Document:

Form of Convertible Promissory Note

 Exhibit 10.2 
  
 Exhibit A 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, OFFERED, PLEDGED OR
OTHERWISE DISTRIBUTED FOR VALUE UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND SUCH LAWS COVERING THIS NOTE OR THE COMPANY RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT,
OFFER, PLEDGE OR OTHER DISTRIBUTION FOR VALUE IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND SUCH LAWS. 
  
 OPTICAL SENSORS INCORPORATED 
 CONVERTIBLE PROMISSORY NOTE 
  

			
	 $                    
	  	                            ,
2006
	 	  	Minneapolis, Minnesota

  
 Optical Sensors
Incorporated, a Delaware corporation d/b/a väsamed (the “Company”), for value received, promises to pay to
                    , or its permitted assigns (the “Holder”), the principal sum of
             Dollars ($            ) plus simple interest at the rate of 10% per annum from the date of
this Note until this Note is fully paid or converted pursuant to its terms. This Note is issued pursuant to the Note and Warrant Purchase Agreement dated January    , 2006 between the Company and the Holder (the
“Agreement”) and is subject to the terms and conditions of the Agreement, which is hereby incorporated by reference. 
  
 This Note is one of a series of convertible promissory notes up to an aggregate amount of Four Million Five Hundred Thousand Dollars ($4,500,000) issued
pursuant to Note and Warrant Purchase Agreements with the Company. This Note, along with the other convertible promissory notes, is secured by a lien on certain assets of the Company as set forth in the Security Agreement executed by the Company,
the Holder and the other convertible promissory note holders. 
  
 This Note shall mature and the entire outstanding principal amount, together with all interest accrued under this Note, shall become due and payable on
                        , 2007, the date that is eighteen (18) months from the date of this Note. 
  
 The Company waives demand, presentment, protest, notice of dishonor and any
other form of notice that may be required to hold the Company liable hereunder. 
  
 This Note is subject to the following terms and conditions: 
  
 1. Payment. This Note may be prepaid in whole or in part at any time or from time to time, on ten (10) days’ prior written notice to the Holder, without premium or penalty. 
  
  
  
 2. Conversion. 
  
 2.1 Optional Conversion. The Holder shall have the right at any time, and from time to time, to convert all or any portion of principal balance of
this Note into shares of the 

 
Company’s Series C Preferred Stock, $.01 par value (“Series C Stock”) at a conversion price of $90.00 per share of Series C Stock. All
accrued and unpaid interest on any principal so converted shall, at the Company’s option, be paid (i) in shares of Series C Stock at the time of conversion, or (ii) in cash in accordance with the interest provisions of the Note. Upon
conversion, this Note must be surrendered and accompanied by a written conversion notice (hereinafter referred to as the “Conversion Notice”) delivered to the Company at its principal office during usual business hours. 

 
 2.2 Automatic Conversion. All outstanding principal and, at the
Company’s election, accrued interest under the Note will automatically convert into shares of Series C Preferred stock at a conversion price of $90.00 per share of Series C Stock, upon (i) the closing of a private placement of equity
securities in one or more transactions with gross proceeds to the Company of at least $5 million before deduction of agent’s commissions and expenses, or (ii) upon an acquisition of the Company or of all or substantially all of its assets.
All accrued and unpaid interest on any principal so converted, at the Company’s option, shall be paid (i) in shares of Series C Stock at the time of conversion, or (ii) in cash in accordance with the interest provisions of the Note.
 
  
 2.3 Conversion Securities. The securities
issuable upon conversion of this Note pursuant to this Article 2 are referred to herein as the “Conversion Securities.” 
  
 2.4 Issuance of Series C Stock. The conversion of this Note will be deemed to have been made at the close of business on the date on which this
Note has been surrendered for conversion with the Conversion Notice duly executed or automatically converted pursuant to Section 2.2 of this Note (the “Conversion Date”). As of the Conversion Date, the rights of the Holder as a
noteholder with respect to that portion of this Note which is so converted will cease and the Holder will be treated for all purposes as having become the record holder or holders of the Conversion Securities as of such Conversion Date. No
fractional shares of Conversion Securities will be issued upon the conversion of this Note, but, instead of any fraction of a share which would otherwise be issuable, the Company will deliver an amount of cash equal to such fraction multiplied by
the $90.00 conversion price. 
  
