Document:

Exhibit
10.2

 

LOAN
AGREEMENT

 

THIS
AGREEMENT dated August 20, 2021,

 

AMONG:

 

Currencyworks,
inc., a corporation formed pursuant to the laws
of the state of Nevada;

 

(the
“Lender”)

 

AND:

 

fogdog
energy solutions inc., a corporation formed
pursuant to the laws of the Province of Alberta;

 

(the
“Borrower”)

 

BACKGROUND:

 

	A.	The
                                            Borrower has applied to the Lender for a loan in the principal amount of up to USD$850,000
                                            to be utilized by the Borrower for the purposes described in Section 3.

 

	B.	The
                                            Lender has agreed to make the Loan available to the Borrower in accordance with the terms
                                            and conditions of this Agreement.

 

THEREFORE
in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the Lender and the Borrower warrant
and represent to and covenant and agree with each other as set forth below.

 

	1.	DEFINITIONS;
                                            INTERPRETATION

 

	1.1	For
                                            the purpose of this Agreement, the following words and phrases will have meanings set forth
                                            below unless the parties or the context otherwise require(s):

 

		(a)	“Advance”
                                            means the advance of the Loan;

 

		(b)	“Advance
                                            Date” means the date the Advance is made;

 

		(c)	“Advance
                                            Request” has the meaning given to it in Section 5.1;

 

		(d)	“Agreement”
                                            and “this Agreement” means this agreement and any schedules hereto as
                                            the same may be amended, modified, replaced, supplemented or restated from time to time;

 

		(e)	“Business
                                            Day” means any day, other than a Saturday or a Sunday, or a “holiday”
                                            as defined under the Interpretation Act of British Columbia or any day on which banks
                                            are not open in California;

 

		(f)	“Conditions
                                            Precedent” means the conditions precedent described in Section 11 hereof;

 

    	 

    	 

    

 

		(g)	“Event
                                            of Default” means any of the events specified in Section 14;

 

		(h)	“Interest
                                            Rate” means ten percent (10.0%) per annum, calculated as herein provided;

 

		(i)	“Loan”
                                            means the non-revolving loan of up to USD$850,000 made by the Lender in favour of the Borrower
                                            pursuant to this Agreement;

 

		(j)	“Obligations”
                                            means all present and future indebtedness, liabilities and obligations of any and every kind,
                                            nature and description of the Borrower to the Lender under or in connection with the Loan
                                            (including, without limitation, at any point in time the principal amount outstanding under
                                            the Loan, interest accrued thereon, liquidated damages, and all fees and costs and expenses
                                            then payable in connection therewith);

 

		(k)	“person”
                                            means and includes an individual, a partnership, a joint venture, a corporation, a limited
                                            liability company, a trust, an unincorporated organization and a government or any department
                                            or agency thereof; and

 

		(l)	“Security
                                            Agreement” means the security agreement granted by the Borrower to the Lender dated
                                            August 20, 2021.

 

	1.2	For
                                            the purpose of this Agreement, the following meanings of interpretation will apply:

 

		(a)	“herein”,
                                            “hereunder”, and similar terms refer to this Agreement as a whole and not to
                                            any specific, section, clause or provision thereof;

 

		(b)	when
                                            the context makes it possible, the singular includes the plural and vice versa, and all references
                                            to any person, whether a party to this Agreement or not, will be read with such changes in
                                            number or gender as the party or reference requires;

 

		(c)	any
                                            reference in this Agreement to a statute will include any amendment or successor statute
                                            and any regulations thereunder in force from time to time; and

 

		(d)	the
                                            headings appearing in this Agreement have been inserted for convenience of reference only
                                            and in no way define, limit, or enlarge the scope or meaning of the provisions of this Agreement.

 

	2.	LOAN

 

		2.1	The
                                            Lender agrees to make the Loan available on the terms and subject to the conditions of this
                                            Agreement.

 

	3.	PURPOSE

 

	3.1	The
                                            Loan will be made available to the Borrower for its development of technology to build and
                                            operate clean electricity power generation thermal units.

 

    	 

    	 

    

 

	4.	AVAILABILITY

 

	4.1	The
                                            Loan will be available by a single Advance in accordance with the terms and conditions in
                                            this Agreement.

 

	4.2	The
                                            principal amount advanced and outstanding under the Loan will at no time exceed USD$850,000.

 

	5.	ADVANCE
                                            of Loan

 

	5.1	Provided
                                            that that there has not been an Event of Default, the Borrower may request an Advance on
                                            account of the Loan by delivering a written notice (an “Advance Request”).

 

	5.2	If
                                            the Conditions Precedent are satisfied, the Lender will make the Advance to the Borrower
                                            no later than ♦ days after receipt of the Advance Request, or such later date as agreed to
                                            between by the Borrower.

 

	6.	interest
                                            and fees

 

	6.1	The
                                            Borrower will pay interest on the Loan, from and including the Advance Date, on all principal
                                            amounts outstanding under the Loan, after as well as before maturity, default and judgment,
                                            at the Interest Rate.

 

	6.2	All
                                            overdue and unpaid interest and all fees, costs, and other amounts payable by the Borrower
                                            hereunder will be added to the principal balance of the Loan and will bear interest at the
                                            Interest Rate until paid in full.

 

	6.3	Interest
                                            will be calculated as herein provided on the outstanding daily principal balance of the Loan
                                            and on overdue interest, daily, not in advance, as well after as before maturity, default
                                            and judgment on the basis of a 365 (or in the case of a leap year 366 day) year based on
                                            the actual number of days elapsed, on a nominal rate basis and without allowance or deduction
                                            for deemed re-investment or otherwise with respect to any amounts from time to time paid
                                            to the Lender on account of interest under the Loan.

 

	6.4	If
                                            calculated interest with respect to the Loan is determined to be in excess of the maximum
                                            interest rate permitted by law, the parties agree to reduce that the interest payable will
                                            be automatically reduced to such rate of interest as is 0.1% below the maximum permitted
                                            by law and to reduce interest otherwise paid or payable to such adjusted rate. Any excess
                                            amount of interest received by a Lender shall be first applied to any unpaid principal balance
                                            owed by the Borrower, and if the then remaining excess amount is greater than the previously
                                            unpaid principal balance, the Lender shall promptly refund such excess amount to the Borrower.

 

	7.	repayment

 

	7.1	On
                                            the date that is 365 days after the Advance Date, the Borrower will pay to the Lender an
                                            amount equal to the first year of accrued and unpaid interest on all principal amounts outstanding
                                            on the Loan.

 

	7.2	Commencing
                                            on the date that is 365 days after the Advance Date on the first day of each month the Borrower
                                            agrees to pay to the Lender an equal monthly payment of principal in the amount amortized
                                            over 5 years and a monthly payment of interest on such principal amount of the Loan.

 

    	 

    	 

    

 

	7.3	Unless
                                            demanded or otherwise due hereunder earlier, all Obligations are due and payable on August
                                            20, 2027.

 

	7.4	All
                                            amounts payable by the Borrower under this Agreement will be paid without set-off or counterclaim,
                                            and without any deductions or withholdings whatsoever.

 

	7.5	The
                                            Lender will provide the Borrower with its payment details and all payments made hereunder
                                            will be made by bank draft, certified cheque, wire transfer or electronic funds transfer
                                            and delivered to the Lender no later than 5pm PST. In the event payments are not received
                                            by 5pm PST on such due date, the Lender will be deemed to have received such payment on the
                                            next following Business Day and interest will be calculated to such date.

 

	7.6	Notwithstanding
                                            anything in this Agreement to the contrary, any payment of the Obligations that is due on
                                            a date other than a Business Day will be made on the next succeeding Business Day.

 

	8.	PREPAYMENT

 

	8.1	The
                                            Borrower may prepay the whole or any portion of the Obligations at any time and from time
                                            to time, without notice, bonus or penalty.

 

	9.	EVIDENCE
                                            OF DEBT

 

	9.1	The
                                            Lender shall maintain in accordance with its usual practice an account or accounts evidencing
                                            the indebtedness of the Borrower to the Lender resulting from the advance made by the Lender,
                                            including the amounts of principal and interest payable and paid to the Lender from time
                                            to time hereunder. The entries made in the accounts maintained pursuant to this subsection
                                            shall be, in the absence of manifest error, prima facie evidence of the existence
                                            and amounts of the obligations recorded therein; provided that the failure of the Lender
                                            to maintain such accounts or any error therein shall not in any manner affect the obligation
                                            of the Borrower to repay the Loan in accordance with the terms of this Agreement.

 

	10.	METHOD
                                            AND APPLICATION OF PAYMENTS

 

	10.1	Each
                                            payment made by the Borrower hereunder shall be applied by the Lender firstly in payment
                                            of any fees and expenses due hereunder, secondly to the satisfaction of interest accrued
                                            to the date of payment, and the balance, if any, in reduction of the principal amount of
                                            the Loan.

 

	11.	CONDITIONS
                                            PRECEDENT

 

	11.1	The
                                            Lender’s obligation to make the Loan available or any Advance thereunder is subject
                                            to the following conditions precedent having been met or waived by the Lender, namely:

 

		(a)	the
                                            Lender having received a duly executed copy of this Agreement;

 

    	 

    	 

    

 

		(b)	the
                                            Lender having received a duly executed Security Agreement in the form as it requires;

 

		(c)	the
                                            Lender having received an Advance Request from the Borrower;

 

		(d)	the
                                            Borrower’s representations and warranties contained herein and in the Security Agreement
                                            then being true and correct in all material respects;

 

		(e)	all
                                            registrations required in respect of the Security Agreement have been made;

 

		(f)	there
                                            then being no outstanding Event of Default; and

 

		(g)	all
                                            such other documents, assurances, certificates, solicitors’ opinions and covenants
                                            as the Lenders may reasonably require.

 

	12.	REPRESENTATIONS
                                            AND WARRANTIES

 

	12.1	The
                                            Borrower represents and warrants as follows:

 

		(a)	the
                                            Borrower is a corporation duly organized, validly existing and in good standing under the
                                            laws of the Province of British Columbia;

 

		(b)	the
                                            Borrower has the corporate power and capacity to carry on business as currently conducted
                                            by it, own property or interests therein, borrow money, make, keep, observe and perform representations,
                                            warranties, covenants and agreements and obligations and incur liabilities, all as contemplated
                                            hereby;

 

		(c)	the
                                            execution, delivery and performance of this Agreement and the Security Agreement has been
                                            duly authorized by all actions, if any, required on its part and by its shareholders and
                                            directors, and each of such documents has been duly executed and delivered and constitutes
                                            a valid and legally binding obligation of the Borrower enforceable against it in accordance
                                            with its terms;

 

		(d)	there
                                            is no action, suit, investigation or proceeding outstanding or pending or, to the knowledge
                                            of the Borrower, threatened against it or any of its property, assets or undertakings by
                                            or before any court, arbitrator or administrative or governmental body which would reasonably
                                            be expected to have a material adverse effect; and

 

		(e)	the
                                            execution and delivery by it of this Agreement and the Security Agreement and the performance
                                            by it of its obligations hereunder and thereunder, do not and will not conflict with or result
                                            in a material breach of any of the terms, conditions, or provisions of:

 

		(i)	its
                                            constating documents;

 

		(ii)	any
                                            law, regulation, or decree applicable or binding on it or any of its property, assets and
                                            undertaking; or

 

		(iii)	any
                                            material agreement or instrument binding to which it or any of its property assets or undertakings
                                            is a party or bound, the breach of which could reasonably be expected to have a material
                                            adverse effect or result in, or require or permit the imposition of any Lien in or with respect
                                            to the property, assets and undertakings now owned or hereafter acquired by it.

