Document:

Exhibit 10.5

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of September 30, 2015 (this “Agreement”), is among Amarantus Bioscience Holdings,
Inc. (the “Company”), all of the Subsidiaries of the Company, which Subsidiaries are set forth on Schedule
1 hereto the Subsidiaries, and together with the Company, collectively the “Debtors”) and the holders of the
Company’s 12% Senior Secured Convertible Promissory Notes in the original aggregate principal amount of $6,076,556 due on
or about September 29, 2016 (collectively, the “Notes”) signatory hereto, their endorsees, transferees and
assigns (collectively, the “Secured Parties”).

 

WITNESSETH:

 

WHEREAS,
in order to induce the Secured Parties to extend the loans evidenced by the Notes and to consummate the other simultaneous transactions
contemplated by Purchase Agreement (the “Simultaneous Transactions”), the Debtors have agreed to execute and
deliver to the Secured Parties this Agreement and to grant the Secured Parties, pari passu with each other Secured
Party and through the Agent (as defined in Section 18 hereof), a security interest in the Collateral to secure the prompt payment,
performance and discharge in full of all of the Debtors’ Obligations to the Secured Parties including, but not limited to,
under the Notes, the Securities Purchase Agreement dated on or about September 15, 2015 by and among Dominion Capital. LLC (“Dominion”),
Delafield Investments Limited (“Delafield”) and the Company (the “Purchase Agent”)

 

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

 

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

 

(a)          “Collateral”
means the collateral in which the Secured Parties are granted a security interest by this Agreement and which shall include the
following personal property of the Debtors, whether presently owned or existing or hereafter acquired or coming into existence,
wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds,
products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of
insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities,
equity interest or other property at any time and from time to time acquired, receivable or otherwise distributed in respect of,
or in exchange for, any or all of the following:

 

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(i)         All
goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature
and wherever situated, together with all documents of title and documents representing the same, all additions and accessions
thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and
useful in connection with the Debtors’ businesses and all improvements thereto; and (B) all inventory, including all now
owned or hereafter acquired inventory wherever located including in transit or in warehouses;

 

(ii)         All
contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests,
stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities,
licenses, distribution and other agreements, computer software (whether “off-the-shelf”, licensed from
any third party or developed by Debtors), computer software development rights, leases, franchises, customer lists, quality control
procedures, grants and rights, goodwill, Intellectual Property and income tax refunds;

 

(iii)        All
accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties
with respect to each account, including any right of stoppage in transit;

 

(iv)        All
documents, letter-of-credit rights, instruments and chattel paper;

 

(v)         All
commercial tort claims;

 

(vi)        All
deposit accounts and all cash (whether or not deposited in such deposit accounts);

 

(vii)       All
investment property;

 

(viii)      All
supporting obligations; and

 

(ix)         All
files, records, books of account, business papers, and computer programs; and

 

(x)          the
Pledged Securities;

 

(xi)         the
products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(x) above.

 

Without
limiting the generality of the foregoing, the “Collateral” shall include all investment property and general
intangibles respecting ownership and/or other equity interests in each subsidiary of the Debtors, including, without limitation,
the shares of capital stock and the other equity interests listed on Schedule H hereto (as the same may be modified from
time to time pursuant to the terms hereof), and any other shares of capital stock and/or other equity interests of any Subsidiary
of the Debtors obtained in the future, and, in each case, all certificates representing such shares and/or equity interests and,
in each case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received, receivable
or distributed in respect of, or exchanged for, any of the foregoing and all rights arising under or in connection with the Pledged
Securities, including, but not limited to, all dividends, interest and cash.

 

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Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the
extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable
law); provided, however, that to the extent permitted by applicable law, this Agreement shall create a valid security
interest in such asset and, to the extent permitted by applicable law, this Agreement shall create a valid security interest in
the proceeds of such asset.

 

(b)          “Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith,
including, without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all
letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof,
and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part
thereof, (iii) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress,
service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing
or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether
in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or
any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade
secrets arising under the laws of the United States, any other country or any political subdivision thereof, (v) all rights to
obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes
of action for infringement of the foregoing.

 

(c)          “Majority
in Interest” means, at any time of determination, 50.01% of the outstanding aggregate principal amount of all Notes
of the Secured Parties.

 

(d)          “Necessary
Endorsement” means undated stock powers endorsed in blank or other proper instruments of assignment duly executed and
such other instruments or documents as the Agent (as that term is defined below) may reasonably request.

 

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

 

(f)          “Organizational
Documents” means with respect to Debtors, the documents by which Debtors were organized (such as a certificate of incorporation,
certificate of limited partnership or articles of organization, and including, without limitation, any certificates of designation
for preferred stock or other forms of preferred equity) and which relate to the internal governance of Debtors (such as bylaws,
a partnership agreement or an operating, limited liability or members agreement).

 

(g)          “Pledged
Interests” shall have the meaning ascribed to such term in Section 4(j).

 

(h)          “Pledged
Securities” shall have the meaning ascribed to such term in Section 4(i).

 

(i)          “Subsidiary”
means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock
or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power
only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person and “Subsidiaries” means collectively each and
every Subsidiary of a Person. The signature page hereto of the Debtors lists, in addition to the Company, all Subsidiaries of
the Company

 

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(ii)         “UCC”
means the Uniform Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that
defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed
in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions,
they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones
shall be controlling.

 

(j)          “Unanimous
Amount” means that so long as Delafield and Dominion are the only Secured Parties, the written consent of Delafield
and Dominion until such time, if ever, as the Debtors have no Obligations to Delafield and Dominion. In the event that Delafield
and Dominion are no longer the only Secured Parties, then this definition shall no long apply and all matters requiring approval
of the Secured Parties shall be made by the Secured Parties holding a Majority in Interest.

 

2.           Grant
of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by the Notes
(and to convert other loans made or Securities acquired by one or more of the Secured Parties into Notes) and to secure the complete
and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, Debtors hereby unconditionally
and irrevocably pledge, grant and hypothecate to the Secured Parties a security interest in and to, a lien upon and a right of
set-off against all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral (a “Security
Interest” and, collectively, the “Security Interests”).

 

3.           Delivery
of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, Debtors shall deliver or cause to be
delivered to the Agent (a) any and all certificates and other instruments representing or evidencing the Pledged Securities, and
(b) any and all certificates and other instruments or documents representing any of the other Collateral, in each case, together
with all Necessary Endorsements. The Debtors are, contemporaneously with the execution hereof, delivering to Agent, or has previously
delivered to Agent, a true and correct copy of each Organizational Document governing any of the Pledged Securities.

 

4.           Representations,
Warranties, Covenants and Agreements of the Debtors. Except as expressly set forth under the corresponding section of the
disclosure schedules delivered to the Secured Parties concurrently herewith and attached hereto (the “Disclosure Schedules”),
which Disclosure Schedules shall be deemed a part hereof, Debtors represent and warrant to, and covenants and agrees with, the
Secured Parties as follows:

 

(a)       Each
Debtor has the requisite corporate, partnership, limited liability company or other power and authority to enter into this Agreement
and otherwise to carry out its obligations hereunder. The execution, delivery and performance by Debtors of this Agreement and
the filings contemplated therein have been duly authorized by all necessary action on the part of Debtors and no further action
is required by Debtors. This Agreement has been duly executed by Debtors. This Agreement constitutes the legal, valid and binding
obligation of Debtors, enforceable against Debtors in accordance with its terms except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization and similar laws of general application relating to or affecting the rights
and remedies of creditors and by general principles of equity.

 

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(b)          Each
Debtor has no place of business or offices where their respective books of account and records are kept (other than temporarily
at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule
A attached hereto. Except as specifically set forth on Schedule A, Debtors are the record owner of the real property
where such Collateral is located, and there exist no mortgages or other liens on any such real property. Except as disclosed on
Schedule A, none of such Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor.

 

(c)          Except
as set forth on Schedule B attached hereto, the Debtors are the sole owner of the Collateral (except for non-exclusive
licenses granted by Debtors in the ordinary course of business), free and clear of any liens, security interests, encumbrances,
rights or claims, and is fully authorized to grant the Security Interests. Except as set forth on Schedule C attached hereto,
there is not on file in any governmental or regulatory authority, agency or recording office an effective financing statement,
security agreement, license or transfer or any notice of any of the foregoing (other than those that will be filed in favor of
the Secured Parties pursuant to this Agreement) covering or affecting any of the Collateral. Except as set forth on Schedule
C attached hereto and except pursuant to this Agreement the Purchase Agreement, the Notes and the other Documents as long
as this Agreement shall be in effect, the Debtors shall not execute and shall not knowingly permit to be on file in any such office
or agency any other financing statement or other document or instrument (except to the extent filed or recorded in favor of the
Secured Parties pursuant to the terms of this Agreement).

