Document:

Exhibit
10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

Oppenheimer
& Co. Inc. 

Drexel
Hamilton, LLC 

c/o
Oppenheimer & Co. Inc. 

85
Broad Street 

New
York, New York 10004 

 

Ladies
and Gentlemen:

 

Akoustis
Technologies, Inc., a Delaware corporation (the “Company”) proposes to issue and sell to the Initial Purchasers
(as hereinafter defined), upon the terms set forth in the Purchase Agreement (as hereinafter defined) $15.0 million in aggregate
principal amount of the Company’s 6.5% Convertible Senior Secured Notes due 2023 (the “Notes”), and the
Guarantors (as hereinafter defined) propose to issue and sell to the Initial Purchasers the Guarantees (as hereinafter defined
and, together with the Notes, the “Securities”). The Notes will be guaranteed (the “Guarantees”)
by the existing and future subsidiaries of the Company (the “Guarantors”). The Securities will be convertible
into shares (the “Underlying Securities”) of common stock of the Company, par value $0.001 per share (the “Common
Stock”), subject to certain limitations as set forth in the Indenture (as defined herein). The Securities will be issued
pursuant to an Indenture, dated as of May 14, 2018 (as amended and supplemented from time to time in accordance with its terms,
the “Indenture”), among the Company, the Guarantors party thereto and The Bank of New York Mellon Trust Company,
N.A. as trustee (the “Trustee”).

 

As
an inducement to the Initial Purchasers to enter into the Purchase Agreement and in satisfaction of a condition to the obligations
of the Initial Purchasers thereunder, the Company and the Guarantors agree with the Initial Purchasers for the benefit of the
Holders (as hereinafter defined) from time to time of the Registrable Securities (as hereinafter defined) as follows:

 

1.         
Definitions. Capitalized terms used herein without definition shall have the meanings ascribed to them in the Purchase
Agreement. References to filing a document with the Securities and Exchange Commission (the “Commission”)
shall mean to file such document with the Commission via the Commission’s Electronic Data Gathering, Analysis and Reporting,
or EDGAR, system. As used in this Registration Rights Agreement, the following terms shall have the respective meanings set forth
in this Section 1:

 

“Additional
Effectiveness Deadline” shall have the meaning specified in Section 2(b).

 

“Common
Stock” means the common stock of the Company, $0.001 par value per share.

 

“Effective
Date” means the date that a Registration Statement filed pursuant to Section 2(a) or Section 2(b), as applicable, is
first declared effective by the Commission.

 

“Effectiveness
Deadline” means the Initial Effectiveness Deadline and the Additional Effectiveness Deadline, as applicable.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Electing
Holder” has the meaning assigned thereto in Section 3(a)(iii) hereof.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Filing
Deadline” means: (a) with respect to the initial Registration Statement to be filed pursuant to Section 2(a), the 90th
day following the Closing Date, and (b) with respect to any additional Registration Statement filed pursuant to Section 2(b),
the earlier of (i) the 30th day following the date on which the Commission shall indicate as being the first date or time that
such filing may be made or (ii) in the event the Commission does not so indicate, six (6) months following the Effective Date.

 

     

     

    

 

“Holder”
or “Holders” means any person that is the record owner of Registrable Securities (and includes any person that
has a beneficial interest in any Registrable Security in book-entry form).

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Effectiveness Deadline” means the earlier of: (i) one-hundred and eighty (180) calendar days after the Closing Date,
and (ii) the fifth Trading Day following the date on which the Company is notified by the Commission that the Registration Statement
filed pursuant to Section 2(a) will not be reviewed or is no longer subject to further review and comments.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Notice
and Questionnaire” means a Notice of Registration Statement and Selling Securityholder Questionnaire substantially in
the form of Appendix A hereto.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A or 430B promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by
reference in such Prospectus.

 

“Purchase
Agreement” means the Purchase Agreement, dated as of May 10, 2018, by and among the Initial Purchasers, the Company
and the Guarantors, relating to the Securities.

 

“Registrable
Securities” means the Securities issued pursuant to the Purchase Agreement and the Underlying Securities, together with
any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event, or
any conversion price adjustment with respect thereto.

 

“Registration
Statement” means: (i) the initial registration statement which is required to register the resale of the Registrable
Securities pursuant to Section 2(a), and (ii) each additional registration statement, if any, contemplated by Section 2(b), and
including, in each case, the Prospectus, amendments and supplements to each such registration statement or Prospectus, including
pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated
by reference in such registration statement.

 

“Required
Holders” means the holders of at least a majority of the Registrable Securities held by Electing Holdings.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule
144A” means Rule 144A promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

     

     

    

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Securities”
means the Securities issued to the Initial Purchasers pursuant to the Purchase Agreement.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Trading
Day” means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not listed
on a Trading Market, a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTCQB market
maintained by OTC Markets Group Inc. or (iii) if the Common Stock is not quoted on the OTCQB, a day on which the Common Stock
is quoted in The Pink Open Market maintained by OTC Markets Group Inc.; provided, that in the event that the Common Stock is not
listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a business day (as defined in the Purchase
Agreement).

 

“Trading
Market” means whichever of The New York Stock Exchange, the NYSE American, The NASDAQ Capital Market, The NASDAQ Global
Market or The NASDAQ Global Select Market on which the Common Stock is listed or quoted for trading on the date in question.

 

“Underlying
Securities” means the shares of Common Stock issuable upon conversion of the Securities pursuant to the terms of the
Indenture and the Securities.

 

2.         

Registration.

 

(a)       

On or prior to each Filing Deadline, the Company and the Guarantors shall prepare and file with the Commission a Registration
Statement covering the resale of all Registrable Securities not already covered by an existing and effective Registration Statement
for an offering to be made on a continuous or delayed basis pursuant to Rule 415. The Company and the Guarantors shall use their
best efforts to cause the Registration Statement to be declared effective under the Securities Act as soon as possible but, in
any event, no later than the Effectiveness Deadline, and shall use its best efforts to keep the Registration Statement continuously
effective under the Securities Act until the earliest of (i) the date when all Registrable Securities covered by the Registration
Statement have been sold, (ii) the date when all Registrable Securities have been sold pursuant to Rule 144, (iii) the date when
all Registrable Securities covered by the Registration Statement may be sold by each Holder in a single transaction without restriction
pursuant to Rule 144, as determined by counsel to the Company and the Guarantors pursuant to a written opinion letter to such
effect, upon actual receipt by the Holders of a notice from the Company stating that the Company will deliver certificates without
restrictive legends upon surrender by the Holders of the existing certificates, (iv) the date two years after the date that the
Registration Statement is declared effective by the Commission, or (v) the date when all Registrable Securities cease to be outstanding
(the “Effectiveness Period”).

 

(b)       

If for any reason the Commission does not permit all of the Registrable Securities to be included in the Registration Statement
initially filed pursuant to Section 2(a), then the Company and the Guarantors shall prepare and file as soon as possible after
the date on which the Commission shall indicate as being the first date or time that such filing may be made, but in any event
by the 30th day following such date, or, in the event the Commission does not so indicate, no later than six (6) months after
the Effective Date of the Registration Statement filed pursuant to Section 2(a), an additional Registration Statement covering
the resale of all Registrable Securities not already covered by an existing and effective Registration Statement for an offering
to be made on a continuous or delayed basis pursuant to Rule 415. The Company and the Guarantors shall use its best efforts to
cause each such Registration Statement to be declared effective under the Securities Act as soon as possible but, in any event,
no later than 180 days following the date on which the Company becomes aware that such Registration Statement is required to be
filed under this Registration Rights Agreement (the “Additional Effectiveness Deadline” for such Registration
Statement), and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act
during the Effectiveness Period. To the extent the staff of the Commission does not permit all of the Registrable Securities that
have not yet been covered on an effective Registration Statement (the “Unregistered Registrable Securities”)
to be registered on such additional Registration Statement, the Company and the Guarantors shall file additional Registration
Statements successively trying to register on each such Registration Statement the maximum number of Unregistered Registrable
Securities until all of the Registrable Securities have been registered with the Commission.

 

     

     

    

 

(c)
      
If: (i) a Registration Statement is not filed on or prior to its Filing Deadline, or (ii) a Registration Statement is not declared
effective by the Commission on or prior to its required Effectiveness Deadline, or (iii) after its Effective Date, such Registration
Statement ceases for any reason to be effective and available to the Holders as to all Registrable Securities to which it is required
to cover at any time prior to the expiration of its Effectiveness Period for an aggregate of more than 15 consecutive days or
more than 45 days in any 365 consecutive day period or the Company’s Common Stock is not listed or included for quotation
on a Trading Market for any period of more than five consecutive Trading Days, (any such failure or breach being referred to as
an “Event” and for purposes of clauses (i) or (ii) the date on which such Event occurs, or for purposes of
clause (iii) the date which such 15th consecutive day (or 45th day in the aggregate) is exceeded, being referred to as “Event
Date”), then, in addition to any other rights available to the Holders: (x) on such Event Date additional interest
(“Additional Interest”) and not as a penalty, will accrue at a rate per annum of 0.50% of the principal amount
of such Registrable Securities included (or to be included) in such Registration Statement for the first 90-day period following
such Event Date; and (y) thereafter at a rate per annum of 1.00% of the principal amount of such Registrable Securities, provided,
that all periods shall be tolled, with respect to a Holder, by the number of Trading Days in excess of five (5) during which
such Holder fails to provide the Company with information regarding such Holder which was requested by the Company in writing
in order to effect the registration of such Holder’s Registrable Securities other than with respect to an Event covered
by clause (iii) of this paragraph unrelated to such Holder’s information. It shall be a condition precedent to the obligations
of the Company to pay any Additional Interest pursuant to this Section 2 with respect to the Registrable Securities of any Holder
that such Holder shall furnish to the Company such information regarding itself and the Registrable Securities held by it as contemplated
by the preceding sentence. In the event the Company fails to pay Additional Interest in a timely manner, such Additional Interest
shall bear interest at the rate of one percent (1.0%) per month (prorated for partial months) until paid in full.

 

(d)       

The initial number of Registrable Securities included in any Registration Statement and any increase in the number of Registrable
Securities included therein shall be allocated pro rata among the Electing Holders based on the number of Registrable Securities
held by each Electing Holder at the time the Registration Statement covering such initial number of Registrable Securities or
increase thereof is filed with the Commission. In the event that a Holder sells or otherwise transfers any of such Holder’s
Registrable Securities, each transferee shall be allocated a pro rata portion of the then remaining number of Registrable Securities
included in such Registration Statement for such transferor. Any Registrable Securities included in a Registration Statement which
remain allocated to any Person which ceases to hold any Registrable Securities covered by such Registration Statement shall be
allocated to the remaining Electing Holders, pro rata based on the number of Registrable Securities then held by such Electing
Holders which are covered by such Registration Statement. In no event shall the Company and the Guarantors include any securities
other than Registrable Securities on any Registration Statement without the prior written consent of the Required Holders.

 

(e)        

Each Holder shall comply with the prospectus delivery requirements of the Securities Act, or an exemption therefrom, in connection
with the offer or sale of any Registrable Securities pursuant to the Registration Statement. Each Holder, by such Holder’s
acceptance of the Registrable Securities, agrees to cooperate with the Company and the Guarantors as reasonably requested by the
Company and the Guarantors in connection with the preparation and filing of any Registration Statement hereunder, unless such
Holder has notified the Company and the Guarantors in writing of such Holder’s election to exclude all of such Holder’s
Registrable Securities from such Registration Statement.

 

(f)
       
In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company
and the Guarantors shall (i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable
to a majority of the Required Holders and (ii) undertake to register the Registrable Securities on Form S-3 as soon as such form
is available, provided that the Company and the Guarantors shall maintain the effectiveness of the Registration Statement then
in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective
by the Commission.

 

     

     

    

 

(g)       

By 9:30 am, New York City time, on the business day following the Effective Date, the Company and the Guarantors shall file with
the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant
to such Registration Statement.

 

(h)        After
the Effective Date of a Registration Statement, as soon as practicable upon the request of any Holder of Registrable Securities
that is not then an Electing Holder, the Company and the Guarantors shall take any action reasonably necessary to enable such
Holder to use the Prospectus forming a part thereof for resales of Registrable Securities, including, without limitation, any
action necessary to identify such Holder as a selling securityholder in the Registration Statement provided, however, that nothing
in this subparagraph shall relieve such Holder of the obligation to return a completed and signed Notice and Questionnaire to
the Company in accordance with Section 3(a)(ii) hereof.

 

(i)         If
at any time the Securities, pursuant to Section 9.07 of the Indenture, are convertible into securities other than the Underlying
Securities, the Company and the Guarantors shall cause, or cause any successor under the Indenture to cause, such securities to
be included in the Registration Statement no later than the date on which the Securities may then be convertible into such securities.

 

3.         

Registration Procedures.

 

In
connection with the Company’s and the Guarantors’ registration obligations hereunder, the following provisions shall
apply:

 

(a)       

(i)          
Not less than 30 calendar days prior to the Effective Date, the Company and the Guarantors shall mail the Notice and Questionnaire
to the Holders of Registrable Securities. No Holder shall be entitled to be named as a selling securityholder in the Registration
Statement as of the Effective Date, and no Holder shall be entitled to use the Prospectus forming a part thereof for resales of
Registrable Securities at any time, unless such Holder has returned a completed and signed Notice and Questionnaire to the Company
by the deadline for response set forth therein; provided, however, Holders of Registrable Securities shall have at least 28 calendar
days from the date on which the Notice and Questionnaire is first mailed to such Holders to return a completed and signed Notice
and Questionnaire to the Company.

 

(ii)       

After the Effective Date, the Company and the Guarantors shall, upon the request of any Holder of Registrable Securities that
is not then an Electing Holder, promptly send a Notice and Questionnaire to such Holder. The Company and the Guarantors shall
not be required to take any action to name such Holder as a selling securityholder in the Registration Statement or to enable
such Holder to use the Prospectus forming a part thereof for resales of Registrable Securities until such Holder has returned
a completed and signed Notice and Questionnaire to the Company. If a Notice and Questionnaire is delivered to the Company during
a Grace Period specified in Section 3(c) hereof, the Company shall not be obligated to take action to name the Holder delivering
such Notice and Questionnaire as a selling security holder in the Registration Statement until the termination of such Grace Period.

 

(iii)      

The term “Electing Holder” shall mean any Holder of Registrable Securities that has returned a completed and signed
Notice and Questionnaire to the Company in accordance with Section 3(a)(i) or 3(a)(ii) hereof.

 

(b)       

The Company and the Guarantors shall (i) prepare and file with the Commission such amendments, including post- effective amendments,
to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement
continuously effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the
Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable
Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement or “issuer
free writing prospectus” (as defined by Rule 405 promulgated by the Commission pursuant to the Securities Act) so that such
Prospectus does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein,
and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments
received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably
possible provide the Electing Holders true and complete copies of all correspondence from and to the Commission relating to such
Registration Statement that pertains to the Electing Holders as selling securityholders but not any comments that would result
in the disclosure to the Electing Holders of material and non-public information concerning the Company and the Guarantors; and
(iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the Registration
Statements and the disposition of all Registrable Securities covered by each Registration Statement.

 

     

     

    

 

(c)
       
The Company and the Guarantors shall notify the Holders as promptly as reasonably possible, but in no event later than 5:30 p.m.
Eastern time, of the following Trading Day, (i)(A) when a Registration Statement, Prospectus, any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company or the Guarantors
whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on
such Registration Statement (the Company and the Guarantors shall provide true and complete copies thereof and all written responses
thereto to each of the Electing Holders that pertain to the Electing Holders as a Selling Stockholder or to the Plan of Distribution,
but not information which the Company or the Guarantors believe would constitute material and non-public information); and (C)
with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request
by the Commission or any other Federal or state governmental authority for amendments or supplements to a Registration Statement
or Prospectus or for additional information that pertains to the Electing Holders as Selling Stockholders or the Plan of Distribution;
(iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement covering any
or all of the Registrable Securities or the initiation of any Proceedings for that purpose, including pursuant to Section 8A of
the Securities Act; (iv) of the receipt by the Company or the Guarantors of any notification with respect to the suspension of
the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation
or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the financial
statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement
or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration
Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. Notwithstanding anything to the contrary herein, at any time after the Effective Date of
the initial Registration Statement, the Company and the Guarantors may delay the disclosure of material, non-public information
concerning the Company and the Guarantors the disclosure of which at the time is not, in the good faith opinion of the board of
directors of the Company and its counsel, in the best interest of the Company and the Guarantors and, in the opinion of counsel
to the Company, otherwise required (a “Grace Period”); provided, that the Company shall promptly (i)
notify the Initial Purchasers and the Holders in writing of the existence of material, non-public information giving rise to a
Grace Period (provided that in each notice the Company will not disclose the content of such material, non-public information
to the Initial Purchasers or the Holders) and the date on which the Grace Period will begin, and (ii) notify the Initial Purchasers
and the Holders in writing of the date on which the Grace Period ends; and, provided further, that such Grace Periods shall not
exceed an aggregate of forty-five (45) days in any 12 month period, (ii) each such Grace Period shall not exceed fifteen (15)
consecutive days and (iii) that the first day of any Grace Period must be at least five (5) Trading Days after the last day of
any prior Grace Period. For purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include
the date the Initial Purchasers and the Holders receive the notice referred to in clause (i) and shall end on and include the
later of the date the Initial Purchasers and the Holders receive the notice referred to in clause (ii) and the date referred to
in such notice.

