Document:

SECURITY AGREEMENT

 

This
SECURITY AGREEMENT, dated as of November 26, 2012 (this “Agreement”), is among T3 Motion, Inc., a Delaware
corporation (the “Company”), all of the Subsidiaries of the Company (such subsidiaries,
the “Guarantors” and together with the Company,
the “Debtors”) and the holders of the Company’s Senior Secured Convertible Debentures due 12 months following
their issuance, in the original aggregate principal amount of $4,353,250.00 (collectively, the “Debentures”)
signatory hereto, their endorsees, transferees and assigns (collectively, the “Secured Parties”).

 

WITNESSETH:

 

WHEREAS, pursuant
to the Purchase Agreement (as defined in the Debentures), the Secured Parties have severally agreed to extend the loans to the
Company evidenced by the Debentures;

 

WHEREAS, pursuant to
a certain Subsidiary Guarantee, dated as of the date hereof (the “Guarantee”), the Guarantors
have jointly and severally agreed to guarantee and act as surety for payment of such Debentures; and

 

WHEREAS, in order to
induce the Secured Parties to extend the loans evidenced by the Debentures, each Debtor has agreed to execute and deliver to the
Secured Parties this Agreement and to grant the Secured Parties, pari passu with each other Secured Party and through
the Agent (as defined in Section 18 hereof), a security interest in certain property of such Debtor to secure the prompt payment,
performance and discharge in full of all of the Company’s obligations under the Debentures and the Guarantors’ obligations
under the Guarantee.

 

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

 

1.           Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used
but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel
paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”,
“investment property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”)
shall have the respective meanings given such terms in Article 9 of the UCC.

 

(a)          “Collateral”
means the collateral in which the Secured Parties are granted a security interest by this Agreement and which shall include the
following personal property of the Debtors, whether presently owned or existing or hereafter acquired or coming into existence,
wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products
and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance
covering the same and of any tort claims in connection therewith, and all dividends, interest,
cash, notes, securities, equity interest or other property at any time and from time to time acquired, receivable or otherwise
distributed in respect of, or in exchange for, any or all of the Pledged Securities (as defined below):

 

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(i)          All
goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature and
wherever situated, together with all documents of title and documents representing the same, all additions and accessions thereto,
replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and useful in
connection with any Debtor’s businesses and all improvements thereto; and (B) all inventory;

 

(ii)         All
contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests,
stock or other securities, rights under any of the Organizational Documents, agreements
related to the Pledged Securities, licenses, distribution and other agreements, computer software (whether “off-the-shelf”,
licensed from any third party or developed by any Debtor), computer software development rights, leases, franchises, customer lists,
quality control procedures, grants and rights, goodwill, trademarks, service marks, trade styles, trade names, patents, patent
applications, copyrights, and income tax refunds;

 

(iii)        All
accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties
with respect to each account, including any right of stoppage in transit;

 

(iv)        All
documents, letter-of-credit rights, instruments and chattel paper;

 

(v)         All
commercial tort claims;

 

(vi)        All
deposit accounts and all cash (whether or not deposited in such deposit accounts);

 

(vii)       All
investment property;

 

(viii)      All
supporting obligations; and

 

(ix)         All
files, records, books of account, business papers, and computer programs; and

 

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(x)          the
products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above.

 

Without
limiting the generality of the foregoing, the “Collateral” shall
include all investment property and general intangibles respecting ownership and/or other equity interests in each Guarantor, including,
without limitation, the shares of capital stock and the other equity interests listed on Schedule H
hereto (as the same may be modified from time to time pursuant to the terms hereof), and any other shares of capital stock and/or
other equity interests of any other direct or indirect subsidiary of any Debtor obtained in the future, and, in each case, all
certificates representing such shares and/or equity interests and, in each case, all rights, options, warrants, stock, other securities
and/or equity interests that may hereafter be received, receivable or distributed in respect of, or exchanged for, any of the foregoing
and all rights arising under or in connection with the Pledged Securities, including, but not limited to, all dividends, interest
and cash.

 

Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the extent
that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided,
however, that to the extent permitted by applicable law, this Agreement shall create a valid security interest in such asset
and, to the extent permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset.

 

(b)          “Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all letters patent
of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof, and all applications
for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof,
(iii) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress, service
marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country
or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade secrets arising under
the laws of the United States, any other country or any political subdivision thereof, (v) all rights to obtain any reissues, renewals
or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes of action for infringement of
the foregoing.

 

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(c)          “Majority
in Interest” means, at any time of determination, the majority in interest (based
on then-outstanding principal amounts of Debentures at the time of such determination) of the Secured Parties.

 

(d)          “Necessary
Endorsement” means undated stock powers endorsed in blank or other proper instruments
of assignment duly executed and such other instruments or documents as the Agent (as that term is defined below) may reasonably
request.

 

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

 

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

 

(g)          “Pledged
Interests” shall have the meaning ascribed to such term in Section 4(j).

 

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(h)          “Pledged
Securities” shall have the meaning ascribed to such term in Section 4(i).

 

(i)          “UCC”
means the Uniform Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that
defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed
in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions,
they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones
shall be controlling.

 

2.           Grant
of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by the Debentures
and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations,
each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Secured Parties a security interest
in and to, a lien upon and a right of set-off against all of their respective right, title and interest of whatsoever kind and
nature in and to, the Collateral (a “Security Interest” and, collectively, the “Security Interests”).

 

3.           Delivery
of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, each Debtor shall deliver or cause to
be delivered to the Agent (a) any and all certificates and other instruments representing or evidencing the Pledged Securities,
and (b) any and all certificates and other instruments or documents representing any of the other Collateral, in each case, together
with all Necessary Endorsements. The Debtors are, contemporaneously with the execution hereof, delivering to Agent, or have previously
delivered to Agent, a true and correct copy of each Organizational Document governing any of the Pledged Securities.

 

4.           Representations,
Warranties, Covenants and Agreements of the Debtors. Except as set forth under the corresponding section of the disclosure
schedules delivered to the Secured Parties concurrently herewith (the “Disclosure Schedules”), which Disclosure
Schedules shall be deemed a part hereof, each Debtor represents and warrants to, and covenants and agrees with, the Secured Parties
as follows:

 

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

 

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(b)          The
Debtors have no place of business or offices where their respective books of account and records are kept (other than temporarily
at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule
A attached hereto. Except as specifically set forth on Schedule A, each Debtor is the record owner of the real property
where such Collateral is located, and there exist no mortgages or other liens on any such real property except for Permitted Liens
(as defined in the Debentures). Except as disclosed on Schedule A, none of such Collateral is in the possession of any consignee,
bailee, warehouseman, agent or processor.

 

(c)          Except
for Permitted Liens (as defined in the Debentures) and except as set forth on Schedule B attached hereto, the Debtors are
the sole owner of the Collateral (except for non-exclusive licenses granted by any Debtor in the ordinary course of business),
free and clear of any liens, security interests, encumbrances, rights or claims, and are fully authorized to grant the Security
Interests. Except as set forth on Schedule C attached hereto, there is not on file in any governmental or regulatory authority,
agency or recording office an effective financing statement, security agreement, license or transfer or any notice of any of the
foregoing (other than those that will be filed in favor of the Secured Parties pursuant to this Agreement) covering or affecting
any of the Collateral. Except as set forth on Schedule C attached hereto and except pursuant to this Agreement, as long
as this Agreement shall be in effect, the Debtors shall not execute and shall not knowingly permit to be on file in any such office
or agency any other financing statement or other document or instrument (except to the extent filed or recorded in favor of the
Secured Parties pursuant to the terms of this Agreement).

 

(d)          No
written claim has been received that any Collateral or any Debtor's use of any Collateral violates the rights of any third party.
There has been no adverse decision to any Debtor's claim of ownership rights in or exclusive rights to use the Collateral in any
jurisdiction or to any Debtor's right to keep and maintain such Collateral in full force and effect, and there is no proceeding
involving said rights pending or, to the best knowledge of any Debtor, threatened before any court, judicial body, administrative
or regulatory agency, arbitrator or other governmental authority.

 

(e)          Each
Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of business
and its Collateral at the locations set forth on Schedule A attached hereto and may not relocate such books of account and
records or tangible Collateral unless it delivers to the Secured Parties at least 30 days prior to such relocation (i) written
notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that appropriate
financing statements under the UCC and other necessary documents have been filed and recorded and other steps have been taken to
perfect the Security Interests to create in favor of the Secured Parties a valid, perfected and continuing perfected first priority
lien in the Collateral.

 

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(f)          This
Agreement creates in favor of the Secured Parties a valid security interest in the Collateral, subject only to Permitted Liens
(as defined in the Debentures) securing the payment and performance of the Obligations. Upon making the filings described in the
immediately following paragraph, all security interests created hereunder in any Collateral which may be perfected by filing Uniform
Commercial Code financing statements shall have been duly perfected. Except for the filing of the Uniform Commercial Code financing
statements referred to in the immediately following paragraph, the recordation of the Intellectual Property Security Agreement
(as defined in Section 4(p) hereof) with respect to copyrights and copyright applications in the United States Copyright Office
referred to in paragraph (m), the execution and delivery of deposit account control agreements satisfying the requirements of Section
9-104(a)(2) of the UCC with respect to each deposit account of the Debtors, and the delivery
of the certificates and other instruments provided in Section 3, no action is necessary to create, perfect or protect the
security interests created hereunder. Without limiting the generality of the foregoing, except for the filing of said financing
statements, the recordation of said Intellectual Property Security Agreement, and the execution and delivery of said deposit account
control agreements, no consent of any third parties and no authorization, approval or other action by, and no notice to or filing
with, any governmental authority or regulatory body is required for (i) the execution, delivery and performance of this Agreement,
(ii) the creation or perfection of the Security Interests created hereunder in the Collateral or (iii) the enforcement of the rights
of the Agent and the Secured Parties hereunder.

 

(g)          Each
Debtor hereby authorizes the Agent to file one or more financing statements under the UCC, with respect to the Security Interests,
with the proper filing and recording agencies in any jurisdiction deemed proper by it.

 

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

 

(i)          The
capital stock and other equity interests listed on Schedule H hereto (the
“Pledged Securities”) represent all of the capital stock and
other equity interests of the Guarantors, and represent all capital stock and other equity interests owned, directly or indirectly,
by the Company. All of the Pledged Securities are validly issued, fully paid and nonassessable, and the Company is the legal and
beneficial owner of the Pledged Securities, free and clear of any lien, security interest or other encumbrance except for the security
interests created by this Agreement and other Permitted Liens (as defined in the Debentures). 

 

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(j)          The
ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the “Pledged
Interests”) by their express terms do not provide that they are securities governed
by Article 8 of the UCC and are not held in a securities account or by any financial intermediary.

 

(k)          Except
for Permitted Liens (as defined in the Debentures), each Debtor shall at all times maintain the liens and Security Interests provided
for hereunder as valid and perfected first priority liens and security interests in the Collateral in favor of the Secured Parties
until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14 hereof. Each Debtor hereby
agrees to defend the same against the claims of any and all persons and entities. Each Debtor shall safeguard and protect all Collateral
for the account of the Secured Parties. At the request of the Agent, each Debtor will sign and deliver to the Agent on behalf of
the Secured Parties at any time or from time to time one or more financing statements pursuant to the UCC in form reasonably satisfactory
to the Agent and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Agent to be,
necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality of the foregoing,
each Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security Interests hereunder,
and each Debtor shall obtain and furnish to the Agent from time to time, upon demand, such releases and/or subordinations of claims
and liens which may be required to maintain the priority of the Security Interests hereunder.

 

(l)          No
Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for non-exclusive
licenses granted by a Debtor in its ordinary course of business and sales of inventory by a Debtor in its ordinary course of business)
without the prior written consent of a Majority in Interest.

 

(m)          Each
Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and shall
not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

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(n)          Each
Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral
hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established
reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances
by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover
the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide, and
the insurer issuing such policy to certify to the Agent, that (a) the Agent will be named as lender loss payee and additional insured
under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever,
such insurer will promptly notify the Agent and such cancellation or change shall not be effective as to the Agent for at least
thirty (30) days after receipt by the Agent of such notice, unless the effect of such change is to extend or increase coverage
under the policy; and (c) the Agent will have the right (but no obligation) at its election to remedy any default in the payment
of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default (as defined in the Debentures)
exists and if the proceeds arising out of any claim or series of related claims do not exceed $100,000, loss payments in each instance
will be applied by the applicable Debtor to the repair and/or replacement of property with respect to which the loss was incurred
to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall
be payable to the applicable Debtor; provided, however,
that payments received by any Debtor after an Event of Default occurs and is continuing or in excess of $100,000 for any occurrence
or series of related occurrences shall be paid to the Agent on behalf of the Secured Parties and, if received by such Debtor, shall
be held in trust for the Secured Parties and immediately paid over to the Agent unless otherwise directed in writing by the Agent.
Copies of such policies or the related certificates, in each case, naming the Agent as lender loss payee and additional insured
shall be delivered to the Agent at least annually and at the time any new policy of insurance is issued.