 

    	 

    	 

    

 

	13.	COVENANTS

 

	13.1	The
                                            Borrower covenants and agrees with the Lender that the Borrower will:

 

		(a)	duly
                                            and punctually pay or cause to be paid to the Lender the Loan, interest thereon and all other
                                            amounts from time to time payable hereunder on the date, at the place and in the manner set
                                            forth in this Agreement;

 

		(b)	comply
                                            with all applicable laws, ordinances or governmental rules or regulations to which it or
                                            any of its property, assets and undertaking are subject;

 

		(c)	promptly
                                            deliver the Lenders with written notice of any Event of Default or event which may result
                                            in an Event of Default under this Agreement;

 

		(d)	observe
                                            and perform its obligations and liabilities under the Security Agreement; and

 

		(e)	at
                                            any time and from time to time upon the written request of the Lender, execute and deliver
                                            such further documents and do such further acts and things as the Lender may reasonably request
                                            in order to effect the purposes of this Agreement or the Security Agreement, as the case
                                            may be.

 

	14.	EVENTS
                                            OF DEFAULT

 

	14.1	At
                                            the option of and upon demand by the Lender, the Obligations will immediately become due
                                            and payable and this Agreement will become enforceable upon the happening of any one or more
                                            of the following events:

 

		(a)	the
                                            Borrower failing to pay to the Lender when due any of the Obligations;

 

		(b)	if
                                            the Borrower neglects to observe or perform any covenant or obligation contained herein or
                                            in the Security Agreement on its part to be observed or performed and the Borrower fails
                                            to remedy such default, if capable of remedy, within a period of 30 days from occurrence
                                            of such default;

 

		(c)	if
                                            any representation or warranty made by the Borrower in this Agreement or the Security Agreement
                                            or in any certificate or other document at any time delivered hereunder to the Lender proves
                                            to have been incorrect or misleading in any material respect on and as of the date that it
                                            was made or was deemed to have been made and if capable of remedy, is not remedied within
                                            30 days;

 

		(d)	if
                                            the Borrower ceases or threatens to cease to carry on business generally or admits in writing
                                            its inability or fails to pay its liabilities generally;

 

    	 

    	 

    

 

		(e)	if
                                            the Borrower:

 

		(i)	becomes
                                            insolvent, or generally does not or becomes unable to pay its debts or meet its liabilities
                                            as the same become due, or admits in writing its inability to pay its debts generally, or
                                            declares any general moratorium on its indebtedness, or proposes a compromise or arrangement
                                            between it or any of its creditors;

 

		(ii)	commits
                                            an act of bankruptcy under the Bankruptcy and Insolvency Act (Canada) or under analogous
                                            foreign law, or makes an assignment of its property for the general benefit of its creditors
                                            under such Act or under analogous or similar foreign law, or makes a proposal (or files a
                                            notice of its intention to do so) under such Act or under analogous or similar foreign law;

 

		(iii)	institutes
                                            or in any manner becomes subject to, any proceeding seeking to adjudicate it an insolvent,
                                            or seeking liquidation, dissolution, winding-up, reorganization, compromise, arrangement,
                                            adjustment, protection, moratorium, relief, stay of proceedings of creditors generally (or
                                            any class of creditors), or composition of it, its equity or its debts or any other relief,
                                            under any federal, provincial or foreign law now or hereafter in effect including without
                                            limitation relating to bankruptcy, winding-up, insolvency, reorganization, receivership,
                                            plans of arrangement or relief or protection of debtors (including the Bankruptcy and
                                            Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada)
                                            and any applicable corporations legislation) or at common law or in equity, or files an answer
                                            or response or any filing admitting the material allegations filed against it in any such
                                            proceeding;

 

		(iv)	applies
                                            for the appointment of, or the taking possession by, a receiver, interim receiver, receiver/manager,
                                            monitor, sequestrator, conservator, custodian, administrator, trustee, liquidator or other
                                            similar official for it or any substantial part of its property; or

 

		(v)	threatens
                                            to do any of the foregoing, or takes any action, corporate or otherwise, to approve, effect,
                                            consent to or authorize any of the actions described in this Section 14.1(e) or otherwise
                                            acts in furtherance thereof or fails to act in a timely and appropriate manner in defence
                                            thereof; or

 

		(f)	any
                                            petition is filed, application made or other proceeding instituted against or in respect
                                            of the Borrower:

 

		(i)	seeking
                                            to adjudicate it an insolvent;

 

		(ii)	seeking
                                            a bankruptcy order against it under the Bankruptcy and Insolvency Act (Canada) or
                                            under analogous or similar foreign law;

 

		(iii)	seeking
                                            liquidation, dissolution, winding-up, reorganization, compromise, arrangement, adjustment,
                                            protection, moratorium, relief, stay of proceedings of creditors generally (or any class
                                            of creditors), or composition of it, its equity or its debts or any other relief under any
                                            federal, provincial or foreign law now or hereafter in effect including without limitation
                                            relating to bankruptcy, winding-up, insolvency, reorganization, receivership, plans of arrangement
                                            or relief or protection of debtors (including the Bankruptcy and Insolvency Act (Canada),
                                            the Companies’ Creditors Arrangement Act (Canada) and any applicable corporations
                                            legislation or at common law or in equity); or

 

    	 

    	 

    

 

		(iv)	seeking
                                            the entry of an order for relief or the appointment of, or the taking of possession by, a
                                            receiver, interim receiver, receiver/manager, monitor, sequestrator, conservator, custodian,
                                            administrator, trustee, liquidator or other similar official for it or any substantial part
                                            of its property,

 

and
such petition, application or proceeding continues undismissed, or unstayed and in effect, for a period of 30 days after the institution
thereof, provided that if an order, decree or judgment is granted or entered (whether or not entered or subject to appeal) against such
person thereunder in the interim, such grace period will cease to apply, and provided further that if such person files an answer response
or any filing admitting the material allegations filed against it in any such proceeding, such grace period will cease to apply.

 

	15.	Costs

 

	15.1	Each
                                            party will be liable for its own costs and expenses related to preparation, execution and
                                            delivery of this Agreement and the Borrower will be liable for its and the Lender’s
                                            costs, including the fees of the Lender’s lawyers, in connection with any enforcement
                                            action taken under or in connection with this Agreement or the Security Agreement.

 

	16.	Waiver

 

	16.1	The
                                            Lender may waive any breach by the Borrower of any of the provisions contained in this Agreement
                                            or any default by the Borrower in the observance or performance of any covenant or condition
                                            required to be observed or performed by the Borrower under the terms of this Agreement; but
                                            any waiver by the Lender of such breach or default, or any failure to take any action to
                                            enforce its rights hereunder will not extend to or be taken in any manner whatsoever to affect
                                            any subsequent breach or default or the rights resulting therefrom.

 

	17.	MISCELLANEOUS

 

	17.1	The
                                            Security Agreement will not operate to merge, novate or discharge the Obligations. The execution
                                            and delivery of the Security Agreement will not in any way suspend or affect the present
                                            or future rights and remedies of the Lender in respect of the Obligations. No action or judgment
                                            taken by the Lender in respect of the Security Agreement or with respect to the Obligations
                                            will affect the liability of the Borrower hereunder and nothing but the actual payment in
                                            full by the Borrower to the Lender of the Obligations will discharge the Borrower or the
                                            Security Agreement.

 

	17.2	No
                                            amendment, waiver or modification of, or agreement collateral to, this Agreement will be
                                            enforceable unless it is by a formal instrument in writing expressed to be a modification
                                            of this Agreement and executed in the same manner as this Agreement.

 

    	 

    	 

    

 

	17.3	All
                                            covenants and other agreements in this Agreement contained by or on behalf of any of the
                                            parties hereto will bind and enure to the benefit of the respective successors and assigns
                                            of the parties hereto (including, without limitation, any transferee) whether so expressed
                                            or not; provided, however, that the Borrower may not assign its rights or obligations hereunder
                                            to any person without the Lender’s prior written consent.

 

	17.4	Any
                                            notice delivered or sent by electronic mail or other means of electronic communication capable
                                            of producing a printed copy on a Business Day will be deemed conclusively to have been effectively
                                            given on the day the notice was delivered, or the transmission was sent successfully, to
                                            the address (physical or electronic), as the case may be, set out below. Any notice sent
                                            by prepaid registered mail will be deemed conclusively to have been effectively given on
                                            the third Business Day after posting; but if at the time of posting or between the time of
                                            posting and the third Business Day thereafter there is a strike, lockout, or other labour
                                            disturbance affecting postal service, then the notice will not be effectively given until
                                            actually delivered.

 

Notice
details for:

 

Lender

 

CURRENCYWORKS,
INC.

561
Indiana Court

Los
Angeles, California, United States

 90291

Name:
Jimmy Geiskopf

Email: jimmy.geiskopf@currencyworks.io

 

Borrower

 

FOGDOG
ENERGY SOLUTIONS INC.

619
Everridge Drive, SW

Calgary,
Alberta, Canada

T2Y
5E5

Name: Marlon Lee Him

Email:
marlon@fogdogenergy.com

 

	17.5	The
                                            descriptive headings of the several sections of this Agreement are inserted for convenience
                                            only and do not constitute a part of this Agreement.

 

	17.6	This
                                            Agreement will be construed and enforced in accordance with, and the rights of the parties
                                            will be governed by the laws of the Province of British Columbia and applicable federal laws
                                            thereto. The Lender and the Borrower hereby attorn to the courts of competent jurisdiction
                                            located in the Province of British Columbia in any proceedings hereunder.

 

	17.7	This
                                            Agreement may be executed simultaneously in counterparts, each of which will be deemed an
                                            original, and it will not be necessary in making proof of this Agreement to produce or account
                                            for more than one such counterpart. This Agreement may be executed by delivery of executed
                                            signature pages by fax or other form of electronic transmission and such transmission will
                                            be effective for all purposes.

 

	17.8	Any
                                            provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
                                            as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
                                            without invalidating the remaining provisions of this Agreement, and any such prohibition
                                            or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate
                                            or render unenforceable such provision in any other jurisdiction.

