Document:

Exhibit 10.2

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT (this “Agreement”)
made and effective as of April , 2021, is executed by and between FUTURIS COMPANY, a Wyoming corporation (the “Company”),
and AJB CAPITAL INVESTMENTS, LLC, a Delaware limited liability company (the “Secured Party”).

 

WHEREAS, pursuant to a Securities
Purchase Agreement dated as of the date hereof, between the Company and the Secured Party (the “Purchase Agreement”),
the Company has agreed to issue to the Secured Party and the Secured Party has agreed to purchase from Company a Promissory Note (the
“Note”), as more specifically set forth in the Purchase Agreement; and

 

WHEREAS, in order to induce the Secured
Party to purchase the Note, the Company has agreed to execute and deliver to the Secured Party this Agreement for the benefit of the Secured
Party and to grant to Secured Party an unconditional and continuing, first priority security interest in all of the assets and property
of the Company to secure the prompt payment, performance and discharge in full of all of Company’s obligations under the Note, and
the Purchase Agreement and the other document executed in connection with the Purchase Agreement ( the “Transaction Documents”).

 

NOW, THEREFORE, in consideration of
the mutual covenants and agreements of the parties hereinafter set forth and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties each intending to be legally bound, hereby do agree as follows:

 

1. Recitals. The recitations
set forth in the preamble of this Agreement are true and correct and incorporated herein by this reference.

 

2. Construction and Definition
of Terms. In this Agreement, unless the express context otherwise requires: (i) the words “herein,” “hereof’
and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular provision of this
Agreement; (ii) references to the words “Section” or “Subsection” refer to the respective Sections and Subsections
of this Agreement, and references to “Exhibit” or “Schedule” refer to the respective Exhibits and Schedules attached
hereto; (iii) wherever the word “include,” “includes” or “including” is used in this Agreement, it
will be deemed to be followed by the words “without limitation.” All capitalized terms used in this Agreement that are defined
in the Purchase Agreement or otherwise defined in Articles 8 or 9 of the Code shall have the meanings assigned to them in the Purchase
Agreement or the Code, respectively and as applicable, unless the context of this Agreement requires otherwise. In addition to the capitalized
terms defined in the Code and the Purchase Agreement, unless the context otherwise requires, when used herein, the following capitalized
terms shall have the following meanings (provided that if a capitalized term used herein is defined in the Purchase Agreement and separately
defined in this Agreement, the meaning of such term as defined in this Agreement shall control for purposes of this Agreement):

 

(a) “Agreement” means this
Security Agreement and all amendments, modifications and supplements hereto.

 

     

     

    

 

(b) “Bankruptcy Code”
means the United States Bankruptcy Code, as amended from time to time, or any other similar laws, codes, rules or regulations relating
to bankruptcy, insolvency or the protection of creditors.

 

(c) “Business Premises” shall
mean the Company’s offices located at 6445 S. Tenaya Way, Suite B110, Las Vegas, NV 89113.

 

(d) “Closing” shall
mean the date on which this Agreement is fully executed by both parties.

 

(e) “Code” shall
mean the Uniform Commercial Code as in effect from time to time in the State of Wyoming, provided that terms used herein which are defined
in the Code as in effect in the State of Wyoming on the date hereof shall continue to have the same meaning notwithstanding any replacement
or amendment of such statute, except as the Secured Party may otherwise agree.

 

(f) “Collateral”
shall mean any and all property of the Company, of any kind or description, tangible or intangible, real, personal or mixed, wheresoever
located and whether now existing or hereafter arising or acquired, including the following: (i) all property of, or for the account of,
the Company now or hereafter coming into the possession, control or custody of, or in transit to, Secured Party or any agent or bailee
for Secured Party or any parent, affiliate or subsidiary of Secured Party or any participant with Secured Party in the Obligations (whether
for safekeeping, deposit, collection, custody, pledge, transmission or otherwise), including all cash, earnings, dividends, interest,
or other rights in connection therewith and the products and proceeds therefrom, including the proceeds of insurance thereon; (ii) the
following additional property of the Company, whether now existing or hereafter arising or acquired, and wherever now or hereafter located,
together with all additions and accessions thereto, substitutions, betterments and replacements therefor, products and Proceeds therefrom,
and all of the Company’s books and records and recorded data relating thereto (regardless of the medium of recording or storage),
together with all of the Company’s right, title and interest in and to all computer software required to utilize, create, maintain
and process any such records or data on electronic media, including all: (A) Accounts, and all goods whose sale, lease or other disposition
by the Company have given rise to Accounts and have been returned to, or repossessed or stopped in transit by, the Company, or rejected
or refused by an Account debtor; (B) As-extracted Collateral; (C) Chattel Paper (whether tangible or electronic); (D) Commodity Accounts;
(E) Commodity Contracts; (F) Deposit Accounts, including all cash and other property from time to time deposited therein and the monies
and property in the possession or under the control of the Secured Party or any affiliate, representative, agent, designee or correspondent
of the Secured Party; (G) Documents; (H) Equipment; (I) Farm Products; (J) Fixtures; (K) General Intangibles (including all Payment Intangibles);
(L) Goods, and all accessions thereto and goods with which the Goods are commingled; (M) Health-Care Insurance Receivables; (N) Instruments;
(O) Inventory, including raw materials, work-in-process and finished goods; (P) Investment Property; (Q) Letter-of-Credit Rights; (R)
Promissory Notes; (S) Software; (T) all Supporting Obligations; (U) all commercial tort claims hereafter arising; (V) all other tangible
and intangible personal property of the Company (whether or not subject to the Code), including, 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 the Company described within the definition of Collateral (including, any proceeds of insurance
thereon and all causes of action, claims and warranties now or hereafter held by the Company in respect of any of the items listed within
the definition of Collateral), and all books, correspondence, files and other Records, including, all tapes, desks, cards, Software,
data and computer programs in the possession or under the control of the Company or any other Person from time to time acting for the
Company, in each case, to the extent of the Company’s rights therein, that at any time evidence or contain information relating
to any of the property described or listed within the definition of Collateral or which are otherwise necessary or helpful in the collection
or realization thereof; (W) all real property interests of the Company and the interest of the Company in fixtures related to such real
property interests; and (X) Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any or all of the foregoing,
in each case howsoever the Company’s interest therein may arise or appear (whether by ownership, security interest, claim or otherwise).

 

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(g) “Event of Default” shall
mean any of the events described in Section 4 hereof.

 

(h) “Obligations”
means all obligations and liabilities (monetary (including post-petition interest, allowed or not) or otherwise) of the Company under
this Agreement, the Purchase Agreement, the Note and any other Transaction Document which are owed to Secured Party, all in each case
howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become
due.

 

3. Security.

 

(a) Grant
of Security Interest. As security for the full payment and performance of all of the Obligations, whether or not any instrument or
agreement relating to any Obligation specifically refers to this Agreement or the security interest created hereunder, the Company hereby
assigns, pledges and grants to Secured Party an unconditional, continuing, first priority security interest in all of the Collateral.
Secured Party’s security interest shall continually exist until all Obligations have been indefeasibly satisfied and/or paid in
full.

