Document:

Exhibit 10.49

 

CONSENT UNDER AND AMENDMENT NO. 4 TO INDENTURE

 

This CONSENT UNDER AND AMENDMENT
NO. 4 TO INDENTURE is entered into as of June 2, 2022 (this “Amendment”) by and among SCILEX PHARMACEUTICALS INC.,
a Delaware corporation (the “Issuer”), SORRENTO THERAPEUTICS, INC., a Delaware corporation (the “Parent
Guarantor”), U.S. BANK TRUST COMPANY,  NATIONAL  ASSOCIATION (as successor in interest to U.S. Bank National Association),
as trustee (in  such capacity, together with its successors and assigns in such capacity, the “Trustee”) and collateral
agent (in such capacity, together with its successors and assigns in such capacity, the “Collateral Agent”) under the
Indenture (as defined below), and the beneficial owners of the Securities and the Holders listed    on the signature pages hereof
(collectively, the “Holders”).

 

RECITALS

 

WHEREAS,
the Issuer, the Parent Guarantor, the Trustee and the Collateral Agent are parties to that certain Indenture, dated as of September 7,
2018 (as modified and supplemented and in effect from time to time, the “Indenture”), pursuant to which the Issuer
issued Senior Secured Notes due 2026    in the aggregate principal amount of $224,000,000;

 

WHEREAS,
pursuant to Section 9.02(a) of the Indenture, certain provisions of the Indenture may not be amended without the consent of
each Holder of any outstanding Security; and

 

WHEREAS,
the Issuer has requested that the Holders, the Trustee and the Collateral Agent agree to amend the Indenture in certain respects, as set
forth in this Amendment.

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto
agree as follows:

 

SECTION 1.        Definitions.
Except as otherwise defined in this Amendment, terms defined in the Indenture are used herein as defined

 

therein.

 

SECTION 2.        Amendments.
Each of the parties hereto agrees that, effective on the Effective Date (as defined below):

 

(a)            The definition of “Subordinated
Intercompany Indebtedness” in Section 1.01 of the Indenture is hereby amended and restated in its entirety as follows:

 

“Subordinated Intercompany Indebtedness” means
loans or advances (that do not bear an interest rate in excess of 10% per year), unsecured and by their terms subordinated in right of
payment to the Securities, by the Parent Guarantor from time to time to the Issuer in the aggregate principal amount outstanding at any
one time not to exceed $50,000,000 (including approximately $21,700,000 of which is outstanding as of the Issue Date).”

 

(b)            Section 4.02(c) of
the Indenture is hereby amended and restated in its entirety as follows:

 

“Compliance with Indenture.
The Issuer shall deliver to the Trustee, concurrently with the delivery of the financial statements provided for in Section 4.02(a)(i),
commencing with respect to the fiscal year ending December 31, 2018, an Officers’ Certificate certifying that to each such
Officer’s actual knowledge there is no Default or Event of Default that has occurred and is continuing or, if either such Officer
does know of any such Default or Event of Default, such Officer shall include in such certificate a description of such Default or Event
of Default and its status with particularity.”

 

     

     

    

 

(c)            Section 4.02(d) of
the Indenture is hereby amended and restated in its entirety as follows:

 

“Intentionally Deleted.”

 

(d)            Section 4.23 of the
Indenture is hereby amended and restated in its entirety as follows:

 

“Letter of Credit. The
Issuer shall make a timely drawing under the Letter of Credit at such time, if any, that the Issuer is permitted to make such a drawing
under the Letter of Credit. After such time (if any) that the Letter of Credit is drawn by the Issuer, the Issuer shall hold, as of the
end of any calendar month, at least $5,000,000 in aggregate unrestricted Cash Equivalents held by or in the name of the Issuer. In addition,
within five (5) Business Days after the Letter of Credit is drawn by the Issuer, the Issuer shall complete the “LC Repurchase”
as defined in, and in accordance with, Amendment No. 3.”

 

SECTION 3.        Representations
and Warranties, and Covenants, of the Issuer and the Parent Guarantor.

 

(a)            Representations and
Warranties. Each of the Issuer and the Parent Guarantor represents and warrants as follows as of the date hereof and the Effective
Date:

 

(i)             the representations and warranties
contained in the Indenture, the Securities, the Collateral Agreement, the Purchase Agreements or in any Security Document (each as amended
hereby) are true and correct in all material respects as though made on and as of such date (except where such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties are true and correct in all     material
respects as of such earlier date); provided that any representation or warranty that is qualified as to “materiality”,
 “Material Adverse Effect” or similar language shall be true and correct in all respects on such respective dates;

 

(ii)            no event has occurred and is continuing
that constitutes a “Default” or “Event of Default” under the Indenture, the Securities or any Security Document,
and the execution, delivery and performance of this Amendment will not cause or constitute any such Default or Event of Default under
the Indenture, the Securities or any Security Document, as amended hereby; and

 

(iii)           each of the Issuer and the Parent
Guarantor has duly authorized, executed and delivered this Amendment, and this Amendment constitutes  the legal, valid and binding
obligation of the Issuer and the Parent Guarantor enforceable against such person in accordance with its terms, subject
to the effects of bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization and other similar laws relating to or affecting
creditors’ rights generally and general principles of equity (whether considered in a proceeding in equity or law).

 

    2 

     

    

 

(b)            Covenant.
Except pursuant to Section 6 or Section 7 hereof, except on the August 15, 2022 Payment Date pursuant to Section 4.01(b) of
the Indenture and except after the occurrence of an Event of Default (and the exercise of remedies by the Trustee, the Collateral Agent
or the Holders), on     and after the Effective Date, and on or prior to September 30, 2022, the Issuer agrees to not
repurchase, repay or otherwise retire or cancel (or otherwise   permit or direct the cancellation of) any of the Securities.

 

SECTION 4.        Representations
and Warranties, and Covenants, of the Holders.

 

(a)            Representations
and Warranties. Each Holder hereby represents and warrants, with respect to itself, to each of the Trustee and the Collateral Agent
that as of the date hereof and as of the Effective Date (i) such Holder owns or beneficially owns, respectively, the principal amount
of the Securities set forth opposite such Holder’s name under the column heading “Principal Amount of Securities” in
Schedule 1 attached hereto and, if such Securities are beneficially owned through the book-entry system of the Depository,
then such Securities are held through the Depository participant set forth opposite such Holder’s name under the column heading
 “Depository Trust Company Participant Name and Number” in Schedule 2 attached hereto (and if nothing is set
forth opposite such Holder’s name under the column heading “Depository Trust Company Participant Name and Number” in
Schedule 2  attached hereto then such Holder does not hold such Securities through the book-entry system of the Depository),
(ii) the CUSIP Number of such Securities  that are beneficially owned by such Holder are set forth opposite such Holder’s
name under the column heading “CUSIP No.” in Schedule 2 attached hereto, (iii) such Holder is not the
Issuer, the Parent Guarantor or a Subsidiary of the Issuer or the Parent Guarantor, (iv) such Holder has the full power and  
   authority to provide this Amendment with respect to such Securities that are owned or beneficially owned by such Holder and (v) this
Amendment has been duly executed and delivered by such Holder, and this Amendment constitutes a legal, valid and binding obligation of
such Holder enforceable against such Holder in accordance with its terms.

 

(b)            Covenants.
Each Holder (on a several and not joint basis) covenants to promptly notify the Trustee and the Issuer upon the transfer of such Holder’s
Securities, any change to such Holder’s Pro Rata Share (as defined herein) or upon a change of any of the information contained
in Schedule 1 (solely as to such Holder’s Wire Transfer Instructions) or Schedule 2, in each case, as to such Holder.
Each Holder (on a several and not joint basis) agrees to indemnify and hold harmless the Trustee and the Collateral Agent from and against
any and all damages, losses, costs and expenses (including, without limitation, legal fees and expenses) arising or resulting from reliance
upon the representations and warranties by such Holder set forth in this Section 4.

 

SECTION 5.        Effectiveness
of Amendments. The amendments to the Indenture set forth in Section 2 hereof shall become effective as of the date (such date,
the “Effective Date”) that:

 

(a)            the Trustee shall have
received counterparts of this Amendment executed by the Trustee, the Issuer, the Parent Guarantor, the Collateral Agent and all the Holders
of the then outstanding Securities;

 

    3 

     

    

 

(b)            the
Issuer shall have irrevocably deposited or caused to be irrevocably deposited with the Trustee (no later than two Business Days after
the date of this Amendment) to the account specified on Exhibit A attached hereto an amount equal to $41,443,678.00
(the “Initial Repurchase Amount”), to be held in escrow by the Trustee for the sole purpose of effectuating the Initial
Repurchase (as defined below);

 

(c)            the Issuer shall have paid
(no later than two Business Days after the date of this Amendment) the actual, reasonable and documented fees and expenses of the Trustee
associated with the negotiation and performance of this Amendment in the amount of $1,500.00 per the wire instructions provided by the
Trustee to the Company in writing prior to the execution of this Amendment, and the actual, reasonable and documented fees of its counsel,
Shipman & Goodwin LLP,  in the amount of $18,920.00 per the wire instructions provided by Shipman & Goodwin LLP
to the Company in writing prior to   the execution of this Amendment; and

 

(d)            the Issuer shall have paid
(no later than two Business Days after the date of this Amendment) the actual, reasonable and documented fees and expenses of counsel
to the Holders, Pillsbury Winthrop Shaw Pittman LLP, in the amount of $194,500.50 per the wire instructions provided by Pillsbury Winthrop
Shaw Pittman LLP to the Company in writing prior to the execution of this Amendment.

 

SECTION 6.        Initial Repurchase.

 

(a)            No
later than the Business Day after the Effective Date, the Trustee shall apply the Initial Repurchase Amount to repurchase from each Holder
Securities in a principal amount equal to (i) $41,443,678.00 multiplied by (ii) a fraction the numerator of which is the then
outstanding principal  amount of the Securities held by such Holder and the denominator of which is the then outstanding principal
amount of all of the outstanding Securities (the fraction in clause (ii) with respect to each Holder, such Holder’s “Pro
Rata Share”), at a purchase price in cash equal to the amount set forth opposite such Holder’s name under the column
heading “Initial Repurchase Price” in Schedule 1 attached hereto, which purchase price will be paid to such
Holder to the account set forth opposite such Holder’s name under the column heading “Wire Transfer Instructions” in
Schedule 1 attached hereto (such repurchase, the “Initial Repurchase”).

 

(b)            In connection with the
Initial Repurchase, each Holder agrees that the books and records of the Issuer and the Trustee shall be adjusted to reflect the repurchase
of the interests in the Securities repurchased.

 

(c)            No later than the Business
Day after the Effective Date, the Trustee shall pay the Initial Repurchase Amount to the Holders entitled thereto pursuant to this Section 6.

 

    4 

     

    

 

SECTION 7.        Final Repurchase.

 

(a)             At
any time on and after the Effective Date, and on or prior to September 30, 2022, if the Initial Repurchase has been consummated,
the Issuer may, in its sole and absolute discretion, provide notice substantially in the form attached hereto as Exhibit B
(the “Final Repurchase Notice”) to the Trustee and the Holders that the Issuer intends to repurchase from
the Holders all of the remaining outstanding Securities at a purchase price in cash equal to 100% of the principal amount thereof minus
$28,000,000 (such repurchase, the “Final Repurchase”). If delivered, the Final Repurchase Notice shall be binding,
irrevocable and unconditional. If the Issuer provides the Holders with a Final Repurchase Notice, the Issuer will, no later than September 30,
2022, also irrevocably deposit or cause to be irrevocably deposited with the Trustee to the account specified on Exhibit A
attached hereto an amount equal to 100% of the then-outstanding principal amount (on the books and records of the Trustee and,
not, for the avoidance of doubt, the Depository) of all of the   outstanding Securities minus $28,000,000 (the “Final Repurchase
Amount”, and the delivery of the Final Repurchase Notice and such deposit of the Final Repurchase Amount with the Trustee shall
be referred to herein as the “Final Repurchase Conditions”) to be held in escrow by the Trustee for the sole purpose
of effectuating the Final Repurchase. The Trustee shall apply the Final Repurchase Amount to repurchase from each Holder such Holder’s
Pro Rata Share of the Securities not later than two (2) Business Days after the later of the date of receipt by the Trustee of the
(i) Final Repurchase Notice and (ii)     Final Repurchase Amount, which Final Repurchase Amount will be paid to such
Holder to the account set forth opposite such Holder’s name under the  column heading “Wire Transfer Instructions”
in Schedule 1 attached hereto; provided, that such Wire Transfer Instructions may be amended (solely with respect to such
Holder) in accordance with Section 4(b) hereof.

 

(b)             In
connection with the Final Repurchase: (i) if the Securities are Definitive Securities, the applicable Holder shall surrender such
Holder’s Security to the Trustee and such Holder shall take such actions reflecting the cancellation of such interests as may be
reasonably requested by the Issuer or the Trustee, and (ii) if the Securities are Global Securities held by the Depository, then
the applicable Holder shall cause the surrendered beneficial interests in such Global Securities so purchased to be transferred to the
account of the Trustee pursuant to the applicable operational procedures of the Depository for tendering and withdrawing securities in
the amount set forth opposite such Holder’s name under the column heading “DTC Surrendered Amount” in Schedule
2 attached hereto (and if nothing is set forth opposite such Holder’s name under the column heading “DTC Surrendered
Amount” in Schedule 2 attached hereto then such Holder does not hold such Securities through the book-entry system
of the Depository) and the Issuer shall deliver a cancellation order to the Trustee with respect to such beneficial interests in accordance
with Section 2.11 of the Indenture in the form attached hereto as Exhibit L or, if the Global Securities are
not held by the Depository, the applicable Holder shall take such actions reflecting the cancellation of such interests  as may
reasonably be requested by the Issuer, the Trustee or the Depository.

 

(c)             On the date of the Final
Repurchase (or such later date as to the delivery of such information as the Trustee may reasonably request in order to make the payment
of the Final Repurchase Amount), the Trustee shall pay the Final Repurchase Amount to the Holders entitled thereto and all Securities
repurchased by the Issuer pursuant to the Final Repurchase shall be delivered to the Trustee for cancellation in accordance with Section 7(b) hereof
and Section 2.11 of the Indenture. Upon such repurchase, all of the Securities will be deemed cancelled and of no further force or
effect. The Issuer and the Holders agree to take any action as may be required to evidence the cancellation of the Securities on the books
and records of the Depository in connection with the Final Repurchase. The Issuer and the Holders agree that Section 7(j) of
Amendment No. 3 shall not apply to the Final Repurchase.

 

(d)             In connection with the
Final Repurchase, and contemporaneous with the payment of the Final Repurchase Amount to the Holders, the Holders agree that the obligation
of the Issuer to repay $28,000,000 aggregate principal amount of Securities is forgiven and discharged, which $28,000,000 represents the
increase in aggregate principal amount of the Securities that occurred on February 15, 2022, which the Issuer and the Holders hereby
agree to treat as not having been issued.

 

    5 

     

    

  

SECTION 8.        Discharge
of Indenture Upon Consummation of Final Repurchase.

 

(a)             Upon
consummation of the Final Repurchase, and contemporaneous with the payment of the Final Repurchase Amount to the Holders, the Holders
agree that all obligations, sums payable and indebtedness of every type and description of the Issuer, the Parent Guarantor and any other
  guarantor of the obligations of the Issuer under the Indenture, in each case, owed to the Holders under the Indenture, the Guarantee,
the Collateral    Agreement or any other Security Documents (except to the extent set forth therein pursuant to Section 8.01(b) of
the Indenture) shall have been paid in full and all security interests or liens granted by any of such Persons thereunder will, automatically
and without further action by any of the Holders, the Trustee  or the Collateral Agent, be released and terminated. As of the consummation
of the Final Repurchase and the related cancellation of all of the outstanding Securities under the Indenture, upon the delivery (i) to
the Trustee by the Issuer of the Officers’ Certificate with respect to Section 8.01(a) of the Indenture (and the acknowledgment
of discharge by the Trustee annexed thereto) in the form attached hereto as Exhibit C and (ii) to the Trustee
of the Opinion of Counsel required by Section 8.01(a)(iii) of the Indenture, in substantially the form attached hereto as Exhibit D,
the Indenture shall be discharged, and each  of the Indenture, the Guarantee, the Collateral Agreement and any other Security Documents
shall automatically be terminated and shall cease to be of   further effect pursuant to Section 8.01 of the Indenture (except
to the extent set forth therein pursuant to Section 8.01(b) of the Indenture).

