Document:

Exhibit
10.6

 

PLEDGE
AND ESCROW AGREEMENT

(BENUVIA
THERAPEUTICS LLC)

 

THIS
PLEDGE AND ESCROW AGREEMENT (“Agreement”) is made and entered into as of December __, 2021, by and between
BENOVIA THERAPEUTICS LLC, a a limited liability company organized and existing under the laws of the State of Delaware (the “Pledgor”),
and JUPITER WELLNESS, INC., a corporation incorporated under the laws of the State of Delaware (the “Secured Party”),
with the joinder of LUCOSKY BROOKMAN LLP (“Escrow Agent”).

 

RECITALS

 

WHEREAS,
pursuant to a Securities Purchase Agreement dated of even date herewith (the “Purchase Agreement”) by and between
the Pledgor and the Secured Party, among others, the Pledgor has agreed to issue to the Secured Party and the Secured Party has agreed
to purchase from the Pledgor a Secured Promissory Note (the “Note”), as more specifically set forth in the Purchase
Agreement; and

 

WHEREAS,
in order to secure the full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of all of
the Pledgor’s Obligations to the Secured Party, or any successor to the Secured Party, under the Purchase Agreement and all other
Transaction Documents, Pledgor has agreed to irrevocably pledge to the Secured Party 100% of the issued and outstanding membership interests
of Benuvia Therapeutics IP LLC, a Delaware limited liability company (the “Company”) (such shares and membership
interests of the Company hereinafter referred to as the “Pledged Securities”);

 

NOW,
THEREFORE, in consideration of the mutual covenants, agreements, warranties, and representations herein contained, and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.
Recitals, Construction and Defined Terms. The recitations set forth in the preamble of this Agreement are true and correct and
incorporated herein by this reference. In this Agreement, unless the express context otherwise requires: (i) the words “herein,”
“hereof” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular
provision of this Agreement; (ii) references to the words “Section” or “Subsection” refer to the respective Sections
and Subsections of this Agreement, and references to “Exhibit” or “Schedule” refer to the respective Exhibits
and Schedules attached hereto; and (iii) wherever the word “include,” “includes,” “including” or
words of similar import are used in this Agreement, such words will be deemed to be followed by the words “without limitation.”
All capitalized terms used in this Agreement that are defined in the Purchase Agreement shall have the meanings assigned to them in the
Purchase Agreement, unless the context of this Agreement requires otherwise (provided that if a capitalized term used herein is defined
in the Purchase Agreement and separately defined in this Agreement, the meaning of such term as defined in this Agreement shall control
for purposes of this Agreement).

 

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2.
Pledge. In order to secure the full and timely payment and performance of all of the Pledgor’s Obligations to the Secured
Party under the Transaction Documents, the Pledgor hereby transfers, pledges, assigns, sets over, delivers and grants to the Secured
Party a continuing lien and security interest in and to all of the following property of Pledgor, both now owned and existing and hereafter
created, acquired and arising (all being collectively hereinafter referred to as the “Collateral”) and all
right, title and interest of Pledgor in and to the Collateral, to-wit:

 

(a)
the Pledged Securities owned by Pledgor;

 

(b)
any certificates representing or evidencing the Pledged Securities, if any;

 

(c)
any and all distributions thereon, and cash and non-cash proceeds and products thereof, including all dividends, cash, distributions,
income, profits, instruments, securities, stock dividends, distributions of capital stock or other securities of the Company and all
other property from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon conversion of the
Pledged Securities, whether in connection with stock splits, recapitalizations, merger, conversions, combinations, reclassifications,
exchanges of securities or otherwise; and

 

(d)
any and all voting, management, and other rights, powers and privileges accruing or incidental to an owner of the Pledged Securities
and the other property referred to in subsections 2(a) through 2(c) above.

 

3.
Transfer of Pledged Securities. Simultaneously with the execution of this Agreement, Pledgor shall deliver to the Escrow Agent:
(i) if the Pledged Securities are evidenced by physical certificates, then all original certificates representing or evidencing the Pledged
Securities, together with undated, irrevocable and duly executed assignments or stock powers thereof in form and substance acceptable
to Secured Party (together with medallion guaranteed signatures, if required by Secured Party), executed in blank by Pledgor; (ii) if
the Pledged Securities are not represented by physical certificates, then undated, irrevocable and duly executed assignment instruments
in form and substance acceptable to Secured Party, executed in blank by Pledgor; and (iii) all other property, instruments, documents
and papers comprising, representing or evidencing the Collateral, or any part thereof, together with proper instruments of assignment
or endorsement, as Secured Party may request or require, duly executed by Pledgor (collectively, the “Transfer Documents”).
The Pledged Securities and other Transfer Documents (collectively, the “Pledged Materials”) shall be held by
the Escrow Agent pursuant to this Agreement until the full payment and performance of all of the Obligations, the termination or expiration
of this Agreement, or delivery of the Pledged Materials in accordance with this Agreement. In addition, all non-cash dividends, dividends
paid or payable in cash or otherwise in connection with a partial or total liquidation or dissolution of the Company, instruments, securities
and any other distributions, whether paid or payable in cash or otherwise, made on or in respect of the Pledged Securities, whether resulting
from a subdivision, combination, or reclassification of the outstanding capital stock or other securities of the Company, or received
in exchange for the Pledged Securities or any part thereof, or in redemption thereof, as a result of any merger, consolidation, acquisition,
or other exchange of assets to which the Company may be a party or otherwise, or any other property that constitutes part of the Collateral
from time to time, including any additional certificates representing any portion of the Collateral hereafter acquired by the Pledgor,
shall be immediately delivered or cause to be delivered by Pledgor to the Escrow Agent in the same form as so received, together with
proper instruments of assignment or endorsement duly executed by Pledgor.

 

4.
Security Interest Only. The security interests in the Collateral granted to Secured Party hereunder are granted as security only
and shall not subject the Secured Party to, or transfer or in any way affect or modify, any obligation or liability of the Pledgor with
respect to any of the Collateral or any transaction in connection therewith.

 

5.
Record Owner of Collateral. Until an “Event of Default” (as hereinafter defined) under this Agreement shall occur,
the Pledged Securities shall remain registered in the name of the Pledgor. Pledgor will promptly give to the Secured Party copies of
any notices or other communications received by it and with respect to Collateral registered in the name of Pledgor.

 

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6.
Rights Related to Pledged Securities. Subject to the terms of this Agreement, unless and until an Event of Default under this
Agreement shall occur:

 

(a)
Pledgor shall be entitled to exercise any and all voting, management, and other rights, powers and privileges accruing to an owner of
the Pledged Securities, or any part thereof, for any purpose consistent with the terms of this Agreement; provided, however, such action
would not materially and adversely affect the rights inuring to Secured Party under any of the Transaction Documents, or adversely affect
the remedies of the Secured Party under any of the Transaction Documents, or the ability of the Secured Party to exercise same.

 

(b)
Upon the occurrence of an Event of Default, all rights of the Pledgor in and to the Pledged Securities and all other Collateral shall
cease and all such rights shall immediately vest in Secured Party, as may be determined by Secured Party, although Secured Party shall
not have any duty to exercise such rights or be required to sell or to otherwise realize upon the Collateral, as hereinafter authorized,
or to preserve the same, and Secured Party shall not be responsible for any failure to do so or delay in doing so. To effectuate the
foregoing, Pledgor hereby grants to Secured Party a proxy to vote the Pledged Securities for and on behalf of Pledgor, which proxy is
irrevocable and coupled with an interest and which proxy shall be effective upon the occurrence of any Event of Default. Such proxy shall
remain in effect so long as the Obligations remain outstanding. The Company hereby agrees that any vote by Pledgor in violation of this
Section 6 shall be null, void and of no force or effect. Furthermore, all dividends or other distributions received by the Pledgor shall
be subject to delivery to Escrow Agent in accordance with Section 3 above, and until such delivery, any of such dividends and other distributions
shall be received in trust for the benefit of the Secured Party, shall be segregated from other property or funds of the Pledgor and
shall be forthwith delivered to Escrow Agent in accordance with Section 3 above.

 

7.
Release of Pledged Securities. Upon the timely payment in full of all of the Obligations in accordance with the terms thereof,
Secured Party shall notify the Escrow Agent in writing to such effect. Upon receipt of such written notice, the Escrow Agent shall return
all of the Pledged Materials in Escrow Agent’s possession to the Pledgor, whereupon any and all rights of Secured Party in and
to the Pledged Materials and all other Collateral shall be terminated.

 

8.
Representations, Warranties, and Covenants of the Pledgor and the Company. The Pledgor and the Company hereby covenant, warrant
and represent, for the benefit of the Secured Party, as follows (the following representations and warranties shall be made as of the
date of this Agreement and as of each date when Pledged Securities are delivered to Escrow Agent hereunder, as applicable):

 

(a)
The Pledged Securities are free and clear of any and all Liens, other than as created by this Agreement.

 

(b)
The Pledged Securities have been duly authorized and are validly issued, fully paid and non-assessable, and are subject to no options
to purchase, or any similar rights or to any restrictions on transferability.

 

(c)
Each certificate or document of title constituting the Pledged Securities is genuine in all respects and represents what it purports
to be.

 

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(d)
By virtue of the execution and delivery of this Agreement and upon delivery to Escrow Agent of the Pledged Securities in accordance with
this Agreement, Secured Party will have a valid and perfected, first priority security interest in the Collateral, subject to no prior
or other Liens of any nature whatsoever.

 

(e)
Pledgor covenants, that for so long as this Agreement is in effect, Pledgor will defend the Collateral and the priority of Secured Party’s
security interests therein, at its sole cost and expense, against the claims and demands of all Persons at any time claiming the same
or any interest therein.

 

(f)
At its option, Secured Party may pay, for Pledgor’s account, any taxes (including documentary stamp taxes), Liens, security interests,
or other encumbrances at any time levied or placed on the Collateral. Pledgor agrees to reimburse Secured Party on demand for any payment
made or expense incurred by Secured Party pursuant to the foregoing authorization. Any such amount, if not promptly paid upon demand
therefor, shall accrue interest at the highest non-usurious rate permitted by applicable law from the date of outlay, until paid, and
shall constitute an Obligation secured hereby.

 

(g)
The Pledgor and the Company acknowledge, represent and warrant that Secured Party is not an “affiliate” of the Pledgor or
the Company, as such term is used and defined under Rule 144 of the federal securities laws.

 

(h)
The Pledged Securities constitute all of the securities owned, legally or beneficially, by the Pledgor, and such securities represent
100% of the issued and outstanding membership interests or other securities, on a fully diluted basis, of the Company. At all times while
this Agreement remains in effect, the Pledged Securities shall constitute and represent 100% of the issued and outstanding membership
interests or other securities of the Company, on a fully-diluted basis.

 

(i)
The Company and the Pledgor hereby authorize Secured Party to prepare and file such financing statements, amendments and other documents
and do such acts as Secured Party deems necessary in order to establish and maintain valid, attached and perfected, first priority security
interests in the Collateral in favor of Secured Party, for its own benefit and as agent for its Affiliates, free and clear of all Liens
and claims and rights of third parties whatsoever. The Company and Pledgor hereby irrevocably authorize Secured Party at any time, and
from time to time, to file in any jurisdiction any initial financing statements, amendments, continuations and other documents in furtherance
of the foregoing.