 

	17.9	The
                                            Borrower acknowledges that it has been advised that the Lender’s lawyers act exclusively
                                            in the interests of the Lender and that the Borrower’s interests will not be protected
                                            by the Lender’s lawyers. The Lender further acknowledges that it has been advised to
                                            and has had the opportunity to obtain independent legal advice regarding this Agreement and
                                            that the Borrower has either obtained such advice or has waived its right to obtain such
                                            advice.

 

[Signature
page to follow]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective authorized signatories
on the 20 day of August, 2021.

 

Borrower:

 

	FOGDOG
    ENERGY SOLUTIONS INC.	 
	 	 	 
	Per:	 	 
	Name:
    	Marlon
    Lee Him	 
	Title:
    	President	 

 

Lender:

 

	CURRENCYWORKS
    INC.	 
	 	 	 
	Per:	             
                   	 
	Name:
    	Jimmy
    Geiskopf	 
	Title:
    	Lead
    DirectorEXHIBIT
10.3

 

GENERAL
Security Agreement

 

 THIS
GENERAL SECURITY AGREEMENT is dated for reference August 20, 2021 and made,

 

BETWEEN:

 

fogdog
energy solutions inc.,
a corporation formed pursuant to the laws of the Province of Alberta;

 

 (the
“Debtor”)

 

AND:

 

Currencyworks,
inc., a corporation formed
pursuant to the laws of the state of Nevada;

 

(the
“Secured Party”) 

  

Article
1

Definitions

 

1.1 Definitions

 

 In
this Agreement, the following words and phrases will have the meanings set out below unless the parties or the context otherwise require(s).

   

		(a)	“Act”
                                            means the Personal Property Security Act of British Columbia and the regulations thereunder,
                                            as amended, restated or replaced by successor legislation of comparable effect.

  

		(b)	“Agreement”
                                            or “this Agreement” means this Agreement including all recitals and schedules
                                            hereto, as modified, amended, restated or replaced from time to time.

  

		(c)	“Collateral”
                                            means all of the Debtor’s present and after-acquired personal property and interests
                                            therein of every nature and kind and wherever situate, including all personal property and
                                            interests therein now or hereafter held by the Debtor in trust for any person(s) or by any
                                            person(s) in trust for the Debtor, including the Intellectual Property and including all
                                            proceeds derived therefrom that are present or after-acquired personal property or other
                                            assets or undertaking of any nature or kind, tangible or intangible, legal or equitable,
                                            wherever the same may be situate, (including proceeds derived directly or indirectly from
                                            any dealing with the personal property charged hereby (including proceeds), all rights to
                                            insurance payments and other payments as indemnity or compensation for loss thereof or damage
                                            thereto, and all payments made in total or partial discharge or redemption of securities,
                                            instruments, chattel paper or intangibles (including accounts) comprised therein).

 

    	 

    	2

    

  

		(d)	“Loan
                                            Agreement” means the agreement dated August 20, 2021, issued by the Secured Party
                                            to, and accepted by the Debtor in connection with the Loan, as amended, restated or replaced
                                            from time to time.

  

		(e)	“Debtor”
                                            means the party so described above and its successors and assigns, whether immediate or derivative.

  

		(f)	“Encumbrances”
                                            means any grant, mortgage, pledge, charge (whether fixed or floating), hypothec, assignment,
                                            security interest, lien, privilege title retention agreement, levy, execution attachment
                                            or other encumbrance (whether statutory or otherwise) whatsoever or any nature or kind and
                                            howsoever created.

  

		(g)	“Events
                                            of Default” means the events of default described in Article 7 of this Agreement
                                            and “Event of Default” means any one of them.

  

		(h)	“Intellectual
                                            Property” means intellectual or industrial property, including, without limitation,
                                            all patents, patent applications, inventions, copyright (whether registered or not), copyright
                                            applications, trademarks, (whether registered or not), trademark applications, trade names,
                                            moral and personality rights, industrial designs (whether registered or not), industrial
                                            design applications, trade secrets, know-how, confidential and other proprietary information,
                                            which is presently owned or hereafter acquired by the Debtor, or for which the Debtor has
                                            a license or waiver to use, and all income, royalties, damages, payments and claims now and
                                            hereafter due and or payable to the Debtor with respect thereto.

  

		(i)	“Loan”
                                            means the loan(s) and other credit arrangements to be made or offered by the Secured Party
                                            to or on behalf of the Debtor in the amount(s) as agreed to in writing between the Secured
                                            Party and the Debtor from time to time as contemplated by the Loan Agreement.

  

		(j)	“Obligants”
                                            means the Debtor and all (other) Persons who are from time to time liable to the Secured
                                            Party for the payment, observance or performance of the whole or any portion of the Secured
                                            Obligations, whether directly or indirectly, absolutely or contingently, jointly, severally
                                            or jointly and severally and includes all Persons who from time to time otherwise become
                                            liable for, or who agree to indemnify the Secured Party for any loss, costs or damages as
                                            a result of the failure of any other Persons to pay, observe or perform any of the Secured
                                            Obligations and “Obligant” means any of them.

  

		(k)	“Other
                                            Document” means any instrument or document other than this Agreement which evidences,
                                            secures or evidences or secures the payment, observance and performance of the Secured Obligations
                                            in whole or in part or has been provided at the request of the Secured Party as a condition
                                            to the availability of the Secured Obligations, whether now or at any time hereafter provided
                                            by or on behalf of any one or more of the Obligants, including without limitation the Loan
                                            Agreement.

 

    	 

    	3

    

  

		(l)	“Permitted
                                            Encumbrances” means as of any particular time in respect of any Collateral for
                                            which the Lender has been granted a security interest pursuant to this Agreement, any of
                                            the following:

                                            

 

		(i)	any
                                            Encumbrance in favour of the Lender; and

  

		(ii)	any
                                            Encumbrance consented to in writing by the Lender.

  

		(m)	“Persons”
                                            or “Person” means and includes any individual, sole proprietorship, corporation,
                                            partnership, bank, joint venture, trust, unincorporated association, association, institution,
                                            entity, party or government (whether national, federal, provincial, state, municipal, city,
                                            county or otherwise and including any instrumentality, division, agency, body or department
                                            thereof).

 

		(n)	“Secured
                                            Obligations” means the obligations of the Debtor to the Secured Party in connection
                                            with the Loan (including all future advances and re-advances) whether direct or indirect,
                                            absolute or contingent, joint, several or joint and several, matured or not, extended or
                                            renewed, wherever and however incurred, of whatever nature or kind and whether or not evidenced
                                            or secured by any Other Document, or provided for herein.

 

		(o)	“Secured
                                            Party” means the party so described above and its successors and assigns, whether
                                            immediate or derivative.

 

1.2
Applicability of Act

 

Words
used in this Agreement that are defined in the Act will have the respective meanings ascribed to them in the Act, unless otherwise defined
herein.

  

Article
2

SECURITY INTEREST

 

2.1
Creation of Security Interest

  

For
valuable consideration and as continuing security for the payment, observance and performance of each and all of the Secured Obligations
the Debtor:

 

		(a)	grants
                                            to the Secured Party a continuing security interest in the Collateral;

  

		(b)	grants,
                                            mortgages and charges the Collateral to the Secured Party by way of a fixed and specific
                                            charge; and

 

		(c)	absolutely
                                            assigns the Collateral (other than any Intellectual Property) to the Secured Party.

  

    	 

    	4

    

 

2.2 Exceptions

 

There
shall be excepted out of or excluded from the assignment(s), charge(s) and or security interest(s) created by this Agreement:

 

		(a)	Last
                                            10 Days of Lease: the last 10 days of the term created by any lease or agreement therefor
                                            (but the Debtor shall stand possessed of the reversion thereby remaining upon trust to assign
                                            and dispose thereof to any third party as the Secured Party shall direct);

  

		(b)	Consumer
                                            Goods: any consumer goods of the Debtor; and

  

		(c)	Agreements
                                            Requiring Consent: with respect to each agreement or other asset that requires the consent
                                            or approval of another party thereto for the creation of a security interest or charge therein,
                                            the security interests or charges created hereby will not become effective therein until
                                            all such consents or approvals have been obtained, or until such other assurances as may
                                            be acceptable to the Secured Party have been received, but until then the Debtor shall stand
                                            possessed of such asset in trust to dispose of as the Secured Party may direct.

  

2.3 Attachment

  

The
Debtor acknowledges that value has been given, the security interests hereby created attach upon the execution of this Agreement (or
in the case of any after acquired property, upon the date of acquisition thereof by or on behalf of the Debtor) and the Debtor has (or
in the case of after acquired property will have) rights in the Collateral.

  

2.4 Purchase
Money Security Interests

  

The
Debtor acknowledges that the security interest created hereunder secures advances made and future advances to be made by the Secured
Party to the Debtor for the purpose of enabling the Debtor to acquire rights in the Collateral.

  

Article
3

SECURED OBLIGATIONS

  

3.1 Secured
Obligations

  

This
Agreement, the Collateral and the security and other interests hereby created are in addition to and not in substitution for any other
security interest now or hereafter held by the Secured Party from the Debtor or from any other Person whomsoever and will be general
and continuing security for the payment, performance and observance of the Secured Obligations.

 

    	 

    	5

    

 

Article
4

DEBTOR’S REPRESENTATIONS AND WARRANTIES

 

4.1 General

 

The
Debtor makes the representations and warranties set out in this paragraph 4.1 to and for the benefit of the Secured Party.

 

		(a)	Incorporation:
                                            The Debtor is duly incorporated, properly organized and validly existing under the laws
                                            of the Province of British Columbia.

 

		(b)	Power
                                            and Authority: The Debtor has full power and lawful authority:

 

		(i)	to
                                            own real and personal property; and

 

		(ii)	to
                                            borrow and guarantee the repayment of money and grant security therefor (including this Agreement
                                            and the security interest hereby created).

 

		(c)	Proceedings
                                            and Enforceability: The Debtor represents and warrants that this Agreement is granted
                                            in accordance with resolutions of the directors (and of the shareholders as applicable) of
                                            the Debtor as the case may be and all other matters and things have been done and performed
                                            so as to authorize and make the execution and delivery of this Agreement and the performance
                                            of the Secured Obligations hereunder, a valid and legally binding obligation of the Debtor
                                            enforceable in accordance with its terms, subject only to bankruptcy, insolvency or other
                                            statutes or judicial decisions affecting the enforcement of creditors’ rights generally
                                            and to general principles of equity.

 

		(d)	No
                                            Actions or Material Adverse Changes: There is no action or proceeding pending or, to
                                            the knowledge of the Debtor, threatened against the Debtor before any court, administrative
                                            agency, tribunal, arbitrator, government or governmental agency, and there is no fact known
                                            to the Debtor and not disclosed to the Secured Party which might involve any material adverse
                                            change in the Collateral, real property, business, prospects or condition of the Debtor,
                                            or which question the validity of this Agreement or any other material agreement to which
                                            the Debtor is a party (or the Debtor’s ability to perform its obligations under this
                                            Agreement) and there are no outstanding judgments, writs of execution, work orders, injunctions,
                                            directives against the Debtor, the Collateral or its real property.