 

(b)             Upon
the delivery by the Issuer to the Trustee of the Officers’ Certificate contemplated by Section 11.08 of the Indenture in the
form attached hereto as Exhibit C, each of the Trustee and the Collateral Agent shall comply with its respective obligations
set forth therein with respect to the release of the Lien on the Collateral and the Trustee shall deliver to the Issuer and the Collateral
Agent a notice stating that the Trustee, on behalf of the Holders, disclaims and gives up any and all rights it has in or to the Collateral
(other than with respect to funds held by the Trustee pursuant to Article 8 of   the Indenture), and any rights it has under
the Security Documents, and upon receipt by the Collateral Agent of such notice, the Collateral Agent shall be deemed not to hold a Lien
in the Collateral on behalf of the Trustee and shall do or cause to be done all acts reasonably requested by the Issuer to release  
such Lien as soon as is reasonably practicable, including, without limitation, the execution and delivery to the Issuer of the documents
attached hereto as Exhibits E, F and I and the Collateral Agent hereby authorizes the Issuer to file
the UCC Termination Statement attached hereto as Exhibit J and the executed Termination and Release of Trademark Collateral
Agreement attached hereto as Exhibit F and deliver the executed Termination of  Deposit  Account Control
Agreement attached hereto as Exhibit I to Bank of America, N.A.

 

(c)             Each of the Issuer and
the Parent Guarantor acknowledges and agrees that the obligations and liabilities of the Issuer and the Parent Guarantor under the Indenture,
the Guarantee, the Collateral Agreement and the other Security Documents shall be reinstated with full force and effect if, at any time
on or after the date of the consummation of the Final Repurchase, all or any portion of the Final Repurchase Amount paid to the Trustee
or any Holder is voided or rescinded or must otherwise be returned by the Trustee or any Holder to the Issuer or the Parent Guarantor
upon the Issuer’s or the    Parent Guarantor’s insolvency, bankruptcy or reorganization or otherwise, all as though
such payment had not been made.

 

    6 

     

    

 

SECTION 9.        Effect on
the Indenture, Securities, Purchase Agreement and Security Documents; Additional Event of Default.

 

(a)             On and after the date of
this Amendment, each reference in the Indenture to “this Indenture,” “hereunder,” “hereof,” “herein”
or words of like import, and each reference in the Securities, the Purchase Agreement or any Security Documents to the Indenture, shall
mean and be a reference to the Indenture as amended hereby.

 

(b)             Except as specifically
amended herein, the Indenture, the Securities, the Purchase Agreement and the Security Documents shall remain in full force and effect
and are hereby ratified and confirmed.

 

(c)             Except as set forth in
this Amendment, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy
of the Trustee, the Collateral Agent or any of the Holders under the Indenture, the Securities, the Purchase Agreement or any of the Security
Documents, nor constitute a waiver of any provision thereof.

 

(d)             None of the Trustee, the
Collateral Agent or any Holder is under any obligation to enter into or consent to this Amendment. The entering into of this Amendment
by the Trustee and the Collateral Agent and any consent to this Amendment by any Holder shall not be deemed to limit or hinder any rights
of any such party under the Indenture, the Securities, the Purchase Agreement or any Security Document, nor shall it be deemed to create
or infer a course of dealing between any such party, on the one hand, and the Parent Guarantor or the Issuer, on the other hand, with
regard to any provision thereof.

 

(e)             If the Issuer fails to
irrevocably deposit or fails to irrevocably cause to be deposited the Initial Repurchase Amount with the Trustee as set forth in Section 5(b) hereof,
or if the Issuer fails to pay the fees and expenses set forth in Sections 5(c) and 5(d) hereof, on or prior to the second Business
Day after the date of this Amendment, such failure shall be deemed to be an Event of Default.

 

SECTION 10.      Authorization
of Trustee and Collateral Agent.

 

(a)             Each of the Trustee and
the Collateral Agent is hereby authorized, empowered and directed by the undersigned to execute and deliver this Amendment and to execute
any documents or take any actions reasonably necessary in order to effectuate this Amendment.

 

(b)             The
Issuer hereby represents and warrants that all of the AR Loan Obligations (as defined in the CNH Intercreditor Agreement (as defined
in Amendment No. 3)) have been paid in full and each of the Credit Agreement (as defined in Amendment No. 3) and the other
AR Loan Documents (as defined in the CNH Intercreditor Agreement) have been terminated in full (other than the two Deposit  Account
  Control Agreements,  each  dated December 14, 2020, among the Issuer, CNH Finance Fund I, L.P., the Collateral Agent
and Bank of America, N.A.) (collectively, the “CNH Control Agreements”). The Issuer has requested that the Collateral
Agent, Trustee and Holders consent to the closing of the bank accounts which are the subject of   the CNH Control Agreements, and
the Holders, Trustee and Collateral Agent hereby agree to the closing of such accounts. Upon the occurrence of the Effective Date, each
of the Trustee and the Collateral Agent is hereby authorized, empowered and directed by the undersigned to execute and deliver to the
Issuer: (i) a letter agreement terminating the CNH Intercreditor Agreement in the form attached hereto as Exhibit K,
and (ii) the Termination of Deposit Account Control Agreements in the forms attached hereto as Exhibits G and H
(and the Collateral Agent hereby authorizes the Issuer to deliver  such  executed Terminations to Bank of America,
N.A.).

 

    7 

     

    

 

(c)             In
accordance with Section 8.01 of the Indenture, upon satisfaction of the conditions set forth in such Section 8.01, the Trustee
shall acknowledge in writing the discharge of all of the obligations under the Indenture in the form attached hereto as Exhibit C.

 

(d)             Upon
the occurrence of the Effective Date, the Collateral Agent is hereby authorized, empowered and directed by the undersigned to execute
and deliver the amendment to the Intercompany Subordination Agreement in the form attached hereto as Exhibit M.

 

SECTION 11.      General
Authorization. Any and all actions heretofore or hereafter taken by the Trustee, the Collateral Agent, the Issuer, the Parent Guarantor
and/or any officer, director, member, manager, partner, employee, contractor, Affiliate, attorney, representative and/or agent of any
of the foregoing consistent with the intent and purpose of the matters approved or consented to in this Amendment are hereby ratified,
confirmed, approved and consented to in all respects.

 

SECTION 12.      Execution
in Counterparts; Facsimile Signatures. The parties may sign any number of copies of this Amendment. Each signed copy shall
be an original, but all of them together represent the same agreement. The exchange of copies of this Amendment and of signature pages by
facsimile or PDF transmission shall constitute effective execution and delivery of this Amendment as to the parties hereto and may be
used in lieu of the original Amendment for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed
to be their original signatures for all purposes. Electronic signatures believed by the Trustee to comply with the ESIGN Act of 2000 or
other applicable law (including electronic images of handwritten signatures and digital signatures provided by DocuSign, Orbit, Adobe
Sign or any other digital signature provider acceptable to the Trustee) shall also be deemed original signatures for all purposes hereunder.

 

SECTION 13.      Governing
Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York without regard to
principles of conflicts of law.

 

SECTION 14.     Severability.
In case any provision in this Amendment shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity,
illegality or unenforceability.

 

SECTION 15.      Headings.
The headings of the Sections of this Amendment have been inserted for convenience of reference only, are not intended to be considered
a part hereof and shall not modify or restrict any of the terms or provisions hereof.

 

    8 

     

    

 

SECTION 16.      Binding
Effect and Notice. After the date of this Amendment, this Amendment shall bind each Holder (and such Holder’s successors
and assigns) and every subsequent owner or beneficial owner of the Securities described on Schedule 1 attached hereto (or
portion thereof that evidences the same debt as such Securities). Any and all notices required to take any action in adopting this Amendment
are hereby waived. Each Holder acknowledges that this Amendment constitutes the required notice of this Amendment pursuant to Section 9.02(b) of
the Indenture. Each Holder and   beneficial owner signatory hereto further agrees that such Holder’s or beneficial owner’s
consent to this Amendment shall not be revoked by such Holder or beneficial owner, and may not be revoked by any successors or assigns
of such Holder or beneficial owner, prior to the Effective Date, notwithstanding the provisions of Section 9.03 of the Indenture.

 

SECTION 17.      Release.
By their execution hereof, the Issuer, the Parent Guarantor and the Holders of beneficial interests in Global  Securities hereby
release the Trustee and its respective affiliates and subsidiaries and their respective officers, directors, employees, shareholders,
agents and representatives as well as their respective successors and assigns from any and all claims, obligations, rights, causes of
action, and liabilities, of whatever     kind and nature, whether known or unknown, whether foreseen or unforeseen, arising
on or before the date hereof, which such parties ever had, now have or hereafter can, shall or may have for, upon or by reason of any
matter, cause or thing whatsoever, which are based upon, arise under or are related to payments made directly to such Holders as a result
of the unavailability of the Depository for payments on the Securities (except to the extent caused by the gross negligence or the willful
misconduct of the Trustee).

 

[Signature Pages Follow]

 

    9 

     

    

 

IN WITNESS WHEREOF, each of
the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

 

	​	ISSUER:
	​	​
	​	SCILEX PHARMACEUTICALS INC.
	​	​
	​	By: 	/s/ Jaisim Shah
	​	​	Name: 	Jaisim Shah
	​	​	Title: 	Chief Executive Officer
	​	​
	​	PARENT GUARANTOR:
	​	​
	​	SORRENTO THERAPEUTICS, INC.
	​	​
	​	By: 	/s/ Henry Ji, Ph.D.
	​	​	Name: 	Henry Ji, Ph.D.
	​	​	Title: 	President, Chief Executive Officer and Chairman of the Board

 

[Signature Page to Amendment No. 4 to
Indenture]

 

     

     

    

 

IN WITNESS WHEREOF, each of
the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

 

	​	TRUSTEE:
	​	​
	​	U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee
	​	​
	​	By: 	/s/ Alison Nadeau 
	​	​	Name: Alison Nadeau
	​	​	Title: Vice President
	​	​
	​	COLLATERAL AGENT:
	​	​
	​	U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Collateral Agent
	​	​
	​	By: 	/s/ Alison Nadeau 
	​	​	Name: Alison Nadeau
	​	​	Title: Vice President

 

[Signature Page to Amendment No. 4 to
Indenture]Exhibit 10.50 

 

 

 

COLLATERAL
AGREEMENT

 

Dated as
of September 7, 2018

 

AMONG

 

SCILEX PHARMACEUTICALS INC.

as Grantor,

 

U.S. BANK
NATIONAL ASSOCIATION,

as Trustee,

 

and

 

U.S. BANK
NATIONAL ASSOCIATION,

as Collateral Agent

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	Article I DEFINITIONS; RULES OF CONSTRUCTION	1
	Section 1.1 	Terms Defined in the Indenture	1
	Section 1.2 	Terms Defined in UCC	1
	Section 1.3 	Definitions of Certain Terms Used Herein	2
	Section 1.4 	Rules of Construction	6
	Article II GRANT OF SECURITY INTEREST	7
	Section 2.1 	Grant of Security Interest	7
	Article III REPRESENTATIONS AND WARRANTIES	9
	Section 3.1 	Validity and Priority of Security Interest	9
	Section 3.2 	Location of Collateral	9
	Section 3.3 	Exact Names	9
	Section 3.4 	Accounts and Chattel Paper	10
	Section 3.5 	Documents, Instruments, and Chattel Paper	10
	Section 3.6 	Proprietary Rights	10
	Section 3.7 	Investment Property	10
	Section 3.8 	Commercial Tort Claims	11
	Section 3.9 	Bank Accounts	11
	Section 3.10 	Perfection Certificate	11
	Section 3.11 	Personal Property Leases	11
	Section 3.12 	Trade Names	11
	Section 3.13 	No Financing Statements or Security Agreements	11
	Section 3.14 	Location for Purposes of the UCC	11
	Article IV COVENANTS	12
	Section 4.1 	General	12
	Section 4.2 	Perfection and Protection of Security Interest	14
	Section 4.3 	Electronic Chattel Paper	15
	Section 4.4 	Maintenance of Property	15
	Section 4.5 	Investment Property	15
	Section 4.6 	Proprietary Rights	17
	Section 4.7 	Inventory	17
	Section 4.8 	Commercial Tort Claims	17
	Section 4.9 	No Interference	17
	Section 4.10 	Insurance	17
	Section 4.11 	Condemnation	18
	Section 4.12 	Further Assurances	18
	Section 4.13 	Post-Closing Obligations	19
	Article V REMEDIES	19
	Section 5.1 	Remedies	19
	Section 5.2 	Grant of Intellectual Property License	22
	Section 5.3 	Application of Proceeds	22

 

    i 

     

    

 

	Article VI CONCERNING THE COLLATERAL AGENT	23
	Section 6.1   	Reliance by Collateral Agent; Indemnity Against Liabilities, etc.	23
	Section 6.2   	Exercise of Remedies	23
	Section 6.3   	Authorized Investments	23
	Section 6.4   	Bankruptcy Proceedings	24
	Article VII COLLATERAL AGENT AND TRUSTEE RIGHTS, DUTIES AND LIABILITIES; ATTORNEY IN FACT; PROXY	24
	Section 7.1   	The Collateral Agent’s and the Trustee’s Rights, Duties, and Liabilities	24
	Section 7.2   	Right to Cure	25
	Section 7.3   	Confidentiality	25
	Section 7.4   	Power of Attorney	27
	Section 7.5   	Proxy	27
	Section 7.6   	Nature of Appointment; Limitation of Duty	27
	Section 7.7   	Additional Matters Relating to the Collateral Agent	28
	Section 7.8   	Appointment of Co-Collateral Agent	30
	Section 7.9   	Instructions under Account Control Agreement	30
	Article VIII GENERAL PROVISIONS	31
	Section 8.1   	Notices	31
	Section 8.2   	Waiver of Notices	32
	Section 8.3   	Limitation on Collateral Agent’s and Other Secured Parties’ Duty with Respect to the Collateral	32
	Section 8.4   	Compromises and Collection of Collateral	33
	Section 8.5   	Specific Performance of Certain Covenants	33
	Section 8.6   	Cumulative Remedies; No Prior Recourse to Collateral	33
	Section 8.7   	Limitation by Law; Severability of Provisions	33
	Section 8.8   	Reinstatement	34
	Section 8.9   	Binding Effect	34
	Section 8.10   	Survival of Representations	34
	Section 8.11   	Captions	34
	Section 8.12   	Termination and Release	34
	Section 8.13   	Entire Agreement	35
	Section 8.14   	Governing Law; Jurisdiction; Consent to Service of Process	35
	Section 8.15   	Waiver of Jury Trial	35
	Section 8.16   	Indemnity	36
	Section 8.17   	Limitation of Liability	36
	Section 8.18   	Counterparts	36
	Section 8.19   	Amendments	37
	Section 8.20   	Incorporation by Reference	37
	Section 8.21   	English Language	37

 

	SCHEDULE 1.3	Filing Offices
	SCHEDULE 3.11	Leased Personal Property
	SCHEDULE 4.13	Post-Closing Obligations 
	EXHIBIT A	Form of Perfection Certificate
	EXHIBIT B	Form of Amendment

 

    ii 

     

    

 

COLLATERAL
AGREEMENT

 

THIS COLLATERAL AGREEMENT (as
amended, extended, renewed, restated, supplemented, waived or otherwise modified from time to time, this “Agreement”)
is entered into as of September 7, 2018 by and among SCILEX PHARMACEUTICALS INC., a
Delaware corporation ( “Grantor”); U.S. BANK NATIONAL ASSOCIATION, in its capacity as trustee (and its successors
under the Indenture (as defined below), in such capacity, the “Trustee”); and U.S. BANK NATIONAL ASSOCIATION, in its
capacity as collateral agent for the Secured Parties (as defined below) (and its successors under the Indenture, in such capacity, the
 “Collateral Agent”).

