Business Days of any such change.
Each Debtor hereby authorizes the financial institutions at which such Debtor maintains an account to provide Secured Party with
such information with respect to such account as Secured Party from time to time reasonably may request, and each Debtor hereby
consents to such information being provided to Secured Party. In addition, all of such Debtor’s depositary, security, brokerage
and other accounts including, without limitation, Deposit Accounts shall be subject to the provisions of Section 2 hereof.

 

(g) Such
Debtor does not own any Commercial Tort Claim except for those disclosed on Schedule VII hereto (if any).

 

(h) Such
Debtor does not have any interest in real property with respect to real property except as disclosed on Schedule VIII (if
any). Each Debtor shall deliver to Secured Party a revised version of Schedule VIII showing any changes thereto within
10 Business Days of any such change. Except as otherwise agreed to by Secured Party, all such interests in real property with
respect to such real property are subject to a mortgage and deed of trust (in form and substance satisfactory to Secured Party)
in favor of Secured Party (hereinafter, a “Mortgage”).

 

    5

     

    

 

(i) Each
Debtor shall duly and properly record each interest in real property held by such Debtor, except with respect to easements,
rights of way, access agreements, surface damage agreements, surface use agreements or similar agreements that such
Debtor, using prudent customs and practices in the industry in which it operates, does not believe are of material value or material
to the operation of such Debtor’s business or, with respect to state and federal rights of way, are not capable of
being recorded as a matter of state and federal law.

 

(j) All
Equipment (including, without limitation, Motor Vehicles) owned by a Debtor and subject to a certificate of title or ownership
statute is described on Schedule IX hereto.

 

(k) All
representations, warranties and covenants of the Debtors in the Purchase Agreements, the Notes or any other documents contemplated
thereby are hereby incorporated herein by reference as though fully set forth herein.

 

Section
3. Collateral. As collateral security for the prompt payment in full when due (whether at stated maturity, by acceleration
or otherwise) of the obligations due the Secured Party under the Notes, each Debtor hereby pledges and grants to the Secured Party,
for the benefit of itself and each Purchaser, a Lien on and security interest in and to all of such Debtor’s assets, including
all right, title and interest in the following properties and assets of such Debtor, whether now owned by such Debtor or hereafter
acquired and whether now existing or hereafter coming into existence and wherever located (all being collectively referred to
herein as “Collateral”), which Lien shall be secondary to the Senior Indebtedness:

 

(a) all
Instruments, together with all payments thereon or thereunder:

 

(b) all
Accounts;

 

(c) all
Inventory;

 

(d) all
General Intangibles (including payment intangibles (as defined in the UCC) and Software);

 

(e) all
Equipment;

 

(f) all
Documents;

 

(g) all
Contracts;

 

(h) all
Goods;

 

(i) all
Investment Property, including without limitation all equity interests now owned or hereafter acquired by such Debtor;

 

(j) all
Deposit Accounts, including, without limitation, the balance from time to time in all bank accounts maintained by such Debtor;

 

(k) all
Commercial Tort Claims specified on Schedule VII;

 

(l) all
Trademarks, Patents and Copyrights;

 

(m) all
books and records pertaining to the other Collateral;

 

(n) all
Software; and

 

    6

     

    

 

(o) all
other tangible and intangible property and other assets of such Debtor, including, without limitation, all interests in real property,
Proceeds, tort claims, products, accessions, rents, profits, income, benefits, substitutions, additions and replacements of and
to any of the property of such Debtor described in the preceding clauses of this Section 3 (including, without limitation, any
proceeds of insurance thereon, insurance claims and all rights, claims and benefits against any Person relating thereto), other
rights to payments not otherwise included in the foregoing, and all books, correspondence, files, records, invoices and other
papers, including without limitation all tapes, cards, computer runs, computer programs, computer files and other papers, documents
and records in the possession or under the control of such Debtor, or any computer bureau or service company from time to time
acting for such Debtor.

 

Notwithstanding
anything to the contrary contained herein or in any Transaction Document, in no event shall the security interest granted herein
or therein attach to any Excluded Assets.

 

Section
4. Covenants; Remedies. In furtherance of the grant of the pledge and security interest pursuant to Section 3 hereof,
each Debtor hereby agrees with the Secured Party as follows (subject to the Permitted Liens) so long as the Notes are outstanding:

 

4.1 Delivery
and Other Perfection; Maintenance, etc. 

 

(a) Delivery
of Instruments, Documents, Etc. Each Debtor shall deliver and pledge to the Secured Party or its Representative any and all
Instruments, negotiable Documents, Chattel Paper and certificated securities (accompanied by stock powers executed in blank, which
stock powers may be filled in and completed at any time upon the occurrence of any Event of Default) duly endorsed and/or accompanied
by such instruments of assignment and transfer executed by such Debtor in such form and substance as the Secured Party or its
Representative may request; provided, that so long as no Event of Default shall have occurred and be continuing, each Debtor
may retain for collection in the ordinary course of business any Instruments, negotiable Documents and Chattel Paper received
by such Debtor in the ordinary course of business, and the Secured Party or its Representative shall, promptly upon request of
a Debtor, make appropriate arrangements for making any other Instruments, negotiable Documents and Chattel Paper pledged by such
Debtor available to such Debtor for purposes of presentation, collection or renewal (any such arrangement to be effected, to the
extent deemed appropriate by the Secured Party or its Representative, against a trust receipt or like document). If a Debtor retains
possession of any Chattel Paper, negotiable Documents or Instruments pursuant to the terms hereof, such Chattel Paper, negotiable
Documents 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 Cavalry Fund I LP, in its capacity as Collateral Agent for the benefit of Purchasers,
as secured party.”

 

(b) Other
Documents and Actions. Each Debtor shall give, execute, deliver, file and/or record any financing statement, registration,
notice, instrument, document, agreement, Mortgage or other papers that may be necessary or desirable (in the reasonable judgment
of the Secured Party or its Representative) to create, preserve, perfect or validate the security interest granted pursuant hereto
(or any security interest or mortgage contemplated or required hereunder, including with respect to Section 2(h) of this Agreement)
or to enable the Secured Party or its Representative to exercise and enforce the rights of the Secured Party hereunder with respect
to such pledge and security interest, provided that notices to account debtors in respect of any Accounts or Instruments
shall be subject to the provisions of clause (e) below. Notwithstanding the foregoing each Debtor hereby irrevocably authorizes
the Secured Party at any time and from time to time to file in any filing office in any jurisdiction any initial financing statements
(and other similar filings or registrations under other applicable laws and regulations pertaining to the creation, attachment,
or perfection of security interests) and amendments thereto that (a) indicate the Collateral (i) as all assets of such Debtor
or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article
9 of the UCC, 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 UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including
(i) whether such Debtor is an organization, the type of organization and any organization identification number issued to such
Debtor, 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. Each Debtor agrees to furnish any such information to the Secured Party promptly upon request. Each
Debtor also ratifies its authorization for the Secured Party to have filed in any jurisdiction any like initial financing statements
or amendments thereto if filed prior to the date hereof. In the event that any Debtor undertakes any additional indebtedness which
may directly or indirectly affect the Secured Party’s interest in the Collateral, and in the event Secured Party approves
of, or consents to said additional indebtedness, Debtor shall provide notice to Secured Party regarding any change in any material
term related to the additional indebtedness, including but not limited to an increase in the principal amount, or any amendment,
alteration, extension, renewal, waiver or modification of the payment terms thereof.