 

(o)          Each
Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Parties promptly, in sufficient detail, of
any material adverse change in the Collateral, and of the occurrence of any event which would have a material adverse effect on
the value of the Collateral or on the Secured Parties’ security interest, through the Agent, therein.

 

(p)          Each
Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take such further action as the Agent may from time
to time request and may in its sole discretion deem necessary to perfect, protect or enforce the Secured Parties’ security
interest in the Collateral including, without limitation, if applicable, the execution and delivery of a separate security agreement
with respect to each Debtor’s Intellectual Property (“Intellectual Property Security Agreement”) in which
the Secured Parties have been granted a security interest hereunder, substantially in a form reasonably acceptable to the Agent,
which Intellectual Property Security Agreement, other than as stated therein, shall be subject to all of the terms and conditions
hereof.

 

(q)          Each
Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and upon
reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the Agent
from time to time.

 

(r)          Each
Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

 

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(s)          Each
Debtor shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Collateral and of any other information received by such Debtor that may materially affect
the value of the Collateral, the Security Interest or the rights and remedies of the Secured Parties hereunder.

 

(t)          All
information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of any Debtor with respect to the Collateral
is accurate and complete in all material respects as of the date furnished.

 

(u)          The
Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any
rights and franchises material to its business.

 

(v)         No
Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it has
one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days prior written
notice to the Secured Parties of such change and, at the time of such written notification, such Debtor provides any financing
statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced
by this Agreement.

 

(w)          Except
in the ordinary course of business, no Debtor may consign any of its inventory or sell any of its inventory on bill and hold, sale
or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be unreasonably
withheld.

 

(x)          No
Debtor may relocate its chief executive office to a new location without providing 30 days prior written notification thereof to
the Secured Parties and so long as, at the time of such written notification, such Debtor provides any financing statements or
fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(y)          Each
Debtor was organized and remains organized solely under the laws of the state set forth next to such Debtor’s name in Schedule
D attached hereto, which Schedule D sets forth each Debtor’s organizational identification number or, if any Debtor
does not have one, states that one does not exist.

 

(z)          
(i) The actual name of each Debtor is the name set forth in Schedule D attached hereto; (ii) no Debtor has any trade names
except as set forth on Schedule E attached hereto; (iii) no Debtor has used any name other than that stated in the preamble
hereto or as set forth on Schedule E for the preceding five years; and (iv) no entity has merged into any Debtor or been
acquired by any Debtor within the past five years except as set forth on Schedule E.

 

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(aa)         At
any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the security interest created hereby, the applicable Debtor shall deliver
such Collateral to the Agent.

 

(bb)         Each
Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Agent regarding the Pledged
Interests consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section 8-106
(or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement (or one that
would confer “control” within the meaning of Article 8 of the UCC) with any other person or entity.

 

(cc)         Each
Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent, or, if such delivery is not
possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created
by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the applicable Debtor shall cause the
underlying chattel paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto).

 

(dd)         If
there is any investment property or deposit account included as Collateral that can be perfected by “control” through
an account control agreement, the applicable Debtor shall cause such an account control agreement, in form and substance in each
case satisfactory to the Agent, to be entered into and delivered to the Agent for the benefit of the Secured Parties.

 

(ee)         To
the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying
letter of credit to consent to an assignment of the proceeds thereof to the Secured Parties.

 

(ff)         To
the extent that any Collateral is in the possession of any third party, the applicable Debtor shall join with the Agent in notifying
such third party of the Secured Parties’ security interest in such Collateral and shall use its best efforts to obtain an
acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory
to the Agent.

 

(gg)         If
any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly notify the Secured Parties in
a writing signed by such Debtor of the particulars thereof and grant to the Secured Parties in such writing a security interest
therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory
to the Agent.

 

(hh)         Each
Debtor shall immediately provide written notice to the Secured Parties of any and all accounts which arise out of contracts with
any governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests in
such accounts and proceeds thereof, shall execute and deliver to the Agent an assignment of claims for such accounts and cooperate
with the Agent in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar federal,
state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts and proceeds
thereof.

 

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(ii)         Each
Debtor shall cause each subsidiary of such Debtor to immediately become a party
hereto (an “Additional Debtor”), by executing and delivering an Additional Debtor Joinder in substantially the form
of Annex A attached hereto and comply with the provisions hereof applicable to the Debtors. Concurrent therewith, the Additional
Debtor shall deliver replacement schedules for, or supplements to all other Schedules to (or referred to in) this Agreement, as
applicable, which replacement schedules shall supersede, or supplements shall modify, the Schedules then in effect. The Additional
Debtor shall also deliver such opinions of counsel, authorizing resolutions, good standing certificates, incumbency certificates,
organizational documents, financing statements and other information and documentation as the Agent may reasonably request. Upon
delivery of the foregoing to the Agent, the Additional Debtor shall be and become a party to this Agreement with the same rights
and obligations as the Debtors, for all purposes hereof as fully and to the same extent as if it were an original signatory hereto
and shall be deemed to have made the representations, warranties and covenants set forth herein as of the date of execution and
delivery of such Additional Debtor Joinder, and all references herein to the “Debtors” shall be deemed to include each
Additional Debtor.

 

(jj)         Each
Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Debentures.

 

(kk)         Each
Debtor shall register the pledge of the applicable Pledged Securities on the books of such Debtor. Each Debtor shall notify each
issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Parties on
the books of such issuer. Further, except with respect to certificated securities delivered to the Agent, the applicable Debtor
shall deliver to Agent an acknowledgement of pledge (which, where appropriate, shall comply with the requirements of the relevant
UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement
shall confirm that: (a) it has registered the pledge on its books and records; and (b) at any time directed by Agent during the
continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into the name of
any designee of Agent, will take such steps as may be necessary to effect the transfer, and will comply with all other instructions
of Agent regarding such Pledged Securities without the further consent of the applicable Debtor.

 

(ll)         In
the event that, upon an occurrence of an Event of Default, Agent shall sell all or any of the Pledged Securities to another party
or parties (herein called the “Transferee”) or shall purchase
or retain all or any of the Pledged Securities, each Debtor shall, to the extent applicable: (i) deliver to Agent or the Transferee,
as the case may be, the articles of incorporation, bylaws, minute books, stock certificate books, corporate seals, deeds, leases,
indentures, agreements, evidences of indebtedness, books of account, financial records and all other Organizational Documents and
records of the Debtors and their direct and indirect subsidiaries; (ii) use its best efforts to obtain resignations of the persons
then serving as officers and directors of the Debtors and their direct and indirect subsidiaries, if so requested; and (iii) use
its best efforts to obtain any approvals that are required by any governmental or regulatory body in order to permit the sale of
the Pledged Securities to the Transferee or the purchase or retention of the Pledged Securities by Agent and allow the Transferee
or Agent to continue the business of the Debtors and their direct and indirect subsidiaries.

 

 

    	12

    	 

    

 

(mm)         Without
limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) cause to be registered
at the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated hereby with
respect to all Intellectual Property registered at the United States Copyright Office or United States Patent and Trademark Office
to be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires (whether absolutely or by license)
or creates any additional material Intellectual Property.

 

(nn)         Each
Debtor will from time to time, at the joint and several expense of the Debtors, promptly execute and deliver all such further instruments
and documents, and take all such further action as may be necessary or desirable, or as the Agent may reasonably request, in order
to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Parties to exercise
and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this
Agreement.

 

(oo)         Schedule
F attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights,
and domain names owned by any of the Debtors as of the date hereof. Schedule F lists all material licenses in favor of any
Debtor for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks
of the Debtors have been duly recorded at the United States Patent and Trademark Office and all material copyrights of the Debtors
have been duly recorded at the United States Copyright Office.

 

(pp)         Except
as set forth on Schedule G attached hereto, none of the account debtors or other persons or entities obligated on any of
the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state or local
statute or rule in respect of such Collateral.

 

(qq)         Until
the Obligations shall have been paid and performed in full, the Company covenants that it shall promptly direct any direct or indirect
subsidiary of the Company formed or acquired after the date hereof to enter into a Subsidiary Guarantee in favor of the Secured
Party, in the form of Exhibit F to the Purchase Agreement.

 

5.           Effect
of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership
interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests
upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets
of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement
of any of Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights
notwithstanding any provisions in the Organizational Documents or agreements to which any Debtor is subject or to which any Debtor
is party.

 

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6.           Defaults.
The following events shall be “Events of Default”:

 

(a)          The
occurrence of an Event of Default (as defined in the Debentures) under the Debentures;

 

(b)          Any
representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c)          The
failure by any Debtor to observe or perform any of its obligations hereunder for five (5) days after delivery to such Debtor of
notice of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within such
time frame and such Debtor is using best efforts to cure same in a timely fashion; or

 

(d)          If
any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental authority having
jurisdiction over any Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor shall deny that any
Debtor has any liability or obligation purported to be created under this Agreement.

 

7.           Duty
To Hold In Trust.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter, each Debtor shall, upon receipt of any revenue, income,
dividend, interest or other sums subject to the Security Interests, whether payable pursuant to the Debentures or otherwise,
or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same
in trust for the Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured
Parties, pro-rata in proportion to their respective then-currently outstanding principal amount of Debentures for application to
the satisfaction of the Obligations (and if any Debenture is not outstanding, pro-rata in proportion to the initial purchases of
the remaining Debentures).

 

(b)          If
any Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation, shares
of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in connection with any reorganization of such Debtor or any of
its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in
exchange for, such Pledged Securities or otherwise), such Debtor agrees to (i) accept the same as the agent of the Secured Parties;
(ii) hold the same in trust on behalf of and for the benefit of the Secured Parties; and (iii) to deliver any and all certificates
or instruments evidencing the same to Agent on or before the close of business on the fifth business day following the receipt
thereof by such Debtor, in the exact form received together with the Necessary Endorsements, to be held by Agent subject to the
terms of this Agreement as Collateral.

 

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8.           Rights
and Remedies Upon Default.

 

(a)       Upon
the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Agent, shall have the
right to exercise all of the remedies conferred hereunder and under the Debentures, and the Secured Parties shall have all the
rights and remedies of a secured party under the UCC. Without limitation, the Agent, for the benefit of the Secured Parties, shall
have the following rights and powers:

 

(i)          The
Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any
person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor shall
assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at such Debtor's
premises or elsewhere, and make available to the Agent, without rent, all of such Debtor’s respective premises and facilities
for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable form.

 

(ii)         Upon
notice to the Debtors by Agent, all rights of each Debtor to exercise the voting and other consensual rights which it would otherwise
be entitled to exercise and all rights of each Debtor to receive the dividends and interest which it would otherwise be authorized
to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive, for the benefit of the Secured Parties,
any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent’s
discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent shall have the right (but
not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owner thereof, including,
without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection with a merger,
reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or any Debtor or any
of its direct or indirect subsidiaries.

 

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(iii)        The
Agent shall have the right to operate the business of each Debtor using the Collateral and shall have the right to assign, sell,
lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with
or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such
time or times and at such place or places, and upon such terms and conditions as the Agent may deem commercially reasonable, all
without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any
Debtor or right of redemption of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer
of Collateral, the Agent, for the benefit of the Secured Parties, may, unless prohibited by applicable law which cannot be waived,
purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and
equities of any Debtor, which are hereby waived and released.

 

(iv)        The
Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights against such
account debtors and obligors.

 

(v)         The
Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other person
or entity holding any investment property to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.

 

(vi)        The
Agent may (but is not obligated to) transfer any or all Intellectual Property registered in the name of any Debtor at the United
States Patent and Trademark Office and/or Copyright Office into the name of the Secured Parties or any designee or any purchaser
of any Collateral.

 

(b)          The
Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit, the Debtors will
only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights that it may have
to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder, including, without
limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its rights and
remedies with respect thereto.

 

(c)          For
the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by agreement
or applicable law, each Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured Parties, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to such Debtor) to use, license or sublicense
following an Event of Default, any Intellectual Property now owned or hereafter acquired by such Debtor, and wherever the same
may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored
and to all computer software and programs used for the compilation or printout thereof.