 

9.
Events of Default. The occurrence of any one or more of the following events shall constitute an “Event of Default”
hereunder:

 

(a)
Default. The occurrence of any breach, default or “Event of Default” (as such term may be defined in any Transaction
Documents), after applicable notice and cure periods, under any of the Transaction Documents.

 

(b)
Covenants and Agreements. The failure of Pledgor or the Company to perform, observe or comply with any and all of the covenants,
promises and agreements of the Pledgor and the Company in this Agreement, which such failure is not cured by the Pledgor or the Company
within ten (10) days after receipt of written notice thereof from Secured Party, except that there shall be no notice or cure period
with respect to any failure to pay any sums due under or as part of the Obligations (provided that if the failure to perform or default
in performance is not capable of being cured, in Secured Party’s sole discretion, then the cure period set forth herein shall not
be applicable and the failure or default shall be an immediate Event of Default hereunder).

 

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(c)
Information, Representations and Warranties. If any representation or warranty made herein or in any other Transaction Documents,
or if any information contained in any financial statement, application, schedule, report or any other document given by the Company
to Secured Party in connection with the Obligations, with the Collateral, or with the Transaction Documents, is not in all material respects
true, accurate and complete, or if the Pledgor or the Company omitted to state any material fact or any fact necessary to make such information
not misleading.

 

10.
Rights and Remedies. Subject at all times to the Uniform Commercial Code as then in effect in the State governing this Agreement,
the Secured Party shall have the following rights and remedies upon the occurrence and continuation of an Event of Default:

 

(a)
Upon and any time after the occurrence and continuation of an Event of Default, the Secured Party shall have the right to acquire the
Pledged Securities and all other Collateral in accordance with the following procedure: (i) the Secured Party shall provide written notice
of such Event of Default (the “Default Notice”) to the Escrow Agent, with a copy to the Pledgor and the Company;
(ii) as soon as practicable after receipt of a Default Notice, the Escrow Agent shall deliver the Pledged Securities and all other Collateral,
along with the applicable Transfer Documents, to the Secured Party.

 

(b)
Upon receipt of the Pledged Securities and other Collateral issued to the Secured Party, the Secured Party shall have the right to, without
notice or demand to Pledgor or the Company: (i) sell the Collateral and to apply the proceeds of such sales, net of any selling commissions,
to the Obligations owed to the Secured Party by the Company under the Transaction Documents, including outstanding principal, interest,
legal fees, and any other amounts owed to the Secured Party; and (ii) exercise in any jurisdiction in which enforcement hereof is sought,
any rights and remedies available to Secured Party under the provisions of any of the Transaction Documents, the rights and remedies
of a secured party under the Uniform Commercial Code as then in effect in the State governing this Agreement, and all other rights and
remedies available to the Secured Party, under equity or applicable law, all such rights and remedies being cumulative and enforceable
alternatively, successively or concurrently. In furtherance of the foregoing rights and remedies:

 

(i)
Secured Party may sell the Pledged Securities, or any part thereof, or any other portion of the Collateral, in one or more sales, at
public or private sale, conducted by any agent of, or auctioneer or attorney for Secured Party, at Secured Party’s place of business
or elsewhere, or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery, and at such
price or prices, all as Secured Party may deem appropriate. Secured Party may be a purchaser at any such sale of any or all of the Collateral
so sold. In the event Secured Party is a purchaser at any such sale, Secured Party may apply to such purchase all or any portion of the
sums then due and owing by the Company to Secured Party under any of the Transaction Documents or otherwise, and the Secured Party may,
upon compliance with the terms of the sale, hold, retain and dispose of such property without further accountability to the Pledgor or
the Company therefore. Secured Party is authorized, in its absolute discretion, to restrict the prospective bidders or purchasers of
any of the Collateral at any public or private sale as to their number, nature of business and investment intention, including the restricting
of bidders or purchasers to one or more persons who represent and agree, to the satisfaction of Secured Party, that they are purchasing
the Collateral, or any part thereof, for their own account, for investment, and not with a view to the distribution or resale of any
of such Collateral.

 

(ii)
Upon any such sale, Secured Party shall have the right to deliver, assign and transfer to each purchaser thereof the Collateral so sold
to such purchaser. Each purchaser (including Secured Party) at any such sale shall, to the full extent permitted by law, hold the Collateral
so purchased absolutely free from any claim or right whatsoever, including, without limitation, any equity or right of redemption of
the Pledgor, who, to the full extent that it may lawfully do so, hereby specifically waives all rights of redemption, stay, valuation
or appraisal which she now has or may have under any rule of law or statute now existing or hereafter adopted.

 

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(iii)
At any such sale, the Collateral may be sold in one lot as an entirety, in separate blocks or individually as Secured Party may determine,
in its sole and absolute discretion. Secured Party shall not be obligated to make any sale of any Collateral if it shall determine in
its sole and absolute discretion, not to do so, regardless of the fact that notice of sale of such Collateral shall have been given.
Secured Party may, without notice or publication, adjourn any public or private sale from time to time by announcement at the time and
place fixed for such sale, or any adjournment thereof, and any such sale may be made at any time or place to which the same may be so
adjourned without further notice or publication.

 

(iv)
The Pledgor and the Company acknowledge that compliance with applicable federal and state securities laws (including, without limitation,
the Securities Act of 1933, as amended, blue sky or other state securities laws or similar laws now or hereafter existing analogous in
purpose or effect) might very strictly limit or restrict the course of conduct of Secured Party if Secured Party were to attempt to sell
or otherwise dispose of all or any part of the Collateral, and might also limit or restrict the extent to which or the manner in which
any subsequent transferee of any such securities could sell or dispose of the same. The Pledgor and the Company further acknowledge that
under applicable laws, Secured Party may be held to have certain general duties and obligations to the Pledgor, as pledgor of the Collateral,
or the Company, to make some effort toward obtaining a fair price for the Collateral even though the obligations of the Pledgor and the
Company may be discharged or reduced by the proceeds of sale at a lesser price. The Pledgor and the Company understand and agree that,
to the extent allowable under applicable law, Secured Party is not to have any such general duty or obligation to the Pledgor or the
Company, and neither the Pledgor nor the Company will attempt to hold Secured Party responsible for selling all or any part of the Collateral
at an inadequate price even if Secured Party shall accept the first offer received or does not approach more than one possible purchaser.
Without limiting their generality, the foregoing provisions would apply if, for example, Secured Party were to place all or any part
of such securities for private placement by an investment banking firm, or if such investment banking firm purchased all or any part
of such securities for its own account, or if Secured Party placed all or any part of such securities privately with a purchaser or purchasers.

 

(c)
To the extent that the net proceeds received by the Secured Party are insufficient to satisfy the Obligations in full, the Secured Party
shall be entitled to a deficiency judgment against the Company and any other Person obligated for the Obligations for such deficiency
amount. The Secured Party shall have the absolute right to sell or dispose of the Collateral, or any part thereof, in any manner it sees
fit and shall have no liability to the Pledgor, the Company, or any other party for selling or disposing of such Collateral even if other
methods of sales or dispositions would or allegedly would result in greater proceeds than the method actually used. The Company and any
other Person obligated for the Obligations shall remain liable for all deficiencies and shortfalls, if any, that may exist after the
Secured Party has exhausted all remedies hereunder.

 

(d)
Each right, power and remedy of the Secured Party provided for in this Agreement or any other Transaction Document shall be cumulative
and concurrent and shall be in addition to every other such right, power or remedy. The exercise or beginning of the exercise by the
Secured Party of any one or more of the rights, powers or remedies provided for in this Agreement or any other Transaction Documents,
or now or hereafter existing at law or in equity or by statute or otherwise, shall not preclude the simultaneous or later exercise by
the Secured Party of all such other rights, powers or remedies, and no failure or delay on the part of the Secured Party to exercise
any such right, power or remedy shall operate as a waiver thereof. No notice to or demand on the Pledgor in any case shall entitle it
to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Secured
Party to any other further action in any circumstances without demand or notice. The Secured Party shall have the full power to enforce
or to assign or contract its rights under this Agreement to a third party.

 

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(e)
In addition to all other remedies available to the Secured Party, upon the issuance of the Pledged Securities to the Secured Party after
an Event of Default, Pledgor and the Company each agree to: (i) take such action and prepare, distribute and/or file such documents and
papers, as are required or advisable in the opinion of Secured Party and/or its counsel, to permit the sale of the Pledged Securities,
whether at public sale, private sale or otherwise, including, without limitation, issuing, or causing its counsel to issue, any opinion
of counsel for Pledgor or the Company required to allow the Secured Party to sell the Pledged Securities or any other Collateral under
Rule 144; (ii) to bear all costs and expenses of carrying out its obligations under this Section 8(e), which shall be a part of the Obligations
secured hereby; and (iv) that there is no adequate remedy at law for the failure by the Pledgor and the Company to comply with the provisions
of this Section 8(e) and that such failure would not be adequately compensable in damages, and therefore agrees that its agreements contained
in this subsection may be specifically enforced.

 

11.
Concerning the Escrow Agent.

 

(a)
The Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no implied duties or obligations shall
be read into this Agreement against the Escrow Agent. Escrow Agent agrees to release any property held by it hereunder (the “Escrowed
Property”) in accordance with the terms and conditions set forth in this Agreement.

 

(b)
The Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine, may
assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, and may assume that any person
purporting to give any writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to do
so. The Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner, and execution, or validity
of any instrument deposited in this escrow, nor as to the identity, authority, or right of any person executing the same; and its duties
hereunder shall be limited to the safekeeping of the Escrowed Property, and for the disposition of the same in accordance with this Agreement.
Escrow Agent shall not be deemed to have knowledge of any matter or thing unless and until Escrow Agent has actually received written
notice of such matter or thing and Escrow Agent shall not be charged with any constructive notice whatsoever.

 

(c)
Escrow Agent shall hold in escrow, pursuant to this Agreement, the Escrowed Property actually delivered and received by Escrow Agent
hereunder, but Escrow Agent shall not be obligated to ascertain the existence of (or initiate recovery of) any other property that may
be part or portion of the Collateral, or to become or remain informed with respect to the possibility or probability of additional Collateral
being realized upon or collected at any time in the future, or to inform any parties to this Agreement or any third party with respect
to the nature and extent of any Collateral realized and received by Escrow Agent (except upon the written request of such party), or
to monitor current market values of the Collateral. Further, Escrow Agent shall not be obligated to proceed with any action or inaction
based on information with respect to market values of the Collateral which Escrow Agent may in any manner learn, nor shall Escrow Agent
be obligated to inform the parties hereto or any third party with respect to market values of any of the Collateral at any time, Escrow
Agent having no duties with respect to investment management or information, all parties hereto understanding and intending that Escrow
Agent’s responsibilities are purely ministerial in nature. Any reduction in the market value or other value of the Collateral while
deposited with Escrow Agent shall be at the sole risk of Pledgor and Secured Party. If all or any portion of the Escrowed Property is
in the form of a check or in any other form other than cash, Escrow Agent shall deposit same as required but shall not be liable for
the nonpayment thereof, nor responsible to enforce collection thereof.