 

(d)        

The Company and the Guarantors shall use their best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of
(i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption
from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(e)
       
The Company and the Guarantors shall furnish to each Electing Holder, without charge, at least one conformed copy of each Registration
Statement and each amendment thereto and all exhibits to the extent requested by such Person (including those previously furnished
or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the Company and
the Guarantors shall have no obligation to provide any document pursuant to this clause that is available on the EDGAR system.

 

     

     

    

 

(f)
       
The Company and the Guarantors shall promptly deliver to each Electing Holder, without charge, as many copies of each Prospectus
or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request.
The Company and the Guarantors hereby consents to the use of such Prospectus and each amendment or supplement thereto by each
of the selling Electing Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus
and any amendment or supplement thereto.

 

(g)       

Prior to any public offering of Registrable Securities, the Company and the Guarantors shall use their best efforts to register
or qualify or cooperate with the selling Electing Holders in connection with the registration or qualification (or exemption from
such registration or qualification) of such Registrable Securities for offer and sale under the securities, Blue Sky or other
laws of all applicable jurisdictions or governmental authorities or agencies within the United States and to keep each such registration
or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration
Statements; provided, that the Company and the Guarantors shall not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified or subject the Company or the Guarantors to any material tax in any such jurisdiction
where it is not then so subject. The Company and the Guarantors shall promptly notify the Initial Purchasers and each Holder who
holds Registrable Securities of the receipt by the Company or the Guarantors of any notification with respect to the suspension
of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue sky”
laws of any jurisdiction in the United States or its receipt of notice of the initiation or threatening of any proceeding for
such purpose.

 

(h)       

Unless any Registrable Securities shall be in book-entry only form, the Company and the Guarantors shall cooperate with the Electing
Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered
to a transferee pursuant to the Registration Statements, which certificates shall be free, to the extent permitted by applicable
law, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such
names as any such Electing Holders may request.

 

(i)        

Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, the Company and the Guarantors
shall prepare a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a supplement
to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading.

 

(j)        

The Company and the Guarantors may require each selling Electing Holder to furnish a certified statement as to the number of Securities
and shares of Common Stock beneficially owned by such Electing Holder and any Affiliate thereof.

 

(k)       

As long as any Holder owns Registrable Securities, the Company shall timely file (or obtain extensions in respect thereof and
file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Section
13 (a) or 15(d) of the Exchange Act. As long as any Holder owns Registrable Securities, if the Company is not required to file
reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders and make publicly available
in accordance with Rule 144(c) promulgated under the Securities Act annual and quarterly financial statements, together with a
discussion and analysis of such financial statements in form and substance similar to those that would otherwise be required to
be included in reports required by Section 13 (a) or 15(d) of the Exchange Act, as well as any other information required thereby,
in the time period that such filings would have been required to have been made under the Exchange Act. The Company and the Guarantors
will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such
Person to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided
by Rule 144 and 144A (including the requirements of Rule 144A(d)(4)) promulgated under the Securities Act.

 

     

     

    

 

(l)          

The Company and the Guarantors shall promptly secure the listing of all of the Underlying Securities upon each national securities
exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject to official notice of issuance)
and shall maintain, in accordance with the Securities, such listing of all Registrable Securities from time to time issuable under
the terms of the Transaction Documents. The Company and the Guarantors shall maintain the Common Stock’s authorization for
quotation on one or more Trading Markets. Neither the Company nor any of its subsidiaries shall take any action which would be
reasonably expected to result in the delisting or suspension of the Common Stock on each applicable Trading Market. The Company
and the Guarantors shall pay all fees and expenses in connection with satisfying their obligations under this Section 3(l).

 

(m)        

If requested by an Electing Holder, the Company and the Guarantors shall (i) as soon as practicable, incorporate in a prospectus
supplement or post-effective amendment such information as such Electing Holder reasonably requests to be included therein relating
to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number
of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of
the Registrable Securities to be sold in such offering; (ii) as soon as practicable make all required filings of such prospectus
supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to any Registration Statement if reasonably
requested by an Electing Holder holding any Registrable Securities.

 

(n)         

The Company and the Guarantors shall otherwise use their best efforts to comply with all applicable rules and regulations of the
Commission in connection with any registration hereunder.

 

(o)         

Within two (2) business days after a Registration Statement which covers Registrable Securities is declared effective by the Commission,
the Company and the Guarantors shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent
for such Registrable Securities confirmation that such Registration Statement has been declared effective by the Commission which
confirmation shall authorize and direct such transfer agent to issue such Registrable Securities without legend upon sale or other
disposition by the holder of such Registrable Securities under the Registration Statement.

 

(p)         

If any Electing Holder is deemed to be or reasonably believes it may be deemed or alleged to be, an underwriter or is required
under applicable securities laws to be described in the Registration Statement as an underwriter, at the reasonable request of
any Electing Holder, the Company and the Guarantors shall use their reasonable best efforts to furnish to such Electing Holder,
on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as any Electing
Holder may reasonably request (i) a letter, dated such date, from the Company’s independent certified public accountants
in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering, addressed to the Electing Holders, and (ii) an opinion, dated as of such date, of counsel representing the Company and
the Guarantors for purposes of such Registration Statement, in form, scope and substance as is customarily given in an underwritten
public offering, addressed to the Electing Holders.

 

(q)         

Upon the written request of any Electing Holder in connection with such Electing Holder’s due diligence requirements, if
any, the Company and the Guarantors shall make available for inspection by (i) any Electing Holder, (ii) such Electing Holder’s
legal counsel and (iii) one firm of accountants or other agents retained by the Electing Holders (collectively, the “Inspectors”),
all pertinent financial and other records, and pertinent corporate documents and properties of the Company and the Guarantors
(collectively, the “Records”), as shall be reasonably deemed necessary by
each Inspector, and cause the Company’s and the Guarantors’ officers, directors and employees to supply all information
which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and
shall not make any disclosure (except to an Electing Holder) or use of any Record or other information which the Company and the
Guarantors determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a)
the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is
otherwise required under the Securities Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena
or order from a court or government body of competent jurisdiction, or (c) the information in such Records has been made generally
available to the public other than by disclosure in violation of this Registration Rights Agreement or any other Transaction Document.
Each Electing Holder agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the Company and the Guarantors and allow the Company
and the Guarantors, at their expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order
for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any Holder)
shall be deemed to limit the ability of the Holders to sell Registrable Securities in a manner which is otherwise consistent with
applicable laws and regulations.

 

     

     

    

 

(r)        

Neither the Company, any Guarantor nor any of their respective affiliates shall identify any Holder as an underwriter in any public
disclosure or filing with the Commission or any Trading Market without the prior written consent of such Holder. If the Company
or any Guarantor is required by law to identify a Holder as an underwriter in any public disclosure or filing with the Commission
or any Trading Market, it must notify such Holder in advance and such Holder shall have the option, in its sole discretion, to
consent to such identification as an underwriter within 5 business days or such Holder shall be deemed to have consented to have
its Registrable Securities removed from the applicable Registration Statement.

 

(s)        

The Company and the Guarantors shall use their reasonable best efforts to cause the Registrable Securities covered by a Registration
Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate
the disposition of such Registrable Securities in the United States.

 

(t)        
The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the Securities Act) covering a twelve-month period beginning not later than the first day of the Company’s
fiscal quarter next following the effective date of a Registration Statement.

 

4.         
Registration Expenses. All fees and expenses incident to the Company’s and the Guarantors’ performance of their
obligations under this Registration Rights Agreement (excluding any underwriting discounts and selling commissions) shall be borne
by the Company and the Guarantors whether or not any Registrable Securities are sold pursuant to a Registration Statement. The
fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings required to be made with the Trading Market on which
the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing
expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses
if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in
the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions
contemplated by this Registration Rights Agreement. The Company shall also reimburse the Electing Holders for the reasonable fees
and disbursements of a single counsel in an amount up to $10,000, who shall be Lowenstein Sandler, LLP unless another firm shall
be selected by the Required Holders, in connection with the registration, filing or qualification pursuant to Sections 2 and 3
of this Registration Rights Agreement for each such registration, filing or qualification.

 

5.         
Indemnification.

 

(a)        
Indemnification by the Company and the Guarantors. The Company and each of the Guarantors shall, notwithstanding any termination
of this Registration Rights Agreement, jointly and severally indemnify and hold harmless each Electing Holder, the officers, directors,
agents, investment advisors, partners, members, shareholders, trustees and employees of each of them, each Person who controls
any such Electing Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents, trustees and employees of each such controlling Person, to the fullest extent permitted by applicable law,
from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation
and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out
of or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company or any Guarantor in
this Registration Rights Agreement or any other certificate, instrument or document contemplated hereby, (ii) any breach of any
covenant, agreement or obligation of the Company or any Guarantor contained in this Registration Rights Agreement or any other
certificate, instrument or document contemplated hereby, or (iii) any untrue or alleged untrue statement of a material fact contained
in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or any issuer free writing prospectus or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus
or supplement thereto or any issuer free writing prospectus, in light of the circumstances under which they were made) not misleading,
except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding
such Electing Holder or its intended method of distribution furnished in writing to the Company and the Guarantors by such Electing
Holder expressly for use therein. The Company and the Guarantors shall notify the Electing Holders promptly of the institution,
threat or assertion of any Proceeding of which the Company or the Guarantors are aware in connection with the transactions contemplated
by this Registration Rights Agreement.

 

     

     

    

 

(b)        
Indemnification by Electing Holders. Each Electing Holder agrees, as a consequence of the inclusion of any of such Electing
Holder’s Registrable Securities in a Registration Statement, notwithstanding any termination of this Registration Rights
Agreement, severally and not jointly, to indemnify and hold harmless the Company and the Guarantors, and the directors, officers,
agents and employees of each, and each Person who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon any untrue
statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment
or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein
or necessary to make the statements therein not misleading to the extent, but only to the extent that, such untrue statements
or omissions are based solely upon information regarding such Electing Holder or its intended method of distribution furnished
in writing to the Company and the Guarantors by such Electing Holder expressly for use therein. In no event shall the liability
of any selling Electing Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such electing
Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Company and the Guarantors and shall survive
the transfer of the Registrable Securities by the Initial Purchasers or any Holder pursuant to Section 6(e).

 

(c)        
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and
expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice
shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Registration Rights Agreement, except
(and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying
Party.

 

An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or
(3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying
Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party),
provided, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys
at any time for all Indemnified Parties (in addition to any local counsel). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect
of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party
from all liability on claims that are the subject matter of such Proceeding and does not contain any admission of wrongdoing by
such Indemnified Party.

 

     

     

    

 

All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party,
as incurred, within fifteen Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined
that such Indemnified Party is not entitled to indemnification hereunder).

 

(d)        
Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason
of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute
to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect
the relative fault of the Indemnifying Party on the one hand and Indemnified Party on the other hand in connection with the actions,
statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault
of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The
amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in
Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for
in this Section was available to such party in accordance with its terms.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Electing Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Electing Holder
from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Electing Holder
has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

The
indemnity and contribution agreements contained in this Section are in addition to any other liability that the Indemnifying Parties
may have to the Indemnified Parties.

 

6.          
Miscellaneous.

 

(a)        
Specific Performance. The parties hereto acknowledge that there would be no adequate remedy at law if the Company and the
Guarantors fail to perform any of their respective obligations hereunder and that the Initial Purchasers and the Holders from
time to time may be irreparably harmed by any such failure, and accordingly agree that the Initial Purchasers and such Holders,
in addition to any other remedy to which they may be entitled at law or in equity and without limiting the remedies available
to the Electing Holders under Section 3(c) hereof, shall be entitled to compel specific performance of the obligations of the
Company and the Guarantors under this Registration Rights Agreement in accordance with the terms and conditions of this Registration
Rights Agreement, in any court of the United States or any State thereof having jurisdiction. The parties agree that the sole
monetary damages for a violation of the terms of this Registration Rights Agreement with respect to which liquidated damages are
expressly provided shall be such liquidated damages.

 

     

     

    

 

(b)        
Compliance. Each Electing Holder covenants and agrees, as a consequence of the inclusion of any of such Electing Holder’s
Registrable Securities in a Registration Statement, that from and after receipt of written notice from the Company that it no
longer meets the issuer conditions for the use of Rule 172, it will comply with the prospectus delivery requirements of the Securities
Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

(c)        
Discontinued Disposition. Each Electing Holder agrees, as a consequence of the inclusion of any of such Electing Holder’s
Registrable Securities in a Registration Statement, that, upon receipt of a notice from the Company of the occurrence of any event
of the kind described in Section 3(c), such Electing Holder will forthwith discontinue disposition of such Registrable Securities
under the Registration Statement until such Electing Holder’s receipt of the copies of the supplemented Prospectus and/or
amended Registration Statement or until it is advised in writing (the “Advice”) by the Company that
the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental
filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company
may provide appropriate stop orders to enforce the provisions of this paragraph. Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to deliver unlegended shares of Common Stock or Securities to a transferee of an Electing
Holder in connection with any sale of Registrable Securities with respect to which an Electing Holder has entered into a contract
for sale in accordance with the terms of this Registration Rights Agreement, prior to the Electing Holder receipt of the notice
of a Grace Period and for which the Electing Holder has not yet settled.

 

(d)        
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via email at the email address specified in this Section prior to 5:00 p.m. (Eastern time) on a business day, (ii)
the business day after the date of transmission, if such notice or communication is delivered via email at the email address specified
in this Registration Rights Agreement later than 5:00 p.m. (Eastern time) on any date and earlier than 11:59 p.m. (Eastern time)
on such date, (iii) the business day following the date of mailing, if sent by nationally recognized overnight courier service,
or (iv) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as follows:

 

	If
    to the Company or the Guarantors:	Akoustis
Technologies, Inc.

9805 Northcross Center Court 

        Suite
A 

        Huntersville,
NC 28078

Tel: (704) 274-3601

Attention: Drew Wright, General Counsel

Email address: dwright@akoustis.com 

	 	 
	with
    a copy (which shall not constitute notice) to:	K&L
Gates LLP

214 North Tryon Street 

        47th
Floor 

        Charlotte,
        NC 28202

        Tel: (704) 331-7406

        Attention: Sean M. Jones, Esq.

        Email address: sean.jones@klgates.com 

         

	If
    to the Initial Purchasers:	c/o
Oppenheimer & Co. Inc. 

        85
Broad Street 

        New
York, New York 10004 

        Tel:
(212) 667-7300

Attention: Equity Capital Markets

Email address: ecmexecution@opco.com 

 

     

     

    

 

	With
    copies (which shall not constitute notice) to:	Oppenheimer
& Co. Inc. 

        85
Broad Street, New York, New York 10004 

        Tel:
(212) 667-7300

Attention: Equity Capital Markets

Email address: ecmexecution@opco.com 

         

        and 

         

        Lowenstein
Sandler LLP 

        1251
Avenue of the Americas 

        New
York, New York 10020 

        Tel:
(973) 597-2500 

        Attention:
John D. Hogoboom 

        Email
        address: jhogoboom@lowenstein.com

         

	If
    to a registered Holder:	To
    the address of such Holder as it appears in the stock transfer books of the Company;

 

or
such other address as may be designated in writing hereafter, in the same manner, by such Person. Notwithstanding the foregoing,
notices given to Holders (i) that beneficially own Securities may be given through the facilities of DTC or any successor depository
and (ii) may be given by email at the email address provided by such Holder in accordance with the provisions of the Notice and
Questionnaire.

 

(e)        
Parties in Interest. The parties to this Registration Rights Agreement intend that all Holders of Registrable Securities
shall be entitled to receive the benefits of this Registration Rights Agreement and that any Electing Holder shall be bound by
the terms and provisions of this Registration Rights Agreement by reason of such election with respect to the Registrable Securities
which are included in a Registration Statement. All the terms and provisions of this Registration Rights Agreement shall be binding
upon, shall inure to the benefit of and shall be enforceable by the respective successors and assigns of the parties hereto and
any Holder from time to time of the Registrable Securities, including, without limitation, and without the need for an express
assignment, subsequent Holders and the indemnified persons referred to in Section 5 hereof. In the event that any transferee of
any Holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest, purchase,
operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be entitled to receive
the benefits of and, if an Electing Holder, be conclusively deemed to have agreed to be bound by and to perform all of the terms
and provisions of this Registration Rights Agreement to the aforesaid extent.

 

The
Initial Purchasers (even if the Initial Purchasers are not Holders of Registrable Securities) shall be third party beneficiaries
to the agreements made hereunder between the Company and the Guarantors, on the one hand, and the Holders, on the other hand,
and shall have the right to enforce such agreements directly to the extent they deem such enforcement necessary or advisable to
protect their rights or the rights of Holders hereunder. Each Holder of Registrable Securities shall be a third party beneficiary
to the agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other
hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable
to protect its rights hereunder.

 

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

 

     

     

    

 

(g)        
Governing Law. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS REGISTRATION
RIGHTS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW THAT WOULD APPLY TO ANY OTHER LAW. Each party agrees that all Proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Registration Rights Agreement
and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents)
may be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New York
Courts”). Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the New York Courts
for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees
not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such New York Court, or
that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Registration
Rights Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS REGISTRATION RIGHTS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(h)        
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

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

 

(j)         
Headings. The headings in this Registration Rights Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof.

 

(k)
        Amendment of Registration Rights. Provisions of this Registration Rights Agreement may be amended and the observance thereof
may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written
consent of the Company, the Guarantors and the Required Holders; provided, however, any amendment to this Registration
Rights Agreement that adversely or disproportionately affects any Holder shall require the prior written consent of such Holder.
Any amendment or waiver effected in accordance with this Section 6(k) shall be binding upon each Initial Purchaser, each Holder,
the Company and the Guarantors. No such amendment shall be effective to the extent that it applies to less than all of the holders
of the Registrable Securities.