 2.5 Covenants of Company.
The Company covenants that all of the Conversion Securities will, upon issuance, be duly authorized and issued, fully paid, nonassessable and free from all taxes, liens and charges with respect to the issue thereof. The Company further covenants
that during the period within which this Note may be converted, the Company will at all times have authorized, and reserved free of preemptive or other rights for the purpose of issue, such number of shares of Conversion Securities as shall then be
issuable upon conversion of this Note as herein provided. 
  
 3. Consolidation,
Merger, Sale or Conveyance 
  
 3.1 Generally. Nothing
contained in this Note will prevent any consolidation or merger of the Company with or into any other corporation or corporations or successive consolidations or mergers in which the Company or its successor or successors is a party or parties, or
will prevent any sale or conveyance of the property of the Company as an entirety or substantially as an entirety to any other corporation authorized to acquire and operate the same. However, the Company hereby covenants and agrees that any such
consolidation, merger, sale or conveyance will be upon the condition that (a) immediately after such consolidation, merger, 

  

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sale or conveyance the corporation (whether the Company or such other corporation) formed by or surviving any such consolidation or merger, or to which such
sale or conveyance will have been made, will not be in default in the performance or observance of any of the terms, covenants and conditions of this Note to be kept or performed by the Company; and (b) the corporation (whether the Company or
such other corporation) formed by or surviving any such consolidation or merger, or to which such sale or conveyance will have been made, will expressly assume the due and punctual payment of the principal of this Note, according to the terms of
this Note, and the faithful performance and observance of all of the covenants, conditions, and requirements of this Note to be performed by the Company by a supplemental instrument executed and delivered to the Holder by such corporation.

  
 3.2 Release; Liability of Successor Corporation. In
case of any such consolidation, merger, sale or conveyance, and upon the assumption by any successor corporation pursuant to Section 3.1 above, such successor corporation will succeed to and be substituted for the Company, with the same effect
as if it had been named in this Note in the Company’s place, and the Company (including any intervening successor to the Company which has become obligated under this Note) will be relieved of any further obligation under this Note. All of the
covenants, stipulations, promises, and agreements contained in this Note by or on behalf of the Company will bind its successors and assigns, whether so expressed or not. 
  
 4. Default 
  
 4.1 Events of Default. An “Event of Default” will be deemed to occur upon the happening of any of the following: (a) the failure to
pay when due any amount of principal payable hereunder, (b) the filing against the Company which is not dismissed within 60 days thereafter, or by the Company, of a petition in bankruptcy or for an arrangement or reorganization, (c) the
making by the Company of a general assignment for the benefit of creditors, (d) the appointment of a receiver or trustee for the Company, (e) the institution of liquidation or dissolution or reorganization proceedings with respect to the
Company, (f) the Company becoming unable or admitting in writing an inability to pay its debts generally as they become due, or (g) the occurrence of any breach by the Company of any representation, warranty or covenant of the Company
under the Agreement, which is not cured within thirty (30) days of written notice from the Holder. 
  
 4.2 Rights on Default. If an Event of Default occurs and is continuing, the Holder may declare the principal of this Note, if not already due, to
be due and payable immediately, by written notice to the Company; provided, however, that all amounts due under this Note shall be automatically due and payable, without any action of the Holder, upon an Event of Default pursuant to
Sections 4.1(b) - 4.1(f) above. Upon any such declaration, such principal will become due and payable immediately, anything contained in this Note to the contrary notwithstanding. 
  
 4.3 Enforcement. If the principal of this Note becomes due and payable immediately, whether by
declaration of the Holder or automatically, the Holder may proceed to protect and enforce its rights by an action at law, suit in equity, or other appropriate proceeding. The Company shall pay all costs and expenses of collection, including, without
limitation, attorneys’ fees and disbursements in the event that any action, suit or proceeding shall be brought by the Holder hereof to collect this Note. 
  