 

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(d)
In the event instructions from Secured Party, Pledgor, or any other Person would require Escrow Agent to expend any monies or to incur
any cost, Escrow Agent shall be entitled to refrain from taking any action until it receives payment for such costs. It is agreed that
the duties of Escrow Agent are purely ministerial in nature and shall be expressly limited to the safekeeping of the Escrowed Property
and for the disposition of same in accordance with this Agreement. Secured Party, Pledgor and the Company, jointly and severally, each
hereby indemnifies Escrow Agent and holds it harmless from and against any and all claims, liabilities, damages, costs, penalties, losses,
actions, suits or proceedings at law or in equity, or any other expenses, fees or charges of any character or nature (collectively, the
“Claims”), which it may incur or with which it may be threatened, directly or indirectly, arising from or in
any way connected with this Agreement or which may result from Escrow Agent’s following of instructions from Secured Party, Pledgor
or the Company, and in connection therewith, indemnifies Escrow Agent against any and all expenses, including attorneys’ fees and
the cost of defending any action, suit, or proceeding or resisting any Claim, whether or not litigation is instituted, unless any such
Claims arise as a result of Escrow Agent’s gross negligence or willful misconduct. Escrow Agent shall be vested with a lien on
all Escrowed Property under the terms of this Agreement, for indemnification, attorneys’ fees, court costs and all other costs
and expenses arising from any suit, interpleader or otherwise, or other expenses, fees or charges of any character or nature, which may
be incurred by Escrow Agent by reason of disputes arising between Pledgor, the Company, Secured Party, or any third party as to the correct
interpretation of this Agreement, and instructions given to Escrow Agent hereunder, or otherwise, with the right of Escrow Agent, regardless
of the instruments aforesaid and without the necessity of instituting any action, suit or proceeding, to hold any property hereunder
until and unless said additional expenses, fees and charges shall be fully paid. Any fees and costs charged by the Escrow Agent for serving
hereunder shall be paid by the Pledgor and the Company, jointly and severally.

 

(e)
In the event Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims or demands from
Secured Party, the Company, Pledgor or from third persons with respect to the Escrowed Property, which, in Escrow Agent’s sole
opinion, are in conflict with each other or with any provision of this Agreement, Escrow Agent shall be entitled to refrain from taking
any action until it shall be directed otherwise in writing by Pledgor, the Company and Secured Party and said third persons, if any,
or by a final order or judgment of a court of competent jurisdiction. If any of the parties shall be in disagreement about the interpretation
of this Agreement, or about the rights and obligations, or the propriety of any action contemplated by the Escrow Agent hereunder, the
Escrow Agent may, at its sole discretion, deposit the Escrowed Property with a court having jurisdiction over this Agreement, and, upon
notifying all parties concerned of such action, all liability on the part of the Escrow Agent shall fully cease and terminate. The Escrow
Agent shall be indemnified by the Pledgor, the Company and Secured Party for all costs, including reasonable attorneys’ fees, in
connection with the aforesaid proceeding, and shall be fully protected in suspending all or a part of its activities under this Agreement
until a final decision or other settlement in the proceeding is received. In the event Escrow Agent is joined as a party to a lawsuit
by virtue of the fact that it is holding the Escrowed Property, Escrow Agent shall, at its sole option, either: (i) tender the Collateral
in its possession to the registry of the appropriate court; or (ii) disburse the Collateral in its possession in accordance with the
court’s ultimate disposition of the case, and Secured Party, the Company and Pledgor hereby, jointly and severally, indemnify and
hold Escrow Agent harmless from and against any damages or losses in connection therewith including, but not limited to, reasonable attorneys’
fees and court costs at all trial and appellate levels.

 

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(f)
The Escrow Agent may consult with counsel of its own choice (and the costs of such counsel shall be paid by the Pledgor, the Company
and Secured Party, jointly and severally) and shall have full and complete authorization and protection for any action taken or suffered
by it hereunder in good faith and in accordance with the opinion of such counsel. The Escrow Agent shall not be liable for any mistakes
of fact or error of judgment, or for any actions or omissions of any kind, unless caused by its willful misconduct or gross negligence.

 

(g)
The Escrow Agent may resign upon ten (10) days’ written notice to the parties in this Agreement. If a successor Escrow Agent is
not appointed by Secured Party and Pledgor within this ten (10) day period, the Escrow Agent may petition a court of competent jurisdiction
to name a successor.

 

(h)
Conflict Waiver. The Pledgor and each Company hereby acknowledges that the Escrow Agent is counsel to the Secured Party
in connection with the transactions contemplated and referred herein. The Pledgor and the Company agree that in the event of any dispute
arising in connection with this Agreement or otherwise in connection with any transaction or agreement contemplated and referred herein,
the Escrow Agent shall be permitted to continue to represent the Secured Party and neither the Pledgor, nor the Company, will seek to
disqualify such counsel and each of them waives any objection Pledgor or the Company might have with respect to the Escrow Agent acting
as the Escrow Agent pursuant to this Agreement. Pledgor, the Company and Secured Party acknowledge and agree that nothing in this Agreement
shall prohibit Escrow Agent from: (i) serving in a similar capacity on behalf of others; or (ii) acting in the capacity of attorneys
for one or more of the parties hereto in connection with any matter.

 

12.
Increase in Obligations. It is the intent of the parties to secure payment of the Obligations, as the amount of such Obligations
may increase from time to time in accordance with the terms and provisions of the Transaction Documents, and all of the Obligations,
as so increased from time to time, shall be and are secured hereby. Upon the execution hereof, Pledgor and the Company shall pay any
and all documentary stamp taxes and/or other charges required to be paid in connection with the execution and enforcement of the Transaction
Documents, and if, as and to the extent the Obligations are increased from time to time in accordance with the terms and provisions of
the Transaction Documents, then Pledgor and the Company shall immediately pay any additional documentary stamp taxes or other charges
in connection therewith.

 

13.
Irrevocable Authorization and Instruction. If applicable, Pledgor and the Company hereby authorize and instruct the transfer agent
for the Company (or transfer agents if there is more than one) to comply with any instruction received by it from Secured Party in writing
that: (i) states that an Event of Default hereunder exists or has occurred; and (b) is otherwise in accordance with the terms of this
Agreement, without any other or further instructions from Pledgor or the Company, and Pledgor and the Company agree that such transfer
agents shall be fully protected in so complying with any such instruction from Secured Party.

 

14.
Appointment as Attorney-in-Fact. The Company and Pledgor hereby irrevocably constitutes and appoints Secured Party and any officer
or agent of Secured Party, with full power of substitution, as its true and lawful attorney-in-fact, with full irrevocable power and
authority in the place and stead of Pledgor or the Company, as applicable, and in the name of Pledgor, the Company, or in the name of
Secured Party, as applicable, from time to time in the discretion of Secured Party, so long as an Event of Default hereunder exists,
for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents
and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, including any financing statements,
endorsements, assignments or other instruments of transfer. Pledgor and the Company each hereby ratify all that said attorneys shall
lawfully do or cause to be done pursuant to the power of attorney granted in this Section 14. All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable until the Obligations are paid and performed in full.

 

    	9

     

    

 

15.
Continuing Obligation of Pledgor and the Company. The obligations, covenants, agreements and duties of the Pledgor and the Company
under this Agreement shall in no way be affected or impaired by: (i) the modification or amendment (whether material or otherwise) of
any of the obligations of the Pledgor or the Company or any other Person, as applicable; (ii) the voluntary or involuntary bankruptcy,
assignment for the benefit of creditors, reorganization, or other similar proceedings affecting the Company, Pledgor or any other Person,
as applicable; (iii) the release of the Company, Pledgor or any other Person from the performance or observance of any of the agreements,
covenants, terms or conditions contained in any Transaction Documents, by the operation of law or otherwise, including the release of
the Company’s or Pledgor’s obligation to pay interest or attorney’s fees.

 

Pledgor
and the Company further agree that Secured Party may take other guaranties or collateral or security to further secure the Obligations,
and consent that any of the terms, covenants and conditions contained in any of the Transaction Documents may be renewed, altered, extended,
changed or modified by Secured Party or may be released by Secured Party, without in any manner affecting this Agreement or releasing
Pledgor herefrom, and Pledgor shall continue to be liable hereunder to pay and perform pursuant hereto, notwithstanding any such release
or the taking of such other guaranties, collateral or security. This Agreement is additional and supplemental to any and all other guarantees,
security agreements or collateral heretofore and hereafter executed by Pledgor and the Company for the benefit of Secured Party, whether
relating to the indebtedness evidenced by any of the Transaction Documents or not, and shall not supersede or be superseded by any other
document or guaranty executed by Pledgor, the Company or any other Person for any purpose. Pledgor and the Company hereby agree that
Pledgor, the Company, and any additional parties who may become liable for repayment of the sums due under the Transaction Documents,
may hereafter be released from their liability hereunder and thereunder; and Secured Party may take, or delay in taking or refuse to
take, any and all action with reference to any of the Transaction Documents (regardless of whether same might vary the risk or alter
the rights, remedies or recourses of Pledgor), including specifically the settlement or compromise of any amount allegedly due thereunder,
all without notice to, consideration to or the consent of the Pledgor, and without in any way releasing, diminishing or affecting in
any way the absolute nature of Pledgor’s obligations and liabilities hereunder.

 

No
delay on the part of the Secured Party in exercising any rights hereunder or failure to exercise the same shall operate as a waiver of
such rights. Pledgor and the Company hereby waives any and all legal requirements, statutory or otherwise, that Secured Party shall institute
any action or proceeding at law or in equity or exhaust its rights, remedies and recourses against Pledgor, the Company or anyone else
with respect to the Transaction Documents, as a condition precedent to bringing an action against Pledgor or the Company upon this Agreement
or as a condition precedent to Secured Party’s rights to sell the Pledged Securities or any other Collateral. Pledgor and the Company
agrees that Secured Party may simultaneously maintain an action upon this Agreement and an action or proceeding upon the Transaction
Documents. All remedies afforded by reason of this Agreement are separate and cumulative remedies and may be exercised serially, simultaneously
and in any order, and the exercise of any of such remedies shall not be deemed an exclusion of the other remedies and shall in no way
limit or prejudice any other contractual, legal, equitable or statutory remedies which Secured Party may have in the Pledged Securities,
any other Collateral, or under the Transaction Documents. Until the Obligations, and all extensions, renewals and modifications thereof,
are paid in full, and until each and all of the terms, covenants and conditions of this Agreement are fully performed, Pledgor shall
not be released by any act or thing which might, but for this provision of this Agreement, be deemed a legal or equitable discharge of
a surety, or by reason of any waiver, extension, modification, forbearance or delay of Secured Party or any obligation or agreement between
the Company or their successors or assigns, and the then holder of the Transaction Documents, relating to the payment of any sums evidenced
or secured thereby or to any of the other terms, covenants and conditions contained therein, and Pledgor hereby expressly waive and surrender
any defense to liability hereunder based upon any of the foregoing acts, things, agreements or waivers, or any of them. Pledgor and the
Company also waives any defense arising by virtue of any disability, insolvency, bankruptcy, lack of authority or power or dissolution
of Pledgor or the Company, even though rendering the Transaction Documents void, unenforceable or otherwise uncollectible, it being agreed
that Pledgor and the Company shall remain liable hereunder, regardless of any claim which Pledgor or the Company might otherwise have
against Secured Party by virtue of Secured Party’s invocation of any right, remedy or recourse given to it hereunder or under the
Transaction Documents. In addition, Pledgor waives and renounces any right of subrogation, reimbursement or indemnity whatsoever, and
any right of recourse to security for the Obligations of the Company to Secured Party, unless and until all of said Obligations have
been paid in full to Secured Party.

