Document:

Exhibit 10.1

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR PROVINCE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY CANADIAN NATIONAL OR PROVINCIAL
SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR ANY CANADIAN NATIONAL OR PROVINCIAL SECURITIES LAW OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR ANY CANADIAN NATIONAL OR PROVINCIAL SECURITIES LAW AND IN
ACCORDANCE WITH APPLICABLE STATE OR PROVINCIAL SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 

 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION,
THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (I) JULY
15, 2015, AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

 

Date of Issuance: July
15, 2015

 

$n

 

YAPPN CORP.

12% SECURED DEBENTURE

DUE DECEMBER 31, 2015

 

THIS DEBENTURE is a duly
authorized and issued 12% Secured Debenture of Yappn Corp., a Delaware corporation, having a principal place of business at 1001
Avenue of the Americas, 11th Floor, New York, NY 10018 (the "Company"), designated as its 12% Secured Debenture,
due December 31, 2015 (the "Debenture").

 

FOR
VALUE RECEIVED, the Company promises to pay to n
or his registered assigns (the "Holder"), the principal sum of n
Dollars ($n) on December
31, 2015 or such earlier date as the Debenture is required or permitted to be repaid as provided hereunder (the "Maturity
Date"), and to pay interest to the Holder on the aggregate outstanding principal amount of this Debenture at the rate of 12%
per annum, payable on the Maturity Date (except that, if any such date is not a Business Day, then such payment shall be due on
the next succeeding Business Day). 

 

This
Debenture is derived from a Subscription Agreement between the Holder and the Company (the
“Subscription Agreement”) dated July _____, 2015 and incorporates the terms and conditions contained in the
Subscription Agreement by reference. The lead Debenture Holder shall be Winterberry Investments Inc.
(“Winterberry” or the “Lead Debenture Holder”), including with respect to the covenants of the
Company, default by the Company and the remedies of the Holder. The Debentures shall, however, rank equally with one
another.

 

    	 

    	 

    

 

Prior to December 31, 2015, the Debentures
and all accrued interest shall become immediately due and payable upon written notice being provided by Winterberry to the Company
in any of the following circumstances:

 

		(i)	at any time after September 15, 2015, if any of the following have not been completed on or before
September 15, 2015:

 

		(a)	the Closing, as defined in an Asset Purchase Agreement dated July 6, 2015 entered into among the
Company, Intertainment Media Inc. (“Intertainment”), Ortsbo Inc. and Winterberry (the “Definitive Agreement”);
	 	 	 
		(b)	a consolidation of the outstanding common shares of the Company on a 1 for 10 basis; or
	 	 	 
		(c)	a consolidation of the outstanding common shares of Intertainment on a 1 for 10 basis; or

 

		(ii)	upon completion of an equity financing by the Company of an aggregate minimum amount of $10 million.

 

THE COMPANY MAY PREPAY ANY PORTION OF THE PRINCIPAL
AMOUNT OF THIS DEBENTURE TOGETHGER WITH ALL ACCRUED INTEREST WITHOUT THE PRIOR WRITTEN CONSENT OF THE HOLDER.

 

This Debenture is subject
to the following additional provisions:

 

Section 1. This Debenture
is exchangeable for an equal aggregate principal amount of Debentures of different authorized denominations, as requested by the
Holder surrendering the same, subject to regulatory requirements. No service charge will be made for such registration of transfer
or exchange.

 

Section 2. This Debenture
has been issued subject to certain investment representations of the original Holder set forth in the Subscription Agreement. Interest
shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and shall accrue daily commencing
on the Original Issue Date until payment in full of the outstanding principal, together with all accrued and unpaid interest, liquidated
damages and other amounts which may become due hereunder, has been made. Any payment hereunder will be paid to the Holder in whose
name this Debenture is registered on the records of the Company regarding registration and transfers of this Debenture (the “Debenture
Register”). Prior to due presentment to the Company for transfer of this Debenture, the Company and any agent of the
Company may treat the Holder in whose name this Debenture is duly registered on the Debenture Register as the owner hereof for
the purpose of receiving payment as herein provided and for all other purposes, whether or not this Debenture is overdue, and neither
the Company nor any such agent shall be affected by notice to the contrary.

 

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Section 3. Events of Default.

 

(a) "Event of Default",
wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary
or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of
any administrative or governmental body):

 

i) any default in the payment
of the principal of, interest (including Late Fees) on, or liquidated damages in respect of, any Debentures, free of any claim
of subordination, as and when the same shall become due and payable which default is not cured, if possible to cure, within 10
days of notice of such default sent by the Lead Debenture Holder;

 

ii) the Company or any
of its subsidiaries shall commence, or there shall be commenced against the Company or any such subsidiary a case under any applicable
bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company commences any other proceeding
under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar
law of any jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary thereof or there is commenced
against the Company or any subsidiary thereof any such bankruptcy, insolvency or other proceeding which remains undismissed for
a period of 60 days; or the Company or any subsidiary thereof is adjudicated insolvent or bankrupt; or any order of relief or other
order approving any such case or proceeding is entered; or the Company or any subsidiary thereof suffers any appointment of any
custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60
days; or the Company or any subsidiary thereof makes a general assignment for the benefit of creditors; or the Company shall fail
to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company
or any subsidiary thereof shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring
of its debts; or the Company or any subsidiary thereof shall by any act or failure to act expressly indicate its consent to, approval
of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary thereof
for the purpose of effecting any of the foregoing;

 

iii) the Company breaches
any covenant in the Subscription Agreement or hereunder, which breach is not cured, if possible to cure, within 10 days of notice
of such breach sent by the Lead Debenture Holder.

 

(b) If any Event of Default
occurs and is continuing, the full principal amount of this Debenture, together with interest and other amounts owing in respect
thereof, to the date of acceleration shall become at the Holder's election, immediately due and payable in cash.

 

Section 4. Negative Covenants.

 

This Debenture contains
the following covenants of the Company satisfactory to Winterberry:

 

(a) that the Company will
not, and will not permit any of its subsidiaries to, directly or indirectly, issue, incur, guarantee, assume, become liable, contingently
or otherwise, with respect to or otherwise become responsible for the payment of any indebtedness except in the ordinary course
of business;

 

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(b) the Company will not,
and will not permit any of its subsidiaries to, make payment of any dividend or other distribution in respect of such corporation’s
capital stock, purchase, redeem, or otherwise acquire or retire for value any capital stock, option, warrant, or any other right
to acquire shares of capital stock of such corporation, make any principal payment on, or purchase, repurchase, redeem or otherwise
acquire retire for value prior to any scheduled maturity or scheduled repayment of any indebtedness which is subordinated in right
of payment to the Debentures;

 

(c) that the Company will
not, and will not permit any of its subsidiaries to, sell any asset of such corporation except on conditions acceptable to Winterberry
or except in the ordinary course of business;

 

(d) that the Company will
not, and will not permit any of its subsidiaries to, create, incur, assume or suffer to exist any liens upon any of their respective
properties securing any indebtedness of the Company or the subsidiaries unless such indebtedness is expressly subordinated to the
Debentures;

 

(e) that the Company will
not amalgamate, consolidate or merge with any individual, corporation, partnership, joint venture, trust, estate, unincorporated
organization or government or any agency or political subdivision thereof ("Person") or convey, transfer or lease
all or substantially all of its assets to any Person, except on conditions acceptable to Winterberry or in the ordinary course
of business;

 

(f) that the Company will
not, and will not permit any of subsidiaries to, enter into any sale/leaseback transaction except on conditions acceptable to Winterberry;

 

(g) that the Company will
not, and will not permit any of subsidiaries to, issue any securities in the capital stock of such corporation, except pursuant
to currently outstanding rights to convert and warrants, the issuance of incentive stock options or Shares upon exercise of such
options, issued in accordance with the Company’s stock option plan or securities issued for the purpose of payment of the
principal amount of the Debentures.

