Document:

Exhibit 10.1

SECURITIES PURCHASE AND EXCHANGE
AGREEMENT

This Securities
Purchase and Exchange Agreement (this “Agreement”) is dated as of March 16, 2012 among Phototron Holdings, Inc.,
a Delaware corporation (the “Company”), Europa International, Inc. (“Europa”), W-Net Fund
I, L.P. (“W-Net” and together with Europa, collectively, the “Investors”), each purchaser
that executes a counterpart signature page hereto from time to time (together with the Investors, each, including its successors
and assigns, a “Purchaser” and collectively, the “Purchasers”), and W-Net, which will serve
as the representative of the Purchasers, and is referred to herein from time to time as the “Purchaser Representative”.

RECITALS

WHEREAS, the Company
previously issued (a) that certain Senior Secured Promissory Note, dated October 8, 2011, to Europa in the original principal amount
of $100,000 and (b) that certain Senior Secured Promissory Note, dated October 12, 2011, to W-Net in the original principal amount
of $349,790.68 (collectively, the “October Existing Notes”, and together with any other promissory note issued
by the Company, or evidencing debt assumed by the Company, collectively, the “Existing Notes”); and

WHEREAS, subject
to the terms and conditions set forth in this Agreement and pursuant to the exemptions from registration provided by the Securities
Act of 1933, as amended (the “Securities Act”), and Rule 506 promulgated thereunder, (a) the Company desires
to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, 6% Senior
Secured Convertible Notes, in the form of Exhibit A attached hereto (the “Notes”), in the principal amount
equal to such Purchaser’s Subscription Amount (as defined herein), and (b) the Company and the applicable Purchasers desire
to cancel the Existing Notes and exchange the Existing Notes for the Notes, as more fully described in this Agreement.

AGREEMENT

NOW, THEREFORE,
in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

ARTICLE I. 

DEFINITIONS

1.1             
Definitions. In addition to the terms defined elsewhere in this Agreement: (a) capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Notes, and (b) the following terms have
the meanings set forth in this Section 1.1:

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. With respect to a Purchaser,
any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser
will be deemed to be an Affiliate of such Purchaser.

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of California are authorized or required by law or other governmental action
to close.

“Commission”
means the Securities and Exchange Commission.

“Common Stock”
means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities
may hereafter be reclassified or changed into.

“Company
Counsel” means Stubbs Alderton & Markiles, LLP, with offices located at 15260 Ventura Boulevard, 20th
Floor, Sherman Oaks, California 91403, Attention: Greg Akselrud, fax: (818) 444-6303.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Existing Security
Agreements” means, collectively, (a) that certain Security Agreement, dated as of October 8, 2011, by and among the Company,
Europa and the other parties signatory thereto, (b) that certain Security Agreement, dated as of October 12, 2011, by and among
the Company, W-Net and the other parties signatory thereto, (c) that certain Intellectual Property Security Agreement, dated as
of October 8, 2011, by and among the Company, Europa and the other parties signatory thereto, and (d) that certain Intellectual
Property Security Agreement, dated as of October 12, 2011, by and among the Company, W-Net and the other parties signatory thereto.

 

“IP Security
Agreement” means the Intellectual Property Security Agreement, dated the date hereof, by the Company in favor of the
Purchasers, in the form of Exhibit C attached hereto, securing the obligations of the Company under the Notes and other
Transaction Documents.

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

“Securities”
means the Notes and the Underlying Shares.

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Security
Agreement” means the Security Agreement, dated the date hereof, by the Company in favor of the Purchasers, in the form
of Exhibit B attached hereto, securing the obligations of the Company under the Notes and other Transaction Documents.

“Security
Documents” means any and all means any and all security agreements, pledge agreements, hypothecation agreements, collateral
assignments, mortgages, deeds of trust, control agreements and similar such agreements, executed and delivered by the Company,
any of its subsidiaries and/or any third party in favor of the Purchasers pursuant to the Transaction Documents which secures the
Company’s obligations under the Notes and the Transaction Documents, and other documents executed, delivered and/or filed
by the Company, any of its subsidiaries, any third party and/or the Purchasers as permitted or required under any of the foregoing,
including, without limitation, the Security Agreement and the IP Security Agreement.

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Notes purchased
hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds. Except for the Notes delivered in exchange for the
Existing Notes, the initial principal amount of each Purchaser’s Note shall be equal to such Purchaser’s Subscription
Amount.

“Transaction
Documents” means this Agreement, the Notes, the Security Documents, and all exhibits and schedules thereto and hereto
and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion or redemption of the Notes and issued and
issuable in lieu of the cash payment of interest on the Notes in accordance with the terms of the Notes.

ARTICLE II. 

PURCHASE AND SALE

2.1             
Closing. 

(a)               
The purchase and sale of the Notes shall take place in one or more closings. The first closing
(the “Initial Closing”) shall take place on the date of this Agreement, at 10:00 a.m., Pacific Time (the date
of the Initial Closing and each Additional Closing, a “Closing Date”), at the offices of Company Counsel or
at such other location or time or on such other date mutually agreed upon by the Company and all of the Purchasers participating
therein, subject to the conditions precedent for a Closing as set forth in Section 2.3 hereof, and to each party’s
obligations hereunder having been satisfied or waived. The Initial Closing and each Additional Closing shall constitute a “Closing”
for purposes of this Agreement. At the Initial Closing, upon the terms and subject to the conditions set forth herein, the Company
agrees to sell, and the Purchasers participating therein, severally and not jointly, agree to purchase, in the aggregate, up to
$2,000,000 in principal amount of the Notes.

(b)              
After the Initial Closing, the Company shall sell, and the Purchasers participating therein
shall purchase, up to a principal amount of the Notes equal to $2,000,000 less the principal amount of the Notes issued at the
Initial Closing (the “Additional Notes”) as described in this Section 2.1(b) on the same terms and conditions
as those contained in this Agreement. As used herein, the term “Notes” shall include
the Additional Notes. The date of each purchase and sale of the Additional Notes is
referred to in this Agreement as an “Additional Closing.” All Additional Closings shall take place subject to
the conditions precedent for a Closing as set forth in Section 2.3 hereof, and to each party’s obligations hereunder
having been satisfied or waived. 

(c)   
Purchaser Representative.

(i)                
By virtue of the execution of this Agreement by each Purchaser, each of the Purchasers shall
be deemed to have agreed to appoint W-Net as its agent and attorney-in-fact, as the Purchaser Representative for and on behalf
of the Purchasers to give and receive notices and communications, to agree to, negotiate, enter into settlements and compromises
of, and comply with orders of courts with respect to any indemnification claims, to assert, negotiate, enter into settlements and
compromises of, and comply with orders of courts with respect to, any other claim by the Company against any Purchaser or by any
such Purchaser against the Company, in each case relating to this Agreement or the transactions contemplated hereby, and to take
all other actions that are either (A) necessary or appropriate in the judgment of the Purchaser Representative for the accomplishment
of the foregoing or (B) specifically mandated by the terms of this Agreement. Such agency may be changed by the Purchasers
from time to time upon not less than thirty (30) days’ prior written notice to the Company; provided, however, that
the Purchaser Representative may not be removed unless Purchasers holding at least two-thirds (2/3) of the outstanding principal
amount of the Notes agree to such removal and to the identity of the substituted agent. A vacancy in the position of Purchaser
Representative, whether due to the resignation, removal or dissolution of the Purchaser Representative or for any other reason,
may be filled by the recipients of a majority in interest of the outstanding principal amount of the Notes. No bond shall be required
of the Purchaser Representative, and the Purchaser Representative shall not receive any compensation for its services. Notices
or communications to or from the Purchaser Representative shall constitute notice to or from the Purchasers.

