Document:

SECURITY AGREEMENT

 EXHIBIT 10.2 
 SECURITY AGREEMENT 
 This SECURITY AGREEMENT, dated as of June 16,
2011 (this “Agreement”), is among SCOLR Pharma, Inc., a Delaware corporation (the “Company” or the “Debtor”), and the holders of the Company’s 8% Senior Secured Convertible Debentures due two
years following their issuance, in the original aggregate principal amount up to $1,750,000 (collectively, the “Debentures”) signatory hereto, their endorsees, transferees and assigns (collectively, the “Secured
Parties”). 
 W I T N E S S E T H: 
 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; and 

WHEREAS, in order to induce the Secured Parties to extend the loans evidenced by the Debentures, the 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 the
Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Debentures. 
 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 Debtor,
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, if any, (as defined below): 

(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; 

  
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 (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, if any, licenses, distribution and other agreements, computer
software (whether “off-the-shelf”, licensed from any third party or developed by the 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 

(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 any other shares of
capital stock and/or other equity interests of any other direct or indirect subsidiary of the 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, if
any, 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. 

  
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 (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. 
 (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 the Debtor to the Secured Parties, including, without limitation, all obligations under this Agreement, the Debentures 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 Debtor from time to time under or in connection with this Agreement, the Debentures 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 the Debtor. 

  
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 (f) “Organizational Documents” the documents by which the
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 the Debtor (such as bylaws, a partnership agreement or an operating, limited liability or members agreement). 
 (g) “Permitted Dispositions” shall have the meaning ascribed to such term in Section 4(l). 
 (h) “Pledged Interests” shall have the meaning ascribed to such term in Section 4(j). 
 (i) “Pledged Securities” shall have the meaning ascribed to such term in Section 4(i). 
 (j) “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. 
 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, the 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, or if formed or acquired after the date hereof on the date of formation or acquisition, the 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, if any, 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 Debtor is, 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, if any.

 4. Representations, Warranties, Covenants and Agreements of the Debtor. 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, the Debtor represents and warrants to, and covenants
and agrees with, the Secured Parties as follows: 
 (a) The 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 the Debtor of this Agreement and the filings contemplated therein
have been duly authorized by all necessary action on the part of the Debtor and no further action is required by the Debtor. This Agreement has been duly executed by the Debtor. This Agreement constitutes the legal, valid and binding obligation of
the Debtor, enforceable against the 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. 
 (b) The Debtor has no place of business or offices
where its respective books of account and records are kept (other than temporarily at the offices of its attorneys or accountants) or places where 

  
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Collateral is stored or located, except as set forth on Schedule A attached hereto. Except as specifically set forth on Schedule A, the 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 that is owned by the Debtor 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 Debtor is the sole owner of the Collateral (except for non-exclusive licenses granted by the 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 Debtor 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 the Debtor’s use of any Collateral violates the rights
of any third party. There has been no adverse decision to the Debtor’s claim of ownership rights in or exclusive rights to use the Collateral in any jurisdiction or to the 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 the Debtor, threatened before any court, judicial body, administrative or regulatory agency, arbitrator or other governmental authority. 

(e) The 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. 

(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 (mm), 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 Debtor, 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 (it being acknowledged that no Intellectual Property Security Agreement or Account Control Agreement is contemplated to be delivered

  
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unless requested by the Agent). 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, other than has been obtained or made, 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 by the Company, or (ii) the creation or perfection of the Security Interests created hereunder in the Collateral as it
exists on the date hereof. 
 (g) The 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 Debtor does not (i) violate any of the provisions of any Organizational Documents of the Debtor or any judgment, decree, order or
award of any court, governmental body or arbitrator or any applicable law, rule or regulation applicable to the 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 the Debtor’s debt or otherwise)
or other understanding to which the Debtor is a party or by which any property or asset of the Debtor is bound or affected. If any, all required consents (including, without limitation, from stockholders or creditors of the Debtor) necessary for the
Debtor to enter into and perform its obligations hereunder have been obtained. 
 (i) The Company does not own,
directly or indirectly, any capital stock or other equity interests. In the event that the Company (or any subsidiary hereafter formed or acquired) forms or acquires capital stock or equity interest, directly or indirectly, of another entity, such
capital stock or equity interest shall be defined as “Pledged Securities” hereunder. The Company shall keep such Pledged Securities free and clear of any liens, security interest or other encumbrance, other than the Security Interest
created by this Agreement, and the Company shall comply with all terms and conditions hereunder in respect of the Pledged Securities on the date(s) acquired (including, without limitation, the delivery of such Pledged Securities to the Agent
together with Necessary Endorsements). 
 (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), the Debtor shall at
all times required by this Agreement maintain the liens and Security Interests provided for hereunder as valid and perfected (but only to the extent later requested by the Agent with respect to Collateral perfected other than by filing a financing
statement under Article 9 of the UCC) 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. The
Debtor hereby agrees to defend the same against the claims of any and all persons and entities other than those with Permitted Liens or in respect of Permitted Dispositions. The Debtor shall safeguard and protect all Collateral for the account of
the Secured Parties. At the request of the Agent, the 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 Article 9 of the UCC in form reasonably
satisfactory to the Agent and will pay the cost of filing the 

  
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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, the Debtor shall pay all fees, taxes and similar charges necessary to maintain the Collateral and the Security Interests hereunder, and the 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) The Debtor will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral, except in the ordinary course of business, including, without limitation,
non-exclusive licenses granted by the Debtor in its ordinary course of business and sales of inventory and depreciated equipment by the Debtor in its ordinary course of business (“Permitted Dispositions”), and subject to the
restrictions set forth in Section 4(c)) without the prior written consent of a Majority in Interest. 
 (m)
The 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. 
 (n) The 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. The 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 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 the 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 the 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) The 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. 

  
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 (p) The 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 reasonably 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 the 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) The 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) The Debtor shall use commercially reasonable efforts to pursue and seek to preserve, enforce and collect any rights,
claims, causes of action and accounts receivable in respect of the Collateral. 
 (s) The 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 the 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 the Debtor with
respect to the Collateral is accurate and complete in all material respects as of the date furnished. 
 (u) The
Debtor 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 for the periods permitted by applicable law. 

(v) The Debtor will not 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, the
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, the Debtor may not 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) The Debtor may not 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, the 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. 

  
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 (y) The Debtor was organized and remains organized solely under the laws of
the State of Delaware. Schedule D sets forth the Debtor’s organizational identification number or, if the Debtor does not have one, states that one does not exist. 

(z) (i) The actual name of the Debtor is the name set forth in the preamble to this Agreement; (ii) the Debtor
has no trade names; (iii) the Debtor has not used any name other than that stated in the preamble for the preceding five years; and (iv) no entity has merged into the Debtor or been acquired by the Debtor within the past five years.

 (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 Debtor shall deliver such Collateral to the Agent. 

(bb) The 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 the Debtor as contemplated by Section 8-106 (or any successor section) of the UCC. Further, the 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) The 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 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 Debtor shall notify the Secured Parties and the Agent, and upon request of the Agent 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 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 Debtor shall join with the Agent, as requested by 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 the Debtor shall at any time hold or acquire a commercial tort claim, the Debtor shall promptly notify the Secured
Parties in a writing signed by the 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) The 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,

  
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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. 

(ii) The Debtor shall cause each subsidiary of the 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 to the Debtor. 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 Debtor, 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 “Debtor” shall be
deemed to include each Additional Debtor. 
 (jj) The Debtor shall vote the Pledged Securities, if any, to comply
with the covenants and agreements set forth herein and in the Debentures. 
 (kk) The Debtor shall register the
pledge of the applicable Pledged Securities, if any, on the books of the Debtor. The Debtor shall notify each issuer of Pledged Securities, if any, to register the pledge of the applicable Pledged Securities, if any, 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 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, if any, 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, if any, 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, if any, without the further consent of the Debtor. 
 (ll) In the event that, upon an occurrence of an Event of Default, Agent shall sell all or any of the Pledged Securities, if any, to another party or parties (herein called the
“Transferee”) or shall purchase or retain all or any of the Pledged Securities, if any, the 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 Debtor and its direct and
indirect subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and directors of the Debtor and its 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, if any, to the Transferee or the purchase or retention of the Pledged Securities, if any, by Agent and allow the Transferee
or Agent to continue the business of the Debtor and its direct and indirect subsidiaries. 

