Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement
(as amended, supplemented, restated and/or modified from time to time, this “Agreement”) is entered into as of December
29, 2021, by and among BitNile Holdings, Inc., a Delaware corporation (and, unless the context requires otherwise, collectively with the
“Subsidiaries” referred to below, the “Company”), and each investor indentified on the signature
page hereto (each, including its successors and assigns, the “Investor”).

 

BACKGROUND

 

A.       The
board of directors (the “Board of Directors”) of the Company has authorized the issuance to Investor of the Note (as
defined below) and the Warrants (as defined below).

 

B.       The
Investor desires to purchase the Note (as defined below) and the Warrants (as defined below) on the terms and conditions set forth in
this Agreement.

 

C.       Concurrently
with the execution of this Agreement, the Company, its Subsidiaries and the Investor will enter into certain security agreements and guarantees,
as listed in Exhibit A (the “Security Documents”), pursuant to which the Subsidiaries will guarantee all of the Company's
obligations under the Transaction Documents and the Company and its Subsidiaries will grant a first priority security interest in substantially
all of their respective assets to secure the Company’s obligations hereunder and the Subsidiaries’ obligations under any such
guarantee.

 

D.       Between
December 15, 2021 and December 28, 2021, the Company and certain investors entered into certain Purchase Agreements (collectively, the
“Note Purchase Agreement”) providing for, among other things, the offer and sale of those certain 10% Demand Secured
Promissory Notes (collectively, the “Bridge Notes”) in the aggregate principal face amount of approximately $38,162,000
MILLION DOLLARS (the “Bridge Financing”).

 

E.       The
Company shall use the proceeds from the sale of the Note (as defined below) to repay in full the investors in the Bridge Financing, as
more fully detailed herein.

 

NOW THEREFORE, in consideration
of the foregoing recitals and the covenants and agreements set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.       DEFINITIONS.
As used in this Agreement, the following terms shall have the following meanings specified or indicated below, and such meanings shall
be equally applicable to the singular and plural forms of such defined terms:

 

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

 

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

 

“Acquisition”
means the acquisition by the Company or any direct or indirect Subsidiary of the Company of a majority of the Equity Interests or substantially
all of the assets and business of any Person, whether by direct purchase of Equity Interests, asset purchase, merger, consolidation or
like combination.

 

    	 	 	 

    	 

    

 

“Affiliate”
means a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control
with, the Person specified.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Blue Sky Application”
has the meaning set forth in Section 9.3(a).

 

“Board of Directors”
has the meaning set forth in the recitals.

 

“Bridge Financing”
has the meaning set forth in the recitals.

 

“Business Day”
means any day other than a Saturday, Sunday or any other day on which banks are permitted or required to be closed in New York City.

 

“Capital Stock”
means the Common Stock and any other classes of shares in the capital of the Company.

 

“Change of Control”
means, with respect to the Company, on or after the date of this Agreement:

 

		(a)	a change in the composition of the Board of Directors of the Company at a single shareholder meeting where
a majority of the individuals that were directors of the Company immediately prior to the start of such shareholder meeting are no longer
directors at the conclusion of such meeting, without the prior written consent of a majority in interest of the Investors;

 

		(b)	a change, without the prior written consent of a majority in interest of the Investors, in the composition
of the Board of Directors of the Company prior to the termination of this Agreement where a majority of the individuals that were directors
as of the date of this Agreement cease to be directors of the Company prior to the termination of this Agreement;

 

		(c)	other than a shareholder that holds such a position at the date of this Agreement, if a Person comes to
have beneficial ownership, control or direction over more than forty percent (40%) of the voting rights attached to any class of voting
securities of the Company; or

 

		(d)	the sale or other disposition by the Company or any of its Subsidiaries in a single transaction, or in
a series of transactions, of all or substantially all of their respective assets.

 

“Closing”
has the meaning set forth in Section 2.2.

 

“Closing Date”
has the meaning set forth in Section 2.2.

 

“Code”
has the meaning set forth in Section 2.1.

 

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“Collateral Agent”
means Esousa Holdings LLC as detailed in that certain Security Agreement, executed and delivered on the date hereof and in connection
with the Agreement, by and between the Company and Esousa Holdings LLC.

 

“Class A Warrant”
has the meaning set forth in Section 2.1.

 

“Class B Warrant”
has the meaning set forth in Section 2.1.

 

“Class B Common Stock”
means the Class B Common Stock in the capital of the Company, each of which has $0.001 par value per share.

 

“Common Stock”
means the Class A Common Stock in the capital of the Company, each of which has $0.001 par value per share.

 

“Company”
has the meaning set forth in the preamble.

 

“Demand 10% Secured
Promissory Note” has the meaning set forth in the Note Purchase Agreement.

 

“Effectiveness Period”
has the meaning set forth in Section 9.2(a).

 

“Equity Interests”
means and includes capital stock, membership interests and other similar equity securities, and shall also include equity-linked securities
including, but not limited to, warrants or options to purchase capital stock, membership interests or other equity interests.

 

“Event”
means any event, change, development, effect, condition, circumstance, matter, occurrence or state of facts.

 

“Event of Default”
has the meaning set forth in Section 7.1.

 

“Exchange Approval”
means approval of the Principal Market to authorize the issuance of the Warrant Shares with full conversion and voting rights pursuant
to Rule 713(a)(ii) of the NYSE Company Guide.

 

“Exempted Securities”
means (a) Common Stock or preferred shares or rights, warrants or options to purchase Common Stock or preferred shares issued in connection
with any Acquisition where the Company does not receive cash proceeds therefrom, (b) equity securities issued by reason of a dividend,
stock split, split-up or other distribution on Common Stock, (c) Common Stock or rights, warrants or options to purchase Common Stock
issued to employees or directors of, or consultants or advisors to, the Company or any of its Subsidiaries pursuant to a plan, agreement
or arrangement approved by the Board of Directors (“Equity Plans”), (d) Common Stock or rights, warrants or options
to purchase Common Stock issued to third parties in connection with strategic partnerships approved by the Board of Directors, (e) Common
Stock actually issued upon the exercise of options or warrants or Common Stock actually issued upon the conversion or exchange of any
securities convertible into Common Stock, in each case provided that such issuance is pursuant to the terms of the applicable option,
warrant or convertible security, or (f) Common Stock issued upon the exercise or conversion of options, warrants or convertible securities
outstanding on the date hereof where the Company does not receive cash proceeds therefrom.

 

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“Funding Amount”
means an amount equal to up to Sixty Million Dollars ($60,000,000).

 

“Governmental Entity”
means any instrumentality, subdivision, court, administrative agency, department, body, bureau, division, board, committee, panel,
commission, official or other authority of any country, state, province, prefect, municipality, locality or other government or political
subdivision thereof, whether domestic or foreign, or any supranational or multinational organization or authority, or any quasi-governmental,
private body or arbitral body exercising any executive, legislative, judicial, quasi-judicial, regulatory, taxing, importing, administrative
or other governmental or quasi-governmental authority.

 

“HSR Act”
has the meaning set forth in Section 5.15.

 

“Indebtedness”
shall mean (a) all obligations for borrowed money; (b) all obligations evidenced by bonds, debentures, notes, or other similar instruments
and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, current swap agreements, interest rate
hedging agreements, interest rate swaps, or other financial products; (c) all capital lease obligations that exceed $100,000 in the aggregate
in any fiscal year; (d) all obligations or liabilities secured by a lien or encumbrance on any asset of the Company or any Subsidiary,
irrespective of whether such obligation or liability is assumed; (e) all obligations for the deferred purchase price of assets, together
with trade debt and other accounts payable that exceed $100,000 in the aggregate in any fiscal year; (f) all synthetic leases; and (g)
any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted or sold
with recourse) any of the foregoing obligations of any other person.

 

“Investor”
has the meaning set forth in the preamble.

 

“Investor Group”
shall mean the Investor plus any other Person with which the Investor is considered to be part of a group under Section 13 of the 1934
Act or with which the Investor otherwise files reports under Sections 13 and/or 16 of the 1934 Act.

 

“Investor Party”
has the meaning set forth in Section 5.11(a).

 

“Investor Warrant
Shares” means the Warrant Shares plus all shares of Common Stock that are issuable to the Investor upon exercise of warrants
previously issued by the Company.

 

“IP Rights”
has the meaning set forth in Section 3.10.

 

“Law” means
any law, rule, regulation, order, judgment or decree, including, without limitation, any federal, and state securities laws.

 

“Legend Removal Date”
has the meaning set forth in Section 5.1(c).

 

“Losses”
has the meaning set forth in Section 5.11(a).

 

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“Material Adverse
Effect” means any material adverse effect on (i) the businesses, properties, assets, prospects, operations, results of operations
or financial condition of the Company, or the Company and the Subsidiaries, taken as a whole, or (ii) the ability of the Company to consummate
the transactions contemplated by this Agreement or to perform its obligations hereunder or under the Note or the Warrant; provided,
however, that none of the following shall be deemed either alone or in combination to constitute, and none of the following shall
be taken into account in determining whether there has been or would be, a Material Adverse Effect: (a) any adverse effect resulting
from or arising out of general economic or financial or capital markets or political conditions in the United States or in any other jurisdiction
in which the Company has operations or conducts business to the extent, and only to the extent, the effects do not disproportionately
affect the Company as compared to other participants in the industries in which the Company operates; (b) any adverse effect resulting
from or arising out of general conditions in the industries in which the Company and the Subsidiaries operate; (c) any adverse effect
resulting from any changes to applicable Law; or (d) any adverse effect resulting from or arising out of any natural disaster or
any acts of terrorism, sabotage, military action or war or any escalation or worsening thereof; provided, further, that
any event, occurrence, fact, condition or change referred to in clauses (a) through (d) immediately above shall be taken into account
in determining whether a Material Adverse Effect has occurred or could reasonably be expected to occur to the extent that such event,
occurrence, fact, condition or change has a disproportionate effect on the Company and/or the Subsidiaries compared to other participants
in the industries in which the Company and the Subsidiaries operate.

 

“Maximum Percentage”
means 9.99% of any class of Equity Interests in the Company that is registered under the 1934 Act (excluding any Equity Interests deemed
beneficially owned by virtue of the Warrants).

 

“Money Laundering
Laws” has the meaning set forth in Section 3.25.

 

“New Securities”
means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to
purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable
for such equity securities.

 

“Note”
has the meaning set forth in Section 2.1.

 

“Obligor”
means the Company and each of its Subsidiaries.

 

“OFAC”
has the meaning set forth in Section 3.23.

 

“Offer Notice”
has the meaning set forth in Section 10.1.

 

“Permitted Indebtedness”
shall have the meaning set forth in Section 5.7.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Prepayment Right”
shall have the meaning set forth in Section 2.3.

 

“Principal Amount”
has the meaning set forth in Section 2.1.

 

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“Principal Market”
means the NYSE American, LLC.

 

“Proceedings”
has the meaning set forth in Section 3.6.

 

“Prohibited Transaction”
means a transaction with a third party or third parties in which the Company issues or sells (or arranges or agrees to issue or sell):

 

(a)       any
debt, equity or equity-linked securities (including options or warrants) that are convertible into, exchangeable or exercisable for, or
include the right to receive shares of the Company’s Capital Stock:

 

(i)        at
a conversion, repayment, exercise or exchange rate or other price that is based on, and/or varies with, a discount to the
future trading prices of, or quotations for, Common Stock; or

 

(ii)       at
a conversion, repayment, exercise or exchange rate or other price that is subject to being reset at some future date after the
initial issuance of such debt, equity or equity-linked security or upon the occurrence of specified or contingent events (other than warrants
that may be repriced by the Company);

 

		(b)	any securities in a capital or debt raising transaction or series of related transactions which grant
to an investor the right to receive additional securities based upon future transactions of the Company on terms more favorable than those
granted to such investor in such first transaction or series of related transactions;

 

and are deemed to include transactions generally
referred to as at-the-market transactions (ATMs) or equity lines of credit and stand-by equity distribution agreements, and convertible
securities and loans having a similar effect. Notwithstanding the foregoing, and for the avoidance of doubt, rights issuances, shareholder
purchase plans, Equity Plans, convertible securities, or issuances of Equity Interests, based on the trading price of the Common Stock
on the Trading Market but each at a fixed price per share, shall not be deemed to be a Prohibited Transaction; or

 

		(c)	any other securities including, but not limited to, the issuance by the Company of non-convertible preferred
stock, in a capital or debt raising transaction or series of related transactions, with the exception of a transaction of this kind to
be entered into between the Company and a member of FINRA whose identity has been disclosed to the Collateral Agent.