 

(d)          Except
as set forth on Schedule D attached hereto, no written claim has been received that any Collateral or Debtors’ use
of any Collateral violates the rights of any third party. Except as set forth on Schedule D attached hereto, there has
been no adverse decision to Debtors’ claim of ownership rights in or exclusive rights to use the Collateral in any jurisdiction
or to Debtors’ right to keep and maintain such Collateral in full force and effect, and there is no proceeding involving
said rights pending or, to the best knowledge of Debtors, threatened before any court, judicial body, administrative or regulatory
agency, arbitrator or other governmental authority.

 

(e)          The
Debtors shall at all times maintain its books of account and records relating to the Collateral at its principal place of business
and its Collateral at the locations set forth on Schedule A attached hereto and may not relocate such books of account
and records or tangible Collateral unless it delivers to the Secured Parties at least 30 days prior to such relocation (i) written
notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that appropriate
financing statements under the UCC and other necessary documents have been filed and recorded and other steps have been taken
to perfect the Security Interests to create in favor of the Secured Parties a valid, perfected and continuing perfected first
priority lien in the Collateral.

 

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(f)          This
Agreement creates in favor of the Secured Parties a valid security interest in the Collateral securing the payment and performance
of the Obligations. Upon making the filings described in the immediately following paragraph, all security interests created hereunder
in any Collateral which may be perfected by filing Uniform Commercial Code financing statements shall have been duly perfected.
Except for the filing of the Uniform Commercial Code financing statements referred to in the immediately following paragraph,
the recordation of the Intellectual Property Security Agreement (as defined in Section 4(p) hereof) with respect to copyrights
and copyright applications in the United States Copyright Office referred to in paragraph (m), the execution and delivery of deposit
account control agreements satisfying the requirements of Section 9-104(a)(2) of the UCC with respect to each deposit account
of the Debtors, and the delivery of the
certificates and other instruments provided in Section 3, no action is necessary to create, perfect or protect the security interests
created hereunder. Without limiting the generality of the foregoing, except for the filing of said financing statements, the recordation
of said Intellectual Property Security Agreement, and the execution and delivery of said deposit account control agreements, no
consent of any third parties and no authorization, approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for (i) the execution, delivery and performance of this Agreement, (ii) the creation
or perfection of the Security Interests created hereunder in the Collateral or (iii) the enforcement of the rights of the Agent
and the Secured Parties hereunder.

 

(g)          Debtors
hereby authorizes the Agent to file one or more (i) financing statements under the UCC or any other similar law with respect to
the Obligations of the Debtors to the Secured Parties, (ii) amend and restate all prior financing statements under the UCC, and
(iii) take all such other actions so that all Obligations hereunder are pari passu between each of the Secured Parties
with respect to the Security Interests, with the proper filing and recording agencies in any jurisdiction deemed proper by it,
including foreign jurisdictions, including but not limited to filing a fixed and floating charge over the Security Interests in
the

 

(h)          The
execution, delivery and performance of this Agreement by the Debtors does not (i) violate any of the provisions of any Organizational
Documents of Debtors or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable law,
rule or regulation applicable to Debtors or (ii) conflict with, or constitute a breach, default and/or on event of default (or
an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt
or other instrument (evidencing Debtors’ debt or otherwise) or other understanding to which Debtors are a party or by which
any property or asset of Debtors are bound or affected. If any, all required consents (including, without limitation, from stockholders
or creditors of Debtors) necessary for Debtors to enter into and perform its obligations hereunder have been obtained, and which
consents are set forth on Exhibit D hereto.

 

(i)          The
capital stock and other equity interests listed on Schedule H hereto (the “Pledged Securities”) represent
all of the capital stock and other equity interests of all of the subsidiaries of the Debtors, and represent all capital stock
and other equity interests owned, directly or indirectly, by the Debtors. All of the Pledged Securities are validly issued, fully
paid and nonassessable, and except as set forth on Schedule H attached hereto, the Debtors are the legal and beneficial
owner of the Pledged Securities, free and clear of any lien, security interest or other encumbrance except for the security interests
created by this Agreement. 

 

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(j)          The
ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the
“Pledged Interests”) by their express terms do not provide that they are securities governed by Article 8 of
the UCC and are not held in a securities account or by any financial intermediary.

 

(k)          Except
as set forth on Schedule D, Debtors shall at all times maintain the liens
and Security Interests provided for hereunder as valid and perfected first priority liens and security interests in the Collateral
in favor of the Secured Parties until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section
14 hereof. Debtors hereby agree to defend the same against the claims of any and all persons and entities. Debtors shall safeguard
and protect all Collateral for the account of the Secured Parties. At the request of the Agent, Debtors will sign and deliver
to the Agent on behalf of the Secured Parties at any time or from time to time one or more financing statements pursuant to the
UCC in form reasonably satisfactory to the Agent and will pay the cost of filing the same in all public offices wherever filing
is, or is deemed by the Agent to be, necessary or desirable to effect the rights and obligations provided for herein. Without
limiting the generality of the foregoing, Debtors shall pay all fees, taxes and other amounts necessary to maintain the Collateral
and the Security Interests hereunder, and Debtors shall obtain and furnish to the Agent from time to time, upon demand, such releases
and/or subordinations of claims and liens which may be required to maintain the priority of the Security Interests hereunder.

 

(l)          Debtors
will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for non-exclusive
licenses granted by Debtors in their ordinary course of business [and sales of inventory by Debtors in their ordinary course of
business) without the prior written consent as provided herein.

 

(m)          Debtors
shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and shall not
operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

(n)          Debtors
shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral hereafter
acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established reputation
having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances by other
such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover the
full replacement cost thereof. Debtors shall cause each insurance policy issued in connection herewith to provide, and the insurer
issuing such policy to certify to the Agent, that (a) the Agent will be named as lender loss payee and additional insured under
each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever,
such insurer will promptly notify the Agent and such cancellation or change shall not be effective as to the Agent for at least
thirty (30) days after receipt by the Agent of such notice, unless the effect of such change is to extend or increase coverage
under the policy; and (c) the Agent will have the right (but no obligation) at its election to remedy any default in the payment
of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default (as defined in the Notes)
exists and if the proceeds arising out of any claim or series of related claims do not exceed $50,000, loss payments in each instance
will be applied by the Debtors to the repair and/or replacement of property with respect to which the loss was incurred to the
extent reasonably feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable
to the Debtors; provided, however, that payments received by Debtors after an Event of Default occurs and is continuing
or in excess of $50,000 for any occurrence or series of related occurrences shall be paid to the Agent on behalf of the Secured
Parties and, if received by Debtors, shall be held in trust for the Secured Parties and immediately paid over to the Agent unless
otherwise directed in writing by the Agent. Copies of such policies or the related certificates, in each case, naming the Agent
as lender loss payee and additional insured shall be delivered to the Agent at least annually and at the time any new policy of
insurance is issued.

 

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(o)          Debtors
shall promptly but in no event later than two (2) days of obtaining knowledge thereof, advise the Secured Parties, in sufficient
detail, of any material adverse change in the Collateral, and of the occurrence of any event which would have a material adverse
effect on the value of the Collateral or on the Secured Parties’ security interest, through the Agent, therein.

 

(p)          Debtors
shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing statements
or other instruments, documents, certificates and assurances and take such further action as the Agent may from time to time request
and may in its sole discretion deem necessary to perfect, protect or enforce the Secured Parties’ security interest in the
Collateral including, without limitation, if applicable, the execution and delivery of a separate security agreement with respect
to Debtors’ Intellectual Property (“Intellectual Property Security Agreement”) in which the Secured Parties
have been granted a security interest hereunder, substantially in a form reasonably acceptable to the Agent, which Intellectual
Property Security Agreement, other than as stated therein, shall be subject to all of the terms and conditions hereof.

 

(q)          Debtors
shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and upon reasonable
prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the Agent from time
to time (except upon an Event of Default, an event of default (and/or an event of default or an event of default that would occur
upon the passage of time and/or the giving of notice), in which event inspection shall be at any time as requested by all of the
above parties.

 

(r)          Debtors
shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims, causes
of action and accounts receivable in respect of the Collateral.

 

(s)          Debtors
shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment, execution or
other legal process levied against any Collateral and of any other information received by Debtors that may materially affect
the value of the Collateral, the Security Interest or the rights and remedies of the Secured Parties hereunder.