 

    7

     

    

 

(c) Books
and Records. Each Debtor (or a Company on behalf of a Debtor) shall maintain at its own cost and expense complete and accurate
books and records of the Collateral, including, without limitation, a record of all payments received and all credits granted
with respect to the Collateral and all other dealings with the Collateral. Upon the occurrence and during the continuation of
any Event of Default, each Debtor shall deliver and turn over any such books and records (or true and correct copies thereof)
to the Secured Party or its Representative at any time on demand. Each Debtor shall permit any Representative of the Secured Party,
to inspect such books and records at any time during reasonable business hours and will provide photocopies thereof at such Debtor’s
expense to the Secured Party upon request of the Secured Party.

 

(d) Motor
Vehicles. Each Debtor shall, promptly upon acquiring same, cause the Secured Party to be listed as the lienholder on each
certificate of title or ownership covering any items of Equipment, including Motor Vehicles, having a value in excess of $50,000
individually or in the aggregate for all such items of Equipment of the Debtor, or otherwise comply with the certificate of title
or ownership laws of the relevant jurisdiction issuing such certificate of title or ownership in order to properly evidence and
perfect Secured Party’s security interest in the assets represented by such certificate of title or ownership.

 

(e) Notice
to Account Debtors; Verification. (i) Upon the occurrence and during the continuance of any Event of Default (or if any rights
of set-off (other than set-offs against an Account arising under the Contract giving rise to the same Account) or contra accounts
may be asserted, upon request of the Secured Party or its Representative, each Debtor shall promptly notify (and each Debtor hereby
authorizes the Secured Party and its Representative so to notify) each account debtor in respect of any Accounts or Instruments
or other Persons obligated on the Collateral that such Collateral has been assigned to the Secured Party hereunder, and that any
payments due or to become due in respect of such Collateral are to be made directly to the Secured Party, and (ii) the Secured
Party and its Representative shall have the right at any time or times to make direct verification with the account debtors or
other Persons obligated on the Collateral of any and all of the Accounts or other such Collateral.

 

    8

     

    

 

(f) Intellectual
Property. Each Debtor represents and warrants that the Copyrights, Patents and Trademarks listed on Schedules III, IV and
V, respectively (if any), constitute all of the registered Copyrights and all of the Patents and Trademarks now owned by such
Debtor. If such Debtor shall (i) obtain rights to any new patentable inventions, any registered Copyrights or any Patents or Trademarks,
or (ii) become entitled to the benefit of any registered Copyrights or any Patents or Trademarks or any improvement on any Patent,
the provisions of this Agreement above shall automatically apply thereto and such Debtor shall give to Secured Party prompt written
notice thereof. Each Debtor hereby authorizes Secured Party to modify this Agreement by amending Schedules III, IV and V,
as applicable, to include any such registered Copyrights or any such Patents and Trademarks. Each Debtor shall have the duty (i)
to prosecute diligently any patent, trademark, or service mark applications pending as of the date hereof or hereafter, (ii) to
preserve and maintain all rights in the Copyrights, Patents and Trademarks, to the extent material to the operations of the business
of such Debtor and (iii) to ensure that the Copyrights, Patents and Trademarks are and remain enforceable, to the extent material
to the operations of the business of such Debtor. Any expenses incurred in connection with such Debtor’s obligations under
this Section 4.1(f) shall be borne by such Debtor. Except for any such items that a Debtor reasonably believes (using prudent
industry customs and practices) are no longer necessary for the on-going operations of its business, no Debtor shall abandon any
material right to file a patent, trademark or service mark application, or abandon any pending patent, trademark or service mark
application or any other Copyright, Patent or Trademark without the prior written consent of Secured Party, which consent shall
not be unreasonably withheld.

 

(g) Further
Identification of Collateral. Each Debtor will, when and as often as requested by the Secured Party or its Representative,
furnish to the Secured Party or such Representative, statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as the Secured Party or its Representative may reasonably request, all
in reasonable detail.

 

(h) Investment
Property. Each Debtor will take any and all actions required or requested by the Secured Party, from time to time, to (i)
cause the Secured Party to obtain exclusive control of any Investment Property owned by such Debtor in a manner acceptable to
the Secured Party and (ii) obtain from any issuers of Investment Property and such other Persons, for the benefit of the Secured
Party, written confirmation of the Secured Party’s control over such Investment Property. For purposes of this Section 4.1(h),
the Secured Party shall have exclusive control of Investment Property if (i) such Investment Property consists of certificated
securities and a Debtor delivers such certificated securities to the Secured Party (with appropriate endorsements if such certificated
securities are in registered form); (ii) such Investment Property consists of uncertificated securities  and either (x) a
Debtor delivers such uncertificated securities to the Secured Party or (y) the issuer thereof agrees, pursuant to documentation
in form and substance satisfactory to the Secured Party, that it will comply with instructions originated by the Secured Party
without further consent by such Debtor, and (iii) such Investment Property consists of security entitlements and either (x) the
Secured Party becomes the entitlement holder thereof or (y) the appropriate securities intermediary agrees, pursuant to the documentation
in form and substance satisfactory to the Secured Party, that it will comply with entitlement orders originated by the Secured
Party without further consent by any Debtor.

 

(i) Commercial
Tort Claims. Each Debtor shall promptly notify Secured Party of any Commercial Tort Claim acquired by it that concerns a claim
in excess of $50,000 and unless otherwise consented to by Secured Party, such Debtor shall enter into a supplement to this Agreement
granting to Secured Party a Lien on and security interest in such Commercial Tort Claim.

 

4.2 Other
Liens. Other than Permitted Liens as defined in the Notes, Debtors will not create, permit or suffer to exist, and will defend
the Collateral against and take such other action as is necessary to remove, any Lien on the Collateral except Permitted Indebtedness,
and will defend the right, title and interest of the Secured Party in and to the Collateral and in and to all Proceeds thereof
against the claims and demands of all Persons whatsoever.

 

4.3 Preservation
of Rights. Whether or not any Event of Default has occurred or is continuing, the Secured Party and its Representative may,
but shall not be required to, take any steps the Secured Party or its Representative deems necessary or appropriate to preserve
any Collateral or any rights against third parties to any of the Collateral, including obtaining insurance for the Collateral
at any time when such Debtor has failed to do so, and Debtors shall promptly pay, or reimburse the Secured Party for, all expenses
incurred in connection therewith.

 

    9

     

    

 

4.4 Formation
of Subsidiaries; Name Change; Location; Bailees.

 

(a) No
Debtor shall form or acquire any subsidiary unless (i) such Debtor pledges all of the stock or equity interests of such subsidiary
to the Secured Party pursuant to an agreement in a form agreed to by the Secured Party, (ii) such subsidiary becomes a party to
this Agreement and all other applicable Security Documents and (iii) the formation or acquisition of such subsidiary is not prohibited
by the terms of the Transaction Documents.

 

(b) No
Debtor shall (i) 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, or (ii) otherwise change its name, identity or corporate structure, in each
case, without the prior written consent of Secured Party, which consent shall not be unreasonably withheld. Each Debtor will notify
Secured Party promptly in writing prior to any such change in the proposed use by such Debtor of any tradename or fictitious business
name other than any such name set forth on Schedule II attached hereto.

 

(c) Except
for the sale of Inventory in the ordinary course of business and other sales of assets expressly permitted by the Transaction
Documents, each Debtor will keep the Collateral at the locations specified in Schedule I. Each Debtor will give Secured
Party thirty (30) day’s prior written notice of any change in such Debtor’s chief place of business or of any new
location for any of the Collateral.

 

(d) If
any Collateral is at any time in the possession or control of any warehousemen, bailee, consignee or processor, such Debtor shall,
upon the request of Secured Party or its Representative, notify such warehousemen, bailee, consignee or processor of the Lien
and security interest created hereby and shall instruct such Person to hold all such Collateral for Secured Party’s account
subject to Secured Party’s instructions.

 

(e) Each
Debtor 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 Secured Party and agrees that it will not do so without the prior
written consent of Secured Party, subject to such Debtor’s rights under Section 9-509(d)(2) to the UCC.

