Document:

INTERCREDITOR
AGREEMENT

 

Dated
as of

 

April
17, 2015

 

Preamble

 

Parties

 

	●	GreenTech
                                         Automotive, Inc., as the holder of the First Lien Obligations defined below (in such
                                         capacity, First Lien Claimholder)
	 	 
	●	The
                                         parties set forth on the signature pages hereto under the heading Senior Secured Convertible
                                         Noteholders, as the holders of the Second Lien Obligations defined below (in such capacity,
                                         Second Lien Claimholders)
	 	 
	●	Saleen
                                         Automotive, Inc. (Borrower)
	 	 
	●	The
                                         Guarantor Subsidiaries (as defined below).

 

Background

 

Borrower
and the First Lien Claimholder have entered into a Securities Purchase Agreement dated on or about the date hereof (the First
Lien Securities Purchase Agreement) providing for the purchase of 10.0% First Lien Convertible Notes.

 

Borrower
and the Second Lien Claimholders have entered into a Securities Purchase Agreement dated as of June 26, 2013 (the Second
Lien Securities Purchase Agreement) pursuant to which the Borrower has issued 3.0% Senior Secured Convertible Notes to
the holders and in the outstanding principal amounts set forth on Schedule A hereto (the “Second Lien Obligations”).

 

The
Subsidiaries of the Borrower (the “Guarantor Subsidiaries”) have guaranteed the First Lien Obligations and the Second
Lien Obligations.

 

Each
of Borrower and each Guarantor Subsidiary, and each other Person that executes and delivers a First Lien Collateral Document or
a Second Lien Collateral Document as a “grantor” or “pledgor” (or the equivalent) is a Grantor.

 

The
First Lien Obligations and the Second Lien Obligations are secured by Liens on substantially all the assets of Borrower and the
Guarantor Subsidiaries.

 

The
Parties desire to set forth in this Intercreditor Agreement (this Agreement) their rights and remedies with respect
to the Collateral securing the First Lien Obligations and the Second Lien Obligations.

 

    	 

    	 

    

 

Agreement

 

	1	Lien
                                         Priorities

 

		1.1	Seniority
                                         Of Liens Securing First Lien Obligations

 

		(a)	A
                                         Lien on Collateral securing any First Lien Obligation will at all times be senior and
                                         prior in all respects to a Lien on such Collateral securing any Second Lien Obligation,
                                         and a Lien on Collateral securing any Second Lien Obligation will at all times be junior
                                         and subordinate in all respects to a Lien on such Collateral securing any First Lien
                                         Obligation.
	 	 	 
		(b)	Except
                                         as otherwise expressly provided herein, the priority of the Liens securing First Lien
                                         Obligations and the rights and obligations of the Parties will remain in full force and
                                         effect irrespective of

 

	 	(1)	how
                                         a Lien was acquired (whether by grant, possession, statute, operation of law, subrogation,
                                         or otherwise),
	 	 	 
	 	(2)	the
                                         time, manner, or order of the grant, attachment, or perfection of a Lien,
	 	 	 
	 	(3)	any
                                         conflicting provision of the U.C.C. or other applicable law,
	 	 	 
	 	(4)	any
                                         defect in, or non-perfection, setting aside, or avoidance of, a Lien or a First Lien
                                         Note Document or a Second Lien Note Document,
	 	 	 
	 	(5)	the
                                         modification of a First Lien Obligation or a Second Lien Obligation,
	 	 	 
	 	(6)	the
                                         modification of a First Lien Note Document or a Second Lien Note Document,
	 	 	 
	 	(7)	the
                                         subordination of a Lien on Collateral securing a First Lien Obligation to a Lien securing
                                         another obligation of a Grantor or other Person that is permitted under the First Lien
                                         Note Documents as in effect on the date hereof or secures a DIP Financing deemed consented
                                         to by the Second Lien Claimholders pursuant to section 5.1, “Use of Collateral
                                         and DIP Financing,”
	 	 	 
	 	(8)	the
                                         exchange of a security interest in any Collateral for a security interest in other Collateral,
	 	 	 
	 	(9)	the
                                         commencement of an Insolvency Proceeding, or
	 	 	 
	 	(10)	any
                                         other circumstance whatsoever, including a circumstance that might be a defense available
                                         to, or a discharge of, a Grantor in respect of a First Lien Obligation or a Second Lien
                                         Obligation or holder of such Obligation.

 

    	2

    	 

    

 

		1.2	First
                                         Lien Obligations And Second Lien Obligations

 

		(a)	First
                                         Lien Obligations means all Obligations of the Grantors under

 

	 	(1)	the
    First Lien Securities Purchase Agreement and the other First Lien Note Documents,
	 	 	
	 	(2)	the
    guaranties by the Guarantor Subsidiaries of the Borrower’s Obligations under the First Lien Note Documents, or
	 	 	
	 	(3)	any other
    agreement or instrument granting or providing for the perfection of a Lien securing any of the foregoing.

 

Notwithstanding
any other provision hereof, the term “First Lien Obligations” will include accrued interest, fees, costs, and
other charges incurred under the First Lien Securities Purchase Agreement and the other First Lien Note Documents, whether incurred
before or after commencement of an Insolvency Proceeding, and whether or not allowable in an Insolvency Proceeding. To the extent
that any payment with respect to the First Lien Obligations (whether by or on behalf of any Grantor, as proceeds of security,
enforcement of any right of set-off, or otherwise) is declared to be fraudulent or preferential in any respect, set aside, or
required to be paid to a debtor in possession, trustee, receiver, or similar Person, then the obligation or part thereof originally
intended to be satisfied will be deemed to be reinstated and outstanding as if such payment had not occurred.

 

		(b)	Second
                                        Lien Obligations means all Obligations of the Grantors under

 

		(1)	the
                                         Second Lien Securities Purchase Agreement and the other Second Lien Note Documents,
	 	 	 
		(2)	the
                                         guaranties by Holdings and the Guarantor Subsidiaries of Borrower’s Obligations
                                         under the Second Lien Note Documents, or
	 	 	 
		(3)	any
                                         agreement or instrument granting or providing for the perfection of a Lien securing any
                                         of the foregoing.

 

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Notwithstanding
any other provision hereof, the term “Second Lien Obligations” will include accrued interest, fees, costs,
and other charges incurred under the Second Lien Securities Purchase Agreement and the other Second Lien Note Documents, whether
incurred before or after commencement of an Insolvency Proceeding. To the extent that any payment with respect to the Second Lien
Obligations (whether by or on behalf of any Grantor, as proceeds of security, enforcement of any right of set-off, or otherwise)
is declared to be fraudulent or preferential in any respect, set aside, or required to be paid to a debtor in possession, trustee,
receiver, or similar Person, then the obligation or part thereof originally intended to be satisfied will be deemed to be reinstated
and outstanding as if such payment had not occurred.

 

		1.3	First
                                         And Second Lien Collateral To Be Identical

 

		(a)	The
                                         Parties intend that the First Lien Collateral and the Second Lien Collateral be identical,
                                         except with respect to any motor vehicles for which security interests are perfected
                                         for the benefit of the First Lien Obligations under the First Lien Note Documents. Accordingly,
                                         subject to the other provisions of this Agreement, the Parties will cooperate

 

		(1)	to
                                         determine the specific items included in the First Lien Collateral and the Second Lien
                                         Collateral, the steps taken to perfect the Liens thereon, and the identity of the Persons
                                         having First Lien Obligations or Second Lien Obligations, and
	 	 	 
		(2)	to
                                         make the forms, documents, and agreements creating or evidencing the First Lien Collateral
                                         and Second Lien Collateral and the guaranties of the First Lien Obligations and the Second
                                         Lien Obligations materially the same, other than with respect to the first and second
                                         lien nature of the Liens.

