Document:

EXHIBIT 10.3

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES
HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO
RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY
BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

FUSE SCIENCE, INC.

 

Warrant

 

Warrant Number: [      ]

Date of Issuance: November [       ], 2013 (“Issuance
Date”)

No. of Warrant Shares: [          ]

 

FUSE SCIENCE, INC.,
a Nevada corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [           ], the registered holder hereof or its permitted assigns (the “Holder”),
is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then
in effect, upon exercise of this Warrant (including any Warrants issued in exchange, transfer or replacement hereof, this “Warrant”),
at any time or times on or after the date hereof (the “Exercisability Date”), but not after 11:59 p.m., New
York time, on the Expiration Date (as defined below) the number of shares, subject to adjustment as provided herein, of fully paid,
non-assessable shares of Common Stock (as defined below) set forth below in Section 1(d) (the “Warrant Securities”).
This Warrant is one of a series of Warrants being issued pursuant to that certain Securities Purchase Agreement, dated the date
hereof (the “SPA Date”), by and between the Company, the Holder and certain other purchasers (the “Securities
Purchase Agreement”). Except as otherwise defined herein, capitalized terms used in this Warrant shall have the meanings
set forth in the Securities Purchase Agreement.

 

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		1.	EXERCISE OF WARRANT.

 

(a)        Mechanics
of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after
the Exercisability Date, in whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the
“Exercise Notice”), of the Holder’s election to exercise this Warrant and (ii) (A) payment to the Company
by no later than two (2) Trading Days of an amount equal to the applicable Exercise Price in effect on the date of exercise multiplied
by the number of Warrant Securities as to which this Warrant is being exercised (the “Aggregate Exercise Price”)
in cash or by wire transfer of immediately available funds or (B) by delivery of the Exercise Notice to the Company specifying
that this Warrant is being exercised as a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required
to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect
to less than all of the Warrant Securities shall have the same effect as cancellation of the original Warrant and issuance of a
new Warrant evidencing the right to purchase the remaining number of Warrant Securities. On or before the first (1 st) Trading
Day following the date on which the Company has received an Exercise Notice, the Company shall transmit by facsimile an acknowledgment
of confirmation of receipt of such Exercise Notice to the Holder and the Company’s transfer agent (the “Transfer
Agent”). On or before the third (3rd) Trading Day following the date on which the Company has received such Exercise
Notice (the “Share Delivery Date”), the Company shall, (X) provided that the Transfer Agent is participating
in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the
Holder, credit such aggregate number of Warrant Securities to which the Holder is entitled pursuant to such exercise to the Holder’s
or its designee’s balance account with DTC through its Deposit/Withdrawal At Custodian system, or (Y) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch by overnight courier to the address
as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder
or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery
of the Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Securities with respect to which this Warrant has been exercised, irrespective of the date such Warrant Securities are credited
to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Securities, as the case may
be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant
Securities represented by this Warrant submitted for exercise is greater than the number of Warrant Securities being acquired upon
an exercise, then the Company shall as soon as practicable and in no event by no later than three (3) Business Days after any exercise
and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number
of Warrant Securities purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Securities
with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of this
Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company
shall pay any and all transfer taxes which may be payable with respect to the issuance and delivery of Warrant Securities upon
exercise of this Warrant.

 

(b)        Exercise
Price. For purposes of this Warrant, “Exercise Price” means $0.065 per share, subject to adjustment as provided
herein. The Warrant Securities means [                       ] ( ) shares of Common Stock.

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(c)        Company’s
Failure to Timely Deliver Securities. If within three (3) Trading Days of receipt of the Exercise Notice, the Company shall
fail to issue to the Holder a certificate for the number of shares of Common Stock to which the Holder is entitled and register
such shares of Common Stock on the Company’s share register or credit the Holder’s balance account with DTC for such
number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant, and if on or
after such third Trading Day the Holder purchases (or any third party on behalf of such Investor or for the Investor’s account
purchases, in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder
of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Trading Days after the Holder’s written request and at the Holder’s discretion,
either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions,
if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such certificate (and to issue such Warrant Securities) or credit the Holder’s balance account with
DTC for such Warrant Securities shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or
certificates representing such Warrant Securities or credit the Holder’s balance account with DTC for the number of such
Warrant Securities and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of
(A) such number of shares of Common Stock, multiplied by (B) the Closing Bid Price on the Share Delivery Date.

 

(d)        Cashless
Exercise. Notwithstanding anything contained herein to the contrary, if a registration statement covering the Warrant Securities
that are the subject of the Exercise Notice (the “Unavailable Warrant Securities”), or an exemption from registration,
is not available for the resale of such Unavailable Warrant Securities, the Holder may, in its sole discretion, exercise this Warrant
in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise
in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of
shares of Common Stock determined according to the following formula (a “Cashless Exercise”):

 

Net Number = (A
x B) - (A x C) 

B

For purposes of the
foregoing formula:

 

A= the total number
of shares with respect to which this Warrant isthen being exercised.

 

B= the Closing Sale
Price of the shares of Common Stock for the Trading Day ending on the date of the executed Exercise Notice.

 

C= the Exercise Price
then in effect for the applicable Warrant Securities at the time of such exercise.

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(e)        Rule 144.
For purposes of Rule 144(d) promulgated under the Securities Act, as in effect on the date hereof, assuming the Holder is not an
affiliate of the Company, it is intended that the Warrant Securities issued in a Cashless Exercise shall be deemed to have been
acquired by the Holder, and the holding period for the Warrant Securities shall be deemed to have commenced, on the date this Warrant
was originally issued pursuant to the Securities Purchase Agreement.

 

(f)        Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Securities,
the Company shall promptly issue to the Holder the number of Warrant Securities that are not disputed.

 

(g)        Registration
of Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of record of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary.

 

(h)        Registration
of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Transfer Agent or to the Company
at its address specified herein. Upon any such registration of transfer, a new warrant to purchase Common Stock, in substantially
the form of this Warrant (any such new warrant, a “New Warrant”), evidencing the portion of this Warrant so
transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred,
if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed
the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

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(i)        Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 1 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Exercise Notice, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder
or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth
in the preceding sentence, for purposes of this Section 1(i), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 1(i) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of
the Holder, and the submission of an Exercise Notice shall be deemed to be the Holder’s determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this
Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 1(i), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the Company,
may increase or decrease the Beneficial Ownership Limitation provisions of this Section 1(i). Any such increase or decrease will
not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1(i) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

2.            ADJUSTMENT OF EXERCISE PRICE AND
NUMBER OF WARRANT SECURITIES. The Exercise Price and the number of Warrant Securities issuable upon exercise of this Warrant,
as applicable, shall be adjusted from time to time as follows:

 

(a)        Adjustment
upon Subdivision or Combination of Common Stock. If the Company at any time on or after the SPA Date subdivides (by any stock
split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Securities will be proportionately increased. If the Company at any time on or after the SPA Date combines
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Securities will be proportionately decreased. Any adjustment under this Section 2(a) shall
become effective at the close of business on the date the subdivision or combination becomes effective.

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(b)        Adjustment
of Exercise Price Upon Issuance of New Securities at Less Than the Exercise Price. In the event the Company shall, at any time
after the date hereof and on or prior to the earlier of the exercise of this Warrant in full and the one (1) year anniversary of
the date hereof, issue New Securities, without Consideration or for a Consideration per share less than the applicable Exercise
Price in effect immediately prior to such issue, then the Exercise Price shall be reduced, concurrently with such issue, to the
Consideration per share received by the Company for such issue or deemed issue of the New Securities; provided, that, if such issuance
or deemed issuance was without Consideration, then the Company shall be deemed to have received an aggregate of $0.001 of Consideration
for all such New Securities issued or deemed to be issued; provided further, that, in the event of an Adjustment pursuant to this
Section 2(b), the number of Warrant Securities issuable upon exercise of this Warrant shall not change.

