Document:

General Security Agreement

 Exhibit 10.9 

GENERAL SECURITY AGREEMENT 
  

	1.	SECURITY INTEREST 

 (a)
For value received, the undersigned (“Debtor”), hereby grants to ROYAL BANK OF CANADA (“RBC”), a security interest (the “Security Interest”) in the undertaking of Debtor and in all of Debtor’s present and after
acquired personal property including, without limitation, in all Goods (including all parts, accessories, attachments, special tools, additions and accessions thereto), Chattel Paper, Documents of Title (whether negotiable or not), Instruments,
Intangibles, Money and Securities and all other Investment Property now owned or hereafter owned or acquired by or on behalf of Debtor (including such as may be returned to or repossessed by Debtor) and in all proceeds and renewals thereof,
accretions thereto and substitutions therefore (hereinafter collectively called “Collateral”), and including, without limitation, all of the following now owned or hereafter owned or acquired by or on behalf of Debtor: 

 

	 	(i)	all inventory of whatever kind and wherever situate; 

  

	 	(ii)	all equipment (other than Inventory) of whatever kind and wherever situate, including, without limitation, all machinery, tools, apparatus, plant, furniture, fixtures
and vehicles of whatsoever nature or kind; 

  

	 	(iii)	all Accounts and book debts and generally all debts, dues, claims, choses in action and demands of every nature and kind howsoever arising or secured including letters
of credit and advices of credit, which are now due, owing or accruing or growing due to or owned by or which may hereafter become due, owing or accruing or growing due to or owned by Debtor (“Debts”); 

 

	 	(iv)	all lists, records and files relating to Debtor’s customers, clients and patients; 

 

	 	(v)	all deeds, documents, writings, papers, books of account and other books relating to or being records of Debts, Chattel Paper or Documents of Title or by which such are
or may hereafter be secured, evidenced, acknowledged or made payable; 

  

	 	(vi)	all contractual rights and insurance claims; 

  

	 	(vii)	all patents, industrial designs, trade-marks, trade secrets and know-how including without limitation environmental technology and biotechnology, confidential
information, trade-names, goodwill, copyrights, personality rights, plant breeders’ rights, integrated circuit topographies, software and all other forms of intellectual and industrial property, and any registrations and applications for
registration of any of the foregoing (collectively “Intellectual Property”); and 

  

	 	(viii)	all property described in Schedule “C” or any schedule now or hereafter annexed hereto. 

(b) The Security Interest granted hereby shall not extend or apply to and Collateral shall not include the last day of the term of any
lease or agreement therefor but upon the enforcement of the Security Interest, Debtor shall stand possessed of such last day in trust to assign the same to any person acquiring such term. 

(c) The terms “Goods”, “Chattel Paper”, “Document of Title”, “Instrument”,
“Intangible”, “Security”, “Investment Property”, “proceed”, “Inventory”, “accession”, “Money”, “Account”, “financing statement” and “financing change
statement” whenever used herein shall be interpreted pursuant to their respective meanings when used in The Personal Property Security Act of the province referred to in Clause 14(s), as amended from time to time, which Act, including
amendments thereto and any Act substituted therefor and amendments thereto is herein referred to as the “P.P.S.A.”. Provided always that the term “Goods” when used herein shall not include “consumer goods” of Debtor as
that term is defined in the P.P.S.A., the term “Inventory” when used herein shall include livestock and the young thereof after conception and crops that become such within one year of execution of this Security Agreement and the term
“Investment Property”, if not defined in the P.P.S.A., shall be interpreted according to its meaning in the Personal Property Security Act (Ontario). Any reference herein to “Collateral” shall, unless the context otherwise
requires, be deemed a reference to “Collateral or any part thereof”. 

	2.	INDEBTEDNESS SECURED 

 The
Security Interest granted hereby secures payment and performance of any and all obligations, indebtedness and liability of Debtor to RBC (including interest thereon) present or future, direct or indirect, absolute or contingent, matured or not,
extended or renewed, wheresoever and howsoever incurred and any ultimate unpaid balance thereof and whether the same is from time to time reduced and thereafter increased or entirely extinguished and thereafter incurred again and whether Debtor be
bound alone or with another or others and whether as principal or surety (hereinafter collectively called the “Indebtedness”). If the Security Interest in the Collateral is not sufficient, in the event of default, to satisfy all
Indebtedness of the Debtor, the Debtor acknowledges and agrees that Debtor shall continue to be liable for any Indebtedness remaining outstanding and RBC shall be entitled to pursue full payment thereof. 

 

	3.	REPRESENTATIONS AND WARRANTIES OF DEBTOR 

Debtor represents and warrants and so long as this Security Agreement remains in effect shall be deemed to continuously represent and
warrant that: 
 (a) the Collateral is genuine and owned by Debtor free of all security interests, mortgages, liens, claims,
charges, licenses, leases, infringements by third parties, encumbrances or other adverse claims or interests (hereinafter collectively called “Encumbrances”), save for the Security Interest and those Encumbrances shown on Schedule
“A” or hereafter approved in writing by RBC, prior to their creation or assumption; 
 (b) all Intellectual Property
applications and registrations are valid and in good standing and Debtor is the owner of the applications and registrations; 

(c) each Debt, Chattel Paper and Instrument constituting Collateral is enforceable in accordance with its terms against the party
obligated to pay the same (the “Account Debtor”), and the amount represented by Debtor to RBC from time to time as owing by each Account Debtor or by all Account Debtors will be the correct amount actually and unconditionally owing by such
Account Debtor or Account Debtors, except for normal cash discounts where applicable, and no Account Debtor will have any defence, set off, claim or counterclaim against Debtor which can be asserted against RBC, whether in any proceeding to enforce
Collateral or otherwise; 
 (d) the locations specified in Schedule “B” as to business operations and records are
accurate and complete and with respect to Goods (including Inventory) constituting Collateral, the locations specified in Schedule “B” are accurate and complete save for Goods in transit to such locations and Inventory on lease or
consignment; and all fixtures or Goods about to become fixtures and all crops and all oil, gas or other minerals to be extracted and all timber to be cut which forms part of the Collateral will be situate at one of such locations; and 

(e) the execution, delivery and performance of the obligations under this Security Agreement and the creation of any security interest in
or assignment hereunder of Debtor’s rights in the Collateral to RBC will not result in a breach of any agreement to which Debtor is a party. 
  

