Document:

Exhibit
10.02

 

GUARANTY
AGREEMENT

 

This
GUARANTY AGREEMENT is dated as of August 8, 2022 (as amended, restated or modified from time to time, the “Guaranty”),
and is made by LD MICRO, INC., a Delaware corporation (the “Guarantor”), in favor of [ATW OPPORTUNITIES MASTER
FUND II, LP], a limited partnership organized and existing under the laws of Delaware (the “Lender”).

 

WHEREAS,
pursuant to a Senior Secured Revolving Credit Facility Agreement dated as of even date herewith (the “Credit Agreement”)
by and between SRAX, Inc., a Delaware corporation (the “Borrower”), the Guarantor and certain other additional
Credit Parties, and the Lender, the Borrower desires to borrow funds and obtain financial accommodations from Lender (such financial
accommodations hereinafter referred to as the “Loan”); and

 

WHEREAS,
in order to induce Lender to enter into the Loan with the Borrower, and with full knowledge that Lender would not enter into this Loan
without this Guaranty, Guarantor has agreed to execute and deliver this Guaranty to Lender, for the benefit of Lender, as security for
the Obligations; and

 

WHEREAS,
Guarantor is a subsidiary of the Borrower and will significantly benefit from the Borrower obtaining the Loan from the Lender;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements of the parties hereinafter set forth and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties each intending to be legally bound, hereby do agree as follows:

 

	1.	OBLIGATIONS
    GUARANTEED

 

Guarantor
hereby guarantees and becomes surety to Lender for the full, prompt and unconditional payment of the Obligations, when and as the same
shall become due, whether at the stated maturity date, by acceleration or otherwise, and the full, prompt and unconditional performance
of each term and condition to be performed by Borrower under the Credit Agreement and other Loan Documents. This Guaranty is a primary
obligation of the Guarantor and shall be a continuing inexhaustible Guaranty. This is a guaranty of payment and not of collection. Lender
may require Guarantor to pay and perform their liabilities and obligations under this Guaranty and may proceed immediately against the
Guarantor without being required to bring any proceeding or take any action against Borrower or any other Person prior thereto; the liability
of Guarantor hereunder being independent of and separate from the liability of Borrower, any other guarantor, any other Person, and the
availability of other Collateral security for the Loan and the other Loan Documents.

 

	2.	DEFINITIONS

 

All
capitalized terms used in this Guaranty that are defined in the Credit Agreement shall have the meanings assigned to them in the Credit
Agreement, unless the context of this Guaranty requires otherwise.

 

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	3.	REPRESENTATIONS
    AND WARRANTIES. The Guarantor represents and warrants to Lender as follows:

 

3.1. Organization,
Powers. The Guarantor is duly incorporated or organized and validly exists and is in good standing under its respective
jurisdiction of organization. The Guarantor has the power and authority to own its properties and assets and to carry on its
business as now being conducted and as now contemplated and has the power and authority to execute, deliver and perform and by all
necessary action has authorized the execution, delivery and performance of all of its obligations under this Guaranty and any other
Loan Documents to which it is a party.

 

3.2. Execution
of Guaranty. This Guaranty, and each of the other Loan Documents to which the Guarantor is a party, have been duly executed and
delivered by the Guarantor. Execution, delivery and performance of this Guaranty and each of the other Loan Documents to which the
Guarantor is a party, will not: (i) violate any provision of any law, rule or regulation, any judgment, order, writ, decree or other
instrument of any Governmental Authority, or any provision of any contract or other instrument to which the Guarantor is a party or
by which the Guarantor or any of its properties or assets are bound; (ii) result in the creation or imposition of any Lien, claim or
other encumbrance of any nature or kind, other than the Liens created by the Loan Documents; and (iii) require any consent from,
exemption of, or filing or registration with, any Governmental Authority or any other Person, other than any filings in connection
with the Liens created by the Loan Documents.

 

3.3.
Obligations of Guarantor. This Guaranty and all other Loan Documents to which the Guarantor is a party, are the legal, valid and
binding obligations of the Guarantor, enforceable against the Guarantor in accordance with their terms, except as the same may be limited
by bankruptcy, insolvency, reorganization or other laws relating to or affecting the enforcement of creditors’ rights generally
or by equitable principles which may affect the availability of specific performance and other equitable remedies. The Loan made by Lender
and the assumption by Guarantor of its obligations hereunder and under any other Loan Documents to which Guarantor is a party will result
in material benefits to the Guarantor. This Guaranty was entered into by Guarantor for commercial purposes.

 

3.4. Litigation.
There is no demand, claim, suit, action, litigation, investigation, audit, study, arbitration, administrative hearing, or any other
Proceeding of any nature whatsoever at law or in equity or by or before any Governmental Authority now pending or, to the knowledge
of the Guarantor, threatened, against or affecting the Guarantor or any of its properties, assets or rights which, if adversely
determined, would impair or affect: (i) the value of any Collateral securing the Obligations; (ii) Guarantor’s right to carry
on its business substantially as now conducted (and as now contemplated); (iii) Guarantor’s financial condition; or (iv)
Guarantor’s capacity to consummate and perform its obligations under this Guaranty or any other Loan Documents to which
Guarantor is a party which would result in a Material Adverse Effect.

 

3.5. No
Defaults. Guarantor is not in default beyond the expiration of any applicable grace or cure periods, in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained herein or in any contract or other instrument
to which Guarantor is a party or by which Guarantor or any of their properties or assets are bound which would result in a Material
Adverse Effect.

 

3.6.
No Untrue Statements. To the knowledge of Guarantor, no Loan Documents or other document, certificate or statement furnished to
Lender by or on behalf of Borrower or Guarantor contains any untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements contained herein and therein not misleading. Guarantor acknowledges that all such statements, representations
and warranties shall be deemed to have been relied upon by Lender as an inducement in providing the Loan.

 

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	4.	NO
    LIMITATION OF LIABILITY

 

4.1.
Guarantor acknowledges that the obligations undertaken herein involve the guaranty of obligations of a Person other than Guarantor
and, in full recognition of that fact, Guarantor consents and agrees that Lender may, at any time and from time to time, without
notice or demand, and without affecting the enforceability or continuing effectiveness of this Guaranty: (i) change the manner,
place or terms of payment of (including, without limitation, any increase or decrease in the principal amount of the Obligations or
the interest rate), and/or change or extend the time for payment of, or renew, supplement or modify, any of the Obligations, any
security therefor, or any of the Loan Documents evidencing same, and the Guaranty herein made shall apply to the Obligations and the
Loan Documents as so changed, extended, renewed, supplemented or modified; (ii) sell, exchange, release, surrender, realize upon or
otherwise deal with in any manner and in any order, any property securing the Obligations; (iii) supplement, modify, amend or waive,
or enter into or give any agreement, approval, waiver or consent with respect to, any of the Obligations, or any part thereof, or
any of the Loan Documents, or any additional security or guaranties, or any condition, covenant, default, remedy, right,
representation or term thereof or thereunder; (iv) exercise or refrain from exercising any rights against Borrower or other Persons
(including Guarantor) or against any security for the Obligations; (v) accept new or additional instruments, documents or agreements
in exchange for or relative to any of the Loan Documents or the Obligations, or any part thereof; (vi) accept partial payments on
the Obligations; (vii) receive and hold additional security or guaranties for the Obligations, or any part thereof; (viii) release,
reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer and/or enforce any security or
guaranties, and apply any security and direct the order or manner of sale thereof as Lender, in its sole and absolute discretion,
may determine; (ix) add, release, settle, modify or discharge the obligation of any maker, endorser, guarantor, surety, obligor or
any other Person who is in any way obligated for any of the Obligations, or any part thereof; (x) settle or compromise any
Obligation, whether in a Proceeding or not, and whether voluntarily or involuntarily, dispose of any security therefor (with or
without consideration and in whatever manner Lender deems appropriate), and subordinate the payment of any of the Obligations,
whether or not due, to the payment of liabilities owing to creditors of Borrower other than Lender and Guarantor; (xi) consent to
the merger, change or any other restructuring or termination of the corporate existence of Borrower or any other Person, and
correspondingly restructure the Obligations, and any such merger, change, restructuring or termination shall not affect the
liability of Guarantor or the continuing effectiveness hereof, or the enforceability hereof with respect to all or any part of the
Obligations; (xii) apply any sums it receives, by whomever paid or however realized, to any of the Obligations and/or (xiii) take
any other action which might constitute a defense available to, or a discharge of, Borrower or any other Person (including
Guarantor) in respect of the Obligations.

 

4.2.
The invalidity, irregularity or unenforceability of all or any part of the Obligations or any Loan Documents, or the impairment or
loss of any security therefor, whether caused by any action or inaction of Lender, or otherwise, shall not affect, impair or be a
defense to any of the Guarantor’s obligations under this Guaranty.