 

(l)         
Consents. All consents and other determinations required to be made by the Initial Purchasers pursuant to this Registration
Rights Agreement shall be made, unless otherwise specified in this Registration Rights Agreement, by the Required Holders.

 

(m)       
Limitation on Obligations. The obligations of each Holder hereunder are several and not joint with the obligations of any
other Holder, and no provision of this Registration Rights Agreement is intended to confer any obligations on any Holder vis-a-vis
any other Holder. Nothing contained herein, and no action taken by any Holder pursuant hereto, shall be deemed to constitute the
Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated herein.

 

[SIGNATURES
ON NEXT PAGE]

 

     

     

    

 

If
the foregoing is in accordance with your understanding, please indicate your acceptance of this Agreement by signing in the space
provided below.

 

Very
truly yours,

 

	 	AKOUSTIS TECHNOLOGIES, INC.
	 	 	 	 
	 	By:	/s/
    John T. Kurtzweil
	 	 	Name: John T. Kurtzweil
	 	 	Title: Chief Financial Officer
	 	 
	 	AKOUSTIS, INC.
	 	 	 	 
	 	By:	/s/
    John T. Kurtzweil
	 	 	Name: John T. Kurtzweil	 
	 	 	Title: Chief Financial Officer

 

Accepted:
As of the date first written above

 

OPPENHEIMER
& CO. INC.

 

For
itself and on behalf of the 

several
Initial Purchasers listed 

in
Schedule 1 to the Purchase Agreement.

 

	By:	OPPENHEIMER & CO. INC.	 
	 	 	 
	By:	/s/ Eric Helenek	 
	 	Name: Eric Helenek	 
	 	Title: Managing DirectorExhibit
10.3

 

PLEDGE
AND SECURITY AGREEMENT

 

dated
as of May 14, 2018

 

among

 

AKOUSTIS
TECHNOLOGIES, INC.,

 

EACH
OF THE OTHER GRANTORS PARTY HERETO

 

and

 

THE
BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

as
Collateral Agent

 

     

     

    

 

TABLE
OF CONTENTS

 

 

	 	 	 	PAGES
	 	 	 	 
	SECTION 1 -- DEFINITIONS; GRANT OF SECURITY	1
	 	 	 	 
	1.1	 	General Definitions	1
	1.2	 	Definitions; Interpretation	7
	 	 	 	 
	SECTION 2 -- GRANT OF SECURITY	8
	 	 	 	 
	2.1	 	Grant of Security	8
	2.2	 	Certain Limited Exclusions	9
	 	 	 	 
	SECTION 3 -- SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE	9
	 	 	 	 
	3.1	 	Security for Obligations	9
	3.2	 	Continuing Liability Under Collateral	9
	 	 	 	 
	SECTION 4 -- REPRESENTATIONS AND WARRANTIES AND COVENANTS	9
	 	 	 	 
	4.1	 	Generally	9
	4.2	 	Equipment and Inventory	11
	4.3	 	Receivables	12
	4.4	 	Investment Related Property; Investment Related Property Generally	14
	4.5	 	Annual Certificates	18
	4.6	 	Letter of Credit Rights	18
	4.7	 	Intellectual Property	18
	4.8	 	Commercial Tort Claims	20
	4.9	 	Subsidiaries	21
	4.10	 	Real Estate Assets	21
	 	 	 	 
	SECTION 5 -- ACCESS; RIGHT OF INSPECTION AND FURTHER	 
	ASSURANCES; ADDITIONAL GRANTORS	21
	 	 	 	 
	5.1	 	Right of Inspection; Access	21
	5.2	 	Further Assurances	22
	5.3	 	Additional Grantors	22
	 	 	 	 
	SECTION 6 -- COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT	23
	 	 	 	 
	6.1	 	Power of Attorney	23
	6.2	 	No Duty on the Part of Collateral Agent or Secured Parties	24
	 	 	 	 
	SECTION 7 -- REMEDIES	24
	 	 	 	 
	7.1	 	Generally	24
	7.2	 	Application of Proceeds	25
	7.3	 	Sales on Credit	25
	7.4	 	Deposit Accounts	25

 

     

     

    

 

	7.5	 	Investment Related Property	26
	7.6	 	Cash Proceeds	26
	7.7	 	Intellectual Property	26
	 	 	 	 
	SECTION 8 -- CONTINUING SECURITY
    INTEREST	28
	 	 	 	 
	SECTION 9 -- STANDARD OF CARE; COLLATERAL
    AGENT MAY PERFORM	28
	 	 	 	 
	SECTION 10 -- MISCELLANEOUS	29
	 	 	 	 
	 	 	 	 
	Schedules:	 
	 	 	 	 
	Schedule 4.1 General Information	 
	Schedule 4.2 Location of Equipment
    and Inventory	 
	Schedule 4.4 Investment Related
    Property	 
	Schedule 4.6 Description of Letters
    of Credit	 
	Schedule 4.7 Intellectual Property	 
	Schedule 4.8 Commercial Tort Claims	 
	 	 	 	 
	Exhibits:	 
	 	 	 	 
	Exhibit A Pledge Supplement	 
	Exhibit B Counterpart Agreement	 
	Exhibit C Copyright Security Agreement	 
	Exhibit D Patent Security Agreement	 
	Exhibit E Trademark Security Agreement	 

 

     -2-

     

    

 

This
PLEDGE AND SECURITY AGREEMENT, dated as of May 14, 2018 (as amended, restated, supplemented or otherwise modified from
time to time, this “Agreement”), among AKOUSTIS TECHNOLOGIES, INC., a Delaware corporation (the “Company”),
EACH SUBSIDIARY OF THE COMPANY, whether as an original signatory hereto or as an Additional Grantor (as herein defined)
(together with the Company, each, a “Grantor”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as collateral agent for the Secured Parties (as herein defined) (in such capacity, together with its agents, successors and assigns,
the “Collateral Agent”).

 

RECITALS:

 

WHEREAS,
Grantors are party to that certain Indenture, dated as of the date hereof, among Company, as issuer, the guarantors named therein,
as guarantors, and The Bank of New York Mellon Trust Company, N.A., as in its capacity as trustee (the “Trustee”)
(as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), pursuant to
which the Company issued its 6.5% Convertible Senior Secured Notes due 2023;

 

WHEREAS,
in consideration of the purchase of the Notes by the Holders as set forth in the Indenture, each Grantor has agreed to secure
such Grantor’s obligations under the Indenture and the Note Documents; and

 

WHEREAS,
pursuant to the terms and conditions of the Collateral Agency Agreement dated as of even date herewith, among Collateral Agent,
the Trustee and each of the Grantors (as amended, restated, supplemented or otherwise modified from time to time, the “Collateral
Agency Agreement”), the Grantors have agreed to grant to Collateral Agent, for the benefit of the Holders and the other
Secured Parties (as defined below) the security interests set forth below;

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, each Grantor and
Collateral Agent agree as follows:

 

SECTION
1 -- DEFINITIONS; GRANT OF SECURITY.

 

1.1          General
Definitions. Capitalized terms used but not defined in this Agreement shall have the meanings ascribed to them in the Indenture.
In this Agreement, the following terms shall have the following meanings:

 

“Account
Debtor” shall mean each Person who is obligated on a Receivable or any Supporting Obligation related thereto.

 

“Accounts”
shall mean all “accounts” as defined in Article 9 of the UCC.

 

“Additional
Grantors” shall have the meaning assigned in Section 5.3.

 

“Agreement”
shall have the meaning set forth in the preamble.

 

“Assigned
Agreements” shall mean all agreements and contracts to which such Grantor is a party as of the date hereof, or to which
such Grantor becomes a party after the date hereof, as each such agreement may be amended, supplemented or otherwise modified
from time to time.

 

“Cash
Proceeds” shall have the meaning assigned in Section 7.6.

 

    -1-

     

    

 

“Chattel
Paper” shall mean all “chattel paper” as defined in Article 9 of the UCC, including, without limitation,
“electronic chattel paper” or “tangible chattel paper”, as each term is defined in Article 9 of the UCC.

 

“Collateral”
shall have the meaning assigned in Section 2.1.

 

“Collateral
Account” shall have the meaning assigned in Section 4.3(b)(v).

 

“Collateral
Agent” shall have the meaning set forth in the preamble.

 

“Collateral
Records” shall mean books, records, ledger cards, files, correspondence, customer lists, blueprints, technical specifications,
manuals, computer software, computer printouts, tapes, disks and related data processing software and similar items that at any
time evidence or contain information relating to any of the Collateral or are otherwise necessary or helpful in the collection
thereof or realization thereupon.

 

“Collateral
Support” shall mean all property (real or personal) assigned, hypothecated or otherwise securing any of the Collateral
and shall include any security agreement or other agreement granting a lien or security interest in such real or personal property.

 

“Commercial
Tort Claims” shall mean all “commercial tort claims” as defined in Article 9 of the UCC and as listed on
Schedule 4.8 (as such schedule may be amended or supplemented from time to time).

 

“Commodities
Accounts” (i) shall mean all “commodity accounts” as defined in Article 9 of the UCC and (ii) shall include,
without limitation, all of the accounts listed on Schedule 4.4 under the heading “Commodities Accounts” (as
such schedule may be amended or supplemented from time to time).

 

“Copyright
Licenses” shall mean any and all agreements providing for the granting of any right in or to Copyrights (whether such
Grantor is licensee or licensor thereunder).

 

“Copyright
Security Agreement” means each Copyright Security Agreement executed and delivered by Grantors, or any of them, and
Collateral Agent, in substantially the form of Exhibit C.

 

“Copyrights”
shall mean all United States and foreign copyrights, all mask works fixed in semiconductor chip products (as defined under
17 U.S.C. 901 of the U.S. Copyright Act), whether registered or unregistered, now or hereafter in force throughout the world,
all registrations and applications therefor including, without limitation, the copyrights and applications referred to in Schedule
4.7(A) (as such schedule may be amended or supplemented from time to time), all rights corresponding thereto throughout the
world, all extensions and renewals of any thereof, the right to sue for past, present and future infringements of any of the foregoing,
and all proceeds of the foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages, and
proceeds of suit.

 

“Documents”
shall mean all “documents” as defined in Article 9 of the UCC.

 

“Deposit
Accounts” (i) shall mean all “deposit accounts” as defined in Article 9 of the UCC and (ii) shall include,
without limitation, all of the accounts listed on Schedule 4.4 under the heading “Deposit Accounts” (as such
schedule may be amended or supplemented from time to time).

 

“Equipment”
shall mean: (i) all “equipment” as defined in Article 9 of the UCC, (ii) all machinery, manufacturing equipment,
data processing equipment, computers, office equipment, furnishings, furniture, appliances, fixtures and tools (in each case,
regardless of whether characterized as equipment under the UCC) and (iii) all accessions or additions thereto, all parts thereof,
whether or not at any time of determination incorporated or installed therein or attached thereto, and all replacements therefor,
wherever located, now or hereafter existing, including any fixtures.

 

    -2-

     

    

 

“General
Intangibles” (i) shall mean all “general intangibles” as defined in Article 9 of the UCC, including “payment
intangibles” also as defined in Article 9 of the UCC and (ii) shall include, without limitation, all interest rate or currency
protection or hedging arrangements, all tax refunds, all licenses, permits, concessions and authorizations and all Assigned Agreements
(in each case, regardless of whether characterized as general intangibles under the UCC).

 

“Goods”
(i) shall mean all “goods” as defined in Article 9 of the UCC and (ii) shall include, without limitation, all
Inventory and Equipment (in each case, regardless of whether characterized as goods under the UCC).

 

“Grantors”
shall have the meaning set forth in the preamble.

 

“Indenture”
shall have the meaning set forth in the preamble.

 

“Instruments”
shall mean all “instruments” as defined in Article 9 of the UCC.

 

“Insurance”
shall mean: (i) all insurance policies covering any or all of the Collateral (regardless of whether Collateral Agent is the
loss payee thereof) and (ii) any key man life insurance policies.

 

“Intellectual
Property” shall mean, collectively, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks,
the Trademark Licenses, the Trade Secrets and the Trade Secret Licenses.

 

“Inventory”
shall mean: (i) all “inventory” as defined in Article 9 of the UCC and (ii) all goods held for sale or lease or
to be furnished under contracts of service or so leased or furnished, all raw materials, work in process, finished goods, and
materials used or consumed in the manufacture, packing, shipping, advertising, selling, leasing, furnishing or production of such
inventory or otherwise used or consumed in any Grantor’s business; all goods in which any Grantor has an interest in mass
or a joint or other interest or right of any kind; and all goods which are returned to or repossessed by any Grantor, all computer
programs embedded in any goods and all accessions thereto and products thereof (in each case, regardless of whether characterized
as inventory under the UCC).

 

“Investment
Accounts” shall mean the Collateral Account, Securities Accounts, Commodities Accounts and Deposit Accounts.

 

“Investment
Related Property” shall mean: (i) all “investment property” (as such term is defined in Article 9 of the
UCC) and (ii) all of the following (regardless of whether classified as investment property under the UCC): all Pledged Equity
Interests, Pledged Debt, the Investment Accounts and certificates of deposit.

 

“Letter
of Credit Right” shall mean “letter-of-credit right” as defined in Article 9 of the UCC.

 

“Majority
Holders” shall have the meaning set forth in the Indenture.

 

“Material
Adverse Effect” means a material adverse effect on (i) the business, operations, properties, assets, condition (financial
or otherwise) of Company and its Subsidiaries taken as a whole; (ii) the ability of any Grantor to fully and timely perform its
Secured Obligations; (iii) the legality, validity, binding effect or enforceability against a Grantor of a Notes Document to which
it is a party; or (iv) the ability of the Collateral Agent or any Secured Party to enforce its rights and remedies under any Note
Document.

 

    -3-

     

    

 

“Material
Real Estate Asset” shall mean any Real Estate Asset located in the United States which, together with all other Real
Estate Assets located in the same county as such Real Estate Asset, has a fair market value greater than or equal to $500,000.

 

“Material
Receivable” means one or more Receivables of the Grantors evidencing obligations in excess of $250,000.

 

“Money”
shall mean “money” as defined in the UCC.

 

“Mortgages”
shall mean each of (i) the Fee and Leasehold Mortgage, Assignment, Security Agreement and Fixture Filing dated as of May 14,
2018 given by Akoustis, Inc., a Delaware corporation, and The Ontario County Industrial Development Agency, a public benefit corporation
of the State of New York, for the benefit of The Bank of New York Mellon Trust Company, N.A.; and (ii) the Supplemental Fee and
Leasehold Mortgage, Assignment, Security Agreement and Fixture Filing dated as of May 14, 2018 given by Akoustis, Inc., a Delaware
corporation, for the benefit of The Bank of New York Mellon Trust Company, N.A.

 

“Non-Assignable
Contract” shall mean any agreement, contract or license to which any Grantor is a party that by its terms purports to
restrict or prevent the assignment or granting of a security interest therein (either by its terms or by any federal or state
statutory prohibition or otherwise irrespective of whether such prohibition or restriction is enforceable under Section 9-406
through 9-409 of the UCC).

 

“Note
Documents” means, collectively, the Indenture, the Collateral Agency Agreement, each Note Guaranty, the Collateral Documents,
the Notes and each other agreement, document or instrument executed or delivered at any time in connection therewith, as each
may be amended, restated, supplemented, modified, renewed or extended from time to time.

 

“Patent
Licenses” shall mean all agreements providing for the granting of any right in or to Patents (whether such Grantor is
licensee or licensor thereunder).

 

“Patent
Security Agreement” means each Patent Security Agreement executed and delivered by Grantors, or any of them, and Collateral
Agent, in substantially the form of Exhibit D.

 

“Patents”
shall mean all United States and foreign patents and applications for letters patent throughout the world, including, but
not limited to each patent and patent application referred to in Schedule 4.7(B) (as such schedule may be amended or supplemented
from time to time), all reissues, divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations of
any of the foregoing, all rights corresponding thereto throughout the world, and all proceeds of the foregoing including, without
limitation, licenses, royalties, income, payments, claims, damages, and proceeds of suit and the right to sue for past, present
and future infringements of any of the foregoing.

 

“Payment
Intangible” shall have the meaning specified in Article 9 of the UCC.

 

“Pledged
Debt” shall mean all Debt owed to such Grantor, including, without limitation, all Debt described on Schedule
4.4 under the heading “Pledged Debt” (as such schedule may be amended or supplemented from time to time),
issued by the obligors named therein, the instruments evidencing such Debt, and all interest, cash, instruments and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or
all of such Debt.

 

    -4-

     

    

 

“Pledged
Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust
Interests.

 

“Pledged
LLC Interests” shall mean all interests in any limited liability company including, without limitation, all limited
liability company interests listed on Schedule 4.4 under the heading “Pledged LLC Interests” (as such schedule
may be amended or supplemented from time to time) and the certificates, if any, representing such limited liability company interests
and any interest of such Grantor on the books and records of such limited liability company or on the books and records of any
securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such limited liability company interests.

 

“Pledged
Partnership Interests” shall mean all interests in any general partnership, limited partnership, limited liability partnership
or other partnership including, without limitation, all partnership interests listed on Schedule 4.4 under the heading
“Pledged Partnership Interests” (as such schedule may be amended or supplemented from time to time) and the certificates,
if any, representing such partnership interests and any interest of such Grantor on the books and records of such partnership
or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash,
warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such partnership interests.