(ii)              
The Purchaser Representative shall not be liable for any act done or omitted hereunder as
Purchaser Representative while acting (A) in good faith or (B) with the consent of the holders of a majority in interest of the
outstanding principal amount of the Notes. The Purchasers shall indemnify the Purchaser Representative and hold the Purchaser Representative
harmless against any loss, liability or expense incurred without willful misconduct or bad faith on the part of the Purchaser Representative
and arising out of, or in connection with, the acceptance or administration of the Purchaser Representative’s duties hereunder,
including the reasonable fees and expenses of any legal counsel, accountant or other professional advisor retained by the Purchaser
Representative. The Purchaser Representative will be entitled to the advancement and reimbursement by the Purchasers of costs and
expenses incurred by, or on behalf of, the Purchaser Representative in the performance of its duties hereunder, including the reasonable
fees and expenses of any legal counsel. A decision, act, consent or instruction of the Purchaser Representative, including, but
not limited to, an amendment, extension or waiver of this Agreement, shall constitute a decision of the Purchasers and shall be
final, binding and conclusive upon the Purchasers; and the Company may rely upon any such decision, act, consent or instruction
of the Purchaser Representative as being the decision, act, consent or instruction of the Purchasers. 

2.2             
Deliveries.

(a)               
On a Closing Date, the Company shall deliver or cause to be delivered to each Purchaser participating
therein the following:

(i)                
this Agreement duly executed by the Company;

(ii)              
a Note registered in the name of such Purchaser with a principal amount equal to (A) such
Purchaser’s Subscription Amount, and/or (B) the amount owed to such Purchaser under such Purchaser’s Existing Note
as of such Closing Date, as applicable; and

(iii)            
the Security Documents, including, without limitation, the Security Agreement and the IP Security
Agreement, duly executed by the Company. 

(b)              
On a Closing Date, each Purchaser participating therein shall deliver or cause to be delivered
to the Company the following: 

(i)                
this Agreement duly executed by such Purchaser;

(ii)              
such Purchaser’s (A) Subscription Amount by wire transfer of immediately available funds
to the account as specified in writing by the Company and/or (B) Existing Note for cancellation, as applicable; and 

(iii)            
the Security Documents to which each Purchaser is a party and required by law to be signed
by such party in order to be binding.

2.3             
Closing Conditions. 

(a)               
The obligations of the Company hereunder in connection with a Closing are subject to the following
conditions being met:

(i)                
the accuracy in all material respects on the Closing Date of the representations and warranties
of the Purchasers participating therein contained herein;

(ii)              
all obligations, covenants and agreements of each Purchaser participating therein required
to be performed at or prior to the Closing Date shall have been performed; and

(iii)            
the delivery by each Purchaser participating therein of the items set forth in Section
2.2(b) hereof.

(b)                 
The respective obligations of the Purchasers hereunder in connection with a Closing are subject
to the following conditions being met:

(i)                
the accuracy in all material respects when made and on the Closing Date of the representations
and warranties of the Company contained herein;

(ii)              
all obligations, covenants and agreements of the Company required to be performed at or prior
to the Closing Date shall have been performed; and

(iii)            
the delivery by the Company of the items set forth in Section 2.2(a) hereof.

ARTICLE III. 

REPRESENTATIONS AND WARRANTIES

3.1             
Representations and Warranties of the Company. The Company hereby represents and warrants
as of the Closing Date to each of the Purchasers as follows:

(a)               
Organization and Qualification. The Company is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Delaware, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently conducted. The Company is not in violation or default of any of
the provisions of its Certificate of Incorporation, Bylaws or other organizational or charter documents. The Company is duly qualified
to conduct business and is in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have, or reasonably be expected to result in, a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise) of the Company (a “Material Adverse Effect”),
and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or
curtail such power and authority or qualification. 

(b)              
Authorization; Enforcement. The Company has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its
obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation
by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the
Company and no further action is required by the Company, its board of directors or its stockholders in connection therewith other
than in connection with the Required Approvals (as defined herein). Each Transaction Document has been (or upon delivery will have
been) duly executed by the Company, and, when delivered in accordance with the terms hereof and thereof, will constitute the valid
and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

(c)               
No Conflicts. The execution, delivery and performance of the Transaction Documents
by the Company and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not:
(i) conflict with or violate any provision of the Company’s Certificate of Incorporation, Bylaws or other organizational
or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would
become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company, or give to others
any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
loan or credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the
Company is a party or by which any property or asset of the Company is bound or affected (other than Liens in favor of the Purchasers),
or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal
and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the
case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

(d)              
Filings, Consents and Approvals. The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state,
local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company
of the Transaction Documents, other than (i) the filing of Form D with the Commission and such filings as are required to be made
under applicable state securities laws, and (ii) filings required under the terms of the Security Documents (collectively, the
“Required Approvals”).

(e)               
Issuance of the Securities. The Securities are duly authorized and, when issued and
paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable,
free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.
The Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction
Documents. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the
Underlying Shares. 

(f)               
Title to Assets. The Company has good, clear and marketable title to all the tangible
properties and tangible assets reflected in its latest balance sheet as being owned by it or acquired after the date thereof which
are, individually or in the aggregate, material to the Company’s business (except properties sold or otherwise disposed of
since the date thereof in the ordinary course of business), free and clear of all Liens. All equipment and other items of tangible
personal property and assets of the Company (i) are in good operating condition and in a state of good maintenance and repair,
ordinary wear and tear excepted, and (ii) are usable in the regular and ordinary course of the Company’s business. The Company
does not own any real property. The Company has a valid leasehold interest in such leased real property, and such leases are in
full force and effect. The improvements and fixtures on such real property leased by the Company are in good operating condition
and in a state of good maintenance and repair, ordinary wear and tear excepted.

(g)              
No General Solicitation. Neither the Company nor any person acting on behalf of the
Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered
the Securities for sale only to the Purchasers and certain other “accredited investors” within the meaning of Rule
501 under the Securities Act.

 

(h)              
Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges
and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the
Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as
a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the
transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in
connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’
purchase of, or exchange for, the Securities. The Company further represents to each Purchaser that the Company’s decision
to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.

3.2             
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for
no other Purchaser, hereby represents and warrants as of the applicable Closing Date to the Company as follows:

(a)               
Organization; Authority. If such Purchaser is an individual, such Purchaser has the
full power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise
to carry out his or her obligations hereunder and thereunder. If such Purchaser is an entity, such Purchaser is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership
power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to
carry out its obligations hereunder and thereunder, and the execution and delivery of the Transaction Documents and performance
by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate
or similar action on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such
Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding
obligation of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles
and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief
or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

(b)              
Own Account. Such Purchaser understands that the Securities are “restricted securities”
and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as
principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation
of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in
violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any
applicable state securities law. Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

(c)               
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and
at the date hereof it is, and on each date on which it or its permitted assignee converts any Notes it or such permitted assignee,
as the case may be, will be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8)
under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

(d)              
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits
and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser
is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss
of such investment.

(e)               
General Solicitation. Such Purchaser is not purchasing the Securities as a result of
any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar
media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

ARTICLE IV. 

OTHER AGREEMENTS OF THE PARTIES

4.1             
Transfer Restrictions.

(a)               
The Securities may only be disposed of in compliance with state and federal securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement, to the Company or to
an Affiliate of a Purchaser, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected
by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities
Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall
have the rights of a Purchaser under this Agreement.

(b)              
The Purchasers agree to the imprinting, so long as is required by this Section 4.1,
of a legend on any of the Securities in the following form:

NEITHER THIS SECURITY
NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

4.2             
Reservation of Common Stock. The Company shall maintain a reserve from its duly authorized
shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations
in full under the Transaction Documents.