 

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(t)          All
information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of Debtors with respect to the Collateral
is accurate and complete in all material respects as of the date furnished.

 

(u)          The
Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any
rights and franchises material to its business.

 

(v)         Debtors
will not change its name, type of organization, jurisdiction of organization, organizational identification number (if it has
one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days prior written
notice to the Secured Parties of such change and, at the time of such written notification, Debtors provides any financing statements
or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(w)          Except
in the ordinary course of business, Debtors may not consign any of its inventory or sell any of its inventory on bill and hold,
sale or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be unreasonably
withheld.

 

(x)          Debtors
may not relocate their chief executive office to a new location without providing 30 days prior written notification thereof to
the Secured Parties and so long as, at the time of such written notification, Debtors provide any financing statements or fixture
filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(y)          Debtors
were organized and remains organized solely under the laws of the state set forth next to Debtors’ name in Schedule E
attached hereto, which Schedule E sets forth Debtors’ organizational identification number or, if Debtors do
not have one, states that one does not exist.

 

(z)          
(i) The actual name of Debtors are the name set forth in Schedule F attached hereto; (ii) Debtors have no trade names except
as set forth on Schedule F attached hereto; (iii) Debtors have not used any name other than that stated in the preamble
hereto or as set forth on Schedule F for the preceding five years; and (iv) no entity has merged into Debtors or been acquired
by Debtors within the past five years except as set forth on Schedule F.

 

(aa)         At
any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the security interest created hereby, the Debtors shall deliver such Collateral
to the Agent.

 

(bb)         Debtors,
in their capacity as issuer, hereby agree to comply with any and all orders and instructions of Agent regarding the Pledged Interests
consistent with the terms of this Agreement without the further consent of Debtors as contemplated by Section 8-106 (or any successor
section) of the UCC. Further, Debtors agree that they shall not enter into a similar agreement (or one that would confer “control”
within the meaning of Article 8 of the UCC) with any other person or entity.

 

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(cc)         Debtors
shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent, or, if such delivery is not possible,
then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created by this
Agreement. To the extent that any Collateral consists of electronic chattel paper, the Debtors shall cause the underlying chattel
paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto).

 

(dd)        If
there is any investment property or deposit account included as Collateral that can be perfected by “control” through
an account control agreement, the Debtors shall cause such an account control agreement, in form and substance in each case satisfactory
to the Agent, to be entered into and delivered to the Agent for the benefit of the Secured Parties.

 

(ee)         To
the extent that any Collateral consists of letter-of-credit rights, the Debtors shall cause the issuer of each underlying letter
of credit to consent to an assignment of the proceeds thereof to the Secured Parties.

 

(ff)          To
the extent that any Collateral is in the possession of any third party, the Debtors shall join with the Agent in notifying such
third party of the Secured Parties’ security interest in such Collateral and shall use its best efforts to obtain an acknowledgement
and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory to the Agent.

 

(gg)        If
Debtors shall at any time hold or acquire a commercial tort claim, Debtors shall promptly notify the Secured Parties in a writing
signed by Debtors of the particulars thereof and grant to the Secured Parties in such writing a security interest therein and
in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to the
Agent.

 

(hh)        Debtors
shall immediately provide written notice to the Secured Parties of any and all accounts which arise out of contracts with any
governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests in such
accounts and proceeds thereof, shall execute and deliver to the Agent an assignment of claims for such accounts and cooperate
with the Agent in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar
federal, state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts
and proceeds thereof.

 

(ii)          Debtors
shall cause each Subsidiary of Debtors to immediately become a party hereto (an “Additional Debtor”), by executing
and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply with the provisions
hereof applicable to the Debtors. Concurrent therewith, the Additional Debtor shall deliver replacement schedules for, or supplements
to all other Schedules to (or referred to in) this Agreement, as applicable, which replacement schedules shall supersede, or supplements
shall modify, the Schedules then in effect. The Additional Debtor shall also deliver such opinions of counsel, authorizing resolutions,
good standing certificates, incumbency certificates, organizational documents, financing statements and other information and
documentation as the Agent may reasonably request. Upon delivery of the foregoing to the Agent, the Additional Debtor shall be
and become a party to this Agreement with the same rights and obligations as the Debtors, for all purposes hereof as fully and
to the same extent as if it were an original signatory hereto and shall be deemed to have made the representations, warranties
and covenants set forth herein as of the date of execution and delivery of such Additional Debtor Joinder, and all references
herein to the “Debtor” shall be deemed to include each Additional Debtor.

 

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(jj)          Debtors
shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Notes.

 

(kk)        Upon
execution of this Agreement, Debtors shall provide the Agent (i) undated Necessary Endorsements for the transfer to and in the
name of the Agent of all Pledged Securities so that all such Pledged Securities can be dealt with by the Agent upon the occurrence
and in the manner as provided herein, and (ii) all Pledged Securities to the Agent. Upon execution of the Agreement register the
pledge of the applicable Pledged Securities on the books of Debtors. Debtors shall notify each issuer of Pledged Securities to
register the pledge of the applicable Pledged Securities in the name of the Secured Parties on the books of such issuer. Further,
except with respect to certificated securities delivered to the Agent, the Debtors shall deliver to Agent an acknowledgement of
pledge (which, where appropriate, shall comply with the requirements of the relevant UCC with respect to perfection by registration)
signed by the issuer of the applicable Pledged Securities, which acknowledgement shall confirm that: (a) it has registered the
pledge on its books and records; and (b) at any time directed by Agent during the continuation of an Event of Default, such issuer
will transfer the record ownership of such Pledged Securities into the name of any designee of Agent, will take such steps as
may be necessary to effect the transfer, and will comply with all other instructions of Agent regarding such Pledged Securities
without the further consent of the Debtors.

 

(ll)          In
the event that, upon an occurrence of an Event of Default, Agent shall sell all or any of the Pledged Securities to another party
or parties (herein called the “Transferee”) or shall purchase or retain all or any of the Pledged Securities,
Debtors shall, to the extent applicable: (i) deliver to Agent or the Transferee, as the case may be, the articles of incorporation,
bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences of indebtedness,
books of account, financial records and all other Organizational Documents and records of the Debtors and their direct and indirect
subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and directors of the Debtors
and their direct and indirect subsidiaries, if so requested; and (iii) use its best efforts to obtain any approvals that are required
by any governmental or regulatory body in order to permit the sale of the Pledged Securities to the Transferee or the purchase
or retention of the Pledged Securities by Agent and allow the Transferee or Agent to continue the business of the Debtors and
their direct and indirect subsidiaries.

 

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(mm)      Without
limiting the generality of the other obligations of the Debtors hereunder, Debtors shall promptly (i) cause to be registered at
the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated hereby with respect
to all Intellectual Property registered at the United States Copyright Office or United States Patent and Trademark Office to
be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires (whether absolutely or by license)
or creates any additional material Intellectual Property.

 

(nn)        Debtors
will from time to time promptly execute and deliver all such further instruments and documents, and take all such further action
as may be necessary or desirable, or as the Agent may reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby or to enable the Secured Parties to exercise and enforce their rights and remedies hereunder
and with respect to any Collateral or to otherwise carry out the purposes of this Agreement.

 

(oo)        Schedule
G attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights,
and domain names owned by the Debtors as of the date hereof. Schedule G lists all material licenses in favor of Debtors
for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks
of the Debtors have been duly recorded at the United States Patent and Trademark Office and all material copyrights of the Debtors
have been duly recorded at the United States Copyright Office.

 

(pp)        Except
as set forth on Schedule H attached hereto, none of the account debtors or other persons or entities obligated on any of
the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state or local
statute or rule in respect of such Collateral.

 

5.           Effect
of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership
interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests
upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets
of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement
of any of Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights
notwithstanding any provisions in the Organizational Documents or agreements to which Debtors are subject or to which Debtors
are party.

 

6.           Events
of Defaults. The following events shall be “Events
of Default”:

 

(a)    The occurrence of an Event of Default (as defined in the Notes) under the Notes;

 

(b)    Any representation or warranty of Debtors in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c)    The failure by Debtors to observe or perform any of its obligations hereunder for five (5) days after delivery to Debtors of notice
of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within such time
frame and Debtors are using best efforts to cure same in a timely fashion; or

 

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(d)    If any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by Debtors, or a proceeding shall be commenced by Debtors, or by any governmental authority having
jurisdiction over Debtors, seeking to establish the invalidity or unenforceability thereof, or Debtors shall deny that Debtors
have any liability or obligation purported to be created under this Agreement; or

 

(e)    Any material diminution in the value of the collateral as determined by the Agent in its reasonable discretion.