  
 10 

 (mm) Without limiting the generality of the other obligations of the Debtor
hereunder, the Debtor shall promptly upon request of the Agent (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) The Debtor will from time to time,
promptly execute and deliver all such further instruments and documents, and take all such further action as the Agent may reasonably request to perfect and protect any security interest 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 E attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights, and domain names owned by the Debtor as of the date hereof.
Schedule E lists all material licenses in favor of the Debtor for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks of the Debtor have been duly recorded at the United
States Patent and Trademark Office and all material copyrights of the Debtor have been duly recorded at the United States Copyright Office. 
 (pp) Except as set forth on Schedule F 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. 
 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 the Debtor is subject or to which the Debtor is party. 
 6. Defaults. The following events shall be
“Events of Default”: 
 (a) The occurrence and continuance of an Event of Default (as defined in
the Debentures) under the Debentures; 
 (b) Any representation or warranty of the Debtor in this Agreement shall
prove to have been incorrect in any material respect when made; 
 (c) The failure by the Debtor to observe or
perform any of its obligations hereunder for five (5) days after delivery to the 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 the
Debtor is using best efforts to cure same in a timely fashion; or 

  
 11 

 (d) If any material 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 the Debtor, or a proceeding shall be commenced by the Debtor, or by any governmental authority having jurisdiction over the Debtor, seeking to
establish the invalidity or unenforceability thereof, or the Debtor shall deny that the Debtor has any liability or obligation purported to be created under this Agreement. 
 7. Duty To Hold In Trust. 
 (a) Upon the occurrence and
continuance of any Event of Default and at any time thereafter, the 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 the Debtor shall become entitled to receive or shall receive
any securities or other property (including, without limitation, shares of Pledged Securities, if any, or instruments representing Pledged Securities, if any, 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 the Debtor or any of its direct or
indirect subsidiaries) in respect of the Pledged Securities, if any, (whether as an addition to, in substitution of, or in exchange for, such Pledged Securities, if any, or otherwise), the 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 the 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. 

8. Rights and Remedies Upon Default. 
 (a) Upon the occurrence of any Event of Default and during the continuance thereof, 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 the Debtor shall assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably
select, whether at the Debtor’s premises or elsewhere, and make available to the Agent, without rent, all of the 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. 

  
 12 

 (ii) Upon notice to the Debtor by Agent, all rights of the Debtor to
exercise the voting and other consensual rights which it would otherwise be entitled to exercise and all rights of the 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 the Debtor or
any of its direct or indirect subsidiaries. 
 (iii) The Agent shall have the right to operate the business of
the 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, 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 the Debtor or right of redemption of the 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 the
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 Debtor’s 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 the 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 Debtor will only be credited with payments actually made by the purchaser. In addition, the 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. 

  
 13 

 (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, the 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 and during the continuance of an Event of Default, any Intellectual Property now owned or hereafter acquired by the 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. 

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 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 Debtor 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, the 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. 
 10. Securities Law Provision. The 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, if any, 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, if any, for their own account, for investment and not with a view to the distribution or resale
thereof. The Debtor agrees that sales so made may be at prices and on terms less favorable than if the Pledged Securities, if any, were sold to the public, and that Agent has no obligation to delay the sale of any Pledged Securities, if any, for the
period of time necessary to register the Pledged Securities, if any, for sale to the public under the Securities Laws. The 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, if any, by Agent. 

11. Costs and Expenses. The 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 Debtor shall also pay all other claims and charges (other than in respect of Permitted Liens) 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 

  
 14 

 
Debtor 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, including the reasonable fees and expenses of its counsel and of any experts and agents, 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 Debtor assumes 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) the Debtor shall remain obligated and liable under each contract or agreement
included in the Collateral to be observed or performed by the 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 the 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. 

13. Security Interests Absolute. All rights of the Secured Parties and all obligations of the Debtor 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 the 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. The 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, the 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. The 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. The Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby. 

  
 15 

 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 or all Debentures have been converted in accordance with their terms, and all other Obligations have been paid or discharged; provided, however, that all
indemnities of the Debtor 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. Upon termination of this
Agreement, the Agent agrees to execute any and all documents on behalf of the Secured Parties reasonably requested by the Debtor for the release of the Security Interest on the Collateral, including, without limitation, UCC-3 termination statements.

 15. Power of Attorney; Further Assurances. 

(a) The 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 the Debtor’s true and lawful attorney-in-fact, with power, in the name of the Agent or the 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 Debtor, 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 Debtor might or could do; and the 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 the Debtor is subject or to which the 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, the 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 G
attached hereto, all such instruments, and take all such action as may reasonably be deemed by the Agent 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. 

  
 16 

 (c) The Debtor hereby irrevocably appoints the Agent as the Debtor’s
attorney-in-fact, with full authority in the place and instead of the Debtor and in the name of the 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 the 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. 
 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). The
address of the Agent for such purposes is as set forth on the signature pages hereto. 
 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 CSC Trust Company of Delaware to act as their agent
(“CSC” 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. The Agent shall have the rights, responsibilities and immunities set forth in Annex B hereto. 
 19. Miscellaneous. 
 (a) No course of dealing between the
Debtor 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 Debtor and the Secured Parties holding 67% 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. 

  
 17 

 (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 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 permissibly 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, the 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, the 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. 

  
 18 

 (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) The 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 to the extent 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 the
Debtor or any if its direct or indirect subsidiaries that is a partnership or as a member in the 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 the 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 the Debtor as a partner or member, as applicable, pursuant hereto. 
 (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 the Debtor or any direct or indirect subsidiary of the Debtor or compliance
with any provisions of any of the Organizational Documents, the Debtor hereby grant such consent and approval and waive any such noncompliance with the terms of said documents. 
 [SIGNATURE PAGES FOLLOW] 

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

					
	SCOLR PHARMA, INC.
		
	By:	 	   /s/ Richard M. Levy

		 	Name:	 	  Richard M. Levy
		 	Title:	 	Executive Vice President and Chief Financial Officer

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
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 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Donald V. Moline

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ D. V. Moline

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 21 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Frank Gimenez & Philomena
Gimenez

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Frank Gimenez

 

			
	Signature, if Joint account:	 	 /s/ Philomena Gimenez

 

			
	Name of Authorized Signatory:	 	 Frank and Philomena Gimenez

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 22 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Woodrow W. Gunter II

  

			
	 Signature of Authorized Signatory of Investing entity:
	 	 /s/ Woodrow W. Gunter

 

			
	 Signature, if Joint account:
	 	  

 

			
	 Name of Authorized Signatory:
	 	  

 

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 23 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Douglas Friedrich & Melanie Friedrich
JT/WROS

  

			
	 Signature of Authorized Signatory of Investing entity:
	 	  

 

			
	 Signature, if Joint account:
	 	 /s/ Douglas Friedrich & Melanie
Friedrich

  

			
	 Name of Authorized Signatory:
	 	  

 

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 24 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	  	 Justin Gasarch

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Justin Gasarch

 

			
	Signature, if Joint account: 	 	  

 

			
	Name of Authorized Signatory:	 	 Justin Gasarch

 

			
	Title of Authorized Signatory:	 	 Owner

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 25 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Randall S. Knox

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Randall S. Knox

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 26 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Dale M. Mayol

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Dale M. Mayol

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 27 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Kenneth E. King

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Kenneth E. King

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 28 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Kenneth W. Cleveland

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Kenneth W. Cleveland

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 29 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Andrew K. Light

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Andrew K. Light

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 30 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Andrew Hargroder

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Andrew Hargroder

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Andrew Hargroder

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 31 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	
Arthur & Marie Sterling

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Arthur Sterling

 

			
	Signature, if Joint account:	 	 /s/ Marie E. Sterling

 

			
	Name of Authorized Signatory:	 	 Arthur Sterling

 

			
	Title of Authorized Signatory:	 	 Marie Sterling

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 32 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Angus Bruce / Lauralee Bruce

 

			
	Signature of Authorized Signatory of Investing entity:	 	  

 

			
	Signature, if Joint account: 	 	 /s/ Angus Bruce and Lauralee
Bruce

  

			
	Name of Authorized Signatory:	 	 Angus Bruce

 

			
	Title of Authorized Signatory:	 	 Lauralee Bruce

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 33 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 John R. Bertsch Trust 12/4/2004 John R Bertsch
TTEE

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ John R. Bertsch TTEE

 

			
	Signature, if Joint account: 	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 34 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 David G. Linville

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ David G. Linville

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 35 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 David R. Gienapp

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ David R. Gienapp

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 David R. Gienapp

 

			
	Title of Authorized Signatory:	 	 Individual

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 36 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Mark Ravich

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Mark Ravich

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 37 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Junge Revocable Trust Dtd 12/09/1991 John P. Junge
TTEE

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ John P. Junge, Trustee

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 38 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Michael Dunham

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Michael Dunham

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 39 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Bibicoff Family Trust

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Harvey Bibicoff

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Harvey Bibicoff

 

			
	Title of Authorized Signatory:	 	 Trustee

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 40 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Shadow Capital LLC

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ B. Kent Garlinghouse

 

			
	Signature, if Joint account:	 	  

 

			
	 Name of Authorized Signatory:
	 	 B. Kent Garlinghouse

 

			
	 Title of Authorized Signatory:
	 	 Manager

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 41 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Nationwide Fleet Services
Inc.