 

		(e)	Non-Conflict:
                                            Neither the execution nor the performance of this Agreement requires the approval of
                                            any regulatory agency having jurisdiction over the Debtor nor is this Agreement in contravention
                                            of or in conflict with the articles, by-laws or resolutions of the directors (or shareholders)
                                            of the Debtor, or of the provisions of any agreement to which the Debtor is a party or by
                                            which any of its property may be bound or of any statute, regulation, by-law, ordinance or
                                            other law, or of any judgment, decree, award, ruling or order to which the Debtor or any
                                            of its property may be subject.

 

    	 

    	6

    

  

		(f)	No
                                            Default: The Debtor is not in breach or default under any agreement to which it is a
                                            party which if not cured would have a material adverse effect upon the Debtor or the Collateral.

 

		(g)	No
                                            Liens: Except for Permitted Encumbrances, the Debtor has paid and discharged all claims
                                            and demands of all employees, contractors, subcontractors, material men, mechanics, carriers,
                                            warehousemen, landlords, and other like persons, and all governmental taxes, assessments,
                                            withholdings, remittances, charges, levies, and claims levied or imposed, which, if unpaid,
                                            become or might become an Encumbrance upon any or all of the properties, assets, earnings,
                                            or operations of the Debtor.

 

		(h)	Ownership
                                            and Collateral Free of Encumbrances: The Debtor is the owner of or has rights in the
                                            Collateral free and clear of all Encumbrances whatsoever save only Permitted Encumbrances.
                                            The Debtor has not, within the last 60 days, acquired rights in the Collateral, excluding
                                            the Intellectual Property, from a vendor, lessor or other person where its chief executive
                                            office or principal residence is, or within the last 60 days has been, located outside of
                                            British Columbia.

 

		(i)	No
                                            Other Corporate Names or Styles: The Debtor does not now carry on business under or use
                                            any name or style other than the names specified in this Agreement.

 

		(j)	Chief
                                            Executive Office: The Debtor has its chief executive office at the location described
                                            in Schedule “A”.

 

		(k)	Location
                                            of Collateral: The Collateral will be maintained (or in the case of mobile goods based)
                                            at the locations described in Schedule “A” or at any other location in British
                                            Columbia or any other jurisdictions disclosed in Schedule “A”.

 

		(l)	Insurance:
                                            The Collateral is insured in accordance with the terms hereof.

 

		(m)	Serial
                                            Numbered Goods: The type, make (or manufacturer), model and serial number of each motor
                                            vehicle, trailer, manufactured home, boat, outboard motor and aircraft included in the Collateral
                                            and which is not inventory is set out in Schedule “A”.

 

		(n)	Legal
                                            and Trade Names: Each name of the Debtor (including its name in any French or combined
                                            English-French form) is set out on the first page hereof, and the Debtor has not had, used,
                                            or carried on business under, and will not at any time have, use or carry on business under,
                                            any other name (including any French or combined English-French form) except as disclosed
                                            in Schedule “A” or upon giving 15 days’ prior written notice to the Secured
                                            Party.

 

		(o)	Rights
                                            in Collateral: No Person other than the Debtor has any rights in the Collateral, excluding
                                            the Intellectual Property, except as noted in Schedule “A”.

 

		(p)	Solvency:
                                            The assets of the Debtor exceeds its liabilities and the Debtor is able to meet its obligations
                                            as the same become due.

 

    	 

    	7

    

  

		(q)	Intellectual
                                            Property:

 

		(i)	Ownership:
                                            The Debtor is the owner of the Intellectual Property applications and registrations (if any)
                                            described in Schedule “A”; there are no outstanding claims of ownership by third
                                            parties in respect of such registrations and applications; and all are valid and in good
                                            standing.

 

		(ii)	Trade
                                            Marks: Only the Debtor is using the trade-marks described in Schedule “A”,
                                            or if there are any third-party users of the Debtor’s trade-marks, such third-party
                                            users are properly licensed to use such trade-marks.

 

		(iii)	Assignments:
                                            All assignments and Other Document affecting the Debtor’s Intellectual Property
                                            rights have been disclosed and provided to the Secured Party.

 

		(iv)	Claims:
                                            There are no outstanding or threatened claims or proceedings with respect to the Debtor’s
                                            Intellectual Property.

 

		(v)	Third
                                            Party Intellectual Property: All necessary assignments and license agreements have been
                                            properly executed by the Debtor for use of third-party Intellectual Property.

 

Article
5

DEBTOR’S COVENANTS

 

5.1 General
Covenants

 

The
Debtor covenants and agrees with the Secured Party as set forth in this Section 5.1 unless compliance with any such covenants is waived
by the Secured Party in writing, or unless non-compliance with any such covenants is otherwise consented to by the Secured Party by written
agreement with the Debtor.

 

		(a)	Compliance
                                            with Secured Obligations: The Debtor shall strictly comply with all of the Secured Obligations.

 

		(b)	Use
                                            of Advances: All advances, including future advances, advanced or extended by the Secured
                                            Party to or for the benefit of the Debtor shall be used in the ordinary course of the Debtor’s
                                            business for the purposes agreed to by the Secured Party and for no other purpose, and the
                                            Debtor shall supply the Secured Party with such evidence as it may reasonably request from
                                            time to time as to the application of such advance.

 

		(c)	Keep
                                            Collateral in Good Repair: The Debtor shall keep the Collateral, excluding the Intellectual
                                            Property, in good order, condition and repair.

 

		(d)	Conduct
                                            of Business: The Debtor shall carry on and conduct its affairs in a proper and efficient
                                            manner so as to protect and preserve the Collateral, as is reasonable in the ordinary course
                                            of business, and shall maintain places of business at the locations disclosed in Schedule
                                            “A”.

 

    	 

    	8

    

   

		(e)	Payment
                                            of Other Sums Due: The Debtor shall pay when due all amounts which are payable by it
                                            in connection with the Collateral, howsoever arising, including without limiting the generality
                                            of the foregoing, all rents, charges, taxes, rates, levies, assessments, fees and duties
                                            of every nature which may be levied, assessed or imposed against or in respect of the Collateral
                                            or the Debtor and shall provide the Secured Party with evidence of such payment upon request.

 

		(f)	Notice
                                            of Encumbrances and Proceedings: The Debtor shall promptly notify the Secured Party of
                                            any Encumbrance made or asserted against any of the Collateral, and of any suit, action or
                                            proceeding affecting any of the Collateral or which could affect the Debtor. The Debtor shall,
                                            at its own expense, defend the Collateral against any and all Encumbrances (other than any
                                            Permitted Encumbrances) and against any and all such suits, actions or proceedings.

 

		(g)	No
                                            Accessions or Fixtures: The Debtor shall prevent the Collateral from becoming an accession
                                            to any property other than other items of the Collateral or from becoming a Fixture unless
                                            the security interests hereby created rank prior to the interests of all other persons in
                                            the applicable property.

 

		(h)	Marking
                                            the Collateral: The Debtor shall, at the request of the Secured Party, mark, or otherwise
                                            take appropriate steps to identify the Collateral, excluding the Intellectual Property, to
                                            indicate clearly that it is subject to the security interests hereby created.

 

		(i)	Notice
                                            of Loss of Collateral: The Debtor shall give immediate written notice to the Secured
                                            Party of all material loss or damage to or loss or possession of the Collateral otherwise
                                            than by disposition in accordance with the terms hereof.

 

		(j)	Inspection
                                            of Records and Collateral: The Debtor shall at all times:

 

		(i)	keep
                                            accurate and complete records of the Collateral as well as proper books of account for its
                                            business all in accordance with generally accepted accounting principles, consistently applied,
                                            as is reasonable in the ordinary course of business; and

 

		(ii)	permit
                                            the Secured Party or its authorized agents to have access to all premises occupied by the
                                            Debtor or any place where the Collateral may be found to inspect the Collateral and to examine
                                            the books of accounts, financial records and reports of the Debtor and to have temporary
                                            custody of, make copies of and take extracts from such books, records and reports.

 

		(k)	Access
                                            to Computer Information: In the event that the use of a computer system is required to
                                            access any information and data which the Secured Party is entitled to access and examine
                                            hereunder, the Debtor shall allow the Secured Party the use of its computer system for such
                                            purpose and shall provide assistance in that regard. If for any reason such information and
                                            data cannot be accessed and retrieved at the Debtor premises, the Secured Party may remove
                                            the medium in which such information or data is stored from the Debtor’s premises to
                                            any other place which has a computer system that will give the Secured Party the opportunity
                                            to retrieve, record or copy such information and data. The Secured Party is hereby authorized
                                            to reproduce and retain a copy of any such information and data in any format whatsoever.

 

    	 

    	9

    

  

		(l)	Delivery
                                            of Documents: The Debtor shall promptly deliver to the Secured Party upon request:

 

		(i)	all
                                            policies and certificates of insurance relating to the Collateral;

 

		(ii)	any
                                            documents of title and instruments representing or relating to the Collateral;

 

		(iii)	a
                                            list of the Collateral, excluding the Intellectual Property, specifying make, model, name
                                            of manufacturer and serial number, where applicable, for each item of the Collateral; and

 

		(iv)	such
                                            information concerning the Collateral, the Debtor and the Debtor’s operations and affairs
                                            as the Secured Party may request.

 

		(m)	Risk
                                            and Insurance: The Debtor shall bear the sole risk of any loss, damage, destruction or
                                            confiscation of or to the Collateral during the Debtor’s possession hereunder or otherwise
                                            after default hereunder. The Debtor shall insure the Collateral with insurers acceptable
                                            to the Secured Party against loss or damage by fire, theft or other insurable perils customarily
                                            insured against by persons having an interest in such Collateral for the full insurable value
                                            thereof with the Secured Party as a named insured and with loss payable to the Secured Party
                                            as its interest may appear. All such policies of insurance will provide that the insurance
                                            coverage provided thereunder shall not be changed or cancelled except on 30 days’ prior
                                            written notice to the Secured Party. If the Debtor fails to so insure, the Secured Party
                                            may, but shall not be required to, insure the Collateral and the premiums for such insurance
                                            will be added to the Secured Obligations and be secured hereby.

 

		(n)	Proceeds
                                            in Trust: The Debtor shall hold all proceeds in trust, separate and apart from other
                                            money, instruments or property, for the benefit of the Secured Party until all amounts owing
                                            by the Debtor to the Secured Party have been paid in full.

 

		(o)	Reliance
                                            and Survival: All representations and warranties of the Debtor made herein or in any
                                            certificate or other document delivered by or on behalf of the Debtor for the benefit of
                                            the Secured Party are material, will survive the execution and delivery of this Agreement
                                            and will continue in full force and effect without time limit. The Secured Party is deemed
                                            to have relied upon each such representation and warranty notwithstanding any investigation
                                            made by or on behalf of the Secured Party at any time.