 

    	10

     

    

 

16.
Miscellaneous.

 

(a)
Performance for Pledgor or the Company. The Pledgor and the Company agree and hereby acknowledge that Secured Party may, in Secured
Party’s sole discretion, but Secured Party shall not be obligated to, whether or not an Event of Default shall have occurred, advance
funds on behalf of the Company or Pledgor, without prior notice to the Pledgor or the Company, in order to insure the Company’s
and Pledgor’s compliance with any covenant, warranty, representation or agreement of the Pledgor or the Company made in or pursuant
to this Agreement or the other Transaction Documents, to continue or complete, or cause to be continued or completed, performance of
the Pledgor’s and the Company’s obligations under any contracts of the Pledgor or the Company, or to preserve or protect
any right or interest of Secured Party in the Collateral or under or pursuant to this Agreement or the other Transaction Documents; provided,
however, that the making of any such advance by Secured Party shall not constitute a waiver by Secured Party of any Event of Default
with respect to which such advance is made, nor relieve the Pledgor or the Company of any such Event of Default. The Pledgor and the
Company, respectively and as applicable, shall pay to Secured Party upon demand all such advances made by Secured Party with interest
thereon at the highest rate permitted by applicable law. All such advances shall be deemed to be included in the Obligations and secured
by the security interest granted Secured Party hereunder; provided, however, that the provisions of this Subsection shall survive the
termination of this Agreement and Secured Party’s security interest hereunder and the payment of all other Obligations.

 

(b)
Applications of Payments and Collateral. Except as may be otherwise specifically provided in this Agreement or the other Transaction
Documents, all Collateral and proceeds of Collateral coming into Secured Party’s possession may be applied by Secured Party (after
payment of any costs, fees and other amounts incurred by Secured Party in connection therewith) to any of the Obligations, whether matured
or unmatured, as Secured Party shall determine in its sole discretion. Any surplus held by the Secured Party and remaining after the
indefeasible payment in full in cash of all of the Obligations shall be paid over to whomsoever shall be lawfully entitled to receive
the same or as a court of competent jurisdiction shall direct. In the event that the proceeds of any such sale, collection or realization
are insufficient to pay all amounts to which the Secured Party is legally entitled, the Company shall be liable for the deficiency, together
with interest thereon at the highest rate permitted by applicable law, together with the costs of collection and the reasonable fees,
costs, expenses and other client charges of any attorneys employed by the Secured Party to collect such deficiency.

 

    	11

     

    

 

(c)
Waivers by Pledgor and the Company. The Company and the Pledgor hereby waives, to the extent the same may be waived under applicable
law: (i) notice of acceptance of this Agreement; (ii) all claims and rights of the Pledgor and the Company against Secured Party on account
of actions taken or not taken by Secured Party in the exercise of Secured Party’s rights or remedies hereunder, under any other
Transaction Documents or under applicable law; (iii) all claims of the Pledgor and the Company for failure of Secured Party to comply
with any requirement of applicable law relating to enforcement of Secured Party’s rights or remedies hereunder, under the other
Transaction Documents or under applicable law; (iv) all rights of redemption of the Pledgor with respect to the Collateral; (v) in the
event Secured Party seeks to repossess any or all of the Collateral by judicial proceedings, any bond(s) or demand(s) for possession
which otherwise may be necessary or required; (vi) presentment, demand for payment, protest and notice of non-payment and all exemptions
applicable to any of the Collateral or the Pledgor or the Company; (vii) any and all other notices or demands which by applicable law
must be given to or made upon the Pledgor or the Company by Secured Party; (viii) settlement, compromise or release of the obligations
of any person or entity primarily or secondarily liable upon any of the Obligations; (ix) all rights of the Pledgor or the Company to
demand that Secured Party release account debtors or other persons or entities liable on any of the Collateral from further obligation
to Secured Party; and (x) substitution, impairment, exchange or release of any Collateral for any of the Obligations. The Pledgor and
the Company agree that Secured Party may exercise any or all of its rights and/or remedies hereunder and under any other Transaction
Documents and under applicable law without resorting to and without regard to any Collateral or sources of liability with respect to
any of the Obligations.

 

(d)
Waivers by Secured Party. No failure or any delay on the part of Secured Party in exercising any right, power or remedy hereunder
or under any other Transaction Documents or under applicable law, shall operate as a waiver thereof.

 

(e)
Secured Party’s Setoff. Secured Party shall have the right, in addition to all other rights and remedies available to it,
following an Event of Default, to set off against any Obligations due Secured Party, any debt owing to the Pledgor or the Company by
Secured Party.

 

(f)
Modifications, Waivers and Consents. No modifications or waiver of any provision of this Agreement or any other Transaction Documents,
and no consent by Secured Party to any departure by the Pledgor or the Company therefrom, shall in any event be effective unless the
same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which
given, and any single or partial written waiver by Secured Party of any term, provision or right of Secured Party hereunder shall only
be applicable to the specific instance to which it relates and shall not be deemed to be a continuing or future waiver of any other right,
power or remedy. No notice to or demand upon the Pledgor or the Company in any case shall entitle Pledgor or the Company to any other
or further notice or demand in the same, similar or other circumstances.

 

(g)
Notices. All notices of request, demand and other communications hereunder shall be addressed, sent and deemed delivered in accordance
with the Purchase Agreement, including delivery of any such notices or communications to the Pledgor on behalf of the Company, which
the Company hereby agrees and acknowledges shall be valid and effective notice to the Company hereunder.

 

(h)
Applicable Law and Consent to Jurisdiction. The Pledgor, the Company and the Secured Party each irrevocably agrees that any dispute
arising under, relating to, or in connection with, directly or indirectly, this Agreement or related to any matter which is the subject
of or incidental to this Agreement (whether or not such claim is based upon breach of contract or tort) shall be subject to the exclusive
jurisdiction and venue of the state and/or federal courts located in New York City, New York; provided, however, Secured Party may, at
Secured Party’s sole option, elect to bring any action in any other jurisdiction. This provision is intended to be a “mandatory”
forum selection clause and governed by and interpreted consistent with New York law. The Pledgor, the Company and Secured Party each
hereby consents to the exclusive jurisdiction and venue of any state or federal court having its situs in said county (or to any other
jurisdiction or venue, if Secured Party so elects), and each waives any objection based on forum non conveniens. The Pledgor and the
Company each hereby waives personal service of any and all process and consent that all such service of process may be made by certified
mail, return receipt requested, directed to the Pledgor or the Company, as applicable, as set forth herein and in the manner provided
by applicable statute, law, rule of court or otherwise. This Agreement shall be construed in accordance with the laws of the State of
New York, without regard to the principles of conflicts of laws.

 

    	12

     

    

 

(i)
Survival: Successors and Assigns. All covenants, agreements, representations and warranties made herein shall survive the execution
and delivery hereof, and shall continue in full force and effect until all Obligations have been paid in full, there exists no commitment
by Secured Party which could give rise to any Obligations. Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the successors and assigns of such party. In the event that Secured Party assigns this Agreement
and/or its security interest in the Collateral, such assignment shall be binding upon and recognized by the Pledgor. All covenants, agreements,
representations and warranties by or on behalf of the Pledgor or the Company which are contained in this Agreement shall inure to the
benefit of Secured Party, its successors and assigns. Neither the Pledgor, nor the Company, may assign this Agreement or delegate any
of their respective rights or obligations hereunder, without the prior written consent of Secured Party, which consent may be withheld
in Secured Party’s sole and absolute discretion.

 

(j)
Severability. If any term, provision or condition, or any part thereof, of this Agreement shall for any reason be found or held
invalid or unenforceable by any court or governmental authority of competent jurisdiction, such invalidity or unenforceability shall
not affect the remainder of such term, provision or condition nor any other term, provision or condition, and this Agreement shall survive
and be construed as if such invalid or unenforceable term, provision or condition had not been contained therein.

 

(k)
Merger and Integration. This Agreement and the other Transaction Documents contain the entire agreement of the parties hereto
with respect to the matters covered and the transactions contemplated hereby, and no other agreement, statement or promise made by any
party hereto, or by any employee, officer, agent or attorney of any party hereto, which is not contained herein shall be valid or binding.

 

(l)
WAIVER OF JURY TRIAL. THE PLEDGOR AND THE COMPANY EACH HEREBY: (i) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE
TRIABLE OF RIGHT BY A JURY; AND (ii) WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE PLEDGOR, ANY COMPANY AND SECURED PARTY
MAY BE PARTIES, ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY PERTAINING TO THIS AGREEMENT, AND/OR ANY TRANSACTIONS, OCCURRENCES,
COMMUNICATIONS, OR UNDERSTANDINGS (OR THE LACK OF ANY OF THE FOREGOING) RELATING IN ANY WAY TO DEBTOR-CREDITOR RELATIONSHIP BETWEEN THE
PARTIES. IT IS UNDERSTOOD AND AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH
ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT. THIS WAIVER OF JURY TRIAL IS SEPARATELY
GIVEN, KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE PLEDGOR AND THE COMPANY AND THE PLEDGOR AND THE COMPANY HEREBY AGREE THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR
NULLIFY ITS EFFECT. SECURED PARTY IS HEREBY AUTHORIZED TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER
AND THE PLEDGOR, THE COMPANY AND SECURED PARTY, SO AS TO SERVE AS CONCLUSIVE EVIDENCE OF SUCH WAIVER OF RIGHT TO TRIAL BY JURY. THE PLEDGOR
AND THE COMPANY REPRESENT AND WARRANT THAT EACH OF THEM HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS
WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND/OR THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH
COUNSEL.

 

    	13

     

    

 

(m)
Execution. This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed and considered
one and the same Agreement. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format file or other similar format file, such signature shall be deemed an original for all purposes and shall create a valid and binding
obligation of the party executing same with the same force and effect as if such facsimile or “.pdf” signature page was an
original thereof.

 

(n)
Headings. The headings and sub-headings contained in the titling of this Agreement are intended to be used for convenience only
and shall not be used or deemed to limit or diminish any of the provisions hereof.

 

(o)
Gender and Use of Singular and Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or plural,
as the identity of the party or parties or their personal representatives, successors and assigns may require.

 

(p)
Further Assurances. The parties hereto will execute and deliver such further instruments and do such further acts and things as
may be reasonably required to carry out the intent and purposes of this Agreement, including the execution and filing of UCC-1 Financing
Statements in any jurisdiction as Secured Party may require.

 

(q)
Time is of the Essence. The parties hereby agree that time is of the essence with respect to performance of each of the parties’
obligations under this Agreement. The parties agree that in the event that any date on which performance is to occur falls on a Saturday,
Sunday or state or national holiday, then the time for such performance shall be extended until the next business day thereafter occurring.

 

(r)
Joint Preparation. The preparation of this Agreement has been a joint effort of the parties and the resulting documents shall
not, solely as a matter of judicial construction, be construed more severely against one of the parties than the other.

