Document:

AMENDMENT NUMBER FIVE TO THE

EMPLOYMENT AGREEMENT

 

This AMENDMENT NUMBER FIVE TO THE EMPLOYMENT
AGREEMENT (“Amendment”) is made and entered into this 17th day of September, 2012 by and
between SOUTHERN COMMUNITY BANK AND TRUST (the “Bank”) and James C. Monroe (the “Executive”).
The effectiveness of this Amendment is subject to the consummation (the “Closing”) of the transactions
contemplated by the Agreement and Plan of Merger by and among Southern Community Financial Corporation (the “Company”),
Capital Bank Financial Corp. (the “Purchaser”) and Winston 23 Corporation (“Merger
Sub”), dated March 26, 2012 (the “Merger Agreement”), and if the Closing does not occur
because the Merger Agreement is terminated, this Amendment shall not become effective and will be of no force or effect.

 

WHEREAS, the Executive is currently
employed with the Bank under an Employment Agreement dated April 16, 2007, as amended (the “Employment Agreement”),
pursuant to which he currently serves as Treasurer;

 

WHEREAS, the amendment of the Employment
Agreement is required in order to comply with the requirements of Part 359 of the Regulations of the Federal Deposit Insurance
Corporation [12 CFR 359], as interpreted by the Federal Deposit Insurance Corporation;

 

WHEREAS, Paragraph 12 of the Employment
Agreement provides that the Employment Agreement may be modified by the mutual written consent of the Bank and the Executive; and

 

WHEREAS, the parties to the Employment
Agreement desire to amend the Employment Agreement as provided in this Amendment.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth below and other good and valuable consideration, including the payment of the
Merger Consideration (as defined in the Merger Agreement) in connection with the Closing with respect to shares of Company common
stock, stock options and restricted stock held by the Executive, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree that the Employment Agreement shall be amended as follows:

 

		1.	1.Paragraph 10(c) is hereby amended to read as
follows:

 

“In
the event that the Officer remains employed by the Bank through the earlier of (i) the 60th day following the data
conversion date (as determined by the Purchaser) and (ii) the date that is six months immediately following the Closing Date (the
“Retention Date”), the Officer shall be entitled to a payment equal to $178,671 (plus any interest that accrues at
a rate equal to the annual mid-term applicable federal rate provided for in Section 7872(f)(2)(A) of the Code for the month during
which the Closing Date occurs, with such interest to accrue from the date that is six months following the Closing Date through
the date that a payment is made to the Officer) (the “Full Change in Control Payment”) to be paid in accordance with
Paragraph 10(e); provided, however, that if the Officer’s employment is terminated by the Bank without Cause (as defined
in Paragraph 8 of this Agreement) prior to the Retention Date, he will be eligible to receive the Full Change in Control Payment
to be paid in accordance with Paragraph 10(e). In the event that the Officer resigns for any reason (other than the reasons set
forth in the last sentence of this Paragraph 10(c)) prior to the Retention Date, then the Officer will be eligible to receive
a payment equal to $99,900 (the “Partial Change in Control Payment” and each of the Partial Change in Control Payment
and the Full Change in Control Payment, as applicable, a “Change in Control Payment”) in lieu of the Full Change in
Control Payment, to be paid in accordance with Paragraph 10(e). For the avoidance of doubt, in the event that the Officer’s
employment is terminated by the Bank for Cause at any time, whether prior to, on or after the Retention Date, he will not be entitled
to any Change in Control Payment. Notwithstanding anything to the contrary set forth in this Paragraph 10(c), if, prior to the
Retention Date, the Officer resigns his employment due to his being transferred to a work location which is more than 30 miles
from his current work location (other than any ordinary business related travel) or if his duties and responsibilities are significantly
and materially adversely changed and are no longer reasonably related to his work experience with the Company prior to the Closing
Date, such a resignation shall be deemed to be a termination of the Officer’s employment without Cause for the purposes
of this Section 5.”

 

    	 

    	 

    
 

 

2.    This Amendment may be executed in
counterparts, each of which shall be an original, with the same effect as if the signatures affixed thereto were upon the same
instrument.

 

3.    None of the Purchaser, the Company,
the Bank nor any of their respective affiliates shall be required to incur any additional compensation expense in connection with
this Amendment due to the application of Section 409A of the Internal Revenue Code of 1986, as amended.

 

4.    The parties to this Amendment have
read this Amendment, understand it and voluntarily accept its terms and the parties agree that there shall not be strict interpretation
against either party in connection with any review of this Amendment in which interpretation thereof is an issue. The Executive
further acknowledges that: (i) this Amendment is executed voluntarily and without any duress or undue influence on the part or
behalf of the Company, the Bank or any of their respective affiliates; (ii) this entire Amendment is written in a manner calculated
to be understood by him; (iii) he has been advised by the Bank to seek the advice of legal counsel before entering into this Amendment;
(iv) the Executive has been provided with a reasonable period of time to consider the terms and conditions of this Amendment; (v)
the Executive is fully aware of the legal and binding effect of this Amendment; and (vi) to the extent he executes this Amendment
he does so knowingly and voluntarily and only after consulting his attorney or affirmatively waiving his right to consult with
his attorney. In addition, the Executive acknowledges and agrees that he has had the assistance of counsel of his choosing in the
negotiation of this Amendment, including with respect to tax matters, or he has chosen not to have the assistance of counsel.

 

5.    This Amendment shall be governed by
and construed in accordance with the laws of the State of North Carolina.

 

6.    Except as amended hereby, the Employment
Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects by the parties to the Employment
Agreement.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, this Amendment
has been duly executed as of the day and year first set forth above.

 

 

	 	 	 	 
	 	 	 	 
	Executive	 	Southern Community Bank and Trust
	 	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ James C. Monroe	 	By	/s/ James HastingsEXHIBIT 10.1

 

	US $4,235,000	September 12, 2012
	 	New York, New York

 

SERIES D
SENIOR SECURED PROMISSORY NOTE

 

For value received, and on the terms and
subject to the conditions set forth herein, MedPro Safety Products, Inc., a corporation formed and existing under the laws of the
State of Nevada (the “Company”), HEREBY PROMISES TO PAY to Vision Opportunity Master Fund, Ltd. (the “Noteholder”),
on the Maturity Date (defined below) the principal sum of US $4,235,000 (the “Loan”), plus any unpaid interest
accrued thereon, or such lesser amount as shall be equal to the unpaid principal amount of the Loan borrowed hereunder plus such
interest. The Company hereby promises to make principal repayments and to pay interest on the dates and at the rate or rates provided
for herein.

 

This Note is one of a series of senior secured
promissory notes in the aggregate principal amount of up to $6,035,000 issued by the Company during the period commencing on the
date hereof and ending not later than October 12, 2012, which notes, together with any notes from time to time issued in replacement
thereof, whether pursuant to transfer or assignment or otherwise, are hereafter sometimes collectively referred to as the “Series
D Notes”, each of which Series D Notes is substantially in the form of this Note.

 

In connection with each drawdown of amounts
under this Note, the Noteholder will receive shares of Series D Preferred Stock of the Company, par value $0.01 per share (the
“Series D Shares”) issued hereunder.

 

1.          Certain
Terms Defined. The following terms for all purposes of this Note shall have the respective meanings specified below.

 

“Additional Financing”
has the meaning set forth in Section 2(b).

 

“Aggregate Borrowing”
means the actual cumulative amount borrowed by the Company pursuant to this Note as of any applicable date.

 

“Automation Equipment Lease”
means the equipment lease or similar financing which may be obtained by the Company in connection with equipment required to manufacture
the Company’s drug delivery product lines, which are secured solely by the equipment so leased.

 

“Available Funding” means
$4,235,000 less all amounts drawn pursuant to Section 2(a).

 

“Bonus Shares” has the
meaning set forth in Section 5(a).

 

“Budget” means the detailed
monthly budget approved by the board of directors of the Company and the Majority Noteholder(s) prior to the date hereof which
provides for a spending plan of the Company of not more than $4.235 million, in the aggregate, through September 30, 2013, the
final version of which Budget has been presented to Vision Opportunity Master Fund, Ltd. concurrently with the Closing. If the
aggregate principal amount of all Series D Notes exceeds $4.235 million, then the board of directors of the Company will approve
a revised Budget that provides for a spending plan of the Company of not more than such aggregate principal amount of all Series
D Notes.

 

“Business Day” means
any day except a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized by law to close.

 

    	1

    	 

    

 

“Change of Control” means
any transaction or series of related transactions (including without limitation any reorganization, merger, consolidation, sale
of assets or sale of stock) that will result in (i) the sale of all or substantially all of the assets of the Company, (ii) a change
in ownership of 50% or more of the Company’s then outstanding capital stock, in one or a series of transactions occurring
within a period of six (6) months, or more than 50% of the existing board of directors of the Company are replaced and the replacement
directors are not reasonably acceptable to Vision Opportunity Master Fund, Ltd., or (iii) a consolidation or merger of the Company
with or into any other entity (or other corporate reorganization) immediately after which the shareholders of the Company hold
less than fifty percent (50%) of the voting power of the surviving entity.