 

		(p)	Compliance
                                            with Agreements and Laws: The Debtor shall not use the Collateral in violation of this
                                            Agreement or any other agreement relating to the Collateral or any policy insuring the Collateral
                                            or any applicable statute, law, by-law, rule, regulation, court order or ordinance.

 

    	 

    	10

    

  

		(q)	Disposition
                                            of Collateral: Except as hereinafter provided, the Debtor shall not, without the prior
                                            written consent of the Secured Party:

 

		(i)	assign,
                                            sell, lease, exchange, or otherwise dispose of the Collateral or any interest therein; or

 

		(ii)	release,
                                            surrender or abandon possession of any of the Collateral; or

 

		(iii)	move
                                            or transfer the Collateral from its present location,

 

provided
that so long as no Event of Default remains outstanding, the Debtor may sell or lease inventory and license the Intellectual Property
in the ordinary course of business and for the purpose of carrying on the same, and subject to the provisions of Section 5.1(b) hereof
use monies available to the Debtor.

 

For
any item of the Collateral which has become worn out, damaged or otherwise unsuitable for its purpose, the Debtor may substitute for
such item property of equal value free from all Encumbrances except Permitted Encumbrances. All substituted property shall become part
of the Collateral as soon as the Debtor acquires any interest in it. The Debtor shall give immediate written notice to the Secured Party
of the occurrence of any event referred to in this paragraph.

 

		(r)	Encumbrances:
                                            The Debtor shall not create, assume or suffer to exist any Encumbrance in, of or on any
                                            of the Collateral except for Permitted Encumbrances.

 

		(s)	Change
                                            of Name: The Debtor shall not change its name without giving to the Secured Party 20
                                            days’ prior written notice of the change.

 

		(t)	Serial
                                            Numbered Goods: Upon the Debtor’s acquisition of rights in additional serial numbered
                                            goods which are not inventory, or upon repossession by or return to the Debtor of any such
                                            goods, the Debtor shall immediately give the Secured Party written notice of full particulars
                                            thereof.

 

		(u)	Liability
                                            for Deficiency: If the aggregate sum realized as a result of any realization pursuant
                                            hereto is not sufficient to pay the whole amount of the Secured Obligations, the Debtor shall
                                            forthwith pay to the Secured Party the full amount of the deficiency plus interest thereon
                                            at the rate or rates applicable to the Secured Obligations.

 

		(v)	Notification:
                                            The Debtor shall notify the Secured Party promptly of:

 

		(i)	Scheduled
                                            Information: any change in the information contained herein or in the Schedules hereto
                                            relating to the Debtor, the Debtor’s name, the Debtor’s business or the Collateral;

 

		(ii)	Acquisitions:
                                            the details of any significant acquisition of Collateral;

 

		(iii)	Litigation:
                                            the details of any claims or litigation affecting the Debtor or the Collateral;

 

    	 

    	11

    

  

		(iv)	Account
                                            Debtors: any default by any Person indebted or obligated to the Debtor in payment or
                                            other performance of obligations of that Person comprised in the Collateral; and

 

		(v)	Return
                                            of Collateral: the return to, or repossession by, the Debtor of Collateral.

 

		(w)	Payments:
                                            The Debtor shall forthwith pay:

 

		(i)	Employee
                                            obligations: all obligations to its employees and all obligations to others which relate
                                            to its employees when due, including, without limitation, all taxes, duties, levies, government
                                            fees, claims and dues related to its employees;

 

		(ii)	Taxes:
                                            all taxes, assessments, rates, duties, levies, government fees, claims and dues lawfully
                                            levied, assessed or imposed upon it or the Collateral when due, unless the Debtor shall in
                                            good faith contests its obligations so to pay and furnishes such security as the Secured
                                            Party may require; and

 

		(iii)	Prior
                                            Encumbrances: all Encumbrances which rank or could in any event rank in priority to or
                                            pari passu with the security constituted by this Agreement.

 

		(x)	Deliveries:
                                            The Debtor shall deliver to the Secured Party from time to time promptly upon written
                                            request:

 

		(i)	Documents
                                            of Title, Instruments, Securities and Chattel Paper: any documents of title, instruments,
                                            securities and chattel paper comprised in or relating to the Collateral;

 

		(ii)	Books
                                            of Account and Records: all books of account and all records, ledgers, reports, correspondence,
                                            schedules, documents, statements, lists and other writings relating to the Collateral for
                                            the purpose of inspecting, auditing or copying the same;

 

		(iii)	Financial
                                            Statements: all financial statements prepared by or for the Debtor regarding the Debtor’s
                                            business on an annual basis;

 

		(iv)	Insurance
                                            Policies: all policies and certificates of insurance relating to the Collateral;

 

		(v)	Serial
                                            Number: a list of the Collateral, specifying make, model, name of manufacturer and serial
                                            number, where applicable, for each item of the Collateral; and

 

		(vi)	Other
                                            Information: such information concerning the Collateral, the Debtor and Debtor’s
                                            business and affairs as the Secured Party may reasonably require.

 

    	 

    	12

    

  

		(y)	Intellectual
                                            Property: The Debtor shall:

 

		(i)	Registration
                                            of present Intellectual Property: where commercially reasonable, apply to file applications
                                            and complete registrations on any present Intellectual Property which it owns, and which
                                            is not currently protected by an application or registration, and which Debtor intends to
                                            maintain in the ordinary course of business, including any and all improvements to Intellectual
                                            Property;

 

		(ii)	Registration
                                            of after acquired Intellectual Property: apply to file applications and complete registrations
                                            of all Intellectual Property hereafter acquired by it and which Debtor hereafter intends
                                            to maintain in the ordinary course of business in all jurisdictions where commercially reasonable;

 

		(iii)	Maintain
                                            Records: keep up-to-date records regarding its Intellectual Property;

 

		(iv)	Confidentiality
                                            Agreements: enter into confidentiality agreements with employees and other third parties
                                            who may invent, create, discover, author and/or reduce to practice Intellectual Property
                                            for the Debtor or who may have access to confidential information of the Debtor;

 

		(v)	License/Assignment
                                            Agreements: ensure that all Intellectual Property hereafter acquired by it from third
                                            parties is properly acquired by way of a written assignment, and ensure that all its rights
                                            to use Intellectual Property are properly acquired by way of a written license agreement;

 

		(vi)	List
                                            of unregistered trademarks etc.: provide, upon written request by the Secured Party,
                                            a list of all of its registered and unregistered trade-marks, patent applications, issued
                                            patents, copyright, industrial designs and other Intellectual Property; and

 

		(vii)	Mark
                                            Products: use commercially reasonable efforts to mark all of its products and advertising
                                            appropriately to maintain the validity of all Intellectual Property it presently owns or
                                            hereafter acquires, and shall also require its licensees to use commercially reasonable efforts
                                            to mark all of their products and advertising appropriately to maintain the validity of the
                                            licensed Intellectual Property.

 

Article
6

PERFORMANCE OF OBLIGATIONS

 

6.1 Perform
Obligations

 

If
the Debtor fails to perform its obligations hereunder, the Secured Party may, but will not be obligated to, perform any or all of such
obligations without prejudice to any other rights and remedies of the Secured Party hereunder, and any payments made and any costs, charges,
expenses and legal fees and disbursements (on a solicitor and his own client basis) incurred in connection therewith will be payable
by the Debtor to the Secured Party forthwith with interest until paid at the highest rate borne by any of the Secured Obligations and
such amounts will be a charge upon and security interest in the Collateral in favour of the Secured Party prior to all claims subsequent
to this Agreement.

 

    	 

    	13

    

 

Article
7

DEFAULT

 

7.1 Default

 

Notwithstanding
that any one or more of the Secured Obligations may be payable on demand and without prejudice thereto, the Debtor shall be in default
under this Agreement upon the occurrence of any of the following events:

 

		(a)	if
                                            there is a default or a breach by the Debtor (or by any other Person bound hereby) in respect
                                            of the payment, observance or performance when due of any covenant, agreement, term, condition,
                                            stipulation or provision contained herein or in any Other Document; or

 

		(b)	if
                                            any representation or warranty contained herein, in any Other Document or in any certificate,
                                            declaration, application or other instrument delivered pursuant hereto, is found at any time
                                            to be incorrect in any material respect; or

 

		(c)	if
                                            at any time there is an event of default or a breach by any Obligant under any Other Document;
                                            or

 

		(d)	if
                                            an Obligant becomes bankrupt or insolvent or makes or demonstrates an intention to make an
                                            assignment for the benefit of its creditors or makes a proposal or takes advantage of any
                                            provision of the Bankruptcy and Insolvency Act of Canada or any other legislation
                                            for the benefit of the insolvent debtors; or

 

		(e)	if
                                            any proceedings with respect to an Obligant are commenced under the compromise or arrangement
                                            provisions of any applicable legislation, or an Obligant enters into an arrangement or compromise
                                            with any or all of its creditors pursuant to such provisions or otherwise; or

 

		(f)	if
                                            a receiver or receiver-manager is appointed by a Court or any other Person in respect of
                                            an Obligant, or any part of the property, assets or undertakings charged by this Agreement
                                            or in any Other Document; or

 

		(g)	if
                                            the Debtor or any other Person who becomes an owner of an interest in any of the Collateral
                                            while this Agreement is in effect, without the prior consent in writing of the Secured Party,
                                            grants or proposes to grant an Encumbrance upon or in respect of that Collateral other than
                                            pursuant to this Agreement or a Permitted Encumbrance; or

 

		(h)	if
                                            any execution, sequestration, extent or any other process of any other kind is levied or
                                            enforced upon or against the Collateral or any part thereof by any Person other than the
                                            Secured Party and remains unsatisfied for a period of 10 days; or

 

		(i)	if
                                            the holder (other than the Secured Party) of any Encumbrance against any of the Collateral
                                            does anything to enforce or realize on such Encumbrance; or

 

    	 

    	14

    

   

		(j)	if
                                            in the opinion of the Secured Party a material portion of the Collateral is lost, damaged
                                            or destroyed; or

 

		(k)	if
                                            an Obligant ceases, or threatens to cease, to carry on his, her or its business as the same
                                            is conducted by that Obligant from time to time; or

 

		(l)	if
                                            any of the moneys secured under this Agreement as part of the Secured Obligations are used
                                            for any purpose other than as declared to and agreed upon by the Secured Party; or

 

		(m)	if
                                            an Obligant is in default under any other loan made by the Secured Party in respect of which
                                            that Obligant is a borrower, covenantor, guarantor or indemnitor; or

 

		(n)	if
                                            an Obligant is a corporation and:

 

		(i)	it
                                            authorizes the purchase or charging of a majority of its shares without the prior written
                                            consent of the Secured Party; or

 

		(ii)	one
                                            of its members commences an action against it which action relates to the Secured Obligations,
                                            or gives a notice of dissent in accordance with the provisions of the Business Corporations
                                            Act of British Columbia, or amendments thereto or a similar notice by a shareholder under
                                            other applicable legislation; or