 

7.           Duty
To Hold In Trust.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter, Debtors shall, upon receipt of any revenue, income, dividend,
interest or other sums subject to the Security Interests, whether payable pursuant to the Notes or otherwise, or of any check,
draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the
Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Parties, pro-rata
in proportion to their respective then-currently outstanding principal amount of Notes for application to the satisfaction of
the Obligations (and if any Note is not outstanding, pro-rata in proportion to the initial purchases of the remaining Notes).

 

(b)          If
Debtors shall become entitled to receive or shall receive any securities or other property (including, without limitation, shares
of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in connection with any reorganization of Debtors or any of their
direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in exchange
for, such Pledged Securities or otherwise), Debtors agree to (i) accept the same as the agent of the Secured Parties; (ii) hold
the same in trust on behalf of and for the benefit of the Secured Parties; and (iii) to deliver any and all certificates or instruments
evidencing the same to Agent on or before the close of business on the fifth business day following the receipt thereof by Debtors,
in the exact form received together with the Necessary Endorsements, to be held by Agent subject to the terms of this Agreement
as Collateral.

 

8.            Rights
and Remedies Upon an Event of Default.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Agent, shall have the
right to exercise all of the remedies conferred hereunder and under the Notes, and the Secured Parties shall have all the rights
and remedies of a secured party under the UCC. Without limitation, the Agent, for the benefit of the Secured Parties, shall have
the following rights and powers:

 

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(i)          The
Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any
person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and Debtors shall assemble
the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at Debtors’
premises or elsewhere, and make available to the Agent, without rent, all of Debtors’ respective premises and facilities
for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable form.

 

(ii)         Upon
notice to the Debtors by Agent, all rights of Debtors to exercise the voting and other consensual rights which it would otherwise
be entitled to exercise and all rights of Debtors to receive the dividends and interest which it would otherwise be authorized
to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive, for the benefit of the Secured Parties,
any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent’s
discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent shall have the right
(but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owner thereof,
including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection
with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or
Debtors or any of their direct or indirect subsidiaries.

 

(iii)      
The Agent shall have the right to operate the business of Debtors using the Collateral and shall have the right to assign, sell,
lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with
or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at
such time or times and at such place or places, and upon such terms and conditions as the Agent may deem commercially reasonable,
all without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to
Debtors or right of redemption of Debtors, which are hereby expressly waived. Upon each such sale, lease, assignment or other
transfer of Collateral, the Agent, for the benefit of the Secured Parties, may, unless prohibited by applicable law which cannot
be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption
and equities of Debtors, which are hereby waived and released.

 

(iv)        The
Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights against such
account debtors and obligors.

 

(v)         The
Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other person
or entity holding any investment property to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.

 

(vi)        The
Agent may (but is not obligated to) transfer any or all Intellectual Property registered in the name of Debtors at the United
States Patent and Trademark Office and/or Copyright Office into the name of the Secured Parties or any designee or any purchaser
of any Collateral.

 

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(b)          The
Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit, the Debtors
will only be credited with payments actually made by the purchaser. In addition, Debtors waive any and all rights that they may
have to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder, including,
without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its
rights and remedies with respect thereto.

 

(c)          For
the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by agreement
or applicable law, Debtors hereby grant to the Agent, for the benefit of the Agent and the Secured Parties, an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to Debtors) to use, license or sublicense following an Event
of Default, any Intellectual Property now owned or hereafter acquired by Debtors, and wherever the same may be located, and including
in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software
and programs used for the compilation or printout thereof.

 

9.           Applications
of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on
account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding,
storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses incurred by the Agent
in enforcing the Secured Parties’ rights hereunder and in connection with collecting, storing and disposing of the Collateral,
and then to satisfaction of the Obligations pro rata among the Secured Parties (based on then-outstanding principal amounts of
Notes at the time of any such determination), and to the payment of any other amounts required by applicable law, after which
the Secured Parties shall pay to the Debtors any surplus proceeds. If, upon the sale, license or other disposition of the Collateral,
the proceeds thereof are insufficient to pay all amounts to which the Secured Parties are legally entitled, the Debtors will be
liable for the deficiency, together with interest thereon, at the rate of 18% per annum or the lesser amount permitted by applicable
law (the “Default Rate”), and the reasonable fees of any attorneys employed by the Secured Parties to collect
such deficiency. To the extent permitted by applicable law, Debtors waive all claims, damages and demands against the Secured
Parties arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross negligence
or willful misconduct of the Secured Parties as determined by a final judgment (not subject to further appeal) of a court of competent
jurisdiction.

 

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10.         Securities
Law Provision. Debtors recognize that Agent may be limited in its ability to effect a sale to the public of all or part of
the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state
securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one or more sales
to a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own account, for
investment and not with a view to the distribution or resale thereof. Debtors agree that sales so made may be at prices and on
terms less favorable than if the Pledged Securities were sold to the public, and that Agent has no obligation to delay the sale
of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the public under the
Securities Laws. Debtors shall cooperate with Agent in its attempt to satisfy any requirements under the Securities Laws (including,
without limitation, registration thereunder if requested by Agent) applicable to the sale of the Pledged Securities by Agent.

 

11.         Costs
and Expenses. Debtors agree to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any filing
required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements, partial
releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Agent. The Debtors
shall also pay all other claims and charges which in the reasonable opinion of the Agent is reasonably likely to prejudice, imperil
or otherwise affect the Collateral or the Security Interests therein. The Debtors will also, upon demand, pay to the Agent the
amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents,
which the Agent, for the benefit of the Secured Parties, may incur in connection with the creation, perfection, protection, satisfaction,
foreclosure, collection or enforcement of the Security Interest and the preparation, administration, continuance, amendment or
enforcement of this Agreement and pay to the Agent the amount of any and all reasonable expenses, including the reasonable fees
and expenses of its counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties, and the Secured
Parties may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of,
collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of
the Secured Parties under the Notes. Until so paid, any fees payable hereunder shall be added to the principal amount of the Notes
and shall bear interest at the default rate.

 

12.         Responsibility
for Collateral. The Debtors assume all liabilities and responsibility in connection with all Collateral, and the Obligations
shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its
unavailability for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any Secured Party (i)
has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any
rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b)
Debtors shall remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed
by Debtors thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability under any such contract
or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Secured Party of any payment relating
to any of the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to perform any of the obligations
of Debtors under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Agent or any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party
under any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect
the payment of any amounts which may have been assigned to the Agent or to which the Agent or any Secured Party may be entitled
at any time or times.

 

    17 

     

    

 

13.         Security
Interests Absolute. All rights of the Secured Parties and all obligations of the Debtors hereunder, shall be absolute and
unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Notes or any agreement entered
into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment
or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent
to any departure from the Notes or any other agreement entered into in connection with the foregoing; (c) any exchange, release
or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral
for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain,
adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral;
or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to Debtors, or a discharge
of all or any part of the Security Interests granted hereby. Until the Obligations shall have been paid and performed in full,
the rights of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation,
the running of the statute of limitations or bankruptcy. Debtors expressly waive presentment, protest, notice of protest, demand,
notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment received
by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference
or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due
to any party other than the Secured Parties, then, in any such event, Debtors’ obligations hereunder shall survive cancellation
of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement,
but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. Debtors waive
all right to require the Secured Parties to proceed against any other person or entity or
to apply any Collateral which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other
remedy. Debtors waive any defense arising by reason of the application of the statute of limitations to any obligation secured
hereby.

 

14.         Term
of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Notes
have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that all indemnities
of the Debtors contained in this Agreement (including, without limitation, Annex B hereto) shall survive and remain operative
and in full force and effect regardless of the termination of this Agreement.

 

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15.         Power
of Attorney; Further Assurances.

 

(a)          Debtors
authorize the Agent, and does hereby make, constitute and appoint the Agent and its officers, agents, successors or assigns with
full power of substitution, as Debtors’ true and lawful attorney-in-fact, with power, in the name of the Agent or Debtors,
to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts, money orders
or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect of the
Collateral that may come into possession of the Agent; (ii) to sign and endorse any financing statement pursuant to the UCC or
any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications
and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge taxes, liens,
security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv) to demand,
collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual
Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Agent, and at the
expense of the Debtors, at any time, or from time to time, to execute and deliver any and all documents and instruments and to
do all acts and things which the Agent deems necessary to protect, preserve and realize upon the Collateral and the Security Interests
granted therein in order to effect the intent of this Agreement and the Notes all as fully and effectually as the Debtors might
or could do; and Debtors hereby ratify all that said attorney shall lawfully do or cause to be done by virtue hereof. This power
of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any
of the Obligations shall be outstanding. The designation set forth herein shall be deemed to amend and supersede any inconsistent
provision in the Organizational Documents or other documents or agreements to which Debtors are subject or to which Debtors are
a party. Without limiting the generality of the foregoing, after the occurrence and during the continuance of an Event of Default,
each Secured Party is specifically authorized to execute and file any applications for or instruments of transfer and assignment
of any patents, trademarks, copyrights or other Intellectual Property with the United States Patent and Trademark Office and the
United States Copyright Office.