 

PRELIMINARY STATEMENT

 

WHEREAS, pursuant to the terms,
conditions and provisions of (a) the Indenture dated as of the date hereof (as amended, extended, renewed, restated, supplemented,
waived or otherwise modified from time to time, the “Indenture”), among Grantor, Sorrento Therapeutics, Inc. a Delaware
corporation (the “Parent Guarantor”), the Trustee and the Collateral Agent, (b) each Purchase Agreement dated September
7, 2018 (collectively, the “Purchase Agreements”), among Grantor, the Parent Guarantor and each purchaser party thereto
(collectively, the “Purchasers”), Grantor is issuing the Securities (as defined in the Indenture), which will be guaranteed
on an unsecured basis by the Parent Guarantor;

 

WHEREAS, the initial aggregate
principal amount of the Securities will be $224,000,000 which principal amount may be increased pursuant to the terms and conditions of
the Indenture;

 

WHEREAS, Grantor is executing
and delivering this Agreement pursuant to the terms of the Indenture to induce the Trustee to enter into the Indenture and, pursuant to
the terms of the Purchase Agreements, to induce the Purchasers to purchase the Securities; and

 

WHEREAS, Grantor has duly authorized
the execution, delivery and performance by it of this Agreement.

 

NOW, THEREFORE, for and in consideration
of the premises, and of the mutual covenants herein contained, and in order to induce the Trustee to enter into the Indenture and the
Purchasers to purchase the Securities, Grantor, Trustee and Collateral Agent, on behalf of itself and each other Secured Party (and each
of their respective successors or assigns), hereby agree as follows:

 

Article
I

DEFINITIONS; RULES OF CONSTRUCTION

 

Section
1.1            Terms
Defined in the Indenture. All capitalized terms used and not otherwise defined herein have the meanings assigned to such terms in
the Indenture.

 

Section
1.2           
Terms Defined in UCC. Terms defined in the UCC (as defined below) that are not otherwise defined in this Agreement
are used herein as defined in the UCC.

 

    1

     

    

 

Section
1.3           
Definitions of Certain Terms Used Herein. As used in this Agreement, in addition to the terms defined in the preamble
and Preliminary Statement above, the following terms have the following meanings:

 

“Account”
means, with respect to a Person, any of such Person’s now owned and hereafter acquired or arising “accounts”, as defined
in the UCC, including any rights to payment for the sale or lease of goods or rendition of services, whether or not they have been earned
by performance, and “Accounts” means, with respect to any such Person, all of the foregoing.

 

“Account Control Agreement”
means each of (i) the SVB Account Control Agreement and (ii) any other account control agreement, account pledge, charge over accounts
or similar agreement, which, in each case, is in form and substance reasonably satisfactory to the Collateral Agent (it being agreed that
any agreement that shall require the Collateral Agent to indemnify any institution in its individual capacity shall not be reasonably
acceptable to the Collateral Agent) and to counsel to the Purchasers.

 

“Account Debtor”
means each Person obligated on an Account, Chattel Paper or General Intangible.

 

“Agreement”
has the meaning assigned to such term in the preamble.

 

“Amendment”
has the meaning specified in Section 4.2(a).

 

“Bankruptcy Proceeding”
means, with respect to any Person, a general assignment by such Person for the benefit of its creditors, or the institution by or against
such Person of any proceeding seeking relief as debtor, or seeking to adjudicate such Person as bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment or composition of such Person or its debts, under any law or regulation relating to bankruptcy, insolvency, reorganization
or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official for such Person or for any substantial
part of its property.

 

“Chattel Paper”
means any “chattel paper”, as such term is defined in the UCC, now owned or hereafter acquired by any Person and, in any event,
shall include, all Electronic Chattel Paper and Tangible Chattel Paper.

 

“Co-Collateral
Agent” means a financial institution appointed by the Collateral Agent in accordance with Sections 7.7(a) and 7.8 to act as
co-collateral agent for the Secured Parties.

 

“Collateral”
has the meaning specified in Section 2.1.

 

“Collateral Agent”
has the meaning assigned to such term in the preamble.

 

“Collateral Agent’s
Liens” means the Liens on the Collateral granted to the Collateral Agent (or any Co-Collateral Agent), for the benefit of the
Secured Parties, pursuant to this Agreement and the other Indenture Documents.

 

    2

     

    

 

“Commercial Tort Claims”
means, with respect to a Person, all of such Person’s now owned or hereafter acquired “commercial tort claims”, as defined
by the UCC, identified on Schedule 12 of the Perfection Certificate and as specifically identified hereafter and, in any event, shall
include, any claim now owned or hereafter acquired by any Person arising in tort, with respect to which: (a) the claimant is an organization;
or (b) the claimant is an individual and the claim (i) arose in the course of the claimant’s business or profession and
(ii) does not include damages arising out of personal injury to or the death of an individual.

 

“Confidential Information”
has the meaning specified in Section 7.3(b).

 

“Confidential Parties”
has the meaning specified in Section 7.3(c).

 

“Control”
has the meaning assigned to such term in Article 8 of the UCC or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9
of the UCC.

 

“Copyright, Patent,
and Trademark Agreements” means each copyright security agreement, patent collateral agreement, and trademark collateral agreement
executed (and if necessary, notarized and legalized) and delivered by Grantor to the Collateral Agent to evidence or perfect the Collateral
Agent’s security interest in Grantor’s present and future copyrights, patents, trademarks, and related licenses and rights
for the benefit of the Secured Parties.

 

“Effective Date”
means the date of this Agreement.

 

“Electronic Chattel
Paper” means any “electronic chattel paper”, as such term is defined in the UCC, now owned or hereafter acquired
by any Person.

 

“Equipment”
means, with respect to a Person, all of such Person’s now owned and hereafter acquired machinery, “equipment”, as defined
by the UCC, furniture, furnishings, fixtures, and other tangible personal property (except Inventory), including rolling stock with respect
to which a certificate of title has been issued, aircraft, dies, tools, jigs, and office equipment, as well as all of such types of property
leased by such Person and all of such Person’s rights and interests with respect thereto under such leases (including, options to
purchase); together with all present and future additions and accessions thereto, replacements therefor, component and auxiliary parts
and supplies used or to be used in connection therewith, and all substitutes for any of the foregoing, and all manuals, drawings, instructions,
warranties, and rights with respect thereto, wherever any of the foregoing is located.

 

“Filing Office”
means the office or offices specified on Schedule 1.3 hereto and, if applicable, any other appropriate office of the state where Grantor
is “located” (as such term is used in Section 9-307 of the UCC).

 

“Financial Assets”
means any “financial asset”, as such term is defined in the UCC, now owned or hereafter acquired by any Person.

 

“General
Intangibles” means, with respect to a Person, all of such Person’s now owned or hereafter acquired “general
intangibles”, as defined in the UCC, including payment intangibles, choses in action and causes of action and all other
intangible personal property of such Person of every kind and nature (other than Accounts), including, all contract rights,
Proprietary Rights, corporate or other business records, inventions, designs, blueprints, plans, specifications, patents, patent
applications, trademarks, servicemarks, trade names, trade secrets, goodwill, copyrights, computer software, customer lists,
registrations, licenses, franchises, tax refund claims, any funds that may become due to such Person in connection with the
termination of any employee benefit plan or any rights thereto and any other amounts payable to such Person from any employee
benefit plan, rights and claims against carriers and shippers, rights to indemnification, business interruption insurance and
proceeds thereof, property, casualty or any similar type of insurance and any proceeds thereof, proceeds of insurance covering the
lives of key employees on which such Person is beneficiary, rights to receive dividends, distributions, cash, instruments and other
property in respect of or in exchange for pledged Equity Interests or Investment Property, and any letter of credit, guarantee,
claim, security interest, or other security held by or granted to such Person.

 

    3

     

    

 

“Grantor”
has the meaning assigned to such term in the preamble.

 

“Indemnified Liabilities”
has the meaning specified in Section 8.16.

 

“Indemnified Person”
has the meaning specified in Section 8.16.

 

“Indenture Documents”
means (a) the Indenture, (b) the Securities, (c) each Security Document, including this Agreement and (d) any other related documents
or instruments executed and delivered pursuant to or in connection with any of the foregoing.

 

“Intercompany Obligations”
means, collectively, all indebtedness, obligations and other amounts at any time owing to Grantor from any of Grantor’s Subsidiaries
or Affiliates and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such indebtedness, obligations or other amounts.

 

“Inventory”
means, with respect to a Person, all of such Person’s now owned and hereafter acquired “inventory”, as defined in the
UCC, goods and merchandise, wherever located, in each case to be furnished under any contract of service or held for sale or lease, all
returned goods, raw materials, work-in-process, finished goods (including embedded software), other materials and supplies of any kind,
nature or description that are used or consumed in such Person’s business or used in connection with the packing, shipping, advertising,
selling or finishing of such goods, merchandise and other property and all documents of title or other documents representing them.

 

“Investment Property”
means, with respect to a Person, all of such Person’s right, title and interest in and to any and all “investment property”,
as defined in the UCC, including all (a) securities, whether certificated or uncertificated, (b) securities entitlements, (c) securities
accounts, (d) commodity contracts, (e) commodity accounts and (f) Equity Interests; together with all other units, shares, partnership
interests, membership interests, membership rights, Equity Interests, rights or other equivalent evidences of ownership (howsoever designated)
issued by any Person.

 

“Investment Property
Collateral” means Investment Property that constitutes Collateral.

 

    4

     

    

 

“Investment Property
Issuer” means the issuer of any Investment Property Collateral.

 

“Majority Holders”
means, at any time, the Holders of a majority of the aggregate principal amount of the Securities then outstanding.

 

“Material Adverse Effect”
has the meaning assigned to such term in the Purchase Agreements.

 

“Obligations”
means all present and future obligations of every nature of Grantor under the Indenture Documents from time to time owed to the Trustee,
any Holder of Securities, the Collateral Agent and any other Secured Party, whether for principal, interest (including interest that,
but for the filing of a petition in any Bankruptcy Proceeding with respect to Grantor, would have accrued on any Obligation, whether or
not a claim is allowed or allowable against Grantor for such interest in such proceeding), premium, fees, expenses, indemnification, performance
or otherwise.

 

“Perfection Certificate”
means a certificate substantially in the form of Exhibit A, completed and supplemented with the schedules and attachments contemplated
thereby, delivered by Grantor on the Effective Date, as amended by any certificate subsequently delivered pursuant to Sections 4.1(e)
or 4.12(a).

 

“Proprietary Rights”
means, with respect to a Person, all of such Person’s now owned and hereafter arising or acquired new drug applications or abbreviated
new drug applications in the United States, including those new drug applications or abbreviated new drug applications in the United States
that are owned as of the date hereof set forth on Schedule 7 of the Perfection Certificate, and any licenses, franchises, permits, patents,
patent rights, copyrights, works that are the subject matter of copyrights, trademarks, service marks, trade names, trade styles, patent,
trademark and service mark applications, and all licenses and rights related to any of the foregoing, including those patents and trademarks
set forth on Schedule 6 of the Perfection Certificate, and all other rights under any of the foregoing, all extensions, renewals, reissues,
divisions, continuations and continuations in part of any of the foregoing and all rights to sue for past, present, and future infringement
of any of the foregoing.

 

“Related Person”
means, with respect to any specified Person, such Person’s Affiliates, and the respective officers, directors, employees, agents,
advisors and attorneys-in-fact of such Person and its Affiliates.

 

“Requirement of Law”
means, as to any Person, any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or of a Governmental
Authority, in each case applicable to or binding upon the Person or any of its property or to which the Person or any of its property
is subject.

 

“Secured Parties”
means (a) the Collateral Agent (including any Co-Collateral Agent), (b) each Holder of Securities, (c) the beneficiaries of each indemnification
obligation undertaken by Grantor under any Indenture Document, (d) the Trustee and (e) the successors and permitted assigns of each of
the foregoing.

 

    5

     

    

 

“SVB Account
Control Agreement” means the Account Control Agreement entered into after the date hereof among Grantor, the Collateral Agent
and Silicon Valley Bank (or its Affiliate).

 

“Tangible Chattel
Paper” means any “tangible chattel paper”, as such term is defined in the UCC, now owned or hereafter acquired by
any Person.

 

“Trustee”
has the meaning assigned to such term in the preamble.

 

“UCC” means
the Uniform Commercial Code (or any successor statute), as in effect from time to time, of the State of New York or of any other state
the laws of which are required as a result thereof to be applied in connection with the creation or perfection of security interests.

 

Section
1.4           
Rules of Construction. Unless the context otherwise requires:

 

(a)          a term has the meaning assigned to it;

 

(b)          except
as otherwise set forth in the Indenture, all accounting terms used herein shall be interpreted in accordance with GAAP, and an accounting
term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(c)          the word “or” shall be construed to mean “and/or”;

 

(d)          the
word “including” means including without limitation, and any item or list of items set forth following the word “including”,
 “include” or “includes” in this Agreement is set forth only for the purpose of indicating that, regardless of
whatever other items are in the category in which such item or items are “included”, such item or items are in such category
and shall not be construed as indicating the items in the category in which such item or items are “included” are limited
to such item or items similar to such items;

 

(e)           all
references in this Agreement to any designated “Article”, “Section”, “Exhibit”, “Schedule”,
definition and other subdivision are to the designated Article, Section, Exhibit, Schedule, definition and other subdivision, respectively,
of this Agreement;

 

(f)           all
references in this Agreement to (i) the words “herein”, “hereof” and “hereunder” and other words
of similar import refer to this Agreement as a whole and not to any particular Article, Section, Exhibit, Schedule and other subdivision,
respectively, and (ii) the term “this Agreement” means this Agreement as a whole, including the Exhibits and Schedules;

 

(g)          words
in the singular include the plural and words in the plural include the singular;

 

(h)         
“$” and “U.S. Dollars” each refers to United States dollars, or such other money of the United States of
America that at the time of payment is legal tender for payment of public and private debts;

 

    6

     

    

 

(i)         the words “asset” or “property” shall be construed to have the same meaning and effect and to refer to
any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights;

 

(j)         unless
otherwise specified, all references to an agreement or other document include references to such agreement or document as from time to
time amended, restated, reformed, supplemented or otherwise modified in accordance with the terms thereof (subject to any restrictions
on such amendments, restatements, reformations, supplements or modifications set forth herein);

 

(k)         all
references to any Person shall be construed to include such Person’s successors and permitted assigns (subject to any restrictions
on assignment, transfer or delegation set forth herein), and any reference to a Person in a particular capacity excludes such Person
in other capacities; and

 

(l)           the word “will” shall be construed to have the same meaning and effect as the word “shall”.

 

Article
II

GRANT OF SECURITY INTEREST

 

Section
2.1           
Grant of Security Interest. As security for the Obligations, Grantor hereby grants to the Collateral Agent, for the
benefit of the Secured Parties, a continuing security interest in and lien on Grantor’s right, title and interest in and to all
of the following property and assets of Grantor, whether now owned or existing or hereafter acquired or arising:

 

(a)        the
Product and all property and assets of Grantor that are necessary for, or otherwise relevant to, now or in the future, the manufacture
and sale of the Product, on a worldwide basis (exclusive of Japan), including:

 

(i)         all
Intellectual Property related to the Product;

 

(ii)         all marketing or similar regulatory approvals related to the Product (including all Marketing Authorizations);

 

(iii)        all agreements and other contracts related to the Product;

 

(iv)       all
current assets related to the Product, including all Inventory, Accounts (including any credit enhancement therefor), money, cash, cash
equivalents and securities;

 

(v)        all Intercompany Obligations;

 

(vi)       all
Chattel Paper;

 

(vii)      all Commercial Tort Claims;

 

    7

     

    

 

 

(viii)      all contract rights, leases, letters of credit, letter-of-credit rights, instruments, promissory notes, documents, and documents
of title;

 

(ix)         all
Financial Assets;

 

(x)          all Equipment;

 

(xi)         all
General Intangibles;

 

(xii)        all Investment Property;

 

(xiii)       all
deposit accounts, securities accounts and commodity accounts, credits, and balances with, and other claims against, any financial institution
with which Grantor maintains deposits;

 

(xiv)       all
supporting obligations in respect of the foregoing;

 

(xv)       all
other items, kinds and types of personal property, tangible or intangible, of whatever nature, and regardless of whether the creation
or perfection or effect of perfection or non-perfection of a security interest therein is governed by the UCC of any particular jurisdiction
or by another applicable treaty, convention, statute, law or regulation of any applicable jurisdiction; and

 

(xvi)       all
accessions to, substitutions for, and replacements, products, and proceeds of any of the foregoing, including After-Acquired Property,
proceeds of any insurance policies, claims against third parties, and condemnation or requisition payments with respect to all or any
of the foregoing.