 

“Prospectus”
means the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to
the terms of the offering of any portion of the Warrant Shares covered by such Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus, and
any “free writing prospectus” as defined in Rule 405 under the 1933 Act.

 

“Public Record” has the meaning
set forth in Section 3.5(a).

 

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“Register,”
“Registered” and “Registration” refer to a registration made by preparing and filing a Registration
Statement or similar document in compliance with the 1933 Act (as defined below), and the declaration or ordering of effectiveness of
such Registration Statement or document.

 

“Registration Statement”
means any registration statement of the Company filed under the 1933 Act, including the Prospectus and amendments and supplements to such
Registration Statement, and including post-effective amendments, all exhibits and all material incorporated by reference in such Registration
Statement.

 

“Required Minimum”
means, as of any date, the maximum aggregate number of Common Stock then issued or potentially issuable in the future pursuant to the
Transaction Documents, including any Warrant Shares issuable upon exercise in full of all Warrants, ignoring any exercise limits set forth
therein.

 

“Reverse Split”
has the meaning set forth in Section 5.20.

 

“SEC” means
the United States Securities and Exchange Commission.

 

“Security Documents”
has the meaning set forth in the recitals.

 

“Securities”
means the Note, the Warrant and the Warrant Shares.

 

“Securities Termination
Event” means either of the following has occurred:

 

(a)       trading
in securities generally in the United States has been suspended or limited for a consecutive period of greater than three (3) Business
Days; or

 

(b)       a
banking moratorium has been declared by the United States or the New York State authorities and is continuing for a consecutive period
of greater than three (3) Business Days.

 

“Security Agreement”
means that certain security agreement, executed and delivered on the date hereof and in connection with the Agreement, by and between
the Company and Esousa Holdings LLC.

 

“Stockholder Approval”
shall mean the approval of the holders of a majority of the Company’s outstanding voting Capital Stock: (a) if and to the extent
legally required, to amend the Company’s certificate of incorporation to increase the number of authorized Common Stock by at least
the number of Common Stock equal to the number of Common Stock issuable hereunder, (b) to ratify and approve all of the transactions contemplated
by the Transaction Documents, including the issuance of all of the Warrant Shares (as such term is defined in each of such documents)
issuable to the Investor thereunder, all as may be required by the applicable rules and regulations of the Principal Market (or any successor
entity).

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of
the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or
the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Company.

 

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“Tax” or
“Taxes” means all federal United States and state, municipal, foreign and other taxes (including, without limitation,
income taxes, sales taxes, excise taxes, value added taxes, capital taxes, property taxes, withholding taxes, payroll taxes and contributions,
and production, severance and similar taxes and assessments) and includes all penalties, interest and fines with respect thereto and all
liabilities for the payment of such amounts as a transferee or successor or under any obligation to indemnify another Person.

 

“Trading Day”
means a day on which the Common Stock is traded on a Trading Market.

 

“Trading Market”
means whichever of the New York Stock Exchange, NYSE American, or the Nasdaq Stock Market (including the Nasdaq Capital Market), on which
the Common Stock is listed or quoted for trading on the date in question.

 

“Transaction Documents”
means this Agreement, the Note, the Warrants, the Security Documents, and any other documents or agreements executed or delivered by any
Obligor in connection with the transactions contemplated hereunder.

 

“VWAP”
means, as of any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of one share of Common Stock trading in the ordinary course of
business on the applicable trading price for such date (or the nearest preceding date) on such Trading Market as reported by Bloomberg
Financial L.P.; (b) if the Common Stock is not then listed on a Trading Market and if the Common Stock is traded in the over-the-counter
market, as reported by the OTCQX or OTCQB Markets, the volume weighted average price of one share of Common Stock for such date (or the
nearest preceding date) on the OTCQX or OTCQB Markets, as reported by Bloomberg Financial L.P.; (c) if the Common Stock is not then listed
or quoted on a Trading Market or on the OTCQX or OTCQB Markets and if prices for the Common Stock are then reported in the “Pink
Sheets” published by the OTC Markets Group (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price of one share of Common Stock so reported, as reported by Bloomberg Financial L.P.; or (d) in all other cases,
the fair market value of one share of Common Stock as determined by an independent appraiser selected in good faith by the majority in
interest of the Investors and reasonably acceptable to the Company.

 

“Warrants”
means Class A Warrant and Class B Warrant.

 

“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrants. 

 

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2.        PURCHASE
AND SALE OF THE NOTE AND THE WARRANTS.

 

2.1       Purchase
and Sale of the Note and the Warrants. Subject to the terms and conditions set forth herein, at the Closing, the Company shall issue
and sell to the Investors, and the Investors shall purchase from the Company, (a) a 10% original issuance discount senior secured promissory
notes in the form attached hereto as Exhibit B (the “Notes”), in the aggregate principal amount of Sixty-Six
Million Dollars ($66,000,000), subject to adjustment as set forth in the Note (the “Principal Amount”); (b) a warrant
to purchase shares of Common Stock, in the form attached hereto as Exhibit C, registered in the name of the Investors, pursuant
to which the Investor shall have the right to acquire up to an aggregate of 14,834,700 Warrant Shares split among the Investors (the “Class
A Warrant”); and (c) a warrant to purchase shares of Common Stock, in the form attached hereto as Exhibit D, registered
in the name of the Investor, pursuant to which the Investors shall have the right to acquire, up to an aggregate of 2,042,914 Warrant
Shares split among the Investors (the “Class B Warrant”) in exchange for the Funding Amount. The Investor and the Company
agree that for U.S. federal income tax purposes and applicable state, municipal, local and non-U.S. tax purposes, the Funding Amount shall
be allocable between the Note and the Warrant based on the relative fair market values thereof. Neither the Investor nor the Company shall
take any contrary position on any tax return, or in any audit, claim, investigation, inquiry or proceeding in respect of Taxes, unless
otherwise required pursuant to a final determination within the meaning of Section 1313 of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

Each Investor that has acquired
Bridge Notes shall have the ability to purchase the Notes, at its option and whether in full or partial payment therefor, for either (i)
cash, or (ii) the surrender of its Bridge Note, including accrued but unpaid interest as well as certain fees as provided for in such
Bridge Notes (such additional dollar amount of the Bridge Note, the “Bridge Amount”) for cancellation upon the Closing
Date, where the principal face amount of each such Bridge Amount shall be deemed to be equal to the amount in cash payable in consideration
for the Notes.

 

2.2       Closing.
The closing hereunder, including payment for and delivery of the Note and the Warrants, shall take place remotely via the exchange of
documents and signatures, no later than ten (10) Business Days following the execution and delivery of this Agreement, subject to satisfaction
or waiver of the conditions set forth in Section 6, or at such other time and place as the Company and the Investor agree upon,
orally or in writing (the “Closing,” and the date of the Closing being the “Closing Date”).

 

2.3       Repayment
of the Note and Prepayment Right. As set forth in this Agreement and in the Note, the Company shall make weekly payments to the Investor
and shall make certain other payments to the Investor as detailed therein. Further, as set forth in the Note, in its sole discretion and
upon giving the prior written notice set forth in the Note, the Company will have the right to pre-pay the entire then-outstanding principal
amount of the Note at any time with no penalty or premium of any kind (the “Prepayment Right”).

 

2.4       Senior
Obligation. As an inducement for the Investors to enter into this Agreement and to purchase the Notes, all obligations of the Obligors
pursuant to the Transaction Documents shall be secured by a security interest in and lien upon all of the assets of the Obligors except
as set forth in the Security Agreement.

 

3.       REPRESENTATIONS
AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Investor and covenants with the Investor that, except as
is set forth in the Disclosure Letter being delivered to the Investor as of the date hereof and as of the Closing Date, the following
representations and warranties are true and correct in all material respects:

 

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3.1       Organization
and Qualification. The Company is a corporation duly organized and validly existing in good standing under the Laws of the State
of Delaware and has the requisite corporate power and authority to own its properties and to carry on its business as now being conducted.
The Company is duly qualified to do business and is in good standing in every jurisdiction in which the ownership of its property or
the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified
or be in good standing would not have a Material Adverse Effect.

 

3.2       Authorization;
Enforcement; Compliance with Other Instruments. The Company and each of its Subsidiaries (as applicable) has the requisite corporate
or limited liability company power, as the case may be, and authority to execute the Transaction Documents to which it is a party, to
issue and sell the Note and the Warrants pursuant hereto (in the case of the Company), and to perform its obligations under the Transaction
Documents to which it is a party, including issuing the Warrant Shares on the terms set forth in this Agreement upon receipt of Exchange
Approval. The execution and delivery of the Transaction Documents by the Company and its Subsidiaries and the issuance and sale of the
Securities by the Company pursuant hereto, including without limitation the reservation of the Warrant Shares for future issuance, have
been duly and validly authorized by the Company’s Board of Directors and any similar governing body of a Subsidiary and no further
consent or authorization is required by the Company, its Subsidiaries, their respective Boards of Directors or other governing bodies,
the Company’s stockholders or any other Person in connection therewith other than the Company’s receipt of Exchange Approval,
which the Company expects to have within fourteen (14) days from the Closing Date. The Transaction Documents have been duly and validly
executed and delivered by the Company and its Subsidiaries party thereto and constitute valid and binding obligations of the Company
and its Subsidiaries (as applicable), enforceable against such parties in accordance with their respective terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
Laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.

 

3.3       No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and its Subsidiaries (as applicable)
and the issuance and sale of the Note and the Warrants by the Company hereunder will not (a) conflict with or result in a violation of
the Company’s or its Subsidiaries’ notice of articles, articles or any other constating documents, (b) conflict with,
or constitute a default (or an event which, with notice or lapse of time or both, would become a default) under, or give to others any
right of termination, amendment, acceleration or cancellation of, any agreement to which the Company or any of the Subsidiaries is a
party, or require the Company or any Subsidiary to grant a lien or encumbrance on any of its property or assets under the terms of any
other agreement to which it is a party, or (c) subject to the making of the filings referred to in Section 5, violate in
any material respect any Law or any rule or regulation of the Principal Market applicable to the Company or any of the Subsidiaries or
by which any of their properties or assets are bound or affected. Assuming the accuracy of the Investor’s representations in Section 4
and subject to the making of the filings referred to in Section 5, (i) no approval or authorization will be required
from any governmental authority or agency, regulatory or self-regulatory agency or other third party (including the Principal Market)
in connection with the issuance of the Note and the Warrants and the other transactions contemplated by this Agreement (including the
issuance of the Warrant Shares upon exercise of the Warrants) and (ii) the issuance of the Note and the Warrants, and the issuance
of the Warrant Shares upon exercise of the Warrants will be exempt from the registration and qualification requirements under the 1933
Act and all applicable state securities Laws.