 3 

 5 Miscellaneous. 
  

	 	5.2	Headings. The headings in this Note are inserted for convenience only and will not affect the meaning or interpretation of all or any part of this Note.

  

	 	5.3	Governing Law. This Note will be deemed to be a contract made under the laws of the State of Minnesota, and for all purposes will be construed in accordance with the laws of
the State of Minnesota. 

  

	 	5.4	Construction. Wherever possible, each provision of this Note will be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of
this Note is prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Note.

  

	 	5.5	Amendments. This Note may not be and will not be deemed or construed to have been modified, amended, rescinded, canceled or waived, in whole or in part, except by a written
instrument signed by the Company and the Holder. 

  

	 	5.6	Payment Date. In case the Maturity Date or the date fixed for prepayment of this Note is not a business day, then payment of principal to the Holder need not be made on such
date, but may be made on the next succeeding business day with the same force and effect as if made on the Maturity Date or the date fixed for prepayment. 

  
 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the date set forth above. 
  

			
	 OPTICAL SENSORS INCORPORATED

		
	 By
	 	  

	 	 	Paulita LaPlante
	 	 	President and Chief Executive Officer

  

 4Form of Security Agreement

 Exhibit 10.3 
  
 SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT is made and entered effective as of the      day of
                    , 2006, by and between OPTICAL SENSORS INCORPORATED, a Delaware corporation d/b/a väsamed (“Debtor”), and
the parties listed on Exhibit A made a party hereto from time to time by the execution of a separate signature page (each a “Secured Party” and collectively, the “Secured Parties”). 
  
 W I T N E S S E
T H: 
  
 WHEREAS, in a bridge loan financing, Debtor
has entered into a series of Convertible Promissory Notes up to an aggregate principal amount of Four Million Five Hundred Thousand Dollars ($4,500,000) (the “Notes”) with the Secured Parties for the amounts set forth in Exhibit A
attached hereto, which Exhibit shall be amended by Debtor from time to time to include as Secured Parties all purchasers of Notes in the financing with each additional Secured Party executing a separate signature page hereto; 
  
 WHEREAS, Debtor is indebted to the Secured Parties pursuant to the Notes; and

  
 WHEREAS, to secure payment and performance of all obligations
of Debtor to Secured Parties under the Notes, Debtor has granted Secured Parties a security interest in certain of its assets more fully described in Exhibit B attached hereto. 
  
 NOW, THEREFORE, in consideration of the promises and mutual undertakings contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
  
 1. DEFINITIONS. 
  
 (a) The term “Liabilities” shall mean any and all obligations of Debtor to Secured Parties under the Notes. 
  
 (b) The terms “Collateral” or “Security” shall mean
Debtor’s assets described in Exhibit B attached hereto. 
  
 2. SECURITY INTEREST IN COLLATERAL. 
  
 (a) The
Debtor hereby grants to the Secured Parties a first-in-priority lien on and a continuing security interest in the Collateral together with all substitutions, replacements and proceeds, including all of the foregoing now in existence and all thereof
hereafter acquired by Debtor at any time or times regardless of whether prior to, contemporaneously with or subsequent to the incurring of any of the Debtor’s Liabilities to the Secured Parties. 

 (b) The security interest created herein shall attach without the execution or delivery to the Secured
Parties of any instruments, documents, assignments or other agreements of transfer, and in the event that any such instruments, documents or other agreements of transfer are or will be delivered to the Secured Parties, the same are and will be in
furtherance of the security interest created by virtue of this Agreement. 
  
 (c) This security interest is given to secure payment and performance of the Liabilities of the Debtor to the Secured Parties. 
  

(d) At any time and from time to time, upon the request of the Secured Parties representing more than fifty percent (50%) of the total collective
principal amount of the Notes (the “Majority Holders”), the Debtor will give, execute, deliver, file and/or record any notice, statement, instrument, document, agreement or other papers that may be necessary, or that the Majority Holders
may reasonably request, in order to preserve, perfect or validate any security interest granted pursuant hereto or to enable the Secured Parties to exercise and enforce their rights hereunder or with respect to such security interest. 
  