 

Section 5. Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Debenture: (a) capitalized terms not otherwise defined
herein have the meanings given to such terms in the Subscription Agreement, and (b) the following terms shall have the following
meanings:

 

"Business Day"
means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which
banking institutions in the State of New York are authorized or required by law or other government action to close.

 

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"Common Stock"
means the common stock, $.0001 par value per share, of the Company and stock of any other class into which such shares may hereafter
have been reclassified or changed.

 

"Exchange Act"
means the Securities Exchange Act of 1934, as amended.

 

"Original Issue
Date" shall mean the date of the first issuance of the Debentures regardless of the number of transfers of any Debenture
and regardless of the number of instruments which may be issued to evidence such Debenture.

 

Section 6. The Debentures
shall be secured and supported by a first security interest in all of the assets and undertakings of the Company and its subsidiaries.

 

Section 7. Except as expressly
provided herein, no provision of this Debenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of, interest and liquidated damages (if any) on, this Debenture at the time, place, and rate, and in the coin
or currency, herein prescribed. This Debenture is a direct debt obligation of the Company. This Debenture ranks pari passu with
all other Debentures now or hereafter issued under the terms set forth herein. As long as this Debenture is outstanding, the Company
shall not and shall cause it subsidiaries not to, without the consent of the Holder, amend its certificate of incorporation, bylaws
or other charter documents so as to adversely affect any rights of the Holder.

 

Section 8. If this Debenture
shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture
for the principal amount of this Debenture so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss,
theft or destruction of such Debenture, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to
the Company.

 

Section 9. Any and all
notices or other communications or deliveries to be provided by the Holder hereunder, shall be in writing and delivered personally,
by facsimile, by email attachment, or sent by a nationally recognized overnight courier service, addressed to the Company, at the
address set forth above, or such other facsimile number, email address, or address as the Company may specify for such purposes
by notice to the Holder delivered in accordance with this Section 9.  Any and all notices or other communications or deliveries
to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, by email attachment, or sent
by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or email address or address
of the Holder appearing on the books of the Company, or if no such facsimile number or email attachment or address appears on the
books of the Company, at the principal place of business of such Holder, as set forth in the Subscription Agreement.  Any
notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number or email attachment to the email address set
forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date, (ii) the next Business Day after
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment
to the email address set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m.
(New York City time) on any Business Day, (iii) the second Business Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

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Section 10. Except as expressly
set forth in any security agreement securing the obligations under this Debenture, all questions concerning the construction, validity,
enforcement and interpretation of this Debenture shall be governed by and construed and enforced in accordance with the internal
laws of the State of New York, without regard to the principles of conflicts of law thereof and each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the transaction contemplated herein (whether brought against
a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the
state and federal courts sitting in the City of New York, Borough of Manhattan (the "New York Courts"). Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein 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,
or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Debenture and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Debenture or the transactions contemplated hereby. If either party shall commence an action
or proceeding to enforce any provisions of this Debenture, then the prevailing party in such action or proceeding shall be reimbursed
by the other party for its attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.

 

Section 11. Any waiver
by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver
of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Company or
the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver
or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture.
Any waiver must be in writing.

 

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Section 12. If any provision
of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect, and if any provision
is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates applicable laws governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive
the Company from paying all or any portion of the principal of or interest on the Debentures as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Company
(to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it
will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will
suffer and permit the execution of every such as though no such law has been enacted.

 

IN WITNESS WHEREOF,
the Company has caused this 12% Secured Debenture to be duly executed by a duly authorized officer as of the date first above
indicated.

 

	 	YAPPN CORP.
	 	 	 
	 	By:	
	 	Name:	David Lucatch
	 	Title:	Chief Executive Officer

 

 

7Exhibit 10.2

 

SECURITY
AGREEMENT

 

THIS
AGREEMENT is made as of July____, 2015,

 

BETWEEN

 

YAPPN
CORP., a corporation incorporated under the laws of Delaware

 

(the
“Borrower”),

 

-
and -

 

YAPPN
ACQUISITION SUB INC., a corporation incorporated under the laws of Delaware;

 

YAPPN
CANADA INC., a corporation incorporated under the laws of Ontario;

 

FOTOYAP
INC., a corporation incorporated under the laws of Delaware;

 

LANGULAS
INC., a corporation incorporated under the laws of Florida;

 

YADMARK
INC., a corporation incorporated under the laws of Florida;

 

YAFFILIATE
MARKETING SERVICES INC., a corporation incorporated under the laws of Florida;

 

(each
a “Guarantor”)

 

-
and -

 

WINTERBERRY
INVESTMENTS INC., a corporation formed under the laws of Ontario

 

(the
“Collateral Agent”)

 

WHEREAS
the Borrower has offered debentures (the “Debentures”) pursuant to the terms and conditions of a subscription
agreement dated July ___, 2015 (the “Subscription Agreement”);

 

AND
WHEREAS the Borrower has agreed to grant a general and continuing security interest over all of its assets for the payment and
performance of its obligations under the Subscription Agreement and Debentures (the “Secured Obligations” as
hereinafter further defined);

 

    	 

    	 

    

 

AND
WHEREAS each Guarantor has agreed to unconditionally guarantee the Secured Obligations (the Borrower and the Guarantors are each
a “Grantor” and together the “Grantors”) as further set out in this Agreement;

 

AND
WHEREAS the Grantors have agreed to grant general and continuing security interests over all of their assets in favor of the Collateral
Agent, in its capacity as lead investor and collateral agent pursuant to the Subscription Agreement and the Debentures, as pledgee,
assignee and secured party;

 

AND
WHEREAS the Borrower and each Guarantor will receive substantial direct and indirect benefits from the execution, delivery and
performance of the obligations under the Subscription Agreement and Debentures and each is, therefore, willing to enter into this
Agreement;

 

AND
WHEREAS it is a condition to the payment of the amounts made by each holder of a Debenture (collectively the “Holders”)
under the Debentures that each Grantor execute and deliver this Agreement;

 

AND
WHEREAS this Agreement is given by each Grantor in favor of the Collateral Agent for the ratable benefit of the Holders to secure
the payment and performance of all of the Secured Obligations;

 

NOW
THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, each Grantor and the Collateral Agent hereby agree as follows:

 

Article
1

interpretation

 

		1.1	Definitions

 

(1)          Unless
otherwise defined herein or in the Subscription Agreement, capitalized terms used in this Agreement that are defined in the UCC
shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC differently than in
another Article of the UCC, the term has the meaning specified in Article 9.

 

(2)          The
following terms shall have the following meanings:

 

“Agreement” has
the meaning set forth in the recitals above.

 

“Business
Day” means a day other than a Saturday, Sunday or statutory holiday in the Province of Ontario.