 

		(b)	Until
                                         the Discharge of First Lien Obligations, and whether or not an Insolvency Proceeding
                                         has commenced, Borrower will not grant, and will use their best efforts to prevent any
                                         other Person from granting, a Lien on any property in favor of a Second Lien Claimholder
                                         to secure the Second Lien Obligations unless Borrower, Holdings, or such other Person
                                         grants (or offers to grant with a reasonable opportunity for the Lien to be accepted)
                                         First Lien Agent a senior Lien on such property to secure the First Lien Obligations.
	 	 	 
		(c)	Subject
                                         to section 1.1, “Seniority of Liens Securing First Lien Obligations,”
                                         if a Second Lien Claimholder hereafter acquires a Lien on property to secure a Second
                                         Lien Obligation where the property is not also subject to a Lien securing the First Lien
                                         Obligations, then such Second Lien Claimholder will give First Lien Agent written notice
                                         of such Lien no later than five Business Days after acquiring such Lien.

 

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		1.4	Pledged
                                         Collateral

 

		(a)	If
                                         any Second Lien Claimholder has any Pledged Collateral in its possession or control,
                                         then, subject to section 1.1, “Seniority of Liens Securing First Lien Obligations,”
                                         and this section 1.4, Second Lien Agent will possess or control the Pledged Collateral
                                         as gratuitous bailee and/or gratuitous agent for perfection for the benefit of First
                                         Lien Claimholder as secured party, so as to satisfy the requirements of sections 8-106(d)(3),
                                         8-301(a)(2), and 9-313(c) of the U.C.C.
	 	 	 
		(b)	Upon
                                         the Discharge of Second Lien Obligations, the Second Lien Claimholders will deliver or
                                         transfer control of any Pledged Collateral in their possession or control, together with
                                         any necessary endorsements (which endorsements will be without recourse and without any
                                         representation or warranty),

 

		(1)	first,
                                         to First Lien Claimholder if any First Lien Obligations remain outstanding, and
	 	 	 
		(2)	second,
                                         to Borrower,and will take any other action reasonably requested by the First Lien Claimholder
                                         (at the expense of the Borrower) in connection with the First Lien Claimholder obtaining
                                         a first-priority interest in the Pledged Collateral.

 

		1.5	Prohibition
                                         On Contesting Liens; No Marshaling

 

		(a)	The
                                         First Lien Claimholder will not contest in any proceeding (including an Insolvency Proceeding)
                                         the validity, enforceability, perfection, or priority of any Lien securing a Second Lien
                                         Obligation, but nothing in this section 1.5 will impair the rights of any First Lien
                                         Claimholder to enforce this Agreement, including the priority of the Liens securing the
                                         First Lien Obligations or the provisions for exercise of remedies.
	 	 	 
		(b)	The
                                         Second Lien Claimholders will not contest in any proceeding (including an Insolvency
                                         Proceeding) the validity, enforceability, perfection, or priority of any Lien securing
                                         a First Lien Obligation , but nothing in this section 1.5 will impair the rights of any
                                         Second Lien Claimholder to enforce this Agreement, including the priority of the Liens
                                         securing the Second Lien Obligations or the provisions for exercise of remedies.
	 	 	 
		(c)	Until
                                         the Discharge of First Lien Obligations, Second Lien Claimholders will not assert any
                                         marshaling, appraisal, valuation, or other similar right that may otherwise be available
                                         to a junior secured creditor.

 

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	2	Modification
                                         Of Obligations

 

		2.1	Permitted
                                         Modifications

 

Except
as otherwise expressly provided in this section 2, the First Lien Obligations may be amended, supplemented or modified in accordance
with their terms, and their aggregate amount increased or Refinanced, without notice to or consent by any Second Lien Claimholder

 

	3	Enforcement

 

		3.1	Who
                                         May Exercise Remedies

 

		(a)	Subject
                                         to subsections (b) and (c) below, until the Discharge of First Lien Obligations, the
                                         First Lien Claimholder will have the exclusive right to

 

		(1)	commence
                                         and maintain an Enforcement Action (including the rights to set off or credit bid their
                                         debt),
	 	 	 
		(2)	make
                                         determinations regarding the release or disposition of, or restrictions with respect
                                         to, the Collateral, and
	 	 	 
		(3)	otherwise
                                         enforce the rights and remedies of a secured creditor under the U.C.C. and the Bankruptcy
                                         Laws of any applicable jurisdiction.

 

		(b)	Notwithstanding
                                         the preceding section 3.1(a), Second Lien Claimholders may commence an Enforcement Action
                                         or exercise rights with respect to a Lien securing a Second Lien Obligation if

 

		(1)	180
                                         days have elapsed since Second Lien Claimholders notified the First Lien Claimholder
                                         that the Second Lien Obligations were due in full as a result of acceleration or otherwise
                                         (the Standstill Period),
	 	 	 
		(2)	The
                                         First Lien Claimholder is not then diligently pursuing an Enforcement Action with respect
                                         to all or a material portion of the Collateral or diligently attempting to vacate any
                                         stay or prohibition against such exercise,
	 	 	 
		(3)	any
                                         acceleration of the Second Lien Obligations has not been rescinded, and
	 	 	 
		(4)	the
                                         applicable Grantor is not then a debtor in an Insolvency Proceeding.

 

		(c)	Notwithstanding
                                         section 3.1(a), but subject to section 1.3, “First and Second Lien Collateral
                                         to Be Identical,” a Second Lien Claimholder may

 

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		(1)	file
                                         a proof of claim or statement of interest, vote on a plan of reorganization (including
                                         a vote to accept or reject a plan of partial or complete liquidation, reorganization,
                                         arrangement, composition, or extension), and make other filings, arguments, and motions,
                                         with respect to the Second Lien Obligations and the Collateral in any Insolvency Proceeding
                                         commenced by or against any Grantor, in each case in accordance with this Agreement,
	 	 	 
		(2)	take
                                         action to create, perfect, preserve, or protect its Lien on the Collateral, so long as
                                         such actions are not adverse to the priority status in accordance with this Agreement
                                         of Liens on the Collateral securing the First Lien Obligations or the First Lien Claimholder’s
                                         rights to exercise remedies,
	 	 	 
		(3)	file
                                         necessary pleadings in opposition to a claim objecting to or otherwise seeking the disallowance
                                         of a Second Lien Obligation or a Lien securing the Second Lien Obligation,
	 	 	 
		(4)	join
                                         (but not exercise any control over) a judicial foreclosure or Lien enforcement proceeding
                                         with respect to the Collateral initiated by the First Lien Claimholder, to the extent
                                         that such action could not reasonably be expected to interfere materially with the Enforcement
                                         Action, but no Second Lien Claimholder may receive any Proceeds thereof unless expressly
                                         permitted herein, and
	 	 	 
		(5)	bid
                                         for or purchase Collateral at any public, private, or judicial foreclosure upon such
                                         Collateral initiated by the First Lien Claimholder, or any sale of Collateral during
                                         an Insolvency Proceeding; provided that such bid may not include a “credit
                                         bid” in respect of any Second Lien Obligations unless the proceeds of such bid
                                         are otherwise sufficient to cause the Discharge of First Lien Obligations.

 

	 	3.2	Manner
                                         Of Exercise

 

		(a)	The
                                         First Lien Claimholder may take any Enforcement Action

 

	 	(1)	in
                                         any manner in its sole discretion in compliance with applicable law,
	 	 	 
	 	(2)	without
                                         consultation with or the consent of any Second Lien Claimholder,
	 	 	 
	 	(3)	regardless
                                         of whether an Insolvency Proceeding has been commenced,
	 	 	 
	 	(4)	regardless
                                         of any provision of any Second Lien Note Document (other than this Agreement), and
	 	 	 
	 	(5)	regardless
                                         of whether such exercise is adverse to the interest of any Second Lien Claimholder.