 

(b)          all
of Grantor’s rights under the Letter of Credit (including letter-of-credit rights);

 

(c)           the
Reserve Account, the Collateral Account and all credits, and balances with, and other claims against, the financial institution where
such bank accounts are maintained;

 

(d)          all
proceeds of the foregoing clauses (a) through (c); and

 

(e)          all
books, records, and other property related to or referring to any of the foregoing clauses (a) through (d), including books, records,
account ledgers, data processing records, computer software and other property, and General Intangibles at any time evidencing or relating
to any of the foregoing.

 

All of the foregoing, and all other property of
Grantor’s in which a Secured Party may at any time be granted a Lien to secure the Obligations, are herein collectively referred
to as the “Collateral”; provided, however, that notwithstanding anything herein to the contrary, the Collateral
(which, for the avoidance of doubt, includes references to the defined terms used within the definition of Collateral) shall not include,
and the security interest shall not attach to, any and all Excluded Assets.

 

    8

     

    

 

Article
III

REPRESENTATIONS
AND WARRANTIES

 

Grantor represents and warrants
to the Collateral Agent, for the benefit of the Secured Parties, that as of the Effective Date and as of each other date on which the
outstanding aggregate principal amount of the Securities are increased pursuant to the Indenture, as follows:

 

Section
3.1            Validity
and Priority of Security Interest.

 

(a)         This Agreement is effective to create in favor of the Collateral Agent, for the ratable benefit of the Secured Parties, a legal,
valid and enforceable security interest in the Collateral and the proceeds thereof and (i) when the Investment Property Collateral
that consists of Equity Interests is delivered to the Collateral Agent, the Lien created under this Agreement and the other applicable
Security Documents shall constitute a fully perfected Lien on and in all right, title and interest of Grantor in such Investment Property
Collateral, in each case prior and superior in right to any other Person (subject to Permitted Liens) and (ii) when financing statements
in appropriate form are filed in the Filing Offices, the Lien created under this Agreement and the other applicable Security Documents
will constitute a fully perfected Lien on and in all right, title and interest of Grantor in such Collateral in which a security interest
can be perfected by filing a financing statement in the United States, in each case prior and superior in right to any other Person (subject
to Permitted Liens).

 

(b)         Grantor agrees to the recordation of this Agreement or the Copyright, Patent, and Trademark Agreements with the United States Patent
and Trademark Office or the United States Copyright Office, as applicable, together with the financing statements in appropriate form
filed in the Filing Offices. Upon filing in the Filing Offices and, with respect to any Proprietary Rights constituting Collateral specified
in any Perfection Certificate, the United States Patent and Trademark Office, the Lien created shall constitute a fully perfected Lien
on and interest in all right, title and interest of Grantor in such Proprietary Rights in which a security interest may be perfected by
filing in the United States and its territories and possessions, in each case prior and superior in right to any other Person (subject
to Permitted Liens).

 

Section
3.2           Location
of Collateral. The Perfection Certificate contains a correct and complete list of Grantor’s jurisdiction of incorporation,
the location of its books and records relating to the Collateral, the locations of the Collateral (other than Inventory that is in transit,
consignments of Inventory not in excess of $1,000,000, rolling stock, and Collateral in the Collateral Agent’s possession or equipment
in transit and equipment at other locations for purposes of maintenance or repair), and the locations of all of its other places of business.
The Perfection Certificate correctly identifies any of such facilities and locations that are not owned by Grantor where Grantor develops,
manufactures, uses, stores, markets, promotes or sells the Product and sets forth the names of the owners and lessors or sublessors of
such facilities and locations.

 

Section
3.3           Exact
Names. The name in which Grantor has executed this Agreement is the exact name as it appears in Grantor’s organizational documents,
as filed with Grantor’s jurisdiction of incorporation. Except as set forth on the Perfection Certificate or as permitted by the
Indenture or this Agreement, since the date of its organization, Grantor has not been known by or used any other corporate or fictitious
name, been a party to any merger or consolidation or acquired all or substantially all of the assets of any Person.

 

    9

     

    

 

Section
3.4           Accounts
and Chattel Paper. The names of the obligors, amounts owing, due dates and other information with respect to Grantor’s Accounts
and Chattel Paper that are Collateral are and will be correctly stated, in all material respects, at the time furnished, in all records
of Grantor relating thereto and in all invoices furnished to the Collateral Agent by Grantor from time to time.

 

Section
3.5           Documents,
Instruments, and Chattel Paper. All documents, instruments, and Chattel Paper of Grantor describing, evidencing, or constituting
Collateral, and all signatures and endorsements thereon, are and will be complete, valid, and genuine in all material respects. All goods
evidenced by such documents, instruments, and Chattel Paper are and will be owned by Grantor free and clear of all Liens (subject to
Permitted Liens). If Grantor retains possession of any Chattel Paper or other instruments, at the Collateral Agent’s request upon
an Event of Default, such Chattel Paper or instruments shall be marked with the following legend: “This writing and the obligations
evidenced or served hereby are subject to the security interest of U.S. Bank National Association, as Collateral Agent, for the benefit
of Collateral Agent and certain other secured parties.”

 

Section
3.6            Proprietary
Rights. Schedule 6 of the Perfection Certificate sets forth a correct and complete list of all of Grantor’s registered or applied
for patents, copyrights and trademarks constituting Collateral, in each case owned by Grantor in its own name. None of the patents, copyrights
or trademarks listed in such Perfection Certificate is subject to any licensing agreement or similar arrangement except as set forth
therein.

 

Section
3.7            Investment
Property.

 

(a)          Schedule 8 of the Perfection Certificate sets forth a correct and complete list of all of the Investment Property Collateral owned
by Grantor. Grantor is the legal and beneficial owner of such Investment Property Collateral, as so identified, free and clear of any
Lien (other than Permitted Liens), and has not sold, granted any option with respect to, assigned or transferred, or otherwise disposed
of any of its rights or interests therein (other than pursuant to Permitted Liens). Furthermore, (i) to Grantor’s knowledge,
all Investment Property constituting an Equity Interest has been (to the extent such concepts are relevant with respect to such Investment
Property) duly authorized and validly issued by the Investment Property Issuer thereof and are fully paid and non-assessable, (ii) with
respect to any certificates delivered to the Collateral Agent representing an Equity Interest, either such certificates are securities
as defined in Article 8 of the UCC as a result of actions by the Investment Property Issuer thereof or otherwise, or, if such certificates
are not securities as defined in Article 8 of the UCC, Grantor has filed financing statements in appropriate form to perfect the security
interest of the Collateral Agent for the benefit of the Secured Parties therein as a General Intangible, and (iii) to Grantor’s
knowledge, all Investment Property that represents Indebtedness owed to Grantor has been duly authorized, authenticated or issued and
delivered by the Investment Property Issuer of such Indebtedness is the legal, valid and binding obligation of such Investment Property
Issuer and such Investment Property Issuer is not in default thereunder.

 

    10

     

    

 

(b)         To the best of Grantor’s knowledge, (i) none of the Investment Property Collateral has been issued or transferred in violation
in any material respect of the securities registration, securities disclosure or similar laws of any jurisdiction to which such issuance
or transfer may be subject and (ii) none of the Investment Property Collateral is or will be subject to any option, right of first refusal,
shareholders agreement, charter or by-law provisions or contractual restriction of any nature that would prohibit, impair, delay or otherwise
affect the pledge of such Investment Property Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by
the Collateral Agent of rights and remedies hereunder.

 

Section
3.8            Commercial
Tort Claims. Grantor does not hold any Commercial Tort Claims the recovery from which could reasonably be expected to exceed $1,000,000,
for which Grantor has filed a complaint in a court of competent jurisdiction, except as indicated on Schedule 12 of the Perfection Certificate.

 

Section
3.9            Bank
Accounts . Section 10 of the Perfection Certificate contains a complete and accurate list of all bank accounts in which proceeds
of Collateral are held, including deposit accounts, securities accounts and commodity accounts maintained by Grantor with any bank or
other financial institution, broker, securities intermediary, commodity intermediary or other Person.

 

Section
3.10          Perfection
Certificate. The Perfection Certificate delivered by Grantor has been duly prepared, completed and executed and the information set
forth therein is correct and complete, in all material respects.

 

Section
3.11          Personal
Property Leases. Schedule 3.11 hereto sets forth a correct and complete list of all leases and subleases of personal property constituting
Collateral by Grantor as lessee or sublessee (other than any leases of personal property as to which it is lessee or sublessee for which
the value of such personal property is less than $1,000,000), and all leases and subleases of personal property constituting Collateral
by Grantor as lessor or sublessor.

 

Section
3.12          Trade
Names. All trade names, business names, fictitious names, corporate names or other names used by Grantor are listed on Schedule 3
to the Perfection Certificate, including names used by Grantor to sell Inventory constituting Collateral or create Accounts constituting
Collateral, or to which instruments in payment of Accounts constituting Collateral are made payable.

 

Section
3.13          No
Financing Statements or Security Agreements. No financing statement or security agreement describing all or any portion of the Collateral
that has not lapsed or been terminated naming Grantor as debtor has been filed or is of record in any jurisdiction except for (a) financing
statements or security agreements naming the Collateral Agent on behalf of the Secured Parties as the secured party and (b) those that
are no longer effective.

 

Section
3.14          Location
for Purposes of the UCC. Grantor has the place or places of business identified on its Perfection Certificate.

 

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Article
IV 

COVENANTS

 

From the date hereof, and thereafter
until this Agreement is terminated, Grantor agrees as follows:

 

Section
4.1           
General.

 

(a)          Grantor
shall maintain at all times reasonably detailed, accurate (in all material respects) and updated books and records pertaining to the
Collateral and promptly furnish to the Collateral Agent such information relating to the Collateral as the Collateral Agent shall from
time to time reasonably request.

 

(b)         The
Collateral Agent may, and Grantor hereby authorizes the Collateral Agent to, at any time and from time to time, file financing statements,
continuation statements, and amendments thereto that describe the Collateral as described in Section 2.1 or words of similar import and
that contain any other information required pursuant to Article 9 of the UCC for the sufficiency of filing office acceptance of
any financing statement, continuation statement, or amendment, and Grantor agrees to furnish any such information to the Collateral Agent
promptly upon request. The Collateral Agent shall inform Grantor of any such filing either prior to, or reasonably promptly after, such
filing. Grantor acknowledges that it is not authorized to file any financing statement covering the Collateral or amendment or termination
statement with respect to any financing statement covering the Collateral without the prior written consent of the Collateral Agent and
agrees that it will not do so without such consent, subject to Grantor’s rights under Section 9-509(d)(2) of the UCC.

 

(c)         Grantor
shall, at any time and from time to time, (i) notify, in form reasonably satisfactory to the Collateral Agent, any warehouseman, bailee
or any of Grantor’s agents or processors having possession of any Collateral consisting of Inventory or Equipment with a Fair Market
Value in excess of $1,000,000 (calculated based on Grantor’s estimate of the Fair Market Value of such Inventory or Equipment to
be possessed by such warehouseman, bailee, agent or processor over the course of any calendar year on a weighted average basis) of the
security interest of the Collateral Agent in such Collateral (with a copy of such notice sent to the Collateral Agent), (ii) use its
commercially reasonable efforts to obtain an acknowledgment, in form reasonably satisfactory to the Collateral Agent or counsel to the
Purchasers, from such warehouseman, bailee, agent or processor, to the extent not already having otherwise entered into a subordination
agreement for the benefit of the Collateral Agent, stating that the warehouseman, bailee, agent or processor holds such Collateral for
the Collateral Agent and (iii) take such steps as are necessary or as the Collateral Agent may reasonably request (A) for the Collateral
Agent to obtain “control” of any Investment Property Collateral, deposit accounts, securities accounts, commodity accounts,
letter-of-credit rights, or Electronic Chattel Paper constituting Collateral in excess of $1,000,000 individually or $2,500,000 in the
aggregate (other than Investment Property Collateral constituting Equity Interests of a Subsidiary for which no minimum dollar amount
shall apply), with any agreements establishing control to be in form reasonably satisfactory to the Collateral Agent or counsel to the
Purchasers, and (B) to otherwise ensure the continued perfection and priority of the Collateral Agent’s security interest in any
of the Collateral (to the extent required hereunder) and of the preservation of its rights therein. The dollar amount threshold described
in clause (iii)(A) of the preceding sentence as it relates to any deposit account, securities account or commodity account shall be measured
by reference to the closing balance of such account as of each Business Day.

 

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(d)         Grantor agrees to furnish to the Collateral Agent prompt written notice of (i) any change in: (A) Grantor’s name; (B) 
Grantor’s state or other place of organization or form of organization, in each case at least fifteen (15) days prior thereto; or
(C) Grantor’s Federal Taxpayer Identification Number or organizational identification number assigned to it by its jurisdiction
of incorporation or formation, or (ii) the acquisition by Grantor of any material property for which additional filings or recordings
are necessary to perfect and maintain the Collateral Agent’s security interest therein (to the extent perfection of the security
interest in such property is required hereby or by the terms of the Indenture). Grantor agrees not to effect or permit any change referred
to in the preceding sentence unless all filings are promptly made under the UCC or other applicable law that are required in order for
the Collateral Agent to continue at all times following such change to have a valid, legal and perfected, security interest (subject to
Permitted Liens) in the Collateral for its benefit and the benefit of the other Secured Parties.

 

(e)         Grantor
shall not (i) maintain any Collateral with a Fair Market Value in excess of $1,000,000 (other than Inventory constituting Collateral
in transit and consignments of Inventory constituting Collateral not in excess of $1,000,000, rolling stock, equipment in transit between
locations set forth on the Perfection Certificate, equipment at other locations for purposes of maintenance or repair and Collateral
in the Collateral Agent’s possession) at any location other than those locations listed on the Perfection Certificate, (ii) otherwise
change or add to any of such locations, or (iii) change the location of Grantor’s jurisdiction of organization from the location
identified on the Perfection Certificate, unless in each case it gives the Collateral Agent prompt written notice thereof (but in any
event in the case of clause (iii) not later than fifteen (15) days prior thereto), and executes or authorizes the filing of any and all
financing statements and other documents that are necessary or that the Collateral Agent reasonably requests in connection therewith.
In the event Grantor changes or adds any location of Collateral, Grantor shall prepare and promptly deliver to the Collateral Agent a
revised Perfection Certificate. Grantor agrees not to effect or permit any change referred to in this Section 4.1(e) unless all filings
are promptly made under the UCC or other applicable law that are required in order for the Collateral Agent to continue at all times
following such change to have a valid, legal and perfected security interest (subject to Permitted Liens) in the Collateral for its benefit
and the benefit of the other Secured Parties.

 

(f)          Grantor agrees that it shall not have more than $1,000,000 on deposit in any deposit account, securities account or commodity account
constituting Collateral (measured by reference to the closing balance of such Account as of each Business Day) that is not subject to
an Account Control Agreement.

 

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Section
4.2           
Perfection and Protection of Security Interest.