 

		(iii)	it
                                            carries on any business that is restricted from carrying on by its constating documents;
                                            or

 

		(iv)	an
                                            order is made, a resolution is passed or a motion is filed for its liquidation, dissolution
                                            or winding-up; or

 

		(v)	there
                                            is any change in its beneficial ownership of its shares from the ownership of same which
                                            exists as of the date of the execution of this Agreement by the Debtor; or

 

		(o)	if
                                            an Obligant is a general partnership and:

 

		(i)	it
                                            carries on business that it is restricted from carrying on by its partnership agreement;
                                            or

 

		(ii)	there
                                            is any change in the Persons comprising the partnership; or

 

		(p)	if
                                            an Obligant is a limited partnership and:

 

		(i)	it
                                            authorizes the purchase or redemption of its units without the Secured Party’s prior
                                            written consent; or

 

		(ii)	it
                                            carries on any business that it is restricted from carrying on by its limited partnership
                                            agreement; or

 

    	 

    	15

    

   

		(iii)	there
                                            is any change in the beneficial ownership of its units from the ownership of same that exists
                                            as of the date of the execution of this Agreement by the Debtor; or

 

		(q)	if
                                            an Obligant who is an individual dies or is declared incompetent by a court of competent
                                            jurisdiction; or

 

		(r)	if
                                            in the opinion of the Secured Party, any material portion of the Collateral becomes the subject
                                            of expropriation proceedings; or

 

		(s)	if
                                            in the opinion of the Secured Party there is or has been a material adverse change in the
                                            financial condition of an Obligant or in the value of the any property charged in favour
                                            of the Secured Party pursuant to any one or more of the Other Documents; or

 

		(t)	if
                                            the Secured Party in good faith believes and has commercially reasonable grounds to believe
                                            that:

 

		(i)	the
                                            prospect for payment of any of the Secured Party or the observance and performance of all
                                            or any part of the Debtor’s obligations in connection therewith is impaired; or

 

		(ii)	any
                                            of the property charged in the Secured Party’s favour pursuant to any one or more of
                                            the Other Documents is or is about to be placed in jeopardy.

 

Article
8

RIGHTS, REMEDIES AND POWERS

 

8.1 Before
and After Default

 

At
any time and from time to time without notice, whether before or after an Event of Default, the Secured Party will have the right and
power (but will not be obligated):

 

		(a)	Inspection
                                            and Records: to inspect the Collateral whenever the Secured Party considers it appropriate
                                            to do so, and to inspect, review, audit and copy any or all information relating thereto
                                            or to the Collateral or to any other transactions between the parties hereto wherever and
                                            however such information is stored, and for such purposes may at any time with or without
                                            notice enter into and upon any lands, buildings and premises where the Collateral or any
                                            such information is or may be;

 

		(b)	Set-Off:
                                            to set off the Secured Obligations against any or all debts and liabilities, direct and
                                            indirect, absolute and contingent, in any currency, now existing or hereafter incurred by
                                            the Secured Party in any capacity in favour of the Debtor;

 

		(c)	Perfection
                                            of Charges: to file such financing statements, financing change statements and Other
                                            Documents and do such other acts, matters and things (including completing and adding schedules
                                            hereto identifying the Collateral or any permitted liens affecting the Collateral or identifying
                                            the locations at which the Debtor’s business is carried on and where the Collateral
                                            and records relating thereto are situate) as the Secured Party may consider appropriate to
                                            perfect, preserve, continue and realize upon the security interest created hereby, all without
                                            the consent of or notice to the Debtor; and

 

    	 

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		(d)	Extensions
                                            and Other Indulgences: to grant extensions of time and other indulgences, take and give
                                            up security, accept compositions, compound, compromise, settle, grant releases and discharges,
                                            refrain from perfecting or maintaining perfection of Encumbrances, and otherwise deal with
                                            the Debtor and other obligors of the Debtor, sureties and others and with the Collateral
                                            and Encumbrances as the Secured Party may consider appropriate, all without prejudice to
                                            the liability of the Debtor or the Secured Party’s rights to hold and realize on the
                                            security interest created hereby.

 

8.2 After
Default

 

Upon
the occurrence of an Event of Default and at any time thereafter, the Secured Party may exercise any or all of the rights, remedies and
powers of the Secured Party under the Act, or otherwise existing, whether under this Agreement or any other agreement or at law or in
equity, all of which other rights, remedies and powers are hereby incorporated as if expressly set out herein. In addition to the foregoing,
the Secured Party will have the right and power (but will not be obligated):

 

		(a)	Withhold
                                            Advances: to withhold any or all advances, including future advances;

 

		(b)	Accelerate
                                            Secured Obligations: to declare any or all of the Secured Obligations to be immediately
                                            due and payable;

 

		(c)	Enter
                                            and Take Possession: to take possession of the Collateral and to collect and get in the
                                            same, and for such purposes may at any time, with or without notice or legal process and
                                            to the exclusion of all others including the Debtor and its servants, agents and employees,
                                            enter into and upon, use and occupy any lands, buildings and premises wheresoever and whatsoever,
                                            where the Collateral is or may be located and do any act and take any proceedings in the
                                            name of the Debtor or otherwise, as the Secured Party may consider appropriate, and the Debtor
                                            hereby waives and releases the Secured Party and any Receiver from any and all claims in
                                            connection therewith or arising therefrom;

 

		(d)	Receive
                                            Payments: to receive income, rents, profits, increases, payments, damages and proceeds
                                            from and in respect of the Collateral and to demand, collect (by legal proceedings or otherwise),
                                            endorse, sue on, enforce, realize, recover, receive and get in the same, and for such purposes
                                            may give valid and binding receipts and discharges therefor and in respect thereof and may
                                            do any act and take any proceedings in the name of the Debtor or otherwise as the Secured
                                            Party may consider appropriate;

 

		(e)	Control
                                            of Proceeds: to take control of any or all proceeds where the Collateral (including proceeds)
                                            is dealt with or otherwise gives rise to proceeds;

 

		(f)	Use
                                            and Protection of the Collateral: to use, hold, insure, preserve, repair, process, maintain,
                                            protect and prepare the Collateral for disposition and to renew or replace such of the Collateral
                                            as may be worn out, lost or otherwise unserviceable, in the manner and to the extent that
                                            the Secured Party may consider appropriate;

 

    	 

    	17

    

   

		(g)	Disposition
                                            of the Collateral: to sell, lease, rent or otherwise dispose of or concur in the sale,
                                            lease, rental or other disposition of the Collateral, whether in or out of the ordinary course
                                            of business, by private or public sale, lease or other disposition, with or without notice,
                                            advertising or any other formality, either for cash or in any manner involving deferred payment
                                            in whole or in part, at such time or times and upon such terms and conditions as the Secured
                                            Party may consider appropriate and for such prices or consideration as can reasonably be
                                            obtained at such time therefor, and to carry any such disposition into effect by conveying
                                            title and executing agreements and assurances in the name of the Debtor or otherwise as the
                                            Secured Party may consider appropriate, and to make any stipulations as to title or conveyance
                                            or commencement of title or otherwise as the Secured Party may consider appropriate, and
                                            to buy in or rescind or vary any contract for the disposition of the Collateral and to re-dispose
                                            of the same without being answerable for any loss occasioned thereby;

 

		(h)	Exercise
                                            and Enforcement of Debtor’s Rights: to exercise as to the Collateral any or all
                                            of the rights, remedies and powers of the Debtor, and to enforce the observance and performance
                                            by others of all other obligations and liabilities under or in respect of the Collateral;

 

		(i)	Payment
                                            of Liabilities: to pay any or all debts and liabilities in connection with the Collateral;

 

		(j)	Arrangements:
                                            to enter into any compromise, extension, reorganization, deposit, merger or consolidation
                                            agreement or similar arrangement in any way relating to or affecting the Collateral, and
                                            in connection therewith may deposit, exchange or surrender control of the Collateral and
                                            accept other property upon such terms as the Secured Party may consider appropriate, and
                                            either with or without payment or exchange of Money for equality of exchange or otherwise;

 

		(k)	Institution
                                            and Defence of Actions: to institute and prosecute all suits, proceedings and actions
                                            which the Secured Party may consider necessary or advisable for the proper protection or
                                            enforcement of the Collateral, and to defend all suits, proceedings and actions against the
                                            Debtor, and to appear in and conduct the prosecution and defence of any suit, proceeding
                                            or action then pending or thereafter instituted, and to appeal any suit, proceeding or action;

 

		(l)	Foreclosure:
                                            to exercise its rights under the Act, as amended from time to time, to give notice of
                                            a proposal to take, and to subsequently take, the Collateral in satisfaction of the Secured
                                            Obligations;

 

		(m)	Other
                                            Means of Enforcement: to otherwise enforce this Agreement and realize upon the security
                                            interest created hereby by any method permitted by law, including by bringing action to recover
                                            a judgment or by taking other available proceedings against the Debtor, and to do all such
                                            other acts and things as it may consider incidental or conducive to any of its rights, remedies
                                            and powers; and

 

    	 

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		(n)	Appointment
                                            of Receiver: to appoint by instrument in writing with or without bond, or to take proceedings
                                            in any court of competent jurisdiction for the appointment of, a receiver or receiver manager
                                            of the Debtor or the Collateral, including all or any part or parts of the undertaking and
                                            business or businesses of the Debtor, and to remove any receiver or receiver manager appointed
                                            by the Secured Party and to appoint another in its stead, (and any person so appointed, whether
                                            by the Secured Party or a court, will be referred to herein as the “Receiver”).

 

8.3 Receiver

 

Any
Receiver will be entitled to exercise any and all rights, remedies and powers of the Secured Party under the Act as amended from time
to time or any other applicable legislation or otherwise existing, whether under this Agreement or any other agreement or at law or in
equity, all of which other rights, remedies and powers are hereby incorporated as if expressly set out herein, and in addition will have
the right and power (but will not be obligated):

 

		(a)	Carry
                                            on Business: to carry on or concur in carrying on all or any part of the business or
                                            businesses of the Debtor;

 

		(b)	Employ
                                            Agents: to employ and discharge such agents, managers, clerks, lawyers, accountants,
                                            servants, workmen and others upon such terms and with such salaries, wages or remuneration
                                            as the Receiver may consider appropriate;

 

		(c)	Raise
                                            Funds and Grant Security: to borrow or otherwise raise on the security of the Collateral
                                            or otherwise any sum or sums of money required for the seizure, retaking, repossession, holding,
                                            insuring, repairing, processing, maintaining, protecting, preparing for disposition and disposing
                                            of the Collateral, or for the carrying on of all or any part of the business or businesses
                                            of the Debtor, or to complete any construction or repair of lands owned by the Debtor or
                                            any part thereof, or for any other enforcement of this Agreement, in such sum or sums as
                                            will in the opinion of the Receiver be sufficient for obtaining the amounts from time to
                                            time required, and in so doing may issue certificates which may be payable either to order
                                            or to bearer and may be payable at such time or times as the Receiver may consider appropriate
                                            and may bear interest as stated therein, and the amounts from time to time payable by virtue
                                            of such certificates will form an Encumbrance in and upon the Collateral in priority to the
                                            security interest created hereby; and

 

		(d)	Other
                                            Rights: to exercise any or all rights, remedies and powers conferred or delegated by
                                            the Secured Party.