 

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9.          Applications
of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on
account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding,
storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses incurred by the Agent
in enforcing the Secured Parties’ rights hereunder and in connection with collecting, storing and disposing of the Collateral,
and then to satisfaction of the Obligations pro rata among the Secured Parties (based on then-outstanding principal amounts of
Debentures at the time of any such determination), and to the payment of any other amounts required by applicable law, after which
the Secured Parties shall pay to the applicable Debtor any surplus proceeds. If, upon the sale, license or other disposition of
the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Parties are legally entitled, the
Debtors will be liable for the deficiency, together with interest thereon, at the rate of 18% per annum or the lesser amount permitted
by applicable law (the “Default Rate”), and the reasonable fees of any attorneys employed by the Secured Parties
to collect such deficiency. To the extent permitted by applicable law, each Debtor waives all claims, damages and demands against
the Secured Parties arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross
negligence or willful misconduct of the Secured Parties as determined by a final judgment (not subject to further appeal) of a
court of competent jurisdiction. For clarity, notwithstanding anything to the contrary contained in this Agreement, the Debentures
or any agreement, instrument or document executed in connection therewith and irrespective of: (i) the time of any advance or other
extension of credit or the incurrence of any of the indebtedness, obligations or liabilities with respect to the Obligations; (ii)
the time, order or method of attachment or perfection of the security interests created in favor of the Secured Parties, (iii)
the time or order of filing or recording of financing statements or other documents filed or recorded to perfect security interests
in any Collateral; (iv) anything contained in any filing or agreement to which any Secured Party now or hereafter may be a party;
(v) the rules for determining perfection or priority under the Uniform Commercial Code or any other law governing the relative
priorities of secured creditors; (vi) the actual order of enforcement; and/or (vii) the filing by or against any Debtor under or
pursuant to any applicable law of any proceedings relating to bankruptcy, insolvency or reorganization or relief of debtors, and
all references herein to any Debtor shall apply to it as debtor in possession under applicable laws relating to any of the foregoing
(“Insolvency Laws”) or to its trustee, receiver, custodian, liquidator or other person with similar powers under Insolvency
Laws, and all determinations of priority and/or allocation of payments or proceeds between the parties shall continue to apply
after such filing on the same basis as prior to such filing, each Secured Party acknowledges that (A) each of the other Secured
Parties has a valid security interest in the Collateral, (B) the security interest of each Secured Party in any Collateral shall
rank pari passu with each other Secured Party hereunder; and (C) all payments received from any Debtor and all proceeds
of the Collateral shall be applied in accordance with this Section.

 

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10.         Securities
Law Provision. Each Debtor recognizes that Agent may be limited in its ability to effect a sale to the public of all or part
of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state
securities laws (collectively, the “Securities Laws”), and may
be compelled to resort to one or more sales to a restricted group of purchasers who may be required to agree to acquire the Pledged
Securities for their own account, for investment and not with a view to the distribution or resale thereof. Each Debtor agrees
that sales so made may be at prices and on terms less favorable than if the Pledged Securities were sold to the public, and that
Agent has no obligation to delay the sale of any Pledged Securities for the period of time necessary to register the Pledged Securities
for sale to the public under the Securities Laws. Each Debtor shall cooperate with Agent in its attempt to satisfy any requirements
under the Securities Laws (including, without limitation, registration thereunder if requested by Agent) applicable to the sale
of the Pledged Securities by Agent.

 

11.         Costs
and Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any
filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements,
partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Agent.
The Debtors shall also pay all other claims and charges which in the reasonable opinion of the Agent is reasonably likely to prejudice,
imperil or otherwise affect the Collateral or the Security Interests therein. The Debtors will also, upon demand, pay to the Agent
the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and
agents, which the Agent, for the benefit of the Secured Parties, may incur in connection with the creation, perfection, protection,
satisfaction, foreclosure, collection or enforcement of the Security Interest and the preparation, administration, continuance,
amendment or enforcement of this Agreement and pay to the Agent the amount of any and all reasonable expenses, including the reasonable
fees and expenses of its counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties, and the
Secured Parties may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the
sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the
rights of the Secured Parties under the Debentures. Until so paid, any fees payable hereunder shall be added to the principal amount
of the Debentures and shall bear interest at the Default Rate.

 

12.         Responsibility
for Collateral. The Debtors assume all liabilities and responsibility in connection with all Collateral, and the Obligations
shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability
for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any Secured Party (i) has any duty
(either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights relating
to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) each Debtor shall
remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed by such Debtor
thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability under any such contract or agreement
by reason of or arising out of this Agreement or the receipt by the Agent or any Secured Party of any payment relating to any of
the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to perform any of the obligations of any Debtor
under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment received by
the Agent or any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any
such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to the Agent or to which the Agent or any Secured Party may be entitled at any time
or times.

 

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13.         Security
Interests Absolute. All rights of the Secured Parties and all obligations of the Debtors hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement, the Debentures or any agreement entered into in
connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance
of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure
from the Debentures or any other agreement entered into in connection with the foregoing; (c) any exchange, release or nonperfection
of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any
guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain, adjust, settle
and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any
other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor, or a discharge of all
or any part of the Security Interests granted hereby. Until the Obligations shall have been paid and performed in full, the rights
of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation, the running
of the statute of limitations or bankruptcy. Each Debtor expressly waives presentment, protest, notice of protest, demand, notice
of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment received
by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference
or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to
any party other than the Secured Parties, then, in any such event, each Debtor’s obligations hereunder shall survive cancellation
of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement,
but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. Each Debtor waives
all right to require the Secured Parties to proceed against any other person or entity
or to apply any Collateral which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other
remedy. Each Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured
hereby.

 

14.         Term
of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Debentures
have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that all indemnities
of the Debtors contained in this Agreement (including, without limitation, Annex B hereto) shall survive and remain operative and
in full force and effect regardless of the termination of this Agreement.

 

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15.         Power
of Attorney; Further Assurances.

 

(a)          Each
Debtor authorizes the Agent, and does hereby make, constitute and appoint the Agent and its officers, agents, successors or assigns
with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of the Agent
or such Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts,
money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect
of the Collateral that may come into possession of the Agent; (ii) to sign and endorse any financing statement pursuant to the
UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge
taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv)
to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual
Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Agent, and at the expense
of the Debtors, at any time, or from time to time, to execute and deliver any and all documents and instruments and to do all acts
and things which the Agent deems necessary to protect, preserve and realize upon the Collateral and the Security Interests granted
therein in order to effect the intent of this Agreement and the Debentures all as fully and effectually as the Debtors might or
could do; and each Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power
of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of
the Obligations shall be outstanding. The designation set forth herein shall be deemed
to amend and supersede any inconsistent provision in the Organizational Documents or other documents or agreements to which any
Debtor is subject or to which any Debtor is a party. Without limiting the generality of the foregoing, after the occurrence
and during the continuance of an Event of Default, each Secured Party is specifically authorized to execute and file any applications
for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property with the United
States Patent and Trademark Office and the United States Copyright Office.

 

(b)          On
a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper
filing and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule C
attached hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably
requested by the Agent, to perfect the Security Interests granted hereunder and otherwise to carry out the intent and purposes
of this Agreement, or for assuring and confirming to the Agent the grant or perfection of a perfected security interest in all
the Collateral under the UCC.

 

(c)          Each
Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact, with full authority in the place and instead
of such Debtor and in the name of such Debtor, from time to time in the Agent’s discretion, to take any action and to execute
any instrument which the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing,
in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Collateral
without the signature of such Debtor where permitted by law, which financing statements may (but need not) describe the Collateral
as “all assets” or “all personal property” or words of like import, and ratifies all such actions taken
by the Agent. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter
as long as any of the Obligations shall be outstanding.

 

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16.     Notices.
All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement
(as such term is defined in the Debentures).

 

17.     Other
Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the guarantee,
endorsement or property of any other person, firm, corporation or other entity, then the Agent shall have the right, in its sole
discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying
or affecting any of the Secured Parties’ rights and remedies hereunder.

 

18.     Appointment
of Agent. The Secured Parties hereby appoint Alpha Capital Anstalt to act as their agent (“Alpha” or “Agent”)
for purposes of exercising any and all rights and remedies of the Secured Parties hereunder. Such appointment shall continue until
revoked in writing by a Majority in Interest, at which time a Majority in Interest
shall appoint a new Agent, provided that Alpha may not be removed as Agent unless Alpha shall then hold less than $50,000 in principal
amount of Debentures; provided,
further, that such removal may occur only if the other Secured Parties shall
then hold not less than an aggregate of $500,000 in principal amount of Debentures.  The Agent shall have the rights, responsibilities
and immunities set forth in Annex B hereto.

 

19.     Miscellaneous.

 

(a)          No
course of dealing between the Debtors and the Secured Parties, nor any failure to exercise, nor any delay in exercising, on the
part of the Secured Parties, any right, power or privilege hereunder or under the Debentures shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

 

(b)          All
of the rights and remedies of the Secured Parties with respect to the Collateral, whether established hereby or by the Debentures
or by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

 

(c)          This
Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters,
which the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto.
No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in
the case of an amendment, by the Debtors and the Secured Parties holding 51% or more of the principal amount of Debentures then
outstanding, or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought.

 

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

 

(e)          No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f)          This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company
and the Guarantors may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each
Secured Party (other than by merger). Any Secured Party may assign any or all of its rights under this Agreement to any Person
(as defined in the Purchase Agreement) to whom such Secured Party assigns or transfers any Obligations, provided such transferee
agrees in writing to be bound, with respect to the transferred Obligations, by the provisions of this Agreement that apply to the
“Secured Parties.”

 

(g)          Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order
to carry out the provisions and purposes of this Agreement.

 

(h)          Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the
internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Except to the extent mandatorily
governed by the jurisdiction or situs where the Collateral is located, each Debtor agrees that all proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and the Debentures (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan. Except to the extent mandatorily
governed by the jurisdiction or situs where the Collateral is located, each Debtor hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to
process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby.

 

    	22

    	 

    

 

(i)          This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature
is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(j)          All
Debtors shall jointly and severally be liable for the obligations of each Debtor to the Secured Parties hereunder.

 

(k)          Each
Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured Parties and their respective partners, members, shareholders,
officers, directors, employees and agents (and any other persons with other titles that have similar functions) (collectively,
“Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and
expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the foregoing) imposed
on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise from this Agreement
or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses which result from
the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision of a court of competent
jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification provision in
the Debentures, the Purchase Agreement (as such term is defined in the Debentures) or any other agreement, instrument or other
document executed or delivered in connection herewith or therewith.

 

(l)          Nothing
in this Agreement shall be construed to subject Agent or any Secured Party to liability as a partner in any Debtor or any if its
direct or indirect subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect subsidiaries
that is a limited liability company, nor shall Agent or any Secured Party be deemed to have assumed any obligations under any partnership
agreement or limited liability company agreement, as applicable, of any such Debtor or any of its direct or indirect subsidiaries
or otherwise, unless and until any such Secured Party exercises its right to be substituted for such Debtor as a partner or member,
as applicable, pursuant hereto.

 

    	23

    	 

    

 

(m)          To
the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or member, as applicable, of any Debtor or any direct or indirect subsidiary of any Debtor or
compliance with any provisions of any of the Organizational Documents, the Debtors hereby grant such consent and approval and waive
any such noncompliance with the terms of said documents.

 

[SIGNATURE PAGES FOLLOW]

 

    	24

    	 

    

 

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

 

	t3 motion, inc.
	 
	By:	 
	 	Name:
	 	Title:

 

	R3 Motion, Inc.
	 
	By:	 
	 	Name:
	 	Title:

 

	T3 Motion  Europe Limited
	 
	By:	 
	 	Name:
	 	Title:

 

	t3 motion, inc.
	 
	By:	 
	 	Name:
	 	Title:

 

	R3 Motion, Inc.
	 
	By:	 
	 	Name:
	 	Title:

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    	25

    	 

    

 

[SIGNATURE PAGE OF HOLDERS TO TTTM SA]

 

Name of Investing Entity: __________________________

 

Signature of Authorized Signatory of
Investing entity: _________________________

 

Name of Authorized Signatory: _________________________

 

Title of Authorized Signatory: __________________________

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    	26

    	 

    

 

SCHEDULE A

 

Principal Place of Business of Debtors: 2990 Airway Ave. Bldg
A Costa Mesa, CA 92626.

 

Facility is leased from Land Trust Associates on a month-to-month
basis. The Company does not own any real estate.

 

Locations Where Collateral is Located or Stored:

 

		1)	Primary location: 2990 Airway Ave. Bldg A Costa Mesa, CA 92626

		2)	Demonstration units (Capitalized as fixed assets) with net book value of <$25,000 located at various customer sites, at
a salesperson’s house, and/or in transit in the ordinary course of business.

		3)	Deposits and prepayments on inventory to be received may be located at vendor locations (various) from time-to-time in the
ordinary course of business.

 

SCHEDULE B

 

None

 

SCHEDULE C

 

JMJ Financial UCC/Security Interest

Perry Trebatch UCC/Security Interest

 

Unfiled but possible State of California sales/use tax lien
for unpaid sales/use taxes and unfiled but possible County of Orange/City of Costa Mesa property tax lien for unpaid personal property
taxes in a combined amount less than $50,000 relating to 2012 taxes. All property tax liens could be remedied from existing cash
balances, if required.

 

SCHEDULE D

Legal Names and Organizational Identification
Numbers

 

T3 Motion, Inc. FEIN: 20-4987549 (Delaware)

 

R3 Motion, Inc. FEIN: 45-3049081 (Delaware)

 

T3 Motion Europe Limited: Co. No 6220327 (UK)

 

    	27

    	 

    

 

SCHEDULE E

Names; Mergers and Acquisitions

 

T3 Motion, Inc.

R3 Motion, Inc.

