Document:

REDEMPTION AND DEBT RESTRUCTURING AGREEMENT

 

This Redemption and
Debt Restructuring Agreement (the “Agreement”) dated effective as of December 31, 2013 is made by and between
NET TALK.COM, INC., a Florida corporation with its principal place of business at 1080 NW 163rd Drive, Miami, Florida,
33169 (the “Company”), and VICIS CAPITAL MASTER FUND, a unit sub-trust of Vicis Capital Series Master Trust,
a unit trust organized and existing under the laws of the Cayman Islands with a mailing address care of Vicis Capital, LLC, 445
Park Avenue, Suite 1043, New York, New York 10022 (the “Lender”).

 

RECITALS

 

A.           The
Company and Lender entered into: (i) that certain Securities Purchase Agreement dated June 30, 2011 by and between the Company
and Lender, as amended by Amendment No. 1 to Securities Purchase Agreement, dated as of August 11, 2011, by and between the Company
and Lender (the “June 2011 Purchase Agreement”), pursuant to which the Company issued to Lender those certain
12.00% Senior Secured Debentures, having original principal balances as detailed on Exhibit “A” attached hereto;
(as amended, supplemented or restated from time to time, the “June 2011 Debentures”); (ii) that certain Securities
Purchase Agreement dated September 30, 2011 (the “September 30, 2011 Purchase Agreement”) pursuant to which
the Company issued to Lender those certain 10.00% Senior Secured Debentures, having original principal balances as detailed on
Exhibit “A” attached hereto (as amended, supplemented or restated from time to time, the “September
2011 Debentures” and together with the June 2011 Debentures and the other debt described on Exhibit “A”,
the “Existing Debentures”); and (iii) that certain Third Amended and Restated Security Agreement dated September
30, 2013, securing all of the Company’s obligations under the Existing Debentures. The Existing Debentures had a combined
original principal balance of $13,716,130.

 

B.           Lender
holds (i) 19,995,092 shares of the Company’s common stock, $0.001 par value (the “Common Stock”), and
(ii) all 500 issued and outstanding shares of the Company’s 12% Series A Convertible Redeemable Preferred Stock, par value
$.001 per share, stated value $10,000 per share (the “Existing Preferred Stock”); 20,000,000 shares of common
stock are issuable upon conversion of the Existing Preferred Stock;

 

C.           Lender
holds those certain warrants to purchase common stock of the Company as detailed on Exhibit “B” attached hereto
(the “Existing Warrants”, and together with the Existing Debentures and the Existing Preferred Stock, the “Existing
Lender Interests”).

 

NOW, THEREFORE, in
consideration of the execution and delivery of this Agreement and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

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AGREEMENT

 

1.          Recitals;
Definitions.      Each of the statements, representations and other information contained in the above recitals is expressly incorporated
herein and is represented by the Company to be true and correct. For the purposes hereof, the following terms, in addition to the
terms defined elsewhere in this Agreement, shall have the following meanings:

 

(a)          
“Governmental Authority” has the meaning assigned to that term in the Amended Note.

 

(b)          “Indebtedness”
has the meaning assigned to that term in the Amended Note.

 

(c)          “Lien”
means any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor,
lender or other secured party to or of the Company or any subsidiary under any conditional sale or other title retention agreement
or any capital lease, upon or with respect to any property or asset of the Company or any subsidiary thereof.

 

(d)          “Person”
has the meaning assigned to that term in the Amended Note.

 

2.          Delivery
and Closing. Upon execution and delivery of this Agreement,

 

a)            the
Company shall execute and deliver to Lender that certain 6.00% Secured Promissory Note having an original principal balance of
$3,000,000.00 and in the form of Exhibit “C” attached hereto (the “Amended Note”); and

 

b)            Vicis
shall transfer and assign to the Company, and the Company shall accept and redeem from Vicis, all right, title and interest in
and to the Existing Preferred Stock, the Common Stock, and the Existing Warrants, free and clear of any liens, charges, restrictions
or encumbrances of any kind; and

 

c)            Vicis
shall transfer and surrender to the Company for cancellation all right, title and interest in and to the Existing Debentures, free
and clear of any liens, charges, restrictions or encumbrances of any kind.

 

3.          Collateral.
The Amended Note shall be secured by a continuing security interest in certain assets of the Company pursuant to the terms of an
amended and restated security agreement in the form substantially similar to Exhibit “D” attached hereto (the
“Security Agreement” and together with the Amended Note, this Agreement, and any and all documents executed
in connection therewith, the “Transaction Documents”).

 

4.          Conditions
to Effectiveness. This Agreement shall become effective as of the date first written above (the “Effective Date”)
upon the occurrence of the following conditions:

 

a)            This
Agreement and the Security Agreement shall have been executed by all parties listed on the signature page(s) hereof and thereof
and the Company shall have delivered the original Amended Note to the Lender; and

 

b)            Lender
shall have surrendered to the Company the Existing Preferred Stock, the Existing Debentures, the Existing Warrants, and the Common
Stock for cancellation.

 

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5.          Representations
and Warranties; Waivers. When the Company executes this Agreement, and until the Lender is repaid in full, the Company hereby
represents and warrants to the Lender that:

 

a)            Subsidiaries.
The Company has no subsidiaries.

 

b)            Organization;
Requisite Power. The Company is duly organized, validly existing and in good standing under the laws of its state of incorporation.
The Company and has all requisite corporate power and authority (i) to own and lease its properties and assets and to carry on
its business as now conducted and as presently proposed to be conducted; (ii) to execute and deliver this Agreement and any other
Transaction Documents to which it is a party; and (iii) to carry out the provisions of this Agreement and any other Transaction
Documents to which it is a party.

 

c)            Authorization;
Binding Obligation. All corporate action on the part of the Company necessary for (i) the authorization of this Agreement and
the other Transaction Documents to which it is a party and (ii) the performance of all obligations of the Company hereunder and
thereunder have been taken, and the Amended Note shall be free from all taxes, Liens and charges with respect to the issuance thereof.
This Agreement and the other Transaction Documents, when executed and delivered, will be legal, valid and binding obligations of
the Company, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent conveyance or
other similar statutes, rules, regulations or other laws affecting the enforcement of creditor rights and remedies generally. The
issuance by the Company to the Purchaser of the Securities is exempt from registration under the Securities Act of 1933, as amended,
and the Company has complied and will comply with all applicable federal and state securities laws in connection with the offer,
issuance and sale of the Securities hereunder..

 

d)            No
Conflicts. The execution, delivery and performance of, and compliance with, this Agreement and the execution and delivery
of the other Transaction Documents will not, with or without the passage of time or giving of notice, (i) violate, be in conflict
with or constitute a default under (x) any term of the Company’s articles of incorporation or bylaws or articles of organization
or operating agreement, as applicable, (y) any provision of any mortgage, indenture, contract, agreement or instrument to which
the Company is party or by which it is bound, or (z) any judgment, decree, order, writ, injunction, law, statute, rule, regulation
or restriction of any Governmental Authority applicable to the Company; or (ii) result in (y) the creation of any lien or encumbrance
upon any of the properties or assets of the Company, other than liens or encumbrances created by the Transaction Documents, or
(z) the suspension, revocation, impairment, forfeiture or nonrenewal of any franchise, permit, license, authorization or approval
applicable to the Company, its business or operations or any of its properties or assets.

