Document:

Exhibit 10.13

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT (this “Agreement”),
dated as of March 17, 2015, is made by and among Mears Technologies, Inc., a Delaware corporation (the “Grantor”),
Robert Clifford, as the Collateral Agent, and the secured parties listed on the signature pages hereof (collectively, the “Secured
Parties” and each, individually, a “Secured Party”).

 

RECITALS

 

WHEREAS, pursuant
to that certain Securities Purchase Agreement, dated even date herewith (as may be amended, restated, supplemented, or otherwise
modified from time to time, including all schedules and • exhibits thereto, collectively, the “Securities Purchase
Agreement”), by and among the Grantor and certain of the Secured Parties, Grantor has agreed to sell, and each of the
Secured Parties have agreed to purchase, severally and not jointly, certain senior secured convertible notes in the aggregate original
principal amount of up to $14,752,667 (the “Offering Notes”) through either the investment of cash or the exchange
of one or more of those certain senior convertible notes of the Grantor having an aggregate principal amount of up to $7,349,226.24
(such convertible notes that are exchanged in connection with the transactions contemplated by the Securities Purchase Agreement
are referred to as the “Old MTI Convertible Notes”); and

 

WHEREAS, in
order to induce those Secured Parties to purchase, severally and not jointly, the Offering Notes as provided for in the Securities
Purchase Agreement, Grantor has agreed to grant a continuing security interest in and to the Collateral (as defined below) in order
to secure the prompt and complete payment, observance and performance of the Secured Obligations (as defined below).

 

AGREEMENTS

 

NOW, THEREFORE,
for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Defined
Terms. All capitalized terms used herein (including in the preamble and recitals hereof) without definition shall have the
meanings ascribed thereto in the Notes. Any terms used in this Agreement that are defined in the Code shall be construed and defined
as set forth in the Code unless otherwise defined herein or in the Notes; provided, however, if the Code is used to define
any term used herein and if such term is defined differently in different Articles of the Code, the definition of such term contained
in Article 9 of the Code shall govern. In addition to those terms defined elsewhere in this Agreement, as used in this Agreement,
the following terms shall have the following meanings:

 

(a)          “Account”
means an account (as that term is defined in the Code).

 

(b)          “Account
Debtor” means an account debtor (as that term is defined in the Code).

 

    	 	 	 

     

    

 

(c)         “Bankruptcy
Code” means title 11 of the United States Code, as in effect from time to time.

 

(d)         “Books”
means books and records (including, without limitation, the Grantor's Records) indicating, summarizing, or evidencing the Grantor's
assets (including the Collateral) or liabilities, the Grantor's Records relating to its business operations (including, without
limitation, stock ledgers) or financial condition, and the Grantor's goods or General Intangibles related to such information.

 

(e)         “Chattel
Paper” means chattel paper (as that term is defined in the Code) and includes tangible chattel paper and electronic chattel
paper.

 

(f)          “Code”
means the New York Uniform Commercial Code, as in effect from time to time; provided, however, in the event that, by
reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect to any Secured
Party's Lien on any Collateral is governed by the Uniform Commercial Code as enacted .and in effect in a jurisdiction
other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in
such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies.

 

(g)         “Collateral”
has the meaning specified therefor in Section 2.

 

(h)         “Commercial
Tort Claims” means commercial tort claims (as that term is defined in the Code), and includes those commercial tort claims
listed on Schedule 1 attached hereto.

 

(i)          “Control
Agreement” means a control agreement, in form and substance reasonably satisfactory to the Collateral Agent, executed
and delivered by Grantor, the Collateral Agent (on behalf of all Secured Parties), and the applicable securities intermediary (with
respect to a Securities Account) or bank (with respect to a Deposit Account), as may be amended, restated, supplemented, or otherwise
modified from time to time.

 

(j)          “Copyrights”
means all copyrights and copyright registrations, and also includes (i) all reissues, continuations, extensions or renewals
thereof, (ii) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto, including
payments under all licenses entered into in connection therewith and damages and payments for past or future infringements or dilutions
thereof, (iii) the right to sue for past, present and future infringements and dilutions thereof, (iv) the goodwill of Grantor's
business symbolized by the foregoing or connected therewith, and (v) all of Grantor's rights corresponding thereto throughout the
world.

 

(k)         “Deposit
Account” means a deposit account (as that term is defined in the Code).

 

(1)         “Equipment”
means all equipment (as that term is defined in the Code) in all of its forms of the Grantor, wherever located, and including,
without limitation, all machinery, apparatus, installation facilities and other tangible personal property, and all parts thereof
and all accessions, additions, attachments, improvements, substitutions, replacements and proceeds thereto and therefor.

 

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(m)          “Event
of Default” has the meaning specified therefor in the Notes,

 

(n)          “Foreign
Subsidiary” means any Person in which the Company, directly or indirectly, owns the majority of the outstanding Stock
and that is a “controlled foreign corporation” under Section 957 of the Internal Revenue Code of 1986.

 

(o)          “GAAP”
means United States generally accepted accounting principles, consistently applied.

 

(p)          “General
Intangibles” means general intangibles (as that term is defined in the Code) and, in any event, includes payment intangibles,
contract rights, rights to payment, rights arising under common law, statutes, or regulations, choses or things in action,
goodwill, programming materials, purchase orders, customer lists, monies due or recoverable from pension funds, route lists, rights
to payment under any royalty or licensing agreements (including Intellectual Property Licenses), infringement claims, commercial
computer programs, information contained on computer disks or tapes, software, literature, reports, catalogs, pension plan refunds,
pension plan refund claims, insurance premium rebates, tax refunds, and tax refund claims, interests in a partnership or limited
liability company which do not constitute a security under Article 8 of the Code, and any other personal property other than Commercial
Tort Claims, money, Accounts, Chattel Paper, Deposit Accounts, goods, Investment Related Property, Negotiable Collateral, and
oil, gas, or other minerals before extraction.

 

(q)          “Governmental
Authority” means any domestic or foreign federal, state, local, or other governmental or administrative body, instrumentality,
board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar
dispute-resolving panel or body.

 

(r)          “Insolvency
Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under
any other state or federal bankruptcy or insolvency law or any equivalent laws in any other jurisdiction, assignments for the benefit
of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.

 

(s)          “Intellectual
Property” means Patents, Copyrights, Trademarks, the goodwill associated with such Trademarks, trade secrets and customer
lists, and Intellectual Property Licenses.

 

(t)          “Intellectual
Property Licenses” means rights under or interests in any patent, trademark, copyright or other intellectual property,
including software license agreements with any other party, whether the Grantor is a licensee or licensor under any such license
agreement, as may be amended, restated, supplemented, or otherwise modified from time to time.

 

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(u)          “Inventory”
means all inventory (as that term is defined in the Code) in all of its forms of the Grantor, wherever located, including, without
limitation, (i) all goods in which the Grantor has an interest in mass or a joint or other interest or right of any kind (including
goods in which the Grantor has an interest or right as consignee), and (ii) all goods which are returned to or repossessed by the
Grantor, and all accessions thereto, products thereof and documents therefor.

 

(v)          “Investment
Related Property” means (i) investment property (as that term is defined in the Code), and (ii) all of the following
(regardless of whether classified as investment property under the Code): all Pledged Interests, Pledged Operating Agreements,
and Pledged Partnership Agreements.

 

(w)          “Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or
charge on property of any kind.

 

(x)          “Negotiable
Collateral” means letters of credit, letter-of-credit rights, instruments, promissory notes, drafts, and documents.

 

(y)          “New
Subsidiary” has the meaning specified therefor in the Notes.

 

(z)          “Notes”
mean collectively the Offering Notes and the Old MTI Convertible Notes.

 

(aa)         “Patents”
means all patents and patent applications, and also includes (i) all renewals thereof; (ii) all income, royalties, damages
and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered into
in connection therewith and damages and payments for past or future infringements or dilutions thereof, (iii) the right to sue
for past, present and future infringements and dilutions thereof, and (iv) all of Grantor's rights corresponding thereto throughout
the world.

 

(bb)         “Permitted
Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate
proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary
course of business by operation of law with respect to a liability that is not yet due or delinquent or that is being contested
in good faith for which adequate reserves have been established in accordance with GAAP, (iii) any Lien created by operation of
law, such as materialmen's liens, mechanics' liens and other similar liens, arising in the ordinary course of business with respect
to a liability that is not yet due or delinquent or that is being contested in good faith by appropriate proceedings, (iv) Liens
on Equipment having a fair market value of not more than $250,000 in the aggregate, but only if the lien constitutes a purchase
money security interest incurred in connection with the purchase of such Equipment, (v) Liens securing the Company's obligations
under the Transaction Documents, and (vi) Liens granted to the Secured Parties pursuant to the terms of this Agreement.

 

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(cc)         “Permitted
Transfers” means (i) sales of Inventory in the ordinary course of business, (ii) non-exclusive licenses in the
ordinary course of business for the use of Intellectual Property (A) to manufacturers, distributors, OEMs, strategic partners
and value added re-sellers in connection with the manufacture and distribution of Grantor's products, (B) in connection with
the embedding of Intellectual Property in the products of others, and (C) to end users; provided no such license could result
in a legal transfer of title of the licensed Intellectual Property, or (iii) dispositions of worn-out, obsolete or surplus
Equipment at fair market value in the ordinary course of business.

 

(dd)         “Person”
has the meaning specified therefor in the Securities Purchase

Agreement.

 

(ee)         “Pledged
Companies” means each Person all or a portion of whose Stock is acquired or otherwise owned by the Grantor after the
date hereof.

 

(ff)         “Pledged
Interests” means all of Grantor's right, title and interest in and to all of the Stock now or hereafter owned by Grantor,
regardless of class or designation, including all substitutions therefor and replacements thereof, all proceeds thereof and all
rights relating thereto, also including any certificates representing the Stock, the right to receive any certificates representing
any of the Stock, all warrants, options, share appreciation rights and other rights, contractual or otherwise, in respect thereof,
and the right to receive dividends, distributions of income, profits, surplus, or other compensation by way of income or liquidating
distributions, in cash or in kind, and cash, instruments, and other property from time to time received, receivable, or otherwise
distributed in respect of or in addition to, in substitution of, on account of, or in exchange for any or all of the foregoing.
Pledged Interests categorically excludes any authorized but unissued Stock of the Company which is not being pledged under this
Agreement.

 

(gg)         “Pledged
Operating Agreements” means all of Grantor's rights, powers, and remedies under the limited liability company operating
agreements of each of the Pledged Companies that are limited liability companies, as may be amended, restated, supplemented, or
otherwise modified from time to time.

 

(hh)         “Pledged
Partnership Agreements” means all of Grantor's rights, powers, and remedies under the partnership agreements of each
of the Pledged Companies that are partnerships, as may be amended, restated, supplemented, or otherwise modified from time to time.

 

(ii)         “Proceeds”
has the meaning specified therefor in Section 2.

 

(jj)         “Real
Property” means any estates or interests in real property now owned or hereafter acquired by Grantor and the improvements
thereto.

 

(kk)         “Records”
means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable
in perceivable form.

 

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(ll)         “Registration
Rights Agreement” means that certain registration rights agreement, dated as of the date hereof, by and among the Company
and the initial holders of the Notes, as may be amended from time to time.

 

(mm)       “Secured
Obligations” mean all of the present and future payment and performance obligations of Grantor arising under this Agreement,
the Notes and the other Transaction Documents, including, without duplication, reasonable attorneys' fees and expenses and any
interest, fees, or expenses that accrue after the filing of an Insolvency Proceeding, regardless of whether allowed or allowable
in whole or in part as a claim in any Insolvency Proceeding.

 

(nn)         “Securities
Account” means a securities account (as that term is defined in the Code).

