Document:

EXHIBIT 10.3

 

 

 

OWNER TRUST ADMINISTRATION AGREEMENT

 

among

 

HYUNDAI AUTO RECEIVABLES TRUST 2012-B, as
Issuer,

 

HYUNDAI CAPITAL AMERICA, as Administrator,

 

and

 

CITIBANK, N.A., as Indenture Trustee

 

Dated as of July 19, 2012

 

 

 

    	 	 	(2012-B
                                                                                                                                                                                                                                                                                                         Owner
                                                                                                                                                                                                                                                                                                         Trust
                                                                                                                                                                                                                                                                                                         Administration
                                                                                                                                                                                                                                                                                                         Agreement)

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Section 1.1	Duties of the Administrator with Respect to the Depository Agreement and the Indenture	2
	 	 	 
	Section 1.2	Additional Duties	5
	 	 	 
	Section 1.3	Non-Ministerial Matters	6
	 	 	 
	Section 2.	Records	7
	 	 	 
	Section 3.	Representations and Warranties of the Administrator	7
	 	 	 
	Section 4.	Compensation	8
	 	 	 
	Section 5.	Additional Information To Be Furnished to the Issuer	8
	 	 	 
	Section 6.	Independence of the Administrator	8
	 	 	 
	Section 7.	No Joint Venture	8
	 	 	 
	Section 8.	Other Activities of Administrator	8
	 	 	 
	Section 9.	Term of Agreement; Resignation and Removal of Administrator	8
	 	 	 
	Section 10.	Action upon Termination, Resignation or Removal	10
	 	 	 
	Section 11.	Notices	10
	 	 	 
	Section 12.	Amendments	11
	 	 	 
	Section 13.	Successors and Assigns	12
	 	 	 
	Section 14.	GOVERNING LAW	12
	 	 	 
	Section 15.	Headings	12
	 	 	 
	Section 16.	Counterparts	12
	 	 	 
	Section 17.	Severability	12
	 	 	 
	Section 18.	Not Applicable to Citibank, N.A. in Other Capacities	13
	 	 	 
	Section 19.	Limitation of Liability of Owner Trustee and Indenture Trustee	13
	 	 	 
	Section 20.	Third-Party Beneficiary	13
	 	 	 
	Section 21.	Nonpetition Covenants	13
	 	 	 
	Section 22.	Liability of Administrator	14
	 	 	 
	Exhibit A	POWER OF ATTORNEY	A-1

 

    	 	i	(2012-B
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                                                                                                                                                                                                                                                                                                                                                                                     Trust
                                                                                                                                                                                                                                                                                                                                                                                     Administration
                                                                                                                                                                                                                                                                                                                                                                                     Agreement)

    	 

    

 

This OWNER TRUST ADMINISTRATION
AGREEMENT dated as of July 19, 2012 (this “Agreement”) among HYUNDAI AUTO RECEIVABLES TRUST 2012-B, a Delaware
statutory trust (the “Issuer”), HYUNDAI CAPITAL AMERICA, a California corporation, as administrator (the “Administrator”),
and CITIBANK, N.A., a national banking association, not in its individual capacity but solely as Indenture Trustee (the “Indenture
Trustee”).

 

WITNESSETH:

 

WHEREAS, the Issuer was
formed pursuant to a Trust Agreement dated as of April 13, 2012, and is governed by an Amended and Restated Trust Agreement
dated as of July 19, 2012 (as amended and supplemented from time to time, the “Trust Agreement”), by and
among Hyundai ABS Funding Corporation, as depositor (the “Depositor”), Wilmington Trust Company, not in its
individual capacity but solely as owner trustee (the “Owner Trustee”), and Hyundai Capital America, as
administrator (the “Administrator”), and is issuing 0.29286% Asset Backed Notes, Class A-1, 0.54% Asset Backed
Notes, Class A-2, 0.62% Asset Backed Notes, Class A-3 and 0.81% Asset Backed Notes, Class A-4 (collectively, the “Class
A Notes”), 1.39% Asset Backed Notes, Class B (the “Class B Notes”) and 1.95% Asset Backed Notes, Class
C (the “Class C Notes”, collectively with the Class A Notes and the Class B Notes, the “Notes”)
pursuant to the Indenture dated as of July 19, 2012 (as amended and supplemented from time to time, the “Indenture”),
between the Issuer and the Indenture Trustee, and is issuing asset backed certificates (the “Trust Certificates”
and, collectively with the Notes, the “Securities”) pursuant to the Trust Agreement (capitalized terms used
and not otherwise defined herein shall have the meanings assigned to such terms in the Indenture or the Trust Agreement, as applicable);

 

WHEREAS, the Issuer has
entered into certain agreements in connection with the issuance of the Securities (collectively, the “Related Agreements”),
including (i) a Sale and Servicing Agreement dated as of July 19, 2012 (as amended and supplemented from time to time, the “Sale
and Servicing Agreement”), among Hyundai Capital America, as seller (in such capacity, the “Seller”)
and as servicer (in such capacity the “Servicer”), the Depositor, the Issuer and the Indenture Trustee, (ii)
a Letter of Representations dated July 19, 2012 (as amended and supplemented from time to time, the “Depository Agreement”),
between the Issuer and The Depository Trust Company (“DTC”) relating to the Notes and (iii) the Indenture.

 

WHEREAS, pursuant to
the Related Agreements, the Issuer and Owner Trustee are required to perform certain duties in connection with (a) the Notes and
the collateral therefor pledged pursuant to the Indenture (the “Collateral”) and (b) the beneficial ownership
interests in the Issuer (the registered holders of such interests being referred to herein as the “Owners”);

 

WHEREAS, the Issuer and
the Owner Trustee desire to have the Administrator perform certain of the duties of the Issuer and the Owner Trustee referred to
in the preceding clause and to provide such additional services consistent with the terms of this Agreement and the Related Agreements
as the Issuer and the Owner Trustee may from time to time request; and

 

WHEREAS, the Administrator
has the capacity to provide the services required hereby and is willing to perform such services for the Issuer and the Owner Trustee
on the terms set forth herein;

 

    	 	 	(2012-B
                                                                                                                                                                                                                                                                                                         Owner
                                                                                                                                                                                                                                                                                                         Trust
                                                                                                                                                                                                                                                                                                         Administration
                                                                                                                                                                                                                                                                                                         Agreement)

    	 

    

 

NOW, THEREFORE, in consideration
of the mutual covenants contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

 

Section 1.1           Duties
of the Administrator with Respect to the Depository Agreement and the Indenture. The Administrator agrees to perform all its
duties as Administrator and all the duties of the Issuer and the Owner Trustee under the Depository Agreement. In addition, the
Administrator shall consult with the Owner Trustee regarding the duties of the Issuer or the Owner Trustee under the Indenture
and the Depository Agreement. The Administrator shall monitor the performance of the Issuer and shall advise the Owner Trustee
when action is necessary to comply with the Issuer’s or the Owner Trustee’s duties under the Indenture and the Depository
Agreement. The Administrator shall prepare for execution by the Issuer, or shall cause the preparation by other appropriate persons
of, all such documents, reports, filings, instruments, certificates and opinions that it shall be the duty of the Issuer or the
Owner Trustee to prepare, file or deliver pursuant to the Indenture and the Depository Agreement. In furtherance of the foregoing,
the Administrator shall take all appropriate action that is the duty of the Issuer or the Owner Trustee to take pursuant to the
Indenture including, without limitation, such of the foregoing as are required with respect to the following matters under the
Indenture (parenthetical section references are to sections of the Indenture):

 

(a)          the
duty to cause the Note Register to be kept and to give the Indenture Trustee notice of any appointment of a new Note Registrar
and the location, or change in location, of the Note Register (Section 2.04);

 

(b)          the
notification of Noteholders of the final principal payment on their Notes (Section 2.08(b));

 

(c)          the
preparation of or obtaining of the documents and instruments required for authentication of the Notes and delivery of the same
to the Indenture Trustee (Section 2.02);

 

(d)          the
preparation, obtaining or filing of the instruments, opinions and certificates and other documents required for the release of
collateral (Section 4.04);

 

(e)          the
maintenance of an office in the Borough of Manhattan, City of New York, for registration of transfer or exchange of Notes
(Section 3.02);

 

(f)          the
duty to cause newly appointed Paying Agents, if any, to deliver to the Indenture Trustee the instrument specified in the Indenture
regarding funds held in trust (Section 3.03);

 

(g)          the
direction to the Indenture Trustee to deposit moneys with Paying Agents, if any, other than the Indenture Trustee (Section 3.03);

 

(h)          the
obtaining and preservation of the Issuer’s qualification to do business in each jurisdiction in which such qualification
is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes, the Collateral and each other
instrument and agreement included in the Trust Estate (Section 3.04);

 

    	 	2	(2012-B
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                                                                                                                                                                                                                                                                                                                                                                                 Administration
                                                                                                                                                                                                                                                                                                                                                                                 Agreement)

    	 

    

 

(i)          the
preparation of all supplements and amendments to the Indenture and all financing statements, continuation statements, instruments
of further assurance and other instruments and the taking of such other action as is necessary or advisable to protect the Trust
Estate (Section 3.05);

 

(j)          the
delivery of the Opinion of Counsel on the Closing Date and the annual delivery of Opinions of Counsel as to the Trust Estate, and
the annual delivery of the Officer’s Certificate and certain other statements as to compliance with the Indenture (Sections
3.06 and 3.09);

 

(k)          the
identification to the Indenture Trustee in an Officer’s Certificate of a Person with whom the Issuer has contracted to perform
its duties under the Indenture (Section 3.07(b));

 

(l)          the
delivery of written notice to the Indenture Trustee and the Rating Agencies of a Servicer Termination Event under the Sale and
Servicing Agreement and, the taking of all reasonable steps available to remedy such failure (Section 3.07(d));

 

(m)          [Reserved];

 

(n)          the
preparation and obtaining of documents and instruments required for the release of the Issuer from its obligations under the Indenture
(Section 4.01);

 

(o)          the
delivery of written notice to the Indenture Trustee and the Rating Agencies of each Event of Default under the Indenture and each
default by the Servicer or the Seller under the Sale and Servicing Agreement and by the Seller or the Depositor under the Receivables
Purchase Agreement (Section 3.19);

 