 

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e)            Indebtedness.
The Company has no Indebtedness, except (i) as set forth on the balance sheet of the Company as of September 30, 2013 filed
with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended and (ii) trade payables
and normal accruals incurred in the ordinary course of business. Except with respect to the Lender or financing statements realted
to liens disclosed in the Commission Documents, there are no financing statements securing obligations in any material amounts,
either singly or in the aggregate, filed in connection with the Company. There are no outstanding securities or instruments of
the Company that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements
by which the Company is or may become bound to redeem a security of the Company.

 

f)         Title
to Properties and Assets. The Company has (a) good and marketable title to its properties and assets (including, without limitation,
the properties and assets reflected on the balance sheet included in the most recent financial statement(s) of the Company provided
to the Lender), free and clear of all Liens, except for Permitted Liens; and (b) good title to its leasehold estates, subject to
no Liens other than Permitted Liens. For purposes hereof, “Permitted Lien” means any of the following:

 

i)         liens
for taxes, assessments and other governmental charges, if payment thereof shall not at the time be required to be made, and provided
such reserve as shall be required by generally accepted accounting principles consistently applied shall have been made therefor;

 

ii)        liens
of workmen, materialmen, vendors, suppliers, mechanics, carriers, warehouseman and landlords or other like liens, incurred in the
ordinary course of business for sums not then due or being contested in good faith, if an adverse decision in which contest would
not materially affect the business of the Company;

 

iii)       liens
securing indebtedness of the Company or any subsidiaries which is in an aggregate principal amount not exceeding $100,000 and which
liens are subordinate to liens on the same assets held by the Purchaser;

 

iv)        statutory
liens of landlords, statutory liens of banks and rights of set-off, and other liens imposed by law, in each case incurred in the
ordinary course of business (i) for amounts not yet overdue or (ii) for amounts that are overdue and that are being contested
in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required
by generally accepted accounting principles shall have been made for any such contested amounts;

 

v)        liens
incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance
and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids,
leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of
obligations for the payment of borrowed money);

 

vi)        any
attachment or judgment lien not constituting an Event of Default (as defined below);

 

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vii)      easements,
rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case which do not and will
not interfere in any material respect with the ordinary conduct of the business of the Company or any of its subsidiaries;

 

viii)     any
(i) interest or title of a lessor or sublessor under any lease, including liens relating to Indebtedness identified in Section
8.4(f), (ii) restriction or encumbrance that the interest or title of such lessor or sublessor may be subject to, or (iii) subordination
of the interest of the lessee or sublessee under such lease to any restriction or encumbrance referred to in the preceding clause
(ii), so long as the holder of such restriction or encumbrance agrees to recognize the rights of such lessee or sublessee under
such lease;

 

ix)        liens
in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the
importation of goods;

 

x)         any
zoning or similar law or right reserved to or vested in any governmental office or agency to control or regulate the use of any
real property;

 

xi)        liens
securing obligations (other than obligations representing debt for borrowed money) under operating, reciprocal easement or similar
agreements entered into in the ordinary course of business of the Company and its subsidiaries;

 

xii)      the
replacement, extension or renewal of any lien permitted by this Section upon or in the same property theretofore subject or
the replacement, extension or renewal (without increase in the amount or change in any direct or contingent obligor) of the indebtedness
secured thereby;

 

xiii)     a
customer’s interest in or possession of the Company’s inventory; provided that such inventory is subject to a valid
and binding consignment agreement having terms that are commercially reasonable; and further provided that no more than 50% of
the Company’s inventory in the aggregate is at any time subject to consignment; and

 

xiv)      
liens disclosed in the Commission Documents.

 

g)           No
Claims or Defenses. The Company has no claims, offsets, counterclaims, or defenses, or alternatively, any such right of defense
offset or counterclaim is hereby expressly waived, with respect to the payment and performance of the Company’s obligations
pursuant to the Existing Lender Interests or under the Amended Note.

 

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h)            Compliance.
The Company is not (ii) in violation of any order of any court, arbitrator or governmental body, or (ii)  in violation of
any of the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter documents. The
business of the Company is presently being conducted in accordance with all applicable foreign, federal, state and local governmental
laws, rules, regulations and ordinances (including, without limitation, rules and regulations of each governmental and regulatory
agency, self regulatory organization and Trading Market applicable to the Company), except such that, individually or in the aggregate,
the noncompliance therewith would not have or reasonably be expect to have a Material Adverse Effect. The Company has all franchises,
permits, licenses, consents and other governmental or regulatory authorizations and approvals necessary for the conduct of its
business as now being conducted by it unless the failure to possess such franchises, permits, licenses, consents and other governmental
or regulatory authorizations and approvals, individually or in the aggregate, would not have or reasonably be expect to have a
Material Adverse Effect, and the Company has not received any written notice of proceedings relating to the revocation or modification
of any of the foregoing. For purposes of this Agreement, “Trading Market” means the following markets or exchanges
on which the Common Stock is listed or quoted for trading on the date in question: the NYSE Arca, the American Stock Exchange,
the New York Stock Exchange, the Nasdaq Global Select Market, Nasdaq Global Market, the Nasdaq Capital Market, or any tier of the
over-the-counter (“OTC”) market. As used in this Agreement, “Material Adverse Effect” means
any material adverse effect on the business, properties, assets, operations, results of operations, or condition (financial or
otherwise) of the Company and its Subsidiaries, taken as a whole, or on the transactions contemplated hereby or by the agreements
and instruments to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations
in all material respects under the Transaction Documents

 

i)             Consents.
Except for the filing of Form D with the Securities and Exchange Commission and such filings as are required to be made under applicable
state securities laws, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration
with, any court, governmental or any regulatory agency, self-regulatory organization or any other Person in order for it to execute,
deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case, in accordance with
the terms hereof or thereof. The Company is unaware of any facts or circumstances relating to the Company which might prevent the
Company from obtaining or effecting any of the foregoing.

 

j)             Placement
Agent Fees. No brokerage or finder’s fee or commission are or will be payable to any Person with respect to the transactions
contemplated by this Agreement based upon arrangements made by the Company or any of its affiliates. The Company agrees that it
shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions
(other than for Persons engaged by the Lender or any of its affiliates) relating to or arising out of the transactions contemplated
hereby. The Company shall pay, and hold the Lender harmless against, any liability, loss or expense (including, without limitation,
reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any claim for any such fees or commissions.

 

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k)            Litigation.
Except as disclosed in the Commission Documents, there is no action, suit, written notice of violation, or written notice
of any proceeding pending or, to the knowledge of the Company, threatened against or affecting the Common Stock or the Compan or
any of its executive officers, directors or properties before or by any court, arbitrator, governmental or administrative agency,
regulatory authority (federal, state, county, local or foreign), self regulatory authority or Trading Market (collectively, an
“Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of
the Transaction Documents or the Amended Note or (ii) would, if there were an unfavorable decision, have or reasonably be
expected to result in a Material Adverse Effect. Except as known by the Lender, to the Company’s knowledge, neither the Company
nor any director or executive officer thereof (in his/her capacity as such), is or, within the last five years, has been the subject
of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. To the knowledge of the Company, there has not been, and there is not pending or threatened in writing, any investigation
by the United States Securities and Exchange Commission (the “Commission” or “SEC”) involving
the Company or any current director or executive officer of the Company. The Commission has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by the Company under the Securities Act. There is no action,
suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other proceeding pending or, to the knowledge
of the Company, threatened in writing against or involving the Company or any of its properties or assets, which individually or
in the aggregate, would reasonably be expected to have a Material Adverse Effect. There are no outstanding orders, judgments, injunctions,
awards or decrees of any court, arbitrator or governmental or regulatory body against the Company or any executive officers or
directors of the Company in their capacities as such, which individually or in the aggregate, would reasonably be expected to have
a Material Adverse Effect.