 

(b) Representations, Warranties,
Covenants and Agreement of the Company. The Company covenants, warrants and represents, for the benefit of the Secured Party, as follows:

 

(i) The Company has the
requisite power and authority to enter into this Agreement and otherwise to carry out its obligations hereunder. The execution, delivery
and performance by the Company of this Agreement and the filings contemplated herein have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company. This Agreement constitutes a legal, valid and binding obligation
of the Company enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditor’s rights generally.

 

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(ii) The Company represents and warrants
that it has no place of business or offices where their respective books of account and records are kept or places where Collateral is
stored or located, except for the Business Premises.

 

(iii) The
Company is the sole owner of the Collateral (except for non- exclusive licenses granted by the Company in the Company’s Ordinary
Course of Business), free and clear of any and all Encumbrances. The Company is fully authorized to grant the security interests in and
to pledge the Collateral to Secured Party. There is not on file in any agency, land records or other office of any Governmental Authority,
an effective financing statement, security agreement, license or transfer or any notice of any of the foregoing (other than those that
have been filed in favor of the Secured Party pursuant to this Agreement) covering or affecting any of the Collateral. So long as this
Agreement shall be in effect, the Company shall not execute and shall not permit to be on file in any such agency, land records or other
office any such financing statement or other document or instrument (except to the extent filed or recorded in favor of the Secured Party
pursuant to the terms of this Agreement).

 

(iv) No part of the Collateral has
been judged invalid or unenforceable. No Claim, Proceeding or other notice or other similar item has been received by the Company that
any Collateral or the Company’s use of any Collateral violates the rights of any Person. There has been no adverse decision or claim
to the Company’s ownership rights in or exclusive rights to use the Collateral in any jurisdiction or to the Company’s right
to keep and maintain such Collateral in full force and effect, and there is no Claim or Proceeding of any nature involving said rights
pending or, to the best knowledge of the Company, threatened, before any Governmental Authority.

 

(v) The Company shall at all times
maintain their books of account and records relating to their Collateral and maintain their Collateral at the Business Premises, and the
Company shall not relocate such books of account and records or its Collateral, except and unless: (A) Secured Party first approves of
such relocation, which approval may be withheld in Secured Party’s sole and absolute discretion; (B) evidence that appropriate financing
statements and other necessary documents have been filed and recorded and other steps have been taken to create in favor of the Secured
Party valid, perfected and continuing liens in the Collateral; or (C) Collateral is moved or relocated in the Company’s Ordinary
Course of Business, provided, however, that any permanent relocation of any of the Collateral shall require Secured Party’s prior
written approval in accordance with Subsection 3(b)(v)(A) above.

 

(vi)
Upon making the filings described in the immediately following sentence or by possession or control of such Collateral by Secured Party
or delivery of such Collateral to Secured Party, this Agreement creates, in favor of the Secured Party, a valid, perfected, first priority,
security interest in the Collateral. Except for the filing of financing statements on Form UCC-1 under the Code with the State of Nevada
no authorization or approval of, or filing with, or notice to any Governmental Authority is required either: (A) for the grant by the
Company of, or the effectiveness of, the security interest granted hereby or for the execution, delivery and performance of this Agreement
by the Company; or (B) for the perfection of or exercise by the Secured Party of its rights and remedies hereunder.

 

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(vii) Simultaneous with the execution
of this Agreement, the Company hereby authorizes the Secured Party to file one or more UCC financing statements, and any continuations,
amendments, or assignments thereof with respect to the security interests on the Collateral granted hereby, with the State of Nevada and
in such other jurisdictions as may be requested or desired by the Secured Party.

 

(viii) The execution, delivery and
performance of this Agreement, and the granting of the security interests contemplated hereby, will not: (A) constitute a violation of,
or conflict with the Certificate of Incorporation, Articles of Incorporation, Articles of Organization, Certificate of Formation, Operating
Agreement, Bylaws or any other organizational or governing documents of the Company; (B) constitute a violation of, or a default or breach
under (either immediately, upon notice, upon lapse of time, or both), or conflicts with, or gives to any other Person any rights of termination,
amendment, acceleration or cancellation of, any provision of any Contract or agreement to which Company is a party or by which any of
the Collateral may be bound; (C) constitute a violation of, or a default or breach under (either immediately, upon notice, upon lapse
of time, or both), or conflicts with, any Judgment of any Governmental Authority; (D) constitute a violation of, or conflict with, any
Law; or (E) result in the loss or adverse modification of, or the imposition of any fine, penalty or other Encumbrance with respect to,
any Permit granted or issued to, or otherwise held by or for the use of, the Company or any of the Collateral. No Consent (including from
stockholders or creditors of the Company) is required for the Company to enter into and perform its obligations hereunder.

 

(ix) The Company shall at all times
maintain the liens and security interests provided for hereunder as valid and perfected liens and security interests in the Collateral
in favor of the Secured Party until this Agreement and the security interests hereunder shall terminate pursuant to Section 8(o) below.
The Company shall at all times safeguard and protect all Collateral, at its own expense, for the account of the Secured Party. At the
request of the Secured Party, the Company will sign and deliver to the Secured Party at any time, or from time to time, one or more financing
statements pursuant to the Code (or any other applicable statute) in form reasonably satisfactory to the Secured Party and will pay the
cost of filing the same in all public offices wherever filing is, or is deemed by the Secured Party to be, necessary or desirable to effect
the rights and obligations provided for herein. Without limiting the generality of the foregoing, the Company shall pay all fees, taxes
and other amounts necessary to maintain the Collateral and the security interests granted hereunder, and the Company shall obtain and
furnish to the Secured Party from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required
to maintain the priority of the security interests hereunder.

 

(x)
The Company will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral without the
prior written consent of the Secured Party, which consent may be withheld in the Secured Party’s sole and absolute discretion,
except for transfers, sales or licenses made in the Company Ordinary Course of Business.

 

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(xi) The Company shall keep, maintain
and preserve all of the Collateral in good condition, repair and order and the Company will use, operate and maintain the Collateral in
compliance with all Laws, and in compliance with all applicable insurance requirements and regulations.

 

(xii) The Company shall, within five
(5) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of any substantial or material change
in the Collateral, and of the occurrence of any event which would have a Material Adverse Effect.

 

(xiii) The Company shall promptly
execute and deliver to the Secured Party such further deeds, mortgages, assignments, security agreements, financing statements or other
instruments, documents, certificates and assurances and take such further action as the Secured Party may from time to time request and
may in its sole discretion deem necessary to perfect, protect or enforce its security interest in the Collateral, including, placing legends
on Collateral or on books and records pertaining to Collateral stating that Secured Party has a security interest therein.

 

(xiv) The Company will take all steps
reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims, causes of action and accounts
receivable in respect of the Collateral.

 

(xv) The Company shall promptly notify
the Secured Party in sufficient detail upon becoming aware of any Claim, Proceeding, or any other litigation, attachment, garnishment,
execution or other legal process levied against any Collateral or of any Claim, Proceeding or any other litigation, attachment, garnishment,
execution or other legal process which Company knows or has reason to believe is pending or threatened against it or the Collateral, and
of any other information received by the Company that may materially affect the value of the Collateral, the security interests granted
hereunder or the rights and remedies of the Secured Party hereunder.

 

(xvi) All information heretofore, herein
or hereafter supplied to the Secured Party by or on behalf of the Company with respect to the Collateral is accurate and complete in all
material respects as of the date furnished.