	4.	COVENANTS OF THE DEBTOR 

 So long as this
Security Agreement remains in effect Debtor covenants and agrees: 
 (a) to defend the Collateral against the claims and demands
of all other parties claiming the same or an interest therein; to diligently initiate and prosecute legal action against all infringers of Debtor’s rights in Intellectual Property; to take all reasonable action to keep the Collateral free from
all Encumbrances, except for the Security Interest, licenses which are compulsory under federal or provincial legislation and those shown on Schedule “A” or hereafter approved in writing by RBC, prior to their creation or assumption, and
not to sell, exchange, transfer, assign, lease, license or otherwise dispose of Collateral or any interest therein without the prior written consent of RBC; provided always that, until default, Debtor may, in the ordinary course of Debtor’s
business, sell or lease Inventory and, subject to Clause 7 hereof, use Money available to Debtor; 
  

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 (b) to notify RBC promptly of: 

 

	 	(i)	any change in the information contained herein or in the Schedules hereto relating to Debtor, Debtor’s business or Collateral, 

 

	 	(ii)	the details of any significant acquisition of Collateral, 

  

	 	(iii)	the details of any claims or litigation affecting Debtor or Collateral, 

  

	 	(iv)	any loss or damage to Collateral, 

  

	 	(v)	any default by any Account Debtor in payment or other performance of its obligations with respect to Collateral, and 

 

	 	(vi)	the return to or repossession by Debtor of Collateral; 

(c) to keep Collateral in good order, condition and repair and not to use Collateral in violation of the provisions of this Security
Agreement or any other agreement relating to Collateral or any policy insuring Collateral or any applicable statute, law, by-law, rule, regulation or ordinance; to keep all agreements, registrations and applications relating to Intellectual Property
and intellectual property used by Debtor in its business in good standing and to renew all agreements and registrations as may be necessary or desirable to protect Intellectual Property, unless otherwise agreed in writing by RBC; to apply to
register all existing and future copyrights, trade-marks, patents, integrated circuit topographies and industrial designs whenever it is commercially reasonable to do so; 

(d) to do, execute, acknowledge and deliver such financing statements, financing change statements and further assignments, transfers,
documents, acts, matters and things (including further schedules hereto) as may be reasonably requested by RBC of or with respect to Collateral in order to give effect to these presents and to pay all costs for searches and filings in connection
therewith; 
 (e) to pay all taxes, rates, levies, assessments and other charges of every nature which may be lawfully levied,
assessed or imposed against or in respect of Debtor or Collateral as and when the same become due and payable; 
 (f) to insure
collateral in such amounts and against such risks as would customarily be insured by a prudent owner of similar Collateral and in such additional amounts and against such additional risks as RBC may from time to time direct, with loss payable to RBC
and Debtor, as insureds, as their respective interests may appear, and to pay all premiums therefor and deliver copies of policies and evidence of renewal to RBC on request; 

(g) to prevent Collateral, save Inventory sold or leased as permitted hereby, from being or becoming an accession to other property not
covered by this Security Agreement; 
 (h) to carry on and conduct the business of Debtor in a proper and efficient manner and
so as to protect and preserve Collateral and to keep, in accordance with generally accepted accounting principles, consistently applied, proper books of account for Debtor’s business as well as accurate and complete records concerning
Collateral, and mark any and all such records and Collateral at RBC’s request so as to indicate the Security Interest; 
  

	 	(i)	to deliver to RBC from time to time promptly upon request: 

  

	 	(i)	any Documents of Title, Instruments, Securities and Chattel Paper constituting, representing or relating to Collateral, 

 

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	 	(ii)	all books of account and all records, ledgers, reports, correspondence, schedules, documents, statements, lists and other writings relating to Collateral for the
purpose of inspecting, auditing or copying the same, 

  

	 	(iii)	all financial statements prepared by or for Debtor regarding Debtor’s business, 

 

	 	(iv)	all policies and certificates of insurance relating to Collateral, and 

  

	 	(v)	such information concerning Collateral, the Debtor and Debtor’s business and affairs as RBC may reasonably request. 

 

	5.	USE AND VERIFICATION OF COLLATERAL 

Subject to compliance with Debtor’s covenants contained herein and Clause 7 hereof, Debtor may, until default, possess, operate,
collect, use and enjoy and deal with Collateral in the ordinary course of Debtor’s business in any manner not inconsistent with the provisions hereof; provided always that RBC shall have the right at any time and from time to time to verify the
existence and state of the Collateral in any manner RBC may consider appropriate and Debtor agrees to furnish all assistance and information and to perform all such acts as RBC may reasonably request in connection therewith and for such purpose to
grant to RBC or its agents access to all places where Collateral may be located and to all premises occupied by Debtor. 
  

	6.	SECURITIES, INVESTMENT PROPERTY 

If Collateral at any time includes Securities, Debtor authorizes RBC to transfer the same or any part thereof into its own name or that of
its nominee(s) so that RBC or its nominee(s) may appear of record as the sole owner thereof; provided that, until default, RBC shall deliver promptly to Debtor all notices or other communications received by it or its nominee(s) as such registered
owner and, upon demand and receipt of payment of any necessary expenses thereof, shall issue to Debtor or its order a proxy to vote and take all action with respect to such Securities. After default, Debtor waives all rights to receive any notices
or communications received by RBC or its nominee(s) as such registered owner and agrees that no proxy issued by RBC to Debtor or its order as aforesaid shall thereafter be effective. 

Where any Investment Property is held in or credited to an account that has been established with a securities intermediary, RBC may, at
any time after default, give a notice of exclusive control to any such securities intermediary with respect to such Investment Property. 
  

	7.	COLLECTION OF DEBTS 

 Before or after
default under this Security Agreement, RBC may notify all or any Account Debtors of the Security Interest and may also direct such Account Debtors to make all payments on Collateral to RBC. Debtor acknowledges that any payments on or other proceeds
of Collateral received by Debtor from Account Debtors, whether before or after notification of this Security Interest to Account Debtors and whether before or after default under this Security Agreement, shall be received and held by Debtor in trust
for RBC and shall be turned over to RBC upon request. 
  

	8.	INCOME FROM AND INTEREST ON COLLATERAL 

(a) Until default, Debtor reserves the right to receive any Money constituting income from or interest on Collateral and if RBC receives
any such Money prior to default, RBC shall either credit the same against the Indebtedness or pay the same promptly to Debtor. 

(b) After default, Debtor will not request or receive any Money constituting income from or interest on Collateral and if Debtor receives
any such Money without any request by it, Debtor will pay the same promptly to RBC. 
  

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	9.	INCREASES, PROFITS, PAYMENTS OR DISTRIBUTIONS 

  

	 	(a)	Whether or not default has occurred, Debtor authorizes RBC: 

  

	 	(i)	to receive any increase in or profits on Collateral (other than Money) and to hold the same as part of Collateral. Money so received shall be treated as income for the
purposes of Clause 8 hereof and dealt with accordingly; 

  

	 	(ii)	to receive any payment or distribution upon redemption or retirement or upon dissolution and liquidation of the issuer of Collateral; to surrender such Collateral in
exchange therefor and to hold any such payment or distribution as part of Collateral. 

 (b) If Debtor receives
any such increase or profits (other than Money) or payments or distributions, Debtor will deliver the same promptly to RBC to be held by RBC as herein provided. 
  

	10.	DISPOSITION OF MONEY 

Subject to any applicable requirements of the P.P.S.A., all Money collected or received by RBC pursuant to or in exercise of any right it
possesses with respect to Collateral shall be applied on account of Indebtedness in such manner as RBC deems best or, at the option of RBC, may be held unappropriated in a collateral account or released to Debtor, all without prejudice to the
liability of Debtor or the rights of RBC hereunder, and any surplus shall be accounted for as required by law. 
  