 

    	 	10	 

    	 

    

 

3.4       Capitalization
and Subsidiaries.

 

(a)       The
authorized Capital Stock of the Company consists of Five Hundred Million shares of Class A Common Stock, Twenty-Five Million shares of
Class B Common Stock and Twenty-Five Million shares of Preferred Stock. As of the close of business on December 20, 2021, 84,331,047 shares
of Common Stock, no shares of Class B Common Stock and 132,040 shares of Preferred Stock were issued and outstanding. As of December 20,
2021, (x) an aggregate of 6,395,919 shares of Common Stock are issuable upon exercise of options granted under a stock option plan, of
which 938,401 are fully vested and exercisable; (y) an aggregate of 3,991,635 Common Stock are issuable upon exercise of outstanding warrants
granted by the Company, with exercise prices ranging from $0.88 to $2,000 per share and (Z) an aggregate of 2,810,000 restricted stock
grants are outstanding. The Company has duly reserved up to 11,925,000 shares of Common Stock for issuance upon exercise of the Warrant
A and has duly reserved up to 1,325,000 shares of Common Stock for issuance upon exercise of the Warrant B. The Warrant Shares, if and
when issued upon exercise of the Warrants in accordance with their respective terms, will be validly issued, fully paid and non-assessable
and free from all Taxes, liens and charges with respect to the issuance thereof. No shares of the Company’s Capital Stock are subject
to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company. The Company’s
certificate of incorporation and bylaws, each as amended, on file on the SEC’s EDGAR website are true and correct copies of the
Company’s constating documents as in effect as of the date hereof. The Company is not in violation of any provision of its certificate
of incorporation or bylaws.

 

(b)       Schedule
3.4(b) lists each direct and indirect Subsidiary of the Company existing on the date hereof and indicates for each Subsidiary (i)
the authorized capital stock or other Equity Interests of such Subsidiary as of the date hereof, (ii) the number and kind of shares or
other ownership interests of such Subsidiary that are issued and outstanding as of the date hereof, and (iii) the owner of such shares
or other ownership interests. Other than as set forth on Schedule 3.4(b), no Subsidiary has any outstanding stock options, warrants
or other instruments pursuant to which such Subsidiary may at any time or under any circumstances be obligated to issue any shares of
its capital stock or other Equity Interests. Each Subsidiary is duly organized and validly existing in good standing under the laws of
its jurisdiction of formation and has all requisite power and authority to own its properties and to carry on its business as now being
conducted.

 

(c)       Neither
the Company nor any Subsidiary is bound by any agreement or arrangement pursuant to which it is obligated to register the sale of any
securities under the 1933 Act other than Esousa Holdings, LLC. There are no outstanding securities of the Company or any of the Subsidiaries
which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the
Company or any Subsidiary is or may become bound to redeem or purchase any security of the Company or any Subsidiary. There are no outstanding
securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Note, either Warrant
or the Warrant Shares. Neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or agreement.

 

    	 	11	 

    	 

    

 

(d)       The
issuance and sale of any of the Securities on the Closing Date will not obligate the Company to issue shares of Common Stock or other
securities to any other Person and will not result in the adjustment of the exercise, conversion, exchange, or reset price of any outstanding
securities.

 

(e)       As
of the date of this Agreement, the Company has capacity under the rules and regulations of the Principal Market to issue up to 16,866,209
shares of Common Stock (or securities exercisable for Common Stock) without obtaining Stockholder Approval.

 

3.5       Public
Record; Financial Statements.

 

(a)       As
of the date hereof, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it pursuant
to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and
financial statements and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “Public
Record”). As of their respective filing dates, all documents filed by the Company in the Public Record complied in all material
respects with the requirements of the 1934 Act, as applicable, and the rules and regulations thereunder, and none of the documents in
the Public Record, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading.

 

(b)       As
of their respective dates, the financial statements of the Company included in the Public Record complied as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the 1934 Act with respect thereto. Such financial statements
have been prepared in accordance with U.S. generally accepted accounting principals ("GAAP"), and audited by a firm that
is an independent registered public accounting firm subject to the public company accounting oversight board consistently applied, during
the periods involved (except as may be otherwise indicated in such financial statements or the notes thereto, or, in the case of unaudited
interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material
respects the consolidated financial position of the Company as of the dates thereof and the consolidated results of its operations and
consolidated cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
No other written information provided by or on behalf of the Company to the Investor in connection with the Investor’s purchase
of the Note and the Warrants which is not included in the Public Record contains any untrue statement of a material fact or omits to state
any material fact necessary to make the statements therein, in the light of the circumstance under which they are or were made, not misleading.

 

    	 	12	 

    	 

    

 

(c)       Except
as set forth on Schedule 3.5(c), the Company and each of the Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset
accountability, (iii) reasonable controls to safeguard assets are in place and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

3.6       Litigation
and Regulatory Proceedings. Other than as set forth on Schedule 3.6, there are no material actions, causes of action, suits,
claims, proceedings, inquiries or investigations (collectively, “Proceedings”) before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of the Company or any
of the Subsidiaries, threatened against or affecting the Company or any of the Subsidiaries, the Common Stock or any other class of issued
and outstanding shares of the Company’s Capital Stock, or any of the Company’s or the Subsidiaries’ officers or directors
in their capacities as such and, to the knowledge of the Company, there is no reason to believe that there is any basis for any such
Proceeding.

 

3.7       No
Undisclosed Events, Liabilities or Developments. Other than as set forth on Schedule 3.7 hereto, no event, development or
circumstance has occurred or exists, or to the knowledge of the Company, is reasonably anticipated to occur or exist that (a) would reasonably
be anticipated to have a Material Adverse Effect or (b) would be required to be disclosed by the Company under applicable securities
Laws on a Registration Statement relating to an issuance and sale by the Company of its Common Stock and which has not been publicly
announced.

 

3.8       Compliance
with Law. The Company and each of the Subsidiaries have conducted and are conducting their respective businesses in compliance in
all material respects with all applicable Laws and are in compliance in all material respects with the rules and regulations of the Trading
Market. The Company is not aware of any facts which could reasonably be anticipated to lead to a delisting of the Common Stock by the
Trading Market in the future.

 

3.9       Employee
Relations. Neither the Company nor any Subsidiary is involved in any union labor dispute nor, to the knowledge of the Company, is
any such dispute threatened. Neither the Company nor any Subsidiary is a party to any collective bargaining agreement. No executive officer
has notified the Company that such officer intends to leave the Company’s employ or otherwise terminate such officer’s employment
with the Company.

 

3.10      Intellectual
Property Rights. The Company and each Subsidiary owns or possesses adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and other intellectual property rights (collectively, “IP Rights”) necessary to conduct
their respective businesses as now conducted. None of the material IP Rights of the Company or any of the Subsidiaries are expected to
expire or terminate within three (3) years from the date of this Agreement. Neither the Company nor any Subsidiary is infringing, misappropriating
or otherwise violating any IP Rights of any other Person. No claim has been asserted, and no Proceeding is pending, against the Company
or any Subsidiary alleging that the Company or any Subsidiary is infringing, misappropriating or otherwise violating the IP Rights of
any other Person, and, to the Company’s knowledge, no such claim or Proceeding is threatened, and the Company is not aware of any
facts or circumstances which might give rise to any such claim or Proceeding. The Company and the Subsidiaries have taken commercially
reasonable security measures to protect the secrecy, confidentiality and value of all of their material IP Rights.

 

    	 	13	 

    	 

    

 

3.11      Environmental
Laws. Except, in each case, as would not be reasonably anticipated to have a Material Adverse Effect, the Company and the Subsidiaries
(a) are in compliance in all material respects with any and all applicable Laws relating to the protection of human health and safety,
the environment or hazardous or toxic substances or wastes, pollutants or contaminants, (b) have received and hold all permits, licenses
or other approvals required of them under all such Laws to conduct their respective businesses and (c) are in compliance in all material
respects with all terms and conditions of any such permit, license or approval.

 

3.12      Title
to Assets. The Company and the Subsidiaries have good and marketable title to all personal property owned by them which is material
to their respective businesses, in each case free and clear of all liens, encumbrances and defects except those set forth on Schedule
3.12. Any real property and facilities held under lease by the Company or any Subsidiary are held 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 and the Subsidiaries.

 

3.13      Insurance.
The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company reasonably believes to be prudent and customary in the businesses in which the Company
and the Subsidiaries are engaged. Neither the Company nor any of the Subsidiaries has been refused any insurance coverage sought or applied
for, and the Company has no reason to believe that it will not be able to renew all existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers.

 

3.14      Regulatory
Permits. The Company and the Subsidiaries have in full force and effect all certificates, approvals, authorizations and permits from
all regulatory authorities and agencies necessary to own, lease or operate their respective properties and assets and conduct their respective
businesses, and neither the Company nor any Subsidiary has received any notice of Proceedings relating to the revocation or modification
of any such certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or permits with respect
to which the failure to hold would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

3.15      No
Materially Adverse Contracts, Etc. Neither the Company nor any of the Subsidiaries is (a) subject to any charter, corporate or other
legal restriction, or any judgment, decree or order which in the judgment of the Company has or is expected in the future to have a Material
Adverse Effect or (b) a party to any contract or agreement which in the judgment of the Company has or would reasonably be anticipated
to have a Material Adverse Effect.

 

    	 	14	 

    	 

    

 

3.16      Taxes.
The Company and the Subsidiaries each has correctly prepared and duly and timely made or filed, or caused to be made or filed, all United
States federal, and applicable state, local and non-U.S. Tax returns, reports and declarations required by any jurisdiction to which
it is subject and has paid all Taxes and other governmental assessments and charges that are material in amount, required to be paid
by it, regardless of whether such amounts are shown or determined to be due on such returns, reports and declarations, except those being
contested in good faith by appropriate proceedings and for which it has set aside on its books provision reasonably adequate for the
payment of all Taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid
Taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and, to the knowledge of the Company, there
is no basis for any such claim. Each of the Company and the Subsidiaries has collected, withheld and remitted all Taxes due and payable
to the property taxing or other governmental authority. There are no audits, assessments, reassessments, suits, proceedings, investigations
or claims pending against the Company or any of the Subsidiaries in respect of Taxes paid or payable, and there are no matters under
discussion with any taxing or governmental authority of any jurisdiction involving the Company or any Subsidiary with, or the subject
of any agreement with, any taxing or governmental authority relating to claims for additional Taxes. There are no agreements, waivers
or other arrangements providing for an extension of time with respect to the assessment or reassessment of any Tax owing by the Company
or any subsidiary, the filing of any tax returns by the Company or any Subsidiary or the payment of any Tax by the Company or any Subsidiary.

 

3.17      Solvency.
After giving effect to the receipt by the Company of the proceeds from the transactions contemplated by this Agreement (a) the Company’s
fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing
debts and other liabilities (including known contingent liabilities) as they mature; and (b) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated
uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company
does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash
to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that
it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction.

 

3.18      Investment
Company. The Company is not, and is not an Affiliate of, an “Investment Company” within the meaning of the Investment
Company Act of 1940, as amended.

 

3.19      Certain
Transactions. Other than employment or consultant agreements or as disclosed in the Public Record, there are no contracts, transactions,
arrangements or understandings between the Company or any of its Subsidiaries, on the one hand, and any director, officer or employee
thereof on the other hand.

 

3.20      No
General Solicitation. Neither the Company, nor any of its Affiliates, nor any person acting on its behalf, has engaged in any form
of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Note
or the Warrant pursuant to this Agreement.

 

    	 	15	 

    	 

    

 

3.21      Acknowledgment
Regarding the Investor’s Purchase of the Note and the Warrants. The Company’s Board of Directors has approved the execution
of the Transaction Documents and the issuance and sale of the Note and the Warrants, based on its own independent evaluation and determination
that the terms of the Transaction Documents are reasonable and fair to the Company and in the best interests of the Company and its stockholders.
The Company and each of its Subsidiaries are entering into this Agreement and the Security Documents to which they are party, and the
Company is issuing and selling the Note and the Warrants, voluntarily and without economic duress. The Company has had the opportunity
to consider whether or not to retain independent legal counsel of its own choosing to review the Transaction Documents and advise the
Company with respect thereto but has determined not to retain any such independent legal counsel. The Company acknowledges and agrees
that the Investor is acting solely in the capacity of an arm’s length purchaser with respect to the Note and the Warrants and the
transactions contemplated hereby and that neither the Investor nor any person affiliated with the Investor is acting as a financial advisor
to, or a fiduciary of, the Company (or in any similar capacity) with respect to execution of the Transaction Documents or the issuance
of the Note and the Warrant or any other transaction contemplated hereby.