 

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		(b)	The
                                         rights of the First Lien Claimholder to enforce any provision of this Agreement or any
                                         First Lien Note Document will not be prejudiced or impaired by

 

		(1)	any
                                         act or failure to act of any Grantor, or
	 	 	 
		(2)	noncompliance
                                         by any Person other than the First Lien Claimholder with any provision of this Agreement,
                                         any First Lien Note Document, or any Second Lien Note Document, regardless of any knowledge
                                         thereof that the First Lien Claimholder may have or otherwise be charged with.

 

		(c)	No
                                         Second Lien Claimholder will contest, protest, object to, or take any action to hinder,
                                         and each waives any and all claims with respect to, any Enforcement Action by the First
                                         Lien Claimholder in compliance with this Agreement and applicable law.

 

	 	3.3	Specific
                                         Performance

 

The
First Lien Claimholder and the Second Lien Claimholders may each demand specific performance of this Agreement, and each waives
any defense based on the adequacy of a remedy at law and any other defense that might be asserted to bar the remedy of specific
performance in any action brought by a Second Lien Claimholder or the First Lien Claimholder, respectively.

 

	4.	Payments

 

	 	4.1	Application
                                         Of Proceeds

 

Until
the Discharge of First Lien Obligations and the Discharge of Second Lien Obligations, and regardless of whether an Insolvency
Proceeding has been commenced, Collateral or Proceeds received in connection with an Enforcement Action or subject to section
6.7, “Reorganization Securities,” received in connection with any Insolvency Proceeding involving a Grantor
will be applied

 

	 	(a)	first,
                                         to the payment in full or cash collateralization of all First Lien Obligations,
	 	 	 
	 	(b)	second,
                                         to the payment in full of the Second Lien Obligations, and
	 	 	 
	 	(c)	third,
                                         to the applicable Grantor or as otherwise required by applicable law. in each
                                         case as specified in the First Lien Note Documents or the Second Lien Note Documents,
                                         or as otherwise determined by the First Lien Claimholders or the Second Lien Claimholders,
                                         as applicable.

 

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	 	4.2	Payment
                                         Turnover

 

Until
the Discharge of First Lien Obligations, whether or not an Insolvency Proceeding has commenced, Collateral or Proceeds (including
insurance proceeds) received by a Second Lien Claimholder in connection with an Enforcement Action or, subject to section 5.7,
“Reorganization Securities,” received in connection with any Insolvency Proceeding, will be

 

	 	(a)	segregated
                                         and held in trust, and
	 	 	 
	 	(b)	promptly
                                         paid over to the First Lien Claimholder in the form received, with any necessary endorsements
                                         or as a court of competent jurisdiction may otherwise direct. The First Lien Claimholder
                                         is authorized to make such endorsements as agent for the Second Lien Claimholders. This
                                         authorization is coupled with an interest and is irrevocable until the Discharge of First
                                         Lien Obligations.

 

	5.	Insolvency
                                         Proceedings

 

	 	5.1	Use
                                         Of Cash Collateral And Dip Financing

 

	 	(a)	Until
                                         the Discharge of First Lien Obligations, if an Insolvency Proceeding has commenced, the
                                         Second Lien Claimholders, as holders of a Lien on the Collateral, will not contest, protest,
                                         or object to, and will be deemed to have consented to,

 

	 	(1)	any
                                         use, sale, or lease of “cash collateral” (as defined in section 363(a) of
                                         the Bankruptcy Code), and
	 	 	 
	 	(2)	Borrower
                                         or any other Grantor obtaining DIP Financing if the First Lien Claimholder consents in
                                         writing to such use, sale, or lease, or DIP Financing, provided that

 

	 	(A)	the
                                         Second Lien Claimholders otherwise retains their Lien on the Collateral, and
	 	 	 
	 	(B)	any
                                         Second Lien Claimholder may seek adequate protection as permitted by section 5.4, “Adequate
                                         Protection,” and, if such adequate protection is not granted, Second Lien Agent
                                         may object under this section 5.1 solely on such basis.

 

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Upon
written request from the First Lien Claimholder, the Second Lien Claimholders will join any objection by First Lien Claimholder
to the use, sale, or lease of cash collateral for any purpose other than adequate protection payments to Second Lien Claimholders.

 

	 	(b)	Any
                                         customary “carve-out” or other similar administrative priority expense or
                                         claim consented to in writing by First Lien Claimholder to be paid prior to the Discharge
                                         of First Lien Obligations will be deemed for purposes of section 6.1(a)

 

	 	(3)	to
                                         be a use of cash collateral, and
	 	 	 
	 	(4)	not
                                         to be a principal amount of DIP Financing at the time of such consent.

 

No
Second Lien Claimholder may provide DIP Financing to a Borrower or other Grantor secured by Liens equal or senior in priority
to the Liens securing any First Lien Obligations.

 

	 	5.2	Sale
                                         Of Collateral

 

The
Second Lien Claimholders will not contest, protest, or object, and will be deemed to have consented pursuant to section 363(f)
of the Bankruptcy Code, to a Disposition of Collateral free and clear of its Liens or other interests under section 363 of the
Bankruptcy Code if the First Lien Claimholder consents in writing to the Disposition, provided that either (i) pursuant
to court order, the Liens of the Second Lien Claimholders attach to the net Proceeds of the Disposition with the same priority
and validity as the Liens held by Second Lien Claimholders on such Collateral, and the Liens remain subject to the terms of this
Agreement, or (ii) the Proceeds of a Disposition of Collateral received by the First Lien Claimholder in excess of those necessary
to achieve the Discharge of First Lien Obligations are distributed in accordance with the U.C.C. and applicable law.

 

Upon
the First Lien Claimholder’s request, the Second Lien Claimholders will join any objection asserted by the First Lien Claimholder
to any Disposition of Collateral during an Insolvency Proceeding.

 

	 	5.3	Relief
                                         From The Automatic Stay.
                                         Until the Discharge of First Lien Obligations, no Second Lien Claimholder may seek relief
                                         from the automatic stay or any other stay in an Insolvency Proceeding in respect of the
                                         Collateral without the First Lien Claimholder’s prior written consent or oppose
                                         any request by the First Lien Claimholder for relief from such stay

 

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	 	5.4	Adequate
                                         Protection

 

	 	(a)	No
                                         Second Lien Claimholder will contest, protest, or object to

 

	 	(1)	a
                                         request by the First Lien Claimholder for “adequate protection” under any
                                         Bankruptcy Law, or
	 	 	 
	 	(2)	an
                                         objection by the First Lien Claimholder to a motion, relief, action, or proceeding based
                                         on the First Lien Claimholder claiming a lack of adequate protection.

 

	 	(b)	Notwithstanding
                                         the preceding section 5.4(a), in an Insolvency Proceeding:

 

	 	(1)	Except
                                         as permitted in this section 5.4, no Second Lien Claimholders may seek or request adequate
                                         protection or relief from the automatic stay imposed by section 362 of the Bankruptcy
                                         Code or other relief.
	 	 	 
	 	(2)	Any
                                         claim by a Second Lien Claimholder under section 507(b) of the Bankruptcy Code will be
                                         subordinate in right of payment to any claim

 

	 	5.6	First
                                         Lien Objections To Second Lien Actions

 

Subject
to section 3.1, “Who May Exercise Remedies,” nothing in this section 5 limits the First Lien Claimholder from
objecting in an Insolvency Proceeding or otherwise to any action taken by a Second Lien Claimholder, including the Second Lien
Claimholder’s seeking adequate protection or asserting any of its rights and remedies under the Second Lien Loan Documents
or otherwise.

