Document:

Exhibit 10.1

 

Execution Version

 

SECURED
CONVERTIBLE PROMISSORY NOTE

 

 

	Date of Note:	March 29, 2019
	 	 
	Principal Amount of Note:	$3,166,666.64

 

For
value received, Aevi Genomic Medicine, Inc., a Delaware corporation (the “Company”),
promises to pay to the undersigned holder or such party’s assigns (the “Holder”) the principal
amount set forth above. The outstanding principal amount of this secured convertible promissory note (the “Note”)
shall bear no interest and the principal amount of this Note will not accrete. The principal amount shall be due and payable to
the Holder on September 30, 2019 (the “Maturity Date”).

 

1.            Basic
Terms.

 

(a)          Security
Agreement and Guaranty. This Note is referred to in and is executed and delivered in connection with (i) that certain Security
Agreement dated as of March 29, 2019 and executed by the Company and the other Grantors therein in favor of the Holder (as the
same may be from time to time amended, modified or supplemented or restated, the “Security Agreement”)
and (ii) that certain Subsidiary Guaranty Agreement dated as of March 29, 2019 and executed by the Company and the Subsidiary Guarantors
therein (as the same may be from time to time amended, modified or supplemented or restated, the “Guaranty”).
Additional rights of the Holder are set forth in the Security Agreement and the Guaranty.

 

(b)          Payments.
All payments of principal shall be in lawful money of the United States of America no later than 12:00 PM on the date on which
such payment is due by wire transfer of immediately available funds to the Holder’s account at a bank specified by the Holder
in writing to the Company from time to time. All payments made hereunder shall be applied first to the payment of any fees or charges
outstanding hereunder and second to the payment of the principal amount outstanding under the Note. If at any time any payment
made by the Company under this Note is rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy, or
reorganization of the Company or otherwise, the Company’s obligation to make such payment shall be reinstated as though such
payment had not been made.

 

(c)          Voluntary
Prepayment.

 

(i)          The
Company may prepay this Note in whole or in part at any time or from time to time prior to the Maturity Date without penalty or
premium by paying the principal amount to be prepaid (such prepayment, a “Voluntary Prepayment”) on the
date set for prepayment (the “Prepayment Date”). The Holder may elect to convert the principal amount
of the Note to be prepaid on the Prepayment Date (the “Prepayment Amount”), or a portion thereof, pursuant
to Section 2. The Company shall give the Holder written notice of the Voluntary Prepayment, including the Prepayment Date set for
such Voluntary Prepayment and the Prepayment Amount, not less than 10 days prior to the applicable Prepayment Date. If the Company
elects to prepay this Note, the Prepayment Amount shall be due and payable in cash or, if the Holder has elected to convert such
Prepayment Amount, or portion thereof, pursuant to Section 2, in shares of Common Stock (with any remaining balance of such Prepayment
Amount in cash, in the case of an election of partial conversion), on the Prepayment Date.

 

(ii)         Upon
any partial Voluntary Prepayment of this Note, a new Note containing the same date and provisions of this Note shall, at the request
of the Holder, be issued by the Company to the Holder for the principal balance of this Note and interest which shall not have
been converted or paid.

 

     

     

    

 

2.            Conversion
and Repayment.

 

(a)          Repayment.
Unless this Note has been converted in accordance with the terms of this Section 2 prior to the Maturity Date or the Holder has
elected by notice to the Company prior to the Maturity Date to convert the Note on the Maturity Date pursuant to this Section 2,
the Conversion Amount shall become fully due and payable in cash on the Maturity Date.

 

(b)          Maturity
Date Conversion. In the event that this Note remains outstanding on the Maturity Date, then the outstanding principal balance
of this Note shall upon the election of the Holder given prior to the Maturity Date with respect to all or any portion thereof,
convert as of the Maturity Date into shares of the Company’s common stock, par value $0.0001 per share (“Common
Stock”), at a conversion price equal to (i) the aggregate amount of outstanding principal on this Note (or portion
thereof specified by the Holder for conversion) divided by (ii) the Last Reported Sale Price, with any remaining balance of the
principal amount of the Note not so specified for conversion by the Holder to be due and payable in cash on the Maturity Date;
provided that if such conversion would result in the Holder and/or its Affiliates owning an aggregate amount greater than
47.5% of the Company’s then issued and outstanding Common Stock (including the shares of Common Stock issuable upon such
conversion), then the Holder shall receive shares of Common Stock such that the Holder and/or its Affiliates would own in the aggregate
shares of Common Stock not in excess of 47.5% of the then issued and outstanding shares of Common Stock, and the balance of the
unpaid principal amount of the Note in cash.

 

(c)          Change
of Control. If the Company consummates a Change of Control (as defined below) while this Note remains outstanding, the Company
shall repay the Holder in cash in an amount equal to the outstanding principal amount of this Note; provided that upon the
election of the Holder given prior to the date of consummation of the Change of Control with respect to all or any portion of the
outstanding principal amount of this Note, the Company shall convert the outstanding principal balance of this Note into shares
of Common Stock, at a conversion price equal to (i) the aggregate amount of outstanding principal on this Note (or portion thereof
specified by the Holder for conversion) divided by (ii) the Last Reported Sale Price as of the date that is one trading day prior
to the date of announcement by the Company of the Change of Control, with any remaining balance of the principal amount of the
Note not so specified for conversion by the Holder to be due and payable in cash on the date of consummation of the Change of Control;
provided further that if such conversion would result in the Holder and/or its Affiliates owning an aggregate amount greater
than 47.5% of the Company’s then issued and outstanding Common Stock (including the shares of Common Stock issuable upon
such conversion), then the Holder shall receive shares of Common Stock such that the Holder and/or its Affiliates would own in
the aggregate shares of Common Stock not in excess of 47.5% of the then issued and outstanding shares of Common Stock, and the
balance of the unpaid principal amount of the Note in cash. The Company shall give the Holder notice of a Change of Control not
less than 10 days prior to the anticipated date of consummation of the Change of Control. Any repayment made in cash pursuant to
this paragraph in connection with a Change of Control shall be subject to any required tax withholdings, and may be made by the
Company (or any party to such Change of Control or its agent) following the Change of Control in connection with payment procedures
established in connection with such Change of Control.

 

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(d)          Conversion
upon Voluntary Prepayment. In connection with a Voluntary Prepayment of this Note, the Prepayment Amount shall upon the election
of the Holder given prior to the Prepayment Date with respect to all or any portion thereof, convert as of the Prepayment Date
into shares of the Company’s Common Stock, at a conversion price equal to (i) the Prepayment Amount (or portion thereof specified
by the Holder for conversion) divided by (ii) the Last Reported Sale Price, with any remaining balance of the Prepayment Amount
not so specified for conversion by the Holder to be due and payable in cash on the Prepayment Date; provided that if such
conversion would result in the Holder and/or its Affiliates owning an aggregate amount greater than 47.5% of the Company’s
then issued and outstanding Common Stock (including the shares of Common Stock issuable upon such conversion), then the Holder
shall receive shares of Common Stock such that the Holder and/or its Affiliates would own in the aggregate shares of Common Stock
not in excess of 47.5% of the then issued and outstanding shares of Common Stock, and the balance of the unpaid Prepayment Amount
in cash.

 

(e)          Procedure
for Conversion. In connection with any conversion of this Note into Common Stock, the Holder shall (i) deliver a notice of
conversion stating the principal amount of this Note to be converted and the name or names (with addresses) in which the Holder
wishes the shares of Common Stock to be issued upon conversion (which, for the avoidance of doubt, may include any Affiliate of
the Holder, including the CHOP Foundation), and (ii) surrender this Note to the Company and deliver to the Company any documentation
reasonably required by the Company.  Upon the conversion of this Note into Common Stock pursuant to the terms hereof, in lieu
of any fractional shares to which the Holder would otherwise be entitled, the Company shall pay the Holder cash equal to such fraction
multiplied by the price at which this Note converts.

 

(f)          Registration
Rights. In connection with any conversion of all or part of this Note into Common Stock, the Company and the Holder and/or
its Affiliates shall enter into a registration rights agreement on substantially the same terms as that certain registration rights
agreement, by and among the Company, the Holder and certain other purchasers, dated August 9, 2017, in the form filed as Exhibit
10.2 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 11, 2017.

 

3.            Representations
and Warranties of the Company.

 

The
Company hereby represents and warrants to the Holder as of the date this Note was issued as follows:

 

(a)          Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. Each Note Party has the requisite corporate or other organizational power to own and operate its
properties and assets and to carry on its business as now conducted and as proposed to be conducted. Each Note Party is duly qualified
and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its
activities and of its properties (both owned and leased) makes such qualification necessary.

 

(b)          Corporate
Power. The Company has all requisite corporate power to issue this Note and to carry out and perform its obligations under
this Note. Each Note Party has all requisite corporate or other organizational power to enter into each Transactional Document
to which such Note Party is a party and to carry out and perform its obligations under such Transactional Document. The Company’s
Board of Directors (the “Board”) has approved the issuance of this Note and each Note Party’s board
of directors or managers has approved the execution of the other Transactional Documents, in each case, based upon a reasonable
belief that the issuance of this Note and entry into the Transactional Documents is appropriate for the Note Parties after reasonable
inquiry concerning the Note Parties’ financing objectives and financial situation.

 

    	 	3	 

     

    

 

(c)          Authorization.
All corporate action on the part of each Note Party, the Board, each Note Party’s board of directors or board of managers
and the Company’s stockholders necessary for the issuance and delivery of this Note and the execution and delivery of the
Transactional Documents has been taken. This Note and each other Transactional Document to which any Note Party is a party constitutes
a valid and binding obligation of the Company or such Note Party (as the case may be) enforceable in accordance with its terms,
subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights to
indemnity, subject to federal and state securities laws. Any securities issued upon conversion of this Note (the “Conversion
Securities”), when issued in compliance with the provisions of this Note, will be validly issued, fully paid, nonassessable,
free of any liens or encumbrances and issued in compliance with all applicable federal and securities laws. The Company has reserved
a sufficient number of shares of its duly authorized, but unissued, Common Stock as is necessary to provide for the issuance of
the shares of Common Stock to satisfy its conversion obligation upon any conversion of this Note pursuant to Section 2.

 

(d)          Consents.
All consents, approvals, orders or authorizations of, or registrations, qualifications, designations, declarations or filings with,
any governmental authority or securities exchange required on the part of the Company in connection with issuance of this Note
and the execution of the other Transactional Documents by the Note Parties has been obtained.

 

(e)          Compliance
with Laws. The execution, delivery and performance of this Note and the other Transactional Documents will not result in any
violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality
or agency thereof.

 

(f)          Compliance
with Other Instruments. The execution, delivery and performance of this Note and the other Transactional Documents will not
result in any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice, either
a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any
lien, charge or encumbrance upon any assets of the Company or its Subsidiaries or the suspension, revocation, impairment, forfeiture,
or nonrenewal of any material permit, license, authorization or approval applicable to the Company or its Subsidiaries, their respective
business or operations or any of their assets or properties.

 

(g)          No
Litigation. No action, suit, litigation, investigation, or proceeding of, or before, any arbitrator or governmental authority
is pending or threatened by or against any Note Party or any of its property or assets (a) with respect to the Note or any of the
other Transactional Documents, or any of the transactions contemplated hereby or thereby or (b) that could be expected to have
a material adverse effect on any Note Party or its business, or materially adversely affect the ability of the Company and its
Subsidiaries to perform their respective obligations under the Note or any of the other Transactional Documents.

 

    	 	4	 

     

    

 

4.            Events
of Default.

 

(a)          If
there shall be any Event of Default (as defined below) hereunder, at the option of the Holder and upon written notice to the Company
(which election and notice shall not be required in the case of an Event of Default under subsection (iv) or (v) below), the Holder
shall have the right to (x) declare that this Note shall accelerate and all principal shall become due and payable, and/or (y)
exercise any or all of its rights, powers or remedies under the Security Agreement or applicable law. If an Event of Default specified
under subsection (iv) or (v) below with respect to the Company or any of its Subsidiaries occurs and is continuing, 100% of the
principal of this Note shall become and shall automatically be immediately due and payable. The occurrence of any one or more of
the following shall constitute an “Event of Default”:

 

(i)          The
Company fails to pay timely any of the principal amount due under this Note on the date the same becomes due and payable;

 

(ii)         The
Company or any of its Subsidiaries shall materially default in its performance of any covenant or obligation under this Note or
any of the other Transactional Documents;

 

(iii)        Any
representation or warranty made or deemed made by any Note Party to the Holder herein or in any Transactional Document is incorrect
in any material respect on the date as of which such representation or warranty was made or deemed made;

 

(iv)        The
Company or any of its Subsidiaries files any petition or action for relief under any bankruptcy, reorganization, insolvency or
moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment
for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing;

 

(v)         An
involuntary petition is filed against the Company or any of its Subsidiaries (unless such petition is dismissed or discharged within
60 days under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee or assignee for the benefit
of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Company or
any of its Subsidiaries);

 

(vi)        The
Company or any of its Subsidiaries fails to pay when due any of its Debt under which there may be outstanding, or by which there
may be secured or evidenced, any indebtedness in excess of $100,000 (other than Debt arising under this Note), or any interest
or premium thereon, when due (whether by scheduled maturity, acceleration, demand, or otherwise) and such failure continues after
the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or

 

(vii)       One
or more judgments or decrees in an aggregate amount exceeding $100,000 (except to the extent covered by insurance or third party
indemnification) shall be entered against the Company or any of its Subsidiaries and all of such judgments or decrees shall not
have been vacated, discharged, or stayed or bonded pending appeal within 30 days from the entry thereof.

 

(b)          In
the event of any Event of Default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred
by the Holder in enforcing and collecting this Note.

 

    	 	5	 

     

    

 

5.            Miscellaneous
Provisions.

 

(a)          Waivers.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

 

(b)          Further
Assurances. The Company agrees and covenants that at any time and from time to time the Company will promptly execute and deliver
to the Holder such further instruments and documents and take such further action as may be necessary or advisable to carry out
the full intent and purpose of this Note and the Security Agreement and to comply with state or federal securities laws or other
regulatory approvals.

 

(c)          Transfers
of Note. This Note and all rights hereunder may be transferred without the consent of the Company if an Event of Default has
occurred and is continuing or if the transfer is to an Affiliate of the Holder and, in each case, without charge to the Holder.
This Note may be transferred only upon its surrender to the Company for registration of transfer, duly endorsed, or accompanied
by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon, this Note shall be reissued to,
and registered in the name of, the transferee, or a new Note for like principal amount shall be issued to, and registered in the
name of, the transferee. Principal shall be paid solely to the registered holder of this Note. Such payment shall constitute full
discharge of the Company’s obligation to pay such principal.

 

(d)          Security.
The full amount of this Note is secured by the Collateral (as defined in the Security Agreement) identified and described as security
therefor in the Security Agreement executed by and delivered by the Company to the Holder. The Company shall not, directly or indirectly,
create, permit or suffer to exist, and shall defend the Collateral against and take such other action as is necessary to remove,
any Lien (as defined in the Security Agreement) on or in the Collateral, or any portion thereof, except as permitted pursuant to
the Security Agreement.

 

(e)          
Amendment and Waiver. No term of this Note may be waived, modified, or amended except by an instrument in writing signed by
both of the parties hereto. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific
purpose given.

 

(f)          Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of New York.

 

(g)          Binding
Agreement. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties. Nothing in this Note, expressed or implied, is intended to confer upon any third party any rights,
remedies, obligations or liabilities under or by reason of this Note, except as expressly provided in this Note.

 

(h)          Counterparts;
Manner of Delivery. This Note may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other
applicable law) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered
and be valid and effective for all purposes.

 

(i)          Titles
and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing
or interpreting this Note.

 

    	 	6	 

     

    

 

(j)          Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery
to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours
of the recipient, if not, then on the next business day, (iii) five days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (iv) one day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications to a party shall be sent to the party’s
address set forth on the signature page hereto or at such other address(es) as such party may designate by 10 days’ advance
written notice to the other party hereto.