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Kirt Fouque

 

			
	Signature, if Joint account:	 	  

 

			
	 Name of Authorized Signatory:
	 	 Kirt Fouque

 

			
	 Title of Authorized Signatory:
	 	 President

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 42 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Dennis Fortin

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Dennis Fortin

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 43 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Steven A. Boggs

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Steven A. Boggs

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Steven A. Boggs

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 44 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Mark S. Bourque

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Mark Bourque

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 45 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Ray W. Cruz

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Ray W. Cruz

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 46 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 David Stetson

			
		
	Signature of Authorized Signatory of Investing entity:	 	 /s/ David Stetson

			
		
	Signature, if Joint account:	 	  

			
		
	Name of Authorized Signatory:	 	 David Stetson

			
		
	Title of Authorized Signatory:	 	 N/A

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 47 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Tad Wilson

			
		
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Tad Wilson

			
		
	Signature, if Joint account:	 	  

			
		
	Name of Authorized Signatory:	 	  

			
		
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 48 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 John W. Crow

			
		
	Signature of Authorized Signatory of Investing entity:	 	 /s/ John W. Crow

			
		
	Signature, if Joint account:	 	  

			
		
	Name of Authorized Signatory:	 	  

			
		
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 49 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 John S. Tschohl TOD Dtd.
3/15/2006

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ John S. Tschohl

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 50 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Albert Esposito & Margaret Esposito
JTWROS

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Albert Esposito

 

			
	Signature, if Joint account:	 	 /s/ Margaret Esposito

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 51 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Charles B. Hilton

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Charles B. Hilton

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 52 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Glenn R. Hubbard

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Glenn R. Hubbard

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 53 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 David Frank Rios & Margaret Jo Rios 1999
Trust

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ David F Rios

 

			
	Signature, if Joint account:	 	 /s/ Margaret Rios

 

			
	Name of Authorized Signatory:	 	 David Frank Rios - Trustee

 

			
	Title of Authorized Signatory:	 	 Margaret Jo Rios - Trustee

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 54 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Richard Buchakjian

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Richard Buchakjian

 

			
	Signature, if Joint account:	 	  

 

			
	 Name of Authorized Signatory:
	 	  

 

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 55 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Mark C. Ladendorf & Debra
Ladendorf

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Mark Ladendorf

 

			
	Signature, if Joint account:	 	 /s/ Debra Ladendorf

 

			
	 Name of Authorized Signatory:
	 	 Mark Ladendorf

 

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 56 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Wulf and Renate Paulick
JT/WROS

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Wulf Paulick

 

			
	Signature, if Joint account:	 	 /s/ Renate Paulick

 

			
	Name of Authorized Signatory:	 	 Wulf Paulick / Renate Paulick

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 57 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Robert H. Mapp

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Robert H. Mapp

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 58 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Paul Seid

			
		
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Paul Seid

			
	
	Signature, if Joint account:
                                         
                                         
                                         
                                         
                                        

	
	Name of Authorized
Signatory:                                       
                                         
                                         
                                         
                                   
	
	Title of Authorized Signatory:
                                         
                                         
                                         
                                         
                                  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 59 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Peter K. Nitz

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Peter K. Nitz

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 60 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	  

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ George Bonomo

 

			
	Signature, if Joint account: 	 	  

 

			
	Name of Authorized Signatory:	 	 George Bonomo

 

			
	Title of Authorized Signatory:	 	 Owner

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 61 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Peter C. Murphy

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Peter C. Murphy

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 62 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Starr F. Schlobohm Rev. Trust Dated
12/09/2004

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Starr F. Schlobohm

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Starr F. Scholobohm

 

			
	Title of Authorized Signatory:	 	 Trustee

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 63 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Samuel E. Leonard Trust

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Samuel E. Leonard TTEE

 

			
	Signature, if Joint account: 	 	  

 

			
	Name of Authorized Signatory:	 	 Samuel E. Leonard

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 64 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Merle F. Stockley Jr.

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Merle F. Stockley Jr.

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Merle F. Stockley Jr.

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 65 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Raymond M. Beebe & Joan P. Beebe
JTTEN

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Raymond M. Beebe

 

			
	Signature, if Joint account:	 	 /s/ Joan P. Beebe

 

			
	Name of Authorized Signatory:	 	 Raymond M. Beebe and Joan P.
Beebe

  

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 66 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 D & M Partners

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Dean Weinberg

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Dean Weinberg

 

			
	Title of Authorized Signatory:	 	 Director

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 67 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Robert P. Giesen

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Robert P. Giesen

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 68 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Robert G. Welty

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Robert G. Welty

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 69 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Carl A. Quimby Trust UAD 12/30/1994 Carl A. Quimby
TTEE

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Carl A. Quimby

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	 Carl A. Quimby TTEE

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 70 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Frank M. Elliott

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Frank M. Elliott

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 71 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Michael Foster & Kathryn L. Foster JTWROS TOD Dtd.
1/6/2004

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Michael Foster

 

			
	Signature, if Joint account:	 	 /s/ Kathryn Foster

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 72 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Edward H. Arnold

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ E. H. Arnold

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 73 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Robert F. Taglich

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Robert F. Taglich

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 74 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Michael Taglich

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Michael Taglich

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 75 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 W. Lewis Duvall

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ W. Lewis Duvall

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 76 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Norper Investments

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Norman Perry

 

			
	 Signature, if Joint account:
	 	  

 

			
	 Name of Authorized Signatory:
	 	 Norman Perry

 

			
	 Title of Authorized Signatory:
	 	 President

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 77 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Michael P. Hagerty

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Michael P. Hagerty

 

			
	 Signature, if Joint account:
	 	  

 

			
	 Name of Authorized Signatory:
	 	  

 

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 78 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Michael D. Stedem

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Michael D. Stedem

 

			
	 Signature, if Joint account:
	 	  

 

			
	 Name of Authorized Signatory:
	 	  

 

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 79 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Walter Parkes

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Walter Parkes

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 80 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Sandra P. Nitz

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Sandra P. Nitz

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 81 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Lawrence D. Feldhacker

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Lawrence D. Feldhacker

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 82 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Stephen Hughes

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Stephen Hughes

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 83 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Three Treasures LP

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ W K Neely

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 W K Neely

 

			
	Title of Authorized Signatory:	 	 President

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 84 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Dr. Modecai Bluth

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Dr. Modecai Bluth

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 85 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Roy Smith & Joyce L. Smith JTWROS

  

			
	 Signature of Authorized Signatory of Investing entity:
	 	 /s/ Roy Smith

  

			
	 Signature, if Joint account:
	 	 /s/ Joyce Smith

  

			
	 Name of Authorized Signatory:
	 	 Roy Smith

  

			
	 Title of Authorized Signatory:
	 	 Owner

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 86 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Robert C. Koski

  

			
	 Signature of Authorized Signatory of Investing entity:
	 	 /s/ Robert Koski

  

			
	 Signature, if Joint account:
	 	  

  

			
	 Name of Authorized Signatory:
	 	 Robert C. Koski

  

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 87 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Peter Fitzpatrick

  

			
	 Signature of Authorized Signatory of Investing entity:
	 	 /s/ Peter Fitzpatrick

  

			
	 Signature, if Joint account:
	 	  

  

			
	 Name of Authorized Signatory:
	 	  

  

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 88 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 C. Mark Casey

  

			
	 Signature of Authorized Signatory of Investing entity:
	 	 /s/ C. Mark Casey

  

			
	 Signature, if Joint account:
	 	  

  

			
	 Name of Authorized Signatory:
	 	  

  

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 89 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	 Name of Investing Entity:
	 	 Bennett Greenspon

  

			
	 Signature of Authorized Signatory of Investing entity:
	 	 /s/ Bennett Greenspon

  

			
	 Signature, if Joint account:
	 	  

  

			
	 Name of Authorized Signatory:
	 	  

  

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 90 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Gary L. Manka

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Gary L. Manka

 

			
	Signature, if Joint account:	 	  

 

			
	 Name of Authorized Signatory:
	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 91 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Larry V. Lowrance

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Larry V. Lowrance

 

			
	Signature, if Joint account:	 	  

 

			
	 Name of Authorized Signatory:
	 	  

 

			
	 Title of Authorized Signatory:
	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 92 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Tom Hirsch & Maureen
Hirsch

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Tom Hirsch

 

			
	Signature, if Joint account:	 	 /s/ Maureen Hirsch

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 93 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Scot Holding Inc.