 

	 	5.7	Avoidance;
                                         Reinstatement Of Obligations

 

If
a First Lien Claimholder or a Second Lien Claimholder receives payment or property on account of a First Lien Obligation or Second
Lien Obligation, and the payment is subsequently invalidated, avoided, declared to be fraudulent or preferential, set aside, or
otherwise required to be transferred to a trustee, receiver, or the estate of Borrower or other Grantor (a Recovery)
, then, to the extent of the Recovery, the First Lien Obligations or Second Lien Obligations intended to have been satisfied by
the payment will be reinstated as First Lien Obligations or Second Lien Obligations, as applicable, on the date of the Recovery,
and no Discharge of First Lien Obligations or Discharge of Second Lien Obligations, as applicable, will be deemed to have occurred
for all purposes hereunder. If this Agreement is terminated prior to a Recovery, this Agreement will be reinstated in full force
and effect, and such prior termination will not diminish, release, discharge, impair, or otherwise affect the obligations of the
Parties from the date of reinstatement. Upon any such reinstatement of First Lien Obligations, each Second Lien Claimholder will
deliver to First Lien Agent any Collateral or Proceeds thereof received between the Discharge of First Lien Obligations and their
reinstatement in accordance with section 4.2, “Payment Turnover.” No Second Lien Claimholder may benefit from
a Recovery, and any distribution made to a Second Lien Claimholder as a result of a Recovery will be paid over to First Lien Claimholder
for application to the First Lien Obligations in accordance with section 4.1, “Application of Proceeds.”

 

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	 	5.8	Reorganization
                                         Securities

 

Nothing
in this Agreement prohibits or limits the right of a Second Lien Claimholder to receive and retain any debt or equity securities
that are issued by a reorganized debtor pursuant to a plan of reorganization or similar dispositive restructuring plan in connection
with an Insolvency Proceeding, provided that any debt securities received by a Second Lien Claimholder on account of a
Second Lien Obligation that constitutes a “secured claim” within the meaning of section 506(b) of the Bankruptcy Code
will be paid over or otherwise transferred to the First Lien Claimholder for application in accordance with section 4.1, “Application
of Proceeds,” unless such distribution is made under a plan that is consented to by the affirmative vote of all classes
composed of the secured claims of the First Lien Claimholders.

 

If,
in an Insolvency Proceeding, debt Obligations of the reorganized debtor secured by Liens upon any property of the reorganized
debtor are distributed pursuant to a plan of reorganization or similar dispositive restructuring plan, both on account of First
Lien Obligations and on account of Second Lien Obligations, then, to the extent the debt Obligations distributed on account of
the First Lien Obligations and on account of the Second Lien Obligations are secured by Liens upon the same property, the provisions
of this Agreement will survive the distribution of such debt Obligations pursuant to such plan and will apply with like effect
to the Liens securing such debt Obligations.

 

	 	5.9	Post-Petition
                                         Claims

 

No
Second Lien Claimholder may oppose or seek to challenge any claim by the First Lien Claimholder for allowance or payment in any
Insolvency Proceeding of First Lien Obligations consisting of Post-Petition Claims.

 

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	 	5.10	Waivers

 

Second
Lien Agent waives

 

	 	(a)	any
                                         claim it may hereafter have against the First Lien Claimholder arising out of any cash
                                         collateral or financing arrangement or out of any grant of a security interest in connection
                                         with the Collateral in an Insolvency Proceeding, so long as such actions are not in express
                                         contravention of the terms of this Agreement;
	 	 	 
	 	(b)	any
                                         right to assert or enforce any claim under section 506(c) or 552 of the Bankruptcy Code
                                         as against the First Lien Claimholder or any of the Collateral to the extent securing
                                         the First Lien Obligations ; and
	 	 	 
	 	(c)	solely
                                         in its capacity as a holder of a Lien on Collateral, any claim or cause of action that
                                         any Grantor may have against the First Lien Claimholder, except to the extent arising
                                         from a breach by the First Lien Claimholder of the provisions of this Agreement.

 

	 	5.11	Separate
                                         Grants Of Security And Separate Classification

 

The
grants of Liens pursuant to the First Lien Collateral Documents and the Second Lien Collateral Documents constitute two separate
and distinct grants. Because of, among other things, their differing rights in the Collateral, the Second Lien Obligations, to
the extent deemed to be “secured claims” within the meaning of section 506(b) of the Bankruptcy Code, are fundamentally
different from the First Lien Obligations and must be separately classified in any plan of reorganization in an Insolvency Proceeding.
Second Lien Claimholders will not seek in an Insolvency Proceeding to be treated as part of the same class of creditors as First
Lien Claimholder and will not oppose or contest any pleading by First Lien Claimholder seeking separate classification of their
respective secured claims.

 

	 	5.12	Effectiveness
                                         In Insolvency Proceedings

 

The
Parties acknowledge that this Agreement is a “subordination agreement” under section 510(a) of the Bankruptcy Code,
which will be effective before, during, and after the commencement of an Insolvency Proceeding. All references in this Agreement
to any Grantor will include such Person as a debtor-in-possession and any receiver or trustee for such Person in an Insolvency
Proceeding. 

 

	6	Miscellaneous

 

	 	6.1	Conflicts

 

If
this Agreement conflicts with the First Lien Note Documents or the Second Lien Note Documents, this Agreement will control.

 

	 	6.2	no
                                         waivers; remedies cumulative; integration

 

A
Party’s failure or delay in exercising a right under this Agreement will not waive the right, nor will a Party’s single
or partial exercise of a right preclude it from any other or further exercise of that or any other right.

 

    	13

    	 

    

 

The
rights and remedies provided in this Agreement will be cumulative and not exclusive of other rights or remedies provided by law.

 

This
Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, oral or written, relating
to its subject matter.

 

	 	6.3	Effectiveness;
                                         Severability; Termination

 

This
Agreement will become effective when executed and delivered by the Parties.

 

The
First Lien Claimholder and each Second Lien Claimholder waives any right it may have under applicable law to revoke this Agreement
or any provision thereunder or consent by it thereto.

 

This
Agreement will survive, and continue in full force and effect, in any Insolvency Proceeding.

 

If
a provision of this Agreement is prohibited or unenforceable in a jurisdiction, the prohibition or unenforceability will not invalidate
the remaining provisions hereof, or invalidate or render unenforceable that provision in any other jurisdiction.

 

	 	6.4	Modifications
                                         of this agreement

 

A
modification or waiver of any provision of this Agreement will only be effective if in writing signed on behalf of each Party
or its authorized agent, and a waiver will be a waiver only for the specific instance involved and will not impair the rights
of the Parties making the waiver or the obligations of the other Parties to such Party in any other respect or at any other time.
Notwithstanding the foregoing, neither Borrower nor Holdings will have a right to consent to or approve a modification of this
Agreement except to the extent its rights are directly affected.

 

	 	6.5	Information
                                         Concerning Financial Condition of Borrower and its Subsidiaries

 

The
First Lien Claimholder and the Second Lien Claimholders will each be responsible for keeping themselves informed of

 

	 	(a)	the
                                         financial condition of the Grantors, and
	 	 	 
	 	(b)	all
                                         other circumstances bearing upon the risk of nonpayment of the First Lien Obligations
                                         or the Second Lien Obligations.

 

The
First Lien Claimholder will not have any duty to advise any Second Lien Claimholder, and no Second Lien Claimholder will have
any duty to advise the First Lien Claimholder, of information known to it regarding any such condition or circumstances or otherwise.