 

“Claims” means
any and all property and other taxes, assessments and special assessments, levies, fees and all governmental charges imposed upon
or assessed against, and landlords', carriers', mechanics', workmen's, repairmen's, laborers', materialmen's, suppliers' and warehousemen's
Liens and other claims arising by operation of law against, all or any portion of the Pledged Collateral.

 

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“Collateral
Support” means all Property assigned, hypothecated or otherwise securing any Pledged Collateral and shall include
any security agreement or other agreement granting a Lien or security interest in such Property.

 

“Contracts” means,
collectively, with respect to each Grantor, the Intellectual Property Licenses, all sale, service, performance, equipment or property
lease contracts, agreements and grants and all other contracts, agreements or grants (in each case, whether written or oral, or
third party or intercompany), between such Grantor and any third party, and all assignments, amendments, restatements, supplements,
extensions, renewals, replacements or modifications thereof.

 

“Copyrights” means,
collectively, with respect to each Grantor, all copyrights (whether statutory or common law, whether established or registered
in the United States, Canada or any other country or any political subdivision thereof, whether registered or unregistered and
whether published or unpublished), all tangible embodiments of the foregoing and all copyright registrations and applications
made by such Grantor, in each case, whether now owned or hereafter created or acquired by or assigned to such Grantor, together
with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect
to such Grantor's use of such copyrights, (ii) reissues, renewals, continuations and extensions thereof and amendments thereto,
(iii) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto, including
damages and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world
and (v) rights to sue for past, present or future infringements thereof.

 

“Excluded
Property” means, collectively:

 

		(i)	any
                                         United States intent-to-use trademark applications to the extent that, and solely during
                                         the period in which, the grant, attachment or enforcement of a security interest therein
                                         would, under applicable federal law, impair the registrability of such applications or
                                         the validity or enforceability of registrations issuing from such applications; and

 

		(ii)	any
                                         asset or property to the extent that the grant of a security interest is prohibited by
                                         applicable law, rule or regulation or requires a consent not obtained of any Governmental
                                         Authority pursuant to such applicable law, rule or regulation, in each case after giving
                                         effect to the applicable anti-assignment provisions of the UCC, PPSA or other applicable
                                         law and other than Proceeds and receivables thereof, the assignment of which is expressly
                                         deemed effective under the UCC or other applicable law notwithstanding such prohibition.

 

“Event
of Default” has the meaning ascribed thereto in each of the Debentures.

 

“First
Priority” means, with respect to any Lien purported to be created in any Pledged Collateral pursuant to this Agreement,
such Lien is the most senior lien to which such Pledged Collateral is subject (subject only to Liens permitted under the Subscription
Agreement).

 

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“Grantor” has
the meaning set forth in the recitals above.

 

“Guarantors” has
the meaning set forth in the recitals.

 

“Intellectual
Property Collateral” means, collectively, the Patents, Trademarks (excluding only United States intent-to-use Trademark
applications to the extent that and solely during the period in which the grant of a security interest therein would impair, under
applicable federal law, the registrability of such applications or the validity or enforceability of registrations issuing from
such applications), Copyrights, Trade Secrets, Intellectual Property Licenses and all other industrial, intangible and intellectual
property of any type, including mask works and industrial designs.

 

“Intellectual
Property Licenses” means, collectively, with respect to each Grantor, all license and distribution agreements with,
and covenants not to sue, any other party with respect to any Patent, Trademark, Copyright or Trade Secret or any other patent,
trademark, copyright or trade secret, whether such Grantor is a licensor or licensee, distributor or distributee under any such
license or distribution agreement, together with any and all (i) renewals, extensions, supplements and continuations thereof,
(ii) income, fees, royalties, damages, claims and payments now and hereafter due and/or payable thereunder and with respect thereto
including damages and payments for past, present or future infringements or violations thereof, (iii) rights to sue for past,
present and future infringements or violations thereof and (iv) other rights to use, exploit or practice any or all of the Patents,
Trademarks, Copyrights or Trade Secrets or any other patent, trademark, copyright or trade secret.

 

“Subscription
Agreement” has the meaning set forth in the recitals above.

 

“Organizational
Documents” means the certificate of incorporation and by-laws or any comparable organizational documents of any
corporate entity (including limited liability companies and partnerships).

 

“Patents” means,
collectively, with respect to each Grantor, all patents issued or assigned to, and all patent applications and registrations made
by, such Grantor (whether issued, established or registered or recorded in the United States, Canada or any other country or any
political subdivision thereof) and all tangible embodiments of the foregoing, together with any and all (i) rights and privileges
arising under applicable law and international treaties and conventions with respect to such Grantor's use of any patents, (ii)
inventions and improvements described and claimed therein, (iii) reissues, divisions, continuations, renewals, extensions and
continuations-in-part thereof and amendments thereto, (iv) income, fees, royalties, damages, claims and payments now or hereafter
due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements
thereof, (v) rights corresponding thereto throughout the world and (vi) rights to sue for past, present or future infringements
thereof.

 

“Pledged
Collateral” has the meaning set forth in 3.1.

 

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“Pledged
Debt”  means, with respect to each Grantor, all debt (including intercompany notes) from time to time owed to such
Grantor by any obligor, and all interest, cash, instruments and other property, assets or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such debt and all certificates, instruments
or agreements evidencing such debt, and all assignments, amendments, restatements, supplements, extensions, renewals, replacements
or modifications thereof.

 

“Pledged
Securities” means, collectively, with respect to each Grantor, (i) all issued and outstanding equity interests
of each issuer or subsidiary that are owned by such Grantor and all options, warrants, rights, agreements and additional equity
interests of whatever class of any such issuer or subsidiary acquired by such Grantor in any manner, together with all claims,
rights, privileges, authority and powers of such Grantor relating to such equity interests in each such issuer or subsidiary or
under any Organizational Document of each such issuer or subsidiary, and the certificates, instruments and agreements representing
such equity interests and any and all interest of such Grantor in the entries on the books of any financial intermediary pertaining
to such equity interests, (ii) all additional equity interests of any issuer or subsidiary from time to time acquired by or issued
to such Grantor and all options, warrants, rights, agreements and additional equity interests of whatever class of any such issuer
or subsidiary from time to time acquired by such Grantor in any manner, together with all claims, rights, privileges, authority
and powers of such Grantor relating to such equity interests or under any Organizational Document of any such issuer or subsidiary,
and the certificates, instruments and agreements representing such equity interests and any and all interest of such Grantor in
the entries on the books of any financial intermediary pertaining to such equity interests, from time to time acquired by such
Grantor in any manner, and (iii) all equity interests issued in respect of the equity interests referred to in clause (i) or (ii)
upon any consolidation or merger of any issuer of such equity interests of any successor subsidiary owned by such Grantor (unless
such Grantor is the surviving entity);

 

“PPSA”
means the Personal Property Security Act (Ontario), as now enacted or as the same may from time to time be amended, re-enacted
or replaced

 

“Receivables” means
all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv) Instruments, (v) General Intangibles, and (vi) to the extent
not otherwise covered above, all other rights to payment, whether or not earned by performance, for goods or other property sold,
leased, licensed, assigned or otherwise disposed of, or services rendered or to be rendered, regardless of how classified under
the UCC together with all of Grantors' rights, if any, in any goods or other property giving rise to such right to payment and
all Collateral Support and Supporting Obligations related thereto and all Records relating thereto.

 

“Related
Parties” means, with respect to any Person, such Person's Affiliates and the directors, officers, employees, partners,
agents, trustees, administrators, managers, advisors and representatives of it and its Affiliates.