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Patrick Gordon

 

			
	Signature, if Joint account:	  	  

 

			
	 Name of Authorized Signatory:
	 	 Patrick Gordon

 

			
	 Title of Authorized Signatory:
	 	 President

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 94 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Phillip Burnett & Allyson
Burnett

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Phillip L. Burnett

 

			
	Signature, if Joint account:	 	 /s/ Allyson Burnett

 

			
	Name of Authorized Signatory:	 	 Phillip L. Burnett

 

			
	Title of Authorized Signatory:	 	 Allyson Burnett

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 95 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Ronald A. Rayson

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Ronald A. Rayson

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 96 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Bruce Newell

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Bruce Newell

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 97 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Gary L. Gray

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Gary L. Gray

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 98 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Scott Isaak

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Scott J. Isaak

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	  

 

			
	Title of Authorized Signatory:	 	  

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 99 

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Zanett Opportunity Fund, Ltd.

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Zachary McAdoo

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Zachary McAdoo

 

			
	Title of Authorized Signatory:	 	 President, McAdoo Capital, Investment Manager

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 100

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 Big Red Investment

 

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ Thomas J. Bean

 

			
	Signature, if Joint account:	 	  

 

			
	Name of Authorized Signatory:	 	 Thomas J. Bean

 

			
	Title of Authorized Signatory:	 	 Manager of General Partner

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 101

 [SIGNATURE PAGE OF HOLDERS TO SCLR SA] 

 

			
	Name of Investing Entity:	 	 William M. Stokes or Rebecca A. Stokes
JTWROS

  

			
	Signature of Authorized Signatory of Investing entity:	 	 /s/ William M. Stokes

 

			
	Signature, if Joint account:	 	 /s/ Rebecca A. Stokes

 

			
	Name of Authorized Signatory:	 	 William M. Stokes

 

			
	Title of Authorized Signatory:	 	 N/A

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

  
 102

 IN WITNESS WHEREOF, the Collateral Agent named below has executed this Security Agreement
for the limited purposes specified herein and in Annex B hereof on the day and year first above written. 
 COLLATERAL AGENT: 

CSC TRUST COMPANY OF DELAWARE 
  

	
	By: /s/ Alan R.
Halpern                              
	
	Print Name: Alan R.
Halpern                      
	
	Title: Vice
President                                    

 Address and fax number of Collateral Agent: 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808;
(302) 636-8666. 

  
 103

 ANNEX A 
 to 
 SECURITY 

AGREEMENT 

FORM OF ADDITIONAL DEBTOR JOINDER 
 Security Agreement dated as of June 16, 2011 made by SCOLR Pharma, 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 Debtor 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. 

  
 104

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

By: 
 Name: 
 Title: 

Address: 

Dated: 

  
 105

 ANNEX B 
 to 
 SECURITY 

AGREEMENT 

THE AGENT 

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 CSC Trust Company of Delaware (“CSC” 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. 

Section 1. Appointment of Agent; Financing Statements. 

(a) Upon the terms and subject to the conditions set forth herein, the Secured Parties hereby appoint Agent, and Agent, by its signature
below, hereby accepts such appointment, to (i) serve as the Secured Parties’ representative and agent for purposes of filing financing statements against Debtor and with respect to the Collateral, including by listing Agent as secured
party of record thereon (as such term is used in the Uniform Commercial Code (the “UCC”)), and Agent agrees that, in such capacity, Agent shall be the representative of the Secured Parties for purposes of satisfying the requirements
of Section 9-502(a)(2) of the UCC, whether or not Agent is indicated in any such financing statement as acting in its capacity as a representative and agent of Secured Parties (as contemplated under Section 9-503(d) of the UCC), and
(ii) take such other action or actions as Agent may be directed in writing from time to time by a Majority in Interest to create, perfect, preserve or maintain the Secured Parties security interest in the Collateral or enforce any and all
rights and remedies, in whole or in part, available to the Secured Parties under the Transaction Documents with respect to the Collateral. In furtherance of the foregoing, Agent hereby agrees to promptly take any other action (x) required or
directed by a Majority in Interest from time to time in order to maintain the perfection of, and preserve or protect, the Secured Parties’ security interests in the Collateral, (y) necessary in any bankruptcy or insolvency proceeding with
respect to evidence the Secured Parties’ appointment of Agent hereunder and the perfection, preservation and maintenance of the Collateral in favor of Secured Parties or (z) permitted or required to be taken by a secured party of record
under the UCC and directed by Debtor from time to time in order to carry out more effectively the purposes of this Agreement. Agent undertakes to perform only such duties as are expressly set forth herein, and no duties shall be implied. Agent
agrees that it shall not take any action other than those actions expressly directed by a Majority in Interest. Except as expressly set forth in the Agreement (including this Annex B), a Majority in Interest shall have and retain the sole power and
authority to exercise any and all powers and rights with respect to the Collateral. 
 (b) Agent further agrees that (i) it
will file all initial financing statements against Debtor and with respect to the Collateral, as provided to Agent by Debtor which financing statements shall list Agent as secured party of record thereon, (ii) it will not amend, nor will it
consent to the amendment of, any financing statements filed against Debtor with respect to the Collateral without the prior written consent of a Majority in Interest; and (iii) it shall immediately notify the Secured Parties in writing of any
change to its information listed on any financing statement filed against Debtor with respect to the Collateral including, without limitation, the name or address of Agent, and shall take any action directed by a Majority in Interest to make any
necessary amendments to any such financing statement. 

  
 106

 (c) Agent shall have no liability under, and no duty to inquire as to the provisions of, any
agreement other than this Agreement. Agent may rely upon, and shall not be liable for acting or refraining from acting upon, any written notice, instruction or request furnished to it hereunder and reasonably believed by it to be genuine and to have
been signed or presented by the proper party or parties except to the extent directly or indirectly caused by the gross negligence or willful misconduct of Agent, or Agent’s taking of any action in violation of this Agreement. Agent shall be
under no duty to inquire into or investigate the validity, accuracy or content of any such document. Agent shall not be liable for any action taken or omitted by it in good faith except to the extent directly or indirectly caused by the gross
negligence or willful misconduct of Agent or Agent’s taking of any action in violation of this Agreement, provided that Agent shall be fully protected in relying upon further written instructions from Debtor when uncertain if an action is
authorized under this Agreement. Agent shall have no liability for assets lost or damaged while being delivered to Agent except to the extent directly or indirectly caused by the gross negligence or willful misconduct of Agent or Agent’s taking
of any action in violation of this Agreement. Agent may execute any of its powers and perform any of its duties hereunder directly or through agents or attorneys and may consult with counsel, accountants and other skilled persons to be selected and
retained by it. Anything in this Agreement to the contrary notwithstanding, in no event shall Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if Agent has
been advised of the likelihood of such loss or damage and regardless of the form of action. 
 Section 2. Notice by Agent of Certain
Events; Continuation Statements. Agent shall promptly notify the Secured Parties in writing whenever Agent receives notice, including any notices received under or in connection with the UCC, that (a) any security interest (other than the
security interests of Debtor in favor of the Secured Parties under the Transaction Documents) has been placed, or attempted to be placed, on any Collateral, including any inquiries in respect of any financing statements listing Agent as secured
party of record thereunder, or (b) the attachment or perfection of the security interest in the Collateral shall have been challenged. Agent shall also promptly notify the Secured Parties and the Debtor in writing that any financing
statement filed against Debtor or any Additional Debtor with respect to the Collateral which lists Agent as secured party of record thereon (each, an “Expiring Financing Statement”) shall be expiring, and such notice shall be
provided by Agent no earlier than six months and no later than three months prior to each such expiration (each, an “Expiration Notice”). If Agent shall not have received further instruction from a Majority in Interest or the Debtor
within 10 business days following the date on which Agent sent an Expiration Notice with respect to an Expiring Financing Statement, Agent shall promptly file, in the appropriate filing office, a continuation statement with respect to such Expiring
Financing Statement and shall provide evidence of the same to Debtor. All notices required to be sent to Debtor hereunder shall be sent to Debtors address at: 19204 North Creek Parkway, Suite 100, Bothell, Washington 98011. All notices required to
be sent to the Secured Parties hereunder shall be sent c/o Taglich Brothers, Inc., 275 Madison Avenue, Suite 1618, New York, NY 10016; provided, however, that the Agent shall mail a copy to any Secured Party who requests to receive copies of notices
hereunder. 
 Section 3. Representations and Warranties. Each of the Secured Parties and Agent hereby represents and
warrants as of the date hereof that: 
 (a) If a corporation, limited liability company or other entity (an “Entity”),
it is duly formed, validly existing and in good standing under the laws of its jurisdiction of incorporation; 

