Document:

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of January 26, 2017, by and among Enerpulse Technologies,
Inc., a Nevada corporation, with headquarters located at 2451 Alamo Ave SE, Albuquerque, New Mexico 87106 (the “Company”),
and the investors listed on the Schedule of Buyers attached hereto (each, a “Buyer” and collectively, the “Buyers”).

 

WHEREAS:

 

A.
In connection with (1) the Securities Purchase Agreement by and among the Company and Passaic River Capital LLC of even date herewith
(the “Passaic Securities Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions
of the Passaic Securities Purchase Agreement, to issue and sell to Passaic senior secured convertible notes of the Company (the
“Passaic Notes”), which will, among other things, be convertible (upon conversion, interest or otherwise) into
the Company’s common stock, par value $0.001 per share (the “Common Stock”) (the shares of Common Stock
issuable pursuant to the terms of the Notes, including, without limitation, upon conversion and as interest, collectively, the
“Passaic Conversion Shares”); and (2) the Securities Purchase Agreement by and among the Company and the investors
named therein of even date herewith (the “Other Securities Purchase Agreement” and collectively with the Passaic
Securities Purchase Agreement, the “Securities Purchase Agreements”), the Company has agreed, upon the terms
and subject to the conditions of the Other Purchase Agreement, to issue and sell to each Buyer other than Passaic River Capital
LLC, senior subordinated secured convertible notes of the Company (the “Other Notes” and collectively with
the Passaic Notes, the “Notes”), which will, among other things, be convertible (upon conversion, interest
or otherwise) into the Common Stock (the shares of Common Stock issuable pursuant to the terms of the Notes, including, without
limitation, upon conversion and as interest, collectively, the Other Conversion Shares” and collectively with the
Passaic Conversion Shares, the “Conversion Shares”).

 

B.
In accordance with the terms of the Securities Purchase Agreements, the Company has agreed to provide certain registration rights
under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “1933 Act”), and applicable state securities laws.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows:

 

1.
Definitions.

 

Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreements.
As used in this Agreement, the following terms shall have the following meanings:

 

    	 	 	 

    	 

    

 

(a)
“Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the
City of New York are authorized or required by law to remain closed.

 

(b)
“Closing Date” shall have the meaning set forth in the Securities Purchase Agreements.

 

(c)
“Cutback Shares” means any of the Required Registration Amount of Registrable Securities not included in a
Registration Statement hereunder as a result of a limitation on the maximum number of shares of Common Stock of the Company permitted
to be registered by the staff of the SEC pursuant to Rule 415. For the purpose of determining the Cutback Shares, in order to
determine the Required Registration Amount, unless an Investor gives written notice to the Company to the contrary with respect
to the allocation of its Cutback Shares, first the Conversion Shares shall be excluded on a pro rata basis among the Investors
until all of the Conversion Shares have been excluded, and second the Shares shall be excluded on a pro rata basis among the Investors
until all of the Shares have been excluded.

 

(d)
“Effective Date” means the date that the Registration Statement has been declared effective by the SEC.

 

(e)
“Effectiveness Deadline” means the date which is the earlier of (x) (i) in the event that the Registration
Statement is not subject to a full review by the SEC, one hundred and twenty (120) calendar days after the Closing Date or (ii)
in the event that the Registration Statement is subject to a full review by the SEC, one eighty fifty (180) calendar days after
the Closing Date and (y) the fifth (5th) Business Day after the date the Company is notified (orally or in writing,
whichever is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject to further review;
provided, however, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed
for business, the Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

 

(f)
“Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., the NYSE MKT LLC, The NASDAQ
Capital Market, The NASDAQ Global Select Market, The Nasdaq Global Market, the
OTCQB or the OTC Pink.

 

(g)
“Filing Date” means the date on which the Registration Statement is filed with the SEC.

 

(h)
“Filing Deadline” means the date which is ninety (90) calendar days after the Closing Date.

 

(i)
“Investor” means a Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights under this
Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or
assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 9.

 

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(j)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization and a government or any department or agency thereof.

 

(k)
“Principal Market” means the OTC Pink.

 

(l)
“register,” “registered,” and “registration” refer to a registration
effected by preparing and filing one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant
to Rule 415, and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.

 

(m)
“Registrable Securities” means (i) the Conversion Shares issued or issuable pursuant to the terms of the Notes,
(ii) the Shares and (iii) any capital stock of the Company issued or issuable with respect to the Notes, the Conversion Shares,
the Shares as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, in each case
without regard to any limitations on conversion, amortization and/or redemption of the Notes.

 

(n)
“Registration Statement” means a registration statement or registration statements of the Company filed under
the 1933 Act covering the resale of the Registrable Securities.

 

(o)
“Required Holders” means the holders of at least a majority of the Registrable Securities.

 

(p)
“Required Registration Amount” means the 120% of the sum of (i) the maximum number of Conversion Shares issued
and issuable pursuant to the Notes as of the Trading Day immediately preceding the applicable date of determination and subject
to adjustment as provided in Section 2(f), without regard to any limitations on conversion, and/or redemption of the Notes and
(ii) the Shares; provided that the Required Registration Amount shall not include any applicable Cutback Shares.

 

(q)
“Rule 415” means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities
on a continuous or delayed basis.

 

(t)
“SEC” means the United States Securities and Exchange Commission.

 

(u)
“Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market
on which the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the Common
Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

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2.
Registration.

 

(a)
Mandatory Registration. The Company shall prepare, and, as soon as practicable but in no event later than the Filing Deadline,
file with the SEC the Registration Statement on Form S-1 covering the resale of all of the Required Registration Amount of the
Registrable Securities. In the event that Form S-1 is unavailable for such a registration, the Company shall use such other form
as is available for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to
the provisions of Section 2(e). The Registration Statement prepared pursuant hereto shall register for resale at least the number
of shares of Common Stock equal to the Required Registration Amount determined as of the date the Registration Statement is initially
filed with the SEC, subject to adjustment as provided in Section 2(f). The Registration Statement shall contain (except if otherwise
directed by the Required Holders) the “Plan of Distribution” and “Selling Shareholders”
sections in substantially the form attached hereto as Exhibit A. The Company shall use its reasonable best efforts to have
the Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the Effectiveness
Deadline. By 9:30 a.m. New York time on the Business Day following the Effective Date, the Company shall file with the SEC in
accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Registration
Statement.

 

(b)
Intentionally omitted.

 

(c)
Allocation of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement
and any increase or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors
based on the number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial
number of Registrable Securities or increase or decrease thereof is declared effective by the SEC. In the event that an Investor
sells or otherwise transfers any of such Investor’s Registrable Securities, each transferee shall be allocated a pro rata
portion of the then remaining number of Registrable Securities included in such Registration Statement for such transferor. Any
shares of Common Stock included in a Registration Statement and which remain allocated to any Person which ceases to hold any
Registrable Securities covered by such Registration Statement shall be allocated to the remaining Investors, pro rata based on
the number of Registrable Securities then held by such Investors which are covered by such Registration Statement. In no event
shall the Company include any securities other than Registrable Securities on any Registration Statement without the prior written
consent of the Required Holders.

 

(d)
Intentionally omitted

 

(e)
Intentionally omitted.

 

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(f) Sufficient
Number of Shares Registered. In the event the number of shares available under a Registration Statement filed pursuant
to Section 2(a) or Section 2(b) is insufficient to cover the Required Registration Amount of Registrable Securities required
to be covered by such Registration Statement or an Investor’s allocated portion of the Registrable Securities pursuant
to Section 2(c), the Company shall amend the applicable Registration Statement, or file a new Registration Statement (on the
short form available therefor, if applicable), or both, so as to cover at least the Required Registration Amount as of the
Trading Day immediately preceding the date of the filing of such amendment or new Registration Statement, in each case, as
soon as practicable, but in any event not later than fifteen (15) days after the necessity therefor arises. The Company shall
use its reasonable best efforts to cause such amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof. For purposes of the foregoing provision, the number of shares available under a
Registration Statement shall be deemed “insufficient to cover all of the Registrable Securities” if at any time
the number of shares of Common Stock available for resale under the Registration Statement is less than the Required
Registration Amount. The calculation set forth in the foregoing sentence shall be made without regard to any limitations on
the conversion, amortization and/or redemption of the Notes and such calculation shall assume that the Notes are then
convertible in full into shares of Common Stock at the then prevailing Conversion Rate (as defined in the Notes).

 

(g)
Effect of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (i) the Registration Statement
when declared effective fails to register the Required Registration Amount of Registrable Securities (a “Registration
Failure”), (ii) a Registration Statement covering all of the Registrable Securities required
to be covered thereby and required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before
the applicable Filing Deadline (a “Filing Failure”) or (B) not declared effective
by the SEC on or before the applicable Effectiveness Deadline, (an “Effectiveness Failure”)
or (iii) on any day after the applicable Effective Date, sales of all of the Registrable Securities required to be included on
such Registration Statement cannot be made (other than during an Allowable Grace Period (as defined in Section 3(r))) pursuant
to such Registration Statement or otherwise (including, without limitation, because of a failure to keep such Registration Statement
effective, a failure to disclose such information as is necessary for sales to be made pursuant to such Registration Statement
or a failure to register a sufficient number of shares of Common Stock) (a “Maintenance Failure”)
then, as partial relief for the damages to any holder by reason of any such delay in or reduction of its ability to sell the underlying
shares of Common Stock (which remedy shall not be exclusive of any other remedies available at law or in equity, including, without
limitation, specific performance or the additional obligation of the Company to register any Cutback Shares), the Company shall
pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to two percent (2.0%)
of the aggregate Purchase Price (as such term is defined in the Securities Purchase Agreement) of such Investor’s Registrable
Securities, whether or not included in such Registration Statement, on each of the following dates: (i) on the thirtieth day after
the date of a Registration Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until
such Registration Failure is cured; (ii) on the thirtieth day after the date of a Filing Failure and every thirtieth day thereafter
(pro rated for periods totaling less than thirty days) until such Filing Failure is cured; (iii) on the thirtieth day after the
date of an Effectiveness Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until
such Effectiveness Failure is cured; and (iv) on the thirtieth day after the initial date of a Maintenance Failure and every thirtieth
day thereafter (pro rated for periods totaling less than thirty days) until such Maintenance Failure is cured. The payments to
which a holder shall be entitled pursuant to this Section 2(g) are referred to herein as “Registration Delay Payments.”
Registration Delay Payments shall be paid on the earlier of (I) the dates set forth above and (II) the third Business Day after
the event or failure giving rise to the Registration Delay Payments is cured. In the event the Company fails to make Registration
Delay Payments in a timely manner, such Registration Delay Payments shall bear interest at the rate of one percent (1.0%) per
month (prorated for partial months) until paid in full. Notwithstanding the foregoing, (i) no Registration Delay Payments shall
be owed to an Investor with respect to any period during which all of such Investor’s Registrable Securities may be sold
by such Investor under Rule 144 or, with respect to any Investor, to the extent the Company has previously paid to such Investor
an aggregate of Registration Delay Payments in excess of ten percent (10%) the aggregate Purchase Price of such Investor and (ii)
no Registration Delay Payments shall be owed to any Investor that elects not to be named as an underwriter in a Registration Statement
to the extent required by the SEC.

 

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3.
Related Obligations.

 

At
such time as the Company is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(b), 2(e) or 2(f),
the Company will use its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the
intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

(a)
The Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and
use its reasonable best efforts to cause such Registration Statement relating to the Registrable Securities to become effective
as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep each
Registration Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investors
may sell all of the Registrable Securities covered by such Registration Statement without restriction or limitation pursuant to
Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the
1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration
Statement (the “Registration Period”). The Company shall ensure that each Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case
of prospectuses, in the light of the circumstances in which they were made) not misleading. The term “reasonable best efforts”
shall mean, among other things, that the Company shall submit to the SEC, within two (2) Business Days after the later of the
date that (i) the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or
that the staff has no further comments on a particular Registration Statement, as the case may be, and (ii) the approval of Buyers
pursuant to Section 3(c) (which approval is immediately sought), a request for acceleration of effectiveness of such Registration
Statement to a time and date not later than five (5) Business Days after the Company is notified (orally or in writing, whichever
is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject to further review. The Company
shall respond in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but in no
event later than ten (10) Business Days after the receipt of comments by or notice from the SEC that an amendment is required
in order for a Registration Statement to be declared effective.

 

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(b)
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during
the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities
shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth
in such Registration Statement. In the case of amendments and supplements to a Registration Statement which are required to be
filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K,
Form 10-Q, Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended (the “1934 Act”),
the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such
amendments or supplements with the SEC on the same day on which the 1934 Act report is filed which created the requirement for
the Company to amend or supplement such Registration Statement.