 

(c)        Other Events.
If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation rights or phantom stock rights), then the Company’s
Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Securities so as to protect
the rights of the Holder; provided that no such adjustment pursuant to this Section 2(c) will increase the Exercise Price
or decrease the number of Warrant Securities as otherwise determined pursuant to this Section 2.

 

		3.	RIGHTS UPON DISTRIBUTION OF ASSETS.

 

(a)        If at any time
or from time to time the holders of Common Stock of the Company (or any shares of stock or other securities at the time receivable
upon the exercise of this Warrant) shall have received or become entitled to receive, without payment therefor:

 

		(i)	Common Stock or any shares of stock or other securities which are at any time directly or indirectly
convertible into or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any
of the foregoing by way of dividend or other distribution (other than a dividend or distribution covered in Section 2(a) above);

 

		(ii)	any cash paid or payable otherwise than as a cash dividend; or

 

		(iii)	Common Stock or additional stock or other securities or property (including cash) by way of spinoff,
split-up, reclassification, combination of shares or similar corporate rearrangement (other than shares of Common Stock pursuant
to Section 2(a) above), then and in each such case, the Holder hereof will, upon the exercise of this Warrant, be entitled
to receive, in addition to the number of shares of Common Stock receivable thereupon, and without payment of any additional consideration
therefor, the amount of stock and other securities and property (including cash in the cases referred to in clauses (ii) and (iii)
above) which such Holder would hold on the date of such exercise had such Holder been the holder of record of such Common Stock
as of the date on which holders of Common Stock received or became entitled to receive such shares or all other additional stock
and other securities and property.

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(b)        Upon the occurrence
of each adjustment pursuant to this Section 3, the Company at its expense will, at the written request of the Holder, promptly
compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including
a statement of the adjusted number or type of Warrant Securities or other securities issuable upon exercise of this Warrant (as
applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment
is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s
transfer agent.

 

4.            FUNDAMENTAL TRANSACTIONS.
The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes this Warrant in accordance
with the provisions of this Section 4, including agreements to deliver to each holder of Warrants in exchange for such Warrants
a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant,
including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms
of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock or other securities equivalent
to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) prior to such Fundamental Transaction, and satisfactory to the Holder. Upon the occurrence of any Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity),
and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant
with the same effect as if such Successor Entity had been named as the Company herein. In addition to and not in substitution for
any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common
Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate
Event”), the Company shall make appropriate provision to ensure that the Holder will thereafter have the right to receive
upon an exercise of this Warrant at any time after the consummation of the Fundamental Transaction but prior to the Expiration
Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise
of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever
(including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had the Warrant been exercised immediately prior to such Fundamental Transaction (including, if
the Warrant Securities underlying this Warrant include securities that are convertible or exercisable, had such Warrant Securities
been converted or exercised, as applicable, into shares of Common Stock). If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as
to the consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The provisions of this
Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied
without regard to any limitations on the exercise of this Warrant. Notwithstanding the foregoing, in the event of a Fundamental
Transaction (i) in which holders of Common Stock receive all cash or substantially all cash or (ii) with a Person whose common
stock or equivalent equity security is not quoted or listed on an Eligible Market, and, in either case, at the request of the Holder
delivered within 30 days after consummation of the Fundamental Transaction, the Company (or the Successor Entity) shall purchase
this Warrant from the Holder by paying to the Holder, within seven Business Days after such request (or, if later, on the effective
date of the Fundamental Transaction), cash in an amount equal to the Black Scholes Value of the remaining unexercised portion of
this Warrant on the date of such Fundamental Transaction.

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5.            NON-CIRCUMVENTION. The Company
hereby covenants and agrees that the Company will not, by amendment of its Articles of Incorporation, Bylaws or through any reorganization,
transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good
faith comply with all the provisions of this Warrant and take all actions consistent with effectuating the purposes of this Warrant.
Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common
Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary to
reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise
of this Warrant, 100% of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding (without
regard to any limitations on exercise).

 

6.           WARRANT HOLDER NOT DEEMED A STOCKHOLDER.
Except as otherwise specifically provided herein, the Holder, solely in such Person’s capacity as a holder of this Warrant,
shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor
shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the
Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the
Warrant Securities which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained
in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors
of the Company.

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		7.	REISSUANCE OF WARRANTS.

 

(a)        Transfer
of Warrant. Subject to Section 14 of this Warrant, if this Warrant is to be transferred, the Holder shall surrender
this Warrant to the Company and deliver the completed and executed Assignment Form, in the form attached hereto as Exhibit
B, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with
Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Securities
being transferred by the Holder and, if less than the total number of Warrant Securities then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number
of Warrant Securities not being transferred.

 

(b)        Lost, Stolen
or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall
execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the
Warrant Securities then underlying this Warrant.

 

(c)        Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase
the number of Warrant Securities then underlying this Warrant, and each such new Warrant will represent the right to purchase such
portion of such Warrant Securities as is designated by the Holder at the time of such surrender; provided, however, that no Warrants
for fractional shares of Common Stock shall be given. Notwithstanding anything to the contrary herein, in no event shall the original
Warrant be subdivided into more than three (3) separate Warrants and such new Warrants shall not be further subdivided.

 

(d)        Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Securities then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section
7(a) or Section 7(c), the Warrant Securities designated by the Holder which, when added to the number of shares of Common
Stock and/or other securities underlying the other new Warrants issued in connection with such issuance, does not exceed the number
of Warrant Securities then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant
which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

8.            NOTICES. Whenever notice is
required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with Section
9(c) of the Securities Purchase Agreement.

 

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9.           AMENDMENT AND WAIVER. Except
as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited,
or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder.

 

10.         GOVERNING LAW. This Warrant
shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New York.

 

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

 

12.          DISPUTE RESOLUTION. In the
case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Securities, the Company
shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days of receipt of the
Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree
upon such determination or calculation of the Exercise Price or the Warrant Securities within three Business Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two (2) Business Days submit
via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the
Company and approved by the Holder, which approval shall not be unreasonably withheld, or (b) the disputed arithmetic calculation
of the Warrant Securities to the Company’s independent, outside accountant. The Company shall cause the investment bank or
the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the
results no later than ten Business Days from the time it receives the disputed determinations or calculations. The prevailing party
in any dispute resolved pursuant to this Section 12 shall be entitled to the full amount of all reasonable expenses, including
all costs and fees paid or incurred in good faith, in relation to the resolution of such dispute. Such investment bank’s
or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

13.         REMEDIES, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies
available under this Warrant and the other Transactions Documents, as applicable, at law or in equity (including a decree of specific
performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for
any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of its obligations
hereunder may cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company
therefore agrees that, in the event of any such breach or threatened breach, the Holder may be entitled, in addition to all other
available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond
or other security being required. The issuance of Warrant Securities and certificates for such Warrant Securities as contemplated
hereby upon the exercise of this Warrant shall be made without charge to the Holder for any issuance tax in respect thereof.

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14.         TRANSFER. Subject to compliance
with applicable laws, this Warrant may not be offered for sale, sold, transferred or assigned without the consent of the Company,
such consent not to be unreasonably withheld, conditioned or delayed.