4.3             
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to
the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company
shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify
the Securities for, sale to the Purchasers at a Closing under applicable securities or “Blue Sky” laws of the states
of the United States, and shall provide evidence of such actions upon request of any Purchaser.

4.4             
Security. The Company’s obligations under the Notes and other Transaction Documents
shall be secured by all the assets of the Company and its subsidiaries. As of any Closing, the Purchasers participating therein
shall be granted a security interest in all the assets of the Company and its subsidiaries to be memorialized in the Security Documents.
The Company shall execute, and cause its subsidiaries to execute, such other agreements, documents and financing statements reasonably
requested by the Purchasers, which will be filed at the Company’s expense with the applicable jurisdictions and authorities.
The Company shall also execute, and cause its subsidiaries to execute, all such documents reasonably necessary in the opinion of
the Purchasers to memorialize and further protect the security interests described herein. The Purchasers may appoint a collateral
agent to represent them collectively in connection with the security interests being granted to the Purchasers.

4.5             
Termination of Existing Security Agreements. The Company and each Investor hereby agree
that upon the exchange of such Investor’s October Existing Note for the applicable Note, (a) each Existing Security Agreement
that such Investor is a party to shall terminate, (b) all security interests and liens granted to such Investor pursuant to such
Existing Security Agreement in all property of the Company and its subsidiaries shall terminate, (c) such Investor authorizes the
Company to prepare and file any and all documents and instruments, including UCC termination statements, reasonably necessary or
required to discharge any and all security registrations previously filed by such Investor with respect to such Existing Security
Agreement, and (d) such Investor shall execute and deliver to the Company any lien releases, mortgage releases, discharges of security
interests, and other similar discharge or release documents (in recordable form if applicable) as are necessary to effectuate the
termination and release of the security interests and liens granted to such Investor pursuant to such Existing Security Agreement.
Each Investor further agrees to do such further acts and things and to execute and deliver to the Company such additional releases,
powers, instruments, documents or agreements, as the Company may reasonably require or deem advisable to carry into effect the
release of such liens and security interests.

ARTICLE V. 

MISCELLANEOUS

5.1             
Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes
and duties levied in connection with the delivery of any Securities to the Purchasers. 

5.2             
Entire Agreement. The Transaction Documents, together with the exhibits and schedules
thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements
and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules.

5.3             
Notices. Any and all notices or other communications or deliveries required or permitted
to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission
or delivery, if such notice or communication is delivered via facsimile at the facsimile number, or delivered by a U.S. nationally
recognized overnight courier service to the address, set forth on the signature pages attached hereto prior to 5:30p.m. (Los Angeles
time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number, or delivered by such courier service to the address, set forth on the signature pages attached
hereto on a day that is not a Business Day or later than 5:30 p.m. (Los Angeles time) on any Business Day, or (c) upon actual receipt
by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth
on the signature pages attached hereto.

5.4             
Amendments; Waivers. Except as specified in Section 2.1(b) hereof with respect
to the addition of additional Purchasers in an Additional Closing, no provision of this Agreement may be waived, modified, supplemented
or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers of at least a
majority in interest of the Securities then held by the Purchasers or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right. 

5.5             
Headings. The headings herein are for convenience only, do not constitute a part of
this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

5.6             
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of each Purchaser (other than by merger). Subject to the restrictions set forth in
Section 4.1 hereof, any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser
assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred
Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

5.7             
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.

5.8             
Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws
of the State of California, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction
Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or
agents) shall be commenced exclusively in the state and federal courts sitting in the County of Los Angeles. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of Los Angeles for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the
prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and
other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

5.9             
Survival. The representations and warranties shall survive the Closings and the delivery
of the Securities for the applicable statue of limitations.

5.10         
Execution. This Agreement may be executed in two or more counterparts, all of which
when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” or other document
image format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile or “.pdf” or other document image format
data file signature page were an original thereof.

5.11         
Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or
invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is
hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

5.12         
Replacement of Securities. If any certificate or instrument evidencing any Securities
is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but
only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new
certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of such replacement Securities.

5.13         
Remedies. In addition to being entitled to exercise all rights provided herein or granted
by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the
Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason
of any breach of obligations contained in the Transaction Documents and hereby agrees to waive and not to assert in any action
for specific performance of any such obligation the defense that a remedy at law would be adequate. 

5.14         
Usury. It is expressly agreed and provided that the total liability of the Company
under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under
applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of interest
or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated
to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed
by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent
to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction
Documents from the effective date forward, unless such application is precluded by applicable law. If under any circumstances whatsoever,
interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction
Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded
to the Company, the manner of handling such excess to be at such Purchaser’s election.

5.15         
Saturdays, Sundays, Holidays, etc.If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken
or such right may be exercised on the next succeeding Business Day.

5.16         
Construction. The parties agree that each of them and/or their respective counsel has
reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction
Documents or any amendments hereto.

5.17         
Waiver of Jury Trial. In any action, suit or proceeding in any jurisdiction brought
by any party against any other party, the parties each knowingly and intentionally, to the greatest extent permitted by applicable
law, hereby absolutely, unconditionally, irrevocably and expressly waives forever trial by jury.

 

     

     

    

IN WITNESS
WHEREOF, the parties hereto have caused this Securities Purchase and Exchange Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above.

COMPANY:

	
        PHOTOTRON Holdings, Inc.
        

         
	
        Address for Notice:

         

        717 E. Gardena Blvd.

        Gardena, CA 90248

	
        By: __/s/ Craig Ellins___________________________

        Name: Craig Ellins

        Title: Chief Executive Officer

         
	Fax: (818) 992-0202
	
        With a copy to (which shall not constitute notice):

         

        Stubbs Alderton & Markiles, LLP

        15260 Ventura Boulevard, 20th Floor

        Sherman Oaks, California 91403

        Attention: Greg Akselrud, Esq.

        Fax: (818) 444-6303

         

        PURCHASER REPRESENTATIVE:

         
	 
	
        W-net Fund I, L.P.
        

         
	
        Address for Notice:

         

        12400 Ventura Blvd. Suite 327

        Studio City, California 91604

	
        By: __/s/ David Weiner________________________

        Name: David Weiner

        Title: Manager of the General Partner

 

         
	Fax:  (818) 474-7589

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOR PURCHASERS FOLLOWS]

     

     

    

[PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AND EXCHANGE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase and Exchange Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

If an Entity:

(Print Entity
Name)

 

By (Sign): 

Name (Print): 

Title (Print):

 

If an Individual:

(Sign)

Name (Print): 

 

Email Address of Purchaser: ________________________________________________

Facsimile Number of Purchaser: _____________________________________________

Address for Notice of Purchaser:

 

________________________________________________

 

________________________________________________

 

Address for Delivery of Securities for Purchaser (if not same as
address for notice):

 

________________________________________________

 

________________________________________________

 

 

Subscription Amount: $____________________________

 

 

Amount Owed by the Company Under an Existing Note: $____________________________

 

     

     

    

[PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AND EXCHANGE AGREEMENT]

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase and Exchange Agreement to be duly executed by their respective authorized
signatories as of ____________________________ ___, 20___ with respect to an Additional Closing pursuant to Section 2.1(b)
hereof.