 

l)            Commission
Documents, Financial Statements. The Common Stock of the Company is registered pursuant to Section 12(g) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange
Act, except such that, individually or in the aggregate, the noncompliance therewith would not have or reasonably be expect to
have a Material Adverse Effect. At the times of their respective filings, all of the aforementioned reports, schedules, forms,
statements and other documents required to be filed by it with the Commission (the “Commission Documents”) complied
in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the
Commission promulgated thereunder, and did not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. As of their respective dates, the financial statements of the Company included in the Commission Documents
complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of
the Commission. Such financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or
year-end adjustments or may be condensed or summary statements), and fairly present in all material respects the financial position
of the Company and its Subsidiaries as of the dates thereof and the results of operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

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m)          Absence
of Certain Changes or Developments. Except as contemplated herein and in the Transaction Documents, since September 30, 2013:

 

(1)         there
has been no Material Adverse Effect, and no event or circumstance has occurred or exists with respect to the Company or its businesses,
properties, operations or financial condition, which, under the Exchange Act, Securities Act, or rules or regulations of any Trading
Market, required or requires public disclosure or announcement by the Company, but which has not been so publicly announced or
disclosed;

 

(2)         the
Company has not:

 

(a)          issued
any stock, bonds or other corporate securities or any right, options or warrants with respect thereto, except pursuant to the exercise
or conversion of securities outstanding as of such date;

 

(b)          discharged
or satisfied any Lien or encumbrance in excess of $100,000 or paid any obligation or liability (absolute or contingent) in excess
of $100,000, other than current liabilities paid in the ordinary course of business and payments of principal;

 

(c)          declared
or made any payment or distribution of cash or other property to stockholders with respect to its stock, or purchased or redeemed,
or made any agreements so to purchase or redeem, any shares of its capital stock, in each case in excess of $50,000 individually
or $100,000 in the aggregate;

 

(d)          sold,
assigned or transferred any other tangible assets, or canceled any debts or claims, in each case in excess of $100,000, except
in the ordinary course of business;

 

(e)          sold,
assigned or transferred any patent rights, trademarks, trade names, copyrights, trade secrets or other intangible assets or intellectual
property rights in excess of $100,000, or disclosed any proprietary confidential information to any person except to customers
in the ordinary course of business;

 

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(f)          suffered
any material losses or waived any rights of material value, whether or not in the ordinary course of business, or suffered the
loss of any material amount of prospective business;

 

(g)          made
any changes in employee compensation except in the ordinary course of business and consistent with past practices;

 

(h)          except
for capital expenditures or commitments of up to $1,000,000 in the aggregate that are solely used for the interconnect site deployment,
made capital expenditures or commitments therefor that aggregate in excess of $100,000;

 

(i)           entered
into any material transaction outside the ordinary course of business;

 

(j)           made
charitable contributions or pledges in excess of $10,000;

 

(k)          suffered
any material damage, destruction or casualty loss, whether or not covered by insurance;

 

(l)           experienced
any material problems with labor or management in connection with the terms and conditions of their employment;

 

(m)         altered
its method of accounting, except to the extent required by GAAP;

 

(n)          issued
any equity securities to any officer, director or affiliate (as such term is defined in Rule 144 of the Securities Act), except
pursuant to existing Company stock, option, equity incentive or similar incentive plans; or

 

(o)          entered
into an agreement, written or otherwise, to take any of the foregoing actions.

 

n)            Solvency.
The Company has not taken, nor does it have any intention to take, any steps to seek protection pursuant to any bankruptcy or
similar law. The Company does not have any actual knowledge nor has it received any written notice that its creditors intend to
initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that, as of the date hereof, would reasonably
lead a creditor to do so.

 

o)            Off-Balance
Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or
other off-balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and is not so disclosed
or that if made or not made would be reasonably likely to have a Material Adverse Effect.

 

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p)            Foreign
Corrupt Practices.    Neither the Company nor any of its directors, officers, agents, employees or other Persons acting on its
behalf has, in the course of their respective actions for or on behalf of the Company or any of its subsidiaries (a) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity, (b) made
any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds, (c) violated
or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended or (d) made any unlawful
bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or
employee.

 

q)            Transactions
With Affiliates.    Except as disclosed in the Commission Documents, none of the officers, directors or employees of the Company
is presently a party to any transaction with the Company (other than for ordinary course services as employees, officers or directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from, or otherwise requiring payments to or from any such officer, director or employee or,
to the knowledge of the Company, any corporation, partnership, trust or other entity in which any such officer, director, or employee
has a substantial interest or is an officer, director, trustee or partner.

 

r)             Insurance.
   Except as disclosed in the Commission Documents, the Company is insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in
which the Company is engaged. The Company has not been refused any insurance coverage sought or applied for and has no reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

s)            Employee
Relations.   The Company is not a party to any collective bargaining agreement or employs any member of a union. No Executive
Officer of the Company (as defined in Rule 501(f) of the Securities Act) has notified the Company that such officer intends to
leave the Company or otherwise terminate such officer’s employment with the Company. No Executive Officer of the Company,
to the knowledge of the Company, is, or is now, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive
covenant, and, to the actual knowledge of the Company, the continued employment of each such executive officer does not subject
the Company to any liability with respect to any of the foregoing matters. The Company is in compliance with all federal, state,
local and foreign laws and regulations respecting employment and employment practices, terms and conditions of employment and wages
and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected
to result in a Material Adverse Effect.

 

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t)            Title.
   Except as set forth in the Commission Documents, the Company has good and marketable title to all personal property owned by them
which is material to their respective business, in each case free and clear of all Liens. Any real property and facilities held
under lease by the Company are held by them under valid, subsisting and enforceable leases with such exceptions as are not material
and do not interfere with the use made and proposed to be made of such property and buildings by the Company.

 

u)            Intellectual
Property Rights.   The Company owns or possesses the rights to use all patents, trademarks, domain names (whether or not registered)
and any patentable improvements or copyrightable derivative works thereof, websites and intellectual property rights relating thereto,
service marks, trade names, copyrights, licenses and authorizations which are necessary for the conduct of its business as now
conducted (collectively, the “Intellectual Property Rights”) without any conflict with the rights of others,
except any failures as, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect. Except as
disclosed in the Commission Documents, the Company has not received a written notice that the Intellectual Property Rights used
by the Company violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company has taken reasonable measures to protect the value of the Intellectual Property Rights.

 

v)            Environmental
Laws.   The Company (a) is in compliance with any and all Environmental Laws (as hereinafter defined), (b) has received
all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses
and (c) is in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing
clauses (a), (b) and (c), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution
or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land
surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases
of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

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w)            Tax
Matters. The Company (a) has made or filed all federal and state income and all other tax returns, reports and declarations
required by any jurisdiction to which it is subject, (b) has paid all taxes and other governmental assessments and charges
that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested
in good faith and (c) has set aside on its books reasonably adequate provision for the payment of all taxes for periods subsequent
to the periods to which such returns, reports or declarations apply, except where such failure would not have a Material Adverse
Effect. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company know of no basis for any such claim.

 

x)            Inventory.
All inventory of the Company consists of a quality and quantity usable and salable in the ordinary course of business, except for
obsolete items and items of below-standard quality, all of which have been or will be written off or written down to net realizable
value on the audited balance sheet of the Company as of September 30, 2013. The quantities of each type of inventory (whether raw
materials, work-in-process, or finished goods) are not excessive, but are reasonable and warranted in the present circumstances
of the Company.