 

(c)
The Company shall (A) permit the Buyers to review and comment upon (i) a Registration Statement at least three (3) Business Days
prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable
number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto
in a form to which the Buyers reasonably object. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto without the prior approval of Buyers, which consent shall not
be unreasonably withheld delayed or conditioned; provided, however, that the Company shall not be liable for any
Registration Delay Payments that may arise under this Agreement if the Buyers do not permit the Company to request acceleration
of the effectiveness at such earlier time when the Company is otherwise able to make such request. The Company shall furnish to
the Buyers, without charge, (i) copies of any correspondence from the SEC or the staff of the SEC to the Company or its representatives
relating to any Registration Statement, (ii) promptly after the same is prepared and filed with the SEC, one copy of any Registration
Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference,
if requested by an Investor, and all exhibits and (iii) upon the effectiveness of any Registration Statement, one copy of the
prospectus included in such Registration Statement and all amendments and supplements thereto, except in cases (ii) and (iii)
above if such documents are filed with the SEC through EDGAR and are available to the public through the EDGAR system promptly
after the same is prepared and filed with the SEC. The Company shall reasonably cooperate with the Buyers in performing the Company’s
obligations pursuant to this Section 3.

 

(d)
The Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge,
unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system promptly after
the same is prepared and filed with the SEC (i) promptly after the same is prepared and filed with the SEC, at least one copy
of such Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated
therein by reference, if requested by an Investor, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of
any Registration Statement, ten (10) copies of the prospectus included in such Registration Statement and all amendments and supplements
thereto (or such other number of copies as such Investor may reasonably request) and (iii) such other documents, including copies
of any preliminary or final prospectus, as such Investor may reasonably request from time to time in order to facilitate the disposition
of the Registrable Securities owned by such Investor.

 

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(e)
The Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification
applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities
or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions
such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify the Buyers and
each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension
of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue sky”
laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding
for such purpose.

 

(f)
The Company shall notify the Buyers and each Investor in writing of the happening of any event, as promptly as practicable after
becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event
shall such notice contain any material, nonpublic information), and, subject to Section 3(r), promptly prepare a supplement or
amendment to such Registration Statement to correct such untrue statement or omission, and, unless the following are filed with
the SEC through EDGAR and are available to the public through the EDGAR system promptly after the same is prepared and filed with
the SEC, deliver ten (10) copies of such supplement or amendment to the Buyers and each Investor (or such other number of copies
as the Buyers or such Investor may reasonably request). The Company shall also promptly notify the Buyers and each Investor in
writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration
Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to the Buyers
by facsimile or email on the same day of such effectiveness and by overnight mail), (ii) of any request by the SEC for amendments
or supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable
determination that a post-effective amendment to a Registration Statement would be appropriate. By 9:30 a.m. New York City time
on the date following the date any post-effective amendment has become effective, the Company shall file with the SEC in accordance
with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Registration Statement.

 

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(g)
The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Buyers and each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution
thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)
If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or
an Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, at the reasonable request
of such Investor, the Company shall furnish to such Investor, on the date of the effectiveness of the Registration Statement and
thereafter from time to time on such dates as an Investor may reasonably request (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the Investors, and (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given
in an underwritten public offering, addressed to the Investors.

 

(i)
If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or
an Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall make
available for inspection by (i) such Investor and (ii) one firm of accountants or other agents retained by the Investors (collectively,
the “Inspectors”), all pertinent financial and other records, and pertinent corporate documents and properties
of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector, and
cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to an
Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of which
determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records is ordered
pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (c) the information
in such Records has been made generally available to the public other than by disclosure in violation of this Agreement. Each
Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of
competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein
(or in any other confidentiality agreement between the Company and any Investor) shall be deemed to limit the Investors’
ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

 

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(j)
The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of
competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information
concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give
prompt written notice to such Investor and allow such Investor, at the Investor’s expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, such information.

 

(k)
The Company shall use its reasonable best efforts to secure the inclusion for quotation of all of the Registrable Securities on
the Principal Market or, if the Common Stock is then no longer listed on the Principal Market, on such other Eligible Market on
which the Common Stock is then listed. The Company shall pay all fees and expenses in connection with satisfying its obligation
under this Section 3(k).

 

(l)
The Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(m)
If requested by an Investor, the Company shall as soon as practicable (i) incorporate in a prospectus supplement or
post-effective amendment such information as an Investor reasonably requests to be included therein relating to the sale and
distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable
Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the
Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or
post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and (iii) supplement or make amendments to any Registration Statement if reasonably requested by an
Investor holding any Registrable Securities.

 

(n)
The Company shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be
registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

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(o)
The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal
quarter next following the applicable Effective Date of a Registration Statement.

 

(p)
The Company shall otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC in
connection with any registration hereunder.

 

(q)
Within two (2) Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the SEC.

 

(r)
Notwithstanding anything to the contrary herein, at any time after the Effective Date, (i) the Company may delay the disclosure
of material, non-public information concerning the Company the disclosure of which at the time is not, in the good faith opinion
of the Board of Directors of the Company and its counsel, in the best interest of the Company and, in the opinion of counsel to
the Company, otherwise required and (ii) the Company may suspend the availability of a Registration Statement on Form S-1 if pursuant
to applicable law it must file a post-effective amendment to such Registration Statement in connection with the filing of its
Annual Report on Form 10-K or Quarterly Reports on Form 10-Q (each, a “Grace Period”); provided, that the Company
shall promptly (i) notify the Investors in writing of the existence of material, non-public information giving rise to a Grace
Period (provided that in each notice the Company will not disclose the content of such material, non-public information to the
Investors) and the date on which each Grace Period will begin, and (ii) notify the Investors in writing of the date on which each
Grace Period ends; and, provided further, that no Grace Period shall exceed fifteen (15) consecutive Trading Days and during any
three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of sixty (60) Trading Days and the
first day of any Grace Period must be at least five (5) Trading Days after the last day of any prior Grace Period (each, an “Allowable
Grace Period”). For purposes of determining the length of a Grace Period above, the Grace Period shall begin on and
include the date the Investors receive the notice referred to in clause (i) and shall end on and include the later of the date
the Investors receive the notice referred to in clause (ii) and the date referred to in such notice. The provisions of Section
3(g) hereof shall not be applicable during the period of any Allowable Grace Period. Upon expiration of the Grace Period, the
Company shall again be bound by the first sentence of Section 3(f) with respect to the information giving rise thereto unless
such material, non-public information is no longer applicable. Notwithstanding anything to the contrary, the Company shall cause
its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of
the Securities Purchase Agreement in connection with any sale of Registrable Securities pursuant to an effective Registration
Statement with respect to which an Investor has entered into a contract for sale, prior to the Investor’s receipt of the
notice of a Grace Period and for which the Investor has not yet settled.

 

    	 	11	 

    	 

    

 

(s)
Neither the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure
or filing with the SEC, the Principal Market or any Eligible Market and any Buyer being deemed an underwriter by the SEC shall
not relieve the Company of any obligations it has under this Agreement or any other Transaction Document (as defined in the Securities
Purchase Agreement); provided, however, that the foregoing shall not prohibit the Company from including the disclosure
found in the “Plan of Distribution” section attached hereto as Exhibit A in the Registration Statement.

 

(t)
Other than the current holders of the Company’s securities which have the benefit of registration rights as disclosed in
the SEC Documents (as defined in the Securities Purchase Agreement) from whom the Company has obtained waivers on or prior to
the Closing Date, neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or
any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that
would have the effect of impairing the rights granted to the Buyers in this Agreement or otherwise conflicts with the provisions
hereof.

 

4.
Obligations of the Investors.

 

(a)
At least five (5) Business Days prior to the first anticipated Filing Date of a Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of
such Investor’s Registrable Securities included in such Registration Statement. It shall be a condition precedent to the
obligations of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Securities
of a particular Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to
effect within five (5) Business Days and maintain the effectiveness of the registration of such Registrable Securities and shall
execute such documents in connection with such registration as the Company may reasonably request.

 

(b)
Each Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor
has notified the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities
from such Registration Statement.

 

(c)
Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in
Section 3(g) or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant
to any Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of copies of the supplemented
or amended prospectus as contemplated by Section 3(g) or the first sentence of 3(f) or receipt of notice that no supplement or
amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor’s
receipt of a notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence
of 3(f) and for which the Investor has not yet settled.

 

    	 	12	 

    	 

    

 

(d)
Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.
Expenses of Registration.

 

All
reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees,
printers and accounting fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The Company
shall also reimburse the Investors for one-half of the reasonable and documented fees and disbursements of the Buyers in connection
with registration, filing or qualification pursuant to Sections 2 and 3 of this Agreement in an amount up to $5,000.

 

6.
Indemnification.

 

In
the event any Registrable Securities are included in a Registration Statement under this Agreement:

 

(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor,
the directors, officers, partners, members, employees, agents, representatives of, and each Person, if any, who controls any Investor
within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable and documented attorneys’ fees, amounts paid
in settlement or expenses, joint or several (collectively, “Claims”), incurred in investigating, preparing
or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court
or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an
indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject
insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based
upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective
amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue
sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the
omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus
if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law,
including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of
the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing
clauses (i) through (iv) being, collectively, “Violations”). Subject to Section 6(c), the Company shall reimburse
the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any reasonable and documented legal
fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by such Indemnified Person for such Indemnified Person expressly for use in connection
with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was
timely made available by the Company pursuant to Section 3(d); and (ii) shall not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld
or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

    	 	13	 

    	 

    

 

(b)
In connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and
not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the
Company, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls
the Company within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any
Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as
such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent,
that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor shall reimburse
the Indemnified Party for any legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating
or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement
with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided,
further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages
as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified
Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

    	 	14	 

    	 

    

 

(c)
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses of not more than one counsel for all such Indemnified Person or Indemnified Party to be
paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party,
as applicable, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would
be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other
party represented by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately
preceding sentence shall be selected by the Investors holding at least a majority in interest of the Registrable Securities included
in the Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall reasonably cooperate
with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party
and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person
which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall
be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however,
that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement
or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person of a release from all liability in respect to such Claim or litigation and such settlement shall not
include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided for hereunder, the
indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third
parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying
party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying
party is prejudiced in its ability to defend such action.

 

(d)
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

    	 	15	 

    	 

    

 

7.
Contribution.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled
to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received
by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

 

8.
Reports Under the 1934 Act.

 

With
a view to making available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule
or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration
(“Rule 144”), the Company agrees to:

 

(a)
make and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)
file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act
so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for
the applicable provisions of Rule 144; and

 

(c)
furnish to each Investor so long as such Investor owns Registrable Securities, as soon as reasonably practicable upon request,
(i) a written statement by the Company, if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act
and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents
so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Investors to sell such
securities pursuant to Rule 144 without registration.

 

9.
Assignment of Registration Rights.

 

The
rights under this Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such
Investor’s Registrable Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such
rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company
is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned;
(iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee
is restricted under the 1933 Act or applicable state securities laws; (iv) at or before the time the Company receives the written
notice contemplated by clause (ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound
by all of the provisions contained herein; and (v) such transfer shall have been made in accordance with the applicable requirements
of the Securities Purchase Agreement.

 

    	 	16	 

    	 

    

 

10.
Amendment of Registration Rights.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the Required Holders; provided that any such
amendment or waiver that complies with the foregoing but that disproportionately, materially and adversely affects the rights
and obligations of any Investor relative to the comparable rights and obligations of the other Investors shall require the prior
written consent of such adversely affected Investor. Any amendment or waiver effected in accordance with this Section 10 shall
be binding upon each Investor and the Company. No such amendment shall be effective to the extent that it applies to less than
all of the holders of the Registrable Securities. No consideration shall be offered or paid to any Person to amend or consent
to a waiver or modification of any provision of this Agreement unless the same consideration (other than the reimbursement of
reasonable and documented legal fees) also is offered to all of the parties to this Agreement.

11.
Miscellaneous.

 

(a)
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

(b)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); (iii) when sent, if sent by electronic mail; or (iv) one Business Day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the same. The addresses, facsimile numbers and email
addresses for such communications shall be:

 

If
to the Company:

 

	 	Enerpulse
    Technologies, Inc.
	 	 
	 	2451
Alamo Ave SE
	 	Albuquerque,
    New Mexico 87106
	 	Telephone:	(505)
    842-5201
	 	Facsimile:	(505)
    213-0013
	 	Attention:	Bryan
    Templeton,
	 		Chief
    Financial Officer
	 	Email:	btempleton@enerpulse.com

 

    	 	17	 

    	 

    

 

	 	With a copy to:
	 	 
	 	Troutman
    Sanders LLP
	 	875
    Third Avenue
	 	New
    York, NY 10022
	 	Telephone:	(212)
    704-6249
	 	Facsimile:	(212)
    704-5900
	 	Attention:	Aurora
    Cassirer, Esq.
	 	E-mail:	acasirer@troutmansanders.com

 

	 	If
to the Transfer Agent:
	 	 
	 	Securities
    Transfer Corporation
	 	2591
    Dallas Parkway, Suite 102
	 	Frisco,
    Texas 75034
	 	Telephone:	(469)
633-0101
	 	Facsimile:	(469)
633-0088
	 	Attention:	Christina
    Shelton, Original Issuance Department
	 	E-mail:	shelton@stctransfer.com

 

If
to a Buyer, to its address, facsimile number and/or email address set forth on the Schedule of Buyers attached hereto, with copies
to such Buyer’s representatives as set forth on the Schedule of Buyers, or to such other address, facsimile number and/or
email address to the attention of such other Person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
or email containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided
by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from
a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(c)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

(d)
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING
OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	 	18	 

    	 

    

 

(e)
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(f)
This Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced
herein and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.
This Agreement, the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

(g)
Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto.