 

(a)          Grantor
shall, at its expense, perform all steps necessary or otherwise reasonably requested by the Collateral Agent (at the direction of the
Majority Holders) at any time to perfect, maintain, protect, and enforce the Collateral Agent’s Liens, including: (i) filing and
recording of the Copyright, Patent, and Trademark Agreements, and amendments thereof in the United States Patent and Trademark Office
and the United States Copyright Office, and filing financing statements or continuation statements in the respective Filing Office; (ii) to
the extent constituting Collateral, delivering to the Collateral Agent the originals of all instruments, documents, and Chattel Paper
(in each case in excess of $500,000), and all other Collateral of which the Collateral Agent is required to have or of which it reasonably
requests to have physical possession in order to perfect and protect the Collateral Agent’s security interest therein, duly pledged,
endorsed, or assigned to the Collateral Agent as provided herein; (iii)  delivering to the Collateral Agent a duly executed amendment
to this Agreement, in the form of Exhibit B (each, an “Amendment”), pursuant to which Grantor will pledge any
additional Collateral that constitutes Commercial Tort Claims; (iv) upon the occurrence and during the continuation of an Event
of Default, delivering to the Collateral Agent (A) warehouse receipts covering any portion of the Collateral located in warehouses
and for which warehouse receipts are issued, (B)  warehouse receipts covering any portion of the Collateral located in warehouses
and for which warehouse receipts are issued and (C) if requested by the Collateral Agent, certificates of title reflecting the Collateral
Agent’s Liens covering any portion of the Collateral for which certificates of title have been issued; (v) when an Event of
Default exists, transferring Inventory constituting Collateral to warehouses or other locations designated by the Collateral Agent; (vi) upon
the occurrence and during the continuance of an Event of Default, delivering to the Collateral Agent all letters of credit constituting
Collateral on which Grantor is named beneficiary; and (vii) taking such other steps as are reasonably deemed necessary or desirable
by the Collateral Agent (acting at the direction of the Majority Holders) to maintain, protect and enforce the Collateral Agent’s
Liens. To the extent permitted by any Requirement of Law, the Collateral Agent may file, without Grantor’s signature, one or more
financing statements disclosing the Collateral Agent’s Liens. Grantor hereby authorizes the Collateral Agent to attach each Amendment
to this Agreement and agrees that all additional collateral set forth in such Amendments shall be considered to be part of the Collateral.

 

(b)          If at any time any Collateral with a Fair Market Value in excess of $1,000,000 is located at any operating facility of Grantor
that is not owned by Grantor, Grantor shall, upon request, use commercially reasonable efforts to obtain written landlord lien waivers
or subordinations, in form reasonably satisfactory to the Collateral Agent and counsel to the Purchasers, of all present and future Liens
to which the owner or lessor of such premises may be entitled to assert against such Collateral.

 

(c)          From
time to time, Grantor shall, upon the Collateral Agent’s request, execute and deliver confirmatory written instruments pledging
the Collateral to the Collateral Agent, for the benefit of the Secured Parties, but the failure to do so shall not affect or limit any
security interest or any other rights of the Secured Parties in and to the Collateral.

 

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Section
4.3            Electronic
Chattel Paper. If Grantor at any time holds or acquires an interest in any Collateral constituting Electronic Chattel Paper or any
 “transferable record”, as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, Grantor shall promptly
notify the Collateral Agent thereof and shall take such action as is necessary to vest in the Collateral Agent Control under Section
9-105 of the UCC of such Electronic Chattel Paper or control (to the extent the meaning of “control” has not been clearly
established under such provisions, “control” in this Section 4.3 shall have such meaning as the Collateral Agent shall
reasonably specify in writing after consultation with Grantor) under Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
such transferable record. The Collateral Agent agrees with Grantor that the Collateral Agent will arrange, pursuant to procedures reasonably
satisfactory to the Collateral Agent and so long as such procedures will not result in the Collateral Agent’s loss of Control or
control, as applicable, which may be established to the satisfaction of the Collateral Agent pursuant to the delivery to it by Grantor
of an Officers’ Certificate or an Opinion of Counsel, for Grantor to make alterations to the Electronic Chattel Paper or transferable
record permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and
National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in Control to allow without loss of Control
or control, as applicable, unless an Event of Default has occurred and is continuing or would occur after taking into account any action
by Grantor with respect to such Electronic Chattel Paper or transferable record.

 

Section
4.4          Maintenance
of Property. Except as otherwise permitted hereunder or pursuant to the other Indenture Documents, Grantor shall maintain all of
its property necessary or useful in the conduct of its business, in reasonable operating condition and repair, ordinary wear and tear
and obsolescence excepted.

 

Section
4.5            Investment
Property.

 

(a)          The
Collateral Agent, on behalf of the Secured Parties, shall hold certificated Investment Property Collateral in the name of Grantor, endorsed
or assigned in blank or in favor of the Collateral Agent, but following the occurrence and during the continuance of an Event of Default
shall have the right (in its sole and absolute discretion) to hold such Investment Property Collateral in its own name as pledgee, or
in the name of its nominee (as pledgee or as sub-agent). Grantor will promptly give to the Collateral Agent copies of any material notices
or other material communications received by it with respect to any Investment Property Collateral registered in the name of Grantor.
Following the occurrence and during the continuance of an Event of Default, the Collateral Agent shall at all times have the right to
exchange the certificates representing Investment Property Collateral for certificates of smaller or larger denominations for any purpose
consistent with this Agreement.

 

(b)          Unless
an Event of Default exists, (i)  Grantor shall be entitled to exercise any and all voting and other consensual rights (including,
the right to give consents, waivers, and notifications in respect of any securities) pertaining to its Investment Property Collateral
or any part thereof; provided, however, that without the prior written consent of the Collateral Agent and the Trustee
obtained in accordance with the Indenture, no vote shall be cast or consent, waiver, or ratification given or action taken that would
amend, modify, or waive any term, provision, or condition of the certificate of incorporation, bylaws, certificate of formation, or other
charter document or other agreement relating to, evidencing or providing for the issuance of or securing any such Investment Property
Collateral, in any manner that would materially impair such Investment Property Collateral, the transferability thereof, or the Collateral
Agent’s Liens therein, and (ii) Grantor shall be entitled to receive and retain any and all dividends, interest paid and other
cash distributions in respect of any of such Investment Property Collateral (unless otherwise required by the Indenture).

 

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(c)          During
the existence of an Event of Default, after delivery of notice to Grantor, (i) the Collateral Agent may exercise all voting and
corporate rights at any meeting of any corporation, partnership, or other business entity issuing any of the Investment Property Collateral
and the proceeds thereof (in cash or otherwise) held by the Collateral Agent hereunder, and any and all rights of conversion, exchange,
subscription, or any other rights, privileges, or options pertaining to any of the Investment Property Collateral as if it were the absolute
owner thereof, including, the right to exchange at its discretion any and all of the Investment Property Collateral upon the merger,
consolidation, reorganization, recapitalization, or other readjustment of any Investment Property Issuer or upon the exercise by any
such issuer or the Collateral Agent of any right, privilege, or option pertaining to any of the Investment Property Collateral, and in
connection therewith, to deposit and deliver any and all of the Investment Property Collateral with any committee, depositary, transfer
agent, registrar, or other designated agency upon such terms and conditions as it may determine, all without liability except to account
for property actually received by it, but the Collateral Agent shall have no duty to exercise any of the aforesaid rights, privileges,
or options, and the Collateral Agent shall not be responsible for any failure to do so or delay in so doing, (ii) all rights of
Grantor to exercise the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 4.5(b)
and to receive the dividends, interest, and other distributions that it would otherwise be authorized to receive and retain thereunder
shall be suspended until such Event of Default shall no longer exist or as the Collateral Agent shall otherwise specify, and all such
rights shall, until such Event of Default shall no longer exist or as the Collateral Agent shall otherwise specify, thereupon become
vested in the Collateral Agent which shall thereupon have the sole right, but no duty, to exercise such voting and other consensual rights
and to receive and hold as Investment Property Collateral such dividends, interest, and other distributions, (iii) all dividends,
interest, and other distributions which are received by Grantor contrary to the provisions of this Section 4.5(c) shall be received
in trust for the benefit of the Collateral Agent, shall be segregated from other funds of Grantor and shall be forthwith paid over to
the Collateral Agent as Collateral in the same form as so received (with any necessary endorsement), and (iv)  Grantor shall execute
and deliver (or cause to be executed and delivered) to the Collateral Agent all such proxies and other instruments as are necessary or
that the Collateral Agent may reasonably request for the purpose of enabling the Collateral Agent to exercise the voting and other rights
that it is entitled to exercise pursuant to this Section 4.5(c) and to receive the dividends, interest, and other distributions
that it is entitled to receive and retain pursuant to this Section 4.5(c). The foregoing shall not in any way limit the Collateral
Agent’s power and authority granted pursuant to Section 7.4. After all Events of Default have been cured or waived and Grantor
shall have delivered to the Collateral Agent certificates to that effect, the Collateral Agent shall promptly repay to Grantor (without
interest) all dividends or other distributions that Grantor would otherwise be permitted to retain pursuant to the terms of Section 4.5(b)
and that remain in such account.

 

(d)          Grantor
will cause or permit the Collateral Agent from time to time to cause the appropriate Investment Property Issuers (and, if held with a
securities intermediary, such securities intermediary) of uncertificated securities or other types of Investment Property Collateral
not represented by certificates to mark their books and records with the numbers and face amounts of all such uncertificated securities
or other types of Investment Property Collateral not represented by certificates and all rollovers and replacements therefor to reflect
the Lien of the Collateral Agent granted pursuant to this Agreement. Grantor will take any actions reasonably necessary to cause (i)
the Investment Property Issuers of uncertificated securities which are Investment Property Collateral, and (ii) any securities intermediary
which is the holder of any Investment Property Collateral, to cause the Collateral Agent to have and retain Control over such Investment
Property Collateral.

 

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Section
4.6            Proprietary
Rights.

 

(a)         Grantor, either directly or through any agent, employee, licensee or designee, shall inform the Collateral Agent on an annual basis
of each application for the registration of any material Proprietary Right constituting Collateral owned or licensed by Grantor or any
of its Affiliates with the United States Patent and Trademark Office and the United States Copyright Office or any similar office or agency
in any U.S. jurisdiction filed during the preceding year.

 

Section
4.7            Inventory.
Grantor shall keep its Inventory constituting Collateral (other than returned or obsolete Inventory) in good and marketable condition,
except for damaged or defective goods arising in the ordinary course of Grantor’s business.

 

Section
4.8            Commercial
Tort Claims. If Grantor shall at any time, acquire a Commercial Tort Claim constituting Collateral, the recovery from which could
reasonably be expected to exceed $1,000,000, Grantor shall promptly notify the Collateral Agent thereof in a writing, therein providing
a reasonable description and summary thereof, and upon delivery thereof to the Collateral Agent, together with an Amendment as contemplated
by Section 4.2(a)(iii), Grantor shall be deemed thereby to grant to the Collateral Agent a security interest in such Commercial Tort
Claim.

 

Section
4.9            No
Interference. Grantor agrees that it will not interfere with any right, power and remedy of the Collateral Agent provided for in
this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or with the exercise or beginning of the
exercise by the Collateral Agent of any one or more of such rights, powers or remedies.

 

Section
4.10          Insurance.

 

(a)          Grantor shall maintain with financially sound and reputable insurers insurance that is reasonably consistent with prudent industry
practice.

 

(b)         For
each of the insurance policies issued as required by this Section 4.10 with respect to Collateral, Grantor shall cause the Collateral
Agent, for the benefit of the Secured Parties, to be named as an additional insured with respect to insurance policies for general liability
for bodily injury and a lender loss payee for insurance policies for property damage. Certificates of insurance of such policies shall
be delivered to the Collateral Agent and shall be in form reasonably satisfactory to the Majority Holders.

 

(c)         Grantor
shall promptly provide written notice to the Collateral Agent of any loss, damage, or destruction to the Collateral in excess of (A)
$2,500,000 if covered by insurance or (B) $1,000,000 if not covered by insurance. During the existence of an Event of Default, the
Collateral Agent is hereby authorized to directly collect all insurance proceeds in respect of Collateral and to apply such proceeds
in accordance with Section 5.3.

 

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(d)         Unless
Grantor provides the Collateral Agent with evidence of the insurance coverage on the Collateral required by this Section 4.10, the Collateral
Agent may (but shall not be obligated to), upon sixty (60) days’ prior notice, purchase insurance at Grantor’s expense to
protect the Collateral Agent’s Lien on such Collateral. This insurance may, but need not, protect the interests of Grantor. The
coverage that the Collateral Agent purchases may (but shall not be required to) pay any claim that Grantor makes or any claim that is
made against Grantor in connection with said Collateral. Grantor may later cancel any insurance purchased by the Collateral Agent but
only after providing the Collateral Agent and the Holders with evidence that Grantor has obtained insurance as required by this Agreement.
If the Collateral Agent purchases such insurance, Grantor will be responsible for the costs of that insurance, including interest and
any other reasonable charges the Collateral Agent may impose in connection with the placement of insurance, until the effective date
of the cancellation or expiration of the insurance. The costs of the insurance shall be added to the Obligations. The costs of the insurance
may be more than the cost of insurance that Grantor may be able to obtain on their own.

 

Section
4.11         Condemnation.
Grantor shall, promptly upon learning of the institution of any proceeding for the condemnation or other taking of any of its property
with a Fair Market Value in excess of $1,000,000, notify the Collateral Agent of the pendency of such proceeding.

 

Section
4.12          Further
Assurances.

 

(a)         Grantor
shall, at its own cost and expense, execute and deliver, or cause to be executed and delivered, to the Collateral Agent and/or the Trustee
such documents and agreements, and shall take or cause to be taken such actions, as are necessary or that the Collateral Agent and/or
the Trustee may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Indenture
Documents. In addition, from time to time, Grantor will, at its cost and expense, promptly secure the Obligations by pledging or creating,
or causing to be pledged or created, perfected Liens with respect to such of its assets and properties (other than Excluded Assets) as
the Collateral Agent or the Trustee may designate. Upon the acquisition by Grantor of any After-Acquired Property (but subject to the
limitations, if applicable, set forth herein or in the Indenture), Grantor shall execute and deliver such security instruments, mortgages
(or the like), financing statements (or amendments to existing Security Documents and financing statements) and Officers’ Certificates
and Opinions of Counsel as shall be reasonably necessary to vest in the Collateral Agent a perfected Lien in such After-Acquired Property
and to have such After-Acquired Property added to the Collateral and shall promptly deliver such Officers’ Certificates and Opinions
of Counsel as are customary in secured financing transactions in the relevant jurisdictions or as are reasonably requested by the Trustee
or the Collateral Agent (subject to customary assumptions, exceptions and qualifications), and thereupon all provisions of this Agreement
relating to the Collateral, shall be deemed to relate to such After-Acquired Property to the same extent and with the same force and
effect. If any property or asset of the Issuer or any other Grantor originally deemed to be an Excluded Asset at any point ceases to
be an Excluded Asset pursuant to such defined term, all or the applicable portion of such property or asset shall be deemed to be After-Acquired
Property and shall be added to Collateral in accordance with the Indenture and this Agreement. Subject to Section 4.13 of the Indenture,
such Liens will be created under security agreements, mortgages (or the like) and other instruments and documents in form reasonably
satisfactory to the Collateral Agent, and Grantor shall deliver or cause to be delivered to the Collateral Agent and the Trustee all
such instruments and documents (including Opinions of Counsel, Officers’ Certificates, title insurance policies and lien searches)
as are necessary or that the Collateral Agent shall reasonably request to evidence compliance with this Section 4.12(a). Grantor shall
furnish to the Collateral Agent each year at the time of delivery of the annual report required to be delivered by the Issuer pursuant
to Section 4.02(a) of the Indenture, an Officer’s Certificate setting forth the information required pursuant to the Perfection
Certificate or confirming that there has been no change in such information since the Effective Date or the date of the most recent certificate
delivered pursuant to Section 4.1(e) or this Section 4.12(a).

 

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Section
4.13         Post-Closing
Obligations. Grantor shall deliver the documents and take the actions specified on Schedule 4.13 as promptly as practicable following
the date of this Agreement, but in any event no later than the times prescribed therein.

 

Article
V

REMEDIES

 

Section
5.1           
Remedies.

 

(a)          If
an Event of Default has occurred and is continuing:

 

(i)          the
Collateral Agent may exercise those rights and remedies provided in this Agreement, the Indenture or any other Indenture Document; provided
that this Section 5.1(a) shall not be understood to limit any rights available to the Collateral Agent, the Trustee, the Holders
of the Securities or any other Secured Party prior to an Event of Default;

 

(ii)         the Collateral Agent shall have, for the benefit of the Secured Parties, in addition to all other rights of the Collateral Agent
and the Trustee, the rights and remedies of a secured party under the UCC (whether or not the UCC applies to the affected Collateral)
or under any other applicable law when a debtor is in default under a security agreement;

 

(iii)        the
Collateral Agent may, at any time, take possession of the Collateral and keep it on any of Grantor’s premises, at no cost to the
Collateral Agent, the Trustee or any other Secured Party, or remove any part of it to such other place or places as the Collateral Agent
may desire, or Grantor shall, upon the Collateral Agent’s demand, at Grantor’s cost, assemble the Collateral and make it
available to the Collateral Agent at a place reasonably convenient to the Collateral Agent;

 

(iv)        the Collateral Agent may sell and deliver any Collateral at public or private sales, for cash, upon credit, or otherwise, at such
prices and upon such terms as the Collateral Agent deems advisable, in its sole discretion, and may, if the Collateral Agent deems it
reasonable, postpone or adjourn any sale of the Collateral by an announcement at the time and place of sale or of such postponed or adjourned
sale without giving a new notice of sale; provided that, in connection with any such sale of Collateral, the Collateral Agent shall use
its reasonable commercial efforts to maintain the confidentiality of any proprietary information of Grantor (consistent with the confidentiality
obligations of the Holders of the Securities as required by the Indenture Documents).