 

    	14

    	 

    

 

If
the First Lien Claimholder provides any such information to a Second Lien Claimholder, or a Second Lien Claimholder provides any
such information to the First Lien Claimholder, the First Lien Claimholder, or Second Lien Claimholder, respectively, will have
no obligation to:

 

	 	(c)	make,
                                         and it does not make, any express or implied representation or warranty, including as
                                         to accuracy, completeness, truthfulness, or validity,
	 	 	 
	 	(d)	provide
                                         additional information on that or any subsequent occasion,
	 	 	 
	 	(e)	undertake
                                         any investigation, or
	 	 	 
	 	(f)	disclose
                                         information that, pursuant to applicable law or accepted or reasonable commercial finance
                                         practices, it desires or is required to maintain as confidential.
	 	 	 
	 	6.6	No
                                         Reliance
	 	 	 
	 	(a)	The
                                         First Lien Claimholder acknowledges that it has, independently and without reliance on
                                         any Second Lien Claimholder, and based on documents and information the First Lien Claimholder
                                         deemed appropriate, made its own credit analysis and decision to enter into the First
                                         Lien Note Documents and this Agreement, and will continue to make its own credit decisions
                                         in taking or not taking any action under the First Lien Note Documents or this Agreement.
	 	 	 
	 	(b)	Each
                                         Second Lien Claimholder acknowledges that it and each other Second Lien Claimholder has,
                                         independently and without reliance on the First Lien Claimholder, and based on documents
                                         and information the Second Lien Claimholder deemed appropriate, made its own credit analysis
                                         and decision to enter into the Second Lien Note Documents and this Agreement, and will
                                         continue to make its own credit decisions in taking or not taking any action under the
                                         Second Lien Note Documents or this Agreement.
	 	 	 
	 	6.7	No
                                         Warranties; Independent Action
	 	 	 
	 	(a)	Except
                                         as otherwise expressly provided herein,
	 	 	 

	 	(1)	no
                                         Second Lien Claimholder has made any express or implied representation or warranty to
                                         the First Lien Claimholder, including with respect to the execution, validity, legality,
                                         completeness, collectability, or enforceability of any Second Lien Note Document, the
                                         ownership of any Collateral, or the perfection or priority of any Liens thereon, and

	 	 	 
	 	(2)	each
                                         Second Lien Claimholder may manage and supervise its loans and extensions of credit under
                                         the Second Lien Note Documents in accordance with applicable law and as it may otherwise,
                                         in its sole discretion, deem appropriate.

 

    	15

    	 

    

 

	 	(b)	Except
                                         as otherwise expressly provided herein,

 

	 	(1)	the
                                         First Lien Claimholder has made any express or implied representation or warranty to
                                         any Second Lien Claimholder, including with respect to the execution, validity, legality,
                                         completeness, collectability, or enforceability of any First Lien Note Document, the
                                         ownership of any Collateral, or the perfection or priority of any Liens thereon, and
	 	 	 
	 	(2)	the
                                         First Lien Claimholder may manage and supervise its loans and extensions of credit under
                                         the First Lien Note Documents in accordance with law and as it may otherwise, in its
                                         sole discretion, deem appropriate.

 

No
Second Lien Claimholder will have any duty to the First Lien Claimholder, and the First Lien Claimholder will not have any duty
to any Second Lien Claimholder, to act or refrain from acting in a manner that allows, or results in, the occurrence or continuance
of an event of default or default under any agreements with Borrower or any other Grantor (including the First Lien Note Documents
and the Second Lien Note Documents), regardless of any knowledge thereof that it may have or be charged with.

 

	 	6.8	Subrogation

 

If
a Second Lien Claimholder pays or distributes cash, property, or other assets to the First Lien Claimholder under this Agreement,
the Second Lien Claimholder will be subrogated to the rights of the First Lien Claimholder with respect to the value of the payment
or distribution, provided that the Second Lien Claimholder waives such right of subrogation until the Discharge of First
Lien Obligations. Such payment or distribution will not reduce the Second Lien Obligations.

 

	 	6.9	Applicable
                                         Law; Jurisdiction; Service

 

This
Agreement, and any claim or controversy relating to the subject matter hereof, will be governed by the law of the State of New
York.

 

All
judicial proceedings brought against a Party arising out of or relating hereto may be brought in any state or federal court of
competent jurisdiction in the state, county, and city of New York. Each Party irrevocably

 

	 	(a)	accepts
                                         generally and unconditionally the nonexclusive personal jurisdiction and venue of such
                                         courts,
	 	 	 
	 	(b)	waives
                                         any defense of forum nonconveniens, and
	 	 	 
	 	(c)	agrees
                                         that service of process in such proceeding may be made by registered or certified mail,
                                         return receipt requested, to the Party at its address provided in accordance with section
                                         6.11, “Notices,” and that such service will confer personal jurisdiction
                                         over the Party in such proceeding and otherwise constitutes effective and binding service
                                         in every respect.
	 	 	 
	 	6.10	Waiver
                                         Of Jury Trial

 

Each
Party waives its right to jury trial of any claim or cause of action based upon or arising hereunder. The scope of this waiver
is intended to encompass any and all disputes that may be filed in any court and that relate to the subject matter hereof, including
contract claims, tort claims, breach of duty claims, and all other common law and statutory claims. Each Party acknowledges that
this waiver is a material inducement to enter into a business relationship, that it has already relied on this waiver in entering
into this Agreement, and that it will continue to rely on this waiver in its related future dealings. Each Party further represents
and warrants that it knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. This waiver
is irrevocable, meaning that it may not be modified either orally or in writing (other than by a mutual written waiver specifically
referring to this section 6.10 and executed by each of the Parties), and will apply to any subsequent modification hereof. In
the event of litigation, this Agreement may be filed as a written consent to a trial by the court.

 

    	16

    	 

    

 

	 	6.11	Notices

 

Unless
otherwise expressly provided herein, notices and consents must be in writing and will be deemed to have been given (i)
when delivered in person or by courier service and signed for against receipt thereof, (ii) upon receipt of facsimile, and (iii)
three Business Days after deposit in the United States mail with first-class postage prepaid and properly addressed. For the purposes
hereof, the address of each Party will be as set forth below the Party’s name on the signature pages hereto, or at such
other address as the Party may designate by notice to the other Parties.

 

	 	6.12	Further
                                         Assurances

 

The
First Lien Claimholder, the Second Lien Claimholders, and Borrower will each take such further action and will execute and deliver
such additional documents and instruments (in recordable form, if requested) as the First Lien Claimholder or any Second Lien
Claimholder may reasonably request to effectuate the terms of and the Lien priorities contemplated by this Agreement.

 

	 	6.13	Successors
                                         And Assigns

 

This
Agreement is binding upon and inures to the benefit of the First Lien Claimholder, each Second Lien Claimholder, and their respective
successors and assigns. However, no provision of this Agreement will inure to the benefit of a trustee, debtor-in-possession,
creditor trust or other representative of an estate or creditor of Borrower, or other Grantor, including where such estate or
creditor representative is the beneficiary of a Lien securing Collateral by virtue of the avoidance of such Lien in an Insolvency
Proceeding.

 

Notwithstanding
any other provision of this Agreement, this Agreement may not be assigned to any Person except as expressly contemplated herein.

 

	 	6.14	Authorization

 

By
its signature hereto, each Person signing this Agreement on behalf of a Party represents and warrants to the other Parties that
it is duly authorized to execute this Agreement.