 

All
communications to the Holder shall be sent to:

 

The
Children’s Hospital of Philadelphia

Attention:
Jeffrey Kahn, Executive Vice President and General Counsel

3401
Civic Center Boulevard

Philadelphia,
PA 19104

 

Together
with copies to (which shall not constitute notice)

 

Cooley LLP

1114 Avenue of the Americas

New York, NY 10036-7798

Attention: Joshua A. Kaufman

Telephone: (212) 479-6495

Email: josh.kaufman@cooley.com

 

and

 

Cooley LLP

101 California Street, 5th Floor

San Francisco, CA 94111-5800

Attention: Jason Savich

Telephone: (415) 693-2053

Email: jsavich@cooley.com

 

(k)         Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to the Holder, upon any
breach or default of the Company under this Note shall impair any such right, power or remedy, nor shall it be construed to be
a waiver of any such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character by the Holder of any breach
or default under this Note, or any waiver by the Holder of any provisions or conditions of this Note, must be in writing and shall
be effective only to the extent specifically set forth in writing and that all remedies, either under this Note, or by law or otherwise
afforded to the Holder, shall be cumulative and not alternative.

 

(l)          Definitions.
The following terms used in this Note shall have the following meanings:

 

“Affiliate”
means, with respect to any Person, any other Person, which, directly or indirectly, controls, is controlled by or is under common
control with such Person. A Person shall be regarded as in control of another Person if it owns or controls at least fifty percent
(50%) of the equity securities of the subject Person entitled to vote in the election of directors (or, in the case of a Person
that is not a corporation, for the election of the corresponding managing authority), provided, however, that the term “Affiliate”
shall not include subsidiaries or other Persons in which a Person or its Affiliates owns a majority of the ordinary voting power
necessary to elect a majority of the board of directors or other governing board, but is restricted from electing such majority
by contract or otherwise, until such time as such restrictions are no longer in effect.

 

    	 	7	 

     

    

 

“Change of
Control” means, with respect to the Company, the occurrence of any of the following:

 

(i)          any
 “person” or “group” (as such terms are defined below): (a) is or becomes the “beneficial owner”
(as defined below), directly or indirectly, of shares of capital stock or other interests (including partnership interests) of
the Company then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election
of the directors, managers or similar supervisory positions (“Voting Stock”) of the Company representing
fifty percent (50%) or more of the total voting power of all outstanding classes of Voting Stock of the Company; or (b) has
the power, directly or indirectly, to elect at least one-half of the members of the Company’s board of directors, or similar
governing body (“Board of Directors”); or

 

(ii)         the
Company enters into a merger, consolidation or similar transaction with another person (whether or not the Company is the surviving
entity) and as a result of such merger, consolidation or similar transaction (a) the members of the Board of Directors of
the Company immediately prior to such transaction constitute less than a majority of the members of the Board of Directors of the
Company or such surviving person immediately following such transaction; or (b) the persons that beneficially owned, directly
or indirectly, the shares of Voting Stock of the Company immediately prior to such transaction cease to beneficially own, directly
or indirectly, shares of Voting Stock of the Company representing at least a majority of the total voting power of all outstanding
classes of Voting Stock of the surviving person; or

 

(iii)        the
Company sells, licenses, assigns or otherwise transfers to any person, in one or more related transactions, properties or assets
representing all or substantially all of the Company’s consolidated total assets; or

 

(iv)        the
holders of capital stock of the Company approve a plan or proposal for the liquidation or dissolution of the Company.

 

For the purpose of this
definition of “Change of Control,” (a) “person” and “group” have the meanings given such
terms under Section 13(d) and 14(d) of the Securities Exchange Act of 1934 and the term “group” includes any group
acting for the purpose of acquiring, holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under the said Act;
(b) a “beneficial owner” will be determined in accordance with Rule 13d-3 under the aforesaid Act; and (c) the
terms “beneficially owned” and “beneficially own” will have meanings correlative to that of “beneficial
owner.”

 

Notwithstanding the
foregoing, in no event shall Change of Control result from CHOP and/or any of its Affiliates (including the CHOP Foundation) acquiring
or having the right to acquire additional equity of or voting power over in the Company or otherwise increasing its beneficial
ownership of the Company, whether alone as part of a group, or acquiring control through Board membership.

 

“CHOP”
means The Children’s Hospital of Philadelphia, a non-profit entity organized and existing under the laws of Pennsylvania.

 

“CHOP
Foundation” means The Children’s Hospital of Philadelphia Foundation, a non-profit entity organized and existing
under the laws of Pennsylvania.

 

    	 	8	 

     

    

 

“Covenant
Letter Agreement” means that certain letter agreement regarding certain covenants made in the Letter Agreement, entered
into between CHOP and the Company on the date hereof.

 

“Debt”
of the Company, means all (a) indebtedness for borrowed money; (b) obligations for the deferred purchase price of property or services,
except trade payables arising in the ordinary course of business; (c) obligations evidenced by notes, bonds, debentures, or other
similar instruments; (d) obligations as lessee under capital leases; (e) obligations in respect of any interest rate swaps, currency
exchange agreements, commodity swaps, caps, collar agreements, or similar arrangements entered into by the Company providing for
protection against fluctuations in interest rates, currency exchange rates, or commodity prices, or the exchange of nominal interest
obligations, either generally or under specific contingencies; (f) obligations under acceptance facilities and letters of credit;
(g) guaranties, endorsements (other than for collection or deposit in the ordinary course of business), and other contingent obligations
to purchase, to provide funds for payment, to supply funds to invest in any Person, or otherwise to assure a creditor against loss,
in each case, in respect of indebtedness set out in clauses (a) through (f) of a Person other than the Company; and (h) indebtedness
set out in clauses (a) through (g) of any Person other than Company secured by any lien on any asset of the Company, whether or
not such indebtedness has been assumed by the Company.

 

“Governmental
Authority” means the government of the United States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central Bank).

 

“Last
Reported Sale Price” on any date means the closing price per share (or if no closing sale price is reported, the
average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices)
on that date as reported in composite transactions for the Nasdaq Stock Market or such other principal U.S. national exchange on
which the Common Stock is traded. If the Common Stock is not listed for trading on a U.S.
national exchange on the relevant date, the Last Reported Sale Price shall be the last quoted bid price for the Common Stock in
the over-the-counter market on the relevant date as reported by OTC Markets Group Inc. or a similar organization and
if the Common Stock is not so quoted, the Last Reported Sale Price shall be the average of the mid-point of the last
bid and ask prices for the Common Stock on the relevant date from each of at least one nationally recognized independent investment
banking firms selected by the Company, with the consent of the Holder, for this purpose.

 

“Letter
Agreement” means the Agreement, dated March 25, 2019, by and between CHOP and the Company.

 

“License
Agreement Amendments” means, collectively, the amendments to (i) that certain License Agreement, dated November 12,
2014, by and between Medgenics Medical Israel Ltd. and CHOP, as amended to date, (ii) that certain License Agreement, dated September
9, 2015, by and between neuroFix Therapeutics, LLC and CHOP, as amended to date, (iii) that certain License Agreement, dated December
18, 2017, by and between the Company and CHOP, as amended to date, (iv) that certain License Agreement, dated October 3, 2016,
by and between the Company and CHOP, as amended to date, and (v) that certain License Agreement, dated October 20, 2016, by and
between Medgenics, Inc. and CHOP, as amended to date, in each case to be entered into between CHOP and the respective parties thereto
on the date hereof.

 

“Note
Party” means the Company and each Subsidiary Guarantor.

 

    	 	9	 

     

    

 

“Person”
shall mean any natural person, corporation, business trust, joint venture, trust, association, company (whether limited in liability
or otherwise), partnership (whether limited in liability or otherwise) or Governmental Authority, or any other entity, in any case,
whether acting in a personal, fiduciary or other capacity.         

 

“Sponsored
Research Agreement” means that certain Sponsored Research Agreement, dated November 12, 2014, by and between Medgenics
Medical Israel Ltd. and CHOP, as amended to date.

 

“Sponsored
Research Agreement Amendment” means that certain amendment to the Sponsored Research Agreement, to be entered into
between Medgenics Medical Israel Ltd. and CHOP on the date hereof.

 

“Subsidiary”
has the meaning set forth in the Security Agreement.

 

“Subsidiary
Guarantors” means each Subsidiary that becomes party to the Guaranty as a Subsidiary Guarantor, and the permitted
successors and assigns of each such Person (except to the extent such Subsidiary or successor or assign thereof is relieved from
its obligations under the Guaranty and Security Agreement pursuant to the provisions of this Agreement).

 

“Transactional
Documents” means this Note, the Covenant Letter Agreement, the License Agreement Amendments, the Letter Agreement,
the Security Documents (as defined in the Security Agreement) and the Sponsored Research Agreement Amendment.

 

[Signature
pages follow]

 

    	 	10	 

     

    

 

The
parties have executed this Secured Convertible Promissory Note as of the date
first noted above.

 

	 	COMPANY:
	 	 
	 	Aevi Genomic Medicine, Inc.
	 	 
	 	By:	 
	 	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	E-mail:	 
	 	 
	 	Address:	 

 

SIGNATURE PAGE
TO

SECURED CONVERTIBLE
PROMISSORY NOTE

 

     

     

    

 

The
parties have executed this Secured Convertible Promissory Note as of the date
first noted above.

 

	 	HOLDER:
	 	 
	Name of Holder:  	The Children’s Hospital of Philadelphia
	 	 
	 	By:	 
	 	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	E-mail:	 
	 	 
	 	Address:	 
	 	 	 
	 	 	 

 

SIGNATURE PAGE
TO

SECURED CONVERTIBLE
PROMISSORY NOTEExhibit 10.2

 

Execution Version

SECURITY AGREEMENT 

 

This SECURITY AGREEMENT (this “Agreement”)
is dated as of March 29, 2019 and entered into by and Aevi Genomic Medicine, Inc., a Delaware corporation (“Aevi”),
each of the undersigned direct and indirect Subsidiaries of Aevi (each of such undersigned Subsidiaries being a “Subsidiary
Grantor” and, collectively, the “Subsidiary Grantors”) and each Additional Grantor that may become
a party hereto after the date hereof in accordance with Section 21 hereof (each of Aevi and each Additional Grantor being a “Grantor”
and collectively the “Grantors”) and The Children’s Hospital of Philadelphia (the “Secured Party”).

 

PRELIMINARY STATEMENTS

 

A.           Pursuant
to the Agreement, dated March 25, 2019, by and between the Secured Party and Aevi (the “Letter Agreement”),
the Secured Party and Aevi have agreed to, among other things, defer certain payments due under the SRA (as defined therein) in
exchange for certain consideration.

 

B.           The
Secured Convertible Promissory Note, dated as of March 29, 2019 (as it may hereafter be amended, restated, extended, supplemented
or otherwise modified from time to time, the “Note”; the terms defined therein and not otherwise defined in
Section 31 or elsewhere herein being used herein as therein defined), issued by the Aevi to the Secured Party, provides that the
full amount of the Note and Aevi’s performance of its obligations thereunder shall be secured by a first priority security
interest in the Collateral specified herein.

 

C.           Subsidiary
Grantors have executed and delivered the Subsidiary Guaranty Agreement, in each case in favor of the Secured Party, pursuant to
which each Subsidiary Grantor has guaranteed the prompt payment and performance when due of all obligations of Aevi under the Note
and the other obligations described therein.

 

D.           As
a condition to the Secured Party and Aevi entering into the Note and the transactions contemplated thereby and by the Letter Agreement,
the Grantors listed on the signature pages hereof shall have granted the security interests and undertaken the obligations contemplated
by this Agreement.

 

NOW, THEREFORE, in consideration of the
agreements set forth herein and in the other Transactional Documents and in order to induce the Secured Party to enter into the
Transactional Documents and to provide for the agreements set forth in the Letter Agreement, each Grantor hereby agrees with the
Secured Party as follows:

 

SECTION 1.         Grant
of Security.

 

Each Grantor hereby assigns to the Secured Party,
and hereby grants to the Secured Party a security interest in, all of such Grantor’s right, title and interest in and to
all of the personal property of such Grantor, in each case whether now or hereafter existing, whether tangible or intangible, whether
now owned or hereafter acquired, wherever the same may be located and whether or not subject to the Uniform Commercial Code as
it exists on the date of this Agreement, or as it may hereafter be amended in the State of New York (the “UCC”),
including the following (the “Collateral”):

 

     

     

    

 

(a)          all
Accounts;

 

(b)          all
Chattel Paper;

 

(c)          all
Money and all Deposit Accounts, together with all amounts on deposit from time to time in such Deposit Accounts;

 

(d)          all
Documents;

 

(e)          all
General Intangibles, including all intellectual property, Payment Intangibles and Software;

 

(f)           all
Goods, including Inventory, Equipment and Fixtures;

 

(g)          all
Instruments;

 

(h)          all
Investment Property;

 

(i)           all
Letter-of-Credit Rights and other Supporting Obligations;

 

(j)           all
Records;

 

(k)          all
Commercial Tort Claims, including those set forth on Schedule 1 annexed hereto; and

 

(l)           all
Proceeds and Accessions with respect to any of the foregoing Collateral.

 

Each category of Collateral set forth above shall
have the meaning set forth in the UCC (to the extent such term is defined in the UCC), it being the intention of each Grantor that
the description of the Collateral set forth above be construed to include the broadest possible range of assets.

 

Notwithstanding the foregoing or anything herein
to the contrary, the Collateral shall not include, and no Grantor shall be deemed to have granted a security interest in (collectively,
the “Excluded Collateral”): (A) any lease, license, contract, property rights or agreement to which any Grantor
is a party or any of its rights or interests thereunder (including any goods (other than inventory) subject thereto), if and for
so long as the grant of such security interest shall constitute or result in (i) the abandonment, invalidation or unenforceability
of any right, title or interest of any Grantor therein or (ii) a breach or termination pursuant to the terms of, or a
default under, any such lease, license, contract property rights or agreement (other than to the extent that any such term would
be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions)
of any relevant jurisdiction or any other applicable Legal Requirement or principles of equity), provided, however,
that such security interest shall attach immediately and automatically at such time as the condition causing such abandonment,
invalidation or unenforceability shall be remedied and, to the extent severable, shall attach immediately to any portion of such
lease, license, contract, property rights or agreement that does not result in any of the consequences specified in (i) or (ii)
including any Proceeds of such lease, license, contract, property rights or agreement; (B) any Intent-to-Use Application to the
extent that, and solely during the period in which, the grant of a security interest therein would impair the registrability, validity
or enforcement of such application under applicable federal law; provided that at the time any such Intent-to-Use Application
matures into an Actual Use Application by the applicable Grantor’s receipt of written notification from the IP Filing Office
of its acceptance of either an “Amendment to Allege Use” pursuant to Section 1(c) of the Lanham Act, 15 U.S.C. §
1051, or “Statement Of Use” pursuant to Section 1(d) of the Lanham Act, 15 U.S.C. § 1051, the Collateral shall
include, and such Grantor shall be deemed to have granted a security interest in, such Actual Use Application; (C) Excluded Accounts;
and (D) any motor vehicles, airplanes, vessels or other assets subject to certificates of title.

 

    	 	2	 

     

    

 

SECTION 2.         Security
for Obligations.

 

This Agreement secures, and the Collateral is
collateral security for, the prompt payment or performance in full when due, whether at stated maturity, declaration, acceleration,
demand or otherwise, of all Secured Obligations of each Grantor.

 

SECTION 3.         Grantors
Remain Liable.

 

Anything contained herein to the contrary notwithstanding,
(a) each Grantor shall remain liable under any contracts and agreements included in the Collateral, to the extent set forth therein,
to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the
exercise by the Secured Party of any of its rights hereunder shall not release any Grantor from any of its duties or obligations
under the contracts and agreements included in the Collateral, and (c) the Secured Party shall not have any obligation or liability
under any contracts, licenses, and agreements included in the Collateral by reason of this Agreement, nor shall the Secured Party
be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce
any claim for payment assigned hereunder.

 

SECTION 4.         Representations
and Warranties.

 

Each Grantor represents and warrants as follows:

 

(a)          Ownership
of Collateral. Except for Permitted Encumbrances, such Grantor owns its interests in the Collateral free and clear of any Lien
and no effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file
in any filing or recording office, including any IP Filing Office.