(p)          the
monitoring of the Issuer’s obligations as to the satisfaction and discharge of the Indenture and the preparation and execution
of an Officer’s Certificate and the obtaining of the Opinion of Counsel and the Independent Certificate relating thereto
(Section 4.01);

 

(q)          the
compliance with any written directive of the Indenture Trustee with respect to the sale of the Trust Estate in a commercially reasonable
manner if an Event of Default shall have occurred and be continuing (Section 5.04);

 

(r)          the
preparation and delivery of notice to Noteholders of the removal of the Indenture Trustee and the appointment of a successor Indenture
Trustee (Section 6.09);

 

(s)          the
preparation of any written instruments required to confirm more fully the authority of any co-trustee or separate trustee and any
written instruments necessary in connection with the resignation or removal of any co-trustee or separate trustee (Sections 6.08
and 6.10);

 

(t)          the
furnishing to the Indenture Trustee of the names and addresses of Noteholders during any period when the Indenture Trustee is not
the Note Registrar (Section 7.01);

 

    	 	3	(2012-B
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                                                                                                                                                                                                                                                                                                                                                                                 Trust
                                                                                                                                                                                                                                                                                                                                                                                 Administration
                                                                                                                                                                                                                                                                                                                                                                                 Agreement)

    	 

    

 

(u)          the
duty to provide reasonable and appropriate assistance to the Depositor or its designees, as applicable, with the preparation and
filing with the Commission and the Indenture Trustee of documents required to be filed on a periodic basis with, and summaries
thereof as may be required by rules and regulations prescribed by, the Commission and the transmission of such summaries, as necessary,
to the Noteholders (Section 7.03);

 

(v)         the
opening of one or more accounts in the Issuer’s name, the preparation and delivery of Issuer Orders, Officer’s Certificates
and Opinions of Counsel and all other actions necessary with respect to investment and reinvestment of funds in the Trust Accounts
(Sections 8.02 and 8.03);

 

(w)          the
preparation of an Issuer Request and Officer’s Certificate and the obtaining of an Opinion of Counsel and Independent Certificates,
if necessary, for the release of the Trust Estate (Sections 8.04 and 8.05);

 

(x)          the
preparation of Issuer Orders and the obtaining of Opinions of Counsel with respect to the execution of supplemental indentures
and the mailing to the Noteholders of notices with respect to such supplemental indentures (Sections 9.01, 9.02 and 9.03);

 

(y)          the
execution and delivery of new Notes conforming to any supplemental indenture (Section 9.05);

 

(z)          the
duty to notify Noteholders of redemption of the Notes or to cause the Indenture Trustee to provide such notification (Section 10.02);

 

(aa)         the
preparation and delivery of all Officer’s Certificates, Opinions of Counsel and Independent Certificates with respect to
any requests by the Issuer to the Indenture Trustee to take any action under the Indenture (Section 11.01(a));

 

(bb)         the
preparation and delivery of Officer’s Certificates and the obtaining of Independent Certificates, if necessary, for the release
of property from the lien of the Indenture (Section 11.01(b));

 

(cc)         the
notification of the Rating Agencies, upon the failure of the Indenture Trustee to give such notification, of the information required
pursuant to Section 11.04 of the Indenture (Section 11.04);

 

(dd)         the
preparation and delivery to Noteholders and the Indenture Trustee of any agreements with respect to alternate payment and notice
provisions (Section 11.06);

 

(ee)         the
recording of the Indenture, if applicable (Section 11.14);

 

(ff)         the
preparation of Definitive Notes in accordance with the instructions of the Clearing Agency (Section 2.12);

 

(gg)         the
direction to Paying Agents to pay to the Indenture Trustee all sums held in trust by such Paying Agents (Section 3.03); and

 

    	 	4	(2012-B Owner Trust Administration Agreement)

    	 

    

 

(hh)         the
duty to provide the Indenture Trustee with the information necessary to deliver to each Noteholder such information as may be reasonably
required to enable such Holder to prepare its United States federal and state income tax returns (Section 6.07).

 

The Administrator shall
make available to each Rating Agency notice of (i) any resignation of the Indenture Trustee pursuant to Section 6.09 of the Indenture;
(ii) any merger, consolidation or conversion of the Indenture Trustee pursuant to Section 6.10 of the Indenture; (iii) any breach
of the perfection representations contained in Section 11.21 of the Indenture; (iv) any redemption of the Notes pursuant to Section
10.01 of the Indenture; (v) any resignation of the Owner Trustee pursuant to Section 10.02 of the Trust Agreement; (vi) any acceptance
of appointment of a successor Owner Trustee pursuant to Section 10.03 of the Trust Agreement; (vii) any merger, conversion or consolidation
of the Owner Trustee pursuant to Section 10.04 of the Trust Agreement; and (viii) any amendment to the Trust Agreement pursuant
to Section 11.01 of the Trust Agreement; in the case of each of (i) through (viii), promptly upon the Administrator being notified
thereof by the Indenture Trustee, the Owner Trustee or the Servicer, as applicable.

 

Section 1.2           Additional
Duties.

 

(a)          In
addition to the duties of the Administrator set forth above, the Administrator shall (i) perform all duties and obligations applicable
to or required of the Issuer as set forth in Appendix A to the Sale and Servicing Agreement in accordance with the terms and conditions
thereof, and (ii) perform such calculations and shall prepare or shall cause the preparation by other appropriate persons of, and
shall execute on behalf of the Issuer or the Owner Trustee, all such documents, reports, filings, instruments, certificates and
opinions that it shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the Related Agreements
or Section 5.04(a), (b), (c) or (d) of the Trust Agreement, and at the request of the Owner Trustee shall take all appropriate
action that it is the duty of the Issuer or the Owner Trustee to take pursuant to the Related Agreements. In furtherance thereof,
the Owner Trustee shall, on behalf of itself and of the Issuer, execute and deliver to the Administrator and to each successor
Administrator appointed pursuant to the terms hereof, one or more powers of attorney substantially in the form of Exhibit A hereto,
appointing the Administrator the attorney-in-fact of the Owner Trustee and the Issuer for the purpose of executing on behalf of
the Owner Trustee and the Issuer all such documents, reports, filings, instruments, certificates and opinions. Subject to Section
5 of this Agreement, and in accordance with the directions of the Owner Trustee, the Administrator shall administer, perform or
supervise the performance of such other activities in connection with the Collateral (including the Related Agreements) as are
not covered by any of the foregoing provisions and as are expressly requested by the Owner Trustee and are reasonably within the
capability of the Administrator. Such responsibilities shall include providing to the Depositor and the Indenture Trustee the monthly
servicing report in an appropriate electronic form.

 

    	 	5	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                 Owner
                                                                                                                                                                                                                                                                                                                                                                                 Trust
                                                                                                                                                                                                                                                                                                                                                                                 Administration
                                                                                                                                                                                                                                                                                                                                                                                 Agreement)

    	 

    

 

(b)          Notwithstanding
anything in this Agreement or the Related Agreements to the contrary, the Administrator shall be responsible for performance of
the duties of the Owner Trustee set forth in Section 5.04 and Section 5.05(a) of the Trust Agreement with respect to, among other
things, accounting and reports to Certificateholders; provided, however, that the Owner Trustee shall retain responsibility for
the distribution of the Schedule K-1s (as prepared by the Administrator) necessary to enable each Certificateholder to prepare
its federal and state income tax returns.

 

(c)          The
Administrator shall satisfy its obligations with respect to clause (b) above by retaining, at the expense of the Trust payable
by the Administrator, a firm of independent public accountants (the “Accountants”) acceptable to the Owner Trustee,
which shall perform the obligations of the Administrator thereunder.

 

(d)          The
Administrator shall perform the duties of the Administrator including, without limitation, those specified in Sections 8.01, 8.02
and 10.02 of the Trust Agreement required to be performed in connection with the fees, expenses and indemnification and the resignation
or removal of the Owner Trustee, and any other duties expressly required to be performed by the Administrator under the Trust Agreement.

 

(e)          In
carrying out the foregoing duties or any of its other obligations under this Agreement, the Administrator may enter into transactions
or otherwise deal with any of its affiliates; provided, however, that the terms of any such transactions or dealings shall be in
accordance with any directions received from the Issuer and shall be, in the Administrator’s opinion, no less favorable to
the Issuer than would be available from unaffiliated parties.

 

Section 1.3           Non-Ministerial
Matters. With respect to matters that in the reasonable judgment of the Administrator are non-ministerial, the Administrator
shall not take any action unless within a reasonable time before the taking of such action, the Administrator shall have notified
the Owner Trustee of the proposed action and the Owner Trustee shall have withheld consent or provided an alternative direction.
Unless explicitly provided under this Administration Agreement, for the purpose of the preceding sentence, “non-ministerial
matters” shall include, without limitation:

 

(a)          the
amendment of or any supplement to the Indenture;

 

(b)          the
initiation of any claim or lawsuit by the Issuer and the compromise of any action, claim or lawsuit brought by or against the Issuer
(other than in connection with the collection of the Receivables);

 

(c)          the
amendment, change or modification of the Related Agreements;

 

(d)          the
appointment of successor Note Registrars, successor Paying Agents and successor Indenture Trustees pursuant to the Indenture or
the appointment of successor Administrators or Successor Servicers, or the consent to the assignment by the Note Registrar, Paying
Agent or Indenture Trustee of its obligations under the Indenture; and

 

(e)          the
removal of the Indenture Trustee.

 

    	 	6	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                 Owner
                                                                                                                                                                                                                                                                                                                                                                                 Trust
                                                                                                                                                                                                                                                                                                                                                                                 Administration
                                                                                                                                                                                                                                                                                                                                                                                 Agreement)

    	 

    

 

Notwithstanding anything to the contrary
in this Agreement, the Administrator shall not be obligated to, and shall not, (i) make any payments to the Noteholders under the
Related Agreements, (ii) sell the Trust Estate pursuant to Section 5.04 of the Indenture or (iii) take any other action that the
Issuer directs the Administrator not to take on its behalf.

 

Section 2.            Records.
The Administrator shall maintain appropriate books of account and records relating to services performed hereunder, which books
of account and records shall be accessible for inspection by the Issuer at any time during normal business hours.