 

y)            No
Disagreements with Accountants. There are no disagreements of any kind presently existing, or reasonably anticipated by the
Company to arise, between the Company and the accountants formerly or presently employed by the Company.

 

z)            Ranking
of Amended Note. Other than debt secured by real estate, no security issued by the Company is senior to the Amended Note in
right of payment, whether with respect of payment of redemptions, interest, damages or upon liquidation or dissolution or otherwise.

 

aa)          OFAC.
Neither the issuance of the Amended Note to the Lender, nor the use of the respective proceeds thereof by the Company, shall cause
the Company to violate the U.S. Bank Secrecy Act, as amended, and any applicable regulations thereunder or any of the sanctions
programs administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”)
of the United States Department of Treasury, any regulations promulgated thereunder by OFAC or under any affiliated or successor
governmental or quasi-governmental office, bureau or agency and any enabling legislation or executive order relating thereto. Without
limiting the foregoing, the Lender (i) is not a person whose property or interests in property are blocked or subject to blocking
pursuant to Section 1 of Executive Order 13224 of September 23, 200l Blocking Property and Prohibiting Transactions With Persons
Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) does not engage in any dealings or transactions
prohibited by Section 2 of such executive order, or is otherwise associated with any such person in any manner violative of
Section 2, or (iii) is not a person on the list of Specially Designated Nationals and Blocked Persons or subject to the limitations
or prohibitions under any other OFAC regulation or executive order.

 

bb)         Disclosure.
All disclosure provided to the Purchaser regarding the Company, its business and the transactions contemplated hereby, furnished
by or on behalf of the Company are true and correct and do not contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made,
not misleading; provided however, the Company makes no representation as to studies and reports prepared by third parties not engaged
by the Company and included in the materials delivered to Lender

 

    	12

    	 

    

 

6.          Mutual
Release.

 

(a)          Release
of Lender. As a material part of the consideration for Lender entering into this Agreement, the Company hereby releases and
forever discharges Lender and Lender’s predecessors, successors, assigns, and investment advisor, and their respective officers,
managers, directors, shareholders, employees, agents, attorneys, representatives, parent corporations, subsidiaries, and affiliates
(hereinafter all of the above collectively referred to as “Lender Group”) jointly and severally from any and
all claims, counterclaims, demands, damages, debts, agreements, covenants, suits, contracts, obligations, liabilities, accounts,
offsets, rights, actions, and causes of action of any nature whatsoever, including, without limitation, all claims, demands, and
causes of action for contribution and indemnity, whether arising at law or in equity, whether presently possessed or possessed
in the future, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether presently
accrued or to accrue hereafter, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted,
which the Company may have or claim to have against any of Lender Group.

 

(b)          Release
of the Company. As a material part of the consideration for the Company entering into this Agreement, except for (i) obligations
arising under the Transaction Documents (including the Amended Note), or (ii) obligations arising from Lender’s right to
seek indemnification or contribution from the Company, Lender hereby releases and forever discharges the Company and the Company’s
predecessors, successors, assigns, officers, managers, directors, shareholders, employees, agents, attorneys, representatives,
parent corporations, subsidiaries, and affiliates (hereinafter all of the above collectively referred to as “Company Group”)
jointly and severally from any and all claims, counterclaims, demands, damages, debts, agreements, covenants, suits, contracts,
obligations, liabilities, accounts, offsets, rights, actions, and causes of action of any nature whatsoever, including, without
limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law or in equity, whether
presently possessed or possessed in the future, whether known or unknown, whether liability be direct or indirect, liquidated or
unliquidated, whether presently accrued or to accrue hereafter, whether absolute or contingent, foreseen or unforeseen, and whether
or not heretofore asserted, which Lender may have or claim to have against any of the Company Group.

 

    	13

    	 

    

 

7.          Indemnification

 

a)           Indemnification
by the Company. The Company agrees to defend, indemnify and hold harmless the Lender and shall reimburse the Lender for, from
and against each claim, loss, liability, cost and expense (including without limitation, interest, penalties, costs of preparation
and investigation, and the actual fees, disbursements and expenses of attorneys, accountants and other professional advisors) (collectively,
“Losses”) directly or indirectly relating to, resulting from or arising out of (a) any untrue representation,
misrepresentation, breach of warranty or non-fulfillment of any covenant, agreement or other obligation by or of the Company contained
in any Transaction Document or in any certificate, document, or instrument delivered by the Company to the Lender;
or (b) any action instituted against the Lender or its affiliates, by any debtholder or stockholder of the Company who is not an
affiliate of the Lender, with respect to any of the transactions contemplated by the Transaction Documents (unless such action
is based upon a breach of the Lender’s representations, warranties or covenants under the Transaction Documents or any agreements
or understandings the Lender may have with any such holder or any violations by the Lender of state or federal securities laws
or any conduct by theLender which constitutes fraud, gross negligence, willful misconduct or malfeasance).

 

b)           Procedure.

 

(1)         The
indemnified party shall promptly notify the indemnifying party of any claim, demand, action or proceeding for which indemnification
will be sought under this Agreement; provided, that the failure of any party entitled to indemnification hereunder to give notice
as provided herein shall not relieve the indemnifying party of its obligations under this Section 7 except to the extent that the
indemnifying party is actually prejudiced by such failure to give notice.

 

(2)         In
case any such action, proceeding or claim is brought against an indemnified party in respect of which indemnification is sought
hereunder, the indemnifying party shall be entitled to participate in and, unless in the reasonable, good-faith judgment of the
indemnified party a conflict of interest between it and the indemnifying party exists with respect to such action, proceeding or
claim (in which case the indemnifying party shall be responsible for the reasonable fees and expenses of one separate counsel for
the indemnified party), to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. If the indemnifying
party elects to defend any such action or claim, then the indemnified party shall be entitled to participate in such defense (but
not control) with counsel of its choice at its sole cost and expense (except that the indemnifying party shall remain responsible
for the reasonable fees and expenses of one separate counsel for the indemnified party in the event in the reasonable, good-faith
judgment of the indemnified party a conflict of interest between it and the indemnifying party exists).

 

    	14

    	 

    

 

(3)         In
the event that the indemnifying party advises an indemnified party that it will contest such a claim for indemnification hereunder,
or fails, within thirty (30) days of receipt of any indemnification notice to notify, in writing, such person of its election to
defend, settle or compromise, at its sole cost and expense, any action, proceeding or claim (or discontinues its defense at any
time after it commences such defense), then the indemnified party may, at its option, defend, settle or otherwise compromise or
pay such action or claim. In any event, unless and until the indemnifying party elects in writing to assume and does so assume
the defense of any such claim, proceeding or action, the indemnified party’s costs and expenses arising out of the defense,
settlement or compromise of any such action, claim or proceeding shall be Losses subject to indemnification hereunder.

 

(4)         The
parties shall cooperate fully with each other in connection with any negotiation or defense of any such action or claim and shall
furnish to the other party all information reasonably available to such party which relates to such action or claim. Each party
shall keep the other party fully apprised at all times as to the status of the defense or any settlement negotiations with respect
thereto.