 

“Pledged
Stock” shall mean all shares of capital stock owned by such Grantor, including, without limitation, all shares of capital
stock described on Schedule 4.4 under the heading “Pledged Stock” (as such schedule may be amended or supplemented
from time to time), and the certificates, if any, representing such shares and any interest of such Grantor in the entries on
the books of the issuer of such shares or on the books of any securities intermediary pertaining to such shares, and all dividends,
distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such shares.

 

“Pledged
Trust Interests” shall mean all interests in a Delaware business trust or other trust including, without limitation,
all trust interests listed on Schedule 4.4 under the heading “Pledged Trust Interests” (as such schedule may
be amended or supplemented from time to time) and the certificates, if any, representing such trust interests and any interest
of such Grantor on the books and records of such trust or on the books and records of any securities intermediary pertaining to
such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or
proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such trust
interests.

 

“Pledge
Supplement” shall mean any supplement to this Agreement in substantially the form of Exhibit A.

 

“Proceeds”
shall mean: (i) all “proceeds” as defined in Article 9 of the UCC, (ii) payments or distributions made with respect
to any Investment Related Property and (iii) whatever is receivable or received when Collateral or proceeds are sold, exchanged,
collected or otherwise disposed of, whether such disposition is voluntary or involuntary.

 

“Real
Estate Asset” shall mean, at any time a determination, any interest (fee, leasehold or otherwise) then owned by any
Grantor in any land, any improvements, structures or buildings erected or located on such land, and any equipment located thereon
which is so related to such land, improvements, structures or buildings that it is deemed to be a fixture or otherwise forms part
of the real property under the law of the applicable jurisdiction.

 

    -5-

     

    

 

“Receivables”
shall mean all rights to payment, whether or not earned by performance, for goods or other property sold, leased, licensed,
assigned or otherwise disposed of, or services rendered or to be rendered, including, without limitation all such rights constituting
or evidenced by any Account, Chattel Paper, Instrument, General Intangible or Investment Related Property, together with all of
Grantor’s rights, if any, in any goods or other property giving rise to such right to payment and all Collateral Support
and Supporting Obligations related thereto and all Receivables Records.

 

“Receivables
Records” shall mean (i) all original copies of all documents, instruments or other writings or electronic records or
other Records evidencing the Receivables, (ii) all books, correspondence, credit or other files, Records, ledger sheets or cards,
invoices, and other papers relating to Receivables, including, without limitation, all tapes, cards, computer tapes, computer
discs, computer runs, record keeping systems and other papers and documents relating to the Receivables, whether in the possession
or under the control of any Grantor or any computer bureau or agent from time to time acting for any Grantor or otherwise, (iii)
all evidences of the filing of financing statements and the registration of other instruments in connection therewith, and amendments,
supplements or other modifications thereto, notices to other creditors or secured parties, and certificates, acknowledgments,
or other writings, including, without limitation, lien search reports, from filing or other registration officers, (iv) all credit
information, reports and memoranda relating thereto and (v) all other written or nonwritten forms of information related in any
way to the foregoing or any Receivable.

 

“Record”
shall have the meaning specified in Article 9 of the UCC.

 

“Secured
Obligations” shall mean all obligations (whether or not constituting future advances, obligatory or otherwise) of all
Grantors from time to time arising under or in respect of this Agreement, the Indenture and the other Notes Documents (including
the obligations to pay principal, interest and all other charges, fees, expenses, commissions, reimbursements, premiums, indemnities
and other payments related to or in respect of the obligations contained in this Agreement, the Indenture and the other Note Documents),
in each case whether (a) such obligations are direct or indirect, joint or several, absolute or contingent, reduced to judgment
or not, liquidated or unliquidated, disputed or undisputed, legal or equitable, due or to become due whether at stated maturity,
by acceleration or otherwise; (b) arising in the regular course of business or otherwise; (c) for payment or performance; (d)
discharged, stayed or otherwise affected by any bankruptcy, insolvency, reorganization or similar proceeding with respect to any
Grantor or any other person; or (e) now existing or hereafter arising (including interest and other obligations arising or accruing
after the commencement of any bankruptcy, insolvency, reorganization or similar proceeding with respect to any Grantor or any
other person, or that would have arisen or accrued but for the commencement of such proceeding, even if such obligation or the
claim therefor is not enforceable or allowable in such proceeding).

 

“Secured
Parties” means the Holders, the Trustee and the Collateral Agent and their respective agents.

 

“Securities”
shall mean any stock, shares, partnership interests, voting trust certificates, certificates of interest or participation
in any profit-sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness,
secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities”
or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition
of, or any right to subscribe to, purchase or acquire, any of the foregoing.

 

    -6-

     

    

 

“Securities
Accounts” (i) shall mean all “securities accounts” as defined in Article 8 of the UCC and (ii) shall include,
without limitation, all of the accounts listed on Schedule 4.4 under the heading “Securities Accounts” (as
such schedule may be amended or supplemented from time to time).

 

“Supporting
Obligation” shall mean all “supporting obligations” as defined in Article 9 of the UCC.

 

“Tax
Code” shall mean the United States Internal Revenue Code of 1986, as amended from time to time.

 

“Trademark
Licenses” shall mean any and all agreements providing for the granting of any right in or to Trademarks (whether such
Grantor is licensee or licensor thereunder).

 

“Trademark
Security Agreement” means each Trademark Security Agreement executed and delivered by Grantors, or any of them, and
Collateral Agent, in substantially the form of Exhibit E.

 

“Trademarks”
shall mean all United States, state and foreign trademarks, trade names, corporate names, company names, business names, fictitious
business names, internet domain names, trade styles, service marks, certification marks, collective marks, logos, other source
or business identifiers, designs and general intangibles of a like nature, all registrations and applications for any of the foregoing
including, but not limited to the registrations and applications referred to in Schedule 4.7(C) (as such schedule may be
amended or supplemented from time to time), all extensions or renewals of any of the foregoing, all of the goodwill of the business
connected with the use of and symbolized by the foregoing, the right to sue for past, present and future infringement or dilution
of any of the foregoing or for any injury to goodwill, and all proceeds of the foregoing, including, without limitation, licenses,
royalties, income, payments, claims, damages, and proceeds of suit.

 

“Trade
Secret Licenses” shall mean any and all agreements providing for the granting of any right in or to Trade Secrets (whether
such Grantor is licensee or licensor thereunder).

 

“Trade
Secrets” shall mean all trade secrets and all other confidential or proprietary information and know-how now or hereafter
owned or used in, or contemplated at any time for use in, the business of such Grantor (all of the foregoing being collectively
called a “Trade Secret”), whether or not such Trade Secret has been reduced to a writing or other tangible
form, including all documents and things embodying, incorporating, or referring in any way to such Trade Secret, the right to
sue for past, present and future infringement of any Trade Secret, and all proceeds of the foregoing, including, without limitation,
licenses, royalties, income, payments, claims, damages, and proceeds of suit.

 

“UCC”
shall mean the Uniform Commercial Code as in effect from time to time in the State of New York or, when the context implies,
the Uniform Commercial Code as in effect from time to time in any other applicable jurisdiction.

 

“United
States” shall mean the United States of America.

 

1.2          Definitions;
Interpretation. All capitalized terms used herein (including the preamble and recitals hereto) and not otherwise defined herein
shall have the meanings ascribed thereto in the Indenture or, if not defined therein, in the UCC. References to “Sections,”
“Exhibits” and “Schedules” shall be to Sections, Exhibits and Schedules, as the case may be, of this Agreement
unless otherwise specifically provided. Section headings in this Agreement are included herein for convenience of reference only
and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect. Any of the terms defined
herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. The use
herein of the word “include” or “including”, when following any general statement, term or matter, shall
not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such
word or to similar items or matters, whether or not non-limiting language (such as “without limitation” or “but
not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other
items or matters that fall within the broadest possible scope of such general statement, term or matter. If any conflict or inconsistency
exists between this Agreement and the Indenture, the Indenture shall govern. All references herein to provisions of the UCC shall
include all successor provisions under any subsequent version or amendment to any Article of the UCC.

 

    -7-

     

    

 

SECTION
2 -- GRANT OF SECURITY.

 

2.1          Grant
of Security. Each Grantor hereby grants to Collateral Agent, for its benefit and for the benefit of the other Secured Parties,
a security interest and continuing lien on all of such Grantor’s right, title and interest in, to and under all property
of such Grantor including, but not limited to the following, in each case whether now owned or existing or hereafter acquired
or arising and wherever located (all of which being hereinafter collectively referred to as the “Collateral”):

 

(a)           Accounts;

 

(b)           Chattel
Paper; 

 

(c)           Documents;

 

(d)           Equipment;

 

(e)           General
Intangibles; 

 

(f)            Goods;

 

(g)           Instruments;

 

(h)           Insurance;

 

(i)            Intellectual
Property 

 

(j)            Inventory;

 

(k)           Investment
Related Property; 

 

(l)            Letter
of Credit Rights; 

 

(m)          Money;

 

(n)           Receivables
and Receivable Records; 

 

(o)           Commercial
Tort Claims; 

 

(p)           to
the extent not otherwise included above, all Collateral Records, Collateral Support and Supporting Obligations relating to any
of the foregoing; and 

 

(q)           to
the extent not otherwise included above, all Proceeds, products, accessions, rents and profits of or in respect of any of the
foregoing. 

 

    -8-

     

    

 

2.2          Certain
Limited Exclusions. The Collateral will not include the following assets (such assets, the “Excluded Property”):
(i) any rights or interest in any lease, contract, license or license agreement covering any Grantor’s assets, so long as
under the terms of such lease, contract, license or license agreement, or applicable law with respect thereto, the grant of a
security interest or lien therein is prohibited or would render such lease, contract, license or license agreement cancelled,
invalid or unenforceable (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406,
9-407, 9-408 or 9-409 of the Uniform Commercial Code (or any successor provision or provisions) of any relevant jurisdiction or
any other applicable law or principles of equity); provided however that in relation to clause (i) above, such security
interest shall attach immediately at such time as the condition causing such abandonment, invalidation or unenforceability shall
be remedied and, to the extent severable, shall attach immediately to any portion of such lease, license, contract, property rights
or agreement that does not result in any of the consequences specified above; and (ii) assets owned by any Grantor on the Issue
Date or thereafter acquired and any proceeds thereof that are subject to a Lien securing a purchase money obligation or capital
lease obligation permitted to be incurred pursuant to the provisions of the Indenture to the extent and for so long as the contract
or other agreement in which such Lien is granted (or the documentation providing for such purchase money obligation or capital
lease obligation) prohibits the creation of any other lien on such assets and proceeds.

 

SECTION
3 -- SECURITY FOR OBLIGATIONS; GRANTORS REMAIN
LIABLE.

 

3.1          Security
for Obligations. This Agreement secures, and the Collateral is collateral security for, the payment and performance in full
when due of all the Secured Obligations.

 

3.2          Continuing
Liability Under Collateral. Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for all
obligations in respect of the Collateral and nothing contained herein is intended or shall be a delegation of such duties to Collateral
Agent or any Secured Party, (ii) each Grantor shall remain liable under each of the agreements included in the Collateral, including,
without limitation, any agreements relating to Pledged Equity Interests, to perform all of the obligations undertaken by it thereunder
all in accordance with and pursuant to the terms and provisions thereof and neither Collateral Agent nor any Secured Party shall
have any obligation or liability under any of such agreements by reason of or arising out of this Agreement or any other document
related thereto nor shall Collateral Agent nor any Secured Party have any obligation to make any inquiry as to the nature or sufficiency
of any payment received by it or have any obligation to take any action to collect or enforce any rights under any agreement included
in the Collateral, including, without limitation, any agreements relating to Pledged Equity Interests, and (iii) the exercise
by Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the
contracts and agreements included in the Collateral.

 

SECTION
4 -- REPRESENTATIONS AND WARRANTIES AND COVENANTS.

 

4.1          Generally.

 

(a)           Representations
and Warranties. Each Grantor hereby represents and warrants that: 

 

(i)            it
owns the Collateral purported to be owned by it or otherwise has the rights it purports to have in each applicable item of the
Collateral and, as to all its Collateral, whether now existing or hereafter acquired, will continue to own or have such rights
in each item of the Collateral except as otherwise permitted by the Indenture, in each case free and clear of any and all Liens,
rights or claims of all other Persons, other than Permitted Liens; 

 

    -9-

     

    

 

(ii)           it
has indicated on Schedule 4.1(A) (as such schedule may be amended or supplemented from time to time): (A) the type of organization
of such Grantor, (B) the jurisdiction of organization of such Grantor, (C) its organizational identification number, if any, and
(D) the jurisdiction where the chief executive office or principal place of business is located; 

 

(iii)          the
full legal name of such Grantor is as set forth on Schedule 4.1(A) (as such schedule may be amended or supplemented from
time to time) and it has not done in the last five (5) years, and does not do, business under any other name (including any trade-name
or fictitious business name) except for those names set forth on Schedule 4.1(B) (as such schedule may be amended or supplemented
from time to time); 

 

(iv)          except
as provided on Schedule 4.1(C), it has not changed its name, jurisdiction of organization, principal place of business,
chief executive office or its corporate structure in any way within the past five (5) years; 

 

(v)           upon
(x) the filing of all UCC financing statements naming each Grantor as “debtor” and Collateral Agent as
“secured party” and describing the Collateral in the filing offices set forth opposite such Grantor’s name
on Schedule 4.1(D) hereof (as such schedule may be amended or supplemented from time to time), and (y) execution of a
control agreement with respect to each Deposit Account, the security interests granted to Collateral Agent hereunder
constitute valid and perfected first priority Liens (subject in the case of priority only to Permitted Liens) on that portion
of the Collateral that can be perfected by such filing or execution of such control agreement; 

 

(vi)          other
than the financing statements filed in favor of Collateral Agent, no effective UCC financing statement, fixture filing or other
instrument similar in effect under any applicable law covering all or any part of the Collateral is on file in any filing or recording
office except for financing statements filed in connection with Permitted Liens; 

 

(vii)         no
authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body is
required for either (x) the pledge or grant by any Grantor of the Liens purported to be created in favor of Collateral Agent hereunder
or (y) the exercise by Collateral Agent of any rights or remedies in respect of any Collateral (whether specifically granted or
created hereunder or created or provided for by applicable law), except, in each case, (A) for the filings contemplated by clause
(v) above, (B) as may be required, in connection with the disposition of any Investment Related Property, by laws generally affecting
the offering and sale of Securities, (C) as may be required in connection with Pledged Equity Interests of Foreign Subsidiaries
hereunder, to the extent identified in Schedule 4.1(E) hereof (as such schedule may be amended or supplemented from time
to time), and (D) such authorizations, approvals or other actions of or notices to or filings with Governmental Authorities or
regulatory bodies obtained as of the date hereof; and 

 

(viii)        it
does not own any “as extracted collateral” (as defined in the UCC). 

 

(b)           Covenants
and Agreements. Each Grantor hereby covenants and agrees that: 

 

(i)            such
Grantor shall defend the Collateral against all Persons at any time claiming any interest therein, except with respect to Permitted
Liens; 

 

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

 

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(iii)          it
shall not change such Grantor’s name, chief executive office, type of organization or jurisdiction of organization unless
it shall have (A) notified Collateral Agent in writing, by executing and delivering to Collateral Agent a completed Pledge Supplement,
substantially in the form of Exhibit A attached hereto, together with all applicable Supplements to Schedules thereto,
at least five (5) days’ prior to any such change or establishment, identifying the new name, chief executive office, type
of organization or jurisdiction of organization and providing such other information in connection therewith as Collateral Agent
may reasonably request and (B) taken all actions necessary or advisable to maintain the continuous validity, perfection and the
same or better priority of Collateral Agent’s security interest in the Collateral intended to be granted and agreed to hereby;

 

(iv)          upon
such Grantor obtaining knowledge thereof, it shall promptly notify Collateral Agent in writing of any event that would reasonably
be expected to have a Material Adverse Effect on the value of any material portion of the Collateral, or the rights and remedies
of Collateral Agent in relation thereto, including, without limitation, the levy of any legal process against any material portion
of the Collateral; 

 

(v)           except
otherwise permitted by the Notes Documents, it shall not take or permit any action which would reasonably be expected to impair,
in any material respect, Collateral Agent’s rights in a material portion of the Collateral; and 

 

(vi)          each
Grantor will maintain its primary operating and investments accounts in the United States. 

 

(c)           Post-Closing
Items. Company hereby covenants and agrees that Company shall use commercially reasonable efforts for a period of thirty (30)
days following the Issue Date to deliver (or cause the applicable Grantor to deliver) duly executed control agreements in such
form as may be reasonably acceptable to Collateral Agent with respect to all Deposit Accounts required to be pledged hereunder.
Company shall deliver (or cause the applicable Grantor to deliver), within the timeframe set forth in Section 3.5 of the Mortgages,
the items listed therein. Subject to Section 4.4.2(b), the Company further covenants and agrees that it shall, or shall cause
the applicable Grantor to, use its commercially reasonable efforts to deliver as soon as practical duly executed control agreements
in such form as may be reasonably acceptable to Collateral Agent with respect to all Securities Accounts owned by them on the
Issue Date. Further, as soon as reasonably practical after the Issue Date provide insurance certificates naming the Collateral
Agent as “loss payee” and “additional insured” on the insurance policies maintained by the Grantors. Further,
promptly after the Issue Date, the Company will open the Collateral Account. The Collateral Agent shall not be responsible for
determining whether Company has used “commercially reasonable efforts” hereunder.