 

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4.3.
Upon the occurrence of any Event of Default, Lender may enforce this Guaranty independently of any other remedy, guaranty or
security Lender at any time may have or hold in connection with the Obligations, and it shall not be necessary for Lender to marshal
assets in favor of Borrower, any other guarantor of the Obligations or any other Person or to proceed upon or against and/or exhaust
any security or remedy before proceeding to enforce this Guaranty. Guarantor expressly waives any right to require Lender to marshal
assets in favor of Borrower or any other Person, or to proceed against Borrower or any other guarantor of the Obligations or any
Collateral provided by any Person, and agrees that Lender may proceed against any obligor (including Guarantor) and/or the
Collateral in such order as Lender shall determine in its sole and absolute discretion. Lender may file a separate action or actions
against Guarantor, whether action is brought or prosecuted with respect to any security or against any other Person, or whether any
other Person is joined in any such action or actions. Guarantor agrees that Lender and Borrower may deal with each other in
connection with the Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between them, in any
manner whatsoever, all without in any way altering or affecting the security of this Guaranty.

 

4.4.
Guarantor expressly waives, to the fullest extent permitted by applicable law, any and all defenses which Guarantor shall or may
have as of the date hereof arising or asserted by reason of: (i) any disability or other defense of Borrower, or any other guarantor
for the Obligations, with respect to the Obligations; (ii) the unenforceability or invalidity of any security for or guaranty of the
Obligations or the lack of perfection or continuing perfection or failure of priority of any security for the Obligations; (iii) the
cessation for any cause whatsoever of the liability of Borrower, or any other guarantor of the Obligations (other than by reason of
the full payment and performance of all Obligations (other than contingent indemnification obligations)); (iv) any failure of Lender
to marshal assets in favor of Borrower or any other Person; (v) any failure of Lender to give notice of sale or other disposition of
Collateral to Borrower or any other Person or any defect in any notice that may be given in connection with any sale or disposition
of Collateral; (vi) any failure of Lender to comply with applicable laws in connection with the sale or other disposition of any
Collateral or other security for any Obligations, including, without limitation, any failure of Lender to conduct a commercially
reasonable sale or other disposition of any Collateral or other security for any Obligations; (vii) any act or omission of Lender or
others that directly or indirectly results in or aids the discharge or release of Borrower or any other guarantor of the
Obligations, or of any security or guaranty therefor by operation of law or otherwise; (viii) any law which provides that the
obligation of a surety or guarantor must neither be larger in amount or in other respects more burdensome than that of the principal
or which reduces a surety’s or guarantor’s obligation in proportion to the principal obligation; (ix) any failure of
Lender to file or enforce a claim in any bankruptcy or other proceeding with respect to any Person; (x) the election by Lender, in
any bankruptcy proceeding of any Person, of the application or non-application of Section 1111(b)(2) of the United States Bankruptcy
Code; (xi) any extension of credit or the grant of any lien under Section 364 of the United States Bankruptcy Code; (xii) any use of
Collateral under Section 363 of the United States Bankruptcy Code; (xiii) any agreement or stipulation with respect to the provision
of adequate protection in any bankruptcy proceeding of any Person; (xiv) the avoidance of any lien or security interest in favor of
Lender for any reason; (xv) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or
dissolution proceeding commenced by or against any Person, including without limitation any discharge of, or bar or stay against
collecting, all or any of the Obligations (or any interest thereon) in or as a result of any such proceeding; or (xvi) any action
taken by Lender that is authorized by this Section or any other provision of any Loan Documents. Guarantor expressly waives all
setoffs and counterclaims and all presentments, demands for payment or performance, notices of nonpayment or nonperformance,
protests, notices of protest, notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect to
the Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional
Obligations.

 

4.5.
This is a continuing guaranty and shall remain in full force and effect as to all of the Obligations until such date (the
“Termination Date”) as all Obligations owing by the Credit Parties to Lender shall have been indefeasibly
paid in full and for cash and all obligations of Borrower with respect to any of the Obligations shall have terminated or expired
(other than contingent indemnification obligations).

 

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	5.	LIMITATION
    ON SUBROGATION

 

Until
the Termination Date, Guarantor waives any present or future right to which Guarantor is or may become entitled to be subrogated to Lender’s
rights against Borrower or to seek contribution, reimbursement, indemnification, payment or the like, or participation in any claim,
right or remedy of Lender against Borrower or any security which Lender now has or hereafter acquires, whether or not such claim, right
or remedy arises under contract, in equity, by statute, under common law or otherwise. If, notwithstanding such waiver, any funds or
property shall be paid or transferred to Guarantor on account of such subrogation, contribution, reimbursement, or indemnification at
any time when all of the Obligations have not been paid in full, the Guarantor shall hold such funds or property in trust for Lender
and shall forthwith pay over to Lender such funds and/or property to be applied by Lender to the Obligations.

 

	6.	COVENANTS

 

6.1.
Financial Statements; Compliance Certificate. No later than ten (10) days after written request therefore from Lender, Guarantor
shall deliver to Lender: (a) financial statements disclosing all of Guarantor’s assets, liabilities, net worth, income and contingent
liabilities, all in reasonable detail and in form acceptable to Lender, signed by the Guarantor, and certified by the Guarantor to Lender
to be true, correct and complete in all material respects; (b) complete copies of federal tax returns, including all schedules, each
of which shall be signed and certified by Guarantor to be true and complete copies of such returns; and (c) such other information respecting
the Guarantor as Lender may from time to time reasonably request.

 

6.2.
Subordination of Other Debts. Guarantor hereby: (a) subordinates the obligations now or hereafter owed by Borrower to the Guarantor
(“Subordinated Debt”) to any and all Obligations of Borrower to Lender now or hereafter existing while this
Guaranty is in effect, and hereby agree that the Guarantor will not request or accept payment of or any security for any part of the
Subordinated Debt, and any proceeds of the Subordinated Debt paid to the Guarantor, through error or otherwise, shall immediately be
forwarded to Lender by the Guarantor, properly endorsed to the order of Lender, to apply to the Obligations.

 

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6.3.
Security for Guaranty. All of Guarantor’s obligations and liabilities evidenced by this Guaranty are also secured by all
of the Collateral of the Guarantor pursuant to that certain Security Agreement by and between the Guarantor and Lender made of even date
herewith (the “Security Agreement”). All of the agreements, conditions, covenants, provisions, representations,
warranties and stipulations contained in the Security Agreement or any other Loan Documents to which Guarantor is a party which are to
be kept and performed by the Guarantor is hereby made a part of this Guaranty to the same extent and with the same force and effect as
if they were fully set forth herein, and the Guarantor covenants and agrees to keep and perform them, or cause them to be kept or performed,
strictly in accordance with their terms.

 

6.4. No
Material Changes. Until the Termination Date, Guarantor shall not: (i) transfer, assign, convey, hypothecate, pledge or
otherwise transfer or encumber any material portion of its assets, whether or not disclosed by Guarantor to Lender in the financial
statements of Guarantor provided to Lender and accepted by Lender prior to the execution hereof; (ii) incur or become liable for,
whether directly or indirectly, any material liabilities or obligations not already disclosed by Guarantor to Lender in the
financial statements of Guarantor provided to Lender and accepted by Lender prior to the execution hereof, including any contingent
liabilities; and (iii) enter into any transaction or become bound by any agreement or obligation that could have a material adverse
effect on the financial condition of the Guarantor.

 

	7.	EVENTS
    OF DEFAULT

 

Each
of the following shall constitute a default (each, an “Event of Default”) hereunder:

 

7.1.
The occurrence of any “Event of Default” (as defined in the Credit Agreement) under the Credit Agreement or any other
Loan Documents, whether by Borrower, Guarantor or any other Credit Parties;

 

7.2.
A breach by Guarantor of any term, covenant, condition, obligation or agreement under this Guaranty; and

 

7.3.
Any representation or warranty made by Guarantor in this Guaranty shall prove to be false, incorrect or misleading in any material
respect as of the date when made.

 

	8.	REMEDIES.

 

8.1.
Upon the occurrence of an Event of Default, all liabilities and obligations of Guarantor hereunder shall become immediately due and
payable without demand or notice and, in addition to any other remedies provided by law or in equity, Lender may:

 

8.1.1.
Enforce the obligations of Guarantor under this Guaranty.

 

8.1.2.
To the extent not prohibited by and in addition to any other remedy provided by law or equity, setoff against any of the Obligations
any sum owed by Lender in any capacity to Guarantor whether due or not.

 

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8.1.3.
Perform any covenant or agreement of Guarantor in default hereunder (but without obligation to do so) and in that regard pay such
money as may be required or as Lender may reasonably deem expedient. Any costs, expenses or fees, including reasonable
attorneys’ fees and costs, incurred by Lender in connection with the foregoing shall be included in the Obligations guaranteed
hereby, and shall be due and payable on demand, together with interest at the highest non-usurious rate permitted by applicable law,
such interest to be calculated from the date of such advance to the date of repayment thereof. Any such action by Lender shall not
be deemed to be a waiver or release of Guarantor hereunder and shall be without prejudice to any other right or remedy of
Lender.