 

(h)
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(i)
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

    	 	19	 

    	 

    

 

(j)
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)
All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if all of the outstanding Notes then held by the Investors
have been converted for Registrable Securities without regard to any limitations on redemption, amortization and/or conversion
of the Notes.

 

(l)
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

(m)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(n)
The obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision
of this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained
herein, and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an
association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in
concert or as a group with respect to such obligations or the transactions contemplated herein.

 

*
* * * * *

 

[Signature
Page Follows]

 

    	 	20	 

    	 

    

 

IN
WITNESS WHEREOF, the Buyer and the Company have caused their respective signature page to this Registration Rights Agreement
to be duly executed as of the date first written above.

 

	 	COMPANY:
	 	 
	 	ENERPULSE
    TECHNOLOGIES, INC. 
	 	 
	 	By:	 
	 	Name:	             
                
	 	Title:	 

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Registration Rights Agreement
to be duly executed as of the date first written above.

 

	 	BUYERS:
	 	 
	 	[__________]
	 	 
	 	By: 

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	 	 

    	 

    

 

SCHEDULE
OF BUYERS

 

 

	Buyer
    	 	Buyer
                                         Address

                                                                                and
                                         Facsimile Number
	 	Buyer’s
    Representative’s Address  and Facsimile Number
	 	 	 	 	 
	[__________]	 	[_____________]

        [_____________]

        [_____________]

        Attention:
        [_____________]

        Facsimile:
        [_____________]

        Telephone:
        [_____________]

        E-mail:
        [_____________]
	 	 

 

    	 	 	 

    	 

    

 

EXHIBIT
A

 

SELLING
SHAREHOLDERS

 

The
shares of common stock being offered by the selling shareholders are those issuable to the selling shareholders pursuant to the
terms of the convertible notes. For additional information regarding the issuance of those convertible notes, see “Private
Placement of Convertible Notes and Shares” above. We are registering the shares of common stock in order to permit the selling
shareholders to offer the shares for resale from time to time. Except for the ownership of the convertible notes issued pursuant
to the Securities Purchase Agreement, the selling shareholders have not had any material relationship with us within the past
three years.

 

The
table below lists the selling shareholders and other information regarding the beneficial ownership of the shares of common stock
by each of the selling shareholders. The second column lists the number of shares of common stock beneficially owned by each selling
shareholder, based on its ownership of the convertible notes, as of ________, 2017, assuming conversion of all convertible notes
by the selling shareholders on that date, without regard to any limitations on conversion, redemption or exercise.

 

The
third column lists the shares of common stock being offered by this prospectus by the selling shareholders.

 

In
accordance with the terms of a registration rights agreement with the selling shareholders, this prospectus generally covers the
resale of at least 120% of the sum of (i) the maximum number of shares of common stock issued and issuable pursuant to the convertible
notes as of the Trading Day immediately preceding the date the registration statement is initially filed with the SEC, and (ii)
Shares as of the Trading Day immediately preceding the date the registration statement is initially filed with the SEC. Because
the conversion price of the convertible notes may be adjusted, the number of shares that will actually be issued may be more or
less than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered
by the selling shareholders pursuant to this prospectus.

 

Under
the terms of the convertible notes, a selling shareholder may not convert the convertible notes to the extent such conversion
would cause such selling shareholder, together with its affiliates, to beneficially own a number of shares of common stock which
would exceed 4.99% of our then outstanding shares of common stock following such conversion, excluding for purposes of such determination
shares of common stock issuable upon conversion of the convertible notes which have not been converted. The number of shares in
the second column does not reflect this limitation. The selling shareholders may sell all, some or none of their shares in this
offering. See “Plan of Distribution.”

 

    	 	Annex I-1	 

    	 

    

 

	Name
    of Selling Shareholder	 	Number
    of Shares of Common Stock Owned Prior to Offering	 	Maximum
    Number of Shares of Common Stock to be Sold Pursuant to this Prospectus	 	Number
    of Shares of Common Stock Owned After Offering
	 	 	 	 	 	 	 
	[_____________]	 	 	 	 	 	0

 

    	 	Annex I-2	 

    	 

    

 

PLAN
OF DISTRIBUTION

 

We
are registering the shares of common stock and common stock issuable pursuant to the terms of the convertible notes to permit
the resale of these shares of common stock by the holders of the shares and convertible notes from time to time after the date
of this prospectus. We will not receive any of the proceeds from the sale by the selling shareholders of the shares of common
stock. We will bear all fees and expenses incident to our obligation to register the shares of common stock.

 

The
selling shareholders may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from
time to time directly or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through
underwriters or broker-dealers, the selling shareholders will be responsible for underwriting discounts or commissions or agent’s
commissions. The shares of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at
the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in
transactions, which may involve crosses or block transactions,

 

	 	●	on
    any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
	 	 	 
	 	●	in
    the over-the-counter market;
	 	 	 
	 	●	in
    transactions otherwise than on these exchanges or systems or in the over-the-counter market;
	 	 	 
	 	●	through
    the writing of options, whether such options are listed on an options exchange or otherwise;
	 	 	 
	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	short
    sales;
	 	 	 
	 	●	sales
    pursuant to Rule 144;
	 	 	 
	 	●	broker-dealers
    may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share;
	 	 	 
	 	●	a
    combination of any such methods of sale; and
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

    	 	Annex I-3	 

    	 

    

 

The
selling shareholders may also sell shares of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended,
if available, rather than under this prospectus. In addition, the selling shareholders may transfer the shares of common stock
by other means not described in this prospectus. If the selling shareholders effect such transactions by selling shares of common
stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions
in the form of discounts, concessions or commissions from the selling shareholders or commissions from purchasers of the shares
of common stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions
as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved).
In connection with sales of the shares of common stock or otherwise, the selling shareholders may enter into hedging transactions
with broker-dealers, which may in turn engage in short sales of the shares of common stock in the course of hedging in positions
they assume. The selling shareholders may also sell shares of common stock short and deliver shares of common stock covered by
this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling shareholders
may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares.

 

The
selling shareholders may pledge or grant a security interest in some or all of the convertible notes or shares of common stock
owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer
and sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling
shareholders to include the pledgee, transferee or other successors in interest as selling shareholders under this prospectus.
The selling shareholders also may transfer and donate the shares of common stock in other circumstances in which case the transferees,
donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

To
the extent required by the Securities Act and the rules and regulations thereunder, the selling shareholders and any broker-dealer
participating in the distribution of the shares of common stock may be deemed to be “underwriters” within the meaning
of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed
to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares of common
stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of shares of
common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts,
commissions and other terms constituting compensation from the selling shareholders and any discounts, commissions or concessions
allowed or reallowed or paid to broker-dealers. Each selling shareholder has informed us that it does not have any written or
oral agreement or understanding, directly or indirectly, with any person to distribute the shares of common stock. In no event
shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent (8%).

 

    	 	Annex I-4	 

    	 

    

 

There
can be no assurance that any selling shareholder will sell any or all of the shares of common stock registered pursuant to the
registration statement, of which this prospectus forms a part.

 

The
selling shareholders and any other person participating in such distribution will be subject to applicable provisions of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the
Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling shareholders
and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the
shares of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing
may affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making
activities with respect to the shares of common stock.

 

We
will pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated
to be $[ ] in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance
with state securities or “blue sky” laws; provided, however, that a selling shareholder will pay all underwriting
discounts and selling commissions, if any. We will indemnify the selling shareholders against liabilities, including some liabilities
under the Securities Act, in accordance with the registration rights agreements, or the selling shareholders will be entitled
to contribution. We may be indemnified by the selling shareholders against civil liabilities, including liabilities under the
Securities Act, that may arise from any written information furnished to us by the selling shareholder specifically for use in
this prospectus, in accordance with the related registration rights agreement, or we may be entitled to contribution.

 

We
agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the selling shareholders
without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement
for us to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar
effect or (ii) all of the shares have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other
rule of similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states, the resale shares of common stock covered hereby may not be
sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

 

Once
sold under the registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable
in the hands of persons other than our affiliates.

 

    	 	Annex I-5PLEDGE
AND SECURITY AGREEMENT

 

PLEDGE
AND SECURITY AGREEMENT, dated as of January 26, 2017 (this “Agreement”), made by Enerpulse Technologies,
Inc., a Nevada corporation (the “Company”), Enerpulse, Inc., a Delaware corporation (“Enerpulse”)
and each other Subsidiary of the Company hereafter becoming party hereto (together with the Company and Enerpulse, each a “Grantor”
and, collectively, the “Grantors”), in favor of Passaic River Capital LLC, in its capacity as collateral agent
(in such capacity, the “Collateral Agent”) for the Buyers (as defined below) party to the Securities Purchase
Agreements, dated as of even date herewith (as amended, restated, supplemented or otherwise modified from time to time, the “Securities
Purchase Agreements”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Company and each party listed as a “Buyer” on the Schedule of Buyers (as such schedule may be amended, restated
or otherwise modified from time to time) attached thereto, (together with their respective successors and assigns, each a “Buyer”,
and collectively, the “Buyers”) are parties to the Securities Purchase Agreements, pursuant to which the Company
shall be required to sell, and the Buyers shall purchase or have the right to purchase, the “Notes” (as defined
in the Securities Purchase Agreements);

 

WHEREAS,
it is a condition precedent to the Buyers consummating the transactions contemplated by the Securities Purchase Agreement that
the Grantors execute and deliver to the Collateral Agent this Agreement providing for the grant to the Collateral Agent for the
benefit of the Buyers of a security interest in all personal property of the Grantors to secure all of the Company’s obligations
under the Securities Purchase Agreements and the “Notes” (as defined therein) issued pursuant thereto (as such Notes
may be amended, restated, replaced or otherwise modified from time to time in accordance with the terms thereof, collectively,
the “Notes”) and the other Secured Transaction Documents (as defined below);

 

WHEREAS,
the Grantors (i) are mutually dependent on each other in the conduct of their respective businesses as an integrated operation,
with the credit needed from time to time by one often being provided through financing obtained by the other Grantors and the
ability to obtain such financing being dependent on the successful operations of the Grantors and (ii) will receive a mutual benefit
from the proceeds received by the Company in respect of the issuance of the Notes; and

 

WHEREAS,
each Grantor has determined that the execution, delivery and performance of this Agreement directly benefits, and are in the best
interest of the Company and such Grantor.

 

NOW,
THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyers to perform under the Securities
Purchase Agreements, each Grantor agrees with the Collateral Agent, for the benefit of the Buyers, as follows:

 

    	- 1 -

    	 

    

 

Section
1. Definitions.

 

(a)
Reference is hereby made to the Securities Purchase Agreements and the Notes for a statement of the terms thereof. All terms used
in this Agreement and the recitals hereto which are defined in the Securities Purchase Agreements, the Notes or in Articles 8
or 9 of the Uniform Commercial Code (the “Code”) as in effect from time to time in the State of New York, and
which are not otherwise defined herein shall have the same meanings herein as set forth therein; provided that terms used
herein which are defined in the Code as in effect in the State of New York on the date hereof shall continue to have the same
meaning notwithstanding any replacement or amendment of such statute except as the Collateral Agent may otherwise determine.

 

(b)
The following terms shall have the respective meanings provided for in the Code: “Accounts”, “Cash Proceeds”,
“Chattel Paper”, “Commercial Tort Claim”, “Commodity Account”, “Commodity Contracts”,
“Deposit Account”, “Documents”, “Equipment”, “Fixtures”, “General Intangibles”,
“Goods”, “Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit
Rights”, “Noncash Proceeds”, “Payment Intangibles”, “Proceeds”, “Promissory Notes”,
“Security”, “Record”, “Security Account”, “Software”, and “Supporting Obligations”.

 

(c)
As used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable
equally to both the singular and plural forms of such terms:

 

“Collateral”
shall have the meaning set forth in Section 2 hereof.

 

“Copyright
Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensee
or licensor and providing for the grant of any right to use or sell any works covered by any copyright (including, without limitation,
all Copyright Licenses set forth in Schedule II hereto).

 

“Copyrights”
means all domestic and foreign copyrights, whether registered or not, including, without limitation, all copyright rights throughout
the universe (whether now or hereafter arising) in any and all media (whether now or hereafter developed), in and to all original
works of authorship fixed in any tangible medium of expression, acquired or used by any Grantor (including, without limitation,
all copyrights described in Schedule II hereto), all applications, registrations and recordings thereof (including, without
limitation, applications, registrations and recordings in the United States Copyright Office or in any similar office or agency
of the United States or any other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations
in part and extensions or renewals thereof.