	11.	EVENTS OF DEFAULT 

 The
happening of any of the following events or conditions shall constitute default hereunder which is herein referred to as “default”: 

(a) the nonpayment when due, whether by acceleration or otherwise, of any principal or interest forming part of Indebtedness or the
failure of Debtor to observe or perform any obligation, covenant, term, provision or condition contained in this Security Agreement or any other agreement between Debtor and RBC; 

(b) the death of or a declaration of incompetency by a court of competent jurisdiction with respect to Debtor, if an individual;

 (c) the bankruptcy or insolvency of Debtor; the filing against Debtor of a petition in bankruptcy; the making of an
assignment for the benefit of creditors by Debtor; the appointment of a receiver or trustee for Debtor or for any assets of Debtor or the institution by or against Debtor of any other type of insolvency proceeding under the Bankruptcy and Insolvency
Act or otherwise; 
 (d) the institution by or against Debtor of any formal or informal proceeding for the dissolution or
liquidation of, settlement of claims against or winding up of affairs of Debtor; 
 (e) if any Encumbrance affecting Collateral
becomes enforceable against Collateral; 
 (f) if Debtor ceases or threatens to cease to carry on business or makes or agrees to
make a bulk sale of assets without complying with applicable law or commits or threatens to commit an act of bankruptcy; 
 (g)
if any execution, sequestration, extent or other process of any court becomes enforceable against Debtor or if distress or analogous process is levied upon the assets of Debtor or any part thereof; 

(h) if any certificate, statement, representation, warranty or audit report heretofore or hereafter furnished by or on behalf of Debtor
pursuant to or in connection with this Security Agreement, or otherwise (including, without limitation, the representations and warranties contained herein) or as an inducement to RBC to extend any credit to or to enter into this or any other
agreement with Debtor, proves to have been false in any material respect at the time as of which the facts therein set forth were stated or certified, or proves to have omitted 

 

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any substantial contingent or unliquidated liability or claim against Debtor; or if upon the date of execution of this Security Agreement, there shall have been any material adverse change in any
of the facts disclosed by any such certificate, representation, statement, warranty or audit report, which change shall not have been disclosed to RBC at or prior to the time of such execution. 

 

	12.	ACCELERATION 

 RBC, in its
sole discretion, may declare all or any part of Indebtedness which is not by its terms payable on demand to be immediately due and payable, without demand or notice of any kind, in the event of default, or if RBC considers itself insecure or that
the Collateral is in jeopardy. The provisions of this clause are not intended in any way to affect any rights of RBC with respect to any Indebtedness which may now or hereafter be payable on demand. 

 

	13.	REMEDIES 

 (a) Upon
default, RBC may appoint or reappoint by instrument in writing, any person or persons, whether an officer or officers or an employee or employees of RBC or not, to be a receiver or receivers (hereinafter called a “Receiver”, which term
when used herein shall include a receiver and manager) of Collateral (including any interest, income or profits therefrom) and may remove any Receiver so appointed and appoint another in his/her stead. Any such Receiver shall, so far as concerns
responsibility for his/her acts, be deemed the agent of Debtor and not RBC, and RBC shall not be in any way responsible for any misconduct, negligence or non-feasance on the part of any such Receiver, his/her servants, agents or employees. Subject
to the provisions of the instrument appointing him/her, any such Receiver shall have power to take possession of Collateral, to preserve Collateral or its value, to carry on or concur in carrying on all or any part of the business of Debtor and to
sell, lease, license or otherwise dispose of or concur in selling, leasing, licensing or otherwise disposing of Collateral. To facilitate the foregoing powers, any such Receiver may, to the exclusion of all others, including Debtor, enter upon, use
and occupy all premises owned or occupied by Debtor wherein Collateral may be situate, maintain Collateral upon such premises, borrow money on a secured or unsecured basis and use Collateral directly in carrying on Debtor’s business or as
security for loans or advances to enable the Receiver to carry on Debtor’s business or otherwise, as such Receiver shall, in its discretion, determine. Except as may be otherwise directed by RBC, all Money received from time to time by such
Receiver in carrying out his/her appointment shall be received in trust for and paid over to RBC. Every such Receiver may, in the discretion of RBC, be vested with all or any of the rights and powers of RBC. 

(b) Upon default, RBC may, either directly or through its agents or nominees, exercise any or all of the powers and rights given to a
Receiver by virtue of the foregoing sub-clause (a). 
 (c) RBC may take possession of, collect, demand, sue on, enforce, recover
and receive Collateral and give valid and binding receipts and discharges therefor and in respect thereof and, upon default, RBC may sell, license, lease or otherwise dispose of Collateral in such manner, at such time or times and place or places,
for such consideration and upon such terms and conditions as to RBC may seem reasonable. 
 (d) In addition to those rights
granted herein and in any other agreement now or hereafter in effect between Debtor and RBC and in addition to any other rights RBC may have at law or in equity, RBC shall have, both before and after default, all rights and remedies of a secured
party under the P.P.S.A. Provided always, that RBC shall not be liable or accountable for any failure to exercise its remedies, take possession of, collect, enforce, realize, sell, lease, license or otherwise dispose of Collateral or to institute
any proceedings for such purposes. Furthermore, RBC shall have no obligation to take any steps to preserve rights against prior parties to any Instrument or Chattel Paper whether Collateral or proceeds and whether or not in RBC’s possession and
shall not be liable or accountable for failure to do so. 
 (e) Debtor acknowledges that RBC or any Receiver appointed by it may
take possession of Collateral wherever it may be located and by any method permitted by law and Debtor agrees upon request from RBC or any such Receiver to assemble and deliver possession of Collateral at such place or places as directed.

 (f) Debtor agrees to be liable for and to pay all costs, charges and expenses reasonably incurred by RBC or any Receiver
appointed by it, whether directly or for services rendered (including reasonable solicitors and 
  

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auditors costs and other legal expenses and Receiver remuneration), in operating Debtor’s accounts, in preparing or enforcing this Security Agreement, taking and maintaining custody of,
preserving, repairing, processing, preparing for disposition and disposing of Collateral and in enforcing or collecting Indebtedness and all such costs, charges and expenses, together with any amounts owing as a result of any borrowing by RBC or any
Receiver appointed by it, as permitted hereby, shall be a first charge on the proceeds of realization, collection or disposition of Collateral and shall be secured hereby. 

(g) RBC will give Debtor such notice, if any, of the date, time and place of any public sale or of the date after which any private
disposition of Collateral is to be made as may be required by the P.P.S.A. 
 (h) Upon default and receiving written demand from
RBC, Debtor shall take such further action as may be necessary to evidence and effect an assignment or licensing of Intellectual Property to whomever RBC directs, including to RBC. Debtor appoints any officer or director or branch manager of RBC
upon default to be its attorney in accordance with applicable legislation with full power of substitution and to do on Debtor’s behalf anything that is required to assign, license or transfer, and to record any assignment, licence or transfer
of the Collateral. This power of attorney, which is coupled with an interest, is irrevocable until the release or discharge of the Security Interest. 
  

	14.	MISCELLANEOUS 

 (a) Debtor
hereby authorizes RBC to file such financing statements, financing change statements and other documents and do such acts, matters and things (including completing and adding schedules hereto identifying Collateral or any permitted Encumbrances
affecting Collateral or identifying the locations at which Debtor’s business is carried on and Collateral and records relating thereto are situate) as RBC may deem appropriate to perfect on an ongoing basis and continue the Security Interest,
to protect and preserve Collateral and to realize upon the Security Interest and Debtor hereby irrevocably constitutes and appoints the Manager or Acting Manager from time to time of the herein mentioned branch of RBC the true and lawful attorney of
Debtor, with full power of substitution, to do any of the foregoing in the name of Debtor whenever and wherever it may be deemed necessary or expedient. 

(b) Without limiting any other right of RBC, whenever Indebtedness is immediately due and payable or RBC has the right to declare
Indebtedness to be immediately due and payable (whether or not it has so declared), RBC may, in its sole discretion, set off against Indebtedness any and all amounts then owed to Debtor by RBC in any capacity, whether or not due, and RBC shall be
deemed to have exercised such right to set off immediately at the time of making its decision to do so even though any charge therefor is made or entered on RBC’s records subsequent thereto. 