 

8.2.
Settlement of any claim by Lender against Borrower, whether in any Proceeding or not, and whether voluntary or involuntary, shall
not reduce the amount due under the terms of this Guaranty, except to the extent of the amount actually paid by Borrower or any
other obligated Person and legally retained by Lender in connection with the settlement (unless otherwise provided for
herein).

 

	9.	MISCELLANEOUS.

 

9.1.
Disclosure of Financial Information. Lender is hereby authorized to disclose any financial or other information about Guarantor
to any Governmental Authority having jurisdiction over Lender or to any present, future or prospective participant or successor in interest
in the Loan. The information provided may include, without limitation, amounts, terms, balances, payment history, return item history
and any financial or other information about Guarantor.

 

9.2.
Remedies Cumulative. The rights and remedies of Lender, as provided herein and in any other Loan Documents, shall be cumulative
and concurrent, may be pursued separately, successively or together, may be exercised as often as occasion therefor shall arise, and
shall be in addition to any other rights or remedies conferred upon Lender at law or in equity. The failure, at any one or more times,
of Lender to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. Lender shall have the right
to take any action it deems appropriate without the necessity of resorting to any Collateral securing this Guaranty.

 

9.3.
Integration. This Guaranty and the other Loan Documents constitute the sole agreement of the parties with respect to the transactions
contemplated hereby and thereby and supersede all oral negotiations and prior writings with respect thereto.

 

9.4.
Attorneys’ Fees and Expenses. If Lender retains the services of counsel by reason of a claim of an Event of Default hereunder
or under any of the other Loan Documents, or on account of any matter involving this Guaranty, or for examination of matters subject
to Lender’s approval under the Loan Documents, all costs of suit and all reasonable attorneys’ fees and such other reasonable
expenses so incurred by Lender shall forthwith, on demand, become due and payable and shall be guaranteed hereby.

 

9.5.
No Implied Waiver. Lender shall not be deemed to have modified or waived any of its rights or remedies hereunder unless such modification
or waiver is in writing and signed by Lender, and then only to the extent specifically set forth therein. A waiver in one event shall
not be construed as continuing or as a waiver of or bar to such right or remedy on a subsequent event.

 

9.6. Waiver.
Except as otherwise provided herein or in any of the Loan Documents, Guarantor waives notice of acceptance of this Guaranty and
notice of the Obligations and waives notice of default, non-payment, partial payment, presentment, demand, protest, notice of
protest or dishonor, and all other notices to which the Guarantor might otherwise be entitled or which might be required by law to
be given by Lender. Guarantor waives the right to any stay of execution and the benefit of all exemption laws, to the extent
permitted by law, and any other protection granted by law to guarantors, now or hereafter in effect with respect to any action or
proceeding brought by Lender against it. Guarantor irrevocably waives all claims of waiver, release, surrender, alteration or
compromise and the right to assert against Lender any defenses, set-offs, counterclaims, or claims that the Guarantor may have at
any time against Borrower or any other party liable to Lender.

 

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9.7. No
Third Party Beneficiary. Except as otherwise provided herein, Guarantor and Lender do not intend the benefits of this Guaranty
to inure to any third party and no third party (including Borrower) shall have any status, right or entitlement under this
Guaranty.

 

9.8.
Partial Invalidity. The invalidity or unenforceability of any one or more provisions of this Guaranty shall not render any other
provision invalid or unenforceable. In lieu of any invalid or unenforceable provision, there shall be added automatically a valid
and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.

 

9.9. Binding
Effect. The covenants, conditions, waivers, releases and agreements contained in this Guaranty shall bind, and the benefits
thereof shall inure to, the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns;
provided, however, that this Guaranty cannot be assigned by Guarantor without the prior written consent of Lender, and any such
assignment or attempted assignment by the Guarantor shall be void and of no effect with respect to the Lender.

 

9.10.
Modifications. This Guaranty may not be supplemented, extended, modified or terminated except by an agreement in writing signed
by the party against whom enforcement of any waiver, change, modification or discharge is sought.

 

9.11.
Sales or Participations. Lender may from time to time sell or assign the Loan, in whole or in part, or grant participations in
the Loan and/or the obligations evidenced thereby without the consent of Borrower or Guarantor (other than as provided in the Credit
Agreement). The holder of any such sale, assignment or participation, if the applicable agreement between Lender and such holder so provides,
shall be: (a) entitled to all of the rights, obligations and benefits of Lender (to the extent of such holder’s interest or participation);
and (b) deemed to hold and may exercise the rights of setoff or banker’s lien with respect to any and all obligations of such holder
to Guarantor (to the extent of such holder’s interest or participation), in each case as fully as though Guarantor was directly
indebted to such holder. Lender may in its discretion give notice to Guarantor of such sale, assignment or participation; however, the
failure to give such notice shall not affect any of Lender’s or such holder’s rights hereunder.

 

9.12. Reserved

 

9.13.
Notices. All notices, requests and demands to or upon Lender or Guarantor, to be effective, shall be delivered in the manner and
addressed at the applicable address set forth in the Credit Agreement. Guarantor agrees and acknowledges that notice to the
Guarantor may be sent and delivered to the Borrower, as required under the Credit Agreement, and such notice to the Borrower shall
be deemed valid and effective notice to Guarantor hereunder.

 

9.14.
Governing Law. Except in the case of the Mandatory Forum Selection clause set forth in Section 9.12 hereof, this Guaranty
shall be governed by and construed in accordance with the substantive laws of the State of Delaware without reference to conflict of
laws principles.

 

9.15. Joint
and Several Liability. The word “Guarantor” or “Guarantors” shall mean all of the undersigned Persons,
if more than one, and their liability shall be joint and several. The liability of Guarantors shall also be joint and several with
the liability of any other guarantor or obligor of the Obligations, under any other guaranty or other Loan Documents.

 

9.16. Continuing
Enforcement. If, after receipt of any payment of all or any part of the Obligations, Lender is compelled or reasonably agrees,
for settlement purposes, to surrender such payment to any person or entity for any reason (including, without limitation, a
determination that such payment is void or voidable as a preference or fraudulent conveyance, an impermissible setoff, or a
diversion of trust funds), then this Guaranty shall continue in full force and effect or be reinstated, as the case may be, and
Guarantor shall be liable for, and shall indemnify, defend and hold harmless Lender with respect to the full amount so surrendered.
The provisions of this Section shall survive the termination of this Guaranty and shall remain effective notwithstanding the payment
of the Obligations, the cancellation or conversion of the Loan, this Guaranty or any other Loan Document, the release of any
security interest, lien or encumbrance securing the Obligations or any other action which Lender may have taken in reliance upon its
receipt of such payment. Any cancellation, release or other such action shall be deemed to have been conditioned upon any payment of
the Obligations having become final and irrevocable.

 

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9.17.
WAIVER OF JURY TRIAL. GUARANTOR AGREES THAT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY SUIT, ACTION OR PROCEEDING, WHETHER
CLAIM OR COUNTERCLAIM, BROUGHT BY LENDER OR GUARANTOR ON OR WITH RESPECT TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE DEALINGS
OF THE PARTIES WITH RESPECT HERETO OR THERETO, SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY. LENDER AND GUARANTOR HEREBY
KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND INTELLIGENTLY, AND WITH THE ADVICE OF THEIR RESPECTIVE COUNSEL, WAIVE, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING. FURTHER, LENDER AND GUARANTOR
WAIVE ANY RIGHT THEY MAY HAVE TO CLAIM OR RECOVER, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY SPECIAL, EXEMPLARY, PUNITIVE,
CONSEQUENTIAL OR OTHER DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. GUARANTOR ACKNOWLEDGES AND AGREES THAT THIS SECTION IS
A SPECIFIC AND MATERIAL ASPECT OF THIS GUARANTY AND THAT LENDER WOULD NOT HAVE MADE THIS LOAN IF THE WAIVERS SET FORTH IN THIS
SECTION WERE NOT A PART OF THIS GUARANTY.

 

9.18.
Increase in Obligations. This Guaranty shall secure payment of the Obligations, as the amount of such Obligations may increase
from time to time in accordance with the terms and provisions of the Loan Documents, and all of the Obligations, as so increased from
time to time, shall be and are guaranteed hereby.

 

[Signature
page follows]

 

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IN
WITNESS WHEREOF, Guarantor, intending to be legally bound, has duly executed and delivered this Guaranty Agreement as of the day and
year first above written.

 

	LD
    MICRO, INC. 	 
	 	 	 
	By:	 	 
	Name:	[●]	 
	Title:	[●]	 

 

	STATE
    OF _____________________________	 	)	 	 
	 	 	)	SS.	 
	COUNTY
    OF ____________________________	 	)	 	 

 

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DOES HEREBY CERTIFY that [●],
the [●] of LD Micro, Inc., a Delaware corporation, who is personally known to me
to be the same person whose name is subscribed to the foregoing, appeared before me this day in person and acknowledged that he/she signed
and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of said corporation, for the
uses and purposes therein set forth.