T3 Motion Europe Limited

 

No Mergers or Acquisitions

 

SCHEDULE F

Intellectual Property

 

See attached Schedule F for IP status reports

 

SCHEDULE G

Account Debtors

List of Indebtedness:

	Secured Note Payable to JMJ Financial due December 31, 2012	 	 	525,000	(a)
	 	 	 	 	 
	Secured Note Payable to Perry Trebatch, due November 2012	 	 	400,000	(a)
	 	 	 	 	 
	Unsecured Note payable to Alfonso and Mercy Cordero Family Trust, 12% interest rate, due April 25, 2013	 	 	300,000	(a)
	 	 	 	 	 
	Unsecured Note payable to Alfonso and Mercy Cordero Charitable Remainder Family Trust, 10% interest, due October 1, 2013.	 	 	1,000,000	(b)

 

(a)  Note expected to be converted into this financing transaction

(b)  Note
to be extended to a December 31, 2013 due date

 

None of these Debtors are a governmental
authority

 

SCHEDULE H

Pledged Securities

 

100% of the Common Stock of R3 Motion, Inc.

100% of the Common Stock of T3 Motion Europe Ltd.

 

    	28

    	 

    

 

ANNEX A

to

SECURITY

AGREEMENT

 

FORM OF
ADDITIONAL DEBTOR JOINDER

 

Security Agreement dated as of November
26, 2012 made by

T3 Motion, Inc.

and its subsidiaries party thereto from
time to time, as Debtors

to and in favor of

the Secured Parties identified therein (the
“Security Agreement”)

 

Reference is made to
the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have the meanings
given to such terms in, or by reference in, the Security Agreement.

 

The undersigned hereby
agrees that upon delivery of this Additional Debtor Joinder to the Secured Parties referred to above, the undersigned shall (a)
be an Additional Debtor under the Security Agreement, (b) have all the rights and obligations of the Debtors under the Security
Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to have made
the representations and warranties set forth therein as of the date of execution and delivery of this Additional Debtor Joinder.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY INTEREST
IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS
SET FORTH THEREIN.

 

Attached hereto are
supplemental and/or replacement Schedules to the Security Agreement, as applicable.

 

An executed copy of
this Joinder shall be delivered to the Secured Parties, and the Secured Parties may rely on the matters set forth herein on or
after the date hereof. This Joinder shall not be modified, amended or terminated without the prior written consent of the Secured
Parties.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the undersigned has
caused this Joinder to be executed in the name and on behalf of the undersigned.

 

	 	R3 Motion, Inc.	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:	 

 

Dated:

 

    	 

    	 

    

 

 

IN WITNESS WHEREOF, the undersigned has
caused this Joinder to be executed in the name and on behalf of the undersigned.

 

	 	T3 Motion Europe Limited.	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:	 

 

Dated:

 

    	 

    	 

    

 

ANNEX B

to

SECURITY

AGREEMENT

 

THE AGENT

 

1. Appointment.
The Secured Parties (all capitalized terms used herein and not otherwise defined shall have the respective meanings provided
in the Security Agreement to which this Annex B is attached (the "Agreement")), by their acceptance of the benefits
of the Agreement, hereby designate Alpha Capital Anstalt (“Alpha” or “Agent”) as the Agent
to act as specified herein and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize the Agent to take
such action on its behalf under the provisions of the Agreement and any other Transaction Document (as such term is defined in
the Purchase Agreement) and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated
to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. The Agent
may perform any of its duties hereunder by or through its agents or employees.

 

2. Nature of Duties.
The Agent shall have no duties or responsibilities except those expressly set forth in the Agreement. Neither the Agent nor any
of its partners, members, shareholders, officers, directors, employees or agents shall be liable for any action taken or omitted
by it as such under the Agreement or hereunder or in connection herewith or therewith, be responsible for the consequence of any
oversight or error of judgment or answerable for any loss, unless caused solely by its or their gross negligence or willful misconduct
as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Agent
shall be mechanical and administrative in nature; the Agent shall not have by reason of the Agreement or any other Transaction
Document a fiduciary relationship in respect of any Debtor or any Secured Party; and nothing in the Agreement or any other Transaction
Document, expressed or implied, is intended to or shall be so construed as to impose upon the Agent any obligations in respect
of the Agreement or any other Transaction Document except as expressly set forth herein and therein.

 

    	 

    	 

    

 

3. Lack of Reliance
on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it deems appropriate, has
made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Company and
its subsidiaries in connection with such Secured Party’s investment in the Debtors, the creation and continuance of the Obligations,
the transactions contemplated by the Transaction Documents, and the taking or not taking of any action in connection therewith,
and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of the value of the Collateral from
time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any Secured
Party with any credit, market or other information with respect thereto, whether coming into its possession before any Obligations
are incurred or at any time or times thereafter. The Agent shall not be responsible to the Debtors or any Secured Party for any
recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered
in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectibility,
priority or sufficiency of the Agreement or any other Transaction Document, or for the financial condition of the Debtors or the
value of any of the Collateral, or be required to make any inquiry concerning either the performance or observance of any of the
terms, provisions or conditions of the Agreement or any other Transaction Document, or the financial condition of the Debtors,
or the value of any of the Collateral, or the existence or possible existence of any default or Event of Default under the Agreement,
the Debentures or any of the other Transaction Documents.

 

4. Certain Rights
of the Agent. The Agent shall have the right to take any action with respect to the Collateral, on behalf of all of the Secured
Parties. To the extent practical, the Agent shall request instructions from the Secured Parties with respect to any material act
or action (including failure to act) in connection with the Agreement or any other Transaction Document, and shall be entitled
to act or refrain from acting in accordance with the instructions of a Majority in Interest; if such instructions are not provided
despite the Agent’s request therefor, the Agent shall be entitled to refrain from such act or taking such action, and if
such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions to be taken
by the Agent; and the Agent shall not incur liability to any person or entity by reason of so refraining. Without limiting the
foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent as a result of the Agent acting or
refraining from acting hereunder in accordance with the terms of the Agreement or any other Transaction Document, and the Debtors
shall have no right to question or challenge the authority of, or the instructions given to, the Agent pursuant to the foregoing
and (b) the Agent shall not be required to take any action which the Agent believes (i) could reasonably be expected to expose
it to personal liability or (ii) is contrary to this Agreement, the Transaction Documents or applicable law.

 

5. Reliance. The
Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, statement, certificate,
telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made
by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the other Transaction Documents
and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining to this Agreement and the
other Transaction Documents and its duties thereunder, upon advice of other experts selected by it. Anything to the contrary notwithstanding,
the Agent shall have no obligation whatsoever to any Secured Party to assure that the Collateral exists or is owned by the Debtors
or is cared for, protected or insured or that the liens granted pursuant to the Agreement have been properly or sufficiently or
lawfully created, perfected, or enforced or are entitled to any particular priority.

 

    	 

    	 

    

 

6. Indemnification.
To the extent that the Agent is not reimbursed and indemnified by the Debtors, the Secured Parties will jointly and severally reimburse
and indemnify the Agent, in proportion to their initially purchased respective principal amounts of Debentures, from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of
any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Agent in performing its duties hereunder
or under the Agreement or any other Transaction Document, or in any way relating to or arising out of the Agreement or any other
Transaction Document except for those determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction
to have resulted solely from the Agent's own gross negligence or willful misconduct. Prior to taking any action hereunder as Agent,
the Agent may require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary to protect
the Agent for costs and expenses associated with taking such action.

 

7. Resignation by
the Agent. 

 

(a) The Agent
may resign from the performance of all its functions and duties under the Agreement and the other Transaction Documents at any
time by giving 30 days' prior written notice (as provided in the Agreement) to the Debtors and the Secured Parties. Such resignation
shall take effect upon the appointment of a successor Agent pursuant to clauses (b) and (c) below.

 

(b) Upon
any such notice of resignation, the Secured Parties, acting by a Majority in Interest,
shall appoint a successor Agent hereunder.

 

(c) If a
successor Agent shall not have been so appointed within said 30-day period, the Agent shall then appoint a successor Agent who
shall serve as Agent until such time, if any, as the Secured Parties appoint a successor Agent as provided above. If a successor
Agent has not been appointed within such 30-day period, the Agent may petition any court of competent jurisdiction or may interplead
the Debtors and the Secured Parties in a proceeding for the appointment of a successor Agent, and all fees, including, but not
limited to, extraordinary fees associated with the filing of interpleader and expenses associated therewith, shall be payable by
the Debtors on demand.

 

8. Rights with respect
to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that it shall not, and shall
not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any other agreement
or otherwise (other than pursuant to this Agreement), or take or institute any action against the Agent or any of the other Secured
Parties in respect of the Collateral or its rights hereunder (other than any such action arising from the breach of this Agreement)
and (ii) that such Secured Party has no other rights with respect to the Collateral other than as set forth in this Agreement and
the other Transaction Documents. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor
Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent and
the retiring Agent shall be discharged from its duties and obligations under the Agreement.  After any retiring Agent’s
resignation or removal hereunder as Agent, the provisions of the Agreement including this Annex B shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Agent.EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT
(this “Agreement”),dated November 26, 2012, between T3 Motion, Inc. (the “Company”) and Rod
Keller (“Executive”) (collectively, the “Parties” and, each, a “Party”).

 

WHEREAS, the Company
desires to employ Executive, and Executive desires to accept such employment, on the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, on
the basis of the foregoing premises and in consideration of the mutual covenants and agreements contained herein, the Parties agree
as follows:

 

1.           Employment,
Title; Duties and Board Service. The Company hereby agrees to employ Executive, and Executive hereby accepts employment with
the Company, on the terms and subject to the conditions set forth herein. During the Employment Period (as defined in Section 2
below), Executive shall serve as Chief Executive Officer (“CEO”) of the Company and shall report exclusively
and directly to the Board of Directors of the Company (the “Board”). In his capacity as CEO, Executive shall
perform the duties consistent with those typical of a CEO of a publically traded company and such other duties commensurate with
his position as shall be specified or designated by the Board from time to time. The principal place of performance by Executive
of his duties hereunder shall be the Company’s headquarters in Costa Mesa, CA, although Executive may be required to reasonably
travel outside of the area where the Company’s headquarters is located in connection with the operations and affairs of the
Company. Additionally, Executive shall be appointed to the Board to serve until his successor is duly elected and qualified.

 

2.           Term.
Executive’s employment hereunder shall commence on November 26, 2012 (the “Commencement Date”) and shall
continue for a period of two (2) years thereafter (the “Initial Term”), subject to earlier termination exclusively
as provided for in Section 6 below, and subject to extension as provided in the following sentence. Following the Initial Term,
provided Notice of Non-Renewal has not been given (as defined in and in accordance with the provisions of Section 6.6 below), Executive’s
employment hereunder shall automatically be extended for successive, additional one-year periods (each a “Renewal Term”),
subject to earlier termination exclusively as provided for in Section 6 below. For the purposes of this Agreement, the “Term”
at any given time shall mean the Initial Term as it may have been extended by one or more Renewal Terms as of such time (without
regard to whether Executive’s employment is terminated prior to the end of such Term), and the “Employment Period”
means the period of Executive’s employment hereunder (regardless of whether such period ends prior to the end of the Term
and regardless of the reason for Executive’s termination of employment hereunder).

 

3.           Compensation.
During the Employment Period only (unless otherwise expressly provided for herein), Executive shall be entitled to the following
compensation and benefits.

 

3.1           Salary.
Executive shall receive a base salary (the “Base Salary”) payable in substantially equal installments in accordance
with the Company’s normal payroll practices and procedures in effect from time to time and subject to applicable withholdings
and deductions. Executive’s starting Base Salary shall be at the annual rate of $225,000.

 

    	 	 	Executive Initials: ___
Company Initials: ___

    	 

    

 

3.2           Bonus.
Executive shall be eligible to participate in the Company’s bonus plan (the “Bonus Plan”). Participants
in the Bonus Plan shall be eligible for annual bonus awards (each, a “Bonus”) based on the terms and conditions
thereof, which shall include annual performance goals for the Company and/or Executive to be established by the Board or its Compensation
Committee, in consultation with Executive (“Performance Goals”). The Performance Goals for the calendar year
in which the Commencement Date occurs shall be established within 120 days of the Commencement Date, and the Performance Goals
for subsequent calendar years shall be established by no later than February 15th of each such year. In the event that the Bonus
Plan shall result in cash compensation to the Executive, the target bonus (“Target Bonus”) shall not be less than $50,000
subject to final Board approval at the time of Target Bonus issuance and cash availability. To be eligible for a Bonus, Executive
must be employed by the Company at the time such Bonus is paid.

 

3.3           Benefits.
Executive shall have the right to receive or participate in all employee benefit programs and perquisites established from time
to time by the Company on a basis that is no less favorable than such programs and perquisites are provided by the Company to the
Company’s other senior executives, subject to the eligibility requirements and other terms of such programs and perquisites,
and subject to the Company’s right to amend, terminate or take other action with respect to any such programs and perquisites.
The Company will also reimburse Executive $4,100/month for an apartment during the term of this agreement.