 

Section 3.            Representations
and Warranties of the Administrator. The Administrator hereby represents and warrants as follows to the Issuer and the Indenture
Trustee as of the Closing Date:

 

(a)          Organization
and Good Standing. The Administrator is duly organized and validly existing as a corporation in good standing under the laws
of the State of its incorporation, with the corporate power and authority to own its properties and to conduct its business as
such properties are currently owned and such business is presently conducted.

 

(b)          Due
Qualification. The Administrator is duly qualified to do business as a foreign corporation in good standing, and has obtained
all necessary licenses and approvals, in all jurisdictions where the failure to do so would materially and adversely affect the
Administrator’s ability to perform its obligations under this Agreement.

 

(c)          No
Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of its terms do not conflict
with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both)
a default under, the articles of incorporation or bylaws of the Administrator, or any indenture, agreement, mortgage, deed of trust
or other instrument to which the Administrator is a party or by which it is bound; or result in the creation or imposition of any
Lien upon any of its properties pursuant to the terms of any such indenture, agreement, or other instrument, other than this Agreement,
or violate any law, or to the best of the Administrator’s knowledge, any order, rule or regulation applicable to the Administrator
of any court or federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction
over the Administrator or any of its properties. There shall be no breach of the representations and warranties in this paragraph
resulting from any of the foregoing breaches, violations, Liens or other matters which, individually or in the aggregate, would
not materially and adversely affect the Administrator’s ability to perform its obligations under this Agreement.

 

(d)          Binding
Obligation. This Agreement, when duly executed and delivered by the other parties hereto and thereto, shall constitute legal,
valid and binding obligation of the Administrator, enforceable against the Administrator in accordance its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization and similar laws now or hereafter in effect relating
to or affecting creditors’ rights generally and to general principles of equity (whether applied in a proceeding at law or
in equity).

 

    	 	7	(2012-B
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                                                                                                                                                                                                                                                                                                                                                                                 Administration
                                                                                                                                                                                                                                                                                                                                                                                 Agreement)

    	 

    

 

(e)          No
Consents. The Administrator is not required to obtain the consent of any other party or any consent, license, approval, registration,
authorization or declaration of or with, any governmental authority, bureau or agency in connection with the execution, delivery,
performance, validity or enforceability of this Agreement that has not already been obtained, other than (i) UCC filings and (ii) consents,
licenses, approvals, registrations, authorizations or declarations which, if not obtained or made, would not have a material adverse
effect on the enforceability or collectibility of the Receivables or would not materially and adversely affect the ability of the
Administrator to perform its obligations under this Agreement.

 

Section 4.             Compensation.
As compensation for the performance of the Administrator’s obligations under this Agreement and as reimbursement for its
expenses related thereto, the Administrator shall be paid by the Servicer in accordance with the Sale and Servicing Agreement.

 

Section 5.             Additional
Information To Be Furnished to the Issuer. The Administrator shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request.

 

Section 6.             Independence
of the Administrator. For all purposes of this Agreement, the Administrator shall be an independent contractor and shall not
be subject to the supervision of the Issuer or the Owner Trustee with respect to the manner in which it accomplishes the performance
of its obligations hereunder. Unless expressly authorized by the Issuer, the Administrator shall have no authority to act for or
represent the Issuer or the Owner Trustee in any way and shall not otherwise be deemed an agent of the Issuer or the Owner Trustee.

 

Section 7.             No
Joint Venture. Nothing contained in this Agreement (i) shall constitute the Administrator and either of the Issuer or the Owner
Trustee as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity,
(ii) shall be construed to impose any liability as such on any of them or (iii) shall be deemed to confer on any of them any express,
implied or apparent authority to incur any obligation or liability on behalf of the others.

 

Section 8.            Other
Activities of Administrator. Nothing herein shall prevent the Administrator or its Affiliates from engaging in other businesses
or, in its sole discretion, from acting in a similar capacity as an administrator for any other person or entity even though such
person or entity may engage in business activities similar to those of the Issuer, the Owner Trustee or the Indenture Trustee.

 

The Administrator and
its affiliates may generally engage in any kind of business with any person party to a Related Agreement, any of its affiliates
and any person who may do business with or own securities of any such person or any of its affiliates, without any duty to account
therefor to the Issuer, the Owner Trustee or the Indenture Trustee.

 

Section 9.             Term
of Agreement; Resignation and Removal of Administrator.

 

(a)          This
Agreement shall continue in force until the dissolution of the Issuer, upon which event this Agreement shall automatically terminate.

 

    	 	8	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                 Owner
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                                                                                                                                                                                                                                                                                                                                                                                 Administration
                                                                                                                                                                                                                                                                                                                                                                                 Agreement)

    	 

    

 

(b)          Subject
to Sections 9(e) and (f), the Administrator may resign its duties hereunder by providing the Issuer with at least 60 days’
prior written notice.

 

(c)          Subject
to Sections 9(e) and (f), the Issuer may remove the Administrator without cause by providing the Administrator with at least 60
days’ prior written notice.

 

(d)          Subject
to Sections 9(e) and (f), at the sole option of the Issuer, the Administrator may be removed immediately upon written notice of
termination from the Issuer to the Administrator if any of the following events shall occur:

 

(i)          the
Administrator shall default in the performance of any of its duties under this Agreement and, after notice of such default, shall
not cure such default within ten Business Days (or, if such default cannot be cured in such time, shall not give within ten days
such assurance of cure as shall be reasonably satisfactory to the Issuer);

 

(ii)         if
any representation or warranty of the Administrator, in its capacity as Administrator, made in this Agreement shall prove to be
incorrect in any material respect as of the time when the same shall have been made and the incorrectness of such representation
or warranty has a material adverse effect on the Issuer or the Noteholders and such failure continues unremedied for 90 days after
discovery thereof by a Responsible Officer of the Administrator or receipt by the Administrator of written notice thereof from
the Indenture Trustee or the Noteholders representing not less than 50% of the Outstanding Amount of the Notes;

 

(iii)        a
court having jurisdiction in the premises shall enter a decree or order for relief, and such decree or order shall not have been
vacated within 60 days, in respect of the Administrator in any involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for the Administrator or any substantial part of its property or order the winding-up or liquidation of its affairs; or

 

(iv)        the
Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, shall consent to the appointment
of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Administrator or any substantial
part of its property, shall consent to the taking of possession by any such official of any substantial part of its property, shall
make any general assignment for the benefit of creditors or shall fail generally to pay its debts as they become due.

 

The Administrator agrees
that if any of the events specified in clauses (iii) or (iv) of this Section shall occur, it shall give written notice thereof
to the Issuer and the Indenture Trustee within seven days after the happening of such event.

 

(e)          No
resignation or removal of the Administrator pursuant to this Section shall be effective until (i) a successor Administrator shall
have been appointed by the Issuer, (ii) such successor Administrator shall have agreed in writing to be bound by the terms
of this Agreement in the same manner as the Administrator is bound hereunder and (iii) the Owner Trustee and the Indenture Trustee
consent to the successor Administrator.

 

    	 	9	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                 Owner
                                                                                                                                                                                                                                                                                                                                                                                 Trust
                                                                                                                                                                                                                                                                                                                                                                                 Administration
                                                                                                                                                                                                                                                                                                                                                                                 Agreement)

    	 

    

 

(f)          The
appointment of any successor Administrator shall be effective only after the satisfaction of the Rating Agency Condition (other
than with respect to Standard & Poor’s, but with satisfaction of the Rating Agency Notification with respect to Standard
& Poor’s if Standard & Poor’s is rating any Outstanding Class of Notes) with respect to such appointment.

 

(g)          A
successor Administrator shall execute, acknowledge and deliver a written acceptance of its appointment hereunder to the resigning
Administrator and to the Issuer. Thereupon the resignation or removal of the resigning Administrator shall become effective, and
the successor Administrator shall have all the rights, powers and duties of the Administrator under this Agreement. The successor
Administrator shall mail a notice of its succession to the Noteholders and the Certificateholders. The resigning Administrator
shall promptly transfer or cause to be transferred all property and any related agreements, documents and statements held by it
as Administrator to the successor Administrator and the resigning Administrator shall execute and deliver such instruments and
do other things as may reasonably be required for fully and certainly vesting in the successor Administrator all rights, power,
duties and obligations hereunder.

 

(h)          In
no event shall a resigning Administrator be liable for the acts or omissions of any successor Administrator hereunder.

 

(i)          In
the exercise or administration of its duties hereunder and under the Related Documents, the Administrator may act directly or through
its agents or attorneys pursuant to agreements entered into with any of them, and the Administrator shall not be liable for the
conduct or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Administrator with
due care.

 

Section 10.          Action
upon Termination, Resignation or Removal. Promptly upon the effective date of termination of this Agreement pursuant to Section
9(a) or the resignation or removal of the Administrator pursuant to Section 9(b) or (c), respectively, the Administrator shall
be entitled to be paid all fees and reimbursable expenses accruing to it to the date of such termination, resignation or removal.
The Administrator shall forthwith upon such termination pursuant to Section 9(a) deliver to the Issuer all property and documents
of or relating to the Collateral then in the custody of the Administrator. In the event of the resignation or removal of the Administrator
pursuant to Section 9(b) or (c), respectively, the Administrator shall cooperate with the Issuer and take all reasonable steps
requested to assist the Issuer in making an orderly transfer of the duties of the Administrator.

 

Section 11.          Notices.
Any notice, report or other communication given hereunder shall be in writing and addressed as follows:

 

(a)          if
to the Issuer or the Owner Trustee, to:

 

Hyundai Auto Receivables Trust 2012-B

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890

 

    	 	10	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                  Owner
                                                                                                                                                                                                                                                                                                                                                                                  Trust
                                                                                                                                                                                                                                                                                                                                                                                  Administration
                                                                                                                                                                                                                                                                                                                                                                                  Agreement)

    	 

    

 

Attention: Corporate Trust Administration

 

(b)          if
to the Administrator, to:

 

Hyundai Capital America

3161 Michelson Drive, Suite 1900

Irvine, CA 92612

Attention: Vice President, Finance

with a copy to the General Counsel

 

(c)          if
to the Indenture Trustee, to:

 

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Global Transaction Services – Hyundai Auto Receivables Trust 2012-B

 

or to such other address as any party shall
have provided to the other parties in writing. Any notice required to be in writing hereunder shall be deemed given if such notice
is mailed by certified mail, postage prepaid, or hand-delivered to the address of such party as provided above.