 

(b)          Perfection.
The security interests in the Collateral granted to the Secured Party constitute valid security interests in the Collateral, securing
the payment and performance of each Grantor’s Secured Obligations. Upon (i) in the case of security interests that may
be perfected under the UCC by the filing of a financing statement, the filing of UCC financing statements naming each Grantor as
 “debtor”, naming the Secured Party as “secured party” and describing the Collateral in the filing offices
with respect to such Grantor set forth on Schedule 2 annexed hereto (or as specified by Aevi to the Secured Party after
the date hereof as required by Section 21), (ii) in the case of the Securities Collateral consisting of certificated Securities
or evidenced by Instruments, in addition to the filing of such UCC financing statements, delivery of the certificates representing
such certificated Securities and delivery of such Instruments to the Secured Party (and in the case of Securities Collateral issued
by a foreign issuer, any actions required under foreign law to perfect a security interest in such Securities Collateral), in each
case duly endorsed or accompanied by duly executed instruments of assignment or transfer in blank, (iii) in the case of any
Intellectual Property Collateral, in addition to the filing of such UCC financing statements, the recordation of a Grant with the
applicable IP Filing Office and (iv) in the case of any Deposit Account and any Investment Property constituting a Security
Entitlement, Securities Account, Commodity Contract or Commodity Account, the execution and delivery to the Secured Party of an
agreement providing for Control by the Secured Party thereof, the security interests in the Collateral granted to the Secured Party
will constitute perfected security interests therein prior to all other Liens (other than Permitted Encumbrances), and all filings
and other actions necessary or desirable to perfect such security interests have been duly made or taken or will be duly made or
taken as of the date of the Post-Closing Certificate.

 

    	 	3	 

     

    

 

(c)          Office
Locations; Type and Jurisdiction of Organization; Locations of Equipment and Inventory. Such Grantor’s exact legal name
as it appears in official filings in the jurisdiction of its organization, its type of organization (i.e. corporation, limited
partnership, etc.), jurisdiction of organization, its principal place of business, its chief executive office, and the office where
such Grantor keeps its Records regarding the Accounts, Intellectual Property Collateral and originals of Chattel Paper, and its
organization number provided by the applicable Governmental Authority of the jurisdiction of organization are set forth on Schedule
3 annexed hereto. All of the Equipment and Inventory of such Grantor is located at the places set forth on Schedule 4
annexed hereto, except for (i) Inventory which, in the ordinary course of business, is in transit either (x) from a supplier to
a Grantor, or (y) between the locations set forth on Schedule 4 annexed hereto, or (ii) Equipment consisting of mobile phones,
laptops and other mobile electronic equipment within the possession of directors, officers, employees, consultants and other agents
of such Grantor.

 

(d)          Names.
No Grantor (or any predecessor by merger or otherwise of such Grantor) has, within the five year period preceding the date hereof,
or, in the case of an Additional Grantor, the date of the applicable Counterpart, had a different name from the name of such Grantor
listed on the signature pages hereof, except the names set forth on Schedule 5 annexed hereto (or as specified by Aevi to
the Secured Party after the date hereof as required by Section 21).

 

(e)          Delivery
of Certain Collateral. All certificates representing Securities Collateral or Instruments (excluding checks) evidencing, comprising
or representing the Collateral have been delivered to the Secured Party or will be delivered to the Secured Party as of the date
of the Post-Closing Certificate duly endorsed or accompanied by duly executed instruments of transfer or assignment in blank.

 

(f)          Securities
Collateral. All of the Pledged Equity of such Grantor set forth on Schedule 6 annexed hereto has been duly authorized
and validly issued and is fully paid and non-assessable; all of the Pledged Debt set forth on Schedule 7 annexed hereto
has been (or, in the case of Pledged Debt issued by Persons that are not Affiliates of such Grantor, to the knowledge of such Grantor
has been) duly authorized, authenticated, issued and delivered and are the legal, valid and binding obligation of the issuers thereof
and is not in default; there are no outstanding warrants, options or other rights to purchase, or other agreements outstanding
with respect to, or property that is now or hereafter convertible into, or that requires the issuance or sale of, any Pledged Subsidiary
Equity; Schedule 6 annexed hereto sets forth all of the Equity Interests and the Pledged Equity owned by each Grantor, and,
in the case of Pledged Subsidiary Equity, the percentage ownership in each issuer thereof; and Schedule 7 annexed hereto
sets forth all of the Pledged Debt owned by such Grantor.

 

    	 	4	 

     

    

 

(g)          Intellectual
Property Collateral. A true and complete list of all Trademark Registrations, applications for any Trademark and Trademark
Licenses owned, held (whether pursuant to a license or otherwise) or used by such Grantor, in whole or in part, is set forth on
Schedule 8 annexed hereto; a true and complete list of all Patents and Patent Licenses owned, held (whether pursuant to
a license or otherwise) or used by such Grantor, in whole or in part, is set forth on Schedule 9 annexed hereto; a true
and complete list of all Copyright Registrations, applications for Copyright Registrations and Copyright Licenses held (whether
pursuant to a license or otherwise) by such Grantor, in whole or in part, is set forth on Schedule 10 annexed hereto.

 

(h)          Deposit
Accounts, Securities Accounts, Commodity Accounts. Schedule 11 annexed hereto lists all Deposit Accounts, Securities
Accounts and Commodity Accounts owned by each Grantor, and indicates the institution or intermediary at which the account is held
and the account number for each such account. Such Grantor is the sole entitlement holder or customer of each such account, and
such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Secured Party pursuant hereto) having
Control over, or any other interest in, any such Deposit Account, Securities Account, or Commodity Account, or any securities,
commodities or other property credited thereto.

 

(i)          Chattel
Paper. Such Grantor has no interest in any Chattel Paper, except as set forth in Schedule 12 annexed hereto. All tangible
Chattel Paper evidencing, comprising or representing the Collateral has been delivered to the Secured Party or will be delivered
as of the date of the Post-Closing Certificate to the Secured Party, and the Secured Party has Control of all electronic Chattel
Paper evidencing, comprising or representing the Collateral.

 

(j)          Letter-of-Credit
Rights. Such Grantor has no interest in any Letter-of-Credit Rights, except as set forth on Schedule 13 annexed hereto.

 

(k)          Documents.
No negotiable Documents are outstanding with respect to any of the Inventory, except as set forth on Schedule 14 annexed
hereto.

 

(l)          Subsidiaries.
As of the date hereof, the undersigned includes all of Aevi’s direct and indirect Subsidiaries.

 

The representations and
warranties as to the information set forth in Schedules referred to herein are made as to each Grantor (other than Additional Grantors)
as of the date hereof and as of the date of the Post-Closing Certificate and as to each Additional Grantor as of the date of the
applicable Counterpart, except that, in the case of a Pledge Supplement, IP Supplement or notice delivered pursuant to Section
5(d) hereof, such representations and warranties are made as of the date of such supplement or notice.

 

    	 	5	 

     

    

 

SECTION 5.         Further
Assurances.

 

(a)          Generally.
Each Grantor agrees that from time to time, at the expense of Grantors, such Grantor will promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary or desirable, or that the Secured Party may request,
in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Party
to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Without limiting the generality of the
foregoing, each Grantor will: (i) notify the Secured Party on each Collateral Reporting Date (as defined below) in writing
of receipt by such Grantor of any interest in Collateral constituting on an item of Chattel Paper on which more than $100,000 is
owing received since the last such notice and at the request of the Secured Party, mark conspicuously each such item of Chattel
Paper and each of its records pertaining to such Collateral, with a legend, in form and substance satisfactory to the Secured Party,
indicating that such Collateral is subject to the security interest granted hereby, (ii) within five (5) Business Days of
receipt thereof, deliver to the Secured Party all separate promissory notes and other Instruments on which more than $100,000 is
owing on and, at the request of the Secured Party, all original counterparts of such Chattel Paper, duly endorsed and accompanied
by duly executed instruments of transfer or assignment, all in form and substance satisfactory to the Secured Party, (iii) (A) authorize,
execute (if necessary) and file such financing or continuation statements, or amendments thereto, (B) execute and deliver,
and cause to be executed and delivered, agreements establishing that the Secured Party has Control of Deposit Accounts and Investment
Property of such Grantor; provided, however that in the case of any Deposit Accounts, Securities Accounts or Commodity
Accounts (other than Excluded Accounts) owned by the Grantors on the date hereof, the Grantors shall deliver to the Secured Party,
not later than thirty (30) days after the date hereof, duly executed control agreements for such Deposit Accounts, Securities Accounts
and Commodity Accounts, (C) deliver such documents, instruments, notices, records and consents, and take such other actions,
necessary to establish that Secured Party has Control over electronic Chattel Paper and Letter-of-Credit Rights of such Grantor,
(D) at the request of the Secured Party, take all actions necessary to establish the Secured Party’s Control over Electronic
Chattel Paper and (E) deliver such other instruments or notices, in each case, as may be necessary or desirable, or as the
Secured Party may request, in order to perfect and preserve the security interests granted or purported to be granted hereby, (iv) furnish
to the Secured Party from time to time statements and schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as the Secured Party may reasonably request, all in reasonable detail, (v) at any
reasonable time, upon request by the Secured Party, exhibit the Collateral to and allow inspection of the Collateral by the Secured
Party, or persons designated by the Secured Party, (vi) at the Secured Party’s request, appear in and defend any action or
proceeding that may affect such Grantor’s title to or the Secured Party’s security interest in all or any part of the
Collateral, and (vii) use commercially reasonable efforts to obtain any necessary consents of third parties to the creation and
perfection of a security interest in favor of the Secured Party with respect to any Collateral. Each Grantor hereby authorizes
the Secured Party to file one or more financing or continuation statements, and amendments thereto, relative to all or any part
of the Collateral (including any financing statement indicating that it covers “all assets” or “all personal
property” of such Grantor or words of similar import) without the signature of any Grantor. Without limiting any Grantor’s
obligations under this Agreement, the Secured Party and Aevi shall determine, in their reasonable discretion, whether the costs
of perfecting any security interest granted to the Secured Party hereunder outweighs the benefits of perfection, and to the extent
the Secured Party and Aevi have in any particular circumstance so determined that the costs outweigh the benefits, Aevi shall not
be required to comply with the applicable provision of this Agreement to cause such security interest to be perfected.

 

    	 	6	 

     

    

 

(b)          Securities
Collateral. Without limiting the generality of the foregoing Section 5(a), each Grantor agrees that (i) all certificates
or Instruments representing or evidencing the Securities Collateral shall be delivered to and held by or on behalf of the Secured
Party pursuant hereto, within five (5) Business Days of the acquisition, incurrence or creation thereof, and shall be in suitable
form for transfer by delivery or, as applicable, shall be accompanied by such Grantor’s endorsement, where necessary, or
duly executed instruments of transfer or assignments in blank, all in form and substance satisfactory to the Secured Party and
(ii) it will, upon obtaining any additional Equity Interests or Instruments, promptly (and in any event within five (5) Business
Days) deliver to the Secured Party a Pledge Supplement, duly executed by such Grantor, in respect of such additional Pledged Equity
or Pledged Debt; provided that the failure of any Grantor to execute a Pledge Supplement with respect to any additional
Pledged Equity or Pledged Debt shall not impair the security interest of the Secured Party therein or otherwise adversely affect
the rights and remedies of the Secured Party hereunder with respect thereto. If any of the Collateral is or shall become evidenced
or represented by an uncertificated security, such Grantor shall cause the issuer thereof either: (x) to register the Secured Party
as the registered owner of such uncertificated security, upon original issue or registration of transfer; or (y) to agree in writing
with such Grantor and the Secured Party that such issuer will comply with instructions with respect to such uncertificated security
originated by the Secured Party without further consent of such Grantor, such agreement to be in form and substance reasonably
satisfactory to the Secured Party. Upon each such acquisition, the representations and warranties contained in Section 4(f) hereof
shall be deemed to have been made by such Grantor as to such Pledged Equity or Pledged Debt, whether or not such Pledge Supplement
is delivered.

 

(c)          Intellectual
Property Collateral. At least quarterly, within 15 days after the end of each calendar quarter commencing with the calendar
quarter ending June 30, 2019 (a “Collateral Reporting Date”), each Grantor shall notify the Secured Party in
writing of any rights to Intellectual Property Collateral acquired by such Grantor after the date hereof since the last such notice.
At least quarterly, within 15 days after the end of each calendar quarter, each Grantor shall execute and deliver to the Secured
Party an IP Supplement, and submit a Grant for recordation with respect thereto in the applicable IP Filing Office; provided
that the failure of any Grantor to execute an IP Supplement or submit a Grant for recordation with respect to any additional Intellectual
Property Collateral shall not impair the security interest of the Secured Party therein or otherwise adversely affect the rights
and remedies of the Secured Party hereunder with respect thereto. Upon delivery to the Secured Party of an IP Supplement, Schedules
8, 9 and 10 annexed hereto and Schedule A to each Grant, as applicable, shall be deemed modified to include
a reference to any right, title or interest in any existing Intellectual Property Collateral or any Intellectual Property Collateral
set forth on Schedule A to such IP Supplement. Upon each such acquisition, the representations and warranties contained
in Section 4(g) hereof shall be deemed to have been made by such Grantor as to such Intellectual Property Collateral, whether or
not such IP Supplement is delivered. With respect to any Intent-to-Use Application, each Grantor shall diligently pursue filing
with the IP Filing Office of: (i) an “Amendment To Allege Use,” or (ii) a “Statement Of Use,” to the extent
the subject mark is used in interstate commerce for all the goods and services in the applicable Intent-to-Use Application, consistent
with such Grantor’s commercially reasonable judgment.

 

    	 	7	 

     

    

 

(d)          Commercial
Tort Claims. Grantors have no Commercial Tort Claims as of the date hereof and as of the date of the Post-Closing Certificate,
except as set forth on Schedule 1 annexed hereto. In the event that a Grantor shall at any time after the date hereof have
any Commercial Tort Claim in excess of $100,000, such Grantor shall, on each Collateral Reporting Date, notify the Secured Party
thereof in writing, which notice shall (i) set forth in reasonable detail the basis for and nature of such Commercial Tort
Claim and (ii) constitute an amendment to this Agreement by which such Commercial Tort Claim shall constitute part of the
Collateral.

 

SECTION 6.         Certain
Covenants of Grantors.

 

Each Grantor shall:

 

(a)          not
use or permit any Collateral to be used unlawfully or in violation of any provision of this Agreement or any applicable statute,
regulation or ordinance or any policy of insurance covering the Collateral;

 

(b)          give
the Secured Party at least fifteen (15) days’ prior written notice of (i) any change in such Grantor’s legal name,
identity or corporate structure and (ii) any reincorporation, reorganization or other action that results in a change of the
jurisdiction of organization of such Grantor; and each Grantor shall not effect or permit any change referred to in this paragraph
(b) unless all filings have been, or concurrently therewith will be, made under the Uniform Commercial Code or otherwise that are
required in order for the Secured Party to continue at all times following such change to have a valid, legal and perfected security
interest, having the priority required by this Agreement, in all the Collateral;

 

(c)          keep
correct and accurate Records of Collateral at the locations described in Schedule 3 annexed hereto; and

 

(d)          permit
representatives of the Secured Party at any time during normal business hours to inspect and make abstracts from such Records,
and each Grantor agrees to render to the Secured Party, at such Grantor’s cost and expense, such clerical and other assistance
as may be reasonably requested with regard thereto; provided that the Secured Party will not exercise such right more than
twice in any consecutive twelve (12) month period to the extent no Event of Default has then occurred and is then continuing.

 

    	 	8	 

     

    

 

SECTION 7.         Special
Covenants With Respect to Equipment and Inventory.

 

Each Grantor shall:

 

(a)          if
any Inventory is in possession or control of any of such Grantor’s agents or processors, if the aggregate book value of all
such Inventory exceeds $50,000, and in any event upon the occurrence and during the continuance of an Event of Default, instruct
such agent or processor to hold all such Inventory for the account of the Secured Party and subject to the instructions of the
Secured Party;

 

(b)          if
any Inventory is located on premises leased by such Grantor, use commercially reasonable efforts to deliver to the Secured Party
a fully executed collateral access agreement in form and substance reasonably satisfactory to the Secured Party; and

 

(c)          promptly
upon the issuance and delivery to such Grantor of any negotiable Document covering property valued in excess of $100,000, deliver
such Document to the Secured Party.

 

SECTION 8.         Special
Covenants with respect to Accounts.

 

(a)          Each
Grantor shall, for not less than three years from the date on which each Account of such Grantor arose, maintain (i) complete
Records of such Account, including records of all payments received, credits granted and merchandise returned, and (ii) all
documentation relating thereto.