 

3.22      No
Brokers’, Finders’ or Other Advisory Fees or Commissions. No brokers, finders or other similar advisory fees or commissions
will be payable by the Company or any Subsidiary or by any of their respective agents with respect to the issuance of the Note or any
of the other transactions contemplated by this Agreement.

 

3.23      OFAC.
None of the Company nor any of the Subsidiaries nor, to the best knowledge of the Company, any director, officer, agent, employee, affiliate
or person acting on behalf of the Company and/or any Subsidiary has been or is currently subject to any United States sanctions administered
by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”); and the Company will
not directly or indirectly use any proceeds received from the Investor, or lend, contribute or otherwise make available such proceeds
to its Subsidiaries or to any affiliated entity, joint venture partner or other person or entity, to finance any investments in, or make
any payments to, any country or person currently subject to any of the sanctions of the United States administered by OFAC.

 

3.24      No
Foreign Corrupt Practices. None of the Company or any of the Subsidiaries has, directly or indirectly: (a) made or authorized any
contribution, payment or gift of funds or property to any official, employee or agent of any governmental authority of any jurisdiction
except as otherwise permitted under applicable Law; or (b) made any contribution to any candidate for public office, in either case, where
either the payment or the purpose of such contribution, payment or gift was, is, or would be prohibited under the Foreign Corrupt Practices
Act or the rules and regulations promulgated thereunder or under any other legislation of any relevant jurisdiction covering a similar
subject matter applicable to the Company or its Subsidiaries and their respective operations and the Company has instituted and maintained
policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance with such legislation.

 

    	 	16	 

    	 

    

 

3.25      Anti-Money
Laundering. The operations of each of the Company and the Subsidiaries are and have been conducted at all times in compliance with
all applicable anti-money laundering laws, regulations, rules and guidelines in its jurisdiction of incorporation and in each other jurisdiction
in which such entity, as the case may be, conducts business (collectively, the “Money Laundering Laws”) and no action,
suit or proceeding by or before any court or governmental authority involving the Company or its Subsidiaries with respect to any of the
Money Laundering Laws is, to the best knowledge of the Company, pending, threatened or contemplated.

 

3.26      Disclosure.
The Company confirms that neither it, nor to its knowledge, any other Person acting on its behalf has provided the Investor or its agents
or counsel with any information that the Company believes constitutes material, non-public information. The Company understands and confirms
that the Investor will rely on the foregoing representations and covenants in effecting transactions in securities of the Company. All
disclosures provided to the Investor regarding the Company, its business and the transactions contemplated hereby, furnished by or on
behalf of the Company (including the Company’s representations and warranties set forth in this Agreement) are true and correct
in all material respects 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.

 

4.       REPRESENTATIONS
AND WARRANTIES OF THE INVESTOR. The Investor represents and warrants to the Company as follows:

 

4.1       Organization
and Qualification. The Investor, if an entity, is a validly existing corporation, limited partnership or limited liability company
and has all requisite corporate, partnership or limited liability company power and authority to invest in the Note and Warrants pursuant
to this Agreement.

 

4.2       Authorization;
Enforcement; Compliance with Other Instruments. The Investor has the requisite power and authority to enter into and to perform its
obligations under the Transaction Documents to which it is a party. The execution and delivery by the Investor of the Transaction Documents
to which it is a party have been duly and validly authorized by the Investor’s governing body and no further consent or authorization
is required. The Transaction Documents to which it is a party have been duly and validly executed and delivered by the Investor and constitute
valid and binding obligations of the Investor, enforceable against the Investor in accordance with their terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.

 

4.3       No
Conflicts. The execution, delivery and performance of the Transaction Documents to which it is a party by the Investor and the purchase
of the Note and the Warrants by the Investor will not (a) conflict with or result in a violation of the Investor’s organizational
documents, (b) conflict with, or constitute a material default (or an event which, with notice or lapse of time or both, would become
a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement,
contract, indenture mortgage, indebtedness or instrument to which the Investor is a party, or (c) violate any Law applicable to the Investor
or by which any of the Investor’s properties or assets are bound or affected. No approval or authorization will be required from
any governmental authority or agency, regulatory or self-regulatory agency or other third party in connection with the purchase of the
Note and the Warrant and the other transactions contemplated by this Agreement.

 

    	 	17	 

    	 

    

 

4.4       Investment
Intent; Accredited Investor. The Investor is purchasing the Note and the Warrants for its own account, for investment purposes, and
not with a view towards distribution. The Investor is an “accredited investor” as such term is defined in Rule 501(a) of
Regulation D of the 1933 Act. The Investor has, by reason of its business and financial experience, such knowledge, sophistication and
experience in financial and business matters and in making investment decisions of this type that it is capable of (a) evaluating the
merits and risks of an investment in the Note, the Warrants and the Warrant Shares and making an informed investment decision, (b) protecting
its own interests and (c) bearing the economic risk of such investment for an indefinite period of time.

 

4.5       Opportunity
to Discuss. The Investor has received all materials relating to the business, finance and operations of the Company and the Subsidiaries
as it has requested and has had an opportunity to discuss the business, management and financial affairs of the Company and the Subsidiaries
with the Company’s management. In making its investment decision, the Investor has relied solely on its own due diligence performed
on the Company by its own representatives.

 

4.6       No
Governmental Review. The Investor understands that no Government Entity has passed on or made any recommendation or endorsement of
the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the
merits of the offering of the Securities.

 

4.7       Title
in and to the Bridge Notes. If, and to the extent that, any Investor is surrendering for cancellation one or more BriedgeNotes, then
such Investor hereby warratns and represents to the Company that such Investor owns and holds, beneficially and of record, the entire
right, title, and interest in and to the Bridge Note free and clear of all rights and liens (other than pledges or security interests
arising by operation of applicable securities laws). The Investor has full power and authority to transfer and dispose of the Bridge
Note to the Company free and clear of any right or lien. Other than the transactions contemplated by this Agreement, there is no outstanding,
plan, pending proposal, or other right of any person or entity to acquire all or any part of the Bridge Notes and corresponding deduction
of the face amount of the Note.

 

4.8      No
Other Representations. Except for the representations and warranties set forth in this Agreement and in other Transaction Documents,
the Investor makes no other representations or warranties to the Company.

 

5.       OTHER
AGREEMENTS OF THE PARTIES.

 

5.1       Legends,
etc.

 

(a)       Securities
may only be disposed of pursuant to an effective Registration Statement, to the Company or pursuant to an available exemption from or
in a transaction not subject to the registration requirements of the 1933 Act, and in compliance with any applicable state securities
laws.

 

    	 	18	 

    	 

    

 

(b)       Certificates
evidencing the Securities will contain the following legend, so long as is required by this Section 5.2(b) or Section 5.2(c):

 

NEITHER THESE SECURITIES
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED. THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. [THESE SECURITIES
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES] [THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT SECURED BY SUCH SECURITIES.

 

The Company acknowledges and
agrees that the Investor may from time to time pledge, and/or grant a security interest in some or all of the Securities, in accordance
with applicable securities laws, pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required
under the terms of such agreement or account, the Investor may transfer pledged or secured Securities to the pledgees or secured parties.
Such a pledge or transfer would not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee,
secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be required in connection with a
subsequent transfer following default by the Investor transferee of the pledge. At the Company’s expense, the Company will execute
and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge
or transfer of the Securities including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the 1933
Act or other applicable provision of the 1933 Act to appropriately amend the list of selling stockholders thereunder.

 

(c)       Certificates
evidencing the Warrant Shares shall not contain any legend: (i) while a Registration Statement covering the Warrant Shares is effective
under the 1933 Act, (ii) following any sale of such Warrant Shares pursuant to Rule 144, (iii) while such Investor Shares are eligible
for sale without restriction under Rule 144 and the Investor has taken all requisite steps to have such legend removed, or (iv) if such
legend is not required under applicable requirements of the 1933 Act (including judicial interpretations and pronouncements issued by
the staff of the SEC). The Company shall cause its counsel to issue any legal opinion or instruction required by the Company’s transfer
agent to comply with the requirements set forth in this Section. At such time as a legend is no longer required for the Warrant Shares
under this Section5.1(c), the Company will, no later than five (5) Business Days following the delivery by the Investor to the
Company or the Company’s transfer agent of a certificate representing Warrant Shares containing a restrictive legend (such fifth
Business Day, the “Legend Removal Date”), deliver or cause to be delivered to the Investor a certificate representing
such Warrant Shares that is free from all restrictive and other legends. In addition to any other remedies available to the Investor,
the Company shall pay to the Investor, in cash, as partial liquidated damages and not as a penalty, for each $1,000.00 of Warrant Shares
(based on the VWAP of the Common Stock on the date such Warrant Shares are submitted to the Company or the Company’s transfer agent)
delivered for removal of the restrictive or other legend, $5.00 per Trading Day for each Trading Day after the Legend Removal Date until
such Warrant Shares are delivered without a legend.  The Company may not make any notation on its records or give instructions to
any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section except as it may reasonably determine
are necessary or appropriate to comply or to ensure compliance with those applicable laws that are enacted or modified after the Closing.

 

    	 	19	 

    	 

    

 

5.2       Furnishing
of Information. As long as the Investor owns the Securities, the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the 1934 Act. As long as the Investor owns the Securities, if the Company is not required to file reports pursuant to such laws, it will
prepare and furnish to the Investor and make publicly available in accordance with Rule 144(c) such information as is required for the
Investor to sell the Warrant Shares under Rule 144. The Company further covenants that it will take such further action as any holder
of Securities may reasonably request, all to the extent required from time to time to enable such Person to sell such Warrant Shares without
registration under the 1933 Act within the limitation of the exemptions provided by Rule 144 or other applicable exemptions.

 

5.3       Integration.
The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with
the offer or sale of the Securities in a manner that would require the registration under the 1933 Act of the sale of the Securities to
the Investor, or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading
Market that would require, under the rules of the Trading Market, the Stockholder Approval.

 

5.4       Notification
of Certain Events. The Company shall give prompt written notice to the Investor of (a) the occurrence or non-occurrence of any
Event, the occurrence or non-occurrence of which would render any representation or warranty of the Company contained in this Agreement
or any other Transaction Document, if made on or immediately following the date of such Event, untrue or inaccurate in any material respect,
(b) the occurrence of any Event that, individually or in combination with any other Events, has had or could reasonably be expected
to have a Material Adverse Effect, (c) any failure of the Company to comply with or satisfy any covenant or agreement to be complied
with or satisfied by it hereunder or any Event that would otherwise result in the nonfulfillment of any of the conditions to the Investor’s
obligations hereunder, (d) any notice or other communication from any Person alleging that the consent of such Person is or may be
required in connection with the consummation of the transactions contemplated by this Agreement or any other Transaction Document, or
(e) any Proceeding pending or, to the Company’s knowledge, threatened against a party relating to the transactions contemplated
by this Agreement or any other Transaction Document.

 

    	 	20	 

    	 

    

 

5.5       Available
Stock. The Company shall at all times keep authorized and reserved and available for issuance, free of preemptive rights, such number
of shares of Common Stock as are issuable upon exercise of the Warrants at any time, including any additional shares of Common Stock
that may be issued due to any adjustments, as more fully detailed in the Warrants. If the Company determines at any time that it does
not have a sufficient number of authorized Common Stock to reserve and keep available for issuance as described in this Section 5.5,
the Company shall use all commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking Stockholder
Approval for the authorization of such additional shares.

 

5.6       Use
of Proceeds. The Company will use the proceeds from the sale of the Note and the Warrants as provided for herein for the repayment
of the Bridge Financing, and, thereafter, for the purchase and retention of bitcoin miners, certain acquisitions which have been disclosed
to the Investor and general working capital purposes.