 

(oo)         “Security
Documents” means, collectively, this Agreement, each Control Agreement and each other security agreement, pledge agreement,
assignment, mortgage, security deed, deed of trust, and other agreement or document executed and delivered by the Grantor as security
for any of the Secured Obligations, as may be amended, restated, supplemented, or otherwise modified from time to time.

 

(pp)         “Security
Interest” and “Security Interests” have the meanings specified therefor in Section 2.

 

(qq)         “Stock”
means all shares, options, warrants, interests (including, without limitation, membership and partnership interests), participations,
or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred
stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations
promulgated by the United States Securities and Exchange Commission and any successor thereto under the Securities Exchange Act
of 1934, as in effect from time to time).

 

(rr)         “Supporting
Obligations” means supporting obligations (as such term is defined in the Code).

 

(ss)         “Trademarks”
means all trademarks, trade names, trademark applications, service marks, service mark applications, and also includes (i) all
renewals thereof, (ii) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto,
including payments under all licenses entered into in connection therewith and damages and payments for past or future infringements
or dilutions thereof, (iii) the right to sue for past, present and future infringements and dilutions thereof, (iv) the goodwill
of Grantor's business symbolized by the foregoing or connected therewith, and (v) all of Grantor's rights corresponding thereto
throughout the world.

 

(tt)         “Transaction
Documents” mean, collectively, the Securities Purchase Agreement, the Notes, the Security Documents, the Registration
Rights Agreement and each of the other agreements and instruments entered into or delivered by any of the parties hereto in connection
with the consummation of the transactions contemplated hereby and thereby, as may be amended from time to time.

 

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(uu)         “URL”
means “uniform resource locator,” an internet web address.

 

2.          Grant
of Security. The Grantor hereby unconditionally grants, assigns, and pledges to the Collateral Agent a continuing security
interest (each, a “Security Interest” and, collectively, the “Security Interests”) in all
personal property assets of the Grantor whether now owned or hereafter acquired or arising and wherever located (collectively,
the “Collateral”), including, without limitation, the Grantor’s right, title, and interest in and to the following,
whether now owned or hereafter acquired or arising and wherever located:

 

		(a)	all of the Grantor's Accounts;

 

		(b)	all of the Grantor's Books;

 

		(c)	all of the Grantor's Chattel Paper;

 

		(d)	all of the Grantor's Deposit Accounts;

 

		(e)	all of the Grantor's Equipment and fixtures;

 

		(f)	all of the Grantor's General Intangibles;

 

		(g)	all of the Grantor's Intellectual Property;

 

		(h)	all of the Grantor's Inventory;

 

		(i)	all of the Grantor's Investment Related Property;

 

		(j)	all of the Grantor's Negotiable Collateral;

 

		(k)	all of the Grantor's rights in respect of Supporting Obligations;

 

		(l)	all of the Grantor's Commercial Tort Claims;

 

(m)         all
of the Grantor's money, cash, cash equivalents, or other assets of the Grantor that now or hereafter come into the possession,
custody, or control of any Secured Party; and

 

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all of the proceeds and products,
whether tangible or intangible, of any of the foregoing, including proceeds of insurance or Commercial Tort Claims covering or
relating to any or all of the foregoing, and any and all Accounts, Books, Chattel Paper, Deposit Accounts, Equipment, General
Intangibles, Intellectual Property, Inventory, Investment Related Property, Negotiable Collateral, Supporting Obligations, money,
or other tangible or intangible property resulting from the sale, lease, license, exchange, collection, or other disposition of
any of the foregoing, the proceeds of any award in condemnation with respect to any of the foregoing, any rebates or refunds,
whether for taxes or otherwise, and all proceeds of any such proceeds, or any portion thereof or interest therein, and the proceeds
thereof, and all proceeds of any loss of, damage to, or destruction of the above, whether insured or not insured, and, to the
extent not otherwise included, any indemnity, warranty, or guaranty payable by reason of loss or damage to, or otherwise with
respect to any of the foregoing (the “Proceeds”). Without limiting the generality of the foregoing, the term
“Proceeds” includes whatever is receivable or received when Investment Related Property or proceeds are sold, exchanged,
collected, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity
or guaranty payable to the Grantor or any Secured Party from time to time with respect to any of the Investment Related Property.
Notwithstanding the foregoing, the Collateral shall not include (i) the Stock of any first-tier Foreign Subsidiary in excess of
65% of the aggregate outstanding voting Stock of such first-tier Foreign Subsidiary or (ii) any Stock of any Foreign Subsidiary
that is not a first-tier Foreign Subsidiary.

 

3.          Security
for Obligations. This Agreement and the Security Interests created hereby secure the payment and performance of the Secured
Obligations, whether now existing or arising hereafter.

 

4.          Grantor
Remains Liable. Anything herein to the contrary notwithstanding, (a) the Grantor shall remain liable under the contracts
and agreements included in the Collateral, including the Pledged Operating Agreements and the Pledged Partnership Agreements,
to perform all of the duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b)
the exercise by Secured Parties, or any of them, of any of the rights hereunder shall not release the Grantor from any of its
duties or obligations under such contracts and agreements included in the Collateral, and (c) no Secured Party shall have any
obligation or liability under such contracts and agreements included in the Collateral by reason of this Agreement, nor shall
any Secured Party be obligated to perform any of the obligations or duties of the Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder. Until an Event of Default shall occur and be continuing, except
as otherwise provided in this Agreement or any other Transaction Document, the Grantor shall have the right to possession and
enjoyment of the Collateral for the purpose of conducting the ordinary course of its businesses, subject to and upon the
terms hereof and the other Transaction Documents. Without limiting the generality of the foregoing, it is the intention of
the parties hereto that record and beneficial ownership of the Pledged Interests, including all voting, consensual, and
dividend rights, shall remain in the Grantor until the occurrence of an Event of Default and until the Collateral Agent (on
behalf of all Secured Parties) shall notify the Grantor of its exercise of voting, consensual, or dividend rights with
respect to the Pledged Interests pursuant to Section 15 hereof.

 

5.          Representations
and Warranties. The Grantor hereby represents and warrants as follows:

 

(a)          The
exact legal name of the Grantor is set forth in the preamble this Agreement.

 

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(b)          Schedule
2 attached hereto sets forth (i) all Real Property owned or leased by the Grantor, together with all other locations of
Collateral, as of the date hereof, and (ii) the chief executive office of the Grantor as of the date hereof.

 

(c)          This
Agreement creates a valid security interest in all of the Collateral of the Grantor, to the extent a security interest therein
can be created under the Code, securing the payment of the Secured Obligations. Except to the extent a security interest in the
Collateral cannot be perfected by the filing of a financing statement under the Code, all filings and other actions necessary or
reasonably desirable to perfect and protect such security interest have been duly taken or will have been taken upon the filing
of financing statements listing the Grantor, as a debtor, and Secured Parties, as secured parties, in the jurisdictions listed
on Schedule 3 attached hereto. Upon the making of such filings, the Secured Parties shall each have a first priority
perfected security interest in all of the Collateral of the Grantor to the extent such security interest can be perfected by the
filing of a financing statement (subject to Permitted Liens). Subject to Section 6(c), all action by the Grantor necessary to perfect
and reasonably necessary to protect such security interest on each item of Collateral has been duly taken.

 

(d)          Except
for the Security Interests created hereby, no Collateral is subject to any Lien as of the date hereof, except for Permitted Liens.

 

(e)          No
consent, approval, authorization, or other order or other action by, and no notice to or filing with, any Governmental Authority
or any other Person is required (i) for the grant of a Security Interest by the Grantor in and to the Collateral pursuant to this
Agreement or for the execution, delivery, or performance of this Agreement by the Grantor, or (ii) for the exercise by any Secured
Party of the voting or other rights provided in this Agreement with respect to Investment Related Property pledged hereunder or
the remedies in respect of the Collateral pursuant to this Agreement, except as may be required in connection with such disposition
of Investment Related Property by laws affecting the offering and sale of securities generally.

 

(f)          Schedule
4 contains a complete and accurate list of all of the Grantor's Deposit Accounts and Securities Accounts, including, without
limitation, with respect to each bank or securities intermediary (a) the name and address of such Person and (b) the account numbers
of such accounts maintained with such Person.

 

6.          Covenants.
The Grantor covenants and agrees with each Secured Party that from and after the date of this Agreement and until the date of termination
of this Agreement in accordance with Section 24 hereof:

 

(a)          Possession
of Collateral. In the event that any Collateral, including proceeds, is evidenced by or consists of Negotiable Collateral,
Investment Related Property, or Chattel Paper with a value in excess of $100,000 in the aggregate, and if and to the extent that
perfection or priority of Secured Parties' respective Security Interests is dependent on or enhanced by possession, the Grantor,
immediately upon the request of the Collateral Agent (on behalf of all Secured Parties), shall execute such other documents and
instruments as shall be reasonably requested by the Collateral Agent or, if applicable, endorse and deliver physical possession
of such Negotiable Collateral, Investment Related Property, or Chattel Paper to the Collateral Agent (on behalf of all Secured
Parties), together with such undated powers endorsed in blank as shall be requested by the Collateral Agent.

 

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(b)          Chattel
Paper.

 

(i)          The
Grantor shall take all steps reasonably necessary to grant the Collateral Agent (on behalf of all Secured Parties) control of all
Chattel Paper in accordance with the Code and all “transferable records” as that term is defined in Section 16 of the
Uniform Electronic Purchase Act and Section 201 of the federal Electronic Signatures in Global and National Commerce Act as in
effect in any relevant jurisdiction; and

 

(ii)         If
the Grantor retains possession of any Chattel Paper or instruments (which retention of possession shall be subject to the extent
permitted hereby), promptly upon the request of the Collateral Agent (on behalf of all Secured Parties), such Chattel Paper and
instruments shall be marked with the following legend: “This writing and the obligations evidenced or secured hereby are
subject to the Security Interests of [names of Secured Parties].”

 

(c)          Control
Agreements. The Grantor shall not establish or maintain any Deposit Account or Securities Account (or any other similar account)
other than a payroll account unless (1) the Grantor shall have provided each Secured Party with ten (10) days’ advance written
notice of each such account and (ii) if an Event of Default has occurred and is then continuing, the Collateral Agent on behalf
of the Secured Parties shall have received a Control Agreement in respect of such account concurrently with the opening thereof,
From and after the occurrence and during the continuance of any Event of Default, the Grantor shall ensure that all of its Account
Debtors forward payment of the amounts owed by them directly to a Deposit Account that is subject to a Control Agreement and deposit
or cause to be deposited promptly, and in any event no later than the first (1st) Business Day after the date of receipt
thereof, all of their collections (including those sent directly by their Account Debtors to the Grantor) into a Deposit Account
subject to a Control Agreement. Upon the request of the Collateral Agent (on behalf of all Secured Parties) from and after the
occurrence and during the continuance of any Event of Default, the Grantor shall promptly (but in no event later than ten (10)
Business Days after such request therefor) cause each of its Deposit Accounts and Securities Accounts to be subject to a Control
Agreement in favor of the Collateral Agent on behalf of the Secured Parties.

 

(d)          Letter-of-Credit
Rights. In the event that the Grantor is or becomes the beneficiary of one or more letters of credit with a face amount of
greater than $25,000 individually or $100,000 in the aggregate, the Grantor shall promptly (and in any event within five (5) Business
Days after becoming a beneficiary) notify the Secured Parties thereof and, upon the request by the Collateral Agent (on behalf
of all Secured Parties), use commercially reasonable efforts to enter into an agreement with the Collateral Agent (on behalf of
all Secured Parties) and the issuing or confirming bank with respect to letter-of-credit rights assigning such letter-of-credit
rights to the Collateral Agent (on behalf of all Secured Parties) and directing all payments thereunder to the Collateral Agent
(on behalf of all Secured Parties) during the continuance of an Event of Default following notice from the Collateral Agent, all
in form and substance satisfactory to the Collateral Agent (on behalf of all Secured Parties).