 

3.4           Stock
Options. Stock Options. The Company will grant to the Executive an option to purchase 3,000,000 of the shares of the
Company’s common stock (the “First Option”), with a date of issuance no later than ten (10) business days
from the Commencement Date (the “Grant Date”).The grant is subject to all of the terms of the Company’s 2010
Stock Incentive Plan. Subject to such terms, sixteen and one half percent (16.5%) of the First Option will vest immediately on
the Grant Date, eight and one half percent (8.5%) will vest on April 1, 2013 and the remaining portion of the First Option will
vest in 24 equal and consecutive monthly installments commencing on the date that is thirteen months immediately after the Commencement
Date and ending on the third year anniversary of the Commencement Date. Secondly, upon completion within 14 months of the Commencement
Date of a $3,000,000 or greater financing or full exercise of the reinvestment rights described in the Securities Purchase Agreement
executed November 26, 2010 (“Future Financing”), the Company shall grant the executive an additional option to purchase
3,000,000 of the shares (subject to customary adjustments for reverse stock splits and similar events) of the Company’s common
stock (the “Second Option”). The Second Option grant is subject to all of the terms of the Company’s 2010
Stock Incentive Plan. Subject to such terms, twenty-five percent (25%) of the Second Option will vest immediately upon issuance,
and the remaining portion of the Second Option will vest in 24 equal and consecutive monthly installments commencing on the date
that is thirteen months immediately after the Commencement Date and ending on the third year anniversary of the Commencement Date.
Notwithstanding the foregoing, in the event of a Change in Control, all granted and unvested portions of the First and Second Option
shall thereupon become fully vested and exercisable. For the purposes of this Agreement, a “Change in Control”
shall mean approval by the Company’s shareholders of (i) a reorganization, merger, consolidation or other form of corporate
transaction or series of transactions, in each case, with respect to which persons who were the Company’s shareholders immediately
prior to such reorganization, merger or consolidation or other transaction do not, immediately thereafter, own more than 50% of
the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company’s
then outstanding voting securities, in substantially the same proportions as their ownership immediately prior to such reorganization,
merger, consolidation or other transaction, or (ii) the Company’s liquidation or dissolution or (iii) the sale of all or
substantially all of the Company’s assets (unless such reorganization, merger, consolidation or other corporate transaction,
liquidation, dissolution or sale is subsequently abandoned).

 

    	 	2	Executive Initials: ___
Company Initials: ___

    	 

    

 

3.5           Vacation
and Other Paid Time Off. Executive will be entitled to three (3)weeks of paid vacation per calendar year, as well as sick days
and any other paid time off, all in accordance with then current Company policy.

 

3.6           Required
Taxes and Withholdings. The Company shall withhold from any payments made to Executive (including, without limitation, those
made under this Agreement) all federal, state, local or other taxes and withholdings as shall be required pursuant to any law or
governmental regulation or ruling.

 

4.           Exclusivity
and Best Efforts. During the Employment Period, Executive shall (i) in all respects conform to and comply with the lawful directions
and instructions given to him by the Board; (ii) subject to the proviso below, devote his entire business time, energy and skill
to his services under this Agreement; (iii) use his best efforts to promote and serve the interests of the Company and to perform
his duties and obligations hereunder in a diligent, trustworthy, businesslike and efficient manner; (iv) comply with the policies
and practices established by the Company from time to time and made applicable to its employees generally or senior executives;
(v) not engage in any other business, profession or occupation for compensation or otherwise, except as provided below in this
Section 4; and (vi) not engage in any activity that, directly or indirectly, impairs or conflicts with the performance of his obligations
and duties to the Company, provided, however, that the foregoing shall not prevent the Executive from managing his personal
affairs and passive personal investments and participating in charitable, civic, educational, professional or community affairs,
so long as, in the aggregate, any such activities do not unreasonably interfere or conflict with the Executive’s duties hereunder
or create a potential business or fiduciary conflict with the Company, as reasonably determined by the Board.

 

5.           Reimbursement
for Expenses. Executive is authorized to incur reasonable expenses in the discharge of the services to be performed hereunder
in accordance with the Company’s expense reimbursement policies, as the same may be modified by the Company from time to
time in its sole and complete discretion (the “Reimbursement Policies”). Subject to the provisions of Section
19.2 below (“Section 409A Compliance”), the Company shall reimburse Executive for all such proper expenses upon presentation
by Executive of itemized accounts of such expenditures in accordance with the terms of the Reimbursement Policies.

 

6.           Termination.

 

6.1           Death.
Executive’s employment shall immediately and automatically be terminated upon Executive’s death.

 

    	 	3	Executive Initials: ___
Company Initials: ___

    	 

    

 

6.2           Disability.
The Board may terminate Executive’s employment due to a Disability by providing written notice of such termination and its
effective date to Executive. For the purposes of this Agreement, “Disability” shall mean Executive has been,
with or without a reasonable accommodation, unable to perform the essential functions of the services contemplated hereunder due
to a physical or mental injury, infirmity or incapacity for a period of 120 days, whether or not consecutive, during any twelve-month
period. Any dispute as to whether Executive is disabled shall be resolved by an independent physician, reasonably acceptable to
Executive and the Board, whose determination shall be final and binding upon both Executive and the Company. If the Board and Executive
are unable to agree on the selection of such an independent physician, each shall appoint a physician and those two physicians
shall select a third physician who shall make the determination of whether Executive has a Disability. Notwithstanding the foregoing,
in the event that, as a result of earlier absence because of mental or physical incapacity, Executive incurs a “separation
from service” within the meaning of such term under “Section 409A” (as defined in Section 19.2 below), Executive
shall on such date automatically be terminated from employment as a Disability termination.

 

6.3           For
Cause by the Company. The Board may terminate Executive’s employment for Cause, at any time, upon written notice describing
the nature of such Cause. For purposes of this Agreement, the term “Cause” means Executive’s (i) willful
misconduct; (ii) willful or gross neglect of his job duties; (iii) material failure to materially perform his job duties; (iv)
refusal to follow a lawful directive of the Board, or committee thereof, that is materially related to and consistent with the
provisions of Section 1 above; (v) material failure to materially comply with the Company’s policies and practices; (vi)
an act of moral turpitude, theft, fraud or dishonesty; (vii) commission of any felony or misdemeanor (other than minor traffic
violations or offenses of a comparable magnitude not involving dishonesty, fraud or breach of trust); (viii) material breach of
any material term of a contractual agreement between Executive and the Company, including, without limitation, this Agreement and
the Confidentiality Agreement (defined in Section 9 below); or (ix) a willful act that is (or reasonably would be expected to be)
materially damaging or detrimental to the Company; provided, however, that, in the event of conduct described in clauses
(iii), (iv), (v), (viii) and (ix) that is capable of being cured, Cause shall exist only if the Company provides written notice
to Executive reasonably detailing such grounds giving rise to Cause and Executive fails to cure such grounds for Cause to the reasonable
satisfaction of Employer within two (2) business days after delivery to Executive of such written notice, if reasonably curable
within two (2) business days, or, if not, then within such time as is reasonable under the circumstances, which in no event shall
exceed fifteen (15) calendar days. Executive’s date of termination in the event Executive’s employment is terminated
for Cause shall be the date on which Executive is given notice of termination under this Section 6.3, except, if a notice period
is required, Executive’s date of termination shall be upon the expiration of said notice period if Executive fails to previously
cure the grounds giving rise to Cause.

 

    	 	4	Executive Initials: ___
Company Initials: ___

    	 

    

 

6.4           Resignation
by Executive for Good Reason. Executive may resign his employment hereunder for Good Reason, at any time, provided that Executive
provides the Company with thirty30) days’ prior written notice of such resignation and such notice is given within thirty
(30) days of when Good Reason first arises. For the purpose of this Agreement, “Good Reason” means (i) a material
and substantial diminution in Executive’s duties, authority, or responsibilities that would be inconsistent with Executive’s
position (other than while Executive is temporarily physically or mentally incapacitated or as required by applicable law), (ii)
a material failure by the Company to pay Executive’s Base Salary as provided for herein; (iii) a material reduction of the
employment benefits provided for herein (which reduction is not applicable to other employees), (iv) a requirement that Executive
report to a person other than the Board; or (v) other material breach by the Company of a material provision of this Agreement;
provided(i) Executive has provided the Company with written notice reasonably detailing such breach within thirty (30) days
of the occurrence thereof or, if later, within thirty (30) days of the date upon which Executive first becomes aware of such breach,
and (ii) the Company fails to cure such breach within thirty (30) days after delivery to it of such written notice. Executive’s
date of termination in the event Executive resigns his employment for Good Reason shall be the effective date of Executive’s
notice of resignation for Good Reason, except that Company may waive all or any part of the above-referenced 10-day notice period
or of the 30-day cure period, in which event Executive’s date of termination shall be the last day of such notice or cure
period that has not been waived or, if the entire notice or cure period has been waived, the date that Executive provided notice
of the event giving rise to Good Reason or of his resignation for Good Reason.

 

6.5           Without
Cause or Without Good Reason. The Company may terminate Executive’s employment without Cause, at any time, with or without
prior notice, in its sole and complete discretion, by providing written notice of such termination and its effective date to Executive.
Likewise, Executive may terminate his employment without Good Reason upon sixty (60) days prior written notice to the Board without
any liability.

 

6.6           Expiration
of the Term. Provided Executive’s employment has not been previously terminated pursuant to the terms hereof, Executive’s
employment shall be terminated upon the expiration of the then current Term if one Party provides notice to the other of its decision
not to renew this Agreement upon the expiration of the then current Term (“Notice of Non-Renewal”). A Notice
of Non-Renewal by Executive shall be effective only if it is provided to the Company at least ninety (90) days prior to the end
of the then current Term.

 

7.           Effect
of Termination of Employment.

 

7.1           Generally.
In the event Executive’s employment with the Company terminates, Executive shall have no right to receive any compensation,
benefits or any other payments or remuneration of any kind from the Company, except as otherwise provided by this Section 7, in
Section 18 below, in any separate written agreement between Executive and the Company or as may be required by law. In the event
Executive’s employment with the Company is terminated for any reason, Executive shall receive the following (collectively,
the “Accrued Amounts”): (i) his Base Salary through and including the effective date of his termination of employment
(the “Termination Date”), which shall be paid on the Termination Date; (ii) payment for accrued unused vacation
pay, subject to the Company’s then current vacation policy, which shall also be paid on the Termination Date; (iii) payment
of any vested benefit due and owing under any employee benefit plan, policy or program pursuant to the terms of such plan, policy
or program; and (iv) payment for unreimbursed business expenses subject to, and in accordance with, the terms of Section 5 above.

 

    	 	5	Executive Initials: ___
Company Initials: ___

    	 

    

 

7.2           Severance
Benefits. In the event Executive’s employment is terminated by the Company pursuant to Section 6.5 above (without Cause)
or Section 6.6 above (by Notice of Non-Renewal), or by Executive pursuant to Section 6.4 hereof (Good Reason), in addition to the
Accrued Amounts, Executive shall be entitled to receive severance benefits (the “Severance Benefits”), subject
to and in accordance with the terms of this Section 7.2.

 

(a)          The
Severance Benefits shall consist of payment of an amount equal to Executive’s Base Salary immediately prior to the Termination
Date (“Executive’s Final Base Salary”),and provision of medical benefits (or cash equivalent if
necessary to comply with applicable health care discrimination laws), for the greater of (i) the period of time from the day after
the Termination Date through the last day of the Term or (ii) a six (6) month period, provided, however, that the aggregate
amount described in this Section 7.2(a) shall be reduced by the present value of any other cash severance or termination benefits
payable to Executive under any other plans, programs or arrangement of the Company, subject to compliance with Section 409A.

 

(b)          Provision
of the Severance Benefits is conditioned on (i) Executive’s continued compliance in all material respects with the terms
of this Agreement and of the Confidentiality Agreement (as defined in Section 9 below) that, in each case, survive termination
of Executive’s employment with the Company, and (ii) Executive signing (without revoking if such right is provided under
applicable law),within 60 days following the Termination Date, a separation agreement and release that is substantially in the
form attached as Exhibit A hereto (the “Separation Agreement”), which may be modified for changes in
the law. Payment of Executive’s Final Base Salary for the above period shall be paid in the form of salary continuation pursuant
to the terms and conditions of Section 3.1 above, commencing on a regularly scheduled payroll date of the Company within 90 days
following the Termination Date, provided that, if such 90-day period spans two calendar years, then such salary continuation
shall commence in the calendar year following the year in which the Termination Date occurs, and provided further that the first
payment shall include payment for any payroll dates between the Termination Date and the date of such payment.

 

8.           Notice
of Termination. In the event Executive elects to terminate his employment hereunder by resigning with Good Reason under Sections
6.4 above or by giving Notice of Non-Renewal under Section 6.6 above, Executive agrees to provide the Company with the applicable
prior written notice of termination required by such Sections (the “Notice Period”). The Board may, in their
discretion, place Executive on a paid leave of absence for all or any part of the Notice Period. Additionally, during the Notice
Period, (i) Executive shall perform any duties and responsibilities the Board reasonably request of Executive consistent with the
provisions of Section 1 hereof, and (ii) the Company retains the right to terminate Executive’s employment under Section
6.3 above.