  
 107

 (b) He, she or it has the full power and authority to execute, deliver and perform this
Agreement and has taken all necessary action to authorize the execution, delivery and performance of this Agreement; 
 (c) If
an Entity, the execution, delivery and performance by it of this Agreement does not violate any provision of its corporate governance documents; and 
 (d) This Agreement has been duly authorized, executed and delivered and constitutes its legal, valid and binding agreement, enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
 Section 4. Term; Termination. This Agreement shall remain in full force and effect until its termination in accordance with this Section 4. A Majority in Interest may, in their
discretion, terminate this Agreement at any time it deems appropriate. Agent may terminate this Agreement, and resign from its appointment hereunder, by giving the Secured Parties at least sixty (60) days advance written notice of such
resignation. Upon the termination of this Agreement, Agent shall (a) take any and all actions directed by a Majority in Interest to amend all financing statements filed against Debtor with respect to the Collateral which list Agent as secured
party of record thereon, and (b) take any other action permitted or required to be taken by a secured party of record (as such term is used in the UCC) as directed by a Majority in Interest from time to time in connection with the termination
of this Agreement. 
 Section 5. Fees. The Debtor agrees to pay to Agent, upon execution of this Agreement and from
time to time thereafter, reasonable compensation for the services to be rendered hereunder, which, unless otherwise agreed in writing, shall be (i) a $500.00 initial set up fee and (ii) $2,000.00 annually. All out of pocket expenses
including UCC filing fees shall be billed at cost to the Debtor. 
 Section 6. Indemnity. To the extent that the
Agent is not reimbursed and indemnified by the Debtor, the Secured Parties shall jointly and severally indemnity, defend and hold harmless Agent and its directors, officers, agents and employees (collectively, the “Indemnified
Parties”) from all loss, liability or expense arising out of or in connection with Agent’s execution and performance of this Agreement, or any Indemnified Party’s following of any instructions or other directions from a Majority
in Interest with respect to the appointment of Agent under this Agreement, except, in each case, to the extent that such loss, liability or expense is due to the gross negligence or willful misconduct of any Indemnified Party or any Indemnified
Party’s taking of any action in violation of this Agreement. The parties hereto acknowledge that the foregoing indemnities shall survive the termination of this Agreement. 

Section 7. 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. 

  
 108FORM OF DEBENTURE

 EXHIBIT 10.3 
 NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 Original Issue Date:
                     

Original Conversion Price (subject to adjustment herein): $0.05 
 $         
 8% SENIOR SECURED
CONVERTIBLE DEBENTURE 
 DUE
            1 
 THIS 8% SENIOR SECURED CONVERTIBLE DEBENTURE is one of a series of duly authorized and validly issued 8% Senior Secured Convertible Debentures of SCOLR Pharma, Inc., a Delaware corporation, (the
“Company”), having its principal place of business at 19204 North Creek Parkway, Suite 100, Bothell, Washington 98011, designated as its 8% Senior Secured Convertible Debenture due
                    2 (this debenture, the “Debenture” and, collectively with the other debentures of such series, the
“Debentures”). 
 FOR VALUE RECEIVED, the Company promises to pay to
                     or its registered assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the
principal sum of $         on                     3 (the “Maturity Date”) or such earlier date as this
Debenture is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Debenture in accordance with the provisions hereof. This Debenture is
subject to the following additional provisions: 
  
  

	1 	 Two years from the Issue Date. 

	2 	 Two years from the Issue Date. 

	3 	 Two years from the Issue Date. 

 Section 1. Definitions. For the purposes hereof, in addition to the terms
defined elsewhere in this Debenture, (a) capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following meanings: 

“Alternate Consideration” shall have the meaning set forth in Section 5(d). 

“Bankruptcy Event” means any of the following events: (a) the Company or any Significant Subsidiary
(as such term is defined in Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law
of any jurisdiction relating to the Company or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after
commencement, (c) the Company or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the Company or any Significant Subsidiary
thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant Subsidiary thereof
makes a general assignment for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts or (g) the
Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the
foregoing. 
 “Beneficial Ownership Limitation” shall have the meaning set forth in
Section 4(d). 
 “Business Day” means any day except any Saturday, any Sunday, any day
which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

“Buy-In” shall have the meaning set forth in Section 4(c)(v). 

“Change of Control Transaction” means the occurrence after the date hereof of any of (a) an
acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the
Company, by contract or otherwise) of in excess of 33% of the voting securities of the Company (other than by means of conversion or exercise of the Debentures and the Securities issued together with the Debentures), (b) the Company merges into
or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after 

  
 2 

 
giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the Company or the successor entity of
such transaction, (c) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the
acquiring entity immediately after the transaction, (d) a replacement at one time or within a three year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are
members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board
of Directors who are members on the date hereof), or (e) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 “Conversion” shall have the meaning ascribed to such term in Section 4. 

“Conversion Date” shall have the meaning set forth in Section 4(a). 

“Conversion Price” shall have the meaning set forth in Section 4(b). 

“Conversion Schedule” means the Conversion Schedule in the form of Schedule 1 attached hereto.

 “Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion
of this Debenture in accordance with the terms hereof. 
 “Debenture Register” shall have the
meaning set forth in Section 2(a). 
 “Equity Conditions” means, during the period in
question, (a) the Company shall have duly honored all conversions and redemptions required to have been effected by virtue of one or more valid Notices of Conversion of the Holder, if any, (b)(i) there is an effective registration statement
pursuant to which the Holder is permitted to utilize the prospectus thereunder to resell all of the shares of Common Stock issuable pursuant to the Debentures (and the Company believes, in good faith, that such effectiveness will continue
uninterrupted for the foreseeable future) or (ii) all of the Conversion Shares issuable pursuant to the Debentures may be resold pursuant to Rule 144 without volume or manner-of-sale restrictions and the Company is in compliance with any
applicable current public information requirements as determined by the counsel to the Company as set forth in a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the Holder (and the Company believes, in good
faith, that such compliance will continue uninterrupted for the foreseeable future), (c) the Common Stock is trading on a Trading Market and all of the shares issuable pursuant to the Transaction Documents are listed or quoted for trading on
such Trading Market (and the Company 

  
 3 

 
believes, in good faith, that trading of the Common Stock on a Trading Market will continue uninterrupted for the foreseeable future), (d) there is a sufficient number of authorized but
unissued and otherwise unreserved shares of Common Stock for the issuance of all of the shares then issuable upon conversion of the Debentures contemplated to be converted, (e) there is no existing Event of Default and no existing event which,
with the passage of time or the giving of notice, would constitute an Event of Default, (f) the issuance of the shares in question to the Holder would not violate the limitations set forth in Section 4(d) herein, (g) there
has been no public announcement of a pending or proposed Fundamental Transaction or Change of Control Transaction that has not been consummated, (h) the applicable Holder is not in possession of any information provided by the Company that
constitutes, or may constitute, material non-public information and (i) for each Trading Day in a period of 20 consecutive Trading Days prior to the applicable date in question, the daily trading volume for the Common Stock on the principal
Trading Market exceeds 350,000 shares (subject to adjustment for forward and reverse stock splits and the like) per Trading Day. 
 “Event of Default” shall have the meaning set forth in Section 8(a). 
 “Forced Conversion” shall have the meaning set forth in Section 6. 
 “Forced Conversion Date” shall have the meaning set forth in Section 6. 
 “Forced Conversion Notice” shall have the meaning set forth in Section 6. 
 “Forced Conversion Notice Date” shall have the meaning set forth in Section 6. 
 “Fundamental Transaction” shall have the meaning set forth in Section 5(d). 
 “Interest Notice Period” shall have the meaning set forth in Section 2(b). 
 “Interest Payment Date” shall have the meaning set forth in Section 2(b). 
 “Mandatory Default Amount” means the sum of (a) 100% of the outstanding principal amount of this Debenture, plus 100% of accrued and unpaid interest hereon, and (b) all other
amounts, costs, expenses and liquidated damages due in respect of this Debenture. 
 “New York
Courts” shall have the meaning set forth in Section 9(d). 
 “Notice of
Conversion” shall have the meaning set forth in Section 4(a). 
 “Original Issue
Date” means the date of the first issuance of the Debentures, regardless of any transfers of any Debenture and regardless of the number of instruments which may be issued to evidence such Debentures. 