 

(f) No
Debtor shall enter into any Contract that restricts or prohibits the grant to Secured Party of a security interest in Accounts,
Chattel Paper, Instruments or payment intangibles or the proceeds of the foregoing.

 

4.5 Reserved.

 

4.6 Events
of Default, Etc. During the period during which an Event of Default shall have occurred and be continuing:

 

(a) each
Debtor shall, at the request of the Secured Party or its Representative, assemble the Collateral and make it available to Secured
Party or its Representative at a place or places designated by the Secured Party or its Representative which are reasonably convenient
to Secured Party or its Representative, as applicable, and such Debtor;

 

    10

     

    

 

(b) the
Secured Party or its Representative may make any reasonable compromise or settlement deemed desirable with respect to any of the
Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms of, any of the
Collateral;

 

(c) the
Secured Party shall have all of the rights and remedies with respect to the Collateral of a secured party under the UCC (whether
or not said UCC is in effect in the jurisdiction where the rights and remedies are asserted) and such additional rights and remedies
to which a secured party is entitled under the laws in effect in any jurisdiction where any rights and remedies hereunder may
be asserted, including, without limitation, the right, to the maximum extent permitted by law, to: (i) exercise all voting, consensual
and other powers of ownership pertaining to the Collateral as if the Secured Party were the sole and absolute owner thereof (and
each Debtor agrees to take all such action as may be appropriate to give effect to such right) and (ii) the appointment of a receiver
or receivers for all or any part of the Collateral or business of a Debtor, whether such receivership be incident to a proposed
sale or sales of such Collateral or otherwise and without regard to the value of the Collateral or the solvency of any person
or persons liable for the payment of the Obligations secured by such Collateral. Each Debtor hereby consents to the appointment
of such receiver or receivers, waives any and all defenses to such appointment and agrees that such appointment shall in no manner
impair, prejudice or otherwise affect the rights of Secured Party under this Agreement. Each Debtor hereby expressly waives notice
of a hearing for appointment of a receiver and the necessity for bond or an accounting by the receiver;

 

(d) the
Secured Party or its Representative in its discretion may, in the name of the Secured Party or in the name of a Debtor or otherwise,
demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any
of the Collateral, but shall be under no obligation to do so;

 

(e) the
Secured Party or its Representative may take immediate possession and occupancy of any premises owned, used or leased by a Debtor
and exercise all other rights and remedies which may be available to the Secured Party;

 

(f) the
Secured Party may, upon reasonable notice (such reasonable notice to be determined by Secured Party in its sole and absolute discretion,
which shall not be less than ten (10) days), with respect to the Collateral or any part thereof which shall then be or shall thereafter
come into the possession, custody or control of the Secured Party or its Representative, sell, lease, license, assign or otherwise
dispose of all or any part of such Collateral, at such place or places as the Secured Party deems best, and for cash or for credit
or for future delivery (without thereby assuming any credit risk), at public or private sale, without demand of performance or
notice of intention to effect any such disposition or of the time or place thereof (except such notice as is required above or
by applicable statute and cannot be waived), and the Secured Party or anyone else may be the purchaser, lessee, licensee, assignee
or recipient of any or all of the Collateral so disposed of at any public sale (or, to the extent permitted by law, at any private
sale) and thereafter hold the same absolutely, free from any claim or right of whatsoever kind, including any right or equity
of redemption (statutory or otherwise), of Debtors, any such demand, notice and right or equity being hereby expressly waived
and released. The Secured Party may, without notice or publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for the sale, and such sale may be made at any time or
place to which the sale may be so adjourned; and

 

(g) the
rights, remedies and powers conferred by this Section 4.6 are in addition to, and not in substitution for, any other rights, remedies
or powers that the Secured Party may have under any Transaction Document, at law, in equity or by or under the UCC or any other
statute or agreement. The Secured Party may proceed by way of any action, suit or other proceeding at law or in equity and no
right, remedy or power of the Secured Party will be exclusive of or dependent on any other. The Secured Party may exercise any
of its rights, remedies or powers separately or in combination and at any time.

 

The
proceeds of each collection, sale or other disposition under this Section 4.6 shall be applied in accordance with Section 4.9
hereof.

 

    11

     

    

 

4.7 Deficiency.
If the proceeds of sale, collection or other realization of or upon the Collateral are insufficient to cover the costs and expenses
of such realization and the payment in full of the Obligations, Debtors shall remain jointly and severally liable for any deficiency.

 

4.8 Private
Sale. Each Debtor recognizes that the Secured Party may be unable to effect a public sale of any or all of the Collateral
consisting of securities by reason of certain prohibitions contained in the Securities Act of 1933, as amended (the “Act”),
and applicable state securities laws, but may be compelled to resort to one or more private sales thereof to a restricted group
of purchasers who will be obliged to agree, among other things, to acquire such Collateral for their own account for investment
and not with a view to the distribution or resale thereof. Each Debtor acknowledges and agrees that any such private sale may
result in prices and other terms less favorable to the seller than if such sale were a public sale and each Debtor agrees that
it is not commercially unreasonable for Secured Party to engage in any such private sales or dispositions under such circumstances.
The Secured Party shall be under no obligation to delay a sale of any of the Collateral to permit a Debtor to register such Collateral
for public sale under the Act, or under applicable state securities laws, even if Debtors would agree to do so. The Secured Party
shall not incur any liability as a result of the sale of any such Collateral, or any part thereof, at any private sale provided
for in this Agreement conducted in a commercially reasonable manner, and so long as Secured Party conducts such sale in a commercially
reasonable manner each Debtor hereby waives any claims against the Secured Party arising by reason of the fact that the price
at which the Collateral may have been sold at such a private sale was less than the price which might have been obtained at a
public sale or was less than the aggregate amount of the Obligations, even if the Secured Party accepts the first offer received
and does not offer the Collateral to more than one offeree.

 

Each
Debtor further agrees to do or cause to be done all such other acts and things as may be necessary to make such sale or sales
of any portion or all of any such Collateral valid and binding and in compliance with any and all applicable laws, regulations,
orders, writs, injunctions, decrees or awards of any and all courts, arbitrators or governmental instrumentalities, domestic or
foreign, having jurisdiction over any such sale or sales, all at such Debtor’s expense. Each Debtor further agrees that
a breach of any of the covenants contained in this Section 4.8 will cause irreparable injury to the Secured Party, that the Secured
Party has no adequate remedy at law in respect of such breach and, as a consequence, agrees that each and every covenant contained
in this Section 4.8 shall be specifically enforceable against Debtors, and each Debtor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants except for a defense that no Event of Default has occurred
and is continuing.

 

4.9 Application
of Proceeds. The proceeds of any collection, sale or other realization of all or any part of the Collateral, and any other
cash at the time held by the Secured Party under this Agreement, shall be applied to the Obligations on a pro-rata basis based
on investments made under the Purchase Agreement as detailed on Schedule 4.9.