 

“Collateral” has the
meaning set forth in Schedule II.

 

“Collateral Agent” means
Vision Opportunity Master Fund, Ltd., in its capacity as the collateral agent.

 

“Commission Documents”
has the meaning set forth in Section 9(e).

 

“Commitment” shall equal
the principal amount of this Note.

 

“Common Stock” means
the common stock of the Company, par value $ 0.001 per share.

 

“Company” has the meaning
set forth in the introductory paragraphs.

 

“Conversion Shares” has
the meaning set forth in Section 9(v).

 

“Equity Securities” means
(i) any shares of any class of capital stock of the Company, and (ii) any debt or equity outstanding or similar instrument convertible
into or exercisable or exchangeable for, with or without consideration, any shares of any class of capital stock of the Company.

 

“Event of Default” has
the meaning set forth in Section 8.

 

“Excess Funding Capacity”
means, on any given Funding Date, (i) the cumulative amount of all permitted borrowings pursuant to this Note contemplated by the
Funding Schedule during the period prior to such Funding Date, minus (ii) the Aggregate Borrowing as of the date that is immediately
prior to such Funding Date.

 

“Exchange Act” has the
meaning set forth in Section 9(e).

 

“Form 10-K” has the meaning
set forth in Section 9(e).

 

“Form 10-Q” has the meaning
set forth in Section 9(e).

 

“Funding Date” has the
meaning set forth in Section 2(a).

 

“Funding Schedule” has
the meaning set forth in Section 2(a).

 

“GAAP” has the meaning
set forth in Section 9(e).

 

“Indebtedness” means
(a) any liabilities for borrowed money or other amounts owed (other than trade accounts payable incurred in the ordinary course
of business) and (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether
or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto).

 

“Indemnified Party” has
the meaning set forth in Section 20.

 

    	2

    	 

    

 

“Intellectual Property Rights”
has the meaning set forth in Section 9(r).

 

“Loan” has the meaning
set forth in the introductory paragraphs.

 

“Majority Noteholder(s)”
means the holders of at least 51% in principal amount of the Series D Notes then outstanding.

 

“Material Adverse Effect’
shall mean any fact, circumstance, condition, event, change, effect or occurrence that, individually or in the aggregate, has had,
or is reasonably likely to have, an adverse effect of at least $250,000 on or with respect to the financial condition, business,
assets, or results of operations of the Company and its Subsidiaries taken as a whole.

 

“Maturity Date” means
December 31, 2013, or such earlier date as may be provided in Section 7; provided that if any such date is not a Business Day,
then such date shall be the next succeeding Business Day.

 

“Note” shall mean this
Senior Secured Promissory Note as amended, from time to time, in accordance with the terms hereof.

 

“Notice” has the meaning
set forth in Section 2(a).

 

“Noteholder” has the
meaning set forth in the introductory paragraphs.

 

“Noteholder Group” means
the holders of the Series D Notes.

 

“Period” means the period
beginning on the date hereof through and including the Maturity Date.

 

“Person” means any natural
person, corporation, limited liability company, trust, joint venture, association, company, partnership, or other entity. 

 

“Rule 144” means Rule
144 promulgated by the Securities and Exchange 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 Securities and Exchange Commission having substantially the
same effect as such Rule.

 

“Securities Act” has
the meaning set forth in Section 9(u).

 

“Senior Notes” means
the MedPro Investments Senior Secured 14% Notes due 2016.

 

“Senior Notes Security Agreement”
means the Pledge and Security Agreement dated as of September 1, 2010, by MedPro Safety Products, Inc. to U.S. Bank National Association,
as trustee.

 

“Series D Notes” has
the meaning set forth in the introductory paragraphs.

 

“Series D Shares” has
the meaning set forth in the introductory paragraphs.

 

“Series D Certificate of Designation”
means the Certificate of Designation of the Series D Preferred Stock of the Company, filed with the Secretary of State of the State
of Nevada on the date hereof, as may be amended from time to time.

 

“Subsidiary” means any
corporation or other entity of which at least a majority of (i) the equity, or (ii) the securities or other ownership interest
having ordinary voting power (absolutely or contingently) for the election of directors or other persons performing similar functions,
are owned directly or indirectly by the Company and/or any of its other Subsidiaries.

 

    	3

    	 

    

 

Terms used but not defined herein that are
defined in the Uniform Commercial Code in effect in the State of New York shall have the meanings given to such terms therein.

 

2.           Loan
Drawdown; Cessation of Drawdowns.

 

(a)          During
the Period and subject to Sections 2(b) and 2(c), the Company may borrow from the Noteholder, and the Noteholder will loan to the
Company, an aggregate amount not to exceed the Commitment, which loans shall be made at such times (each, a “Funding Date”)
and are contemplated to be in such amounts as are set forth on Schedule I attached hereto (the “Funding Schedule”).
As a condition to the Noteholder making any loan hereunder, the Company shall provide to the Noteholder, at least three (3) Business
Days’ prior to each Funding Date, written notice (each, a “Notice”) of a drawdown request for an amount
of up to the sum of (i) the amount contemplated in the Funding Schedule for such Funding Date, and (ii) the amount of Excess Funding
Capacity as of such Funding Date, which Notice shall contain a statement of the Aggregate Borrowing as of immediately prior to
the applicable Funding Date and a certification that, as of the applicable Funding Date, (i) no Event of Default is or will be
in effect, (ii) the Company has complied and is in compliance as of the applicable Funding Date with all covenants set forth in
Section 10, (iii) the representations and warranties of the Company set forth in Section 9 are and will be on the applicable Funding
Date true and correct in all material respects, and (vi) any other documentation reasonably requested by the Noteholder. The form
of the Notice is attached hereto as Schedule IV. Upon the reasonable satisfaction of the Noteholder that the foregoing conditions
precedent have been satisfied (or waived by the Noteholder), the Noteholder shall lend, and the Company shall borrow, on the Funding
Date such amount as set forth in such Notice. The Company agrees that, in respect of any amounts borrowed by the Company under
the Series D Notes, the Company will make such borrowings pro rata from all holders of Series D Notes in accordance with
the relative principal amounts of such Series D Notes.

 

(b)          In
the event that during the Period the Company enters into a new equity financing (an “Additional Financing”)
permitted under the terms and conditions set forth herein (including Section 10(k)), which Additional Financing is (i) made on
terms no less favorable to the Company than those set forth in this Note, and (ii) in an aggregate amount which equals or exceeds
the sum of (A) the aggregate Available Funding under all Series D Notes at the time of the closing of such Additional Financing,
and (B) $500,000, then the Company shall have the right, at its sole discretion, to cancel all remaining borrowings under the Funding
Schedule of all (but not less than all) of the Series D Notes, which cancellation must be made by written notice to the Noteholder
not less than five (5) Business Days prior to the anticipated closing of the Additional Financing and which notice shall contain
all relevant documents and agreements entered into by the Company in connection with such Additional Financing. Any election by
the Noteholder to participate in such Additional Financing shall be made at least two (2) Business Days prior to the anticipated
closing of the Additional Financing. In the event that the Company elects to so cancel all remaining borrowings under the Financing
Schedule of all the Series D Notes, then the Noteholder shall have the right, at its sole discretion, to participate in such Additional
Financing by investing up to an amount equal to the Available Funding into the Company on the same terms and conditions as the
other investors in such Additional Financing. In the event that such Additional Financing fails to close, any cancellation by the
Company pursuant to this Section 2(b) shall be rescinded and the Company shall continue to make the remaining borrowings in accordance
with the Funding Schedule. For the avoidance of doubt, in the event of any cancellation of remaining borrowings pursuant to this
Section 2(b), the Noteholder shall be entitled to keep all Series D Shares that it has received pursuant to Section 5(a) prior
to such cancellation.

 

(c)          In
the event that during the Period the Company enters into an Additional Financing and the proceeds to the Company from such Additional
Financing equals or exceeds the sum of (X) the Available Funding, and (Y) $2.0 million, then, unless the Company has exercised
its right to cancel all remaining borrowings pursuant to Section 2(b), the Noteholder shall have the right, at its sole discretion,
to elect to reduce the Available Funding by 50% (in which event the amount of each loan contemplated in the Funding Schedule on
each Funding Date shall be reduced by 50% and the amounts of Series D Shares received by the Noteholder in connection with such
loan shall be reduced by 50%), which election must be made by written notice to the Company not more than five (5) Business Days
following the closing of such Additional Financing. The Company agrees to give the Noteholder written notice not less than five
(5) Business Days prior to the anticipated closing of any Additional Financing, which notice shall contain all relevant documents
and agreements entered into by the Company in connection with such Additional Financing.

 

    	4

    	 

    

 

3.           Maturity
of the Loan.

 

The Loan shall mature, and the principal
amount thereof shall become immediately due and payable (together with unpaid interest accrued thereon) on the Maturity Date.