 

5.7       Repayment
of Note. The Company shall make weekly payments to the Investors on a pari passu basis equal to the gross proceeds generated
from the Sale or Issuance of Bitcoin, as provided in Section 5.8. Other than as set forth on Schedule 5.7, neither the Company
nor any Subsidiary has any outstanding Indebtedness (all such Indebtedness set forth on Schedule 5.7 is hereinafter referred to as the
“Existing Debt” and is collectively referred to herein as the “Permitted Indebtedness”). The Company
shall not make any voluntary cash prepayments on any Indebtedness at any time while any amounts are owing under the Note other than with
respect to the Existing Debt or cash payments the Company is required to make pursuant to the express terms thereof existing on the date
hereof. Neither the Company nor any Subsidiary shall incur any Indebtedness without the express written consent of the Investor. If the
Company or any Subsidiary issues any Indebtedness other than the Permitted Indebtedness, after obtaining the written consent of the Investor
pursuant to Section 1.9 of the Note, including any subordinated Indebtedness or convertible Indebtedness, other than Exempted Securities,
then unless otherwise waived in writing by and at the discretion of the Investor, the Company will immediately utilize no less than sixty-five
percent (65%) of the proceeds of such issuance (or cause such Subsidiary to immediately utilize the proceeds of such issuance) to repay
the Note. If the Company issues any Equity Interests, other than Exempted Securities, or mines or sells any Bitcoin, unless otherwise
waived in writing by and at the discretion of the Investor, the Company will direct sixty-five percent (65%) of the proceeds from such
issuance or sale of Bitcoin to repay the Note on a pari passu basis. Additionally, in the event that an Investor exercises some
or all of its Warrants for cash (“Exercise Proceeds”), then the Company shall direct all such Exercise Proceeds to
the repayment of the Note. Any such repayments of the Note as provided in this Section 5.7 shall be made to the Investors on a pro
rata basis in proportion to their investment and shall be without premium or penalty to the Company. Moreover, each Investor may,
in its sole discretion and acting solely on behalf of itself, require that the Company apply some or all amounts owing under the Note
to the payment of any cash exercises of the Warrants by the Investor.

 

5.8       Sale
or Issuance of Bitcoin. The Company shall be obligated to sell or issue no less than sixty-five percent (65%) of the Bitcoin it mines.
The gross proceeds from the Sale or Issuance of Bitcoin shall be used by the Company to repay the Notes.

 

    	 	21	 

    	 

    

 

5.9       Prohibited
Transactions. The Company hereby covenants and agrees not to enter into any Prohibited Transactions without obtaining prior written
consent from the majority in interest of the Investors, until such time as the Note has been repaid in full.

 

5.10       Securities
Laws Disclosure; Publicity. The Company shall, by 9:00 a.m. (New York City time) on the Trading Day immediately following the date
hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and shall, within four (4) Business
Days following the date hereof, file a Current Report on Form 8-K disclosing the material terms of the transactions contemplated hereby
and file a copy of this Agreement on EDGAR. The Company shall not issue any press release nor otherwise make any such public statement
regarding the Investor or the Transaction Documents without the prior written consent of the Investor, except if such disclosure is required
by law, in which case the Company shall (a) ensure that such disclosure is restricted and limited in content and scope to the maximum
extent permitted by Law to meet the relevant disclosure requirement and (b) provide a copy of the proposed disclosure to the Investor
for review prior to release and the Company shall incorporate the Investor’s reasonable comments. Notwithstanding anything herein
to the contrary, to comply with United States Treasury Regulations Section 1.6011-4(b)(3)(i), each of the Company and the Investor, and
each employee, representative or other agent of the Company or the Investor, may disclose to any and all persons, without limitation of
any kind, the U.S. federal and state income tax treatment, and the U.S. federal and state income tax structure, of the transactions contemplated
hereby and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax treatment
and tax structure insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to such recipient.

 

5.11       Indemnification
of the Investor.

 

(a)       The
Company will indemnify and hold the Investor, its Affiliates and their respective directors, officers, managers, shareholders, members,
partners, employees and agents and permitted successors and assigns (each, an “Investor Party”) harmless from any and
all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements,
court costs and reasonable attorneys’ fees and costs of investigation and defense (collectively, “Losses”) that
any such Investor Party may suffer or incur as a result of or relating to:

 

(i)         any
breach or inaccuracy of any representation, warranty, covenant or agreement made by the Company in any Transaction Document;

 

(ii)       any
misrepresentation made by the Company in any Transaction Document or in any Public Record document;

 

(iii)      any
omission to state any material fact necessary in order to make the statements made in any Public Record, in light of the circumstances
under which they were made, not misleading;

 

    	 	22	 

    	 

    

 

(iv)       any
proceeding before or by any court, public board, government agency, self-regulatory organization or body based upon, or resulting from
the execution, delivery, performance or enforcement of any of the Transaction Documents or the consummation of the transactions contemplated
thereby, and whether or not the Investor is party thereto by claim, counterclaim, crossclaim, as a defendant or otherwise, or if such
Proceeding is based upon, or results from, any of the items set forth in clauses (i) through (iii) above.

 

(b)       In
addition to the indemnity contained herein, the Company will reimburse each Investor Party 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.

 

(c)       The
provisions of this Section 5.11 shall survive the termination or expiration of this Agreement.

 

5.12       Non-Public
Information. The Company covenants and agrees that neither it nor any other Person acting on its behalf will provide the Investor
or its agents or counsel with any information that the Company believes constitutes material, non-public information. To the extent the
Company does not comply with this covenant and provides the Investor with material, non-public information, the Company shall publicly
disclose such information within seventy two (72) hours of providing the information to the Investor; provided, however, in the event
that such material non-public information is provided to Investor pursuant to Section 10, the Company shall publicly disclose such
information within twenty (20) Business Days of providing the information to the Investor. The Company understands and confirms that the
Investor shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

5.13       Stockholder
Approval. The Company shall, if required to obtain Exchange Approval, hold a special meeting of stockholders on or before the 90th
calendar day following the date hereof for the purpose of obtaining the shareholder approval; provided, however, such ninety (90) calendar
days shall be increased to one hundred twenty (120) calendar days in the event the Company receives comments to its proxy statement from
the SEC, with the recommendation of the Board of Directors that such proposal be approved, and the Company shall solicit proxies from
its shareholders in connection therewith in the same manner as all other management proposals in such proxy statement and all management-appointed
proxyholders shall vote their proxies in favor of such proposal. If the Company does not obtain Stockholder Approval at the first meeting,
the Company shall call a meeting every four months thereafter to seek Stockholder Approval until the date that Stockholder Approval is
obtained.

 

5.14       Listing
of Securities. The Company shall: (a) in the time and manner required by each Trading Market on which the shares of Common Stock are
listed, prepare and file with the Principal Market a Supplemental Listing Application covering the Warrant Shares in order to obtain Exchange
Approval, (b) take all steps necessary to cause such Common Stock to be approved for listing on the Principal Market on which the
shares of Common Stock are listed as soon as possible thereafter, (c) provide to the Investor confirmation of such listing, and (d) maintain
the listing of such shares on the Principal Market.

 

5.15       
Antitrust Notification. If the Investor determines, in its sole judgment and upon the advice of counsel, that the issuance of the
Note, the Warrants or the Investor Shares pursuant to the terms hereof would be subject to the provisions of the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the “HSR Act”), the Company shall file as soon as practicable after the date
on which the Company receives notice from the Investor of the applicability of the HSR Act and a request to so file with the United States
Federal Trade Commission and the United States Department of Justice the notification and report form required to be filed by it pursuant
to the HSR Act in connection with such issuance.

 

    	 	23	 

    	 

    

 

5.16       Intentionally
Omitted.

 

5.17       Change
of Prime Broker, Custodian. Each Investor has informed the Company of the names of its prime broker and its share custodian. Each
Investor shall notify the Company of any change in its prime broker or share custodian within three (3) Business Days of such change having
taken effect.

 

5.18       Share
Transfer Agent. The transfer agent and represents and warrants that the transfer agent used bythe Company is Computershare Trust Company,
N.A., which participates in the Depository Trust Company Fast Automated Securities Transfer program. The Company shall not change its
share transfer agent without the prior written consent of the majority in interest of the Investors.

 

5.19       Reserved.

 

5.20       Set-Off.

 

(a)       The
Investor may set off any of its obligations to the Company (whether or not due for payment), against any of the Company’s obligations
to the Investor (whether or not due for payment) under this Agreement and/or any other Transaction Document.

 

(b)       The
Investor may do anything necessary to effect any set-off undertaken in accordance with this Section 5.19 (including varying the
date for payment of any amount payable by the Investor to the Company).

 

6.       CLOSING
CONDITIONS

 

6.1       Conditions
Precedent to the Obligations of the Investor. The obligation of the Investor to fund the Note and acquire the Warrants at the Closing
is subject to the satisfaction or waiver by the Investor, at or before such Closing, of each of the following conditions:

 

(a)       Required
Documentation. The Company must have delivered to the Investor copies of all resolutions duly adopted by the Board of Directors of
the Company, or any such other documentation of the Company approving the Agreement, the Transaction Documents and any of the transactions
contemplated hereby or thereby;

 

(b)       Consents
and Permits. The Company must have obtained and delivered to the Investor copies of all necessary permits, approvals, and registrations
necessary to effect this Agreement, the Transaction Documents and any of the transactions contemplated hereby or thereby, including pursuant
to Section 3.14 of this Agreement;

 

    	 	24	 

    	 

    

 

(c)       Trading
Market Approval. The Company must have delivered to the Investor copies of the Supplemental Listing Application through which Exchange
Approval will be sought for the issuance of the Warrant Shares upon exercise of the Warrants;

 

(d)       No
Event(s) of Default. No Event of Default shall have occurred and no Event of Default would result from the execution of this Agreement
or any of the Transaction Documents or the transactions contemplated hereby or thereby;

 

(e)       Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material respects
as of the date when made and as of such Closing as though made on and as of such date;

 

(f)       Performance.
The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by it at or prior to such Closing;

 

(g)       No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents;

 

(h)       No
Suspensions of Trading in Common Stock; Listing. Trading in the Common Stock shall not have been suspended by the SEC or Principal
Market (except for any suspensions of trading of not more than one day on which the Principal Market is open solely to permit dissemination
of material information regarding the Company) at any time since the date of execution of this Agreement, and the Common Stock shall have
been at all times since such date listed for trading on a Trading Market;

 

(i)       SEC
Reporting. The has, during the preceding twelve (12) months, filed with the SEC all reports and other materials required to be filed
by Section 13 or 15(d) of the 1934 Act, as applicable;

 

(j)       Limitation
on Beneficial Ownership. To the Company’s knowledge, the issuance of the Warrants, in reliance of the “blocker”
provision therein, shall not cause the Investor Group to become, directly or indirectly, a “beneficial owner” (within the
meaning of Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder) of a number of Equity Interests of a class
that is registered under the 1934 Act which exceeds the Maximum Percentage of the Equity Interests of such class that are outstanding
at such time;

 

(k)       Perfection
of Security Interest; Evidence of Lien Release. The Investor shall have, to the extent possible, perfected certain security interest
granted in the assets and collateral of the Company and its Subsidiaries described in the Security Documents. To the extent that the Investor
has not perfected the security interest granted in the assets and collateral of the Company and its Subsidiaries as described in the Security
Agreement, then, at the expense of the Company, the Company and its Subsidiaries shall immediately take all steps necessary and required
to perfect the Investors’ security interest in the assets and collateral of the Company and its Subsidiaries;

 

    	 	25	 

    	 

    

 

(l)       Post
Closing Matters Agreement. The Company must have exected and delivered to the Investor the Post Closing Matters Agreement, substantially
in the form set out in Exhibit E; and

 

(m)       Funds
Flow Request. The Company shall have delivered to the Investor a flow of funds request, substantially in the form set out in Exhibit
F.

 

6.2       Conditions
Precedent to the Obligations of the Company. The obligation of the Company to issue the Note and the Warrants at the Closing is subject
to the satisfaction or waiver by the Company, at or before such Closing, of each of the following conditions:

 

(a)       Representations
and Warranties. The representations and warranties of the Investor contained herein shall be true and correct in all material respects
as of the date when made and as of such Closing Date as though made on and as of such date;

 

(b)       Performance.
The Investor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the Investor at or prior to the Closing; and

 

(c)       No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents.