 

(5)         Notwithstanding
anything in this Section 7 to the contrary, the indemnifying party shall not, without the indemnified party’s prior written
consent, settle or compromise any claim or consent to entry of any judgment in respect thereof which imposes any future obligation
on the indemnified party or which does not include, as an unconditional term thereof, the giving by the claimant or the plaintiff
to the indemnified party of a release from all liability in respect of such claim. The indemnification obligations to defend the
indemnified party required by this Section 7 shall be made by periodic payments of the amount thereof during the course of investigation
or defense, as and when the Loss is incurred, so long as the indemnified party shall refund such moneys if it is ultimately determined
by a court of competent jurisdiction that such party was not entitled to indemnification. The indemnity agreements contained herein
shall be in addition to (i) any cause of action or similar rights of the indemnified party against the indemnifying party
or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

c)            Reimbursement.
If any Lender becomes involved in any capacity in any proceeding by or against any Person who is a debtholder or stockholder of
the Company (except as a result of sales, pledges, margin sales and similar transactions by such Lender to or with any other holder),
solely as a result of such Lender's acquisition of the Amended Note from the Company under this Agreement, the Company will reimburse
such Lender for its reasonable legal and other expenses (including the cost of any investigation preparation and travel in connection
therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations of the Company under
this paragraph shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and
conditions to any affiliates of the Lender who are actually named in such action, proceeding or investigation, and partners, directors,
agents, employees and controlling persons (if any), as the case may be, of the Lenders and any such affiliate, and shall be binding
upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the Lender and any
such affiliate and any such Person. The Company also agrees that neither the Lender nor any such affiliates, partners, directors,
agents, employees or controlling persons shall have any liability to the Company or any Person asserting claims on behalf of or
in right of the Company solely as a result of acquiring the Amended Note under this Agreement.

 

    	15

    	 

    

 

8.          Miscellaneous

 

a)            Notices.
All notices or other communications required or permitted to be given pursuant to this Agreement shall be in writing and shall
be made by: (i) certified mail, return receipt requested; (ii) Federal Express, Express Mail, or similar overnight delivery or
courier service; or (iii) delivery (in person or by facsimile, E-Mail or similar telecommunication transmission) to the party to
whom it is to be given, to the address appearing in the opening paragraph of this Agreement or to such other address as any party
hereto may have designated by written notice forwarded to the other party in accordance with the provisions of this paragraph.
Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for
a notice changing a party’s address which shall be deemed given at the time of receipt thereof. Any notice given by other
means permitted by this paragraph shall be deemed given at the time of receipt thereof.

 

b)            Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without
giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another
jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement
to be drafted.

 

c)            Headings.
Article and section headings in this Agreement are included herein for purposes of convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

 

d)            Expenses.
The Company shall bear its own expenses and legal fees incurred on its behalf with respect to the negotiation, execution and consummation
of the transactions contemplated by this Agreement and shall pay all documentary stamp or similar taxes imposed by any authority
upon the transactions contemplated by this Agreement or any Transaction Document. The Company shall reimburse Lender for any reasonable
costs and attorneys’ fees incurred by the Lender in connection with the enforcement or preservation of any rights or remedies
under this Agreement, the Amended Note and the other Transaction Documents and in connection with any amendment, waiver, “workout”
or restructuring to any of the foregoing. In the event of a lawsuit or arbitration proceeding, the prevailing party is entitled
to recover costs and reasonable attorneys’ fees incurred in connection with the lawsuit or arbitration proceeding, as determined
by the court or arbitrator. In the event that any case is commenced by or against the Company under the Bankruptcy Code (Title
11, United States Code) or any similar or successor statute, the Lender is entitled to recover costs and reasonable attorneys’
fees incurred by the Lender related to the preservation, protection or enforcement of any rights of the Lender in such a case.

 

    	16

    	 

    

 

e)            Binding
Effect. The obligations of the Company and the Lender set forth herein shall be binding upon the successors and assigns of
each such party, whether or not such successors or assigns are permitted by the terms hereof.

 

f)             Amendments.
This Agreement may not be modified or amended in any manner except in writing executed by the Company and the Lender.

 

g)            Consent
to Jurisdiction. Each of the Company and the Lender (i) hereby irrevocably submits to the exclusive jurisdiction of the United
States District Court sitting in the Southern District of New York and the courts of the State of New York located in New York
County for the purposes of any suit, action or proceeding arising out of or relating to this Agreement and (ii) hereby waives,
and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper. Each of the Company and the Lender consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing in this paragraph shall affect or limit any
right to serve process in any other manner permitted by law. Each of the Company and Lender hereby agree that the prevailing party
in any suit, action or proceeding arising out of or relating to this Agreement shall be entitled to reimbursement for reasonable
legal fees from the non-prevailing party.

 

h)            Parties
in Interest. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Company, the Lender and
their respective successors and permitted assigns.

 

i)             Counterparts.
This Agreement may be executed in as many counterparts as necessary or convenient, and by the different parties on separate counterparts
each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same agreement.
In the event that any signature is delivered by facsimile or electronic (in “.pdf” format) 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 or electronic signature were the original thereof.

 

j)             Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any holder of the Amended Note upon any
breach or default of the Company under this Agreement shall impair any such right, power or remedy of such holder nor shall it
be construed to be a waiver of any such breach or default, or an acquiescence, therein, or of or in any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any holder of any breach
or default under this Agreement, or any waiver on the part of any holder of any provisions or conditions of this Agreement must
be, made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any holder, shall be cumulative and not alternative.

 

    	17

    	 

    

 

k)            Severability.
The invalidity of any provision or portion of a provision of this Agreement shall not affect the validity of any other provision
of this Agreement or the remaining portion of the applicable provision. It is the desire and intent of the parties hereto that
the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied
in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated
to be invalid or unenforceable, such provision shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid
or unenforceable, such deletion to apply only with respect to the operation of such provision in the particular jurisdiction in
which such adjudication is made.

 

l)             Entire
Agreement. This Agreement, the Transaction Documents and the other documents delivered pursuant hereto and simultaneously herewith
constitute the full and entire understanding and agreement between the parties with regard to the subject matter hereof and thereof.

 

m)           Survival.
Except as specifically provided herein, the representations, warranties, covenants and agreements made herein shall survive the
Effective Date.

 

[Remainder
of page left intentionally blank]

 

    	18

    	 

    

 

The parties hereto
have caused this Agreement to be duly executed and delivered as of the day and year first above written.

 

	LENDER:	 	COMPANY:
	 	 	 
	VICIS CAPITAL MASTER FUND	 	NET TALK.COM, INC.
	 	 	 
	By: Vicis Capital, LLC, its investment advisor	 	 	 
	 	 	 	 	 
	By: 	/s/Keith W. Hughes	 	By:	/s/Anastasios Kyriakides
	Name:	KEITH W. HUGHES	 	Name:	ANASTASIOS KYRIAKIDES
	Title:	CFO, Vicis Capital, LLC	 	Title:	PRESIDENT & CEO

 

    	19

    	 

    

 

EXHIBIT A 

to the

REDEMPTION AND DEBT RESTRUCTURING
AGREEMENT

 

Existing Debentures

 

June 2011 Debentures

 

	Debenture No.	 	Date	 	Amount	 	 	Interest Rate	 
	 	 	 	 	 	 	 	 	 
	11-01-A	 	June 30, 2011	 	$	5,266,130.00	 	 	 	12.00	%
	11-02-A	 	August 11, 2011	 	$	2,000,000.00	 	 	 	12.00	%
	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL:	 	$	7,266,130.00	 	 	 	 	 

 

September 2011 Debentures

 

	Debenture No.	 	Date	 	Amount	 	 	Interest Rate	 
	 	 	 	 	 	 	 	 	 
	11-01-A	 	September 30, 2011	 	$	3,500,000.00	 	 	 	10.00	%
	12-01-A	 	March 29, 2012	 	$	500,000.00	 	 	 	10.00	%
	12-02-A	 	April 23, 2012	 	$	500,000.00	 	 	 	10.00	%
	12-03	 	May 15, 2012	 	$	50,000.00	 	 	 	10.00	%
	12-04	 	May 30, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-05	 	June 7, 2012	 	$	200,000.00	 	 	 	10.00	%
	12-06	 	June 20, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-07	 	July 7, 2012	 	$	200,000.00	 	 	 	10.00	%
	12-08	 	July 12, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-09	 	July 17, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-10	 	July 24, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-11	 	July 31, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-12	 	September 11, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-13	 	September 17, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-14	 	September 21, 2012	 	$	50,000.00	 	 	 	10.00	%
	12-15	 	September 27, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-16	 	October 8, 2012	 	$	100,000.00	 	 	 	10.00	%
	12-17	 	October 16, 2012	 	$	100,000.00	 	 	 	10.00	%
	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL:	 	$	6,100,000.00	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	NET TALK.COM Demand Note	 	 	 	$	200,000.00	 	 	 	12.00	%

 

During the year ended
December 31, 2012, we received additional advances in the total amount of $75,000.