 

GIVEN
under my hand and notarial seal this _____ day of ________________, 20____.

 

	 	 
	 	Notary
    Public
	 	 
	 	My
    Commission Expires:
	 	 
	 	

 

    	10Exhibit
10.03

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT (the “Security Agreement”) dated as of August 8, 2022 is executed by SRAX,
INC., a Delaware corporation (the “Debtor”), with its chief executive offices located at 2629 Townsgate
Road, Suite 215, Westlake Village, Ca., 91362, and [ATW OPPORTUNITIES MASTER FUND II, LP] (the “Secured Party”).

 

R
E C I T A L S:

 

WHEREAS,
Debtor desires to borrow funds and obtain financial accommodations from Secured Party pursuant to that certain Senior Secured Revolving
Credit Facility Agreement of even date herewith among Debtor, any additional Credit Parties, and Secured Party (as amended, renewed,
supplemented or modified from time to time, the “Credit Agreement”).

 

NOW,
THEREFORE, in consideration of the credit extended now and in the future by Secured Party to the Debtor and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Debtor and Secured Party hereby agree as follows:

 

A
G R E E M E N T S:

 

1
DEFINITIONS.

 

1.1
Defined Terms. Capitalized terms used but not otherwise defined in this Security Agreement (including the Recitals) shall have
the meanings ascribed to them in the Credit Agreement. For the purposes of this Security Agreement, the following capitalized words and
phrases shall have the meanings set forth below.

 

(a)
“Capital Securities” shall mean, with respect to any Person, all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) of such Person’s capital, whether now outstanding or issued or acquired
after the date hereof, including common shares, preferred shares, membership interests in a limited liability company, limited or general
partnership interests in a partnership or any other equivalent of such ownership interest.

 

(b)
“Collateral” shall have the meaning set forth in Section 2.1 hereof.

 

(c)
“Obligor” shall mean Debtor, or any other party liable with respect to the Obligations.

 

(d)
“Organizational Identification Number” means, with respect to Debtor, the organizational identification number
assigned to Debtor by the applicable governmental unit or agency of the jurisdiction of organization of Debtor, if any.

 

(e)
“Taxes” shall mean any and all present and future taxes, duties, levies, imposts, deductions, assessments,
charges or withholdings, and any and all liabilities (including interest and penalties and other additions to taxes) with respect to
the foregoing.

 

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(f)
“Unmatured Event of Default” shall mean any event which, with the giving of notice, the passage of time or
both, would constitute an Event of Default.

 

1.2
Other Terms Defined in UCC. All other capitalized words and phrases used herein and not otherwise specifically defined herein
or in the Credit Agreement shall have the respective meanings assigned to such terms in the UCC, to the extent the same are used or defined
therein.

 

1.3
Other Interpretive Provisions.

 

(a)
The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms. Whenever the context so requires,
the neutral gender includes the masculine and feminine, the single number includes the plural, and vice versa, and in particular the
word “Debtor” shall be so construed.

 

(b)
Section and Schedule references are to this Security Agreement unless otherwise specified. The words “hereof”, “herein”
and “hereunder” and words of similar import when used in this Security Agreement shall refer to this Security Agreement as
a whole and not to any particular provision of this Security Agreement

 

(c)
The term “including” (or words of similar import) is not limiting, and means “including, without limitation”.

 

(d)
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”.

 

(e)
Unless otherwise expressly provided herein: (i) references to agreements (including this Security Agreement and the other Loan Documents)
and other contractual instruments shall be deemed to include all subsequent amendments, restatements, supplements and other modifications
thereto, but only to the extent such amendments, restatements, supplements and other modifications are not prohibited by the terms of
any Loan Document; and (ii) references to any statute or regulation shall be construed as including all statutory and regulatory provisions
amending, replacing, supplementing or interpreting such statute or regulation.

 

(f)
To the extent any of the provisions of the other Loan Documents are inconsistent with the terms of this Security Agreement, the provisions
of this Security Agreement shall govern.

 

(g)
This Security Agreement and the other Loan Documents may use several different limitations, tests or measurements to regulate the same
or similar matters. All such limitations, tests and measurements are cumulative and each shall be performed in accordance with its terms.

 

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2
SECURITY FOR THE OBLIGATIONS.

 

2.1
Security for Obligations. As security for the payment and performance of the Obligations, Debtor does hereby pledge, assign, transfer,
deliver and grant to Secured Party, for its own benefit and as agent for its Affiliates, a continuing and unconditional priority security
interest in and to any and all property of Debtor, of any kind or description, tangible or intangible, wheresoever located and whether
now existing or hereafter arising or acquired, including the following (all of which property for Debtor, along with the products and
proceeds therefrom, are individually and collectively referred to as the “Collateral”):

 

(a)
all property of, or for the account of, Debtor now or hereafter coming into the possession, control or custody of, or in transit to,
Secured Party or any agent or bailee for Secured Party or any parent, affiliate or subsidiary of Secured Party or any participant with
Secured Party in the Obligations (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise), including
all cash, earnings, dividends, interest, or other rights in connection therewith and the products and proceeds therefrom, including the
proceeds of insurance thereon; and

 

(b)
the additional property of Debtor, whether now existing or hereafter arising or acquired, and wherever now or hereafter located, together
with all additions and accessions thereto, substitutions, betterments and replacements therefor, products and Proceeds therefrom, and
all of Debtor’s books and records and recorded data relating thereto (regardless of the medium of recording or storage), together
with all of Debtor’s right, title and interest in and to all computer software required to utilize, create, maintain and process
any such records or data on electronic media, identified and set forth as follows:

 

(i)
All Accounts and all goods whose sale, lease or other disposition by Debtor has given rise to Accounts and have been returned to, or
repossessed or stopped in transit by, Debtor, or rejected or refused by a Customer;

 

(ii)
All Inventory, including raw materials, work-in-process and finished goods;

 

(iii)
All goods (other than Inventory), including embedded software, Equipment, vehicles, furniture and Fixtures;

 

(iv)
All Software and computer programs;

 

(v)
All Securities, Investment Property, Financial Assets and Deposit Accounts, and all funds at any time deposited therewith, and all funds
and amounts reserved or held back by any Payment Processing Companies;

 

(vi)
All As-Extracted Collateral, Commodity Accounts, Commodity Contracts, and Farm Products;

 

(vii)
All Chattel Paper, Electronic Chattel Paper, Instruments, Documents, Letter of Credit Rights, all proceeds of letters of credit, Health-Care-Insurance
Receivables, Supporting Obligations, notes secured by real estate, Commercial Tort Claims and General Intangibles, including Payment
Intangibles; and

 

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(viii)
All real estate property owned by Debtor and the interest of Debtor in fixtures related to such real property;

 

(ix)
All Proceeds (whether Cash Proceeds or Non-cash Proceeds) of the foregoing property, including all insurance policies and proceeds of
insurance payable by reason of loss or damage to the foregoing property, including unearned premiums, and of eminent domain or condemnation
awards.

 

2.2
Possession and Transfer of Collateral. Until an Event of Default has occurred, but subject to Secured Party’s rights under
the Credit Agreement, Debtor shall be entitled to possession and use of the Collateral (other than Instruments or Documents (including
Tangible Chattel Paper and Investment Property consisting of certificated securities) and other Collateral required to be delivered to
Secured Party pursuant to this Section 2). The cancellation or surrender of any promissory note evidencing an Obligation, upon
payment or otherwise, shall not affect the right of Secured Party to retain the Collateral for any other of the Obligations, except upon
payment in full of the Obligations. Debtor shall not sell, assign (by operation of law or otherwise), license, lease or otherwise dispose
of, or grant any option with respect to any of the Collateral, except as permitted pursuant to the Credit Agreement.

 

2.3
Financing Statements. Debtor authorizes Secured Party to prepare and file such financing statements, amendments and other documents
and do such acts as Secured Party deems necessary in order to establish and maintain valid, attached and perfected, first priority security
interests in the Collateral in favor of Secured Party, for its own benefit and as agent for its Affiliates, free and clear of all Liens
and claims and rights of third parties whatsoever, except Permitted Liens. Debtor hereby irrevocably authorizes Secured Party at any
time, and from time to time, to file in any jurisdiction any initial financing statements and amendments thereto that: (a) indicate the
Collateral: (i) is comprised of all assets of Debtor (or words of similar effect), regardless of whether any particular asset comprising
a part of the Collateral falls within the scope of Article 9 of the UCC of the jurisdiction wherein such financing statement or amendment
is filed; or (ii) as being of an equal or lesser scope or within greater detail as the grant of the security interest set forth herein;
and (b) contain any other information required by Section 5 of Article 9 of the UCC of the jurisdiction wherein such financing statement
or amendment is filed regarding the sufficiency or filing office acceptance of any financing statement or amendment, including: (A) whether
Debtor is an organization, the type of organization and any Organizational Identification Number issued to Debtor; and (B) in the case
of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient
description of the real property to which the Collateral relates. Debtor agrees to furnish any such information to Secured Party promptly
upon request. In addition, Debtor shall make appropriate entries on its books and records disclosing the security interests of Secured
Party, for its own benefit and as agent for its Affiliates, in the Collateral. Debtor hereby agrees that a photogenic or other reproduction
of this Security Agreement is sufficient for filing as a financing statement and Debtor authorizes Secured Party to file this Security
Agreement as a financing statement in any jurisdiction.