 

(b)          Except
as otherwise provided in this subsection (b), each Grantor shall continue to collect, at its own expense, all amounts due or to
become due to such Grantor under the Accounts. In connection with such collections, each Grantor may take (and, upon the occurrence
and during the continuance of an Event of Default, at the Secured Party’s direction, shall take) such action as such Grantor
or the Secured Party may deem necessary or advisable to enforce collection of amounts due or to become due under the Accounts;
provided, however, that the Secured Party shall have the right at any time, upon the occurrence and during the continuation
of an Event of Default and upon written notice to such Grantor of its intention to do so, to (i) notify the account debtors
or obligors under any Accounts of the assignment of such Accounts to the Secured Party and to direct such account debtors or obligors
to make payment of all amounts due or to become due to such Grantor thereunder directly to the Secured Party, (ii) notify
each Person maintaining a lockbox or similar arrangement to which account debtors or obligors under any Accounts have been directed
to make payment to remit all amounts representing collections on checks and other payment items from time to time sent to or deposited
in such lockbox or other arrangement directly to the Secured Party, (iii) enforce collection of any such Accounts at the expense
of Grantors, and (iv) adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent
as such Grantor might have done. After receipt by such Grantor of the notice from the Secured Party referred to in the proviso
to the preceding sentence, (A) all amounts and proceeds (including checks and other Instruments) received by such Grantor in respect
of the Accounts shall be received in trust for the benefit of the Secured Party hereunder, shall be segregated from other funds
of such Grantor and shall be forthwith paid over or delivered to the Secured Party in the same form as so received (with any necessary
endorsement) to be held as cash Collateral and applied as provided by Section 17 hereof, and (B) such Grantor shall not, without
the written consent of the Secured Party, adjust, settle or compromise the amount or payment of any Account, or release wholly
or partly any account debtor or obligor thereof, or allow any credit or discount thereon, except to the extent such Grantor determines
in good faith so doing is reasonably likely to maximize collection thereon.

 

    	 	9	 

     

    

 

(c)          If
any Grantor shall at any time after the date of this Agreement acquire or become the beneficiary of Accounts in excess of $100,000
in the aggregate in respect of which the account debtor is a Governmental Authority, such Grantor shall promptly notify the Secured
Party and, upon the request of the Secured Party, shall take commercially reasonable efforts to perfect the security interest of
the Secured Party, and make such security interest enforceable against the account debtor.

 

SECTION 9.         Special
Covenants With Respect to the Securities Collateral.

 

(a)          Form
of Securities Collateral. The Secured Party shall have the right at any time to require the appropriate Grantor to request
the issuer thereof to exchange certificates or instruments representing or evidencing Securities Collateral for certificates or
instruments of smaller or larger denominations. If any Securities Collateral is not a security pursuant to Section 8-103 of the
UCC, no Grantor shall take any action that, under such Section, converts such Securities Collateral into a security without causing
the issuer thereof to issue to it certificates or instruments evidencing such Securities Collateral, which it shall promptly deliver
to the Secured Party as provided in this Section 9(a).

 

(b)          Covenants.
Each Grantor shall (i) promptly upon its acquisition (directly or indirectly) of any Equity Interests, including additional
Equity Interests in each issuer of Pledged Equity, comply with Section 5(b), subject to the provisions of the last paragraph of
Section 1; (ii) promptly upon issuance of any and all Instruments or other evidences of additional Indebtedness from time
to time owed to such Grantor by any obligor on the Pledged Debt, comply with Section 5; (iii) promptly deliver to the Secured
Party all written notices received by it with respect to the Securities Collateral; (iv) at its expense (A) perform and comply
in all material respects with all terms and provisions of any agreement related to the Securities Collateral required to be performed
or complied with by it, (B) maintain all such agreements in full force and effect and (C) enforce all such agreements in accordance
with their terms, except to such Grantor determines in good faith that doing so will not result in a net benefit; and (vii), at
the request of the Secured Party, promptly execute and deliver to the Secured Party an agreement providing for control by the Secured
Party of all Security Entitlements, Securities Accounts, Commodity Contracts and Commodity Accounts of such Grantor.

 

(c)          Voting
and Distributions. So long as no Event of Default shall have occurred and be continuing, (i) each Grantor shall be entitled
to exercise any and all voting and other consensual rights pertaining to the Securities Collateral or any part thereof for any
purpose not prohibited by the terms of this Agreement or any other Transactional Document; provided that no Grantor shall
exercise or refrain from exercising any such right if such action would have a material adverse effect on the value of the Securities
Collateral or any part thereof; and (ii) each Grantor shall be entitled to receive and retain any and all dividends, other
distributions, principal and interest paid in respect of the Securities Collateral.

 

    	 	10	 

     

    

 

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

 

In order to permit the Secured Party to exercise
the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other
distributions which it may be entitled to receive hereunder, (I) each Grantor shall promptly execute and deliver (or cause to be
executed and delivered) to the Secured Party all such proxies, dividend payment orders and other instruments as the Secured Party
may from time to time reasonably request, and (II) without limiting the effect of clause (I) above, each Grantor hereby grants
to the Secured Party an irrevocable proxy to vote the Pledged Equity and to exercise all other rights, powers, privileges and remedies
to which a holder of the Pledged Equity would be entitled (including giving or withholding written consents of holders of Equity
Interests, calling special meetings of holders of Equity Interests and voting at such meetings), which proxy shall be effective,
automatically and without the necessity of any action (including any transfer of any Pledged Equity on the record books of the
issuer thereof) by any other Person (including the issuer of the Pledged Equity or any officer or agent thereof), upon the occurrence
of an Event of Default and which proxy shall only terminate upon the Discharge of the Secured Obligations (other than contingent
indemnification obligations not then due), the cure of such Event of Default or waiver thereof as evidenced by a writing executed
by the Secured Party.

 

Each Grantor hereby authorizes and instructs each
issuer of any Securities Collateral pledged by such Grantor hereunder to: (A) comply with any instruction received by it from the
Secured Party in writing that: (i) states that an Event of Default has occurred and is continuing; and (ii) is otherwise in accordance
with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each
such issuer shall be fully protected in so complying; and (B) upon the occurrence and during the continuation of an Event of Default,
unless otherwise expressly permitted or required hereby, pay any dividends or other payments with respect to the Securities Collateral
directly to the Secured Party.

 

(d)          Grantor
as Issuer. Each Grantor which is an issuer of Pledged Equity agrees that: (i) it will be bound by the terms of this Agreement
relating to the Pledged Equity issued by it and will comply with such terms insofar as such terms are applicable to it; (ii) it
will notify the Secured Party promptly in writing of the occurrence of any of the events described in this Section 9 with respect
to the Pledged Equity issued by it; and (iii) the terms of Section 9(c) shall apply to it, mutatis mutandis, with respect to all
actions that may be required of it pursuant to Section 9(c) with respect to the Pledged Equity issued by it. In addition, each
Grantor which is either an issuer or an owner of any Pledged Equity hereby consents to the grant by each other Grantor of the security
interest hereunder in favor of the Secured Party and to the transfer of any Pledged Equity to the Secured Party or its nominee
following an Event of Default and to the substitution of the Secured Party or its nominee as a partner, member or shareholder or
other equity holder of the issuer of the related Pledged Equity.

 

    	 	11	 

     

    

 

SECTION
10.       Special Covenants With Respect to the Intellectual Property Collateral.

 

(a)          Each
Grantor shall:

 

(i)          use
reasonable efforts so as not to permit the inclusion in any contract to which it hereafter becomes a party of any provision that
could or might in any way impair or prevent the creation of a security interest in, or the assignment of, such Grantor’s
rights and interests in any property included within the definitions of any Intellectual Property Collateral acquired under such
contracts, provided that the foregoing shall not prohibit such Grantor from licensing or selling any such Intellectual Property
Collateral to the extent such Grantor in good faith determines that so doing is in the best interests of such Grantor, and in each
such case the Secured Party will cooperate as necessary to release its security interest in such Intellectual Property Collateral
in accordance with Section 19;

 

(ii)         take
any and all reasonable steps to protect the secrecy of all trade secrets relating to the products and services sold or delivered
under or in connection with the Intellectual Property Collateral, including, without limitation, where appropriate entering into
confidentiality agreements with employees and labeling and restricting access to secret information and documents;

 

(iii)        use
proper statutory notice in connection with its use of any of the Intellectual Property Collateral material to its business or operation
to prevent loss of legal protection for such Intellectual Property Collateral; and

 

(iv)        use
a commercially appropriate standard of quality (which may be consistent with such Grantor’s past practices) in the manufacture,
sale and delivery of products and services sold or delivered under or in connection with the Trademarks.

 

(b)          Except
as otherwise provided in this Section 10, each Grantor shall continue to collect, at its own expense, all amounts due or to become
due to such Grantor in respect of the Intellectual Property Collateral or any portion thereof. In connection with such collections,
each Grantor may take (and, upon the occurrence and during the continuance of an Event of Default, at the Secured Party’s
reasonable direction, shall take) such action as such Grantor or the Secured Party may deem reasonably necessary or advisable to
enforce collection of such amounts; provided that the Secured Party shall have the right at any time, upon the occurrence
and during the continuation of an Event of Default and upon written notice to such Grantor of its intention to do so, to notify
the obligors with respect to any such amounts of the existence of the security interest created hereby and to direct such obligors
to make payment of all such amounts directly to the Secured Party, and, upon such notification and at the expense of such Grantor,
to enforce collection of any such amounts and to adjust, settle or compromise the amount or payment thereof, in the same manner
and to the same extent as such Grantor might have done. After receipt by any Grantor of the notice from the Secured Party referred
to in the proviso to the preceding sentence and upon the occurrence and during the continuance of any Event of Default, (i) all
amounts and proceeds (including checks and Instruments) received by each Grantor in respect of amounts due to such Grantor in respect
of the Intellectual Property Collateral or any portion thereof shall be received in trust for the benefit of the Secured Party
hereunder, shall be segregated from other funds of such Grantor and shall be forthwith paid over or delivered to the Secured Party
in the same form as so received (with any necessary endorsement) to be held as cash Collateral and applied as provided by Section
17 hereof, and (ii) such Grantor shall not adjust, settle or compromise the amount or payment of any such amount or release
wholly or partly any obligor with respect thereto or allow any credit or discount thereon, except to the extent such Grantor determines
in good faith so doing is reasonably likely to maximize collection thereon.

 

    	 	12	 

     

    

 

(c)          Each
Grantor shall have the duty to diligently prosecute, file and/or make, unless and until such Grantor, in its commercially reasonable
judgment, decides otherwise, (i) any application for registration relating to any of the Intellectual Property Collateral
owned, held or used by such Grantor and set forth on Schedules 8, 9 or 10 annexed hereto, as applicable, that
is pending as of the date of this Agreement and as of the date of the Post-Closing Certificate, (ii) any Copyright Registration
on any existing or future unregistered but copyrightable works (except for works of nominal commercial value or with respect to
which such Grantor has determined in the exercise of its commercially reasonable judgment that it shall not seek registration),
(iii) any application on any future patentable but unpatented innovation or invention comprising Intellectual Property Collateral,
and (iv) any Trademark opposition and cancellation proceedings, renew Trademark Registrations and Copyright Registrations
and do any and all acts which are necessary or desirable to preserve and maintain all rights in all Intellectual Property Collateral.
Any expenses incurred in connection therewith shall be borne solely by Grantors. Subject to the foregoing, each Grantor shall give
the Secured Party prior written notice of any abandonment of any Intellectual Property Collateral.

 

(d)          Except
as provided herein, each Grantor shall have the right to commence and prosecute in its own name, as real party in interest, for
its own benefit and at its own expense, such suits, proceedings or other actions for infringement, unfair competition, dilution,
misappropriation or other damage, or reexamination or reissue proceedings as are necessary to protect the Intellectual Property
Collateral. Each Grantor shall promptly, following its becoming aware thereof, notify the Secured Party of the institution of,
or of any adverse determination in, any proceeding (whether in an IP Filing Office or any federal, state, local or foreign court)
or regarding such Grantor’s ownership, right to use, or interest in any Intellectual Property Collateral. Each Grantor shall
provide to the Secured Party any information with respect thereto requested by the Secured Party.

 

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

 

    	 	13	 

     

    

 

SECTION 11.       Schedules.

 

All references to Schedules in this Agreement
shall refer to such Schedules as supplemented by the corresponding schedules in the Post-Closing Certificate, which shall be deemed
to be a part of the Schedules to this Agreement as of such date.

 

SECTION 12.       The
Secured Party Appointed Attorney-in-Fact.

 

Each Grantor hereby irrevocably appoints the Secured
Party as such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such
Grantor, the Secured Party or otherwise, from time to time in the Secured Party’s discretion to take any action and to execute
any instrument that the Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation:

 

(a)          upon
the occurrence and during the continuance of an Event of Default, to obtain insurance with respect to any of the Collateral;

 

(b)          upon
the occurrence and during the continuance of an Event of Default, to ask for, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;

 

(c)          upon
the occurrence and during the continuance of an Event of Default, to receive, endorse and collect any drafts or other Instruments,
Documents, Chattel Paper and other documents in connection with clauses (a) and (b) above;

 

(d)          upon
the occurrence and during the continuance of an Event of Default, to file any claims or take any action or institute any proceedings
that the Secured Party may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce or protect
the rights of the Secured Party with respect to any of the Collateral;

 

(e)          to
pay or discharge taxes or Liens levied or placed upon or threatened against the Collateral, the legality or validity thereof and
the amounts necessary to discharge the same to be determined by the Secured Party in its sole discretion, any such payments made
by the Secured Party to become obligations of such Grantor to the Secured Party, due and payable immediately without demand;

 

(f)          upon
the occurrence and during the continuance of an Event of Default, to sign and endorse any invoices, freight or express bills, bills
of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with Accounts
and other documents relating to the Collateral; and

 

    	 	14	 

     

    

 

(g)          upon
the occurrence and during the continuance of an Event of Default, generally to sell, transfer, pledge, make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely as though the Secured Party were the absolute owner
thereof for all purposes, and to do, at the Secured Party’s option and Grantors’ expense, at any time or from time
to time, all acts and things that the Secured Party deems necessary to protect, preserve or realize upon the Collateral and the
Secured Party’s security interest therein in order to effect the intent of this Agreement, all as fully and effectively as
such Grantor might do.

 

SECTION 13.       The
Secured Party May Perform.

 

If any Grantor fails to perform any agreement
contained herein, the Secured Party may itself perform, or cause the performance of, such agreement, and the expenses of the Secured
Party incurred in connection therewith shall be payable by Grantors under Section 18(b).

 

SECTION 14.       Standard
of Care.

 

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

 

    	 	15	 

     

    

 

SECTION 15.       Remedies.

 

(a)          Generally.
Upon the occurrence and during the continuance of any Event of Default, the Secured Party may (i) declare all Secured Obligations
at the time outstanding, and all other amounts owed to the Secured Party under this Agreement and the other Security Documents
to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest
or other notice of any kind, all of which are expressly waived by each Grantor, anything in this Agreement or the other Security
Documents to the contrary notwithstanding; provided that upon the occurrence of an Event of Default specified
in Clause (c) or (d) of the definition thereof, the Secured Obligations shall automatically become due and payable
without presentment, demand, protest or other notice of any kind, all of which are expressly waived by each Grantor, anything in
this Agreement or in any other Loan Document to the contrary notwithstanding, and (ii) exercise all of its other rights and remedies
under this Agreement, the other Security Documents and applicable Legal Requirements, in order to satisfy all of the Secured Obligations.
If any Event of Default shall have occurred and be continuing, the Secured Party may exercise in respect of the Collateral, in
addition to all other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured
party on default under the UCC (whether or not the UCC applies to the affected Collateral), and also may (i) require each
Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Secured Party forthwith, assemble
all or part of the Collateral as directed by the Secured Party and make it available to the Secured Party at a place to be designated
by the Secured Party that is reasonably convenient to both parties, (ii) enter onto the property where any Collateral is located
and take possession thereof with or without judicial process, (iii) prior to the disposition of the Collateral, store, process,
repair or recondition the Collateral or otherwise prepare the Collateral for disposition in any manner to the extent the Secured
Party deems appropriate, (iv) take possession of any Grantor’s premises or place custodians in exclusive control thereof,
remain on such premises and use the same and any of such Grantor’s equipment for the purpose of completing any work in process,
taking any actions described in the preceding clause (iii) and collecting any Secured Obligation, (v) without notice except
as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Secured
Party’s offices or elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or prices
and upon such other terms as the Secured Party may deem commercially reasonable, (vi) exercise dominion and control over and
refuse to permit further withdrawals from any Deposit Account maintained with the Secured Party and provide instructions directing
the disposition of funds in Deposit Accounts and (vii) provide entitlement orders with respect to Security Entitlements and
other Investment Property constituting a part of the Collateral and, without notice to any Grantor, transfer to or register in
the name of the Secured Party or any of its nominees any or all of the Securities Collateral. The Secured Party may be the purchaser
of any or all of the Collateral at any such sale (to the fullest extent permitted by applicable Legal Requirements) and the Secured
Party shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion
of the Collateral sold at any such public sale, to use and apply any of the Secured Obligations as a credit on account of the purchase
price for any Collateral payable by the Secured Party at such sale. Each purchaser at any such sale shall hold the property sold
absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the fullest extent permitted
by applicable Legal Requirements) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future
have under any rule of law or statute now existing or hereafter enacted. Each Grantor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ notice to such Grantor 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. The Secured Party shall not be obligated to
make any sale of Collateral regardless of notice of sale having been given. The Secured Party 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. Each Grantor hereby waives any claims against the Secured Party arising by
reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which
might have been obtained at a public sale, even if the Secured Party accepts the first offer received and does not offer such Collateral
to more than one offeree. If the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the Secured
Obligations, Grantors shall be jointly and severally liable for the deficiency and the fees of any attorneys employed by the Secured
Party to collect such deficiency. Each Grantor further agrees that a breach of any of the covenants contained in this Section 15
will cause irreparable injury to the Secured Party, that the Secured Party has no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section shall be specifically enforceable against such Grantor,
and each Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that no default has occurred giving rise to the Secured Obligations becoming due and payable prior to their
stated maturities.