 

15.          WARRANT AGENT. The Company
shall serve as warrant agent under this Warrant. Upon 30 days' notice to the Holder, the Company may appoint a new warrant agent.
Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation
to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent
transfers substantially all of its corporate trust or stockholder services business shall be a successor warrant agent under this
Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent
to be mailed (by first class mail, postage prepaid) to the Holder at the Holder's last address as shown on the Warrant Register.

 

16.        SEVERABILITY. If any provision
of this Warrant shall be held to be invalid and unenforceable, such invalidity or unenforceability shall not affect any other provision
of this Warrant.

 

17.        CERTAIN DEFINITIONS. For
purposes of this Warrant, the following terms shall have the following meanings:

 

(a)        “Black
Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the
"OV” function on Bloomberg using (i) a price per share of Common Stock equal to the Weighted Average Price of the Common
Stock for the Trading Day immediately preceding the date of consummation of the applicable Fundamental Transaction, (ii) a risk-free
interest rate corresponding to the U.S. Dollar – LIBOR swap rate for a period equal to the remaining term of this Warrant
as of the date of consummation of the applicable Fundamental Transaction, (iii) an expected volatility equal to the greater of
100% or the 30-day realized volume up to and including the Trading Day immediately after the public announcement of the applicable
Fundamental Transaction, and (iv) a remaining option time equal to the number of calendar days between the date of the public announcement
of the applicable Fundamental Transaction and the expiration of the Exercise Period.

 

(b)        “Bloomberg”
means Bloomberg Financial Markets.

 

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

    	11

    	 

    

 

(d)        “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such
security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or
trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing
bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the “pink sheets” by OTC Markets Group LLC. If the Closing Bid Price or the Closing Sale Price cannot be calculated
for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case
may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. All
such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction
during the applicable calculation period.

 

(e)        “Common
Stock” means (i) the Company’s shares of Common Stock, par value $0.001 per share, and (ii) any share capital into
which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(f)        “Consideration”
means, in the case of issuance of New Securities issued (i) for cash, the amount of cash received by the Company; (ii) for property
other than cash, the property value computed at the fair market value thereof at the time of such issue, as determined in good
faith by the board of directors of the Company; and (iii) together with other shares or securities or other assets of the Company
for consideration which covers both, the proportion of such Consideration so received, computed as provided in clauses (i)and(ii)above,
as determined in good faith by the board of directors of the Company. The Consideration per share received by the Company for New
Securities that are Options or Convertible Securities, shall be determined by dividing: (x) the total amount, if any, received
or receivable by the Company as Consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate
amount of additional Consideration (as set forth in the instruments relating thereto, without regard to any provision contained
therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options or the conversion
or exchange of such Convertible Securities or, in the case of Options for Convertible Securities, the exercise of such Options
for Convertible Securities and the conversion or exchange of such Convertible Securities, by (y) the maximum number of shares of
Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent
adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities,
or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion
or exchange of such Convertible Securities.

 

(g)        “Convertible
Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for shares of Common Stock.

    	12

    	 

    

 

(h)        “Eligible
Market” means the Principal Market, The New York Stock Exchange, Inc., The American Stock Exchange, The NASDAQ Global
Market, The NASDAQ Capital Market, the Over the Counter Bulletin Board, the OTCQX or the OTCQB.

 

(i)        “Expiration
Date” means the date that is five (5) years following the Issuance Date or, if such date falls on a day other than a
Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that
is not a Holiday.

 

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

 

(k)        “New
Securities” means all shares of Common Stock issued or deemed to be issued by the Company after the SPA Date, other than
(i) the following shares of Common Stock and (ii) shares of Common Stock deemed issued pursuant to the following Options and Convertible
Securities outstanding as of the Closing Date: (a) shares of Common Stock, Options or Convertible Securities issued by reason of
a dividend, stock split, split-up or other distribution on shares of Common Stock that is covered by Section 2(a); (b) shares
of Common Stock or Options issued to employees or directors of, or consultants or advisors to, the Company or any of its Subsidiaries
pursuant to a plan, agreement or arrangement approved by the board of directors of the Company; or(c) shares of Common Stock or
Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually issued upon the conversion
or exchange of Convertible Securities, in each case, provided such issuance is pursuant to the terms of such Option or Convertible
Security; (d) shares of Common Stock, Options or Convertible Securities issued to employees or directors of, or consultants or
advisors to, the Company or any of its Subsidiaries in consideration for services rendered, as approved in each case by the independent
members of the Company's board of directors; (e) shares of Common Stock or Convertible Securities issued as consideration for a
transaction or (f) shares of Common Stock, Options or Convertible Securities issued in connection with the Company's strategic
relationships or joint ventures.

    	13

    	 

    

 

(l)        “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(m)        “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

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

 

(o)        “Principal
Market” means the principal securities exchange or securities market on which the Common Stock is then traded.

 

(p)        “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(q)        “Trading
Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock are scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from trading during
the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(r)        “Weighted
Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on
the principal securities exchange or securities market on which the Common Stock is then traded during the period beginning at
9:30:01 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price”
function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter
market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending
at 4:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security
by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market
makers for such security as reported in the “pink sheets” by OTC Markets Group, Inc. (or any similar organization or
agency succeeding to its functions of reporting prices). If the Weighted Average Price cannot be calculated for such security on
such date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value
as mutually determined by the Company and the Holder. All such determinations shall be appropriately adjusted for any share dividend,
share split or other similar transaction during such period. If the Company and the Holder are unable to agree upon the fair market
value of such security, then such dispute shall be resolved pursuant to Section 12 with the term "Weighted Average
Price” being substituted for the term "Exercise Price.” All such determinations shall be appropriately adjusted
for any share dividend, share split or other similar transaction during such period.

 

[Signature Page Follows]

 

    	14

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed as of the Issuance Date set out above.

 

	FUSE SCIENCE, INC.	 
	 	 
	By:	 	 
	Name:	Brian Tuffin	 
	Title:	Chief Executive Officer	 

 

    	15

    	 

    

 

EXHIBIT A 

 

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER

TO EXERCISE THIS WARRANT

 

FUSE SCIENCE, INC.

 

The undersigned holder
hereby exercises the right to purchase _________________ shares of Common Stock (the “Warrant Securities”) of
FUSE SCIENCE, INC., a Nevada corporation (the“Company”), evidenced by the attached Warrant (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1. Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________a “ Cash Exercise ”
with respect to _________________ Warrant Securities; and/or

 

____________a “ Cashless Exercise
” with respect to _______________ Warrant Securities.

 

2. In the event that
the holder has elected a Cash Exercise with respect to some or all of the Warrant Securities to be issued pursuant hereto, the
holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of
the Warrant.

 

3. Delivery of Warrant
Securities. The Company shall deliver to the holder __________ Warrant Securities in accordance with the terms of the Warrant and,
after delivery of such Warrant Securities, _____________ Warrant Securities remain subject to the Warrant.

 

Date: _______________ __, ______

 

	Name of Registered Holder
	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	16

    	 

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs Securities Transfer Corporation to issue the above indicated number of shares
of Common Stock in accordance with the Transfer Agent Instructions dated [___ ____], 20[__] from the Company and acknowledged and
agreed to by Securities Transfer Corporation.

 

	FUSE SCIENCE, INC.
	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	17

    	 

    

 

EXHIBIT B 

 

ASSIGNMENT FORM

 

FUSE SCIENCE, INC.