 

8.4 Rights
of Transferees

 

No
purchaser, lessee or other transferee pursuant to any disposition made or purporting to be made pursuant to this Agreement will be bound
or concerned to see or enquire whether an Event of Default has occurred or continues, or whether any notice required hereunder has been
given, or as to the necessity or expediency of the stipulations subject to which such disposition is to be made, or otherwise as to the
propriety of such disposition or the regularity of its proceedings, or be affected by notice that no Event of Default has occurred or
continues or that any required notice has not been given or that the disposition is otherwise unnecessary, improper or irregular, and,
notwithstanding any impropriety or irregularity whatsoever or notice thereof, the disposition as regards such purchaser, lessee or other
transferee will be deemed to be within the powers conferred by this Agreement and will be valid accordingly, and the remedy (if any)
of the Debtor in respect of any impropriety or irregularity whatsoever in any such disposition will be in damages only.

 

    	 

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8.5 Limitations

 

The
following will apply notwithstanding anything herein contained to the contrary.

 

		(a)	Failure
                                            to Exercise: Neither the Secured Party nor any Receiver will be liable or accountable
                                            for any failure to exercise its rights, remedies or powers.

 

		(b)	Receiver
                                            is Debtor’s Agent: The Receiver will be deemed the agent of the Debtor and not
                                            the agent of the Secured Party, and the Debtor shall be solely responsible for the acts and
                                            defaults of the Receiver and for its remuneration, costs, charges and expenses, and the Secured
                                            Party will not in any way be responsible for any misconduct, negligence or nonfeasance on
                                            the part of the Receiver or its servants, agents or employees.

 

		(c)	Receiver’s
                                            Liability: The Receiver will not be liable for any loss unless it is caused by the Receiver’s
                                            own negligence or willful default.

 

		(d)	Accountability
                                            for Payments Received: Each of the Secured Party and any Receiver will only be accountable
                                            for and charged with any monies they actually receive.

 

		(e)	Not
                                            Liable Under the Collateral: This Agreement and the security interest created hereby
                                            will not impair or diminish any obligation or liability of the Debtor or any other party
                                            or parties under or in respect of the Collateral, and, except as may be provided in the Act,
                                            no obligation or liability under or in respect of the Collateral will be imposed upon or
                                            incurred by the Secured Party by virtue of this Agreement or the security interest created
                                            hereby.

 

		(f)	Not
                                            a Mortgagee in Possession: Neither the provisions of this Agreement nor anything done
                                            under or pursuant to the rights, remedies and powers conferred upon the Secured Party and
                                            the Receiver, whether hereunder or otherwise, will render the Secured Party a mortgagee in
                                            possession.

 

		(g)	No
                                            Duty to Take Steps: Neither the Secured Party nor any Receiver will be bound to collect,
                                            dispose of, realize, enforce or sell any securities, instruments, chattel paper or intangibles
                                            (including any accounts) comprised in the Collateral or to allow any such Collateral to be
                                            sold or disposed of, nor will it be responsible for any loss occasioned by any such sale
                                            or other dealing or for any failure to sell or so act, nor will it be responsible for any
                                            failure to take necessary steps to preserve rights against others in respect of such Collateral
                                            nor bound to present, protest or give any notice in connection with any such Collateral nor
                                            to perform any act to prevent prescription thereof nor to protect any such Collateral from
                                            depreciating in value or becoming worthless, nor will it be responsible for any loss occasioned
                                            by the failure to exercise any rights in respect of such Collateral within the time limited
                                            for the exercise thereof.

 

    	 

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		(h)	No
                                            Duty to Keep Property Separate: Neither the Secured Party nor the Receiver will be obligated
                                            to keep the Collateral separate or identifiable.

 

8.6  Liability
of Secured Party 

 

		(a)	No
                                            Responsibility for Debt: The Secured Party will not be responsible or liable for any
                                            debts contracted by it, for damages to persons or property or for salaries or non-fulfilment
                                            of contracts during any period when the Secured Party will manage the Collateral upon entry
                                            of the business of the Debtor, as herein provided, nor will the Secured Party be liable to
                                            account as mortgagee in possession or for anything except actual receipts or be liable for
                                            any loss or realization or for any default or omission for which a mortgagee in possession
                                            may be liable.

 

		(b)	No
                                            Requirement to Perform: The Secured Party will not be bound to do, observe or perform
                                            or to see to the observance or performance by the Debtor of any obligations or covenants
                                            imposed upon the Debtor nor will the Secured Party, in the case of securities, instruments
                                            or chattel paper, be obliged to reserve rights against other persons, nor will the Secured
                                            Party be obliged to keep any of the Collateral identifiable.

 

		(c)	Waiver:
                                            The Debtor hereby waives any applicable provision of law permitted to be waived by it
                                            which imposes higher or greater obligations upon the Secured Party other than provided in
                                            this Agreement.

 

8.7 Application
of Proceeds

 

Any
proceeds of any disposition of the Collateral, any net profits of carrying on all or any part of the business or businesses of the Debtor,
and any proceeds of any other realization will, at the option of the Secured Party, be held in whole or in part unappropriated in a separate
account (as security for any or all of the Secured Obligations including such part or parts thereof as may be contingent or not yet due)
or be applied in whole or in part (subject to applicable legislation and the claims of any creditors ranking in priority to the security
interest created hereby):

 

		(a)	Receiver’s
                                            Costs: firstly, to the payment of all costs, charges and expenses of and incidental to
                                            the appointment of any Receiver and the exercise by the Receiver of any or all of its rights,
                                            remedies and powers with respect to the Debtor, the Collateral and this Agreement, including
                                            the remuneration of the Receiver and all amounts properly payable by the Receiver together
                                            with all legal costs in respect thereof on a solicitor and his own client basis;

 

		(b)	Costs
                                            of Repossession and Disposition: secondly, to the payment of all costs, charges and expenses
                                            incurred or paid in connection with seizing, repossessing, collecting, holding, repairing,
                                            processing, preparing for disposition and disposing of the Collateral and any other expenses
                                            of enforcing this Agreement incurred by the Secured Party (including legal fees on a solicitor
                                            and his own client basis and all taxes, costs and charges in respect of the Collateral);

 

    	 

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		(c)	Secured
                                            Obligations: thirdly, to the payment of the Secured Obligations; and

 

		(d)	Surplus:
                                            fourthly, any surplus will, subject to the rights of any other creditors of the Debtor,
                                            be paid to the Debtor.

 

8.8 Appointment
of Attorney

 

To
enable the Secured Party and any Receiver to exercise the rights, remedies and powers conferred upon them, whether by this Agreement
or otherwise, upon the occurrence and during the continuance of an Event of Default the Debtor hereby appoints each of the Secured Party
and the Receiver, to be the lawful attorney of the Debtor to do any act or thing and to execute any assurance or instrument (in the name
of the Debtor or otherwise) in the exercise of the powers conferred upon them (including carrying out any disposition of the Collateral
and for such purpose to affix the Debtor common seal to any deeds, transfers, conveyances, assignments, assurances and things which the
Debtor ought to execute to complete any disposition of the Collateral or alternatively to execute the same under its own seal by conveying
in the name of and on behalf of Debtor and under its own seal, and any deed or other thing executed by the Secured Party or the Receiver
under its own seal pursuant hereto will have the same effect as if it were under the common seal of the Debtor) or which the Debtor ought
to do or execute hereunder and to exercise any or all of the rights, remedies and powers of the Debtor in carrying out or attempting
to carry out any or all of the rights, remedies and powers conferred upon them. This power of attorney will be irrevocable and coupled
with an interest and will survive the death, disability, insolvency or other legal incapacity of the Debtor.

 

8.9 Rights
Cumulative

 

All
rights, remedies and powers of the Secured Party and any Receiver set out in this Agreement are cumulative. No right, remedy or power
set out herein is intended to be exclusive but each will be in addition to every other right, remedy and power contained herein or in
any other existing or future agreement or now or hereafter existing by statute, at law or in equity.

 

8.10 Order
of Realization

 

The
Secured Party may realize upon the security interest created hereby and any other Encumbrances it may now or hereafter have in such order
as it may consider appropriate, and any such realization by any means upon any such Encumbrance will not bar realization upon any other
Encumbrance(s).

 

8.11  Waiver

 

The
Secured Party in its absolute discretion may at any time and from time to time by written notice waive any breach by the Debtor of any
of its covenants or agreements herein. No course of dealing between the Debtor and the Secured Party will operate as a waiver of any
of the Secured Party’s rights, remedies or powers. No failure or delay on the part of the Secured Party to exercise any right,
remedy or power given herein or by any other existing or future agreement or now or hereafter existing by statute, at law or in equity
will operate as a waiver thereof, nor will any single or partial exercise of any such right, remedy or power preclude any other exercise
thereof or the exercise of any other such right, remedy or power, nor will any waiver by the Secured Party be deemed to be a waiver of
any subsequent, similar or other event.

 

    	 

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Article
9

LOAN AGREEMENT

 

9.1 Loan
Agreement

 

The
provisions of the Loan Agreement which are not expressly restated herein or in any Other Document, will survive the execution and registration
of this Agreement and any the Other Document to be delivered herewith. Accordingly, there will be no merger of such provisions in this
Agreement or any Other Document, until the parties thereto, by an appropriate instrument in writing so declare. Furthermore, if any conflict
at any time exists between any term of the Loan Agreement (whether restated herein or not) and any term of this Agreement, then the term
of the Loan Agreement or this Agreement as determined by the Secured Party will govern and take precedence. Also, it is understood and
agreed that a default under the terms of the Loan Agreement will constitute a default under this Agreement and will entitle the Secured
Party to exercise all of its rights and remedies contained in this Agreement.

 

Article
10

MISCELLANEOUS

 

10.1 Costs

 

The
Debtor shall reimburse the Secured Party on demand for all interest, commissions, costs of realization and other costs and expenses (including
the full amount of all legal fees and expenses paid by the Secured Party) incurred by the Secured Party or any Receiver in connection
with:

 

		(a)	inspecting
                                            the Collateral;

 

		(b)	negotiating,
                                            preparing, perfecting and registering this Agreement or any renewal or modification hereof,
                                            including the renewal of registration of any financing statement registered or land title
                                            office notice filed in connection with the security interests hereby created;

 

		(c)	the
                                            enforcement of and advice with respect to this Agreement;

 

		(d)	the
                                            realization, disposition of, retention, protection, insuring or collection of any Collateral;
                                            and

 

		(e)	the
                                            protection or enforcement of the rights, remedies and powers of the Secured Party or any
                                            Receiver.