 

(xvii) Company will promptly pay when
due all Taxes and all transportation, storage, warehousing and all other charges and fees affecting or arising out of or relating to the
Collateral and shall defend the Collateral, at Company’s expense, against all claims of any Persons claiming any interest in the
Collateral adverse to Company or Secured Party.

 

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(xviii)
During normal business hours and subject to prior reasonable notice from Secured Party to the Company (which notice may be e-mail or
telephonic notice), Secured Party and its agents and designees may enter the Business Premises and any other premises of the Company
and inspect the Collateral and all books and records of the Company (in whatever form), and the Company shall pay the reasonable costs
of such inspections.

 

(xix) The Company shall maintain comprehensive
casualty insurance on the Collateral against such risks, in such amounts, with such loss deductible amounts and with such companies as
may be reasonably satisfactory to the Secured Party, and each such policy shall contain a clause or endorsement satisfactory to Secured
Party naming Secured Party as loss payee and a clause or endorsement satisfactory to Secured Party that such policy may not be canceled
or altered and Secured Party may not be removed as loss payee without at least thirty (30) days prior written notice to Secured Party.
In all events, the amounts of such insurance coverages shall conform to prudent business practices and shall be in such minimum amounts
that Company will not be deemed a co-insurer under applicable insurance laws, policies or practices. The Company hereby assigns to Secured
Party and grants to Secured Party a security interest in any and all proceeds of such policies and authorizes and empowers Secured Party
to adjust or compromise any loss under such policies and to collect and receive all such proceeds. The Company hereby authorizes and directs
each insurance company to pay all such proceeds directly and solely to Secured Party and not to the Company and Secured Party jointly.
The Company authorizes and empowers Secured Party to execute and endorse in Company name all proofs of loss, drafts, checks and any other
documents or instruments necessary to accomplish such collection, and any persons making payments to Secured Party under the terms of
this subsection are hereby relieved absolutely from any obligation or responsibility to see to the application of any sums so paid. After
deduction from any such proceeds of all costs and expenses (including attorney’s fees) incurred by Secured Party in the collection
and handling of such proceeds, the net proceeds shall be applied as follows: if no Event of Default shall have occurred and be continuing,
such net proceeds may be applied, at Company option, either toward replacing or restoring the Collateral, in a manner and on terms satisfactory
to Secured Party, or as a credit against such of the Obligations, whether matured or unmatured, as Secured Party shall determine in Secured
Party’s sole discretion. In the event that Company may and does elect to replace or restore any of the Collateral as aforesaid,
then such net proceeds shall be deposited in a segregated account opened in the name and for the benefit of Secured Party, and such net
proceeds shall be disbursed therefrom by Secured Party in such manner and at such times as Secured Party deems appropriate to complete
and insure such replacement or restoration; provided, however, that if an Event of Default shall occur at any time before or after replacement
or restoration has commenced, then thereupon Secured Party shall have the option to apply all remaining net proceeds either toward replacing
or restoring the Collateral, in a manner and on terms satisfactory to Secured Party, or as a credit against such of the Obligations, whether
matured or unmatured, as Secured Party shall determine in Secured Party’s sole discretion. If an Event of Default shall have occurred
prior to such deposit of the net proceeds, then Secured Party may, in its sole discretion, apply such net proceeds either toward replacing
or restoring the Collateral, in a manner and on terms satisfactory to Secured Party, or as a credit against such of the Obligations, whether
matured or unmatured, as Secured Party shall determine in Secured Party’s sole discretion.

 

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(xx) The Company shall
cooperate with Secured Party to obtain and keep in effect one or more control agreements in Deposit Accounts, Electronic Chattel Paper,
Investment Property and Letter-of-Credit Rights Collateral. In addition, the Company, at the Company expense, shall promptly: (A) execute
all notices of security interest for each relevant type of Software and other General Intangibles in forms suitable for filing with any
United States or foreign office handling the registration or filing of patents, trademarks, copyrights and other intellectual property
and any successor office or agency thereto; and (B) take all commercially reasonable steps in any Proceeding before any such office or
any similar office or agency in any other country or any political subdivision thereof, to diligently prosecute or maintain, as applicable,
each application and registration of any Software, General Intangibles or any other intellectual property rights and assets that are
part of the Collateral, including filing of renewals, affidavits of use, affidavits of incontestability and opposition, interference
and cancellation proceedings.

 

(xxi) Company shall not file any amendments,
correction statements or termination statements concerning the Collateral without the prior written consent of Secured Party.

 

(c) Collateral Collections.
After an Event of Default shall have occurred, Secured Party shall have the right at any and all times to enforce the Company’s
rights against all Persons obligated on any of the Collateral, including the right to: (i) notify and/or require the Company to notify
any or all Persons obligated on any of the Collateral to make payments directly to Secured Party or in care of a post office lock box
under the sole control of Secured Party established at Company’s expense, and to take any or all action with respect to Collateral
as Secured Party shall determine in its sole discretion, including, the right to demand, collect, sue for and receive any money or property
at any time due, payable or receivable on account thereof, compromise and settle with any Person liable thereon, and extend the time of
payment or otherwise change the terms thereof, without incurring any liability or responsibility to the Company whatsoever; and/or (ii)
require the Company to segregate and hold in trust for Secured Party and, on the day of Company receipt thereof, transmit to Secured Party
in the exact form received by the Company (except for such assignments and endorsements as may be required by Secured Party), all cash,
checks, drafts, money orders and other items of payment constituting any portion of the Collateral or proceeds of the Collateral. Secured
Party’s collection and enforcement of Collateral against Persons obligated thereon shall be deemed to be commercially reasonable
if Secured Party exercises the care and follows the procedures that Secured Party generally applies to the collection of obligations owed
to Secured Party.

 

(d) Care of Collateral.
Company shall have all risk of loss of the Collateral. Secured Party shall have no liability or duty, either before or after the occurrence
of an Event of Default, on account of loss of or damage to, to collect or enforce any of its rights against, the Collateral, to collect
any income accruing on the Collateral, or to preserve rights against Persons with prior interests in the Collateral. If Secured Party
actually receives any notices requiring action with respect to Collateral in Secured Party’s possession, Secured Party shall take
reasonable steps to forward such notices to the Company. The Company is responsible for responding to notices concerning the Collateral,
voting the Collateral, and exercising rights and options, calls and conversions of the Collateral. Secured Party’s sole responsibility
is to take such action as is reasonably requested by Company in writing, however, Secured Party is not responsible to take any actionthat,
in Secured Party’s sole judgment, would affect the value of the Collateral as security for the Obligations adversely. While Secured
Party is not required to take certain actions, if action is needed, in Secured Party’s sole discretion, to preserve and maintain
the Collateral, Company authorizes Secured Party to take such actions, but Secured Party is not obligated to do so.

 

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4. Events of Default. The occurrence of any one
or more of the following events shall constitute an “Event of Default” hereunder:

 

(a) Failure to Pay. The failure
of any Credit Party to pay any sum due under or as part of the Obligations as and when due and payable (whether by acceleration, declaration,
extension or otherwise).

 

(b) Covenants and Agreements.
The failure of Company to perform, observe or comply with any and all of the covenants, promises and agreements of the Company in this
Agreement, which such failure is not cured by the Company within ten (10) days after receipt of written notice thereof from Secured Party,
except that there shall be no notice or cure period with respect to any failure to pay any sums due under or as part of the Obligations.