 

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(e)          Commercial
Tort Claims. The Grantor shall promptly (and in any event within five (5) Business Days of receipt thereof) notify the
Secured Parties in writing upon incurring or otherwise obtaining a Commercial Tort Claim after the date hereof and, upon
request of the Collateral Agent (on behalf of all Secured Parties), promptly amend Schedule 1 to this Agreement
to describe such after-acquired Commercial Tort Claim in a manner that reasonably identifies such Commercial Tort Claim, and
hereby authorizes the filing of additional financing statements or amendments to existing financing statements describing
such Commercial Tort Claims, and agrees to do such other acts or things deemed reasonably necessary or desirable by the
Collateral Agent (on behalf of all Secured Parties) to give the Collateral Agent on behalf of the Secured Parties a first
priority, perfected security interest (subject to Permitted Liens) in any such Commercial Tort Claim.

 

(f)          Government
Contracts. If any Account or Chattel Paper arises out of a contract or contracts with the United States of America or any department,
agency, or instrumentality thereof, the Grantor shall. promptly (and in any event within five (5) Business Days of
the creation thereof) notify the Secured Parties thereof in writing and use commercially reasonable efforts to execute any instruments
or take any steps reasonably required by the Collateral Agent (on behalf of all Secured Parties) in order that all moneys due or
to become due under such contract or contracts shall be assigned to the Collateral Agent (on behalf of all Secured Parties) during
the continuance of an Event of Default following notice from the Collateral Agent, and shall provide written notice thereof and
use commercially reasonable efforts to take all other appropriate actions under the Assignment of Claims Act or other applicable
law to provide the Collateral Agent on behalf of all Secured Parties a first-priority perfected security interest (subject to Permitted
Liens) in such contract.

 

(g)          Investment
Related Property.

 

(i)          If
the Grantor shall receive or become entitled to receive any Pledged Interests after the date hereof, it shall promptly (and in
any event within five (5) Business Days of receipt thereof) identify such Pledged Interests in a written notice to the Secured
Parties;

 

(ii)         Upon
the request of the Collateral Agent during the continuance of an Event of Default, all sums of money and property paid or distributed
in respect of the Investment Related Property pledged hereunder which are received by the Grantor shall be held by the Grantor
in trust for the benefit of the Secured Parties segregated from the Grantor's other property, and the Grantor shall deliver it
promptly to the Collateral Agent (on behalf of all Secured Parties) in the exact form received;

 

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(iii)        The
Grantor shall promptly deliver to the Secured Parties a copy of each material notice or other written communication received by
it in respect of any Pledged Interests;

 

(iv)         The
Grantor shall not make or consent to any material amendment or other modification or waiver with respect to any Pledged Interests,
Pledged Operating Agreement, or Pledged Partnership Agreement or enter into any agreement or permit to exist any restriction with
respect to any Pledged Interests, in each case, that could reasonably be expected to materially adversely affect the Collateral
Agent or the Secured Parties;

 

(v)          The
Grantor agrees that it will cooperate with the Secured Parties in obtaining all necessary approvals and making all necessary filings
under federal and state law, and, upon the request of the Collateral Agent during the continuance of an Event of Default, under
foreign law, in connection with the Security Interests on the Investment Related Property pledged hereunder or any sale or transfer
thereof; and

 

(vi)         As
to all limited liability company or partnership interests issued under any Pledged Operating Agreement or Pledged Partnership Agreement,
the Grantor hereby represents, warrants and covenants that the Pledged Interests issued pursuant to such agreement (A) shall not
be dealt in or traded on securities exchanges or in securities markets, (B) will not constitute investment company securities,
and (C) will not be held by the Grantor in a securities account. In addition, none of the Pledged Operating Agreements, the Pledged
Partnership Agreements, or any other agreements governing any of the Pledged Interests issued under any Pledged Operating Agreement
or Pledged Partnership Agreement, shall provide that such Pledged Interests are securities governed by Article 8 of the Uniform
Commercial Code as in effect in any relevant jurisdiction.

 

(h)          Transfers
and Other Liens. The Grantor shall not (i) sell, lease, license, assign (by operation of law or otherwise), transfer or
otherwise dispose of, or grant any option with respect to, any of the Collateral, except for Permitted Transfers or as
expressly permitted by this Agreement and the other Transaction Documents, or (ii) except for Permitted Liens, create or
permit to exist any Lien upon or with respect to any of the Collateral without the consent of the Collateral Agent. The
inclusion of Proceeds in the Collateral shall not be deemed to constitute consent by any Secured Party to any sale or other
disposition of any of the Collateral except as expressly permitted in this Agreement or the other Transaction Documents.
Notwithstanding anything contained in this Agreement to the contrary, Permitted Liens shall not be permitted with respect to
any Pledged Interests.

 

(i)          Preservation
of Existence. The Grantor shall maintain and preserve its existence, rights and privileges, and become or remain duly qualified
and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary, except where failure to be so qualified could not reasonably be expected to
have a Material Adverse Effect (as defined in the Securities Purchase Agreement).

 

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(j)          Maintenance
of Properties. The Grantor shall maintain and preserve all of its properties which are reasonably necessary in the proper conduct
of its business in good working order and condition, ordinary wear and tear excepted.

 

(k)          Maintenance
of Insurance. The Grantor shall maintain insurance with responsible and reputable insurance companies or associations (including,
without limitation, comprehensive general liability, property, hazard, rent and business interruption insurance) with respect to
all of its assets and properties (including, without limitation, all real properties leased or owned by it and any and all Inventory
and Equipment) and business, in such amounts and covering such risks as is required by any governmental authority having jurisdiction
with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses similarly
situated, in each case, reasonably acceptable to the Collateral Agent (on behalf of all Secured Parties).

 

(l)          Other
Actions as to Any and All Collateral. The Grantor shall promptly (and in any event within five (5) Business Days of acquiring
or obtaining such Collateral) notify the Secured Parties in writing upon (i) acquiring or otherwise obtaining any Collateral after
the date hereof consisting of Investment Related Property, Chattel Paper (electronic, tangible or otherwise), documents (as defined
in Article 9 of the Code), promissory notes (as defined in the Code) or instruments (as defined in the Code) collectively having
an aggregate value in excess of $100,000 or (ii) any amount payable under or in connection with any of the Collateral being or
becoming evidenced after the date hereof by any Chattel Paper, documents, promissory notes, or instruments and, in each such case
upon the request of the Collateral Agent (on behalf of all Secured Parties), promptly execute such other documents, or if applicable,
deliver such Chattel Paper, other documents or certificates evidencing any Investment Related Property and do such other acts or
things deemed reasonably necessary or desirable by the Collateral Agent (on behalf of all Secured Parties) to protect the Secured
Parties' respective Security Interests therein.

 

7.          Relation
to Other Transaction Documents. In the event of any conflict between any provision in this Agreement and any provision in the
Securities Purchase Agreement or Notes, such provision of the Securities Purchase Agreement or Notes shall control, except to the
extent the applicable provision in this Agreement is more restrictive with respect to the rights of the Grantor or imposes more
burdensome or additional obligations on the Grantor, in which event the applicable provision in this Agreement shall control.

 

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8.          Further
Assurances.

 

(a)          The
Grantor agrees that from time to time, at its own expense, it will promptly execute and deliver all further instruments and documents,
and take all further action, that may be reasonably necessary or that the Collateral Agent (on behalf of all Secured Parties)
may reasonably request, in order to perfect and protect the Security Interests granted or purported to be granted hereby or to
enable the Secured Parties to exercise and enforce their rights and remedies hereunder with respect to any of the Collateral.

 

(b)          The
Grantor authorizes the filing by the Collateral Agent (on behalf of all Secured Parties) of financing or continuation statements,
or amendments thereto, including, but not limited to, the recordation of the security interests granted hereunder in Patents, Trademarks
and Copyrights in the United States Patent and Trademark Office and the United States Copyright Office, and Grantor will execute
and deliver to the Collateral Agent such other instruments or notices, as may be reasonably necessary or as the Collateral Agent
may reasonably request, in order to perfect and preserve the Security Interests granted or purported to be granted hereby. Upon
the Satisfaction in Full of the Secured Obligations, the Collateral Agent shall (at Grantor' expense) file a termination statement
and/or other necessary documents terminating and releasing any and all financing statements or Liens on the Collateral pursuant
to Section 24 within five (5) Business Days following a written request therefor from Grantor.

 

(c)          The
Grantor authorizes the Collateral Agent (on behalf of all Secured  Parties) at any time and from time to time to file, transmit,
or communicate, as applicable, financing statements and amendments (i) describing the Collateral as “all assets of debtor”
or words of similar effect, (ii) describing the Collateral as being of equal or lesser scope or with greater detail, or (iii) that
contain any information required by part 5 of Article 9 of the Code for the sufficiency or filing office acceptance. The Grantor
also hereby ratifies any and all financing statements or amendments previously filed by the Collateral Agent in any jurisdiction.

 

(d)          Subject
to Section 8(b), the Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination
statement with respect to any financing statement filed in connection with this Agreement without the prior written consent of
the Collateral Agent (on behalf of all Secured Parties), subject to the Grantor's rights under Section 9-509(d)(2) of the Code.

 

(e)          Upon
five (5) Business Day's advance notice, the Grantor shall permit each Secured Party (at such Secured Party's expense) or its employees,
accountants, attorneys or agents, access to examine and inspect any Collateral or any other property of the Grantor at any time
during ordinary business hours, but no more than once per calendar year unless an Event of Default has occurred and is continuing.

 

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9.          Collateral
Agent's Right to Perform Contracts, Exercise Rights, etc. Upon the occurrence and during the continuance of an Event of Default,
the Collateral Agent (on behalf of all Secured Parties) (a) may proceed to perform any and all of the obligations of the Grantor
contained in any contract, lease, or other agreement and exercise any and all rights of the Grantor therein contained as fully
as the Grantor itself could, (b) shall have the right to use the Grantor's rights under Intellectual Property Licenses in connection
with the enforcement of the Secured Parties' rights hereunder, including the right to prepare for sale and sell any and all Inventory
and Equipment now or hereafter owned by the Grantor and now or hereafter covered by such licenses, and (c) shall have the right
to request that any Stock that is pledged hereunder be registered in the name of the Secured Parties or any of their nominees.

 

10.         Collateral
Agent Appointed Attorney-in-Fact. The Grantor, on behalf of itself and each New Subsidiary of the Grantor, hereby irrevocably
appoints the Collateral Agent (on behalf of all Secured Parties) as the attorney-in-fact of the Grantor and each such New Subsidiary
upon the occurrence and during the continuance of an Event of Default. In the event the Grantor or any New Subsidiary fails to
execute or deliver in a timely manner any Transaction Document or other agreement, document, certificate or instrument which the
Grantor or New Subsidiary now or at any time hereafter is required to execute or deliver pursuant to the terms of the Securities
Purchase Agreement or any other Transaction Document, upon the occurrence and during the continuance of an Event of Default, the
Collateral Agent (on behalf of all Secured Parties) shall have full authority in the place and stead of the Grantor or New Subsidiary,
and in the name of the Grantor, such New Subsidiary or otherwise, to execute and deliver each of the foregoing. Without limitation
of the foregoing, upon the occurrence and during the continuance of an Event of Default, the Collateral Agent (on behalf of all
Secured Parties) shall have full authority in the place and stead of the Grantor and each New Subsidiary, and in the name of any
the Grantor, any such New Subsidiary or otherwise, to take any action and to execute any instrument which the Collateral Agent
(on behalf of all Secured Parties) may reasonably deem necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation:

 

(a)          to
ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in connection with any Collateral of the Grantor or New Subsidiary;

 

(b)          to
receive and open all mail addressed to the Grantor or New Subsidiary and to notify postal authorities to change the address for
the delivery of mail to the Grantor or New Subsidiary to that of an address approved by the Collateral Agent (on behalf of all
Secured Parties);

 

(c)          to
receive, indorse, and collect any drafts or other instruments, documents, Negotiable Collateral or Chattel Paper;

 

(d)          to
file any claims or take any action or institute any proceedings which the Collateral Agent (on behalf of all Secured Parties) may
deem reasonably necessary or desirable for the collection of any of the Collateral of the Grantor or New Subsidiary or otherwise
to enforce the rights of the Secured Parties with respect to any of the Collateral; and

 

(e)          to
use any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, customer lists, advertising
matter or other industrial or intellectual property rights, in advertising for the exclusive purpose of sale and selling Inventory
and other Collateral and to collect any amounts due under Accounts, contracts or Negotiable Collateral of the Grantor or New Subsidiary.