 

7.       EVENTS
OF DEFAULT

 

7.1       Events
of Default. The occurrence of any of the following events shall be an “Event of Default” under this Agreement:

 

(a)       an
Event of Default under the Note;

 

(b)       any
of the representations or warranties made by the Company, any Subsidiary or any of their agents, officers, directors, employees or representatives
in any Transaction Document or public filing being inaccurate, false or misleading in any material respect, as of the date as of which
it is made or deemed to be made, or any certificate or financial or other written statements furnished by or on behalf of the Company
or any Subsidiary to the Investor or any of its representatives, is inaccurate, false or misleading, in any material respect, as of the
date as of which it is made or deemed to be made, or on any Closing Date;

 

(c)       a
failure by the Company to comply with any of its covenants or agreements set forth in this Agreement, including but not limited to those
set forth in Section 5.7, Section 5.13, Section 6(k), and Section 10; provided, however, that it shall not
be an Event of Default as provided hereunder if the Company fails to comply with the Registration Rights provisions contained in Sections
9.1(a) or 9.1(c) of this Agreement; further, provided, however, that the nothing in this Section 7 shall prohibit, restrict or otherwise
limit the Investor’s rights, and the Company’s obligations, with regard to the Effectiveness Penalty pursuant to Section 9.1(c);
or

 

    	 	26	 

    	 

    

 

(d)       any
default or breach, in any material respect, under the Post Closing Matters Agreement.

 

7.2       Investor
Right to Investigate an Event of Default. If in the Investor’s reasonable opinion, an Event of Default has occurred, or is or
may be continuing:

 

(a)       the
Investor may notify the Company that it wishes to investigate such purported Event of Default;

 

(b)       the
Company shall cooperate with the Investor in such investigation;

 

(c)       the
Company shall comply with all reasonable requests made by the Investor to the Company in connection with any investigation by the Investor
and shall (i) provide all information requested by the Investor in relation to the Event of Default to the Investor; provided that the
Investor agrees that any materially price sensitive information and/or non-public information will be subject to confidentiality, and
(ii) provide all such requested information within five (5) Business Days of such request; and

 

(d)       the
Company shall pay all reasonable costs incurred by the Investor in connection with any such investigation.

 

7.3       Remedies
Upon an Event of Default

 

(a)       If
an Event of Default occurs pursuant to Section 7.1(a), the Investor shall have such remedies as are set forth in the Note.

 

(b)       If
an Event of Default occurs pursuant to Section 7.1(b) or Section 7.1(c) and is not remedied within (i) three (3) Business
Days for an Event of Default occurring by the Company’s or any Subsidiary’s failure to comply with Section 7.1(c),
or (ii) ten (10) Business Days for an Event of Default occurring pursuant to Section 7.1(b), the Investor may declare, by notice
to the Company or the applicable Subsidiary, as applicable, effective immediately, all outstanding obligations by the Company or the applicable
Subsidiary, as applicable, under the Transaction Documents to be immediately due and payable in immediately available funds and the Investor
shall have no obligation to consummate any Closing under this Agreement.

 

(c)       If
any Event of Default occurs and is not remedied within (i) three (3) Business Days for an Event of Default occurring by the Company’s
failure to comply with Section 7.1(c), or (ii) ten (10) Business Days for an Event of Default occurring pursuant to Section
7.1(b), the Investor may, by written notice to the Company, terminate this Agreement effective as of the date set forth in the Investor’s
notice.

 

    	 	27	 

    	 

    

 

8.       TERMINATION

 

8.1       Events
of Termination. This Agreement:

 

(a)       may
be terminated:

 

(i)        by
the majority in interest of the Investors on the occurrence or existence of a Securities Termination Event or a Change of Control pursuant
to subsection (c) or (d) contained in that definition;

 

(ii)       by
the mutual written consent of the Company and the majority in interest of the Investors, at any time;

 

(iii)      by
either Party, by written notice to the other Parties, effective immediately, if the Closing has not occurred within fifteen (15) Business
Days of the date of this Agreement or such later date as the Company and the majority in interest of the Investors agree in writing, provided
that the right to terminate this Agreement under this Section 8.1(a)(iii) is not available to any party that is in material breach
of or material default under this Agreement or whose failure to fulfill any obligation under this Agreement has been the principal cause
of, or has resulted in the failure of the Closing to occur; or

 

(iv)       by
the majority in interest of the Investors, in accordance with Section 7.3(c).

 

8.2       Automatic
Termination. This Agreement will automatically terminate, without further action by the parties, at the time after the Closing that
the Principal Amount outstanding under the Note and any accrued but unpaid interest is reduced to zero (0), whether as a result of prepayment
or repayment by the Company in accordance with the terms of this Agreement and the Note.

 

8.3       Effect
of Termination.

 

(a)       Subject
to Section 8.3(b), each Party’s right of termination under Section 8.1 is in addition to any other rights it may have
under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies.

 

(b)       If
the Investor terminates this Agreement under Section 8.1(a)(i):

 

(i)       the
Investor may declare, by notice to the Company, all outstanding obligations by the Company under the Transaction Documents to be due and
payable (including, without limitation, the immediate repayment of any Principal Amount outstanding under the Note plus accrued but unpaid
interest) without presentment, demand, protest or any other notice of any kind, all of which are expressly waived by the Company, anything
to the contrary contained in this Agreement or in any other Transaction Document notwithstanding; and

 

(ii)       the
Company must within five (5) Business Days of such notice being received, pay to the Investor in immediately available funds the outstanding
Principal Amount for the Note plus all accrued interest thereon (if any), unless the Investor terminates this Agreement as a result of
an Event of Default.

 

    	 	28	 

    	 

    

 

(c)       Nothing
in this Agreement will be deemed to release any party from any liability for any breach by such party of the terms and provisions of this
Agreement or to impair the right of any party to compel specific performance by any other Party of its obligations under this Agreement.

 

9.       REGISTRATION
RIGHTS

 

9.1       Registration.

 

(a)       Registration
Statement. Promptly, but in any event no later than ten (10) days following the Closing Date, the Company shall prepare and file with
the SEC a Registration Statement covering the resale of all of the Warrant Shares and any and all other shares of Common Stock owned by
the Investor, including any and all Common Stock that may issuable upon exercise of warrants. The foregoing Registration Statement shall
be filed on Form S-3 or any successor forms thereto. The Registration Statement (and each amendment or supplement thereto) shall be provided
to the Investor and its counsel at least five (5) Business Days prior to its filing or other submission and the Company shall incorporate
all reasonable comments, in the Company’s judgment, provided by the Investor or its counsel.

 

(b)       Expenses.
Except as otherwise expressly provided herein, the Company will pay all fees and expenses incident to the performance of or compliance
with this Section 9, including all fees and expenses associated with effecting the registration of the Warrant Shares, including all filing
and printing fees, the Company’s counsel and accounting fees and expenses, costs associated with clearing the Warrant Shares for
sale under applicable state securities laws, listing fees, fees and expenses of one counsel to the Investor and the Investor’s reasonable
expenses in connection with the registration, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers
or similar securities industry professionals with respect to the Warrant Shares being sold.

 

(c)       Effectiveness;
Penalty. The Company shall use its commercially reasonable efforts to have the Registration Statement declared effective as soon as
practicable after filing thereof but in no event later than forty-five (45) days following the Closing Date (the “Effective Date”).
The Company shall notify the Investor by e-mail as promptly as practicable, and in any event, within twenty-four (24) hours, after the
Registration Statement is declared effective and shall simultaneously provide the Investor with copies of any related Prospectus to be
used in connection with the sale or other disposition of the securities covered thereby. In the event that the Registration Statement
is not declared effective by the Effective Date, then the Company shall pay to the Investors, for each month that the Registration Statement
is not declared effective after the Effective Date, a cash amount equal to one and one-half percent (1.5%) of the product obtained by
multiplying the Investor Warrant Shares by the then applicable exercise price provided for in the Warrants and other Company warrants
owned by the Investor (the “Effectiveness Penalty”).

 

    	 	29	 

    	 

    

 

(d)       Piggyback
Registration Rights. If the Company at any time determines to file a registration statement under the 1933 Act to register the offer
and sale, by the Company, of Common Stock (other than (x) on Form S-4 or Form S-8 under the 1933 Act or any successor forms thereto, (y)
an at-the-market offering, or (z) a registration of securities solely relating to an offering and sale to employees or directors of the
Company pursuant to any employee stock plan or other employee benefit plan arrangement), the Company shall, as soon as reasonably practicable,
give written notice to each Investor of its intention to so register the offer and sale of Common Stock and, upon the written request,
given within five (5) Business Days after delivery of any such notice by the Company, of an Investor to include in such registration its
Warrant Shares (which request must (a) be approved by the majority in interest of the Investors and (b) specify the number of Warrant
Shares proposed to be included in such registration), the Company shall cause all such Warrant Shares to be included in such registration
statement on the same terms and conditions as the Common Stock otherwise being sold pursuant to such registered offering.

 

9.2       Company
Obligations. The Company will use its best efforts to effect the registration of the Warrant Shares in accordance with the terms hereof,
and pursuant thereto the Company will, as expeditiously as possible:

 

(a)       use
its commercially reasonable efforts to cause the Registration Statement to become effective and to remain continuously effective for a
period that will terminate upon the first date on which all Warrant Shares are either covered by the Registration Statement or may be
sold without restriction, including volume or manner-of-sale restrictions, pursuant to Rule 144 or have been sold by the Investor (the
“Effectiveness Period”) and advise the Investor in writing when the Effectiveness Period has expired;

 

(b)       prepare
and file with the SEC such amendments and post-effective amendments and supplements to the Registration Statement and the Prospectus as
may be necessary to keep the Registration Statement effective for the Effectiveness Period and to comply with the provisions of the 1933
Act and the 1934 Act with respect to the distribution of all of the Warrant Shares covered thereby;

 

(c)       provide
copies to and permit counsel designated by the Investor to review all amendments and supplements to the Registration Statement no fewer
than three (3) Business Days prior to its filing with the SEC and not file any document to which such counsel reasonably objects;

 

(d)       furnish
to the Investor and its legal counsel, without charge, (i) promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company (but not later than two (2) Business Days after the filing date, receipt date or sending date, as the
case may be) one copy of the Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment
or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of correspondence
from the SEC or the staff of the SEC, in each case relating to the Registration Statement (other than any portion of any thereof which
contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a Prospectus, including
a preliminary prospectus, and all amendments and supplements thereto and such other documents as the Investor may reasonably request in
order to facilitate the disposition of the Warrant Shares that are covered by the related Registration Statement;

 

    	 	30	 

    	 

    

 

(e)       immediately
notify the Investor of any request by the SEC for the amending or supplementing of the Registration Statement or Prospectus or for additional
information;

 

(f)       use
its commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such
order is issued, obtain the withdrawal of any such order at the earliest possible moment and notify the Company of the issuance of any
such order and the resolution thereof, or its receipt of notice of the initiation or threat of any proceeding for such purpose;

 

(g)       prior
to any public offering of Warrant Shares, use its commercially reasonable efforts to register or qualify or cooperate with the Investor
and its counsel in connection with the registration or qualification of such Warrant Shares for offer and sale under the securities or
blue sky laws of such jurisdictions requested by the Investor and do any and all other commercially reasonable acts or things necessary
or advisable to enable the distribution in such jurisdictions of the Warrant Shares covered by the Registration Statement and the Company
shall promptly notify the Investor of any notification with respect to the suspension of the registration or qualification of any of such
Warrant Shares for sale under the securities or blue sky laws of such jurisdictions or its receipt of notice of the initiation or threat
of any proceeding for such purpose;

 

(h)       immediately
notify the Investor, at any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of any event
as a result of which, the Registration Statement or Prospectus includes an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein not misleading (in the case of the Prospectus, in light
of the circumstances in which they were made), and promptly prepare, file with the SEC and furnish to such holder a supplement to or an
amendment of such Registration Statement or Prospectus as may be necessary so that such Registration Statement or Prospectus shall not
include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading (in the case of such Prospectus, in light of the circumstances in which they were made);

 

(i)        otherwise
use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934
Act;

 

(j)        hold
in confidence and not make any disclosure of information concerning the Investor provided to the Company unless (i) disclosure of such
information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to complete
the Registration Statement or to avoid or correct a misstatement or omission in the Registration Statement, (iii) the release of such
information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any
other agreement, and upon learning that disclosure of such information concerning the Investor is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow the Investor, at the Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information; and

 

    	 	31	 

    	 

    

 

(k)       take
all other reasonable actions necessary to expedite and facilitate disposition by the Investor of all Warrant Shares pursuant to the Registration
Statement.