 

4.           Interest
Payments.

 

The unpaid principal amount of the Loan
outstanding shall bear interest at a rate equal to 10% per annum. Notwithstanding the foregoing, upon an Event of Default, all
amounts outstanding under this Note shall bear interest on and after the date of such Event of Default at a rate equal to the lesser
of (i) the maximum interest rate permitted by applicable law and (ii) 15%. All interest accrued hereon shall be payable on the
Maturity Date. Interest shall be computed on the basis of a year of 365 days and paid for the actual number of days elapsed.

 

5.           Series
D Shares.

 

(a)          Subject
to Sections 2(b) and 2(c), on each Funding Date, in consideration of the loan made on such Funding Date and for no additional consideration,
the Company shall issue a number of Series D Shares to the Noteholder equal to the product of (i) the aggregate amount borrowed
by the Company from the Noteholder on the applicable Funding Date (including any amounts of Excess Funding Capacity so borrowed),
and (ii) 0.0225. In addition, unless this Note is canceled in accordance with Section 2(b) prior to the applicable date (in which
event no additional Bonus Shares shall be granted hereunder following such cancellation), Vision Opportunity Master Fund, Ltd.
shall have the right to receive the following number of Series D Shares on the following dates without regard as to whether the
Vision Opportunity Master Fund, Ltd. make any loans as of such date: (i) on the date hereof, 7,500 Series D Shares; (ii) on October
31, 2012, 11,250 Series D Shares; and (iii) on December 31, 2012, 11,250 Series D Shares(collectively, the “Bonus Shares”).

 

For United States federal income tax purposes,
the Noteholder and the Company agree to allocate any amounts advanced under this Note between the Note and the Series D Shares
based upon their respective fair market values at the time of the advance. The Noteholder and the Company agree to file any United
States federal, state of local income tax returns in a manner consistent with the previous sentence.

 

(b)          The
Series D Shares and/or Conversion Shares may only be transferred in compliance with state and federal securities laws. In connection
with any transfer of the Series D Shares or Conversion Shares other than pursuant to an effective registration statement, the Company
may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration
of such transferred Series D Shares or Conversion Shares under the Securities Act.

 

(c)          Certificates
evidencing the Series D Shares and the Conversion Shares will contain the following legend, until such time as they are not required
under Section 5(e):

 

    	5

    	 

    

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES IN ACCORDANCE
WITH APPLICABLE LAW.

 

(d)          Certificates
evidencing Series D Shares or Conversion Shares shall not contain any legend (including the legend set forth in Section 5(c)):
(i) following a sale or transfer of such Series D Shares or Conversion Shares pursuant to an effective registration statement,
(ii) following a sale or transfer of such shares pursuant to Rule 144 (assuming the transferee is not an Affiliate of the Company
(as defined in the Securities Act)), or (iii) while such Series D Shares or Conversion Shares are eligible for sale without volume
limitations pursuant to Rule 144. If the Noteholder shall make a sale or transfer of Series D Shares or Conversion Shares either
(x) pursuant to Rule 144 or (y) pursuant to a registration statement, and in each case shall have delivered to the Company or the
Company’s transfer agent the certificate representing Series D Shares or Conversion Shares containing a restrictive legend
which are the subject of such sale or transfer and a representation letter in customary form, then the Company shall take all such
actions as are necessary to cause the removal of such legend and return to the Noteholder (or its successor or designee) unlegended
certificates for such Series D Shares or Conversion Shares.

 

6.           Prepayments.

 

Subject to the terms and conditions of this
Section 6, the Company may prepay the Loan, upon ten (10) days prior written notice to the Noteholder, in whole or in part at any
time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest
thereon to the date of prepayment. Any such prepayments made under this Section 6 shall be in minimum increments of $100,000. For
the avoidance of doubt, any prepayments under this Section 6 shall not have any effect on the Series D Shares issued by the Company
to the Noteholder hereunder or the Company’s rights to borrow amounts under this Note in accordance with the Funding Schedule,
and no amount so prepaid shall be deemed or otherwise constitute Excess Funding Capacity or otherwise be available for borrowing
by the Company. The Company agrees that, in respect of any amounts pre-paid by the Company under the Series D Notes, the Company
will make such prepayments to all holders of Series D Notes pro rata in accordance with the relative principal amounts of
such Series D Notes.

 

7.           General
Provisions As To Payments.

 

All payments of principal and interest on
the Loan by the Company hereunder shall be made not later than 12:00 Noon (New York City time) on the date when due either by cashier’s
check, certified check or by wire transfer of immediately available funds to the Noteholder's account at a bank in the United States
specified by the Noteholder in writing to the Company without reduction by reason of any set-off or counterclaim.

 

8.           Events
of Default; Remedies.

 

(a)          Each
of the following events shall constitute an “Event of Default”:

 

(i)          the
outstanding principal amount of the Loan and/or any interest accrued thereon shall not be paid when due;

 

(ii)         subject
to Section 8(a)(iii), the Company breaches any of its covenants, agreements or other obligations hereunder (including, without
limitation, set forth in Section 10) or set forth in or otherwise applicable to the Series D Certificate of Designation and such
breach is not cured within thirty (30) days after notice from the Noteholder (if capable of being cured);

 

    	6

    	 

    

 

(iii)        the
Company breaches any of its covenants, agreements or other obligations set forth in Section 11(a) or Section 11(d);

 

(iv)        the
occurrence of an event of default under any other Series D Note;

 

(v)         any
representation or warranty of the Company made in this Note or in any Notice shall be false or incorrect when made in any material
respect;

 

(vi)        the
Company or any Subsidiary shall (A) breach any of their respective obligations under any material agreement to which the Company
or such Subsidiary, respectively, it is a party, the effect of which breach results in damages and/or losses to the Company and/or
such Subsidiary in excess of $250,000, or (B) default in the payment when due (subject to any applicable grace period), whether
by acceleration or otherwise, of any Indebtedness of the Company or any Subsidiary involving the borrowing of money or the extension
of credit in excess of $250,000, or a default shall occur in the performance or observance of any obligation or condition with
respect to such Indebtedness if the effect of such default is to accelerate the maturity of any such Indebtedness, or such default
shall continue unremedied for any applicable period of time sufficient to permit the holder or holders of such Indebtedness, or
any trustee or agent for such holders, to cause such Indebtedness to become due and payable prior to its expressed maturity;

 

(vii)       any
judgment or order for the payment of money in excess of $250,000 shall be rendered against the Company or any Subsidiary and shall
not be covered by insurance;

 

(viii)      upon
a Change of Control of the Company (other than if such Change of Control occurs solely by virtue of a sale by the Majority Noteholder(s)
and/or their respective affiliates of its or their equity of the Company (unless substantially all of the outstanding equity of
the Company is sold in such transaction));

 

(ix)         a
court shall enter a decree or order for relief in respect of the Company or any Subsidiary in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or appoint a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of the Company or any Subsidiary or for any substantial part of the property of the
Company or any Subsidiary or ordering the winding up or liquidation of the affairs of the Company or any Subsidiary, and such decree
or order shall remain unstayed and in effect for a period of sixty (60) consecutive days; or

 

(x)          the
Company or any Subsidiary shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now
or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to
the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official)
of the Company or any Subsidiary or for any substantial part of the property of the Company or any Subsidiary, or the Company or
any Subsidiary shall make any general assignment for the benefit of creditors.

 

(b)          Upon
the occurrence and during the continuance of an Event of Default, the Majority Noteholder(s) may, in their sole discretion, without
notice of its election and without demand, do any one or more of the following, all of which are authorized by the Company:

 

(i)          declare
all obligations of the Company hereunder immediately due and payable (provided that upon the occurrence of an Event of Default
described in Sections 8(a)(ix) or 8(a)(x), all such obligations shall become immediately due and payable without any action by
the Majority Noteholder(s));

 

    	7

    	 

    

 

(ii)         cease
making any loans, advancing money or extending credit to or for the benefit of Company under this Note;

 

(iii)        settle
or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that the Majority Noteholder(s)
reasonably considers advisable;

 

(iv)        make
such payments and do such acts as the Majority Noteholder(s) considers necessary or reasonable to protect its security interest
in the Collateral. The Company agrees to assemble the Collateral if the Majority Noteholder(s) so requires, and to make the Collateral
available to the Collateral Agent (on behalf of the Noteholder Group) as the Majority Noteholder(s) may designate. The Company
authorizes the Collateral Agent (on behalf of the Noteholder Group) to enter the premises where the Collateral is located, to take
and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge,
or lien which in the Collateral Agent’s determination appears to be prior or superior to its security interest and to pay
all expenses incurred in connection therewith. With respect to any of the Company’s owned premises, the Company hereby grants
the Collateral Agent (on behalf of the Noteholder Group) a license to enter into possession of such premises and to occupy the
same, without charge, in order to exercise any of the Collateral Agent’s and/or the Noteholder Group’s rights or remedies
provided herein, at law, in equity, or otherwise;

 

(v)         set
off and apply to the obligations of the Company hereunder any and all (a) balances and deposits of the Company held by the Noteholder,
or (b) indebtedness at any time owing to or for the credit or the account of the Company held by the Noteholder;

 

(vi)        ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein)
the Collateral. The Collateral Agent (on behalf of the Noteholder Group) is hereby granted a license or other right, solely pursuant
to the provisions of this Section 8(b), to use, without charge, the Company’s labels, patents, copyrights, rights of use
of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any property of a similar nature,
as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection
with the Collateral Agent’s exercise of its rights under this Section 8(b), the Company’s rights under all licenses
and all franchise agreements shall inure to the Collateral Agent’s benefit;

 

(vii)       dispose
of the Collateral by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including
the Company’s premises) as the Majority Noteholder(s) determines is commercially reasonable, and apply any proceeds to the
obligations of the Company hereunder in whatever manner or order the Majority Noteholder(s) deems appropriate;

 

(viii)      the
Collateral Agent (on behalf of the Noteholder Group) may credit bid and purchase any Collateral at any public sale; and

 

(ix)         any
deficiency that exists after disposition of the Collateral as provided above will be paid immediately by the Company and any surplus
will be paid immediately to the Company.