  
 4 

 “Permitted Indebtedness” means (a) the indebtedness
evidenced by the Debentures, (b) the Indebtedness existing on the Original Issue Date and set forth on Schedule 3.1(z) attached to the Purchase Agreement, (c) lease obligations and purchase money indebtedness of up to $100,000, in
the aggregate, incurred in connection with the acquisition of capital assets and lease obligations with respect to newly acquired or leased assets and (d) indebtedness incurred in connection with an issuance or issuances contemplated by clause
(d) under the definition of Exempt Issuance (as defined in the Purchase Agreement). 
 “Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being
contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company) have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the
ordinary course of the Company’s business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other similar Liens arising in the ordinary course of the Company’s business, and which
(x) do not individually or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business of the Company and its consolidated Subsidiaries or (y) are
being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien, (c) Liens incurred in connection with
Permitted Indebtedness under clauses (a), (b) and (d) thereunder, and (d) Liens incurred in connection with Permitted Indebtedness under clause (c) thereunder, provided that such Liens are not secured by assets of the Company or
its Subsidiaries other than the assets so acquired or leased, or cash collateral existing in a collateral account on the date hereof and identified as restricted cash on the Company’s balance sheet. 

“Purchase Agreement” means the Securities Purchase Agreement, dated as of June 16, 2011 among the
Company and the original Holders, as amended, modified or supplemented from time to time in accordance with its terms. 
 “Required Holders” means Holders of at least 67% in principal amount of the then outstanding Debentures. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
 “Share Delivery Date” shall have the meaning set forth in Section 4(c)(ii).

 “Successor Entity” shall have the meaning set forth in Section 5(d). 

  
 5 

 “Threshold Period” shall have the meaning set forth in
Section 6. 
 “Trading Day” means a day on which the principal Trading Market is open for
trading. 
 “Trading Market” means any of the following markets or exchanges on which the Common
Stock is listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors to any of
the foregoing). 
 “VWAP” means, for any date, the price determined by the first of the
following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the
Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC Bulletin Board is not a Trading Market, the volume weighted
average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then
reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in
all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Debentures then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company. 
 Section 2. Interest. 

a) Accrual of Interest; Quarterly Compounding. Interest shall accrue on the aggregate unconverted and then
outstanding principal amount of this Debenture at the rate of 8% per annum, subject to adjustment as set forth herein, and shall compound quarterly on January 1, April 1, July 1 and October 1, beginning on
July 1, 2011. Interest on the outstanding principal amount shall be in cash calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and accrue daily commencing on the Original Issue Date until payment or
conversion in full of the outstanding principal, together with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Interest hereunder will be paid to the Person in whose name this
Debenture is registered on the records of the Company regarding registration and transfers of this Debenture (the “Debenture Register”). 
 b) Company’s Election to Pay Interest in Cash. The Company may, at its option, pay in cash all or a portion of the accrued and unpaid interest on the Debentures at

  
 6 

 
any time and from time to time. Any such payment shall be made pari passu among the Holders of the then outstanding debentures. At least ten (10) days prior to the date proposed for
the cash payment of interest (an “Interest Payment Date”), the Company shall deliver to the Holder a written notice of its election to pay interest hereunder in cash on the applicable Interest Payment Date. During such ten
(10) day period (the “Interest Notice Period”), the Company’s election shall be irrevocable as to such Interest Payment Date. 
 c) Prepayment. Except as otherwise set forth in this Debenture, the Company may not prepay any portion of the principal amount of this Debenture without the prior written consent of the Holder.

 Section 3. Registration of Transfers and Exchanges. 

a) Different Denominations. This Debenture is exchangeable for an equal aggregate principal amount of Debentures of
different authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange. 

b) Investment Representations. This Debenture has been issued subject to certain investment representations of the
original Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal and state securities laws and regulations. 

c) Reliance on Debenture Register. Prior to due presentment for transfer to the Company of this Debenture, the
Company and any agent of the Company may treat the Person in whose name this Debenture is duly registered on the Debenture Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or
not this Debenture is overdue, and neither the Company nor any such agent shall be affected by notice to the contrary. 

Section 4. Conversion. 
 a) Voluntary Conversion. At any time after the Original Issue Date until this Debenture is no longer outstanding, this Debenture and all accrued but unpaid interest thereon shall be convertible, in
whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time (subject to the conversion limitations set forth in Section 4(d)). The Holder shall effect conversions by delivering to the Company a
Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying therein the principal amount of this Debenture to be converted, whether accrued and unpaid interest on such
principal is also to be converted, and the date on which such conversion shall be effected (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that
such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder, the Holder shall not be required to 

  
 7 

 
physically surrender this Debenture to the Company unless the entire principal amount of this Debenture, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder
shall have the effect of lowering the outstanding principal and accrued interest on of this Debenture in an amount equal to the applicable conversion. The Holder and the Company shall maintain records showing the principal amount(s) converted and
the date of such conversion(s) and the accrual of interest on this Debenture. The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion. In the event of any dispute or
discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder, and any assignee by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of a portion of this Debenture, the unpaid and unconverted principal amount of this Debenture may be less than the amount stated on the face hereof. 

b) Conversion Price. The conversion price in effect on any Conversion Date shall be equal to $0.05, subject
to adjustment herein (the “Conversion Price”). 
 c) Mechanics of Conversion.

 i. Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares
issuable upon a conversion hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount and accrued interest of this Debenture to be converted by (y) the Conversion Price. 

ii. Delivery of Certificate Upon Conversion. Not later than three (3) Trading Days after each Conversion Date
(the “Share Delivery Date”), the Company shall deliver, or cause to be delivered, to the Holder (A) a certificate or certificates representing the Conversion Shares which, on or after the earlier of (i) the six month
anniversary of the Original Issue Date (if the Company is then current in its reporting under the Exchange Act, and the Holder is not an Affiliate of the Company, otherwise then the one year anniversary of the Original Issue Date) or (ii) the
Effective Date, shall be free of restrictive legends and trading restrictions (other than those which may then be required by the Purchase Agreement) representing the number of Conversion Shares being acquired upon the conversion of this Debenture
and (B) a bank check in the amount of accrued and unpaid interest (if the Company has elected or is required to pay accrued interest in cash). On or after the earlier of (i) the six month anniversary of the Original Issue Date or
(ii) the Effective Date, the Company shall to the extent requested by the converting Holder use its best efforts to deliver any certificate or certificates required to be delivered by the Company under this Section 4(c) electronically
through the Depository Trust Company or another established clearing corporation performing similar functions. 

  
 8 

 iii. Failure to Deliver Certificates. If, in the case of any Notice
of Conversion, such certificate or certificates are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company at any time on or before its receipt of
such certificate or certificates, to rescind such Conversion, in which event the Company shall promptly return to the Holder any original Debenture delivered to the Company and the Holder shall promptly return to the Company the Common Stock
certificates issued to such Holder pursuant to the rescinded Conversion Notice. 
 iv. Obligation
Absolute. The Company’s obligations to issue and deliver the Conversion Shares upon conversion of this Debenture in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to
enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation
of the Company to the Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a waiver by the Company of any such action the Company may have against the Holder. In
the event the Holder of this Debenture shall elect to convert any or all of the outstanding principal amount hereof, the Company may not refuse conversion based on any claim that the Holder or anyone associated or affiliated with the Holder has been
engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion of all or part of this Debenture shall have been sought and obtained, and the Company
posts a surety bond for the benefit of the Holder in the amount of 150% of the outstanding principal amount of this Debenture, which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of
the underlying dispute and the proceeds of which shall be payable to the Holder to the extent it obtains judgment. In the absence of such injunction, the Company shall issue Conversion Shares or, if applicable, cash, upon a properly noticed
conversion. The Holder shall have the right to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for the Company’s failure to deliver Conversion Shares within the period specified herein and the Holder shall
have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking
to enforce damages pursuant to any other Section hereof or under applicable law. 
 v. Compensation for Buy-In
on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to the Holder, if the 

  
 9 

 
Company fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery Date pursuant to Section 4(c)(ii), and if after such Share Delivery Date the
Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Conversion
Shares which the Holder was entitled to receive upon the conversion relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in addition to any other remedies available to or
elected by the Holder) the amount, if any, by which (x) the Holder’s total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of
Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and
(B) at the option of the Holder, either reissue (if surrendered) this Debenture in a principal amount equal to the principal amount of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder
the number of shares of Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 4(c)(ii). For example, if the Holder purchases Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted conversion of this Debenture with respect to which the actual sale price of the Conversion Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of
$10,000 under clause (A) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In
and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon conversion of this Debenture as required pursuant to the terms hereof. 

vi. Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and
keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Debenture, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder
(and the other holders of the Debentures), not less than such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the adjustments and
restrictions of Section 5) upon the conversion of the then outstanding principal amount of this Debenture. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued,
fully paid and nonassessable. 