 

“Event
of Default” means (i) any defined event of default under any one or more of the Secured Transaction Documents, in each
instance, after giving effect to any notice, grace, or cure periods provided for in the applicable Secured Transaction Document,
(ii) the failure by the Company to pay any amounts when due under the Notes or any other Secured Transaction Document, (iii) the
breach of any representation, warranty by any Grantor under this Agreement in any material respect, or (iv) the breach of any
covenant by any Grantor under this Agreement except, in the case of a breach of a covenant which is curable, only if such breach
continues for a period of at least five (5) consecutive Business Days.

 

    	- 2 -

    	 

    

 

“Excluded
Collateral” means (i) any right under any lease, license or other contract or agreement, but only to the extent that
the granting of a security interest therein or an assignment thereof would violate any applicable law or would result in an invalidation
thereof or constitute a breach or violation of such lease, license or other contract or agreement, as applicable (other than any
contractual prohibition on the assignment of accounts or payment intangibles that is unenforceable under the UCC or any other
applicable law), provided that to the extent such security interest at any time hereafter shall no longer be prohibited by law
or agreement, and/or immediately upon such provision no longer being enforceable, as the case may be, such assets shall automatically
and without any further action shall no longer constitute Excluded Collateral, (ii) any voting equity interests in any foreign
Subsidiary in excess of 65% of all such voting equity interest of such foreign Subsidiary, (iii) any assets as to which the Collateral
Agent and any Grantor shall agree in writing that (A) the cost of obtaining a security interest is excessive in relation to the
value of the security to be afforded thereby or (B) obtaining such security interest is not commercially practical, and (iv) any
trademark applications on the basis of such Grantor’s “intent-to-use” such trademark to the extent that granting
a security interest in such trademark application prior to such filing would adversely affect the enforceability or validity or
result in the voiding of such trademark application.

 

“Existing
Issuer” has the meaning specified therefor in the definition of the term “Pledged Shares”.

 

“Guaranty”
means the Guaranty, dated as of the date hereof, by Enerpulse in favor of the Buyers and the Collateral Agent, as the same may
be amended, restated, supplemented or otherwise modified from time to time.

 

“Insolvency
Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code (Chapter
11 of Title 11 of the United States Code) or under any other bankruptcy or insolvency law, assignments for the benefit of creditors,
formal or informal moratoria, compositions, or extensions generally with creditors, or proceedings seeking reorganization, arrangement,
or other similar relief.

 

“Intellectual
Property” means the Copyrights, Trademarks and Patents.

 

“Licenses”
means the Copyright Licenses, the Trademark Licenses and the Patent Licenses.

 

“Lien”
means any mortgage, deed of trust, pledge, lien (statutory or otherwise), security interest, charge or other encumbrance or security
or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement,
any capitalized lease and any assignment, deposit arrangement or financing lease intended as, or having the effect of, security.

 

    	- 3 -

    	 

    

 

“Obligations”
shall have the meaning set forth in Section 3 hereof.

 

“Patent
Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensee
or licensor and providing for the grant of any right to manufacture, use or sell any invention covered by any Patent (including,
without limitation, all Patent Licenses set forth in Schedule II hereto).

 

“Patents”
means all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets,
ideas, concepts, methods, techniques, processes, proprietary information, technology, know-how, formulae, rights of publicity
and other general intangibles of like nature, of any Grantor, now existing or hereafter acquired (including, without limitation,
all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, ideas,
concepts, methods, techniques, processes, proprietary information, technology, know-how and formulae described in Schedule
II hereto), all applications, registrations and recordings thereof (including, without limitation, applications, registrations
and recordings in the United States Patent and Trademark Office, or in any similar office or agency of the United States or any
other country or any political subdivision thereof), and all reissues, divisions, continuations, continuations in part and extensions
or renewals thereof.

 

“Permitted
Liens” shall have the meaning set forth in the Notes.

 

“Pledged
Debt” means the indebtedness described in Schedule VII hereto and all indebtedness from time to time owned or acquired
by a Grantor, the promissory notes and other Instruments evidencing any or all of such indebtedness, and all interest, cash, Instruments,
Investment Property, financial assets, securities, capital stock, other equity interests, stock options and commodity contracts,
notes, debentures, bonds, promissory notes or other evidences of indebtedness and all other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such indebtedness.

 

“Pledged
Interests” means, collectively, (a) the Pledged Debt, (b) the Pledged Shares and (c) all security entitlements in any
and all of the foregoing.

 

“Pledged
Issuer” has the meaning specified therefor in the definition of the term “Pledged Shares”.

 

“Pledged
Shares” means (a) the shares of capital stock or other equity interests described in Schedule VIII hereto, whether or
not evidenced or represented by any stock certificate, certificated security or other Instrument, issued by the Persons described
in such Schedule VIII (the “Existing Issuers”), (b) the shares of capital stock or other equity interests at
any time and from time to time acquired by a Grantor of any and all Persons now or hereafter existing (such Persons, together
with the Existing Issuers, being hereinafter referred to collectively as the “Pledged Issuers” and each individually
as a “Pledged Issuer”), whether or not evidenced or represented by any stock certificate, certificated security
or other Instrument, and (c) the certificates representing such shares of capital stock, all options and other rights, contractual
or otherwise, in respect thereof and all dividends, distributions, cash, Instruments, Investment Property, financial assets, securities,
capital stock, other equity interests, stock options and commodity contracts, notes, debentures, bonds, promissory notes or other
evidences of indebtedness and all other property (including, without limitation, any stock dividend and any distribution in connection
with a stock split) from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all
of such capital stock.

 

    	- 4 -

    	 

    

 

“Trademark
Licenses” means all licenses, contracts or other agreements, whether written or oral, naming any Grantor as licensor
or licensee and providing for the grant of any right concerning any Trademark, together with any goodwill connected with and symbolized
by any such trademark licenses, contracts or agreements and the right to prepare for sale or lease and sell or lease any and all
Inventory now or hereafter owned by any Grantor and now or hereafter covered by such licenses (including, without limitation,
all Trademark Licenses described in Schedule II hereto).

 

“Trademarks”
means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names,
d/b/a’s, Internet domain names, trade styles, designs, logos and other source or business identifiers and all general intangibles
of like nature, now or hereafter owned, adopted, acquired or used by any Grantor (including, without limitation, all domestic
and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a’s, Internet
domain names, trade styles, designs, logos and other source or business identifiers described in Schedule II hereto), all
applications, registrations and recordings thereof (including, without limitation, applications, registrations and recordings
in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or
any other country or any political subdivision thereof), and all reissues, extensions or renewals thereof, together with all goodwill
of the business symbolized by such marks and all customer lists, formulae and other Records of any Grantor relating to the distribution
of products and services in connection with which any of such marks are used.

 

“Secured
Transaction Documents” means, collectively, the Securities Purchase Agreement, the Notes (as defined in the Securities
Purchase Agreements) and the Security Documents (as defined in the Securities Purchase Agreement).

 

Section
2.Grant of Security Interest. As collateral
security for all of the Obligations, each Grantor hereby pledges and assigns to the Collateral Agent for the benefit of the Buyers,
and grants to the Collateral Agent for the benefit of the Buyers a continuing security interest in, all personal property of such
Grantor, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and
description, tangible or intangible (collectively, but in any case, excluding any Excluded Collateral, the “Collateral”),
including, without limitation, the following:

 

(a)
all Accounts;

 

(b)
all Chattel Paper (whether tangible or electronic);

 

(c)
the Commercial Tort Claims specified on Schedule VI hereto;

 

    	- 5 -

    	 

    

 

(d)
all Deposit Accounts (including, without limitation, all cash, and all other property from time to time deposited therein and
the monies and property in the possession or under the control of the Collateral Agent or a Buyer or any affiliate, representative,
agent or correspondent of the Collateral Agent or a Buyer;

 

(e)
all Documents;

 

(f)
all Equipment;

 

(g)
all Fixtures;

 

(h)
all General Intangibles (including, without limitation, all Payment Intangibles);

 

(i)
all Goods;

 

(j)
all Instruments (including, without limitation, Promissory Notes and each certificated Security);

 

(k)
all Inventory;

 

(l)
all Investment Property;

 

(m)
all Copyrights, Patents and Trademarks, and all Licenses;

 

(n)
all Letter-of-Credit Rights;

 

(o)
all Supporting Obligations;

 

(p)
all Pledged Interests;

 

(q)
all other tangible and intangible personal property of such Grantor (whether or not subject to the Code), including, without limitation,
all bank and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits,
income, benefits, substitutions and replacements of and to any of the property of such Grantor described in the preceding clauses
of this Section 2 (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and
warranties now or hereafter held by such Grantor in respect of any of the items listed above), and all books, correspondence,
files and other Records, including, without limitation, all tapes, desks, cards, Software, data and computer programs in the possession
or under the control of such Grantor or any other Person from time to time acting for such Grantor that at any time evidence or
contain information relating to any of the property described in the preceding clauses of this Section 2 or are otherwise
necessary or helpful in the collection or realization thereof; and

 

(r)
all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing
Collateral; in
each case, howsoever such Grantor’s interest therein may arise or appear (whether by ownership, security interest, claim
or otherwise).

  

    	- 6 -

    	 

    

 

Section
3. Security for Obligations. The security
interest created hereby in the Collateral constitutes continuing collateral security for all of the following obligations, whether
now existing or hereafter incurred (collectively, the “Obligations”):

 

(a)
the prompt payment by each Grantor, as and when due and payable (by scheduled maturity, required prepayment, acceleration, demand
or otherwise), of all amounts from time to time owing by it in respect of the Securities Purchase Agreement, the Notes, the Guaranty
and the other Secured Transaction Documents, including, without limitation, (A) all principal of and interest on the Notes (including,
without limitation, all interest that accrues after the commencement of any Insolvency Proceeding of any Grantor, whether or not
the payment of such interest is unenforceable or is not allowable due to the existence of such Insolvency Proceeding), (B) all
amounts from time to time owing by such Grantor under the Guaranty, and (C) all fees, commissions, expense reimbursements, indemnifications
and all other amounts due or to become due under any of the Secured Transaction Documents; and

 

(b)
the due performance and observance by each Grantor of all of its other obligations from time to time existing in respect of any
of the Secured Transaction Documents for so long as the Notes are outstanding.

 

Section
4.Representations and Warranties.
Each Grantor represents and warrants as of the date hereof as follows:

 

(a)
Schedule I hereto sets forth (i) the exact legal name of such Grantor, and (ii) the organizational identification number
of such Grantor or states that no such organizational identification number exists.

 

(b)
There is no pending or written notice threatening any action, suit, proceeding or claim affecting such Grantor before any governmental
authority or any arbitrator, or any order, judgment or award by any governmental authority or arbitrator, that could reasonably
be expected to materially and adversely affect the grant by such Grantor, or the perfection, of the security interest purported
to be created hereby in the Collateral, or the exercise by the Collateral Agent of any of its rights or remedies hereunder.

 

(c)
All Federal, state and local tax returns and other reports required by applicable law to be filed by such Grantor have been filed,
or extensions have been obtained, and all taxes, assessments and other governmental charges imposed upon such Grantor or any property
of such Grantor (including, without limitation, all federal income and social security taxes on employees’ wages) and which
have become due and payable on or prior to the date hereof have been paid, except to the extent contested in good faith by proper
proceedings which stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to
which adequate reserves have been set aside for the payment thereof in accordance with United States generally accepted accounting
principles consistently applied (“GAAP”).

 

    	- 7 -

    	 

    

 

(d)
All material Equipment, Fixtures, Goods and Inventory of such Grantor now existing are, and all Equipment, Fixtures, Goods and
Inventory of such Grantor hereafter existing will be, located and/or based at the addresses specified therefor in Schedule
III hereto, except that such Grantor will give the Collateral Agent not less than 10 days’ prior written notice of any
change of the location of any such Collateral, other than to locations set forth on Schedule III and with respect to which
the Collateral Agent has filed financing statements and otherwise fully perfected its Liens thereon. Such Grantor’s chief
place of business and chief executive office, the place where such Grantor keeps its Records concerning Accounts and all originals
of all Chattel Paper are located at the addresses specified therefor in Schedule III hereto. None of the Accounts is evidenced
by Promissory Notes or other Instruments. Set forth in Schedule IV hereto is a complete and accurate list, as of the date
of this Agreement, of (i) each Promissory Note, Security and other Instrument owned by each Grantor and (ii) each Deposit Account,
Securities Account and Commodities Account of each Grantor, together with the name and address of each institution at which each
such Account is maintained, the account number for each such Account and a description of the purpose of each such Account.

 

(e)
Each material License now existing is, and any material License entered into in the future will be, the legal, valid and binding
obligation of the parties thereto, enforceable against such parties in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, suretyship or other similar laws and equitable
principles (regardless of whether enforcement is sought in equity or in law). No default under any material License by any such
party has occurred, nor does any defense, offset, deduction or counterclaim exist thereunder in favor of any such party.