 

(c) Information, Representations
and Warranties. If any material representation or warranty made herein, or if any information contained in any financial statement,
application, schedule, report or any other document given by the Company in connection with the Obligations, with the Collateral, or with
any Transaction Document, is not in all respects true, accurate and complete, or if the Company omitted to state any material fact or
any fact necessary to make such information not misleading.

 

(d) Default on Other
Obligations. The occurrence of any default under any other borrowing, Obligation or Contract of the Company, if the result of such
default would: (i) permit any Person which is a party to any such borrowing, Obligation or Contract, to accelerate the maturity thereof,
or to cancel or terminate any such borrowing, Obligation or Contract; (ii) cause or be reasonably expected to cause a Material Adverse
Effect; or (iii) materially and adversely affect, as determined by Secured Party in good faith, but in its sole discretion, any of the
Collateral, the value thereof, Secured Party’s rights and remedies to realize upon such Collateral as set forth herein, or the
Secured Party’s ability to comply with the Transaction Documents.

 

(e) Insolvency. Company shall
be or become insolvent or unable to pay its debts as they become due, or admits in writing to such insolvency or to such inability to
pay its debts as they become due.

 

(f) Involuntary Bankruptcy.
There shall be filed against Company an involuntary petition or other pleading seeking the entry of a decree or order for relief under
the Bankruptcy Code or any similar foreign, federal or state insolvency or similar laws ordering: (i) the liquidation of the Company;
or (ii) a reorganization of Company or the business and affairs of Company; or (iii) the appointment of a receiver, liquidator, assignee,
custodian, trustee, or similar official for Company of the property of Company, and the failure to have such petition or other pleading
denied or dismissed within thirty (30) calendar days from the date of filing.

 

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(g) Voluntary Bankruptcy. The
commencement by the Company of a voluntary case under the Bankruptcy Code or any foreign, federal or state insolvency or similar laws
or the consent by the Company to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, or similar
official for Company of any of the property of the Company or the making by the Company of an assignment for the benefit of creditors,
or the failure by the Company generally to pay its debts as the debts become due.

 

(h) Judgments, Awards. The
entry of any final and non-appealable Judgment or other determination or adjudication against the Company and a determination by Secured
Party, in good faith but in its sole discretion, that any such Judgment or other determination or adjudication could have a Material Adverse
Effect, or could otherwise adversely affect the prospect for Secured Party to fully and punctually realize the full benefits conferred
on Secured Party by this Agreement and the other Transaction Documents, or the prospect of repayment of all the Obligations.

 

(i) Injunction. The injunction
or restraint of the Company in any manner from conducting its business in whole or in part and a determination by Secured Party, in good
faith but in its sole discretion, that the same could have a Material Adverse Effect, or could otherwise adversely affect the prospect
for Secured Party to fully and punctually realize the full benefits conferred on Secured Party by this Agreement and the other Transaction
Documents, or the prospect of repayment of all the Obligations.

 

(j) Attachment by Other Parties.
Any Assets of the Company shall be attached, levied upon, seized or repossessed, or come into the possession of a trustee, receiver or
other custodian and a determination by Secured Party, in good faith but in its sole discretion, that the same could have a Material Adverse
Effect, or could otherwise adversely affect the prospect for Secured Party to fully and punctually realize the full benefits conferred
on Secured Party by this Agreement and the other Transaction Documents, or the prospect of repayment of all the Obligations.

 

(k) Adverse Change in Financial
Condition. The determination in good faith by Secured Party that an event has occurred, either in the financial condition or operations
of the Company, or the Collateral, or otherwise, which event could have a Material Adverse Effect, or could otherwise adversely affect
the prospect for Secured Party to fully and punctually realize the full benefits conferred on Secured Party by this Agreement and the
other Transaction Documents.

 

(1)
Adverse Change in Value of Collateral. The determination in good faith by Secured Party that the security for the Obligations
is or has become inadequate.

 

(m) Prospect of Payment or Performance.
The determination in good faith by Secured Party that the prospect for payment or performance of any of the Obligations is impaired for
any reason.

 

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5. Rights and Remedies.

 

(a) Rights and Remedies of Secured
Party. Upon and after the occurrence of an Event of Default, Secured Party may, without notice or demand, exercise in any jurisdiction
in which enforcement hereof is sought, the following rights and remedies, in addition to the rights and remedies available to Secured
Party under the Purchase Agreement and any other Transaction Documents, the rights and remedies of a secured party under the Code, and
all other rights and remedies available to Secured Party under applicable law or in equity, all such rights and remedies being cumulative
and enforceable alternatively, successively or concurrently:

 

(i) Take absolute control of the Collateral
including transferring into the Secured Party’s name or into the name of its nominee or nominees (to the extent the Secured Party
has not theretofore done so) and thereafter receive, for the benefit of the Secured Party, 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 the Company to, and the
Company hereby agrees that it will at its expense and upon request of the Secured Party forthwith, assemble all or part of the Collateral
as directed by the Secured Party and make it available to the Secured Party at a place or places to be designated by the Secured Party
that is convenient to Secured Party, and the Secured Party may enter into and occupy the Business Premises or any other premises owned
or leased by the Company where the Collateral or any part thereof is located or assembled in order to effectuate the Secured Party’s
rights and remedies hereunder or under law, including removing such Collateral therefrom, without any obligation or liability to the Company
in respect of such occupation, the Company HEREBY WAIVING ANY AND ALL RIGHTS TO PRIOR NOTICE AND TO JUDICIAL HEARING WITH RESPECT TO REPOSSESSION
OF COLLATERAL AND THE COMPANY HEREBY GRANTING TO SECURED PARTY AND ITS AGENTS AND REPRESENTATIVES FULL AUTHORITY TO ENTER SUCH PREMISES;

 

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(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 Secured Party’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 Secured Party may deem commercially reasonable; and/or
(B) lease, license or dispose of the Collateral or any part thereof upon such terms as the Secured Party may deem commercially reasonable.
The Company agrees that, to the extent notice of sale or any other disposition of the Collateral shall be required by law, at least ten
(10) days’ notice to the Company of the time and place of any public sale or the time after which any private sale or other disposition
of the Collateral is to be made shall constitute reasonable notification. The Secured Party shall not be obligated to make any sale or
other disposition of any Collateral regardless of notice of sale having been given. The Secured Party 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. The Company hereby waives any claims and actions against the Secured Party arising by reason
of the fact that the price at which any of the 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 Secured Party accepts the first
offer received and does not offer such Collateral to more than one offeree, and waives all rights that the Company may have to require
that all or any part of such Collateral be marshaled upon any sale (public or private) thereof. The Company hereby acknowledges that:
(X) any such sale of the Collateral by the Secured Party shall be made without warranty; (Y) the Secured Party may specifically disclaim
any warranties of title, possession, quiet enjoyment or the like; and (Z) such actions set forth in clauses (X) and (Y) above shall not
adversely affect the commercial reasonableness of any such sale of Collateral. In addition to the foregoing: (1) upon written notice
to the Company from the Secured Party after and during the continuance of an Event of Default, the Company shall cease any use of any
intellectual property or any trademark, patent or copyright similar thereto for any purpose described in such notice; (2) the Secured
Party may, at any time and from time to time after and during the continuance of an Event of Default, license, whether general, special
or otherwise, and whether on an exclusive or non-exclusive basis, any of the Company’s intellectual property, throughout the universe
for such term or terms, on such conditions, and in such manner, as the Secured P arty shall in its sole discretion determine; and (3)
the Secured Party may, at any time, pursuant to the authority granted under this Agreement (such authority being effective upon the occurrence
and during the continuance of an Event of Default), execute and deliver on behalf of the Company, one or more instruments of assignment
of any intellectual property (or any application or registration thereof), in form suitable for filing, recording or registration in
any country.