(c) Upon Debtor’s failure to perform any of its duties hereunder, RBC may, but shall not be obligated to, perform any or all of such
duties, and Debtor shall pay to RBC, forthwith upon written demand therefor, an amount equal to the expense incurred by RBC in so doing plus interest thereon from the date such expense is incurred until it is paid at the rate of 15% per annum.

 (d) RBC may grant extensions of time and other indulgences, take and give up security, accept compositions, compound,
compromise, settle, grant releases and discharges and otherwise deal with Debtor, debtors of Debtor, sureties and others and with Collateral and other security as RBC may see fit without prejudice to the liability of Debtor or RBC’s right to
hold and realize the Security Interest. Furthermore, RBC may demand, collect and sue on Collateral in either Debtor’s or RBC’s name, at RBC’s option, and may endorse Debtor’s name on any and all cheques, commercial paper, and any
other Instruments pertaining to or constituting Collateral. 
 (e) No delay or omission by RBC in exercising any right or remedy
hereunder or with respect to any Indebtedness shall operate as a waiver thereof or of any other right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right or
remedy. Furthermore, RBC may remedy any default by Debtor hereunder or with respect to any Indebtedness in any reasonable manner without waiving the default remedied and without waiving any other prior or subsequent default by Debtor. All rights and
remedies of RBC granted or recognized herein are cumulative and may be exercised at any time and from time to time independently or in combination. 
  

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 (f) Debtor waives protest of any Instrument constituting Collateral at any time held by RBC
on which Debtor is in any way liable and, subject to Clause 13(g) hereof, notice of any other action taken by RBC. 
 (g) This
Security Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. In any action brought by an assignee of this Security Agreement and the Security
Interest or any part thereof to enforce any rights hereunder, Debtor shall not assert against the assignee any claim or defence which Debtor now has or hereafter may have against RBC. If more than one Debtor executes this Security Agreement the
obligations of such Debtors hereunder shall be joint and several. 
 (h) RBC may provide any financial and other information it
has about Debtor, the Security Interest and the Collateral to any one acquiring or who may acquire an interest in the Security Interest or the Collateral from the Bank or any one acting on behalf of the Bank. 

(i) Save for any schedules which may be added hereto pursuant to the provisions hereof, no modification, variation or amendment of any
provision of this Security Agreement shall be made except by a written agreement, executed by the parties hereto and no waiver of any provision hereof shall be effective unless in writing. 

(j) Subject to the requirements of Clauses 13(g) and 14(k) hereof, whenever either party hereto is required or entitled to notify or
direct the other or to make a demand or request upon the other, such notice, direction, demand or request shall be in writing and shall be sufficiently given, in the case of RBC, if delivered to it or sent by prepaid registered mail addressed to it
at its address herein set forth or as changed pursuant hereto, and, in the case of Debtor, if delivered to it or if sent by prepaid registered mail addressed to it at its last address known to RBC. Either party may notify the other pursuant hereto
of any change in such party’s principal address to be used for the purposes hereof. 
 (k) This Security Agreement and the
security afforded hereby is in addition to and not in substitution for any other security now or hereafter held by RBC and is intended to be a continuing Security Agreement and shall remain in full force and effect until the Manager or Acting
Manager from time to time of the herein mentioned branch of RBC shall actually receive written notice of Its discontinuance; and, notwithstanding such notice, shall remain in full force and effect thereafter until all Indebtedness contracted for or
created before the receipt of such notice by RBC, and any extensions or renewals thereof (whether made before or after receipt of such notice) together with interest accruing thereon after such notice, shall be paid in full. 

(l) The headings used in this Security Agreement are for convenience only and are not be considered a part of this Security Agreement and
do not in any way limit or amplify the terms and provisions of this Security Agreement. 
 (m) When the context so requires, the
singular number shall be read as if the plural were expressed and the provisions hereof shall be read with all grammatical changes necessary dependent upon the person referred to being a male, female, firm or corporation. 

(n) In the event any provisions of this Security Agreement, as amended from time to time, shall be deemed invalid or void, in whole or in
part, by any Court of competent jurisdiction, the remaining terms and provisions of this Security Agreement shall remain in full force and effect. 

(o) Nothing herein contained shall in any way obligate RBC to grant, continue, renew, extend time for payment of or accept anything which
constitutes or would constitute Indebtedness. 
 (p) The Security Interest created hereby is intended to attach when this
Security Agreement is signed by Debtor and delivered to RBC. 
 (q) Debtor acknowledges and agrees that in the event it
amalgamates with any other company or companies it is the intention of the parties hereto that the term “Debtor” when used herein shall apply to each of the amalgamating companies and to the amalgamated company, such that the Security
Interest granted hereby 
  

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	 	(i)	shall extend to “Collateral” (as that term is herein defined) owned by each of the amalgamating companies and the amalgamated company at the time of
amalgamation and to any “Collateral” thereafter owned or acquired by the amalgamated company, and 

  

	 	(ii)	shall secure the “Indebtedness” (as that term is herein defined) of each of the amalgamating companies and the amalgamated company to RBC at the time of
amalgamation and any “Indebtedness” of the amalgamated company to RBC thereafter arising. The Security Interest shall attach to “Collateral” owned by each company amalgamating with Debtor, and by the amalgamated company, at the
time of the amalgamation, and shall attach to any “Collateral” thereafter owned or acquired by the amalgamated company when such becomes owned or is acquired. 

(r) In the event that Debtor is a body corporate, it is hereby agreed that The Limitation of Civil Rights Act of the Province of
Saskatchewan, or any provision thereof, shall have no application to this Security Agreement or any agreement or instrument renewing or extending or collateral to this Security Agreement. In the event that Debtor is an agricultural corporation
within the meaning of The Saskatchewan Farm Security Act, Debtor agrees with RBC that all of Part IV (other than Section 46) of that Act shall not apply to Debtor. 

(s) This Security Agreement and the transactions evidenced hereby shall be governed by and construed in accordance with the laws of the
province in which the herein branch of RBC is located, as those laws may from time to time be in effect, except if such branch of RBC is located in Quebec then, this Security Agreement and the transactions evidenced hereby shall be governed by and
construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein. 
  

	15.	COPY OF AGREEMENT 

 (a)
Debtor hereby acknowledges receipt of a copy of this Security Agreement. 
 (b) Debtor waives Debtor’s right to receive a
copy of any financing statement or financing change statement registered by RBC or of any verification statement with respect to any financing statement or financing change statement registered by RBC. (Applies in all P.P.S.A. Provinces except
Ontario). 
  

	16.	DEBTOR REPRESENTS AND WARRANTS THAT THE FOLLOWING INFORMATION IS ACCURATE: 

INDIVIDUAL DEBTOR 
  

							
	SURNAME (LAST NAME)	 	FIRST NAME	 	SECOND NAME	 	 BIRTH DATE
 YEAR MONT DAY

				
	ADDRESS OF INDIVIDUAL DEBTOR	 	CITY	 	PROVINCE	 	POSTAL CODE
				
	SURNAME (LAST NAME)	 	FIRST NAME	 	SECOND NAME	 	 BIRTH DATE
 YEAR MONT DAY

				
	ADDRESS OF INDIVIDUAL DEBTOR	 	CITY	 	PROVINCE	 	POSTAL CODE

 BUSINESS DEBTOR 

 

							
	NAME OF BUSINESS DEBTOR	 		 		 	
				
	EMCON Emanation Control Ltd.	 		 		 	
				