 

(f)
Such Grantor owns and controls, or otherwise possesses adequate rights to use, all Trademarks, Patents and Copyrights necessary
to conduct its business in substantially the same manner as conducted as of the date hereof. Schedule II hereto sets forth
a true and complete list of all registered copyrights, issued patents, and Trademarks (including, without limitation, any Internet
domain names and the registrar of each such Internet domain name), annually owned or used by such Grantor as of the date hereof.
To the best knowledge of each Grantor, all such Intellectual Property of such Grantor is subsisting and in full force and effect,
has not been adjudged invalid or unenforceable, is valid and enforceable and has not been abandoned in whole or in part except
as could not reasonably be expected to have a Material Adverse Effect. Except as set forth in Schedule II, no such Intellectual
Property is the subject of any licensing or franchising agreement. Such Grantor has no knowledge of any conflict with the rights
of others to any Intellectual Property and, to the best knowledge of such Grantor, such Grantor is not now infringing or in conflict
with any such rights of others in any material respect, and to the best knowledge of such Grantor, no other Person is now infringing
or in conflict in any material respect with any such properties, assets and rights owned or used by such Grantor except as could
not reasonably be expected to have a Material Adverse Effect. Such Grantor has not received any notice that it is violating or
has violated the trademarks, patents, copyrights, inventions, trade secrets, proprietary information and technology, know-how,
formulae, rights of publicity or other intellectual property rights of any third party except as could not reasonably be expected
to have a Material Adverse Effect.

 

    	- 8 -

    	 

    

 

(g)
Such Grantor is and will be at all times the sole and exclusive owner of, or otherwise has and will have adequate rights in, the
Collateral free and clear of any Liens, except for Permitted Liens on any Collateral. No effective financing statement or other
instrument similar in effect covering all or any part of the Collateral is on file in any recording or filing office except (A)
such as may have been filed in favor of the Collateral Agent relating to this Agreement, and (B) such as may have been filed to
perfect any Permitted Liens.

 

(h)
[Intentionally omitted]

 

(i)
No authorization or approval or other action by, and no notice to or filing with, any governmental authority or other regulatory
body, or any other Person, is required for (i) the grant by such Grantor, or the perfection, of the security interest purported
to be created hereby in the Collateral, or (ii) the exercise by the Collateral Agent of any of its rights and remedies hereunder,
except (A) for the filing under the Uniform Commercial Code as in effect in the applicable jurisdiction of the financing statements,
all of which financing statements, have been duly filed and are in full force and effect, (B) with respect to the perfection of
the security interest created hereby in the Intellectual Property, for the recording of the appropriate Assignment for Security,
substantially in the form of Exhibit A hereto, as applicable, in the United States Patent and Trademark Office or the United
States Copyright Office, as applicable, (C) with respect to the perfection of the security interest created hereby in foreign
Intellectual Property and Licenses, for registrations and filings in jurisdictions located outside of the United States and covering
rights in such jurisdictions relating to the Intellectual Property and Licenses, (D) with respect to the perfection of the security
interest created hereby in titled Collateral, for the submission of an appropriate application requesting that the Lien of the
Collateral Agent be noted on the certificate of title or certificate of ownership, completed and authenticated by the applicable
Grantor, together with the certificate of title or certificate of ownership, with respect to such titled Collateral, to the appropriate
Governmental Authority, (E) with respect to any action that may be necessary to obtain control of Collateral constituting Electronic
Chattel Paper, Investment Property or Letter-of-Credit Rights, the taking of such actions, and (F) the Collateral Agent’s
having possession of all Documents, Chattel Paper, Instruments and cash constituting Collateral.

 

(j)
This Agreement creates in favor of the Collateral Agent a legal, valid and enforceable security interest in the Collateral, as
security for the Obligations. The Collateral Agent’s having possession of all Instruments and cash constituting Collateral
from time to time, the recording of the appropriate Assignment for Security executed pursuant hereto in the United States Patent
and Trademark Office and the United States Copyright Office, as applicable, and the filing of the financing statements and the
other filings and recordings, as applicable, described in Schedule V hereto and, with respect to the Intellectual Property
hereafter existing and not covered by an appropriate Assignment for Security, the recording in the United States Patent and Trademark
Office or the United States Copyright Office, as applicable, of appropriate instruments of assignment, result in the perfection
of such security interests, in each case, as and to the extent such security interests can be perfected by taking all actions
required to be taken pursuant to the terms of this Agreement. Such security interests in such Collateral are, or in the case of
Collateral in which such Grantor obtains rights after the date hereof, will be, perfected, first priority security interests,
subject only to Permitted Liens and the recording of such instruments of assignment, in each case, as and to the extent such security
interests can be perfected by taking all actions required to be taken pursuant to the terms of this Agreement. Such recordings
and filings and all other action necessary or desirable to perfect and protect such security interest have been duly taken, except
for the Collateral Agent’s having possession of Instruments and cash constituting Collateral after the date hereof and the
other filings and recordations described in Section 4(i) hereof.

 

    	- 9 -

    	 

    

 

(k)
As of the date hereof, such Grantor does not hold any Commercial Tort Claims nor is such Grantor aware of any such pending claims,
except for such claims described in Schedule VI.

 

(l)
Each of the Grantors (other than the Company) is a wholly-owned Subsidiary of the Company and are the only Subsidiaries of the
Company, as of the date hereof.

 

Section
5. Covenants as to the Collateral. So
long as any of the Obligations (other than contingent obligations for which no claim has been asserted) shall remain outstanding,
unless the Collateral Agent shall otherwise consent in writing:

 

(a)
Further Assurances. Each Grantor will at its expense, at any time and from time to time, promptly execute and deliver all
further instruments and documents and take all further action that the Collateral Agent may reasonably request in order to: (i)
perfect and protect the security interest purported to be created hereby; (ii) enable the Collateral Agent to exercise and enforce
its rights and remedies hereunder in respect of the Collateral; or (iii) otherwise effect the purposes of this Agreement, including,
without limitation: (A) marking conspicuously all Chattel Paper and each License and, at the request of the Collateral Agent,
each of its Records pertaining to the Collateral with a legend, in form and substance satisfactory to the Collateral Agent, indicating
that such Chattel Paper, License or Collateral is subject to the security interest created hereby, (B) delivering and pledging
to the Collateral Agent hereunder each Promissory Note, Security, Chattel Paper or other Instrument, now or hereafter owned by
such Grantor, duly endorsed and accompanied by executed instruments of transfer or assignment, all in form and substance satisfactory
to the Collateral Agent, (C) executing and filing (to the extent, if any, that such Grantor’s signature is required thereon)
or authenticating the filing of, such financing or continuation statements, or amendments thereto, as may be necessary or desirable
or that the Collateral Agent may request in order to perfect and preserve the security interest purported to be created hereby,
(D) furnishing to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral in each case as the Collateral Agent may reasonably request, all in reasonable
detail, (E) if any Collateral shall be in the possession of a third party, notifying such Person of the Collateral Agent’s
security interest created hereby and obtaining a written acknowledgment from such Person that such Person holds possession of
the Collateral for the benefit of the Collateral Agent, which such written acknowledgement shall be in form and substance satisfactory
to the Collateral Agent, (F) if at any time after the date hereof, such Grantor acquires or holds any Commercial Tort Claim having
a value of $25,000 or more in any proceeding in a court of competent jurisdiction, promptly notifying the Collateral Agent in
a writing signed by such Grantor setting forth a brief description of such Commercial Tort Claim and granting to the Collateral
Agent a security interest therein and in the proceeds thereof, which writing shall incorporate the provisions hereof and shall
be in form and substance satisfactory to the Collateral Agent, (G) if requested by the Collateral Agent, upon the acquisition
after the date hereof by such Grantor of any motor vehicle or other Equipment having a value of $25,000 or more, subject to a
certificate of title or ownership (other than a Motor Vehicle or Equipment that is subject to a purchase money security interest),
causing the Collateral Agent to be listed as the lienholder on such certificate of title or ownership and delivering evidence
of the same to the Collateral Agent in accordance with the Securities Purchase Agreement; and (H) taking all actions required
by any earlier versions of the Uniform Commercial Code or by other law, as applicable, in any relevant Uniform Commercial Code
jurisdiction, or by other law as applicable in any foreign jurisdiction.

 

    	- 10 -

    	 

    

 

(b)
Location of Equipment and Inventory. Each Grantor will keep the Equipment and Inventory (other than as may be out for repair
or refurbishment, or in the possession of employees or customers in the ordinary course of business) at the locations specified
therefor in Section 4(g) hereof or, upon not less than ten (10) days’ prior written notice to the Collateral Agent
accompanied by a new Schedule V hereto indicating each new location of the Equipment and Inventory, at such other locations
in the United States.

 

(c)
Condition of Equipment. Each Grantor will maintain or cause the Equipment (necessary or useful to its business) to be maintained
and preserved in good condition, repair and working order, ordinary wear and tear excepted, and will forthwith, or in the case
of any loss or damage to any material Equipment of such Grantor within a commercially reasonable time after the occurrence thereof,
make or cause to be made all repairs, replacements and other improvements in connection therewith which are necessary or desirable,
consistent with past practice, or which the Collateral Agent may reasonably request to such end. Such Grantor will promptly furnish
to the Collateral Agent a statement describing in reasonable detail any such loss or damage to any such Equipment.

 

(d)
Taxes, Etc. Each Grantor agrees to pay promptly when due all material property and other material taxes, assessments and
governmental charges or levies imposed upon the Equipment and Inventory, except to the extent the validity thereof is being contested
in good faith by proper proceedings which stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof
and with respect to which adequate reserves in accordance with GAAP have been set aside for the payment thereof.

 

(e)
Insurance.

 

(i)
Each Grantor will, at its own expense, maintain insurance (including, without limitation, commercial general liability and property
insurance) with respect to the Equipment and Inventory in such amounts, against such risks, in such form and with responsible
and reputable insurance companies or associations as is required by any governmental authority having jurisdiction with respect
thereto or as is carried by such Grantor as of the date hereof and in any event, in amount, adequacy and scope reasonably satisfactory
to the Collateral Agent. Unless otherwise agreed to by the Collateral Agent, each such policy for liability insurance shall provide
for all losses to be paid on behalf of the Collateral Agent and such Grantor as their respective interests may appear, and each
policy for property damage insurance shall provide for all losses to be adjusted with, and paid directly to, the Collateral Agent.
Unless otherwise agreed to by the Collateral Agent, each such policy shall in addition (A) name the Collateral Agent as an additional
insured party thereunder (without any representation or warranty by or obligation upon the Collateral Agent) as their interests
may appear, (B) contain an agreement by the insurer that any loss thereunder shall be payable to the Collateral Agent on its own
account notwithstanding any action, inaction or breach of representation or warranty by such Grantor, (C) provide that there shall
be no recourse against the Collateral Agent for payment of premiums or other amounts with respect thereto, and (D) provide that
at least 30 days’ prior written notice of cancellation, lapse, expiration or other adverse change shall be given to the
Collateral Agent by the insurer. Such Grantor will, if so reasonably requested by the Collateral Agent, deliver to the Collateral
Agent original or duplicate policies of such insurance and, as often as the Collateral Agent may reasonably request, a report
of a reputable insurance broker with respect to such insurance. Such Grantor will also, at the reasonable request of the Collateral
Agent, execute and deliver instruments of assignment of such insurance policies and cause the respective insurers to acknowledge
notice of such assignment.

 

    	- 11 -

    	 

    

 

(ii)
Reimbursement under any liability insurance maintained by a Grantor pursuant to this Section 5(e) may be paid directly
to the Person who shall have incurred liability covered by such insurance.

 

(iii)
All insurance payments received by any Grantor during the continuation of any Event of Default in respect of such Equipment or
Inventory shall be paid to the Collateral Agent and applied as specified in Section 7(b) hereof.

 

(f)
Provisions Concerning the Accounts and the Licenses.

 

(i)
Each Grantor will (A) give the Collateral Agent at least ten (10) days’ prior written notice of any change in such Grantor’s
name, identity or organizational structure, (B) maintain its jurisdiction of incorporation as set forth in Section 4(b)
hereto, (C) immediately notify the Collateral Agent upon obtaining an organizational identification number, if on the date hereof
such Grantor did not have such identification number, and (D) keep adequate records concerning the Accounts and Chattel Paper.