 

Section 12.          Amendments.
This Agreement may be amended from time to time by a written amendment duly executed and delivered by the Issuer, the Administrator
and the Indenture Trustee, with prior written notice to each Rating Agency, without the consent of the Owner Trustee, the Noteholders
and the Certificateholders, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement to cure any ambiguity, to correct or supplement any provisions in this agreement; provided that (a) such amendment
will not materially and adversely affect the interest of any Noteholder or Certificateholder as confirmed by an Opinion of Counsel
provided to the Indenture Trustee and (b) the Administrator shall have delivered to the Owner Trustee and the Indenture Trustee,
an Opinion of Counsel stating that, in the opinion of such counsel, either (i) all financing statements and continuation statements
have been filed that are necessary to fully preserve and protect the interest of the Owner Trustee and the Indenture Trustee in
the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given,
or (ii) no such action shall be necessary to preserve and protect such interest. This Agreement may also be amended by the Issuer,
the Administrator and the Indenture Trustee with the written consent of the Owner Trustee and the holders of Notes evidencing at
least a majority of the Outstanding Amount of the Controlling Class and the holders of Trust Certificates evidencing at least a
majority of the Certificate Percentage Interests for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement or of modifying in any manner the rights of Noteholders or the Certificateholders; provided,
however, that no such amendment may (a) reduce the interest rate or principal amount of any Note or Certificate or delay the Stated
Maturity Date of any Note without the consent of any Holder of such Note or (b) reduce the aforesaid percentage of the holders
of Notes and Trust Certificates which are required to consent to any such amendment, without the consent of the holders of all
the outstanding Notes and Trust Certificates. Notwithstanding the foregoing, the Administrator may not amend this Agreement without
the permission of the Seller, which permission shall not be unreasonably withheld. Prior to consenting to any such amendment the
Indenture Trustee shall have the right to receive (at other than its own expense) an Opinion of Counsel that such amendment is
authorized or permitted by this Agreement.

 

    	 	11	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                  Owner
                                                                                                                                                                                                                                                                                                                                                                                  Trust
                                                                                                                                                                                                                                                                                                                                                                                  Administration
                                                                                                                                                                                                                                                                                                                                                                                  Agreement)

    	 

    

 

Section 13.          Successors
and Assigns. This Agreement may not be assigned by the Administrator unless such assignment is previously consented to in writing
by the Issuer and the Owner Trustee and subject to the satisfaction of the Rating Agency Condition (other than with respect to
Standard & Poor’s, but with satisfaction of the Rating Agency Notification with respect to Standard & Poor’s
if Standard & Poor’s is rating any Outstanding Class of Notes) in respect thereof. An assignment with such consent and
satisfaction, if accepted by the assignee, shall bind the assignee hereunder in the same manner as the Administrator is bound hereunder.
Notwithstanding the foregoing, this Agreement may be assigned by the Administrator without the consent of the Issuer or the Owner
Trustee to a corporation or other organization that is a successor (by merger, consolidation or purchase of assets) to the Administrator;
provided that such successor organization executes and delivers to the Issuer, the Owner Trustee and the Indenture Trustee an agreement
in which such corporation or other organization agrees to be bound hereunder by the terms of said assignment in the same manner
as the Administrator is bound hereunder and represents that it has the financial ability to satisfy its indemnification obligations
hereunder. Notwithstanding the foregoing, the Administrator can transfer its obligations to any affiliate that succeeds to substantially
all of the assets and liabilities of the Administrator and who has represented and warranted that it is not less creditworthy than
the Administrator. Subject to the foregoing, this Agreement shall bind any successors or assigns of the parties hereto.

 

Section 14.          GOVERNING
LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT
OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

 

Section 15.          Headings.
The section headings hereof have been inserted for convenience of reference only and shall not be construed to affect the meaning,
construction or effect of this Agreement.

 

Section 16.          Counterparts.
This Agreement may be executed in counterparts, each of which when so executed shall be an original, but all of which together
shall constitute but one and the same agreement.

 

Section 17.          Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

    	 	12	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                  Owner
                                                                                                                                                                                                                                                                                                                                                                                  Trust
                                                                                                                                                                                                                                                                                                                                                                                  Administration
                                                                                                                                                                                                                                                                                                                                                                                  Agreement)

    	 

    

 

Section 18.          Not
Applicable to Citibank, N.A. in Other Capacities. Nothing in this Agreement shall affect any obligation Citibank, N.A. may
have in any other capacity.

 

Section 19.          Limitation
of Liability of Owner Trustee and Indenture Trustee.

 

(a)          Notwithstanding
anything contained herein to the contrary, this instrument has been executed by the Owner Trustee solely in its capacity as Owner
Trustee and in no event shall the Owner Trustee in its individual capacity or any beneficial owner of the Issuer have any liability
for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder, as to all of which recourse
shall be had solely to the assets of the Issuer. For all purposes of this Agreement, in the performance of any duties or obligations
of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles
6, 7 and 8 of the Trust Agreement.

 

(b)          Notwithstanding
anything contained herein to the contrary, this Agreement has been countersigned by the Indenture Trustee solely as Indenture Trustee
and in no event shall the Indenture Trustee have any liability for the representations, warranties, covenants, agreements or other
obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer.

 

(c)          No
recourse under any obligation, covenant or agreement of the Issuer contained in this Agreement shall be had against any agent of
the Issuer (including the Administrator and the Owner Trustee) as such by the enforcement of any assessment or by any legal or
equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely
an obligation of the Issuer as a Delaware statutory trust, and that no personal liability whatever shall attach to or be incurred
by any agent of the Issuer (including the Administrator and the Owner Trustee), as such, under or by reason of any of the obligations,
covenants or agreements of the Issuer contained in this Agreement, or implied therefrom, and that any and all personal liability
for breaches by the Issuer of any such obligations, covenants or agreements, either at common law or at equity, or by statute or
constitution, of every such agent is hereby expressly waived as a condition of and in consideration for the execution of this Agreement.

 

Section 20.          Third-Party
Beneficiary. The Seller, the Depositor and the Owner Trustee are third-party beneficiaries to this Agreement and are entitled
to the rights and benefits hereunder and may enforce the provisions hereof as if each were a party hereto.

 

Section 21.          Nonpetition
Covenants. Notwithstanding any prior termination of this Agreement, the Administrator and the Indenture Trustee shall not,
prior to the date which is one year and one day after the termination of this Agreement with respect to the Issuer, acquiesce,
petition or otherwise invoke or cause the Issuer to invoke the process of any court of government authority for the purpose of
commencing or sustaining a case against the Issuer under any Federal or state bankruptcy, insolvency or similar law or appointing
a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part
of its property, or ordering the winding up or liquidation of the affairs of the Issuer.

 

    	 	13	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                  Owner
                                                                                                                                                                                                                                                                                                                                                                                  Trust
                                                                                                                                                                                                                                                                                                                                                                                  Administration
                                                                                                                                                                                                                                                                                                                                                                                  Agreement)

    	 

    

 

Section 22.          Liability
of Administrator. Notwithstanding any provision of this Agreement, the Administrator shall not have any obligations under this
Agreement other than those specifically set forth herein, and no implied obligations of the Administrator shall be read into this
Agreement. Neither the Administrator nor any of its directors, officers, agents or employees shall be liable for any action taken
or omitted to be taken in good faith by it or them under or in connection with this Agreement, except for its or their own negligence
or willful misconduct and in no event shall the Administrator be liable under or in connection with this Agreement for indirect,
special or consequential losses or damages of any kind, including lost profits, even if advised of the possibility thereof and
regardless of the form of action by which such losses or damages may be claimed. Without limiting the foregoing, the Administrator
may (a) consult with legal counsel (including counsel for the Issuer), independent public accountants and other experts selected
by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of
such counsel, accountants or experts and (b) shall incur no liability under or in respect of this Agreement by acting upon any
notice (including notice by telephone), consent, certificate or other instrument or writing (which may be by facsimile) believed
by it to be genuine and signed or sent by the proper party or parties.

 

[SIGNATURE PAGES FOLLOW]

 

    	 	14	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                  Owner
                                                                                                                                                                                                                                                                                                                                                                                  Trust
                                                                                                                                                                                                                                                                                                                                                                                  Administration
                                                                                                                                                                                                                                                                                                                                                                                  Agreement)

    	 

    

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be duly executed and delivered as of the day and year first above written.

 

	 	HYUNDAI AUTO RECEIVABLES TRUST 2012-B
	 	 	 
	 	By:	Wilmington Trust Company,
	 	 	not in its individual capacity
	 	 	but solely as Owner Trustee

 

	 	By:	/s/ Jeanne M. Oller

 

	 	Name:	Jeanne M. Oller
	 	Title:	Assistant Vice President

 

    	 	S-1	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                   Owner
                                                                                                                                                                                                                                                                                                                                                                                   Trust
                                                                                                                                                                                                                                                                                                                                                                                   Administration
                                                                                                                                                                                                                                                                                                                                                                                   Agreement)

    	 

    

 

	 	CITIBANK, N.A.,
	 	not in its individual capacity
	 	but solely as Indenture Trustee

 

	 	By:	/s/ Karen Schluter

 

	 	Name:	Karen Schluter
	 	Title:	Vice President

 

    	 	S-2	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                   Owner
                                                                                                                                                                                                                                                                                                                                                                                   Trust
                                                                                                                                                                                                                                                                                                                                                                                   Administration
                                                                                                                                                                                                                                                                                                                                                                                   Agreement)

    	 

    

 

	 	HYUNDAI CAPITAL AMERICA,
	 	as Administrator
	 	 
	 	By:	/s/ Sukjin Oh

 

	 	Name:	Sukjin Oh
	 	Title:	Treasurer

 

    	 	S-3	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                   Owner
                                                                                                                                                                                                                                                                                                                                                                                   Trust
                                                                                                                                                                                                                                                                                                                                                                                   Administration
                                                                                                                                                                                                                                                                                                                                                                                   Agreement)

    	 

    

 

EXHIBIT A

 

POWER OF ATTORNEY

 

	STATE OF	)	 
	 	)	 
	COUNTY OF	)	 

 

KNOW ALL MEN BY THESE
PRESENTS, that Hyundai Auto Receivables Trust 2012-B (the “Issuer”), does hereby make, constitute and appoint
Hyundai Capital America, as administrator (the “Administrator”) under the Owner Trust Administration Agreement
dated July 19, 2012 (the “Administration Agreement”), among the Issuer, the Administrator and Citibank,
N.A., as Indenture Trustee, as the same may be amended from time to time, and its agents and attorneys, as Attorneys-in-Fact to
execute on behalf of the Issuer all such documents, reports, filings, instruments, certificates and opinions as it should be the
duty of the Owner Trustee or the Issuer to prepare, file or deliver pursuant to the Basic Documents, or pursuant to Section 5.04(a),
(b), (c) or (d) of the Trust Agreement, including, without limitation, to appear for and represent the Issuer in connection with
the preparation, filing and audit of federal, state and local tax returns pertaining to the Issuer, and with full power to perform
any and all acts associated with such returns and audits that the Issuer could perform, including without limitation, the right
to distribute and receive confidential information, defend and assert positions in response to audits, initiate and defend litigation,
and to execute waivers of restrictions on assessments of deficiencies, consents to the extension of any statutory or regulatory
time limit, and settlements.