 

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2.4
Preservation of the Collateral. Secured Party may, but is not required to, take such actions from time to time as Secured Party
deems appropriate to maintain or protect the Collateral. Secured Party shall have exercised reasonable care in the custody and preservation
of the Collateral if Secured Party takes such action as Debtor shall reasonably request in writing which is not inconsistent with Secured
Party’s status as a secured party, but the failure of Secured Party to comply with any such request shall not be deemed a failure
to exercise reasonable care; provided, however, Secured Party’s responsibility for the safekeeping of the Collateral
shall: (i) be deemed reasonable if such Collateral is accorded treatment substantially equal to that which Secured Party accords its
own property; and (ii) not extend to matters beyond the control of Secured Party, including acts of God, war, insurrection, riot or governmental
actions. In addition, any failure of Secured Party to preserve or protect any rights with respect to the Collateral against prior or
third parties, or to do any act with respect to preservation of the Collateral, not so requested by Debtor, shall not be deemed a failure
to exercise reasonable care in the custody or preservation of the Collateral. Debtor shall have the sole responsibility for taking such
action as may be necessary, from time to time, to preserve all rights of Debtor and Secured Party in the applicable Collateral against
prior or third parties.

 

2.5
Other Actions as to any and all Collateral. Debtor further agrees to take any other action reasonably requested by Secured Party
to ensure the attachment, perfection and first priority of, and the ability of Secured Party to enforce, the security interest of Secured
Party, for its own benefit and as agent for its Affiliates, in any and all of the Collateral, including: (i) causing Secured Party’s
name to be noted as secured party on any certificate of title for a titled good if such notation is a condition to attachment, perfection
or priority of, or ability of the bank to enforce, the security interest of Secured Party, for its own benefit and as agent for its Affiliates,
in such Collateral; (ii) complying with any provision of any statute, regulation or treaty of the United States as to any material portion
of the Collateral as soon as possible but not more than forty-five (45) days after such request if compliance with such provision is
a condition to attachment, perfection or priority of, or ability of Secured Party to enforce, the security interest of Secured Party,
for its own benefit and as agent for its Affiliates, in such Collateral; (iii) obtaining governmental and other third party consents
and approvals, including, without limitation, any consent of any licensor, lessor or other Person with authority or control over or an
interest in any material portion of the Collateral as soon as possible but not more than forty-five (45) days after such request; (iv)
obtaining waivers from mortgagees and landlords in form and substance reasonably satisfactory to Secured Party which affect any material
portion of the Collateral as soon as possible but not more than forty-five (45) days after such request; and (v) taking all actions required
by the UCC in effect from time to time or by other law, as applicable in any relevant UCC jurisdiction, or by other law as applicable
in any foreign jurisdiction. Debtor further agrees to indemnify and hold Secured Party harmless against claims of any Persons not a party
to this Security Agreement concerning disputes arising over the Collateral, except to the extent resulting from the gross negligence
or willful misconduct of Secured Party or its Affiliates.

 

2.6
Collateral in the Possession of a Warehouseman or Bailee. If any material portion of the Collateral at any time is in the possession
of a warehouseman or bailee, Debtor shall promptly notify Secured Party thereof, and, as soon as possible, but not more than forty-five
(45) days later, shall obtain a Collateral Access Agreement in form and substance reasonably satisfactory to Secured Party from such
warehouseman or bailee.

 

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2.7
Letter-of-Credit Rights. If Debtor at any time is a beneficiary under a letter of credit now or hereafter issued in favor of Debtor,
Debtor shall promptly notify Secured Party thereof and, at the request and option of Secured Party, Debtor shall, pursuant to an agreement
in form and substance reasonably satisfactory to Secured Party, either: (i) arrange for the issuer and any confirmer of such letter of
credit to consent to an assignment to Secured Party, for its own benefit and as agent for its Affiliates, of the proceeds of any drawing
under the letter of credit; or (ii) arrange for Secured Party, for its own benefit and as agent for its Affiliates, to become the transferee
beneficiary of the letter of credit, with Secured Party agreeing, in each case, that the proceeds of any drawing under the letter to
credit are to be applied as provided in the Credit Agreement.

 

2.8
Commercial Tort Claims. If Debtor shall at any time hold or acquire a Commercial Tort Claim, Debtor shall promptly notify Secured
Party in writing signed by Debtor of the details thereof and grant to Secured Party, for its own benefit and as agent for its Affiliates,
in such written notice or other written instrument, a security interest therein and in the proceeds thereof, all upon the terms of this
Security Agreement, in each case in form and substance reasonably satisfactory to Secured Party, and shall execute any amendments hereto
deemed reasonably necessary by Secured Party to perfect the security interest of Secured Party, for its own benefit and as agent for
its Affiliates, in such Commercial Tort Claim.

 

2.9
Electronic Chattel Paper and Transferable Records. If Debtor at any time holds or acquires an interest in any electronic chattel
paper or any “transferable record”, as that term is defined in Section 201 of the federal Electronic Signatures in Global
and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, Debtor
shall promptly notify Secured Party thereof and, at the request of Secured Party, shall take such action as Secured Party may reasonably
request to vest in Secured Party control under Section 9-105 of the UCC of such electronic chattel paper or control under Section 201
of the federal Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic
Transactions Act, as so in effect in such jurisdiction, of such transferable record. Secured Party agrees with Debtor that Secured Party
will arrange, pursuant to procedures reasonably satisfactory to Secured Party and so long as such procedures will not result in Secured
Party’s loss of control, for Debtor to make alterations to the electronic chattel paper or transferable record permitted under
Section 9-105 of the UCC or, as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act
or Section 16 of the Uniform Electronic Transactions Act, for a party in control to make without loss of control.

 

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2.10
Additional Requirements on Collateral. Debtor shall fully cooperate with Secured Party to obtain and keep in effect one or more
control agreements in Deposit Accounts, Electronic Chattel Paper, Investment Property and Letter-of-Credit Rights Collateral. Such control
agreements shall only be required if, in the reasonable discretion of the Secured Party, the nature of the Collateral requires any such
control agreements in order for the Secured Party to perfect its security interests in any Collateral as granted hereunder, and in such
event, Debtor shall promptly provide any such control agreements upon request from the Secured Party. In addition, Debtor, at the Debtor’s
expense, shall promptly: (A) execute all notices of security interest for each relevant type of Software and other General Intangibles
in forms suitable for filing with any United States or foreign office handling the registration or filing of patents, trademarks, copyrights
and other intellectual property and any successor office or agency thereto; and (B) take all commercially reasonable steps in any hearing,
suit, action, or other proceeding before any such office or any similar office or agency in any other country or any political subdivision
thereof, to diligently prosecute or maintain, as applicable, each application and registration of any Software, General Intangibles or
any other intellectual property rights and assets that are part of the Collateral, including filing of renewals, affidavits of use, affidavits
of incontestability and opposition, interference and cancellation proceedings.

 

3
REPRESENTATIONS AND WARRANTIES.

 

Except
as set forth in the Disclosure Schedules attached hereto (“Security Disclosure Schedules”), which Security Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained
in the Security Disclosure Schedules, Debtor makes the following representations and warranties to Secured Party:

 

3.1
Debtor Organization and Name. Debtor is a corporation, duly organized, existing and in good standing under the laws of its State
of organization, with full and adequate power to carry on and conduct its business as presently conducted. Debtor is duly licensed or
qualified in all foreign jurisdictions wherein the nature of its activities requires such qualification or licensing. Debtor’s
Organizational Identification Number, if applicable, is set forth in the Credit Agreement. The exact legal name of Debtor is as set forth
in the first paragraph of this Security Agreement, and Debtor currently does not conduct, nor has it during the last five (5) years conducted,
business under any other name or trade name, except for Compliance Systems Corporation.

 

3.2
Authorization. Debtor has full right, power and authority to enter into this Security Agreement and to perform all of its duties
and obligations under this Security Agreement. The execution and delivery of this Security Agreement and the other Loan Documents will
not, nor will the observance or performance of any of the matters and things herein or therein set forth, violate or contravene any provision
of law or of the articles of incorporation, bylaws, operating agreement, or other governing documents of Debtor. All necessary and appropriate
action has been taken on the part of Debtor to authorize the execution and delivery of this Security Agreement.

 

3.3
Validity and Binding Nature. This Security Agreement is the legal, valid and binding obligation of Debtor, enforceable against
Debtor in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’
rights generally and to general principles of equity.