 

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“Secured
Obligations” means obligations of the Borrower from time to time arising under the Subscription Agreement and Debentures.

 

“Securities
Collateral” means, collectively, the Pledged Securities, the Pledged Debt and the Distributions.

 

“Trade
Secrets” means, collectively, with respect to each Grantor, all know-how, trade secrets, manufacturing and production
processes and techniques, inventions, research and development information, technical, marketing, financial and business data
and databases, pricing and cost information, business and marketing plans, customer and supplier lists and information, all other
confidential and proprietary information and all tangible embodiments of the foregoing, together with any and all (i) rights and
privileges arising under applicable law and international treaties and conventions with respect to such trade secrets, (ii) income,
fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto including damages and payments
for past, present or future misappropriations thereof, (iii) rights corresponding thereto throughout the world and (iv) rights
to sue for past, present or future misappropriations thereof.

 

“Trademarks” means,
collectively, with respect to each Grantor, all trademarks (including service marks), slogans, logos, symbols, certification marks,
collective marks, trade dress, uniform resource locators (URL's), domain names, corporate names and trade names, whether statutory
or common law, whether registered or unregistered and whether established or registered in the United States, Canada or any other
country or any political subdivision thereof, that are owned by or assigned to such Grantor, all registrations and applications
for the foregoing and all tangible embodiments of the foregoing, together with, in each case, the goodwill symbolized thereby
and any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect
to such Grantor's use of any trademarks, (ii) reissues, continuations, extensions and renewals thereof and amendments thereto,
(iii) income, fees, royalties, damages and payments now and hereafter due and/or payable thereunder and with respect thereto,
including damages, claims and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout
the world and (v) rights to sue for past, present and future infringements thereof.

 

“UCC” means
the Uniform Commercial Code as in effect from time to time in the State of Delaware; provided, however, that if by reason
of mandatory provisions of law, any or all of the perfection or priority of the Collateral Agent’s and the Holders’
security interest in any item or portion of the Pledged Collateral is governed by the Uniform Commercial Code as in effect in
a jurisdiction other than the State of Delaware, then the term “UCC” means the Uniform Commercial Code as in effect
from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and
for purposes of definitions relating to such provisions.

 

    	6

    	 

    

 

Article
2

guarantees

 

		2.1	Guarantee

 

Each
Guarantor absolutely, irrevocably and unconditionally guarantees to the Holders, jointly with the other Guarantors and severally,
as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Debentures. Each Guarantor
further agrees that the Debentures may be extended or renewed, in whole or in part, without notice to or further assent from it,
and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Debenture. Each Guarantor waives
(to the extent permitted by applicable law) presentment to, demand of payment from and protest to the Borrower or any other Grantor
of any Debenture, and also waives notice of acceptance of its guarantee and notice of protest for non-payment. Each Guarantor
hereby further jointly and severally agrees that if the Borrower shall fail to pay in full when due (whether at stated maturity,
by acceleration or otherwise) any of the Debentures, such Guarantor will promptly pay the same, without any demand or notice whatsoever,
and that in the case of any extension of time of payment or renewal of any of the Debentures, the same will be promptly paid in
full when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal.

 

		2.2	Guarantee
                                         of Payment

 

Each
Guarantor further agrees that its guarantee under this Agreement constitutes a guarantee of payment when due and payable and not
of collection, and waives any right (except such as shall be required by applicable law and cannot be waived) to require that
any resort be had by the Collateral Agent or any other Holder to any security held for the payment of the Debentures or to any
balance of any deposit account or credit on the books of the Collateral Agent in favour of the Borrower or any other person.

 

		2.3	No
                                         Limitations

 

(1)          The
obligations of each Guarantor under this Agreement shall not be subject to any reduction, limitation, impairment or termination
for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense
or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the
Subscription Agreement, Debentures or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor
shall not be discharged or impaired or otherwise affected by (i) the failure of the Collateral Agent or any other Holder to assert
any claim or demand or to enforce any right or remedy under the provisions of the Subscription Agreement or any Debenture or otherwise,
(ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, the Subscription
Agreement or any Debenture (other than pursuant to the terms of a waiver, amendment, modification or release of this Agreement
in accordance with the terms of this Agreement) or any other agreement, including with respect to the release of any other Guarantor
under this Agreement, (iii) the release of, or any impairment of or failure to perfect any Lien on or security interest in, any
security held by the Collateral Agent or any other Holder for the Debentures, (iv) any default, failure or delay, wilful or otherwise,
in the performance of the Debentures, or (v) any other act or omission that may or might in any manner or to any extent vary the
risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity. Each Guarantor expressly
authorizes the Collateral Agent, in accordance with the Subscription Agreement and applicable law, to take and hold security for
the payment and performance of the Debentures, to exchange, waive or release any or all such security (with or without consideration),
to enforce or apply such security and direct the order and manner of any sale thereof in its sole discretion or to release or
substitute any one or more other Guarantors upon or in respect of the Debentures, all without affecting the obligations of any
Guarantor.

 

    	7

    	 

    

 

(2)          To
the fullest extent permitted by applicable law, each Guarantor waives any defense (other than payment or performance of the Debentures
(other than contingent obligations), in full) based on or arising out of any defense of the Borrower or any other Grantor or the
unenforceability of the Debentures or any part thereof from any cause, or the cessation from any cause of the liability of the
Borrower or any other Grantor. The Collateral Agent and the other Holders may, in accordance with the provisions of this Agreement,
the Debentures and applicable law, at their election, foreclose on any security held by one or more of them by one or more judicial
or non-judicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the
Debentures, make any other accommodation with the Borrower or any other Grantor or exercise any other right or remedy available
to them against the Borrower or any other Grantor, without affecting or impairing in any way the liability of any Guarantor hereunder.
To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though
such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other
right or remedy of such Guarantor against the Borrower or any other Grantor, as the case may be, or any security.

 

		2.4	Reinstatement

 

Each
Guarantor agrees that its guarantee hereunder shall continue to be effective or shall be automatically reinstated, as the case
may be, if at any time and for any reason full or partial payment of any Debenture is rescinded or must otherwise be restored
by the Collateral Agent or any other Holder whether upon the bankruptcy or reorganization of the Borrower, any other Grantor,
or otherwise.

 

		2.5	Agreement
                                         To Pay and Subrogation

 

In
furtherance of the foregoing and not in limitation of any other right that the Collateral Agent or any other Holder has at law
or in equity against any Guarantor by virtue of this Agreement, upon the failure of the Borrower or any other Grantor to pay any
Debenture when and as the same shall become due and payable, whether at maturity, by acceleration, after notice of prepayment
or otherwise, each Guarantor hereby jointly and severally promises to and will promptly pay, or cause to be paid, to the Collateral
Agent for distribution to the Holders in cash the amount of such unpaid Debenture (other than payment of any contingent obligations).

 

    	8

    	 

    

 

		2.6	Information

 

Each
Guarantor assumes all responsibility for being and keeping itself reasonably informed of the Borrower’s and each other Grantor’s
financial condition and assets and of all other circumstances bearing upon the risk of non-payment of the Debentures and the nature,
scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that neither the Collateral Agent nor
any other Holder will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances
or risks.