 

All powers of attorney
for this purpose heretofore filed or executed by the Issuer are hereby revoked.

 

Capitalized terms that
are used and not otherwise defined herein shall have the meanings ascribed thereto in the Administration Agreement.

 

EXECUTED this ___
day of ________, 2012.

 

	 	HYUNDAI AUTO RECEIVABLES TRUST 2012-B
	 	 	 
	 	By:	WILMINGTON TRUST COMPANY,
	 	 	not in its individual capacity
	 	 	but solely as Owner Trustee

 

	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:

 

    	 	Exhibit A-1	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                           Owner
                                                                                                                                                                                                                                                                                                                                                                                           Trust
                                                                                                                                                                                                                                                                                                                                                                                           Administration
                                                                                                                                                                                                                                                                                                                                                                                           Agreement)

    	 

    

 

	STATE OF	)	 
	 	)	 
	COUNTY OF	)	 

 

Before me, the undersigned
authority, on this day personally appeared ________________________________, known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that he/she signed the same for the purposes and considerations therein expressed.

 

Sworn to before me this ___ day of ________, 2012.

 

Notary Public - State of _________________

 

    	 	Exhibit A-2	(2012-B
                                                                                                                                                                                                                                                                                                                                                                                           Owner
                                                                                                                                                                                                                                                                                                                                                                                           Trust
                                                                                                                                                                                                                                                                                                                                                                                           Administration
                                                                                                                                                                                                                                                                                                                                                                                           Agreement)Exhibit 10.2

 

THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTION 13(a)
HEREOF. THE PRINCIPAL REPRESENTED BY THIS NOTE MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF.

 

INNOVATE/PROTECT,
INC.

 

AMENDED
AND RESTATED SENIOR SECURED NOTE

 

	Original Issuance Date: June 22, 2011	Original Principal Amount: U.S. $3,200,000
	 	 
	Amendment and	 
	Restatement Date: July 19, 2012	 

  

FOR VALUE RECEIVED,
INNOVATE/PROTECT, INC., a Delaware corporation (the "Company"), hereby promises to pay to HUDSON BAY MASTER FUND
LTD. or registered assigns (the "Holder") the amount set out above as the Original Principal Amount (as reduced
pursuant to the terms hereof pursuant to redemption or otherwise, the "Principal") when due, whether upon the
Maturity Date (as defined below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and
to pay interest ("Interest") on any outstanding Principal at the applicable Interest Rate from the date set out
above as the Original Issuance Date (the "Issuance Date") until the same becomes due and payable, whether
upon an Interest Date (as defined below), the Maturity Date, acceleration, redemption or otherwise (in each case in accordance
with the terms hereof). This Senior Secured Note (including all Senior Secured Notes issued in exchange, transfer or replacement
hereof, this "Note") was issued pursuant to the Subscription Agreement on June 22, 2011. Certain capitalized terms
used herein are defined in Section 25.

 

    	 

    	 

    

 

(1)         PAYMENTS
OF PRINCIPAL. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing
all outstanding Principal, accrued and unpaid Interest and accrued and unpaid Late Charges on such Principal and Interest. 
The "Maturity Date" shall be June 22, 2013, as may be extended at the option of the Holder (i) in the event
that, and for so long as, an Event of Default (as defined in Section 4(a)) shall have occurred and be continuing on the Maturity
Date (as may be extended pursuant to this Section 1) or any event shall have occurred and be continuing on the Maturity Date (as
may be extended pursuant to this Section 1) that with the passage of time and the failure to cure would result in an Event of Default
and (ii) through the date that is ten (10) Business Days after the consummation of a Change of Control in the event that a
Change of Control is publicly announced or a Change of Control Notice (as defined in Section 5(b)) is delivered prior to the Maturity
Date. Other than as specifically permitted by this Note, the Company may not prepay any portion of the outstanding Principal, accrued
and unpaid Interest or accrued and unpaid Late Charges on Principal and Interest, if any.

 

(2)         INTEREST;
INTEREST RATE. (a) Interest on this Note shall commence accruing on the Issuance Date and shall be computed on the basis
of a 360-day year and twelve 30-day months and shall be payable in arrears on the first calendar day of each Calendar Quarter
after the Issuance Date (each, an "Interest Date") with the first Interest
Date being July 1, 2011. Interest shall be payable in cash on each Interest Date, to the record holder of this Note on the applicable
Interest Date ("Interest"). It is understood and agreed that Interest has been paid through July 1, 2012.

 

(b)          From
and after the occurrence and during the continuance of an Event of Default, the Interest Rate shall be increased to eighteen percent
(18%). In the event that such Event of Default is subsequently cured, the adjustment referred to in the preceding sentence shall
cease to be effective as of the date of such cure; provided that the Interest as calculated and unpaid at such increased rate during
the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such
Event of Default through and including the date of cure of such Event of Default.

 

(3)         REGISTRATION;
BOOK-ENTRY. The Company shall maintain a register (the "Register") for the recordation of the names and addresses
of the holders of each Note and the principal amount of the Notes held by such holders (the "Registered Notes").
The entries in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders
of the Notes shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes, including,
without limitation, the right to receive payments of Principal and Interest, if any, hereunder, notwithstanding notice to the contrary.
A Registered Note may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register.
Upon its receipt of a request to assign or sell all or part of any Registered Note by a Holder, the Company shall record the information
contained therein in the Register and issue one or more new Registered Notes in the same aggregate principal amount as the principal
amount of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 13. Notwithstanding anything
to the contrary in this Section 3, the Holder may assign any Note or any portion thereof to an Affiliate of such Holder or a related
fund of such Holder without delivering a request to assign or sell such Note to the Company and the recordation of such assignment
or sale in the Register (a "Related Party Assignment"); provided, that (x) the Company may continue to
deal solely with such assigning or selling Holder unless and until such Holder has delivered a request to assign or sell such Note
or portion thereof to the Company for recordation in the Register; (y) the failure of such assigning or selling Holder to deliver
a request to assign or sell such Note or portion thereof to the Company shall not affect the legality, validity, or binding effect
of such assignment or sale and (z) such assigning or selling Holder shall, acting solely for this purpose as a non-fiduciary agent
of the Company, maintain a register (the "Related Party Register") comparable to the Register on behalf of the
Company, and any such assignment or sale shall be effective upon recordation of such assignment or sale in the Related Party Register.

 

    	- 2 -

    	 

    

 

(4)         RIGHTS
UPON EVENT OF DEFAULT.

 

(a)          Event
of Default. Each of the following events shall constitute an "Event of Default" upon receipt by the Company
of a notice thereof by the Holder:

 

(i)          the
Company's failure to pay to the Holder any amount of Principal (including, without limitation, any redemption payments), Interest,
Late Charges or other amounts when and as due under this Note or any other Note Transaction Document (as defined below);

 

(ii)         any
default under, redemption of or acceleration prior to maturity of any Indebtedness of any Note Party or any of its Subsidiaries;

 

(iii)        any
Note Party or any of its Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar Federal, foreign
or state law for the relief of debtors (collectively, "Bankruptcy Law"), (A) commences a voluntary case, (B) consents
to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a receiver, trustee,
assignee, liquidator or similar official (a "Custodian"), (D) makes a general assignment for the benefit of its
creditors or (E) admits in writing that it is generally unable to pay its debts as they become due;

 

(iv)        a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against any Note Party
or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian of any Note Party or any of its Subsidiaries or (C)
orders the liquidation of any Note Party or any of its Subsidiaries;

 

(v)         a
final judgment or judgments for the payment of money aggregating in excess of $250,000 are rendered against any Note Party or any
of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or stayed pending
appeal, or are not discharged within sixty (60) days after the expiration of such stay; provided, however, that any judgment which
is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $250,000 amount set
forth above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which written
statement shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an indemnity
and such Person will receive the proceeds of such insurance or indemnity within thirty (30) days of the issuance of such judgment;

 

(vi)        any
Note Party breaches any material representation, warranty, covenant or other term or condition of any Note Transaction Document;

 

(vii)       any
material breach or material failure in any respect to comply with Section 10 of this Note;

 

    	- 3 -

    	 

    

 

(viii)      any
Note Party or any of its Subsidiaries shall fail to perform or comply in any material respect with any covenant or agreement contained
in the Security Documents to which it is a party;

 

(ix)         any
material provision of any Security Document (as determined by the Holder) shall at any time for any reason (other than pursuant
to the express terms thereof) cease to be valid and binding on or enforceable against any Note Party or any Subsidiary intended
to be a party thereto (except the guaranty obligations of Vringo, Ltd. with respect to the Guaranty to which it is a party), or
the validity or enforceability thereof shall be contested by any party thereto, or a proceeding shall be commenced by any Note
Party or any Subsidiary or any governmental authority having jurisdiction over any of them, seeking to establish the invalidity
or unenforceability thereof, or any Note Party or any Subsidiary shall deny in writing that it has any liability or obligation
purported to be created under any Security Document;

 

(x)          any
Security Document, after delivery thereof pursuant hereto, shall for any reason fail or cease to create a valid and perfected (except
as otherwise provided by Section 5(n) of the Security Agreement) and, except to the extent permitted by the terms hereof or thereof,
first priority Lien in favor of the Holder for the benefit of the holders of the Notes on any Collateral (as defined in the Security
Agreement) purported to be covered thereby;

 

(xi)         any
material damage to, or loss, theft or destruction of, a material amount of Collateral, whether or not insured, or any strike, lockout,
labor dispute, embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than fifteen (15) consecutive
days, the cessation or substantial curtailment of revenue producing activities at any facility of any Note Party or any Subsidiary,
if any such event or circumstance could reasonably be expected to have a Material Adverse Effect.