 

9.3       Indemnification.

 

(a)       Indemnification
by the Company. The Company will indemnify and hold harmless the Investors, from and against any Losses to which they may become subject
under the 1933 Act or otherwise, arising out of, relating to or based upon: (i) any untrue statement or alleged untrue statement of any
material fact contained in any Registration Statement, any preliminary prospectus, final Prospectus or other document, including any blue
sky application (as defined below), or any amendment or supplement thereof or any omission or alleged omission of a material fact required
to be stated therein or, in the case of the Registration Statement, necessary to make the statements therein not misleading or, in the
case of any preliminary prospectus, final Prospectus or other document, necessary to make the statements therein, in light of the circumstances
in which they were made, not misleading; (ii) any blue sky application or other document executed by the Company specifically for that
purpose or based upon written information furnished by the Company filed in any state or other jurisdiction in order to qualify any or
all of the Warrant Shares under the securities laws thereof (any such application, document or information herein called a “Blue
Sky Application”); (iii) any violation or alleged violation by the Company or its agents of the 1933 Act, the 1934 Act or any
similar federal or state law or any rule or regulation promulgated thereunder applicable to the Company or its agents and relating to
any action or inaction required of the Company in connection with the registration or the offer or sale of the Warrant Shares pursuant
to any Registration Statement; or (iv) any failure to register or qualify the Warrant Shares included in any such Registration Statement
in any state where the Company or its agents has affirmatively undertaken or agreed in writing that the Company will undertake such registration
or qualification on the Investor’s behalf and will reimburse the indemnified Investor Parties for any legal or other expenses reasonably
incurred by them in connection with investigating, preparing or defending any such Losses; provided, however, that the Company
will not be liable in any such case if and to the extent, but only to the extent, that any such Losses arise out of or are based upon
an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by the
Investor or any such controlling Person in writing specifically for use in such Registration Statement or Prospectus.

 

(b)       Conduct
of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim, action, suit or proceeding with respect to which it seeks indemnification following such Person’s receipt of,
or such Person otherwise becoming aware of, the commencement of such claim, action, suit or proceeding and (ii) permit such indemnifying
party to assume the defense of such claim, action, suit or proceeding with counsel reasonably satisfactory to the indemnified party; provided,
however, that any Person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate
in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (A) the indemnifying
party has agreed to pay such fees or expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such Person or (C) in the reasonable judgment of any such Person, based upon written advice of its
counsel, a conflict of interest exists between such Person and the indemnifying party with respect to such claims (in which case, if the
Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person); and provided,
further, that the failure or delay of any indemnified party to give notice as provided herein shall not relieve the indemnifying
party of its obligations hereunder, except to the extent that such failure or delay to give notice shall materially adversely affect the
indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not, in connection
with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time for
all such indemnified parties. No indemnifying party will, except with the consent of the indemnified party, consent to entry of any judgment
or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified
party of a release from all liability in respect of such claim or litigation.

 

    	 	32	 

    	 

    

 

(c)       Contribution.
If for any reason the indemnification provided for in the preceding paragraph (a) is unavailable to an indemnified party or insufficient
to hold it harmless, other than as expressly specified therein, the indemnifying party shall contribute to the amount paid or payable
by the indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnified
party and the indemnifying party, as well as any other relevant equitable considerations. No Person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the 1933 Act shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation.
The indemnity and contribution agreements contained in this Section are in addition to any other rights or remedies that any indemnified
party may have under applicable law, by separate agreement or otherwise.

 

10.       GENERAL
PROVISIONS

 

10.1       Fees
and Expenses. At the Closing, the Company shall pay any additional reasonable fees and disbursements of McCarter & English LLP
above the initial retainer (“Esousa Counsel”) in connection with the preparation of the Transaction Documents, it being
understood that Investor Counsel has not rendered any legal advice to the Company in connection with the transactions contemplated hereby
and that the Company has relied for such matters on the advice of its own counsel. All fees to be paid referenced above shall be offset
against the Funding Amount of the Investor and paid directly by the Investor to Investor Counsel. Following the Closing, the Company shall
reimburse the Investor for all reasonable fees and disbursements of Investor Counsel in connection with any additional agreements arising
pursuant to the transactions contemplated in this Agreement, including, but not limited to, intercreditor agreements relating to the Note
and any agreements or documentation required with respect to the Investor’s exercise of any of its rights hereunder. Except as specified
above, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents. The
Company shall pay all stamp and other Taxes and duties levied in connection with the sale of the Note and the Warrant.

 

10.2       Appointment
of Collateral Agent. The Investor agrees to the appointment of Esousa Holdings LLC, an Investor in the Notes, to act as Collateral
Agent and further each Investor authorizes Esousa Holdings LLC to act as Collateral Agent in accordance with the terms and conditions
detailed in the Security Agreement, executed and delivered on the date hereof, by and between the Company and Esousa Holdings LLC. The
Collateral Agent shall receive a fee of $25,000, as more fully detailed in that certain Fee Letter executed and delivered in connection
with this Agreement and the Security Agreement.

 

    	 	33	 

    	 

    

 

10.3       
Consultation with Counsel.  Each Investor has had the opportunity to seek independent counsel and to consult with counsel in order
to review the Transaction Documents and to advise the Company with respect thereto before executing this Agreement. Each Investor is executing
this Agreement without duress or coercion and without reliance on any representations, warranties or commitments other than those representations,
warranties, and commitments set forth in this Agreement.

 

10.4       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email
at the email address specified in this Section prior to 5:00 p.m. (New York time) on a Business Day, (b) the next Business Day after the
date of transmission, if such notice or communication is delivered via email at the email address specified in this Section on a day that
is not a Business Day or later than 5:00 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on such date, (c)
the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt
by the party to whom such notice is required to be given. Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by email or facsimile, or sent by
a nationally recognized overnight courier service addressed to each Investor at the email address, facsimile number, or address of the
Investor appearing on the books of the Company, or if no such email address, facsimile number, or address appears on the books of the
Company, at the principal place of business of such Investor set forth on the Investor’s signature page attached hereto. The
address for such notices and communications shall be as follows:

 

If to the Company:

 

William B. Horne

Chief executive Officer

BitNile Holdings, Inc.

11411 Southern Highlands Parkway, Suite
240

Las Vegas, Nevada 89141

Direct: (949) 444-5464

Email: Will@bitnile.com

 

 

With a copy (which shall not constitute
notice) to:

 

Henry Nisser

President and General Counsel

BitNile Holdings, Inc.

100 Park Avenue, 16th Floor

Suite 1658A

 

    	 	34	 

    	 

    

 

New York, NY 10017

Direct: (646) 650-5044

Email: Henry@bitnile.com

 

10.5       Severability.
If any provision of this Agreement is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity
and enforceability of the remaining provisions of this Agreement will not in any way be affected or impaired thereby.

 

10.6       Governing
Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without reference to
principles of conflict of laws or choice of laws.

 

10.7       Jurisdiction
and Venue. Any action, proceeding or claim arising out of, or relating in any way to this Agreement shall be brought and enforced
in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York. The
Company and the Investor irrevocably submit to the jurisdiction of such courts, which jurisdiction shall be exclusive, and hereby waive
any objection to such exclusive jurisdiction or that such courts represent an inconvenient forum. The prevailing party in any such action
shall be entitled to recover its reasonable and documented attorneys’ fees and out-of-pocket expenses relating to such action or
proceeding.

 

10.8       WAIVER
OF RIGHT TO JURY TRIAL. THE COMPANY AND THE INVESTOR HEREBY IRREVOCABLY WAIVE, 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 OTHER TRANSACTION DOCUMENTS.

 

10.9       Survival.
The representations, warranties, agreements and covenants contained herein shall survive the Closing and the delivery of the Securities.

 

10.10       Entire
Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such
matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

10.11       Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and the Investor.
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

    	 	35	 

    	 

    

 

10.12       Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any
of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as if drafted
jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement or any of the Transaction Documents.

 

10.13       Successors
and Assigns. This Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the Company and the Investor
and their respective successors and assigns. The Company may not assign this Agreement or any rights or obligations hereunder without
the prior written consent of the Investor. The Investor may assign any or all of its rights under this Agreement to any Person to whom
the Investor assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred
Securities, by the provisions hereof that apply to the “Investor” and such transferee is an accredited investor.

 

10.14       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

10.15       Further
Assurances. Each party hereto shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

10.16       Counterparts.
This Agreement may be executed in two identical counterparts, both of which shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to the other party. Signature pages delivered by facsimile
or e-mail shall have the same force and effect as an original signature.

 

10.17       Specific
Performance. The Company acknowledges that monetary damages alone would not be adequate compensation to the Investor for a breach
by the Company of this Agreement and the Investor may seek an injunction or an order for specific performance from a court of competent
jurisdiction if (a) the Company fails to comply or threatens not to comply with this Agreement or (b) the Investor has reason to believe
that the Company will not comply with this Agreement.

 

 

[Signature Page Follows]

 

    	 	36	 

    	 

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Securities Purchase Agreement as of the date first set forth above.

 

 

	COMPANY:	 
	 	 
	BITNILE HOLDINGS, INC.	 
	 	 
	 	 
	By:	      	 
	Name:   	William B. Horne	 
	Title:	Chief Executive Officer	 

 

 

REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK 

[SIGNATURE
PAGE FOR THE INVESTORS FOLLOWS]

 

 

 

[Company Signature Page of Securities Purchase
Agreement]

 

    	 	 	 

    	 

    

 

INVESTOR SIGNATURE PAGES TO
BITNILE HOLDINGS, INC. SECURITIES PURCHASE AGREEMENT

 

IN WITNESS
WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above. 

 

	Name of Investor: 	 	 

 

	Signature of Authorized Signatory of Investor: 	 	 
	 	 	 
	Name of Authorized Signatory: 	 	 
	Title of Authorized Signatory: 	 	 
	Email Address of Authorized Signatory: 	 	 
	Facsimile Number of Authorized Signatory: 	 	 

 

	Address for Notice to Investor: 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

 

	Subscription Amount: 	$	 

 

 

	EIN Number: 	 	 

 

	With a copy (which shall not constitute notice) to:	 	 

 

 

 

[Investor Signature Page of Securities Purchase
Agreement]

 

    	 	 	 

    	 

    

 

EXHIBIT A

 

SECURITY DOCUMENTS

 

 

 

 

 

 

    	 	 	 

    	 

    

 

EXHIBIT B

 

FORM OF NOTE

 

[See attached]

 

 

 

 

 

 

    	 	 	 

    	 

    

 

EXHIBIT C

 

FORM OF CLASS A WARRANT 

 

[See attached]

 

 

 

 

 

 

    	 	 	 

    	 

    

 

EXHIBIT D

 

FORM OF CLASS B WARRANT 

 

 

 

 

 

 

 

    	 	 	 

    	 

    

 

EXHIBIT E

 

POST CLOSING MATTERS AGREEMENT

 

 

 

 

 

 

    	 	 	 

    	 

    

 

EXHIBT F

FLOW OF FUNDS REQUEST

 

 

BitNile Holdings Inc. – Securities Purchase
Agreement – Flow of Funds Request

 

In connection with the Securities Purchase Agreement,
dated December 29, 2021 (the “Agreement”) between BitNile Holdings Inc. (the “Company”) and ___________
(the “Investor”), the Company irrevocably authorizes the Investor to distribute such funds as set out below, in the
manner set out below, at the Closing.