 

    	20

    	 

    

 

On April 22, 2013 and
May 3, 2013 we received advances from Vicis in the amount of $50,000 and $25,000, respectively, both due on demand. These advances
are not evidenced by a formal promissory note.

 

    	21

    	 

    

 

EXHIBIT B

 

to the

 

REDEMPTION AND DEBT RESTRUCTURING
AGREEMENT

 

Existing Warrants

 

	Title	 	Warrant No.	 	Transaction Date	 	Amount of 

Common Stock	 
	 	 	 	 	 	 	 	 
	Series D Warrant to purchase Common Stock	 	D-1, D-2, & D-3	 	February 24, 2010	 	 	28,800,000	 
	Series D Warrant to purchase Common Stock	 	D-4	 	October 26, 2010	 	 	8,000,000	 
	Series E Warrant to purchase Common Stock	 	E-1 & E-2	 	June 30, 2011	 	 	22,064,250	 
	Series E Warrant to purchase Common Stock	 	E-3	 	August 8, 2011	 	 	8,000,000	 
	Series E Warrant to purchase Common Stock	 	E-4	 	September 30, 2011	 	 	10,000,000	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	TOTAL	 	 	76,864,250	 

 

    	22

    	 

    

 

EXHIBIT C

 

to the

 

REDEMPTION AND DEBT RESTRUCTURING
AGREEMENT

 

See attached Amended Note.

 

    	23

    	 

    

 

EXHIBIT D 

 

to the

 

REDEMPTION AND DEBT RESTRUCTURING
AGREEMENT

 

See attached Security Agreement.

 

    	24FOURTH AMENDED AND RESTATED SECURITY
AGREEMENT

 

THIS FOURTH AMENDED
AND RESTATED SECURITY AGREEMENT, dated effective as of December 31, 2013 (this “Agreement”), by and between Net Talk.com,
Inc., a Florida corporation (the “Debtor”), and Vicis Capital Master Fund (“Vicis”), a sub-trust of Vicis
Capital Series Master Trust, a unit trust organized and existing under the laws of the Cayman Islands, the holder of the Debtor’s
securities listed on Schedule H hereto and any other securities issued from time to time by the Debtor in favor of Vicis
(collectively, the “Securities”), and its endorsees, transferees and assigns (collectively referred to as the “Secured
Party”).

 

WITNESSETH:

 

WHEREAS, Debtor and
Vicis wish to amend and restate that certain Third Amended and Restated Security Agreement dated as of September 30, 2011 among
Debtor and Vicis (the “September 2011 Security Agreement”) securing the obligations of Debtor under (i) a Securities
Purchase Agreement dated February 24, 2010, by and between Debtor and Vicis (the “2010 Purchase Agreement”); (ii) a
Securities Purchase Agreement dated June 30, 2011, by and between Debtor and Vicis, as amended by Amendment No. 1 to Securities
Purchase Agreement, dated as of August 11, 2011, by and between Debtor and Vicis (collectively, the “June 2011 Purchase Agreement”,);
(iii) a Securities Purchase Agreement dated September 30, 2011, by and between Debtor and Vicis (the “September 2011 Purchase
Agreement” and together with the 2010 Purchase Agreement and the June 2011 Purchase Agreement, the “Existing Purchase
Agreements”); and (iii) all of the agreements, documents, instruments and other items comprising the “Transaction Documents,”
as defined in each of the Existing Purchase Agreements;

 

WHEREAS, Debtor and
Vicis have entered into a Redemption and Debt Restructuring Agreement dated of even date herewith (the “Restructuring Agreement”),
pursuant to which Debtor and Vicis have agreed to enter into this Agreement, which amends and restates in its entirety the September
2011 Security Agreement;

 

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

 

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

 

    	1

    	 

    

 

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

 

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

 

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

 

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

 

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

 

(v) All commercial
tort claims;

 

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

 

(vii) All investment
property;

 

(viii) All
supporting obligations; and

 

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

 

    	2

    	 

    

 

 

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

 

Without limiting
the generality of the foregoing, the Collateral shall include all investment property and general intangibles respecting ownership
and/or other equity interests in the Debtor, including, without limitation, the shares of capital stock and the other equity interests
listed on Schedule G hereto (as the same may be modified from time to time pursuant to the terms hereof), and any other
shares of capital stock and/or other equity interests of any other direct or indirect subsidiary of the Debtor obtained in the
future, and, in each case, all certificates representing such shares and/or equity interests and, in each case, all rights, options,
warrants, stock, other securities and/or equity interests that may hereafter be received, receivable or distributed in respect
of, or exchanged for, any of the foregoing (all of the foregoing being referred to herein as the “Pledged Securities”)
and all rights arising under or in connection with the Pledged Securities, including, but not limited to, all dividends, interest
and cash. Notwithstanding the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the
event of an assignment, becomes void by operation of applicable law or the assignment of which is otherwise prohibited by applicable
law (in each case to the extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or
other similar applicable law); provided, however, that to the extent permitted by applicable law, this Agreement shall create a
valid security interest in such asset and, to the extent permitted by applicable law, this Agreement shall create a valid security
interest in the proceeds of such asset.

 

(b)          “Commission
Documents” means the reports, schedules, forms, statements and other documents filed by Debtor with the United States Securities
and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

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

 

    	3

    	 

    

 

 

(d)           “Necessary
Endorsement” shall mean undated stock powers endorsed in blank or other proper instruments of assignment duly executed and
such other instruments or documents as the Secured Party may reasonably request.

 

(e) “Note”
means the Debtor’s 6% Secured Promissory Note due June 30, 2014 dated effective as of December 31, 2013, together with any
other note or other evidence of indebtedness issued from time to time by the Debtor in favor of Vicis.

 

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

 

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

 

    	4

    	 

    

 

 

(h) “Transaction
Documents” means all of the agreements, documents, instruments and other items comprising the “Transaction Documents”
as defined in the Restructuring Agreement.

 

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

 

2.   
       Grant of Security Interest. As an inducement for the Secured Party to
extend the loans as evidenced by the Note and to enter into the Restructuring Agreement, and to secure the complete and
timely payment, performance and discharge in full, as the case may be, of all of the Obligations, the Debtor hereby
unconditionally and irrevocably pledges, grants and hypothecates to the Secured Party a continuing and perfected security
interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of
whatsoever kind and nature in and to, the Collateral (the “Security Interest”).