 

(b)          Redemption
Right. On and after a Default Date, with respect to this Note, the Company shall within one (1) Business Day deliver written
notice thereof via facsimile and overnight courier (an "Event of Default Notice") to the Holder. At any time after
the earlier of the Holder's receipt of an Event of Default Notice and the Default Date, the Holder may require the Company to redeem
(an "Event of Default Redemption") all or any portion of this Note by delivering written notice thereof (the "Event
of Default Redemption Notice") to the Company, which Event of Default Redemption Notice shall indicate the portion of
this Note the Holder is electing to redeem; provided, that, an Event of Default Redemption Notice may only be delivered so long
as an Event of Default is continuing. Each portion of this Note subject to redemption by the Company pursuant to this Section 4(b)
shall be redeemed by the Company in cash at a price equal to 125% of the Redemption Amount to be redeemed (the "Event of
Default Redemption Price"). Redemptions required by this Section 4(b) shall be made in accordance with the provisions
of Section 8. To the extent redemptions required by this Section 4(b) are deemed or determined by a court of competent jurisdiction
to be prepayments of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments. The parties hereto
agree that in the event of the Company's redemption of any portion of the Note under this Section 4(b), the Holder's damages would
be uncertain and difficult to estimate because of the parties' inability to predict future interest rates and the uncertainty of
the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any Event of Default redemption premium
due under this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder's actual
loss of its investment opportunity and not as a penalty.

 

    	- 4 -

    	 

    

 

(5)         RIGHTS
UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.

 

(a)          Assumption.
The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of
the obligations of the Company under this Note and the other Note Transaction Documents in accordance with the provisions of this
Section 5(a) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder
prior to such Fundamental Transaction, including agreements to deliver to each holder of Notes in exchange for such Notes a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Notes, including,
without limitation, having a principal amount and interest rate equal to the principal amounts and the interest rates of the Note
then outstanding held by such holder, having similar ranking and security to the Note, and satisfactory to the Holder. Upon the
occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after
the date of such Fundamental Transaction, the provisions of this Note referring to the "Company" shall refer instead
to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the
Company under this Note with the same effect as if such Successor Entity had been named as the Company herein. The provisions of
this Section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any
limitations on the redemption of this Note.

 

(b)          Redemption
Right. No sooner than fifteen (15) days nor later than ten (10) days prior to the consummation of a Change of Control, but
not prior to the public announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile
and overnight courier to the Holder (a "Change of Control Notice"). At any time during the period beginning
after the Holder's receipt of a Change of Control Notice and ending twenty (20) Business Days after the date of the consummation
of such Change of Control, the Holder may require the Company to redeem (a "Change of Control Redemption") all
or any portion of this Note by delivering written notice thereof ("Change of Control Redemption Notice", and the
date thereof, the "Change of Control Redemption Notice Date") to the Company, which Change of Control Redemption
Notice shall indicate the Redemption Amount the Holder is electing to require the Company to redeem. The portion of this Note subject
to redemption pursuant to this Section 5(b) shall be redeemed by the Company in cash at a price equal to 125% of the Redemption
Amount to be redeemed. Redemptions required by this Section 5 shall be made in accordance with the provisions of Section 8 and
shall have priority to payments to stockholders in connection with a Change of Control. To the extent redemptions required by this
Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of the Note by the Company, such redemptions
shall be deemed to be voluntary prepayments. The parties hereto agree that in the event of the Company's redemption of any portion
of the Note under this Section 5(b), the Holder's damages would be uncertain and difficult to estimate because of the parties'
inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity
for the Holder. Accordingly, any Change of Control redemption premium due under this Section 5(b) is intended by the parties to
be, and shall be deemed, a reasonable estimate of the Holder's actual loss of its investment opportunity and not as a penalty.

 

    	- 5 -

    	 

    

 

(6)         OPTIONAL
REDEMPTION RIGHT. From and after the date upon which (i) the Company and its Subsidiaries has more than $15,000,000 in the
aggregate of cash and Cash Equivalents, the Holder may, within 10 days of receipt of the Optional Redemption Notice, require the
Company to redeem up to 50% of the outstanding principal amount of this Note, (ii) the Company and its Subsidiaries has more than
$20,000,000 in the aggregate of cash and Cash Equivalents, the Holder may, within 10 days of receipt of the Optional Redemption
Notice, require the Company to redeem up to 100% of the outstanding principal of this Note, (iii) the Company and its Subsidiaries
receives proceeds in excess of $500,000 in the aggregate (for all such transactions after the Amendment and Restatement Date of
this Note) from the issuance of any equity or indebtedness of the Company or any of its Subsidiaries (excluding any proceeds received
upon the exercise of options or warrants which are outstanding on the day immediately preceding the Amendment and Restatement Date,
provided that the terms of such options or warrants are not amended, modified or changed on or after the Amendment and Restatement
Date), the Holder may, within 10 days of receipt of the Optional Redemption Notice, require the Company to redeem the outstanding
principal under this Note in an amount equal to up to 20% of the proceeds of the issuance of any such equity or indebtedness (each
such occurrence described in clauses (i) through (iii) above, an "Optional Redemption"), in each case by delivering
written notice thereof (the "Optional Redemption Notice") to the Company within the time periods set forth above,
which Optional Redemption Notice shall indicate the portion of this Note the Holder is electing to redeem. Each portion of this
Note subject to redemption by the Company pursuant to this Section 6 shall be redeemed by the Company in cash at a price equal
to 100% of the Redemption Amount to be redeemed (the "Optional Redemption Price"). Redemptions required by this
Section 6 shall be made in accordance with the provisions of Section 8. To the extent redemptions required by this Section 6 are
deemed or determined by a court of competent jurisdiction to be prepayments of the Note by the Company, such redemptions shall
be deemed to be voluntary prepayments. The parties hereto agree that in the event of the Company's redemption of any portion of
the Note under this Section 6, the Holder's damages would be uncertain and difficult to estimate because of the parties' inability
to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for the
Holder.

 

(7)         NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will
at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the rights
of the Holder of this Note.

 

    	- 6 -

    	 

    

 

(8)         REDEMPTIONS.
The Company shall deliver the applicable Event of Default Redemption Price to the Holder within five (5) Business Days after the
Company's receipt of the Holder's Event of Default Redemption Notice (the "Event of Default Redemption Date").
If the Holder has submitted a Change of Control Redemption Notice in accordance with Section 5(b), the Company shall deliver the
applicable Change of Control Redemption Price to the Holder (i) concurrently with the consummation of such Change of Control if
such notice is received prior to the consummation of such Change of Control and (ii) within five (5) Business Days after the Company's
receipt of such notice otherwise (such date, the "Change of Control Redemption Date"). The Company shall deliver
the applicable Optional Redemption Price to the Holder within five (5) Business Days after the Company's receipt of the Holder's
Optional Redemption Notice (the "Optional Redemption Date"). In the event of a redemption of less than all of
the Redemption Amount of this Note, the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance
with Section 13(d)) representing the outstanding Principal which has not been redeemed. In the event that the Company does not
pay the applicable Redemption Price to the Holder within the time period required, at any time thereafter and until the Company
pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the Company to promptly
return to the Holder all or any portion of this Note representing the Redemption Amount that was submitted for redemption and for
which the applicable Redemption Price (together with any Late Charges thereon) has not been paid. Upon the Company's receipt of
such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Redemption Amount, (y) the Company
shall immediately return this Note, or issue a new Note (in accordance with Section 13(d)) to the Holder representing such Redemption
Amount to be redeemed. The Holder's delivery of a notice voiding a Redemption Notice and exercise of its rights following such
notice shall not affect the Company's obligations to make any payments of Late Charges which have accrued prior to the date of
such notice with respect to the Redemption Amount subject to such notice.

 

(9)         VOTING
RIGHTS. The Holder shall have no voting rights as the holder of this Note, except as required by law, including, but not limited
to, the laws of the State of Delaware, and as expressly provided in this Note.

 

(10)        COVENANTS.

 

(a)          Rank.
   All payments due under this Note shall be senior to all other Indebtedness of the Company and its Subsidiaries
other than Permitted Senior Indebtedness.

 

(b)          Incurrence
of Indebtedness. So long as this Note is outstanding, the Company shall (and shall use its commercially reasonable efforts
to cause the Parent and the Parent's other Subsidiaries) not, and the Company shall not permit any of its Subsidiaries to, directly
or indirectly, incur or guarantee, assume or suffer to exist any Indebtedness, other than Permitted Indebtedness.

 

(c)          Existence
of Liens. So long as this Note is outstanding, the Company shall (and shall use its commercially reasonable efforts to cause
the Parent and the Parent's other Subsidiaries) not, and the Company shall not permit any of its Subsidiaries to, directly or indirectly,
allow or suffer to exist any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or
assets (including accounts and contract rights) owned by the Company or any of its Subsidiaries (collectively, "Liens")
other than Permitted Liens.

 

    	- 7 -

    	 

    

 

(d)          Restricted
Payments. The Company shall (and shall use its commercially reasonable efforts to cause the Parent and the Parent's other Subsidiaries)
not, and the Company shall not permit any of its Subsidiaries to, directly or indirectly, redeem, defease, repurchase, repay or
make any payments in respect of, by the payment of cash or Cash Equivalents (in whole or in part, whether by way of open market
purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness (other than this Note), whether
by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness if at the time such payment
is due or is otherwise made or, after giving effect to such payment, an event constituting, or that with the passage of time and
without being cured would constitute, an Event of Default has occurred and is continuing.

 

(e)          Restriction
on Redemption. Until this Note has been redeemed or otherwise satisfied in accordance with its terms, the Company shall (and
shall use its commercially reasonable efforts to cause the Parent and the Parent's other Subsidiaries) not, directly or indirectly,
redeem or repurchase its capital stock without the prior express written consent of the Holder.