If an Entity:

(Print Entity
Name)

 

By (Sign): 

Name (Print): 

Title (Print):

 

If an Individual:

(Sign)

Name (Print): 

Email Address of Purchaser: ________________________________________________

Facsimile Number of Purchaser: _____________________________________________

Address for Notice of Purchaser:

 

________________________________________________

 

________________________________________________

 

Address for Delivery of Securities for Purchaser (if not same as
address for notice):

 

________________________________________________

 

________________________________________________

 

 

Subscription Amount: $____________________________

 

 

Amount Owed by the Company Under an Existing Note: $____________________________

     

     

    

EXHIBIT A

 

NOTES

 

(See attached)

     

     

    

EXHIBIT B

 

SECURITY AGREEMENT

 

(See attached)

 

     

     

    

EXHIBIT C

 

IP SECURITY AGREEMENT

 

(See attached)Exhibit
10.2

SECURITY
AGREEMENT

This SECURITY
Agreement (this “Agreement”) is made as of the 16th
day of March, 2012 (the “Effective Date”), by and among Phototron Holdings, Inc., a Delaware corporation (the
“Borrower”), Growlife, Inc., a Delaware corporation (“Growlife”), Phototron, Inc., a California
corporation (“Phototron” and together with the Borrower and Growlife, collectively, the “Debtors”),
and the holders, each signatory hereto, of the Borrower’s 6% Senior Secured Convertible Notes
issued or to be issued in the original aggregate principal amount of up to $2,000,000 (the “Notes”) pursuant
to the Purchase Agreement (as defined herein) (collectively, together with their endorsees, transferees and assigns, the “Secured
Parties”, and each individually, a “Secured Party”), and W-net Fund I, L.P., who will serve
as the representative of the Secured Parties and is referred to herein from time to time as the as the “Secured Party
Representative”.

RECITALS

WHEREAS, pursuant to that
certain Securities Purchase and Exchange Agreement, dated on or about March 16, 2012, by and among the Borrower and the Secured
Parties (the “Purchase Agreement”), the Secured Parties have severally agreed to extend the loans to the Borrower
evidenced by the Notes;

 

WHEREAS, in order to induce
the Secured Parties to extend the loans evidenced by the Notes, each Debtor has agreed to execute and deliver to the Secured Parties
this Agreement and to grant the Secured Parties a security interest in certain property of such Debtor to secure the prompt payment,
performance and discharge in full of all of the Borrower’s obligations under the Notes and other Transaction Documents; and

WHEREAS, the rights
of each Secured Party hereunder shall be pari passu with each other Secured Party and enforced through the Secured
Party Representative.

AGREEMENT

NOW, THEREFORE,
in consideration of loans made by the Secured Parties under the Notes, the parties’ agreements herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.                 
Collateral Security. As collateral security for the payment and performance of the Borrower’s obligations under
the Notes and the prompt and punctual performance of all undertakings and covenants of the Borrower under, or pursuant to, the
Notes and the other Transaction Documents (as defined in the Purchase Agreement), whether now existing or hereafter incurred (hereinafter
collectively referred to as the “Obligations”), each Debtor hereby grants to the Secured Parties a lien upon
and security interest in all assets and property of every kind, nature and description, wherever located and in whatever form,
whether real or personal, including, without limitation, all accounts and accounts receivable, inventory, machinery, equipment,
fixtures, cash or cash equivalents, general intangibles, Intellectual Property (as defined herein), chattel paper (whether tangible
or electronic), instruments, letter of credit rights, securities and investment property, financial assets, deposit accounts, documents,
goods (including, without limitation, all accessions to any goods), causes of action and other property rights to cash settlements,
and all books and records pertaining to all such property, in which such Debtor at any time has any right, title and interest (collectively,
the “Collateral”). As used herein, the term “Intellectual Property” means the
collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including, without limitation, (a) all copyrights arising under the laws of the United
States, any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished,
all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations,
recordings and applications in the United States Copyright Office, (b) all letters patent of the United States, any other country
or any political subdivision thereof, all reissues and extensions thereof, and all applications for letters patent of the United
States or any other country and all divisions, continuations and continuations-in-part thereof, (c) all trademarks, trade names,
corporate names, company names, business names, fictitious business names, trade dress, service marks, logos, domain names and
other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision
thereof, or otherwise, and all common law rights related thereto, (d) all trade secrets arising under the laws of the United States,
any other country or any political subdivision thereof, (e) all rights to obtain any reissues, renewals or extensions of the foregoing,
(f) all licenses for any of the foregoing, and (g) all causes of action for infringement of the foregoing.

 

2.                 
Appointment of Secured Party Representative.

 

(a)               
By virtue of the execution of this Agreement by each Secured Party, each Secured Party shall be deemed to have agreed to
appoint W-net Fund I, L.P. as its agent and attorney-in-fact, as the Secured Party Representative for and on behalf of the Secured
Parties to give and receive notices and communications, to agree to, negotiate, enter into settlements and compromises of, and
comply with orders of courts with respect to any claim by the Borrower against any Secured Party or by any such Secured Party against
the Borrower, in each case relating to the Security Documents (as defined in the Purchase Agreement) or the transactions contemplated
thereby, and to take all other actions that are either (i) necessary or appropriate in the judgment of the Secured Party Representative
for the accomplishment of the foregoing or (ii) specifically mandated by the terms of the Security Documents. Such agency
may be changed by the Secured Parties from time to time upon not less than thirty (30) days’ prior written notice to the
Borrower; provided, however, that the Secured Party Representative may not be removed unless a Majority in Interest
(as defined herein) agree to such removal and to the identity of the substituted agent. A vacancy in the position of Secured Party
Representative, whether due to the resignation, removal or dissolution of the Secured Party Representative or for any other reason,
may be filled by a Majority in Interest. No bond shall be required of the Secured Party Representative, and the Secured Party Representative
shall not receive any compensation for its services. As used herein, the term “Majority in Interest” means,
at any time of determination, at least a majority in interest (based on then-outstanding principal amounts of Notes at the time
of such determination) of the Secured Parties.

 

(b)              
The Secured Party Representative shall not be liable for any act done or omitted hereunder as Secured Party Representative
while acting (i) in good faith or (ii) with the consent of the Majority in Interest. The Secured Parties shall indemnify the Secured
Party Representative and hold the Secured Party Representative harmless against any loss, liability or expense incurred without
willful misconduct or bad faith on the part of the Secured Party Representative and arising out of, or in connection with, the
acceptance or administration of the Secured Party Representative’s duties hereunder, including the reasonable fees and expenses
of any legal counsel, accountant or other professional advisor retained by the Secured Party Representative. The Secured Party
Representative will be entitled to the advancement and reimbursement by the Secured Parties of costs and expenses incurred by or
on behalf of the Secured Party Representative in the performance of its duties hereunder, including the reasonable fees and expenses
of any legal counsel. A decision, act, consent or instruction of the Secured Party Representative shall constitute a decision of
the Secured Parties and shall be final, binding and conclusive upon the Secured Parties, and the Borrower may rely upon any such
decision, act, consent or instruction of the Secured Party Representative as being the decision, act, consent or instruction of
the Secured Parties.

 

3.                 
General Representations, Warranties and Covenants. Each Debtor agrees, and represents, warrants and covenants to
the Secured Parties, that:

 

(a)               
Such Debtor has the requisite corporate power and authority to enter into this Agreement and
otherwise to carry out its obligations hereunder. 

 

(b)              
Such Debtor’s exact legal name, jurisdiction of incorporation and chief executive office is set forth in the preamble
above or Section 32 hereof, as applicable. Such Debtor shall give the Secured Parties prior written notice of any change
in such Debtor’s name, identity or corporate structure, or of any reincorporation, reorganization or other action that may
result in a change of the jurisdiction or organization of such Debtor.

 

(c)               
The execution, delivery and performance by such Debtor of this Agreement and the other Security Documents are within such
Debtor’s powers, have been duly authorized by all necessary action, and do not contravene (i) such Debtor’s charter
or bylaws or (ii) any law binding on or affecting such Debtor.

 

(d)              
No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory
body is required for the due execution, delivery and performance by such Debtor of any Security Document.