 

4.2          Equipment
and Inventory.

 

(a)           Representations
and Warranties. Each Grantor represents and warrants that as of the Issue Date: 

 

(i)            all
of the Equipment and Inventory with a value of $250,000 in the aggregate included in the Collateral is kept only at the locations
specified in Schedule 4.2 (as such schedule may be amended or supplemented from time to time);  

 

(ii)           any
Goods now or hereafter produced by any Grantor included in the Collateral have been and will be produced in compliance with the
requirements of the Fair Labor Standards Act, as amended; and 

 

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(iii)          none
of the Inventory or Equipment is in the possession of an issuer of a negotiable document (as defined in Section 7-104 of the UCC)
therefor or otherwise in the possession of a bailee or a warehouseman. 

 

(b)           Covenants
and Agreements. Each Grantor covenants and agrees that: 

 

(i)            it
shall keep the Equipment and Inventory, with a value in excess of $250,000, until sold in the ordinary course of business and
any Documents evidencing any Equipment and Inventory in the locations specified on Schedule 4.2 (as such schedule may be
amended or supplemented from time to time); 

 

(ii)           it
shall notify Collateral Agent in writing, by executing and delivering to Collateral Agent, no less often than quarterly, a completed
Pledge Supplement, substantially in the form of Exhibit A attached hereto, together with all applicable Supplements to
Schedules thereto, in the event there has been any change in the locations specified on Schedule 4.2 with respect to such
Equipment, Inventory (other than Inventory sold in the ordinary course of business) and Documents, identifying such new locations
and providing such other information in connection therewith as shall be necessary to perfect the Collateral Agent’s security
interest in such Collateral; 

 

(iii)          it
shall keep correct and accurate records of the Inventory as is customarily maintained under similar circumstances by Persons of
established reputation engaged in similar business, and in any event sufficient to prepare financial statements in accordance
with GAAP; 

 

(iv)          it
shall not deliver any Document evidencing any Equipment or Inventory (other than pursuant to a sale of Inventory in the ordinary
course of business) to any Person other than (A) the issuer of such Document to claim the Goods evidenced therefor or (B) Collateral
Agent; and 

 

(v)           if
any Equipment or Inventory in excess of $250,000 for any location or $1,000,000 in the aggregate is in possession or control of
any third party, each Grantor shall notify, and shall request, that Collateral Agent join such Grantor (upon reasonable written
request and at such Grantor’s cost) in notifying the third party of Collateral Agent’s security interest, and use
commercially reasonable efforts for a period of thirty (30) days to obtain an acknowledgment from the third party that it is holding
the Equipment and Inventory for the benefit of Collateral Agent. The Collateral Agent shall not be responsible for determining
whether Company has used “commercially reasonable efforts” hereunder.

 

4.3          Receivables.

 

(a)           Representations
and Warranties. Each Grantor represents and warrants that as of the Issue Date: 

 

(i)         each
Material Receivable (A) is and will be the legal, valid and binding obligation of the Account Debtor in respect thereof, representing
an unsatisfied obligation of such Account Debtor, (B) is and will be enforceable in accordance with its terms except to the extent
that the enforceability thereof may be limited by applicable bankruptcy, insolvency, moratorium, reorganization and other similar
laws affecting creditors’ rights generally and by equitable principles (regardless of whether enforcement is sought in equity
or at law), and (C) is and will be in compliance with all applicable laws, whether federal, state, local or foreign; 

 

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(ii)           none
of the Account Debtors in respect of any Material Receivable is the government of the United States, any agency or instrumentality
thereof, any state or municipality or any foreign sovereign; and 

 

(iii)          no
Material Receivable is evidenced by, or constitutes, an Instrument or Chattel Paper which has not been delivered to, or otherwise
subjected to the control of, Collateral Agent to the extent required by, and in accordance with Section 4.3(c). 

 

(b)           Covenants
and Agreements: Each Grantor hereby covenants and agrees that: 

 

(i)            it
shall keep and maintain at its own cost and expense satisfactory and complete records of Material Receivables, including, but
not limited to, the originals of all material documentation with respect thereto and records of all payments received and all
credits granted thereon, all material merchandise returned and all material other dealings therewith; 

 

(ii)           during
the continuance of an Event of Default, it shall mark conspicuously, with an appropriate reference to the fact that Collateral
Agent has a security interest therein, all Chattel Paper, Instruments and other evidence of Material Receivables (other than any
delivered to Collateral Agent as provided herein), as well as the Material Receivables Records; 

 

(iii)          other
than in respect of obligations subject to good faith disputes, it shall perform in all material respects all of its obligations
with respect to the Material Receivables; 

 

(iv)          other
than in the ordinary course of business and while no Event of Default exists, it shall not amend, modify, terminate or waive any
provision of any Material Receivable in any manner which could reasonably be expected to have a Material Adverse Effect on the
value of such Material Receivable as Collateral. Other than in the ordinary course of business and so long as no Event of Default
exists, such Grantor shall not (w) grant any extension or renewal of the time of payment of any Material Receivable, (x) compromise
or settle any dispute, claim or legal proceeding with respect to any Material Receivable for less than the total unpaid balance
thereof, (y) release, wholly or partially, any Person liable for the payment thereof, or (z) allow any material credit or discount
thereon; 

 

(v)           each
Grantor shall continue to collect all amounts due or to become due to such Grantor under the Material Receivables and any Supporting
Obligation and diligently exercise each material right it may have under any Material Receivable, any Supporting Obligation or
Collateral Support, in each case, at its own expense, and in connection with such collections and exercise, such Grantor shall
take such action as such Grantor may deem necessary or advisable. Notwithstanding the foregoing, Collateral Agent (acting at the
written direction of Majority Holders) shall have the right at any time during the existence of an Event of Default and, following
notice to Grantors, to notify, or require any Grantor to notify, any Account Debtor of Collateral Agent’s security interest
in the Receivables and any Supporting Obligation and, in addition, at any time following the occurrence and during the continuation
of an Event of Default, pursuant to the Note Documents Collateral Agent (acting at the written direction of Majority Holders)
may: (A) direct the Account Debtors under any Receivables to make payment of all amounts due or to become due to such Grantor
thereunder directly to Collateral Agent; (B) notify, or require any Grantor to notify, each Person maintaining a lockbox or similar
arrangement to which Account Debtors under any Receivables have been directed to make payment to remit all amounts representing
collections on checks and other payment items from time to time sent to or deposited in such lockbox or other arrangement directly
to Collateral Agent; and (C) enforce, at the expense of such Grantor, collection of any such Receivables and to adjust, settle
or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done. If Collateral
Agent notifies any Grantor that it has elected to collect the Receivables in accordance with the preceding sentence, any payments
of Receivables received by such Grantor shall be forthwith (and in any event within five (5) Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to Collateral Agent if required, in a collateral account (the
“Collateral Account”), and until so turned over, all amounts and proceeds (including checks and other instruments)
received by such Grantor in respect of the Receivables, any Supporting Obligation or Collateral Support shall be received in trust
for the benefit of Collateral Agent hereunder and shall be segregated from other funds of such Grantor and such Grantor shall
not adjust, settle or compromise the amount or payment of any Receivable, or release wholly or partly any Account Debtor or obligor
thereof, or allow any credit or discount thereon; and 

 

    -13-

     

    

 

(vi)          it
shall use its commercially reasonable efforts to keep in full force and effect any Supporting Obligation or Collateral Support
relating to any Material Receivable. 

 

(c)           Delivery
and Control of Receivables. With respect to any Material Receivables that is evidenced by, or constitutes, Chattel Paper or
Instruments, each Grantor shall cause each originally executed copy thereof to be delivered to Collateral Agent (or its agent
or designee) appropriately indorsed to Collateral Agent or indorsed in blank: (i) with respect to any such Material Receivables
in existence on the date hereof, on or prior to the date hereof, and (ii) with respect to any such Material Receivables hereafter
arising, within twenty (20) days of such Grantor acquiring rights therein. Any Material Receivable not otherwise required to be
delivered or subjected to the control of Collateral Agent in accordance with this subsection (c) shall be delivered or subjected
to such control upon request of Collateral Agent (acting at the written direction of Majority Holders) during the existence of
an Event of Default.

 

4.4          Investment
Related Property; Investment Related Property Generally

 

(a)           Covenants
and Agreements. Each Grantor hereby covenants and agrees that: 

 

(i)            in
the event it acquires rights in any Investment Related Property after the date hereof, it shall deliver to Collateral Agent a
completed Pledge Supplement, substantially in the form of Exhibit A attached hereto, together with all applicable Supplements
to Schedules thereto, reflecting such new Investment Related Property and all other Investment Related Property. Notwithstanding
the foregoing, it is understood and agreed that the security interest of Collateral Agent shall attach to all Investment Related
Property immediately upon any Grantor’s acquisition of rights therein and shall not be affected by the failure of any Grantor
to deliver a supplement to Schedule 4.4 as required hereby; 

 

(ii)           except
as provided in the next sentence and except to the extent constituting Excluded Property, in the event such Grantor receives any
dividends, interest or distributions on any Investment Related Property, or any securities or other property upon the merger,
consolidation, liquidation or dissolution of any issuer of any Investment Related Property, then (A) such dividends, interest
or distributions and securities or other property shall be included in the definition of Collateral without further action and
(B) such Grantor shall immediately take all steps, if any, necessary or advisable to ensure the validity, perfection, priority
and, if applicable, control of Collateral Agent over such Investment Related Property (including, without limitation, delivery
thereof to Collateral Agent if necessary for such validity, perfection or priority). Notwithstanding the foregoing, so long as
no Event of Default shall have occurred and be continuing, each Grantor shall be entitled to retain all cash dividends and distributions,
all payments of interest and all property received upon the liquidation or dissolution of a Subsidiary permitted by the Note Documents;
and to the extent applicable, each Grantor consents to the grant by each other Grantor of a Security Interest in all Investment
Related Property to Collateral Agent. 

 

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(b)           Delivery
and Control. Each Grantor agrees that with respect to any Investment Related Property in which it currently has rights it
shall comply with the provisions of this Section 4.4(b) on or before the Issue Date and with respect to any Investment
Related Property hereafter acquired by such Grantor it shall comply with the provisions of this Section 4.4(b) promptly
upon acquiring rights therein. With respect to any Investment Related Property that is represented by a certificate or that is
an “instrument” (other than any Investment Related Property credited to a Securities Account), it shall cause such
certificate or instrument to be delivered to Collateral Agent, indorsed in blank by an “effective indorsement” (as
defined in Section 8-107 of the UCC), regardless of whether such certificate constitutes a “certificated security”
for purposes of the UCC. In addition to the foregoing, if any issuer of any Investment Related Property is located in a jurisdiction
outside the United States, each Grantor shall take such additional actions, including, without limitation, causing the issuer
to register the pledge on its books and records or making such filings or recordings, in each case as may be necessary or advisable,
under the laws of such issuer’s jurisdiction to insure the validity, perfection and priority of the security interest of
Collateral Agent; provided that the Grantors shall not be required to take any actions contemplated by this sentence with
respect to the pledge of Equity Interests of Foreign Subsidiaries so long as the total assets (determined in accordance with GAAP)
of such Foreign Subsidiaries with respect to which such actions have not been taken do not exceed $1,000,000 in the aggregate
at any time. 

 

(c)           Voting
and Distributions. 

 

(i)             So
long as no Event of Default shall have occurred and be continuing: 

 

(A)      each
Grantor shall be entitled to exercise or refrain from exercising any and all voting and other consensual rights pertaining to
the Investment Related Property or any part thereof for any purpose not inconsistent with the terms of this Agreement or the Indenture
or any other Note Document; provided, however, that, in each case, no vote shall be cast or any consent, waiver or ratification
given or any action take or omitted to be taken which would violate, result in a breach of any covenant contained in, or be inconsistent
with any of the terms of any Note Document, or which could reasonably be expected to have the effect of impairing the value of
the Investment Related Property or any part thereof or the position or interest of Collateral Agent in the Collateral, unless
expressly permitted by the terms of the Notes Documents; and

 

(B)       Collateral
Agent shall use commercially reasonable efforts to execute and deliver (or cause to be executed and delivered) to each Grantor
all proxies, and other instruments as such Grantor may from time to time reasonably request in writing for the purpose of enabling
such Grantor to exercise the voting and other consensual rights when and to the extent which it is entitled to exercise pursuant
to clause (A) above; provided any such action to be taken by Collateral Agent shall be at the cost of such Grantor.

 

(ii)           Upon
the occurrence and during the continuation of an Event of Default: 

 

(A)      following
notice from Collateral Agent to Grantors (acting at the written direction of Majority Holders), all rights of each Grantor to
exercise or refrain from exercising the voting and other consensual rights which it would otherwise be entitled to exercise pursuant
hereto shall cease and all such rights shall thereupon become vested in Collateral Agent who shall thereupon have the sole right
to exercise such voting and other consensual rights; and 

 

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(B)       in
order to permit Collateral Agent to exercise the voting and other consensual rights which it may be entitled to exercise pursuant
hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder: (1) each Grantor shall
promptly execute and deliver (or cause to be executed and delivered) to Collateral Agent all proxies, dividend payment orders
and other instruments as are necessary for Collateral Agent to exercise such rights and (2) the each Grantor acknowledges that
Collateral Agent may utilize the power of attorney set forth in Section 6.

 

4.4.1
Pledged Equity Interests and Pledged Debt

 

(a)           Representations
and Warranties. Each Grantor hereby represents and warrants, that as of the Issue Date: 

 

(i)             Schedule
4.4 (as such schedule may be amended or supplemented from time to time) sets forth under the headings “Pledged Stock,
“Pledged LLC Interests,” “Pledged Partnership Interests” and “Pledged Trust Interests,” respectively,
all of the Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests owned by any Grantor
and such Pledged Equity Interests constitute the percentage of issued and outstanding shares of stock, percentage of membership
interests, percentage of partnership interests or percentage of beneficial interest of the respective issuers thereof indicated
on such Schedule; 

 

(ii)           it
is the record and beneficial owner of the Pledged Equity Interests pledged by such Grantor free of all Liens, rights or claims
of other Persons other than Liens in favor of Collateral Agent pursuant to the terms of this Agreement and Permitted Liens, and
there are no outstanding warrants, options or other rights to purchase, or shareholder, voting trust or similar agreements outstanding
with respect to, or property that is convertible into, or that requires the issuance or sale of, any Pledged Equity Interests;

 

(iii)           without
limiting the generality of Section 4.1(a)(v), except for the consents obtained in Section 4.1(a)(vii), no consent of any
Person (to the extent not obtained prior to the date hereof), including any other general or limited partner, any other member
of a limited liability company, any other shareholder or any other trust beneficiary, is necessary or desirable in connection
with the creation, perfection or first priority status of the security interest of Collateral Agent in any Pledged Equity Interests
or the exercise by Collateral Agent of the voting or other rights provided for in this Agreement or the exercise of remedies in
respect thereof; 

 

(iv)          Schedule
4.4 (as such schedule may be amended or supplemented from time to time) sets forth under the heading “Pledged Debt”
all of the Pledged Debt owned by any Grantor and all of such Pledged Debt has been duly authorized, authenticated or issued, and
delivered and is the legal, valid and binding obligation of the issuers thereof, except to the extent that the enforceability
thereof may be limited by applicable bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’
rights generally and by equitable principles (regardless of whether enforcement is sought in equity or at law) and is not in default;
and 

 

(v)           none
of the Pledged LLC Interests nor Pledged Partnership Interests are or represent interests in issuers that are: (A) registered
as investment companies, (B) are dealt in or traded on securities exchanges or markets or (C) have opted to be treated as securities
under the uniform commercial code of any jurisdiction unless such interest is certificated and delivered to the Collateral Agent
pursuant to Section 4.4(b). 

 

(b)           Covenants
and Agreements. Each Grantor hereby covenants and agrees that: 

 

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(i)            except
as permitted by the Indenture, it shall not vote to enable or take any other action to: (A) amend or terminate any partnership
agreement, limited liability company agreement, certificate of incorporation, by-laws or other organizational documents in any
way that materially changes the rights of such Grantor with respect to any Investment Related Property or adversely affects the
validity, perfection or priority of Collateral Agent’s security interest, (B) permit any issuer of any Pledged Equity Interest
to issue any additional stock, partnership interests, limited liability company interests or other equity interests of any nature
or to issue securities convertible into or granting the right of purchase or exchange for any stock or other equity interest of
any nature of such issuer unless pledged in accordance herewith, (C) permit any issuer of any Pledged Equity Interest to dispose
of all or a material portion of its assets, (D) waive any default under or breach of any terms of organizational document relating
to the issuer of any Pledged Equity Interest or the terms of any Pledged Debt, or (E) except as otherwise provided herein, cause
any issuer of any Pledged Partnership Interests or Pledged LLC Interests which are not securities (for purposes of the UCC) on
the date hereof to elect or otherwise take any action to cause such Pledged Partnership Interests or Pledged LLC Interests to
be treated as securities for purposes of the UCC; and 

 

(ii)           it
shall comply in all material respects with all of its obligations under any partnership agreement or limited liability company
agreement relating to Pledged Partnership Interests or Pledged LLC Interests and, except as otherwise provided in this Agreement,
shall enforce all of its material rights with respect to any Investment Related Property; and 

 

(iii)          to
the extent applicable, each Grantor consents to the grant by each other Grantor of a security interest in all Investment Related
Property to Collateral Agent and, without limiting the foregoing, consents to the transfer of any Pledged Partnership Interest
and any Pledged LLC Interest to Collateral Agent or its nominee following an Event of Default and to the substitution of Collateral
Agent or its nominee as a partner in any partnership or as a member in any limited liability company with all the rights and powers
related thereto. 