 

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(v)         the
Collateral Agent may give notice of sole control or any other instruction under any Account Control Agreement and take any action provided
therein with respect to the applicable Collateral;

 

(vi)        the
Collateral Agent may, concurrently with or following written notice to Grantor, transfer and register in its name or in the name of its
nominee the whole or any part of the Investment Property Collateral, exchange certificates or instruments representing or evidencing
Investment Property Collateral for certificates or instruments of smaller or larger denominations, exercise the voting and all other
rights as a holder with respect thereto, collect and receive all cash dividends, interest, principal and other distributions made thereon
and otherwise act with respect to the Investment Property Collateral as though the Collateral Agent was the outright owner thereof.

 

(b)          Without
in any way requiring notice to be given in the following manner, Grantor agrees that any notice by the Collateral Agent of a sale, disposition,
or other intended action hereunder or in connection herewith, whether required by the UCC or otherwise, shall constitute reasonable notice
to Grantor if such notice is mailed by registered or certified mail, return receipt requested, postage prepaid, or is delivered personally
against receipt, at least five (5) Business Days prior to such action to Grantor’s address specified in or pursuant to Section
8.1.

 

(c)          If any Collateral is sold on terms other than payment in full at the time of sale, no credit shall be given against the Obligations
until the Collateral Agent receives payment, and if the buyer defaults in payment, the Collateral Agent may resell the Collateral without
further notice to Grantor.

 

(d)         In the event the Collateral Agent seeks to take possession of all or any portion of the Collateral by judicial process, Grantor
irrevocably waives: (i) the posting of any bond, surety, or security with respect thereto that might otherwise be required; (ii) any demand
for possession prior to the commencement of any suit or action to recover the Collateral; and (iii) any requirement that the Collateral
Agent retain possession and not dispose of any Collateral until after trial or final judgment.

 

(e)          If
an Event of Default occurs and is continuing, Grantor hereby waives all rights to a hearing prior to the exercise by the Collateral Agent
of the Collateral Agent’s rights to repossess the Collateral without judicial process or to replevy, attach, or levy upon the Collateral.

 

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(f)          Grantor acknowledges and agrees that the Collateral Agent has no obligation to preserve rights to the Collateral or marshal any
Collateral for the benefit of any Person.

 

(g)         Grantor
acknowledges and agrees that the compliance by the Collateral Agent, on behalf of the Secured Parties, with any applicable state or federal
law requirements may be required in connection with a disposition of the Collateral and such compliance will not be considered to adversely
affect the commercial reasonableness of any sale of the Collateral.

 

(h)         The
Collateral Agent shall have the right upon any public sale or sales and, to the extent permitted by law, upon any private sale or sales,
to purchase for the benefit of the Collateral Agent and the other Secured Parties, the whole or any part of the Collateral so sold, free
of any right of equity redemption, which equity redemption Grantor hereby expressly releases.

 

(i)           Until
the Collateral Agent is able to effect a sale, lease, transfer or other disposition of Collateral, the Collateral Agent shall have the
right, but no duty or obligation, to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose
of preserving Collateral or the value of the Collateral, or for any other purpose deemed appropriate by the Collateral Agent. The Collateral
Agent may, if it so elects, but shall have no obligation to, seek the appointment of a receiver or keeper to take possession of Collateral
and to enforce any of the Collateral Agent’s remedies (for the benefit of the Collateral Agent and Secured Parties), with respect
to such appointment without prior notice or hearing as to such appointment.

 

(j)           Grantor
recognizes that the Collateral Agent may be unable to effect a public sale of any or all of the Collateral consisting of securities to
be sold by reason of certain prohibitions contained in the laws of any jurisdiction outside the United States or in applicable federal
or state securities laws but may be compelled to resort to one or more private sales thereof to a restricted group of purchasers who
will be obliged to agree, among other things, to acquire such Collateral or other property to be sold for their own account for investment
and not with a view to the distribution or resale thereof. Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that
any such private sale shall, to the extent permitted by law, be deemed to have been made in a commercially reasonable manner. Unless
required by a Requirement of Law, the Collateral Agent shall not be under any obligation to delay a sale of any of the Collateral or
other property to be sold for the period of time necessary to permit the issuer of any relevant securities to register such securities
under the laws of any jurisdiction outside the United States or under any applicable federal or state securities laws, even if such issuer
would agree to do so. Grantor further agrees to do or cause to be done, at its own cost and expense, to the extent that Grantor may do
so under Requirements of Law, all such other acts and things as may be necessary to make such sales or resales of any portion or all
of the Collateral or other property to be sold valid and binding and in compliance with any and all Requirements of Law at Grantor’s
expense.

 

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(k)              
 Any remedy or enforcement action to be taken hereunder by the Collateral Agent with respect to the Collateral shall be at the
written direction of the Trustee (acting pursuant to the direction of the Majority Holders pursuant to the Indenture).

 

Section
5.2           
Grant of Intellectual Property License. Effective only upon the occurrence and during the continuance of an Event
of Default, for the purpose of enabling the Collateral Agent to exercise the rights and remedies under this Article V at such time
as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, Grantor hereby grants to the Collateral Agent
a non-exclusive license or other right to use, without charge, Grantor’s labels, patents, copyrights, name, trade secrets, trade
names, trademarks, and advertising matter, or any similar property, to the extent constituting Collateral in completing production of,
advertising or selling any Collateral, and, subject to the rights of any licensor or franchisor under such agreements and to the extent
not in violation of such agreements, Grantor’s rights under all licenses and all franchise agreements shall inure to the Collateral
Agent’s benefit for such purpose.

 

Section
5.3           
Application of Proceeds. The Collateral Agent shall apply the proceeds of any collection, sale, foreclosure or other
realization upon any Collateral, as well as any Collateral consisting of cash, as follows:

 

FIRST, to the payment of all
actual, reasonable and documented costs and expenses incurred by the Collateral Agent (in its capacity as such hereunder or under the
Indenture or any other Indenture Document) and the Trustee in connection with such collection, sale, foreclosure or realization or reasonable
costs, expenses, claims or liabilities of the Collateral Agent or the Trustee otherwise relating to or arising in connection with this
Agreement, the Indenture or any other Indenture Document or any of the Obligations, including all court costs and the reasonable fees
and expenses of its agents and legal counsel, the repayment of all advances made by the Collateral Agent or the Trustee hereunder or under
the Indenture or any other Indenture Document on behalf of Grantor, any other reasonable costs or expenses incurred by the Collateral
Agent or the Trustee in connection with the exercise of any remedy hereunder or under the Indenture or any other Indenture Document, and
any indemnification of the Collateral Agent and the Trustee required by the terms hereunder, under the Indenture or any other Indenture
Document;

 

SECOND, to the Trustee for distribution
in accordance with the priorities set forth in Section 6.10 of the Indenture.

 

Except as otherwise provided
herein, the Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in
accordance with this Agreement. Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale granted by
statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient discharge
to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application
of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication
thereof.

 

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Article
VI

CONCERNING THE COLLATERAL AGENT

 

Section
6.1           
Reliance by Collateral Agent; Indemnity Against Liabilities, etc.

 

(a)              
Whenever in the performance of its duties under this Agreement or any other Indenture Document, the Collateral Agent shall deem
it necessary or desirable that a matter be proved or established with respect to Grantor or any other Person in connection with the taking,
suffering or omitting of any action hereunder by the Collateral Agent, such matter may be conclusively deemed to be proved or established
by a certificate executed by an Officer of such Person, including an Officers’ Certificate or an Opinion of Counsel, and the Collateral
Agent shall have no liability with respect to any action taken, suffered or omitted in reliance thereon. The Collateral Agent may at any
time solicit written confirmatory instructions, including a direction of the Trustee or Grantor or an order of a court of competent jurisdiction
as to any action that it may be requested or required to take or that it may propose to take in the performance of any of its obligations
under this Agreement or any other Indenture Document and shall be fully justified in failing or refusing to act hereunder or under any
other Indenture Document until it shall have received such requisite instruction.

 

(b)              
The Collateral Agent shall be fully protected in relying upon any note, writing, affidavit, electronic communication, fax, resolution,
statement, certificate, instrument, opinion, report, notice (including any notice of an Event of Default or of the cure or waiver thereof),
request, consent, order or other paper or document or oral conversation (including, telephone conversations) that it in good faith believes
to be genuine and correct and to have been signed, presented or made by the proper party. The Collateral Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon any notice, certificate or opinion furnished
to the Collateral Agent in connection with this Agreement or any other Indenture Document and upon advice and statements of legal counsel
(including counsel to Grantor, independent accountants and other agents consulted by the Collateral Agent).

 

Section
6.2           
Exercise of Remedies. The remedies of the Collateral Agent hereunder and under the other Security Documents shall
include the disposition of the Collateral by foreclosure or other sale and the exercising of all remedies of a secured lender under the
UCC, bankruptcy laws or similar laws of any applicable jurisdiction.

 

Section
6.3           Authorized
Investments. Any and all funds held by the Collateral Agent in its capacity as Collateral Agent, whether pursuant to any provision
hereof or of any other Security Document or otherwise, shall, to the extent reasonably practicable following receipt by the Collateral
Agent from Grantor of specific written instructions in form and substance reasonably satisfactory to the Collateral Agent delivered to
the Collateral Agent at least three (3) Business Days prior to the proposed investment, be invested by the Collateral Agent within a
reasonable time in the Cash Equivalents identified in such written instructions. Any interest earned on such funds shall be disbursed
(i) during an Event of Default, in accordance with Section 5.3 and (ii) at all other times, as Grantor shall direct. To the extent
that the interest rate payable with respect to any such account varies over time, the Collateral Agent may use an average interest rate
in making the interest allocations among the respective Secured Parties. In the absence of gross negligence or willful misconduct as
determined by a final non-appealable order of a court of competent jurisdiction, the Collateral Agent shall not be responsible for any
investment losses in respect of any funds invested in accordance with this Section 6.3. The Collateral Agent shall have no duty or obligation
regarding the reinvestment of any such funds in the absence of updated written instructions from Grantor in form and substance reasonably
satisfactory to the Collateral Agent.

 

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Section
6.4           
Bankruptcy Proceedings. The following provisions shall apply during any Bankruptcy Proceeding of Grantor:

 

(a)              
The Collateral Agent shall represent all Secured Parties in connection with all matters directly relating to the Collateral, including,
any use, sale or lease of Collateral, use of cash collateral, request for relief from the automatic stay and request for adequate protection.

 

(b)              
Each Secured Party shall be free to act independently on any issue not affecting the Collateral. Each Secured Party shall give
prior notice to the Collateral Agent of any such action that could materially affect the rights or interests of the Collateral Agent or
the other Secured Parties to the extent that such notice is reasonably practicable. If such prior notice is not given, such Secured Party
shall give prompt notice following any action taken hereunder.

 

(c)              
Any proceeds of the Collateral received by any Secured Party as a result of, or during, any Bankruptcy Proceeding will be delivered
promptly to the Collateral Agent for distribution in accordance with Section 5.3.

 

Article
VII

COLLATERAL AGENT AND TRUSTEE RIGHTS, DUTIES AND

LIABILITIES; ATTORNEY IN FACT; PROXY

 

Section
7.1           
The Collateral Agent’s and the Trustee’s Rights, Duties, and Liabilities.

 

(a)              
Grantor assumes all responsibility and liability arising from or relating to the use, maintenance, storage, sale, collection, foreclosure,
realization on, conveyance or other disposition of or involving the Collateral. The Obligations shall not be affected by any failure of
Grantor, the Collateral Agent or the Trustee to take any steps to perfect the Collateral Agent’s Liens or to collect or realize
upon the Collateral, nor shall loss of or damage to the Collateral release Grantor from any of the Obligations. Following the occurrence
and during the continuation of an Event of Default, the Collateral Agent may (but shall not be required to), and at the direction of the
Trustee (acting in accordance with the instructions of the Majority Holders pursuant to the Indenture) shall, subject to the terms of
the Indenture, without notice to or consent from Grantor sue upon or otherwise collect, extend the time for payment of, modify or amend
the terms of, compromise or settle for cash, credit or otherwise upon any terms, grant other indulgences, extensions, renewals, compositions
or releases, and take or omit to take any other action with respect to the Collateral, any security therefor, any agreement relating thereto,
any insurance applicable thereto, or any Person liable directly or indirectly in connection with any of the foregoing, without discharging
or otherwise affecting the liability of Grantor for the Obligations or under the Indenture, any other Indenture Document or any other
agreement now or hereafter existing between any Secured Party and Grantor.

 

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(b)              
 It is expressly agreed by Grantor that, anything herein to the contrary notwithstanding, Grantor shall remain liable under each
of its contracts and each of its licenses to observe and perform all the conditions and obligations to be observed and performed by it
thereunder. Neither the Collateral Agent nor the Trustee shall have any obligation or liability under any contract or license by reason
of or arising out of this Agreement or the granting herein of a Lien thereon or the receipt by the Collateral Agent or the Trustee of
any payment relating to any contract or license pursuant hereto that is applied as required herein. Neither the Collateral Agent nor the
Trustee shall be required or obligated in any manner to perform or fulfill any of the obligations of Grantor under or pursuant to any
contract or license, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it
or the sufficiency of any performance by any party under any contract or license, or to present or file any claims, or to take any action
to collect or enforce any performance or the payment of any amounts that may have been assigned to it or to which it may be entitled at
any time or times.

 

Section
7.2           
Right to Cure. The Collateral Agent may (but shall not be required to) in its reasonable discretion pay any reasonable
amount or do any reasonable act required of Grantor hereunder or under any other Indenture Document in order to preserve, protect, maintain
or enforce the Obligations, the Collateral or the Collateral Agent’s Liens therein, and which Grantor fails to timely pay or do,
including payment of any judgment against Grantor, insurance premium, any warehouse charge, any finishing or processing charge, any landlord’s
or bailee’s claim, and any other Lien upon or with respect to the Collateral. All payments that the Collateral Agent makes under
this Section 7.2 and all actual, reasonable and documented out-of-pocket costs and expenses that the Collateral Agent pays
or incurs in connection with any action taken by it hereunder shall be promptly reimbursed by Grantor. Any payment made or other action
taken by the Collateral Agent under this Section 7.2 shall be without prejudice to any right to assert an Event of Default hereunder
and to proceed thereafter as herein provided.

 

Section
7.3           
Confidentiality.

 

(a)              
The Collateral Agent, accompanied by the Trustee if the Trustee so elects, may upon reasonable advance notice and at reasonable
times during regular business hours, and at any time when an Event of Default exists, have access to, examine, audit, make extracts from
or copies of, and inspect any or all of Grantor’s records, files and books of account and the Collateral, and discuss Grantor’s
affairs with Grantor’s officers and senior management. In furtherance of the foregoing, Grantor will deliver to the Collateral Agent
any instrument reasonably necessary for the Collateral Agent to obtain records from any service bureau maintaining records for Grantor.
The Collateral Agent may, and at the direction of the Trustee shall, at any time when an Event of Default exists, and at Grantor’s
expense, make copies of all of Grantor’s books and records, or require Grantor to deliver such copies to the Collateral Agent. Upon
reasonable request to senior management of Grantor, the Collateral Agent may, without expense to the Collateral Agent, use such of Grantor’s
personnel, supplies and premises as may be reasonably necessary for maintaining or enforcing the Collateral Agent’s Liens. The Collateral
Agent shall have the right (but not the obligation), upon the occurrence and during the continuance of an Event of Default, in the Collateral
Agent’s name or in the name of a nominee of the Collateral Agent, to verify the validity, amount or any other matter relating to
the Collateral by mail, telephone or otherwise.