 

(b)          On
a continuing basis, Debtors will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper filing
and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule E attached
hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested
by the Agent, to perfect the Security Interests granted hereunder and otherwise to carry out the intent and purposes of this Agreement,
or for assuring and confirming to the Agent the grant or perfection of a perfected security interest in all the Collateral under
the UCC.

 

(c)          Debtors
hereby irrevocably appoint the Agent as Debtors’ attorney-in-fact, with full authority in the place and instead of Debtors
and in the name of Debtors, from time to time in the Agent’s discretion, to take any action and to execute any instrument
which the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing, in its sole
discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without
the signature of Debtors where permitted by law, which financing statements may (but need not) describe the Collateral as “all
assets” or “all personal property” or words of like import, and ratifies all such actions taken by the Agent.
This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long
as any of the Obligations shall be outstanding.

 

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16.         Notices.
All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement
(as such term is defined in the Notes).

 

17.         Other
Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the
guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Agent shall have the right,
in its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any
way modifying or affecting any of the Secured Parties’ rights and remedies hereunder.

 

18.         Appointment
of Agent. The Secured Parties hereby appoint DOMINION CAPITAL, LLC to act as their agent (“Agent”) for
purposes (subject to the terms of the Intercreditor Agreement (as defined below)) of exercising any and all rights and remedies
of the Secured Parties hereunder including Annex B hereto. Such appointment shall continue until revoked in writing by a Majority
in Interest or the Unanimous Amount, as applicable, at which time a Majority in Interest or Unanimous Amount, as applicable, shall
appoint a new Agent.  The Agent shall have the rights, responsibilities and immunities set forth in Annex B hereto.

 

19.         Miscellaneous.

 

(a)          No
course of dealing between the Debtors and the Secured Parties, nor any failure to exercise, nor any delay in exercising, on the
part of the Secured Parties, any right, power or privilege hereunder or under the Notes shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

 

(b)          All
of the rights and remedies of the Secured Parties with respect to the Collateral, whether established hereby or by the Notes or
by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

 

(c)          This
Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which
the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No provision of this Agreement
may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Debtors
and the Secured Parties holding a Majority in Interest or Unanimous Amount, as applicable, of the principal amount of Notes then
outstanding, or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought.

 

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(d)          If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

(e)          No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f)          This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Debtors
may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Secured Party (other
than by merger). Any Secured Party may assign any or all of its rights under this Agreement to any Person (as defined in the Purchase
Agreement) to whom such Secured Party assigns or transfers any Obligations, provided such transferee agrees in writing to be bound,
with respect to the transferred Obligations, by the provisions of this Agreement that apply to the “Secured Parties.”

 

(g)          Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order
to carry out the provisions and purposes of this Agreement.

 

(h)          Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, Debtors agree that all proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement, the Notes the Purchase
Agreement and/or other documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of
New York, Borough of Manhattan. Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is
located, Debtors hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts sitting in the City of
New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby
irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.
Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by
jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

    21 

     

    

 

(i)          This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature
is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(j)          Debtors
shall indemnify, reimburse and hold harmless each of the Agent and the Secured Parties and their respective partners, members,
shareholders, officers, directors, employees and agents (and any other persons with other titles that have similar functions)
(collectively, “Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties,
suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the
foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise
from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses
which result from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision
of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification
provision in the Notes, the Purchase Agreement (as such term is defined in the Notes) or any other agreement, instrument or other
document executed or delivered in connection herewith or therewith.

 

(k)          Nothing
in this Agreement shall be construed to subject Agent or any Secured Party to liability as a partner in Debtors or any if their
direct or indirect subsidiaries that is a partnership or as a member in Debtors or any of its direct or indirect subsidiaries
that is a limited liability company, nor shall Agent or any Secured Party be deemed to have assumed any obligations under any
partnership agreement or limited liability company agreement, as applicable, of any Debtors or any of their direct or indirect
subsidiaries or otherwise, unless and until any such Secured Party exercises its right to be substituted for Debtors as a partner
or member, as applicable, pursuant hereto.

 

(l)          To
the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or member, as applicable, of Debtors or any direct or indirect subsidiary of Debtors or compliance
with any provisions of any of the Organizational Documents, the Debtors hereby grants such consent and approval and waives any
such noncompliance with the terms of said documents.

 

    22 

     

    

 

20.         Subject
to the rights of the Senior Lender under the Intercreditor and Subordination Agreement (the “Intercreditor Agreement”)
dated substantially the date hereof by and among the Debtors and the other parties thereto, payments under this Agreement to be
made to the Secured Parties shall be on a pari passu basis.  To be free from doubt, the priority of payments under the
Intercreditor Agreement is as follows: first 100% to the Senior Lender until the Senior Obligations are paid in full and, after
giving effect to such payments, the remainder of the payments, if any, 100% to the Subordinated Lenders, on a pari passu basis.

 

21.         Agent.
Notwithstanding anything to the contrary provided herein or elsewhere, the rights, remedies and other provisions set forth
herein as to the Agent, the Debtors, the Secured Parties and the Senior Lenders, are subject to the Intercreditor Agreement.

 

[SIGNATURE PAGES
FOLLOW]

 

    23 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.

 

	Amarantus Bioscience Holdings, Inc.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	Amarantus Therapeutics, Inc.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	Amarantus Therapeutics, Inc.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	Amarantus MA, Inc.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	CUTANOGEN CORPORATION	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	[SUB 1]	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    24 

     

    

 

[SIGNATURE PAGE
OF SECURED PARTIES TO SECURITY AGREEMENT]

 

Name of Investing Entity: Dominion
Capital, LLC: ______________________

 

Signature
of Authorized Signatory of Investing entity: _________________________

 

Name of Authorized
Signatory: _________________________

 

Title of Authorized
Signatory: __________________________

 

     

     

    

 

[SIGNATURE PAGE
OF SECURED PARTIES TO SECURITY AGREEMENT]

 

Name of Investing Entity: Delafield
Investments Limited

 

Signature
of Authorized Signatory of Investing entity: _________________________

 

Name of Authorized
Signatory: _________________________

 

Title of Authorized
Signatory: __________________________

 

Appointment as Collateral Agent
accepted and agreed to:

 

DOMINION CAPITAL, LLC

 

Signature
of Authorized Signatory of Investing entity: _________________________

 

Name of Authorized
Signatory: _________________________

 

Title of Authorized Signatory: __________________________

 

     

     

    

 

SCHEDULE I

List of Subsidiaries

 

     

     

    

 

ANNEX A

to

SECURITY

AGREEMENT

 

FORM
OF ADDITIONAL DEBTOR JOINDER

 

Security Agreement
dated as of September 30, 2015 made by

Amarantus Bioscience
Holdings, Inc.,

and its Subsidiaries
party thereto from time to time, as Debtors

to and in favor
of

the Secured
Parties identified therein (the “Security Agreement”)

 

Reference
is made to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have
the meanings given to such terms in, or by reference in, the Security Agreement.

 

The
undersigned hereby agrees that upon delivery of this Additional Debtor Joinder to the Secured Parties referred to above, the undersigned
shall (a) be an Additional Debtor under the Security Agreement, (b) have all the rights and obligations of the Debtor under the
Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to
have made the representations and warranties set forth therein as of the date of execution and delivery of this Additional Debtor
Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY
INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY
TRIAL PROVISIONS SET FORTH THEREIN.

 

Attached
hereto are supplemental and/or replacement Schedules to the Security Agreement, as applicable.

 

An
executed copy of this Joinder shall be delivered to the Secured Parties, and the Secured Parties may rely on the matters set forth
herein on or after the date hereof. This Joinder shall not be modified, amended or terminated without the prior written consent
of the Secured Parties.

 

     

     

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the name and on behalf of the undersigned.