 

(To assign the foregoing Warrant, execute
this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant
and all rights evidenced thereby are hereby assigned to

 

	Name:	 
	 	(Please Print)
	 	 
	Address:	 
	 	(Please Print)
	 	 
	Dated:	                                             ,
	Holder’s Signature:   	 
	Holder’s Address:	 
	 	(Please Print)

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever.
Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority
to assign the foregoing Warrant.

 

    	18EXHIBIT 10.4

 

PLEDGE AND SECURITY AGREEMENT

 

THIS PLEDGE AND
SECURITY AGREEMENT (this “Security Agreement”), dated as of November 7, 2013, is made by and between Fuse
Science, Inc., a Nevada corporation (the “Grantor”), and MusclePharm Corporation, as collateral agent (the
“Collateral Agent”) on behalf of and for the benefit of the Purchasers as defined in one or more certain Note
Purchase Agreements with the Grantor, dated as of the date hereof (the “Purchase Agreement”) and the Purchasers,
together with the Collateral Agent, are collectively referred to herein as the “Secured Parties”).

 

WHEREAS, pursuant
to the Purchase Agreement, the Grantor agreed to sell and issue to the Purchasers, and the Purchasers agreed to purchase, secured
convertible promissory notes (the “Notes”) and certain other securities;

 

WHEREAS, it
is a condition precedent to the issuance of the Notes and such other securities that the Grantor and the Collateral Agent, for
the benefit of the Purchasers, enter into this Security Agreement, pursuant to which the Grantor will grant to the Secured Parties
a first priority security interest in all of the assets of the Grantor, including the pledge by the Grantor to the Secured Parties
of its interests in the Pledged Equity, in order to secure the obligations of the Grantor under the Notes; and

 

WHEREAS, the
Purchasers have appointed MusclePharm Corporation as Collateral Agent under the terms of the Purchase Agreement.

 

In consideration of
the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor,
the Collateral Agent and the Purchasers hereby agree as follows:

 

SECTION 1.          Grant
of Security Interest. As collateral security for the payment and performance when due of the Obligations (defined below),
Grantor hereby collaterally assigns, mortgages, and pledges to the Secured Parties, and hereby grants to the Secured Parties a
first priority security interest in all of Grantor’s right, title and interest in, to and under the Collateral (defined
below). Grantor agrees that this Security Agreement shall create a first priority continuing security interest in the Collateral
which shall remain in effect until the payment and performance in full of all of the Obligations.

 

SECTION 2.          Collateral
Agent’s Rights and Obligations. Grantor shall remain liable under all accounts, accounts receivable, instruments and
documents and general intangibles. The Collateral Agent shall not have any obligation or liability under any accounts, accounts
receivable, instruments and documents or general intangibles by reason of this Security Agreement or the exercise of Collateral
Agent’s rights and remedies hereunder, nor shall the Collateral Agent be required to perform Grantor’s obligations
pursuant thereto. At any time, the Collateral Agent shall have the right to verify accounts receivable constituting a portion
of the Collateral and Grantor agrees to cooperate with the Collateral Agent in arranging for such verification. After the occurrence
of an Event of Default (defined below), the Collateral Agent may notify account debtors that the accounts receivable have been
assigned to the Collateral Agent and that payments may be made directly to the Collateral Agent or as otherwise directed by the
Collateral Agent. At the request of the Collateral Agent at any time after the occurrence of an Event of Default, the Grantor
will so notify such account debtors. Notwithstanding any such action, the Collateral Agent shall have no obligation to inquire
as to the sufficiency of any payment received by it on account of any of Grantor’s accounts receivable or to take any action
to collect or enforce the payment of any account receivable.

 

    	 

    	 

    

 

SECTION 3.          Definitions;
Interpretation.

 

(a)          As
used in this Security Agreement, the following terms shall have the following meanings:

 

“Collateral”
means all assets, including without limitations, as described on Exhibit A attached hereto, except to the extent any such property
(i) is non-assignable by its terms without the consent of the licensor thereof or another party, (ii) the granting of a security
interest therein is contrary to applicable law, or (iii) that is now or hereafter subject to a lien within the meaning of subsection
(vii) of the definition of “Permitted Liens” in this Section 4.

 

“Copyrights”
means any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship
and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now
or hereafter existing, created, acquired or held.

 

“Event of
Default” has the meaning set forth in the Purchase Agreement.

 

“Intellectual
Property” means all of Grantor’s right, title, and interest in and to the following, including such intellectual
property owned on the date hereof and set forth on Schedule 1 annexed hereto, except to the extent any security interest hereunder
would cause any application for a Trademark to be deemed invalidated, canceled or abandoned due to the grant and/or enforcement
of such security interest, including, without limitation, all U.S. trademark applications that are based on an intent-to-use,
unless and until such time that the grant and/or enforcement of the security interest will not affect the status or validity of
such trademark:

 

(a)          Copyrights,
Trademarks and Patents;

 

(b)          and
all trade secrets, and any and all intellectual property rights in computer software and computer software products now or hereafter
existing, created, acquired or held;

 

(c)          and
all design rights which may be available to Grantor now or hereafter existing, created, acquired or held;

 

(d)          and
all claims for damages by way of past, present and future infringement of any of the rights included above, with the right, but
not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified
above;

 

    	- 2 -

    	 

    

 

(e)          licenses
or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties arising from such use
to the extent permitted by such license or rights;

 

(f)          amendments,
renewals and extensions of any of the Copyrights, Trademarks or Patents; and

 

(g)          proceeds
and products of the foregoing, including without limitation all payments under insurance or any indemnity or warranty payable
in respect of any of the foregoing.

 

“Lien”
means any mortgage, deed of trust, pledge, security interest, assignment, deposit arrangement, charge or encumbrance, lien, or
other type of preferential arrangement.

 

“Obligations”
means all obligations and liabilities of every nature of Grantor now or hereafter existing under or arising out of or in connection
with the Notes, the Purchase Agreement, the Pledge and Security Agreement and all other documents, instruments or certificates
required to be delivered by Grantor at or prior to the Closing pursuant to the Purchase Agreement; together with all extensions
or renewals thereof, whether for principal, interest, fees, expenses, indemnities or otherwise, whether voluntary or involuntary,
direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owned 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 Parties as a preference, fraudulent transfer or otherwise, and all obligations of every nature of Grantor now or hereafter
existing under this Security Agreement (including, without limitation, interest and other amounts that, but for the filing of
a petition in bankruptcy with respect to Grantor, would accrue on such obligations, whether or not a claim is allowed against
Grantor for such amounts in the related bankruptcy proceeding).

 

“Patents”
means all patents, patent applications and like protections, including, without limitation, improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

 

“Permitted
Liens” mean: (i) Liens in favor of the Secured Parties in respect of the Obligations hereunder; (ii) Liens for taxes,
fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate
proceedings and which are adequately reserved for in accordance with U.S. GAAP; (iii) Liens of materialmen, mechanics, warehousemen,
carriers or employees or other like Liens arising in the ordinary course of business and securing obligations either not delinquent
or being contested in good faith by appropriate proceedings; (iv) Liens consisting of deposits or pledges to secure the payment
of worker’s compensation, unemployment insurance or other social security benefits or obligations, or to secure the performance
of bids, trade contracts, leases, public or statutory obligations, surety or appeal bonds or other obligations of a like nature
incurred in the ordinary course of business; (v) easements, rights of way, servitudes or zoning or building restrictions and other
minor encumbrances on real property and irregularities in the title to such property which do not in the aggregate materially
impair the use or value of such property or risk the loss or forfeiture of title thereto; (vi) Liens upon or in any equipment
now or hereafter acquired or held by the Grantor to secure the purchase price of such equipment or indebtedness incurred solely
for the purpose of financing or refinancing the acquisition of such equipment, provided that the Lien is confined solely to the
equipment so acquired and accessions thereon and proceeds thereof; (vii) Liens incurred in connection with the extension, renewal
or refinancing of the indebtedness secured by Liens of the type described in clauses (i) and (ii) and (vi) 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 other than for accrued interest and premium
on the amount of principal being extended, refinanced or renewed.