 

(e)               
Each Security Document constitutes the legal, valid and binding obligation of such Debtor, enforceable against such Debtor
in accordance with its terms.

 

(f)               
Each Debtor shall cause each subsidiary of such
Debtor to immediately become a party hereto (an “Additional Debtor”), by executing and delivering an Additional
Debtor Joinder in substantially the form of Annex A attached hereto and comply with the provisions hereof applicable to
the Debtors. Upon delivery of the foregoing to the Secured Party Representative, the Additional Debtor shall be and become a party
to this Agreement with the same rights and obligations as the Debtors, for all purposes hereof as fully and to the same extent
as if it were an original signatory hereto and shall be deemed to have made the representations, warranties and covenants set forth
herein as of the date of execution and delivery of such Additional Debtor Joinder, and all references herein to the “Debtors”
shall be deemed to include each Additional Debtor.

 

4.                 
Financing Statements. Each Debtor authorizes the Secured Party Representative to file any financing statement necessary
to perfect the liens and security interests granted under this Agreement, and any continuation statement or amendment with respect
thereto, in any appropriate filing office without the signature of such Debtor where permitted by applicable law. At any time upon
the request of the Secured Party Representative, each Debtor shall execute or deliver to the Secured Party Representative any and
all financing statements, original financing statements in lieu of continuation statements, security agreements, pledges, assignments
by way of security, endorsements of certificates of title, and all other similar documents, in form and substance reasonably satisfactory
to the Secured Party Representative (collectively, the “Additional Documents”), and take any other actions,
that the Secured Party Representative may request in its reasonable discretion to create, perfect and continue perfected or to
better perfect the Secured Parties’ lien on the Collateral, and in order to fully consummate all of the transactions contemplated
hereby. To the maximum extent permitted by applicable law, each Debtor authorizes the Secured Party Representative to execute any
such Additional Documents and take any such other actions in such Debtor’s name and authorizes the Secured Party Representative
to file such executed Additional Documents in any appropriate filing office. Each Debtor hereby irrevocably makes, constitutes,
and appoints the Secured Party Representative (and any of the Secured Party Representative’s officers or designated agents)
as such Debtor’s true and lawful attorney, with power to (a) if such Debtor refuses to, or fails timely to execute and deliver
any of the Additional Documents, sign the name of such Debtor on any of the Additional Documents, and (b) endorse such Debtor’s
name on any of its payment items (including all of its respective cash collections) that may come into the Secured Party Representative’s
possession. The appointment of the Secured Party Representative as such Debtor’s attorney, and each and every one of its
respective rights and powers, being coupled with an interest, is irrevocable until all of the obligations under this Agreement
have been fully and finally repaid and performed.

 

5.                 
Power of Attorney. Each of the officers and designated agents of the Secured Party Representative is hereby irrevocably
made, constituted and appointed the true and lawful attorney for each Debtor (without requiring any of them to act as such) with
full power of substitution to do the following (such power to be deemed coupled with an interest): (a) after an Event of Default
(as defined herein), endorse the name of such Debtor upon any and all checks, drafts, money orders and other instruments for the
payment of monies that are payable to such Debtor and constitute collections on the Collateral, (b) at any time, execute in the
name of such Debtor and/or file any financing statements, schedules, assignments, instruments, documents and statements that such
Debtor is obligated to give the Secured Party Representative hereunder or is necessary to perfect the Secured Parties’ security
interest in or lien upon the Collateral, (c) at any time, to verify the validity, amount or any other matter relating to the Collateral
by mail, telephone, telecopy or otherwise, provided that, if an Event of Default has not occurred, the Secured Party Representative
shall give prior notice thereof describing the manner in which such verification shall be conducted, and (d) after an Event of
Default, do such other and further acts and deeds in the name of such Debtor that the Secured Party Representative may reasonably
deem necessary or desirable to enforce or protect the Secured Parties’ interest in any Collateral.

 

6.                 
Control Collateral. Each Debtor agrees that it will take any and all reasonable steps that the Secured Party Representative
requests in order for Secured Party Representative to obtain control of any Collateral in accordance with Sections 9-104,
9-105, 9-106, and 9-107 of the Uniform Commercial Code with respect to any of such Debtor’s securities accounts and deposit
accounts, electronic chattel paper, investment property, and letter-of-credit rights. No arrangement contemplated hereby or by
any control agreement in respect of any deposit accounts or securities accounts or other investment property shall be modified
by such Debtor without the prior written consent of the Secured Party Representative. Upon the occurrence and during the continuance
of an Event of Default, the Secured Party Representative may notify any bank or securities intermediary to liquidate the applicable
deposit account or securities account or any related investment property maintained or held thereby up to the amount of the Obligations
and remit the proceeds thereof to the Secured Parties to be applied as payment of Obligations payable under this Agreement.

 

7.                 
Sale, Lease, or Disposition of Collateral. Each Debtor will not, other than in the ordinary course of business, sell,
contract to sell, lease, encumber (including, without limitation, granting a security interest in all or any portion of the Collateral
to any third party other than the Secured Parties), or dispose of the Collateral or any interest in it without the written consent
of the Secured Party Representative until this Agreement and all of the Obligations have been fully satisfied and indefeasibly
paid in full.

 

8.                 
Dissolution or Liquidation. Each Debtor shall not commence a dissolution or liquidation without the Secured
Party Representative’s prior consent.

 

9.                 
Reimbursement of Expenses. At the option of the Secured Parties, the Secured Party Representative may discharge taxes,
liens, interests, or perform or cause to be performed for and on behalf of each Debtor any actions and conditions, obligations,
or covenants that such Debtor has failed or refused to perform. In addition, the Secured Party Representative may pay for the preservation
of the Collateral. All sums expended by the Secured Party Representative under this Section 9, including, but not limited
to, attorneys’ fees, court costs, agent’s fees, or commissions, or any other cost or expenses, shall be deemed and
be included in the Obligations and will bear interest from the date of payment at same rate as the Notes and will be payable at
the time and place designated in the Notes, and will be secured by this Agreement.

 

10.             
Payment; Guaranty.

 

(a)               
The Borrower will pay the Notes secured by this Agreement and any renewal or extensions thereof in accordance with the terms
and provisions of the Notes. The Borrower also will repay immediately all sums expended by the Secured Parties in accordance with
the terms and provisions of this Agreement.

 

(b)              
Growlife and Phototron hereby jointly and severally, unconditionally guaranty (a) the due and punctual payment of the principal
of, premium on, if any, and interest, if any, on, the Notes, whether at maturity, by acceleration, redemption or otherwise, the
due and punctual payment of interest on overdue principal of, premium on, if any, and interest, if any, on, the Notes, if any,
if lawful, and the due and punctual performance of all other obligations of the Borrower to the Secured Parties all in accordance
with the terms of the Notes and (b) in case of any extension of time of payment or renewal of the Notes or any of such other obligations,
that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether
at stated maturity, by acceleration or otherwise.

 

11.             
Change of Place of Business. Each Debtor will promptly notify the Secured Parties of any change of such Debtor’s
chief place of business, the location of the Collateral or the place where records concerning the Collateral are kept.

 

12.             
Leases. Each Debtor shall deliver to the Secured Party Representative, at such Debtor’s expense, copies of
all leases for each leased premises on which such Debtor operates.