 

    12

     

    

 

4.10 Attorney-in-Fact.
Each Debtor hereby irrevocably constitutes and appoints the Secured Party, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and stead of such Debtor and in the name of such Debtor
or in its own name, from time to time in the discretion of the Secured Party, for the purpose of carrying out the terms of this
Agreement, to take any and all appropriate action and to execute and deliver any and all documents and instruments which may be
necessary or desirable to perfect or protect any security interest granted hereunder, to maintain the perfection or priority of
any security interest granted hereunder, or to otherwise accomplish the purposes of this Agreement, and, without limiting the
generality of the foregoing, hereby gives the Secured Party the power and right, on behalf of such Debtor, without notice to or
assent by such Debtor (to the extent permitted by applicable law), to do the following:

 

(a) to
take any and all appropriate action and to execute and deliver any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement;

 

(b) upon
the occurrence and during the continuation of an Event of Default, to ask, demand, collect, receive and give acquittance and receipts
for any and all moneys due and to become due under any Collateral and, in the name of such Debtor or its own name or otherwise,
to take possession of and endorse and collect any checks, drafts, notes, acceptances or other Instruments for the payment of moneys
due under any Collateral and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Secured Party for the purpose of collecting any and all such moneys due under any Collateral whenever
payable and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise deemed appropriate
by the Secured Party for the purpose of collecting any and all such moneys due under any Collateral whenever payable;

 

(c) to
pay or discharge charges or liens levied or placed on or threatened against the Collateral, to effect any insurance called for
by the terms of this Agreement and to pay all or any part of the premiums therefor;

 

(d) to
direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due, and to become due
thereunder, directly to the Secured Party or as the Secured Party shall direct, and to receive payment of and receipt for any
and all moneys, claims and other amounts due, and to become due at any time, in respect of or arising out of any Collateral;

 

(e) upon
the occurrence and during the continuation of an Event of Default, to sign and indorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with
accounts and other Documents constituting or relating to the Collateral;

 

(f) upon
the occurrence and during the continuation of an Event of Default, to commence and prosecute any suits, actions or proceedings
at law or in equity in any court of competent jurisdiction to collect the Collateral or any part thereof and to enforce any other
right in respect of any Collateral;

 

(g) upon
the occurrence and during the continuation of an Event of Default, to defend any suit, action or proceeding brought against a
Debtor with respect to any Collateral;

 

(h) upon
the occurrence and during the continuation of an Event of Default, to settle, compromise or adjust any suit, action or proceeding
described above and, in connection therewith, to give such discharges or releases as the Secured Party may deem appropriate;

 

(i) to
the extent that a Debtor’s authorization given in Section 4.1(b) of this Agreement is not sufficient to file such financing
statements with respect to this Agreement, with or without such Debtor’s signature, or to file a photocopy of this Agreement
in substitution for a financing statement, as the Secured Party may deem appropriate and to execute in such Debtor’s name
such financing statements and amendments thereto and continuation statements which may require such Debtor’s signature;

 

    13

     

    

 

(j) upon
the occurrence and during the continuation of an Event of Default, generally to sell, transfer, pledge, make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely as though the Secured Party were the absolute
owners thereof for all purposes; and

 

(k) to
do, at the Secured Party’s option and at such Debtor’s expense, at any time, or from time to time, all acts and things
which the Secured Party reasonably deems necessary to protect or preserve or, upon the occurrence and during the continuation
of an Event of Default, realize upon the Collateral and the Secured Party’s lien therein, in order to effect the intent
of this Agreement, all as fully and effectively as such Debtor might do.

 

Each
Debtor hereby ratifies, to the extent permitted by law, all that such attorneys lawfully do or cause to be done by virtue hereof
provided the same is performed in a commercially reasonable manner. The power of attorney granted hereunder is a power coupled
with an interest and shall be irrevocable until the Obligations are indefeasibly paid in full in cash and this Agreement is terminated
in accordance with Section 4.12 hereof.

 

Each
Debtor also authorizes the Secured Party, at any time from and after the occurrence and during the continuation of any Event of
Default, (x) to communicate in its own name with any party to any Contract with regard to the assignment of the right, title and
interest of such Debtor in and under the Contracts hereunder and other matters relating thereto and (y) to execute, in connection
with any sale of Collateral provided for in Section 4.6 hereof, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Collateral.

 

4.11 Perfection.
Prior to or concurrently with the execution and delivery of this Agreement, each Debtor shall:

 

(a) file
such financing statements, assignments for security and other documents in such offices as may be necessary or as the Secured
Party or the Representative may request to perfect the security interests granted by Section 3 of this Agreement;

 

(b) at
Secured Party’s request, deliver to the Secured Party or its Representative the originals of all Instruments together with,
in the case of Instruments constituting promissory notes, allonges attached thereto showing such promissory notes to be payable
to the order of a blank payee;

 

(c) deliver
to the Secured Party or its Representative the originals of all Motor Vehicle titles, duly endorsed indicating the Secured Party’s
interest therein as a lienholder, together with such other documents as may be required consistent with Section 4.1(d) hereof
to perfect the security interest granted by Section 3 in all such Motor Vehicles (if any).

 

(d) If
the Debtor has not done so, the Collateral Agent may do so at any later time at the sole cost of the Debtors.

 

4.12 Termination;
Partial Release of Collateral. This Agreement and the Liens and security interests granted hereunder shall not terminate until
the full and complete performance and indefeasible satisfaction of all of the Obligations (including, without limitation, the
indefeasible payment in full in cash of all such Obligations) (i) in respect of the Transaction Documents, and (ii) with respect
to which claims have been asserted by Collateral Agent and/or Purchasers, whereupon the Secured Party shall forthwith cause to
be assigned, transferred and delivered, against receipt but without any recourse, warranty or representation whatsoever, any remaining
Collateral to or on the order of Debtors. The Secured Party shall also execute and deliver to Debtors upon such termination and
at Debtors’ expense such UCC termination statements, certificates for terminating the liens on the Motor Vehicles (if any)
and such other documentation as shall be reasonably requested by Debtors to effect the termination and release of the Liens and
security interests in favor of the Secured Party affecting the Collateral. Notwithstanding anything to the contrary in this Agreement,
upon full and complete satisfaction of the Notes Debtors obligations under this Agreement shall terminate and any Liens shall
thereupon be void.

 

    14

     

    

 

4.13 Further
Assurances. At any time and from time to time, upon the written request of the Secured Party or its Representative, and at
the sole expense of Debtors, Debtors will promptly and duly execute and deliver any and all such further instruments, documents
and agreements and take such further actions as the Secured Party or its Representative may reasonably require in order for the
Secured Party to obtain the full benefits of this Agreement and of the rights and powers herein granted in favor of the Secured
Party, including, without limitation, using Debtors’ best efforts to secure all consents and approvals necessary or appropriate
for the assignment to the Secured Party of any Collateral held by Debtors or in which a Debtor has any rights not heretofore assigned,
the filing of any financing or continuation statements under the UCC with respect to the liens and security interests granted
hereby, transferring Collateral to the Secured Party’s possession (if a security interest in such Collateral can be perfected
by possession), placing the interest of the Secured Party as lienholder on the certificate of title of any Motor Vehicle, and
obtaining waivers of liens from landlords and mortgagees. Each Debtor also hereby authorizes the Secured Party and its Representative
to file any such financing or continuation statement without the signature of such Debtor to the extent permitted by applicable
law.

 

4.14 Limitation
on Duty of Secured Party. The powers conferred on the Secured Party under this Agreement are solely to protect the Secured
Party’s interest on behalf of itself and the Purchasers in the Collateral and shall not impose any duty upon it to exercise
any such powers. The Secured Party shall be accountable only for amounts that it actually receives as a result of the exercise
of such powers and neither the Secured Party nor its Representative nor any of their respective officers, directors, employees
or agents shall be responsible to Debtors for any act or failure to act, except for gross negligence or willful misconduct. Without
limiting the foregoing, the Secured Party and any Representative shall be deemed to have exercised reasonable care in the custody
and preservation of the Collateral in their possession if such Collateral is accorded treatment substantially equivalent to that
which the relevant Secured Party or any Representative, in its individual capacity, accords its own property consisting of the
type of Collateral involved, it being understood and agreed that neither the Secured Party nor any Representative shall have any
responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above)
to preserve rights against any Person with respect to any Collateral.