 

    	- 3 -

    	 

    

 

“Person”
means an individual, corporation, partnership, joint venture, trust, unincorporated organization, governmental agency or authority,
or any other entity of whatever nature.

 

“Pledged
Equity” means all shares of stock, partnership interests, limited liability company interests and all other equity interests
in a Person, whether such stock or interests are classified as Investment Property or General Intangibles under the UCC now or
hereafter owned by Grantor, including all securities convertible into, and rights, warrants, options and other rights to purchase
or otherwise acquire, any of the foregoing, including those owned on the date hereof and set forth on Schedule 2 annexed hereto,
the certificates or other instruments representing any of the foregoing and any interest of Grantor in the entries on the books
of any securities intermediary pertaining thereto and all distributions, dividends and other property received, receivable or
otherwise distributed in respect of or exchanged therefor.

 

“Purchase
Documents” means this Security Agreement, the Purchase Agreement, and the Note, each as amended, modified, renewed,
extended or replaced from time to time.

 

“Secured
Parties” means the Collateral Agent and all Purchasers.

 

“Trademarks”
means any trademark and service mark rights, whether registered or not, applications to register and registrations of the same
and like protections, and the parts of the goodwill of the business connected with the use of and symbolized by such marks.

 

“UCC”
means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of Nevada.

 

(b)          Where
applicable and except as otherwise defined herein, terms used in this Security Agreement shall have the meanings assigned to them
in the UCC. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Purchase Agreement or
if not defined there in the Note.

 

(c)          In
this Security Agreement, (i) the meaning of defined terms shall be equally applicable to both the singular and plural forms of
the terms defined; (ii) the captions and headings are for convenience of reference only and shall not affect the construction
of this Security Agreement; (iii) the words “hereof,” “herein,” “hereto,” “hereunder”
and the like mean and refer to this Security Agreement as a whole and not merely to the specific Article, Section, subsection,
paragraph or clause in which the respective word appears; (iv) the words “including,” “includes” and “include”
shall be deemed to be followed by the words “without limitation;” and (v) the term “or” shall not be limiting.

 

    	- 4 -

    	 

    

 

SECTION 4.          First
Priority Security Interest.

 

(a)          Subject
to Permitted Liens, as security for the payment and performance of the Obligations, the Grantor hereby pledges, assigns and grants
to the Secured Parties, a first priority security interest in all of the Grantor’s right, title and interest in, to and
under all of the Collateral that shall remain in effect until terminated in accordance with Section 19 hereof.

 

SECTION 5.          Financing
Statements, Etc. Grantor shall file within two (2) business days of the date hereof such financing statement in a form reasonably
acceptable to Collateral Agent, as is necessary to perfect and maintain the priority of the security interest of the Secured Parties
in the Collateral. The Grantor shall also file from time to time thereafter, all such financing statements, financing statement
assignments, continuation financing statements, and UCC filings, in form reasonably satisfactory to the Collateral Agent, and
Grantor shall execute and deliver and shall take all other action, as the Collateral Agent may reasonably request, to perfect
and continue perfected, maintain the priority of or provide notice of the security interest of the Secured Parties in the Collateral
(subject to the terms hereof) and to accomplish the purposes of this Security Agreement. Without limiting the generality of the
foregoing, the Grantor ratifies and authorizes the filing by the Collateral Agent of any financing statements filed prior to the
date hereof that accomplish the purposes of this Security Agreement.

 

SECTION 6.          Representations
and Warranties. The Grantor represents and warrants to the Collateral Agent that:

 

(a)          Grantor’s
full legal name, as it appears in official filings in the State of Nevada, is Fuse Science, Inc. Grantor is a corporation duly
incorporated, validly existing and in good standing under the laws of the State of Nevada and has all requisite power and authority
to execute, deliver and perform its obligations under this Security Agreement..

 

(b)          The
execution, delivery and performance by the Grantor of this Security Agreement has been duly authorized by all necessary corporate
action of the Grantor, and this Security Agreement constitutes the legal, valid and binding obligation of the Grantor, enforceable
against the Grantor in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other laws of general application affecting enforcement of creditors’ rights generally, as limited
by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)          Except
for the filing of appropriate financing statements, no authorization, consent, approval, license, exemption of, or filing or registration
with, any governmental authority or agency, or approval or consent of any other Person, is required for the due execution, delivery
or performance by the Grantor of this Security Agreement unless the same has already been obtained or is being obtained simultaneously
in connection herewith.

 

    	- 5 -

    	 

    

 

(d)          This
Security Agreement creates a first priority security interest that is enforceable against the Collateral and will create a first
priority security interest that is enforceable against the Collateral in which the Grantor hereafter acquires rights at the time
the Grantor acquires any such rights.

 

(e)          The
Grantor has the right and power to grant the pledge and security interests in the Collateral to the Secured Parties in the Collateral,
and the Grantor is the sole and complete owner of the Collateral, free from any Lien other than the liens and security interests
in favor of the Secured Parties, and the other Permitted Liens.

 

(f)          Grantor
acknowledges and agrees that the Lien that secures the Obligations (A) is separate and distinct from any and all other Liens on
the Collateral, (B) is enforceable without regard to whether or not any other Lien shall be or become void, voidable or unenforceable
or the indebtedness, obligations or liabilities secured by any such other Lien shall be discharged, whether by payment, performance,
avoidance or otherwise, and (C) shall not merge with or be impaired by any other Lien.

 

(g)          A
true and complete list of all Intellectual Property owned by Grantor, in whole or in part; is set forth on Schedule 1 attached
hereto.

 

(h)          Schedule
2 attached hereto sets forth all of the Pledged Equity owned by the Grantor, and the percentage ownership in each issuer thereof.

 

SECTION 7.          Covenants
of the Grantor. Until this Security Agreement has terminated in accordance with Section 19 hereof, the Grantor agrees to do
the following:

 

(a)          The
Grantor shall give prior written notice to the Collateral Agent (and in any event not later than thirty (30) days prior to any
change described below in this subsection) of: (i) any change in the Grantor’s name; (ii) any changes in the Grantor’s
identity or structure in any manner which might make any financing statement filed hereunder incorrect or misleading; or (iii)
any change in jurisdiction of organization; provided that the Grantor shall not locate any Collateral outside of the United States
nor shall the Grantor change its jurisdiction of organization to a jurisdiction outside of the United States.

 

(b)          The
Grantor shall continue to operate its business in the ordinary course in accordance with all applicable law and shall not surrender
or lose possession of (other than to the Secured Parties), sell, lease, rent or otherwise dispose of or transfer any of the Collateral
or any right or interest therein, except in the ordinary course of business consistent with past practice and except to the extent
of equipment that is obsolete or no longer useful to its business.

 

(c)          The
Grantor shall keep the Collateral free of all Liens except the liens and security interests in favor of the Secured Parties and
the other Permitted Liens.