 

13.             
Insurance. Each Debtor shall maintain or cause to be maintained insurance on the Collateral against fire, flood,
casualty and such other hazards in such amounts, with such deductibles and with such insurers as are customarily used by companies
operating in the same industry as such Debtor. If and when the Secured Party Representative requests such in writing, each Debtor
shall furnish the Secured Party Representative with evidence of insurance as the Secured Party Representative may reasonably require.
In the event a Debtor fails to procure or cause to be procured any such insurance or to timely pay or cause to be paid the premium(s)
on any such insurance, the Secured Party Representative may do so for such Debtor, but such Debtor shall continue to be liable
for the same. The policies of all such casualty insurance shall contain standard Loss Payable Clauses issued in favor of the Secured
Parties under which all losses thereunder shall be paid to the Secured Parties as the Secured Parties’ interest may appear.
Such policies shall expressly provide that the requisite insurance cannot be altered or canceled without thirty (30) days’
prior written notice to the Secured Party Representative and shall insure the Secured Parties notwithstanding the act or neglect
of a Debtor. Each Debtor hereby appoints the Secured Party Representative as such Debtor’s attorney-in-fact, exercisable
at the Secured Party Representative’s option to endorse any check which may be payable to such Debtor in order to collect
the proceeds of such insurance and any amount or amounts collected by the Secured Party Representative pursuant to the provisions
of this paragraph may be applied by the Secured Party Representative to the Obligations. Each Debtor also agrees to notify the
Secured Party Representative, promptly, upon such Debtor’s receipt of a notice of termination, cancellation, or non-renewal
from its insurance company of any such policy. Each Debtor shall maintain, and shall deliver to the Secured Party Representative
upon request evidence of public liability, products liability and business interruption insurance in such amounts as are customary
for companies in the same or similar businesses located in the same or similar area.

 

14.             
Financial Records. Each Debtor shall keep current and accurate books of records and accounts in which full and correct
entries will be made of all of its business transactions, and will reflect in its financial statements adequate accruals and appropriations
to reserves, all in accordance with GAAP. Each Debtor shall deliver to the Secured Party Representative (all to be in form and
substance satisfactory to the Secured Party Representative) such data, reports, statements and information, financial or otherwise,
as the Secured Party Representative may reasonably request.

 

15.             
Existence and Rights. Each Debtor shall do, or cause to be done, all things necessary to preserve and keep in full
force and affect its existence, good standing and rights.

 

16.                
Inspection. Each Debtor will permit any of the Secured Party Representative’s officers or other designated
agents to visit and inspect any of such Debtor’s facilities, or any other facility where any Collateral is kept, during regular
business hours, to examine and audit all of such Debtor’s books of account, records, reports and other papers, to make copies
and extracts therefrom and to discuss its affairs, finances and accounts with its officers, employees and independent certified
public accountants and attorneys. Each Debtor shall pay to the Secured Party Representative all reasonable fees based on standard
rates for such inspections.

 

17.             
Time of Performance and Waiver. In performing any act under any Security Document, time is of the essence. The Secured
Parties’ acceptance of partial or delinquent payments, or the failure of the Secured Parties to exercise any right or remedy,
will not constitute a waiver of any obligation of any Debtor or right of the Secured Parties and will not constitute a waiver of
any other similar default that occurs later.

 

18.             
Material Adverse Developments. Each Debtor agrees that immediately upon becoming aware of any development or other
information which would reasonably be expected to materially and adversely affect its business, financial condition or property,
or its ability to perform under this Agreement, it shall give to the Secured Parties telephonic or facsimile notice specifying
the nature of such development or information and such anticipated effect.

 

19.             
Default. Each Debtor will be in default under this Agreement on the occurrence of any of the following events or
conditions (each, an “Event of Default”):

 

(a)               
Default in the payment or performance of the Notes or any other note with respect to any of the Obligations secured by this
Agreement, including, without limitation, the Borrower’s failure to pay any of the Obligations, including, but not limited
to, charges, fees, expenses or other monetary obligations owing to the Secured Parties arising out of or incurred in connection
with any of the Security Documents on the date when such payment is due and payable, whether upon maturity, acceleration, demand
or otherwise;

 

(b)              
If any warranty, representation or other statement by or on behalf of a Debtor contained in, or pursuant to, this Agreement,
or in any document, agreement or instrument furnished in compliance with, relating to, or in reference to this Agreement, is false,
erroneous, or misleading in any material respect when made;

 

(c)               
Any material portion of a Debtor’s assets is attached, seized, subjected to a writ or distress warrant, or is levied
upon, or (unless permitted by the terms of this Agreement) comes into the possession of any third person and the same is not lifted
or discharged before the earlier of thirty (30) days after the date it first arises or five (5) days prior to the date on which
such property or asset is subject to forfeiture by such Debtor;

 

(d)              
If a notice of lien, levy or attachment is filed or issued by the United States or any department or instrumentality thereof
or by any state, county, municipality or other governmental agency against all or any portion of the Collateral or a material portion
of a Debtor’s property, which levy, lien or attachment (i) would be entitled to priority over the Secured Parties’
lien on the Collateral and (ii) is not lifted or discharged within the earlier of thirty (30) days of issuance or five (5)
days prior to the exercise of remedies with respect to any such levy, assessment or attachment;

 

(e)               
If the obligations of a Debtor under this Agreement or under any other Security Document is limited or terminated by operation
of law or by such Debtor;

 

(f)               
If this Agreement or any other Security Document that purports to create a lien in favor of the Secured Party, shall, for
any reason, fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first
priority lien on the Collateral covered hereby or thereby;

 

(g)              
If any provision of any Security Document shall at any time for any reason be declared to be null and void, or the validity
or enforceability thereof shall be contested by a Debtor or any other person, or a proceeding shall be commenced by such Debtor
or any other person, or by any governmental authority having jurisdiction over such Debtor, seeking to establish the invalidity
or unenforceability thereof, or such Debtor shall deny that it has any liability or obligation purported to be created under any
Security Document;

 

(h)              
If any Debtor ceases its business operations; or

 

(i)                
Dissolution, termination of existence, insolvency, appointment of a receiver for any part of the Collateral, assignment
for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency law by or against any Debtor.

 

20.             
Cure. Nothing contained in this Agreement or any of the other Security Documents shall be deemed to compel the Secured
Parties to accept a cure of any Event of Default hereunder, if such cure occurs after the Secured Parties’ acceleration of
the Obligations.

 

21.             
Remedies. On the occurrence of any Event of Default, and at any later time, the Secured Parties may declare all Obligations
due and payable immediately and may proceed to enforce payment and exercise any and all of the rights and remedies provided by
the California Uniform Commercial Code as well as other rights and remedies either at law or in equity possessed by the Secured
Parties. The Secured Parties may require each Debtor to assemble the Collateral and make it available to the Secured Party Representative
at any place to be designated by the Secured Party Representative that is reasonably convenient to the Secured Party Representative
and such Debtor. Unless the Collateral is perishable, threatens to decline speedily in value, or is of a type customarily sold
on a recognized market, the Secured Party Representative will give each Debtor reasonable notice of the time and place of any public
sale or of the time after which any private sale or any other intended deposition of the Collateral is to be made. The requirements
of reasonable notice will be met if the notice is mailed, postage prepaid, to the address of the Debtor set forth below at least
ten (10) days before the time of the sale or disposition. Expenses of retaking, holding, preparing for sale, selling, or the like
will include the Secured Party Representative’s reasonable attorneys’ fees and legal expenses, and all will be included
as part of the Obligations and will be secured by this Agreement. All rights and remedies granted to the Secured Parties hereunder
and under the Security Documents, or otherwise available at law or in equity, shall be deemed concurrent and cumulative, and not
alternative remedies, and the Secured Parties may proceed with any number of remedies at the same time until all Obligations are
indefeasibly satisfied in full. The exercise of any one right or remedy shall not be deemed a waiver or release of any other right
or remedy, and Secured Parties, upon or at any time after the occurrence of an Event of Default, may proceed against any Debtor,
at any time, under any agreement, with any available remedy and in any order.