 

    	8

    	 

    

 

9.           Representations.

 

The Company hereby represents and warrants
to the Noteholder, as of the date hereof and as of each Funding Date, as follows:

 

(a)          The
Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada and has
the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being
conducted. The Company does not have any Subsidiaries except as set forth on Schedule III hereto. Each Subsidiary is a limited
liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and
has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now
being conducted. The Company and each such Subsidiary is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
except where the failure to so qualify would not be reasonably expected to have a Material Adverse Effect on the Company or such
Subsidiary.

 

(b)          The
Company has the requisite legal and corporate power and authority to enter into, issue and perform this Note and issue the Series
D Shares (and the underlying shares of Common Stock following any conversion of the Series D Shares) in accordance with the terms
hereof and thereof. The execution, delivery and performance of the Series D Notes by the Company and the consummation by it of
the transactions contemplated hereby or thereby have been duly and validly authorized by all necessary corporate action, and no
further consent or authorization of the Company, its board of directors or stockholders is required. When executed and delivered
by the Company, the Series D Notes shall constitute a valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor's rights
and remedies or by other equitable principles of general application.

 

(c)          The
execution, delivery and performance of the Series D Notes and the consummation by the Company of the transactions contemplated
hereby or thereby, including, without limitation, the issuance of the Series D Shares and the grant of security to the Noteholder
Group contemplated in Section 15, do not and will not (i) violate or conflict with any provision of the Company’s certificate
of incorporation or bylaws, each as amended to date, or any Subsidiary’s comparable charter documents, (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any material agreement, mortgage, deed of trust, indenture,
note, bond, license, lease agreement, instrument or obligation to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries’ respective properties or assets are bound, including, without limitation, the
Senior Notes and the agreements relating thereto, or (iii) result in a material violation of any federal, state, local or foreign
statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to
the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries are bound or
affected.

 

(d)          Neither
the Company nor any of its Subsidiaries is required to obtain any consent, authorization or order of, or make any filing or registration
with, any court, governmental agency or any regulatory or self-regulatory agency or any other person in order for it to execute,
deliver or perform any of its obligations under or contemplated by the Series D Notes in accordance with the terms hereof, except
where the failure to obtain such consent, authorization or order or make such filing would not be reasonably expected to have a
Material Adverse Effect on the Company, its Subsidiaries or the transactions contemplated hereby or thereby. All consents, authorizations,
orders, filings and registrations which each of the Company and any of its Subsidiaries is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof.

 

    	9

    	 

    

 

(e)          The
common stock of the Company is registered pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) and the Company has timely filed all reports, schedules, forms, statements and other documents
required to be filed by it with the Securities and Exchange Commission pursuant to the reporting requirements of the Exchange Act
(all such filings, including filings incorporated by reference therein, being referred to herein as the “Commission Documents”).
At the times of their respective filings, the Company’s Form 10-K for the fiscal year ended December 31, 2011 (the “Form
10-K”), and each subsequently filed Form 10-Q of the Company (collectively, the “Form 10-Q”) complied
in all material respects with the requirements of the Exchange Act and the rules and regulations of the Securities and Exchange
Commission promulgated thereunder and other federal, state and local laws, rules and regulations applicable to such documents,
and the Form 10-K and each Form 10-Q did not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading. The consolidated financial statements of the Company included in the Commission Documents complied in all
material respects with applicable accounting requirements and the published rules and regulations of the Securities and Exchange
Commission or other applicable rules and regulations with respect thereto. Such consolidated financial statements have been prepared
in accordance with generally accepted accounting principles (“GAAP”) applied on a consistent basis during the
periods involved (except (i) as may be otherwise indicated in such consolidated financial statements or the notes thereto or (ii)
in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements),
and fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the dates
thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments).

 

(f)          Except
as set forth in the Commission Documents, since December 31, 2011, the Company has not experienced or suffered any Material Adverse
Effect and the Company is not aware of any fact or circumstance that is reasonably likely to have a Material Adverse Effect on
the Company.

 

(g)          Except
as set forth in the Commission Documents, neither the Company nor any of its Subsidiaries has incurred any material liabilities,
obligations, claims or losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise)
other than those incurred in the ordinary course of the Company's or its Subsidiaries’ respective businesses.

 

(h)          Since
December 31, 2011, no event or circumstance has occurred or exists with respect to the Company or its Subsidiaries or their respective
businesses, properties, prospects, operations or financial condition, which, under applicable law, rule or regulation, requires
public disclosure or announcement by the Company but which has not been so publicly announced or disclosed.

 

(i)          Except
as set forth in the Commission Documents, neither the Company nor any Subsidiary has any outstanding secured or unsecured Indebtedness
in excess of $100,000.

 

(j)          Other
than the Senior Notes, there is no Indebtedness of the Company that is senior to or ranks pari passu with the Series D Notes in
right of payment, whether with respect of payment of redemptions, interest, damages or upon liquidation or dissolution or otherwise.

 

(k)          Schedule
III hereto sets forth each Subsidiary of the Company, showing the jurisdiction of its incorporation or organization and showing
the percentage of each person’s ownership of the outstanding stock or other interests of such Subsidiary. All of the outstanding
shares of capital stock of each Subsidiary have been duly authorized and validly issued, and are fully paid and nonassessable.
There are no outstanding preemptive, conversion or other rights, options, warrants or agreements granted or issued by or binding
upon any Subsidiary for the purchase or acquisition of any shares of capital stock of any Subsidiary or any other securities convertible
into, exchangeable for or evidencing the rights to subscribe for any shares of such capital stock. Neither the Company nor any
Subsidiary is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of the
capital stock of any Subsidiary or any convertible securities, rights, warrants or options of the type described in the preceding
sentence. Except as set forth in the Commission Documents, neither the Company nor any Subsidiary is party to, nor has any knowledge
of, any agreement restricting the voting or transfer of any shares of the capital stock of any Subsidiary.

 

    	10

    	 

    

 

(l)          Except
as disclosed in the Commission Documents, the Company and each of its Subsidiaries has the unrestricted right to vote, and (subject
to limitations imposed by applicable law) to receive dividends and distributions on, all capital securities of their respective
Subsidiaries.

 

(m)          Except
as set forth in the Commission Documents, each of the Company and the Subsidiaries has good and valid title to all of its material
real and personal property, free and clear of any mortgages, pledges, charges, liens, security interests or other encumbrances.
Any material leases of the Company and each of its Subsidiaries are valid and subsisting and in full force and effect.

 

(n)          The
Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in
such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries
are engaged.

 

(o)          There
is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other proceeding pending or,
to the knowledge of the Company (which knowledge shall include the knowledge of the responsible officers or employees, after reasonable
investigation), threatened against the Company or any Subsidiary which questions the validity of the Series D Notes or any of the
transactions contemplated hereby or any action taken or to be taken pursuant hereto. Except as set forth in the Commission Documents,
(i) there is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the knowledge of the Company (which knowledge shall include the knowledge of the responsible officers or employees, after
reasonable investigation), threatened against or involving the Company, any Subsidiary or any of their respective properties or
assets and (ii) there are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental
or regulatory body against the Company or any Subsidiary or any officers or directors of the Company or Subsidiary in their capacities
as such.

 

(p)          Except
as set forth in the Commission Documents, (i) the business of the Company and the Subsidiaries has been and is presently being
conducted in compliance with all applicable material federal, state and local governmental laws, rules, regulations and ordinances
and (ii) the Company and each of its Subsidiaries have all material franchises, permits, licenses, consents and other governmental
or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted by it.

 

(q)          Except
as set forth in the Commission Documents, (i) the Company and each of the Subsidiaries has accurately prepared and filed all federal,
state and other tax returns required by law to be filed by it, has paid or made provisions for the payment of all taxes shown to
be due and all additional assessments, and adequate provisions have been and are reflected in the consolidated financial statements
of the Company and the Subsidiaries for all current taxes and other charges to which the Company or any Subsidiary is subject and
which are not currently due and payable. The Company has no knowledge of any additional assessments, adjustments or contingent
tax liability (whether federal or state) of any nature whatsoever, whether pending or threatened against the Company or any Subsidiary
for any period, nor of any basis for any such assessment, adjustment or contingency.