 

	 	[Name of Additional Debtor]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:	 
	 	 	 
	Dated:	 	 

 

     

     

    

 

ANNEX B

to

SECURITY

AGREEMENT

 

THE AGENT

 

1.
Appointment. The Secured Parties (all capitalized terms used herein and not otherwise defined shall have the respective
meanings provided in the Security Agreement to which this Annex B is attached (the "Agreement")), by their acceptance
of the benefits of the Agreement, hereby designate DOMINION CAPITAL, LLC (“Agent”) as the Agent to act as specified
herein and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize the Agent to take such action on its
behalf under the provisions of the Agreement and any other Document (as such term is defined in the Purchase Agreement) and/or
any other agreement deemed to be a part of a Simultaneous Transaction (as such term is defined in the Purchase Agreement), including,
without limitation, the Intercreditor and Subordination Agreement dated substantially the date hereof by and among the Debtors
and the Secured Parties and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated
to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. The Agent
may perform any of its duties hereunder by or through its agents or employees.

 

2.
Nature of Duties. The Agent shall have no duties or responsibilities except those expressly set forth in the Agreement.
Neither the Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable for
any action taken or omitted by it as such under the Agreement or hereunder or in connection herewith or therewith, be responsible
for the consequence of any oversight or error of judgment or answerable for any loss, unless caused solely by its or their gross
negligence or willful misconduct as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.
The duties of the Agent shall be mechanical and administrative in nature; the Agent shall not have by reason of the Agreement
or any other Document a fiduciary relationship in respect of Debtor or any Secured Party; and nothing in the Agreement or any
other Document, expressed or implied, is intended to or shall be so construed as to impose upon the Agent any obligations in respect
of the Agreement or any other Transaction Document except as expressly set forth herein and therein.

 

3.
Lack of Reliance on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs
of the Debtor and its subsidiaries in connection with such Secured Party’s investment in the Debtor, the creation and continuance
of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any action in
connection therewith, and (ii) its own appraisal of the creditworthiness of the Debtor and its subsidiaries, and of the value
of the Collateral from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing basis,
to provide any Secured Party with any credit, market or other information with respect thereto, whether coming into its possession
before any Obligations are incurred or at any time or times thereafter. The Agent shall not be responsible to any Debtor or any
Secured Party for any recitals, statements, information, representations or warranties herein or in any document, certificate
or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectibility, priority or sufficiency of the Agreement or any other Document, or for the financial condition of
any Debtor or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or observance
of any of the terms, provisions or conditions of the Agreement or any other Transaction Document, or the financial condition of
any Debtor, or the value of any of the Collateral, or the existence or possible existence of any default or Event of Default under
the Agreement, the Purchase Agreement, the Notes or any of the other Documents.

 

     

     

    

 

4.
Certain Rights of the Agent. The Agent shall have the right to take any action with respect to the Collateral, on behalf
of all of the Secured Parties. To the extent practical, the Agent shall request instructions from the Secured Parties with respect
to any material act or action (including failure to act) in connection with the Agreement or any other Document, and shall be
entitled to act or refrain from acting in accordance with the instructions of a Majority in Interest or Unanimous Amount, as applicable;
if such instructions are not provided despite the Agent’s request therefor, the Agent shall be entitled to refrain from
such act or taking such action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured
Parties in respect of actions to be taken by the Agent; and the Agent shall not incur liability to any person or entity by reason
of so refraining. Without limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent
as a result of the Agent acting or refraining from acting hereunder in accordance with the terms of the Agreement or any other
Document, and the Debtors shall have no right to question or challenge the authority of, or the instructions given to, the Agent
pursuant to the foregoing and (b) the Agent shall not be required to take any action which the Agent believes (i) could reasonably
be expected to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction Documents or applicable
law.

 

5.
Reliance. The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message
signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the
other Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining to this
Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected by it. Anything
to the contrary notwithstanding, the Agent shall have no obligation whatsoever to any Secured Party to assure that the Collateral
exists or is owned by the Debtors or is cared for, protected or insured or that the liens granted pursuant to the Agreement have
been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any particular priority.

 

6.
Indemnification. To the extent that the Agent is not reimbursed and indemnified by the Debtor, the Secured Parties
will jointly and severally reimburse and indemnify the Agent, in proportion to their initially purchased respective principal
amounts of Notes, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the
Agent in performing its duties hereunder or under the Agreement or any other Document, or in any way relating to or arising out
of the Agreement or any other Document except for those determined by a final judgment (not subject to further appeal) of a court
of competent jurisdiction to have resulted solely from the Agent's (and/or by Agent’s, and/or representatives of the Agent)
gross negligence or willful misconduct. Prior to taking any action hereunder as Agent, the Agent may require each Secured Party
to deposit with it sufficient sums as it determines in good faith is necessary to protect the Agent for costs and expenses associated
with taking such action.

 

     

     

    

 

7.
Resignation by the Agent.

 

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

 

(b)
Upon any such notice of resignation, the Secured Parties, acting by a Majority in Interest or Unanimous Amount, as applicable,
shall appoint a successor Agent hereunder.

 

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

 

8.
Rights with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that
it shall not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant
to any other agreement or otherwise (other than pursuant to this Agreement), or take or institute any action against the Agent
or any of the other Secured Parties in respect of the Collateral or its rights hereunder (other than any such action arising from
the breach of this Agreement) and (ii) that such Secured Party has no other rights with respect to the Collateral other than as
set forth in this Agreement and the other Documents. Upon the acceptance of any appointment as Agent hereunder by a successor
Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Agent and the retiring Agent shall be discharged from its duties and obligations under the Agreement.  After
any retiring Agent’s resignation or removal hereunder as Agent, the provisions of the Agreement including this Annex B shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent.

 

     

     

    

 

DISCLOSURE
SCHEDULES

(Security Agreement)

 

The following
are the Disclosure Schedules (the “Disclosure Schedules”) referred to in that certain Security Agreement, dated
as of September 30, 2015 (the “Agreement”), by and between Amarantus Bioscience Holdings, Inc., a Nevada corporation
(the “Company”), all of the Subsidiaries of the Company (such subsidiaries, the “Subsidiaries”
and together with the Company, the “Debtors”) and the holders of the Company’s 12% Senior Secured Convertible
Promissory Notes, in the original aggregate principal amount of up to $6,076,556 (the “Notes”) signatory thereto,
their endorsees, transferees and assigns (collectively, the “Secured Parties”).

 

Schedule
I (4(d))

 

Schedule
A

Principal
Place of Business of each Debtor:

Locations
Where all Collateral is Located or Stored, Etc.

 

[LIST]

 

Schedule
B

Ownership
Interest to Collateral

 

[LIST]

 

Schedule
C

Other Liens,
Etc.

 

[LIST]

 

Schedule
D

List of Capital
Stock and other Equity Securities of Subsidiaries; Ownership of such Capital Stock; Liens Etc. of such Capital Stock

 

[LIST]

 

Schedule
E

Name and
Place of Jurisdiction; State of formation and organized number of each Debtor.

 

[LIST]

 

     

     

    

 

Schedule
F

Legal Names
of Organization Identification Numbers of each Debtor, andTrade Names, other Names, Mergers and Acquisitions

 

[LIST AS APPROPRIATE.]

 

Schedule
G

Intellectual
Property, Etc.

 

     

     

    

 

Patents/Patent Applications

 

Domain Names

 

Copyrights

 

[LIST]

 

Trademarks/Trademark Applications

 

	FILE NO.	COUNTRY	MARK

 

Schedule
H

Account Debtors

 

[LIST]

 

Schedule
I

Pledged Securities

 

The Company
is the sole owner 100% of the [_____] its subsidiaries, as follows:Exhibit 10.6

 

PATENT AND TRADEMARK SECURITY AGREEMENT

 

This PATENT AND TRADEMARK
SECURITY AGREEMENT, dated as of September 30, 2015 (this “Agreement”), is among Amarantus Bioscience Holdings,
Inc. (the “Company”), and Subsidiaries of the Company, which Subsidiaries are set forth on Schedule 1 hereto
(such Subsidiaries, together with the Company, collectively the “Debtors”)
and the holders of the Company’s 12% Senior Secured Convertible Promissory Notes in the original aggregate principal amount
of $6,076,556 (collectively, the “Notes”) signatory hereto, and their endorsees, transferees and assigns (collectively,
the “Secured Parties”) certain of which Notes were sold to the Secured Parties pursuant to a Securities Purchase
Agreement dated on or about the date hereof by and among Delafield Investments Limited, Dominion Capital, LLC and the Company
(the “Purchase Agreement”).

 

WITNESSETH:

 

WHEREAS, in order
to induce the Secured Parties to extend the loans evidenced by the Notes and to consummate the other simultaneous transactions
contemplated by Purchase Agreement (the “Simultaneous Transactions”), the Debtors have agreed to execute and
deliver to the Secured Parties this Agreement and to grant the Secured Parties, pari passu with each other Secured
Party and through the Agent (as defined in Section 18 hereof), a security interest in certain property of the Debtors to secure
the prompt payment, performance and discharge in full of all of the Debtors’ obligations under the Notes.