 

	 	6.15	No
                                         Third-Party Beneficiaries

 

No
Person is a third-party beneficiary of this Agreement and no trustee in bankruptcy for, or bankruptcy estate of, or unsecured
creditor of, any Grantor will have or acquire or be entitled to exercise any right of the First Lien Claimholder or a Second Lien
Claimholder under this Agreement, whether upon an avoidance or equitable subordination of a Lien of the First Lien Claimholder
or the Second Lien Claimholders, or otherwise. None of Borrower, any other Grantor, or any other creditor thereof has any rights
hereunder, and neither Borrower nor any Grantor may rely on the terms hereof. Nothing in this Agreement impairs the Obligations
of Borrower and the other Grantors to pay principal, interest, fees, and other amounts as provided in the First Lien Note Documents
and the Second Lien Note Documents. Except to the extent expressly provided in this Agreement, no Person will have a right to
notice of a modification to, or action taken under, this Agreement or any First Lien Collateral Document (including the release
or impairment of any Collateral) other than as a lender under the First Lien Note Agreement, and then only to the extent expressly
provided in the First Lien Note Documents. Except to the extent expressly provided in this Agreement, no Person will have a right
to notice of a modification to or action taken under, this Agreement or any Second Lien Collateral Document (including the release
or impairment of any Collateral) other than as a lender under the Second Lien Securities Purchase Agreement, and then only to
the extent expressly provided in the Second Lien Note Documents.

 

    	17

    	 

    

 

	 	6.16	No
                                         Indirect Actions

 

Unless
otherwise expressly stated, if a Party may not take an action under this Agreement, then it may not take that action indirectly,
or assist or support any other Person in taking that action directly or indirectly. “Taking an action indirectly”
means taking an action that is not expressly prohibited for the Party but is intended to have substantially the same effects as
the prohibited action.

 

	 	6.17	Counterparts

 

This
Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which will constitute
an original, but all of whicvh when taken together will constitute a single contract. Delivery of an executed counterpart of a
signature page of this Agreement or any document or instrument delivered in connection herewith by telecopy or electronic facsimile
or other electronic means will be effective as delivery of a manually executed counterpart of this Agreement or such other document
or instrument, as applicable, and each Party utilizing telecopy, electronic facsimile, or other electronic means for delivery
will deliver a manually executed original counterpart to each other Party on request.

 

	 	6.18	Original
                                         Grantors; Additional Grantors

 

Borrower
and each other Grantor on the date of this Agreement will constitute the original Grantors party hereto. The original Grantors
will cause each Subsidiary of Borrower that becomes a Grantor after the date hereof to contemporaneously become a party hereto
(as a Guarantor Subsidiary) by executing and delivering a joinder agreement (in form and substance satisfactory to the First Lien
Claimholder) the to First Lien Claimholder. The Parties further agree that, notwithstanding any failure to take the actions required
by the immediately preceding sentence, each Person that becomes a Grantor at any time (and any security granted by any such Person)
will be subject to the provisions hereof as fully as if it constituted a Guarantor Subsidiary party hereto and had complied with
the requirements of the immediately preceding sentence.

 

7
Definitions

 

	 	7.1	Defined
                                         Terms

 

Unless
otherwise stated or the context otherwise clearly requires, the following terms have the following meanings:

 

Affiliate
means, for a specified Person, another Person that directly, or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with the specified Person. For these purposes, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether
through the ownership of voting securities, by contract or otherwise, and “controlled” has a correlative meaning.

 

Agreement
is defined in the Preamble.

 

Bankruptcy
Code means the federal Bankruptcy Code.

 

Bankruptcy
Law means the Bankruptcy Code and any similar federal, state, or foreign bankruptcy, insolvency, receivership, or similar
law affecting creditors’ rights generally.

 

    	18

    	 

    

 

Borrower
is defined in the Preamble.

 

Business
Day means a day other than a Saturday, Sunday, or other day on which commercial banks in New York City are authorized
or required by law to close.

 

Collateral
means all of the property of any Grantor, whether real, personal, or mixed, that is (or is required to be) both First
Lien Collateral and Second Lien Collateral, including any property subject to Liens granted pursuant to section 5, “Insolvency
Proceedings,” to secure both First Lien Obligations and Second Lien Obligations.

 

DIP
Financing means the obtaining of credit or incurring debt secured by Liens on the Collateral pursuant to section 364 of
the Bankruptcy Code (or similar Bankruptcy Law).

 

Discharge
of First Lien Obligations means

 

	 	(a)	payment
                                         in full in cash of the principal of and interest (including interest accruing on or after
                                         the commencement of an Insolvency Proceeding, whether or not such interest would be allowed
                                         in the proceeding) on all outstanding Indebtedness included in the First Lien Obligations,
                                         and
	 	 	 
	 	(b)	payment
                                         in full in cash of all other First Lien Obligations that are due and payable or otherwise
                                         accrued and owing at or prior to the time such principal and interest are paid (other
                                         than indemnification Obligations for which no claim or demand for payment, whether oral
                                         or written, has been made at such time).

 

Discharge
of Second Lien Obligations means

 

	 	(c)	payment
                                         in full in cash of the principal of and interest (including interest accruing on or after
                                         the commencement of an Insolvency Proceeding, whether or not such interest would be allowed
                                         in the proceeding) on all outstanding Indebtedness included in the Second Lien Obligations,
                                         and
	 	 	 
	 	(d)	payment
                                         in full in cash of all other Second Lien Obligations that are due and payable or otherwise
                                         accrued and owing at or prior to the time such principal and interest are paid (other
                                         than indemnification Obligations for which no claim or demand for payment, whether oral
                                         or written, has been made at such time).

 

Disposition
means an asset sale or other sale, lease, exchange, transfer, or other disposition of any kind.

 

Enforcement
Action means an action under applicable law to

 

	 	(e)	foreclose,
                                         execute, levy, or collect on, take possession or control of, sell or otherwise realize
                                         upon (judicially or non-judicially), or lease, license, or otherwise dispose of (whether
                                         publicly or privately), Collateral, or otherwise exercise or enforce remedial rights
                                         with respect to Collateral under the First Lien Note Documents or the Second LienNote
                                         Documents (including by way of set-off, recoupment notification of a public or private
                                         sale or other disposition pursuant to the U.C.C. or other applicable law, notification
                                         to account debtors, notification to depositary banks under deposit account control agreements,
                                         or exercise of rights under landlord consents, if applicable),
	 	 	 
	 	(f)	solicit
                                         bids from third Persons to conduct the liquidation or disposition of Collateral or to
                                         engage or retain sales brokers, marketing agents, investment bankers, accountants, appraisers,
                                         auctioneers, or other third Persons for the purposes of valuing, marketing, promoting,
                                         and selling Collateral,
	 	 	 
	 	(g)	to
                                         receive a transfer of Collateral in satisfaction of Indebtedness or any other Obligation
                                         secured thereby,
	 	 	 
	 	(h)	to
                                         otherwise enforce a security interest or exercise another right or remedy, as a secured
                                         creditor or otherwise, pertaining to the Collateral at law, in equity, or pursuant to
                                         the First Lien Loan Documents or Second Lien Loan Documents (including the commencement
                                         of applicable legal proceedings or other actions with respect to all or any portion of
                                         the Collateral to facilitate the actions described in the preceding clauses, and exercising
                                         voting rights in respect of equity interests comprising Collateral), [or
	 	 	 
	 	(i)	effect
                                         the Disposition of Collateral by any Grantor after the occurrence and during the continuation
                                         of an event of default under the First Lien Note Documents or the Second Lien Loan Documents
                                         with the consent of the First Lien Claimholder or the Second Lien Claimholders, as applicable,
                                         provided that “Enforcement Action” will be deemed to include the commencement
                                         of, or joinder in filing of a petition for commencement of, an Insolvency Proceeding
                                         against the owner of Collateral.