 

    	- 6 -

    	 

    

 

(d)          The
Grantor shall protect, defend and maintain the validity and enforceability of its material Intellectual Property; (ii) promptly
advise Collateral Agent in writing of material infringements of its Intellectual Property; and (iii) not allow any Intellectual
Property material to Grantor’s business to be abandoned, forfeited or dedicated to the public without Collateral Agent’s
written consent.

 

(e)          So
long as no Event of Default shall have occurred and be continuing, the Grantor shall be entitled to exercise any and all voting
and other consensual rights pertaining to the Pledged Equity or any part thereof for any purpose not inconsistent with the terms
or purpose of this Security Agreement.

 

(f)          Grantor
shall not use or permit Collateral to be used in violation of any applicable law, rule or regulation or in violation of any policy
of insurance covering the Collateral.

 

(g)          Grantor
shall maintain such insurance with respect to liabilities, losses or damage in respect of the assets and properties of Grantor
as may customarily be carried or maintained under similar circumstances by corporations of established reputation engaged in similar
businesses in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be
customary for corporations similarly situated in the industry.

 

(h)          Grantor
shall deliver any and all originals of Collateral consisting of certificates or Instruments to Collateral Agent, accompanied by
Grantor’s endorsement, where necessary of transfer or assignments in blank, in form and substance satisfactory to Collateral
Agent.

 

(i)          Grantor
shall pay promptly when due all property and other taxes, assessments and government charges or levies imposed upon, and all claims
(including claims for labor, services, materials and supplies) against, the Collateral except to the extent the validity thereof
is being contested in good faith.

 

SECTION 8.          Authorization;
Collateral Agent Appointed Attorney-in-Fact. The Collateral Agent shall have the right, to, in the name of the Grantor, or
in the name of the Secured Parties, upon notice to, but without the requirement of assent by the Grantor, and the Grantor hereby
constitutes and appoints the Collateral Agent (and any employees or agents designated by the Collateral Agent) as the Grantor’s
true and lawful attorney-in-fact, with full power and authority to (a) upon and during the continuance of an Event of Default:
(i) assert, adjust, sue for, compromise or release any claims under any policies of insurance; and (ii) execute any and all such
other documents and instruments, and do any and all acts and things for and on behalf of the Grantor, that such Collateral Agent
may deem necessary or advisable to maintain, protect, realize upon and preserve the Collateral and the Secured Parties’
security interests therein and to accomplish the purposes of this Security Agreement and (b) to pay or discharge taxes or Liens
(other than Liens permitted under this Security Agreement or the Purchase Documents) levied or placed upon or threatened against
the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by Collateral
Agent in its sole discretion, any such payments made by Collateral Agent to become obligations of Grantor to Collateral Agent,
due and payable immediately without demand. The foregoing power of attorney is coupled with an interest and is irrevocable so
long as the Obligations have not been indefeasibly paid and performed in full and the commitments not terminated. The Grantor
hereby ratifies, to the extent permitted by law, all that the Collateral Agent shall lawfully and in good faith do or cause to
be done by virtue of and in compliance with this Section 8.

 

    	- 7 -

    	 

    

 

SECTION 9.          Remedies.

 

(a)          Upon
the occurrence and during the continuance of an Event of Default (as defined in the Purchase Agreement), the Collateral Agent
as agent for the Secured Parties shall have, in addition to all other rights and remedies granted to the Secured Parties in this
Security Agreement, and all other Purchase Documents, all rights and remedies of a Collateral Agent under the UCC and other applicable
laws. Without limiting the generality of the foregoing, upon the occurrence and during the continuance of an Event of Default,
the Collateral Agent, upon the election of the holders of the majority-in-interest of the Notes, may sell, resell, lease, use,
assign, license, sublicense, transfer or otherwise dispose of any or all of the Collateral in its then condition or following
any commercially reasonable preparation or processing (utilizing in connection therewith any of Grantor’s assets, without
charge or liability to the Secured Parties therefor) at public or private sale, by one or more contracts, in one or more parcels,
at the same or different times, for cash or credit, or for future delivery without assumption of any credit risk, all as the Collateral
Agent deems advisable; provided, however, that the Grantor shall be credited with the net proceeds of sale only when such proceeds
are finally collected by the Secured Parties. The Collateral Agent, upon the election of the majority-in-interest of the Notes,
shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of redemption, which right or equity of redemption the
Grantor hereby releases, to the extent permitted by law. The Grantor hereby agrees that the sending of notice by ordinary mail,
postage prepaid, to the address of the Grantor set forth herein or subsequent address that the Grantor provides to the Collateral
Agent in writing, of the place and time of any public sale or of the time after which any private sale or other intended disposition
is to be made, shall be deemed reasonable notice thereof if such notice is sent five (5) business days prior to the date of such
sale or other disposition or the date on or after which such sale or other disposition may occur. Grantor hereby agrees that it
will at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by
the Collateral Agent and make it available to the Collateral Agent at a place to be designated by the Collateral Agent that is
reasonably convenient to both parties. Upon the occurrence and during the continuance of an Event of Default, Collateral Agent
may (i) enter onto the property where any Collateral is located and take possession thereof with or without judicial process,
(ii) prior to the disposition of the Collateral, store, process, repair or recondition the Collateral or otherwise prepare the
Collateral for disposition in any manner to the extent Collateral Agent deems appropriate, (iii) take possession of Grantor’s
premises or place custodians in exclusive control thereof, remain on such premises and use the same and any of Grantor’s
equipment for the purpose of completing any work in process, taking any actions described in the preceding clause, and (iv) collecting
any Obligation.

 

(b)          The
cash proceeds actually received from the sale or other disposition or collection of the Collateral, and any other amounts received
in respect of the Collateral the application of which is not otherwise provided for herein shall be applied first, to the payment
of the costs and expenses of the Secured Parties in exercising or enforcing its rights hereunder and in collecting or attempting
to collect any of the Collateral, and to the payment of all other amounts payable to the Secured Parties pursuant to Section
13 hereof; and second, to the payment of the Obligations. Any surplus thereof that exists after payment and performance in
full of the Obligations shall be promptly paid over to the Grantor or otherwise disposed of in accordance with the UCC or other
applicable law. The Grantor shall remain liable to the Secured Parties for any deficiency that exists after any sale or other
disposition or collection of the Collateral and Grantor shall be liable for the reasonable fees of any attorneys employed by the
Secured Parties to collect such deficiency.

 

    	- 8 -

    	 

    

 

(c)          Grantor
recognizes that, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws, the Secured
Parties may be compelled, with respect to any sale of all or any part of the Pledged Equity conducted without prior registration
or qualification of such Pledged Equity under the Securities Act and/or such state securities laws, to limit purchasers to those
who will agree, among other things, to acquire the Pledged Equity for their own respective accounts, for investment and not with
a view to the distribution or resale thereof. Grantor acknowledges that any such private placement may be at prices and on terms
less favorable than those obtainable through a sale without such restrictions (including an offering made pursuant to a registration
statement under the Securities Act) and, notwithstanding such circumstances, Grantor agrees that any such private placement shall
not be deemed, in and of itself, to be commercially unreasonable and that the Secured Parties shall have no obligation to delay
the sale of any Pledged Equity for the period of time necessary to permit the issuer thereof to register it for a form of sale
requiring registration under the Securities Act or under applicable state securities laws, even if such issuer would, or should,
agree to so register it. If the Secured Parties determine to exercise their right to sell any or all of the Pledged Equity, upon
written request, Grantor shall and shall cause each issuer of any Pledged Equity to be sold hereunder from time to time to furnish
to the Collateral Agent all such information as the Collateral Agent may request in order to determine the amount of Pledged Equity
which may be sold by the Secured Parties in exempt transactions under the Securities Act and the rules and regulations of the
Securities and Exchange Commission thereunder, as the same are from time to time in effect.