 

22.             
Intellectual Property. In addition to, and without limiting in any way the granting of the liens hereunder, upon
the Event of Default, each Debtor hereby assigns, transfers, and conveys to the Secured Parties a nonexclusive license and right
to use all trademarks, trade names, copyrights, patents or technical processes owned or used by such Debtor that relate to the
Collateral, together with any goodwill associated therewith, all to the extent necessary to enable the Secured Parties to realize
on the Collateral and to enjoy the benefits of the Collateral. This right shall inure to the benefit of all successors, transferees
and assigns of the Secured Parties and their successors, transferees and assigns, whether by voluntary conveyance, operation of
law, transfer, assignment, foreclosure, deed in lieu of foreclosure or otherwise. Such license and right shall be granted free
of charge without the requirement that any payment of any kind or nature whatsoever be made to the Debtor.

 

23.             
Termination of Security Interest. The security interest granted herein shall terminate, and all rights to the Collateral
shall revert to the applicable Debtor, upon the payment in full, or other satisfaction to which the Secured Parties agree, of all
Obligations. Upon such termination each Secured Party hereby authorizes each Debtor to file any UCC termination statements necessary
to effect such termination and each Secured Party shall, at such Debtor’s expense, execute and deliver to such Debtor any
additional documents or instruments as such Debtor shall reasonably request to evidence such termination.

 

24.             
Inter Secured Party Rights; Transaction/Applications of Proceeds.

 

(a)               
All Obligations owed to the Secured Parties shall rank in the order of priority pari passu
and pro-rata in proportion to each Secured Party’s outstanding principal amount of Notes at any given time
that a determination needs to be made of pro-rata holdings. If an Event of Default occurs and any party hereto collects
proceeds pursuant to its rights under any Obligations, the Secured Party Representative shall be immediately notified and such
payment shall be shared with all of the other Secured Parties as set forth in this Section 24(a). Notwithstanding anything
to the contrary contained in the Purchase Agreement or any document executed in connection with the Obligations and irrespective
of: (i) the time, order or method of attachment or perfection of the security interests created in favor of Secured Parties; (ii)
the time or order of filing or recording of financing statements or other documents filed or recorded to perfect security interests
in any Collateral; (iii) anything contained in any filing or agreement to which any Secured Party now or hereafter may be a party;
and (iv) the rules for determining perfection or priority under the Uniform Commercial Code or any other law governing the relative
priorities of secured creditors, each of the Secured Parties acknowledges that (x) all other Secured Parties have a valid security
interest in the Collateral and (y) the security interests of the Secured Parties in any Collateral pursuant to any outstanding
Obligations shall be pari passu with each other and enforced pursuant to the terms of this Agreement through the
Secured Party Representative. Each Secured Party, severally and not jointly with the other Secured Parties, shall indemnify, defend,
and hold harmless the other Secured Parties against and in respect of any and all claims, demands, losses, costs, expenses, obligations,
liabilities, damages, recoveries, and deficiencies, including interest, penalties, and reasonable professional and attorneys’
fees, including those arising from settlement negotiations, that the other Secured Parties shall incur or suffer, which arise,
result from, or relate to a breach of, or failure by such Secured Party to perform under this Agreement.

 

(b)              
The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from
payments made on account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses
of retaking, holding, storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes,
fees and other costs incurred in connection therewith) of the Collateral, then to the reasonable attorneys’ fees and expenses
incurred by the Secured Party Representative in enforcing the Secured Parties’ rights hereunder
and in connection with collecting, storing and disposing of the Collateral, then to satisfaction of the Obligations pro rata among
the Secured Parties (based on then-outstanding principal amounts of Notes at the time of any such determination), and then to the
payment of any other amounts required by applicable law. To the extent permitted by applicable law, each Debtor waives all claims,
damages and demands against the Secured Parties arising out of the repossession, removal, retention or sale of the Collateral,
unless due solely to the gross negligence or willful misconduct of the Secured Parties as determined by a final judgment (not subject
to further appeal) of a court of competent jurisdiction.

 

25.             
Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the
State of California, without regard to the principles of conflicts of law thereof. Each Debtor agrees that all proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this Agreement and the Notes (whether brought
against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the County of Los Angeles. Each Debtor hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the County of Los Angeles for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction
of any such court or that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process
and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby. If any party shall commence a proceeding to enforce any provisions of
this Agreement, then the prevailing party in such proceeding shall be reimbursed by the other party for its reasonable attorney’s
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such proceeding.

 

26.             
Parties Bound. This Agreement will binding on and inure to the benefit of the parties and their respective heirs,
executors, administrators, legal representatives, successors, and assigns as permitted by this Agreement.

 

27.             
Validity and Construction. If any one or more of the provisions contained in this Agreement is for any reason held
to be invalid, illegal, or unenforceable, the invalidity, illegality, or unenforceability of that provision will not affect any
other provision of this Agreement, and this Agreement will be construed as if the invalid, illegal, or unenforceable provision
had never been contained in it.

 

28.             
Sole Agreement. The Security Documents constitute the only agreement of the parties with respect to securing the
payment and performance of the Obligations, and supersede any prior understandings or written or oral agreements between the parties,
respecting the subject matter thereof.

 

29.             
Integrated Agreement. The Security Documents shall be construed as integrated and complementary of each other, and
as augmenting and not restricting the Secured Parties’ rights and remedies. If, after applying the foregoing, an inconsistency
still exists, the provisions of this Agreement shall constitute an amendment thereto and shall control.

 

30.             
Commercial Code Definitions Applicable. All terms used in this Agreement that are defined in the California Uniform
Commercial Code will have the same meaning in this Agreement as in the California Uniform Commercial Code.

 

31.             
Marshaling. The Secured Parties shall not be required to marshal any present or future collateral security (including
but not limited to 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 its rights and remedies hereunder and in
respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and
remedies, however existing or arising. To the extent that it lawfully may, each Debtor 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 Parties’
rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which
any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and,
to the extent that it lawfully may, such Debtor hereby irrevocably waives the benefits of all such laws.

 

32.             
Notices. All notices, requests, demands and other communications hereunder shall be subject
to the notice provisions of the Purchase Agreement. All communications shall be sent:

 

If to a Debtor, to:717 E. Gardena Blvd.

Gardena, CA 90248

Attn: Chief Executive Officer

Facsimile: (818) 992-0202

		If to the Secured Parties, to:	W-net Fund I, L.P.

12400 Ventura Blvd. Suite 327

Studio City, California 91604

Facsimile: (818) 474-7589

 

or at such other address,
e-mail address or facsimile number as the Debtor or the Secured Party Representative may designate by ten (10) days’ advance
written notice.

 

33.             
Expenses. In addition to the rights of the Secured Parties hereunder, each Debtor hereby agrees to pay on demand
all costs and expenses (including, without limitation, fees, expenses, audit fees, search fees, filing fees and other client charges
of counsel to the Secured Party) incurred by the Secured Parties in connection with the enforcement of the Secured Parties’
rights, and the collections of all amounts due, under any Security Document, all of which will be included as part of the Obligations
and will be secured by this Agreement.

 

34.             
Indemnity. Each Debtor releases and shall indemnify, defend and hold harmless the Secured Parties and the Secured
Party Representative, and their officers and designated agents, of and from any claims, demands, liabilities, obligations, judgments,
injuries, losses, damages and costs and expenses (including, without limitation, reasonable legal fees) resulting from (a) acts
or conduct of such Debtor or under, pursuant or related to this Agreement and the other Security Documents, (b) such Debtor’s
breach, or alleged breach, or violation of any representation, warranty, covenant or undertaking contained in this Agreement or
the other Security Documents, and (c) such Debtor’s failure, or alleged failure, to comply with any or all laws, statutes,
ordinances, governmental rules, regulations or standards, whether federal, state or local, or court or administrative orders or
decrees, and all costs, expenses, fines, penalties or other damages resulting therefrom, unless resulting from acts or conduct
of the Secured Parties constituting willful misconduct or gross negligence. NO INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR LIABLE
TO ANY OTHER PARTY TO ANY SECURITY DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON
ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED
AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER ANY SECURITY DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION
CONTEMPLATED HEREUNDER OR THEREUNDER.