 

(s)
Prevailing Party. If any legal action or other proceeding is brought for the enforcement of this Agreement or any other Transaction
Documents, or because of an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement
or any other Transaction Documents, the successful or prevailing party or parties shall be entitled to recover from the non-prevailing
party, reasonable attorneys’ fees, court costs and all expenses, even if not taxable as court costs (including, without limitation,
all such fees, costs and expenses incident to appeals), incurred in that action or proceeding, in addition to any other relief to which
such party or parties may be entitled.

 

    	14

     

    

 

(t)
Costs and Expenses. The Pledgor and the Company, jointly and severally, agree to pay to the Secured Party, upon demand, the amount
of any and all costs and expenses, including the reasonable fees, costs, expenses and disbursements of counsel for the Secured Party
and of any experts and agents, which the Secured Party may incur in connection with: (i) the preparation, negotiation, execution, delivery,
recordation, administration, amendment, waiver or other modification or termination of this Agreement; (ii) the custody, preservation,
use or operation of, or the sale of, collection from, or other realization upon, any Collateral; (iii) the exercise or enforcement of
any of the rights of the Secured Party hereunder; or (iv) the failure by the Pledgor or the Company to perform or observe any of the
provisions hereof. Included in the foregoing shall be the amount of all expenses paid or incurred by Secured Party in consulting with
counsel concerning any of its rights hereunder, under any Transaction Documents or under applicable law, as well as such portion of Secured
Party’s overhead as Secured Party shall allocate to collection and enforcement of the Obligations in Secured Party’s sole
but reasonable discretion. All such costs and expenses shall bear interest from the date of outlay until paid, at the highest rate allowed
by law. The provisions of this Subsection shall survive the termination of this Agreement and Secured Party’s security interest
hereunder and the payment of all Obligations.

 

(u)
Joint and Several Liability. The liability of Pledgor shall be joint and several with the liability of the Company and any other
Person liable for the Obligations.

 

[Signatures
on the following page]

 

    	15

     

    

 

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

 

    	16Exhibit
10.7

 

 

NEXT
FRONTIER PHARMACEUTICALS, INC.

 

SECURITY
AGREEMENT 

 

(BORROWER)

 

This
Security Agreement (this “Agreement”) is made and entered into
as of December __, 2021, 2021, by and among Next Frontier Pharmaceuticals, Inc.,
a Delaware corporation (the “Company”) and the holders of the Company’s Secured Note (the “Note”)
issued from time to time under the Purchase Agreement (defined below) (the “Secured Party”). This Agreement is being
executed and delivered by the Company and the Secured Party in connection with that certain Secured Note Purchase Agreement, dated as
of the date first set forth above (the “Purchase Agreement”), by and among the Company and the Secured Party. Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement.

 

Whereas,
the Secured Party has agreed to purchase from the Company, and the Company has agreed to sell to the Secured Party, the Note, pursuant
to the terms of the Purchase Agreement;

 

Whereas,
the Company shall derive substantial direct and/or indirect benefits from the transactions contemplated by the Purchase Agreement; and

 

Whereas,
in order to induce the Secured Party to extend the loan evidenced by the Note, the Company has agreed to execute and deliver to the Secured
Party this Agreement to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under
the Note.

 

Now,
Therefore, in consideration of the foregoing, the
covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Secured Party hereby agree as follows.

 

1.
Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used
but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel paper”,
“commercial tort claim”, “deposit account”, “document”, “equipment”, “fixtures”,
“general intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “proceeds” and “supporting obligations”) shall have the respective meanings
given such terms in Article 9 of the UCC.

 

1.1.
“Collateral” means and includes all assets and property of the Company, including, without limitation, any and
all of the Company’s right, title, or interest, now owned or later acquired by the Company, wherever located, in or to the following:

 

(a)
All of the Company’s accounts, accounts receivables, contract rights, and general intangibles, including, without limitation,
any and all franchise rights, leasehold interests, rights as lienholder, all present and future income, revenues, profits, rents, and
causes of action, promissory notes, instruments, proceeds, and any other right to payment, including without limitation, payment of insurance
proceeds, refunds, rebates, and credits, payments due under warranties or guarantees, and payment due for condemnation of property, good
will, trademarks, trade names, trade secrets, patents, patent rights, licensing rights and income, royalties, copyrights, customer lists,
business, accounting and customer records, including electronically stored data and metadata;

 

    	1

     

    

 

(b)
All goods, including, without limitation, equipment, machinery, tools, materials, parts and supplies, furniture, furnishings, computers
and related accessories and equipment, appliances, and vehicles of all kinds;

 

(c)
All inventory, including without limitation, all merchandise and goods held for sale or lease, promotional catalogs and marketing
materials, and all parts and supplies of all kinds;

 

(d)
All documents, deposit accounts, negotiable and nonnegotiable instruments, chattel paper, stocks, bonds, securities and investment
property of any kind, documents of title, moneys held or to be collected, and letters of credit;

 

(e)
All Intellectual Property;

 

(f)
All (i) accounts, deposit accounts, general intangibles, instruments, investment property, or other personal property at any time
constituting, evidencing, or arising under or with respect to Intellectual Property, (ii) commercial tort claims related to Intellectual
Property; (iii) books, records, information, and data with respect to Intellectual Property; and (iv) substitutions and replacements
for any such property; and

 

(g)
All proceeds from any of the property described above, including without limitation, insurance proceeds, awards in any eminent domain
proceeding or settlement, proceeds of any noncommercial tort cause of action or settlement, and all replacements, substitutions, returns,
additions, or renewals of same.

 

Notwithstanding
the foregoing, none of the following items will be included in the Collateral: (i) assets if the granting of a security interest in such
asset would be prohibited by applicable law (but proceeds and receivables thereof, the assignment of which is expressly deemed effective
under the UCC, shall not be deemed excluded from the Collateral regardless such prohibition),; (ii) any property and assets, the pledge
of which would require approval, license or authorization of any governmental body, unless and until such consent, approval, license
or authorization shall have been obtained or waived; (iii) assets in circumstances where the Secured Party reasonably determines that
the cost, burden or consequences (including adverse tax consequences) of obtaining or perfecting a security interest in such assets is
excessive in relation to the practical benefit afforded thereby; provided, however, that to the extent permitted by applicable
law, this Agreement shall create a valid security interest in such asset and, to the extent permitted by applicable law, this Agreement
shall create a valid security interest in the proceeds of such asset.

 

1.2.
“Indebtedness” means, without duplication, with respect to any Person (the “Subject Person”),
all liabilities, obligations and indebtedness of the Subject Person to any other Person, of any kind or nature, now or hereafter owing,
arising, due or payable, howsoever evidenced, created, incurred, acquired or owing, whether primary, secondary, direct, contingent, fixed
or otherwise, consisting of indebtedness for borrowed money or the deferred purchase price of property, excluding purchases of property,
product, merchandise and services in the ordinary course of business, but including (a) all obligations and liabilities under guarantees,
(b) the present value of lease payments due under synthetic leases, and (c) all obligations and liabilities under any asset securitization
or sale/leaseback transaction; provided, however, that in no event shall the term Indebtedness include the capital stock surplus, retained
earnings, minority interests in the common stock of Subsidiaries, lease obligations (other than pursuant to (b) above), reserves for
deferred income taxes and investment credits, other deferred credits or reserves.

 

    	2

     

    

 

1.3.
“Intellectual Property” means (a) all United States or foreign copyrights, whether registered or unregistered,
whether in published or unpublished works of authorship, copyright registrations or applications in any intellectual property filing
office, copyright renewals or extensions, and rights throughout the world analogous to the foregoing (collectively, “Copyrights”);
(b) all United States or foreign issued patents (whether utility, design, or plant), patent applications, or certificates of invention
in any intellectual property filing office, continuations, continuations-in-part, divisions, extensions, reissuances, or reexaminations
of a patent or patent application in any intellectual property filing office, inventions described and claimed in any patent or patent
application, and rights throughout the world analogous to the foregoing (collectively, “Patents”); (c) all United
States or foreign trademarks, service marks, certification marks, trade names, or other types of source identifier, whether arising under
a statute or under common law, and whether registered or unregistered, corporate and company names, business names, trade styles, designs,
logos, or trade dress, the goodwill of the business connected with the use of or symbolized by the trademark or service mark, any registrations,
renewals, applications, and other filings for any trademarks in any intellectual property filing office, and rights throughout the world
analogous to the foregoing (collectively, “Trademarks”); (d) all Internet domain names (“Domain Names”);
(e) all intellectual property recognized under or established by the laws of any jurisdiction other than a Copyright, Patent, Trademark,
or Domain Name, whether statutory or common law, registered or unregistered, published or unpublished, including (i) a mask work (a layered
blueprint of the circuitry in a computer chip), (ii) a trade secret or other proprietary or confidential information or data, (iii) rights
with respect to software, programming codes, inventions, technical information, databases, procedures, formulas, designs, design registrations,
know-how, data and databases, processes, models, drawings, plans, specifications, and records, and (iv) rights of publicity and privacy
with respect to natural persons (collectively, “Other Intellectual Property”); (f) all agreements, whether or not
styled as a “license,” that grant a person an exclusive or nonexclusive license or other right to use or exercise rights
in intellectual property or that obligate a person to refrain from using or enforcing any intellectual property, including settlements,
consents-to-use, non-assertion agreements, and covenants-not-to-sue (collectively, “IP Licenses”); and (g) with respect
to any Copyright, Patent, Trademark, Domain Name, Other Intellectual Property, or IP License, all rights to royalties, revenues, income,
or other payments arising therefrom, and all other accrued and unaccrued causes of action (whether in contract, tort, or otherwise) or
rights to claim, sue or collect damages for, or enjoin or obtain other legal or equitable relief for, an infringement, misuse, misappropriation,
dilution, violation, unfair competition, or other impairment (whether past, present, or future) thereof, including expired items (collectively,
“IP Related Rights”).

 

1.4.
“Liens” means any lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other
restriction, other than restrictions imposed by securities laws.

 

1.5.
“Majority in Interest” shall mean the holders of fifty-one percent (51%) or more of the then outstanding principal
amount of all then outstanding Note at the time of such determination.

 

1.6.
“Material Adverse Effect” shall have the meaning ascribed to such term in Section 2.6 of the Purchase Agreement.

 

1.7.
“Obligations” means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint
or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company to the Secured
Party, including, without limitation, all obligations under this Agreement and the Note, whether now or hereafter existing, voluntary
or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and
whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations
or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from the Secured
Party as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified
from time to time. Without limiting the generality of the foregoing, the term “Obligations” shall include, without
limitation: (a) principal of, and interest on the Note and the loans extended pursuant thereto; (b) any and all other fees, indemnities,
costs, obligations and liabilities of the Company from time to time under or in connection with this Agreement or the Note; and (c) all
amounts (including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that
the obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving the Company.