 (e) The right is expressly granted to the Majority Holders at their
discretion, to file in those jurisdictions where the same is permitted, one or more financing statements under the Uniform Commercial Code signed only Hayden R. Fleming on behalf of the Secured Parties, and indicating therein the types or describing
the items of Security herein specified. Without the prior written consent of the Majority Holders, the Debtor shall not file or authorize or permit to be filed in any jurisdiction any such financing or like statement other than such a statement
naming the Secured Parties as the secured party. 
  
 3.
REPRESENTATIONS AND WARRANTIES. 
  
 The Debtor does
hereby warrant, covenant and represent to the Secured Parties that until such time as the Liabilities have been paid in full: 
  
 (a) The Collateral is and shall be owned solely by the Debtor. The security interest granted herein is and will at all times be valid and subsisting. The
Collateral shall remain free and clear from any prior or subsequent assignment, lien, pledge, mortgage, encumbrance or security interest. 
  
 (b) The Debtor shall not, without the prior written approval of the Majority Holders, make any sale, transfer or assignment of the Collateral or create
or permit the existence of any lien, pledge, mortgage, encumbrance or security interest, other than those of the Secured Parties, thereon or therein, nor permit the same to be reached by any judicial process. 
  
 (c) The Debtor shall defend the title of the Collateral and the security
interest herein created at his own cost and expense. 
  
 (d) The
execution, delivery and performance hereof do not contravene the Articles of Incorporation or Bylaws of Debtor or any indenture, agreement or undertaking to which Debtor is a party or by which it is bound. 
  

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 (e) The Debtor, on demand of the Majority Holders, shall (or cause the same to be done) execute,
acknowledge and deliver all such further instruments and papers, and take all such further action, as may be requested by the Majority Holders to effectuate the purposes hereof, or to provide the rights and remedies of the Secured Parties
contemplated hereby, or to avoid any breach hereof. 
  
 4.
EVENTS OF DEFAULT; ACCELERATION. An Event of Default shall be deemed to have occurred hereunder (i) if there is any default under the Notes, or (ii) if the Debtor shall default in the performance of any of its agreements,
representations, warranties or covenants made herein or in any instrument or document delivered to the Secured Parties simultaneously herewith, or (iii) if any warranty, representation or statement made or furnished to the Secured Parties in
connection with this Security Agreement proves to have been false or misleading in any respect when made or furnished, or (iv) if the Debtor becomes insolvent (whether such insolvency shall result from an inability to pay debts as they mature
or shall result from having liabilities in excess of the fair market value of its assets), commits any act of bankruptcy or makes a general assignment for the benefit of creditors, or (v) if any final judgment is docketed or lien filed against
Debtor (unless satisfied within 30 days or bonded on appeal), or (vi) if a petition in bankruptcy or for any relief under any law relating to the relief of debtors, readjustment of indebtedness, reorganization, composition or extension shall be
filed, or any proceeding shall be instituted under any such law by or against Debtor which remains undismissed for a period of thirty (30) days. 
  
 If there is an Event of Default hereunder, then the Liabilities shall, at the option of the Majority Holders, without notice of demand, become
immediately due and payable. 
  
 5. RIGHTS AND REMEDIES UPON
DEFAULT. 
  
 (a) The Secured Parties shall have the rights
and remedies with respect to the Collateral of a secured party under the Uniform Commercial Code. Upon the occurrence of an Event of Default hereunder, the Majority Holders shall have the right to appoint a receiver with notice to the Debtor. In
addition, with respect to the Collateral, or any part thereof, the Majority Holders may, in the Event of Default sell or cause the Collateral to be sold, at such price and terms as the Majority Holders may deem best, at public or private sale,
without demand of performance or notice of intention to sell or of time or place of sale (except such notice as is required by applicable statute and cannot be waived) and any Secured Party or anyone else may be the purchaser of any or all of the
Collateral so sold and thereafter hold the same absolutely, free from any claim or right of whatsoever kind, including any equity of redemption of the Debtor, any such demand, notice or right and equity being hereby expressly waived and released.
The Debtor shall pay to the Secured Parties the expenses, including reasonable attorneys’ fees, incidental to the enforcement against the Debtor of any of the provisions hereof, or of any of the Liabilities, or any actual or attempted sale,
retaking, enforcement, collection, compromise or settlement of any of the Collateral or receipt of the proceeds thereof, and for the care of the Collateral and defending or asserting the rights and claims of the Secured Parties in respect thereof,
by litigation or otherwise, including expenses of insurance and all such expenses shall be Liabilities within the terms of this Agreement. The Majority Holders may exercise all or any 