 

35.             
Additional Secured Parties. Notwithstanding anything to the contrary contained herein, if the Borrower issues additional
Notes after the date hereof, any purchaser of such Notes shall become a party to this Agreement by executing and delivering a counterpart
signature page hereto, agreeing to be bound by and subject to the terms of this Agreement as a Secured Party.

 

36.             
Headings. The headings of any paragraph or section of this Agreement are for convenience only and shall not be used
to interpret any provision of this Agreement.

 

37.             
Survival. All warranties, representations, and covenants made by each Debtor herein, or in any agreement referred
to herein or on any certificate, document or other instrument delivered by it or on its behalf under this Agreement, shall be considered
to have been relied upon by the Secured Parties, regardless of any investigation made by the Secured Parties or on their behalf.
All statements in any such certificate or other instrument prepared and/or delivered for the benefit of the Secured Parties shall
constitute warranties and representations by each Debtor hereunder. Except as otherwise expressly provided herein, all representations,
warranties and covenants made by each Debtor hereunder or under any other agreement or instrument shall be deemed continuing until
all Obligations are satisfied in full.

 

38.             
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns
of each of the parties. No Debtor may transfer, assign or delegate any of its duties or obligations hereunder.

 

39.             
No Duty on the Part of the Secured Parties. The powers conferred on the Secured Parties hereunder are solely to protect
their interest in the Collateral and shall not impose any duty upon them to exercise any such powers. The Secured Parties shall
be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither the Secured
Parties nor any of their officers or agents shall be responsible to any Debtor for any act or failure to act hereunder, except
for their own gross negligence or willful misconduct.

 

40.             
Duplicate Originals; Counterparts. Two or more duplicate originals of this Agreement may be signed by the parties,
each of which shall be an original but all of which together shall constitute one and the same instrument. This Agreement may be
executed in counterparts (including via facsimile or digital image format), all of which counterparts taken together shall constitute
one completed fully executed document.

 

41.             
Modification; Action of Secured Parties. No modification hereof or any agreement referred to herein shall be binding
or enforceable unless in writing and signed by the Borrower and a Majority in Interest. Whenever any action or consent of the Secured
Parties is required pursuant to this Agreement, except as otherwise expressly permitted hereunder, the action or consent of a Majority
in Interest shall constitute the action or consent of the Secured Parties.

 

42.             
Third Parties. No rights are intended to be created hereunder, or under any related agreements or documents for the
benefit of any third party donee, creditor or incidental beneficiary of any Debtor. Nothing contained in this Agreement shall be
construed as a delegation to the Secured Parties of a Debtor’s duty of performance, including, without limitation, such Debtor’s
duties under any account or contract with any other person or entity.

 

43.             
Revival and Reinstatement of Obligations. If the incurrence or payment of the Obligations by the Borrower or the
transfer to the Secured Parties of any property should for any reason subsequently be declared to be void or voidable under any
state, federal or other law relating to creditors’ rights, including provisions of any bankruptcy law relating to fraudulent
conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (collectively, a “Voidable
Transfer”), and if the Secured Parties are required to repay or restore, in whole or in part, any such Voidable Transfer,
or elect to do so upon the reasonable advice of counsel, then, as to any such Voidable Transfer, or the amount thereof that the
Secured Parties are required or elect to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of the
Secured Parties related thereto, the liability of each Debtor automatically shall be revived, reinstated, and restored and shall
exist as though such Voidable Transfer had never been made.

 

44.             
Parol Evidence. This writing is intended by the parties as a final expression of their agreement and, together with
the other Security Documents, is intended as a complete and exclusive statement of the terms of their agreement, thereby superseding
all oral negotiations and prior writing with respect to the subject matter thereof. No course of prior dealings between the parties
and no usage of the trade shall be relevant to supplement or explain the terms or provisions of this Agreement. Acceptance or acquiescence
in the course of performance rendered under this Agreement shall not be relevant to determine the meaning of this Agreement even
though the accepting or acquiescing party has knowledge of the nature of the performance or opportunity for objection.

 

(Signature
Pages Follow)

 

     

     

    

In
Witness Whereof, the parties have executed this Agreement as of the Effective Date.

 

Debtors:PHOTOTRON
HOLDINGS, INC.

 

 

By: /s/ Craig Ellins

Name: Craig Ellins

Title: Chief Executive Officer

 

 

GROWLIFE, INC.

 

 

By /s/ Craig Ellins

Name: Craig Ellins

Title: Chief Executive Officer

 

 

PHOTOTRON, INC.

 

 

By: /s/ Craig Ellins

Name: Craig Ellins

Title: Chief Executive Officer

 

 

 

 

     

     

    

In Witness
Whereof, the parties have executed this Agreement as of the Effective Date.

 

Secured Party Representative:W-net
Fund I, L.P.

 

 

 

By:/s/ David Weiner

Name: David Weiner

Title: Manager of the General Partner

 

 

Secured Parties:W-net
Fund I, L.P.

 

 

 

By: /s/ David Weiner

Name: David Weiner

Title: Manager of the General Partner

 

 

Europa International
Inc.

 

 

 

By: /s/ Fred Knoll

Name: Fred Knoll

Title: Investment Manager

 

 

 

 

     

     

    

In
Witness Whereof, the parties have executed this Agreement as of ________________________
___, 20___ with respect to an Additional Closing (as defined in the Purchase Agreement) pursuant to Section 2.1(b) of the Purchase
Agreement.

 

Secured Parties:

 

If an Entity:

(Print Entity
Name)

 

By (Sign): 

Name (Print): 

Title (Print): 

 

If an Individual:

(Sign)

Name (Print): 

 

Email Address of Secured Party: _____________________________________________

Facsimile Number of Secured Party: __________________________________________

Address of Secured Party:

 

________________________________________________

 

________________________________________________

 

 

 

 

 

 

     

     

    

ANNEX A

 

FORM OF ADDITIONAL
DEBTOR JOINDER

 

Security Agreement dated as of March 16, 2012
made by

Phototron Holdings, Inc.

and its subsidiaries party thereto from time
to time, as Debtors

to and in favor of

the Secured Parties identified therein (the
“Security Agreement”)

 

Reference is made to the
Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have the meanings given
to such terms in, or by reference in, the Security Agreement.

 

The undersigned hereby
agrees that upon delivery of this Additional Debtor Joinder to the Secured Parties referred to above (or the Secured Party Representative
on their behalf), the undersigned shall (a) be an Additional Debtor under the Security Agreement, (b) have all the rights and obligations
of the Debtors under the Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto,
and (c) be deemed to have made the representations and warranties set forth therein as of the date of execution and delivery of
this Additional Debtor Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED
PARTIES A SECURITY INTEREST IN THE COLLATERAL OWNED BY IT AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND
AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS SET FORTH THEREIN.

 

An executed copy of this
Joinder shall be delivered to the Secured Parties (or the Secured Party Representative on their behalf), and the Secured Parties
may rely on the matters set forth herein on or after the date hereof. This Joinder shall not be modified, amended or terminated
without the prior written consent of the Secured Parties.

 

IN WITNESS WHEREOF, the
undersigned has caused this Joinder to be executed in the name and on behalf of the undersigned.

 

			[Name of Additional Debtor]

 

By: ________________________

			Name:

			Title:

Address:

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