 

    	 	16	 

     

    

 

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

 

(c)          Rights
and Remedies Cumulative; Non-Waiver; etc. The enumeration of the rights and remedies of the Secured Party set forth in this
Agreement is not intended to be exhaustive and the exercise by the Secured Party of any right or remedy shall not preclude the
exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy
given hereunder or under the other Security Documents or that may now or hereafter exist at law or in equity or by suit or otherwise.
No delay or failure to take action on the part of the Secured Party in exercising any right, power or privilege shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further
exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default.
No course of dealing between Aevi and the Secured Party or their respective agents or employees shall be effective to change, modify
or discharge any provision of this Agreement or any of the other Security Documents or to constitute a waiver of any Event of Default.

 

(d)          Credit
Bidding. The Secured Party shall have the right to credit bid and purchase for the benefit of the Secured Party all or any
portion of Collateral at any sale thereof conducted by the Secured Party under the provisions of the UCC, including pursuant to
Sections 9-610 or 9-620 of the UCC, at any sale thereof conducted under the provisions of any Debtor Relief Laws, including Section 363
of Title 11 of the United States Code, or a sale under a plan of reorganization, or at any other sale or foreclosure conducted
by the Secured Party (whether by judicial action or otherwise) in accordance with applicable Legal Requirements. Such credit bid
or purchase may be completed through one or more acquisition vehicles formed by the Secured Party to make such credit bid or purchase
and, in connection therewith, the Secured Party is authorized to adopt documents providing for the governance of the acquisition
vehicle or vehicles, and assign the applicable Secured Obligations to any such acquisition vehicle in exchange for Equity Interests
and/or debt issued by the applicable acquisition vehicle.

 

    	 	17	 

     

    

 

SECTION 16.       Additional
Remedies for Intellectual Property Collateral.

 

(a)          Anything
contained herein to the contrary notwithstanding, upon the occurrence and during the continuation of an Event of Default, (i) the
Secured Party shall have the right (but not the obligation) to bring suit, in the name of any Grantor, the Secured Party or otherwise,
to enforce any Intellectual Property Collateral, in which event each Grantor shall, at the request of the Secured Party, do any
and all lawful acts and execute any and all documents required by the Secured Party in aid of such enforcement and each Grantor
shall promptly, upon demand, reimburse and indemnify the Secured Party as provided in Section 18 hereof, as applicable, in connection
with the exercise of its rights under this Section 16, and, to the extent that the Secured Party shall elect not to then bring
suit to enforce any Intellectual Property Collateral as provided in this Section, each Grantor agrees to use all reasonable measures,
whether by action, suit, proceeding or otherwise, to prevent the infringement by others of any of the Intellectual Property Collateral
material to its business or operation and for that purpose agrees to use its commercially reasonable judgment in maintaining any
action, suit or proceeding against any Person so infringing reasonably necessary to prevent such infringement; (ii) upon written
demand from the Secured Party, each Grantor shall execute and deliver to the Secured Party an assignment or assignments of the
Intellectual Property Collateral and such other documents as are necessary or appropriate to carry out the intent and purposes
of this Agreement; (iii) each Grantor agrees that such an assignment and/or recording shall be applied to reduce the Secured
Obligations outstanding only to the extent that the Secured Party (or any other Secured Party) receives cash proceeds in respect
of the sale of, or other realization upon, the Intellectual Property Collateral; and (iv) each Grantor agrees to cooperate
with the Secured Party in making available to the Secured Party, to the extent within such Grantor’s power and authority,
such personnel in such Grantor’s employ as the Secured Party may reasonably designate, by name, title or job responsibility,
to permit such Grantor to continue, directly or indirectly, to produce, advertise and sell the products and services sold or delivered
by such Grantor under or in connection with the Trademarks, Trademark Registrations and Trademark Rights, such persons to be available
to perform their prior functions on the Secured Party’s behalf and to be compensated by the Secured Party at such Grantor’s
expense on a per diem, pro-rata basis consistent with the salary and benefit structure applicable to each as of the date of such
Event of Default.

 

(b)          If
(i) an Event of Default shall have occurred and, by reason of cure, waiver, modification, amendment or otherwise, no longer
be continuing, (ii) no other Event of Default shall have occurred and be continuing, (iii) an assignment to the Secured
Party of any rights, title and interests in and to the Intellectual Property Collateral shall have been previously made, and (iv) the
Secured Obligations shall not have become immediately due and payable, upon the written request of any Grantor, the Secured Party
shall promptly execute and deliver to such Grantor such assignments as may be necessary to reassign to such Grantor any such rights,
title and interests as may have been assigned to the Secured Party as aforesaid, subject to any disposition thereof that may have
been made by the Secured Party; provided that after giving effect to such reassignment, the Secured Party’s security
interest granted pursuant hereto, as well as all other rights and remedies of the Secured Party granted hereunder, shall continue
to be in full force and effect; and provided, further, that the rights, title and interests so reassigned shall be
free and clear of all Liens other than Liens (if any) encumbering such rights, title and interest immediately prior to their assignment
to the Secured Party.

 

    	 	18	 

     

    

 

SECTION 17.      Application
of Proceeds.

 

Except as expressly provided elsewhere in this
Agreement, all proceeds received by the Secured Party in respect of any sale of, collection from, or other realization upon all
or any part of the Collateral shall be applied as follows:

 

First, to payment
of that portion of the Secured Obligations constituting fees, indemnities, expenses and other amounts, including attorney fees,
payable to the Secured Party;

 

Second, to payment
of the remaining Secured Obligations then owing under the Note; and

 

Last, the balance, if any, after all
of the Secured Obligations have been indefeasibly paid in full, to the Grantors or as otherwise required by applicable Legal Requirements.

 

SECTION 18.       Indemnity
and Expenses.

 

(a)          Grantors
jointly and severally agree to indemnify the Secured Party from and against any and all claims, losses and liabilities in any way
relating to, growing out of or resulting from this Agreement and the transactions contemplated hereby (including, without limitation,
enforcement of this Agreement); provided that such indemnity shall not, as to the Secured Party, be available to the extent
that such claims, losses and liabilities are determined by a court of competent jurisdiction by final and nonappealable judgment
to have resulted from the gross negligence, bad faith or willful misconduct of the Secured Party.

 

(b)          The
obligations of Grantors in this Section 18 shall survive the termination of this Agreement and the discharge of Grantors’
other obligations under this Agreement, the Note and the other Transactional Documents.

 

SECTION 19.      Continuing
Security Interest; Termination and Release; Reinstatement.

 

(a)          This
Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect until
the payment in full of the Secured Obligations (other than contingent indemnification obligations not then due), (ii) be binding
upon Grantors and their respective successors and assigns, and (iii) inure, together with the rights and remedies of the Secured
Party hereunder, to the benefit of the Secured Party and its successors, transferees and assigns.

 

(b)          Upon
the date on which the Secured Obligations are paid in full, the security interest granted hereby shall terminate and all rights
to the Collateral shall revert to the applicable Grantors (such event, the “Discharge of the Secured Obligations”).
Upon any such termination, the Secured Party will, at Grantors’ expense, execute and deliver to Grantors such documents as
Grantors shall reasonably request to evidence such termination.

 

    	 	19	 

     

    

 

(c)          Notwithstanding
Sections 19(a) and (b) herein, this Agreement shall continue in full force and effect or be revived, as the case may be, if any
payment by or on behalf of any Grantor is made, or the Secured Party exercises its right of setoff, in respect of the Secured Obligations
and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the Secured Party in its discretion) to be repaid to
a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Laws or otherwise, all as if
such payment had not been made or such setoff had not occurred and whether or not the Secured Party or such Secured Party is in
possession of or has released this Agreement and regardless of any prior revocation, rescission, termination or reduction. The
obligations of each Grantor under this Section 19(c) shall survive termination of this Agreement.

 

(d)          Notwithstanding
anything to the contrary in this Agreement, any Permitted Disposition of Collateral to a party other than a Grantor or an Affiliate
shall be free and clear of the security interest granted hereby, which shall thereupon be released and terminated, and upon request
by Grantors the Secured Party will, at Grantors’ expense, execute and deliver to Grantors such documents as Grantors reasonably
request to evidence such release and termination; provided that the security interest granted hereunder shall attach to
and continue on any and all proceeds received by any Grantor in connection with such Permitted Disposition.

 

SECTION 20.       Post-Closing
Matters.

 

(a)          Within
five (5) business days following the date of this Agreement, Aevi and the other Grantors shall deliver to the Secured Party, in
form and substance reasonably acceptable to the Secured Party, an officer’s certificate attaching copies of all Schedules
that identify Collateral to be granted by the Additional Grantor pursuant to this Agreement (the “Post-Closing Certificate”)
and:

 

(i)          authorizing
the Secured Party to add the information set forth on the Schedules to such certificate to the correlative Schedules attached to
this Agreement;

 

(ii)         affirming
that all Collateral of Aevi and the other Grantors, including the items of property described on the Schedules thereto, are part
of the Collateral and shall secure all Secured Obligations; and

 

(iii)        making
the representations and warranties set forth in this Security Agreement, to the extent relating to Aevi and the Grantors, as of
the date of such certificate.

 

    	 	20	 

     

    

 

SECTION 21.       Additional
Grantors.

 

(a)          The
initial Grantors hereunder shall be Aevi and such of the Subsidiaries of Aevi as are signatories hereto on the date hereof. From
time to time subsequent to the date hereof, additional Subsidiaries of Aevi may become Additional Grantors, by executing a Counterpart.
Upon delivery of any such Counterpart to the Secured Party, notice of which is hereby waived by Grantors, each such Additional
Grantor shall be a Grantor and shall be as fully a party hereto as if such Additional Grantor were an original signatory hereto.
Each Grantor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release
of any other Grantor hereunder, nor by any election of the Secured Party not to cause any Subsidiary of Aevi to become an Additional
Grantor hereunder. This Agreement shall be fully effective as to any Grantor that is or becomes a party hereto regardless of whether
any other Person becomes or fails to become or ceases to be a Grantor hereunder.

 

(b)          Promptly
after the creation or acquisition of any Subsidiary (and, in any event, within thirty (30) days after such creation, acquisition,
or cessation, as such time period may be extended by the Secured Party in its sole discretion), cause: (i) such Subsidiary to become
a Subsidiary Guarantor (as defined in the Subsidiary Guaranty Agreement) by delivering to the Secured Party a duly executed supplement
to the Subsidiary Guaranty Agreement or such other document as the Secured Party shall deem appropriate for such purpose; (ii)
such Subsidiary to grant a security interest in all Collateral (subject to the exceptions specified in this Agreement) owned by
such Subsidiary by delivering to the Secured Party a duly executed supplement to each applicable Security Document or such other
document as the Secured Party shall deem appropriate for such purpose and comply with the terms of each applicable Security Document;
(iii) to be delivered to the Secured Party such opinions, documents, and certificates consistent with those delivered in connection
with the original execution and delivery of this Agreement, as may be reasonably requested by the Secured Party; (iv) to be delivered
to the Secured Party original certificated Equity Interests constituting Collateral or other certificates and stock or other transfer
powers evidencing the Equity Interests constituting Collateral of such Person (to the extent such Equity Interests are certificated);
(v) to be delivered to the Secured Party such updated Schedules to the Transactional Documents as requested by the Secured Party
with respect to such Person; and (vi) to be delivered to the Secured Party such other documents as may be reasonably requested
by the Secured Party in furtherance of the purposes of this Agreement, all in form, content and scope reasonably satisfactory to
the Secured Party.

 

SECTION 22.       Amendments;
Etc.

 

No amendment, modification, termination or waiver
of any provision of this Agreement, and no consent to any departure by any Grantor therefrom, shall in any event be effective unless
the same shall be in writing and signed by the Secured Party and, in the case of any such amendment or modification, by Grantors;
provided that this Agreement may be modified by the execution of a Counterpart by an Additional Grantor in accordance with
Section 21 hereof and Grantors hereby waive any requirement of notice of or consent to any such amendment. Any such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which it was given.

 

    	 	21	 

     

    

 

SECTION 23.       Notices.

 

Any notice or other communication herein required
or permitted to be given shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail, sent by facsimile or e-mail. Notices sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by facsimile or e-mail shall be deemed to have been given
when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the
opening of business on the next business day for the recipient). For the purposes hereof, the address of each party hereto shall
be as set forth under such party’s name on the signature pages hereof or such other address as shall be designated by such
party in a written notice delivered to the other parties hereto.

 

SECTION 24.       Failure
or Indulgence Not Waiver; Remedies Cumulative.

 

No failure or delay on the part of the Secured
Party in the exercise of any power, right or privilege hereunder shall impair such power, right or privilege or be construed to
be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege
preclude any other or further exercise thereof or of any other power, right or privilege. All rights and remedies existing under
this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

SECTION 25.       Severability.

 

In case any provision in or obligation under this
Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired
thereby.

 

SECTION 26.       Headings.

 

Section and subsection headings in this Agreement
are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or
be given any substantive effect.

 

SECTION 27.       Governing
Law; Rules of Construction.

 

THIS AGREEMENT AND ANY CLAIM, CONTROVERSY, DISPUTE
OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), EXCEPT TO THE EXTENT
THAT THE UCC PROVIDES THAT THE PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK, IN WHICH CASE THE LAWS OF SUCH JURISDICTION
SHALL GOVERN WITH RESPECT TO THE PERFECTION OF THE SECURITY INTEREST IN, OR THE REMEDIES WITH RESPECT TO, SUCH PARTICULAR COLLATERAL.

 

    	 	22	 

     

    

 

With reference to this Agreement, unless otherwise
specified herein: (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined,
(b) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms, (c) the
words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”, (d) the word “will” shall be construed to have the same meaning and effect as the word “shall”,
(e) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (f) the words
 “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement,
(h) the words “asset” and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, (i) the
term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial
statements and other writings, however evidenced, whether in physical or electronic form and (j) in the computation of periods
of time from a specified date to a later specified date, the word “from” means “from and including;” the
words “to” and “until” each mean “to but excluding;” and the word “through” means
 “to and including”.

 

SECTION 28.       Submission
to Jurisdiction; Waiver of Venue; Service of Process.

 

(a)          SUBMISSION
TO JURISDICTION. EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING
OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE SECURED PARTY OR
ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT, THE SUBSIDIARY GUARANTY AGREEMENT OR ANY OTHER SECURITY
DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN
NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY
THEREOF, AND EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS
IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, IN SUCH FEDERAL COURT. EACH GRANTOR AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT, THE SUBSIDIARY GUARANTY AGREEMENT OR IN ANY OTHER SECURITY DOCUMENT SHALL
AFFECT ANY RIGHT THAT THE SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, THE SUBSIDIARY
GUARANTY AGREEMENT OR ANY OTHER SECURITY DOCUMENT AGAINST ANY GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

    	 	23	 

     

    

 

(b)          Waiver
of Venue. Each Grantor irrevocably and unconditionally waives, to the fullest extent permitted by applicable Legal Requirements,
any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to
this Agreement, the Subsidiary Guaranty Agreement or any other Security in any court referred to in clause (a) of this Section
28. Each Grantor hereto hereby irrevocably waives, to the fullest extent permitted by applicable Legal Requirements, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(c)          Service
of Process. Each Grantor irrevocably consents to service of process in the manner provided for notices in this Security Agreement.
Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable
Legal Requirements.