 

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

 

4.           Representations,
Warranties, Covenants and Agreements of the Debtor. The Debtor represents and warrants to, and covenants and agrees with, the
Secured Party as follows:

 

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

 

    	5

    	 

    

 

 

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

 

(c) Except
for Permitted Liens and except as set forth on Schedule B attached hereto, the Debtor is the sole owner of the Collateral
(except for non-exclusive licenses granted by the Debtor in the ordinary course of business), free and clear of any liens, security
interests, encumbrances, rights or claims, and is fully authorized to grant the Security Interest.

 

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

 

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

 

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

 

    	6

    	 

    

 

 

(g) The Debtor
hereby authorizes the Secured Party to file one or more financing statements under the UCC, with respect to the Security Interest
with the proper filing and recording agencies in any jurisdiction deemed proper by them.

 

(h) The execution,
delivery and performance of this Agreement by the Debtor does not (i) violate any of the provisions of any Organizational Documents
of the Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable law, rule
or regulation applicable to the Debtor or (ii) conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing the Debtor’s
debt or otherwise) or other understanding to which the Debtor is a party or by which any property or asset of the Debtor is bound
or affected. No consent (including, without limitation, from stockholders or creditors of the Debtor) is required for the Debtor
to enter into and perform its obligations hereunder.

 

(i) Intentionally
Omitted.

 

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

 

(k) The Debtor
shall at all times maintain the liens and Security Interest provided for hereunder as valid and perfected first priority liens
and security interests in the Collateral in favor of the Secured Party until this Agreement and the Security Interest hereunder
shall be terminated pursuant to Section 11 hereof. The Debtor hereby agrees to defend the same against the claims of any and all
persons and entities. The Debtor shall safeguard and protect all Collateral for the account of the Secured Party. At the request
of the Secured Party, the Debtor will sign and deliver to the Secured Party at any time or from time to time one or more financing
statements pursuant to the UCC in form reasonably satisfactory to the Secured Party and will pay the cost of filing the same in
all public offices wherever filing is, or is deemed by the Secured Party to be, necessary or desirable to effect the rights and
obligations provided for herein. Without limiting the generality of the foregoing, the Debtor shall pay all fees, taxes and other
amounts necessary to maintain the Collateral and the Security Interest hereunder, and the Debtor shall obtain and furnish to the
Secured Party from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required to
maintain the priority of the Security Interest hereunder.

 

    	7

    	 

    

 

 

(l) Subject
to Permitted Liens, the Debtor will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the
Collateral (except for non-exclusive licenses granted by a Debtor in its ordinary course of business and sales of inventory by
a Debtor in its ordinary course of business) without the prior written consent of the Secured Party.

 

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

 

(n) The Debtor
shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral against loss or damage of
the kinds and in the amounts customarily insured against by entities of established reputation having similar properties similarly
situated and in such amounts as are customarily carried under similar circumstances by other such entities and otherwise as is
prudent for entities engaged in similar businesses but in any event sufficient to cover the full replacement cost thereof. The
Debtor shall cause each insurance policy issued in connection herewith to provide, and the insurer issuing such policy to certify
to the Secured Party that (a) the Secured Party will be named as lender loss payee and additional insured under each such insurance
policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly
notify the Secured Party and such cancellation or change shall not be effective as to the Secured Party for at least thirty (30)
days after receipt by the Secured Party of such notice, unless the effect of such change is to extend or increase coverage under
the policy; and (c) the Secured Party will have the right (but no obligation) at its election to remedy any default in the payment
of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default exists and if the proceeds
arising out of any claim or series of related claims do not exceed $100,000, loss payments in each instance will be applied by
the Debtor to the repair and/or replacement of property with respect to which the loss was incurred to the extent reasonably feasible,
and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable to the Debtor, provided,
however, that payments received by the Debtor after an Event of Default occurs and is continuing or in excess of $100,000 for any
occurrence or series of related occurrences shall be paid to the Secured Party and, if received by the Debtor, shall be held in
trust for and immediately paid over to the Secured Party unless otherwise directed in writing by the Secured Party. Copies of such
policies or the related certificates, in each case, naming the Secured Party as lender loss payee and additional insured shall
be delivered to the Secured Party at least annually and at the time any new policy of insurance is issued.

 

(o) The Debtor
shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of any substantial
change in the Collateral, and of the occurrence of any event which would have a material adverse effect on the value of the Collateral
or on the Secured Party’s security interest therein.

 

    	8

    	 

    

 

 

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

 

(q) The Debtor
shall permit the Secured Party and its representatives and agents to inspect, upon reasonable advanced notice, the Collateral at
any time, and to make copies of records pertaining to the Collateral as may be requested by a Secured Party from time to time.

 

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

 

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

 

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

 

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

 

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

 

(w) Intentionally
Omitted.

 

(x) The Debtor
may not relocate its chief executive office to a new location without providing 30 days prior written notification thereof to the
Secured Party and so long as, at the time of such written notification, the Debtor provides any financing statements or fixture
filings necessary to perfect and continue perfected the perfected security Interest granted and evidenced by this Agreement.

 

    	9

    	 

    

 

 

(y) The Debtor
was organized and remains organized solely under the laws of the state set forth next to the Debtor’s name in the first paragraph
of this Agreement. Schedule D attached hereto sets forth the Debtor’s organizational identification number or, if
the Debtor does not have one, states that one does not exist.

 

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

 

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

 

(bb) The
Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein, in the Restructuring Agreement
and in the Note.

 

(cc) The
Debtor shall register the pledge of the applicable Pledged Securities on the books of the Debtor. The Debtor shall notify each
issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Party on the
books of such issuer. Further, except with respect to certificated securities delivered to the Secured Party, the Debtor shall
deliver to the Secured Party an acknowledgement of pledge (which, where appropriate, shall comply with the requirements of the
relevant UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement
shall confirm that: (a) it has registered the pledge on its books and records; and (b) at any time directed by the Secured Party
during the continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into
the name of any designee of Secured Party, will take such steps as may be necessary to effect the transfer, and will comply with
all other instructions of Secured Party regarding such Pledged Securities without the further consent of the Debtor.

 

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

 

    	10

    	 

    

 

 

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

 

(ff) Schedule
F attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights,
and domain names owned by the Debtor as of the date hereof. Schedule F lists all material licenses in favor of the Debtor
for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks
of the Debtor have been duly recorded (or applications for such patents and trademarks are currently pending) at the United States
Patent and Trademark Office and all material copyrights of the Debtor have been duly recorded (or applications for such copyrights
is currently pending) at the United States Copyright Office.

 

(gg) None
of the account debtors or other persons or entities obligated on any of the Collateral is a governmental authority covered by the
Federal Assignment of Claims Act or any similar federal, state or local statute or rule in respect of such Collateral.

 

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

 

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

 

(a) The occurrence
of an Event of Default set forth in the Note or the Restructuring Agreement;

 

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

 

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

 

    	11

    	 

    

 

 

7.          
Duty To Hold In Trust.

 

(a) Upon the occurrence
of any Event of Default and during the continuation of such Event of Default, the Debtor shall, upon receipt of any revenue, income,
dividend, interest or other sums subject to the Security Interest, whether payable pursuant to any of the Securities or otherwise,
or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same
in trust for the Secured Party and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Party.

 

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

 

8.            Rights
and Remedies Upon Default.

 

(a) Upon
the occurrence of any Event of Default and during the continuation of such Event of Default, the Secured Party, acting through
any agent appointed for such purpose, shall have the right to exercise all of the remedies conferred hereunder, under the Restructuring
Agreement, the Note and the other Transaction Documents, and the Secured Party shall have all the rights and remedies of a secured
party under the UCC. Without limitation, the Secured Party shall have the following rights and powers:

 

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

 

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

 

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

 

(iv) The Secured
Party shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Secured Party and to enforce the Debtor’s rights against such account debtors and obligors.