  
 10 

 vii. Fractional Shares. No fractional shares or scrip representing
fractional shares shall be issued upon the conversion of this Debenture. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its election, either pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share. 
 viii. Transfer Taxes. The issuance of certificates for shares of the Common Stock on conversion of this Debenture shall be made without charge to the Holder hereof for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that, the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any
such certificate upon conversion in a name other than that of the Holder of this Debenture so converted and the Company shall not be required to issue or deliver such certificates unless or until the Person or Persons requesting the issuance thereof
shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
 d) Holder’s Conversion Limitations. The Company shall not effect any conversion of this Debenture, and a Holder shall not have the right to convert any portion of this Debenture, to the extent
that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder or any of the Holder’s or such
Persons’ Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Debenture with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon
(i) conversion of the remaining, unconverted principal amount of this Debenture beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of
the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Debentures) beneficially owned by the Holder or any of its Affiliates. Except as set forth in
the preceding sentence, for purposes of this Section 4(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the
limitation contained in this Section 4(d) applies, the determination of whether this Debenture is convertible (in relation to other securities owned by the Holder together with any Affiliates and any Persons deemed to act as a group together
with the Holder and any of the Holder’s or such Person’s Affiliates) and of which principal amount of this Debenture is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed
to be the Holder’s determination of whether this Debenture may be converted (in relation to other securities owned by the Holder together with any 

  
 11 

 
Affiliates) and which principal amount of this Debenture is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will
be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For
purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s
most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company’s transfer agent setting
forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two (2) Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Debenture, by the Holder or its Affiliates since the
date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock issuable upon conversion of this Debenture held by the Holder. The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of
this Section 4(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of
this Debenture held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(d) shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The Beneficial
Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(d) to correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Debenture. 
 Section 5. Certain Adjustments. 

a) Stock Dividends and Stock Splits. If the Company, at any time while this Debenture is outstanding: (i) pays
a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by
the Company upon conversion of, or payment of interest on, the Debentures), (ii) subdivides outstanding shares of Common Stock into a larger 

  
 12 

 
number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a
reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury
shares of the Company) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification. 
 b) Subsequent Rights Offerings. In addition to any adjustments pursuant to
Section 5(a) above, if at any time while this Debenture is outstanding the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any
class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the
Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Debenture (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). 
 c)
Pro Rata Distributions. If the Company, at any time while this Debenture is outstanding, distributes to all holders of Common Stock (and not to the Holders) evidences of its indebtedness or assets (including cash and cash dividends) or rights
or warrants to subscribe for or purchase any security, then in each such case the Conversion Price shall be adjusted by multiplying such Conversion Price in effect immediately prior to the record date fixed for determination of stockholders entitled
to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then fair market value at such record
date of the portion of such assets or evidence of indebtedness or rights or warrants so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors of the Company in good faith. In either case the
adjustments shall be described in a statement delivered to the Holder describing the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made
whenever any such distribution is made and shall become effective immediately after the record date mentioned above. 

  
 13 

 d) Fundamental Transaction. If, at any time while this Debenture is
outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease,
license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions (excluding specifically the license or other disposition of the Company’s intellectual property
in the ordinary course of business), (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender
or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any
reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company,
directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with
another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the
other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Debenture, the Holder shall have the right to
receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion of this Debenture),
the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such
Fundamental Transaction by a holder of the number of shares of Common Stock for which this Debenture is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion of this
Debenture). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one
(1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any
conversion of this Debenture following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor

  
 14 

 
Entity”) to assume in writing all of the obligations of the Company under this Debenture and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with
the provisions of this Section 5(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the
option of the holder of this Debenture, deliver to the Holder in exchange for this Debenture a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Debenture which is convertible for
a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Debenture (without regard to any limitations on the
conversion of this Debenture) prior to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Debenture immediately prior to
the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so
that from and after the date of such Fundamental Transaction, the provisions of this Debenture and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Debenture and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. 

e) Calculations. All calculations under this Section 5 shall be made to the nearest cent or the nearest
1/100th of a share, as the case may be. For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury
shares of the Company) issued and outstanding. 
 f) Notice to the Holder. 

i. Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this
Section 5, the Company shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 

ii. Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock
of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval 

  
 15 

 
of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of this Debenture, and shall cause to be delivered to the
Holder at its last address as it shall appear upon the Debenture Register, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of
the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the
failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains,
material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to convert this
Debenture during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein. 

Section 6. Forced Conversion. Notwithstanding anything herein to the contrary, if after the Effective Date, the VWAP
for each of any 30 consecutive Trading Days, which period shall have commenced only after the Effective Date (such period the “Threshold Period”), exceeds $0.25 (subject to adjustment for reverse and forward stock splits, stock
dividends, stock combinations and other similar transactions of the Common Stock that occur after the Original Issue Date), the Company may, within two (2) Trading Days after the end of any such Threshold Period, deliver a written notice to the
Holder (a “Forced Conversion Notice” and the date such notice is delivered to the Holder, the “Forced Conversion Notice Date”) to cause the Holder to convert all or part of the then outstanding principal amount of
this Debenture plus, if so specified in the Forced Conversion Notice, accrued but unpaid interest, liquidated damages and other amounts owing to the Holder under this Debenture (“Forced Conversion”), it being agreed that the
“Conversion Date” for purposes of Section 4 shall be deemed to occur on the third Trading Day following the Forced Conversion Notice Date (such third Trading Day, the “Forced Conversion Date”). The Company may not
deliver a Forced Conversion Notice, and any Forced Conversion Notice delivered by the Company shall not be effective, unless all of the Equity 

  
 16 

 
Conditions are met (unless waived in writing by the Holder) on each Trading Day occurring during the applicable Threshold Period through and including the later of the Forced Conversion Date and
the Trading Day after the date such Conversion Shares pursuant to such conversion are delivered to the Holder. Any Forced Conversion shall be applied ratably to all Holders based on their initial purchases of Debentures pursuant to the Purchase
Agreement, provided that any voluntary conversions by a Holder shall be applied against the Holder’s pro rata allocation, thereby decreasing the aggregate amount forcibly converted hereunder if only a portion of this Debenture is forcibly
converted. For purposes of clarification, a Forced Conversion shall be subject to all of the provisions of Section 4, including, without limitation, the limitations on conversions; provided, however, that to the extent the Forced Conversion of
this Debenture is limited by such limitations on conversions, then the rate of interest on this Debenture shall reduced to zero (0%). 
 Section 7. Negative Covenants. As long as at least 25% of the original aggregate principal amount of all Debentures remains outstanding, unless the holders of at least 67% in principal
amount of the then outstanding Debentures (and treating any Debentures owned by the Company or any Affiliate of the Company as not outstanding for such purpose) shall have otherwise given prior written consent, the Company shall not, and shall not
permit any of the Subsidiaries to, directly or indirectly: 
 a) other than Permitted Indebtedness, enter into,
create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom; 
 b) other than Permitted Liens, enter into, create, incur, assume
or suffer to exist any Liens of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom; 

c) amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner
that materially and adversely affects any rights of the Holder (which limitation shall expressly not apply to any proposal to increase the number of authorized shares of the Company’s Common Stock); 

d) repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of
shares of its Common Stock or Common Stock Equivalents other than as to (i) the Conversion Shares as permitted or required under the Transaction Documents and (ii) repurchases of Common Stock or Common Stock Equivalents of departing
officers or directors of the Company, provided that such repurchases shall not exceed an aggregate of $100,000 for all officers and directors during the term of this Debenture; 

e) repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Debentures if on
a pro-rata basis, other than regularly scheduled principal and interest payments as such terms are in effect as of the Original Issue Date, provided that such payments shall not be permitted if, at such time, or immediately after giving effect to
such payment, any Event of Default exists or would occur; 

  
 17 

 f) pay cash dividends or distributions on any equity securities of the
Company; 
 g) enter into any transaction with any Affiliate of the Company which would be required to be
disclosed in any public filing with the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise required for
board approval); or 
 h) enter into any agreement with respect to any of the foregoing. 