 

(r)          The
Company and the Subsidiaries own or possess adequate rights or licenses to use all trademarks, service marks, and all applications
and registrations therefor, trade names, patents, patent rights, copyrights, original works of authorship, inventions, licenses,
approvals, governmental authorizations, trade secrets and other intellectual property rights (collectively, “Intellectual
Property Rights”) necessary to conduct their respective businesses as now conducted. Except as disclosed in the Commission
Documents, none of the Company’s Intellectual Property Rights have expired or terminated, or are expected to expire or terminate,
within two years from the date of this Agreement. The Company does not have any knowledge of any material infringement by the Company
or its Subsidiaries of Intellectual Property Rights of others or by any other party of any Intellectual Property Rights of the
Company or its Subsidiaries. There is no material claim, action or proceeding pending, or to the knowledge of the Company, being
threatened, against the Company or its Subsidiaries regarding its Intellectual Property Rights. The Company is unaware of any facts
or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and
its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their material
Intellectual Property Rights.

 

    	11

    	 

    

 

(s)          There
are no loans, leases, agreements, contracts, royalty agreements, management contracts or arrangements or other continuing transactions
between (a) the Company, any Subsidiary or any of their respective customers or suppliers on the one hand, and (b) on the other
hand, any officer, employee, consultant or director of the Company, or any of its Subsidiaries, or any person owning at least 5%
of the outstanding capital stock of the Company or any Subsidiary or any member of the immediate family of such officer, employee,
consultant, director or stockholder or any corporation or other entity controlled by such officer, employee, consultant, director
or stockholder, or a member of the immediate family of such officer, employee, consultant, director or stockholder which, in each
case, is required to be disclosed in the Commission Documents or in the Company’s most recently filed definitive proxy statement
on Schedule 14A, that is not so disclosed in the Commission Documents or in such proxy statement.

 

(t)          The
records and documents of the Company and its Subsidiaries accurately reflect in all material respects the information relating
to the business of the Company and the Subsidiaries, the location and collection of their assets, and the nature of all transactions
giving rise to the obligations or accounts receivable of the Company or any Subsidiary. Except as set forth in the Commission Documents,
the Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient, in the judgment of the Company's
management, to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management's general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets
at reasonable intervals and appropriate actions are taken with respect to any differences.

 

(u)          The
Series D Shares when issued and delivered will be duly and validly issued and will be free of all liens and restrictions on transfer
other than any restrictions on transfer under the Securities Act of 1933, as amended (the “Securities Act”).
The Commission Documents accurately set forth the fully diluted equity capitalization of the Company as of the date hereof, prior
to the issuance of Series D Shares as contemplated by this Note, except for employee option exercises, employee option grants,
and warrant exercises after July 18, 2012, the net effect of which would represent a change of less than 1% of the fully diluted
shares of Common Stock shown in the Commission Documents.

 

(v)         The
shares of Common Stock (the “Conversion Shares”) issuable upon conversion of the Series D Shares have been duly
reserved for issuance by the Company in sufficient number to cover the conversion of all of the Series D Shares. The issuance of
the Conversion Shares upon conversion of the Series D Shares has been duly authorized by the Company and the Conversion Shares
when delivered in accordance with the Series D Certificate of Designation, will be validly issued, fully paid and non-assessable,
and free of all liens and restrictions on transfer other than any restrictions on transfer under the Securities Act.

 

(w)          The
offer, issuance, sale and delivery of the Series D Shares and Conversion Shares will not under current laws and regulations require
compliance with the prospectus delivery or registration requirements of the Securities Act.

 

(x)          The
Company is the sole owner of, and has good and marketable title to, all of the Collateral free and clear of any and all liens or
encumbrances, in each case other than as set forth in the Senior Notes Security Agreement. To the extent that any parts of the
Collateral are Intellectual Property Rights, no such Collateral has been judged invalid or unenforceable, in whole or in part,
and no claim has been made that any part of such Collateral violates the rights of any third party. Other than as set forth in
the Senior Notes Security Agreement or the Series D Notes, neither the Company nor any Subsidiary is a party to, or bound by, any
agreement that restricts the grant by the Company or any Subsidiary of a security interest in the Collateral.

 

    	12

    	 

    

 

(y)          The
Company is not now and has not been, at any time during the past three (3) years, a shell company as defined by Rule 405 of the
Securities Act.

 

(z)          No
representation or warranty of the Company in the Series D Notes contains or will contain any untrue statement of a material fact
nor shall such representations and warranties taken as a whole omit any statement necessary in order to make any material statement
contained herein not misleading.         

 

10.         Affirmative
Covenants.

 

Unless otherwise consented to by the Majority
Noteholder(s), and for so long as any amounts under the Notes remains unpaid:

 

(a)          the
Company shall (and shall cause each Subsidiary to) maintain its existence and authority to conduct its business as presently contemplated
to be conducted;

 

(b)          the
Company shall comply, and cause each Subsidiary to comply, in each case in all material respects, with all applicable laws, rules,
regulations and orders applicable to the Company and each Subsidiary;

 

(c)          the
Company shall keep and cause each Subsidiary to keep adequate records and books of account, in which complete entries will be made
in accordance with GAAP consistently applied, reflecting all financial transactions of the Company and its Subsidiaries, and in
which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts and
other purposes in connection with its business shall be made;

 

(d)          the
Company shall (and shall cause each Subsidiary to) maintain insurance with responsible companies in such amounts and against such
risks as are customary to businesses similar to the Company’s and its Subsidiaries’;

 

(e)          the
Company shall pay all applicable taxes as they come due;

 

(f)          the
Company shall operate in accordance with the Budget and the assumptions set forth in the Budget.

 

(g)          if
the Company (a) does not enter into a definitive agreement with respect to an additional equity funding of at least $10 million
prior to November 30, 2012, and (b) does not receive such funds prior to December 31, 2012, then the Company shall implement a
strategic alternative process to be agreed to by the parties.

 

(h)          the
Company shall provide the Noteholder with monthly reconciliations of its spending as compared to the Budget within five business
days after the end of each calendar month which will provide for an aggregate adverse variance on the total amount expended of
not more than 5% in the aggregate from September 1, 2012 through each month-end as contemplated in the Budget (unless otherwise
consented to by the Majority Noteholder(s)).

 

(i)          the
net proceeds from the Series D Notes shall be used by the Company in the manner contemplated in the Budget;

 

    	13

    	 

    

 

(j)          the
Company shall timely file all reports required to be filed with the Securities and Exchange Commission pursuant to the Exchange
Act, and the Company shall not terminate its status as an issuer required to file reports under the Exchange Act even if the Exchange
Act or the rules and regulations thereunder would permit such termination;

 

(k)          at
any time that an Event of Default has occurred and is continuing, the Majority Noteholder(s) shall have a right to audit the Company’s
accounts and appraise Collateral. At any time the Series D Notes are outstanding, the Company shall, at the request of the Majority
Noteholder(s), indicate on its records concerning the Collateral a notation, in form satisfactory to the Majority Noteholder(s),
of the security interest of the Noteholder Group hereunder;

 

(l)          the
Company, at its expense, shall keep the Collateral insured against loss or damage by fire, theft, explosion, sprinklers, and all
other hazards and risks, and in such amounts, as ordinarily insured against by other owners in similar businesses conducted in
the locations where the Company’s business is conducted on the date hereof. The Company shall also maintain insurance relating
to the Company’s business, ownership and use of the Collateral in amounts and of a type that are customary to businesses
similar to the Company’s. The Company will make all filings that are necessary or desirable, or otherwise reasonable requested
by the Majority Noteholder(s), in connection with the perfection of the Noteholder Group’s security interest in the Collateral.

 

11.         Negative
Covenants.

 

Except as is otherwise necessary for the
Company to comply with the terms relating to the Senior Notes, as provided in the attached Schedule VI, unless otherwise
consented to by the Majority Noteholder(s), and for so long as any amounts under the Notes remains unpaid:

 

(a)          the
Company shall not (and shall cause each Subsidiary to not) (i) sell, transfer or otherwise dispose of any of its properties, assets
and/or rights including, without limitation, its intellectual property, to any person, (ii) grant, create, incur, assume or suffer
to exist any lien, encumbrance, charge or other security interest senior or pari passu to the Series D Notes upon any of
its property, assets or revenues, whether now owned or hereafter acquired including, without limitation, the Collateral, other
than in connection with Automation Equipment Leases entered into in the ordinary course of the Company’s business, (iii)
take any action which could reasonably be expected to have a Material Adverse Effect on the value or marketability of the Collateral
or the priority of the Noteholder’s lien on the Collateral; provided, however, that the Company may grant licenses, exclusivity
arrangements, technology access or sharing rights, and other similar rights to its products and the Intellectual Property Rights
related thereto in connection with bona fide commercial transactions with customers, suppliers, strategic partners or other similar
counterparties entered into in the ordinary course of the Company’s business;

 

(b)          Except
with respect to the transaction with Vision Opportunity Master Fund, Ltd. contemplated by this Note, the Company shall not (and
shall cause each Subsidiary to not) become a party to any transactions which exceed, individually or in the aggregate, $50,000
with any person who is an affiliate of the Company or any Subsidiary, except transactions in the ordinary course of business that
are upon fair and reasonable terms that are fully disclosed to the Noteholder and are no less favorable to the Company or such
Subsidiary than would be obtained in a comparable arm’s length transaction with a person not an affiliate of the Company
or such Subsidiary;

 

(c)          the
Company shall not enter into any agreement in which the terms of such agreement would restrict or impair the right or ability of
the Company or any Subsidiary to perform its obligations under the Series D Notes;

 

    	14

    	 

    

 

(d)          the
Company shall not (and shall cause each Subsidiary to not) incur any Indebtedness that is senior or pari passu in right
of payment to the Series D Notes, other than in connection with Automation Equipment Leases entered into in the ordinary course
of the Company’s business; and

 

(e)          the
Company shall not (and shall cause each Subsidiary to not) liquidate or dissolve or instruct or grant resolutions to any liquidator
of the Company or any Subsidiary.