 

9.           Confidentiality.
Contemporaneously with their respective execution of this Agreement, the Company and Executive shall each execute the Company’s
current standard Confidentiality Agreement (the “Confidentiality Agreement”), a copy of which is annexed hereto
as Exhibit B. The terms of the Confidentiality Agreement are hereby incorporated by reference into this Agreement, except
that, to the extent there is an irreconcilable conflict between the terms of this Agreement and those of the Confidentiality Agreement,
the terms of this Agreement shall govern. Executive’s execution and compliance with the terms of the Confidentiality Agreement
is a material term of this Agreement, upon which Executive’s employment and continued employment with the Company is conditioned.

 

    	 	6	Executive Initials: ___
Company Initials: ___

    	 

    

 

10.          Non-Solicitation.

 

10.1         Non-Solicitation
of Employees. Executive acknowledges that Executive will receive valuable Trade Secrets (as defined below) concerning the Company’s
employees which is not otherwise publicly available and which Executive will learn of only through Executive’s employment
with the Company. Executive further acknowledges that the Company has hired, trained and developed an unusual and extraordinary
workforce through the expenditure of extensive time, effort and resources, which it wishes to retain. Executive therefore agrees
that, during the period of Executive’s employment with the Company and for 24 months after the termination thereof, Executive
will not directly or indirectly use any such Trade Secrets to induce or attempt to induce any employee of the Company to leave
the employ of the Company, or otherwise interfere with the employment relationships of those in the Company’s employ. For
the purposes of this Agreement, the term “Trade Secrets”is defined under Section 3426.1 of the California Civil
Code and Section 1839 of the United States Code.

 

10.2         Non-Solicitation
of Clients, Business Partners and Business Providers. Executive further acknowledges that Executive will receive valuable Trade
Secrets concerning the Company’s clients, business partners and business providers which is not otherwise publicly available
and which Executive will learn of only through Executive’s employment with the Company. Executive therefore agrees that during
the period of Executive’s employment with the Company and for 24 months after the termination thereof, Executive will not
directly or indirectly use any such Trade Secrets to solicit or attempt to persuade or solicit any of the Company’s clients,
business partners or business providers to cease to do business with the Company, terminate or otherwise alter their relationships
with the Company or otherwise interfere with the Company’s business relationships.

 

11.          Invention
Assignment.

 

11.1         Disclosure.
Executive agrees that, throughout the performance of Executive’s services for the Company, all intellectual property, including,
without limitation, ideas, inventions, improvements, discoveries, strategies, tools, concepts, designs, drawings, illustrations,
and photographs, whether patentable or unpatentable, and all works of authorship, whether copyrightable or uncopyrightable, made,
developed, conceived, modified, acquired, devised, discovered or created by Executive, whether solely by Executive or jointly with
others, whether by using the Company’s or any of its subsidiaries’, divisions’, affiliates’ or parents’,
equipment, supplies, facilities, Confidential Information (as defined in the Confidentiality Agreement) or Trade Secrets or otherwise,
and which relate to or pertain in any way at the time of conception or reduction to practice of the invention or of creation of
the work of authorship to the business of the Company, or any of its subsidiaries, divisions, affiliates or parents or actual or
demonstrably anticipated research or development of the Company, or any of its subsidiaries, divisions, affiliates, or parents,
or which result from any work performed by Executive for the Company, or any of its subsidiaries, divisions, affiliates or parents,
shall be promptly disclosed in writing by Executive to the Company.

 

    	 	7	Executive Initials: ___
Company Initials: ___

    	 

    

 

11.2         Works
for Hire. Executive acknowledges that the intellectual property referred to in Section 11.1 above, which is made, conceived
or modified jointly or solely by Executive at any time during the performance of services for the Company, or its subsidiaries,
divisions, affiliates or parents, or which results from tasks assigned to Executive by the Company, shall be considered “Works
for Hire” under the copyright laws of the United States, and moreover, that all rights, title and interest therein, including
all rights of copyright, patent or otherwise, in the United States and in all foreign countries, in any form or medium and in all
fields of use now known or hereafter existing, shall belong exclusively to the Company and are hereby irrevocably assigned by Executive
to the Company. Executive agrees that the Company is under no further obligation, monetary or otherwise, to Executive for such
assignment.

 

11.3         Ownership.
Any such intellectual property and/or Works for Hire as described in Sections 11.1 and 11.2 above, shall be the exclusive property
of the Company or its assignee.

 

11.4         Assignment.
Executive hereby irrevocably assigns to the Company or its assignee, all of Executive’s rights, titles and interests in and
to any such intellectual property and Works for Hire described in Sections 11.1 and 11.2 above (to the extent such assignment is
necessary to perfect ownership in the property on behalf of the Company), and agrees that neither the Company, nor any of its subsidiaries,
divisions, affiliates or parents, are under any further obligation, monetary or otherwise, to Executive for such assignment. Executive
agrees to execute, acknowledge and deliver to the Company, its successors and assigns, all documentation, including, but not limited
to, applications for patents and/or copyrights, as the Company may deem necessary or desirable to obtain and perfect the interests
of the Company, its successors and assigns, in any and all countries, in such intellectual property and/or Works for Hire and to
vest title thereto in the Company. This covenant shall not apply to an invention that, pursuant to applicable law, excludes from
assignment items which were developed entirely on the Executive’s own time and without using the Company’s, or its
subsidiaries’, divisions’, affiliates’ or parents’, equipment, facilities or Trade Secrets or Confidential
Information. Executive acknowledges that all unpatented intellectual property and/or Works for Hire as described in this Section
11.4, which were owned and controlled by Executive on the initial date of performance of services for the Company, have been listed
by Executive on Exhibit C attached hereto. By signing this Agreement, Executive acknowledges receipt of a copy of this Agreement
and of written notification of the provisions of California Labor Code Section 2870 (which is attached hereto as Exhibit D).

 

12.         Non-Disparagement.
During and after Executive’s employment with the Company, except as may be required by law, Executive must not make any statement
(verbal, written or otherwise) about the Company or its financial status, business, personnel, directors, officers, consultants,
services or business methods that is intended to or is reasonably likely to disparage or denigrate the Company.

 

    	 	8	Executive Initials: ___
Company Initials: ___

    	 

    

 

13.         Cooperation.
During and after the Employment Period, Executive shall assist and cooperate with the Company in connection with the defense or
prosecution of any claim that may be made against or by the Company, or in connection with any ongoing or future investigation
or dispute or claim of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial,
legislative, or other body or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings
relate to services performed or required to be performed by Executive, pertinent knowledge possessed by Executive, or any act or
omission by Executive. Executive will also perform all acts and execute and deliver any documents that may be reasonably necessary
to carry out the provisions of this paragraph. The Company will reimburse Executive for reasonable expenses Executive incurs in
fulfilling Executive’s obligations under this Section 13.

 

14.         Company
Property. Executive agrees that all Confidential Information, Trade Secrets, drawings, designs, reports, computer programs
or data, books, handbooks, manuals, files (electronic or otherwise), computerized storage media, papers, memoranda, letters, notes,
photographs, facsimile, software, computers, PDAs, Blackberries and other documents (electronic or otherwise), materials and equipment
of any kind that Executive has acquired or will acquire during the course of Executive’s employment with the Company are
and remain the property of the Company. Upon termination of employment with the Company, or sooner if requested by the Company,
Executive agrees to return all such documents, materials and records to the Company and not to make or take copies of the same
without the prior written consent of the Company.

 

15.         Remedies.
Executive acknowledges and agrees that a breach of any provision of Sections 9-13 of this Agreement would injure the Company irreparably
in a way which could not be adequately compensated for by an award of monetary damages. Therefore, Executive agrees that, in addition
to such other damages or remedies that may be available for any violations of such sections, the Company shall be entitled to equitable
relief, including, without limitation, specific performance and/or immediate, preliminary and permanent injunctive relief, without
the necessity of proving actual damages or posting a bond.

 

16.         Representations
Regarding Prior Work and Legal Obligations.

 

16.1         Executive
represents and warrants that Executive has no agreement or other legal obligation with any prior employer, or any other person
or entity, that restricts Executive’s ability to accept employment with the Company. Executive further represents and warrants
that he is not a party to any agreement (including, without limitation, a non-competition, non-solicitation, no hire or similar
agreement) and has no other legal obligation that restricts in any way Executive’s ability to perform his duties and satisfy
his other obligations to the Company, including, without limitation, those under this Agreement and the Confidentiality Agreement.

 

16.2         Executive
represents and acknowledges that he has been instructed by the Company that at no time should he divulge to or use for the benefit
of the Company any trade secret or confidential or proprietary information of any previous employer or entity with which Executive
was affiliated or of any other third-party. Executive expressly represents and warrants that Executive has not divulged or used
any such information for the benefit of the Company and will not do so.

 

16.3         Executive
represents and agrees that the Executive has not and will not misappropriate any intellectual property belonging to any other person
or entity.

 

    	 	9	Executive Initials: ___
Company Initials: ___

    	 

    

 

16.4         Executive
represents and acknowledges that the Company is basing important business decisions on these representations, agreements and warranties,
and he affirms that all of the statements included herein are true. Executive agrees that Executive shall defend, indemnify and
hold the Company harmless (including attorneys’ fees) from any liability, expense or claim by any person in any way arising
out of, relating to, or in connection with a breach and/or the falsity of any of the representations, agreements and warranties
made by Executive in this Section 16.

 

17.         Insurance.The
Company shall have the right but not the obligation to take out life, health, accident, “key-man” or other insurance
covering Executive, in the name of the Company and at the Company’s expense in any amount deemed appropriate by the Company,
but not to exceed Five Million Dollars ($5,000,000). Executive shall assist the Company in obtaining such insurance, including,
without limitation, submitting to any required examinations by a doctor mutually acceptable to the Company and Executive, and providing
information and data required by insurance companies. Notwithstanding the foregoing, the uninsurability of Executive shall not
constitute a breach of this Agreement by Executive.

 

18.         Indemnification
and Liability Insurance. The Company will indemnify the executive and hold him harmless pursuant to the terms of the Company’sIndemnificationAgreement
(a copy of which is annexed hereto as Exhibit E)] and to the extent provided by the Company’s charter documents. The
Company will cover Executive under its officers’ and directors’ liability insurance in the same amount and to the same
extent as the Company covers its other officers and directors. If, after the Company indemnifies Executive hereunder, it is finally
adjudicated that Executive was not entitled to have been so indemnified, Executive shall promptly repay to the Company the full
amount for which he was so indemnified.

 

19.         Miscellaneous
Provisions.

 

19.1         IRCA
Compliance. This Agreement, and Executive’s employment with the Company, is conditioned on Executive’s establishing
Executive’s identity and authorization to work as required by the Immigration Reform and Control Act of 1986 (IRCA).

 

    	 	10	Executive Initials: ___
Company Initials: ___

    	 

    

 

19.2         Section
409A Compliance. Unless otherwise expressly provided, any payment of compensation by Company to Executive, whether pursuant
to this Agreement or otherwise, shall be made no later than the 15th day of the third month (i.e., 21⁄2
months) after the later of the end of the calendar year or the Company’s fiscal year in which Executive’s right to
such payment vests (i.e., is not subject to a “substantial risk of forfeiture” for purposes of Code Section
409A of the Internal Revenue Code of 1986, as amended (“Section 409A”)). For purposes of this Agreement, termination
of employment shall be deemed to occur only upon “separation from service” as such term is defined under Section 409A.
Each payment and each installment of any severance payments provided for under this Agreement shall be treated as a separate payment
for purposes of application of Section 409A. To the extent that any severance payments (including payments on termination for “Good
Reason”) come within the definition of “involuntary severance” under Section 409A, such amounts up to the lesser
of two times the Executive’s annual compensation for the year preceding the year of termination or two times the Section
401(a)(17) limit for the year of termination, shall be excluded from “deferred compensation” as allowed under Section
409A, and shall not be subject to the following Section 409A compliance requirements. All payments of “nonqualified
deferred compensation” (within the meaning of Section 409A) are intended to comply with the requirements of Section 409A,
and shall be interpreted in accordance therewith. Neither party individually or in combination may accelerate, offset or assign
any such deferred payment, except in compliance with Section 409A. No amount shall be paid prior to the earliest date on which
it is permitted to be paid under Section 409A and Executive shall have no discretion with respect to the timing of payments except
as permitted under Section 409A. Any Section 409A payments which are subject to execution of a waiver
and release which may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such
as termination of employment) occurs shall commence payment only in the calendar year in which the release revocation period ends
as necessary to comply with Section 409A. In the event that Executive is determined to be a “key employee” (as
defined and determined under Section 409A) of the Company at a time when its stock is deemed to be publicly traded on an established
securities market, payments determined to be “nonqualified deferred compensation” payable upon separation from service
shall be made no earlier than (i) the first day of the seventh (7th) complete calendar month following such termination
of employment, or (ii) Executive’s death, consistent with the provisions of Section 409A.  Any payment delayed by reason
of the prior sentence shall be paid out in a single lump sum at the end of such required delay period in order to catch up to the
original payment schedule.  All expense reimbursement or in-kind benefits subject to Section 409A provided under this Agreement
or, unless otherwise specified in writing, under any Company program or policy, shall be subject to the following rules: (i) the
amount of expenses eligible for reimbursement or in-kind benefits provided during one calendar year may not affect the benefits
provided during any other year; (ii) reimbursements shall be paid no later than the end of the calendar year following the year
in which the Executive incurs such expenses, and the Executive shall take all actions necessary to claim all such reimbursements
on a timely basis to permit the Company to make all such reimbursement payments prior to the end of said period, and (iii) the
right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. Notwithstanding
anything herein to the contrary, no amendment may be made to this Agreement if it would cause the Agreement or any payment hereunder
not to be in compliance with Section 409A.