 

(iv) Operate, manage and control the
Collateral (including use of the Collateral and any other property or assets of Company in order to continue or complete performance of
Company’s obligations under any contracts of Company), or permit the Collateral or any portion thereof to remain idle or store the
same, and collect all rents and revenues therefrom.

 

(v) Enforce the Company’s rights against
any Persons obligated upon any of the Collateral.

 

(vi) The Company hereby acknowledges
that if the Secured Party complies with any applicable foreign, 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.

 

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(vii)
The Secured Party shall not be required to marshal any present or future collateral security (including, 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 Secured Party’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
the Company lawfully may, the Company hereby agrees that it will not invoke any law relating to the marshaling of collateral which might
cause delay in or impede the enforcement of the Secured Party’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, the Company hereby irrevocably waives the benefits
of all such laws.

 

(b) Power of Attorney. Effective
upon the occurrence of an Event of Default, Company hereby designates and appoints Secured Party and its designees as attorney-in-fact
of and for the Company, irrevocably and with full power of substitution, with authority to endorse the Company’s name on any notes,
acceptances, checks, drafts, money orders, instruments or other evidences of payment or proceeds of the Collateral that may come into
Secured Party’s possession; to execute proofs of claim and loss; to adjust and compromise any claims under insurance policies; and
to perform all other acts necessary and advisable, in Secured Party’s sole discretion, to carry out and enforce this Agreement and
the rights and remedies conferred upon the Secured Party by this Agreement, the Purchase Agreement or any other Transaction Documents.
All acts of said attorney or designee are hereby ratified and approved by the Company and said attorney or designee shall not be liable
for any acts of commission or omission, nor for any error of judgment or mistake of fact or law. This power of attorney is coupled with
an interest and is irrevocable so long as any of the Obligations remain unpaid or unperformed or there exists any commitment by Secured
Party which could give rise to any Obligations.

 

(c) Costs and Expenses. The
Company agrees to pay to the Secured Party, upon demand, the amount of any and all costs and expenses, including the reasonable fees,
costs, expenses and disbursements of counsel for the Secured Party and of any experts and agents, which the Secured Party 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 Secured Party hereunder; or (iv) the failure by the
Company to perform or observe any of the provisions hereof. Included in the foregoing shall be the amount of all expenses paid or incurred
by Secured Party in consulting with counsel concerning any of its rights hereunder, under the Purchase Agreement or under applicable law,
as well as such portion of Secured Party’s overhead as Secured Party shall allocate to collection and enforcement of the Obligations
in Secured Party’s sole but reasonable discretion. All such costs and expenses shall bear interest from the date of outlay until
paid, at the highest rate set forth in the Note, or if none is so stated, the highest rate allowed by law. The provisions of this Subsection
shall survive the termination of this Agreement and Secured Party’s security interest hereunder and the payment of all Obligations.

 

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6. Security Interest
Absolute. All rights of the Secured Party and all Obligations of the Company hereunder, shall be absolute and unconditional, irrespective
of: (i) any lack of validity or enforceability of this Agreement, the Purchase Agreement, and any other Transaction Documents or any
agreement entered into in connection with the foregoing, or any portion hereof or thereof; (ii) any change in the time, manner or place
of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent
to any departure from the terms and provisions of the Purchase Agreement, any other Transaction Documents, or any other agreement entered
into in connection with the foregoing; (iii) any exchange, release or non-perfection of any of the Collateral, or any release or amendment
or waiver of or consent to departure from any other collateral for, or any guaranty, or any other security, for all or any of the Obligations;
(iv) any action by the Secured Party to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made
or arising in connection with the Collateral; or (v) any other circumstance which might otherwise constitute any legal or equitable defense
available to the Company, or a discharge of all or any part of the security interests granted hereby. Until the Obligations shall have
been paid and performed in full, the rights of the Secured Party shall continue even if the Obligations are barred for any reason, including,
the running of the statute of limitations or bankruptcy. In the event that at any time any transfer of any Collateral or any payment
received by the Secured Party hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference
or fraudulent conveyance under the Bankruptcy Code or any other similar insolvency or bankruptcy laws of any jurisdiction , or shall
be deemed to be otherwise due to any party other than the Secured Party, then, in any such event, the Company’s obligations hereunder
shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation
of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. The
Company waives all right to require the Secured Party to proceed against any other Person or to apply any Collateral which the Secured
Party may hold at any time, or to pursue any other remedy. The Company waives any defense arising by reason of the application of the
statute of limitations to any obligation secured hereby.

 

7. Indemnity. The Company agrees
to defend, protect, indemnify and hold the Secured Party forever harmless from and against any and all Claims of any nature or kind (including
reasonable legal fees, costs, expenses, and disbursements of counsel) to the extent that they arise out of, or otherwise result from,
this Agreement (including, enforcement of this Agreement). This indemnity shall survive termination of this Agreement.

 

8. Miscellaneous.

 

(a) Performance for
Company. The Company agrees and hereby authorizes that Secured Party may, in Secured Party’s sole discretion, but Secured Party
shall not be obligated to, whether or not an Event of Default shall have occurred, advance funds on behalf of the Company , without prior
notice to the Company, in order to insure the Company’s compliance with any covenant, warranty , representation or agreement of
the Company made in or pursuant to this Agreement, the Purchase Agreement, or any other Transaction Documents, to continue or complete,
or cause to be continued or completed, performance of the Company’s obligations under any Contracts of the Company, or to preserve
or protect any right or interest of Secured Party in the Collateral or under or pursuant to this Agreement, the Purchase Agreement or
any other Transaction Documents, including, the payment of any insurance premiums or taxes and the satisfaction or discharge of any Claim,
Obligation, Judgment or any other Encumbrance upon the Collateral or other property or Assets of Company; provided, however, that the
making of any such advance by Secured Party shall not constitute a waiver by Secured Party of any Event of Default with respect to which
such advance is made, nor relieve the Company of any such Event of Default. The Company shall pay to Secured Party upon demand all such
advances made by Secured Party with interest thereon at the highest rate set forth in the Note, or if none is so stated, the highest
rate allowed by law. All such advances shall be deemed to be included in the Obligations and secured by the security interest granted
Secured Party hereunder; provided, however, that the provisions of this Subsection shall survive the termination of this Agreement and
Secured Party’s security interest hereunder and the payment of all other Obligations.