 

12.         Transfers.

 

The Company may not transfer or assign this
Note nor any right or obligation hereunder to any person or entity without the prior written consent of the Majority Noteholder(s).
The Noteholder may freely transfer, assign or pledge in whole or in part this Note without the prior consent of the Company, provided
that any such transfer, assignment or pledge complies with applicable federal and state securities laws. This Note shall be a registered
note and the Company shall keep, at its principal executive office, books for the registration and registration of transfer of
this Note and the Series D Notes. Prior to presentation of this Note for registration of transfer, the Company shall treat the
person in whose name this Note is registered as the owner and holder of this Note for all purposes whatsoever. Upon receipt by
the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of this
Note and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it; or (b) in the case of mutilation,
upon surrender thereof, the Company, at its expense, will execute and deliver in lieu thereof this Note a new Note, in the same
principal amount as the unpaid principal amount of this Note and dated the date to which interest shall have been paid on this
Note or, if no interest shall have yet been so paid, dated the date of this Note.

 

13.          Registration
Rights. 

 

The parties agree to amend the Registration
Rights Agreement, dated as of September 5, 2007, between the Company’s predecessor and Vision Opportunity Master Fund Ltd
promptly following the date hereof to provide certain customary demand and piggyback registration rights with respect to the Conversion
Shares.

 

14.         Information
Rights.

 

Unless otherwise agreed by the Majority
Noteholder(s) (a) as long as the Noteholder owns this Note or any Series D Shares or Conversion Shares, if the Company is not required
to file reports pursuant to such laws, it will prepare and furnish to the Noteholder and make publicly available in accordance
with Rule 144(c) such information as is required for the Noteholder to sell all of the Conversion Shares under Rule 144, and (b)
the Company will take such further action as any holder of this Note or any Series D Shares or Conversion Shares may reasonably
request, all to the extent required from time to time to enable such person to sell the Conversion Shares without registration
under the Securities Act within the limitation of the exemptions provided by Rule 144. In addition, the Majority Noteholder(s)
shall have the right, at any time upon reasonable notice, audit the books and records of the Company to ensure compliance by the
Company with the terms and conditions set forth in this Note, the cost of any such audit would be borne by the Majority Noteholder(s).

 

15.         Collateral.

 

(a)          To
secure all obligations of the Company to the Noteholder Group in connection with the Loan and the Series D Notes, including without
limitation the payment of the principal of and all interest on the loans made pursuant to the Series D Notes, the Company hereby
assigns, pledges and grants a security interest in and delivers to the Collateral Agent, on behalf of the Noteholder Group, all
of its rights, title and interest in the Collateral. This Note and the Series D Notes constitutes a security agreement for purposes
of the Uniform Commercial Code in all relevant jurisdictions. Upon an Event of Default, the Collateral Agent, on behalf of the
Noteholder Group, shall have all the rights and remedies of a secured party provided in the Uniform Commercial Code in force in
the State of New York. The Collateral is granted as security only and shall not subject the Collateral Agent (or any other member
of the Noteholder Group) to, or in any way affect or modify, any obligation or liability of the Company with respect to any of
the Collateral or any transaction in connection therewith.

 

    	15

    	 

    

 

(b)          The
Company agrees that it will, at the expense of the Noteholder Group and in such manner and form as the Collateral Agent may reasonably
require, execute, deliver, file and record any financing statement, specific assignment or other paper and take any other action
that may be reasonably necessary or desirable, or that the Collateral Agent may reasonably request, in order to create, preserve,
perfect or validate any security interest or to enable the Collateral Agent to exercise and enforce its rights hereunder with respect
to any of the Collateral. To the extent permitted by applicable law, the Company hereby authorizes the Collateral Agent (on behalf
of the Noteholder Group) to execute and file, in the name of the Company or otherwise, Uniform Commercial Code financing statements
(which may be carbon, photographic, photostatic or other reproductions of the Series D Notes or of a financing statement relating
to the Series D Notes) and financing statements and other appropriate filings with the US Patent and Trademark Office, in each
case which the Collateral Agent in its sole discretion may deem necessary or appropriate to further perfect its security interest
in the Collateral.

 

(c)          If
an Event of Default shall have occurred and be continuing, the Collateral Agent (on behalf of the Noteholder Group) shall have
the right to the extent permitted by law, and the Company shall take all such action as may be necessary or appropriate to give
effect to such right, including the right to use, consume, sell, lease or otherwise dispose of any Collateral, to vote and to give
consents, ratifications and waivers, and take any other action with respect to any or all of the Collateral with the same force
and effect as if the Collateral Agent were the absolute and sole owner thereof.

 

(d)          The
Company hereby irrevocably appoints the Collateral Agent (on behalf of the Noteholder Group) its true and lawful attorney, with
full power of substitution, in the name of the Company, the Collateral Agent or otherwise, for the sole use and benefit of the
Collateral Agent, but at the expense of the Noteholder Group, to the extent permitted by law to exercise, at any time and from
time to time while an Event of Default has occurred and is continuing, all or any of the following powers with respect to all or
any of the Collateral:

 

(i)          to
demand, sue for, collect, receive and give acquaintance for any and all monies due to become due upon or by virtue thereof,

 

(ii)         to
settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto,

 

(iii)        to
sell, transfer, assign or otherwise deal in or with the same or the proceeds or avails thereof, as fully and effectually as if
the Collateral Agent were the absolute owner thereof, and

 

(iv)        to
extend the time of payment of any or all thereof and to make any allowance and other adjustments with reference thereto;

 

(v)         do
all acts and things necessary or expedient, in furtherance of any such purposes;

 

provided that the Collateral Agent
shall give the Company not less than ten days’ prior written notice of the time and place of any sale or other intended disposition
of any of the Collateral. The Collateral Agent and the Company agree that such notice constitutes “reasonable notification”
within the meaning of Sections 9-611 and 9-612 of the Uniform Commercial Code.

 

    	16

    	 

    

 

(e)          
The Company covenants and agrees that in the event that any of the Collateral shall become subject to any lien or security interest
(other than the lien and security interest in favor of the Noteholder Group created hereunder or under any other obligation of
the Company to the Noteholder Group), or the lien on and security interest in the Collateral in favor of the Noteholder Group created
hereunder shall cease to be a perfected security interest in and lien on any of such Collateral except pursuant to a release herein
contemplated, the Company will promptly take whatever action may be necessary to release such other liens or security interests
or to restore the Noteholder Group’s lien on and security interest in the Collateral as a perfected security interest or
lien, as the case may be. The Company acknowledges that money damages would not be a sufficient remedy for the breach of the Company’s
covenants in this paragraph and that, in addition to all other remedies that may be available, the Collateral Agent and the Noteholder
Group shall be entitled to specific performance as a remedy for any such breach.

 

(f)          So
long as the Collateral Agent complies with reasonable practices, the Collateral Agent shall not in any way or manner be liable
or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage thereto occurring or arising in any manner or
fashion from any cause; (c) any diminution in the value thereof; or (d) any act or default of any carrier, warehouseman, bailee,
forwarding agency, or other person whomsoever. All risk of loss, damage or destruction of the Collateral shall be borne by the
Company

 

(g)          The
Collateral Agent shall act in good faith in its apportionment of the Collateral (or proceeds therefrom) amongst the holders of
the Series D Notes following an Event of Default.

 

(h)          The
Noteholder hereby agrees to reimburse and pay to the Collateral Agent such Noteholder’s ratable portion (as determined by
the relative principal amounts of the Series D Notes) of all fees and expenses incurred hereunder by the Collateral Agent.

 

(i)          The
security interest in the Collateral created herein shall terminate at such time as the Company shall have paid the entire outstanding
principal balance of and all accrued interest on the Notes and the Notes shall have terminated. The Collateral Agent (on behalf
of the Noteholder Group) shall promptly execute and file, in the name of the Company or otherwise, appropriate Uniform Commercial
Code filings and appropriate filings with the US Patent and Trademark Office as are necessary or appropriate to document the termination
of its security interest in the Collateral at such time as such security interest so terminates.