 

		2.7	Instrument
                                         for the Payment of Money

 

Each
Guarantor hereby acknowledges that the guarantees in this Article 2 constitute instruments for the payment of money, and consents
and agrees that the Collateral Agent, at its sole option, in the event of a dispute by such Guarantor in the payment of any moneys
due under this Agreement, shall have the right to bring a summary judgment motion-action under New York CVP. Law Section 3213.

 

Article
3

Grant of security interest

 

		3.1	Grant
                                         of Security Interest

 

(1)          As
collateral security for the payment and performance in full of all the Secured Obligations, each Grantor hereby pledges and grants
to the Collateral Agent for the ratable benefit of the Holders, a Lien on and security interest in and to all of the right, title
and interest of such Grantor in, to and under the following property, wherever located, and whether now existing or hereafter
arising or acquired from time to time (collectively, the “Pledged Collateral”):

 

		(a)	all
                                         Accounts;

 

		(b)	all
                                         Equipment, Goods, Inventory and Fixtures;

 

		(c)	all
                                         Documents, Instruments and Chattel Paper;

 

		(d)	all
                                         Letters of Credit and Letter-of-Credit Rights;

 

		(e)	all
                                         Securities Collateral;

 

		(f)	all
                                         Investment Property;

 

		(g)	all
                                         Intellectual Property Collateral;

 

    	9

    	 

    

 

		(h)	all
                                         General Intangibles;

 

		(i)	all
                                         Money and all Deposit Accounts;

 

		(j)	all
                                         Supporting Obligations;

 

		(k)	all
                                         books and records, customer lists, credit files, computer files, programs, printouts
                                         and other computer materials and records relating to the Pledged Collateral and any General
                                         Intangibles at any time evidencing or relating to any of the foregoing; and

 

		(l)	to
                                         the extent not covered by clauses (a) to (k) of this sentence, all other assets, personal
                                         property and rights of such Grantor, whether tangible or intangible, all Proceeds and
                                         products of each of the foregoing and all accessions to, substitutions and replacements
                                         for, and rents, profits and products of, each of the foregoing, and any and all Proceeds
                                         of any insurance, indemnity, warranty or guaranty payable to such Grantor from time to
                                         time with respect to any of the foregoing.

 

(2)          Notwithstanding
anything to the contrary contained in subsection 3.1(1), the security interest created by this Agreement shall not extend to,
and the term “Pledged Collateral” shall not include, any Excluded Property, provided that, if any Excluded
Property would have otherwise constituted Pledged Collateral, when such property shall cease to be Excluded Property, such property
shall be deemed at all times from and after the date hereof to constitute Pledged Collateral.

 

(3)          The
Grantors shall from time to time at the request of the Collateral Agent give written notice to the Collateral Agent identifying
in reasonable detail the Excluded Property (and stating in such notice that such Excluded Property constitutes “Excluded
Property”) and shall provide to the Collateral Agent such other information regarding the Excluded Property as the Collateral
Agent may reasonably request.

 

		3.2	Filings

 

(1)          Each
Grantor hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in any relevant jurisdiction
any financing statements (including fixture filings) and amendments thereto that contain the information required by Article 9
of the UCC of each applicable jurisdiction, or as applicable by the provisions of the PPSA, for the filing of any financing statement
or amendment relating to the Pledged Collateral, including (i) whether such Grantor is an organization, the type of organization
and any organizational identification number issued to such Grantor, and (ii) any financing or continuation statements or other
documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by such
Grantor hereunder, without the signature of such Grantor where permitted by law, including the filing of a financing statement
describing the Pledged Collateral as “all assets now owned or hereafter acquired by the Grantor or in which the Grantor
otherwise has rights”. Each Grantor agrees to provide all information described in the immediately preceding sentence to
the Collateral Agent promptly upon request by the Collateral Agent.

 

    	10

    	 

    

 

(2)          Each
Grantor hereby further authorizes the Collateral Agent to file with the United States Patent and Trademark Office, the United
States Copyright Office, the Canadian Intellectual Property Office (and any successor office and any similar office in any United
States state or other country) this Agreement, an Intellectual Property security agreement and other documents for the purpose
of perfecting, confirming, continuing, enforcing or protecting the security interest granted by such Grantor hereunder, without
the signature of such Grantor where permitted by law, and naming such Grantor as debtor, and the Collateral Agent as secured party.

 

Article
4

Perfection and further assurances

 

		4.1	Maintenance
                                         of Perfected Security Interest

 

Each
Grantor represents and warrants that on the date hereof all financing statements, agreements, instruments and other documents
necessary to perfect the security interest granted by it to the Collateral Agent in respect of the Pledged Collateral have been
delivered to the Collateral Agent in completed and, to the extent necessary or appropriate, duly executed form for filing in each
governmental, municipal or other office. Each Grantor agrees that at its sole cost and expense, such Grantor will maintain the
security interest created by this Agreement in the Pledged Collateral as a perfected First Priority security interest.

 

		4.2	Joinder
                                         of Additional Grantors

 

The
Grantors shall cause each Subsidiary of the Borrower which, from time to time, after the date hereof shall be formed, to execute
and deliver to the Collateral Agent a joinder agreement within 30 days of the date on which it was acquired or created and, upon
such execution and delivery, such Subsidiary shall constitute a “Grantor” for all purposes hereunder with the same
force and effect as if originally named as a Grantor herein. The execution and delivery of such joinder agreements shall not require
the consent of any Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Agreement.

 

		4.3	Further
                                         Assurances

 

(1)          Each
Grantor shall take such further actions, and execute and deliver to the Collateral Agent such additional financing statements,
amendments, assignments, agreements, supplements, powers and instruments, as the Collateral Agent may in its reasonable judgment
deem necessary or appropriate in order to create and maintain the validity, perfection or priority of and protect any security
interest granted or purported to be granted in the Pledged Collateral as provided herein and the rights and interests granted
to the Collateral Agent hereunder, and enable the Collateral Agent to exercise and enforce its rights, powers and remedies hereunder
with respect to any Pledged Collateral, including the filing of any financing statements, continuation statements and other documents
under the UCC, PPSA or other similar laws in effect in any jurisdiction with respect to the security interest created hereby,
the filing of the Intellectual Property Collateral security acknowledgments and supplemental Intellectual Property Collateral
security acknowledgments with the United States Patent and Trademark Office, United States Copyright Office, the Canadian Intellectual
Property Office and any other applicable jurisdiction’s intellectual property registration office, all in form reasonably
satisfactory to the Collateral Agent and in such offices wherever required by law to perfect, continue and maintain the validity,
enforceability and priority of the security interest in the Pledged Collateral as provided herein and to preserve the other rights
and interests granted to the Collateral Agent hereunder, as against third parties, with respect to the Pledged Collateral.

 

    	11

    	 

    

 

Article
5

Representations, warranties and covenants

 

Each
Grantor represents, warrants and covenants as follows:

 

		(a)	Approvals.
                                         In the event that the Collateral Agent desires to exercise any remedies, voting or
                                         consensual rights or attorney-in-fact powers set forth in this Agreement and determines
                                         it necessary to obtain any approvals or consents of any Governmental Authority or any
                                         other Person therefor, then, upon the reasonable request of the Collateral Agent, such
                                         Grantor agrees to use its commercially reasonable efforts to assist the Collateral Agent
                                         in obtaining as soon as practicable any necessary approvals or consents for the exercise
                                         of any such remedies, rights and powers.