	 ADDRESS OF BUSINESS DEBTOR
  

11 Tristan Court
	 	 CITY
  

Nepean
	 	 PROVINCE
  

ON
	 	 POSTAL CODE
  

K2E 8B9

 TRADE NAME
(IF APPLICABLE) 
  

							
	TRADE NAME OF DEBTOR	 		 		 	
				
	PRINCIPAL ADDRESS (IF DIFFERENT FROM ABOVE)	 	CITY	 	PROVINCE	 	POSTAL CODE

  

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 IN WITNESS WHEREOF Debtor has executed this Security Agreement
this         day of             ,     . 

EMCON Emanation Control Ltd. 
  

					
	  
	 		 	  

	WITNESS	 		 	
			
	  
	 		 	  

	WITNESS	 		 	

 BRANCH ADDRESS 
  

 10Security Agreement

 Exhibit 10.10 

SECURITY AGREEMENT 

THIS SECURITY AGREEMENT (the “Agreement”) is made as of this 15th day of January, 2010, by and among API Technologies
Corp., a Delaware corporation (“API Parent”), API Systems, Inc., a Delaware corporation (“API Systems”), API Defense, Inc., a Delaware corporation (“API Defense”), API Defense
USA Inc., a Delaware corporation (“API USA” and collectively with API Systems and API Defense, the “Debtors”, and each a “Debtor”) and Kuchera Defense Systems, Inc., a Pennsylvania
corporation (“K Defense”), KII Inc., a Pennsylvania corporation (“KII”), and Kuchera Industries, LLC, a Pennsylvania limited liability company (“K Industries”), as secured parties (K
Defense, KII and K Industries collectively, the “Secured Parties” and each a “Secured Party”). Capitalized terms used but not defined herein shall have the meanings given such terms in the Purchase Agreement
(defined below). 
 RECITALS: 

WHEREAS, contemporaneously with this Agreement, API Parent, Debtors and the Secured Parties are entering into an Asset Purchase Agreement
(as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”) pursuant to which Debtors are purchasing substantially all of the assets of the Secured Parties; and 

WHEREAS, it is a condition precedent to the transactions contemplated by the Purchase Agreement that at the Closing (i) API Parent
and Debtors pay to the Secured Parties $14,000,000 in cash, and (ii) Debtors deliver to the Secured Parties a promissory note (the “Note”) in the principal amount of $10,000,000.00, maturing on December 31, 2010.

 WHEREAS, the Secured Parties require, and the Debtors are willing to grant, as security for payment of the Note, a security
interest in all right, title and interest in and to the “Collateral” (as such term is defined in Paragraph 16 of this Agreement), to secure the payment and performance by the Debtors of the Note, subject to the terms and conditions
hereinafter set forth. 
 NOW, THEREFORE, to secure the payment and performance of the Note, the Debtors, intending to be
legally bound, hereby agree with the Secured Parties as follows: 
 1. Grant; Collateral. Each Debtor hereby assigns and
pledges to the Secured Parties for collateral purposes and grants to the Secured Parties a security interest in, all its right, title and interest in and to the Collateral, subject to and in accordance with the terms and conditions set forth in this
Agreement and the Note. 
 2. Liabilities. This Agreement, and the security interest herein granted
to Secured Parties, is given to secure all the following (the same being herein sometimes collectively referred to as the
“Liabilities”): 

 

	 	(a)	All amounts due and owing under the Note; 

  

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	 	(b)	All amounts owed to the Secured Parties under this Agreement in respect of assembling, storing, insuring, protecting and selling the Collateral;

  

	 	(c)	API Parent’s compliance with the API Parent Covenant (defined below); and 

 

	 	(d)	All fees, costs and expenses incurred by the Secured Parties, including without limitation court costs and reasonable attorneys’ fees, in connection with the
enforcement of this Agreement including without limitation reasonable attorneys’ fees incurred in connection with the preparation of demand letters, court filings and, in each case, investigation related thereto following the occurrence and
during the continuation of an Event of Default. 

 The parties agree that Liabilities do not include any other
amounts or obligations under the Purchase Agreement or any other Transaction Document (except this Agreement or the Note) whether in respect of cash, equity or equity-related rights. 

3. Representations and Warranties. Each Debtor hereby represents and warrants to, and covenants with, the Secured Parties, as to
each such Debtor’s respective Collateral, that: 
  

	 	(a)	Each Debtor is the absolute and exclusive owner of its respective Collateral existing as of the date hereof, and except for the Permitted Liens, has not made and shall
not make any sale, assignment, pledge, hypothecation or other transfer (each, a “Transfer”) of the Collateral, or any portion thereof, other than inventory or finished products in the ordinary course of business, and shall forever
warrant and defend Secured Parties’ title and interest in and to the Collateral against the claims and demands of all persons whomsoever, subject to the claims of those holding Permitted Liens; 

 

	 	(b)	Except for Permitted Liens, the Collateral is free and clear of all liens, charges, claims, encumbrances and security interests as of the date hereof;

  

	 	(c)	Each Debtor shall keep the tangible items of Collateral in good order, repair and condition and free and clear of all levies, attachments, liens, charges, claims,
encumbrances, security interests of every kind and nature, except for Permitted Liens; 

  

	 	(d)	 No instruments of assignment and transfer or financing statements covering the Collateral, or any part thereof, have been executed by any Debtor or are
on file in any public office, except for those in favor of the Secured Parties and those evidencing any other applicable Permitted Liens or as are permitted under this Agreement, and no Debtor will execute, or file or cause to be filed in any public
office, any instruments of assignment and transfer or any financing statement or statements, 

  

 2 

	 	 
affecting the Collateral, or any part thereof, except in favor of the Secured Parties or to the extent constituting a Permitted Lien or as otherwise permitted under this Agreement;

  

	 	(e)	Each Debtor will, at the request of the Secured Parties, execute or join with the Secured Parties in executing and, at such Debtor’s expense, file and refile under
the Uniform Commercial Code of the State in which such Debtor is organized or incorporated (the “Code”), such financing statements and amendments thereto, continuation statements and other documents in such states and in such
offices as the Secured Parties may reasonably deem necessary or appropriate and wherever required or permitted by law in order to perfect and preserve the Secured Parties’ security interest in the Collateral, and each Debtor hereby authorizes
the Secured Parties to file any and all such financing statements, amendments thereto and continuation statements and other documents relative to all or any part of the Collateral without the signature of such Debtor where permitted by law;

  

	 	(f)	No Debtor shall use or permit the Collateral to be used in violation in any material respect of any applicable law, ordinance, rule, regulation or requirement of
governmental authorities, now or hereafter in effect, or any policy or contract of insurance; 

  

	 	(g)	Except in connection with Transfers permitted hereunder or in connection with the use of items of Collateral in the ordinary course of business, no Debtor shall move
the Collateral from the respective Debtor’s premises without the prior written consent of the Secured Parties, such consent not to be unreasonably withheld, it being understood that consent shall be granted so long as the interest of the
Secured Parties granted by the Debtors hereunder is not impaired. 