 

    	3

     

    

 

1.8.
“Permitted Indebtedness” means (a) Indebtedness incurred by the Company that is made expressly subordinate by
the Holder in right of payment to the Indebtedness evidenced by the Note; (b) Indebtedness secured by Permitted Liens, including without
limitation Indebtedness incurred in connection with arrangements contemplated by clauses (e) through (g) of the definition of the term
“Permitted Liens”; (c) Indebtedness to trade creditors or for professional services incurred in the ordinary course of business;
(d) extensions, refinancings and renewals of any items of Permitted Indebtedness described above, provided that the principal amount
is not increased or the terms modified to impose more burdensome terms upon the Company or its Subsidiaries, as the case may be; and
(e) Indebtedness outstanding immediately prior to the execution of this Agreement listed in Schedule II attached hereto. Permitted
Indebtedness shall include, without limitation, (i) the principal amount of such Indebtedness, (ii) unpaid accrued interest thereon,
and (iii) subject to clause (d) of this definition, all other obligations of the Company arising out of the Permitted Indebtedness now
existing or hereafter arising, together with all costs of collecting such obligations (including attorneys’ fees), including, without
limitation, all interest accruing after the commencement by or against the Company of any bankruptcy, reorganization or similar proceeding.

 

1.9.
“Permitted Liens” means (a) any Lien for taxes not yet due or delinquent or being contested in good faith, (b)
any statutory Lien arising in the ordinary course of business by operation of law with respect to a liability that is not yet due or
delinquent, (c) any Lien created by operation of law, such as materialmen’s liens, mechanics’ liens and other similar liens,
arising in the ordinary course of business with respect to a liability that is not yet due or delinquent or that are being contested
in good faith, (d) Liens securing the Company’s obligations under the Note, (e) Liens (i) upon or in any equipment acquired or
held by the Company or any of its Subsidiaries to secure the purchase price of such equipment or indebtedness incurred solely for the
purpose of financing the acquisition or lease of such equipment, or (ii) existing on such equipment at the time of its acquisition, provided
that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment, (f) any Lien
securing debt obligations consisting of working capital credit facilities, whether or not revolving, obtained on commercially reasonable
terms and secured only by the Company’s and/or its Subsidiaries’ accounts receivable and/or inventory; (g) Liens in existence
immediately prior to the execution of this Agreement; (h) Liens securing Permitted Indebtedness; (i) leases or subleases and licenses
and sublicenses granted to others in the ordinary course of the Company’s business, not interfering in any material respect with
the business of the Company and its Subsidiaries taken as a whole, (j) Liens in favor of customs and revenue authorities arising as a
matter of law to secure payments of custom duties in connection with the importation of goods, (k) Liens arising from judgments, decrees
or attachments in circumstances not constituting an Event of Default (as defined below), and (l) Liens incurred in connection with the
extension, renewal or refinancing of the indebtedness secured by Liens of the type described above, provided that any extension, renewal
or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being
extended, renewed or refinanced does not increase.

 

1.10.
“Person” means and includes an individual, a partnership, a corporation (including a business trust), a joint
stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental authority.

 

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1.11.
“Security Agent” means the Person appointed in writing by the Majority in Interest in accordance with the provisions
of this Agreement to enforce the rights and remedies of the Secured Party, subject to the terms and conditions of this Agreement.

 

1.12.
“Subsidiary” means, in respect of any Person, any corporation, association, partnership or other business entity
of which more than 50% of the total voting power of shares of capital stock or other interests (including partnership interests) entitled
(without regard to the occurrence of any contingency) to vote in the election of directors, managers, general partners or trustees thereof
is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such
Person; or (iii) one or more Subsidiaries of such Person.

 

1.13.
“Transaction Agreements” means this Agreement, the Purchase Agreement, the Note issued pursuant to the Purchase
Agreement.

 

1.14.
“UCC” means the Uniform Commercial Code of the State of New York and or any other applicable law of any state
or states which has jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time.

 

2.
Collateral; Obligations Secured.

 

2.1.
Grant and Description. In order to secure the full and complete payment and performance of the Obligations when due, the Company
hereby grants to the Secured Party, subject to the Permitted Liens, a first priority security interest in all of the Company’s
rights, titles, and interests in and to the Collateral (the “Security Interest”) and subject to the Permitted Liens,
pledges, collaterally transfers, and assigns the Collateral to the Secured Party, all upon and subject to the terms and conditions of
this Security Agreement; provided, however, that the Secured Party shall subordinate from time to time upon the Company’s
request its Security Interests granted in such Collateral to any Lien(s) granted by the Company or any of its Subsidiaries to unaffiliated
third parties which constitutes Permitted Liens contemplated within clauses (e) through (g) of the definition of Permitted Liens. If
the grant, pledge, or collateral transfer or assignment of any specific item of the Collateral is expressly prohibited by any contract
or by law, then the Security Interest created hereby nonetheless remains effective to the extent allowed by the UCC or other applicable
laws. The Security Interest granted herein shall terminate in accordance with Section 9.1 hereof.

 

2.2.
Financing Statements; Further Assurances.

 

(a)
The Secured Party hereby: (i) will designate a representative of the Secured Party (the “Representative”) to act
on behalf of the Secured Party as their representative in accordance with the terms of the Security Agreement with respect to the filing
of any initial financing statements and amendments thereto, and any termination statements thereof; (ii) agree and consent that the Representative
be named as the sole secured party on any and all financing statements and security agreements filed pursuant to this Security Agreement
for the ratable benefit of the Secured Party; and (iii) agree that the Representative is authorized to file any and all terminations
of such financing statements at such time or times as it determines is appropriate pursuant to the Security Agreement.

 

(b)
The Company hereby authorizes the Secured Party to, at the Secured
Party’s option and without any obligation to do so, and regardless of whether the Collateral is in possession of the Secured Party:

 

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(i)
File or record any document necessary, convenient, required or reasonably advisable to perfect, continue, amend or terminate the
security interest created under this Agreement, including, without limitation, any financing statements, pledge, mortgage, trust, assignments
of credits including amendments, authorized to be filed under the UCC. The Company hereby consents to the filing of any documents previously
filed or recorded by the Secured Party regarding the Collateral, including, without limitation, any and all previously filed financing
statements;

 

(ii)
Enter the Company’s properties or facilities to inspect the Collateral at any reasonable time, provided that the Secured Party
gives the Company notice within no more than seven (7) days nor less than twenty-four (24) hours of any inspection; however, no notice
shall be required for any entry by the Secured Party in connection with the exercise of any available remedy upon breach of this Agreement;
and

 

(iii)
Pay any costs reasonably necessary to obtain, preserve, maintain, defend and enforce the security interest created under this Agreement,
and pay any amounts reasonably necessary to discharge encumbrances, maintain adequate insurance coverage and maintain compliance with
applicable laws and ordinances affecting the Collateral, including, without limitation, the payment of taxes, assessments, and other
charges required by law or contract, reasonable attorney fees and legal expenses and expenses associated with sale, repair or storage
of all or any of the Collateral. Debtor agrees to reimburse the Secured Party on demand for any such payments made or costs incurred
by the Secured Party and that such reimbursement obligation shall be a part of the Obligations.

 

(c)
Until the Obligations are paid and performed in full, the Company covenants and agrees that it will, at its own expense and upon
the reasonable request of the Majority in Interest or the Security Agent if one has been duly appointed at such time, but in all cases
subject to the rights of the grantees of the Permitted Liens: (i) after an Event of Default, file or cause to be filed such applications
and take such other actions as the Majority in Interest or a duly appointed Security Agent may reasonably request to obtain the consent
or approval of any governmental authority to the rights of the Secured Party and the Security Agent hereunder, including, without limitation,
the right to sell all the Collateral upon an Event of Default without additional consent or approval from such governmental authority;
(ii) from time to time, either before or after an Event of Default, promptly execute and deliver to the duly appointed Security Agent
all such other assignments, certificates, supplemental documents, and financing statements, and do all other acts or things as the Majority
in Interest or duly appointed Security Agent may reasonably request in order to more fully create, evidence, perfect, continue, and preserve
the priority of the Security Interest and to carry out the provisions of this Agreement; and (iii) either before or after an Event of
Default, pay all filing fees in connection with any financing, continuation, or termination statement or other instrument with respect
to the Security Interest.

 

3.
Covenants of the Company.

 

3.1.
Duties of the Company Regarding Collateral. At all times from and after the date hereof and until the Note have been paid in full
or this Agreement is sooner terminated, the Company agrees that it shall:

 

(a)
Preserve the Collateral in good condition and order (ordinary wear and tear excepted) and not permit it to be abused or misused;

 

(b)
Not allow any of the Collateral to be affixed to real estate, except for any property deemed to be fixtures;

 

(c)
Maintain good and complete title to the Collateral subject only to Permitted Liens;

 

    	6

     

    

 

(d)
Keep the Collateral free and clear at all times of all Liens other than Permitted Liens;

 

(e)
Take or cause to be taken such acts and actions as shall be necessary or appropriate to assure that the Secured Party’s security
interest in the Collateral (other than the Permitted Liens) shall not become subordinate or junior to the security interests, Liens or
claims of any other Person;

 

(f)
Except as permitted pursuant to this Agreement, refrain from selling, assigning or otherwise disposing of any of the Collateral or
moving or removing any of the Collateral, without obtaining the prior written consent of the Majority in Interest, or until all of the
Obligations have been fully performed and paid in full; provided, however, that concurrently with any disposition permitted by
this Section 3.1(f), (A) the security interest granted hereby shall automatically be released from the Collateral so disposed, and (B)
the security interest shall continue in the Proceeds (as defined in the UCC) of such Collateral or any property purchased with such Proceeds;
and provided further, that, the Secured Party shall execute and deliver, at the Company’s sole cost and expense, any releases
or other documents reasonably requested by the Company, that is in form and substance reasonably acceptable to the executing party, confirming
the release of the security interest in that portion of the Collateral that is the subject of a disposition permitted by this Section
3.1(f);

 

(g)
Promptly provide to the Secured Party such financial statements, reports, lists and schedules related to the Collateral and any other
information relating to the Collateral as the Majority in Interest may reasonably request from time to time;

 

(h)
Maintain, at the place where the Company is entitled to receive notices under the Note, a current record of where all material Collateral
is located, permit representatives of the duly appointed Security Agent at any time, upon reasonable prior written notice during normal
business hours to inspect and make abstracts from such records (provided, that so long as no Event of Default exists, the Security
Agent shall conduct such inspections no more frequently than semi-annually);

 

(i)
Promptly notify the Secured Party if any Event of Default (as hereinafter defined) occurs; and

 

(j)
In accordance with prudent business practices, endeavor to collect or cause to be collected from each account debtor under its accounts,
as and when due, any and all amounts owing under such accounts.

 

For
purposes of clarity, nothing in this Agreement, including without limitation the restrictions set forth in Section 3.1(f) of this Agreement,
shall be construed as restricting the Company and its Subsidiaries from (i) granting licenses or sublicenses to any of the Collateral
which constitutes Intellectual Property; (ii) from licensing or selling, directly or indirectly, any inventory or other property sold
or disposed of in the ordinary course of business and on ordinary business terms); (iii) from engaging in joint ventures, strategic alliances
or other similar arrangements for bona fide business purposes consistent with industry practices; or (iv) from entering into transactions
contemplated by the definition of Permitted Liens.

 

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3.2.
Duties with Respect to Intellectual Property. At all times from and after the date hereof and until the Note has been paid in full
or this Agreement is sooner terminated, the Company agrees that it shall:

 

(a)
Except to the extent that failure to act is not reasonably be expected to have a Material Adverse Effect, take all commercially reasonable
steps necessary to (x) maintain the validity and enforceability of any Intellectual Property in full force and effect and (y) pursue
the application, obtain the relevant registration and maintain the registration of each of its patents, trademarks and copyrights, including,
without limitation, by the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and
Trademark Office, the U.S. Copyright Office or other governmental authorities, the filing of applications for renewal or extension, the
filing of affidavits, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions, the
payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation
proceedings.