Section 8. Events of Default. 
 a) “Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by
operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body) and except as shall have been effected with the consent of the Holders in accordance with
Section 7: 
 i. any default in the payment of (A) the principal amount of any Debenture or
(B) interest and other amounts owing to a Holder on any Debenture, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration or otherwise) which default is not cured within 10
calendar days; 
 ii. the Company shall fail to observe or perform any other covenant or agreement contained in
the Debentures (other than a breach by the Company of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (ix) below) which failure is not cured, if possible to cure, within the
earlier to occur of (A) five (5) Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 10 Trading Days after the Company has become or should have become aware of such failure;

 iii. a default or event of default (subject to any grace or cure period provided in the applicable agreement,
document or instrument) shall occur under (A) any of the Transaction Documents or (B) any other material agreement, lease, document or instrument to which the Company or any Subsidiary is obligated (and not covered by clause
(vi) below); 

  
 18 

 iv. any representation or warranty made in this Debenture, any other
Transaction Documents, any written statement pursuant hereto or thereto or any other report, financial statement or certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect in any material respect as of the date
when made or deemed made; 
 v. the Company or any Significant Subsidiary (as such term is defined in Rule
1-02(w) of Regulation S-X) shall be subject to a Bankruptcy Event; 
 vi. the Company or any Subsidiary shall
default on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness
for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater than $150,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such
indebtedness becoming (subject to any applicable cure period) or being declared due and payable prior to the date on which it would otherwise become due and payable; 

vii. the Common Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be
eligible to resume listing or quotation for trading thereon within five Trading Days; 
 viii. the Company shall
be a party to any Change of Control Transaction or Fundamental Transaction or shall agree to sell or dispose of all or in excess of 33% of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a
Change of Control Transaction) and excluding specifically any license or other disposition involving continued royalty or similar payments of the Company’s intellectual property assets in the ordinary course of business); 

ix. the Company shall fail for any reason to deliver certificates to a Holder prior to the fifth Trading Day after a
Conversion Date pursuant to Section 4(c) or any Forced Conversion Date pursuant to Section 6(d) or the Company shall provide at any time notice to the Holder, including by way of public announcement, of the Company’s intention to not
honor requests for conversions of any Debentures in accordance with the terms hereof; 
 x. the Company shall
materially breach any agreement delivered to the initial Holders pursuant to Section 2.2 of the Purchase Agreement; or 
 xi. any monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary or any of their respective property or other assets for more than $100,000, and such
judgment, writ or similar final process shall remain unvacated, unbonded or unstayed for a period of 45 calendar days. 

  
 19 

 b) Remedies Upon Event of Default. If any Event of Default occurs,
the outstanding principal amount of this Debenture, plus accrued but unpaid interest, and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder’s election and upon notice thereof to the Company,
immediately due and payable in cash at the Mandatory Default Amount. Commencing five (5) days after the occurrence of any Event of Default that results in the eventual acceleration of this Debenture, the interest rate on this Debenture shall
accrue at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Debenture to or as directed
by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately enforce any and all of
its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the
Debenture until such time, if any, as the Holder receives full payment pursuant to this Section 8(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon. 

Section 9. Miscellaneous. 
 a) Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any Notice of Conversion, shall be in writing and
delivered personally, by facsimile, or sent by a nationally recognized overnight courier service, addressed to the Company, at the address set forth above, or such other facsimile number or address as the Company may specify for such purposes by
notice to the Holder delivered in accordance with this Section 9(a). Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile or e-mail to the
facsimile number or e-mail address set forth on the signature page hereto (or subsequently delivered to the Company), or sent by a nationally recognized overnight courier service addressed to each Holder at the address of the Holder appearing on the
books of the Company, or if no such address appears on the books of the Company, at the principal place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed
given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile or e-mail prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile or e-mail on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given. 
 b) Absolute Obligation. Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligation of the Company, which is absolute and

  
 20 

 
unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Debenture at the time, place, and rate, and in the coin or currency, herein prescribed.
This Debenture is a direct debt obligation of the Company. This Debenture ranks pari passu with all other Debentures now or hereafter issued under the terms set forth herein. 

c) Lost or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed, the Company shall
execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture so
mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof, reasonably satisfactory to the Company. 

d) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this
Debenture 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 conflict of laws thereof. Each party agrees that all legal proceedings concerning the
interpretation, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be
commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or 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 Debenture 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 other manner permitted by applicable 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
Debenture or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Debenture, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its
attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding. 
 e) Amendments, Waivers. No provision of the Debentures may be waived, modified, supplemented or amended except in a written instrument signed by the Company and Required Holders, which upon
execution of such written instrument shall 

  
 21 

 
be effective as to all Debentures then outstanding. Any waiver by the Company or the Required Holders of a breach of any provision of the Debentures shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other provision of the Debentures. The failure of the Company or the Required Holders to insist upon strict adherence to any term of the Debenture on one or more occasions shall
not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of the Debentures on any other occasion. Any waiver by the Company or the Required Holders must be in writing.

 f) Severability. If any provision of this Debenture is invalid, illegal or unenforceable, the balance
of this Debenture shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount
deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The Company covenants (to
the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company
from paying all or any portion of the principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Debenture, and the Company
(to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law has been enacted. 
 g) Next Business
Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day. 

h) Headings. The headings contained herein are for convenience only, do not constitute a part of this Debenture and
shall not be deemed to limit or affect any of the provisions hereof. 
 i) Secured Obligation. The
obligations of the Company under this Debenture are secured by all assets of the Company pursuant to the Security Agreement, dated as of June 16, 2011 between the Company and the Secured Parties (as defined therein). 

********************* 
 (Signature Pages Follow) 

  
 22 

 IN WITNESS WHEREOF, the Company has caused this Debenture to be duly executed by a duly
authorized officer as of the date first above indicated. 
  

					
	SCOLR PHARMA, INC.
		
	By:	 	 /s/ Richard M. Levy

		 	 Name:
	 	Richard M. Levy
		 	 Title:
	 	Executive Vice President and Chief Financial Officer
	Facsimile No. for delivery of Notices: (425) 368-1051

  
 23 

 ANNEX A 
 NOTICE OF CONVERSION 
 The undersigned hereby elects to convert principal
under the 8% Senior Secured Convertible Debenture due             , 2013 of SCOLR Pharma, Inc., a Delaware corporation (the “Company”), into shares of common stock
(the “Common Stock”), of the Company according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer
taxes, if any. 
 By the delivery of this Notice of Conversion the undersigned represents and warrants to the Company that its
ownership of the Common Stock does not exceed the amounts specified under Section 4 of this Debenture, as determined in accordance with Section 13(d) of the Exchange Act and that the Holder is not otherwise an Affiliate of the Company.

 The undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection
with any transfer of the aforesaid shares of Common Stock. 
  

					
	Conversion calculations:	 		 	
			
		 		 	Date to Effect Conversion:
			
		 		 	Principal Amount of Debenture to be Converted: $        
			
		 		 	 Accrued and Unpaid Interest on such Principal to be
 Converted:                 yes            
             no

			
		 		 	Signature:
			
		 		 	Name:
			
		 		 	Address for Delivery of Common Stock Certificates:
			
		 		 	Or
			
		 		 	DWAC Instructions:
			
		 		 	Broker No:                    
		 		 	Account No:                    

  
 24 

 Schedule 1 
 CONVERSION SCHEDULE 
 The 8% Senior Secured Convertible Debentures due on
            , 2013 in the aggregate principal amount of $         are issued by SCOLR Pharma, Inc., a Delaware corporation. This
Conversion Schedule reflects conversions made under Section 4 of the above referenced Debenture. 
 Dated: 

 

							
	 Date of Conversion

(or for first entry,

Original Issue Date)
	  	 Amount of

Conversion
	  	 Aggregate

Principal

Amount and

Accrued Interest
 Remaining
 Subsequent to

Conversion
 (or
original
 Principal
 Amount)
	  	 Company Attest

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

  
 25

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