  

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number of the Secured Parties’ rights and remedies (and they shall be cumulative and not alternative) which it may have hereunder and under the Note,
and any other paper delivered by the Debtor, in connection with any of the Liabilities, to the Secured Parties, and under the Uniform Commercial Code or any other law, or otherwise, at any time or times, and in whole or in part. The Secured Parties
shall be under no liability to anyone for the exercise of any such rights or for any failure to exercise any thereof, and such exercise or failure shall not affect or discharge any liability of the Debtor or any other person. If the proceeds of any
sale of other lawful disposition of the Collateral following an Event of Default are insufficient to pay the expenses, including attorneys’ fees, of retaking, holding, preparing it for sale or other disposition and selling it or otherwise
disposing it, and to satisfy all of the Liabilities to the Secured Parties, then the Debtor agrees to pay any deficiency. The Debtor shall be entitled to any surplus if one results after lawful application of such proceeds. 
  
 (b) When any of the Liabilities to the Secured Parties shall be due, whether
by maturity, acceleration or otherwise, the Secured Parties shall have the right to appropriate, set off and apply against the same all amounts due or to become due to the Debtor, by the Secured Parties in any capacity, whether due or not, and any
other property or monies of the Debtor, which the Secured Parties may have or have the right to have in its possession. 
  
 6. ONE GENERAL OBLIGATION. It is distinctly understood and agreed that all of the rights and remedies of the Secured Parties contained in this
Agreement shall likewise apply insofar as applicable to any modification of or supplement to this Agreement and to any other agreements between the Secured Parties and the Debtor. Any default of this Security Agreement by the Debtor shall
constitute, likewise, a default by the Debtor of any other existing agreement with the Secured Parties, and any default by the Debtor of any other agreement with the Secured Parties shall constitute a default of this Security Agreement. 

 
 7. TERMINATION. At such time as the Liabilities have been
completely satisfied, this Agreement shall terminate and the Secured Parties, at the request of the Debtor, shall deliver this Agreement to the Debtor properly marked “satisfied” and deliver such other documents to the Debtor as they may
reasonably request in connection with the termination of this Agreement and the security interest created herein. 
  
 8. ASSIGNMENT. A Secured Party may assign or transfer the whole or any part of the Note and may transfer therewith its interest in the Security
therefor. The transferee shall have the same rights and powers with reference to the Note so transferred and the Security transferred therewith as are hereby given to the Secured Party, and upon such transfer, the Secured Party shall be fully
discharged from all claims with respect to any Security so transferred, but shall retain all rights and powers hereby given with respect to any Security not so transferred. 
  
 9. NON-WAIVER. No failure or delay on the part of the Secured Parties in exercising any power or right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any power or right hereunder preclude other or further exercise thereof or the exercise of any other power or right. No waiver shall be enforceable against the Secured
Parties unless in writing signed by the Majority Holders. The rights, remedies and benefits herein expressly specified are cumulative and not exclusive of any rights, remedies or benefits which the Secured Parties may otherwise have. 
  

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 10. WAIVER BY THE DEBTOR. 
  
 (a) The Debtor hereby waives presentment, notice of dishonor and protest of all instruments included in or evidencing the
Liabilities or the Security and any and all other notices and demands whatsoever, whether or not relating to such instruments. 
  
 (b) The Debtor hereby waives the right to a trial by jury in any action or proceeding between him and the Secured Parties, including right to assert in
any action or proceeding with regard to this Agreement any defenses, off-sets or counterclaims which the Debtor may have is expressly reserved. 
  