 

(b)
Except to the extent that failure to act is not reasonably be expected to have a Material Adverse Effect, not do or permit any act
or knowingly omit to do any act whereby any of its Intellectual Property may lapse, be terminated, or become invalid or unenforceable
or placed in the public domain (or in case of a trade secret, lose its competitive value).

 

(c)
Except to the extent that failure to act is not reasonably be expected to have a Material Adverse Effect, take all commercially reasonable
steps to preserve and protect each item of its Intellectual Property, including, without limitation, maintaining the quality of any and
all products or services used or provided in connection with any of the trademarks, consistent with the quality of the products and services
as of the date hereof, and taking all commercially reasonable steps necessary to ensure that all licensed users of any of the Trademarks
abide by the applicable license’s terms with respect to the standards of quality.

 

Notwithstanding
the foregoing provisions of this Section 3.2 or anything to the contrary elsewhere in this Security Agreement, nothing in this Security
Agreement shall prevent the Company or its Subsidiaries from discontinuing the use or maintenance of any of its Intellectual Property,
the enforcement of its license agreements or the pursuit of actions against infringers, if they determine in its reasonable business
judgment that such discontinuance is desirable in the conduct of its business.

 

3.3.
Other Encumbrances. At all times after the date hereof and until such time as there are no Obligations due to the Secured Party or
this Agreement is sooner terminated, the Company shall, subject to the rights of the holders of the Permitted Liens: (i) defend its title
to, and the Secured Party’s interest in, the Collateral against all claims, (ii) take any action necessary to remove any encumbrances
on the Collateral other than Permitted Liens, and (iii) defend the right, title and interest of the Secured Party in and to any of the
Company’s rights in the Collateral.

 

3.4.
Change Name or Location. At all times after the date hereof and until such time as there are no Obligations due to the Secured
Party or this Agreement is sooner terminated, the Company shall not, except with the Secured Party’s written consent, change
its company name or conduct its business under any name other than that set forth herein or change its jurisdiction of organization
or incorporation, chief executive office, place of business from the current location.

 

4.
Representations and Warranties. The Company represents and warrants to the Secured Party as follows:

 

4.1.
Title to Collateral. The Company is the owners of and has good and marketable title to, or has a valid and subsisting leasehold
interest in, all of the Collateral.

 

4.2.
No Other Encumbrances. Other than the Permitted Liens, the Company has not granted, nor will it grant, a security interest in
the Collateral to any other individual or entity, and to the actual knowledge of the Company, such Collateral is free and clear of
any mortgage, pledge, lease, trust, bailment, lien, security interest, encumbrance, charge or other arrangement, other than the
Permitted Liens.

 

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4.3.
Authority; Enforceability. The Company has the authority and capacity to perform its obligations hereunder, and this Agreement is
the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditors’
rights or general equitable principles, whether applied in law or equity.

 

4.4.
Company Name; Place of Business; Location of Collateral. The Company’s true and correct company name, all trade name(s) under
which it conducts its business, its jurisdiction of organization or incorporation and each of its chief executive offices, its place(s)
of business and the locations of the Collateral or records relating to the Collateral are set forth in Schedule I hereto. The
Company’s place of business and chief executive office is where the Company is entitled to receive notices hereunder; the present
and foreseeable location of the Company’s books and records concerning any of the Collateral that is accounts is as set forth on
Schedule I hereto, and the location of all other Collateral, including, without limitation, the Company’s inventory and
equipment is as set forth on Schedule I hereto.

 

4.5.
Perfection; Security Interest. For Collateral in which the Security Interest may be perfected by the filing of financing statements,
once those financing statements have been properly filed in the appropriate jurisdictions, the Security Interest in such Collateral will
be fully perfected, subject only to Permitted Liens. Other than the financing statements and with respect to this Agreement, to the actual
knowledge of the Company, there are no other financing statements or control agreements covering any Collateral, other than those evidencing
Permitted Liens.

 

5.
Events of Default.

 

5.1.
Events of Default Defined. The occurrence of any of the following events prior to the termination or expiration of this Agreement
shall constitute an event of default under this Agreement (each, an “Event of Default”):

 

(a)
The failure of the Company to perform or comply in a material respect with any act, duty or obligation required to be performed under
this Agreement if such failure is not remedied within thirty (30) days after the Company receives written notice of such failure from
the Majority in Interest or a duly appointed Security Agent;

 

(b)
If any of the representations or warranties of the Company set forth in this Agreement shall prove to have been incorrect in any
material respect when made, or becomes incorrect in any material respect and, if subject to cure, is not cured within thirty (30) days
after the Company receives written notice from the Majority in Interest or duly appointed Security Agent;

 

(c)
If any material portion of the Collateral shall be damaged, destroyed or otherwise lost and such damage, destruction or loss is not
covered by insurance; or

 

(d)
If an “Event of Default” as defined in the Note shall have occurred and is continuing.

 

5.2.
Rights and Remedies Upon Default. If an Event of Default exists and is continuing, the Majority in Interest shall appoint a Security
Agent in accordance with the terms of this Agreement and such Security Agent shall, at its election (but subject to Section 7 below and
to the terms and conditions of the Transaction Agreements), exercise any and all rights available to a secured party under the UCC, in
addition to any and all other rights afforded by the Transaction Agreements, at law, in equity, or otherwise, including, without limitation,
(a) requiring the Company to assemble all or part of the Collateral and make it available to the Security Agent at a place to be designated
by the Security Agent which is reasonably convenient to the Company, (b) surrendering any policies of insurance on all or part of the
Collateral and receiving and applying the unearned premiums as a credit on the Obligation, (c) applying by appropriate judicial proceedings
for appointment of a receiver for all or part of the Collateral (and the Company hereby consents to any such appointment), and (d) applying
to the Obligation any cash held by Security Agent under this Security Agreement.

 

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5.3.
Notice. Reasonable notification of the time and place of any public sale of the Collateral, or reasonable notification of the time
after which any private sale or other intended disposition of the Collateral is to be made, shall be sent to the Company, the holders
of Permitted Liens, and to any other person or entity entitled to notice under the UCC. It is agreed that notice sent or given not less
than ten calendar days prior to the taking of the action to which the notice relates is reasonable notification and notice for the purposes
of this subparagraph.

 

5.4.
Allocation of Proceeds. The Security Agent may determine the order in which to apply funds received by it hereunder (e.g.,
the Security Agent may determine to apply funds first to expenses, second to interest and third to principal or it may determine to apply
funds first to interest, second to expenses and third to principal) in accordance with the provisions of Section 7.4(e).

 

6.
Additional Remedies. Subject to Section 7, if an Event of Default exists and is continuing, the Company shall:

 

6.1.
Endorse any and all documents evidencing any Collateral (other than any Collateral if and to the extent subject to the Permitted
Liens) to the Secured Party, or as otherwise instructed by the Security Agent, and notify any payor that said documents have been so
endorsed and that all sums due and owing pursuant to them should be paid directly to such Secured Party, or as otherwise instructed by
the Security Agent;

 

6.2.
Turn over to the Security Agent, or as otherwise instructed by the Security Agent, copies of all documents evidencing any right to
collection of any sums due to the Company arising from or in connection with any of the Collateral;

 

6.3.
Take any action reasonably required by a Secured Party with reference to the Federal Assignment of Claims Act; and

 

6.4.
Keep all of its books, records, documents and instruments relating to the Collateral in such manner as the Secured Party may require.

 

7.
Subordination of Liens. The Secured Party acknowledges that it may be a requirement of the grantees of the Permitted Liens, that
the liens or security interests securing the Note be subordinate and junior to the Permitted Liens. Accordingly, and notwithstanding
anything contained herein or in the other Transaction Agreements, the Secured Party and Security Agent hereby covenant and agree with
the Company as follows:

 

7.1.
Acknowledgment. The Secured Party and Representative hereby acknowledge and agree that the Company has granted and may subsequently
grant, from time to time, Permitted Liens. The Secured Party and Representative acknowledge and agree that the security interest granted
to them in the Collateral hereunder is (A) subordinated to the respective Permitted Liens in the Collateral as contemplated by clauses
(e) through (g) in the definition of Permitted Liens (the “Senior Permitted Liens”); and (B) that as between the Secured
Party, the Security Interest granted to the Secured Party under this Agreement is pari passu with the Security Interests of the
other Secured Party, all in the manner and pursuant to the terms set forth in this Section 7.

 

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7.2.
Priority of Liens. The Secured Party and Representative hereby confirm that regardless of the relative times of attachment or perfection
thereof, and regardless of anything in any Transaction Agreement to the contrary, (A) any Senior Permitted Liens granted by the Company
in all or any part of the Collateral shall in all respects be first and senior security interests and Liens, superior to any security
interests or Liens at any time granted to the Secured Party in such Collateral; and (B) as between all Secured Party, the security interests
granted to the Secured Party hereunder are in all respects pari passu security interests and Liens in the Collateral. The priorities
specified herein are applicable irrespective of the time, order or method of attachment or perfection of security interests or the time
or order of filing of financing statements. The Secured Party agrees not to seek to challenge, to avoid, to subordinate or to contest
or directly or indirectly to support any other Person in challenging, avoiding, subordinating or contesting in any judicial or other
proceeding, including, without limitation, any proceeding involving the Company, the priority, validity, extent, perfection or enforceability
of any Senior Permitted Liens. The Secured Party further covenants and agrees that they shall not, and they shall not instruct, authorize
or otherwise permit or consent to allowing the Security Agent to, take any action that is in violation of, or inconsistent with, the
provisions of this Section 7.

 

7.3.
Release of Collateral. If, in connection with the exercise by any of the holders of Senior Permitted Liens of their rights and remedies
in respect of the Collateral, such holders release any of its or their Senior Permitted Liens on any part of the Collateral, then the
Liens shall be automatically, unconditionally and simultaneously released on a pro rata basis; provided, that after the Senior
Permitted Liens have been satisfied, the balance, if any, of the proceeds of such Collateral shall be applied to the Obligations for
the benefit of the Secured Party. The Secured Party shall, or shall cause a duly appointed Security Agent to, promptly execute and deliver
to the Company such termination statements, releases and other documents as it may reasonably require to effectively confirm such release.

 

8.
Security Agent.

 

8.1.
Appointment. The Secured Party, by their acceptance of the benefits of the Agreement, hereby agree that prior to declaring an Event
of Default or exercising any of their rights hereunder in connection with any Event of Default, to designate in writing a Person to act
as their representative to act as the security agent in accordance with the terms of this Agreement (the “Security Agent”).
The Secured Party agrees that the act of the Majority in Interest in appointing the Security Agent shall be sufficient in all respects
to rightfully appoint the Security Agent hereunder. The Secured Party (whether or not a signatory hereto) shall be deemed irrevocably
(a) to consent to the appointment of the Security Agent as its agent hereunder, (b) to confirm that the Security Agent shall have the
authority to act as the exclusive agent of such Secured Party for the enforcement of any provisions of this Agreement against the Company,
the exercise of remedies hereunder and the giving or withholding of any consent or approval hereunder relating to any Collateral or the
Company’s obligations with respect thereto, (c) to agree that it shall not take any action to enforce any provisions of this Agreement
against the Company, to exercise any remedy hereunder or to give any consents or approvals hereunder except as expressly provided in
this Agreement or in the Note and (d) to agree to be bound by the terms of this Agreement. The appointment of the Security Agent shall
continue until revoked in writing by a Majority in Interest, at which time a Majority in Interest shall appoint a new Security Agent.
The Security Agent may perform any of its duties hereunder by or through its agents or employees.