 

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

 

1.          Definitions.   All
terms defined in the WITNESSETH clauses or in the Security Agreement dated on or about the date hereof by and among the Debtors
and the Secured Parties (the “Security Agreement”) that are not otherwise defined herein shall have the meanings
given to them in the Security Agreement. In addition, the following terms have the meanings set forth below:

 

“Patents”
means all of Company’s right, title and interest in and to patents or applications for patents, fees or royalties with respect
to each, and including without limitation the right to sue for past infringement and damages therefor, and licenses thereunder,
all as presently existing or hereafter arising or acquired, including without limitation the patents listed on Exhibit A.

 

“Security Interest” has the meaning
given in Section 2.

 

“Subsidiary”
means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock
or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power
only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person and “Subsidiaries” means collectively each and
every Subsidiary of a Person. The signature page hereto of the Debtors lists, in addition to the Company, all Subsidiaries of
the Company

 

    	 

     

    

 

“Trademarks” means all of
Company’s right, title and interest in and to: (a) trademarks, service marks, collective membership marks,
registrations and applications for registration for each, and the respective goodwill associated with each, (b) licenses,
fees or royalties with respect to each, (c) the right to sue for past, present and future infringement, dilution and damages
therefor, and (d) licenses thereunder, all as presently existing or hereafter arising or acquired, including, without
limitation, the marks listed on Exhibit B.

 

2.          Security
Interest. Company hereby irrevocably pledges and assigns to, and grants the Secured Parties and through the Agent (as defined
in Section 7 hereof) a security interest (the “Security Interest”) with power of sale to the extent permitted
by law, in the Patents and in the Trademarks to secure payment of the Obligations. As set forth in the Security Agreement, the
Security Interest is coupled with a security interest in substantially all of the personal property of Company. This Agreement
grants only the Security Interest herein described, is not intended to and does not affect any present transfer of title of any
trademark registration or application and makes no assignment and grants no right to assign or perform any other action with respect
to any intent to use trademark application, unless such action is permitted under 15 U.S.C. § 1060.

 

3.            Representations,
Warranties and Agreements. Company represents, warrants and agrees as follows:

 

(a)          Existence;
Authority. Company is a limited liability company duly organized, validly existing and in good standing under the laws
of its state of formation, and this Agreement has been duly and validly authorized by all necessary company action on the part
of Company.

 

(b)          Patents.   Exhibit
A accurately lists all Patents owned or controlled by Company as of the date hereof, or to which Company has a right as of
the date hereof to have assigned to it, and accurately reflects the existence and status of applications and letters patent pertaining
to the Patents as of the date hereof. If after the date hereof, Company owns, controls or has a right to have assigned to it any
Patents not listed on Exhibit A, or if Exhibit A ceases to accurately reflect the existence and status of applications
and letters patent pertaining to the Patents, then Company shall within 60 days provide written notice to the Secured Parties
with a replacement Exhibit A, which upon acceptance by the Secured Parties shall become part of this Agreement.

 

(c)          Trademarks.   Exhibit
B accurately lists all Trademarks owned or controlled by Company as of the date hereof and accurately reflects the existence
and status of Trademarks and all applications and registrations pertaining thereto as of the date hereof; provided, however, that
Exhibit B need not list common law marks (i.e., Trademarks for which there are no applications or registrations) which are not
material to Company’s or any Affiliate’s business(es). If after the date hereof, Company owns or controls any Trademarks
not listed on Exhibit B (other than common law marks which are not material to Company’s or any Affiliate’s
business(es)), or if Exhibit B ceases to accurately reflect the existence and status of applications and registrations
pertaining to the Trademarks, then Company shall promptly provide written notice to the Secured Parties with a replacement Exhibit
B, which upon acceptance by the Secured Parties shall become part of this Agreement.

 

    	 

     

    

 

(d)          Affiliates.
As of the date hereof, no Affiliate owns, controls, or has a right to have assigned to it any items that would, if such item
were owned by Company, constitute Patents or Trademarks. If after the date hereof any Affiliate owns, controls, or has a
right to have assigned to it any such items, then Company shall promptly either: (i) cause such Affiliate to assign all of
its rights in such item(s) to Company; or (ii) notify the Secured Parties of such item(s) and cause such Affiliate to execute
and deliver to the Secured Parties a patent and trademark security agreement substantially in the form of this Agreement.

 

(e)          Title.
Company has absolute title to each Patent and each Trademark listed on Exhibits A and B, free and clear of all
Liens except Permitted Liens (as defined in the Security Agreement). Company (i) will have, at the time Company acquires any rights
in Patents or Trademarks hereafter arising, absolute title to each such Patent or Trademark free and clear of all Liens except
Permitted Liens, and (ii) will keep all Patents and Trademarks free and clear of all Liens except Permitted Liens.

 

(f)          No
Sale. Except as permitted in the Security Agreement, Company will not assign, transfer, encumber or otherwise dispose
of the Patents or Trademarks, or any interest therein, without the Secured Parties’ prior written consent.

 

(g)         Defense.
Company will at its own expense and using commercially reasonable efforts, protect and defend the Patents and Trademarks against
all claims or demands of all Persons other than those holding Permitted Liens.

 

(h)         Maintenance.
Company will at its own expense maintain the Patents and the Trademarks to the extent reasonably advisable in its business
including, but not limited to, filing all applications to obtain letters patent or trademark registrations and all affidavits,
maintenance fees, annuities, and renewals possible with respect to letters patent, trademark registrations and applications therefor.
Company covenants that it will not abandon nor fail to pay any maintenance fee or annuity due and payable on any Patent or Trademark,
nor fail to file any required affidavit or renewal in support thereof, without first providing the Secured Parties: (i) sufficient
written notice, of at least 30 days, to allow the Secured Parties to timely pay any such maintenance fees or annuities which may
become due on any Patents or Trademarks, or to file any affidavit or renewal with respect thereto, and (ii) a separate written
power of attorney or other authorization to pay such maintenance fees or annuities, or to file such affidavit or renewal, should
such be necessary or desirable.

 

    	 

     

    

 

(i)          The
Secured Parties’ Right to Take Action. If Company fails to perform or observe any of its covenants or agreements
set forth in this Section 3, and if such failure continues for a period of five (5) calendar days after the Secured Parties gives
Company written notice thereof (or, in the case of the agreements contained in subsection (h), immediately upon the occurrence
of such failure, without notice or lapse of time), or if Company notifies the Secured Parties that it intends to abandon a Patent
or Trademark, the Secured Parties may (but need not) perform or observe such covenant or agreement or take steps to prevent such
intended abandonment on behalf and in the name, place and stead of Company (or, at the Secured Parties’ option, in the Secured
Parties’ own name) and may (but need not) take any and all other actions which the Secured Parties may reasonably deem necessary
to cure or correct such failure or prevent such intended abandonment.

 

Costs and Expenses.
Except to the extent that the effect of such payment would be to render any loan or forbearance of money usurious or otherwise
illegal under any applicable law, Company shall pay the Secured Parties on demand the amount of all moneys expended and all costs
and expenses (including reasonable attorneys’ fees and disbursements) incurred by the Secured Parties in connection
with or as a result of the Secured Parties’ taking action under subsection (i) or exercising its rights under Section 6,
together with interest thereon from the date expended or incurred by the Secured Parties at the Default Rate.

 

(j)           Power
of Attorney. To facilitate the Secured Parties’ taking action under subsection (i) and exercising its rights
under Section 6, Company hereby irrevocably appoints (which appointment is coupled with an interest) the Secured Parties, or its
delegate, as the attorney-in-fact of Company with the right (but not the duty) from time to time to create, prepare, complete,
execute, deliver, endorse or file, in the name and on behalf of Company, any and all instruments, documents, applications, financing
statements, and other agreements and writings required to be obtained, executed, delivered or endorsed by Company under this Section
3, or, necessary for the Secured Parties, after an Event of Default, to enforce or use the Patents or Trademarks or to grant or
issue any exclusive or non-exclusive license under the Patents or Trademarks to any third party, or to sell, assign, transfer,
pledge, encumber or otherwise transfer title in or dispose of the Patents or Trademarks to any third party. Company hereby ratifies
all that such attorney shall lawfully do or cause to be done by virtue hereof. The power of attorney granted herein shall terminate
upon the termination of the Note as provided therein and the payment and performance of all Obligations.