  

	 	(h)	Each Debtor shall perform and comply in all material respects with (i) all policies of insurance and (ii) all laws, ordinances, rules and regulations relating
to, and shall promptly pay when due all license fees, registration fees, taxes, assessments and other charges which may be levied upon or assessed against, the ownership, operation, possession, maintenance, use or method of use of the Collateral;

  

	 	(i)	The Secured Parties, or their representatives shall have the right to inspect the Collateral at the Debtors’ places of business, one time between the date hereof
and June 30, 2010, and one time between July 1, 2010 and the Maturity Date of this Note, at reasonable times during normal business hours and upon five (5) days notice to the Debtors, it being understood that such inspections at the
Debtors’ places of business shall occur at one time and shall be conducted collectively by the Secured Parties and/or their representatives; provided however that upon the occurrence and during the continuation of an Event of Default, the
rights of the Secured Parties to inspect the Collateral shall be governed by Section 5 of this Agreement; 

  

 3 

	 	(j)	Each Debtor shall, at such time as the Secured Parties, may reasonably request, up to one time between the date hereof and June 30, 2010, and one time between
July 1, 2010 and the Maturity Date of this Note, and at such Debtor’s cost and expense, prepare list(s) certified by such Debtor describing in reasonable detail all Collateral of such Debtor subject to this Agreement; it being understood
that the request of one Secured Party shall be attributed to all Secured Parties; 

  

	 	(k)	Each Debtor shall maintain usual and customary policies of insurance on all Collateral of such Debtor subject to this Agreement, which insurance shall name Secured
Parties as loss payee, it being understood and agreed that the insurance policies of the Debtors in effect on the date hereof are deemed usual and customary and satisfactory to the Secured Parties. Each Debtor shall furnish within ten (10) days
of a request by the Secured Parties copies of the certificate of insurance evidencing the existence of insurance coverage and copies of such insurance policies; 

 

	 	(l)	Each Debtor shall promptly give written notice to the insurance carrier and to the Secured Parties of any damage to or destruction of any of its Collateral by fire or
other casualty, or by condemnation or taking; 

  

	 	(m)	Each Debtor shall give prompt notice in writing to the Secured Parties of the occurrence of an Event of Default and of any other development, financial or otherwise,
which would reasonably be likely to materially and adversely affect the Collateral; and 

  

	 	(n)	Each Debtor is organized and in good standing under the laws of the State of Delaware. 

4. Events of Default. The occurrence or existence of any one of the following events or conditions shall constitute an Event of
Default herein (referred to herein singularly as “Event of Default” and collectively as “Events of Default”): 
  

	 	(a)	any representation or warranty (whether or not so captioned) made by a Debtor in this Agreement shall be breached or violated, or prove to be false, misleading or
inaccurate, in each case, in any material respect, which is not cured within thirty (30) days following notice from a Secured Party, except that any lapse of the insurance requirements set forth in Paragraph 3(k) must be cured within ten
(10) days following notice from a Secured Party; 

  

	 	(b)	any attachment, seizure or levy, other than a Permitted Lien, shall be made upon the Collateral, in whole or in part which is not cured within 30 days following notice
from a Secured Party; 

  

 4 

	 	(c)	a Debtor shall Transfer, voluntarily or involuntarily, all or any part of the Collateral, other than sales of inventory or finished products in the ordinary course of
business; 

  

	 	(d)	Debtor shall fail to pay, perform and discharge the Liabilities, when and as due in accordance with this Agreement and the Note, and such failure shall continue uncured
or uncorrected past the applicable curative periods, if any; 

  

	 	(e)	except for the security interest granted to the Secured Parties herein, any security interest, lien, charge or encumbrance against the Collateral other than valid
leases of property to a Debtor and any other Permitted Liens, shall accrue which is not cured within thirty (30) days following notice from any Secured Party; 

 

	 	(f)	a Debtor becomes insolvent or unable to pay its debts as they become due; 

  

	 	(g)	a Debtor (i) makes an assignment for the benefit of creditors; (ii) consents to the appointment of a custodian, receiver or trustee for itself or for a
substantial part of its assets; or (iii) commences or consents to any proceeding under any bankruptcy, reorganization, liquidation, insolvency or similar laws of any jurisdiction, and such proceedings remain undismissed for sixty (60) days
after commencement; 

  

	 	(h)	A custodian, receiver or trustee is appointed for a Debtor for a substantial part of its assets without its consent and is not removed within sixty (60) days after
such appointment; and 

  

	 	(i)	the failure by a Debtor to perform an obligation under this Agreement other than as specifically described in any other clause of this Section 4, the result of
which failure would reasonably be expected to have a material adverse effect on the Collateral and payment of the Liabilities, and the continuation of such failure for a period of thirty (30) days after written notice thereof.

 5. Remedies. 
  

	 	(a)	Upon the occurrence or existence of any of the Events of Default, then at the option of the Secured Parties following three (3) days notice to the Debtors, the
Secured Parties shall, to the fullest extent permitted by law, be entitled, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived except as set forth herein, to: 

 

	 	(i)	appropriate and apply on the payment of the Liabilities (whether or not due), any and all accounts or monies held in possession of the Secured Parties for the benefit
of a Debtor; 

  

 5 

	 	(ii)	enter upon a Debtor’s premises during normal business hours with reasonable notice, which notice shall require a Debtor to assemble the Collateral and all books
and records related thereto at any place or places reasonably specified by the Secured Parties, to inspect the Collateral and take possession of the Collateral; 

 

	 	(iii)	exercise in respect to the Collateral all the rights, powers and remedies available to Collateral Agent upon default under the Code then in effect, including the right
to sell, publicly or privately, the Collateral, or any part thereof; and 

  

	 	(iv)	exercise any and all other rights, powers and remedies as may be provided in the Transaction Documents and such other rights and remedies as may be provided at law or
in equity. 

  

	 	(b)	No delay or omission of the Secured Parties to exercise any right or remedy granted under this Agreement shall impair such right or remedy or be construed to be a
waiver of any Event of Default or an acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other or further exercise thereof or the exercise of any other right or remedy. No waiver, amendment or
other variation of the terms, conditions or provisions of this Agreement whatsoever shall be valid unless in writing signed by the parties hereto and then only to the extent in such writing specifically set forth. All rights and remedies contained
in this Agreement or by law afforded shall be cumulative and all shall be available to the Secured Parties until the Liabilities have been paid in full. 

  

	 	(c)	If any notification of intended disposition of the Collateral is required by law, such notification, if mailed shall be deemed reasonably and properly given if mailed
at least ten (10) days before such disposition, full postage prepaid, sent by certified mail return receipt requested, addressed to each Debtor, at the address for notices set forth in the Purchase Agreement, as such addresses may be updated
from time to time by the respective parties. Upon any sale of all, or any part of, the Collateral by the Secured Parties hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt of a
Secured Party or the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase
money paid over to a Secured Party or such officer or be answerable in any way for the misapplication or non-application thereof. 

6. Application of Proceeds. All proceeds of the sale or disposition of the Collateral by the Secured Parties as herein provided
shall be applied to payment of the Liabilities in the following order unless a court of competent jurisdiction shall otherwise direct: 
  

	 	(a)	FIRST, to payment of all costs and expenses of the Secured Parties incurred in connection with the collection and enforcement of the Liabilities or of the security
interest granted to the Secured Parties pursuant to this Agreement; 

  

 6 

	 	(b)	SECOND, to payment of that portion of the Liabilities constituting accrued and unpaid interest owing to the Secured Parties; and 

 

	 	(c)	THIRD, to payment of the principal of the Liabilities then due and unpaid from the Debtors to the Secured Parties. 