 

    	 	15	 

     

    

 

To the extent permitted by law, the Grantor hereby ratifies,
for itself and each New Subsidiary, all that such attorney-in-fact shall lawfully do or cause to be done by virtue hereof, Such
power-of-attorney granted pursuant to this Section 10 is coupled with an interest and shall be irrevocable until this Agreement
is terminated.

 

11.         Collateral
Agent May Perform. If the Grantor fails to perform any agreement contained herein, upon the occurrence and during the
continuance of an Event of Default, the Collateral Agent (on behalf of all Secured Parties) may perform, or cause performance
of, such agreement, and the reasonable expenses of the Collateral Agent incurred in connection therewith shall be payable by
the Grantor.

 

12.         Collateral
Agent's Duties; Bailee for Perfection. The powers conferred on the Collateral Agent hereunder are solely to protect the Secured
Parties' respective interests in the Collateral and shall not impose any duty upon the Collateral Agent in favor of the Grantor
or any other Secured Party to exercise any such powers. Except for the safe custody of any Collateral in its actual possession
and the accounting for moneys actually received by it hereunder, the Collateral Agent shall not have any duty to the Grantor or
any other Secured Party as to any Collateral or as to the taking of any necessary steps .to preserve rights against
prior parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable
care in the custody and preservation of any Collateral in its actual possession if such Collateral is accorded treatment substantially
equal to that which is accorded to its own property. The Collateral Agent agrees that, with respect to any Collateral at any time
or times in its possession and in which any other Secured Party has a Lien, the Collateral Agent shall be the bailee of each other
Secured Party solely for purposes of perfecting (to the extent not otherwise perfected) each other Secured Party's Lien in such
Collateral, provided that the Collateral Agent shall not be obligated to obtain or retain possession of any such Collateral.

 

13.         Collection
of Accounts, General Intangibles and Negotiable Collateral. At any time upon the occurrence and during the continuation
of an Event of Default, the Collateral Agent (on behalf of all Secured Parties) may (a) notify Account Debtors of the Grantor
that the Accounts, General Intangibles, Chattel Paper or Negotiable Collateral have been assigned to the Collateral Agent (on
behalf of all Secured Parties) or that the Collateral Agent (on behalf of all Secured Parties) has a security interest
therein, and (b) collect the Accounts, General Intangibles and Negotiable Collateral directly, and any collection
costs and expenses shall constitute part of the Secured Obligations.

 

    	 	16	 

     

    

 

14.         Disposition
of Pledged Interests by Secured Parties. None of the Pledged Interests hereafter acquired on the date of acquisition thereof
will be registered or qualified under the various federal, state or other securities laws of the United States or any other jurisdiction,
and disposition thereof after an Event of Default may be restricted to one or more private (instead of public) sales in view of
the lack of such registration. The Grantor understands that in connection with such disposition, the Collateral Agent (on behalf
of all Secured Parties) may approach only a restricted number of potential purchasers and further understands that a sale under
such circumstances may yield a lower price for the Pledged Interests than if the Pledged Interests were registered and qualified
pursuant to federal, state and other securities laws and sold on the open market. The Grantor, therefore, agrees that: (a) if the
Collateral Agent (on behalf of all Secured Parties) shall, pursuant to the terms of this Agreement, sell or cause the Pledged Interests
or any portion thereof to be sold at a private sale, the Collateral Agent (on behalf of all Secured Parties) shall have the right
to rely upon the advice and opinion of any nationally recognized brokerage or investment firm (but shall not be obligated to seek
such advice and the failure to do so shall not be considered in determining the commercial reasonableness of such action) as to
the best manner in which to offer the Pledged Interest or any portion thereof for sale and as to the best price reasonably obtainable
at the private sale thereof; and (b) such reliance shall be conclusive evidence that the Collateral Agent has handled the disposition
in a commercially reasonable manner.

 

15.         Voting
Rights.

 

(a)          Upon
the occurrence and during the continuation of an Event of Default, (i) the Collateral Agent (on behalf of all Secured Parties)
may, at its option, and with two (2) Business Days prior notice to the Grantor, and in addition to all rights and remedies available
to the Secured Parties under any other agreement, at law, in equity, or otherwise, exercise all voting rights, and all other ownership
or consensual rights in respect of the Pledged Interests, but under no circumstances is the Collateral Agent obligated by the terms
of this Agreement to exercise such rights, and (ii) if the Collateral Agent (on behalf of all Secured Parties) duly exercises its
right to vote any of such Pledged Interests, the Grantor hereby appoints the Collateral Agent (on behalf of all Secured Parties)
as the Grantor's true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote such Pledged Interests in any manner that the Collateral
Agent (on behalf of all Secured Parties) deem advisable for or against all matters submitted or which may be submitted to a vote
of shareholders, partners or members, as the, case may be. Such power-of-attorney granted pursuant to this Section 15
is coupled with an interest and shall be irrevocable until this Agreement is terminated.

 

(b)          For
so long as the Grantor shall have the right to vote the Pledged Interests, it covenants and agrees that it will not, without the
prior written consent of the Collateral Agent (on behalf of all Secured Parties), vote or take any consensual action with respect
to such Pledged Interests which would materially or adversely affect the rights of the Secured Parties exercising the voting rights
owned by the Grantor or the value of the Pledged Interests.

 

    	 	17	 

     

    

 

16.         Remedies.
Upon the occurrence and during the continuance of an Event of Default:

 

(a)          The
Collateral Agent (on behalf of all Secured Parties) may exercise in respect of the Collateral, in addition to other rights and
remedies provided for herein, in the other Transaction Documents, or otherwise available to it, all the rights and remedies of
a secured party on default under the Code or any other applicable law. Without limiting the generality of the foregoing, the Grantor
expressly agrees that, in any such event, the Collateral Agent (on behalf of all Secured Parties) without any demand, advertisement,
or notice of any kind (except a notice specified below of time and place of public or private sale) to or upon the Grantor or any
other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted
by the Code or by any other applicable law), may take immediate possession of all or any portion of the Collateral and (i) require
the Grantor to, and the Grantor hereby agrees that it will at its own expense and upon request of the Collateral Agent (on behalf
of all Secured Parties) promptly, assemble all or part of the Collateral as directed by the Collateral Agent (on behalf of all
Secured Parties) and make it available to the Collateral Agent (on behalf of all Secured Parties) at one or more locations where
the Grantor regularly maintains Inventory, and (ii) without notice except as specified below, sell the Collateral or any part thereof
in one or more parcels at public or private sale, at the Collateral Agent's offices or elsewhere, for cash, on credit, and upon
such other terms as the Collateral Agent (on behalf of all Secured Parties) may deem commercially reasonable. The Grantor agrees
that, to the extent notice of sale shall be required by law, at least 10 Business Days' notice of the time and place of any public
sale or the time after which any private sale is to be made shall constitute reasonable notification and specifically such notice
shall constitute a reasonable “authenticated notification of disposition” within the meaning of Section 9-611 of the
Code. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.
The Collateral Agent (on behalf of all Secured Parties) may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned.

 

(b)          The
Collateral Agent (on behalf of all Secured Parties) is hereby granted a non-exclusive license or other right to use, without liability
for royalties or any other charge, the Grantor's labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names,
Trademarks, service marks and advertising matter, URLs, domain names, industrial designs, other industrial or intellectual property
or any property of a similar nature, whether owned by the Grantor or with respect to which the Grantor has rights under license,
sublicense, or other agreements (but only to the extent (i) such license, sublicense or agreement does not prohibit such use by
the Collateral Agent (on behalf of all Secured Parties), and (ii) the Grantor will not be in default under such license, sublicense,
or other agreement as a result of such use by the Collateral Agent (on behalf of all Secured Parties)), as it pertains to the Collateral,
for the exclusive purpose of preparing for sale, advertising for sale and effectuating the sale of any Collateral, and the Grantor's
rights under all licenses and all franchise agreements shall inure to the benefit of the Collateral Agent (on behalf of all Secured
Parties).

 

(c)          Any
cash held by the Collateral Agent as Collateral and all proceeds received by the Collateral Agent in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral shall be applied against the Secured Obligations in the order
set forth in Section 17 hereof. In the event the proceeds of Collateral are insufficient for the Satisfaction in Full of the Secured
Obligations (as defined below), the Grantor shall remain liable for any such deficiency.

 

    	 	18	 

     

    

 

(d)          The
Grantor hereby acknowledges that the Secured Obligations arose out of a commercial transaction, and agrees that if an Event of
Default shall occur and be continuing the Collateral Agent (on behalf of all Secured Parties) shall have the right to an immediate
writ of possession without notice of a hearing. The Collateral Agent (on behalf of all Secured Parties) shall have the right to
the appointment of a receiver for the properties and assets of the Grantor, and the Grantor hereby consents to such rights and
such appointment and hereby waives any objection it may have thereto or the right to have a bond or other security posted by the
Collateral Agent (on behalf of all Secured Parties).

 

(e)          The
Collateral Agent (on behalf of all Secured Parties) may, in addition to other rights and remedies provided for herein, in the other
Transaction Documents, or otherwise available to it under applicable law and without the requirement of notice to or upon the Grantor
or any other Person (which notice is hereby expressly waived to the maximum extent permitted by the Code or any other applicable
law), (i) with respect to the Grantor's Deposit Accounts in which any Secured Party's Liens are perfected by control under Section
9-104 of the Code, instruct the bank maintaining such Deposit Account for the Grantor to pay the balance of such Deposit Account
to or for the benefit of the Collateral Agent (on behalf of all Secured Parties), and (ii) with respect to the Grantor's Securities
Accounts in which any Secured Party's Liens are perfected by control under Section 9-106 of the Code, instruct the securities intermediary
maintaining such Securities Account for the Grantor to (A) transfer any cash in such Securities Account to or for the benefit of
the Collateral Agent (on behalf of all Secured Parties), or (B) liquidate any financial assets in such Securities Account that
are customarily sold on a recognized market and transfer the cash proceeds thereof to or for the benefit of the Collateral Agent
(on behalf of all Secured Parties).