 

SECTION 29.       Waiver
of Jury Trial.

 

EACH GRANTOR AND THE SECURED PARTY HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SUBSIDIARY GUARANTY AGREEMENT OR ANY OTHER
SECURITY DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). IF
AND TO THE EXTENT THAT THE FOREGOING WAIVER OF THE RIGHT TO A JURY TRIAL IS UNENFORCEABLE FOR ANY REASON IN SUCH FORUM, EACH OF
THE PARTIES HERETO HEREBY CONSENTS TO THE ADJUDICATION OF ALL CLAIMS PURSUANT TO JUDICIAL REFERENCE AS PROVIDED IN CALIFORNIA CODE
OF CIVIL PROCEDURE SECTION 638, AND THE JUDICIAL REFEREE SHALL BE EMPOWERED TO HEAR AND DETERMINE ALL ISSUES IN SUCH REFERENCE,
WHETHER FACT OR LAW. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
CONSENT AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE SUBSIDIARY
GUARANTY AGREEMENT AND ANY OTHER SECURITY DOCUMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SECTION 30.       Counterparts.

 

This Agreement may be executed in one or more
counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed
an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached
from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to
the same document.

 

    	 	24	 

     

    

 

SECTION 31.       Definitions.

 

(a)          Each
capitalized term utilized in this Agreement that is not defined in the Note or in this Agreement, but that is defined in the UCC,
including the categories of Collateral listed in Section 1 hereof, shall have the meaning set forth in Articles 1, 8 or 9 of the
UCC.

 

(b)          All
accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity
with GAAP, applied on a consistent basis, as in effect from time to time and in a manner consistent with that used in preparing
the audited financial statements of Aevi.

 

(c)          In
addition, the following terms used in this Agreement shall have the following meanings:

 

“Actual Use Application”
means a federal application to register any Trademark in the United States on an actual use basis under Section 1(a) of the federal
Lanham Act (Section 15 U.S.C. §1051).

 

“Additional Grantor” means
a Subsidiary of Aevi that becomes a party hereto after the date hereof as an additional Grantor by executing a Counterpart.

 

“Business Day” means any
day other than a Saturday, Sunday or legal holiday on which banks in New York, New York, are open for the conduct of their commercial
banking business.

 

“Code” means the United States
Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

“Collateral” has the meaning
set forth in Section 1 hereof.

 

“Control” means: (a) with
respect to Investment Property constituting Certificated Securities, Uncertificated Securities, Securities Accounts, Securities
Entitlements or Commodity Accounts, “control” within the meanings of Sections 8-106 and 9-106 of the UCC; (b) with
respect to Deposit Accounts, “control” within the meaning of Section 9-104 of the UCC; (c) with respect to Letter of
Credit Rights, “control” within the meaning of Section 9-107 of the UCC; and (d) with respect to Electronic Chattel
Paper, “control” within the meaning of Section 9-105 of the UCC).

 

“Copyright Registrations”
means all copyright registrations issued to any Grantor and applications for copyright registration that have been or may hereafter
be issued or applied for thereon in the United States and any state thereof and in foreign countries (including, without limitation,
the registrations set forth on Schedule 10 annexed hereto, as the same may be amended pursuant hereto from time to time).

 

“Copyright Rights” means
all common law and other rights in and to the Copyrights in the United States and any state thereof and in foreign countries including
all copyright licenses (but with respect to such copyright licenses, only to the extent permitted by such licensing arrangements),
the right (but not the obligation) to renew and extend Copyright Registrations and any such rights and to register works protectable
by copyright and the right (but not the obligation) to sue in the name of any Grantor or in the name of the Secured Party or any
other Secured Party for past, present and future infringements of the Copyrights and any such rights.

 

    	 	25	 

     

    

 

“Copyrights” means all items
under copyright in various published and unpublished works of authorship including, without limitation, computer programs, computer
data bases, other computer software layouts, trade dress, drawings, designs, writings, and formulas (including, without limitation,
the works set forth on Schedule 10 annexed hereto, as the same may be amended pursuant hereto from time to time).

 

“Copyright License” means
any written agreement, now or hereafter in effect, granting any right to any third party under any Copyright now owned or hereafter
acquired by any Grantor or that such Grantor otherwise has the right to license, or granting any right to any Grantor under any
Copyright now owned or hereafter acquired by any third party, and all rights of such Grantor under any such agreement, and including
those exclusive copyright licenses under which any Grantor is a licensee listed on Schedule 10 annexed hereto.

 

“Counterpart” means a counterpart
to this Agreement entered into by a Subsidiary of Aevi pursuant to Section 21 hereof.

 

“Debtor Relief Laws” means
Title 11 of the United States Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect.

 

“Disposition” means any sale,
transfer, lease, license or other disposition of any property or asset, including any Equity Interest owned by it and any sale,
assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims
associated therewith.

 

“Equity Interests” means
(a) in the case of a corporation, capital stock, (b) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership
interests (whether general or limited), (d) in the case of a limited liability company, membership interests, (e) any other interest
or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets
of, the issuing Person and (f) any and all warrants, rights or options to purchase any of the foregoing, whether any of the foregoing
is classified as Investment Property or General Intangibles under the UCC.

 

“Excluded Accounts” means
(a) escrow accounts and trust accounts; (b) payroll accounts; (c) accounts used for payroll taxes and/or withheld income taxes;
(d) accounts used for employee wage and benefit payments; (e) accounts pledged to secure letters of credit and bank guarantees;
(f) custodial accounts; and (g) accounts that are swept to a zero balance on a daily basis to a Deposit Account that is subject
to a Control Agreement.

 

“Fair Market Value”
means with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a
sale of such asset at such date of determination assuming a sale by a willing seller to a willing purchaser dealing at arm’s
length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such
asset.  Except as otherwise expressly set forth herein, such value shall be determined in good faith by the Grantors.

 

    	 	26	 

     

    

 

“GAAP”
means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in
the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

 

“Governmental Authority”
means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).

 

“Grant” means a Grant of
Trademark Security Interest, substantially in the form of Exhibit I annexed hereto, and a Grant of Patent Security Interest,
substantially in the form of Exhibit II annexed hereto, and a Grant of Copyright Security Interest, substantially in the
form of Exhibit III annexed hereto.

 

“Intellectual Property Collateral”
means, with respect to any Grantor all right, title and interest (including rights acquired pursuant to a license or otherwise
but only to the extent permitted by agreements governing such license or other use) in and to all

 

(a)          Copyrights,
Copyright Registrations and Copyright Rights, including, without limitation, each of the Copyrights, rights, titles and interests
in and to the Copyrights, all derivative works and other works protectable by copyright, which are presently, or in the future
may be, owned, created (as a work for hire for the benefit of such Grantor), authored (as a work for hire for the benefit of such
Grantor), or acquired by such Grantor, in whole or in part, and all Copyright Rights with respect thereto and all Copyright Registrations
therefor, heretofore or hereafter granted or applied for, and all renewals and extensions thereof, throughout the world;

 

(b)          Patents;

 

(c)          Trademarks,
Trademark Registrations, the Trademark Rights and goodwill of such Grantor’s business symbolized by the Trademarks and associated
therewith;

 

(d)          all
trade secrets, trade secret rights, know-how, customer lists, processes of production, ideas, confidential business information,
techniques, processes, formulas, and all other proprietary information; and

 

(e)          all
proceeds thereof (such as, by way of example and not by limitation, license royalties and proceeds of infringement suits).

 

    	 	27	 

     

    

 

“Indebtedness” means, without
duplication, all obligations of any Grantor: (a) in respect of borrowed money; (b) any obligations for borrowed money secured by
a mortgage, pledge, security interest, lien or charge on the assets of a Grantor, whether the obligation secured is the obligation
of the owner of the asset or another Person (provided that non-recourse obligations will only be taken into account up to
the fair market value of the related property); (c) any obligation for the deferred purchase price of any property or services
evidenced by a note, payment contract (other than an account payable arising in the ordinary course of business) or other instrument,
(d) any obligation as lessee under any capitalized lease; (e) all guaranties and contingent or other legal obligations in respect
to Indebtedness of other Persons, excluding ordinary course endorsements; the amount of any guaranty, contingent or other legal
obligation in respect of Indebtedness of other Persons included in Indebtedness shall be deemed to be an amount equal to the maximum
reasonably anticipated liability in respect thereof as determined by Grantors in good faith; (f) undertakings or agreements to
reimburse or indemnify issuers of letters of credit, other than commercial letters of credit, and instruments serving a similar
function other than (i) letters of credit to the extent covered by cash collateral, and (ii) liabilities under surety and performance
bonds for such Person's obligations incurred in the ordinary course of business; and (g) redemption obligations in respect of mandatorily
redeemable preferred stock.

 

“Intent-To-Use Application”
means a federal application to register any Trademark in the United States on an intent-to-use basis under Section 1(b) of the
federal Lanham Act, 15 U.S.C. § 1051).

 

“Investment" means the acquisition,
purchase, making or holding of any stock or other security, any loan, advance, contribution to capital, extension of credit (except
for trade and customer accounts receivable for inventory sold or services rendered in the ordinary course of business and payable
in accordance with customary trade terms), any acquisitions of real or personal property (other than real and personal property
acquired in the ordinary course of business) and any purchase or commitment or option to purchase stock or other debt or equity
securities of or any interest in another Person or any integral part of any business or the assets comprising such business or
part thereof.

 

“IP Filing Office” means
the United States Patent and Trademark Office, the United States Copyright Office or any successor or substitute office in which
filings are necessary or, in the opinion of the Secured Party, desirable in order to create or perfect Liens on, or evidence the
interest of the Secured Party in, any Intellectual Property Collateral.

 

“IP Supplement” means an
IP Supplement, substantially in the form of Exhibit V annexed hereto.

 

“Legal Requirements” shall
mean, as to any Person, the organizational documents of such Person, and any treaty, law (including the common law), statute, ordinance,
code, rule, regulation, guidelines, license, permit requirement, order or determination of an arbitrator or a court or other Governmental
Authority, and the interpretation or administration thereof, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

 

    	 	28	 

     

    

 

“Lien”
means any mortgage or deed of trust, pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim, security interest,
easement or encumbrance, or preference, priority or other security agreement or preferential arrangement of any kind or nature
whatsoever (including any lease or title retention agreement, any financing lease having substantially the same economic effect
as any of the foregoing, and the filing of, or agreement to give, any financing statement perfecting a security interest under
the Code or comparable law of any jurisdiction).

 

“Net Proceeds” means, with
respect to any event, (a) the aggregate amount of proceeds received in respect of such event, including (i) any cash or cash equivalents
received in respect of any non-cash proceeds, including any cash payments received by way of deferred payment of principal pursuant
to a note or installment receivable or purchase price adjustment or earn-out (but excluding any interest payments), but only as
and when received, (ii) in the case of a casualty, insurance proceeds that are actually received, and (iii) in the case of a condemnation
or similar event, condemnation awards and similar payments that are actually received, minus (b) the sum of (i) all fees
and out-of-pocket expenses paid by the Grantors in connection with such event (including attorney’s fees, investment banking
fees, brokerage, consultant, accountant and other customary fees), (ii) in the case of a Disposition of an asset (including pursuant
to a sale leaseback or casualty event or similar proceeding), (x) the amount of all payments that are made by the Grantors as a
result of such event to repay Indebtedness secured by such asset or otherwise subject to mandatory prepayment as a result of such
event, (y) the pro rata portion of net cash proceeds thereof (calculated without regard to this clause (y)) attributable to minority
interests and not available for distribution to or for the account of the Grantors as a result thereof and (z) the amount of any
liabilities directly associated with such asset and retained by the Grantors and (iii) the amount of all taxes paid (or reasonably
estimated to be payable), and the amount of any reserves established by the Grantors to fund contingent liabilities reasonably
estimated to be payable, that are directly attributable to such event; provided that any reduction at any time in the amount
of any such reserves (other than as a result of payments made in respect thereof) shall be deemed to constitute the receipt by
the Grantors at such time of Net Proceeds in the amount of such reduction.

 

“Patents” means all patents
and patent applications and rights and interests in patents and patent applications under any domestic or foreign law that are
presently, or in the future may be, owned or held by a Grantor and all patents and patent applications and rights, title and interests
in patents and patent applications under any domestic or foreign law that are presently, or in the future may be, owned by such
Grantor in whole or in part (including, without limitation, the patents and patent applications set forth on Schedule 9
annexed hereto), all rights (but not obligations) corresponding thereto to sue for past, present and future infringements and all
re-issues, divisions, continuations, renewals, extensions and continuations-in-part thereof.

 

“Patent License” means any
written agreement, now or hereafter in effect, granting to any third party any right to make, use or sell any invention on which
a Patent, now owned or hereafter acquired by any Grantor or that any Grantor otherwise has the right to license, is in existence,
or granting to any Grantor any right to make, use or sell any invention on which a Patent, now owned or hereafter acquired by any
third party, is in existence, and all rights of any Grantor under any such agreement, and including those exclusive patent licenses
under which any Grantor is a licensee listed on Schedule 9 annexed hereto.

 

    	 	29	 

     

    

 

“Permitted Disposition” means:

 

(i)          Dispositions
of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business and Dispositions
of property no longer used or useful, or economically practicable to maintain, in the conduct of the business of the applicable
Grantor (including allowing any registration or application for registration of any Intellectual Property that is no longer used
or useful, or economically practicable to maintain, to lapse or go abandoned);

 

(ii)         Dispositions
of inventory and other assets, including payments for goods and services, in the ordinary course of business;

 

(iii)        Dispositions
of property to the extent that (a) such property is exchanged for credit against the purchase price of similar replacement property
or (b) an amount equal to the Net Proceeds of such Disposition are promptly applied to the purchase price of such replacement property;

 

(iv)        [Reserved];

 

(v)         [Reserved];

 

(vi)        Dispositions
of cash and cash equivalents;

 

(vii)       Dispositions
of accounts receivable in connection with the collection or compromise thereof (including sales to factors or other third parties);

 

(viii)      [Reserved];

 

(ix)         Transfers
of property subject to casualty events upon receipt of the Net Proceeds of such casualty event;

 

(x)          [Reserved];

 

(xi)         Dispositions
of any assets (including Equity Interests) (i) acquired in connection with any acquisition or other Investment, which assets are
not used or useful to the core or principal business of the Grantors and (ii) made to obtain the approval of any applicable antitrust
authority in connection with any acquisition or other Investment;

 

(xii)        transfers
of condemned property as a result of the exercise of “eminent domain” or other similar powers to the respective Governmental
Authority or agency that has condemned the same (whether by deed in lieu of condemnation or otherwise), and transfers of property
arising from foreclosure or similar action or that have been subject to a casualty to the respective insurer of such real property
as part of an insurance settlement;

 

(xiii)       Dispositions
of property for Fair Market Value so long as the Net Proceeds of such Dispositions are applied to repay the Secured Obligations
to the extent not otherwise applied to the operations of or invested in the business of any Grantors; and

 

    	 	30	 

     

    

 

(xiv)      Dispositions
of property for Fair Market Value not otherwise permitted above, so long as the aggregate amount of Net Proceeds for all property
subject to such Dispositions does not exceed $100,000.