 11. INVALID PROVISIONS. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement. 
  
 12.
MODIFICATION AND PARTIES TO BE BOUND. No provision hereof shall be modified or limited except by a written instrument signed by the Majority Holders and Debtor, expressly referring hereto and to the provision so modified or limited. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, heirs and representatives and the permitted transferees and holders of any of the Obligations. Unless the context otherwise
requires, all terms used herein which are defined in the Uniform Commercial Code shall have the meanings therein stated. 
  
 13. NOTICES. All notices, elections, requests, demands or other communications hereunder shall be in writing, signed by or on behalf of the party
giving the same, and shall be deemed to have been properly given and shall be effective upon being (i) personally delivered, (ii) deposited with a recognized overnight courier service such as Federal Express, DHL, UPS Overnight or the
like, or (iii) deposited in the United States mail, postage prepaid, certified with return receipt requested, to the other party at the address of such other party set forth below or at such other address within the continental United States as
such other party may designate by notice specifically designated as a notice of change of address and given in accordance herewith; provided, however, that the time period in which a response to any such notice, election, demand or request must be
given shall commence on the date of receipt thereof; and provided further that no notice of change of address shall be effective until the date of receipt thereof. Personal delivery to a party or to any officer, partner, agent or employee of such
party at said address shall constitute receipt. Rejection or other refusal to accept or inability to deliver because of change in address of which no notice has been received shall also constitute receipt. Any such notice, election, demand, request
or response, if given to the Debtor, shall be addressed as follows: 
  

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	to Debtor:	 	Optical Sensors Incorporated
	 	 	7615 Golden Triangle Drive, Suite C
	 	 	Eden Prairie, Minnesota 55344
	 	 	Attn: Paulita LaPlante
	
	if given to Holder, shall be addressed as follows:
		
	 	 	  

	 	 	  

	 	 	  

	
	If given to the Majority Holders:
		
	 	 	Hayden R. Fleming
	 	 	17797 North Perimeter Drive
	 	 	Suite 105
	 	 	Scottsdale, Arizona 85255

  
 14. ACTION BY
MAJORITY. All rights and remedies of the Secured Parties hereunder may be exercised only by the Majority Holders and action taken by such holders shall be binding on all holders of interests in the Notes. 
  
 15. APPLICATION OF PROCEEDS. All amounts paid or assets transferred to
Secured Parties hereunder shall be allocated among the persons constituting the Secured Parties in proportion to the amounts owed to each under their respective Notes at that time. 
  
 16. MISCELLANEOUS. This Agreement shall be interpreted, and the rights and liabilities of the parties hereto
determined, in accordance with the laws of the State of Minnesota. The captions are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Agreement nor the intent of any provision
hereof. Time is of the essence of this Agreement and of each and every paragraph and subparagraph hereof. 
  
 [Remainder of Page Intentionally Left Blank] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
                         , 2006. 
  

					
	 OPTICAL SENSORS INCORPORATED
	    	HOLDER:
			
	 	 	 	    	
 Print Name of Holder

			
	By:	 	  

	    	 
	 	 	Paulita LaPlante, President & CEO	    	 
			
	 	 	 	    	
 Signature of Holder

  

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 EXHIBIT A 
  

SECURED PARTIES 
  

					
	 Name of Holder

	 	 Amount of Note

	 	 Date of Note

  

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 EXHIBIT B 
  

Description of Collateral 
  
 Debtor hereby grants to Secured Parties a present and continuing security interest in and security title to the following assets of Debtor and all
proceeds therefrom (which property and proceeds are hereinafter collectively referred to as the “Collateral”) to secure payment and performance of the Liabilities of the Debtor to the Secured Parties: 
  
 (a) all of the Debtor’s Accounts, commercial tort
claims, chattel paper, deposit accounts, documents, Equipment, General Intangibles, goods, instruments, real property, Fixtures, Investment Property and Inventory; 
  
 (b) together with (i) all substitutions and replacements for and products of any of the foregoing;
(ii) in the case of all goods, all accessions; (iii) all accessories, attachments, parts, equipment and repairs now or hereafter attached or affixed to or used in connection with any goods; (iv) all warehouse receipts, bills of lading
and other documents of title now or hereafter covering such goods; and (v) any money or other assets of the Debtor that now or hereafter come into the possession, custody, or control of any of the Secured Parties. 
  