 

17.         Priority
of Liens; Application of Proceeds of Collateral. Each Secured Party hereby acknowledges and agrees that, notwithstanding the
time or order of the filing of any financing statement or other registration or document with respect to the Collateral and the
Security Interests, or any provision of this Agreement, any other Security Document, the Code or other applicable law, solely
as amongst the Secured Parties, the separate Security Interests of the Secured Parties shall have the same rank and priority;
provided, that, the foregoing shall not apply to any Security Interest of a Secured Party that is void or voidable as a matter
of law. In furtherance thereof, all proceeds of Collateral received by the Collateral Agent shall be applied as follows:

 

(a)          first,
ratably to pay any expenses due to the Collateral Agent (including, without limitation, the reasonable costs and expenses paid
or incurred to correct any default under or enforce any provision of the Transaction Documents, or after the occurrence and during
the continuance of any Event of Default in gaining possession of, maintaining, handling, preserving, storing, shipping, selling,
preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated);

 

(b)          second,
to pay any indemnities then due to any of the Secured Parties under the Transaction Documents, until paid in full;

 

    	 	19	 

     

    

 

(c)          third,
ratably to pay any fees or premiums then due to any of the Secured Parties under the Transaction Documents, until paid in full;

 

(d)          fourth,
ratably to pay interest due in respect of the Secured Obligations then due to any of the Secured Parties, until paid in full;

 

(e)          fifth,
ratably to pay the principal amount of all Secured Obligations then due to any of the Secured Parties, until paid in full;

 

(f)          sixth,
ratably to pay any other Secured Obligations then due to any of the Secured Parties; and

 

(g)          seventh,
to Grantor or such other Person entitled thereto under applicable law.

 

18.         Remedies
Cumulative. Each right, power, and remedy of any Secured Party as provided for in this Agreement or in any other Transaction
Document or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall
be in addition to every other right, power, or remedy provided for in this Agreement or in the other Transaction Documents or
now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by any
Secured Party, of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise by
such Secured Party of any or all such other rights, powers, or remedies.

 

19.         Marshaling.
No Secured Party shall be required to marshal any present or future collateral security (including but not limited to the
Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such collateral
security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in respect
of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and
remedies, however existing or arising. To the extent that it lawfully may, the Grantor hereby agrees that it will not invoke
any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of any Secured Party's
rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Secured Obligations
or under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment
thereof is otherwise assured, and, to the extent that it lawfully may, the Grantor hereby irrevocably waives the benefits of
all such laws.

 

20.         Appointment
of Collateral Agent; Acknowledgment.

 

(a)          The
Secured Parties hereby appoint Robert Clifford to act as the initial collateral agent on behalf of all Secured Parties (the “Collateral
Agent”). Notwithstanding anything in this Agreement to the contrary, one or more Secured Parties (other
than the then Collateral Agent) holding a majority of the then aggregate outstanding principal balance of the Notes
(excluding any Notes held by the then acting Collateral Agent) may remove the then acting Collateral Agent and appoint any
other Secured Party to act as the Collateral Agent under this Agreement. Upon such appointment such Secured Party shall act
as Collateral Agent pursuant to the terms of this Agreement.

 

    	 	20	 

     

    

 

(b)          No
Secured Party (which term, as used in this sentence, shall include reference to each Secured Party's officers, directors, employees,
attorneys, agents and affiliates and to the officers, directors, employees, attorneys and agents of such Secured Party's affiliates)
shall: (i) have any duties or responsibilities except those expressly set forth in this Agreement and the other Security Documents
or (ii) be required to take, initiate or conduct any enforcement action (including any litigation, foreclosure or collection proceedings
hereunder or under any of the other Security Documents). Without limiting the foregoing, no Secured Party shall have any right
of action whatsoever against any other Secured Party as a result of such Secured Party acting or refraining from acting hereunder
or under any of the Security Documents except as a result and to the extent of losses caused by such Secured Party's actual gross
negligence or willful misconduct. No Secured Party assumes any responsibility for any failure or delay in performance or breach
by the Grantor or any other Secured Party of its obligations under this Agreement or any other Transaction Document. No Secured
Party makes to any other Secured Party any express or implied warranty, representation or guarantee with respect to any Secured
Obligations, Collateral, Transaction Document or the Grantor. No Secured Party nor any of its officers, directors, employees,
attorneys or agents shall be responsible to any other Secured Party or any of its officers, directors, employees, attorneys or
agents for: (i) any recitals, statements, information, representations or warranties contained in any of the Transaction Documents
or in any certificate or other document furnished pursuant to the terms hereof; (ii) the execution, validity, genuineness, effectiveness
or enforceability of any of the Transaction Documents; (iii) the validity, genuineness, enforceability, collectability, value,
sufficiency or existence of any Collateral, or the attachment, perfection or priority of any Lien therein; or (iv) the assets,
liabilities, financial condition, results of operations, business, creditworthiness or legal status of the Grantor or any Account
Debtor. No Secured Party nor any of its officers, directors, employees, attorneys or agents shall have any obligation to any other
Secured Party to ascertain or inquire into the existence of any default or Event of Default, the observance or performance by
the Grantor of any of its duties or agreements under any of the Transaction Documents or the satisfaction of any conditions precedent
contained in any of the Transaction Documents.

 

(d)          Each
Secured Party hereby acknowledges and represents that it has, independently and without reliance upon any other Secured Party,
and based upon such documents, information and analyses as it has deemed appropriate, made its own credit analysis of the Grantor
and its own decision to enter into the Transaction Documents and to purchase the Notes, and each Secured Party has made such inquiries
concerning the Transaction Documents, the Collateral and the Grantor as such Secured Party feels necessary and appropriate, and
has taken such care on its own behalf as would have been the case had it entered into the Transaction Documents without any other
Secured Party. Each Secured Party hereby further acknowledges and represents that the other Secured Parties have not made any
representations or warranties to it concerning the Grantor, any of the Collateral or the legality, validity, sufficiency or enforceability
of any of the Transaction Documents. Each Secured Party also hereby acknowledges that it will, independently and without reliance
upon the other Secured Parties, and based upon such financial statements, documents and information as it deems appropriate at
the time, continue to make and rely upon its own credit decisions in taking or refraining to take any other action under this
Agreement or the Transaction Documents. No Secured Party shall have any duty or responsibility to provide any other Secured Party
with any notices, reports or certificates furnished to such Secured Party by the Grantor or any credit or other information concerning
the affairs, financial condition, business or assets of the Grantor (or any of its affiliates) which may come into possession
of such Secured Party.

 

    	 	21	 

     

    

 

21.         Indemnity
and Expenses.

 

(a)          Without
limiting any obligations of the Grantor under the Securities Purchase Agreement, the Grantor agrees to indemnify all Secured Parties
from and against all claims, lawsuits and liabilities (including reasonable attorneys' fees) arising out of or resulting from
this Agreement (including enforcement of this Agreement), except claims, losses or liabilities resulting from the gross negligence
or willful misconduct of the Secured Party seeking indemnification as determined by a final non-appealable order of a court of
competent jurisdiction. This provision shall survive the termination of this Agreement and the Transaction Documents and the Satisfaction
in Full of the Secured Obligations.

 

(b)          The
Grantor shall, upon demand, pay to the Collateral Agent all of the reasonable costs and expenses which the Collateral Agent may
incur in connection with the custody, preservation, use or operation of, or, upon an Event of Default, the sale of, collection
from, or other realization upon, any of the Collateral in accordance with this Agreement and the other Transaction Documents.
The Grantor shall, upon demand, pay to each Secured Party all of the reasonable costs and expenses which such Secured Party may
incur in connection with (i) the exercise or enforcement of any of the rights of such Secured Party hereunder or (ii) the failure
by the Grantor to perform or observe any of the provisions hereof.

 

22.         Merger,
Amendments; Etc. THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES SOLELY WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES, THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES. No provision of this Agreement
may be amended other than by an instrument in writing signed by the Grantor and the Collateral Agent, and any amendment to any
provision of this Agreement made in conformity with the provisions of this Section 22 shall be binding on all Secured Parties,
provided that no such amendment shall be effective to the extent that it (a) applies to less than all of the Secured Parties or
(b) imposes any obligation or liability on any Secured Party without such Secured Party's prior written consent (which may be granted
or withheld in such Secured Party's sole discretion). No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party, provided that the Collateral Agent may waive any provision of this Agreement, and any waiver
of any provision of this Agreement made in conformity with the provisions of this Section 22 shall be binding on all Secured Parties,
provided that no such waiver shall be effective to the extent that it (i) applies to less than all the Secured Parties (unless
a party gives a waiver as to itself only) or (ii) imposes any obligation or liability on any Secured Party without such Secured
Party's prior written consent (which may be granted or withheld in such Secured Party's sole discretion).

 

    	 	22	 

     

    

 

23.         Addresses
for Notices. All notices and other communications provided for hereunder (a) shall be given in the form and manner set forth
in the Securities Purchase Agreement and (b) shall be delivered, (i) in the case of notice to the Grantor, by delivery of such
notice to the Grantor's address specified in the Securities Purchase Agreement or at such other address as shall be designated
by the Grantor in a written notice to each of the Secured Parties in accordance with the provisions thereof, and (ii) in the case
of notice to any  Secured Party, by delivery of such notice to such Secured Party at its address specified in the Securities
Purchase Agreement or at such other address as shall be designated by such Secured Party in a written notice to the Grantor and
each other Secured Party in accordance with the provisions thereof.

 

24.         Separate,
Continuing Security Interests; Assignments under Transaction Documents. This Agreement shall create a continuing security interest
in the Collateral in favor of the Collateral Agent on behalf of each Secured Party and shall (a) remain in full force and effect
until Satisfaction in Full of the Secured Obligations, (b) be binding upon the Grantor, and its permitted successors and permitted
assigns, and (c) inure to the benefit of, and be enforceable by, the Secured Parties and their respective successors, transferees
and assigns. Without limiting the generality of the foregoing clause (c), any Secured Party  may, in accordance with the
provisions of the Transaction Documents, assign or otherwise transfer all or any portion of its rights and obligations under the
Transaction Documents to any other Person, and such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Secured Party herein or otherwise. Upon Satisfaction in Full of the Secured Obligations, the Security Interests
granted hereby shall terminate and all rights to the Collateral shall revert to the Grantor or any other Person entitled thereto.
At such time, the Collateral Agent and each Secured Party will authorize the filing of appropriate termination statements to terminate
such Security Interests. No transfer or renewal, extension, assignment, or termination of this Agreement or any other Transaction
Document, or any other instrument or document executed and delivered by the Grantor to any Secured Party nor any additional loans
made by any Secured Party to the Grantor, nor the taking of further security, nor the retaking or re-delivery of the Collateral
to the Grantor, or any of them, by any Secured Party, nor any other act of the Secured Parties, or any of them, shall release the
Grantor from any obligation, except a release or discharge executed in writing by all Secured Parties. No Secured Party shall by
any act, delay, omission or otherwise, be deemed to have waived any of its rights or remedies hereunder, unless such waiver is
in writing and signed by such Secured Party and then only to the extent therein set forth. A waiver by any Secured Party of any
right or remedy on any occasion shall not be construed as a bar to the exercise of any such right or remedy which such Secured
Party would otherwise have had on any other occasion.

 

    	 	23	 

     

    

 

25.         Governing
Law; Jurisdiction; Service of Process; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New York, Each party hereby irrevocably submits 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 suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper; provided, however, any suit seeking enforcement against any Collateral or other property may be brought, at any
Secured Party's option, in the courts of any jurisdiction where such Secured Party elects to bring such action or where such Collateral
or other property may be found: Each party hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such 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 mariner permitted by law. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

26.         Miscellaneous.

 

(a)          This
Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is
delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature
page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such signature page were an original thereof. Any party delivering an executed
counterpart of this Agreement by facsimile or other electronic method of transmission also shall deliver an original executed counterpart
of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and
binding effect of this Agreement. The foregoing shall apply to each other Security Document mutatis mutandis.

 

(b)          Any
provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such provision
in any other jurisdiction.

 

(c)          Headings
used in this Agreement are for convenience only and shall not be used in connection with the interpretation of any provision hereof.

 

(d)          The
pronouns used herein shall include, when appropriate, either gender and both singular and plural, and the grammatical construction
of sentences shall conform thereto.

 

    	 	24	 

     

    

 

(e)          The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party. For clarification purposes, the Recitals are part of this Agreement.