 

4.            Company’s
Use of the Patents and Trademarks.       Company shall be permitted to control and
manage the Patents and Trademarks, including the right to exclude others from making, using or selling items covered by
the Patents and Trademarks and any licenses thereunder, in the same manner and with the same effect as if this Agreement had
not been entered into, so long as no Event of Default occurs and remains uncured.

 

5.            Events
of Default. Each of the following occurrences shall constitute an event of default under this Agreement (herein called “Event
of Default”): (a) an Event of Default, as defined in the Note or the Security Agreement, shall occur; or (b) Company
shall fail promptly to observe or perform any covenant or agreement herein binding on it; or (c) any of the representations or
warranties contained in Section 3 or in the Security Agreement or the Purchase Agreement shall prove to have been incorrect in
any material respect when made.

 

    	 

     

    

 

6.            Remedies.
Upon the occurrence of an Event of Default and at any time thereafter, the Secured Parties may, at its option, take any or all
of the following actions:

 

(a)          the
Secured Parties may exercise any or all remedies available under the Note or the Security Agreement.

 

(b)          the
Secured Parties may sell, assign, transfer, pledge, encumber or otherwise dispose of the Patents and Trademarks.

 

(c)          the
Secured Parties may enforce the Patents and Trademarks and any licenses thereunder, and if the Secured Parties shall commence
any suit for such enforcement, Company shall, at the request of the Secured Parties, do any and all lawful acts and execute any
and all proper documents required by the Secured Parties in aid of such enforcement

 

7.            Appointment
of Agent. The Secured Parties hereby appoint DOMINION CAPITAL, LLC to act as their agent (“Agent”) for
purposes of exercising any and all rights and remedies of the Secured Parties hereunder, subject to the limitations set forth
in Section 29 of the Security Agreement. Such appointment shall continue until revoked in writing by a Majority
in Interest of the Subordinated Lender or the Unanimous Amount, as applicable,
at which time a Majority in Interest of the Subordinated Lender or Unanimous Amount, as applicable, shall appoint a new
Agent.  The Agent shall have the rights, responsibilities and immunities set
forth in Annex A hereto.

 

8.            Miscellaneous.   This
Agreement can be waived, modified, amended, terminated or discharged, and the Security Interest can be released, only explicitly
in a writing signed by the Secured Parties. A waiver signed by the Secured Parties shall be effective only in the specific instance
and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any of the
Secured Parties’ rights or remedies. All rights and remedies of the Secured Parties shall be cumulative and may be exercised
singularly or concurrently, at the Secured Parties’ option, and the exercise or enforcement of any one such right or remedy
shall neither be a condition to nor bar the exercise or enforcement of any other. All notices to be given to Company under this
Agreement shall be given in the manner and with the effect provided in the Note. the Secured Parties shall not be obligated to
preserve any rights Company may have against prior parties, to realize on the Patents and Trademarks at all or in any particular
manner or order, or to apply any cash proceeds of Patents and Trademarks in any particular order of application. This Agreement
shall be binding upon and inure to the benefit of Company and the Secured Parties and their respective participants, successors
and assigns and shall take effect when signed by Company and delivered to the Secured Parties, and Company waives notice of the
Secured Parties’ acceptance hereof. the Secured Parties may execute this Agreement if appropriate for the purpose of filing,
but the failure of the Secured Parties to execute this Agreement shall not affect or impair the validity or effectiveness of this
Agreement. A carbon, photographic or other reproduction of this Agreement or of any financing statement signed by Company shall
have the same force and effect as the original for all purposes of a financing statement. This Agreement shall be governed by
the internal law of New York without regard to conflicts of law provisions. If any provision or application of this Agreement
is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications
which can be given effect and this Agreement shall be construed as if the unlawful or unenforceable provision or application had
never been contained herein or prescribed hereby. All representations and warranties contained in this Agreement shall survive
the execution, delivery and performance of this Agreement and the creation and payment of the Obligations.

 

    	 

     

    

 

THE
PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT.

 

9.            All
rights, powers, remedies and other provisions set forth herein are subject to the limitations and conditions set forth in the
Security Agreement.

 

    	 

     

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Patent and Trademark Security Agreement to be duly executed on the day and year first above written.

 

Amarantus Bioscience
Holdings, Inc.

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

Amarantus Therapeutics,
Inc.

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

Amarantus Therapeutics,
Inc.

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

Amarantus MA, Inc.

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

CUTANOGEN CORPORATION

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

[SUB
1]

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 

     

    

 

[SIGNATURE PAGE OF SECURED PARTIES TO PATENT
AND TRADEMARK SECURITY AGREEMENT]

 

Name of Investing Entity: Delafield Investments Limited: ______________________

 

Signature of Authorized Signatory of
Investing entity: _________________________

 

Name of Authorized Signatory: _________________________

 

Title of Authorized Signatory: __________________________

 

[Patent
and Trademark Security Agreement Signature Page]

 

    	 

     

    

 

[SIGNATURE PAGE OF SECURED PARTIES TO PATENT
AND TRADEMARK SECURITY AGREEMENT]

 

Name of Investing Entity: Delafield Investments Limited

 

Signature of Authorized Signatory of
Investing entity: _________________________

 

Name of Authorized Signatory: _________________________

 

Title of Authorized Signatory: __________________________

 

Appointment as Collateral Agent accepted and agreed to:

 

DOMINION CAPITAL, LLC

 

Signature of Authorized Signatory of
Investing entity: _________________________

 

Name of Authorized Signatory: _________________________

 

Title of Authorized Signatory: __________________________

 

[Patent
and Trademark Security Agreement Signature Page]

 

    	 

     

    

 

SCHEDULE I

List of Subsidiaries

 

    	 

     

    

 

SCHEDULE A

 

Secured Parties

    	 

     

    

 

EXHIBIT A

 

UNITED STATES ISSUED PATENTS

 

[List]

 

UNITED STATES PATENT APPLICATIONS

 

[List]

 

FOREIGN ISSUED PATENTS

 

[List]

 

FOREIGN PATENT APPLICATIONS

 

[List]

 

    	 

     

    

 

EXHIBIT B

 

UNITED STATES ISSUED TRADEMARKS, SERVICE
MARKS

 

AND COLLECTIVE MEMBERSHIP MARKS

 

REGISTRATIONS

 

	Trademark
    Name	 	Application
    No.	 	Registration
    No.	 	Status
	None	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

U.S. APPLICATIONS

 

	Trademark Name	 	Jurisdiction	 	Application No.	 	Status
	

        None
	 	 	 	 	 	 

 

    	 

     

    

 

FOREIGN REGISTRATIONS

 

	Trademark Name	 	Jurisdiction	 	Registration No.	 	Status
	None	 	 	 	 	 	 

 

 

    	 

     

    

 

ANNEX A

to

PATENT AND TRADEMARK SECURITY

AGREEMENT

 

THE AGENT

 

1. Appointment.
The Secured Parties (all capitalized terms used herein and not otherwise defined shall have the respective meanings provided in
the Security Agreement to which this Annex A is attached (the "Agreement")), by their acceptance of the benefits
of the Agreement, hereby designate DOMINION CAPITAL, LLC (“Agent”) as the Agent to act as specified herein
and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize the Agent to take such action on its behalf
under the provisions of the Agreement and any other Document (as such term is defined in the Purchase Agreement) and/or any other
agreement deemed to be a part of a Simultaneous Transaction (as such term is defined in the Purchase Agreement), including, without
limitation, the Intercreditor and Subordination Agreement dated substantially the date hereof by and among the Debtors and the
Secured Parties and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated
to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. The Agent
may perform any of its duties hereunder by or through its agents or employees.

 

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

 

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

 

    	 

     

    

 

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

 

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

 

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

 

7. Resignation
by the Agent.

 

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

 

    	 

     

    

 

(b) Upon
any such notice of resignation, the Secured Parties, acting by a Majority in Interest
of the Subordinated Lenders or Unanimous Amount, as applicable, shall appoint a successor Agent hereunder.

 

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

 

8. Rights with
respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that it shall not,
and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any
other agreement or otherwise (other than pursuant to this Agreement), or take or institute any action against the Agent or any
of the other Secured Parties in respect of the Collateral or its rights hereunder (other than any such action arising from the
breach of this Agreement) and (ii) that such Secured Party has no other rights with respect to the Collateral other than as set
forth in this Agreement and the other Documents. Upon the acceptance of any appointment as Agent hereunder by a successor Agent,
such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Agent and the retiring Agent shall be discharged from its duties and obligations under the Agreement.  After any retiring
Agent’s resignation or removal hereunder as Agent, the provisions of the Agreement including this Annex A shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was Agent.

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