 

(ii)
Each Grantor will, except as otherwise provided in this subsection (f), continue to use commercially reasonable efforts to collect,
at its own expense, all amounts due or to become due under the Accounts. In connection with such collections, such Grantor may
(and, at the Collateral Agent’s direction, will) take such action as such Grantor or the Collateral Agent may deem necessary
or advisable to enforce collection or performance of the Accounts; provided, however, that the Collateral Agent
shall have the right at any time, upon the occurrence and during the continuance of an Event of Default, to notify the account
debtors or obligors under any Accounts of the assignment of such Accounts to the Collateral Agent and to direct such account debtors
or obligors to make payment of all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent or
its designated agent and, upon such notification and at the expense of such Grantor and to the extent permitted by law, to enforce
collection of any such Accounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the
same extent as such Grantor might have done. After receipt by a Grantor of a notice from the Collateral Agent that the Collateral
Agent has notified, intends to notify, or has enforced or intends to enforce a Grantor’s rights against the account debtors
or obligors under any Accounts as referred to in the proviso to the immediately preceding sentence, (A) all amounts and proceeds
(including Instruments) received by such Grantor in respect of the Accounts shall be received in trust for the benefit of the
Collateral Agent hereunder, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral
Agent in the same form as so received (with any necessary endorsement) to be held as cash collateral and applied as specified
in Section 7(b) hereof, and (B) such Grantor will not adjust, settle or compromise the amount or payment of any Account
or release wholly or partly any account debtor or obligor thereof or allow any credit or discount thereon. In addition, upon the
occurrence and during the continuance of an Event of Default, the Collateral Agent may (in its sole and absolute discretion) direct
any or all of the banks and financial institutions with which such Grantor either maintains a Deposit Account or a lockbox or
deposits the proceeds of any Accounts to send immediately to the Collateral Agent by wire transfer (to such account as the Collateral
Agent shall specify, or in such other manner as the Collateral Agent shall direct) all or a portion of such securities, cash,
investments and other items held by such institution. Any such securities, cash, investments and other items so received by the
Collateral Agent shall (in the sole and absolute discretion of the Collateral Agent) be applied to the repayment of the Obligations
or distributed in accordance with Section 7 hereof.

 

    	- 12 -

    	 

    

  

(iii)
Upon the occurrence and during the continuance of any material breach or default under any material License by any party thereto
other than a Grantor, the Grantor party thereto will, promptly after obtaining knowledge thereof, give the Collateral Agent written
notice of the nature and duration thereof, specifying what action, if any, it has taken and proposes to take with respect thereto
and thereafter will take reasonable steps to protect and preserve its rights and remedies in respect of such breach or default,
or will obtain or acquire an appropriate substitute License.

 

(iv)
[Intentionally omitted]

 

(v)
Each Grantor will, in accordance with its reasonable business judgment, exercise promptly and diligently each and every right
which it may have under each material License (other than any right of termination) and will duly perform and observe in all respects
all of its obligations under each material License and will take all action reasonably necessary to maintain such Licenses in
full force and effect.

 

(g)
Transfers and Other Liens.

 

(i)
No Grantor will sell, assign (by operation of law or otherwise), lease, license, exchange or otherwise transfer or dispose of
any of the Collateral, except (A) Inventory in the ordinary course of business, (B) worn-out or obsolete assets not necessary
to the business, (C) dispositions not otherwise permitted hereunder which are made for fair market value; provided, that (i) at
the time of any disposition, no Event of Default shall exist or shall result from such disposition, (ii) 100% of the aggregate
sales price from such disposition shall be paid in cash, and (iii) the aggregate fair market value of all assets so sold by the
Grantors, together, shall not exceed in any $25,000 in any 12 month period, (D) dispositions of cash equivalents for fair market
value, (E) dispositions among Grantors, (F) discounting, sale, write-off or forgiveness, without recourse, of delinquent accounts
receivable in the ordinary course of business, but only in connection with the compromise or collection thereof, (G) any disposition
to the extent caused by any involuntary loss, destruction, damage or other casualty or any condemnation, seizure or taking, by
exercise of the power of eminent domain or otherwise, or confiscation or requisition of use of any property, (H) the lapse or
disposition of registered Patents, Trademarks and other Intellectual Property of any Grantor to the extent determined by such
Grantor to no longer be material to the conduct of its business, (I) non-exclusive licenses and sublicenses granted by a Grantor
and leases or subleases (by a Grantor as lessor or sublessor) to third parties not materially interfering with the business of
the Grantors, (J) exclusive licenses and sublicenses granted by a Grantor to third parties solely for exploitation and use outside
of North America and not materially interfering with the business of the Grantors, (K) the contemporaneous exchange of property
for property of a like kind, to the extent that the property received in such exchange is of a value equivalent to the value of
the property exchanged and (L) sales of accounts receivables of a Grantor in connection with a factoring facility provided to
a Grantor by a third party that is not an affiliate of the Company or any Grantor; provided, that any such sale of accounts
receivable shall be made (1) on a non-recourse basis to the Company and its Subsidiaries, (2) at a discount of no more than 10%,
and (3) otherwise on customary market terms.

 

    	- 13 -

    	 

    

 

(ii)
No Grantor will create, suffer to exist or grant any Lien upon or with respect to any Collateral other than a Permitted Lien.

 

(h)
Intellectual Property.

 

(i)
If applicable, each Grantor shall, upon the Collateral Agent’s written request, duly execute and deliver the applicable
Assignment for Security in the form attached hereto as Exhibit A. Each Grantor (either itself or through licensees) will,
and will cause each licensee thereof to, in accordance with its reasonable business judgment, take all action necessary to maintain
all of the Intellectual Property in full force and effect, including, without limitation, using the proper statutory notices and
markings and using the Trademarks on each applicable trademark class of goods in order to so maintain the Trademarks in full force
and free from any claim of abandonment for non-use, and such Grantor will not (nor permit any licensee thereof to) do any act
or knowingly omit to do any act whereby any Intellectual Property may become invalidated; provided, however, that
so long as no notice to the contrary has been given by the Collateral Agent during the continuance of any Event of Default, such
Grantor shall not have an obligation to use or to maintain any Intellectual Property (A) that relates solely to any product or
work, that has been, or is in the process of being, discontinued, abandoned or terminated, (B) that is being replaced with Intellectual
Property substantially similar to the Intellectual Property that may be abandoned or otherwise become invalid, so long as the
failure to use or maintain such Intellectual Property does not materially adversely affect the validity of such replacement Intellectual
Property and so long as such replacement Intellectual Property is subject to the Lien created by this Agreement or (C) that is
substantially the same as another Intellectual Property that is in full force, so long the failure to use or maintain such Intellectual
Property does not materially adversely affect the validity of such replacement Intellectual Property and so long as such other
Intellectual Property is subject to the Lien and security interest created by this Agreement. Each Grantor will, in accordance
with its reasonable business judgment, cause to be taken all necessary steps in any proceeding before the United States Patent
and Trademark Office and the United States Copyright Office or any similar office or agency in any other country or political
subdivision thereof to maintain each registration of the Intellectual Property (other than the Intellectual Property described
in the proviso to the immediately preceding sentence), including, without limitation, filing of renewals, affidavits of use, affidavits
of incontestability and opposition, interference and cancellation proceedings and payment of maintenance fees, filing fees, taxes
or other governmental fees in the ordinary course of business. If any material Intellectual Property (other than Intellectual
Property described in the proviso to the first sentence of subsection (i) of this clause (h)) is infringed, misappropriated, diluted
or otherwise violated in any material respect by a third party, such Grantor shall (x) upon learning of such infringement, misappropriation,
dilution or other violation, promptly notify the Collateral Agent and (y) to the extent such Grantor shall deem appropriate under
the circumstances, promptly sue for infringement, misappropriation, dilution or other violation, seek injunctive relief where
appropriate and recover any and all damages for such infringement, misappropriation, dilution or other violation, or take such
other actions as such Grantor shall deem appropriate under the circumstances to protect such Intellectual Property. Each Grantor
shall furnish to the Collateral Agent from time to time upon its reasonable request statements and schedules further identifying
and describing the Intellectual Property and Licenses and such other reports in connection with the Intellectual Property and
Licenses as the Collateral Agent may reasonably request, all in reasonable detail and promptly upon request of the Collateral
Agent, following receipt by the Collateral Agent of any such statements, schedules or reports, such Grantor shall modify this
Agreement by amending Schedule II hereto, as the case may be, to include any Intellectual Property which becomes part of
the Collateral under this Agreement and shall execute and authenticate such documents and do such acts as shall be necessary or,
in the judgment of the Collateral Agent, desirable to subject such Intellectual Property to the Lien and security interest created
by this Agreement. 

 

    	- 14 -

    	 

    

 

 

(ii)
[Intentionally omitted]

 

(iii)
[Intentionally omitted]

 

(i)       Deposit,
Commodities and Securities Accounts. Upon the Collateral Agent’s request and unless otherwise agreed by the Collateral
Agent, each Grantor shall cause each bank and other financial institution with an account referred to in Schedule IV hereto
to execute and deliver to the Collateral Agent a control agreement, in form and substance reasonably satisfactory to the Collateral
Agent, duly executed by such Grantor and such bank or financial institution, or enter into other arrangements in form and substance
reasonably satisfactory to the Collateral Agent, pursuant to which such institution shall irrevocably agree, inter alia,
that (unless otherwise agreed by the Collateral Agent) (i) it will comply at any time with the instructions originated by the
Collateral Agent to such bank or financial institution directing the disposition of cash, Commodity Contracts, securities, Investment
Property and other items from time to time credited to such account, without further consent of such Grantor, which instructions
the Collateral Agent will not give to such bank or other financial institution in the absence of a continuing Event of Default,
(ii) all cash, Commodity Contracts, securities, Investment Property and other items of such Grantor deposited with such institution
shall be subject to a perfected, first priority security interest in favor of the Collateral Agent, (iii) any right of set off,
banker’s Lien or other similar Lien, security interest or encumbrance shall be fully waived as against the Collateral Agent,
and (iv) upon receipt of written notice from the Collateral Agent during the continuance of an Event of Default, such bank or
financial institution shall immediately send to the Collateral Agent by wire transfer (to such account as the Collateral Agent
shall specify, or in such other manner as the Collateral Agent shall direct) all such cash, the value of any Commodity Contracts,
securities, Investment Property and other items held by it. Without prior written notice to the Collateral Agent, such Grantor
shall not make or maintain any Deposit Account, Commodity Account or Securities Account except for the accounts set forth in Schedule
IV hereto. The provisions of this paragraph 5(i) shall not apply to (i) Deposit Accounts for which the Collateral Agent is
the depositary, (ii) Deposit Accounts specially and exclusively used for payroll, payroll taxes and other employee wage and benefit
payments to or for the benefit of a Grantor’s salaried employees, and (iii) Deposit Accounts not having in excess of $25,000
in any three (3) consecutive business days.

 

    	- 15 -

    	 

    

 

(j)
[Intentionally omitted.]

 

(k)
Control. Each Grantor hereby agrees to take any or all action that may be necessary or desirable or that the Collateral
Agent may reasonably request in order for the Collateral Agent to obtain control in accordance with Sections 9-105 – 9-107
of the Code with respect to the following Collateral having a value in excess of $25,000: (i) Electronic Chattel Paper, (ii) Investment
Property, (iii) Pledged Interests and (iv) Letter-of-Credit Rights.

 

(l)
Inspection and Reporting. Each Grantor shall permit the Collateral Agent, or any agent or representatives thereof or such
professionals or other Persons as the Collateral Agent may designate, not more than once a year in the absence of an Event of
Default, (i) to examine and make copies of and abstracts from such Grantor’s records and books of account, (ii) to visit
and inspect its properties, (iii) to verify materials, leases, Instruments, Accounts, Inventory and other assets of such Grantor
from time to time, (iii) to conduct audits, physical counts, appraisals and/or valuations, examinations at the locations of such
Grantor. Each Grantor shall also permit the Collateral Agent, or any agent or representatives thereof or such professionals or
other Persons as the Collateral Agent may designate to discuss such Grantor’s affairs, finances and accounts with any of
its officers subject to the execution by the Collateral Agent or its designee(s) of a mutually agreeable confidentiality agreement.

 

(m)
Future Subsidiaries. If any Grantor shall hereafter create or acquire any Subsidiary (other than joint ventures for which
the Grantors, taken as a whole, control less than 50% of the ordinary voting power with respect to the equity interests of such
joint venture), simultaneously with the creation of acquisition of any such Subsidiary, such Grantor shall cause such Subsidiary
to become a party to this Agreement as an additional “Grantor” hereunder and to become a party to the Guaranty as
an additional “Guarantor” thereunder, and to duly execute and/or deliver such opinions of counsel and other documents,
each in form and substance acceptable to the Collateral Agent, as the Collateral Agent shall reasonably request with respect thereto.

 

    	- 16 -

    	 

    

 

Section
6. Additional Provisions Concerning the Collateral.

 

(a)
Each Grantor hereby (i) authorizes the Collateral Agent to file one or more Uniform Commercial Code financing or continuation
statements, and amendments thereto, relating to the Collateral (including, without limitation, financing statements describing
the Collateral as “all assets” or “all personal property” or words of similar effect) and (ii) ratifies
such authorization to the extent that the Collateral Agent has filed any such financing or continuation statements, or amendments
thereto, prior to the date hereof. A photocopy or other reproduction of this Agreement or any financing statement covering the
Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.

 

(b)
Each Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact and proxy, with full authority in the place
and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral Agent’s discretion,
so long as an Event of Default shall have occurred and is continuing, to take any action and to execute any instrument which the
Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement (subject to the rights of such Grantor
under Section 5 hereof), including, without limitation, (i) to obtain and adjust insurance required to be paid to the Collateral
Agent pursuant to Section 5(e) hereof, (ii) to ask, demand, collect, sue for, recover, compound, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any Collateral, (iii) to receive, endorse, and collect any
drafts or other instruments, documents and chattel paper in connection with clause (i) or (ii) above, (iv) to file any claims
or take any action or institute any proceedings which the Collateral Agent may deem necessary or desirable for the collection
of any Collateral or otherwise to enforce the rights of the Collateral Agent and the Buyers with respect to any Collateral, and
(v) to execute assignments, licenses and other documents to enforce the rights of the Collateral Agent and the Buyers with respect
to any Collateral. This power is coupled with an interest and is irrevocable until the complete conversion of all of the Company’s
obligations under the Notes to equity securities of the Company and/or payment in full in cash of all obligations under the Notes
(together with any matured indemnification obligations as of the date of such conversion and/or payment, but excluding any inchoate
or unmatured contingent indemnification obligations).