 

“Permitted Encumbrance” means:

 

(i)          any
Liens created under this Agreement;

 

(ii)         Liens
existing on the date hereof and set forth on Schedule 30;

 

(iii)        Liens
granted by a Grantor in favor of any other Grantor;

 

(iv)        any
interest or title of a lessor under leases (other than leases constituting capitalized lease) entered into by any of the Grantors
in the ordinary course of business;

 

(v)         Liens
encumbering reasonable customary initial deposits and margin deposits and similar Liens attaching to commodity trading accounts
or other brokerage accounts incurred in the ordinary course of business and not for speculative purposes;

 

(vi)        Liens
that are contractual rights of setoff relating to the establishment of depository relations with banks not given in connection
with the incurrence of Indebtedness;

 

(vii)       receipt
of progress payments and advances from customers in the ordinary course of business to the extent the same creates a Lien on the
related inventory and proceeds thereof;

 

(viii)      Liens
for taxes or other governmental charges that are not overdue for a period of more than thirty (30) days or that are being contested
in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on
the books of the applicable Person in accordance with GAAP;

 

(ix)         Liens
imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or construction
contractors’ Liens and other similar Liens arising in the ordinary course of business that secure amounts not overdue for
a period of more than thirty (30) days or, if more than thirty (30) days overdue, are unfiled and no other action has been taken
to enforce such Liens or that are being contested in good faith and by appropriate proceedings diligently conducted, if adequate
reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP, in each case so long
as such Liens do not individually or in the aggregate have a material adverse effect on the Grantors;

 

(x)          Encumbrances
incurred or deposits made in the ordinary course of business (a) in connection with workers’ compensation, unemployment insurance
and other social security legislation and (b) securing liability for reimbursement or indemnification obligations of (including
obligations in respect of letters of credit or bank guarantees or similar instruments for the benefit of) insurance carriers providing
property, casualty or liability insurance to the Grantors or otherwise supporting the payment of items set forth in the foregoing
clause (a);

 

    	 	31	 

     

    

 

(xi)         Liens
incurred or deposits made to secure the performance of bids, trade contracts, governmental contracts and leases, statutory obligations,
surety, stay, customs and appeal bonds, performance bonds, bankers acceptance facilities and other obligations of a like nature
(including those to secure health, safety and environmental obligations) and obligations in respect of letters of credit, bank
guarantees or similar instruments that have been posted to support the same, incurred in the ordinary course of business or consistent
with past practices;

 

(xii)        Easements,
rights-of-way, restrictions, encroachments, protrusions, zoning restrictions and other similar encumbrances and minor title defects
affecting real property that, in the aggregate, do not in any case materially interfere with the ordinary conduct of the business
of Liens, taken as a whole; and

 

(xiii)       Liens
on goods the purchase price of which is financed by a documentary letter of credit issued for the account of any Grantor or Liens
on bills of lading, drafts or other documents of title arising by operation of law or pursuant to the standard terms of agreements
relating to letters of credit, bank guarantees and other similar instruments; provided that such Lien secures only the obligations
of the such Grantor in respect of such letter of credit to the extent such obligations are otherwise allowed to be secured by a
Permitted Encumbrance.

 

“Person” shall mean any natural
person, corporation, business trust, joint venture, trust, association, company (whether limited in liability or otherwise), partnership
(whether limited in liability or otherwise) or Governmental Authority, or any other entity, in any case, whether acting in a personal,
fiduciary or other capacity.

 

“Pledged Debt” means the
Indebtedness from time to time owed to a Grantor, including the Indebtedness set forth on Schedule 7 annexed hereto and
issued by the obligors named therein, the Instruments and certificates evidencing such Indebtedness and all interest, cash or other
property received, receivable or otherwise distributed in respect of or exchanged therefor.

 

“Pledged Equity” means all
Equity Interests now or hereafter owned by a Grantor, including all securities convertible into, and rights, warrants, options
and other rights to purchase or otherwise acquire, any of the foregoing, including those owned on the date hereof and as of the
date of the Post-Closing Certificate and set forth on Schedule 6 annexed hereto, the certificates or other instruments representing
any of the foregoing and any interest of such Grantor in the entries on the books of any securities intermediary pertaining thereto
and all distributions, dividends and other property received, receivable or otherwise distributed in respect of or exchanged therefor;
provided, however that Pledged Equity shall not include the Excluded Collateral.

 

“Pledged Subsidiary Debt”
means Pledged Debt owed to a Grantor by any obligor that is, or becomes, a direct or indirect Subsidiary of such Grantor, of which
such Grantor is a direct or indirect Subsidiary or that controls, is controlled by or under common control with such Grantor.

 

    	 	32	 

     

    

 

“Pledged Subsidiary Equity”
means Pledged Equity in a Person that is, or becomes a direct Subsidiary of a Grantor.

 

“Pledge Supplement” means
a Pledge Supplement, in substantially the form of Exhibit IV annexed hereto, in respect of the additional Pledged Equity
or Pledged Debt pledged pursuant to this Agreement.

 

“Secured Obligations” means
obligations under any Transactional Document, including, but not limited to any payment of principal, obligations to pay any indemnity
obligations and any amounts owed, in each case, under any Transactional Document.

 

“Securities Act” means the
Securities Act of 1933, as amended from time to time, and any successor statute.

 

“Securities Collateral” means,
with respect to any Grantor, the Pledged Equity, the Pledged Debt and any other Investment Property in which such Grantor has an
interest.

 

“Security Document” means
this Agreement, the Subsidiary Guaranty Agreement, any Grant of Trademark Security Agreement, any Grant of Copyright Security Agreement,
any Grant of Patent Security Agreement, each other agreement or writing pursuant to which any Grantor pledges, grants or perfects
or purports to pledge, grant or perfect, a security interest in any Property or assets securing the Secured Obligations and each
other document, instrument, certificates and agreement executed and delivered by any Grantor in connection with this Agreement.

 

“Subsidiary” means as to
any Person, any corporation, partnership, limited liability company or other entity of which more than fifty percent (50%) of the
outstanding Equity Interests having ordinary voting power to elect a majority of the board of directors (or equivalent governing
body) or other managers of such corporation, partnership, limited liability company or other entity is at the time owned by (directly
or indirectly) or the management is otherwise controlled by (directly or indirectly) such Person (irrespective of whether, at the
time, Equity Interests of any other class or classes of such corporation, partnership, limited liability company or other entity
shall have or might have voting power by reason of the happening of any contingency). Unless otherwise qualified, references to
 “Subsidiary” or “Subsidiaries” herein shall refer to those of Aevi.

 

“Subsidiary Guaranty Agreement”
means that certain Subsidiary Guaranty Agreement, dated as of the date hereof, as amended, amended and restated, supplemented or
otherwise modified from time to time.

 

“Trademark License” means
any written agreement, now or hereafter in effect, granting to any third party any right to use any trademark now or hereafter
owned by any Grantor or that any Grantor otherwise has the right to license, or granting to any Grantor any right to use any trademark
now or hereafter owned by any third party, and all rights of any Grantor under any such agreement, and including those exclusive
trademark licenses under which any Grantor is a licensee listed on Schedule 8 annexed hereto.

 

    	 	33	 

     

    

 

“Trademark Registrations”
means all registrations that have been or may hereafter be issued or applied for thereon in the United States and any state thereof
and in foreign countries (including, without limitation, the registrations and applications set forth on Schedule 8 annexed
hereto).

 

“Trademark Rights” means
all common law and other rights (but in no event any of the obligations) in and to the Trademarks in the United States and any
state thereof and in foreign countries.

 

“Trademarks” means all trademarks,
service marks, designs, logos, indicia, tradenames, trade dress, corporate names, company names, business names, fictitious business
names, trade styles and/or other source and/or business identifiers and applications pertaining thereto, owned by a Grantor, or
hereafter adopted and used, in its business (including, without limitation, the trademarks specifically set forth on Schedule
8 annexed hereto).

 

“Transactional Documents”
means the Note, the Covenant Letter Agreement (as defined in the Note), the License Agreement Amendments (as defined in the Note),
the Letter Agreement, the Security Documents and the Sponsored Research Agreement Amendment (as defined in the Note).

 

[Remainder of page intentionally left blank]

 

    	 	34	 

     

    

 

IN WITNESS WHEREOF, Grantors and the
Secured Party have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized
as of the date first written above.

 

	 	GRANTORS:
	 	 
	 	Aevi Genomic Medicine, Inc., a Delaware corporation
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	neuroFix, LLC, a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Medgenics Medical (Israel) Ltd., a corporation organized under the laws of Israel
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Aevi Genomic Medicine Europe BVBA, a Belgian private company with limited liability
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Security Agreement

 

     

     

    

 

	 	SECURED PARTY:
	 	 
	 	The Children’s Hospital of Philadelphia 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Security Agreement

 

     

     

    

 

SCHEDULE 1

TO

SECURITY AGREEMENT

 

Commercial Tort Claims

 

    	 	Schedule 1-1	 

     

    

 

SCHEDULE 2

TO

SECURITY AGREEMENT

 

Filing Offices

 

	Grantor	 	Filing Offices
	 	 	 
	 	 	 
	 	 	 

 

    	 	Schedule 2-1	 

     

    

 

SCHEDULE 3

TO

SECURITY AGREEMENT

 

Office Locations, Type and Jurisdiction
of Organization

 

	Name of 

Grantor	 	Type of 

Organization	 	Office 

Locations1	 	Jurisdiction of 

Organization	 	Organization 

Number
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

 

1 List principal place
of business, chief executive office and office where records regarding Accounts, Intellectual Property Collateral and Chattel Paper
are kept.

 

    	 	Schedule 3-1	 

     

    

 

SCHEDULE 4

TO

SECURITY AGREEMENT

 

Locations of Equipment and Inventory

 

	Name of Grantor	 	Locations of Equipment and Inventory
	 	 	 
	 	 	 
	 	 	 

 

    	 	Schedule 4-1	 

     

    

 

SCHEDULE 5

TO

SECURITY AGREEMENT

 

Other Names

 

	Name of Grantor	 	Other Names
	 	 	 
	 	 	 
	 	 	 

 

    	 	Schedule 5-1	 

     

    

 

SCHEDULE 6

TO

SECURITY AGREEMENT

 

	Owner of 

Equity	 	Equity 

Issuer	 	Class

of

Equity	 	Equity

Certificate 

Nos.	 	Par

Value	 	Amount of

Equity 

Interests	 	Percentage of 

Outstanding 

Equity 

Owned	 	Percentage of

Outstanding

Equity 

Pledged
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 	Schedule 6-1	 

     

    

 

SCHEDULE 7

TO

SECURITY AGREEMENT

 

	Debt Issuer	 	Debt Issued To	 	Amount of

Indebtedness
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 	Schedule 7-1	 

     

    

 

SCHEDULE 8

TO

SECURITY AGREEMENT

 

U.S. Trademarks:

 

	Registered Owner	 	Trademark

    Description	 	Registration

    Number	 	Registration

    Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Foreign Trademarks:

 

	Registered Owner	 	Trademark

    Description	 	Registration

    Number	 	Registration

    Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Trademark Licenses:

 

    	 	Schedule 8-1	 

     

    

 

SCHEDULE 9

TO

SECURITY AGREEMENT

 

U.S. Patents Issued:

 

	Patent No.	 	Issue Date	 	Title	 	Inventor(s)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

U.S. Patents Pending:

 

	Date

    Filed	 	Application

    Number	 	Title	 	Inventor(s)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Foreign Patents Issued:

 

	Country	 	Patent No.	 	Issue Date	 	Title	 	Inventor(s)
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

Foreign Patents Pending:

 

	Country	 	Applicant’s

    Name	 	Date

    Filed	 	Application

    Number	 	Title	 	Inventor(s)
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

Patents Licenses:

 

    	 	Schedule 9-1	 

     

    

 

SCHEDULE 10

TO

SECURITY AGREEMENT

 

U.S. Copyright Registrations:

 

	Title	 	Registration No.	 	Date of Issue	 	Registered Owner
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Foreign Copyright Registrations:

 

	Country	 	Title	 	Registration No.	 	Date of Issue
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Pending U.S. Copyright Registration
Applications:

 

	Title	 	Appl. No.	 	Date of Application	 	Copyright Claimant
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Pending Foreign Copyright Registration
Applications:

 

	Country	 	Title	 	Appl. No.	 	Date of Application
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Copyright Licenses:

 

    	 	Schedule 10-1	 

     

    

 

SCHEDULE 11

TO

SECURITY AGREEMENT

 

Deposit Accounts, Securities Accounts,
Commodity Accounts

 

	Type
    of Account	 	Depository
    Bank or

    Securities Intermediary	 	Address
    of Depository Bank

    or Securities Intermediary	 	Account
    Number
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	Schedule 11-1	 

     

    

 

SCHEDULE 12

TO

SECURITY AGREEMENT

 

Chattel Paper

 

    	 	Schedule 12-1	 

     

    

 

SCHEDULE 13

TO

SECURITY AGREEMENT

 

Letter-of-Credit Rights

 

    	 	Schedule 13-1	 

     

    

 

SCHEDULE 14

TO

SECURITY AGREEMENT

 

Documents

 

    	 	Schedule 14-1	 

     

    

 

EXHIBIT I TO

SECURITY AGREEMENT

 

[FORM OF GRANT OF TRADEMARK SECURITY INTEREST]

GRANT OF TRADEMARK SECURITY INTEREST

 

WHEREAS, [NAME OF GRANTOR], a ___________
corporation (“Grantor”), owns and uses in its business, and will in the future adopt and so use, various intangible
assets, including the Trademark Collateral (as defined below); and

 

WHEREAS, pursuant to the Agreement, dated
March 25, 2019 (the “Letter Agreement”), by and between the Secured Party and Aevi Genomic Medicine, Inc., a
Delaware corporation (“Aevi”), the Secured Party and Aevi have agreed to, among other things, defer certain
payments due under the SRA (as defined therein) in exchange for certain consideration;

 

WHEREAS, Aevi has issued a Secured Convertible
Promissory Note (as it may hereafter be amended, restated, extended, supplemented or otherwise modified from time to time, being
the “Note”; the terms defined therein and not otherwise defined in herein being used herein as therein defined),
which that the full amount of the Note and Aevi’s performance of its obligations thereunder shall be secured by a first priority
security interest in the Collateral (as defined in the Security Agreement);

 

[Insert if Grantor is a Subsidiary] [WHEREAS,
Grantor has executed and delivered that certain Subsidiary Guaranty Agreement dated as of March 29, 2019 (said Subsidiary Guaranty
Agreement, as it may heretofore have been and as it may hereafter be further amended, restated, supplemented or otherwise modified
from time to time, being the “Guaranty”) in favor of the Secured Party, pursuant to which Grantor has guaranteed
the prompt payment and performance when due of all obligations of Aevi under the Note; and]

 

WHEREAS, pursuant to the terms of a Security
Agreement dated as of March 29, 2019 (said Security Agreement, as it may heretofore have been and as it may hereafter be further
amended, restated, supplemented or otherwise modified from time to time, being the “Security Agreement”), among
Grantor, the Secured Party and the other grantors named therein, Grantor has created in favor of the Secured Party a security interest
in, and the Secured Party has become a secured creditor with respect to, the Trademark Collateral;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, subject to the terms and conditions of the Security Agreement, to evidence
further the security interest granted by Grantor to the Secured Party pursuant to the Security Agreement, Grantor hereby grants
to the Secured Party a security interest in all of Grantor’s right, title and interest in and to the following, in each case
whether now or hereafter existing or in which Grantor now has or hereafter acquires an interest and wherever the same may be located
(the “Trademark Collateral”):

 

    	 	Exhibit I-1	Grant of Trademark Security Interest 
 to Security Agreement

     

    

 

(i)          all
rights, title and interest (including rights acquired pursuant to a license or otherwise) in and to all trademarks, service marks,
designs, logos, indicia, tradenames, trade dress, corporate names, company names, business names, fictitious business names, trade
styles and/or other source and/or business identifiers and applications pertaining thereto, owned by such Grantor, or hereafter
adopted and used, in its business (including, without limitation, the trademarks set forth on Schedule A annexed hereto)
(collectively, the “Trademarks”), all registrations that have been or may hereafter be issued or applied for
thereon in the United States and any state thereof and in foreign countries (including, without limitation, the registrations and
applications set forth on Schedule A annexed hereto), all common law and other rights (but in no event any of the obligations)
in and to the Trademarks in the United States and any state thereof and in foreign countries, and all goodwill of such Grantor’s
business symbolized by the Trademarks and associated therewith; and

 

(ii)         all
proceeds, products, rents and profits of or from any and all of the foregoing Trademark Collateral and, to the extent not otherwise
included, all payments under insurance (whether or not the Secured Party is the loss payee thereof), or any indemnity, warranty
or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Trademark Collateral. For
purposes of this Grant of Trademark Security Interest, the term “proceeds” includes whatever is receivable or
received when Trademark Collateral or proceeds are sold, licensed, exchanged, collected or otherwise disposed of, whether such
disposition is voluntary or involuntary.