 

Also
without limiting the generality of the foregoing, neither the Secured Party nor any Representative shall have any obligation or
liability under any Contract or license by reason of or arising out of this Agreement or the granting to the Secured Party of
a security interest therein or assignment thereof or the receipt by the Secured Party or any Representative of any payment relating
to any Contract or license pursuant hereto, nor shall the Secured Party or any Representative be required or obligated in any
manner to perform or fulfill any of the obligations of Debtors under or pursuant to any Contract 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 Contract or license, or to present or file any claim, 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.

 

    15

     

    

 

Section
5. Miscellaneous.

 

5.1 No
Waiver. No failure on the part of the Secured Party or any of its Representatives to exercise, and no course of dealing with
respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise by the Secured Party or any of its Representatives of any right, power or remedy hereunder preclude
any other or further exercise thereof or the exercise of any other right, power or remedy. 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.

 

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

 

5.3 Notices.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth
in, and shall be effective in accordance with the terms of, the Purchase Agreement. Debtors and Collateral Agent may change their
respective notice addresses by written notice given to each other party five days prior to the effectiveness of such change.

 

5.4 Amendments,
Etc. The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by the Debtor
sought to be charged or benefited thereby and each of the Purchasers. Any such amendment or waiver shall be binding upon the Secured
Party and the Debtor sought to be charged or benefited thereby and their respective successors and assigns.

 

5.5 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of each
of the parties hereto, provided, that no Debtor shall assign or transfer its rights hereunder without the prior written consent
of each of the Secured Parties. Any Secured Party, including the Collateral Agent in its capacity as Collateral Agent, may assign
its rights hereunder without the consent of Debtors, in which event such assignee shall be deemed to be Secured Party and/or Collateral
Agent, as applicable, hereunder with respect to such assigned rights; provided, so long as no Event of Default has occurred and
is continuing, no Secured Party shall assign any of its rights hereunder to a competitor of any Company.

 

5.6 Counterparts;
Headings. This Agreement may be authenticated in any number of counterparts, all of which taken together shall constitute
one and the same instrument and any of the parties hereto may authenticate this Agreement by signing any such counterpart. This
Agreement may be authenticated by manual signature or facsimile, .pdf or similar electronic signature, all of which shall be equally
valid. The headings in this Agreement are for convenience of reference only and shall not alter or otherwise affect the meaning
hereof.

 

5.7 Severability.
If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the
other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of
the Secured Party and its Representative in order to carry out the intentions of the parties hereto as nearly as may be possible
and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability
of such provision in any other jurisdiction.

 

    16

     

    

 

5.8 SUBMISSION
TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS. EACH DEBTOR HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK COUNTY, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT AND EACH DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE
OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL
LIMIT THE RIGHT OF SECURED PARTY TO BRING PROCEEDINGS AGAINST ANY DEBTOR IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL
PROCEEDING BY A DEBTOR AGAINST SECURED PARTY, ANY PURCHASER OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK COUNTY,
NEW YORK (AND SECURED PARTY AND PURCHASERS HEREBY SUBMIT TO THE JURISDICTION OF SUCH COURT). EACH DEBTOR HERETO HEREBY IRREVOCABLY
WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH ACTION OR PROCEEDING BY MAILING BY REGISTERED
OR CERTIFIED MAIL A COPY THEREOF TO SUCH DEBTOR AT THE ADDRESS FOR NOTICES TO IT IN ACCORDANCE WITH SECTION 5.3 OF THIS AGREEMENT
AND AGREES THAT SUCH NOTICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT OF SECURED PARTY OR ANY PURCHASER TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

 

5.9 WAIVER
OF RIGHT TO TRIAL BY JURY. EACH DEBTOR AND SECURED PARTY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION,
PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT
TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH DEBTOR AND SECURED PARTY AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL
BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT
TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION 5.9 AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS,
IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

 

5.10 Joint
and Several. The obligations, covenants and agreements of Debtors hereunder shall be the joint and several obligations, covenants
and agreements of each Debtor, whether or not specifically stated herein without preferences or distinction among them.

 

5.11 Collateral
Agent and Purchaser Indemnification.

 

(a) Each
Purchaser has pursuant to the Securities Purchase Agreements designated and appointed the Collateral Agent as the administrative
agent of such Purchaser under this Agreement and the related agreements.

 

(b) Nothing
in this Section 5.11 shall be deemed to limit or otherwise affect the rights of Secured Party or Purchasers to exercise any remedy
provided in this Agreement or any other Transaction Document.

 

    17

     

    

 

(c) If
pursuant to any related agreement Secured Party is given the discretion to allocate proceeds received by Secured Party pursuant
to the exercise of remedies under the related agreements or at law or in equity (including without limitation with respect to
any secured creditor remedies exercised against the Collateral and any other collateral security provided for under any related
agreement), Secured Party shall apply such proceeds to the then outstanding Obligations in the following order of priority (with
amounts received being applied in the numerical order set forth below until exhausted prior to the application to the next succeeding
category and each of the Purchasers or other Persons entitled to payment shall receive an amount equal to its pro rata share of
amounts available to be applied pursuant to clauses second, third and fourth below):

 

first,
to payment of fees, costs and expenses (including reasonable attorney’s fees) owing to the Secured Party;

 

second,
to payment of all accrued unpaid interest and fees (other than fees owing to Collateral Agent) on the Obligations;

 

third,
to payment of principal of the Obligations;

 

fourth,
to payment of any other amounts owing constituting Obligations; and

 

fifth,
any remainder shall be for the account of and paid to whoever may be lawfully entitled thereto.

 

5.12 No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

5.13 ENTIRE
AGREEMENT; AMENDMENT. THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, SUPERSEDES ALL OTHER PRIOR ORAL OR WRITTEN
AGREEMENTS BETWEEN SECURED PARTY, THE DEBTORS, THEIR AFFILIATES AND PERSONS ACTING ON THEIR BEHALF WITH RESPECT TO THE MATTERS
DISCUSSED HEREIN, AND THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS AND THE OTHER INSTRUMENTS REFERENCED HEREIN
AND THEREIN, CONTAIN THE ENTIRE UNDERSTANDING OF THE PARTIES WITH RESPECT TO THE MATTERS COVERED HEREIN AND THEREIN AND, EXCEPT
AS SPECIFICALLY SET FORTH HEREIN OR THEREIN, NEITHER THE SECURED PARTY NOR ANY DEBTOR MAKES ANY REPRESENTATION, WARRANTY, COVENANT
OR UNDERTAKING WITH RESPECT TO SUCH MATTERS. AS OF THE DATE OF THIS AGREEMENT, THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES
WITH RESPECT TO THE MATTERS DISCUSSED HEREIN. NO PROVISION OF THIS AGREEMENT MAY BE AMENDED, MODIFIED OR SUPPLEMENTED OTHER THAN
BY AN INSTRUMENT IN WRITING SIGNED BY THE DEBTORS AND THE SECURED PARTY.

 

 

 

-
Remainder of Page Intentionally Left Blank; Signature Page Follows -

    18

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed and delivered as of the day and year
first above written.

 

DEBTOR:

 

innovative
payment solutions, Inc.