 

16.         Limitation
of Obligations of the Collateral Agent and Majority Noteholder(s); Exculpation and Indemnification of the Collateral Agent.

 

(a)          The
Noteholder hereby irrevocably designates and appoints the Collateral Agent as the agent of the Noteholder, and the Collateral Agent
hereby accepts such appointment, under this Note, and the Noteholder irrevocably authorizes the Collateral Agent, in such capacity,
to take such actions on its behalf, and to exercise such powers and perform such duties as are expressly delegated to the Collateral
Agent by the terms of this Note, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision
to the contrary elsewhere in this Note, (i) neither the Collateral Agent nor the Majority Noteholder(s) shall have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary relationship with the Noteholder, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Note or otherwise exist against the Collateral
Agent or the Majority Noteholder(s), regardless of whether an Event of Default has occurred and is continuing, (ii) neither the
Collateral Agent nor the Majority Noteholder(s) shall have any duty to take any discretionary action or exercise any discretionary
powers, and (iii) neither the Collateral Agent nor the Majority Noteholder shall have any duty to exercise at all or in any particular
manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers
granted or available to the Collateral Agent or the Majority Noteholder(s), as applicable, in this Note, it being understood and
agreed, that in respect of the Collateral, rights under this Note or any act, omission or event related thereto, except as otherwise
provided herein, the Collateral Agent or the Majority Noteholder(s), as applicable, may act in any manner deemed appropriate in
its sole discretion.

 

    	17

    	 

    

 

(b)          Neither
the Collateral Agent nor any of its affiliates, and their respective directors, officers, employees, counsel, agents or attorneys-in-fact
shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Note (except for its or such Person’s own gross negligence or willful misconduct, as determined by a final, non-appealable
judgment of a court of competent jurisdiction), or (ii) responsible in any manner to the Noteholder for the creation, validity,
perfection or priority of the liens on the Collateral or the ownership, existence, condition or value of any Collateral or whether
such Collateral has been protected or insured or has been encumbered, or whether any particular reserves are appropriate. The Collateral
Agent shall not be under any obligation to the Noteholder to ascertain or to inquire as to the observance or performance of any
of the agreements contained in, or conditions of, this Note, or to inspect the properties, books or records of the Company. No
provision of this Note shall require the Collateral Agent to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder or take any action if the Collateral Agent believes in good faith or has been
advised in writing by counsel that compliance with such instructions would be prohibited by applicable law. The Collateral Agent
shall not be liable to the Noteholder or any third party for special, indirect, incidental, punitive or consequential damages or
lost profits or loss of business of any kind, whether or not foreseeable, arising in connection with this Note or the Collateral.

 

(c)          The
Noteholder expressly acknowledges that neither the Collateral Agent nor any of its officers, directors, employees, agents, attorneys
in fact or affiliates has made any representations or warranties to it, including, without limitation, regarding the Company, its
financial condition or its prospects.

 

(d)          The
Noteholder hereby agrees to indemnify the Collateral Agent in its capacity as such and its affiliates, and their respective directors,
officers, employees, counsel, agents and attorneys-in-fact, pro rata in accordance with the relative principal amount of
the Series D Notes, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever which may at any time be imposed on, incurred by or asserted against such
Person in any way relating to or arising out of, its performance of its obligations under this Note or any action taken or omitted
by the Collateral Agent under or in connection with any of the foregoing.

 

(e)          The
Collateral Agent is an “agent” of the Noteholder within the meaning of the term “secured party” as defined
in the New York Uniform Commercial Code. The Noteholder authorizes the Collateral Agent to take all actions contemplated by this
Note, and further agrees that it does not have the right individually to seek to realize upon the Collateral or take any enforcement
action or exercise any right that it might otherwise have under applicable law to credit bid at foreclosure sales, UCC sales or
other similar dispositions of Collateral, it being understood and agreed that such rights and remedies may be exercised solely
by the Collateral Agent for the benefit of the Noteholder upon the terms of this Note. The Collateral Agent is hereby authorized
to execute and deliver on behalf of the Noteholder any documents necessary or appropriate to grant and perfect a lien on such Collateral
in favor of the Collateral Agent on behalf of the Noteholder. The Noteholder hereby authorizes the Collateral Agent, at its option
and in its discretion, to release any lien granted to or held by the Collateral Agent. Upon request by the Collateral Agent at
any time, the Noteholder will confirm in writing the Collateral Agent’s authority to release particular types or items of
Collateral pursuant hereto. Notwithstanding anything to the contrary herein, the Collateral Agent shall not be required to execute
any document on terms which, in the Collateral Agent’s opinion, would expose the Collateral Agent to liability or create
any obligation or entail any consequence other than the release of such liens without recourse or warranty.

 

(f)          The
agreements of the Noteholder set forth in this Section 16 shall survive the repayment in full of the Loan and all other amounts
payable hereunder.

 

17.         Powers
and Remedies Cumulative; Delay or Omission Not Waiver of Event of Default.

 

No right or remedy herein conferred upon
or reserved to the Noteholder, the Majority Noteholder(s) and/or the Collateral Agent is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate
right or remedy. No delay or omission of the Noteholder, the Majority Noteholder(s) and/or the Collateral Agent to exercise any
right or power, if any, accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or
power or shall be construed to be a waiver of any Event of Default or an acquiescence therein; and every power and remedy given
by this Note or by law may be exercised from time to time, and as often as shall be deemed expedient, by the Noteholder, the Majority
Noteholder(s) and/or the Collateral Agent.

 

    	18

    	 

    

 

18.         Amendments.

 

This Note may be amended only with the written
consent of both the Company and the Majority Noteholder(s).

 

19.         Attorneys
Fees/Enforcement Costs.

 

(a)          The
Company will reimburse the Vision Opportunity Master Fund, Ltd. for reasonable legal fees and expenses in connection with the transactions
contemplated hereby, not to exceed $25,000. In the event that this Note is collected by law or through attorneys at law, or under
advice therefrom, the Company agrees to pay all costs of collection, including reasonable attorneys’ fees, whether or not
suit is brought, and whether incurred in connection with collection, trial, appeal, bankruptcy or other creditors’ proceedings
or otherwise.

 

20.         Survival
of Representations and Warranties; Indemnification

 

All representations and warranties made
hereunder shall survive the applicable Funding Date until 60 calendar days after the filing of the Company’s Form 10-K in
respect of FY 2013, or, in the event the Company is no longer required to file such Form 10-K, June 30, 2014. The Company agrees
to indemnify and hold harmless the Noteholder (and their respective directors, officers, managers, partners, members, shareholders,
affiliates, agents, successors and assigns, (each, an “Indemnified Party”) from and against any and all losses,
liabilities, deficiencies, costs, damages and expenses (including, without limitation, reasonable attorneys’ fees, charges
and disbursements) incurred by such Indemnified Party as a result of any inaccuracy in or breach of the representations, warranties
or covenants made by the Company herein or in any Notice delivered to the Noteholder pursuant to Section 2.

 

21.         Miscellaneous.

 

(a)          The
parties hereto hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery,
acceptance, performance and enforcement of or any default under this Note, except as specifically provided herein.

 

(b)          Any
provision of this Note which is illegal, invalid, prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating or impairing
the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

(c)          This
Note shall bind the Company and its successors and permitted assigns. The rights under and benefits of this Note shall inure to
the Noteholder and its successors and assigns.

 

(d)          The
Section headings herein are for convenience only and shall not affect the construction hereof.

 

(e)          All
notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing and
faxed, mailed or delivered to each party at the respective addresses of the parties, or at such other address or facsimile number
as the Company shall have furnished to Noteholder in writing. All such notices and communications will be deemed effectively given
the earlier of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile (with
receipt of appropriate confirmation), (iv) one Business Day after being deposited with an overnight courier service of recognized
standing, or (v) on receipt of confirmation of delivery.

 

    	19

    	 

    

 

(f)          In
the event any interest is paid on this Note, which is deemed to be in excess of the then legal maximum rate, then that portion
of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal
and applied against the principal of this Note.

THIS NOTE HAS BEEN DELIVERED IN NEW YORK,
NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAW PRINCIPLES.

 

THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO
THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT
OF NEW YORK FOR THE PURPOSE OF ANY LITIGATION ARISING HEREUNDER. THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS
BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE COMPANY HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING
OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

 

BY ITS ACCEPTANCE OF THIS NOTE THE NOTEHOLDER AND THE COMPANY
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS NOTE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE NOTEHOLDER OR THE COMPANY. THE COMPANY ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED
FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE NOTEHOLDER MAKING
THE LOAN EVIDENCED HEREBY.

 

    	20

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this instrument to be duly executed on the date indicated above.

 

	 	MEDPRO SAFETY PRODUCTS, INC.
	 	 
	 	By:	W. Craig Turner
	 	Name:	W. Craig Turner
	 	Title:	Chairman and Chief Executive Officer

 

NOTEHOLDER

 

VISION OPPORTUNITY MASTER FUND, LTD.