 

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3.4
Consent; Absence of Breach. Except as set forth in Schedule 3.4 attached hereto, the execution, delivery and performance
of this Security Agreement and any other documents or instruments to be executed and delivered by Debtor in connection herewith, do not
and will not: (a) require any consent, approval, authorization, or filings with, notice to or other act by or in respect of, any governmental
authority or any other Person (other than filings or notices pursuant to federal or state securities laws or other than any consent or
approval which has been obtained and is in full force and effect); (b) conflict with: (i) any provision of law or any applicable regulation,
order, writ, injunction or decree of any court or governmental authority; (ii) the articles of incorporation, bylaws, or other organic
or governance document of Debtor; or (iii) any agreement, indenture, instrument or other document, or any judgment, order or decree,
which is binding upon Debtor or any of its properties or assets; or (c) require, or result in, the creation or imposition of any Lien
on any asset of Debtor, other than Liens in favor of Secured Party created pursuant to this Security Agreement and Permitted Liens.

 

3.5
Ownership of Collateral; Liens. Debtor is the sole owner of all the Collateral, free and clear of all Liens, charges and claims
(including infringement claims with respect to patents, trademarks, service marks, copyrights and other intellectual property rights),
other than Permitted Liens.

 

3.6
Adverse Circumstances. No condition, circumstance, event, agreement, document, instrument, restriction, litigation or proceeding
(or threatened litigation or proceeding or basis therefor) exists which: (i) would have a Material Adverse Effect upon Debtor; or (ii)
would constitute an Event of Default or an Unmatured Event of Default.

 

3.7
Security Interest. This Security Agreement creates a valid security interest in favor of Secured Party in the Collateral and,
when properly perfected by filing in the appropriate jurisdictions, or by possession or control of such Collateral by Secured Party or
delivery of such Collateral to Secured Party, shall constitute a valid, perfected, priority security interest in such Collateral.

 

3.8
Place of Business. The principal place of business and books and records of Debtor is set forth in the preamble to this Security
Agreement, and the location of all Collateral, if other than at such principal place of business, is as set forth on Schedule 3.8
attached hereto and made a part hereof, and Debtor shall promptly notify Secured Party of any change in such locations. Debtor
will not remove or permit the Collateral to be removed from such locations without the prior written consent of Secured Party, except
as permitted pursuant to the Credit Agreement.

 

3.9
Complete Information. This Security Agreement and all financial statements, schedules, certificates, confirmations, agreements,
contracts, and other materials and information heretofore or contemporaneously herewith furnished in writing by Debtor to Secured Party
for purposes of, or in connection with, this Security Agreement and the transactions contemplated hereby is, and all written information
hereafter furnished by or on behalf of Debtor to Secured Party pursuant hereto or in connection herewith will be, true and accurate in
every material respect on the date as of which such information is dated or certified, and none of such information is or will be incomplete
by omitting to state any material fact necessary to make such information not misleading in light of the circumstances under which made
(it being recognized by Secured Party that any projections and forecasts provided by Debtor are based on good faith estimates and assumptions
believed by Debtor to be reasonable as of the date of the applicable projections or assumptions and that actual results during the period
or periods covered by any such projections and forecasts may differ from projected or forecasted results).

 

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4
REMEDIES.

 

Upon
the occurrence of any default in the payment or performance of any of the covenants, conditions and agreements contained in this Security
Agreement or any other Event of Default, Secured Party shall have all rights, powers and remedies set forth in this Security Agreement
or the other Loan Documents or in any other written agreement or instrument relating to any of the Obligations or any security therefor,
as a secured party under the UCC or as otherwise provided at law or in equity. Debtor hereby waives any and all presentment, demand,
notice of dishonor, protest, and all other notices and demands in connection with the enforcement of Secured Party’s rights under
the Loan Documents, and hereby consents to, and waives notice of release, with or without consideration, of any Collateral, notwithstanding
anything contained herein or in the Loan Documents to the contrary. In addition to the foregoing:

 

4.1
Possession and Assembly of Collateral. Secured Party may, without notice, demand or the initiation of legal process of any kind,
take possession of any or all of the Collateral (in addition to Collateral of which Secured Party already has possession), wherever it
may be found, and for that purpose may pursue the same wherever it may be found, and may at any time enter into any of Debtor’s
premises where any of the Collateral may be or is supposed to be, and search for, take possession of, remove, keep and store any of the
Collateral until the same shall be sold or otherwise disposed of and Secured Party shall have the right to store and conduct a sale of
the same in any of Debtor’s premises without cost to Secured Party. At Secured Party’s request, Debtor will, at Debtor’s
sole expense, assemble the Collateral and make it available to Secured Party at a place or places to be designated by Secured Party which
is reasonably convenient to Secured Party and Debtor.

 

4.2
Sale of Collateral. Secured Party may sell any or all of the Collateral at public or private sale, upon such terms and conditions
as Secured Party may deem proper, and Secured Party may purchase any or all of the Collateral at any such sale. Debtor acknowledges that
Secured Party may be unable to effect a public sale of all or any portion of the Collateral because of certain legal and/or practical
restrictions and provisions which may be applicable to the Collateral and, therefore, may be compelled to resort to one or more private
sales to a restricted group of offerees and purchasers. Debtor consents to any such private sale so made even though at places and upon
terms less favorable than if the Collateral were sold at public sale. Secured Party shall have no obligation to clean-up or otherwise
prepare the Collateral for sale. Secured Party may apply the net proceeds, after deducting all costs, expenses, attorneys’ and
paralegals’ fees incurred or paid at any time in the collection, protection and sale of the Collateral and the Obligations, to
the payment of the Obligations, returning the excess proceeds, if any, to Debtor. Debtor shall remain liable for any amount remaining
unpaid after such application, with interest at the Default Rate. Any notification of intended disposition of the Collateral required
by law shall be conclusively deemed reasonably and properly given if given by Secured Party at least ten (10) calendar days before the
date of such disposition. Debtor hereby confirms, approves and ratifies all commercially reasonable acts and deeds of Secured Party relating
to the foregoing, and each part thereof, and expressly waives any and all claims of any nature, kind or description which it has or may
hereafter have against Secured Party or its representatives, by reason of taking, selling or collecting any portion of the Collateral
in a commercially reasonable manner. Debtor consents to releases of the Collateral at any time (including prior to default) and to sales
of the Collateral in groups, parcels or portions, or as an entirety, as Secured Party shall deem appropriate. Debtor expressly absolves
Secured Party from any loss or decline in market value of any Collateral by reason of delay in the enforcement or assertion or non-enforcement
of any rights or remedies under this Security Agreement.

 

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4.3
Standards for Exercising Remedies. All actions taken by Secured Party will be required to be exercised in a commercially reasonable
manner. Debtor acknowledges and agrees that it is not commercially unreasonable for Secured Party: (i) to incur expenses deemed necessary
by Secured Party to prepare Collateral for disposition or otherwise to complete raw material or work-in-process into finished goods or
other finished products for disposition; (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to
obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection or disposition of
Collateral to be collected or disposed of; (iii) to fail to exercise collection remedies against Customers or other Persons obligated
on Collateral or to remove liens or encumbrances on or any adverse claims against Collateral; (iv) to exercise collection remedies against
Customers and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists;
(v) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of
a specialized nature; (vi) to contact other Persons, whether or not in the same business as Debtor, for expressions of interest in acquiring
all or any portion of the Collateral; (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral,
whether or not the Collateral is of a specialized nature; (viii) to dispose of Collateral by utilizing internet sites that provide for
the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers
and sellers of assets; (ix) to dispose of assets in wholesale rather than retail markets; (x) to disclaim disposition warranties, including
any warranties of title; (xi) to purchase insurance or credit enhancements to insure Secured Party against risks of loss, collection
or disposition of Collateral or to provide to Secured Party a guaranteed return from the collection or disposition of Collateral; or
(xii) to the extent deemed appropriate by Secured Party, to obtain the services of other brokers, investment bankers, consultants and
other professionals to assist Secured Party in the collection or disposition of any of the Collateral. Debtor acknowledges that the purpose
of this section is to provide non-exhaustive indications of what actions or omissions by Secured Party would not be commercially unreasonable
in Secured Party’s exercise of remedies against the Collateral and that other actions or omissions by Secured Party shall not be
deemed commercially unreasonable solely on account of not being indicated in this Section. Without limitation upon the foregoing, nothing
contained in this Section shall be construed to grant any rights to Debtor or to impose any duties on Secured Party that would not have
been granted or imposed by this Security Agreement or by applicable law in the absence of this Section.