 

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(b) Applications of Payments and
Collateral. Except as may be otherwise specifically provided in this Agreement or the Purchase Agreement, all Collateral and proceeds
of Collateral coming into Secured Party’s possession and all payments made by any Person to Secured Party with respect to any Collateral
may be applied by Secured Party (after payment of any amounts payable to the Secured Party pursuant to Section 5(c) hereof) to any of
the Obligations, whether matured or unmatured, as Secured Party shall determine in its sole, but reasonable discretion. Any surplus held
by the Secured Party and remaining after the indefeasible payment in full in cash of all of the Obligations shall be paid over to whomsoever
shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct. Secured Party may defer the application
of Noncash Proceeds of Collateral, to the Obligations until Cash Proceeds are actually received by Secured Party. In the event that the
proceeds of any such sale, collection or realization are insufficient to pay all amounts to which the Secured Party is legally entitled,
the Company shall be liable for the deficiency, together with interest thereon at the highest rate specified in the Note 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 Secured Party to collect such deficiency.

 

(c) Waivers
by Company. The Company hereby waives, to the extent the same may be waived under applicable law: (i) notice of acceptance of this
Agreement; (ii) all claims and rights of the Company against Secured Party on account of actions taken or not taken by Secured Party
in the exercise of Secured Party’s rights or remedies hereunder, under the Purchase Agreement, and other Transaction Documents
or under applicable law; (iii) all claims of the Company for failure of Secured Party to comply with any requirement of applicable law
relating to enforcement of Secured Party’s rights or remedies hereunder, under the Purchase Agreement, under any other Transaction
Documents or under applicable law; (iv) all rights of redemption of the Company with respect to the Collateral; (v) in the event Secured
Party seeks to repossess any or all of the Collateral by judicial proceedings, any bond(s) or demand(s) for possession which otherwise
may be necessary or required; (vi) presentment, demand for payment, protest and notice of non-payment and all exemptions applicable to
any of the Collateral or the Company; (vii) any and all other notices or demands which by applicable law must be given to or made upon
the Company by Secured Party; (viii) settlement, compromise or release of the obligations of any Person primarily or secondarily liable
upon any of the Obligations; (ix) all rights of the Company to demand that Secured Party release account debtors or other Persons liable
on any of the Collateral from further obligation to Secured Party; and (x) substitution, impairment, exchange or release of any Collateral
for any of the Obligations. The Company agrees that Secured Party may exercise any or all of its rights and/or remedies hereunder, under
the Purchase Agreement, the other Transaction Documents and under applicable law without resorting to and without regard to any Collateral
or sources of liability with respect to any of the Obligations. Upon termination of this Agreement and Secured Party’s security
interest hereunder and payment of all Obligations, within five (5) Business Days following the Company’s request to Secured Party,
Secured Party shall release control of any security interest in the Collateral perfected by control and Secured Party shall send Company
a statement terminating any financing statement filed against the Collateral.

 

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(d) Waivers by Secured Party.
No failure or any delay on the part of Secured Party in exercising any right, power or remedy hereunder, under this Agreement, the Purchase
Agreement, and other Transaction Documents or under applicable law, shall operate as a waiver thereof.

 

(e) Secured Party’s Setoff.
Secured Party shall have the right, in addition to all other rights and remedies available to it, following an Event of Default, to set
off against any Obligations due Secured Party, any debt owing to the Company by Secured Party.

 

(f) Modifications, Waivers and Consents.
No modifications or waiver of any provision of this Agreement, the Purchase Agreement, or any other Transaction Documents, and no consent
by Secured Party to any departure by the Company therefrom, shall in any event be effective unless the same shall be in writing, and then
such waiver or consent shall be effective only in the specific instance and for the purpose for which given, and any single or partial
written waiver by Secured Party of any term, provision or right of Secured Party hereunder shall only be applicable to the specific instance
to which it relates and shall not be deemed to be a continuing or future waiver of any other right, power or remedy. No notice to or demand
upon the Company in any case shall entitle Company to any other or further notice or demand in the same, similar or other circumstances.

 

(g) Notices. Except as otherwise
provided herein, the Company waives all notices and demands in connection with the enforcement of Secured Party’s rights hereunder.
All notices, requests, demands and other communications provided for hereunder shall be made in accordance with the terms of the Purchase
Agreement, and the Company agrees and acknowledges that notice to each of them may be sent and delivered to the Company, as required under
the Purchase Agreement, and such notice to the Company shall be deemed valid and effective notice to Company hereunder.

 

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(h) Applicable
Law and Consent to Jurisdiction. The Company and the Secured Party each irrevocably agrees that any dispute arising under, relating
to, or in connection with, directly or indirectly, this Agreement or related to any matter which is the subject of or incidental to this
Agreement (whether or not such claim is based upon breach of contract or tort) shall be subject to the exclusive jurisdiction and venue
of the state and/or federal courts located in the State of New York; provided, however, Secured Party may, at its sole option, elect
to bring any action in any other jurisdiction. This provision is intended to be a “mandatory” forum selection clause and
governed by and interpreted consistent with New York law. The Company and Secured Party each hereby consents to the exclusive jurisdiction
and venue of any state or federal court having its situs in the State of New York, and each waives any objection based on forum non conveniens.
The Company hereby waives personal service of any and all process and consent that all such service of process may be made by certified
mail, return receipt requested, directed to the Company, as set forth herein or in the manner provided by applicable statute, law, rule
of court or otherwise. Except for the foregoing mandatory forum selection clause, this Agreement shall be construed in accordance with
the laws of the State of Wyoming, without regard to the principles of conflicts of laws, 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 under the Code by the law of a jurisdiction other than the State of Wyoming, in which
case such issues shall be governed by the laws of the jurisdiction governing such issues under the Code.

 

(i) Survival: Successors and Assigns.
All covenants, agreements, representations and warranties made herein shall survive the execution and delivery hereof, shall survive Closing
and shall continue in full force and effect until all Obligations have been paid in full, there exists no commitment by Secured Party
which could give rise to any Obligations and all appropriate termination statements have been filed terminating the security interest
granted Secured Party hereunder. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to
include the successors and assigns of such party. In the event that Secured Party assigns this Agreement and/or its security interest
in the Collateral, Secured Party shall give written notice to the Company of any such assignment and such assignment shall be binding
upon and recognized by the Company (provided that failure to deliver any such written notice shall not impair, negate or otherwise adversely
affect any of the Secured Party’s rights or remedies under this Agreement or any other Transaction Documents). All covenants, agreements,
representations and warranties by or on behalf of the Company which are contained in this Agreement shall inure to the benefit of Secured
Party, its successors and assigns. The Company may not assign this Agreement or delegate any of its rights or obligations hereunder, without
the prior written consent of Secured Party, which consent may be withheld in Secured Party’s sole and absolute discretion.

 

(j) Severability. If any term,
provision or condition, or any part thereof, of this Agreement shall for any reason be found or held invalid or unenforceable by any court
or governmental authority of competent jurisdiction, such invalidity or unenforceability shall not affect the remainder of such term,
provision or condition nor any other term, provision or condition, and this Agreement shall survive and be construed as if such invalid
or unenforceable term, provision or condition had not been contained therein.

 

(k) Merger and Integration.
This Agreement and the attached Schedules (if any), together with the Purchase Agreement and the other Transaction Documents, contain
the entire agreement of the parties hereto with respect to the matters covered and the transactions contemplated hereby and thereby, and
no other agreement, statement or promise made by any party hereto or thereto, or by any employee, officer, agent or attorney of any party
hereto, which is not contained herein or therein shall be valid or binding.