 

	By:	/s/ William Corbett	 
	 	Name:	William Corbett	 
	 	Title:	Chief Executive Officer	 

 

 

 

    19

     

    

 

	 	COLLATERAL AGENT:
	 	 
	 	cavalry fund i lp
	 	 
	 	By:	/s/ Thomas P. Walsh
	 	 	Name:	Thomas P. Walsh
	 	 	Title:	Manager
	 	 
	 	Notice Address:
	 	 
	 	61 Kinderkamack Road
	 	Woodcliff Lake, NJ 07677

 

 

 

    20

     

    

 

EXHIBIT
A

Form
of Joinder

Joinder
to Security Agreement

 

The
undersigned, ______________________, hereby joins in the execution of that certain Security Agreement dated as of June 30, 2020
(as amended, restated, supplemented or otherwise modified from time to time, the “Security Agreement”) by Innovative
Payment Solutions, Inc., a Nevada corporation, all wholly-owned or majority-owned subsidiaries thereof, and each other Person
that becomes a Debtor or a Purchaser thereunder after the date thereof and hereof and pursuant to the terms thereof, to and in
favor of Cavalry Fund I LP, a Delaware limited partnership, in its capacity as Collateral Agent for Purchasers. By executing this
Joinder, the undersigned hereby agrees that it is a Debtor thereunder and agrees to be bound by all of the terms and provisions
of the Security Agreement. The undersigned represents and warrants that the representations and warranties set forth in the Security
Agreement are, with respect to the undersigned, true and correct as of the date hereof.

 

The
undersigned represents and warrants to Secured Party that:

 

(a) all
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on Schedule I and such
Debtor conducts business in the jurisdiction set forth on Schedule I;

 

(b) except
as disclosed on Schedule I, none of such Collateral is in the possession of any bailee, warehousemen, processor or consignee;

 

(c) the
chief place of business, chief executive office and the office where such Debtor keeps its books and records are located at the
place specified on Schedule I;

 

(d) such
Debtor (including any Person acquired by such Debtor) does not do business or has not done business during the past five years
under any tradename or fictitious business name, except as disclosed on Schedule II;

 

(e) all
Copyrights, Patents and Trademarks owned or licensed by the undersigned are listed in Schedules III, IV and V,
respectively;

 

(f) all
Deposit Accounts, securities accounts, brokerage accounts and other similar accounts maintained by such Debtor, and the financial
institutions at which such accounts are maintained, are listed on Schedule VI;

 

(g) all
Commercial Tort Claims of such Debtor are listed on Schedule VII;

 

(h) all
interests in real property and mining rights held by such Debtor are listed on Schedule VIII;

 

(i) all
Equipment (including Motor Vehicles) owned by such debtor are listed on Schedule IX.

 

________________,
a ________

 By:

 

Title:

FEIN:
______________

 

 

21Exhibit
10.3

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of June 30, 2020 between Innovative
Payment Solutions, Inc. a Nevada corporation (the “Company”) and each of the several purchasers as listed in
Exhibit A of the Purchase Agreement (each such purchaser, a “Purchaser” and, collectively, the “Purchasers”).

 

WHEREAS,
the Company and the Purchasers are parties to that certain Securities Purchase Agreement, dated as of the date of this Agreement
(the “Purchase Agreement”), pursuant to which the Purchasers are purchasing shares of Notes and Warrants of
the Company; and

 

WHEREAS,
in connection with the consummation of the transactions contemplated by the Purchase Agreement, and pursuant to the terms of the
Purchase Agreement, the parties desire to enter into this Agreement in order to grant certain registration rights to the Purchasers
as set forth below.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as
follows:

 

1. Defined
Terms. As used in this Agreement, the following terms shall have the following meanings: 

 

“Advice”
shall have the meaning set forth in Section 6(d).

 

“Agreement”
shall have the meaning set forth in the Preamble.

 

“CDI
612.09” means Section 612.09 of the Commission’s Compliance and Disclosure Interpretations.

 

“Closing”
means the closing of the purchase and sale of the Notes and Warrants pursuant to the Purchase Agreement.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, issuable under the Notes and Warrants, and
any other class of securities into which such securities may hereafter be reclassified or changed into.

 

“Company”
shall have the meaning set forth in the Preamble.

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder or any other Registration
Statement, 75 days following the Closing; provided, however, that in the event the Company is notified by the Commission
that one or more of the Registration Statements will not be reviewed or is no longer subject to further review and comments, the
Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is
so notified if such date precedes the date otherwise required above.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Event”
shall have the meaning set forth in Section 2(b).

 

“Event
Date” shall have the meaning set forth in Section 2(b).

 

     

     

    

 

“Exchange
Act” means the Securities Exchange Act of 1934.

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, 60 days following the Closing, and
with respect to any additional Registration Statements which may be required pursuant to Section 2, the earliest practical date
on which the Company is permitted by SEC Guidance to file such additional Registration Statements related to the Registrable Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Notes”
means the Original Issue Discount Senior Secured Convertible Promissory Notes issued to the Purchaser, under the Purchase Agreement.

 

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, governmental authority, unincorporated
organization, trust, association or other entity.

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

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

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

“Purchasers”
shall have the meaning set forth in the Preamble.

 

“Purchase
Agreement” shall have the meaning set forth in the Recitals.

 

“Registrable
Securities” means (a) all of the shares of Common Stock issuable under the Notes and Warrants issued pursuant to the
Purchase Agreement and (b) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing.

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional
registration statements contemplated by Section 3(b), including (in each case) the Prospectus, amendments and supplements to any
such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

    2

     

    

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance (including CDI 612.09), comments, requirements or
requests of the Commission staff and (ii) the Securities Act.

 

“Securities
Act” means the Securities Act of 1933.

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“Trading
Day” means a day on which the New York Stock Exchange is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange or the OTC Markets (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Purchase Agreement, all schedules and exhibits thereto and hereto, and the Warrant
Agreement, the Security Agreement and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

“Transfer
Agent” means Nevada Agency & Transfer Company, the transfer agent of the Company, with a mailing address of 50 West
Liberty Street, Suite 880, Reno, Nevada 89501, and a facsimile number of ____________, and any successor transfer agent of the
Company.

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered to the Purchasers in accordance with the Purchase Agreement.

 

    3

     

    

 

2.
Shelf Registration.

 

(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the
resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering
to be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-1 and shall
contain a description of the Holders planned distribution (unless otherwise directed by at least an [85]% majority in interest
of the Holders) substantially in the form of “Plan of Distribution” attached hereto as Annex A. The
Company shall respond to any comments from the staff of the Commission within 7 days of the receipt of such comments. In the event
the amount of Registrable Securities which may be included in the Registration Statement is limited due to SEC Guidance (provided
that, the Company shall use diligent efforts to advocate with the Commission for the registration of all of the Registrable Securities
in accordance with the SEC Guidance, including without limitation, the CDI 612.09) the Company shall use its best efforts to register
such maximum portion of the Registrable Securities as permitted by SEC Guidance. Subject to the terms of this Agreement, the Company
shall use its best efforts to cause a Registration Statement to be declared effective under the Securities Act as promptly as
possible after the filing thereof, but in any event prior to the applicable Effectiveness Date, and shall use its best efforts
to keep such Registration Statement continuously effective under the Securities Act until all Registrable Securities covered by
such Registration Statement have been sold, or may be sold pursuant to Rule 144 without the volume or other limitations of such
rule, or not required to be registered in reliance upon the exemption in Section 4(a)(1) or 4(a)(7) under the Securities Act,
in either case as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and
acceptable to the Transfer Agent and the affected Holders (the “Effectiveness Period”). Provided, however,
during any period of time that the Company's financial statements contained in a prospectus do not meet the requirements of Securities
Act Section 10(a)(3) and the remaining period until the date its Form 10-K is required to be filed (excluding any extended period
of time permitted by rule of the SEC) does not exceed 60 days, the Company shall be excused from amending or supplementing its
prospectus for the remaining period until the date its Form 10-K is required to be filed (including any extended period of time
permitted by rule of the SEC). The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m.
New York City time on a Trading Day. The Company shall immediately notify the Holders via facsimile or by e-mail of the effectiveness
of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission,
which shall be the date requested for effectiveness of such Registration Statement. The Company shall file a final Prospectus
with the Commission as required by Rule 424. Notwithstanding any other provision of this Agreement, if any SEC Guidance sets forth
a limitation on the number of Registrable Securities permitted to be registered on a particular Registration Statement (and notwithstanding
that the Company used diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable
Securities), unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities
to be registered on such Registration Statement will be reduced on a pro rata basis based on the total number of unregistered
Registrable Securities purchased by the Purchasers pursuant to the Purchase Agreement with the Warrant Shares being cutback prior
to any Conversion Shares. In the event of a cutback hereunder, the Company shall give the Holder at least five Trading Days prior
written notice along with the calculations as to such Holder’s allotment.