 

    	19

    	 

    

 

Equity
Interest means, for any Person, any and all shares, interests, participations, or other equivalents, including membership
interests (however designated, whether voting or non-voting) of equity of the Person, including, if the Person is a partnership,
partnership interests (whether general or limited) or any other interest or participation that confers on a holder the right to
receive a share of the profits and losses of, or distributions of assets of, the partnership, but not including debt securities
convertible or exchangeable into equity unless and until actually converted or exchanged.

 

First
Lien Claimholder is defined in the Preamble.

 

First
Lien Collateral means the assets of any Grantor, whether real, personal, or mixed, as to which a Lien is granted as security
for a First Lien Obligation.

 

First
Lien Collateral Documents means the security documents defined in the First Lien Securities Purchase Agreement, and any
other documents or instruments granting a Lien on real or personal property to secure a First Lien Obligation or granting rights
or remedies with respect to such Liens.

 

First
Lien Securities Purchase Agreement is defined in the Preamble.

 

First
Lien Note Documents means

 

	 	(j)	the
                                         First Lien Securities Purchase Agreement and the “Transaction Documents”
                                         defined in the First Lien Securities Purchase Agreement,
	 	 	 
	 	(k)	each
                                         other agreement, document, or instrument providing for, evidencing, guaranteeing, or
                                         securing an Obligation under the First Lien Securities Purchase Agreement,
	 	 	 
	 	(l)	any
                                         other document or instrument executed or delivered at any time in connection with Borrower’s
                                         Obligations under the First Lien Securities Purchase Agreement, including any guaranty
                                         of or grant of Collateral to secure such Obligations, and any intercreditor or joinder
                                         agreement to which holders of First Lien Obligations are parties, and
	 	 	 
	 	(m)	each
                                         other agreement, document, or instrument providing for, evidencing, guaranteeing, or
                                         securing any DIP Financing provided by or consented to in writing by the First Lien Claimholder
                                         and deemed consented to by the Second Lien Claimholders pursuant to section 6.1, “Use
                                         of Cash Collateral and DIP Financing,” to the extent effective at the relevant
                                         time.

 

First
Lien Obligations is defined in section 1.3(a).

 

Governmental
Authority means any federal, state, municipal, national, or other government, governmental department, commission, board,
bureau, court, agency, or instrumentality, or political subdivision thereof, or any entity or officer exercising executive, legislative,
judicial, regulatory, or administrative functions of or pertaining to any government or any court, in each case whether associated
with a state of the United States, the United States, or a foreign entity or government.

 

Grantor
is defined in the Preamble.

 

Guarantor
Subsidiaries is defined in the Preamble.

 

Indebtedness
means and includes all Obligations that constitute “Indebtedness” under the First Lien Securities Purchase
Agreement or the Second Lien Securities Purchase Agreement, as applicable.

 

    	20

    	 

    

 

Insolvency
Proceeding means

 

	 	(n)	a
                                         voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to
                                         a Grantor,
	 	 	 
	 	(o)	any
                                         other voluntary or involuntary insolvency, reorganization, or bankruptcy case or proceeding,
                                         or any receivership, liquidation, reorganization, or other similar case or proceeding
                                         with respect to a Grantor or a material portion of its property,
	 	 	 
	 	(p)	a
                                         liquidation, dissolution, reorganization, or winding up of a Grantor, whether voluntary
                                         or involuntary and whether or not involving insolvency or bankruptcy, or
	 	 	 
	 	(q)	an
                                         assignment for the benefit of creditors or other marshaling of assets and liabilities
                                         of a Grantor.

 

Lien
means any lien (including, without limitation, judgment liens and liens arising by operation of law, subrogation, or otherwise),
mortgage or deed of trust, pledge, hypothecation, assignment, security interest, charge, or encumbrance of any kind (including
any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease in the nature
thereof), and any option, call, trust, U.C.C. financing statement, or other preferential arrangement having the practical effect
of any of the foregoing, including any right of set-off or recoupment.

 

Modify,
as applied to any document or obligation, includes

 

	 	(r)	modification
                                         by amendment, supplement, termination, or replacement of the document or obligation,
	 	 	 
	 	(s)	any
                                         waiver of a provision (including waivers by course of conduct), and
	 	 	 
	 	(t)	the
                                         settlement or release of any claim, whether oral or written, and regardless of whether
                                         the modification is in conformity with the provisions of the document or obligation governing
                                         modifications.

 

Obligations
means all obligations of every nature of a Person owed to any obligee under an agreement, whether for principal, interest,
or payments for early termination, fees, expenses, indemnification, or otherwise, and all guaranties of any of the foregoing,
whether absolute or contingent, due or to become due, now existing or hereafter arising, and including interest and fees that
accrue after the commencement by or against any Person of any proceeding under any Bankruptcy Law naming such Person as the debtor
in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

 

Party
means a party to this Agreement.

 

Person
means any natural person, corporation, limited liability company, trust, business trust, joint venture, association, company,
partnership, Governmental Authority, or other entity.

 

Pledged
Collateral is defined in section 1.4(a).

 

Post-Petition
Claims means interest, fees, costs, expenses, and other charges that pursuant to the First Lien Securities Purchase Agreement
or the Second Lien Securities Purchase Agreement continue to accrue after the commencement of an Insolvency Proceeding, to the
extent such interest, fees, expenses, and other charges are allowed or allowable under Bankruptcy Law or in the Insolvency Proceeding.

 

    	21

    	 

    

 

Proceeds
means

 

	 	(u)	all
                                         “proceeds,” as defined in Article 9 of the U.C.C., of the Collateral, and
	 	 	 
	 	(v)	whatever
                                         is recovered when Collateral is sold, exchanged, collected, or disposed of, whether voluntarily
                                         or involuntarily, including any additional or replacement Collateral provided during
                                         any Insolvency Proceeding and any payment or property received in an Insolvency Proceeding
                                         on account of any “secured claim” (within the meaning of section 506(b) of
                                         the Bankruptcy Code or similar Bankruptcy Law).

 

Recovery
is defined in section 5.6.

 

Refinance
means, for any Indebtedness, to refinance, replace, refund, or repay, or to issue other Indebtedness in exchange or replacement
for such Indebtedness in whole or in part, whether with the same or different lenders, agents, or arrangers. “Refinanced”
and “Refinancing” have correlative meanings.

 

Second
Lien Adequate Protection Payments is defined in section 5.4(b)(4). Second Lien Agent is defined in the Preamble.

 

Second
Lien Claimholders is defined in the Preamble.

 

Second
Lien Collateral means all of the property of any Grantor, whether real, personal, or mixed, as to which a Lien is granted
as security for a Second Lien Obligation.

 

Second
Lien Collateral Documents means the security documents defined in the Second Lien Securities Purchase Agreement, and any
other documents or instruments granting a Lien on real or personal property to secure a Second Lien Obligation or granting rights
or remedies with respect to such Liens.

 

Second
Lien Securities Purchase Agreement is defined in the Preamble.

 

Second
Lien Loan Documents means

 

	 	(w)	the
                                         Second Lien Securities Purchase Agreement and the “Transaction Documents”
                                         defined in the Second Lien Securities Purchase Agreement,
	 	 	 
	 	(x)	each
                                         other agreement, document, or instrument providing for, evidencing, guaranteeing, or
                                         securing an Obligation under the Second Lien Securities Purchase Agreement, and
	 	 	 
	 	(y)	any
                                         other document or instrument executed or delivered at any time in connection with Borrower’s
                                         Obligations under the Second Lien Securities Purchase Agreement, including any guaranty
                                         of or grant of Collateral to secure such Obligations, and any intercreditor or joinder
                                         agreement to which holders of Second Lien Obligations are parties, to the extent effective
                                         at the relevant time.

 

Second
Lien Obligations is defined in section 1.3(b).

 

Standstill
Period is defined in section 3. 1(b)(1).