 

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8.2.
Nature of Duties. The Security Agent shall have no duties or responsibilities except those expressly set forth in this Agreement.
Neither the Security Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable for
any action taken or omitted by it as such under the Agreement or in connection herewith, be responsible for the consequence of any oversight
or error of judgment or answerable for any loss, unless caused solely by its or their gross negligence or willful misconduct as determined
by a final judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Security Agent shall be mechanical
and administrative in nature; the Security Agent shall not have by reason of this Agreement or any other Transaction Agreement a fiduciary
relationship in respect of the Company or the Secured Party; and nothing in the Agreement or any other Transaction Agreement, expressed
or implied, is intended to or shall be so construed as to impose upon the Agent any obligations in respect of the Agreement or any other
Transaction Agreement except as expressly set forth herein and therein.

 

8.3.
Lack of Reliance on the Security Agent. Independently and without reliance upon the Security Agent, the Secured Party, to the
extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition
and affairs of the Company and its Subsidiaries in connection with the Secured Party’s investment in the Company, the creation
and continuance of the Obligations, the transactions contemplated by the Transaction Agreements, and the taking or not taking of any
action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of the
value of the Collateral from time to time, and the Security Agent shall have no duty or responsibility, either initially or on a
continuing basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether coming
into its possession before any Obligations are incurred or at any time or times thereafter. The Security Agent shall not be
responsible to the Company or any Secured Party for any recitals, statements, information, representations or warranties herein or
in any document, certificate or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness,
validity, enforceability, perfection, collectability, priority or sufficiency of this Agreement or any other Transaction Agreement,
or for the financial condition of the Company or the value of any of the Collateral, or be required to make any inquiry concerning
either the performance or observance of any of the terms, provisions or conditions of this Agreement or any other Transaction
Agreement, or the financial condition of the Company, or the value of any of the Collateral, or the existence or possible existence
of any default or Event of Default under the Agreement, the Note or any of the other Transaction Agreements.

 

8.4.
Certain Rights of the Security Agent. The Security Agent shall have the right to take any action with respect to the Collateral permitted
by this Agreement, on behalf of all of the Secured Party. To the extent practical, the Security Agent shall request instructions from
the Secured Party with respect to any material act or action (including failure to act) in connection with the Agreement or any other
Transaction Agreement, and shall be entitled to act or refrain from acting in accordance with the instructions of a Majority in Interest;
if such instructions are not provided despite the Security Agent’s request therefor, the Security Agent shall be entitled to refrain
from such act or taking such action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured Party
in respect of actions to be taken by the Security Agent; and the Security Agent shall not incur liability to any person or entity by
reason of so refraining. Without limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Security
Agent as a result of the Security Agent acting or refraining from acting hereunder in accordance with the terms of the Agreement or any
other Transaction Agreement, and the Company shall have no right to question or challenge the authority of, or the instructions given
to, the Security Agent pursuant to the foregoing and (b) the Security Agent shall not be required to take any action which the Security
Agent believes (i) could reasonably be expected to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction
Agreements or applicable law.

 

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8.5.
Reliance. The Security Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed,
sent or made by the proper person or entity, and, with respect to all legal matters pertaining to this Agreement and the other Transaction
Agreements and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining to this Agreement and
the other Transaction Agreements and its duties thereunder, upon advice of other experts selected by it. Anything to the contrary notwithstanding,
the Security Agent shall have no obligation whatsoever to any Secured Party to assure that the Collateral exists or is owned by the Company
or is cared for, protected or insured or that the liens granted pursuant to the Agreement have been properly or sufficiently or lawfully
created, perfected, or enforced or are entitled to any particular priority.

 

8.6.
Indemnification. To the extent that the Security Agent is not reimbursed and indemnified by the Company, the Secured Party will jointly
and severally reimburse and indemnify the Security Agent, in proportion to their initially purchased respective principal amounts of
Note, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Security Agent in performing
its duties hereunder or under the Agreement or any other Transaction Agreement, or in any way relating to or arising out of the Agreement
or any other Transaction Agreement except for those determined by a final judgment (not subject to further appeal) of a court of competent
jurisdiction to have resulted solely from the Security Agent’s own gross negligence or willful misconduct. Prior to taking any
action hereunder as Security Agent, the Security Agent may require the Secured Party to deposit with it sufficient sums as it determines
in good faith is necessary to protect the Security Agent for costs and expenses associated with taking such action.

 

8.7.
Resignation by the Security Agent.

 

(a)
The Security Agent may resign from the performance of all its functions and duties under the Agreement and the other Transaction
Agreements at any time by giving 30 days’ prior written notice (as provided in the Agreement) to the Company and the Secured Party.
Such resignation shall take effect upon the appointment of a successor Security Agent pursuant to Sections 8.7(b) and 8.7(c) below.

 

(b)
Upon any such notice of resignation, the Secured Party, acting by a Majority in Interest, shall appoint a successor Security Agent
hereunder.

 

(c)
If a successor Security Agent shall not have been so appointed within said 30-day period, the Security Agent shall then appoint a
successor Security Agent who shall serve as Security Agent until such time, if any, as the Secured Party appoint a successor Security
Agent as provided above. If a successor Security Agent has not been appointed within such 30-day period, the Security Agent may petition
any court of competent jurisdiction or may interplead the Company and the Secured Party in a proceeding for the appointment of a successor
Security Agent, and all fees, including, but not limited to, extraordinary fees associated with the filing of interpleader and expenses
associated therewith, shall be payable by the Company on demand.

 

9.
Miscellaneous.

 

9.1.
Termination and Release. This Agreement, and the Liens created by this Agreement shall automatically terminate in all respects upon
the full and final payment by the Company of the Note. Further, the Liens created by this Agreement on any of the Collateral shall be
automatically released if the Company disposes of such Collateral pursuant to a transaction permitted by the Note or otherwise consented
to by the Security Agent or the Majority in Interest. In connection with any termination or release pursuant to this Section 9.1, the
Majority in Interest shall, or shall cause any duly appointed Security Agent to, promptly execute and deliver to the Company all documents
that the Company shall reasonably request to evidence such termination or release.

 

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9.2.
Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided, that
in such case the parties shall negotiate in good faith to replace such provision with a new provision which is not illegal, unenforceable
or void, as long as such new provision does not materially change the economic benefits of this Agreement to the parties.

 

9.3.
Continuing Security Interest; Successors. This Agreement creates a continuing security interest in the Collateral and shall (i) remain
in full force and effect until the Obligations are paid and performed in full or this Agreement is sooner terminated in accordance with
Section 9.1; and (ii) inure to the benefit of and be enforceable by the Secured Party and its successors, transferees, and assigns. The
Secured Party may assign its rights hereunder in connection with any private sale or transfer of its Note in accordance with the terms
of the Purchase Agreement and applicable law, in which case the term “Secured Party” shall be deemed to refer to such
transferee as though such transferee was an original signatory hereto.

 

9.4.
Governing Law; Jurisdiction. This Agreement shall be governed by and construed under the laws of the State of New York applicable
to contracts made and to be performed entirely within the State of New York. The Company hereby irrevocably submits to the non-exclusive
jurisdiction of the state and federal courts sitting in New York City, for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agree not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.

 

9.5.
Headings. The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting
this Agreement.

 

9.6.
Notices. Any notice to the Company or to the Secured Party shall be given in the manner set forth in the Purchase Agreement; provided
that the Secured Party, if not a party to such Purchase Agreement, shall provide the Company with its proper delivery instructions
for notices. Either party may, by notice given in accordance with the Purchase Agreement, change the address to which notices, demands
and requests shall be sent to such party. Any notice to be given by the Company to the Security Agent shall be given in the manner provided
for in the Purchase Agreement and delivered to such address as the Company is instructed by the Security Agent.

 

9.7.
Entire Agreement; Amendments; Waivers. The Transaction Agreements, together with the exhibits and schedules thereto, constitutes
the full and entire understanding and agreement between the parties with regard to the subjects hereof, and no party shall be liable
or bound to any other party in any manner by any representations, warranties, covenants and agreements except as specifically set forth
in the Transaction Agreements. Except as expressly provided herein, neither this Agreement nor any term hereof may be amended except
pursuant to a written instrument executed by Company and the Majority in Interest, and no provision hereof may be waived other than by
a written instrument signed by the party against whom enforcement of any such waiver is sought. The Secured Party shall not, by any act,
any failure to act or any delay in acting be deemed to have (i) waived any right or remedy under this Agreement, or (ii) acquiesced in
any Event of Default or in any brs of any of the terms and conditions of this Agreement. No failure to exercise, nor any delay in exercising,
any right, power or privilege of the Secured Party under this Agreement shall operate as a waiver of any such right, power or privilege.
No single or partial exercise of any right, power or privilege under this Agreement shall preclude any other or further exercise of any
other right, power or privilege. A waiver by the Secured Party of any right or remedy under this Agreement on any one occasion shall
not be construed as a bar to any right or remedy that such Secured Party would otherwise have on any future occasion.

 

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9.8.
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

9.9.
Cumulative Remedies. The rights and remedies provided in this Agreement are cumulative, may be exercised singly or concurrently,
and are not exclusive of any other rights or remedies provided by law.

 

9.10.
Waivers. The Company acknowledges that the Obligations arose out of a commercial transaction and hereby knowingly waives any right
to require the Secured Party to (i) proceed against any person or entity, (ii) proceed against any other collateral under any other agreement,
(iii) pursue any other remedy available to the Secured Party, or (iv) make presentment, demand, dishonor, notice of dishonor, acceleration
and/or notice of non-payment.

 

9.11.
Release. No transfer or renewal, extension, assignment or termination of this Agreement or of any instrument or document executed
and delivered by the Company to the Secured Party, nor additional advances made by the Secured Party to the Company, nor the taking of
further security, nor the retaking or re-delivery of the Collateral by the Secured Party nor any other act of the Secured Party shall
release the Company from any Obligation, except a release or discharge executed in writing by the Majority in Interest or Security Agent
with respect to such Obligation or upon full payment and satisfaction of all Obligations and termination of the Note. At such time the
Obligations have been satisfied in full, the Majority in Interests or Security Agent (if one had been appointed) shall execute and deliver
to the Company all assignments and other instruments as may be reasonably necessary or proper to terminate the Secured Party’s
security interest in the Collateral, subject to any disposition of the Collateral that may have been made by or on behalf of the Secured
Party pursuant to this Agreement. For the purpose of this Agreement, the Obligations shall be deemed to continue if the Company enters
into any bankruptcy or similar proceeding at a time when any amount paid to the Secured Party could be ordered to be repaid as a preference
or pursuant to a similar theory and shall continue until it is finally determined that no such repayment can be ordered.

 

[Signature
Pages Follow]

 

 

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In
Witness Whereof, the Company and the Secured Party
have duly executed this Security Agreement as of the date first written above.

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