 

(v) The Secured
Party may (but is not obligated to) direct any financial intermediary or any other person or entity holding any investment property
to transfer the same to the Secured Party or their designee.

 

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

 

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

 

    	13

    	 

    

 

 

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

 

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

 

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

 

    	14

    	 

    

 

 

11.         Costs
and Expenses. The Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any
filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements,
partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Secured
Party. The Debtor shall also pay all other claims and charges which in the reasonable opinion of the Secured Party might materially
prejudice, imperil or otherwise affect the Collateral or the Security Interest therein. The Debtor will also, upon demand, pay
to the Secured Party the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and
of any experts and agents, which the Secured Party may incur in connection with (i) the enforcement of this Agreement, (ii) the
custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise
or enforcement of any of the rights of the Secured Party under the Securities. Until so paid, any fees payable hereunder shall
be added to the principal amount of the Note and shall bear interest at the Default Rate.

 

12.         Responsibility
for Collateral. The Debtor assumes all liabilities
and responsibility in connection with all Collateral, and the Obligations shall in no way be affected or diminished by reason of
the loss, destruction, damage or theft of any of the Collateral or its unavailability for any reason. Without limiting the generality
of the foregoing, (a) the Secured Party (i) has any duty (either before or after an Event of Default) to collect any amounts in
respect of the Collateral or to preserve any rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise
prepare the Collateral for sale, and (b) the Debtor shall remain obligated and liable under each contract or agreement included
in the Collateral to be observed or performed by the Debtor thereunder. The Secured Party shall have any obligation or liability
under any such contract or agreement by reason of or arising out of this Agreement or the receipt by the Secured Party of any payment
relating to any of the Collateral, nor shall the Secured Party be obligated in any manner to perform any of the obligations of
the Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment
received by the Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any such
contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment of
any amounts which may have been assigned to the Secured Party or to which the Secured Party may be entitled at any time or times.

 

13.
         Security Interest Absolute. All rights of the Secured Party
and all obligations of the Debtor hereunder, shall be absolute and unconditional, irrespective of:

 

(a) any lack
of validity or enforceability of this Agreement, the Restructuring Agreement, the Note or any agreement entered into in connection
with the foregoing, or any portion hereof or thereof;

 

    	15

    	 

    

 

 

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

 

14.         Term
of Agreement. This Agreement and the Security Interest shall terminate on the date on which all payments under the Note have
been indefeasibly paid in full, the Secured Party ceases to hold any Securities, and all other Obligations have been paid or discharged;
provided, however, that all indemnities of the Debtor contained in this Agreement shall survive and remain operative and in full
force and effect regardless of the termination of this Agreement.

 

15.
         Power of Attorney; Further Assurances.

 

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

 

    	16

    	 

    

 

 

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

 

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

 

16.         Notices.
All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Restructuring
Agreement.

 

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

 

    	17

    	 

    

 

 

18.         Miscellaneous.

 

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

 

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

 

(c)           This
Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and is intended to supersede
all prior negotiations, understandings and agreements with respect thereto. Except as specifically set forth in this Agreement,
no provision of this Agreement may be modified or amended except by a written agreement specifically referring to this Agreement
and signed by the parties hereto.

 

(d)          In
the event any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction for any reason,
unless such provision is narrowed by judicial construction, this Agreement shall, as to such jurisdiction, be construed as if such
invalid, prohibited or unenforceable provision had been more narrowly drawn so as not to be invalid, prohibited or unenforceable.
If, notwithstanding the foregoing, any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction,
such provision, as to such jurisdiction, shall be ineffective to the extent of such invalidity, prohibition or unenforceability
without invalidating the remaining portion of such provision or the other provisions of this Agreement and without affecting the
validity or enforceability of such provision or the other provisions of this Agreement in any other jurisdiction.

 

(e) No waiver
of any breach or default or any right under this Agreement shall be considered valid unless in writing and signed by the party
giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default or right, whether of the same
or similar nature or otherwise.

 

(f) This
Agreement shall be binding upon and inure to the benefit of each party hereto and its successors and assigns.

 

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

 

    	18

    	 

    

 

 

(h) All questions
concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.
Each party agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Agreement, the Restructuring Agreement and the Note (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, investment advisors or agents, and employees of each of them) shall be commenced
exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and
consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby. If any party shall commence a proceeding to enforce any provisions of
this Agreement, then the prevailing party in such proceeding shall be reimbursed by the other party for its reasonable attorney’s
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such proceeding.

 

(i) This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile
or electronic (in “.pdf” format) 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 or electronic
signature were the original thereof.

 

(j) The Debtor
shall indemnify, reimburse and hold harmless the Secured Party and its partners, members, shareholders, officers, directors, investment
advisors, agents, and employees of each of them (collectively, “Indemnitees”) from and against any and all losses,
claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including fees relating to the cost
of investigating and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related
to or arising from or alleged to arise from this Agreement or the Collateral, except any such losses, claims, liabilities, damages,
penalties, suits, costs and expenses which result from the gross negligence or willful misconduct of the Indemnitee as determined
by a final, nonappealable decision of a court of competent jurisdiction. This indemnification provision is in addition to, and
not in limitation of, any other indemnification provision in the Securities, the Restructuring Agreement or any other agreement,
instrument or other document executed or delivered in connection herewith or therewith.

 

    	19

    	 

    

 

 

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

 

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

 

19.         Effect
of Amendment and Restatement. This Agreement amends and restates the September 2011 Security Agreement and shall not be construed
to be a substitution or novation of the September 2011 Security Agreement.

 

[SIGNATURE PAGES FOLLOW]

 

 

    	20

    	 

    

 

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

 

	 	Debtor:
	 	 
	 	NET TALK.COM, INC.,
	 	 	 
	 	By:	/s/Anastasios Kyriakides
	 	Name:	ANASTASIOS KYRIAKIDES
	 	Title:  	President & CEO

 

[Debtor Signature Page to Fourth Amended
and Restated Security Agreement]

 

    	21

    	 

    

 

	 	Secured Party:
	 	 
	 	VICIS CAPITAL MASTER FUND, a sub-   

trust of Vicis Capital Series Master Trust
	 	By: 	Vicis Capital, LLC, its investment advisor
	 	 	 
	 	 	 
	 	By:	/s/ Keith W Hughes
	 	Name: 	KEITH W HUGHES
	 	Title:	CFO, Vicis Capital, LLC

 

[Secured Party Signature
Page to Fourth Amended and Restated Security Agreement]

 

    	22

    	 

    

 

 

SCHEDULE A

Net Talk.com

1080 NW 163rd Drive

Miami, FL 33169

  

    	 

    	 

    

 

SCHEDULE B

 

None.

  

    	 

    	 

    

 

SCHEDULE C

 

Florida.

  

    	 

    	 

    

 

SCHEDULE D

 

Debtor’s organizational identification number:
204830633

  

    	 

    	 

    

 

SCHEDULE E

 

None.

  

    	 

    	 

    

 

SCHEDULE F

 

Patents, patent applications, trademarks, trademark applications,
registered copyrights, and domain names owned by the Debtor, and all material licenses relating thereto:

 

U.S. Patent Number 8,243,722.

  

    	 

    	 

    

 

SCHEDULE G

 

Pledged Securities

 

None

 

    	 

    	 

    

 

SCHEDULE H

 

6% Secured Promissory Note dated December 31, 2013

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