 

    25

     

    

 

(b)              
 The Collateral Agent, in its individual capacity and as Collateral Agent, and the Trustee, in its individual capacity and as Trustee,
agree and acknowledge that all information provided to the Collateral Agent or the Trustee by Grantor may be considered to be proprietary
and confidential information (“Confidential Information”). Each of the Trustee and the Collateral Agent agrees to take
all reasonable precautions necessary to keep such information confidential, which precautions shall be no less stringent than those that
the Collateral Agent and the Trustee, as applicable, employs to protect its own confidential information. Each of the Collateral Agent
and the Trustee shall not disclose to any third party other than as set forth herein, and shall not use for any purpose other than the
exercise of the Collateral Agent’s and the Trustee’s rights and the performance of its respective obligations under this Agreement,
any such information without the prior written consent of Grantor, as applicable. Each of the Collateral Agent and the Trustee shall limit
access to such information received hereunder to (a) its directors, officers, managers and employees and (b) its legal advisors, to each
of whom disclosure of such information is necessary for the purposes described above; provided, however, that in each case such
party has expressly agreed to maintain such information in confidence under terms and conditions substantially identical to the terms
of this Section 7.3(b).

 

(c)              
Each of the Collateral Agent and the Trustee agree that, unless otherwise provided hereunder or under the Indenture, Grantor does
not have any responsibility whatsoever for any reliance on Confidential Information by the Collateral Agent or the Trustee or by any Person
to whom such information is disclosed in connection with this Agreement, whether related to the purposes described above or otherwise.
Without limiting the generality of the foregoing, each of the Collateral Agent and the Trustee agrees that Grantor makes no representation
or warranty whatsoever to it with respect to Confidential Information or its suitability for such purposes. Each of the Collateral Agent
and the Trustee further agrees that it shall not acquire any rights against Grantor or any employee, officer, director, manager, representative
or agent of Grantor (collectively, “Confidential Parties”) as a result of the disclosure of Confidential Information
to the Trustee and that no Confidential Party has any duty, responsibility, liability or obligation to any Person as a result of any such
disclosure.

 

(d)              
In the event the Collateral Agent or the Trustee is required to disclose any Confidential Information received hereunder in order
to comply with any laws, regulations or court orders, it may disclose Confidential Information only to the extent necessary for such compliance;
provided, however, that it shall give Grantor reasonable advance written notice of any such court proceeding in which such disclosure
may be required pursuant to a court order so as to afford Grantor full and fair opportunity to oppose the issuance of such order and to
appeal therefrom and shall cooperate reasonably with Grantor, as applicable, in opposing such order and in securing confidential treatment
of any Confidential Information to be disclosed and/or obtaining a protective order narrowing the scope of such disclosure.

 

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Section
7.4            Power
of Attorney. Grantor, as to itself, hereby appoints the Collateral Agent and the Collateral Agent’s designee as
Grantor’s attorney, with power upon the occurrence and during the continuance of an Event of Default: (a) to endorse
Grantor’s name on any checks, notes, acceptances, money orders, or other forms of payment or security relating to any
Collateral that come into the Collateral Agent’s or any other Secured Parties’ possession; (b) to sign Grantor’s
name on any invoice, bill of lading, warehouse receipt, or other document of title relating to any Collateral, on drafts against
customers, on assignments of Accounts, on notices of assignment, financing statements, and other public records and to file any such
financing statements by electronic means with or without a signature as authorized or required by applicable law or filing
procedure; (c) to send requests for verification of Accounts to customers or Account Debtors, in each case relating to any
Collateral; (d) to clear Inventory relating to any Collateral through customs in Grantor’s name, the Collateral
Agent’s name, or the name of the Collateral Agent’s designee, and to sign and deliver to customs officials powers of
attorney in Grantor’s name for such purpose; and (e) to do all things the Collateral Agent reasonably determines are necessary
to carry out the security interest provisions of the Indenture and the provisions of this Agreement. Grantor ratifies and approves
all acts of such attorney. Notwithstanding anything in this Agreement or any other Indenture Document to the contrary, none of the
Trustee, the Collateral Agent, or their attorneys, employees or Affiliates will be liable for any acts or omissions or for any error
of judgment or mistake of fact or law other than any such liability arising from any such Person’s gross negligence or willful
misconduct, as finally determined by a court of competent jurisdiction.

 

Section
7.5          Proxy.
CONSISTENT WITH AND SUBJECT TO THE LIMITATIONS IN SECTION 4.5(b), GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE COLLATERAL
AGENT AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 7.4) WITH RESPECT TO THE INVESTMENT PROPERTY COLLATERAL, INCLUDING
THE RIGHT TO VOTE SUCH INVESTMENT PROPERTY, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH INVESTMENT
PROPERTY, THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS,
POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH INVESTMENT PROPERTY WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN
CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUBJECT TO SECTION 4.5(b), SUCH PROXY
SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH INVESTMENT PROPERTY ON
THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE INVESTMENT PROPERTY ISSUER OR ANY OFFICER OR AGENT THEREOF), UPON
THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT.

 

Section
7.6           Nature
of Appointment; Limitation of Duty. THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS
ARTICLE VII IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS AGREEMENT IS TERMINATED IN
ACCORDANCE WITH SECTION 8.12. NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT OR IN ANY OTHER INDENTURE DOCUMENT, NONE OF
THE COLLATERAL AGENT, ANY OTHER SECURED PARTY OR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR
REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL
NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT TO THE EXTENT SUCH DAMAGES ARE ATTRIBUTABLE TO THEIR OWN
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT IN NO EVENT SHALL
THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

 

    27

     

    

 

Section
7.7           
Additional Matters Relating to the Collateral Agent.

 

(a)              
U.S. Bank National Association shall initially act as Collateral Agent for the Secured Parties and shall be authorized to appoint
co-collateral agents as necessary in its sole discretion. U.S. Bank National Association, as Collateral Agent, is authorized and directed
to (i) enter into the Indenture Documents, (ii) bind the Secured Parties on the terms as set forth in the Indenture Documents and (iii)
perform and observe its obligations under the Indenture Documents.

 

(b)              
The rights, duties, liabilities and immunities of the Collateral Agent and its appointment, resignation and replacement hereunder
and under the Indenture and the other Indenture Documents shall be governed by this Agreement, Article 11 of the Indenture and the relevant
provisions contained in the other Indenture Documents. Without limiting the foregoing, the rights, privileges, protections and benefits
given to the Collateral Agent under the Indenture are extended to, and shall be enforceable by, the Collateral Agent in connection with
the execution, delivery and administration of this Agreement and the other Indenture Documents and any action taken or omitted to be taken
by the Collateral Agent in connection with its appointment and performance under this Agreement and the other Indenture Documents to which
it is a party.

 

(c)              
The Collateral Agent undertakes to perform or to observe only such of its agreements and obligations as are specifically set forth
in this Agreement, the Indenture and the other Indenture Documents, and no implied agreements, covenants or obligations with respect to
Grantor or any Affiliate of Grantor, any Secured Party or any other party shall be read into this Agreement against the Collateral Agent.
The Collateral Agent in its capacity as such is not a fiduciary of and shall not owe or be deemed to owe any fiduciary duty to Grantor
or any Related Person of Grantor.

 

(d)               None
of the Collateral Agent, the Trustee or any of their respective officers, directors, employees, agents, attorneys-in-fact or Related
Persons shall be responsible or liable in any manner (i) to Grantor or any of its Related Persons for any action taken or omitted to
be taken by it under or in connection with this Agreement in compliance herewith, (i) to any Secured Party or any other Person for
any recitals, statements, representations, warranties, covenants or agreements contained in this Agreement or in any other Indenture
Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Collateral
Agent under or in connection with, this Agreement or any other Indenture Document, (iii) to any Secured Party or any other Person
for the validity, effectiveness, adequacy, genuineness or enforceability of this Agreement or any other Indenture Document, or any
Lien purported to be created hereunder or under any other Indenture Document, (iv) to any Secured Party or any other Person for the
validity or sufficiency of the Collateral or the validity of the title of Grantor to the Collateral, for insuring the Collateral or
for the payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral or
(v) to any Secured Party or other Person for any failure of Grantor to perform its obligations hereunder or to perform any of the
Obligations.

 

    28

     

    

 

(e)              
Notwithstanding anything to the contrary contained in this Agreement, (i) in no event shall the Trustee or the Collateral Agent
be responsible for or have any obligation, duty or liability with respect to the creation, perfection, priority, maintenance, protection
or enforcement of any Lien on, security interest in, pledge or other encumbrance involving or relating to the Collateral or any other
assets, properties or rights of Grantor, (ii) neither the Trustee nor the Collateral Agent shall be responsible for filing any financing
or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting
or maintaining the perfection of any Liens in the Collateral and (iii) neither the Trustee nor the Collateral Agent shall be under any
obligation to any Person to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions
of, this Agreement or to inspect the properties or records of Grantor. The permissive rights of the Collateral Agent to do things enumerated
in this Agreement shall not be construed as a duty or obligation. The Collateral Agent may rely conclusively on any Opinions of Counsel
rendered to the Collateral Agent under the Indenture in determining any necessary or desirable actions under this Agreement. Notwithstanding
anything to the contrary herein, the Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation
of the Collateral in its possession, under the UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals
with similar property for its own account and the Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which comparable
secured parties accord comparable collateral. Neither the Collateral Agent nor the Trustee shall be liable for failure to demand, collect
or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any
part thereof.

 

(f)               
Notwithstanding anything to the contrary contained herein, none of the Collateral Agent, the Trustee or any of their respective
officers, directors, employees, agents, attorneys-in-fact or Related Persons shall be exonerated from any liability arising from its or
their own gross negligence or willful misconduct, as finally determined by a court of competent jurisdiction.

 

(g)               Grantor
agrees that it shall upon demand pay to the Collateral Agent and any other Secured Party the amount of any and all actual,
reasonable and documented out-of-pocket fees, costs and expenses (including the reasonable out-of-pocket fees and expenses of their
respective counsel, any special consultants reasonably engaged (and, unless an Event of Default exists, engaged with the prior
written consent of Grantor) and any local counsel who might reasonably be retained by the Collateral Agent or any other Secured
Party, as the case may be, in connection with the transactions contemplated hereby) that the Collateral Agent or any other Secured
Party, as the case may be, may incur in connection with (i) any Event of Default, including the sale, lease, license or other
disposition of, collection from, or other realization upon, any of the Collateral pursuant to the exercise or enforcement of any of
their respective rights hereunder, (ii) the exercise of their respective rights under this Agreement or under any other Indenture
Document, including the custody, preservation, use or operation of, or the sale of, any of the Collateral, (iii) performance by the
Collateral Agent of any obligations of Grantor that Grantor has failed or refused to perform with respect to the Collateral, (iv)
bankruptcy, insolvency, receivership, foreclosure, winding up or liquidation proceedings and defending or asserting rights and
claims of the Collateral Agent in respect thereof, by litigation or otherwise, including expenses of insurance, or (v) the execution
and delivery and administration of this Agreement and the other Indenture Documents and, any agreement supplemental hereto or
thereto, and any instruments of amendment, waiver, further assurance, release or termination, including with respect to the
termination and/or release of any or all of the Liens in the Collateral provided for in this Agreement and the other Security
Documents.

 

    29

     

    

 

(h)              
Grantor shall pay on demand all filing, registration and recording fees or re-filing, re-registration and re-recording fees, and
all federal, state, county and municipal stamp taxes and other similar taxes, duties, imposts, assessments and charges arising out of
or in connection with the execution and delivery of this Agreement, the Indenture, the other Indenture Documents and any agreement supplemental
hereto or thereto and any instruments of further assurance or termination.

 

(i)                
Except for action expressly provided for herein and in the other Indenture Documents, the Collateral Agent shall be under no obligation
to exercise any of the rights or powers vested in it by this Agreement or any other Indenture Document at the request, order or direction
of any Secured Party pursuant to the provisions of the Indenture or any other Indenture Document, unless such Secured Party shall have
offered to the Collateral Agent security or indemnity satisfactory to the Collateral Agent against the costs, expenses and liabilities
that may be incurred by it in compliance with such request, order or direction.

 

(j)                
In no event shall the Collateral Agent or any Secured Party be liable or responsible for any funds or investments of funds held
by Grantor or any Affiliates thereof.

 

Section
7.8           
Appointment of Co-Collateral Agent. In the event that the Collateral Agent appoints a Co-Collateral Agent or Co-Collateral
Agents in accordance with Section 7.7(a), such Co-Collateral Agent(s) shall enter into an appointment agreement in a form satisfactory
to the Collateral Agent and such Co-Collateral Agent, and upon acceptance of the appointment, such Co-Collateral Agent shall be entitled
to all of the rights, privileges, limitations on liability and immunities afforded to and subject to all the duties of the Collateral
Agent hereunder, and shall be deemed to be a party to this Agreement for all purposes provided in this Section 7.8, in each case, subject
to the specific rights and duties vested in the Co-Collateral Agent pursuant to such appointment agreement and related Security Documents.
It is accepted and acknowledged by the parties hereto that any Co-Collateral Agent appointed in accordance with Section 7.7(a) and this
Section 7.8 shall be entitled to the payment of its fees and expenses as agreed to by Grantor, and without limitation of any of the other
provisions of this Agreement, shall be deemed to be an indemnified party under Section 8.16 with respect to any liability arising under
this Agreement or the other Indenture Documents without need for further act by Grantor.

 

Section
7.9            Instructions
under Account Control Agreement. Each of the Trustee and the Collateral Agent, whichsoever is a party to any Account Control
Agreement, agrees not to issue a notice of exclusive control or any other instruction under such Account Control Agreement unless an
Event of Default has occurred and is continuing.

 

    30

     

    

 

Article
VIII

GENERAL PROVISIONS

 

Section
8.1           
Notices. All notices and other communications provided for herein shall be in writing and shall be delivered by hand
or overnight courier service, mailed by certified or registered mail or sent by fax, as follows:

 

		(a)	if to the Collateral Agent, to it at:

 

U.S. Bank National
Association

Corporate Trust Services

One Federal Street,
3rd Floor

Boston, Massachusetts
02110

Attention: Alison
D.B. Nadeau (Scilex 2018 Indenture)

Facsimile: (617)
603-6683

 

		(b)	if to the Trustee, to it at:

 

U.S. Bank National
Association

Corporate Trust Services

One Federal Street,
3rd Floor

Boston, Massachusetts
02110

Attention: Alison
D.B. Nadeau (Scilex 2018 Indenture)

Facsimile: (617)
603-6683

 

		(c)	if to Grantor, to it at:

 

27201 Puerta Real, Suite 235

Mission Viejo, CA 92691

Attention: Chief Executive Officer

 

Any party hereto may change
its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given
on the date of receipt if delivered by hand or overnight courier service or sent by facsimile or on the date five (5) Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided
in this Section 8.1 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 8.1.
Notwithstanding the foregoing, notices to the Collateral Agent shall only be effective upon actual receipt.

 

    31

     

    

 

Section
8.2           
Waiver of Notices. Unless otherwise expressly provided herein, Grantor hereby waives presentment, demand, protest
or notice (to the maximum extent permitted by applicable law) of any kind in connection with this Agreement or any Collateral.