 

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(1) WAIVER
OF JURY TRIAL. THE COMPANY HEREBY: (a) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY A JURY;
AND (b) WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE COMPANY AND SECURED PARTY MAY BE PARTIES, ARISING OUT OF, IN CONNECTION
WITH OR IN ANY WAY PERTAINING TO THIS AGREEMENT, THE PURCHASE AGREEMENT AND/OR ANY TRANSACTIONS, OCCURRENCES, COMMUNICATIONS, OR UNDERSTANDINGS
(OR THE LACK OF ANY OF THE FOREGOING) RELATING IN ANY WAY TO DEBTOR- CREDITOR RELATIONSHIP BETWEEN THE PARTIES. IT IS UNDERSTOOD AND
AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING
CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS SECURITY AGREEMENT. THIS WAIVER OF JURY TRIAL IS SEPARATELY GIVEN, KNOWINGLY, WILLINGLY
AND VOLUNTARILY MADE BY THE COMPANY AND THE COMPANY HEREBY AGREES THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL
TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. SECURED PARTY IS HEREBY AUTHORIZED TO SUBMIT THIS
AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE COMPANY AND SECURED PARTY, SO AS TO SERVE AS CONCLUSIVE EVIDENCE
OF SUCH WAIVER OF RIGHT TO TRIAL BY JURY. THE COMPANY REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT
AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND/OR THAT IT HAS HAD THE OPPORTUNITY
TO DISCUSS THIS WAIVER WITH COUNSEL.

 

(m) Execution. This Agreement
may be executed in one or more counterparts, all of which taken together shall be deemed and considered one and the same Agreement, and
same shall become effective when counterparts have been signed by each party and each party has delivered its signed counterpart to the
other party. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format
file or other similar format file, such signature shall be deemed an original for all purposes and shall create a valid and binding obligation
of the party executing same with the same force and effect as if such facsimile or “.pdf” signature page was an original thereof.

 

(n) Headings. The headings
and sub-headings contained in the titling of this Agreement are intended to be used for convenience only and shall not be used or deemed
to limit or diminish any of the provisions hereof.

 

(o) Termination.
This Agreement and the security interests hereunder shall terminate on (i) the date on which all Obligations have been indefeasibly paid
or discharged in full and there are no commitments outstanding for Secured Party to advance any funds to the Company and/or Company,
either under the Purchase Agreement, the Transaction Documents or any other Contract; or (ii) the date on which the Company has secured
listing for its common stock on The Nasdaq Stock Market, the New York Stock Exchange, or other national securities exchange. Upon such
termination, the Secured Party, at the request and at the expense of the Company, will join in executing any termination statement with
respect to any financing statement executed and filed pursuant to this Agreement.

 

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(p) Gender and Use of Singular and
Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the party
or parties or their personal representatives, successors and assigns may require.

 

(q) Further Assurances. The
parties hereto will execute and deliver such further instruments and do such further acts and things as may be reasonably required to
carry out the intent and purposes of this Agreement.

 

(r) Time is of the Essence.
The parties hereby agree that time is of the essence with respect to performance of each of the parties’ obligations under this
Agreement. The parties agree that in the event that any date on which performance is to occur falls on a Saturday, Sunday or state or
national holiday, then the time for such performance shall be extended until the next business day thereafter occurring.

 

(s) Joint Preparation. The preparation
of this Agreement has been a joint effort of the parties and the resulting documents shall not, solely as a matter of judicial construction,
be construed more severely against one of the parties than the other.

 

(t) Increase in Obligations.
It is the intent of the parties to secure payment of the Obligations, as the amount of such Obligations may increase from time to time
in accordance with the terms and provisions of the Purchase Agreement, and all of the Obligations, as so increased from time to time,
shall be and are secured hereby. Upon the execution hereof, the Company shall pay any and all documentary stamp taxes and/or other charges
required to be paid in connection with the execution and enforcement of the Purchase Agreement and this Agreement, and if, as and to the
extent the Obligations are increased from time to time in accordance with the terms and provisions of the Note, then the Company shall
immediately pay any additional documentary stamp taxes or other charges in connection therewith.

 

[signature page follows]

 

    19

     

    

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Security
Agreement as of the day and year first above written.

 

	 	COMPANY:
	 	 	 
	 	FUTURIS COMPANY
	 	 	 
	 	By:	 
	 	Name:	Kalyan Pathuri
	 	Title:	Chief Executive Officer
	 	 	 
	 	SECURED PARTY:
	 	 	 
	 	AJB Capital Investments, LLC
	 	 	 
	 	By:	 
	 	Name: 	Ari Blaine
	 	Title:	Partner

 

 

20Document

AEROJET ROCKETDYNE HOLDINGS, INC.
2019 EQUITY AND PERFORMANCE INCENTIVE PLAN

Restricted Stock Unit Agreement

WHEREAS, Participant Name (the “Grantee”) is an employee of Aerojet Rocketdyne Holdings, Inc. (the “Company”) or a Subsidiary of the Company (a “Subsidiary”); and

WHEREAS, the grant of an award of restricted stock units has been duly authorized by a resolution of the Organization & Compensation Committee (the “Committee”) of the Board of Directors.

NOW, THEREFORE, pursuant to the Company’s 2019 Equity and Performance Incentive Plan (the “Plan”), the Company hereby grants to the Grantee, as of Grant Date (the “Date of Grant”), Number of Awards Granted restricted stock units (the “Restricted Stock Units” or the “RSUs”). Each Restricted Stock Unit represents the right to receive one share of the Company’s common stock, par value $0.10 per share (the “Stock”), subject to the terms and conditions of the Plan and this Restricted Stock Unit Agreement (the “Agreement”).

1.    Issuance of Stock. Any Stock underlying the RSUs that becomes vested in accordance with the terms and conditions of this Agreement shall be settled as soon as practicable following vesting and in no case after the later of (i) the last day of the calendar year in which the Stock underlying the RSUs becomes vested and (ii) the fifteenth (15th) day of the third (3rd) calendar month following such vesting date. Any Stock issued pursuant to this Agreement shall be fully paid and nonassessable and shall be represented by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company.

2.    Restrictions on Transfer of RSUs. The RSUs subject to this Agreement may not be transferred, sold, pledged, exchanged, assigned or otherwise encumbered or disposed of by the Grantee and all rights with respect to the RSUs granted hereunder shall be available only to the Grantee during the Grantee’s lifetime. Any purported transfer, encumbrance or other disposition of the RSUs covered by this Agreement that is in violation of this Section will be null and void, and the other party to any such purported transaction will not obtain any rights to or interest in the RSUs covered by this Agreement. When and as permitted by the Plan, the Company may waive the restrictions set forth in this Section with respect to all or any portion of the RSUs covered by this Agreement.

3.    Vesting of RSUs.

    

(a)    Provided that the Grantee remains in continuous employment as an employee of the Company or Subsidiary through such date, the RSUs covered by this Agreement will become vested and nonforfeitable on:

Vesting Schedule

(b)    For the purposes of this Agreement, the continuous employment of the Grantee with the Company or a Subsidiary shall not be deemed to have been interrupted, and the Grantee will not be deemed to have ceased to be an employee of the Company or a Subsidiary, by reason of (A) the transfer of his employment among the Company and its Subsidiaries or (B) an approved leave of absence.