 

    	 	11	Executive Initials: ___
Company Initials: ___

    	 

    

 

19.3         Limitation
on Benefits.Notwithstanding anything to the contrary contained in this Agreement, to the extent that any of the payments and
benefits provided for under this Agreement or any other agreement or arrangement between the Company and Executive (collectively,
the “Payments”) (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 19.3, would be subject to the excise
tax imposed by Section 4999 of the Code, then the Payments shall be payable either (i) in full or (ii) as to such lesser amount
which would result in no portion of such Payments being subject to excise tax under Section 4999 of the Code (determined in accordance
with the reduction of payments and benefits paragraph set forth below); whichever of the foregoing amounts, taking into account
the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in Executive’s receipt
on an after-tax basis, of the greatest amount of benefits under this Agreement, notwithstanding that all or some portion of such
benefits may be taxable under Section 4999 of the Code. Unless Executive and the Company otherwise agree in writing, any determination
required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”),
whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the
calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable
taxes and may rely in reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code. The
Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request
in order to make a determination under this Section. If any Payments would be reduced pursuant to the immediately preceding sentence
but would not be so reduced if the stockholder approval requirements of section 280G(b)(5) of the Code are satisfied, the Company
shall use its reasonable best efforts to cause such payments to be submitted for such approval prior to the event giving rise to
such payments.The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits
to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment
or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would
be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order.

 

19.4         Assignability
and Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administrators,
successors and legal representatives of Executive, and shall inure to the benefit of and be binding upon the Company and its successors
and assigns, but the obligations of Executive are personal services and may not be delegated or assigned. Executive shall not be
entitled to assign, transfer, pledge, encumber, hypothecate or otherwise dispose of this Agreement, or any of Executive’s
rights and obligations hereunder, and any such attempted delegation or disposition shall be null and void and without effect. This
Agreement may be assigned by the Company to a person or entity that is an affiliate or a successor in interest to substantially
all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall
become the rights and obligations of such affiliate or successor person or entity.

 

19.5         Severability
and Blue Penciling. If any provision of this Agreement is held to be invalid, the remaining provisions shall remain in full
force and effect. However, if any court determines that any covenant in this Agreement, including, without limitation, any covenant
in the Confidentiality Agreement, is unenforceable because the duration, geographic scope or restricted activities thereof are
overly broad, then such provision or part thereof shall be modified by reducing the overly broad duration, geographic scope or
restricted activities by the minimum amount so as to make the covenant, in its modified form, enforceable.

 

19.6         Choice
of Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of California,
without regard to principles of conflicts of law. Additionally, the parties hereto agree that any proceeding for preliminary injunctive
relief or any other non-arbitral claim relating to or arising out of this Agreement or Executive’s employment with the Company
shall be resolved exclusively in an appropriate state or federal court located in Orange County, California or, if there is no
federal court in such county, then the closest federal court to Orange County, and the parties hereto hereby consent and waive
any objection to the jurisdiction of any such court.

 

    	 	12	Executive Initials: ___
Company Initials: ___

    	 

    

 

19.7         Arbitration.
All claims, disputes and controversies arising out of, or related to this Agreement, the Confidentiality Agreement, Executive’s
employment with Company or the separation of that employment shall be submitted to final and binding arbitration pursuant to the
terms of this Section 19.7 with the sole exception of: (i) claims for workers’ compensation benefits; (ii) claims for unemployment
insurance compensation benefits; and (iii) to the extent required by law, administrative claims before applicable federal and state
administrative agencies (including but not limited to the Department of Fair Employment and Housing, the Equal Employment Opportunity
Commission, and any unfair labor charge which is to be brought under the National Labor Relations Act). Examples of claims, disputes
or controversies that must be resolved through arbitration rather than a court include, but are not limited to, wage and benefit
claims; contract claims; personal injury claims; tort claims; claims for wrongful termination; defamation claims; claims for discrimination
and harassment; and any other employment-related claim of any kind, including claims relating to this Agreement or any alleged
breach thereof. To the extent permitted by applicable law, (i) claims required to be arbitrated hereunder must be brought in the
Parties’ individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding,
and (ii) the arbitrator may not consolidate more than one person’s/entity’s claims, and may not otherwise preside over
any form of a representative or class proceeding. Such arbitration shall be conducted in the State of California in the county
in which Executive performed services for the Company and shall be administered by the American Arbitration Association’s
(“AAA”) in accordance with the AAA’s then current employment arbitration rules and procedures, as well
as the Federal Arbitration Act (the “FAA”) and Cal. Code Civ. Proc.§1280, et seq. and any successor
or replacement statutes. Claims must be submitted to the AAA for arbitration in accordance with the AAA’s rules for commencing
arbitration and within the time period set forth in the applicable statute of limitations.The arbitral award shall be binding upon
the parties. Judgment upon the award rendered by the arbitrator may be entered in any court having competent jurisdiction thereof.
Fees of the Arbitrator shall be paid by the Company where required by applicable law. Otherwise, each party shall be solely responsible
for paying their own costs associated with the arbitration, including but not limited to their own attorneys’ fees and expert
witness fees. However, if either Party prevails on a statutory or contract claim which affords the prevailing party their attorneys’
fees, the arbitrator may award reasonable attorneys’ fees to the prevailing Party. The arbitrator shall have the authority
to award any damages authorized by law. The award of the arbitrator shall be in writing and shall contain the arbitrator’s
factual findings, legal conclusions and reasons for the award. THE PARTIES UNDERSTAND AND AGREE THAT THEY ARE WAIVING THEIR RIGHTS
TO BRING SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.

 

19.8         Notices.

 

(a)          Any
notice or other communication under this Agreement shall be in writing and shall be delivered by hand, email, facsimile or mailed
by overnight courier or by registered or certified mail, postage prepaid:

 

(i)          If
to Executive, to Executive’s address on the books and records of the Company.

 

    	 	13	Executive Initials: ___
Company Initials: ___

    	 

    

 

(ii)         If
to the Company, to the Chairman of the Board of Directors, 2990 Airway Avenue, Building A, Costa Mesa California 92626, or at such
other mailing address, email address or facsimile number as it may have furnished in writing to Executive, with copies to Fran
Stoller, Loeb & Loeb LLP, 345 Park Avenue, New York, N.Y. 10154, fstoller@loeb.com.

 

(b)          Any
notice so addressed shall be deemed to be given: if delivered by hand, email or facsimile, on the date of such delivery; if mailed
by overnight courier, on the first business day following the date of such mailing; and if mailed by registered or certified mail,
on the third business day after the date of such mailing.

 

19.9         Survival
of Terms. All provisions of this Agreement that, either expressly or impliedly, contain obligations that extend beyond termination
of Executive’s employment hereunder, as well as the terms of the Confidentiality Agreement, shall survive the termination
of this Agreement and of Executive’s employment hereunder for any reason.

 

19.10         Interpretation.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning, and
not strictly for or against any Party. The Parties acknowledge that both of them have participated in drafting this Agreement;
therefore, any general rule of construction that any ambiguity shall be construed against the drafter shall not apply to this Agreement.
In this Agreement, unless the context otherwise requires, the masculine, feminine and neuter genders and the singular and the plural
include one another.

 

19.11         Entire
Agreement. This Agreement and the Confidentiality Agreement constitute the entire understanding and agreement of the Parties.
Such agreements supersede all prior negotiations, discussions, correspondence, communications, understandings and agreements regarding
such subject matter. The Company and Executive each acknowledges and agrees that it/he is not relying on, and it/he may not rely
on, any oral or written representation of any kind that is not set forth in writing in this Agreement.

 

19.12         Waivers
and Amendments. This Agreement may be altered, amended, modified, superseded or canceled, and the terms hereof may be waived,
only by a written instrument signed by the Parties or, in the case of a waiver, by the Party alleged to have waived compliance.
Any such signature of the Company must be by an authorized signatory for the Board. No delay by any Party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right,
power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise
thereof or the exercise of any other such right, power or privilege.

 

19.13         Counterparts.
This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original.
Photographic, electronically scanned and facsimiles of such signed counterparts may be used in lieu of the originals for any purpose.

 

[The remainder of this page is intentionally
blank; signature page follows.]

 

    	 	14	Executive Initials: ___
Company Initials: ___

    	 

    

 

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

 

	/s/ Rod Keller	 
	ROD KELLER	 
	 	 
	T3 MOTION, INC.	 
	 	 
	By:	/s/ Robert Thomson	 
	 	Name: Robert Thomson	 
	 	Title: Compensation Committee Chairman	 
	 	 	 
	Dated:	November 26, 2012	 

 

    	 	15	Executive Initials: ___
Company Initials: ___

    	 

    

 

Exhibit A

 

SEPARATION AGREEMENT AND RELEASE

 

This SEPARATION AGREEMENT
AND RELEASE (“Agreement”) is entered into by and between T3 Motion, Inc. (the “Company”)
and Rod Keller (“Executive”) (collectively, the “Parties” and, each, a “Party”).
In consideration of the mutual promises and agreements contained in this Agreement, and other valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.           Cessation
of Employment. Executive’s employment with the Company terminated effective ________ (the “Termination Date”).
The Company will pay Executive, less applicable withholdings and deductions, the Accrued Amounts, as defined in and pursuant to
the terms of Section 7.1 of the Employment Agreement between the Company and Executive effective as of ________ (the “Employment
Agreement”). Capitalized terms herein shall have the same meaning as that in the Employment Agreement, unless otherwise
specifically defined herein.

 

2.           Severance
and Other Enhanced Benefits in Exchange for Signing Agreement. Subject to this Agreement becoming effective pursuant to the
terms of Section 20 below and Executive’s continued compliance with the Confidentiality Agreement, and in exchange for the
promises, covenants, releases and waivers set forth herein, the Company will pay Executive the Severance Benefits (as defined in
and pursuant to the terms of Section 7.2 of the Employment Agreement).

 

3.           COBRA.
Under a separate cover, the Company will inform Executive of Executive’s rights to convert and continue existing health insurance
coverage, if any, under COBRA following the termination of Executive’s employment.

 

4.           No
Other Payments. Executive represents, warrants and acknowledges that the Company owes Executive no wages, overtime pay, commissions,
bonuses, sick pay, personal leave pay, severance pay, vacation pay or other compensation or benefits or payments or form of remuneration
of any kind or nature, other than that specifically provided for in this Agreement.

 

    	 

    	 

    

 

5.           Release
of Claims.

 

a.           For
good and valuable consideration, including without limitation the payments and benefits provided by paragraph 2 above, Executive
hereby voluntarily, knowingly and willingly releases, acquits and forever discharges the Company and its former, current and future
parents, subsidiaries, divisions, affiliates, predecessors, successors and assigns, and each of their current, former and future
agents, employees, officers, directors, shareholders, members, trustees, heirs, joint venturers, attorneys, representatives, owners
and servants,(collectively, the “Company Entities”) from any and all claims, costs or expenses of any kind or
nature whatsoever (collectively, “Claims”), whether known or unknown, foreseen or unforeseen, that Executive
ever had, now has or may have based upon any matter, fact, cause or thing, occurring from the beginning of time up to and including
the date Executive executes this Agreement regarding, arising out of or relating to Executive’s employment with the Company
or any events that may have occurred during the course of Executive’s employment or the termination of Executive’s
employment. This includes, without limitation, a release of any such Claims for unpaid wages, holiday pay, overtime, bonuses or
other compensation, breach of contract, wrongful discharge, disability benefits, life, health and medical insurance, sick leave,
or any other fringe benefit, employment discrimination, unlawful harassment, retaliation, emotional distress, violations of public
policy, defamation, fraudulent misrepresentation or inducements and severance pay. Executive is also specifically releasing any
such rights or Claims Executive may have, if any, under common law or the Worker Adjustment Retraining and Notification Act, the
Age Discrimination in Employment Act (“ADEA”) (which prohibits discrimination in employment based on age), Older
Workers Benefit Protection Act of 1990 (“OWBPA”) (which also prohibits discrimination in employment based on
age), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Rehabilitation
Act, the Labor Management Relations Act, the Equal Pay Act, the Americans with Disabilities Act, the Employment Retirement Income
Security Act, the Sarbanes-Oxley Act of 2002, the California Fair Employment and Housing Act, the California Family Rights Act,
the California Constitution, the California Labor Code, all the above statutes as amended from time to time, and any other federal,
state or local laws, rules, ordinances or regulations, whether equal employment laws, rules or regulations or otherwise or any
right under any Company pension, welfare, or stock plans. This release covers both Claims that Executive knows about, and those
that Executive may not know about. By signing this Agreement, Executive is forever giving up Executive’s rights to make the
aforementioned Claims or demands.