 

(d)          Upon
the occurrence and during the continuation of an Event of Default, (x) upon written notice from Collateral Agent to Grantor, all
rights of Grantor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant
hereto shall cease, and all such rights shall thereupon become vested in the Collateral Agent who shall thereupon have the sole
right to exercise such voting and other consensual rights; (y) except as otherwise specified in the Purchase Documents, all rights
of Grantor to receive the dividends, other distributions, principal and interest payments which it would otherwise be authorized
to receive and retain pursuant hereto shall cease, and all such rights shall thereupon become vested in the Collateral Agent who
shall thereupon have the sole right to receive and hold as Collateral such dividends, other distributions, principal and interest
payments; and (z) all dividends, principal, interest payments and other distributions which are received by Grantor contrary to
the provisions of clause (y) above shall be received in trust for the benefit of the Secured Parties, shall be segregated from
other funds of Grantor and shall forthwith be paid over to the Collateral Agent as Collateral in the same form as so received
(with any necessary endorsements).

 

    	- 9 -

    	 

    

 

(e)          In
order to permit Secured Parties to exercise the voting and other consensual rights which they may be entitled to exercise pursuant
hereto and to receive all dividends and other distributions which they may be entitled to receive hereunder, (I) Grantor shall
promptly execute and deliver (or cause to be executed and delivered) to Collateral Agent all such proxies, dividend payment orders
and other instruments as Collateral Agent may from time to time reasonably request, and (II) without limiting the effect of clause
(I) above, Grantor hereby grants to Collateral Agent an irrevocable proxy to vote the Pledged Equity and to exercise all other
rights, powers, privileges and remedies to which a holder of the Pledged Equity would be entitled (including giving or withholding
written consents of holders of equity interests, calling special meetings of holders of equity interests and voting at such meetings),
which proxy shall be effective, automatically and without the necessity of any action (including any transfer of any Pledged Equity
on the record books of the issuer thereof) by any other Person (including the issuer of the Pledged Equity or any officer or agent
thereof), upon the occurrence of an Event of Default and which proxy shall only terminate upon the payment in full of the Obligations,
the cure of such Event of Default or waiver thereof as evidenced by a writing executed by Collateral Agent.

 

(f)          Anything
contained herein to the contrary notwithstanding, upon the occurrence and during the continuation of an Event of Default, (i)
the Secured Parties shall have the right (but not the obligation) to bring suit, in the name of Grantor, the Secured Parties or
otherwise, to enforce any Collateral constituting Intellectual Property, in which event Grantor shall, at the request of the Collateral
Agent, do any and all lawful acts and execute any and all documents required by the Collateral Agent in aid of such enforcement
and Grantor shall promptly, upon demand, reimburse and indemnify the Secured Parties as provided in Section 13 hereof,
in connection with the exercise of its rights under this Section, and, to the extent that the Collateral Agent shall elect not
to bring suit to enforce any Collateral constituting Intellectual Property as provided in this Section, Grantor agrees to use
all reasonable measures, whether by action, suit, proceeding or otherwise, to prevent the infringement of any of the Collateral
constituting Intellectual Property by others and for that purpose agrees to use its commercially reasonable judgment in maintaining
any action, suit or proceeding against any Person so infringing reasonably necessary to prevent such infringement; (ii) upon written
demand from the Collateral Agent, Grantor shall execute and deliver to Collateral Agent an assignment or assignments of the Collateral
constituting Intellectual Property and such other documents as are necessary or appropriate to carry out the intent and purposes
of this Security Agreement; and (iii) Grantor agrees that such an assignment and/or recording shall be applied to reduce the Obligations
outstanding only to the extent that the Secured Parties receive cash proceeds in respect of the sale of, or other realization
upon, the Collateral constituting Intellectual Property.

 

(g)          In
addition to, and not by way of limitation of, the granting of a security interest in the Collateral pursuant hereto, Grantor,
effective upon the occurrence and during the continuation of an Event of Default, hereby assigns, transfers and conveys to the
Secured Parties the nonexclusive right and license to use all Trademarks, Copyrights, Patents or technical processes owned or
used by Grantor that relate to the Collateral, together with any goodwill associated therewith, all to the extent necessary to
enable the Secured Parties to realize on the Collateral in accordance with this Security Agreement and to enable any transferee
or assignee of the Collateral to enjoy the benefits of the Collateral. This right shall inure to the benefit of all successors,
assigns and transferees of the Secured Parties and their successors, assigns and transferees, whether by voluntary conveyance,
operation of law, assignment, transfer, foreclosure, deed in lieu of foreclosure or otherwise. Such right and license shall be
granted free of charge, without requirement that any monetary payment whatsoever be made to Grantor.

 

    	- 10 -

    	 

    

 

SECTION 10.         Secured
Parties’ Rights; Certain Waivers. The Grantor waives, to the fullest extent permitted by law: (i) any right of redemption
with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling of the Collateral
or other collateral or security for the Obligations; (ii) any right to require the Secured Parties to: (A) proceed against any
Person, (B) exhaust any other collateral or security for any of the Obligations, (C) pursue any remedy in the Secured Parties
power or (D) except as provided herein or in the Note, make or give any presentments, demands for performance, notices of nonperformance,
protests, notices of protests or notices of dishonor in connection with any of the Collateral; and (iii) all claims, damages and
demands against the Secured Parties arising out of the repossession, retention, sale or application of the proceeds of any sale
of the Collateral.

 

SECTION 11.         Notices.
All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing, and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or made: (i) if delivered by hand, when received,
(ii) if sent by a nationally recognized courier service, one business day after delivery to such courier service, (iii) if transmitted
by facsimile or e-mail, at the time such transmission is confirmed to the sender, (iv) if sent by certified mail, four business
days after delivery to the postal system, in each case addressed as follows in the case of the Company and the Collateral Agent
or to such other address as may be hereafter notified by the respective parties hereto:

 

If to Grantor:

 

Fuse Science, Inc.

6135 NW 167th Street

Suite E-21

Miami Lakes, FL 33015

Tel: (305) 503-3873

Fax: (877) 212-7907

 

With a copy
(which shall not constitute notice) to:

 

	Gutiérrez Yelin & Boulris, PLLC	Roetzel & Andress
	100 Almeria Avenue, Suite 340	350  East Las Olas Boulevard
	Coral Gables, FL 33134	Las Olas Centre II, Suite 1150
	Attention: Pedro G. Menocal, Esq.	Fort Lauderdale, FL 33301
	Tel: (305) 358-5100	Attention: Dale Bergman
	Fax: (888) 281-1829	Tel: (954) 462-4150
	 	Fax:  (954) 462-4260

 

    	- 11 -

    	 

    

 

If to the Collateral Agent:

 

MusclePharm Corporation 

4721 Ironton Street, Building A

Denver, CO 80239

Attention: Brad Pyatt

Tel: (303) 396-6100

Fax: 800.490.7165

 

With a copy (which shall not constitute
notice) to:

 

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, New York 10006

Attention of Harvey Kesner, Esq.

Tel: (212) 930-9700

Fax: (212) 930-9725

 

SECTION 12.         No
Waiver; Cumulative Remedies. No failure on the part of the Collateral Agent to exercise, and no delay in exercising, any right,
remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right,
remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights and remedies under this Security Agreement are cumulative and not exclusive of any rights, remedies, powers
and privileges that may otherwise be available to the Secured Parties.