 

(b)
If a Registration Statement registering for resale all of the Registrable Securities (i) is not declared effective by the Commission
by the Effectiveness Date of the Initial Registration Statement or any other Registration Statement (unless the sole reason
for such non-registration of all or any portion of the Registrable Securities is solely as a result of SEC Guidance under Rule
415 or similar rule and CDI 612.09 which limits the number of Registrable Securities which may be included in a registration statement
with respect to the Holders), or (ii) after the effective date of a Registration Statement, such Registration Statement ceases
for any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement, or the
Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than 30
calendar days during any 12-month period (any such failure or breach being referred to as an “Event”, and the
date on which such Event occurs, being referred to as “Event Date”), then, in addition to any other rights
the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay
to each Holder an amount in cash , as partial liquidated damages and not as a penalty, equal to 1% of the purchase price paid
by such Holder pursuant to the Purchase Agreement, during which such Event continues uncured. The partial liquidated damages pursuant
to the terms hereof shall apply on a daily pro rata basis for any portion of a month prior to the cure of an Event. Provided,
however, the foregoing liquidated damages shall not accrue or be otherwise charged during any period in which the Investor
is eligible to sell the Shares on any given day under Rule 144 without the volume or other limitations of such rule, or in reliance
upon the exemption in Section 4(a)(1) under the Securities Act, or after such Investor has publicly sold its Registrable Securities.

 

    4

     

    

 

3.
Registration Procedures.

 

In
connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)
Not less than five Trading Days prior to the filing of each Registration Statement and not less than one Trading Day prior to
the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated
or deemed to be incorporated therein by reference), the Company shall (i) furnish to the Holders copies of all such documents
proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject
to the review of the Holders or counsel for the Holders, and (ii) cause its officers and directors, counsel and independent registered
public accountants to respond to such inquiries as shall be necessary to conduct a reasonable investigation within the meaning
of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements
thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good faith, provided that,
the Company is notified of such objection in writing no later than five Trading Days after the Holders have been so furnished
copies of a Registration Statement or two Trading Days after the Holders have been so furnished copies of any related Prospectus
or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed questionnaire in the form attached
to this Agreement as Annex B (a “Selling Stockholder Questionnaire”) on a date that is not less than
two Trading Days prior to the Filing Date or by the end of the fourth Trading Day following the date on which such Holder receives
draft materials in accordance with this Section.

 

(b)
__________________

 

(i)
prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities,

 

(ii)
cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this
Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424,

 

(iii)
respond to any comments received from the Commission with respect to a Registration Statement or any amendment thereto within
seven days of the receipt of such comments, and provide as promptly as reasonably possible to the Holders true and complete copies
of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company may excise any
information contained therein which would constitute material non-public information as to any Holder which has not executed a
confidentiality agreement with the Company), and

 

(iv)
comply with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities
covered by a Registration Statement during the applicable period in accordance (subject to the terms of this Agreement) with the
intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus
as so supplemented.

 

    5

     

    

 

(c)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than one Trading Day prior to such filing) and (if requested by
any such Person) confirm such notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission
notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments
in writing on such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when
the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the
Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and (vi) of
the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be
material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability
of a Registration Statement or Prospectus, provided that, any and all of such information shall remain confidential to each Holder
until such information otherwise becomes public, unless disclosure by a Holder is required by law; provided, further,
that notwithstanding each Holder’s acknowledgement to keep such information confidential, each such Holder makes no acknowledgement
that any such information is material, non-public information.

 

(d)
Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(e)
Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to
the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished
or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that any such item which
is available on the EDGAR system need not be furnished in physical form, and such number of copies of the current Prospectus as
each Holder may reasonably request.

 

(f)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 6(f).

 

    6

     

    

 

(g)
The Company shall cooperate with any broker-dealer through which a Holder proposes to resell its Registrable Securities in effecting
a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110 and 5190 and NASD Rule 2710, as requested by
any such Holder, and the Company shall pay the filing fee required by such filing within two Trading Days of request therefor.

 

(h)
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that, the Company shall
not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company
to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in
any such jurisdiction.

 

(i)
If requested by a Holder, cooperate with such Holders to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free,
to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be
in such denominations and registered in such names as any such Holder may request.

 

(j)
If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(c) above to suspend the use of
any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus.
The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.

 

(k)
Comply with all applicable rules and regulations of the Commission.

 

(l)
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares. The Company shall not be liable for any damages during any periods that the Company is unable to meet
its obligations hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish
such information within three Trading Days of the Company’s request.

 

    7

     

    

 

4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel, independent registered public accountants and transfer agent)
(A) with respect to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market
on which the Common Stock is then listed for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably
agreed to by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection
with Blue Sky qualifications or exemptions of the Registrable Securities) and (D) if not previously paid by the Company in connection
with an issuer filing, with respect to any filing that may be required to be made by any broker-dealer through which a Holder
intends to make sales of Registrable Securities pursuant to FINRA Rule 5110 and 5190 and NASD Rule 2710, so long as the broker-dealer
is receiving no more than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities), and (iii) messenger, telephone and delivery expenses,
(iv) fees and disbursements of counsel for the Company. In addition, the Company shall be responsible for all of its internal
expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation,
all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit
and the fees and expenses incurred in connection with the listing of the Registrable Securities on any Trading Market as required
hereunder. In no event shall the Company be responsible for any broker-dealer or similar commissions of any Holder or, except
to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders.

 

5. Indemnification.

 

(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, members, partners, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each
Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, members, stockholders, partners, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling
Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities,
costs (including, without limitation, reasonable attorneys’ fees and costs of investigation and preparation) and expenses
(collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement
of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company
of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with
the performance of its obligations under this Agreement, except to the extent that (i) such untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein,
or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such
Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this
purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(vi), the use by such Holder
of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or
defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d). The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated
by this Agreement of which the Company is aware.

 

    8

     

    

 

(b)
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, each
director of the Company, each officer of the Company who shall sign such Registration Statement, each underwriter, broker or other
Person acting on behalf of the holders of Registrable Securities and each Person who controls any of the foregoing Persons within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the fullest extent permitted by applicable
law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: (x) such Holder’s failure
to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue or alleged untrue statement of a material
fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein not misleading (i) to the extent, but only to the extent, that such untrue statement
or omission is contained in any information so furnished in writing by such Holder to the Company specifically for inclusion in
such Registration Statement or such Prospectus or (ii) to the extent that such information relates to such Holder’s proposed
method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for
use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus
or in any amendment or supplement thereto or (ii) in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(vi),
the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus
is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d). In no event shall
the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds (after underwriting
fees, commissions, or discounts) actually received by such Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

 

(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of one law firm reasonably satisfactory to the Indemnified Party and the payment
of all fees and expenses incurred in connection with defense thereof except as otherwise provided in this Section 5(c); provided,
that, the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially prejudiced
the Indemnifying Party.

 

An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or
(3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party,
the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more
than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed.
No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and
expenses applicable to such actions for which such Indemnified Party is judicially determined not to be entitled to indemnification
hereunder.

 

    9

     

    

 

(d)
Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient
to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable
by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified
Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among
other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party
or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by
such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if
the indemnification provided for in this Section was available to such party in accordance with its terms.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from
the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties
may have to the Indemnified Parties.