 

(c)
For the purpose of enabling the Collateral Agent to exercise rights and remedies hereunder, at such time as the Collateral Agent
shall be lawfully entitled to exercise such rights and remedies upon and during an Event of Default, and for no other purpose,
each Grantor hereby grants to the Collateral Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable
without payment of royalty or other compensation to such Grantor) to use, assign, license or sublicense any Intellectual Property
now owned or hereafter acquired by such Grantor, wherever the same may be located, including in such license reasonable access
to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation
or printout thereof. Notwithstanding anything contained herein to the contrary, but subject to the provisions of the Securities
Purchase Agreement that limit the right of such Grantor to dispose of its property and Section 5(h) hereof, so long as
no written notice to the contrary has been given to Grantors by the Collateral Agent during any Event of Default, such Grantor
may exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual
Property in the ordinary course of its business. In furtherance of the foregoing, unless an Event of Default shall have occurred
and be continuing, the Collateral Agent shall from time to time, upon the request of a Grantor, execute and deliver any instruments,
certificates or other documents, in the form so requested, which such Grantor shall have certified are appropriate (in such Grantor’s
judgment) to allow it to take any action permitted above (including relinquishment of the license provided pursuant to this clause
(c) as to any Intellectual Property). Further, upon the complete conversion of all of the Company’s obligations under the
Notes to equity securities of the Company and/or payment in full in cash of all obligations under the Notes (together with any
matured indemnification obligations as of the date of such conversion and/or payment, but excluding any inchoate or unmatured
contingent indemnification obligations), the Collateral Agent (subject to Section 10(e) hereof) shall be automatically
released and reassigned to such Grantor all of the Collateral Agent’s right, title and interest in and to the Intellectual
Property, and the Licenses, all without recourse, representation or warranty whatsoever. The exercise of rights and remedies hereunder
by the Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by such
Grantor in accordance with the second sentence of this clause (c).

    	- 17 -

    	 

    

 

(d)
If a Grantor fails to perform any agreement contained herein, the Collateral Agent may during an Event of Default itself perform,
or cause performance of, such agreement or obligation, in the name of such Grantor or the Collateral Agent, and the expenses of
the Collateral Agent incurred in connection therewith shall be payable by such Grantor pursuant to Section 8 hereof and
shall be secured by the Collateral.

 

(e)
The powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose
any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the taking
of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral.

 

(f)
Anything herein to the contrary notwithstanding (i) each Grantor shall remain liable under the Licenses and otherwise with respect
to any of the Collateral to the extent set forth therein to perform all of its obligations thereunder to the same extent as if
this Agreement had not been executed, (ii) the exercise by the Collateral Agent of any of its rights hereunder shall not release
such Grantor from any of its obligations under the Licenses or otherwise in respect of the Collateral, and (iii) the Collateral
Agent shall not have any obligation or liability by reason of this Agreement under the Licenses or with respect to any of the
other Collateral, nor shall the Collateral Agent be obligated to perform any of the obligations or duties of such Grantor thereunder
or to take any action to collect or enforce any claim for payment assigned hereunder.

 

Section
7. Remedies Upon Event of Default. If
any Event of Default shall have occurred and be continuing:

 

    	- 18 -

    	 

    

 

(a)
The Collateral Agent may exercise in respect of the Collateral, in addition to any other rights and remedies provided for herein
or otherwise available to it, all of the rights and remedies of a secured party upon default under the Code (whether or not the
Code applies to the affected Collateral), and also may (i) take absolute control of the Collateral, including, without limitation,
transfer into the Collateral Agent’s name or into the name of its nominee or nominees (to the extent the Collateral Agent
has not theretofore done so) and thereafter receive, for the benefit of the Collateral Agent, all payments made thereon, give
all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though it were the outright
owner thereof, (ii) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the
Collateral Agent forthwith, assemble all or part of its respective Collateral as directed by the Collateral Agent and make it
available to the Collateral Agent at a place or places to be designated by the Collateral Agent that is reasonably convenient
to both parties, and the Collateral Agent may enter into and occupy any premises owned or leased by such Grantor where the Collateral
or any part thereof is located or assembled for a reasonable period in order to effectuate the Collateral Agent’s rights
and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation, and (iii) without notice
except as specified below and without any obligation to prepare or process the Collateral for sale, (A) sell the Collateral or
any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere,
for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the Collateral Agent may
deem commercially reasonable and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as the
Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale or any other disposition
of its respective Collateral shall be required by law, at least ten (10) days’ notice to such Grantor of the time and place
of any public sale or the time after which any private sale or other disposition of its respective Collateral is to be made shall
constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale or other disposition of any Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place
to which it was so adjourned. Each Grantor hereby waives any claims against the Collateral Agent and the Buyers arising by reason
of the fact that the price at which its respective Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale or was less than the aggregate amount of the Obligations, even if the Collateral Agent
accepts the first offer received and does not offer such Collateral to more than one offeree, and waives all rights that such
Grantor may have to require that all or any part of such Collateral be marshalled upon any sale (public or private) thereof. Each
Grantor hereby acknowledges that (i) any such sale of its respective Collateral by the Collateral Agent shall be made without
warranty, (ii) the Collateral Agent may specifically disclaim any warranties of title, possession, quiet enjoyment or the like,
and (iii) such actions set forth in clauses (i) and (ii) above shall not adversely affect the commercial reasonableness of any
such sale of Collateral. In addition to the foregoing, (1) upon written notice to any Grantor from the Collateral Agent, such
Grantor shall cease any use of the Intellectual Property or any trademark, patent or copyright similar thereto for any purpose
described in such notice; (2) the Collateral Agent may, at any time and from time to time, upon 10 days’ prior notice to
such Grantor, license, whether general, special or otherwise, and whether on an exclusive or non-exclusive basis, any of the Intellectual
Property, throughout the universe for such term or terms, on such conditions, and in such manner, as the Collateral Agent shall
in its sole discretion determine to the extent consistent with any restrictions or conditions imposed upon such Grantor with respect
to such Intellectual Property by license or other contractual arrangement; and (2) the Collateral Agent may, at any time, pursuant
to the authority granted in Section 6 hereof (such authority being effective upon the occurrence and during the continuance
of an Event of Default), execute and deliver on behalf of such Grantor, one or more instruments of assignment of the Intellectual
Property (or any application or registration thereof), in form suitable for filing, recording or registration in any country.

 

    	- 19 -

    	 

    

 

(b)
Any cash held by the Collateral Agent as Collateral and all Cash Proceeds received by the Collateral Agent in respect of any sale
of or collection from, or other realization upon, all or any part of the Collateral may, in the discretion of the Collateral Agent,
be held by the Collateral Agent as collateral for, and/or then or at any time thereafter applied (after payment of any amounts
payable to the Collateral Agent pursuant to Section 8 hereof) in whole or in part by the Collateral Agent against, all
or any part of the Obligations in such order as the Collateral Agent shall elect, consistent with the provisions of the Securities
Purchase Agreement. Any surplus of such cash or Cash Proceeds held by the Collateral Agent and remaining after the complete conversion
of all of the Company’s obligations under the Notes to equity securities of the Company and/or payment in full in cash of
all obligations under the Notes (together with any matured indemnification obligations as of the date of such conversion and/or
payment, but excluding any inchoate or unmatured contingent indemnification obligations) shall be paid over to whomsoever shall
be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct.

 

(c)
In the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which the Collateral
Agent and the Buyers are legally entitled, each Grantor shall be liable for the deficiency, together with interest thereon at
the highest rate specified in any of the applicable Secured Transaction Documents for interest on overdue principal thereof or
such other rate as shall be fixed by applicable law, together with the costs of collection and the reasonable fees, costs, expenses
and other client charges of any attorneys employed by the Collateral Agent to collect such deficiency.

 

(d)
Each Grantor hereby acknowledges that if the Collateral Agent complies with any applicable state, provincial, or federal law requirements
in connection with a disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of
any sale or other disposition of the Collateral.

 

(e)
The Collateral Agent shall not be required to marshal any present or future collateral security (including, but not limited to,
this Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such
collateral security or other assurances of payment in any particular order, and all of the Collateral Agent’s rights hereunder
and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights,
however existing or arising. To the extent that each Grantor lawfully may, such Grantor hereby agrees that it will not invoke
any law relating to the marshalling of collateral which might cause delay in or impede the enforcement of the Collateral Agent’s
rights under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of
the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to
the extent that it lawfully may, such Grantor hereby irrevocably waives the benefits of all such laws.

 

    	- 20 -

    	 

    

 

Section
8. Indemnity and Expenses.

 

(a)
Each Grantor agrees, jointly and severally, to defend, protect, indemnify and hold the Collateral Agent and each of the Buyers,
jointly and severally, harmless from and against any and all claims, damages, losses, liabilities, obligations, penalties, fees,
costs and expenses (including, without limitation, reasonable legal fees, costs, expenses, and disbursements of such Person’s
counsel) to the extent that they arise out of or otherwise result from this Agreement (including, without limitation, enforcement
of this Agreement), except claims, losses or liabilities resulting solely and directly from such Person’s gross negligence
or willful misconduct, as determined by a final judgment of a court of competent jurisdiction.

 

(b)
Each Grantor agrees, jointly and severally, to, upon demand, pay to the Collateral Agent the amount of any and all reasonable
costs and expenses, including the reasonable fees, costs, expenses and disbursements of counsel for the Collateral Agent and of
any experts and agents (including, without limitation, any collateral trustee which may act as agent of the Collateral Agent),
which the Collateral Agent may incur in connection with (i) the preparation, negotiation, execution, delivery, recordation, administration,
amendment, waiver or other modification or termination of this Agreement, (ii) the custody, preservation, use or operation of,
or the sale of, collection from, or other realization upon, any Collateral, (iii) the exercise or enforcement of any of the rights
of the Collateral Agent hereunder, or (iv) the failure by any Grantor to perform or observe any of the provisions hereof.

 

Section
9. Notices, Etc. All notices and other
communications provided for hereunder shall be in writing and shall be mailed (by certified mail, postage prepaid and return receipt
requested), telecopied or delivered, if to a Grantor at its address specified below and if to the Collateral Agent to it, at its
address specified below; or as to any such Person, at such other address as shall be designated by such Person in a written notice
to such other Person complying as to delivery with the terms of this Section 9. All such notices and other communications
shall be effective (a) if sent by certified mail, return receipt requested, when received or five days after deposited in the
mails, whichever occurs first, (b) if telecopied or sent by electronic mail, when transmitted (during normal business hours),
or (c) if delivered, upon delivery.

 

Section
10. Miscellaneous.

 

(a)
No amendment of any provision of this Agreement shall be effective unless it is in writing and signed by each Grantor and the
Collateral Agent, and no waiver of any provision of this Agreement, and no consent to any departure by a Grantor therefrom, shall
be effective unless it is in writing and signed by the Collateral Agent, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.

 

    	- 21 -

    	 

    

 

(b)
No failure on the part of the Collateral Agent to exercise, and no delay in exercising, any right hereunder or under any of the
other Secured Transaction Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other right. The rights and remedies of the Collateral Agent
or any Buyer provided herein and in the other Secured Transaction Documents are cumulative and are in addition to, and not exclusive
of, any rights or remedies provided by law. The rights of the Collateral Agent or any Buyer under any of the other Secured Transaction
Documents against any party thereto are not conditional or contingent on any attempt by such Person to exercise any of its rights
under any of the other Secured Transaction Documents against such party or against any other Person, including but not limited
to, any Grantor.

 

(c)
To the extent permitted by applicable law, each Grantor hereby waives promptness, diligence, notice of acceptance and any other
notice with respect to any of the Obligations and this Agreement and any requirement that the Collateral Agent exhaust any right
or take any action against any other Person or any Collateral. Each Grantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated herein and that the waiver set forth in this Section 10(c) is knowingly
made in contemplation of such benefits. The Grantors hereby waive any right to revoke this Agreement, and acknowledge that this
Agreement is continuing in nature and applies to all Obligations, whether existing now or in the future.