7. Secured Parties’ Performance of Debtors’ Obligations. If a Debtor shall fail to do any act or thing which such Debtor
has covenanted or agreed to do hereunder, or any covenant, representation, warranty or agreement (whether or not so captioned) by any Debtor shall be breached or violated, the result of which, in each case, is to result in an Event of Default, the
Secured Parties may, but shall not be obligated to, after the expiration of the applicable curative or grace period, if any, do the same or cause it to be done, or remedy such breach or violation, and if, in connection therewith, Secured Parties
shall make any advances or expenditures of money for the account of such Debtor, then there shall be added to the Liabilities the reasonable costs or expenses so paid or incurred by the Secured Parties, and any and all amounts paid or incurred by
the Secured Parties in taking any such action shall be repaid to the Secured Parties upon demand being made to such Debtor therefor. 

8. Waiver of Liability. Nothing herein contained shall be construed as constituting any Secured Party a trustee or mortgagee in
possession. In the exercise of the powers herein granted and assigned to the Secured Parties, no liability shall be asserted or enforced against the Secured Parties, all such liability being expressly waived and released by each Debtor and any
person or persons claiming by, through or under a Debtor; provided however that nothing in this Agreement shall be construed to limit or restrict in any way any rights that API Parent or any Debtor may have against any Secured Party
arising under the other Transaction Documents or otherwise. 
 9. Indemnity. Subject to Section 11.6 of the Purchase
Agreement, each Debtor shall and does hereby agree to indemnify, protect, save and hold forever harmless the Secured Parties and each of their respective agents (collectively, the “Indemnitees”) from and against any and all costs
and expenses, including court costs and reasonable attorneys’ fees and expenses, which the Indemnitees, or any of them, may or might incur, suffer or sustain under or by reason of enforcement of this Agreement. If any of the Indemnitees shall
incur any such costs and expenses under this Agreement, the amount thereof, including court costs, and reasonable attorneys’ fees and expenses, shall be secured hereby, and the Debtors, jointly and severally, shall, upon demand, immediately
reimburse the Indemnitees therefor. 
 10. Inaction of Secured Parties. No Secured Party shall, in any way, be
responsible to any Debtor for failure to do any or all of the things for which rights, interests, power or 
  

 7 

 
authority are herein granted and assigned to the Secured Parties, nor shall any Secured Party be required to make an accounting for the benefit of the Debtors, except for amounts claimed owed to
and monies actually received by the Secured Parties in accordance with the terms hereof, each Debtor hereby expressly waiving, and releasing the Secured Parties from any and all such responsibility, liability and requirements. 

11. Parity of Security. In the event of a default by a Debtor under this Agreement, the Secured Parties may realize upon the
security given under this Agreement singly, successively or cumulatively, at such time and in such order as the Secured Parties may, in their sole discretion, elect. 

12. Foreclosure or Other Judgments. No judgment or decree which may be entered on any Liabilities shall operate to abrogate or
lessen the effect of this Agreement, but this Agreement shall continue in full force and effect until the full and final payment and discharge of any and all Liabilities, in whatever form the Liabilities may be, and of any and all costs and expenses
incurred and sustained by virtue of the authority herein contained have been fully paid from the proceeds of the Collateral, or until such time as this Agreement may be voluntarily released. This Agreement shall also remain in full force and effect
during the pendency of any foreclosure proceedings, both before and after sale, until the issuance of a bill of sale pursuant to a foreclosure decree, unless the Liabilities are fully and finally paid and discharged. 

13. No Waiver. No failure on the part of the Secured Parties to exercise, and no delay in exercising, any rights, powers,
privileges, interests or remedies hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such rights, powers, privileges, interests or remedies by the Secured Parties preclude any other or further exercise
thereof or the exercise of any other rights, powers, privileges, interests or remedies. All rights, powers and remedies hereunder are cumulative and not exclusive of any other rights, powers or remedies provided in this Agreement or any other
Transaction Documents, or at law or in equity, and each and all such rights, powers and remedies provided in the Note or this Agreement, or at law or in equity, and each and all such rights, powers and remedies may be pursued or exercised singly,
successively or cumulatively, at such time or times and in such order as the Secured Parties may, in their sole discretion, elect. 

14. Release and Discharge. 
  

	 	(a)	At such time as all Liabilities and all obligations of the Debtors hereunder have been fully and finally paid and performed, this Agreement shall terminate and be of no
further force and effect. After such termination, if requested by a Debtor, the Secured Parties shall execute and deliver to such Debtor for filing in each office in which any financing statement relative to its Collateral, or any part thereof,
shall be filed, a termination statement under the Code and shall also execute and deliver to such Debtor a release of any and all of the Collateral for the purpose of releasing the Secured Parties’ interest in the Collateral, all without
recourse to or representation, warranty and covenant by the Secured Parties and at the cost and expense of such Debtor. 

  

 8 

	 	(b)	Each of the Secured Parties hereby agrees that all right, title and interest in any Collateral shall be released automatically upon consummation of a Transfer of such
Collateral to any person and agrees that upon request of the applicable Debtor and at the Debtor’s expense, it shall promptly execute and deliver any agreements, instruments, filings or other documents reasonably necessary or appropriate to
evidence the release of such right, title and interest in such Collateral. 

 15. Further Assurances. Each
Debtor agrees to perform such further acts and things and to execute and deliver to the Secured Parties such additional assignments, agreements, assurances, certificates, opinions and other documents and instruments as the Secured Parties may
reasonably require or deem advisable to carry into effect the purposes of this Agreement (collectively with this Agreement, the “Collateral Documents”), or to better assure, perfect, protect, preserve and confirm unto the Secured
Parties its rights, powers, privileges, interest and remedies under this Agreement; provided that such additional assignments, agreements, assurances, certificates, opinions or other documents or instruments are consistent with the terms hereof and
the other Transaction Documents and do not impose additional liabilities or obligations on API Parent or the Debtors; provided further that any such acts, things, assignments, agreements, assurances, certificates, opinions and other documents and
instruments shall not be required with respect to titled vehicles or other such titled equipment unless and until an Event of Default has occurred. 

16. Definitions. For purposes of this Section 16, capitalized terms used but not specifically defined in this Agreement or
the Purchase Agreement shall have the meanings ascribed to them in the Code. As used herein, the following terms shall have the meanings set forth below: 
  

	 	(a)	“API Parent Covenant” has the meaning given to in Paragraph 19. 

 

	 	(b)	“Collateral” shall mean (i) the Assets, and after-acquired government and non-government contracts and purchase orders relating to the Business,
to the extent that any such contracts and purchase orders are not prohibited by the terms thereof or any applicable law from being pledged pursuant to this Agreement, (ii) any and all improvements, replacements, additions and accessions
thereto, and (iii) the proceeds thereof including proceeds of any insurance covering the Collateral. 

  

	 	(c)	“Escrow Agreement” shall mean that certain Escrow Agreement, dated as of the date hereof, by and among API Parent, the Secured Parties, and Escrow
Agent, as such agreement may be amended, restated, supplemented or otherwise modified from time to time. 