 

SECTION 13.         Costs
and Expenses; Indemnity. The Grantor agrees to pay all reasonable costs and expenses of the Secured Parties, in connection
with the enforcement of any rights or interests under, this Security Agreement and the sale or collection of, or other realization
upon, any of the Collateral, including all reasonable expenses of taking, collecting, holding, sorting, handling, preparing for
sale, selling or the like and other such expenses of sales and collections of the Collateral. Grantor agrees to indemnify the
Secured Parties from and against any and all claims, losses and liabilities in any way relating to, growing out of or resulting
from this Security Agreement and the transactions contemplated hereby (including, without limitation, enforcement of this Security
Agreement), except to the extent such claims, losses or liabilities result solely from the Secured Parties’ gross negligence
or willful misconduct as finally determined by a court of competent jurisdiction. The obligations of Grantor in this Section
13 shall survive the termination of this Security Agreement and the discharge of Grantor’s other obligations under this
Security Agreement or the Purchase Documents.

 

SECTION 14.         Binding
Effect. This Security Agreement shall be binding upon, inure to the benefit of and be enforceable by the Grantor, the Collateral
Agent and the Purchasers and their respective successors and assigns.

 

    	- 12 -

    	 

    

 

SECTION 15.         Governing
Law. This Security Agreement shall be governed by and construed under the laws of the State of New York without regard to
its principles of conflict of laws.

 

SECTION 16.         Entire
Agreement; Amendment. This Security Agreement and the Purchase Documents contains the entire agreement of the parties with
respect to the subject matter hereof and shall not be amended except by the written agreement of the Grantor and the Collateral
Agent.

 

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

 

SECTION 18.         Counterparts.
This Security Agreement may be executed by one or more of the parties to this Security Agreement on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

SECTION 19.         Termination.
Upon the payment and performance in full of all Obligations, this Security Agreement shall terminate (except with respect to Section
13 hereof) and the Secured Parties shall promptly, at the cost of the Grantor, execute and deliver to the Grantor such documents
and instruments reasonably requested by the Grantor as shall be necessary to evidence termination of all security interests given
by the Grantor to the Secured Parties hereunder.

 

SECTION 20.         Collateral
Agent May Perform. If Grantor fails to perform any agreement contained herein, following notice to Grantor, Collateral Agent
may itself perform, or cause performance of, such agreement, and the expenses of Collateral Agent incurred in connection therewith
shall be payable by Grantor.

 

SECTION 21.         Standard
of Care. The powers conferred on Secured Parties hereunder are solely to protect their interest in the Collateral and shall
not impose any duty upon them to exercise any such powers. Except for the exercise of reasonable care in custody of any Collateral
in its possession and the accounting for moneys actually received by it hereunder, Secured Parties shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining
to any Collateral. Secured Parties shall be deemed to have exercised reasonable care in custody and preservation of Collateral
in their possession if such Collateral in accorded treatment substantially equal to that which Secured Parties accords its own
property.

 

SECTION 22.         Further
Assurances. Grantor agrees that from time to time, at the expense of Grantor, Grantor will promptly execute and deliver all
further instruments and documents and take all further action, that may be necessary or desirable, or that Secured Parties may
reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable
Secured Parties to exercise and enforce their rights and remedies hereunder with respect to any Collateral.

 

    	- 13 -

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have duly executed this Security Agreement, as of the date first above written.

 

GRANTOR:

 

FUSE SCIENCE, INC.

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

COLLATERAL AGENT:

 

MUSCLEPHARM CORPORATION

 

	By:	 	 
	Name:	 	  
	Title:	 	 

 

    	- 14 -

    	 

    

 

EXHIBIT A

 

COLLATERAL DESCRIPTION

 

	GRANTOR:	FUSE SCIENCE, INC., a Nevada
    corporation
	 	 
	COLLATERAL AGENT: 	MUSCLEPHARM CORPORATION, a Nevada corporation

 

The Collateral consists of all rights,
title and interest in and to the following assets of the Grantor:

 

1.   All accounts including,
without limitation, all present and future rights of debtor to payment for goods sold or leased or for services rendered, which
are not evidenced by instruments or chattel paper, and whether or not earned by performance and all rights to payment arising
out of the use of a credit or charge card and all information contained on or for use with any such card and all records and evidences
of credit card transactions (the “Accounts”);

 

2.   All present and future
contract rights, general intangibles (including, but not limited to, tax and duty refunds, goodwill, processes, drawings, blueprints,
customer lists, licenses, whether as licensor or licensee, choses in action and other claims and existing and future leasehold
interests in equipment, real estate and fixtures), chattel paper, documents, instruments, securities and other investment property,
letters of credit, letter of credit rights, commercial tort claims, payment intangibles, software, supporting obligations, bankers’
acceptances and guaranties;

 

3.   All present and future
monies, securities, credit balances, deposits, deposit accounts and other property of debtor now or hereafter held or received
by or in transit to the secured parties or their affiliates or at any other depository or other institution from or for the account
of debtor, whether for safekeeping, pledge, custody, transmission, collection or otherwise, and all present and future liens,
security interests, rights, remedies, title and interest in, to and in respect of accounts and other collateral, including, without
limitation, (i) rights and remedies under or relating to guaranties, contracts of suretyship, letters of credit and credit and
other insurance related to the collateral, (ii) rights of stoppage in transit, replevin, repossession, reclamation and other rights
and remedies of an unpaid vendor, lienor or Collateral Agent, (iii) goods described in invoices, documents, contracts or instruments
with respect to, or otherwise representing or evidencing, accounts or other collateral, including, without limitation, returned,
repossessed and reclaimed goods, and (iv) deposits by and property of account debtors or other persons securing the obligations
of account debtors;

 

4.   All of Grantor’s
now owned and hereafter existing or acquired raw materials, work in process, finished goods and all other inventory of whatsoever
kind or nature, wherever located (“Inventory”);

 

    	- 15 -

    	 

    

 

5.   All of Grantor’s
now owned and hereafter acquired equipment, machinery, computers and computer hardware and software (whether owned or licensed),
vehicles, tools, furniture, fixtures, all attachments, accessions and property now or hereafter affixed thereto or used in connection
therewith, and substitutions and replacements thereof, wherever located (“Equipment”);

 

6.   All of Grantor’s
now owned and hereafter existing or acquired securities, financial assets, securities accounts, securities entitlements and all
other investment property of whatsoever kind or nature, wherever located, including, without limitation, securities issued by
any subsidiary of debtor (“Investment Property”);

 

7.   All Intellectual Property,
including, without limitation, the Intellectual Property listed on Schedule 1;

 

8.   All securities (including,
without limitation, the Pledged Equity);

 

9.   All of Grantor’s
present and future books of account of every kind or nature, purchase and sale agreements, invoices, ledger cards, bills of lading
and other shipping evidence, statements, correspondence, memoranda, credit files and other data relating to the collateral or
any account debtor, together with the tapes, disks, diskettes and other data and software storage media and devices, file cabinets
or containers in or on which the foregoing are stored (including any rights of debtor with respect to the foregoing maintained
with or by any other person) (“Records”); and

 

10.  All rights, claims and interests
in any of the foregoing, and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements,
products and proceeds of the foregoing, in any form, including, without limitation, insurance proceeds and any claims against
third parties for loss or damage to or destruction of any or all of the foregoing.

 

    	- 16 -

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