 

(d)
No Grantor may exercise any rights that it may now or hereafter acquire against any other Grantor that arise from the existence,
payment, performance or enforcement of any Grantor’s obligations under this Agreement, including, without limitation, any
right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or
remedy of the Collateral Agent against any Grantor or any Collateral, whether or not such claim, remedy or right arises in equity
or under contract, statute or common law, including, without limitation, the right to take or receive from any Grantor, directly
or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim,
remedy or right, unless and until the complete conversion of all of the Company’s obligations under the Notes to equity
securities of the Company and/or payment in full in cash of all obligations under the Notes (together with any matured indemnification
obligations as of the date of such conversion and/or payment, but excluding any inchoate or unmatured contingent indemnification
obligations). If any amount shall be paid to a Grantor in violation of the immediately preceding sentence at any time prior to
the complete conversion of all of the Company’s obligations under the Notes to equity securities of the Company and/or payment
in full in cash of all obligations under the Notes (together with any matured indemnification obligations as of the date of such
conversion and/or payment, but excluding any inchoate or unmatured contingent indemnification obligations), such amount shall
be held in trust for the benefit of the Collateral Agent and shall forthwith be paid to the Collateral Agent to be credited and
applied to the Obligations and all other amounts payable under the Secured Transaction Documents, whether matured or unmatured,
in accordance with the terms of the Secured Transaction Documents, or to be held as Collateral for any Obligations or other amounts
payable under the Secured Transaction Documents thereafter arising.

 

(e)
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or thereof or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

    	- 22 -

    	 

    

  

(f)
This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect until
the complete conversion of all of the Company’s obligations under the Notes to equity securities of the Company and/or payment
in full in cash of all obligations under the Notes (together with any matured indemnification obligations as of the date of such
conversion and/or payment, but excluding any inchoate or unmatured contingent indemnification obligations), and (ii) be binding
on each Grantor and all other Persons who become bound as debtor to this Agreement in accordance with Section 9-203(d) of the
Code and shall inure, together with all rights and remedies of the Collateral Agent and the Buyers hereunder, to the benefit of
the Collateral Agent and the Buyers and their respective permitted successors, transferees and assigns. Without limiting the generality
of clause (ii) of the immediately preceding sentence, without notice to any Grantor, the Collateral Agent and the Buyers may assign
or otherwise transfer their rights and obligations under this Agreement and any of the other Secured Transaction Documents, to
any other Person and such other Person shall thereupon become vested with all of the benefits in respect thereof granted to the
Collateral Agent and the Buyers herein or otherwise. Upon any such assignment or transfer, all references in this Agreement to
the Collateral Agent or any such Buyer shall mean the assignee of the Collateral Agent or such Buyer. None of the rights or obligations
of any Grantor hereunder may be assigned or otherwise transferred without the prior written consent of the Collateral Agent, and
any such assignment or transfer without the consent of the Collateral Agent shall be null and void.

 

(g)
Upon receipt or delivery by any Grantor of any notice in accordance with the terms of this Agreement unless the Company has in
good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the
Company or its Subsidiaries, the Company shall within two (2) Business Days after any such receipt or delivery publicly disclose
such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that
a notice contains material, nonpublic information relating to the Company or its Subsidiaries, the Company so shall indicate to
the Collateral Agent and the Buyers contemporaneously with delivery of such notice, and in the absence of any such indication,
the Collateral Agent and any Buyer shall be allowed to presume that all matters relating to such notice do not constitute material,
nonpublic information relating to the Company or its Subsidiaries.

 

(h)
Upon the complete conversion of all of the Company’s obligations under the Notes to equity securities of the Company and/or
payment in full in cash of all obligations under the Notes (together with any matured indemnification obligations as of the date
of such conversion and/or payment, but excluding any inchoate or unmatured contingent indemnification obligations), (i) this Agreement
and the security interests created hereby shall automatically terminate and all rights to the Collateral shall automatically revert
to the respective Grantor that granted such security interests hereunder, and (ii) the Collateral Agent will, upon such Grantor’s
request and at such Grantor’s expense, (A) return to such Grantor such of the Collateral as shall not have been sold or
otherwise disposed of or applied pursuant to the terms hereof, and (B) execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination, all without any representation, warranty or recourse whatsoever.

 

    	- 23 -

    	 

    

 

(i)
THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS
REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT
OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL
ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

(j)
ANY LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY DOCUMENT RELATED THERETO MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND
APPELLATE COURTS THEREOF, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND IN RESPECT
OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE
OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION,
SUIT OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY THE COURT.

 

(k)
EACH PARTY AND (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT) THE COLLATERAL AGENT WAIVES ANY RIGHT IT MAY HAVE TO TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER
SECURED TRANSACTION DOCUMENTS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR OTHER ACTION OF THE
PARTIES HERETO.

 

(l)
Nothing contained herein shall affect the right of the Collateral Agent to serve process in any other manner permitted by law
or commence legal proceedings or otherwise proceed against any Grantor or any property of such Grantor in any other jurisdiction.

 

(m)
Each Party irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding
referred to in this Section any special, exemplary, punitive or consequential damages.

 

(n)
Section headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any
other purpose.

 

(o)
This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together constitute one in the same Agreement.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    	- 24 -

    	 

    

 

IN
WITNESS WHEREOF, each Grantor has caused this Agreement to be executed and delivered by its officer thereunto duly authorized,
as of the date first above written.

 

	 	ENERPULSE
    TECHNOLOGIES, INC., a Nevada corporation
	 	 	 
	 	By:	 
	 	Name:	                         
	 	Title:	 
	 	 	 
	 	Address
    for Notices:
	 	2451 Alamo
    Ave. NE,
	 	Albuquerque,
    New Mexico 87106
	 	Attention:
    Bryan Templeton,
	 	                   Chief
    Financial Officer
	 	Telephone:
    (505) 842-5201
	 	Facsimile:
    (505) 213-0013

 

 

	 	ENERPULSE
    TECHNOLOGIES, INC., a Delaware corporation
	 	 	 
	 	By:	 
	 	Name:	                         
	 	Title:	 
	 	 	 
	 	Address
    for Notices:
	 	2451 Alamo
    Ave. NE,
	 	Albuquerque,
    New Mexico 87106
	 	Attention:
    Bryan Templeton,
	 	                   Chief
    Financial Officer
	 	Telephone:
    (505) 842-5201
	 	Facsimile:
    (505) 213-0013

 

pledge
and security agreement

 

    	 	 	 

    	 

    

 

ACCEPTED
BY:

 

Passaic
River Capital LLC

as
Collateral Agent

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	Address:	 	 

 

pledge
and security agreement

 

    	 	 	 

    	 

    

 

SCHEDULE
I

LEGAL NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS; STATES OR JURISDICTION OF ORGANIZATION

 

	Legal
    Name:	 	State
    of Organization:	 	Type
    of Organization:	 	Organizational

                                                                                Identification
                                         Number:

	 	 	 	 	 	 	 
	Enerpulse
    Technologies, Inc.	 	Nevada	 	Corporation	 	[_________]
	 	 	 	 	 	 	 
	Enerpulse,
    Inc.	 	Delaware	 	Corporation	 	[_________]

 

    	Sched. I-1 

    	 

    

 

SCHEDULE
II

INTELLECTUAL
PROPERTY AND LICENSES; TRADE NAMES

 

	A.	COPYRIGHTS

 

 1. Registered Copyrights

 

[____________]

 

 2. Copyright Applications

 

[____________]

 

 3. Copyright Licenses

 

[____________]

 

	B.	PATENTS

 

 1. Patents

 

[____________]

 

 2. Patent Applications

 

[____________]

 

 3. Patent Licenses

 

[____________]

 

	C.	TRADEMARKS

 

 1. Registered Trademarks

 

[____________]

 

 2. Trademark Applications

 

[____________]

 

 3. Trademark Licenses

 

[____________]

 

    	Sched. II-1 

    	 

    

 

	D.	OTHER
    PROPRIETARY RIGHTS

 

[____________]

 

		E.	TRADE
                                         NAMES

 

[____________]

 

		F.	NAME
                                         OF, AND EACH TRADE NAME USED BY, EACH PERSON FROM WHICH A GRANTOR HAS ACQUIRED ANY SUBSTANTIAL
                                         PART OF THE COLLATERAL WITHIN THE PRECEDING FIVE YEARS

 

[____________]

 

    	Sched. II-2 

    	 

    

 

SCHEDULE
III

 

LOCATIONS

 

	Grantor:	 	Location:	 	Description:
	 	 	 	 	 
	Enerpulse
    Technologies, Inc.	 	2451
    Alamo Ave. NE,  Albuquerque, New Mexico 87106	 	Chief
    Executive Office
	 	 	 	 	 
	Enerpulse,
    Inc.	 	2451
    Alamo Ave. NE,  Albuquerque, New Mexico 87106	 	Chief
    Executive Office

 

    	Sched. III-1 

    	 

    

 

SCHEDULE
IV

PROMISSORY NOTES, SECURITIES, DEPOSIT ACCOUNTS, SECURITIES ACCOUNTS AND COMMODITIES ACCOUNTS

 

A.
Promissory Notes:

 

[_____________]

 

B.
Securities and Other Instruments:

 

[_____________]

 

C.
Deposit Accounts, Securities Accounts and Commodities Accounts:

 

	Grantor:	 	Name
                                         and Address

                                                                                of
                                         Institution

                                                                                Maintaining

                                                                                Account:
	 	Account
    Number:	 	Type
    of Account:
	 	 	 	 	 	 	 
	[_________]	 	[_________]	 	[_________]	 	[_________]
	 	 	 	 	 	 	 
	[_________]	 	[_________]	 	[_________]	 	[_________]

 

    	Sched. IV-1 

    	 

    

 

SCHEDULE
V

 

UCC-1
FINANCING STATEMENTS

 

	Name
    of Grantor:	 	Secretary
    of State:
	 	 	 
	Enerpulse
    Technologies, Inc.	 	Nevada
	 	 	 
	Enerpulse,
    Inc.	 	Delaware

 

    	Sched. V-1 

    	 

    

 

SCHEDULE
VI

 

COMMERCIAL
TORT CLAIMS

 

[_____________]

 

    	Sched. VI-1 

    	 

    

 

SCHEDULE
VII

PLEDGED DEBT

 

[_____________]

 

    	Sched. VII-1 

    	 

    

 

SCHEDULE
VIII

PLEDGED SHARES

 

	Grantor:	 	Name
    of Pledged Issuer:	 	Number
    of Shares/Units:	 	Percentage
    of Outstanding Shares/Units:	 	Class:	 	Certificate
    Number:
	 	 	 	 	 	 	 	 	 	 	 
	Enerpulse
    Technologies, Inc.	 	Enerpulse,
    Inc.	 	[______]	 	[100]	 	Common
    Stock	 	[_______]

 

    	Sched. VIII-1 

    	 

    

 

EXHIBIT
A

 

ASSIGNMENT
FOR SECURITY

[TRADEMARKS] [PATENTS] [COPYRIGHTS]

 

WHEREAS,
______________________________ (the “Assignor”) [has adopted, used and is using, and holds all right,
title and interest in and to, the trademarks and service marks listed on the annexed Schedule 1A, which trademarks and
service marks are registered or applied for in the United States Patent and Trademark Office (the “Trademarks”)]
[holds all right, title and interest in the letter patents, design patents and utility patents listed on the annexed Schedule
1A, which patents are issued or applied for in the United States Patent and Trademark Office (the “Patents”)]
[holds all right, title and interest in the copyrights listed on the annexed Schedule 1A, which copyrights are registered
in the United States Copyright Office (the “Copyrights”)];

 

WHEREAS,
the Assignor has entered into a Pledge and Security Agreement, dated as of July 15, 2016 (as amended, restated or otherwise modified
from time to time the “Security Agreement”), in favor of Passaic River Capital LLC, as collateral agent for
certain buyers (the “Assignee”);

 

WHEREAS,
pursuant to the Security Agreement, the Assignor has assigned to the Assignee and granted to the Assignee for the benefit of the
Buyers (as defined in the Security Agreement) a continuing security interest in all right, title and interest of the Assignor
in, to and under the [Trademarks, together with, among other things, the good-will of the business symbolized by the Trademarks]
[Patents] [Copyrights] and the applications and registrations thereof, and all proceeds thereof, including, without limitation,
any and all causes of action which may exist by reason of infringement thereof and any and all damages arising from past, present
and future violations thereof (the “Collateral”), to secure the payment, performance and observance of the
“Obligations” (as defined in the Security Agreement);

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Assignor does
hereby pledge, convey, sell, assign, transfer and set over unto the Assignee and grants to the Assignee for the benefit of the
Buyers a continuing security interest in the Collateral to secure the prompt payment, performance and for the benefit of the Buyers
observance of the Obligations.

 

The
Assignor does hereby further acknowledge and affirm that the rights and remedies of the Assignee with respect to the Collateral
are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference
as if fully set forth herein.

 

    	Exh. A-1 

    	 

    

 

 

IN
WITNESS WHEREOF, the Assignor has caused this Assignment for Security to be duly executed by its officer thereunto duly authorized
as of _____________, 20__

 

	 	[GRANTOR]
	 	 	 
	 	By:	               
	 	Name:	 
	 	Title:
    	 

 

    	Exh. A-2 

    	 

    

  

SCHEDULE
1A TO ASSIGNMENT FOR SECURITY

[Trademarks and Trademark Applications]

[Patent
and Patent Applications]

[Copyright
and Copyright Applications]

Owned
by ______________________________

 

    	Exh. A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00266-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00266-of-00352.parquet"}]]