  

	 	(d)	 “Permitted Liens” means the liens granted to the Secured Parties hereunder together with (i) any liens on the Collateral existing
as of the date hereof as set forth on Schedule 16(d) hereto, and, in each case, any replacement liens thereof, (ii) any liens arising in the ordinary course of business or by operation of law including mechanics’,

  

 9 

	 	 
carriers’ landlord’s, materialmen’s and other similar liens, (iii) liens for taxes, fees, assessments or other governmental charges which are not delinquent or remain payable
without penalty or which are being duly contested by a Debtor, (iv) liens consisting of pledges or deposits required in the ordinary course of business in connection with workers’ compensation, unemployment insurance, social security
benefits and other analogous legislation, (v) liens to secure the performance of tenders, statutory obligations, surety, governmental contracts, bids, leases, indemnity or other similar obligations or to secure liability to insurance carriers,
(vi) liens in respect of judgments or judicial attachments, (vii) liens securing capital lease obligations or liens on property arising to secure the indebtedness incurred or assumed to purchase such property, (viii) liens arising
from precautionary UCC filings, (ix) liens on accounts receivable for which attempts at collection have been undertaken by an authorized third party, (x) the rights of collecting banks or other financial institutions having a right of
setoff, revocation or chargeback with respect to money or instruments in the possession of such financial institution, (xi) imperfections of title, covenants, restrictions, easements and other encumbrances on real property that do not interfere
with the utility, operation, value or marketability of the real property on which such lien is imposed, and (xii) leases or subleases granted to others not interfering in any material respect with the business of a Debtor or any interest or
title of a lessor under any lease. 

  

	 	(e)	“Registration Rights Agreement” shall mean that certain Registration Rights and Put Rights Agreement by and among API Parent, K Defense, KII and K
Industries; as such agreement may be amended, restated, supplemented or otherwise modified from time to time. 

  

	 	(f)	“Transaction Documents” shall mean this Agreement, the Purchase Agreement, the Note, the Registration Rights Agreement and the Escrow Agreement.

 17. Notices. Except as otherwise provided herein, any and all notices given in connection with this
Agreement shall be deemed adequately given only if given as set forth in the Purchase Agreement. 
 18. API Parent. API
Parent is a party to this Agreement solely for purposes of making the following covenant (the “API Parent Covenant”). API Parent hereby covenants and agrees that all new or prospective business of the Debtors of the type conducted
by the Secured Parties prior to the date hereof that would have belonged to Secured Parties but for the sale and closing pursuant to the Purchase Agreement shall be taken and contracted for in the name of one of the Debtors. 

19. Miscellaneous. It is further understood and agreed that: 

 

	 	(a)	Time is of the essence with respect to each and every covenant, agreement and obligation of the Debtors under this Agreement; 

 

 10 

	 	(b)	Any action, request, consent or notice by a Secured Party shall be imputed to each other Secured Party, and API Parent and the Debtors shall be entitled to rely upon
any such action, request, consent or notice as if it were by all of the Secured Parties. Notwithstanding the foregoing, API Parent and the Debtors shall be entitled at any time to request written affirmation by the other Secured Parties of any
action, request, consent or notice by one or more (but less than all of the) Secured Parties, and any requirement that API Parent or the Debtors act or refrain from acting or do so within a given period of time shall be suspended until such
affirmation has been received. In the event that any Secured Party objects to or disagrees with the action, request, consent or notice by any other Secured Party with respect to this Agreement and provides notice thereof to the API Parent and
Debtors, the API Parent and Debtors shall be entitled, at their option, to refrain from taking any action related to such action, request, consent or notice until such time as any such disagreement among the Secured Parties has been resolved to the
reasonable satisfaction of API Parent and the Debtors, and any requirements to act or refrain from acting or do so within a given period of time shall be suspended until such resolution has occurred; 

 

	 	(c)	All liabilities and obligations of Debtors hereunder are, and shall be, at all times, joint and several. This Agreement, and all the terms, covenants agreements and
conditions hereof, shall extend to, be binding upon and enforceable against each of the parties hereto and their respective successors and assigns, except that the Debtors shall not have the right to assign their respective rights or delegate their
respective obligations under this Agreement or any interest herein, without the prior written consent of the Secured Parties such consent not to be unreasonably withheld; 

 

	 	(d)	The singular shall include the plural, and the plural the singular, and pronouns of any gender shall include the other gender, wherever required by the context hereof;

  

	 	(e)	The paragraph headings of this Agreement are for convenience only and are not intended to alter, limit or enlarge in any way the scope or meaning of the language
hereof; and 

  

	 	(f)	 EACH DEBTOR, PARENT AND EACH SECURED PARTY HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION 

  

 11 

	 	 
WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. EACH SUCH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF ANY CLAIM, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER AGREEMENTS
CONTEMPLATED HEREBY, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH 19(f). 

  

	 	(g)	This Agreement is and shall be deemed made under, and governed by and construed in accordance with the internal law of the Commonwealth of Pennsylvania, and
(ii) may be enforceable in the State Courts of Pennsylvania, with an action commenced in the Court of Common Pleas of Somerset or Cambria Counties or in the United States District Court of said Commonwealth in whose jurisdiction Somerset and
Cambria Counties lie. API Parent and Debtors hereby waive any claim that Pittsburgh, Pennsylvania, Somerset or Johnstown, Pennsylvania is an inconvenient forum and any claim that any action or proceeding arising out of or relating to this Agreement
and commenced in the aforesaid courts lacks proper venue. 

  

	 	(h)	This Agreement and the documents referred to herein (including, but not limited to the Transaction Documents) and to be delivered pursuant hereto constitute the entire
agreement between the parties pertaining to the subject matter hereof, and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions of the parties, whether oral or written, and there are no warranties,
representations or other agreements between the parties in connection with the subject matter hereof, except as specifically set forth herein or therein. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision of this Agreement, whether or not similar, nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. The representations and warranties of each party hereto shall be deemed to be material
and to have been relied upon by the other party. 

  

 12 

 IN WITNESS WHEREOF, API Parent, each Debtor and each of the Secured Parties have
hereto set its hand to this Agreement as of the date first above written, pursuant to proper authority duly granted. 
  

			
	API TECHNOLOGIES CORP., as API Parent
		
	By:	 	 /s/ Stephen Pudles

	Name:	 	 Stephen Pudles

	Title:	 	 Chief Executive Officer

	
	API SYSTEMS, INC., as a Debtor
		
	By:	 	 /s/ Stephen Pudles

	Name:	 	 Stephen Pudles

	Title:	 	 Chief Executive Officer

	
	API DEFENSE, INC., as a Debtor
		
	By:	 	 /s/ Stephen Pudles

	Name:	 	 Stephen Pudles

	Title:	 	 Chief Executive Officer

	
	API DEFENSE USA CORP., as a Debtor
		
	By:	 	 /s/ Stephen Pudles

	Name:	 	 Stephen Pudles

	Title:	 	 Chief Executive Officer

	
	KUCHERA DEFENSE SYSTEMS, INC., as a Secured Party
		
	By:	 	 /s/ Ronald Kuchera

	Name:	 	 Ronald Kuchera

	Title:	 	 President

 

 13 

			
	KII INC., as a Secured Party
		
	By:	 	 /s/ William Kuchera

	Name:	 	 William Kuchera

	Title:	 	 President

	
	KUCHERA INDUSTRIES, LLC, as a Secured Party
		
	By:	 	 /s/ Ronald Kuchera

	Name:	 	 Ronald Kuchera

	Title:	 	 Member

 

 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]