 

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4.4
UCC and Offset Rights. Secured Party may exercise, from time to time, any and all rights and remedies available to it under the
UCC or under any other applicable law in addition to, and not in lieu of, any rights and remedies expressly granted in this Security
Agreement or in any other agreements between any Obligor and Secured Party, and may, without demand or notice of any kind, appropriate
and apply toward the payment of such of the Obligations, whether matured or unmatured, including costs of collection and attorneys’
and paralegals’ fees and costs, and in such order of application as Secured Party may, from time to time, elect, any indebtedness
of Secured Party to any Obligor, however created or arising, including balances, credits, deposits, accounts or moneys of such Obligor
in the possession, control or custody of, or in transit to Secured Party. Debtor, on behalf of itself and any Obligor, hereby waives
the benefit of any law that would otherwise restrict or limit Secured Party in the exercise of its right, which is hereby acknowledged,
to appropriate at any time hereafter any such indebtedness owing from Secured Party to any Obligor.

 

4.5
Additional Remedies. Upon the occurrence of an Event of Default, Secured Party shall have the right and power to:

 

(a)
instruct Debtor, at its own expense, to notify any parties obligated on any of the Collateral, including any Customers and Payment Processing
Companies, to make payment directly to Secured Party of any amounts due or to become due thereunder, or Secured Party may directly notify
such obligors of the security interest of Secured Party, and/or of the assignment to Secured Party of the Collateral and direct such
obligors to make payment to Secured Party of any amounts due or to become due with respect thereto, and thereafter, collect any such
amounts due on the Collateral directly from such Persons obligated thereon;

 

(b)
enforce collection of any of the Collateral, including any Accounts, by suit or otherwise, or make any compromise or settlement with
respect to any of the Collateral, or surrender, release or exchange all or any part thereof, or compromise, extend or renew for any period
(whether or not longer than the original period) any indebtedness thereunder;

 

(c)
take possession or control of any proceeds and products of any of the Collateral, including the proceeds of insurance thereon;

 

(d)
extend, renew or modify for one or more periods (whether or not longer than the original period) the Obligations or any obligation of
any nature of any other obligor with respect to the Obligations;

 

(e)
grant releases, compromises or indulgences with respect to the Obligations, any extension or renewal of any of the Obligations, any security
therefor, or to any other obligor with respect to the Obligations;

 

(f)
transfer the whole or any part of Capital Securities which may constitute Collateral into the name of Secured Party or Secured Party’s
nominee without disclosing, if Secured Party so desires, that such Capital Securities so transferred are subject to the security interest
of Secured Party, and any corporation, association, or any of the managers or trustees of any trust issuing any of such Capital Securities,
or any transfer agent, shall not be bound to inquire, in the event that Secured Party or such nominee makes any further transfer of such
Capital Securities, or any portion thereof, as to whether Secured Party or such nominee has the right to make such further transfer,
and shall not be liable for transferring the same;

 

(g)
vote the Collateral;

 

    	11

     

    

 

(h)
make an election with respect to the Collateral under Section 1111 of the Bankruptcy Code or take action under Section 364 or any other
section of Bankruptcy Code; provided, however, that any such action of Secured Party as set forth herein shall not, in
any manner whatsoever, impair or affect the liability of Debtor hereunder, nor prejudice, waive, nor be construed to impair, affect,
prejudice or waive Secured Party’s rights and remedies at law, in equity or by statute, nor release, discharge, nor be construed
to release or discharge, Debtor, any guarantor or other Person liable to Secured Party for the Obligations; and

 

(i)
at any time, and from time to time, accept additions to, releases, reductions, exchanges or substitution of the Collateral, without in
any way altering, impairing, diminishing or affecting the provisions of this Security Agreement, the Loan Documents, or any of the other
Obligations, or Secured Party’s rights hereunder, under the Obligations.

 

Debtor
hereby ratifies and confirms whatever Secured Party may do with respect to the Collateral and agrees that Secured Party shall not be
liable for any error of judgment or mistakes of fact or law with respect to actions taken in connection with the Collateral.

 

4.6
Attorney-in-Fact. Debtor hereby irrevocably makes, constitutes and appoints Secured Party (and any officer of Secured Party or
any Person designated by Secured Party for that purpose) as Debtor’s true and lawful proxy and attorney-in-fact (and agent-in-fact)
in Debtor’s name, place and stead, with full power of substitution, to: (i) take such actions as are permitted in this Security
Agreement; (ii) execute such financing statements and other documents and to do such other acts as Secured Party may require to perfect
and preserve Secured Party’s security interest in, and to enforce such interests in the Collateral; and (iii) upon the occurrence
of an Event of Default, carry out any remedy provided for in this Security Agreement, the Credit Agreement, or otherwise at law or in
equity, including endorsing Debtor’s name to checks, drafts, instruments and other items of payment, and proceeds of the Collateral,
executing change of address forms with the postmaster of the United States Post Office serving the address of Debtor, changing the address
of Debtor to that of Secured Party, opening all envelopes addressed to Debtor and applying any payments contained therein to the Obligations,
and changing any merchant accounts or instructions to Payment Processing Companies regarding any credit/debit card payments from Customers.
Debtor hereby acknowledges that the constitution and appointment of such proxy and attorney-in-fact are coupled with an interest and
are irrevocable. Debtor hereby ratifies and confirms all that such attorney-in-fact may do or cause to be done by virtue of any provision
of this Security Agreement.

 

4.7
No Marshaling. Secured Party shall not be required to marshal any present or future collateral security (including this Security
Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral
security or other assurances of payment in any particular order. To the extent that it lawfully may, Debtor hereby agrees that it will
not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of Secured Party’s
rights under this Security Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of
the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent
that it lawfully may, Debtor hereby irrevocably waives the benefits of all such laws.

 

    	12

     

    

 

4.8
No Waiver. No Event of Default shall be waived by Secured Party except in writing. No failure or delay on the part of Secured
Party in exercising any right, power or remedy hereunder shall operate as a waiver of the exercise of the same or any other right at
any other time; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy hereunder. There shall be no obligation on the part of Secured Party to exercise
any remedy available to Secured Party in any order. The remedies provided for herein are cumulative and not exclusive of any remedies
provided at law or in equity. Debtor agrees that in the event that Debtor fails to perform, observe or discharge any of its Obligations
or liabilities under this Security Agreement or any other agreements with Secured Party, no remedy of law will provide adequate relief
to Secured Party, and further agrees that Secured Party shall be entitled to temporary and permanent injunctive relief in any such case
without the necessity of proving actual damages.

 

4.9
Application of Proceeds. Secured Party will, within three (3) Business Days after receipt of cash or solvent credits from collection
of items of payment, proceeds of Collateral or any other source, apply the whole or any part thereof against the Obligations secured
hereby. Secured Party shall further have the exclusive right to determine how, when and what application of such payments and such credits
shall be made on the Obligations, and such determination shall be conclusive upon Debtor. Any proceeds of any disposition by Secured
Party of all or any part of the Collateral may be first applied by Secured Party to the payment of expenses incurred by Secured Party
in connection with the Collateral, including reasonable attorneys’ fees and legal expenses and costs as provided for in Section
5.13 hereof.

 

5
MISCELLANEOUS.

 

5.1
Entire Agreement. This Security Agreement and the other Loan Documents: (i) are valid, binding and enforceable against Debtor
and Secured Party in accordance with their respective provisions and no conditions exist as to their legal effectiveness; (ii) constitute
the entire agreement between the parties with respect to the subject matter hereof and thereof; and (iii) are the final expression of
the intentions of Debtor and Secured Party. No promises, either expressed or implied, exist between Debtor and Secured Party, unless
contained herein or therein. This Security Agreement, together with the other Loan Documents, supersedes all negotiations, representations,
warranties, commitments, term sheets, discussions, negotiations, offers or contracts (of any kind or nature, whether oral or written)
prior to or contemporaneous with the execution hereof with respect to any matter, directly or indirectly related to the terms of this
Security Agreement and the other Loan Documents. This Security Agreement and the other Loan Documents are the result of negotiations
between Secured Party and Debtor and have been reviewed (or have had the opportunity to be reviewed) by counsel to all such parties,
and are the products of all parties. Accordingly, this Security Agreement and the other Loan Documents shall not be construed more strictly
against Secured Party merely because of Secured Party’s involvement in their preparation.

 

    	13

     

    

 

5.2
Amendments; Waivers. No delay on the part of Secured Party in the exercise of any right, power or remedy shall operate as a waiver
thereof, nor shall any single or partial exercise by Secured Party of any right, power or remedy preclude other or further exercise thereof,
or the exercise of any other right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any provision
of this Security Agreement or the other Loan Documents shall in any event be effective unless the same shall be in writing and acknowledged
by Secured Party, and then any such amendment, modification, waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

 

5.3
WAIVER OF DEFENSES. DEBTOR WAIVES EVERY PRESENT AND FUTURE DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH DEBTOR MAY NOW
HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY SECURED PARTY IN ENFORCING THIS SECURITY AGREEMENT. PROVIDED SECURED PARTY ACTS IN GOOD FAITH,
DEBTOR RATIFIES AND CONFIRMS WHATEVER SECURED PARTY MAY DO PURSUANT TO THE TERMS OF THIS SECURITY AGREEMENT. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR SECURED PARTY GRANTING ANY FINANCIAL ACCOMMODATION TO DEBTOR.