 

4.4.2
Investment Accounts

 

(a)           Representations
and Warranties. Each Grantor hereby represents and warrants that: 

 

(i)             Schedule
4.4 hereto (as such schedule may be amended or supplemented from time to time) sets forth under the headings “Securities
Accounts” and “Commodities Accounts, ”respectively, all of the Securities Accounts and Commodities Accounts
in which each Grantor has an interest. Each Grantor is the sole entitlement holder of each such Securities Account and Commodities
Account, and such Grantor has not consented to, and is not otherwise aware of, any Person (other than Collateral Agent pursuant
hereto having “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over, or any other interest in,
any such Securities Account or Commodity Account or any securities or other property credited thereto, other than, to the extent
provided by the UCC, the financial institution where such Securities Account or Commodities Account is maintained by solely virtue
of its capacity as such; 

 

(ii)            Schedule
4.4 hereto (as such schedule may be amended or supplemented from time to time) sets forth under the heading “Deposit
Accounts” all of the Deposit Accounts in which each Grantor has an interest and each Grantor is the sole account holder
of each such Deposit Account and such Grantor has not consented to, and is not otherwise aware of, any Person (other than Collateral
Agent pursuant hereto) having either sole dominion and control (within the meaning of common law) or “control” (within
the meaning of Section 9-104 of the UCC) over, or any other interest in, any such Deposit Account or any money or other property
deposited therein, other than, to the extent provided by the UCC, the financial institution where such Deposit Account is maintained
by solely virtue of its capacity as such; and 

 

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(iii)          each
Grantor has delivered all Instruments constituting Collateral to Collateral Agent. 

 

(b)           Delivery
and Control. With respect to any Investment Related Property consisting of Securities Accounts or Securities Entitlements,
it shall use its commercially reasonable efforts for a period of thirty (30) days to cause the securities intermediary maintaining
such Securities Account or Securities Entitlement to enter into an agreement in such form as may be reasonably acceptable to Collateral
Agent pursuant to which it shall agree to comply with Collateral Agent’s “entitlement orders” without further
consent by such Grantor. With respect to any Investment Related Property that is a “Deposit Account,” it shall use
commercially reasonable efforts for a period of thirty (30) days to cause such depositary institution maintaining such account
to enter into an agreement in such form as may be reasonably acceptable to Collateral Agent, pursuant to which Collateral Agent
shall, have control over such Deposit Account (within the meaning of Section 9-104 of the UCC); provided however, that
the Grantors will not be required to provide a control agreement in favor of the Collateral Agent with respect to any Deposit
Account that is solely a payroll or benefits account. Notwithstanding the foregoing, in no event will a Grantor be required to
obtain control agreements or take any other action required by such applicable foreign jurisdiction to obtain perfection of the
Collateral Agent’s security interests under the laws of the applicable foreign jurisdiction in respect of foreign Securities
Accounts or Deposit Accounts. The Collateral Agent shall not be responsible for determining whether Company has used “commercially
reasonable efforts” hereunder.

 

4.5          Annual
Certificates.

 

The
Officer’s Certificate delivered to the Trustee pursuant to Section 5.04 of the Indenture shall certify as to each Grantor’s
compliance with the requirements of this Agreement.

 

4.6          Letter
of Credit Rights.

 

(a)           Representations
and Warranties. Each Grantor hereby represents and warrants that all letters of credit with an undrawn amount in excess of
$250,000 to which such Grantor is the beneficiary are listed on Schedule 4.6 hereto (as such schedule may be amended or
supplemented from time to time). 

 

(b)           Covenants
and Agreements. Each Grantor hereby covenants and agrees that with respect to any letter of credit with an undrawn amount
in excess of $250,000 hereafter arising it shall use commercially reasonable efforts for a period of thirty (30) days to obtain
the consent of the issuer thereof to the assignment of the proceeds of the letter of credit to Collateral Agent and shall deliver
to Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A attached hereto, together with
all applicable Supplements to Schedules thereto. The Collateral Agent shall not be responsible for determining whether Company
has used “commercially reasonable efforts” hereunder.

 

4.7          Intellectual
Property.

 

(a)           Representations
and Warranties. Each Grantor hereby represents and warrants, on the Issue Date, that: 

 

(i)             Schedule
4.7 (as such schedule may be amended or supplemented from time to time) sets forth a true and complete list of all United
States, state and foreign registrations of and applications for Patents, Trademarks, and Copyrights owned by each Grantor; 

 

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(ii)           it
is the sole and exclusive owner of the entire right, title, and interest in and to all Intellectual Property on Schedule
4.7 (as may be amended or supplemented from time to time), and owns or has the valid right to use, or could obtain such
rights upon terms that are not materially adverse, all other Intellectual Property used in or necessary to conduct its
business, free and clear of all Liens, claims, encumbrances and licenses, except for Permitted Liens; 

 

(iii)          to
such Grantor’s knowledge, all Intellectual Property material to the business of such Grantor is subsisting and has not been
adjudged invalid or unenforceable, in whole or in part, and such Grantor has performed all acts and has paid all renewal, maintenance,
and other fees and taxes required to maintain each and every registration and application of material Intellectual Property in
full force and effect; 

 

(iv)          to
such Grantor’s knowledge, all Intellectual Property material to the business of such Grantor is valid and enforceable; no
holding, decision, or judgment has been rendered in any action or proceeding before any court or administrative authority challenging
the validity of, such Grantor’s right to register, or such Grantor’s rights to own or use, any Intellectual Property
and no such action or proceeding is pending or, to such Grantor’s knowledge, threatened, that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect; 

 

(v)           to
such Grantor’s knowledge, the conduct of such Grantor’s business does not infringe upon any trademark, patent, copyright,
trade secret or similar intellectual property right owned or controlled by a third party; and, to such Grantor’s knowledge,
no claim has been made that the use of any Intellectual Property owned or used by Grantor (or any of its respective licensees)
violates the asserted rights of any third party that could reasonably be expected to have a Material Adverse Effect; 

 

(vi)          to
such Grantor’s knowledge, no third party is infringing upon any Intellectual Property owned or used by such Grantor, or
any of its respective licensees; 

 

(vii)         no
settlement or consents, covenants not to sue, nonassertion assurances, or releases have been entered into by Grantor or to which
Grantor is bound that adversely affect such Grantor’s rights to own or use any Intellectual Property material to the business
of such Grantor; and 

 

(viii)        such
Grantor has not made a previous assignment, sale, transfer or agreement constituting a present or future assignment, sale, transfer
or agreement of any Intellectual Property that has not been terminated or released. There is no effective financing statement
or other document or instrument now executed, or on file or recorded in any public office, granting a security interest in or
otherwise encumbering any part of the Intellectual Property, other than in favor of the Collateral Agent. 

 

(b)           Covenants
and Agreements. Each Grantor hereby covenants and agrees as follows: 

 

(i)            In
order to facilitate filings with the United States Patent and Trademark Office and the United States Copyright Office, each Grantor
shall execute and deliver to Collateral Agent one or more Copyright Security Agreements, Trademark Security Agreements, or Patent
Security Agreements, or supplements thereto, to further evidence Collateral Agent’s Lien on such Grantor’s Patents,
Trademarks, or Copyrights, and the General Intangibles of such Grantor relating thereto or represented thereby.

 

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(ii)           it
shall not do any act or omit to do any act whereby any of the Intellectual Property which is material to the business of Grantors,
taken as a whole, may lapse, or become abandoned, dedicated to the public, or unenforceable, or which would adversely affect in
any material respect the validity, grant, or enforceability of the security interest in favor of Collateral Agent granted therein;

 

(iii)          it
shall not, with respect to any Trademarks which are material to the business of Grantors, taken as a whole, cease the use of any
of such Trademarks or fail to maintain the level of the quality of products sold and services rendered under any of such Trademark
at a level at least substantially consistent with the quality of such products and services as of the date hereof, and each Grantor
shall take all steps necessary to insure that licensees of such Trademarks use such consistent standards of quality; 

 

(iv)          it
shall promptly notify Collateral Agent if it knows that any item of the Intellectual Property that is material to the business
of Grantors, taken as a whole, may become (A) abandoned or dedicated to the public or placed in the public domain, (B) invalid
or unenforceable, or (C) subject to any adverse determination or development (including the institution of proceedings) in any
action or proceeding in the United States Patent and Trademark Office, the United States Copyright Office, and state registry,
any foreign counterpart of the foregoing, or any court; 

 

(v)           it
shall take all reasonable steps in the United States Patent and Trademark Office, the United States Copyright Office, any state
registry or any foreign counterpart of the foregoing, to pursue any application and maintain any registration of each Trademark,
Patent, and Copyright owned by any Grantor and material to the business of Grantors, taken as a whole,which is now or shall become
included in the Intellectual Property; 

 

(vi)          if
any Intellectual Property material to the business of Grantors taken as a whole, owned by or exclusively licensed to such Grantor
is infringed, misappropriated, or diluted by a third party, such Grantor shall promptly take all reasonable actions as it determines
are appropriate in the exercise of its commercially reasonable judgment, to stop such infringement, misappropriation, or dilution
and protect its exclusive rights in such Intellectual Property including, but not limited to, the initiation of a suit for injunctive
relief and to recover damages, except where failure to take such action could not reasonably be expected to result in a Material
Adverse Effect; 

 

(vii)         it
shall promptly report to Collateral Agent (A) the filing of any application to register any Intellectual Property with the United
States Patent and Trademark Office, the United States Copyright Office or any state registry (whether such application is filed
by such Grantor or through any trustee, employee, licensee, or designee thereof) and (B) the registration of any Intellectual
Property by any such office, in each case by executing and delivering to Collateral Agent a completed Pledge Supplement, substantially
in the form of Exhibit A attached hereto, together with all applicable Supplements to Schedules thereto; and 

 

(viii)        it
shall use proper statutory notice in connection with its use of any of the Intellectual Property, material to the business of
Grantors, taken as a whole. 

 

4.8          Commercial
Tort Claims.

 

(a)           Representations
and Warranties. Each Grantor hereby represents and warrants that Schedule 4.8 (as such schedule may be amended or supplemented
from time to time) sets forth all Commercial Tort Claims of each Grantor in excess of $250,000 individually or $1,000,000 in the
aggregate. 

 

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(b)           Covenants
and Agreements. Each Grantor hereby covenants and agrees that with respect to any Commercial Tort Claim in excess of $250,000
individually or $1,000,000 in the aggregate hereafter arising it shall deliver to Collateral Agent a completed Pledge Supplement,
substantially in the form of Exhibit A attached hereto, together with all applicable Supplements to Schedules thereto,
identifying such new Commercial Tort Claims. Unless and until Collateral Agent shall actually receive such Pledge Supplement,
Collateral Agent may assume without inquiry that no such Pledge Supplement is required to be delivered to it. 

 

4.9          Subsidiaries.
If any Person becomes a Guarantor, Company and such Guarantor shall (a) promptly cause such Guarantor to become a Grantor under
this Agreement by executing and delivering to Collateral Agent a Counterpart Agreement, and (b) take, or cause such Guarantor
to take, all such actions and to execute and deliver, or cause to be executed and delivered, in respect of all of its assets that
constitute Collateral all such documents, instruments, agreements and certificates as may be necessary, or as may otherwise be
reasonably requested by Collateral Agent, to grant a perfected first-priority Lien, subject only to Permitted Liens, on the assets
of such Guarantor constituting Collateral to the extent required by this Agreement. If any Person becomes a Foreign Subsidiary
of Company, and the ownership interests of such Foreign Subsidiary are owned by any Grantor, such Grantor shall deliver all such
documents, instruments, agreements, and certificates as may reasonably be requested by Collateral Agent, and such Grantor take
all of the actions necessary to grant and to perfected first priority Lien in favor of Collateral Agent, for the benefit of Secured
Parties, hereunder in such ownership interests.

 

4.10        Real
Estate Assets. The Company or the applicable Grantor shall deliver all items set forth in Section 3.5 of the Mortgages within
the timeframe set forth therein. If any Grantor acquires a Material Real Estate Asset or a Real Estate Asset owned on the Closing
Date becomes a Material Real Estate Asset and such interest has not otherwise been made subject to the Lien of the Collateral
Documents in favor of Collateral Agent, for the benefit of Secured Parties, then such Grantor shall take all such actions and
execute and deliver, or cause to be executed and delivered, (i) a real property mortgage in customary form, on substantially the
same terms and conditions as the Mortgages, subject to any changes necessary to reflect differences in applicable law in the jurisdiction
of such Material Real Estate Asset, any changes in applicable law since the Closing Date and whether such Grantor holds fee or
leasehold title, and substance and any other documents or instruments as are required to vest in the Collateral Agent a perfected
first priority security interest (subject to Permitted Liens) in such Material Real Estate Asset and (ii) a customary survey,
title insurance policy and opinion of counsel with respect to such Material Real Estate Asset and such real property mortgage,
as applicable. 

 

SECTION
5 -- ACCESS; RIGHT OF INSPECTION AND FURTHER

ASSURANCES; ADDITIONAL GRANTORS.

 

5.1          Right
of Inspection; Access. Collateral Agent shall at all times, upon reasonable prior written notice, have access during normal
business hours to all the books, correspondence and records of each Grantor, and Collateral Agent and its representatives may
examine the same, take extracts therefrom and make photocopies thereof, and each Grantor agrees to render to Collateral Agent,
at such Grantor’s cost and expense, such clerical and other assistance as may be reasonably requested with regard thereto.
Upon reasonable prior written notice, Collateral Agent and its representatives shall also have the right to enter any premises
during normal business hours of each Grantor and inspect any property of each Grantor where any of the Collateral of such Grantor
granted pursuant to this Agreement is located for the purpose of inspecting the same, observing its use or otherwise protecting
its interests therein. Notwithstanding the foregoing, unless an Event of Default exists, such access and inspections shall be
limited to not more than one time in any calendar year.

 

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5.2          Further
Assurances.

 

(a)           Each
Grantor agrees that from time to time, at the expense of such Grantor, that it shall promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary or desirable, or that Collateral Agent may reasonably
request, in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted
or purported to be granted hereby or to enable Collateral Agent to exercise and enforce its rights and remedies hereunder with
respect to Collateral. Without limiting the generality of the foregoing, each Grantor shall: 

 

(i)             file
such financing or continuation statements, or amendments thereto, and execute and deliver such other agreements, instruments,
endorsements, powers of attorney or notices, as may be necessary or desirable, in order to perfect and preserve the security interests
granted or purported to be granted hereby; 

 

(ii)            take
all actions necessary to ensure the recordation of appropriate evidence of the liens and security interest granted hereunder in
the Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office, and the various
Secretaries of States; and; 

 

(iii)          at
any reasonable time, upon request by Collateral Agent, assemble the Collateral and allow inspection of the Collateral by Collateral
Agent, or persons designated by Collateral Agent; and 

 

(iv)          at
Collateral Agent’s reasonable request, appear in and defend any action or proceeding that may affect such Grantor’s
title to or Collateral Agent’s security interest in all or any material part of the Collateral. 

 

(b)       Each
Grantor hereby authorizes Collateral Agent to file (in the event the Grantor fails to do so in the first instance, but without
any obligation of Collateral Agent to do so) a Record or Records, including, without limitation, financing or continuation statements,
and amendments thereto, in any jurisdictions and with any filing offices as are necessary or advisable to perfect the security
interest granted to Collateral Agent herein. Such financing statements may describe the Collateral in the same manner as described
herein or may contain an indication or description of collateral that describes such property in any other manner as is necessary
or advisable to ensure the perfection of the security interest in the Collateral granted to Collateral Agent herein, including,
without limitation, describing such property as “all assets” or “all personal property, whether now owned or
hereafter acquired.” Each Grantor shall furnish to Collateral Agent from time to time statements and schedules further identifying
and describing the Collateral and such other reports in connection with the Collateral as Collateral Agent may reasonably request,
all in reasonable detail. 

 

5.3          Additional
Grantors. From time to time subsequent to the date hereof, additional Persons may become parties hereto as additional
Grantors (each, an “Additional Grantor”), by executing a counterpart agreement in the form attached as Exhibit
B hereto (“Counterpart Agreement”). Upon delivery of any such Counterpart Agreement to Collateral
Agent, notice of which is hereby waived by each of the other Grantors, each Additional Grantor shall be a Grantor and shall
be as fully a party hereto as if Additional Grantor were an original signatory hereto. Each Grantor expressly agrees that its
obligations arising hereunder shall not be affected or diminished by the addition or release of any other Grantor hereunder.
This Agreement shall be fully effective as to any Grantor that is or has become a party hereto regardless of whether any
other Person becomes or fails to become or ceases to be a Grantor hereunder.

 

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SECTION
6 -- COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.