 The Collateral does not include any rights to Regulatory Filings or
Intellectual Property owned, held or hereafter acquired by Debtor or any proceeds therefrom. All of such rights are specifically excluded from the terms of this Security Agreement and from the term “Collateral”. 
  
 As used in the Security Agreement and the Exhibits thereto, the following terms shall have
the meanings indicated: 
  
 “Accounts”
means all of the Debtor’s accounts, as such term is defined in the UCC, including each and every right of the Debtor to the payment of money, whether such right to payment now exists or hereafter arises, whether such right to payment arises out
of a sale, lease or other disposition of goods or other property, out of a rendering of services, out of a loan, out of the overpayment of taxes or other liabilities, or otherwise arises under any contract or agreement, whether such right to payment
is created, generated or earned by the Debtor or by some other person who subsequently transfers such person’s interest to the Debtor, whether such right to payment is or is not already earned by performance, and howsoever such right to payment
may be evidenced, together with all other rights and interests (including all liens) which the Debtor may at any time have by law or agreement against any account debtor or other obligor obligated to make any such payment or against any property of
such account debtor or other obligor; all including, but not limited to, all present and future accounts, contract rights, loans and obligations receivable, credit card receivables, chattel papers, bonds, notes and other debt instruments, tax
refunds and rights to payment in the nature of general intangibles. 
  
 “Equipment” means all of the Debtor’s equipment, as such term is defined in the UCC, whether now owned or hereafter acquired, including, but not limited to, all present and future machinery, vehicles,
furniture, fixtures, manufacturing equipment, shop equipment, office and recordkeeping equipment, parts, tools, and supplies. 
  

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 “Fixtures” means all goods that become so related to particular property that
an interest in them arises under real property law. 
  
 “General Intangibles” means all of the Debtor’s general intangibles, as such term is defined in the UCC, whether now owned or hereafter acquired, including all present and future payment intangibles, customer or supplier
lists and contracts, contract rights which are assignable to the Secured Parties, manuals, operating instructions, permits, franchises. 
  
 “Intellectual Property” means all of the Debtor’s past, present and future (i) trade secrets and other proprietary
information; (ii) trademarks, service marks, business names, Internet domain names, designs, logos, trade dress, slogans, indicia and other source and/or business identifiers, and the goodwill of the business relating thereto and all
registrations or applications for registrations which have heretofore been or may hereafter be issued thereon throughout the world; (iii) copyrights (including copyrights for the Debtor’s computer programs and software) and copyright
registrations or applications for registrations which have heretofore been or may hereafter be issued throughout the world and all tangible property embodying the copyrights; (iv) unpatented inventions (whether or not patentable), patent
applications (including the entire right, title and interest in and to said invention, said application and the issued letter patent that may or shall issue), patents, industrial designs, industrial design applications and registered industrial
designs; (v) license agreements related to any of the foregoing and income therefrom; (vi) books, records, writings, computer tapes or disks, flow diagrams, specification sheets, source codes, object codes and other physical
manifestations, embodiments or incorporations of any of the foregoing; (vii) the right to sue for all past, present and future infringements of any of the foregoing; and (viii) all common law and other rights throughout the world in and to
all of the foregoing. 
  
 “Inventory”
means all of the Debtor’s inventory, as such term is defined in the UCC, whether now owned or hereafter acquired, whether consisting of whole goods, spare parts or components, supplies or materials, whether acquired, held or furnished for sale,
for lease or under service contracts or for manufacture or processing, and wherever located. 
  
 “Investment Property” means a security, whether certificated or uncertificated, a security entitlement, a securities account and
all financial assets therein, a commodity contract, or a commodity account. 
  
 “Regulatory Filings” means all of Debtor’s past, present and future regulatory approvals, clearances, authorizations, certifications, consents, variances, entitlements, permissions, licenses and permits
to or from, or filings, notices or recordings to or with, federal, state, foreign, provincial and local governmental authorities. 
  

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]