 

(f)          [Intentionally
Omitted]

 

(g)          Intellectual
Property. The Company shall (and shall use its commercially reasonable efforts to cause the Parent and the Parent's
other Subsidiaries) not, and the Company shall not permit any of its Subsidiaries, directly or
indirectly, to encumber or allow any Liens on, any of its copyright rights, copyright applications,
copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished,
any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions,
and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications
therefor, whether registered or not, and the goodwill of the business of the Company and its Subsidiaries and the Parent and
the Parent's other Subsidiaries connected with and symbolized thereby, know-how, operating manuals,
trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement
of any of the foregoing, other than Permitted Liens.

 

(h)          Preservation
of Existence, Etc. The Company shall (and shall use its commercially reasonable efforts to cause the Parent and the Parent's
other Subsidiaries to) maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights
and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and in good standing
in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business
makes such qualification necessary.

 

    	- 8 -

    	 

    

 

(i)          Maintenance
of Properties, Etc. The Company shall (and shall use its commercially reasonable efforts to cause the Parent and the Parent's
other Subsidiaries to) maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties
which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear and tear
excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases to which it
is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

 

(j)          Maintenance
of Insurance. The Company shall (and shall use its commercially reasonable efforts to cause the Parent and the Parent's other
Subsidiaries to) maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance companies
or associations (including, without limitation, comprehensive general liability, hazard, rent and business interruption insurance)
with respect to its properties (including all real properties leased or owned by it) and business, in such amounts and covering
such risks as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally in
accordance with sound business practice by companies in similar businesses similarly situated.

 

(11)        VOTE
TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The consent of the Holder shall be required for any change or amendment to this Note.

 

(12)        TRANSFER.
This Note may be offered, sold, assigned or transferred by the Holder without the consent of the Company.

 

(13)        REISSUANCE
OF THIS NOTE.

 

(a)          Transfer.
If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Note (in accordance with Section 13(d)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less then the entire outstanding Principal is being transferred,
a new Note (in accordance with Section 13(d)) to the Holder representing the outstanding Principal not being transferred. The Holder
and any assignee, by acceptance of this Note, acknowledge and agree that, following redemption of any portion of this Note, the
outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note.

 

(b)          Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company
shall execute and deliver to the Holder a new Note (in accordance with Section 13(d)) representing the outstanding Principal.

 

(c)          Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Note or Notes (in accordance with Section 13(d) and in principal amounts of at least $100,000)
representing in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such
outstanding Principal as is designated by the Holder at the time of such surrender.

 

    	- 9 -

    	 

    

 

(d)          Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall
be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 13(a) or Section 13(c), the Principal designated by the Holder which,
when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal
remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated
on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions
as this Note, and (v) shall represent accrued and unpaid Interest and Late Charges, if any, on the Principal and Interest of this
Note, from the Issuance Date.

 

(14)                    TAXES.

 

(i)          Any
and all payments made by the Corporation hereunder, including any on account of Interest or Late Charges, must be made by it without
any a deduction or withholding for or on account of any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any related penalty or interest) from a payment under this Note (a "Tax Deduction"), unless a Tax Deduction
is required by law. If the Corporation is aware that it must make a Tax Deduction (or that there is a change in the rate or the
basis of a Tax Deduction), it must notify the Holder promptly.

 

(ii)         If
the Corporation is required to make a Tax Deduction from or in respect to any sum payable hereunder to the Holder, (i) the sum
payable shall be increased by the amount by which the sum payable would otherwise have to be increased (the "tax gross
up amount") to ensure that after making all required deductions (including deductions applicable to the tax gross-up amount)
the Holder would receive an amount equal to the sum it would have received had no such Tax Deductions been made, (ii) the Company
shall make such Tax Deductions and (iii) the Company shall pay the full amount withheld or deducted to the applicable governmental
authority within the time required. As soon as practicable after making a Tax Deduction or a payment required in connection with
a Tax Deduction, the Corporation must deliver to the Holder any official receipt or form, if any, provided
by or required by the taxing authority to whom the Tax Deduction was paid.

 

(iii)        The
obligations of the Corporation under this Section 14 shall survive the termination of this Note and the payment of the Note and
all other amounts payable hereunder.

 

(15)        REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note and any of the other Note Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder's right
to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. Amounts set forth
or provided for herein with respect to payments, redemption and the like (and the computation thereof) shall be the amounts to
be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company
(or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being
required.

 

    	- 10 -

    	 

    

 

(16)        PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this
Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company
or other proceedings affecting Company creditors' rights and involving a claim under this Note, then the Company shall pay the
costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, but not limited to, attorneys' fees and disbursements.

 

(17)        CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect
the interpretation of, this Note.

 

(18)        FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege.

 

(19)        DISPUTE
RESOLUTION. In the case of a dispute as to the determination of any Redemption Price, the Company shall submit the disputed
determinations or arithmetic calculations via facsimile within one (1) Business Day of receipt, or deemed receipt, of the Redemption
Notice or other event giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable
to agree upon such determination or calculation within one (1) Business Day of such disputed determination or arithmetic calculation
being submitted to the Holder, then the Company shall, within one (1) Business Day submit via facsimile the disputed arithmetic
calculation of the Redemption Price to an independent, outside accountant, selected by the Holder and approved by the Company,
such approval not to be unreasonably withheld or delayed. The Company, at the Company's expense, shall cause the accountant to
perform the determinations or calculations and notify the Company and the Holder of the results no later than five (5) Business
Days from the time it receives the disputed determinations or calculations. Such accountant's determination or calculation, as
the case may be, shall be binding upon all parties absent demonstrable error.

 

    	- 11 -

    	 

    

 

(20)        NOTICES;
PAYMENTS.

 

(a)   Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Note must be in
writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
or (iii) one (1) Business Day after deposit with an overnight courier service, in each case properly addressed to the party to
receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

	 	Innovate/Protect, Inc.
	 	c/o Vringo, Inc.
	 	44 West 28th Street
	 	New York, NY  10001
	 	Telephone:	(212) 571-1244
	 	Facsimile:	(646) 214-7946
	 	E-mail:	aberger@smartsearchlabs.com
	 	Attention:	Chief Operating Officer

 

With a copy to:

 

	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	 	Chrysler Center
	 	666 Third Avenue
	 	New York, NY 10017
	 	Telephone:	(212) 935-3000
	 	Facsimile:	(212) 983-3115
	 	E-mail:	KRKoch@mintz.com
	 	Attention:	Kenneth R. Koch, Esq.

 

If to the Buyer:

 

	 	Hudson Bay Master Fund Ltd.
	 	c/o Hudson Bay Capital Management LP
	 	777 Third Avenue, 30th Floor
	 	New York, NY  10017
	 	Telephone:	(212) 571-1244
	 	Facsimile:	(646) 214-7946
	 	E-mail:	investments@hudsonbaycapital.com
	 	 	operations@hudsonbaycapital.com
	 	Attention:	Yoav Roth

 

With a copy (for informational purposes only) to:

 

	 	Schulte Roth & Zabel LLP
	 	919 Third Avenue
	 	New York, New York  10022
	 	Telephone:	(212) 756-2000
	 	Facsimile:	(212) 593-5955
	 	Attention:	Eleazer N. Klein, Esq.
	 	E-mail:	eleazer.klein@srz.com

 

    	- 12 -

    	 

    

 

or to such other
address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice
given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by
the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's
facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or
(C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt
from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively. The Company shall provide the
Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description of such
action and the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice to the
Holder at least twenty (20) days prior to the date on which the Company closes its books or takes a record for determining rights
to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall
be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

(b)          Payments.
Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall be made in lawful
money of the United States of America by a check drawn on the account of the Company and sent via overnight courier service to
such Person at such address as previously provided to the Company in writing; provided that the Holder may elect to receive a payment
of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such request
and the Holder's wire transfer instructions. Whenever any amount expressed to be due by the terms of this Note is due on any day
which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day and, in the case
of any Interest Date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not
be taken into account for purposes of determining the amount of Interest due on such date. Any amount of Principal or other amounts
due under the Note Transaction Documents which is not paid when due shall result in a late charge being incurred and payable by
the Company in an amount equal to interest on such amount at the rate of twenty four percent (24%) per annum from the Default Date
due until the same is paid in full ("Late Charge").

 

(21)        CANCELLATION.
After all Principal, accrued Interest and other amounts at any time owed on this Note have been paid in full, this Note shall automatically
be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

 

(22)        WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices
in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

    	- 13 -

    	 

    

 

(23)        GOVERNING
LAW; JURISDICTION; JURY TRIAL. This Note shall be construed and enforced in accordance with,
and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the
internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of New York. The Company hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. The
Company hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address it set forth on the signature page hereto 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. Nothing contained herein shall be deemed or operate
to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect
on the Company's obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce
a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR
ANY TRANSACTION CONTEMPLATED HEREBY.

 

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

 

(25)        CERTAIN
DEFINITIONS. For purposes of this Note, the following terms shall have the following meanings:

 

(a)          "Affiliate"
has the meaning set forth in Rule 405 under the Securities Act of 1933, as amended.

 

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

 

    	- 14 -

    	 

    

 

(c)          "Change
of Control" means any Fundamental Transaction other than (i) any reorganization, recapitalization
or reclassification of the Common Stock in which holders of the Company's voting power immediately prior to such reorganization,
recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly
traded securities and, directly or indirectly, are, in all material respect, the holders of the voting power of the surviving entity
(or entities with the authority or voting power to elect the members of the board of directors (or their equivalent if other than
a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification or (ii) pursuant to
a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company.

 

(d)          "Calendar
Quarter" means each of: the period beginning on and including January 1 and ending on and including March 31; the period
beginning on and including April 1 and ending on and including June 30; the period beginning on and including July 1 and ending
on and including September 30; and the period beginning on and including October 1 and ending on and including December 31.