 

6.1          Power
of Attorney. To the extent permitted by applicable law, each Grantor hereby irrevocably appoints Collateral Agent (such appointment
being coupled with an interest), on behalf of the Secured Parties, and each of its designees or agents as such Grantor’s
attorney-in-fact, irrevocably and with full authority in the place and stead of such Grantor and in the name of such Grantor,
to take any action and to execute any instrument necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation, the following (which if so specified, Collateral Agent shall be entitled to exercise only during the existence
of an Event of Default):

 

(a)           upon
the occurrence and during the continuance of any Event of Default, to obtain and adjust insurance required to be maintained by
such Grantor or paid to Collateral Agent pursuant to the Indenture; 

 

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

 

(c)           upon
the occurrence and during the continuance of any Event of Default, to receive, endorse and collect any drafts or other instruments,
documents and chattel paper in connection with clause (b) above; 

 

(d)           upon
the occurrence and during the continuance of any Event of Default, to file any claims or take any action or institute any proceedings
that Collateral Agent (acting at the written direction of Majority Holders) may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of Collateral Agent with respect to any of the Collateral; 

 

(e)           in
the event the Grantor fails to do so in the first instance, to prepare and file any UCC financing statements naming such Grantor
as debtor as contemplated by Section 5.2(b); 

 

(f)            to
prepare and file for recordation in any intellectual property registry, appropriate evidence of the lien and security interest
granted herein in the Intellectual Property in the name of such Grantor; 

 

(g)           upon
the occurrence and during the continuance of an Event of Default, to take or cause to be taken all actions necessary to perform
or comply or cause performance or compliance with the terms of this Agreement, including, without limitation, access to pay or
discharge taxes or Liens (other than Permitted Liens) levied or placed upon or threatened against the Collateral, the legality
or validity thereof and the amounts necessary to discharge the same to be determined by Collateral Agent (acting at the written
direction of Majority Holders), any such related costs, expenses, disbursements or payments made by Collateral Agent to become
obligations of such Grantor to Collateral Agent, due and payable immediately without demand; and 

 

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

 

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6.2          No
Implied Duty on the Part of Collateral Agent or Secured Parties. It is expressly understood and agreed that the obligations
of Collateral Agent as holder of the Collateral and interest therein, and with respect to the disposition thereof, and otherwise
under this Agreement, are only those expressly set forth in this Agreement, the Indenture and the Collateral Agency Agreement.
The powers conferred on Collateral Agent hereunder are solely to protect the interests of the Secured Parties in the Collateral
and shall not impose any duty upon Collateral Agent or any Secured Party to exercise any such powers. Collateral Agent shall act
hereunder on the terms and conditions set forth in this Agreement, the Indenture and the Collateral Agency Agreement. Collateral
Agent and the Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of
such powers, and neither they nor any of their officers, directors, employees or trustees shall be responsible to any Grantor
for any act or failure to act hereunder, except for their own gross negligence or willful misconduct.

 

SECTION
7 -- REMEDIES.

 

7.1          Generally.

 

(a)           If
any Event of Default shall have occurred and be continuing, Collateral Agent (acting at the written direction of Majority Holders)
may exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available
to it at law or in equity, all the rights and remedies of a secured party on default under the UCC (whether or not the UCC applies
to the affected Collateral) to collect, enforce or satisfy any Secured Obligations then owing, whether by acceleration or otherwise,
and also, to the extent permitted by applicable law, may pursue any of the following separately, successively or simultaneously:

 

(i)            require
any Grantor to, and each Grantor hereby agrees that it shall at its expense and promptly upon request of Collateral Agent forthwith,
assemble all or part of the Collateral as directed by Collateral Agent and make it available to Collateral Agent at a place to
be designated by Collateral Agent that is reasonably convenient to both parties; 

 

(ii)           enter
onto the property where any Collateral is located and take possession thereof with or without judicial process; 

 

(iii)          prior
to the disposition of the Collateral, store, process, repair or recondition the Collateral or otherwise prepare the Collateral
for disposition in any manner as the Collateral Agent shall request; and 

 

(iv)          without
notice except as specified below or under the UCC, sell, assign, lease, license (on an exclusive or nonexclusive basis) or otherwise
dispose of the Collateral or any part thereof in one or more parcels at public or private sale, at any of Collateral Agent’s
offices or elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or prices and upon such
other terms as Collateral Agent may deem commercially reasonable. 

 

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(b)           Collateral
Agent or any Secured Party may be the purchaser of any or all of the Collateral at any public or private (to the extent to portion
of the Collateral being privately sold is of a kind that is customarily sold on a recognized market or the subject of widely distributed
standard price quotations) sale in accordance with the UCC and Collateral Agent, as Collateral Agent for and representative of
the Secured Parties, shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for
all or any portion of the Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the Secured
Obligations as a credit on account of the purchase price for any Collateral payable by Collateral Agent at such sale. Each purchaser
at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor
hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or
may at any time in the future have under any rule of law or statute now existing or hereafter enacted. Each Grantor agrees that,
to the extent notice of sale shall be required by law, at least ten (10) days notice to such Grantor of the time and place of
any public sale or the time after which any private sale is to be made shall constitute reasonable notification. Collateral Agent
shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. Collateral Agent may adjourn
any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that it would not be commercially
unreasonable for Collateral Agent to dispose of the Collateral or any portion thereof by using 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. Each Grantor hereby waives any claims against Collateral Agent arising by reason of the fact that
the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained
at a public sale, even if Collateral Agent accepts the first offer received and does not offer such Collateral to more than one
offeree. If the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the Secured Obligations,
Grantors shall be liable for the deficiency and the reasonable fees of any attorneys employed by Collateral Agent to collect such
deficiency. Each Grantor further agrees that a breach of any of the covenants contained in this Section will cause irreparable
injury to Collateral Agent, that Collateral Agent has no adequate remedy at law in respect of such breach and, as a consequence,
that each and every covenant contained in this Section shall be specifically enforceable against such Grantor, and such Grantor
hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a
defense that no default has occurred giving rise to the Secured Obligations becoming due and payable prior to their stated maturities
or payment in full thereof. 

 

(c)           Collateral
Agent may sell the Collateral without giving any warranties as to the Collateral. Collateral Agent may specifically disclaim or
modify any warranties of title or the like. This procedure will not be considered to adversely effect the commercial reasonableness
of any sale of the Collateral. 

 

(d)           Collateral
Agent shall have no obligation to marshal any of the Collateral. 

 

7.2          Application
of Proceeds. Except as expressly provided elsewhere in this Agreement, to the extent permitted by applicable law, all proceeds
received by Collateral Agent in respect of any sale, any collection from, or other realization upon all or any part of the Collateral
shall be applied in full or in part by Collateral Agent as set forth in the Collateral Agency Agreement.

 

7.3          Sales
on Credit. If Collateral Agent sells any of the Collateral upon credit, Grantor will be credited only with payments actually
made by purchaser and received by Collateral Agent and applied to indebtedness of such purchaser. In the event such purchaser
fails to pay for the Collateral, Collateral Agent may resell the Collateral and Grantor shall be credited with proceeds of the
sale.

 

7.4          Deposit
Accounts. If any Event of Default shall have occurred and be continuing, Collateral Agent (acting at the written direction
of Majority Holders) may apply, to the extent permitted by applicable law, the balance from any Deposit Account or instruct the
bank at which any Deposit Account is maintained to pay the balance of any Deposit Account to or for the benefit of Collateral
Agent.

 

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7.5          Investment
Related Property. Each Grantor recognizes that, by reason of certain prohibitions contained in the Securities Act and applicable
state securities laws, Collateral Agent may be compelled, with respect to any sale of all or any part of the Investment Related
Property conducted without prior registration or qualification of such Investment Related Property under the Securities Act and/or
such state securities laws, to limit purchasers to those who will agree, among other things, to acquire the Investment Related
Property for their own account, for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges
that any such private sale may be at prices and on terms less favorable than those obtainable through a public sale without such
restrictions (including a public offering made pursuant to a registration statement under the Securities Act) and, notwithstanding
such circumstances, each Grantor agrees that any such private sale shall be deemed to have been made in a commercially reasonable
manner and that Collateral Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any
Investment Related Property for the period of time necessary to permit the issuer thereof to register it for a form of public
sale requiring registration under the Securities Act or under applicable state securities laws, even if such issuer would, or
should, agree to so register it. If Collateral Agent (acting at the written direction of Majority Holders) determines to exercise
its right to sell any or all of the Investment Related Property, upon written request, each Grantor shall and shall cause each
issuer of any Pledged Stock to be sold hereunder, each partnership and each limited liability company interests in which have
been pledged hereunder from time to time to furnish to Collateral Agent all such information as Collateral Agent may request in
order to determine the number and nature of interest, shares or other instruments included in the Investment Related Property
which may be sold by Collateral Agent in exempt transactions under the Securities Act and the rules and regulations of the Securities
and Exchange Commission thereunder, as the same are from time to time in effect.

 

7.6          Cash
Proceeds. In addition to the rights of Collateral Agent specified in Section 4.3 with respect to Receivables, all proceeds
of any Collateral received by Collateral Agent hereunder (whether from a Grantor or otherwise) consisting of cash, checks and
other near-cash items (collectively, “Cash Proceeds”) shall be returned to the applicable Grantor, provided
that, if an Event of Default shall have occurred and be continuing, the Collateral Agent may, in the sole discretion of Collateral
Agent (acting at the written direction of Majority Holders), (A) be held by Collateral Agent for the ratable benefit of the Secured
Parties, as collateral security for the Secured Obligations (whether matured or unmatured) and/or (B) then or at any time thereafter
may be applied by Collateral Agent against the Secured Obligations then due and owing.

 

7.7          Intellectual
Property. (a) Anything contained herein to the contrary notwithstanding, pursuant to the Note Documents and to the extent
permitted by applicable law, upon the occurrence and during the continuation of an Event of Default:

 

(i)             Collateral
Agent shall have the right (but not the obligation) to bring suit or otherwise commence any action or proceeding in the name of
any Grantor, Collateral Agent or otherwise, to enforce any Intellectual Property, in which event such Grantor shall, at the request
of Collateral Agent, do any and all lawful acts and execute any and all documents reasonably required by Collateral Agent in aid
of such enforcement and such Grantor shall promptly, upon demand, reimburse and indemnify Collateral Agent as provided in Section
10 hereof in connection with the exercise of its rights under this Section, and, to the extent that Collateral Agent shall
not bring suit to enforce any Intellectual Property as provided in this Section, each Grantor agrees to use all reasonable measures,
whether by action, suit, proceeding or otherwise, to prevent the infringement of any of the Intellectual Property by others and
for that purpose agrees to diligently maintain any action, suit or proceeding against any Person so infringing as shall be necessary
to prevent such infringement; 

 

(ii)            upon
written demand from Collateral Agent (acting at the written direction of Majority Holders), each Grantor shall grant, assign,
convey or otherwise transfer to Collateral Agent an absolute assignment of all of such Grantor’s right, title and interest
in and to the Intellectual Property and shall execute and deliver to Collateral Agent such documents as are reasonably necessary
or appropriate to carry out the intent and purposes of this Agreement; 

 

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(iii)          each
Grantor agrees that such an assignment and/or recording shall be applied to reduce the Secured Obligations outstanding only to
the extent that Collateral Agent (or any Secured Party) receives cash proceeds in respect of the sale of, or other realization
upon, the Intellectual Property; 

 

(iv)          [reserved];

 

(v)           Collateral
Agent shall have the right to notify, or require each Grantor to notify, any obligors with respect to amounts due or to become
due to such Grantor in respect of the Intellectual Property, of the existence of the security interest created herein, to direct
such obligors to make payment of all such amounts directly to Collateral Agent, and, upon such notification and at the expense
of such Grantor, to enforce collection of any such amounts and to adjust, settle or compromise the amount or payment thereof,
in the same manner and to the same extent as such Grantor might have done; 

 

(vi)          all
amounts and proceeds (including checks and other instruments) received by Grantor in respect of amounts due to such Grantor in
respect of the Collateral or any portion thereof shall be received in trust for the benefit of Collateral Agent hereunder, shall
be segregated from other funds of such Grantor and shall be forthwith paid over or delivered to Collateral Agent in the same form
as so received (with any necessary endorsement) to be held as cash Collateral and applied as provided by Section 7.6 hereof;
and 

 

(vii)         except
as otherwise provided herein, Grantor shall not adjust, settle or compromise the amount or payment of any such amount or release
wholly or partly any obligor with respect thereto or allow any credit or discount thereon. 

 

(b)           If
(i) an Event of Default shall have occurred and, by reason of cure, waiver, modification, amendment or otherwise, no longer be
continuing, (ii) no other Event of Default shall have occurred and be continuing, (iii) an assignment or other transfer to Collateral
Agent of any rights, title and interests in and to the Intellectual Property shall have been previously made and shall have become
absolute and effective, and (iv) the Secured Obligations shall not have become immediately due and payable, upon the written request
of any Grantor, Collateral Agent shall promptly execute and deliver to such Grantor, at such Grantor’s sole cost and expense,
such assignments or other transfer documents, in form and substance reasonable satisfactory to Collateral Agent as may be necessary
to reassign to such Grantor any such rights, title and interests as may have been assigned to Collateral Agent as aforesaid, subject
to any disposition thereof that may have been made by Collateral Agent; provided, after giving effect to such reassignment,
Collateral Agent’s security interest granted pursuant hereto, as well as all other rights and remedies of Collateral Agent
granted hereunder, shall continue to be in full force and effect.

 

(c)           Solely
for the purpose of enabling Collateral Agent to exercise rights and remedies under this Section 7 and at such time as Collateral
Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to Collateral Agent, to the
extent it has the right to do so, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation
to such Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such
Grantor to avoid the risk of invalidation of said Trademarks, to use, operate under, license, or sublicense any Intellectual Property
now owned or hereafter acquired by such Grantor, and wherever the same may be located.

 

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SECTION
8 -- CONTINUING SECURITY INTEREST.

 

This
Agreement shall create a continuing security interest in the Collateral and shall remain in full force and effect until the payment
in full of all Secured Obligations, be binding upon each Grantor, its successors and assigns, and inure, together with the rights
and remedies of Collateral Agent hereunder, to the benefit of Collateral Agent and its successors, transferees and assigns. Upon
the payment in full of all Secured Obligations, and as otherwise provided in the Note Documents, the security interest granted
hereby shall terminate hereunder and of record and all rights to the Collateral shall revert to Grantors. Upon any such termination
Collateral Agent shall, at Grantors’ expense, execute and deliver to Grantors such documents, in form and substance reasonably
satisfactory to Collateral Agent, as Grantors shall reasonably request to evidence such termination. Subject to Section 13.03
of the Indenture, upon any disposition of property of Grantors permitted under the Indenture, the Liens granted herein shall be
deemed automatically released without further action on the part of any Person (but excluding any transaction subject to Article
6 of the Indenture where the recipient is required to become the obligor on the Notes or a Guarantor).

 

SECTION
9 -- STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

 

The
powers conferred on Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty
upon it to exercise any such powers. Except for the exercise of reasonable care in the custody of any Collateral while being held
by Collateral Agent hereunder and the accounting for moneys actually received by it hereunder, Collateral Agent shall have no
duty or liability as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or
any other rights pertaining to any Collateral, it being understood and agreed that Grantors shall be responsible for preservation
of all rights in the Collateral of such Grantor, and Collateral Agent shall be relieved of all responsibility for the Collateral
upon surrendering it or tendering the surrender of it to the Grantors. Collateral Agent shall be deemed to have exercised reasonable
care in the custody and preservation of Collateral in its possession if such Collateral is accorded treatment substantially equal
to that which Collateral Agent accords its own property, it being understood that Collateral Agent shall not have responsibility
for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating
to any Collateral, whether or not any Collateral Agent has or is deemed to have knowledge of such matters, (ii) taking any necessary
steps to preserve rights against any parties with respect to any Collateral, and (iii) to the maximum extent permitted by law,
for any actions or inactions expect to the extent caused by the gross negligence or willful misconduct of Collateral Agent or
its officers, employees or agents, in each case as determined by a court of competent jurisdiction. Neither Collateral Agent nor
any of its directors, officers, employees or agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral
upon the request of any Grantor or otherwise.

 

The
parties hereto agree that the Collateral Agent shall be afforded all of the rights, protections, indemnities, immunities and privileges
afforded to the Collateral Agent in the Collateral Agency Agreement (including, but not limited to, those set forth in Section
6 thereof) in connection with its execution of this Agreement and the performance of its obligations hereunder.

 

    -28-

     

    

 

SECTION
10 -- MISCELLANEOUS.

 

Any
notice required or permitted to be given under this Agreement shall be given in accordance with Section 8.2 of the Collateral
Agency Agreement. No failure or delay on the part of Collateral Agent in the exercise of any power, right or privilege hereunder
or under any other Note Document shall impair such power, right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other power, right or privilege. Except as otherwise provided in the Note Documents, the Grantors hereby
waive presentment, demand, protest or any notice (to the extent permitted by applicable law) of any kind in connection with this
Agreement and the other Collateral Documents. All rights and remedies existing under this Agreement and the other Note Documents
are cumulative to, and not exclusive of, any rights or remedies otherwise available. In case any provision in or obligation under
this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the
remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected
or impaired thereby. All covenants hereunder shall be given independent effect so that if a particular action or condition is
not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the
limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or
condition exists. This Agreement shall be binding upon and inure to the benefit of Collateral Agent and Grantors and their respective
successors and assigns. No Grantor shall assign any right, duty or obligation hereunder, without the consent of the Collateral
Agent (to be given or withheld at the written direction of Majority Holders). This Agreement and the other Note Documents embody
the entire agreement and understanding between Grantors and Collateral Agent and supersede all prior agreements and understandings
between such parties relating to the subject matter hereof and thereof. Accordingly, the Note Documents may not be contradicted
by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements between
the parties. This Agreement may be executed in one or more counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute
but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the same document.

 

THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATION
LAWS). In connection with any suit, action or proceeding (“Proceeding”) involving, directly or indirectly, any matter
in any way arising out of, related to or connected with this Agreement, each party hereby irrevocably (i) submits to the non-exclusive
jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in
New York City situated in New York City, New York and (ii) waives any objection which it may have at any time to the laying of
venue of any such Proceeding brought in any such court, waives any claim that any such Proceeding has been brought in an inconvenient
forum and further waives the right to object, with respect to any such Proceeding, that such court does not have any jurisdiction
over such party. Each Grantor hereby waives personal service of process upon it and consents that any such service of process
may be made by certified or registered mail, return receipt requested, directed to Grantor at the last specified address for notice
hereunder, and service so made shall be deemed completed five (5) days after the same shall have been marked. The parties hereby
waive their right to trial by jury in any such Proceeding.