 

(f)          Unless
the context of this Agreement or any other Transaction Document clearly requires otherwise, references to the plural include the
singular; references to the singular include the plural, the terms “includes” and “including” are not
limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
“and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and
similar terms in this Agreement or any other Transaction Document refer to this Agreement or such other Transaction Document,
as the case may be, as a whole and not to any particular provision of this Agreement or such other Transaction Document, as the
case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified.
Any reference in this Agreement or in any other Transaction Document to any agreement, instrument, or document shall include all
alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements,
thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements set forth herein). “Satisfaction in Full of the Secured
Obligations” shall mean the indefeasible payment in full in cash and discharge, or other satisfaction in accordance
with the terms of the Transaction Documents (including, without limitation, conversion of the Notes into equity of the Company)
and discharge, of all Secured Obligations in full. Any reference herein to any Person shall be construed to include such Person's
permitted successors and permitted assigns. Any requirement of a writing contained herein or in any other Transaction Document
shall be satisfied by the transmission of a Record and any Record so transmitted shall constitute a representation and warranty
as to the accuracy and completeness of the information contained therein.

 

(g)          All
dollar amounts referred to in this Agreement and the other Transaction Documents are in United States Dollars (“U.S. Dollars”),
and all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated
in other currencies shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date
of calculation. “Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars
pursuant to this Agreement, the U.S. Dollar exchange rate as published in The Wall Street Journal on the relevant date of calculation.

 

[signature pages follow]

 

    	 	25	 

     

    

 

IN WITNESS WHEREOF,
the undersigned parties hereto have executed this Agreement by and through their duly authorized officers, as of the day and year
first above written.

 

	GRANTOR: 	MEARS TECHNOLOGIES, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ John D.T. Gerber
	 	 	Name: John D.T. Gerber
	 	 	Title: Chairman

 

	COLLATERAL AGENT:	/s/ Robert Clifford	 
	 	Robert CliffordExhibit 10.14

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (“Agreement”) is entered into on October 16, 2015 (“Effective Date”)
by and between Mears Technologies, Inc., a Delaware corporation (“Company”), and Scott A.
Bibaud (“Executive”).

 

RECITAL

 

Company wishes to
employ Executive in an executive capacity on the terms and conditions and for the consideration, hereinafter set forth and Executive
wishes to be employed by Company on such terms and conditions and for such consideration.

 

AGREEMENT

 

It is agreed as follows:

 

ARTICLE I

DEFINITIONS AND INTERPRETATIONS

 

1.1         Definitions.

 

(a)           “Annual
Base Salary” shall mean Executive’s annual base salary as of the date of his Involuntary Termination, determined
pursuant to Section 4.1.

 

(b)         “Board”
shall mean the board of directors of Company.

 

(c)         “Cause”
shall mean Executive (i) has engaged in gross negligence or willful misconduct in the performance of his duties at the Company,
(ii) has materially breached this Agreement or that certain Employee Confidentiality and Assignment Agreement dated October 16,
2015 between the Company and Executive, (iii) has willfully and materially breached a significant corporate policy or code of conduct
established by Company, (iv) has engaged in willful misconduct that is materially injurious to Company and its subsidiaries taken
as a whole (monetarily or otherwise), (v) has committed an act of fraud or embezzlement, (vi) has been convicted of (or pleaded
no contest to) a criminal act involving fraud, dishonesty, or moral turpitude, or (vii) has been convicted for any violation of
U.S. or foreign securities laws or has entered into a cease and desist order with the Securities and Exchange Commission alleging
violation of U.S. or foreign securities laws.

 

(d)         “Change
of Control” shall mean

 

(i)          the Company
is merged, consolidated, or reorganized into or with another corporation or other legal person (an “Acquirer”) and
as a result of such merger, consolidation, or reorganization, less than fifty-one percent (51%) of the outstanding voting securities
or other capital interests of the surviving, resulting, or acquiring corporation or other legal person are owned in the aggregate
by the stockholders of the Company, directly or indirectly, immediately prior to such merger, consolidation or reorganization,
other than by the Acquirer or any corporation or other legal person controlling, controlled by or under common control with the
Acquirer; or

 

     

     

    

 

(ii)             the Company
sells all or substantially all of its business and/or assets to an Acquirer, of which less than fifty-one percent (51%) of the
outstanding voting securities or other capital interests are owned in the aggregate by the stockholders of the Company, directly
or indirectly, immediately prior to such sale, other than by any corporation or other legal person controlling, controlled by or
under common control with the Acquirer.

 

(e)         “Code” shall mean the Internal Revenue
Code of 1986, as amended.

 

(f)         “Compensation
Committee” shall mean the Compensation Committee of the Board.

 

(g)         “Disability”
shall mean that, as a result of Executive’s incapacity due to physical or mental illness, Executive shall have been absent
from the full-time performance of his duties for six consecutive months and shall not have returned to full-time performance of
his duties within 30 days after written notice of termination is given to Executive by Company (provided, however, that such notice
may not be given prior to 30 days before the expiration of such six-month period).

 

(h)         “Good
Reason” shall mean the occurrence of any one or more of the following:

 

(i)          a diminution
in Executive’s Annual Base Salary not in accordance with Section 4.1;

 

(ii)         a material
diminution in Executive’s title, authority, duties, or responsibilities from those applicable to him as of the Effective
Date, including any change in title or a material change in the reporting structure so that Executive reports to someone other
than the Board;

 

(iii)        a material
change in the geographic location at which Executive must perform services, which for purposes of this Agreement includes only
Company requiring Executive to involuntarily relocate to a geographic location other than the Place of Employment in Section 2.5;
or

 

(iv)        a material
breach by Company of any provision of this Agreement (including, without limitation, the requirements of Sections 2.2, 4.1, 4.2,
4.3 or 4.4 of this Agreement); or

 

(v)         a Change of
Control.

 

Notwithstanding
the foregoing provisions of this Section 1.1(h) or any other provision in this Agreement to the contrary, any assertion by Executive
of a termination of employment for “Good Reason” shall not be effective unless all of the following conditions are
satisfied: (1) any condition described in clauses (i) through (iv) of this Section 1.1(h) giving rise to Executive’s termination
of employment must have arisen without Executive’s consent; (2) Executive must provide written notice to Company of such
condition in accordance with Section 7.1 within 30 days of the initial existence of the condition; (3) the condition specified
in such notice must remain uncorrected for a period of 30 days following receipt of such notice by Company; and (4) the date of
Executive’s termination of employment must occur within one year following the initial existence of the condition
specified in such notice.

 

    	-2-

     

    

 

(i)          “Incentive
Plan” shall mean the Mears Technologies, Inc. 2007 Stock Incentive Plan as it may be amended from time-to-time.

 

(j)          “Involuntary
Termination” shall mean any termination of Executive’s employment with Company which results from either:

 

(i)          A termination by the Company without Cause; or

 

(ii)         A resignation by Executive for Good Reason;

 

provided, however, the term “Involuntary
Termination” shall not include a termination for Cause or any termination as a result of death or Disability.

 

(k)           “Payment
Date” shall mean the later of (i) the date that is 30 days after Executive’s termination of employment with Company
or (ii) the date upon which the Release described in Section 5.5 becomes irrevocable by Executive.

 

1.2          Interpretations.
In this Agreement, unless a clear contrary intention appears, (a) the words “herein,” “hereof,” “hereunder,”
and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, or other subdivision,
(b) reference to any Article or Section means such Article or Section hereof, (c) the word “including” (and with correlative
meaning, “include”) means including, without limiting the generality of any description preceding such term, and (d)
where any provision of this Agreement refers to action to be taken by either party, or which such party is prohibited from taking,
such provision shall be applicable whether such action is taken directly or indirectly by such party.

 

ARTICLE II

EMPLOYMENT AND DUTIES

 

2.1          Employment.
Effective as of the Effective Date and continuing for the period of time set forth in Section 3.1 of this Agreement, Executive’s
employment by Company shall be subject to the terms and conditions of this Agreement.

 

2.2          Positions.
From and after the Effective Date, Company shall employ Executive in the position of Chief Executive Officer of the Company
(“CEO”) or in such other position or positions as the parties mutually may agree. Also, while serving in the
position of CEO, Executive shall also be entitled to serve as a member of the Board.

 

2.3          Duties and
Services. Executive agrees to serve in the position referred to in Section 2.2 and to perform diligently and to the best of
his abilities the duties and services appertaining to such office, as well as such additional duties and services appropriate
to such offices which the parties mutually may agree upon from time to time. Executive in his capacity as CEO shall have all of
the authorities, duties and obligations of the CEO as provided under Section 3.8 of the Bylaws of the Company, as amended. Executive
also agrees to serve, if elected, as an officer or director of any wholly-owned subsidiary or affiliate of Company so long as
such service is commensurate with Executive’s duties and responsibilities to Company. Executive’s
employment shall also be subject to the policies maintained and established by Company that are of general applicability to Company’s
executive employees, as such policies may be amended from time to time.

 

    	-3-

     

    

 

2.4          Other
Interests. Executive agrees, during the period of his employment by Company, to devote substantially all of his business
time, energy, and best efforts to the business and affairs of Company and its affiliates and not to engage, directly or indirectly,
in any other business or businesses, whether or not similar to that of Company, except as herein permitted or with the consent
of the Board. The foregoing notwithstanding, the parties recognize and agree that Executive may engage in passive personal investment
and charitable activities and serve on corporate boards of directors that, in any case, do not conflict with the business and
affairs of Company or interfere with Executive’s performance of his duties hereunder, which shall be at the sole determination
of the Board.

 

2.5          Place of Employment. Executive’s place
of employment hereunder shall be at Company’s executive offices in the greater San Jose, California metropolitan area or
such other place in the San Francisco Bay Area as the Company may determine from time-to-time.

 

ARTICLE III

TERM AND TERMINATION OF EMPLOYMENT

 

3.1          Term. Unless
sooner terminated pursuant to other provisions hereof, Company agrees to employ Executive for the period beginning on the Effective
Date and ending on the fourth anniversary of the Effective Date.

 

3.2          Company’s
Right to Terminate. Notwithstanding the provisions of Section 3.1, Company shall have the right to terminate Executive’s
employment under this Agreement at any time for any of the following reasons:

 

(a)         upon Executive’s death;

 

(b)         upon Executive’s Disability;

 

(c)         for Cause; or

 

(d)         at any time,
for any other reason whatsoever, in the sole discretion of the Board.

 

Prior to terminating Executive for Cause,
(i) Executive shall have been provided with fifteen (15) days prior written notice of the circumstances giving rise to Cause, (ii)
Executive shall have fifteen (15) days to remedy the circumstances constituting Cause, if curable, (iii) Executive shall have had
the opportunity to appear before the Board (without counsel) to discuss the circumstances constituting Cause, and (iv) at least
two thirds (2/3) of the members of the Board (excluding Executive) shall have affirmatively voted to terminate Executive for Cause.

 

    	-4-

     

    

 

3.3          Executive’s Right to Terminate. Notwithstanding
the provisions of Section 3.1, Executive shall have the right to terminate his employment under this Agreement for any of the
following reasons:

 

(a)         for Good Reason; or

 

(b)         at any time for
any other reason whatsoever, in the sole discretion of Executive.

 

3.4          Notice of Termination. If Company desires to
terminate Executive’s employment hereunder at any time prior to expiration of the term of employment as provided in Section
3.1, it shall do so by giving a 30-day written notice to Executive that it has elected to terminate Executive’s employment
hereunder and stating the effective date and reason for such termination, provided that no such action shall alter or amend any
other provisions hereof or rights arising hereunder. If Executive desires to terminate his employment hereunder at any time prior
to expiration of the term of employment as provided in Section 3.1, he shall do so by giving a 30-day written notice to Company
that he has elected to terminate his employment hereunder and stating the effective date and reason for such termination, provided
that no such action shall alter or amend any other provisions hereof or rights arising hereunder.