 

b.           It
is a condition hereof, and it is Executive’s intention in the execution of the release in paragraph 5.a above, that the same
shall be effective as a bar to each and every claim hereinabove specified, and in furtherance of this intention, Executive hereby
expressly waives any and all rights and benefits conferred upon Executive by Section 1542 of the California Civil Code, which provides:

 

A general release does not
extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the Release,
which if known by him or her must have materially affected his or her settlement with the debtor.

 

c.           Notwithstanding
the foregoing, nothing contained herein shall be construed to alter, limit, or release (i) any claim or right to indemnification
and/or contribution Executive may have pursuant to applicable law or pursuant to the Company’s governance instruments for
acts committed during the scope of Executive’s employment with the Company; (ii) coverage, if any, under any Company liability
insurance policy; (iii) any claim or right under state unemployment and workers’ compensation statutes; (iv) any right Executive
may have to a vested benefit under any pension or welfare plan of the Company; (v) any other claim or right that may not be released
by private agreement; and (vi) any claim arising from obligations of the Company to Executive that are expressly set forth in this
Agreement.

 

    	17

    	 

    

 

20.         No
Pending Lawsuits; No Assignment of Claims. Executive represents and warrants that Executive has not filed any Claim, lawsuit
or charge against any of the Company Entities. Executive hereby promises never to file a Claim, lawsuit or charge asserting any
Claims that Executive has released in Paragraph 5 above, except that nothing in this Agreement, including
the provisions of this paragraph and paragraph 5 above, shall prevent Executive from filing a charge or complaint with or from
participating in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (EEOC), National Labor
Relations Board (NLRB), or any other federal, state or local agency charged with the enforcement of any laws. However, to
the extent any such charge or complaint or any other Claim is made against any of the Company Entities (including the EEOC or NLRB),
Executive expressly waives any Claim to any form of monetary or other damages, or any other form of individual recovery or relief
in connection with any such charge, complaint or Claim. Executive further represents and warrants that Executive has not heretofore
assigned or transferred, or purported to assign or transfer, to any person, firm, corporation or entity any Claim or other matter
herein released. Notwithstanding the foregoing, nothing herein shall prohibit Executive from challenging the validity of the ADEA
or OWBPA waiver herein; however, in the event Executive unsuccessfully does so, Executive may be held liable for the Company’s
attorney’s fees and costs to the same extent that successful defendants are allowed attorney’s fees under the ADEA
and/or OWBPA.

 

21.         Consequences
of Executive’s Violation of Promises. If Executive breaches this Agreement or the Confidentiality Agreement, including,
but not limited to, by filing, bringing or participating in any Claims or actions contrary to Executive’s agreements and
representations made herein, including, but not limited to, those in paragraphs 5 and 6 above, in addition to any other rights
and remedies the Company may have, (i) Executive will immediately repay to the Company, or forfeit his entitlement to, all amounts
and benefits provided by Section 2 above (except for $100 as consideration for the release provided in Section 5 above); and (ii)
Executive agrees to pay all costs and expenses, including reasonable attorneys’ fees, incurred by the Company or any of the
Company Entities in defending against such Claims or actions brought by Executive or on Executive’s behalf or in enforcing
the terms of this Agreement. The preceding sentence shall not apply to any Claims that Executive files under ADEA or OWBPA or any
challenge that Executive makes to the validity of the ADEA or OWBPA waiver contained in this Agreement. In the event Executive
unsuccessfully challenges the validity of the ADEA or OWBPA waiver herein, Executive may be held liable for the Company’s
attorneys’ fees and costs to the same extent that successful defendants are allowed attorneys’ fees under the ADEA
and/or OWBPA.

 

22.         Return
of Company Property. Executive acknowledges and agrees that all documents, materials and equipment of any kind that Executive
acquired during the course of Executive’s employment with the Company are and remain the property of the Company. Executive
further acknowledges and agrees that, pursuant to Section 14 of the Employment Agreement, Executive has returned all company property
to the Company and has not made, taken or retained copies of the same.

 

23.         Cooperation.
Executive acknowledges and reaffirms his agreement to provide the assistance and cooperation required by Section 13 of the Employment
Agreement. Further, if requested, Executive agrees to provide the Company with reasonable assistance, including, without limitation,
providing information, in connection with the transition of his employment duties and responsibilities to others and matters with
which he was involved during his employment with the Company. The Company will reimburse Executive for reasonable expenses Executive
incurs in fulfilling Executive’s obligations under this paragraph.

 

    	18

    	 

    

 

24.         Requests
for Information and Testimony. Executive agrees that, in the event Executive is contacted by any person or entity seeking information
or testimony from Executive in connection with Executive’s or others’ employment, duties or activities at the Company
(including, without limitation, knowledge Executive came into possession of in connection with Executive’s employment with
the Company), Executive shall, to the extent permitted by law, (i) prior to providing any such information or testimony and within
4 days of receipt of such request, advise the Company that such information or testimony is sought, (ii) cooperate with the Company
and its representatives (including its counsel) in connection with the request for such information or testimony; and (iii) refuse
to provide such information or testimony absent legal requirement to do so. If Executive is legally required to comply with such
request for information or testimony (e.g., if such request is in the form of a subpoena or other legal process), to the
extent permitted by law, Executive shall, and in advance of providing any response and within 4 days of receipt of such request,
provide written notice to the Company of such request so that it may seek to assert its rights and interests in connection with
such request. Nothing in this Agreement shall prohibit or restrict Executive from providing information to or otherwise cooperating
with a governmental or law enforcement organization.

 

25.         Confidentiality
of this Agreement. The terms of this Agreement, including the specific amount paid hereunder, are and shall be kept confidential
by Executive and the Company and shall not hereafter be disclosed by Executive or the Company to any other person or entity, including,
without limitation, any current, former or future employees of the Company Entities, except (i) as may be required by law; (ii)
as may be required by any taxing authority; (iii) by each Party to his or its respective counsel, accountants, or financial advisors;
(iv) as may be required in the performance or enforcement of this Agreement; (v) by Executive, to Executive’s immediate family
members, as necessary; and (vi) by the Company to its current employees, officers, directors, shareholders and members with a reason
to know such information, provided in the cases of (iii), (v) and (vi), the disclosing Party makes the person to whom disclosure
is made aware of the confidentiality provisions of this Agreement and such person to whom disclosure is to be made agrees to keep
the terms and conditions of this Agreement fully confidential.

 

26.         Confidentiality,
Intellectual Property, Non-Solicitation, Non-Disparagement and Cooperation. Executive acknowledges and hereby reaffirms Executive’s
continuing obligations to the Company pursuant to the Confidentiality Agreement and the Employment Agreement (including, without
limitation, Sections 9-13 thereof), with which obligations Executive acknowledges, represents and warrants Executive has complied
and will continue to comply.

 

27.         Entire
Agreement. This Agreement, the Employment Agreement and the Confidentiality Agreement set forth the entire agreement between
the Parties and fully supersedes any and all prior agreements or understanding between them. This Agreement may not be altered,
modified, amended or changed, in whole or in part, except in writing executed by Executive and Company. The Company and Executive
acknowledge and agree that they are not relying on, and they may not rely on, any oral or written representation of any kind that
is not set forth in writing in this Agreement.

 

    	19

    	 

    

 

28.         Severability.
If any provision of this Agreement is held to be invalid, the remaining provisions shall remain in full force and effect. However,
the invalidity of any such provision shall have no effect upon, and shall not impair the enforceability of the release language
set forth in paragraph 5 above, provided that, upon a finding by a court of competent jurisdiction that the release language found
in paragraph 5 is unenforceable, the Company shall rewrite paragraph 5 to cure the defect and Executive shall re-execute the release
upon request, and Executive shall not be entitled to any additional monies, benefits and/or compensation therefor.

 

29.         Interpretation.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning, and
not strictly for or against any Party. No provision in this Agreement will be interpreted in favor of, or against, any of the Parties
by reason of the extent to which any such Party or its counsel participated in the drafting thereof or by reason of the extent
to which any such provision is inconsistent with any prior draft hereof or thereof. In this Agreement, unless the context otherwise
requires, the masculine, feminine and neuter genders and the singular and the plural include one another.

 

30.         No
Admission. Nothing contained in this Agreement, nor the fact that the Parties sign this Agreement, shall be considered as an
admission of any type by either Party.

 

31.         Waiver.
No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement
of any provision of this Agreement except by written instrument signed by the Party charged with such waiver or estoppel. No such
written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only
as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to
any act other than that specifically waived.

 

32.         Choice
of Law and Forum. This Agreement shall be interpreted and enforced in accordance with the laws of the State of California,
without regard to its conflict-of-law principles. The Parties agree that any dispute concerning or arising out of this Agreement
shall be resolved exclusively pursuant to the terms of Sections 19.6 (Choice of Law and Jurisdiction) and 19.7 (Arbitration) of
the Employment Agreement.

 

33.         Counterparts.
This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original.
Photographic and electronically created copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

34.         Period
for Review and Right to Revoke.Company and Executive acknowledge and agree that, (i) Executive will have twenty-one (21) days
from the receipt of this Agreement in which to consider its terms (including, without limitation, Executive’s release and
waiver of any and all claims under the ADEA) before executing it; (ii) changes to the terms of this Agreement, whether material
or immaterial, will not restart this twenty-one (21) day period; (iii) Executive will have seven (7) days after Executive’s
execution of this Agreement in which to revoke Executive’s acceptance of this Agreement, in which event a written notice
of such revocation must be received by Fran Stoller, Loeb & Loeb LLP, 345 Park Avenue, New York, NY 10154, fstoller@loeb.com,
on or before 5:00 p.m. on the seventh (7th) day; and (iv) this Agreement will become effective and enforceable on the
eighth (8th) day after Executive’s execution of this Agreement pursuant to the terms of this paragraph (the “Effective
Date”), provided (A) Executive has not previously revoked this Agreement pursuant to the terms hereof; (B) Executive
has not executed this Agreement prior to the Termination Date; and (C) Executive has executed and delivered this Agreement to Ms.
Stoller no later than 5:00 p.m. on the twenty-first (21st) day following Executive’s receipt of this Agreement
from the Company.

 

    	20

    	 

    

 

35.         Voluntary
and Knowing Execution of Agreement. Executive acknowledges that (i) Executive has been advised by the Company to consult an
attorney regarding any potential claims as well as the terms and conditions of this Agreement before executing it; (ii) Executive
fully understands the terms of this Agreement including, without limitation, the significance and consequences of the General Release
in Paragraph 5 above, including that it includes a release of age discrimination claims; (iii) Executive is executing this Agreement
in exchange for consideration in addition to anything of value to which he/she is already entitled, and (iv) Executive is fully
satisfied with the terms of this Agreement and is executing this Agreement voluntarily, knowingly and willingly and without duress.

 

IN WITNESS WHEREOF,
the Parties hereto have executed this Agreement on the below-indicated dates.

 

T3 MOTION, INC.

(Company)

 

	By:	 	 	 
	 	Name:	 	Rod Keller
	 	Title:	 	 
	 	 	 	 	 
	Dated:	 	 	Dated:	 

 

    	21

    	 

    

 

Exhibit B – Confidentiality Agreement

 

    	 

    	 

    

 

Exhibit C

 

EXCLUDED INVENTIONS, DISCOVERIES, WORKS
OF AUTHORSHIP, AND WORKS OF HIRE

 

    	 

    	 

    

 

Exhibit D

 

INVENTION ASSIGNMENT NOTICE

 

In accordance with
Section 2872 of the California Labor Code, you are hereby notified that the Invention Assignment provisions of the Non-Disclosure,
Confidentiality and Invention Assignment Agreement which you have signed in connection with your employment by the Company does
not apply to an invention which qualifies fully wider the provisions of Section 2870 of the California Labor Code, which provides
in pertinent part:

 

Any provision in an employment
agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or
her employer shall not apply to an invention which was developed entirely on his or her own time without using the employer’s
equipment, supplies, facilities or trade secret information except for those inventions that either:

 

(1)         Relate
at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer, or

 

(2)         Result
from any work performed by the employee for the employer.

 

	Date:	 	 	Date:	 
	 	 	 
	 	 	 
	Executive Signature	 	T3 Motion, Inc.
	 	 	 
	 	 	Title:	 
	Print Executive Name	 	 

 

    	 

    	 

    

 

Exhibit E – Indemnification Agreement

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