 

Notwithstanding the foregoing, Trademark Collateral
shall not include any Intent-to-Use Application to the extent that, and solely during the period in which, the grant of a security
interest therein would impair the registrability, validity or enforcement of such application under applicable federal law (the
 “Excluded Trademark Collateral”); provided that at the time any such Intent-to-Use Application matures
into an Actual Use Application by the applicable Grantor’s receipt of written notification from the IP Filing Office of its
acceptance of either an “Amendment to Allege Use” or “Statement Of Use,” the Collateral shall include,
and such Grantor shall be deemed to have granted a security interest in, such Actual Use Application; provided, however,
that “Excluded Trademark Collateral” shall not include any Proceeds, products, substitutions or replacements of any
Excluded Trademark Collateral (unless such Proceeds, products, substitutions or replacements would themselves constitute Excluded
Trademark Collateral under this paragraph).

 

Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Secured Party with respect to the security interest in the Trademark Collateral granted hereby
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

 

[The remainder of this page is intentionally
left blank.]

 

    	 	Exhibit I-2	Grant of Trademark Security Interest 
 to Security Agreement

     

    

 

IN WITNESS WHEREOF, Grantor has caused
this Grant of Trademark Security Interest to be duly executed and delivered by its officer thereunto duly authorized as of the
__ day of _______, _____.

 

	 	[NAME OF GRANTOR]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	Exhibit I-3	Grant of Trademark Security Interest 
 to Security Agreement

     

    

 

SCHEDULE A

TO

GRANT OF TRADEMARK SECURITY INTEREST

 

	Owner	 	Trademark

    Description	 	Registration/

    Appl. Number	 	Registration/

    Appl. Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	Exhibit I-A-1	Grant of Trademark Security Interest 
 to Security Agreement

     

    

 

EXHIBIT II TO

SECURITY AGREEMENT

 

[FORM OF GRANT OF PATENT SECURITY INTEREST]

GRANT OF PATENT SECURITY INTEREST

 

WHEREAS, [NAME OF GRANTOR], a ___________
corporation (“Grantor”), owns and uses in its business, and will in the future adopt and so use, various intangible
assets, including the Patent Collateral (as defined below); and

 

WHEREAS, pursuant to the Agreement, dated
March 25, 2019 (the “Letter Agreement”), by and between the Secured Party and Aevi Genomic Medicine, Inc., a
Delaware corporation (“Aevi”), the Secured Party and Aevi have agreed to, among other things, defer certain
payments due under the SRA (as defined therein) in exchange for certain consideration;

 

WHEREAS, Aevi has issued a Secured Convertible
Promissory Note (as it may hereafter be amended, restated, extended, supplemented or otherwise modified from time to time, being
the “Note”; the terms defined therein and not otherwise defined in herein being used herein as therein defined),
which that the full amount of the Note and Aevi’s performance of its obligations thereunder shall be secured by a first priority
security interest in the Collateral (as defined in the Security Agreement);

 

[Insert if Grantor is a Subsidiary] [WHEREAS,
Grantor has executed and delivered that certain Subsidiary Guaranty Agreement dated as of March 29, 2019 (said Subsidiary Guaranty
Agreement, as it may heretofore have been and as it may hereafter be further amended, restated, supplemented or otherwise modified
from time to time, being the “Guaranty”) in favor of the Secured Party, pursuant to which Grantor has guaranteed
the prompt payment and performance when due of all obligations of Aevi under the Note; and]

 

WHEREAS, pursuant to the terms of a Security
Agreement dated as of March 29, 2019 (said Security Agreement, as it may heretofore have been and as it may hereafter be further
amended, restated, supplemented or otherwise modified from time to time, being the “Security Agreement”), among
Grantor, the Secured Party and the other grantors named therein, Grantor created in favor of the Secured Party a security interest
in, and the Secured Party has become a secured creditor with respect to, the Patent Collateral;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, subject to the terms and conditions of the Security Agreement, to evidence
further the security interest granted by Grantor to the Secured Party pursuant to the Security Agreement, Grantor hereby grants
to the Secured Party a security interest in all of Grantor’s right, title and interest in and to the following, in each case
whether now or hereafter existing or in which Grantor now has or hereafter acquires an interest and wherever the same may be located
(the “Patent Collateral”):

 

    	 	Exhibit II-1	
Grant of Patent Security Interest 
 to Security Agreement

     

    

 

(i)          all
rights, title and interest (including rights acquired pursuant to a license or otherwise) in and to all patents and patent applications
and rights and interests in patents and patent applications under any domestic or foreign law that are presently, or in the future
may be, owned or held by such Grantor and all patents and patent applications and rights, title and interests in patents and patent
applications under any domestic or foreign law that are presently, or in the future may be, owned by such Grantor in whole or in
part (including, without limitation, the patents and patent applications set forth on Schedule A annexed hereto), all rights
(but not obligations) corresponding thereto to sue for past, present and future infringements and all re-issues, divisions, continuations,
renewals, extensions and continuations-in-part thereof; and

 

(ii)         all
proceeds, products, rents and profits of or from any and all of the foregoing Patent Collateral and, to the extent not otherwise
included, all payments under insurance (whether or not the Secured Party is the loss payee thereof), or any indemnity, warranty
or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Patent Collateral. For purposes
of this Grant of Patent Security Interest, the term “proceeds” includes whatever is receivable or received when
Patent Collateral or proceeds are sold, licensed, exchanged, collected or otherwise disposed of, whether such disposition is voluntary
or involuntary.

 

Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Secured Party with respect to the security interest in the Patent Collateral granted hereby
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

 

[The remainder of this page intentionally
left blank.]

 

    	 	Exhibit II-2	
Grant of Patent Security Interest 
 to Security Agreement

     

    

 

IN WITNESS WHEREOF, Grantor has caused
this Grant of Patent Security Interest to be duly executed and delivered by its officer thereunto duly authorized as of the ___
day of ____________, _____.

 

	 	[NAME OF GRANTOR]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	Exhibit II-3	
Grant of Patent Security Interest 
 to Security Agreement

     

    

 

SCHEDULE A

TO

GRANT OF PATENT SECURITY INTEREST

 

Patents Issued:

 

	Patent No.	 	Issue Date	 	Invention	 	Inventor(s)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Patents Pending:

 

	Applicant’s

    Name	 	Date

    Filed	 	Application

    Number	 	Invention	 	Inventor(s)
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    	 	Exhibit II-A-1	
Grant of Patent Security Interest 
 to Security Agreement

     

    

 

EXHIBIT III TO

SECURITY AGREEMENT

 

[FORM OF GRANT OF COPYRIGHT SECURITY INTEREST]

GRANT OF COPYRIGHT SECURITY INTEREST

 

WHEREAS, [NAME OF GRANTOR], a ___________
corporation (“Grantor”), owns and uses in its business, and will in the future adopt and so use, various intangible
assets, including the Copyright Collateral (as defined below); and

 

WHEREAS, pursuant to the Agreement, dated
March 25, 2019 (the “Letter Agreement”), by and between the Secured Party and Aevi Genomic Medicine, Inc., a
Delaware corporation (“Aevi”), the Secured Party and Aevi have agreed to, among other things, defer certain
payments due under the SRA (as defined therein) in exchange for certain consideration;

 

WHEREAS, Aevi has issued a Secured Convertible
Promissory Note (as it may hereafter be amended, restated, extended, supplemented or otherwise modified from time to time, being
the “Note”; the terms defined therein and not otherwise defined in herein being used herein as therein defined),
which that the full amount of the Note and Aevi’s performance of its obligations thereunder shall be secured by a first priority
security interest in the Collateral (as defined in the Security Agreement);

 

[Insert if Grantor is a Subsidiary] [WHEREAS,
Grantor has executed and delivered that certain Subsidiary Guaranty Agreement dated as of March 29, 2019 (said Subsidiary Guaranty
Agreement, as it may heretofore have been and as it may hereafter be further amended, restated, supplemented or otherwise modified
from time to time, being the “Guaranty”) in favor of the Secured Party, pursuant to which Grantor has guaranteed
the prompt payment and performance when due of all obligations of Aevi under the Note; and]

 

WHEREAS, pursuant to the terms of a Security
Agreement dated as of March 29, 2019 (said Security Agreement, as it may heretofore have been and as it may hereafter be further
amended, restated, supplemented or otherwise modified from time to time, being the “Security Agreement”), among
Grantor, the Secured Party and the other grantors named therein, Grantor created in favor of the Secured Party a security interest
in, and the Secured Party has become a secured creditor with respect to, the Copyright Collateral;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, subject to the terms and conditions of the Security Agreement, to evidence
further the security interest granted by Grantor to the Secured Party pursuant to the Security Agreement, Grantor hereby grants
to the Secured Party a security interest in all of Grantor’s right, title and interest in and to the following, in each case
whether now or hereafter existing or in which Grantor now has or hereafter acquires an interest and wherever the same may be located
(the “Copyright Collateral”):

 

    	 	Exhibit III-1	
Grant of Copyright Security Interest 
 to Security Agreement

     

    

 

(i)          all
rights, title and interest (including rights acquired pursuant to a license or otherwise) under copyright in various published
and unpublished works of authorship including, without limitation, computer programs, computer data bases, other computer software
layouts, trade dress, drawings, designs, writings, and formulas (including, without limitation, the works set forth on Schedule
A annexed hereto, as the same may be amended pursuant hereto from time to time) (collectively, the “Copyrights”),
all copyright registrations issued to Grantor and applications for copyright registration that have been or may hereafter be issued
or applied for thereon in the United States and any state thereof and in foreign countries (including, without limitation, the
registrations set forth on Schedule A annexed hereto, as the same may be amended pursuant hereto from time to time) (collectively,
the “Copyright Registrations”), all common law and other rights in and to the Copyrights in the United States
and any state thereof and in foreign countries including all copyright licenses (but with respect to such copyright licenses, only
to the extent permitted by such licensing arrangements) (the “Copyright Rights”), including, without limitation,
each of the Copyrights, rights, titles and interests in and to the Copyrights, all derivative works and other works protectable
by copyright, which are presently, or in the future may be, owned, created (as a work for hire for the benefit of Grantor), authored
(as a work for hire for the benefit of Grantor), or acquired by Grantor, in whole or in part, and all Copyright Rights with respect
thereto and all Copyright Registrations therefor, heretofore or hereafter granted or applied for, and all renewals and extensions
thereof, throughout the world, including all proceeds thereof (such as, by way of example and not by limitation, license royalties
and proceeds of infringement suits), the right (but not the obligation) to renew and extend such Copyright Registrations and Copyright
Rights and to register works protectable by copyright and the right (but not the obligation) to sue in the name of such Grantor
or in the name of the Secured Party or any other Secured Party for past, present and future infringements of the Copyrights and
Copyright Rights; and

 

(ii)         all
proceeds, products, rents and profits of or from any and all of the foregoing Copyright Collateral and, to the extent not otherwise
included, all payments under insurance (whether or not the Secured Party is the loss payee thereof), or any indemnity, warranty
or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Copyright Collateral. For
purposes of this Grant of Copyright Security Interest, the term “proceeds” includes whatever is receivable or
received when Copyright Collateral or proceeds are sold, licensed, exchanged, collected or otherwise disposed of, whether such
disposition is voluntary or involuntary.

 

Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Secured Party with respect to the security interest in the Copyright Collateral granted hereby
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

 

    	 	Exhibit III-2	
Grant of Copyright Security Interest 
 to Security Agreement

     

    

 

IN WITNESS WHEREOF, Grantor has caused
this Grant of Copyright Security Interest to be duly executed and delivered by its officer thereunto duly authorized as of the
___ day of ___________, _____.

 

	 	[NAME OF GRANTOR]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	Exhibit III-3	
Grant of Copyright Security Interest 
 to Security Agreement

     

    

 

SCHEDULE A

TO

GRANT OF COPYRIGHT SECURITY INTEREST

 

U.S. Copyright Registrations:

 

	Title	 	Registration No.	 	Date of Issue	 	Registered Owner
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Foreign Copyright Registrations:

 

	Country	 	Title	 	Registration No.	 	Date of Issue
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Pending U.S. Copyright Registration
Applications:

 

	Title	 	Appl. No.	 	Date of Application	 	Copyright Claimant
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

Pending Foreign Copyright Registration
Applications:

 

	Country	 	Title	 	Appl. No.	 	Date of Application
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	Exhibit III-A-1	
Grant of Copyright Security Interest 
 to Security Agreement

     

    

 

EXHIBIT IV TO

SECURITY AGREEMENT

 

PLEDGE SUPPLEMENT

 

This Pledge Supplement, dated as of __________________,
is delivered pursuant to the Security Agreement, dated as of March 29, 2019 among _______________________, a ________________________
(“Grantor”), the other Grantors named therein, and [_], as Secured Party (said Security Agreement, as it may
heretofore have been and as it may hereafter be further amended, restated, supplemented or otherwise modified from time to time,
being the “Security Agreement”). Capitalized terms used herein not otherwise defined herein shall have the meanings
ascribed thereto in the Security Agreement.

 

Grantor hereby agrees that the [Pledged Equity]
[Pledged Debt] set forth on Schedule A annexed hereto shall be deemed to be part of the [Pledged Equity] [Pledged Debt]
and shall become part of the Securities Collateral and shall secure all Secured Obligations.

 

IN WITNESS WHEREOF, Grantor has caused
this Pledge Supplement to be duly executed and delivered by its duly authorized officer as of _______________.

 

	 	[NAME OF GRANTOR]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	Exhibit IV-1	

Pledge Supplement 
 to Security Agreement

     

    

 

SCHEDULE A

TO

PLEDGE SUPPLEMENT

 

    	 	Exhibit IV-A-1	

Pledge Supplement 
 to Security Agreement

     

    

 

EXHIBIT V TO

SECURITY AGREEMENT

 

IP SUPPLEMENT

 

This IP SUPPLEMENT, dated as of _______, is delivered
pursuant to and supplements (i) the Security Agreement, dated as of March 29, 2019 (said Security Agreement, as it may heretofore
have been and as it may hereafter be further amended, restated, supplemented or otherwise modified from time to time, being the
 “Security Agreement”), among _______________________, a _____________________ (“Grantor”),
the other Grantors named therein, and [_], as Secured Party, and (ii) the [Grant of Trademark Security Interest] [Grant of
Patent Security Interest] [Grant of Copyright Security Interest] dated as of ____________________ (the “Grant”)
executed by Grantor. Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto in the
Grant.

 

Grantor grants to the Secured Party a security
interest in all of Grantor’s right, title and interest in and to the [Trademark Collateral] [Patent Collateral] [Copyright
Collateral] set forth on Schedule A annexed hereto. All such [Trademark Collateral] [Patent Collateral] [Copyright Collateral]
shall be deemed to be part of the [Trademark Collateral] [Patent Collateral] [Copyright Collateral] and shall be hereafter subject
to each of the terms and conditions of the Security Agreement and the Grant.

 

IN WITNESS WHEREOF, Grantor has caused
this IP Supplement to be duly executed and delivered by its duly authorized officer as of ______________.

 

	 	[NAME OF GRANTOR]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	Exhibit V-1	

IP Supplement 
 to Security Agreement

     

    

 

EXHIBIT VI TO

SECURITY AGREEMENT

 

[FORM OF COUNTERPART]

 

COUNTERPART (this “Counterpart”),
dated as of _______, is delivered pursuant to Section 21 of the Security Agreement referred to below. The undersigned hereby agrees
that this Counterpart may be attached to the Security Agreement, dated as of March 29, 2019 (said Security Agreement, as it may
heretofore have been and as it may hereafter be further amended, restated, supplemented or otherwise modified from time to time
being the “Security Agreement”; capitalized terms used herein not otherwise defined herein shall have the meanings
ascribed therein), among [____________], the other Grantors named therein, and The Children’s Hospital of Philadelphia, as
Secured Party. The undersigned by executing and delivering this Counterpart hereby becomes a Grantor under the Security Agreement
in accordance with Section 21 thereof and agrees to be bound by all of the terms thereof. Without limiting the generality of the
foregoing, the undersigned hereby:

 

(i)          authorizes
the Secured Party to add the information set forth on the Schedules to this Agreement to the correlative Schedules attached to
the Security Agreement;2

 

(ii)         agrees
that all Collateral of the undersigned, including the items of property described on the Schedules hereto, shall become part of
the Collateral and shall secure all Secured Obligations; and

 

(iii)        makes
the representations and warranties set forth in the Security Agreement, as amended hereby, to the extent relating to the undersigned.

 

	 	[NAME OF ADDITIONAL GRANTOR]
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

2        The Schedules
to the Counterpart should include copies of all Schedules that identify collateral to be granted by the Additional Grantor.

    	 	Exhibit VI-1	

Form Of Counterpart 
 to Security Agreement

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