 

3.5          Deemed
Resignations. Unless otherwise agreed to in writing by Company and Executive prior to the termination of Executive’s
employment, any termination of Executive’s employment shall constitute an automatic resignation of Executive as an officer
of Company and each affiliate of Company and an automatic resignation of Executive from the Board (if applicable) and from the
board of directors or similar governing body of any affiliate of Company and from the board of directors or similar governing
body of any corporation, limited liability entity, or other entity in which Company or any affiliate holds an equity interest
and with respect to which board or similar governing body Executive serves as Company’s or such affiliate’s designee
or other representative.

 

3.6          Meaning of Termination of Employment.
For all purposes of this Agreement, Executive shall be considered to have terminated employment with Company when Executive
incurs a “separation from service” with Company within the meaning of Section 409A(a)(2)(A)(i) of the Code and applicable
administrative guidance issued thereunder.

 

ARTICLE IV

COMPENSATION AND BENEFITS

 

4.1          Base
Salary. During the period of this Agreement, Executive shall receive a minimum base salary of $300,000 per annum during each
full year of employment, except that until there is an initial public offering (the “IPO”), the
base salary shall be $250,000 per annum. Executive’s base salary shall be reviewed by the Compensation Committee on an annual
basis, and, in the sole discretion of the Compensation Committee, such base salary may be increased, but not decreased (except
with the prior written consent of Executive), effective as of any date determined by the Compensation Committee. Executive’s
base salary shall be paid in equal installments in accordance with Company’s standard policy regarding payment of compensation
to executives but no less frequently than monthly.

 

    	-5-

     

    

 

4.2          Onetime Incentive Bonus. Executive
shall receive a onetime Incentive Bonus of $250,000. This onetime Incentive Bonus shall be awarded to Executive if the IPO occurs
(a) prior to May 31, 2016 or, (b) if the maturity date of the Senior Secured Convertible Notes (“Notes”)
under the Company’s February 18, 2015 offering is extended, prior to June 30, 2016.

 

4.3          Option Compensation. Upon
the date of this Agreement, Executive shall receive a grant of options (“Options”) to purchase 4,545,042
shares of the $0.001 par value common stock (“Common Stock”) of the Company. The strike price
of the Options shall be $0.38 per share, representing the fair market value of one share of Common Stock as of the date of this
Agreement. The Options shall be granted pursuant to the terms and subject to the conditions of a Stock Option Agreement of even
date herewith between Executive and Company. Upon, and subject to, the completion of the IPO, Executive shall be granted additional
stock options (“Gross Up Options”), which together with the Options, will represent six and three tenths
percent (6.3%) of the outstanding shares of Common Stock on a fully-diluted basis after giving effect to the IPO. The strike price
of the Gross Up Options shall be the public offering price in the IPO and the Gross Up Options shall be granted pursuant to the
terms and subject to the conditions of a similar Stock Option Agreement.

 

(a)         Vesting of
Options. In addition to the time-based vesting provisions set forth hereafter in this subpart (a), Options to purchase 2,077,727
shares of Common Stock shall vest and become exercisable subject to the conversion of all principal and accrued interest under
the Notes into shares of Common Stock on or before May 31, 2016, unless such date is extended by the holders of the Notes to no
later than June 30, 2016. In addition to the afore-mentioned performance-based vesting condition with respect to Options to purchase
2,077,727 shares of Common Stock, all of the Options will vest over a four-year period from the date of grant as follows: one-fourth
of the Options shall vest and first become exercisable on the one year anniversary of the date of grant (such amount to be equal
to one-fourth of the Options outstanding as of the one year anniversary date after giving effect to the potential cancellation
of Options to purchase 2,077,727 shares of Common Stock in the event of the failure to satisfy the above-mentioned performance-based
vesting condition) and the balance of the Options shall vest in 36 equal monthly installments commencing on the 13 month following
the date of grant.

 

(b)         Vesting
of Gross Up Options. The Gross Up Options will vest as follows: a Ratable Portion (as defined below) of the Gross Up Options
shall vest and first become exercisable on the later of the one year anniversary of the date of grant of the Options or the completion
date of the IPO (the latter of the two dates referred to as the “Initial Vesting Date”), and
the balance of the Gross Up Options shall vest in equal monthly installments, commencing on the one month anniversary of the Initial
Vesting Date, over a number of months equal to 48 less the Variable Number (as defined below). The term “Ratable Portion”
shall mean a portion of the Gross Up Options equal to the total number of Gross Up Options multiplied by the product of .25 times
a fraction, the denominator of which is 12 and the numerator of which is the lesser of 12 and the Variable Number. The term “Variable
Number” means number of 30-day periods, or portions therof, between the grant date of the Options and the
Initial Vesting Date.

 

    	-6-

     

    

 

4.4          Bonuses and Long-Term Incentive.

 

(a)         Annual Bonus.
Executive shall be eligible for an annual bonus of up to fifty percent (50%) of Executive’s Base Salary based on performance
criteria set by the Compensation Committee and to otherwise participate in Company’s annual bonus plan or plans applicable
to Executive, all as approved from time to time by the Compensation Committee in amounts to be determined by the Compensation Committee
based upon criteria established by the Compensation Committee.

 

(b)         Long-Term
Incentive Plan. Subject to the sole discretion of the Compensation Committee, Executive shall also be eligible for participation
in the Incentive Plan or such other long-term incentive arrangement of Company as may from time to time be made available to other
executive officers of Company. Any awards made under the Incentive Plan or such other arrangements shall be governed by Section
5.7 herein.

 

4.5          Other Perquisites. During his employment hereunder,
Executive shall be afforded the following benefits as incidences of his employment:

 

(a)         Business
and Entertainment Expenses - Subject to Company’s standard policies and procedures with respect to expense reimbursement
as applied to its executive employees generally, Company shall reimburse Executive for, or pay on behalf of Executive, reasonable
and appropriate expenses incurred by Executive for business-related purposes, including dues and fees to industry and professional
organizations and costs of entertainment and business development.

 

(b)         Company
Benefits - Executive and, to the extent applicable, Executive’s spouse, dependents, and beneficiaries, shall be allowed
to participate in all benefits, plans, and programs, including improvements or modifications of the same, which are now, or may
hereafter be, available to other executive employees of Company. Such benefits, plans, and programs shall include, without limitation,
any profit sharing plan, thrift plan, health insurance or health care plan, life insurance, disability insurance, pension plan,
supplemental retirement plan, vacation and sick leave plan, and the like which may be maintained by Company. Company shall not,
however, by reason of this paragraph be obligated to institute, maintain, or refrain from changing, amending, or discontinuing,
any such benefit plan or program, so long as such changes are similarly applicable to executive employees generally. See Exhibit
A for the current Company Benefits Program.

 

ARTICLE V

EFFECT OF TERMINATION ON COMPENSATION;
ADDITIONAL PAYMENTS

 

5.1          Termination Other Than an Involuntary
Termination. If Executive’s employment hereunder shall terminate for any other reason except other than expiration of
the term provided in Section 3.1 hereof or those described in Section 5.2, then Company shall continue to provide all compensation
and benefits to Executive hereunder until the date of such termination of employment, and such compensation and benefits shall
terminate contemporaneously with such termination of employment.

 

    	-7-

     

    

 

5.2          Involuntary Termination. Subject to the provisions
of Sections 5.5 and 5.6 hereof, if Executive’s employment by Company or any successor thereto shall be subject to an Involuntary
Termination, then Company shall, as additional compensation for services rendered to Company (including its subsidiaries), pay
to Executive the following amounts and take the following actions:

 

(a)         Pay Executive
a lump sum cash payment in an amount equal to eighteen (l 8) months of Executive’s Base Salary on or before the Payment Date;

 

(b)         Accelerate eighteen
(18) months vesting of options or other types of equity granted to Executive; and

 

(c)         During the portion,
if any, of the twelve (12) month period commencing on the date of such Involuntary Termination that Executive is eligible to elect
and elects to continue coverage for himself and his eligible dependents under Company’s or a subsidiary’s group health
plans, as applicable, under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and/or Sections 601 through
608 of the Employee Retirement Income Security Act of 1974, as amended, Company shall promptly reimburse Executive on a monthly
basis for the difference between the amount Executive pays to effect and continue such coverage and the employee contribution amount
that active senior executive employees of Company pay for the same or similar coverage under such group health plans; provided,
however, that such reimbursement shall cease to be effective if and to the extent Executive becomes eligible to receive medical
and/or dental coverage from a subsequent employer (and any such eligibility shall be promptly reported to Company by Executive).

 

5.3          Change of Control. In the event of a Change of
Control, vesting of all options or other types of equity granted to Executive shall fully vest immediately prior to such Change
of Control.

 

5.4          Expiration of Term. If Executive’s employment
hereunder shall terminate upon expiration of the term provided in Section 3.1 hereof, then Company shall, as additional compensation
for services rendered to Company (including its subsidiaries), pay to Executive the amounts set forth in Section 5.2(a).

 

5.5          Release
and Full Settlement. As a condition to the receipt of any severance compensation and benefits under this Agreement, Executive
must first execute a release and agreement, substantially in the form attached hereto as Exhibit B, which (a) shall release
and discharge Company and its affiliates, and their officers, directors, employees, and agents, from any and all claims or causes
of action of any kind or character, including all claims or causes of action arising out of Executive’s employment with
Company or its affiliates or the termination of such employment, and (b) must be effective and irrevocable within 55 days after
the termination of Executive’s employment. If Executive is entitled to and receives the benefits provided hereunder, performance
of the obligations of Company hereunder will constitute full settlement of all claims that Executive might otherwise assert against
Company on account of Executive’s termination of employment.

 

    	-8-

     

    

 

5.6          Payments Subject to
Section 409A of the Code. Notwithstanding the foregoing provisions of this Article 5, if the payment of any severance compensation
or severance benefits under this Agreement would be subject to additional taxes and interest under Section 409A of the Code
because the timing of such payment is not delayed as provided in Section 409A(a)(2)(B) of the Code, then any such payments that
Executive (or Executive’s estate) would otherwise be entitled to during the first twelve (12) months following the date
of Executive’s termination of employment shall be accumulated and paid on the date that is twelve (12) months after the
date of Executive’s termination of employment (or if such payment date does not fall on a business day of Company, the next
following business day of Company), or such earlier date upon which such amount can be paid under Section 409A of the Code without
being subject to such additional taxes and interest. Executive hereby agrees to be bound by Company’s determination of its
“specified employees” (as such term is defined in Section 409A of the Code) in accordance with any of the methods
permitted under the regulations issued under Section 409A of the Code.

 

5.7          Other Benefits. This Agreement governs the rights
and obligations of Executive and Company with respect to Executive’s base salary and certain perquisites of employment.
Except as expressly provided herein, Executive’s rights and obligations both during the term of his employment and thereafter
with respect to stock options, restricted stock, incentive and deferred compensation, life insurance policies insuring the life
of Executive, and other benefits under the plans and programs maintained by Company shall be governed by the separate agreements,
plans and other documents and instruments governing such matters.

 

ARTICLE VI

DISPUTE RESOLUTION

 

6.1          General. Executive and the Company explicitly
recognize that no provision of this Article VI shall prevent either party from seeking to resolve any dispute arising under the
Confidentiality and Assignment of Invention Agreement.