 

		(b)	Pledged
                                         Collateral Information. All information set forth herein, including the schedules
                                         annexed hereto, and all information contained in any documents, schedules and lists heretofore
                                         delivered to the Collateral Agent or any Holder, in connection with this Agreement, in
                                         each case, relating to the Pledged Collateral, is accurate and complete in all material
                                         respects. The Pledged Collateral described on the schedules hereof constitutes all of
                                         the property of such type of Pledged Collateral owned or held by the Grantors.

 

		(c)	Insurance.
                                         In the event that the proceeds of any insurance claim are paid to any Grantor after
                                         the Collateral Agent has exercised its right to foreclose on all or any part of the Pledged
                                         Collateral during the existence of an Event of Default, such net cash proceeds shall
                                         be held in trust for the benefit of the Collateral Agent and immediately after receipt
                                         thereof shall be paid to the Collateral Agent for application in accordance with the
                                         Subscription Agreement.

 

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		(d)	Compliance
                                         With Laws. Each Grantor shall pay promptly when due all Claims upon the Pledged Collateral
                                         or incurred in connection with the use or operation of the Pledged Collateral or incurred
                                         in connection with this Agreement. All Claims imposed upon or assessed against the Pledged
                                         Collateral have been paid and discharged. In the event any Grantor shall fail to make
                                         such payment contemplated in the immediately preceding sentence, the Collateral Agent
                                         may (following notice to the Grantor, to the extent practicable) do so for the account
                                         of such Grantor and the Grantors shall promptly reimburse and indemnify the Collateral
                                         Agent for all costs and expenses incurred by the Collateral Agent under this Article
                                         5(d) in accordance with Section 8.8.

 

Article
6

Intellectual property collateral

 

		6.1	Intellectual
                                         Property License

 

For
the purpose of enabling the Collateral Agent, during the continuance of an Event of Default, to exercise rights and remedies under
Article 7 hereof at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and for
no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent of such Grantor's rights and effective only
during the continuance of an Event of Default, an irrevocable, non-exclusive license, subject, in the case of Trademarks, to sufficient
rights to quality control and inspection in favor of such Grantor to avoid the risk of invalidation of such Trademarks, to use
and sublicense any of the Intellectual Property Collateral then owned by or licensed to such Grantor. Such license shall include
access to all devices, products and media in which any of the Intellectual Property Collateral is embodied, embedded, recorded
or stored and to all computer programs used for the compilation or printout hereof.

 

		6.2	Dealing
                                         With Intellectual Property

 

On
a continuing basis, each Grantor shall, at its sole cost and expense:

 

		(a)	promptly
                                         following its becoming aware thereof, notify the Collateral Agent of any materially adverse
                                         determination in any proceeding or the institution of any proceeding in any federal,
                                         state or local court or administrative body or in the United States Patent and Trademark
                                         Office or the United States Copyright Office regarding such Grantor's claim of ownership
                                         in or right to use any of the Intellectual Property Collateral, such Grantor's right
                                         to register such Intellectual Property Collateral or its right to keep and maintain such
                                         registration in full force and effect;

 

		(b)	maintain
                                         and protect the material Intellectual Property Collateral as presently used and operated
                                         and as contemplated by the Subscription Agreement;

 

    	13

    	 

    

 

		(c)	not
                                         permit to lapse or become abandoned any material Intellectual Property Collateral as
                                         presently used and operated, and not settle or compromise any pending or future litigation
                                         or administrative proceeding with respect to such Intellectual Property Collateral, in
                                         each case except as shall be consistent with commercially reasonable business judgment;

 

		(d)	upon
                                         such Grantor obtaining knowledge thereof, promptly notify the Collateral Agent in writing
                                         of any event which may be reasonably expected to materially and adversely affect the
                                         value or utility of any of the material Intellectual Property Collateral, the ability
                                         of such Grantor or the Collateral Agent to dispose of the Intellectual Property Collateral
                                         or any portion thereof, or the rights and remedies of the Collateral Agent in relation
                                         thereto including a levy or threat of levy or any legal process against the Intellectual
                                         Property Collateral or any portion thereof;

 

		(e)	not
                                         license the Intellectual Property Collateral other than licenses entered into by such
                                         Grantor in, or incidental to, the ordinary course of business, or amend or permit the
                                         amendment of any of the licenses in a manner that would materially impair the value of
                                         the Intellectual Property Collateral or the Lien on and security interest in the Intellectual
                                         Property Collateral created therein hereby, without the consent of the Collateral Agent;
                                         and

 

		(f)	furnish
                                         to the Collateral Agent from time to time upon the Collateral Agent's reasonable request
                                         therefor reasonably detailed statements and amended schedules further identifying and
                                         describing the Intellectual Property Collateral and such other materials evidencing or
                                         reports pertaining to the Intellectual Property Collateral as the Collateral Agent may
                                         from time to time reasonably request.

 

		6.3	Additional
                                         Intellectual Property

 

If
any Grantor shall at any time after the date hereof (a) obtain any rights to any additional Intellectual Property Collateral or
(b) become entitled to the benefit of any additional Intellectual Property Collateral or any registration, renewal or extension
thereof, including any reissue, division, continuation, or continuation-in-part of any Intellectual Property Collateral, or any
improvement on any Intellectual Property Collateral, the provisions hereof shall automatically apply thereto and any such item
enumerated in clause (a) or (b) of this Section 6.3 with respect to such Grantor shall automatically constitute Intellectual Property
Collateral as if such would have constituted Intellectual Property Collateral at the time of execution of this Agreement and be
subject to the Lien and security interest created by this Agreement without further action by any party.

 

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Article
7

Remedies

 

		7.1	Remedies

 

(1)          If
any Event of Default shall have occurred and be continuing, the Collateral Agent may exercise, without any other notice to or
demand upon any Grantor, in addition to the other rights and remedies provided for herein or in any Debenture or otherwise available
to it, all the rights and remedies of a secured party upon default under the UCC or PPSA, as applicable, and also may:

 

		(a)	require
                                         each Grantor to, and each Grantor hereby agrees that it will at its expense and upon
                                         request of the Collateral Agent immediately, assemble the Pledged Collateral or any part
                                         thereof, as directed by the Collateral Agent and make it available to the Collateral
                                         Agent at a place and time to be designated by the Collateral Agent;

 

		(b)	without
                                         notice except as specified below, sell, resell, assign and deliver or grant a license
                                         to use or otherwise dispose of the Pledged 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 upon such other terms as the Collateral
                                         Agent may deem commercially reasonable;

 

		(c)	occupy
                                         any premises owned or leased by any of the Grantors where the Pledged Collateral or any
                                         part thereof is assembled or located for a reasonable period in order to effectuate its
                                         rights and remedies hereunder or under law, without obligation to such Grantor in respect
                                         of such occupation; and

 

		(d)	exercise
                                         any and all rights and remedies of any of the Grantors under or in connection with the
                                         Pledged Collateral, or otherwise in respect of the Pledged Collateral, including without
                                         limitation, (A) any and all rights of such Grantor to demand or otherwise require payment
                                         of any amount under, or performance of any provision of, the Contracts, the Receivables,
                                         and the other Pledged Collateral, (B) withdraw, or cause or direct the withdrawal, of
                                         all funds with respect to the Deposit Accounts, and (C) exercise all other rights and
                                         remedies with respect to the Receivables and the other Pledged Collateral.