 

Section
8.3           
Limitation on Collateral Agent’s and Other Secured Parties’ Duty with Respect to the Collateral. The
Collateral Agent shall have no obligation to clean up or otherwise prepare the Collateral for sale. The Collateral Agent and each other
Secured Party shall use reasonable care with respect to the Collateral in its possession or under its control. Neither the Collateral
Agent nor any other Secured Party shall have any other duty as to any Collateral in its possession or control or in the possession or
control of any agent or nominee of the Collateral Agent or such other Secured Party, or any income thereon (other than to account for
proceeds therefrom) or as to the preservation of rights against prior parties or any other rights pertaining thereto. To the extent that
applicable law imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner, and to the extent permitted
by applicable law, Grantor acknowledges and agrees that it would be commercially reasonable for the Collateral Agent (a) to fail
to incur expenses deemed significant by the Collateral Agent to prepare Collateral for disposition or otherwise to transform raw material
or work in process into finished goods or other finished products for disposition, (b) to fail to obtain third party consents for
access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents
for the collection or disposition of Collateral to be collected or disposed of, (c) to fail to exercise collection remedies against
Account Debtors or other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (d) to exercise
collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies
and other collection specialists, (e) to advertise dispositions of Collateral through publications or media of general circulation,
whether or not the Collateral is of a specialized nature, (f) to contact other Persons, whether or not in the same business as Grantor,
for expressions of interest in acquiring all or any portion of such Collateral, (g) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (h) to dispose of Collateral
by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable
capacity of doing so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets,
(j) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (k) to purchase insurance or credit enhancements
to insure the Collateral Agent against risks of loss, collection or disposition of Collateral or to provide to the Collateral Agent a
guaranteed return from the collection or disposition of Collateral, or (l) to the extent deemed appropriate by the Collateral Agent,
to obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Collateral Agent in the
collection or disposition of any of the Collateral. Grantor acknowledges that the purpose of this Section 8.3 is to provide non-exhaustive
indications of what actions or omissions by the Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise
of remedies against the Collateral and that other actions or omissions by the Collateral Agent shall not be deemed commercially unreasonable
solely on account of not being indicated in this Section 8.3. Without limitation upon the foregoing, nothing contained in this Section 8.3
shall be construed to grant any rights to Grantor or to impose any duties on the Collateral Agent that would not have been granted or
imposed by this Agreement or by applicable law in the absence of this Section 8.3.

 

    32

     

    

 

Section
8.4           
Compromises and Collection of Collateral. Grantor and the Collateral Agent recognize that setoffs, counterclaims,
defenses and other claims may be asserted by obligors with respect to certain of the Accounts constituting Collateral, that certain of
the Accounts constituting Collateral may be or become uncollectible in whole or in part and that the expense and probability of success
in litigating a disputed Account may exceed the amount that reasonably may be expected to be recovered with respect to an Account. In
view of the foregoing, Grantor agrees that the Collateral Agent may at any time and from time to time if an Event of Default has occurred
and is continuing compromise with the obligor on any Account constituting Collateral, accept in full payment of any Account constituting
Collateral such amount as the Collateral Agent in its sole discretion shall determine or abandon any Account, constituting Collateral
and any such action by the Collateral Agent shall be commercially reasonable so long as the Collateral Agent acts in good faith based
on information known to it at the time it takes any such action.

 

Section
8.5           Specific
Performance of Certain Covenants. Grantor acknowledges and agrees that a breach of any of the covenants contained in Sections 4.2(a),
4.5, 4.6, 4.7, 4.8, 4.10, 4.12, 5.1(j), 7.3(a), 7.6, 8.16 and 8.17, will cause irreparable injury to the Collateral Agent and the other
Secured Parties and that the Collateral Agent and the other Secured Parties have no adequate remedy at law in respect of such breaches,
and Grantor therefore agrees, without limiting the right of the Collateral Agent or the other Secured Parties to seek and obtain specific
performance of other obligations of Grantor contained in this Agreement, that the covenants of Grantor contained in the Sections referred
to in this Section 8.5 shall be specifically enforceable against Grantor.

 

Section
8.6           
Cumulative Remedies; No Prior Recourse to Collateral. The enumeration herein of the Collateral Agent’s and
the Trustee’s rights and remedies is not intended to be exclusive, and such rights and remedies are in addition to and not by way
of limitation of any other rights or remedies that the Collateral Agent and the Trustee may have under the UCC, other applicable law or
the other Indenture Documents. The Collateral Agent and the Trustee shall have the right, in their sole discretion, to determine which
rights and remedies are to be exercised and in which order. The exercise of one right or remedy shall not preclude the exercise of any
others, all of which shall be cumulative. The Collateral Agent and the Trustee may, without limitation, proceed directly against any Person
liable therefor to collect the Obligations without any prior recourse to the Collateral. No failure to exercise and no delay in exercising,
on the part of the Collateral Agent or the Trustee, any right, remedy, power, or privilege hereunder, shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power, or privilege.

 

Section
8.7            Limitation
by Law; Severability of Provisions. All rights, remedies and powers provided in this Agreement may be exercised only to the
extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Agreement are
intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent
necessary so that they shall not render this Agreement invalid, unenforceable or not entitled to be recorded or registered, in whole
or in part. The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument
or agreement required hereunder.

 

    33

     

    

 

Section
8.8           
Reinstatement. This Agreement shall remain in full force and effect and continue to be effective should any petition
be filed by or against Grantor for liquidation or reorganization, should Grantor become insolvent or make an assignment for the benefit
of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of Grantor’s assets. This
Agreement shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations,
or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any
obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as
though such payment or performance had not been made. In the event that any such payment, or any part thereof, is rescinded, reduced,
restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

 

Section
8.9           Binding
Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the respective representatives, successors,
and permitted assigns of the parties hereto; provided, however, Grantor shall not assign or delegate any of its rights or duties
hereunder without the prior written consent of the Collateral Agent and the Trustee (other than pursuant to a transaction permitted under
the Indenture), and any attempted assignment without such consent shall be null and void. The rights and benefits of the Collateral Agent
and the Trustee hereunder shall, if such Persons so agree, inure to any party acquiring any interest in the Obligations or any part thereof
in accordance with the terms hereof or of the Indenture.

 

Section
8.10         Survival
of Representations. All covenants, agreements, representations and warranties made by Grantor in the Indenture Documents and in the
certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Indenture Document
shall be considered to have been relied upon by the Secured Parties and shall survive the execution and delivery of the Indenture Documents
and the purchase of the Securities by the Purchasers, regardless of any investigation made by any Secured Party or on its behalf and notwithstanding
that the Collateral Agent, the Trustee or any other Secured Party may have had notice or knowledge of any Default or incorrect representation
or warranty and shall continue in full force and effect as long as any Obligation (except for contingent obligations and cost and reimbursement
obligations to the extent no claim has been made) remains unpaid. Notwithstanding anything to the contrary set forth herein, the provisions
of Section 8.16 and Section 8.17 shall survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Securities or the termination of this Agreement or any other Indenture Document.

 

Section
8.11         Captions.
The captions contained in this Agreement are for convenience of reference only, are without substantive meaning and should not be construed
to modify, enlarge, or restrict any provision.

 

Section
8.12         Termination
and Release. This Agreement and the security interests granted hereby shall terminate in accordance with the Indenture. In
connection with the release of any Collateral which is expressly permitted by the Indenture Documents, the Collateral Agent shall,
at Grantor’s expense, execute and deliver to Grantor such documents and take such other action as Grantor may reasonably
request to evidence and effectuate the release of any security interests granted or purported to be granted hereunder.

 

    34

     

    

 

Section
8.13         Entire
Agreement. This Agreement taken together with the other Indenture Documents embody the entire agreement and understanding between
Grantor and the Collateral Agent relating to the Collateral and supersede all prior agreements and understandings between Grantor and
the Collateral Agent relating to the Collateral.

 

Section
8.14         Governing
Law; Jurisdiction; Consent to Service of Process.

 

(a)              
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), EXCEPT TO THE EXTENT THAT LOCAL LAW
GOVERNS THE CREATION, PERFECTION, PRIORITY OR ENFORCEMENT OF SECURITY INTERESTS.

 

(b)              
EACH PARTY HERETO HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS OF COMPETENT JURISDICTION IN
THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN ANY SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION
8.1. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW.

 

Section
8.15        Waiver
of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.15.

 

    35

     

    

 

Section
8.16          Indemnity.
GRANTOR AGREES TO DEFEND, INDEMNIFY AND HOLD THE COLLATERAL AGENT, THE TRUSTEE AND EACH OF THEIR RELATED PERSONS (EACH, AN
 “INDEMNIFIED PERSON”) HARMLESS FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES,
ACTIONS, JUDGMENTS, SUITS, COSTS, CHARGES, EXPENSES, AND DISBURSEMENTS (INCLUDING REASONABLE ATTORNEY COSTS) OF ANY KIND OR NATURE
WHATSOEVER THAT MAY AT ANY TIME (INCLUDING AT ANY TIME FOLLOWING THE TERMINATION, RESIGNATION, OR REPLACEMENT OF THE COLLATERAL
AGENT OR THE TRUSTEE) BE IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST ANY SUCH PERSON IN ANY WAY RELATING TO OR ARISING OUT OF THIS
AGREEMENT, THE INDENTURE OR ANY OTHER INDENTURE DOCUMENT OR ANY DOCUMENT CONTEMPLATED BY OR REFERRED TO HEREIN OR THEREIN, OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR ANY ACTION TAKEN OR OMITTED BY ANY SUCH PERSON UNDER OR IN CONNECTION WITH ANY OF
THE FOREGOING, INCLUDING WITH RESPECT TO ANY INVESTIGATION, LITIGATION, OR PROCEEDING (INCLUDING ANY INSOLVENCY PROCEEDING OR
APPELLATE PROCEEDING) RELATED TO OR ARISING OUT OF THIS AGREEMENT, THE INDENTURE, THE SECURITIES OR ANY OTHER INDENTURE DOCUMENT OR
THE USE OF THE PROCEEDS THEREOF, WHETHER OR NOT ANY INDEMNIFIED PERSON IS A PARTY THERETO, INCLUDING ANY SUCH LIABILITIES,
OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, CHARGES, EXPENSES AND REIMBURSEMENTS RESULTING FROM THE
NEGLIGENCE OF SUCH INDEMNIFIED PERSON (ALL THE FOREGOING, COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”); PROVIDED
THAT GRANTOR SHALL HAVE NO OBLIGATION HEREUNDER TO ANY INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES TO THE EXTENT SUCH
INDEMNIFIED LIABILITIES RESULT PRIMARILY FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PERSON OR ITS
RESPECTIVE AFFILIATES, AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION. THE AGREEMENTS IN THIS SECTION 8.16 SHALL
SURVIVE PAYMENT OF ALL OTHER OBLIGATIONS AND ANY TERMINATION OR EXPIRATION OF THIS AGREEMENT OR ANY OTHER INDENTURE DOCUMENT.

 

Section
8.17          Limitation
of Liability. NO CLAIM MAY BE MADE BY GRANTOR OR OTHER PERSON AGAINST THE COLLATERAL AGENT, THE TRUSTEE, OR THE AFFILIATES, DIRECTORS,
OFFICERS, EMPLOYEES, OR AGENTS OR THEIR RESPECTIVE RELATED PERSONS OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE
DAMAGES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT, THE INDENTURE OR ANY OTHER INDENTURE DOCUMENT OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH,
AND GRANTOR HEREBY IRREVOCABLY WAIVES, RELEASES AND AGREES NOT TO SUE UPON OR BRING IN ANY JUDICIAL, ARBITRAL OR ADMINISTRATIVE FORUM
ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. THE AGREEMENTS IN THIS
SECTION 8.17 SHALL SURVIVE PAYMENT OF ALL OTHER OBLIGATIONS AND ANY TERMINATION OR EXPIRATION OF THIS AGREEMENT OR ANY OTHER INDENTURE
DOCUMENT.

 

Section
8.18         Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all such
counterparts shall together constitute one and the same Agreement. Any counterpart may be executed by facsimile or other electronic
transmission, and such facsimile or other electronic transmission shall be deemed an original.

 

    36

     

    

 

Section
8.19          Amendments.
Other than as permitted pursuant to the Indenture, neither this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the Collateral Agent, the Trustee and Grantor with respect to
which such waiver, amendment or modification is to apply, subject to any consent that may be required in accordance with Section 9.02
of the Indenture.

 

Section
8.20          Incorporation
by Reference. It is expressly understood and agreed that U.S. Bank National Association is entering into this Agreement solely in
its capacity as Collateral Agent and as Trustee as appointed pursuant to the Indenture, and shall be entitled to all of the rights, privileges,
immunities and protections under the Indenture as if such rights, privileges, immunities and protections were set forth herein.

 

Section
8.21         English
Language. All certificates, reports, notices and other documents and communications given or delivered by any party hereto pursuant
to this Agreement or any other Indenture Document shall be in English or, if not in English, accompanied by a certified English translation
thereof. The English version of any such document shall control the meaning of the matters set forth herein.

 

{Signature Pages Follow}

 

    37

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date first written above.

 

	 	SCILEX
    PHARMACEUTICALS INC.
	 	 
	 	 
	 	By:	/s/
    Henry Ji, Ph.D.
	 	 	Name: 	Henry
    Ji, Ph.D.
	 	 	Title:	Chief
    Executive Officer

 

{Signature Page to Collateral Agreement}

 

     

     

    

 

	 	U.S.
    BANK NATIONAL ASSOCIATION, 

    as Collateral Agent
	 	 
	 	

	 	By:	/s/
    Susan Freedman
	 	 	Name: 	Susan Freedman
	 	 	Title:	Vice President

 

	 	U.S.
    BANK NATIONAL ASSOCIATION, 

    as Trustee
	 	 
	 	
	 	By:	/s/
    Susan Freedman
	 	 	Name: 	Susan Freedman
	 	 	Title:	Vice President

 

{Signature Page to Collateral Agreement}

 

     

     

    

 

SCHEDULE 1.3

 

FILING OFFICES

 

Secretary of State of the State of Delaware

 

     

     

    

 

SCHEDULE 3.11

 

LEASED PERSONAL PROPERTY

 

None.

 

     

     

    

 

SCHEDULE 4.13

 

POST-CLOSING OBLIGATIONS

 

		1.	Within ninety (90) days after the Effective Date, Grantor shall either: (a) execute and deliver an Account Control Agreement among
Grantor, the Collateral Agent and Wells Fargo Bank, National Association (or an Affiliate) with respect to the bank accounts identified
on the Perfection Certificate delivered on the Effective Date as being held at Wells Fargo Bank, or (b) provide evidence to the Collateral
Agent that the bank accounts identified on the Perfection Certificate delivered on the Effective Date as being held at Wells Fargo Bank
have been closed.

 

		2.	Within ninety (90) days after the Effective Date, Grantor shall either: (a) execute and deliver the SVB Account Control Agreement
with respect to the bank account identified on the Perfection Certificate delivered on the Effective Date as being held at Silicon Valley
Bank, or (b) provide evidence to the Collateral Agent that the bank account identified on the Perfection Certificate delivered on the
Effective Date as being held at Silicon Valley Bank has been closed.

 

		3.	Grantor shall use commercially reasonable efforts to obtain within ninety (90) days after the Effective Date consents to the security
interest and collateral assignment granted hereunder from the counterparties to each of the following agreements: (a) the Exclusive Distribution
Agreement; (b) the Distribution Services Agreement; (c) the Wholesale Purchase Agreement; (d) the Core Distribution Agreement and (e)
the Supplier Acknowledgement and Agreement.

 

		4.	Promptly following the date on which goods or services associated with one or more trademarks or service marks owned by Grantor have
been sold or otherwise provided to third parties in a commercial transaction, Grantor shall (a) enter into a trademark collateral agreement
with the Collateral Agent with respect to such trademark(s) or servicemark(s), in form and substance reasonably satisfactory to the
Collateral Agent and special counsel to the Purchasers (in consultation with the Holders (and the holders of beneficial interests in the
Securities)), (b) file and record such agreement with the United States Patent and Trademark Office and (c) deliver a copy of such recorded
agreement to the Collateral Agent.

 

     

     

    

 

Exhibit A

 

[FORM OF] PERFECTION CERTIFICATE

 

[Provided separately]

 

     

     

    

 

Exhibit B

 

FORM OF AMENDMENT

 

This Amendment, dated [________________,
___] is delivered pursuant to Section 4.2 of the Agreement as defined below. All defined terms herein shall have the meanings ascribed
thereto or incorporated by reference in the Agreement. The undersigned further agrees that this Amendment may be attached to that certain
Collateral Agreement, dated as of September 7, 2018, between the undersigned, as Grantor, U.S. Bank National Association, as the Trustee,
and U.S. Bank National Association, as the Collateral Agent (the “Agreement”) and that the Collateral consisting of
Commercial Tort Claims listed on Schedule I to this Amendment shall be and become a part of the Collateral referred to in said
Agreement and shall secure all Obligations referred to in said Agreement.

 

	 	By:	 
	 	Name: 	 
	 	Title:	 

 

{Attach Schedule I to Amendment describing Commercial Tort Claims with
particularity.}

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