 

All
amounts for which the Debtor required hereunder to reimburse the Secured Party or any Receiver will, from the date of disbursement until
the date the Secured Party or the Receiver receives reimbursement, be deemed advanced to the Debtor by the Secured Party, will be deemed
to be Secured Obligations and will bear interest at the highest rate per annum charged by the Secured Party on any of the other Secured
Obligations.

 

    	 

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10.2  No
Merger

 

This
Agreement will not operate so as to create any merger or discharge of any of the Secured Obligations, or any assignment, transfer, guarantee,
lien, contract, promissory note, bill of exchange or security interest of any form held or which may hereafter be held by the Secured
Party from the Debtor or from any other person whomsoever. The taking of a judgment with respect to any of the Secured Obligations will
not operate as a merger of any of the covenants contained in this Agreement.

 

10.3 No
Obligation to Make Advances

 

Nothing
herein will obligate the Secured Party to make any advance or loan or further advance or extend credit to the Debtor.

 

10.4 Set-Off
or Counterclaim

 

The
obligation of the Debtor to make all payments comprising part of the Secured Obligations is absolute and unconditional and will not be
affected by:

 

		(a)	any
                                            circumstance, including any set-off, compensation, counterclaim, recoupment, defence or other
                                            right which the Debtor may now or hereafter have against the Secured Party or any one or
                                            more others for any reason whatsoever; or

 

		(b)	any
                                            insolvency, bankruptcy, reorganization or similar proceedings by or against the Debtor.

 

10.5 Statutory
Waiver

 

To
the fullest extent permitted by law, the Debtor waives all of the rights, benefits and protection given by the provisions of any existing
or future statute which imposes limitations upon the rights, remedies or powers of a Secured Party or upon the methods of realization
of security, including any seize or sue or anti-deficiency statute or any similar provisions of any other statute.

 

10.6 Assignment

 

The
Secured Party may, without further notice to the Debtor, at any time assign, transfer or grant a security interest in this Agreement
and the security interests granted hereby. The Debtor expressly agrees that the assignee, transferee or secured party, as the case may
be, will have all of the Secured Party’s rights and remedies under this Agreement and the Debtor shall not assert any defence,
counterclaim, right of set-off or otherwise any claim which it now has or hereafter acquires against the Secured Party in any action
commenced by such assignee, transferee or secured party, as the case may be, and will pay the Secured Obligations to the assignee, transferee
or secured party, as the case may be, as the Secured Obligations become due. The Debtor shall not assign this Agreement or any of its
rights or benefits hereunder without the express written consent of the Secured Party first had and obtained.

 

10.7 Provisions
Reasonable

 

The
Debtor acknowledges that the provisions of this Agreement and, in particular, those respecting rights, remedies and powers of the Secured
Party and any Receiver against the Debtor, its business and any Collateral upon an Event of Default, are commercially reasonable and
not manifestly unreasonable.

 

    	 

    	24

    

   

10.8 Release
by Debtor

 

The
Debtor releases and discharges the Secured Party and the Receiver from every claim of every nature, whether sounding in damages or not,
which may arise or be caused to the Debtor or any person claiming through or under the Debtor by reason or as a result of anything done
by the Secured Party or any successor or assign claiming through or under the Secured Party or the Receiver under the provisions of this
Agreement unless such claim be the result of dishonesty or gross neglect.

 

10.9 Indemnity

 

The
Debtor shall indemnify and save the Secured Party from any and all costs, expenses, liabilities and damages which may be incurred by
the Secured Party in connection with the Collateral and the enforcement of its rights hereunder, save only any costs, expenses, liabilities
or damages resulting from any gross neglect or wilful misconduct by the Secured Party or its servants or agents.

 

10.10 Information
to third parties

 

The
Secured Party will not be obliged to inquire into the right of any Person purporting to be entitled under the Act to information and
materials from the Secured Party by making a demand upon the Secured Party for such information and materials and the Secured Party will
be entitled to comply with such demand and will not be liable for having complied with such demand notwithstanding that such Person may
in fact not be entitled to make such demand.

 

10.11 Further
Assurances

 

The
Debtor shall at all times, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged or delivered all such further
acts, deeds, transfers, assignments, security agreements and assurances as the Secured Party may reasonably require in order to give
effect to the provisions hereof and for the better granting, transferring, assigning, charging, setting over, assuring, confirming or
perfecting the security interests hereby created and the priority accorded to them by law or under this Agreement.

 

10.12 Notices

 

Any
notice, demand or other document to be given, or any delivery to be made hereunder shall be effective if in writing and given or made
in accordance with the notice provisions of the Loan Agreement.

 

Notice
details for:

 

Debtor

 

FOGDOG
ENERGY SOLUTIONS INC.

619
Everridge Drive, SW

Calgary,
Alberta, Canada

T2Y
5E5

Name: Marlon Lee Him

Email: marlon@fogdogenergy.com

 

Secured
Party

 

CURRENCYWORKS,
INC.

561
Indiana Court

Los
Angeles, California, United States

90291

Name: Jimmy Geiskopf

Email:
jimmy.geiskopf@currencyworks.io

 

    	 

    	25

    

  

10.13 Discharge

 

Any
partial payment or satisfaction of the Secured Obligations will be deemed not to be a redemption or discharge of this Agreement. The
Debtor shall be entitled to a release and discharge of this Agreement upon full payment and satisfaction of all Secured Obligations and
upon written request by the Debtor and payment to the Secured Party of all costs, charges, expenses and legal fees and disbursements
(on a solicitor and his own client basis) incurred by the Secured Party in connection with the Secured Obligations and such release and
discharge.

 

10.14 Delivery
of Copy/Waiver

 

The
Debtor acknowledges receiving a copy of this Agreement. The Debtor waives all rights to receive from the Secured Party a copy of any
financing statement, financing change statement or verification statement filed at any time in respect of this Agreement.

 

Article
11

Interpretation

 

11.1 Amendment

 

Any
amendment of this Agreement shall not be binding unless in writing and signed by the Secured Party and the Debtor.

 

11.2 Headings

 

All
headings and titles in this Agreement are for reference only and are not to be used in the interpretation of the terms hereof.

 

11.3  Hereof,
Etc. 

 

All
references in this Agreement to the words “hereof”, “herein” or “hereunder”
will be construed to mean and refer to this Agreement as a whole and will not be construed to refer only to a specific Article, Section,
paragraph or clause of this Agreement unless the context clearly requires such construction.

 

    	 

    	26

    

 

11.4 Joint
and Several Liability

 

If
any party hereto is comprised of more than one Person the assignments, security interests and other charges constituted hereby and the
representations, warranties, covenants, agreements, obligations and liabilities made by or imposed upon that party herein or by law will
be deemed to have been made or incurred by all those Persons jointly and by each of those Persons severally.

 

11.5 Severability

 

If
any of the terms of this Agreement are or are held to be unenforceable or otherwise invalid, such holding will not in any way affect
the enforceability or validity of the remaining terms of this Agreement.

 

11.6 Governing
Law

 

This
Agreement will be governed by and construed in accordance with the laws of the Province of British Columbia, and each party hereby submits
to the jurisdiction of the courts of the Province of British Columbia provided that the foregoing will in no way limit the right of the
Secured Party to commence suits, actions or proceedings based on this Agreement in any other jurisdiction.

 

11.7 Interpretation

 

Wherever
the singular or one gender only is used throughout this Agreement, the same will be construed as meaning the plural or the other genders
or the body corporate or politic where the context or the parties hereto so require.

 

11.8 Capacity

 

If
the Collateral or any portion thereof or any interest therein is held by the Debtor as a partner of a firm, as a trustee, as an agent,
or in any other similar capacity, whether fiduciary or otherwise:

 

		(a)	each
                                            and every warranty, representation, covenant, agreement, term, condition, provision and stipulation;
                                            and

 

		(b)	each
                                            and every Encumbrance,

 

made
by or imposed upon the Debtor hereunder will be and be deemed to be jointly and severally made by or imposed upon the Debtor and the
partnership, the beneficiary or beneficiaries of the trust, the principal(s) of the agent, or other entity or entities, as the case may
be, and each Encumbrance contained in this Agreement will be deemed to create an Encumbrance in the estate, right, title and interest
of the partnership, the beneficiary or beneficiaries, the principal(s), or such entity or entities, as the case may be, in and to the
Collateral as well as being a security interest in the estate, interest and title of the Debtor in and to the Collateral, it being the
intention of the parties hereto that this Agreement will create a security interest in both the legal and beneficial title to the Collateral.

 

    	 

    	27

    

 

11.9  Secured
Party as Agent

 

If
this Agreement is granted to the Secured Party in its capacity as agent for one or more other Persons, the Debtor agrees that all:

 

		(a)	Encumbrances;

 

		(b)	representations,
                                            warranties, covenants and agreements; and

 

		(c)	obligations
                                            and liabilities,

 

created,
made, assumed or incurred hereunder by the Debtor in favour of the Secured Party are also created, made, assumed or incurred hereunder
by the Debtor in favour of those Persons. The Debtor further agrees that each of those Persons will be entitled to the benefit of all
rights and remedies of the Secured Party as if it had been named Secured Party hereunder.

 

11.10 Binding
Effect

 

This
Agreement shall be binding on the Debtor and its heirs, executors, personal representatives, successors and permitted assigns and shall
enure to the benefit of the Secured Party and its successors and assigns.

 

11.11 Entire
Agreement

 

The
Secured Party has made no representations, warranties, covenants or acknowledgements affecting any Collateral, other than as expressly
set out herein in writing and in any Other Document executed by the Secured Party.

 

11.12 Counterparts

 

This
Agreement may be executed in counterparts and an executed copy of this Agreement may be delivered by electronic facsimile transmission
or other means of electronic communication capable of producing a signed printed copy of this Agreement. Any such execution and delivery
will be deemed to have occurred as of the date set forth below by the party so delivering such a copy.

 

[Signature
Page follows]

 

    	 

    	 

    

  

EXECUTED
by the Debtor as of the 20th day of August, 2021.

 

FOGDOG
ENERGY SOLUTIONS INC.

 

	Per:		 
	 	Authorized
    Signatory	 

 

[Signature
Page of General Security Agreement dated for reference August [___], 2021]

 

    	 

    	 

    

  

Schedule
“A”

SERIAL NUMBERED GOODS

 

	TYPE	 	SERIAL NUMBER	 	MODEL NUMBER	 	YEAR
	N/A	 	N/A	 	N/A	 	2021

 

Locations in bc where
collateral Maintained

[♦]

 

jurisdictions (other
than b.c.) and location Of Collateral

 

	JURISDICTION	 	Locations
	N/A	 	N/A

 

Location of Debtor

 

619 Everridge Drive, SW

Calgary, Alberta, Canada

T2Y 5E5

 

other names

 

NIL

 

other persons with
rights in collateral

 

NIL

 

Intellectual Property
Applications

and Registrations / Trade Mark and Industrial Designs

 

NIL

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