 

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(2)          Each
Grantor agrees that, to the extent notice of sale 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 is to be made shall constitute reasonable notification.
At any sale of the Pledged Collateral, if permitted by applicable law, the Collateral Agent may be the purchaser, licensee, assignee
or recipient of the Pledged Collateral or any part thereof and shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Pledged Collateral sold, assigned or licensed at such sale, to
use and apply any of the Secured Obligations as a credit on account of the purchase price of the Pledged Collateral or any part
thereof payable at such sale. To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it
may acquire against the Collateral Agent arising out of the exercise by it of any rights hereunder. Each Grantor hereby waives
and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Pledged Collateral,
whether before or after sale hereunder, and all rights, if any, of marshalling the Pledged Collateral and any other security for
the Secured Obligations or otherwise. The Collateral Agent shall not be liable for failure to collect or realize upon any or all
of the Pledged Collateral or for any delay in so doing nor shall it be under any obligation to take any action with regard thereto.
The Collateral Agent shall not be obligated to make any sale of Pledged 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 agrees that
it would not be commercially unreasonable for the Collateral Agent to dispose of the Pledged Collateral or any portion thereof
by utilizing internet sites that provide for the auction of assets of the type included in the Pledged Collateral or that have
the reasonable capability of doing so, or that match buyers and sellers of assets. The Collateral Agent shall not be obligated
to clean-up or otherwise prepare the Pledged Collateral for sale.

 

(3)          If
any Event of Default shall have occurred and be continuing, all payments received by any Grantor in respect of the Pledged Collateral
shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall
be forthwith paid over the Collateral Agent in the same form as so received (with any necessary endorsement).

 

(4)          If
any Event of Default shall have occurred and be continuing, the Collateral Agent may, without notice to any Grantor except as
required by law and at any time or from time to time, charge, set off and otherwise apply all or part of the Secured Obligations
against any funds deposited with it or held by it.

 

(5)          If
any Event of Default shall have occurred and be continuing, upon the written demand of the Collateral Agent, each Grantor shall
execute and deliver to the Collateral Agent an assignment or assignments of any or all of the Intellectual Property Collateral
and such other documents and take such other actions as are necessary or appropriate to carry out the intent and purposes hereof.
Within five (5) Business Days of written notice thereafter from the Collateral Agent, each Grantor shall make available to the
Collateral Agent, to the extent within such Grantor's power and authority, such personnel in such Grantor's employ on the date
of the Event of Default as the Collateral Agent may reasonably designate to permit such Grantor to continue, directly or indirectly,
to produce, advertise and sell the products and services sold by such Grantor under the Intellectual Property Collateral, and
such persons shall be available to perform their prior functions on the Collateral Agent's behalf.

 

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		7.2	No
                                         Waiver and Cumulative Remedies

 

The
Collateral Agent shall not by any act (except by a written instrument pursuant to Section 8.6, delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No
failure on the part of the Collateral Agent to exercise, no course of dealing with respect to, and no delay on the part of the
Collateral Agent in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right, power, privilege or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right, power, privilege or remedy; nor shall the Collateral Agent be required to look first to, enforce
or exhaust any other security, collateral or guaranties. All rights and remedies herein provided are cumulative and are not exclusive
of any rights or remedies provided by law.

 

		7.3	Application
                                         of Proceeds

 

Upon
the exercise by the Collateral Agent of its remedies hereunder, any proceeds received by the Collateral Agent in respect of any
realization upon any Pledged Collateral shall be applied, together with any other sums then held by the Collateral Agent pursuant
to this Agreement, in accordance with the Subscription Agreement. Each Grantor shall remain liable for any deficiency if the proceeds
of any sale or other disposition of the Pledged Collateral are insufficient to pay the Secured Obligations and the fees and other
charges of any attorneys employed by the Collateral Agent to collect such deficiency.

 

Article
8

GENERAL

 

		8.1	Appointment
                                         of Collateral Agent

 

(1)          The
Collateral Agent has been appointed as collateral agent in the Subscription Agreement and shall act in accordance with the terms
of the Subscription Agreement. The Collateral Agent may exercise or refrain from exercising any rights (including making demands
and giving notices) and take or refrain from taking any action (including the release or substitution of the Pledged Collateral),
in accordance with this Agreement and the Subscription Agreement. The Collateral Agent may employ agents and attorneys-in-fact
in connection herewith and shall not be liable for the negligence or misconduct of any such agents or attorneys-in-fact selected
by it in good faith. The Collateral Agent may resign and a successor Collateral Agent may be appointed in the manner provided
in the Subscription Agreement. On the acceptance of appointment as the successor Collateral Agent, that successor Collateral Agent
shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent
under this Agreement, and the retiring Collateral Agent shall thereupon be discharged from its duties and obligations under this
Agreement. After any retiring Collateral Agent's resignation, the provisions hereof shall inure to its benefit as to any actions
taken or omitted to be taken by it under this Agreement while it was the Collateral Agent.

 

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(2)          The
Collateral Agent's sole duty with respect to the custody, safekeeping and physical preservation of the Pledged Collateral in its
possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals
with its own property consisting of similar instruments or interests. Neither the Collateral Agent nor any of the Holders shall
have responsibility for (i) ascertaining or taking action whatsoever with regard to any Pledged Collateral (including matters
relating to the Pledged Securities, whether or not the Collateral Agent or any other Holder has or is deemed to have knowledge
of such matters; or (ii) taking any necessary steps to preserve rights against any Person with respect to any Pledged Collateral.

 

(3)          The
Collateral Agent shall be entitled to rely upon any written notice, statement, certificate, order or other document or any telephone
message believed by it to be genuine and correct and to have been signed, sent or made by the proper Person, and, with respect
to all matters pertaining to this Agreement and its duties hereunder.

 

		8.2	Performance
                                         By Collateral Agent

 

If
any Grantor shall fail to perform any covenants contained in this Agreement after giving effect to all applicable grace periods
if any (including any covenants to pay insurance, taxes and claims arising by operation of law in respect of the Pledged Collateral
and to pay or perform any Grantor obligations under any Pledged Collateral) or if any representation or warranty on the part of
any Grantor contained herein shall be breached, the Collateral Agent may (but shall not be obligated to) do or cause it to be
done or remedy any such breach, and may make payments for such purpose; provided, however, that the Collateral Agent shall
in no event be bound to inquire into the validity of any tax, Lien, imposition or other obligation which such Grantor fails to
pay or perform as and when required hereby and which such Grantor does not contest in accordance with the provisions of the Subscription
Agreement. Any and all amounts so paid by the Collateral Agent shall be reimbursed by the Grantors in accordance with the provisions
of Section 8.8. Neither the provisions of this Section 8.2 nor any action taken by the Collateral Agent pursuant to the provisions
of this Section 8.2 shall prevent any such failure to observe any covenant contained in this Agreement nor any breach of representation
or warranty from constituting an Event of Default.

 

		8.3	Power
                                         of Attorney

 

Each
Grantor hereby appoints the Collateral Agent its attorney-in-fact, with full power and authority in the place and stead of such
Grantor and in the name of such Grantor, or otherwise, from time to time during the existence of an Event of Default in the Collateral
Agent's discretion to take any action and to execute any instrument consistent with the terms of the Subscription Agreement and
the Debentures which the Collateral Agent may deem necessary or advisable to accomplish the purposes hereof (but the Collateral
Agent shall not be obligated to and shall have no liability to such Grantor or any third party for failure to so do or take action).
The foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for
the term hereof. Each Grantor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue hereof.