 

5.4
Reserved.

 

5.5
WAIVER OF JURY TRIAL. DEBTOR AND SECURED PARTY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS
UNDER THIS SECURITY AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT, ANY OF THE OTHER OBLIGATIONS, THE COLLATERAL, OR ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING
RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF CONDUCT OR COURSE OF DEALING IN WHICH SECURED PARTY AND
DEBTOR ARE ADVERSE PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. THIS
PROVISION IS A MATERIAL INDUCEMENT FOR SECURED PARTY GRANTING ANY FINANCIAL ACCOMMODATION TO DEBTOR.

 

5.6
Assignability. Secured Party, without consent from or notice to anyone, may at any time assign Secured Party’s rights in
this Security Agreement, the other Loan Documents, the Obligations, or any part thereof and transfer Secured Party’s rights in
any or all of the Collateral, and Secured Party thereafter shall be relieved from all liability with respect to such Collateral. This
Security Agreement shall be binding upon Secured Party and Debtor and its respective legal representatives and successors. All references
herein to Debtor shall be deemed to include any successors, whether immediate or remote. In the case of a joint venture or partnership,
the term “Debtor” shall be deemed to include all joint venturers or partners thereof, who shall be jointly and severally
liable hereunder.

 

    	14

     

    

 

5.7
Binding Effect. This Security Agreement shall become effective upon execution by Debtor and Secured Party, and shall bind the
Debtor and Secured Party, and their respective successors and permitted assigns.

 

5.8
Governing Law/Venue. This Agreement shall be delivered and accepted in, and shall be deemed to be contracts made under and governed
by, the internal laws of the State of Delaware, and for all purposes shall be construed in accordance with the laws of the State of Delaware,
without giving effect to the choice of law provisions of such State. The governing law provisions of this Section 5.8 are a material
inducement for Secured Party to enter into this Agreement, and the Debtor hereby agrees, acknowledges and understands that the Secured
Party would not have entered into this Agreement, nor made or provided the Loans, without the full agreement and consent of the Debtor,
with full knowledge and understanding, this Agreement shall be governed by the internal laws of the State of Delaware, and for all purposes
shall be construed in accordance with the laws of the State of New York, without giving effect to the choice of law provisions. In this
regard, Debtor hereby acknowledges that it has reviewed this Agreement and specifically, this Section 5.8, with competent counsel selected
by the Debtor and fully understands the choice of law provisions set forth in this Section. Each party agrees that all legal proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement shall be commenced exclusively
in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein.

 

5.9
Enforceability. Wherever possible, each provision of this Security Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Security Agreement shall be prohibited by, unenforceable or invalid under
any jurisdiction, such provision shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition or
invalidity, without invalidating the remaining provisions of this Security Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

 

5.10
Time of Essence. Time is of the essence in making payments of all amounts due Secured Party under the Loan Documents and in the
performance and observance by Debtor of each covenant, agreement, provision and term of this Security Agreement and the other Loan Documents.

 

5.11
Counterparts; Facsimile Signatures. This Security Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same Security Agreement. Receipt of an executed signature page to this Security Agreement by facsimile
or other electronic transmission shall constitute effective delivery thereof. Electronic records of executed Loan Documents maintained
by Secured Party shall be deemed to be originals thereof.

 

    	15

     

    

 

5.12
Notices. Except as otherwise provided herein, Debtor waives all notices and demands in connection with the enforcement of Secured
Party’s rights hereunder. All notices, requests, demands and other communications provided for hereunder shall be made in accordance
with the terms of the Credit Agreement.

 

5.13
Costs, Fees and Expenses. Debtor shall pay or reimburse Secured Party for all reasonable costs, fees and expenses incurred by
Secured Party or for which Secured Party becomes obligated in connection with the enforcement of this Security Agreement, including search
fees, costs and expenses and attorneys’ fees, costs and time charges of counsel to Secured Party and all taxes payable in connection
with this Security Agreement. In furtherance of the foregoing, Debtor shall pay any and all stamp and other taxes, UCC search fees, filing
fees and other costs and expenses in connection with the execution and delivery of this Security Agreement and the other Loan Documents
to be delivered hereunder, and agrees to save and hold Secured Party harmless from and against any and all liabilities with respect to
or resulting from any delay in paying or omission to pay such costs and expenses. That portion of the Obligations consisting of costs,
expenses or advances to be reimbursed by Debtor to Secured Party pursuant to this Security Agreement or the other Loan Documents which
are not paid on or prior to the date hereof shall be payable by Debtor to Secured Party on demand. If at any time or times hereafter
Secured Party: (a) employs counsel for advice or other representation: (i) with respect to this Security Agreement or the other Loan
Documents; (ii) to represent Secured Party in any litigation, contest, dispute, suit or proceeding or to commence, defend, or intervene
or to take any other action in or with respect to any litigation, contest, dispute, suit, or proceeding (whether instituted by Secured
Party, Debtor, or any other Person) in any way or respect relating to this Security Agreement; or (iii) to enforce any rights of Secured
Party against Debtor or any other Person under of this Security Agreement; (b) takes any action to protect, collect, sell, liquidate,
or otherwise dispose of any of the Collateral; and/or (c) attempts to or enforces any of Secured Party’s rights or remedies under
this Security Agreement, the costs and expenses incurred by Secured Party in any manner or way with respect to the foregoing, shall be
part of the Obligations, payable by Debtor to Secured Party on demand.

 

5.14
Termination. This Security Agreement and the Liens and security interests granted hereunder shall not terminate until the termination
of the Credit Agreement and the commitments to make Loans thereunder and the full and complete performance and satisfaction and payment
in full of all the Obligations (other than contingent indemnification obligations to the extent no claim giving rise thereto has been
asserted). Upon termination of this Security Agreement, Secured Party shall also deliver to Debtor (at the sole expense of Debtor) such
UCC termination statements, certificates for terminating the liens on the Motor Vehicles (if any) and such other documentation, without
recourse, warranty or representation whatsoever, as shall be reasonably requested by Debtor to effect the termination and release of
the Liens and security interests in favor of Secured Party affecting the Collateral; provided, however, to the extent any such terminations
or releases require Secured Party to expend any sums in terminating or releasing any such Liens, Secured Party may refrain from terminating
or releasing such Liens unless and until Debtor pays to Secured Party the estimated cost, as reasonably determined by Secured Party,
of effectuating such terminations or releases.

 

    	16

     

    

 

5.15
Reinstatement. This Security Agreement shall remain in full force and effect and continue to be effective should any petition
be filed by or against Debtor for liquidation or reorganization, should Debtor become insolvent or make an assignment for the benefit
of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of Debtor’s assets, and
shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any
part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee
of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though
such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or
returned.

 

5.16
Increase in Obligations. It is the intent of the parties to secure payment of the Obligations, as the amount of such Obligations
may increase from time to time in accordance with the terms and provisions of the Loan Documents, and all of the Obligations, as so increased
from time to time, shall be and are secured hereby. Upon the execution hereof, Debtor shall pay any and all documentary stamp taxes and/or
other charges required to be paid in connection with the execution and enforcement of the Loan Documents, and if, as and to the extent
the Obligations are increased from time to time in accordance with the terms and provisions of the Loan Documents, then Debtor shall
immediately pay any additional documentary stamp taxes or other charges in connection therewith.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	17

     

    

 

IN
WITNESS WHEREOF, Debtor and Secured Party have executed this Security Agreement as of the date first above written.

 

	 	Debtor:
	 	 	 
	 	SRAX,
    INC. 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	Chief
    Executive Officer

 

	STATE
    OF ____________ )	 	 
	 	SS.	 
	COUNTY
    OF ____________ )	 	 

 

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DOES HEREBY CERTIFY that _________________, Chief Executive
Officer of SRAX, INC., a Delaware corporation, who is personally known to me to be the same person whose name is subscribed to the foregoing,
appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument as his/her own free and voluntary
act and as the free and voluntary act of said corporation, for the uses and purposes therein set forth.

 

GIVEN
under my hand and notarial seal this _____ day of ________________, 20____.

 

	 	
	 	Notary
    Public
	 	 
	 	My
    Commission Expires:
	 	 
	 	

 

[Signature
Page –Security Agreement (Borrower)]

 

    	 

     

    

 

IN
WITNESS WHEREOF, Debtor and Secured Party have executed this Security Agreement as of the date first above written.

 

	 	Agreed
    and accepted:
	 	 	 
	 	Secured
    Party:
	 	 	 
	 	[ATW
    OPPORTUNITIES MASTER FUND II, LP]
	 	 	 
	 	By:	 
	 	Its:	General
    Partner
	 	By:	

 

[Signature
Page –Security Agreement (Borrower)]

 

    	 

     

    

 

Schedule
3.8 

 

Collateral
Locations/Places of Business

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