 

6.2          Negotiation.
The parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by
negotiations between Executive and an executive officer of Company who has authority to settle the controversy. Any party may
give the other party written notice of any dispute not resolved in the normal course of business. Within ten days after the
effective date of such notice, Executive and an executive officer of Company shall meet at a mutually acceptable time and
place within the San Jose, California metropolitan area, and thereafter as often as they reasonably deem necessary, to
exchange relevant information and to attempt to resolve the dispute. If the matter has not been resolved within 30 days of
the disputing party’s notice, or if the parties fail to meet within ten days, either party may initiate arbitration of
the controversy or claim as provided in Section 6.3 below. If a negotiator intends to be accompanied at a meeting by an
attorney, the other negotiator shall be given at least three business days’ notice of such intention and may also be
accompanied by an attorney. All negotiations pursuant to this Section 6.2 shall be treated as compromise and
settlement negotiations for the purposes of the federal and state rules of evidence and procedure.

 

6.3          Arbitration. Company and Executive agree that
after efforts to negotiate any dispute in accordance with Section 6.2 have failed, then either party may by written notice (the
“Notice”) demand arbitration of the dispute as set out below, and each party hereto expressly agrees
to submit to, and be bound by, such arbitration.

 

    	-9-

     

    

 

(a)         Each party
will, within ten business days of the Notice, nominate an arbitrator, who shall be a non-neutral arbitrator. Each nominated arbitrator
must be someone experienced in dispute resolution and of good character without moral turpitude and not within the employ or direct
or indirect influence of the nominating party. The two nominated arbitrators will, within ten business days of nomination, agree
upon a third arbitrator, who shall be neutral. If the two appointed arbitrators cannot agree on a third arbitrator within such
period, the parties may seek such an appointment through any permitted court proceeding or by the American Arbitration Association
(“AAA”). The three arbitrators will set the rules and timing of the arbitration, but will generally follow
the rules of the AAA and this Agreement where same are applicable and shall provide for a reasoned opinion.

 

(b)         The arbitration
hearing will in no event take place more than 180 days after the appointment of the third arbitrator.

 

(c)         The arbitration
will take place in the San Jose, California metroplex unless otherwise unanimously agreed to by the parties.

 

(d)         The results
of the arbitration and the decision of the arbitrators will be final and binding on the parties, and each party agrees and acknowledges
that these results shall be enforceable in a court of law.

 

(e)         All administrative
costs and expenses of the mediation and arbitration shall be borne equally by the Company and Executive during the pendency of
the proceedings. Such costs and expenses do not include attorney’s fees, expert witness fees or other party generated expenses.
Upon the conclusion of the proceedings, the prevailing party shall be entitled to recover reasonable and necessary attorneys’
fees, expert witness fees, and costs and expenses of arbitration.

 

ARTICLE VII

MISCELLANEOUS

 

7.1          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 3:30 p.m. (Pacific time) on any
day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States (“Business Day”),
(b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 3:30 p.m. (Pacific
time) on any Business Day, (c) the 2nd Business Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be as set forth on the signature pages attached hereto. All notices and demands to Executive or the Company
may be given to them at the following addresses:

 

    	-10-

     

    

 

	If to Executive to:	Scott A. Bibaud
	 	101 Kennedy Court
	 	Los Gatos, CA 95032
	 	 
	If to Company:	Mears Technologies, Inc.
	 	Chairman of the Board
	 	20 Walnut Street, Suite 8
	 	Wellesley Hills, MA 02481

 

Such parties may designate in writing from time to time such
other place or places that such notices and demands may be given.

 

7.2          Applicable Law; Submission to
Jurisdiction.

 

(a)         This Agreement
is entered into under, and shall be governed for all purposes by, the laws of the State of California, without regard to conflict
of law principals thereof.

 

(b)         With respect
to any claim or dispute related to or arising under this Agreement, the parties hereto hereby consent to the exclusive jurisdiction,
forum, and venue of the state or federal (to the extent federal jurisdiction exists) courts located in Santa Clara County in the
State of California.

 

7.3          No Waiver. No failure by either party hereto
at any time to give notice of any breach by the other party of or to require compliance with, any condition or provision of this
Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time.

 

7.4          Severability.  Any provision in this Agreement
which is prohibited or unenforceable in any jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective
only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

7.5          Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement.

 

7.6          Withholding of Taxes and Other Employee Deductions. Company may withhold from any benefits and payments made pursuant to this Agreement all federal, state, city, and other taxes
as may be required pursuant to any law or governmental regulation or ruling and all other customary employee deductions made with
respect to Company’s employees generally.

 

7.7          Headings. The Section headings have been inserted
for purposes of convenience and shall not be used for interpretive purposes.

 

7.8          Gender and
Plurals. Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number includes
the plural and conversely.

 

    	-11-

     

    

 

7.9          Assignment. This Agreement shall be binding upon and inure to the benefit of Company and any successor of Company, by merger or otherwise.
This Agreement shall also be binding upon and inure to the benefit of Executive and his heirs, representatives and assigns. If
Executive shall die prior to full payment of amounts due pursuant to this Agreement, such amounts shall continue to be payable
pursuant to the terms of this Agreement. Executive shall not have any right to pledge, hypothecate, anticipate, or assign any portion
of this Agreement or any of the rights hereunder, except by will or the laws of descent and distribution.

 

7.10        Term. This
Agreement has a term co-extensive with the term of employment provided in Section 3.1. Termination of this Agreement shall not
affect any right or obligation of any party which is accrued or vested prior to such termination. The provisions of Section 3.5
shall survive the termination of this Agreement and shall be binding upon Executive and his or her legal representatives, successors,
and assigns following such termination.

 

7.11        Entire Agreement.
This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof and contains all the
covenants, promises, representations, warranties, and agreements between the parties with respect to such subject matter. Without
limiting the scope of the preceding sentence, all understandings and agreements preceding the date of execution of this Agreement
and relating to the subject matter hereof are hereby null and void and of no further force and effect, including, without limitation,
all prior employment and severance agreements, if any, by and between Company and Executive. Any modification of this Agreement
will be effective only if it is in writing and signed by the party to be charged.

 

7.12        Expenses.
Company shall reimburse Executive for his reasonable fees and expenses incurred by him incident to the negotiation, preparation
and execution of this Agreement.

  

IN WITNESS WHEREOF,
the parties hereto have entered into this Agreement as of the date first written above.

 

	 	“Company”	 
	 	 	 
	 	Mears Technologies, Inc.	 
	 	a Delaware corporation	 
	 	 	 
	 	By:	/s/ John D.T. Gerber	 
	 	 	John D.T. Gerber	 
	 	 	Chairman of the Board	 
	 	 	 
	 	“Executive”	 
	 	 	 
	 	Scott A. Bibaud	 
	 	 	 
	 	By:	/s/ Scott A. Bibaud	 

 

    	-12-

     

    

 

EXHIBIT A

 

2015 Employee Benefits Overview

 

Health & Dental Care

 

		v	Company
provides health care coverage under the “PPO Value” plan from Harvard Pilgrim Health Plan.

		v	Company
provides dental care coverage under the “Dental Guard Preferred PPO” plan from Guardian Dental at no cost to the employee.

 

401k Plan

 

		v	Company
employees are entitled to contribute to the Nationwide 401k retirement plan after 60 days of employment with the Company.

 

Life/AD&D and Disability Insurance

 

		v	Company
provides Life/Accidental Death & Dismemberment insurance through the Principal Financial Group at 300% of annual salary
at no cost to the employee.

		v	Company
provides Limited Disability insurance at 60% of pre-disability earnings for up to 2 years at no cost to the employee.

 

Paid Time Off (Flex-Time)

 

		v	Company
employees accrue paid leave based on years of service:

		o	First Year of Service 16 days

		o	Third
Year of Service 21 days

		o	Fifth
Year of Service 26 days

 

2015 Company Holidays - Holiday schedule
(12 days) published prior to the start of each calendar year:

 

		1.	JAN 1 – New Year’s Day

		2.	JAN 19 – Martin Luther King Day

		3.	FEB 16 – Presidents Day

		4.	APR 3 – Good Friday

		5.	MAY 25 – Memorial Day

		6.	JUL 3 – Independence Day

		7.	SEP 7 – Labor Day

		8.	OCT 12 – Columbus Day

		9.	NOV 26 – Thanksgiving

		10.	NOV 27 – Day after Thanksgiving

		11.	DEC 24 – Christmas Eve

		12.	DEC 25 – Christmas Day

 

    	A-1

     

    

 

EXHIBIT B

 

RELEASE

 

For and in consideration
of certain benefits to be provided to Scott A. Bibaud (“Executive”) pursuant Sections 5._ of that certain
Employment Agreement (“Agreement”) dated October __, 2015 by and between Mears Technologies, Inc.,
a Delaware corporation (“Company”), and Executive, Executive represents, warrants and agrees as
follows:

 

1.             Executive
hereby releases and forever discharges the Company, and all of its affiliates, subsidiaries, predecessors and successors in interest,
as well as its current and former agents, Executives, owners, partners, officers, directors, members and shareholders (collectively,
the “Released Parties”) from any and all suits, claims, costs, demands, attorney’s fees,
damages, back pay, front pay, interest, bonuses, fringe benefits, special damages, general damages, punitive damages, liabilities,
actions, expenses, accidents, injuries and any other cause of action in law or equity of any kind or nature, that he has or may
have or might in any manner acquire which arises out of, relates to, or is in connection with his employment with the Company,
the expiration or termination of that employment or any other act, occurrence or omission, known or unknown, which occurred or
failed to occur on or before the date this release (“Release”) is executed, including, but not
limited to, all claims under the agreement and any disputes regarding Executive benefits and/or any acts of retaliation or other
act of unlawful discrimination under state or federal law. This waiver specifically includes, by way of example and not limitation,
any claims for age related discrimination. The sole exceptions are that this Release shall not apply to (i) any claims for workers’
compensation benefits, eligibility for continuation health coverage, vested pension benefit or any other claim which cannot be
waived as a matter of law and (ii) Executive’s rights to payments and other benefits under Sections 5._ of the Agreement.

 

2.             Executive acknowledges
that he expressly waives protection of section 1542 of the California Civil Code, which provides:

 

A general release does not extend to
claims which a creditor does not know or suspect to exist in his or her favor at the time of executing a release, which if known
by him or her must have materially affected the settlement with the debtor.

 

3.             By signing this
Release, Executive knowingly and voluntarily waives claims under state and federal discrimination laws and in particular federal
age discrimination claims arising under 29 U.S.C. §621 et. seq. The parties therefore acknowledge that:

 

a)           Executive is
waiving all rights to claims based on conduct (including but not limited to failure to take actions) preceding the effective date
of this Agreement including but not limited to claims asserting age discrimination under federal law;

 

b)           They have drafted
this Agreement in a manner calculated to be understood by Executive, and, in fact, he understands the terms of this Agreement;
and

 

    	B-1

     

    

 

 

c)           Executive agrees
that his waiver of rights or claims of state or federal discrimination is made in exchange for consideration in addition to anything
of value to which he is already entitled.

 

4.             Executive affirms
and acknowledges that he has read this Release and fully understands and appreciates its terms and effect. Executive has been advised
to consult with an attorney prior to executing this Agreement, and he has, in fact, either consulted with an attorney of his choosing
whom he believes to be competent to provide advice regarding the desirability and consequences of waiving his rights or claims
relating to his employment or independently determine that doing so is not in his personal self-interest. Executive has been given
a reasonable period of time not less than twenty-two (22) days to consider this Release, before signing below and the amount of
time has been sufficient for him to consult any attorneys he chooses to consult on the settlement issue as well as to make any
decisions which he desires to make regarding the advisability of this Release and the costs and benefits of entering into this
Release. Executive declares that he knowingly and voluntarily enters into this Release. Executive has also been informed that he
may revoke this Release within eight days after signing it by notifying the Company of his desire to do so by either hand delivered
notice of revocation, fax or email.

 

5.             Executive agrees
that he will now and in the future execute any and all documents, releases, dismissal notices, and any other form of written documentation
necessary to fulfill the terms and obligations of this Release.

 

	Dated:	 	 	 	 
	 	 	 	Scott A. Bibaud	 

 

    	B-2

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