(c)    Notwithstanding the provisions of Subsection (a) of this Section, in the event of a change in control of the Company that occurs pursuant to that certain Agreement and Plan of Merger, dated as of December 20, 2020, by and among Lockheed Martin Corporation (“Lockheed”), Mizar Sub, Inc., and the Company (the “Merger Agreement”) while the Grantee is an employee of the Company, each unvested RSU covered by this Agreement will be canceled, and the Grantee will be entitled to receive either a new award or a cash payment pursuant to Section 5.3(f) of the Merger Agreement. In the event that the Merger Agreement is terminated prior to the consummation of the transactions contemplated thereby, then, notwithstanding the provisions of Subsection (a) of this Section, all of the RSUs covered by this Agreement will become immediately vested and nonforfeitable upon the occurrence of any change in control of the Company that shall occur following the termination of the Merger Agreement. For the purposes of this Agreement, the term “change in control” will have the meaning given such term under the Plan as in effect on the Date of Grant.

4.    Forfeiture of RSUs.

(a)    The RSUs covered by this Agreement that have not become vested and nonforfeitable in accordance with Section 3 hereof shall be forfeited upon Grantee’s Termination of Employment unless the Committee determines to provide otherwise. In the event of a forfeiture, the RSUs covered by this Agreement that have not become vested and nonforfeitable in accordance with Section 3 hereof shall be cancelled.

(b)    Notwithstanding the provisions of Section 3 hereof, all of the RSUs covered by this Agreement, and any Stock that has been issued upon vesting of the RSUs, shall be subject to cancellation, forfeiture or recoupment upon the occurrence of any of the following events: (i) termination of the Grantee’s employment for cause; (ii) the Grantee’s violation of material Company or Subsidiary policies or breach of applicable noncompetition or confidentiality covenants; and (iii) conduct by the Grantee that is detrimental to the business or reputation of the Company or its Subsidiary.

5.    Dividend Equivalents, Voting and Other Rights as a Shareholder. The Grantee will not have any of the rights of a shareholder with respect to the Stock underlying the 

RSUs covered by this Agreement, including voting rights, unless and until such shares of Stock settled for such RSUs shall have been issued by the Company to the Grantee (as evidenced on the appropriate books of the Company or of a duly authorized transfer agent of the Company). Notwithstanding the foregoing, the RSUs shall accrue dividend equivalents with respect to dividends that would otherwise be paid on the shares of Stock underlying such RSUs during the period from the Date of Grant to the date such shares of Stock are delivered in accordance with Section 1. As of any date that the Company pays a cash dividend on its Stock, the Company shall credit the Grantee with a dollar amount equal to (i) the per share cash dividend paid by the Company on its Stock on such date, multiplied by (ii) the total number of RSUs subject to this award that are outstanding immediately prior to the record date for such dividend (the “Dividend Equivalent Right”). Any such Dividend Equivalent Rights credited pursuant to the preceding sentence shall be subject to the same vesting conditions, payment and all other terms and conditions applicable to the original RSUs to which they relate, including tax withholding obligations, except that any vested Dividend Equivalent Rights shall in all cases be paid in cash.

6.    Compliance with Law. The Company will make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any Stock pursuant to this Agreement if the issuance thereof would result in a violation of any such law.

7.    Restrictions on Resale of Stock. The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by the Grantee or other subsequent transfers by the Grantee of any shares of Stock issued pursuant to vested RSUs, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by Grantee and other holders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers.

8.    Adjustments. The Committee may make adjustments, consistent with the Section 409A Rules, in the terms and conditions of, and the criteria included in, this Agreement, in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.4 of the Plan) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on the Grantee under the Plan.

9.    Withholding Taxes.

(a)    Upon the vesting of any portion of the RSUs, the Grantee shall be required to pay to the Company any applicable Federal, state, local or foreign withholding tax due, if any, as a result of such vesting. The Company’s obligation to deliver the Stock shall be subject to such payment. The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Grantee the minimum statutory amount (or, if and when the Company adopts any applicable accounting standard allowing for greater share withholding, up to such withholding rate that will not cause an adverse accounting consequence or cost) to satisfy Federal, state, local or foreign withholding taxes due with respect to such vesting.

(b)    Subject to (i) the Committee’s right to disapprove any such election and require the Grantee to pay the required withholding tax, if any, in cash, (ii) any Company policies, and (iii) applicable laws, the Grantee shall have the right to elect to pay the minimum (or, if and when the Company adopts any applicable accounting standard allowing for greater share withholding, up to such withholding rate that will not cause an adverse accounting consequence or cost) required withholding tax payable at vesting by having the Company withhold shares of Stock otherwise issuable upon vesting and settlement. Any such election shall be irrevocable, made in writing and signed by the Grantee. If vesting occurs within a closed window period during which the Grantee is prohibited by the Company’s policies from trading in Company securities, the Company shall retain shares to be received at vesting to pay the minimum (or, if and when the Company adopts any applicable accounting standard allowing for greater share withholding, up to such withholding rate that will not cause an adverse accounting consequence or cost) required withholding tax to be paid at vesting. Shares of Stock used to pay any required withholding tax shall be valued at the same time and in the same manner that vested shares of Stock are valued for purposes of determining the required withholding taxes.

10.    Employment Rights. The Plan and this Agreement will not confer upon the Grantee any right with respect to the continuance of employment or other service with the Company or any Subsidiary and shall not interfere in any way with any right that the Company or any Subsidiary would otherwise have to terminate any employment or other service of the Grantee at any time.

11.    Relation to Other Benefits. Any economic or other benefit to the Grantee under this Agreement shall not be taken into account in determining any benefits to which the Grantee may be entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by the Company or a Subsidiary.

12.    Notices. Any notice necessary under this Agreement will be addressed to the Company or the Committee at the principal executive office of the Company and to the Grantee at the address appearing in the personnel records of the Company for such Grantee, or to either party at such other address as either party may designate in writing to the other. Any such notice will be deemed effective upon receipt thereof by the addressee.

13.    Agreement Subject to the Plan. The RSUs granted under this Agreement and all of the terms and conditions hereof are subject to all of the terms and conditions of the Plan. In the event of any inconsistency between this Agreement and the Plan, the terms of the Plan shall govern.

14.    Amendments. The Committee may amend this Agreement. Any amendment to the Plan will be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect the rights of the Grantee under this Agreement without the Grantee’s consent, except as required under the tax laws.

15.    Severability. In the event that one or more of the provisions of this Agreement is invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof will continue to be valid and fully enforceable.

16.    Governing Law. This Agreement will be construed and governed in accordance with the laws of the State of Delaware without regard to its conflict of laws principles.

17.    Certain Defined Terms. In addition to the terms defined elsewhere herein, when used in the Agreement, terms with initial capital letters have the meaning given such term under the Plan, as in effect from time to time. 

This Agreement is effective as of Grant Date.

AEROJET ROCKETDYNE HOLDINGS, INC.
                        

    
By:    ___________________________ 
Arjun L. Kampani
Vice President, General Counsel and Secretary

The undersigned Grantee hereby acknowledges receipt of an executed original of this Restricted Stock Unit Agreement and accepts the right to receive the Restricted Stock Units subject to the terms and conditions of the Plan and the terms and conditions herein above set forth.

Electronic Signature
                                                
Participant Name

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