 

(e)          "Cash
Equivalents" means (a) marketable direct obligations issued or unconditionally guaranteed by the United States Government
or issued by any agency thereof and backed by the full faith and credit of the United States, in each case, maturing within six
months from the date of acquisition thereof; (b) commercial paper, maturing not more than 270 days after the date of issue rated
P 1 by Moody's or A 1 by Standard & Poor's; (c) certificates of deposit maturing not more than 270 days after the date of issue,
issued by commercial banking institutions and money market or demand deposit accounts maintained at commercial banking institutions,
each of which is a member of the Federal Reserve System and has a combined capital and surplus and undivided profits of not less
than $500,000,000; (d) repurchase agreements having maturities of not more than 90 days from the date of acquisition which are
entered into with major money center banks included in the commercial banking institutions described in clause (c) above and which
are secured by readily marketable direct obligations of the United States Government or any agency thereof; (e) money market accounts
maintained with mutual funds having assets in excess of $2,500,000,000; and (f) marketable tax exempt securities rated A or higher
by Moody's or A+ or higher by Standard & Poor's, in each case, maturing within six months from the date of acquisition thereof.

 

(f)          "Common
Stock" means the Company's common stock, par value $0.0001 per share.

 

(g)          "Contingent
Obligation" means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

    	- 15 -

    	 

    

 

(h)          "Default
Date" means the date that is four (4) days after the Holder gives notice of the existence of an Event of Default that
has occurred and continued for at least eight (8) days.

 

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

 

(j)          "Fundamental
Transaction" means that (A) the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate
or merge with or into (whether or not the Company is the surviving corporation) another Person or Persons, or (ii) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person,
or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50%
of the outstanding shares of Voting Stock (not including any shares of Voting Stock held by the Person or Persons making or party
to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate
a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of
Voting Stock (not including any shares of Voting Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), (v) reorganize,
recapitalize or reclassify its Common Stock or (B) any "person" or "group" (as these terms are used for purposes
of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the "beneficial owner" (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding
Common Stock.

 

(k)          "GAAP"
means United States generally accepted accounting principles, consistently applied.

 

(l)          "Indebtedness"
of any Person means, without duplication (i) all indebtedness for borrowed money, (ii) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services, including (without limitation) "capital leases" in accordance
with GAAP (other than trade payables entered into in the ordinary course of business), (iii) all reimbursement or payment obligations
with respect to letters of credit, surety bonds and other similar instruments, (iv) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property,
assets or businesses, (v) all indebtedness created or arising under any conditional sale or other title retention agreement, or
incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or
sale of such property), (vi) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP,
consistently applied for the periods covered thereby, is classified as a capital lease, (vii) all indebtedness referred to in clauses
(i) through (vi) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not
assumed or become liable for the payment of such indebtedness, and (viii) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (i) through (vii) above.

 

    	- 16 -

    	 

    

 

(m)          "Interest
Rate" means 0.46% per annum, subject to adjustment as set forth in Section 2.

 

(n)          "Material
Adverse Effect" means any material adverse effect on the business, properties, assets, operations, results of operations,
condition (financial or otherwise) or prospects of the Parent and its Subsidiaries, individually or taken as a whole, or on the
transactions contemplated hereby or on the other Note Transaction Documents or by the agreements and instruments to be entered
into in connection herewith or therewith, or on the authority or ability of the Company to perform its obligations under the Note
Transaction Documents.

 

(o)          "Note
Party" means each of the Company, the Parent and each other Subsidiary of the Parent party to any Note Transaction Document.

 

(p)          "Note
Transaction Documents" means this Note and the Security Documents.

 

(q)          "Parent"
means Vringo, Inc., a Delaware corporation.

 

(r)          "Permitted
Indebtedness" means (i) Indebtedness evidenced by this Note, (ii) unsecured Indebtedness incurred by the Parent or any
of its Subsidiaries that is made expressly subordinate in right of payment to the Indebtedness evidenced by this Note, as reflected
in a written agreement acceptable to the Holder and approved by the Holder in writing, and which Indebtedness does not provide
at any time for (A) the payment, prepayment, repayment, repurchase or defeasance, directly or indirectly, of any principal or premium,
if any, thereon until ninety-one (91) days after the Maturity Date or later and (B) total interest and fees at a rate in excess
of 8% per annum, (iii) Specified Indebtedness and (iv) Indebtedness secured by Permitted Liens described in clauses (ii), (iii),
(iv) and (v) of the definition of Permitted Liens.

 

(s)          "Permitted
Liens" means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings
for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course
of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen's liens, mechanics' liens and other similar liens, arising in the ordinary course of business with
respect to a liability that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings,
(iv) Liens (A) upon or in any equipment acquired or held by the Parent or any of its Subsidiaries to secure the purchase price
of such equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B)
existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired
and improvements thereon, and the proceeds of such equipment, (v) Liens incurred in connection with the extension, renewal or refinancing
of the indebtedness secured by Liens of the type described in clause (iv) above, provided that any extension, renewal or replacement
Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended,
renewed or refinanced does not increase, (vi) leases or subleases and licenses and sublicenses granted to others in the ordinary
course of the Parent's business, not interfering in any material respect with the business of the Parent and its Subsidiaries taken
as a whole, (vii) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom
duties in connection with the importation of goods, and (viii) Liens arising from judgments,
decrees or attachments in circumstances not constituting an Event of Default under Section 4(a)(v) and (ix) Liens securing Specified
Indebtedness as described in such definition.

 

    	- 17 -

    	 

    

 

(t)          "Permitted
Senior Indebtedness" means the following Indebtedness (with applicable lien priorities which may be senior or junior,
as the case may be and with payment priorities to the extent, but only to the extent, of any proceeds from the collateral which
the holders of Permitted Senior Indebtedness have a lien on and which lien is senior to the liens by which this Note is secured):
(i) Indebtedness permitted under clause (iii) of the definition of Permitted Indebtedness and (ii) Indebtedness permitted under
clause (iv) of the definition of Permitted Indebtedness.

 

(u)          "Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(v)         "Public
Company Date" means the date the shares of Common Stock of the Company (or its successor by merger, recapitalization,
reorganization, or otherwise) are registered under the Exchange Act.

 

(w)          "Redemption
Amount" means the sum of (A) the portion of the Principal to be redeemed or otherwise with respect to which this determination
is being made, (B) accrued and unpaid Interest with respect to such Principal and (C) accrued and unpaid Late Charged with respect
to such Principal and Interest.

 

(x)          "Redemption
Notices" means, collectively, the Event of Default Redemption Notices, the Change of Control Redemption Notices and the
Optional Redemption Notices, each of the foregoing, individually, a Redemption Notice.

 

(y)          "Redemption
Prices" means, collectively, the Event of Default Redemption Price, the Change of Control Redemption Price and the Optional
Redemption Prices, each of the foregoing, individually, a Redemption Price.

 

(z)          "Security
Documents" means (i) that certain Amended and Restated Pledge and Security Agreement, dated as of the date hereof, by
and among Parent and its Subsidiaries pursuant to which Parent and its Subsidiaries granted security interests in and liens on
their assets in favor of the Buyer (as defined therein) to secure their respective obligations under the Note Transaction Documents,
(ii) that certain Amended and Restated Guaranty, dated as of the date hereof, by and among Parent and certain of its Subsidiaries
pursuant to which Parent and such Subsidiaries guaranteed all of the obligations of the Company under the Note Transaction Documents
in favor of the Buyer, and (iii) any ancillary agreements, instruments and other documents relating to the enforcement or protection
of the Collateral, including, agreements, instruments and other documents to create or further the attachment, perfection or priority
of the liens on and security interests in the Collateral.

 

    	- 18 -

    	 

    

 

(aa)         "Specified
Indebtedness" means, on or prior to the date that is 18 months after the first issuance of the Series A Preferred Stock
(the “Series A Preferred Stock”) of the Parent to the Holder, Indebtedness, to the extent
such Indebtedness (i) is issued or incurred with net proceeds to the Parent or (ii) will have an outstanding principal amount incurred
plus accrued interest, as applicable, in an amount, individually or in the aggregate, up to $6,000,000 less the then outstanding
principal amount of this Note; provided, that the Parent and its Subsidiaries shall be permitted to
incur Indebtedness, provided, that the liens or other encumbrances, if any, on such Indebtedness cover only assets acquired after
the initial issuance date of the Series A Preferred Stock, and the holder of such Indebtedness expressly subordinates to the holders
of the Series A Preferred Stock with respect to assets owned by the Parent on or prior to such initial issuance date pursuant to
a subordination agreement in form and substance reasonably satisfactory to the Required Holders (as defined in the instrument governing
the Series A Preferred Stock).

 

(bb)         "Subscription
Agreement" means that certain subscription agreement dated as of June 22, 2011 by and among the Company and the Holder
pursuant to which the Company issued to the Holder this Note and certain shares of convertible preferred stock, as the same may
be amended, restated, supplemented or otherwise modified from time to time.

 

(cc)         "Subsidiary"
means any entity in which the Parent, directly or indirectly, owns at least a majority of the voting stock or voting securities.

 

(dd)         "Successor
Entity" means the Person, which may be the Company, formed by, resulting from or surviving any Fundamental Transaction
or the Person with which such Fundamental Transaction shall have been made.

 

(ee)         "Voting
Stock" of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or
trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might
have voting power by reason of the happening of any contingency).

 

(26)        DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note after the Public Company Date,
unless the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic
information relating to the Company or its Subsidiaries, the Company shall within one (1) Business Day after any such receipt or
delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that
the Company believes that a notice contains material, nonpublic information relating to the Company or its Subsidiaries, the Company
so shall indicate to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the
Holder shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information relating
to the Company or its Subsidiaries. In addition, contemporaneously with the occurrence of either event described in Sections 6(i)
or 6(ii), the Company shall publicly disclose the occurrence of such event (whether by press release or otherwise).

 

    	- 19 -

    	 

    

 

(27)        ASSUMPTION;
AMENDMENT AND RESTATEMENT. This Note amends and restates in its entirety the Senior Secured Note, dated June 22, 2011, as amended,
originally made by the Company (as successor to Labrador Search Corporation) to the order of the Holder (the "Original
Note"). This Note shall not in any way constitute (i) an extinguishment of the indebtedness of the Company under the
Original Note, (ii) a release or other discharge of the Company from any of its obligations and liabilities under the Original
Note or any documents related thereto, or (iii) a novation of the Original Note.

 

[Signature Page Follows]

 

    	- 20 -

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Note to be duly executed as of the Amendment and Restatement Date set out above.

 

	 	INNOVATE/PROTECT, INC.
	 	 
	 	By:	/s/ Andrew Perlman 
	 	 	Name: Andrew Perlman
	 	 	Title: CEO

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