 

[Remainder
of page intentionally left blank]

 

    -29-

     

    

 

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

 

	 	COLLATERAL AGENT

                                                                      
 THE BANK OF NEW YORK MELLON

                                                                     TRUST COMPANY, N.A. 
	 
	 	 	 
	 	By: 	 /s/
    R. Tarnas	 
	 	 	Name: 	 R. Tarnas	 
	 	 	Title: 	Vice
President 
	 

 

     

     

    

 

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

 

	 	GRANTORS

                                                                      

                                                                     AKOUSTIS TECHNOLOGIES, INC. 

                                                                      
	 
	 	By: 	/s/
    John T. Kurtzweil	 
	 	 	Name: 	John T. Kurtzweil	 
	 	 	Title: 	Chief Financial Officer	 
	 	 	 	 	 
	 	       AKOUSTIS, INC.

         
	 
	 	By: 	/s/
    John T. Kurtzweil	 
	 	 	Name: 	John T. Kurtzweil	 
	 	 	Title: 	Chief Financial Officer

	 

 

     

     

    

 

EXHIBIT
A

TO PLEDGE AND SECURITY AGREEMENT 

 

PLEDGE
SUPPLEMENT

 

This
PLEDGE SUPPLEMENT, dated [mm/dd/yy], is delivered pursuant to the PLEDGE AND SECURITY AGREEMENT, dated as of May
14, 2018 (as it may be from time to time amended, restated, modified or supplemented, the “Security Agreement”),
among AKOUSTIS TECHNOLOGIES, INC., the other Grantor named therein, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Collateral Agent. Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto in the
Security Agreement.

 

Grantor
hereby confirms the grant to Collateral Agent set forth in the Security Agreement of, and does hereby grant to Collateral Agent,
a security interest in all of Grantor’s right, title and interest in and to all Collateral to secure the Secured Obligations,
in each case whether now or hereafter existing or in which Grantor now has or hereafter acquires an interest and wherever the
same may be located. Grantor represents and warrants that the attached Supplements to Schedules accurately and completely set
forth all additional information required pursuant to the Security Agreement as of the date set forth therein, and hereby agrees
that such Supplements to Schedules shall constitute part of the Schedules to the Security Agreement.

 

IN
WITNESS WHEREOF, Grantor has caused this Pledge Supplement to be duly executed and delivered by its duly authorized officer
as of [mm/dd/yy].

 

	 	[NAME OF GRANTOR]

     	 
	 	By: 	 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 
	 

     

     

    

 

EXHIBIT
B

TO PLEDGE AND SECURITY AGREEMENT 

 

FORM
OF COUNTERPART AGREEMENT

 

[Date]

 

The
Bank of New York Mellon Trust Company, N.A.

as Collateral Agent

for the Secured Obligations

in the Pledge and Security Agreement

referred to below

 

          Attn:

 

[Name
of Additional Grantor]

 

Ladies
and Gentlemen:

 

Reference
is made to the Pledge and Security Agreement dated as of May 14, 2018 (as amended, restated, supplemented or otherwise modified
from time to time, the “Pledge and Security Agreement”), among Akoustis Technologies, Inc., a Delaware corporation,
(the “Company”), the other Grantor party thereto and The Bank of New York Mellon Trust Company, N.A., as Collateral
Agent (“Collateral Agent”). Terms defined in the Pledge and Security Agreement and not otherwise defined herein
are as defined in the Pledge and Security Agreement.

 

Pursuant
to [Section 4.9/5.3] of the Pledge and Security Agreement, the undersigned hereby agrees, as of the date first above written,
to be bound as a Grantor by all of the terms and provisions of the Pledge and Security Agreement to the same extent as the other
Grantor. The undersigned further agrees, as of the date first above written, that each reference in the Pledge and Security Agreement
to a “Grantor” shall also mean and be a reference to the undersigned.

 

This
Supplement to Pledge and Security Agreement shall be governed by, and construed in accordance with, the laws of the State of New
York. 

	 	 	 	 	 
	 	Very truly yours,

    

    [NAME OF ADDITIONAL GRANTOR]

     	 
	 	By: 	 	 
	 	 	Title: 
	 
	 

    EXHIBIT B-1

     

    

 

EXHIBIT
C

to Security Agreement

 

COPYRIGHT
SECURITY AGREEMENT

(Copyrights, Copyright Registrations, Copyright

Applications and Copyright Licenses)

 

________
___, 20__

 

WHEREAS,
[name of Lien Grantor], a _____________ corporation (herein referred to as the “Lien Grantor”) owns, or in
the case of licenses is a party to, the Copyright Collateral (as defined below);

 

WHEREAS,
Akoustis Technologies, Inc., Akoustis, Inc., as guarantor and The Bank of New York Mellon Trust Company, N.A., as trustee, are
parties to an Indenture dated as of May 14, 2018 (as amended from time to time, the “Indenture”); and

 

WHEREAS,
pursuant to (i) a Pledge and Security Agreement dated as of May 14, 2018 (as amended, restated, supplemented or otherwise modified
from time to time, the “Security Agreement”) among Akoustis Technologies, Inc., the other grantors party thereto
and The Bank of New York Mellon Trust Company, N.A., as collateral agent for the Secured Parties referred to therein (in such
capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other loan documents
(including this Copyright Security Agreement), the Lien Grantor has [secured certain of its obligations (the “Secured
Obligations”)]1 [guaranteed certain obligations of Akoustis Technologies, Inc. and secured such guarantee
(the “Lien Grantor’s Transaction Guarantee”)]2 by granting to the Grantee for the benefit
of such Secured Parties a continuing security interest in personal property of the Lien Grantor, including all right, title and
interest of the Lien Grantor in, to and under the Copyright Collateral (as defined below);

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Lien Grantor
grants to the Grantee, to secure the [Secured Obligations] [Lien Grantor’s Transaction Guarantee], a continuing security
interest in all of the Lien Grantor’s right, title and interest in, to and under the following (all of the following items
or types of property being herein collectively referred to as the “Copyright Collateral”), whether now owned
or existing or hereafter acquired or arising:

 

(a)
each Copyright (as defined in the Security Agreement) owned by the Lien Grantor, including, without limitation, each Copyright
registration or application therefor referred to in Schedule 1 hereto;

 

(b)
each Copyright License (as defined in the Security Agreement) to which the Lien Grantor is a party, including, without limitation,
each Copyright License identified in Schedule 1 hereto; and

 

 

 

1
Delete these bracketed words if the Lien Grantor is a Guarantor. 

2
Delete these bracketed words if the Lien Grantor is the Borrower.

 

     

     

    

 

(c)
all proceeds of, revenues from, and accounts and general intangibles arising out of, the foregoing, including, without limitation,
all proceeds of and revenues from any claim by the Lien Grantor against third parties for past, present or future infringement
of any Copyright (including, without limitation, any Copyright owned by the Lien Grantor and identified in Schedule 1), and all
rights and benefits of the Lien Grantor under any Copyright License (including, without limitation, any Copyright License identified
in Schedule 1).

 

The
Lien Grantor irrevocably constitutes and appoints the Grantee and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full power and authority in the name of the Lien Grantor or in the Grantee’s
name, from time to time, in the Grantee’s discretion, so long as any Event of Default (as defined in the Indenture) shall
have occurred and be continuing, to take with respect to the Copyright Collateral any and all appropriate action which the Lien
Grantor might take with respect to the Copyright Collateral and to execute any and all documents and instruments which may be
necessary or desirable to carry out the terms of this Copyright Security Agreement and to accomplish the purposes hereof.

 

Except
to the extent expressly permitted in the Security Agreement or the Indenture, the Lien Grantor agrees not to sell, license, exchange,
assign or otherwise transfer or dispose of, or grant any rights with respect to, or mortgage or otherwise encumber, any of the
Copyright Collateral.

 

The
foregoing security interest is granted in conjunction with the security interests granted by the Lien Grantor to the Grantee pursuant
to the Security Agreement. The Lien Grantor acknowledges and affirms that the rights and remedies of the Grantee with respect
to the security interest in the Copyright Collateral granted hereby are more fully set forth in the Security Agreement, the terms
and provisions of which are incorporated by reference herein as if fully set forth herein.

 

     

     

    

 

IN
WITNESS WHEREOF, the Lien Grantor has caused this Copyright Security Agreement to be duly executed by its officer thereunto duly
authorized as of the day and year first written above.

 

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

 

	Acknowledged:	 
	 	 
	THE
    BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

    as Collateral Agent	 
	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

     

     

    

 

EXHIBIT
D

to Security Agreement

 

PATENT
SECURITY AGREEMENT

(Patents, Patent Applications and Patent Licenses)

 

________
___, 20__

 

WHEREAS,
[name of Lien Grantor], a _____________ corporation (herein referred to as the “Lien Grantor”) owns, or in
the case of licenses is a party to, the Patent Collateral (as defined below);

 

WHEREAS,
Akoustis Technologies, Inc., Akoustis, Inc., as guarantor and The Bank of New York Mellon Trust Company, N.A., as trustee, are
parties to an Indenture dated as of May 14, 2018 (as amended from time to time, the “Indenture”); and

 

WHEREAS,
pursuant to (i) a Pledge and Security Agreement dated as of May 14, 2018 (as amended, restated, supplemented or otherwise modified
from time to time, the “Security Agreement”) among Akoustis Technologies, Inc., the other grantors party thereto
and The Bank of New York Mellon Trust Company, N.A., as collateral agent for the Secured Parties referred to therein (in such
capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other loan documents
(including this Patent Security Agreement), the Lien Grantor has [secured certain of its obligations (the “Secured Obligations”)]3
[guaranteed certain obligations of Akoustis Technologies, Inc. and secured such guarantee (the “Lien Grantor’s
Transaction Guarantee”)]2 by granting to the Grantee for the benefit of such Secured Parties a continuing
security interest in personal property of the Lien Grantor, including all right, title and interest of the Lien Grantor in, to
and under the Patent Collateral (as defined below);

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Lien Grantor
grants to the Grantee, to secure the [Secured Obligations] [Lien Grantor’s Transaction Guarantee], a continuing security
interest in all of the Lien Grantor’s right, title and interest in, to and under the following (all of the following items
or types of property being herein collectively referred to as the “Patent Collateral”), whether now owned or
existing or hereafter acquired or arising:

 

(a)
each Patent (as defined in the Security Agreement) owned by the Lien Grantor, including, without limitation, each Patent referred
to in Schedule 1 hereto;

 

(b)
each Patent License (as defined in the Security Agreement) to which the Lien Grantor is a party, including, without limitation,
each Patent License identified in Schedule 1 hereto; and

 

(c)
all proceeds of and revenues from the foregoing, including, without limitation, all proceeds of and revenues from any claim by
the Lien Grantor against third parties for past, present or future infringement of any Patent owned by the Lien Grantor (including,
without limitation, any Patent identified in Schedule 1 hereto) and all rights and benefits of the Lien Grantor under any Patent
License (including, without limitation, any Patent License identified in Schedule 1 hereto).

 

 

 

3 Delete
these bracketed words if the Lien Grantor is a Guarantor. 

2
Delete these bracketed words if the Lien Grantor is the Borrower.

 

     

     

    

 

The
Lien Grantor irrevocably constitutes and appoints the Grantee and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full power and authority in the name of the Lien Grantor or in the Grantee’s
name, from time to time, in the Grantee’s discretion, so long as any Event of Default (as defined in the Indenture) shall
have occurred and be continuing, to take with respect to the Patent Collateral any and all appropriate action which the Lien Grantor
might take with respect to the Patent Collateral and to execute any and all documents and instruments which may be necessary or
desirable to carry out the terms of this Patent Security Agreement and to accomplish the purposes hereof.

 

Except
to the extent expressly permitted in the Security Agreement or the Indenture, the Lien Grantor agrees not to sell, license, exchange,
assign or otherwise transfer or dispose of, or grant any rights with respect to, or mortgage or otherwise encumber, any of the
Patent Collateral.

 

The
foregoing security interest is granted in conjunction with the security interests granted by the Lien Grantor to the Grantee pursuant
to the Security Agreement. The Lien Grantor acknowledges and affirms that the rights and remedies of the Grantee with respect
to the security interest in the Patent Collateral granted hereby are more fully set forth in the Security Agreement, the terms
and provisions of which are incorporated by reference herein as if fully set forth herein.

 

IN
WITNESS WHEREOF, the Lien Grantor has caused this Patent Security Agreement to be duly executed by its officer thereunto duly
authorized as of the day and year first written above.

 

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

 

 

	Acknowledged:	 
	 	 
	THE
    BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

    as Collateral Agent	 
	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

     

     

    

 

EXHIBIT
E

to Security Agreement

 

TRADEMARK
SECURITY AGREEMENT

(Trademarks, Trademark Registrations, Trademark

Applications and Trademark Licenses)

 

________
___, 20__

 

WHEREAS,
[name of Lien Grantor], a _____________ corporation (herein referred to as the “Lien Grantor”) owns, or in
the case of licenses is a party to, the Trademark Collateral (as defined below);

 

WHEREAS,
Akoustis Technologies, Inc., Akoustis, Inc., as guarantor and The Bank of New York Mellon Trust Company, N.A., as trustee, are
parties to an Indenture dated as of May 14, 2018 (as amended from time to time, the “Indenture”); and

 

WHEREAS,
pursuant to (i) a Pledge and Security Agreement dated as of May 14, 2018 (as amended, restated, supplemented or otherwise modified
from time to time, the “Security Agreement”) among Akoustis Technologies, Inc., the other grantors party thereto
and The Bank of New York Mellon Trust Company, N.A., as collateral agent for the Secured Parties referred to therein (in such
capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other loan documents
(including this Trademark Security Agreement), the Lien Grantor has [secured certain of its obligations (the “Secured
Obligations”)]1 [guaranteed certain obligations of Akoustis Technologies, Inc. and secured such guarantee
(the “Lien Grantor’s Transaction Guarantee”)]2 by granting to the Grantee for the benefit
of such Secured Parties a continuing security interest in personal property of the Lien Grantor, including all right, title and
interest of the Lien Grantor in, to and under the Trademark Collateral (as defined below);

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Lien Grantor
grants to the Grantee, to secure the [Secured Obligations] [Lien Grantor’s Transaction Guarantee], a continuing security
interest in all of the Lien Grantor’s right, title and interest in, to and under the following (all of the following items
or types of property being herein collectively referred to as the “Trademark Collateral”), whether now owned
or existing or hereafter acquired or arising:

 

(a)
each Trademark (as defined in the Security Agreement) owned by the Lien Grantor, including, without limitation, each Trademark
registration and application referred to in Schedule 1 hereto, and all of the goodwill of the business connected with the use
of, or symbolized by, each Trademark (provided that no security interest shall be granted in the United States intent-to-use trademark
applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair
the validity or enforceability of such intent-to-use trademark applications under applicable federal law);

 

(b)
each Trademark License (as defined in the Security Agreement) to which the Lien Grantor is a party, including, without limitation,
each Trademark License identified in Schedule 1 hereto, and all of the goodwill of the business connected with the use of, or
symbolized by, each Trademark licensed pursuant thereto; and

 

 

 

1
Delete these bracketed words if the Lien Grantor is a Guarantor. 

2
Delete these bracketed words if the Lien Grantor is the Borrower.

 

     

     

    

 

(c)
all proceeds of and revenues from the foregoing, including, without limitation, all proceeds of and revenues from any claim by
the Lien Grantor against third parties for past, present or future unfair competition with, or violation of intellectual property
rights in connection with or injury to, or infringement or dilution of, any Trademark owned by the Lien Grantor (including, without
limitation, any Trademark identified in Schedule 1 hereto), and all rights and benefits of the Lien Grantor under any Trademark
License (including, without limitation, any Trademark License identified in Schedule 1 hereto), or for injury to the goodwill
associated with any of the foregoing.

 

The
Lien Grantor irrevocably constitutes and appoints the Grantee and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full power and authority in the name of the Lien Grantor or in the Grantee’s
name, from time to time, in the Grantee’s discretion, so long as any Event of Default (as defined in the Indenture) shall
have occurred and be continuing, to take with respect to the Trademark Collateral any and all appropriate action which the Lien
Grantor might take with respect to the Trademark Collateral and to execute any and all documents and instruments which may be
necessary or desirable to carry out the terms of this Trademark Security Agreement and to accomplish the purposes hereof.

 

Except
to the extent expressly permitted in the Security Agreement or the Indenture, the Lien Grantor agrees not to sell, license, exchange,
assign or otherwise transfer or dispose of, or grant any rights with respect to, or mortgage or otherwise encumber, any of the
Trademark Collateral.

 

The
foregoing security interest is granted in conjunction with the security interests granted by the Lien Grantor to the Grantee pursuant
to the Security Agreement. The Lien Grantor acknowledges and affirms that the rights and remedies of the Grantee with respect
to the security interest in the Trademark Collateral granted hereby are more fully set forth in the Security Agreement, the terms
and provisions of which are incorporated by reference herein as if fully set forth herein.

 

     

     

    

 

IN
WITNESS WHEREOF, the Lien Grantor has caused this Trademark Security Agreement to be duly executed by its officer thereunto duly
authorized as of the day and year first written above.

 

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

 

	Acknowledged:	 
	 	 
	THE
    BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

    as Collateral Agent	 
	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:

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