 

	By:	/s/ Adam Benowitz	 
	Name:	Adam Benowitz	 
	Title:	Director	 

 

COLLATERAL AGENT

 

VISION OPPORTUNITY MASTER FUND, LTD., as Collateral Agent on
behalf of the Noteholder Group

 

	By:	/s/ Adam Benowitz	 
	Name:	Adam Benowitz	 
	Title:	Director	 
	 	 	 

 

 

    	21

    	 

    

 

Schedules
to the SERIES D SENIOR SECURED PROMISSORY NOTE

 

	Schedule	 	Description
	 	 	 
	I	 	Funding Schedule
	 	 	 
	II	 	Collateral
	 	 	 
	III	 	Subsidiaries
	 	 	 
	IV	 	Notice of Drawdown
	 	 	 
	V	 	Notice of Conversion – Series D Preferred Stock
	 	 	 
	VI	 	Excerpts from Agreements Governing 14% Senior Notes Qualifying Negative Covenants

 

Certain schedules and addenda to schedules have
been furnished with this exhibit. The Company agrees to furnish supplementally a copy of any omitted schedule or addendum to
the Commission upon request.

 

    	22

    	 

    

 

SCHEDULE I

 

	DATE	 	AMOUNT OF ADVANCE	 
	 	 	 	 
	September 12, 2012	 	$	727,000	 
	September 30, 2012	 	$	662,000	 
	October 31, 2012	 	$	372,000	 
	November 30, 2012	 	$	309,000	 
	December 31, 2012	 	$	257,000	 
	January 31, 2013	 	$	361,000	 
	February 28, 2013	 	$	190,000	 
	March 31, 2013	 	$	183,000	 
	April 30, 2013	 	$	0	 
	May 31, 2013	 	$	211,000	 
	June 30, 2013	 	$	238,000	 
	July 31, 2013	 	$	512,000	 
	August 31, 2013	 	$	213,000	 
	 	 	 	 	 
	TOTAL	 	$	4,235,000	 

 

    	23

    	 

    

 

SCHEDULE II

 

COLLATERAL

 

“Collateral” means:

 

(a)          all
accounts (as defined in the Uniform Commercial Code of the State of New York, the “UCC”) and payment intangibles, including,
without limitation, all contract rights, and all other forms of monetary obligations owing to the Company, and all credit insurance,
guaranties, or security therefor, whether or not they have been earned by performance;

 

(b)          all
chattel paper (as defined in the UCC), including, without limitation, electronic chattel paper and tangible chattel paper evidencing
both a monetary obligation and a security interest in or lease of goods, together with any guarantees, letters of credit, and other
security therefor;

 

(c)          all
commercial tort claims (as defined in the UCC);

 

(d)          all
deposit accounts (as defined in the UCC) held in the name of the Company, and all of the cash and cash equivalents, deposited therein
from time to time, and all securities, rights, interests, shares of stock, instruments, interests, or other property contained,
deposited, held or otherwise added to any deposit account from time to time;

 

(e)          all
documents (as defined in the UCC), including, without limitation, any paper that is treated in the regular course of business as
adequate evidence that the person in possession of the paper is entitled to receive, hold, and dispose of the goods the paper covers,
including warehouse receipts, bills of lading, certificates of title, and applications for certificates of title;

 

(f)          all
equipment (as defined in the UCC), machinery and all fixtures, and all accessions, additions, attachments, improvements, substitutions
and replacements thereto and thereof and warranties (express and implied) received from the sellers and manufacturers of the foregoing
property, and all related claims, credits, setoffs, and other rights of recovery;

 

(g)          all
general intangibles (as defined in the UCC) of any kind, including, without limitation, all money, contract rights, corporate or
other business records, all intellectual property rights, inventions, designs, formulas, patents (including, without limitation,
the patents set forth on Addendum A), patent applications (including, without limitation, the patent applications set forth on
Addendum A), service marks, trademarks, trade names, trade secrets, engineering drawings, goodwill, rights to prepaid expenses,
registrations, franchises, copyrights, licenses, customer lists, computer programs and other software (as defined in the UCC),
source code, tax refund claims, royalty, licensing and product rights, all claims under guarantees, security interests or other
security held by or granted to Company, all indemnification rights, and rights to retrieval from third parties of electronically
processed and recorded data pertaining to any Collateral, things in action, items, checks, drafts, and all orders in transit to
or from Company, credits or deposits of Company (whether general or special) that are held by the Noteholder Group or the Collateral
Agent;

 

(h)          all
goods (as defined in the UCC);

 

(i)          all
inventory (as defined in the UCC), whether in the possession of the Company or of a bailee or other person for sale, storage, transit,
processing, use or otherwise and whether consisting of whole goods, spare parts, components, supplies, materials, or consigned,
returned or repossessed goods, which are held for sale or lease, which are to be furnished (or have been furnished) under any contract
of service or which are raw materials, work in process or materials used or consumed in Company’s business, and all warranties
and related claims, credits, setoffs, and other rights of recovery with respect to any of the foregoing;

 

    	24

    	 

    

 

(j)          all
instruments (as defined in the UCC) including, without limitation, every promissory note, negotiable instrument, certificated security,
or other writing that evidences a right to payment of money, that is not a lease or security agreement, and that is transferred
in the ordinary course or conduct of business (including worldwide shipment) by delivery with any necessary assignment or endorsement;

 

(k)          all
investment property (as defined in the UCC) pledged to or delivered to Lender’s control from time to time, and any and all
other property in which the Company at any time has rights and in which at any time a security interest has been transferred to
the Noteholder Group (and regardless of whether any such property constitutes a certificated or uncertificated security or is held
directly or through one or more financial intermediaries through book entries);

 

(l)          all
letter of credit rights (as defined in the UCC);

 

(m)          all
supporting obligations (as defined in the UCC);

 

(n)          all
books, files, records (as defined in the UCC) relating to the Collateral;

 

(o)          each
policy and contract of insurance owned or maintained by the Company, and all the benefits thereof including, without limitation,
all claims of whatsoever nature, as well as return premiums, and in and to all moneys and claims for moneys in connection therewith;

 

(p)          all
certificates and instruments evidencing any securities or other Collateral subject to the Series D Notes from time to time and
all interest, dividends, distributions, cash, investment property, securities, shares of stock, and other amounts and property
from time to time received, receivable, paid or payable or otherwise distributed from time to time in respect of, in exchange or
substitution for, or as an addition to any of the foregoing Collateral;

 

(q)          all
other tangible or intangible personal property of every kind and nature;

 

(r)          all
beneficial interests in any trusts, whether in the form of debt or equity interests or otherwise;

 

(s)          all
equity interests of any subsidiary of the Company; and

 

(t)          all
accessions and additions to the foregoing, substitutions therefor, and replacements, products and proceeds (as defined in the UCC)
of any of the property of the Company described in clauses (a) through (s) above (including any proceeds of insurance thereon).

 

Notwithstanding anything to the contrary,
the Collateral shall not include such intellectual property and stock of the Company's Subsidiaries which have been pledged
to secure the Company’s obligations under the Senior Notes, including the Company’s interests in following: (i)          MedPro
Investments, LLC (the “Issuer”), (ii) the Product and the intellectual property rights related to the Product, (iii)
any Royalty Payments and (iv) any other Royalty Rights.

 

“Product” means (i) Vacuette®
Premium Safety Needle System, a blood collection device that is formatted in two separate models: tube-activated and skin-activated,
(ii) Vacuette® Premium Winged Safety Blood Collection Set, a device used for infusion and blood collection in the healthcare
setting, and (iii) all products substantially similar to, or derived from, any of the foregoing, regardless of the brands, marks
or names under which they are offered.

 

    	25

    	 

    

 

“Royalty Payments” means
all royalty payments and other payments that may be required by Section 2.2 of the Medical Supply Manufacturing Agreement dated
as of July 14, 2010 (the “Manufacturing Agreement”) between the Company and Greiner Bio-One GmbH (“Greiner”)
and any successor agreement (the “Manufacturing Agreement”) or other successor agreement or other agreement evidencing
any Royalty Rights, and in each case, after issuance of the Senior Notes.

 

“Royalty Rights” means
the assets to be sold, transferred, conveyed, assigned, contributed and granted by the Company to the Issuer pursuant to the Purchase
and Sale Agreement between the Company and the Issuer dated as of September 1, 2010 (the “Purchase and Sale Agreement”)
and the Bill of Sale, consisting of (x) all of the Company’s right, title and interest in, to and under the Manufacturing
Agreement; including without limitation all of the Company’s rights (i) to receive the Royalty Payments, (ii) to receive
Royalty Statements, (iii) to make indemnification claims against Greiner pursuant to the Manufacturing Agreement and (iv) to the
proceeds of and the rights to enforce each of the foregoing and (y) any rights similar to those described in clause (x) above under
any agreement entered into by the Company pursuant to the Purchase and Sale Agreement or otherwise following the termination of
the Manufacturing Agreement or otherwise.

 

*************

    	26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]