 

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		8.4	Continuing
                                         Security Interest and Assignment

 

This
Agreement shall create a continuing security interest in the Pledged Collateral and shall (a) be binding upon the Grantors, their
respective successors and assigns and (b) inure, together with the rights and remedies of the Collateral Agent hereunder, to the
benefit of the Collateral Agent and the other Holders and each of their respective permitted successors, transferees and assigns
and their respective officers, directors, employees, affiliates, agents, advisors and controlling Persons; provided that,
no Grantor shall assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written
consent of the Collateral Agent and any attempted assignment or transfer without such consent shall be null and void. Without
limiting the generality of the foregoing clause (b), any Holder may assign or otherwise transfer any indebtedness held by it secured
by this Agreement to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof
granted to such Holder, herein or otherwise, subject however, to the provisions of the Subscription Agreement.

 

		8.5	Termination
                                         and Release

 

At
such time as the Debentures shall have been paid in full, the Pledged Collateral shall be released from the Liens created hereby,
and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Collateral Agent
and each Grantor hereunder shall terminate, all without delivery of any instrument or any further action by any party, and all
rights to the Pledged Collateral shall revert to the Grantors. At the request and sole expense of any Grantor following any such
termination, the Collateral Agent shall deliver to such Grantor any Pledged Collateral held by the Collateral Agent hereunder,
and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

 

		8.6	Modification
                                         in Writing

 

None
of the terms or provisions of this Agreement may be amended, modified, supplemented, terminated or waived, and no consent to any
departure by any Grantor therefrom shall be effective, except by a written instrument signed by the Collateral Agent in accordance
with the terms of the Subscription Agreement. Any amendment, modification or supplement of any provision hereof, any waiver of
any provision hereof and any consent to any departure by any Grantor from the terms of any provision hereof in each case shall
be effective only in the specific instance and for the specific purpose for which made or given. This Agreement shall be construed
as a separate agreement with respect to each Grantor and may be amended, modified, supplemented, terminated or waived with respect
to any Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder.

 

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		8.7	Notices

 

Unless
otherwise provided herein, any notice or other communication required or permitted to be given under this Agreement shall be in
writing and shall be given in the manner and become effective as set forth in the Subscription Agreement, and, as to any Grantor,
addressed to it at the address of the Grantor set forth in Schedule A to this Agreement, and as to the Collateral Agent, addressed
to it at the address set forth in the Subscription Agreement, or in each case at such other address as shall be designated by
such party in a written notice to the other party.

 

		8.8	Indemnity
                                         and Expenses

 

(1)          Each
Grantor hereby agrees to indemnify and hold harmless the Collateral Agent (and any sub-agent thereof) and each other Holder (each
such Person being called an “Indemnitee”) from any losses, damages, liabilities, claims and related expenses
(including the fees and expenses of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee
by any Person (including any Grantor) other than such Indemnitee arising out of, in connection with or resulting from this Agreement
(including, without limitation, enforcement of this Agreement) or any failure of any Secured Obligations to be the legal, valid,
and binding obligations of any Grantor in accordance with their terms, whether brought by a third party or by such, and regardless
of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses (i) are determined by a court of competent jurisdiction
by final and nonappealable judgment to have resulted from the gross negligence or wilful misconduct of such Indemnitee or (ii)
result from a claim brought by any Grantor against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder
or under any Debenture, if such Grantor or such party has obtained a final and nonappealable judgment in its favor on such claim
as determined by a court of competent jurisdiction.

 

(2)          To
the fullest extent permitted by applicable law, each Grantor hereby agrees not to assert, and hereby waives, any claim against
any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this Agreement, or any agreement or instrument contemplated
hereby, or the transactions contemplated hereby or thereby. No Indemnitee shall be liable for any damages arising from the use
of any information or other materials distributed by it through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the Debentures or the transactions contemplated hereby or thereby by unintended recipients.

 

(3)          Without
prejudice to the survival of any other agreement of any Grantor under this Agreement, the Subscription Agreement or any Debenture,
the agreements and obligations of each Grantor contained in this Section shall survive termination of such agreements and payment
in full of the Debentures.

 

    	20

    	 

    

 

		8.9	Governing
                                         Law

 

This
Agreement will be governed by and construed in accordance with the internal laws of the State of New York and and the courts of
the State of New York will have jurisdiction to entertain any action arising under this Agreement, except for matters pertaining
to the enforcement of Secured Obligations against Pledged Collateral located in Canada, in which case the laws of the Province
of Ontario shall apply and jurisdiction and venue shall be in the Province of Ontario.

 

		8.10	Severability
                                         of Provisions

 

Any
provision hereof which is invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity, illegality or unenforceability without invalidating the remaining provisions hereof or affecting
the validity, legality or enforceability of such provision in any other jurisdiction.

 

		8.11	Counterparts;
                                         Integration; Effectiveness

 

This
Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties
hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single
contract. This Agreement, the Subscription Agreement and the Debentures constitute the entire agreement among the parties with
respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto.
This Agreement shall become effective when it shall have been executed by the Collateral Agent and when the Collateral Agent shall
have received counterparts hereof signed by each of the other parties hereto. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective
as delivery of a manually executed counterpart of this Agreement.

 

		8.12	No
                                         Release

 

Nothing
in this Agreement, nor the exercise by the Collateral Agent of any of the rights or remedies hereunder, shall relieve any Grantor
from the performance of any term, covenant, condition or agreement on such Grantor's part to be performed or observed in respect
of any of the Pledged Collateral or from any liability to any Person in respect of any of the Pledged Collateral or shall impose
any obligation on the Collateral Agent or any other Holder to perform or observe any such term, covenant, condition or agreement
on such Grantor's part to be so performed or observed or shall impose any liability on the Collateral Agent or any other Holder
for any act or omission on the part of such Grantor relating thereto or for any breach of any representation or warranty on the
part of such Grantor contained in this Agreement, the Subscription Agreement or the Debentures, or in respect of the Pledged Collateral
or made in connection with them. Neither the Collateral Agent nor any other Holder shall have any obligation or liability under
any contracts, agreements and other documents included in the Pledged Collateral by reason of this Agreement, nor shall the Collateral
Agent or any other Holder be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action
to collect or enforce any such contract, agreement or other document included in the Pledged Collateral. The obligations of each
Grantor contained in this Section 8.12 shall survive the termination of this Agreement and the discharge of the Grantor's
other obligations under this Agreement, the Subscription Agreement and the Debentures.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	21

    	 

    

 

TO
EVIDENCE ITS AGREEMENT the parties hereto have executed this Security Agreement on the date first written above. 

 

	 	YAPPN
    CORP. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

 

	 	YAPPN
    ACQUISITION SUB INC. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

 

	 	YAPPN
    CANADA INC. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

 

	 	FOTOYAPP
    INC. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

 

	 	LANGULAS
    INC. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

 

    	22

    	 

    

 

	 	YADMARK
    INC. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

 

	 	YAFFILIATE
    MARKETING SERVICES INC. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

 

	 	WINTERBERRY
    INVESTMENTS INC. 
	 	 	 
	 	Per:	 
	 	Name:	 
	 	Title:	 

  

    	23

    	 

    

 

SCHEDULE
A

 

GRANTOR
ADDRESSES FOR NOTICES

 

 

 

24

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