 

6.
Miscellaneous.

 

(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate compensation for any Losses incurred by reason
of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific
performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(b)
Prohibition on Filing Other Registration Statements. Neither the Company nor any of its security holders (other than the
Holders in such capacity pursuant hereto) may include securities of the Company in any Registration Statements other than the
Registrable Securities and shares issued in connection with the Equity Investment (as defined in the Purchase Agreement). The
Company shall not file any other registration statements until all Registrable Securities are registered pursuant to a Registration
Statement that is declared effective by the Commission, provided that this Section 6(b) shall not prohibit the Company from filing
amendments to registration statements filed prior to the date of this Agreement. In the event that, under SEC Guidance, there
is a limitation on the number of Registrable Securities that may be included in a Registration Statement, securities of the Company
that have been registered on an effective registration statement of the Company as of the date of this Agreement shall be registered
prior to any of the Registrable Securities. Thereafter, the Holders shall have priority over any other security holders with outstanding
registration rights. Any reduction pursuant to this Section 6(b) in the number of Registrable Securities registered shall be done
on a pro rata basis in accordance with the Holders’ investment made pursuant to the Purchase Agreement.

 

    10

     

    

 

(c)
Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities
Act as applicable to it in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

(d)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Section 3(c)(iii) through (vi), such Holder will immediately
discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company
will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.

 

(e)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and the Holders of more than 50% of the Registrable Securities including the Lead Investor.
If a Registration Statement does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance
with the previous sentence, then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata
among all Holders and each Holder shall have the right to designate which of its Registrable Securities shall be omitted from
such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect
the rights of other Holders may be given by such Holder or Holders of all of the Registrable Securities to which such waiver or
consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the first sentence of this Section 6(e).

 

(f)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

(g)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.
Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

 

(h)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall
the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Neither the Company nor any of its Subsidiaries has previously entered into any agreement granting any registration rights
with respect to any of its securities to any Person that have not been satisfied in full.

 

    11

     

    

 

(i)
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not sign the same counterpart. 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 executing (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.

 

(j)
Governing Law. All questions concerning the choice of law and venue, construction, validity, enforcement and interpretation
of this Agreement shall be determined in accordance with the provisions of the Purchase Agreement.

 

(k)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(l)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(m)
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall
not be deemed to limit or affect any of the provisions hereof.

 

(n)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not
joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in
concert with respect to such obligations or the transactions contemplated by this Agreement. Each Holder shall be entitled to
protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary
for any other Holder to be joined as an additional party in any proceeding for such purpose.

 

[Signature
Pages Follow]

  

    12

     

    

 

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

 

	 	Innovative
    Payment Solutions, Inc. 
	 	 	 
	 	By:	/s/
    William Corbett
	 	 	Name:
    William Corbett
	 	 	Title:
    Chief Executive Officer

 

[Signature
Page to Registration Rights Agreement]

 

     

     

    

 

Name
of Holder:         Cavalry Fund I LP           

 

Signature
of Authorized Signatory of Holder:         /s/ Thomas P. Walsh           

 

Name
of Authorized Signatory:         Thomas P. Walsh                           

 

Title
of Authorized Signatory:         Manager                                           

  

[SIGNATURE
PAGES CONTINUE]

  

[Signature
Page to Registration Rights Agreement]

 

     

     

    

 

Annex
A

 

Plan
of Distribution

 

Each
Selling Stockholder (the “Selling Stockholders”) of the Common Stock and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares of Common Stock on the OTC Markets or any other
stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed
or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling shares:

 

		●	ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;

		 	 

		●	block
trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
as principal to facilitate the transaction;

		 	 

		●	purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;

		 	 

		●	an
exchange distribution in accordance with the rules of the applicable exchange;

		 	 

		●	privately
negotiated transactions;

		 	 

		●	settlement
of short sales entered into after the effective date of the registration statement of which this prospectus is a part;

		 	 

		●	broker-dealers
may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;

		 	 

		●	through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

		 	 

		●	a
combination of any such methods of sale; or

		 	 

		●	any
other method permitted pursuant to applicable law.

 

The
Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended (the “Securities
Act”), if available, rather than under this prospectus.

 

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers or dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from
the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency
transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2121 or NASD Rule 2440; and in the
case of a principal transaction a markup or markdown in compliance with NASD IM-2440.

 

    A-1

     

    

 

In
connection with the sale of the Common Stock or interests therein, the Selling Stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Stock in the course
of hedging the positions they assume. The Selling Stockholders may also sell shares of the Common Stock short and deliver these
securities to close out their short positions, or loan or pledge the Common Stock to broker-dealers that in turn may sell these
securities. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

 

The
Selling Stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the Common Stock. In no event shall any broker-dealer
receive fees, commissions and markups which, in the aggregate, would exceed eight percent.

 

The
Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the shares. The Company
has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.

 

Because
Selling Stockholders may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject
to the prospectus delivery requirements of the Securities Act including Rule 172 thereunder. In addition, any securities covered
by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than
under this prospectus. There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale
shares by the Selling Stockholders.

 

The
shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws.
In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.

 

Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the shares may not simultaneously
engage in market making activities with respect to the Common Stock for the applicable restricted period, as defined in Regulation
M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases
and sales of shares of the Common Stock by the Selling Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser
at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

  

    A-2

     

    

 

Annex
B

 

Selling
Stockholder Notice and Questionnaire

 

The
undersigned beneficial owner of Common Stock (the “Registrable Securities”) of General Innovative Payment Solutions,
Inc. a Nevada corporation (the “Company”), understands that the Company has filed or intends to file with the
Securities and Exchange Commission (the “Commission”) a registration statement (the “Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration
Rights Agreement”) to which this document is annexed. A copy of the Registration Rights Agreement is available from
the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings
ascribed thereto in the Registration Rights Agreement.

 

Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include
the Registrable Securities owned by it in the Registration Statement.

  

    B-1

     

    

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

	1.	Name.

 

		(a)	Full
Legal Name of Selling Stockholder
	 	 	 

  

		(b)	Full
Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:
	 	 	 

 

		(c)	Full
Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to
vote or dispose of the securities covered by this Questionnaire):
	 	 	 
	 	 	 

 

	2.	Address for Notices to Selling Stockholder:

 

	 	 
	 	 
	 	 

	Telephone:	 

	Fax:	 

	Contact
    Person:	 

 

	3.	Broker-Dealer Status:

 

		(a)	Are
you a broker-dealer?

 

Yes
☐                  No ☐

 

		(b)	If
“yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services
to the Company?

 

Yes
☐                  No ☐

 

		Note:	If
“no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter in
the Registration Statement.

 

		(c)	Are
you an affiliate of a broker-dealer?

 

Yes
☐                  No ☐

 

		(d)	If
you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course of
business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings,
directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes
☐                  No ☐

 

		Note:	If
“no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter in
the Registration Statement.

 

    B-2

     

    

 

	4.	Beneficial Ownership of Securities of the Company
Owned by the Selling Stockholder.

 

Except
as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the securities issuable pursuant to the Purchase Agreement.

 

		(a)	Type
and Amount of other securities beneficially owned by the Selling Stockholder:
	 	 	 
	 	 	 

 

	5.	Relationships with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past three years.

 

State
any exceptions here:

 

 

 

The
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Registration Statement remains effective.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through
5 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements
thereto. The undersigned understands that such information will be relied upon by the Company in connection with the preparation
or amendment of the Registration Statement and the related prospectus.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	Date:	 	 	Beneficial
    Owner: 	 
	 	 	 	 	 	 	 
	 	 	 	By:	 	 	 
	 	 	 	 	Name:	 	
	 	 	 	 	Title:	 	

  

PLEASE
EMAIL A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

    B-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}]]