 

Subsidiary
of a Person means a corporation or other entity a majority of whose voting stock is directly or indirectly owned or controlled
by the Person. For these purposes, “voting stock” of a Person means securities or other ownership interests of the
Person having general power under ordinary circumstances to vote in the election of the directors, or other persons performing
similar functions, of the Person. References to a percentage or proportion of voting stock refer to the relevant percentage or
proportion of the votes entitled to be cast by the voting stock.

 

    	22

    	 

    

 

U.C.C.
means the Uniform Commercial Code (or any similar legislation) as in effect in any applicable jurisdiction.

 

7.2
Usages

 

Unless
otherwise stated or the context clearly requires otherwise:

 

Singular
and plural. Definitions of terms apply equally to the singular and plural forms.

 

Masculine
and feminine. Pronouns will include the corresponding masculine, feminine, and neuter forms.

 

Will
and shall. “Will” and “shall” have the same meaning.

 

Time
periods. In computing periods from a specified date to a later specified date, the words “from” and “commencing
on” (and the like) mean “from and including,” and the words “to,” “until,” and “ending
on” (and the like) mean “to but excluding.”

 

When
action may be taken. Any action permitted under this Agreement may be taken at any time and from time to time.

 

Time
of day. All indications of time of day mean New York City time.

 

Including.
“Including” means “including, but not limited to.”

 

Or.
“A or B” means “A or B or both.”

 

Statutes
and regulations. References to a statute refer to the statute and all regulations promulgated under or implementing the statute
as in effect at the relevant time. References to a specific provision of a statute or regulation include successor provisions.
References to a section of the Bankruptcy Code also refer to any similar provision of Bankruptcy Law.

 

Agreements.
References to an agreement (including this Agreement) refer to the agreement as amended at the relevant time.

 

Governmental
agencies and self-regulatory organizations. References to a governmental or quasi-governmental agency or authority or a self-regulatory
organization include any successor agency, authority, or self-regulatory organization.

 

Section
references. Section references refer to sections of this Agreement. References to numbered sections refer to all included
sections. For example, a reference to section 6 also refers to sections 6.1, 6.1(a), etc. References to a section or article in
an agreement, statute, or regulation include successor and renumbered sections and articles of that or any successor agreement,
statute, or regulation.

 

Successors
and assigns. References to a Person include the Person’s permitted successors and assigns.

 

Herein,
etc. “Herein,” “hereof,” “hereunder,” and words of similar import refer to this Agreement
in its entirety and not to any particular provision.

 

Assets
and property. “Asset” and “property” have the same meaning and refer to both real and personal, tangible
and intangible assets and property, including cash, securities, accounts, and general intangibles.

 

    	23

    	 

    

 

SIGNATURES:

 

	 	Saleen
    Automotive, Inc.
	 	 	 
	 	By:	 
	 	 	Steve Saleen,
    Chief Executive Officer
	 	 	 
	 	Address:	2735 Wardlow Road
	 	 	Corona, CA 92882
	 	Attn:	Chief Executive
    Officer

 

	 	SMS
    Signature Cars
	 	 	 
	 	By:	 
	 	 	Steve Saleen,
    Chief Executive Officer
	 	 	 
	 	Address:	 
	 	 	2735 Wardlow Road
	 	 	Corona, CA 92882
	 	Attn:	Chief Executive
    Officer

 

	 	Saleen
    Automotive, Inc.
	 	 	 
	 	By:	 
	 	 	Steve Saleen,
    Chief Executive Officer
	 	Address:	2735 Wardlow Road
	 	 	Corona, CA 92882
	 	Attn:	Chief Executive
    Officer

 

	 	GreenTech
    Automotive, Inc.
	 	 	 
	 	By:	 
	 	 	Gary Y. Tang,
    EVP Finance
	 	 	 
	 	Address:	1600 Tysons Boulevard,
    Suite 1150
	 	 	McLean VA 22102
	 	Attn:	EVP Finance

 

    	24

    	 

    

 

	 	 

        SENIOR
        SECURED CONVERTIBLE NOTEHOLDERS:

	 	 	 
	 	W-Net
    Fund I, L.P.
	 	 
	 	By:	W-Net
    Fund GP I LLC
	 	Its:	General Partner
	 	 	 
	 	By:	 
	 	 	David Weiner,
    Manager
	 	 	:
	 	 	 
	 	Address:	 
	 	 	
	 	 	
	 	Attn:	

 

	 	Europa
    International, Inc.
	 	 
	 	By:	Knoll
    capital Management, L.P.
	 	Its:	Investment Manager
	 	 	 
	 	By:	
	 	 	Fred Knoll, Manager
	 	Address:	
	 	 	
	 	Attn:	

 

    	25ex10-95.htm

Exhibit 10.95

 

 

MODIFICATION AGREEMENT TO 

SECURED CONVERTIBLE PROMISSORY NOTE

 

This Modification Agreement (this “Agreement”), dated effective as of April 15, 2015 (the “Effective Date”), is to modify certain of the terms and conditions of that certain Secured Convertible Promissory Note dated November 28, 2012, by and between Location Based Technologies, Inc., a Nevada corporation (the “Company”), and Bridge Loans, LLC (the “Lender”) in the principal amount of One Million Dollars ($1,000,000), as amended on each of April 29, 2013, December 10, 2013 and September 5, 2014 (the “Note”).

 

WHEREAS, the Company has requested Lender to modify the terms of the Note in order for the Company to secure a loan of at least Five Million Dollars ($5,000,000) (the “Loan”) from Fortress Investment Group. LLC (“Fortress”) or any other reasonable source of funds on or before ninety (90) days from the Effective Date; and,

 

WHEREAS, under the terms and conditions herein Lender is willing to modify certain terms of the Note in order for the Company to secure the Loan.

 

NOW, THEREFORE, in consideration of the covenants and agreements, set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby covenant and agree as follows:

 

	
1.
	
Lender hereby agrees that for a period of ninety (90) days from the Effective Date, Lender will not exercise its conversion rights under Subsection (a) of Section 1 of the Note in order to allow the Company to secure the Loan with Fortress or any other reasonable source of funds on terms reasonably acceptable to the Company. At the closing of such Loan, the Company shall pay the outstanding principal and all accrued interest due on the Note to Lender. 

 

	
2.
	
As additional consideration for entering into this Agreement, at the closing of the Loan, the Company shall issue to Lender 4,666,200 shares of Common Stock. 

 

	
3.
	
Existing Warrants dated April 29, 2013 for 3,000,000 warrants with a strike price of $0.20 shall be extended to the Fiscal Year end of August 31, 2017. 

 

	
4.
	
In the event that the closing of the Loan with Fortress does not close on or before ninety (90) days from the Effective Date, this Agreement shall automatically terminate and (i) all of the rights of Lender set forth in the Note shall be effective as of April 15, 2015, and (ii) the conversion price shall be the lower of $0.10 per share of Company common stock and 50% of the lowest sales price of Company common stock between the Effective Date and the date of conversion. 

 

	
5.
	
Except as expressly set forth herein, this Agreement does not alter, amend or modify any other terms or conditions of the Note. All other terms and conditions of the Note shall remain unchanged.

 

 

[Remainder of page intentionally left blank. Signature page follows]

 

 

 

 

 

IN WITNESS WHEREOF, this Agreement has been executed this 20th day of April, 2015, but shall be effective as of the Effective Date.

 

Borrower:

 

LOATION BASED TECHNOLOGIES, INC.

 

By:_________________________________

David M. Morse, CEO

 

Date: April 20, 2015

 

 

Lender:

 

BRIDGE LOANS, LLC

 

By:_________________________________

Alfred G. Allen, III, Manager

 

Date: April 20, 2015

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