 

Capitalized terms used but not otherwise defined
in this letter will have the meaning given to such terms in the Agreement.

 

 

	Item	Amount
	Closing  	 
	Fees and Expenses	 
	Bridge Financing Repayment	 
	Total	 

 

Please transfer the net amount of US $XX due at the Closing, to the
following bank account:

 

Beneficiary Bank: [•]

Swift code:

ABA/Routing #:[•]

Account #: [•]

Beneficiary name and address: [•]

 

Yours sincerely,

 

BITNILE HOLDINGS INC.

 

 

	By:	 	 
	Name: 	 	 
	Title:Exhibit 10.2

 

SECURITY AGREEMENT

 

This PLEDGE AND SECURITY
AGREEMENT, dated as of December 29, 2021 (this “Agreement”), is made by (i) BitNile
Holdings, Inc., a Delaware corporation (the “Company” or the “Grantor”,
and collectively with each subsidiary of the Company listed as a “Guarantor” on the signature pages hereto (together with
each other Person that executes a joinder agreement and becomes a “Guarantor” hereunder or otherwise guaranties all or any
part of the Secured Obligations, each a “Guarantor” and collectively, the “Guarantors”
or, together with the Company, the “Grantors”) and (ii) Digital Farms Management LLC, solely for purposes of
pledging its membership interests in Alliance Cloud Services, LLC, in favor of Esousa
Holdings, LLC, a New York limited liability company (“Esousa”), in its capacity as collateral agent
for the Secured Parties referred to below (in such capacity, together with its successors and assigns in such capacity, if any, the “Collateral
Agent”).

 

RECITALS:

 

A.           Pursuant
to the Securities Purchase Agreement, dated as of the date hereof (such agreement, as amended, restated, supplemented, modified or otherwise
changed from time to time, including any replacement agreement therefor, being herein referred to as the “Purchase Agreement”),
by and among the Company, the investors from time to time party thereto (each a “Investor” and collectively,
the ”Investors”), and the Collateral Agent, the Investors have agreed to purchase certain Senior Secured
Promissory Notes dated on or about the date hereof (each a “Note” and collectively, the “Notes”)
and warrants (the “Warrants”), from the Company.

 

B.           It
is a condition precedent to the Investors purchasing the Notes and Warrants from the Company pursuant to the Purchase Agreement that each
Grantor shall have executed and delivered to the Collateral Agent a pledge to the Collateral Agent, for the benefit of the Secured Parties,
and the granting to the Collateral Agent, for the benefit of the Secured Parties, a security interest in and lien on all of the Collateral.

 

C.           The
Grantors are mutually dependent on each other in the conduct of their respective businesses as an integrated operation, with credit needed
from time to time by each Grantor often being provided through financing obtained by the other Grantors and the ability to obtain such
financing being dependent on the successful operations of all of the Grantors as a whole.

 

D.           Each
Grantor has determined that the execution, delivery and performance of this Agreement directly benefit, and are in the best interest of,
such Grantor.

 

NOW, THEREFORE, in consideration
of the premises and the agreements herein and in order to induce the Collateral Agent and the Investors to purchase the Notes and to provide
other financial accommodations to the Company pursuant to the Purchase Agreement, the Grantors hereby jointly and severally agree with
the Collateral Agent, for the benefit of the Secured Parties, as follows:

 

    	 	 	 

    	 

    

 

Section 1.       Definitions.

 

(a)       Reference
is hereby made to the Purchase Agreement for a statement of the terms thereof. All capitalized terms used in this Agreement and the recitals
hereto which are defined in the Purchase Agreement or in Article 8 or 9 of the Uniform Commercial Code as in effect from time to time
in the State of New York (the “Code”) and which are not otherwise defined herein shall have the same meanings
herein as set forth therein; provided that terms used herein which are defined in the Code as in effect in the State of New York
on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute.

 

(b)       The
following terms shall have the respective meanings provided for in the Code: “Accounts”, “Account Debtor”, “Cash
Proceeds”, “Certificate of Title”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity
Account”, “Commodity Contracts”, “Deposit Account”, “Documents”, “Electronic Chattel Paper”,
“Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”, “Inventory”,
“Investment Property”, “Letter-of-Credit Rights”, “Noncash Proceeds”, “Payment Intangibles”,
“Proceeds”, “Promissory Notes”, “Record”, “Security Account”, “Software”,
“Supporting Obligations” and “Tangible Chattel Paper”.

 

(c)       As
used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally
to both the singular and plural forms of such terms:

 

“Additional Collateral”
has the meaning specified therefor in Section 4(a)(i).

 

“Copyrights”
means any and all rights in any published and unpublished works of authorship, including (i) copyrights and moral rights, (ii) copyright
registrations and recordings thereof and all applications in connection therewith including those listed on Schedule II and all
renewals, extensions, restorations and reversions thereof, (iii) income, license fees, royalties, damages, and payments now and hereafter
due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and damages
and payments for past, present, or future infringements thereof, (iv) the right to sue for past, present, and future infringements thereof,
and (v) all of each Grantor’s rights corresponding thereto throughout the world.

 

“Event of Default”
has the meaning given to such term in the Purchase Agreement and the Notes.

 

“Existing Issuer”
has the meaning specified therefor in the definition of the term “Pledged Shares”.

 

“Intellectual Property”
means any and all Patents, Copyrights, Trademarks, trade secrets, know-how, inventions (whether or not patentable), algorithms, software
programs (including source code and object code), processes, product designs, industrial designs, blueprints, drawings, data, customer
lists, URLs and domain names, specifications, documentations, reports, catalogs, literature, and any other forms of technology or proprietary
information of any kind, including all rights therein and all applications for registration or registrations thereof.

 

    	 	-2-	 

    	 

    

 

“Licenses”
means, with respect to any Person (the “Specified Party”), (i) any licenses or other similar rights provided
to the Specified Party in or with respect to Intellectual Property owned or controlled by any other Person, and (ii) any licenses or other
similar rights provided to any other Person in or with respect to Intellectual Property owned or controlled by the Specified Party, in
each case, including (A) any software license agreements (other than license agreements for commercially available off-the-shelf software
that is generally available to the public which have been licensed to a Grantor pursuant to end-user licenses), (B) the license agreements
listed on Schedule III, and (C) the right to use any of the licenses or other similar rights described in this definition in connection
with the enforcement of any of the Collateral Agent’s and the Investors’ rights under the Transaction Documents.

 

“Lien”
means any lien, encumbrance, claim, charge, pledge, security interest, assignment, hypothecation, deed of trust, mortgage, lease, conditional
sale, retention of title or other preferential arrangement having substantially the same economic effect as any of the foregoing, whether
voluntary, involuntary or imposed by Law.

 

“Patents”
means patents and patent applications, including (i) the patents and patent applications listed on Schedule IV, (ii) all continuations,
divisionals, continuations-in-part, re-examinations, reissues, and renewals thereof and improvements thereon, (iii) all income, royalties,
damages and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered into
in connection therewith and damages and payments for past, present, or future infringements thereof, (iv) the right to sue for past, present,
and future infringements thereof, and (v) all of each Grantor’s rights corresponding thereto throughout the world.

 

“Permitted Liens”
mean (1) Liens and security interests securing Indebtedness owed by a Grantor to any other Grantor, provided that such Indebtedness is
subordinate to the Secured Obligations and such Liens are second in priority to the Liens of the Agent; (2) liens for taxes, assessments,
or similar charges either not yet due or being contested in good faith; (3) liens of materialmen, mechanics, warehousemen, or carriers,
or other like liens arising in the ordinary course of business on an arms’ length basis and securing obligations which are not
yet delinquent; (4) purchase money liens or purchase money security interests upon or in any property acquired or held by a Grantor in
the ordinary course of business to secure Indebtedness outstanding on the date of this Agreement or permitted to be incurred under this
Agreement; (5) Liens which, as of the date of this Agreement, have been disclosed to and approved by the Agent on behalf of the Investors
in writing; and (6) those Liens which in the aggregate constitute an immaterial and insignificant monetary amount with respect to the
net value of the Grantors’ assets, taken as a whole, in any event not exceeding $25,000 in any single instance or $100,000 in the
aggregate outstanding at any time.

 

“Pledged Debt”
means the indebtedness described in Schedule X and all indebtedness from time to time owned or acquired by a Grantor, the promissory
notes and other Instruments evidencing any or all of such indebtedness, and all interest, cash, Instruments, Investment Property, financial
assets, securities, Equity Interests, other equity interests, stock options and commodity contracts, notes, debentures, bonds, promissory
notes or other evidences of indebtedness and all other property from time to time received, receivable or otherwise distributed in respect
of or in exchange for any or all of such indebtedness. 

 

    	 	-3-	 

    	 

    

 

“Pledged Interests”
means, collectively, (a) the Pledged Debt, (b) the Pledged Shares and (c) all security entitlements in any and all of the foregoing.

 

“Pledged Issuer”
has the meaning specified therefor in the definition of the term “Pledged Shares”.

 

“Pledged Shares”
means (a) the shares of Equity Interests described in Schedule XI, whether or not evidenced or represented by any stock certificate,
certificated security or other Instrument, issued by the Persons described in such Schedule XI (the “Existing Issuers”),
(b) the shares of Equity Interests at any time and from time to time acquired by a Grantor of any and all Persons now or hereafter existing
(such Persons, together with the Existing Issuers, being hereinafter referred to collectively as the “Pledged Issuers”
and each individually as a “Pledged Issuer”), whether or not evidenced or represented by any stock certificate,
certificated security or other Instrument, and (c) the certificates representing such shares of Equity Interests, all options and other
rights, contractual or otherwise, in respect thereof and all dividends, distributions, cash, Instruments, Investment Property, financial
assets, securities, Equity Interests, other equity interests, stock options and commodity contracts, notes, debentures, bonds, promissory
notes or other evidences of indebtedness and all other property (including without limitation, any stock dividend and any distribution
in connection with a stock split) from time to time received, receivable or otherwise distributed in respect of or in exchange for any
or all of such Equity Interests.

 

“Post-Closing Agreement”
means the Post-Closing Agreement of even date herewith between the Agent and the Company.

 

“Secured Obligations”
has the meaning specified therefor in Section 3.

 

“Secured Parties”
means the Agent, for itself and on behalf of the Investors, and the Investors, and each of their successors and assigns.

 

“Titled Collateral”
means all Collateral for which the title to such Collateral is governed by a Certificate of Title or certificate of ownership, including
without limitation, all motor vehicles (including without limitation, all trucks, trailers, tractors, service vehicles, automobiles and
other mobile equipment) for which the title to such motor vehicles is governed by a Certificate of Title or certificate of ownership.

 

“Trademarks”
means any and all trademarks, trade names, registered trademarks, trademark applications, service marks, registered service marks, brand
names, certification marks, collective marks, logos, symbols, trade dress, assumed names, fictitious names and service mark applications,
including (i) the trade names, registered trademarks, trademark applications, registered service marks and service mark applications listed
on Schedule V, (ii) all extensions, modifications and renewals thereof, (iii) all income, royalties, damages and payments now and
hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and
damages and payments for past or future infringements or dilutions thereof, (iv) the right to sue for past, present and future infringements
and dilutions thereof, (v) the goodwill of each Grantor’s business symbolized by the foregoing or connected therewith, and (vi)
all of each Grantor’s rights corresponding thereto throughout the world.

 

    	 	-4-	 

    	 

    

 

“Transaction Documents”
has the meaning given to such term in the Purchase Agreement and includes this Agreement and any Security Agreement Supplement, as any
of such documents may be amended, restated, supplemented, modified or otherwise changed from time to time.

 

Section
2. Grant of Security Interest. As collateral security for the payment, performance and observance of all of the Secured
Obligations, each Grantor hereby pledges and assigns to the Collateral Agent (and its agents and designees), and grants to the Collateral
Agent (and its agents and designees), for itself and the benefit of the other Secured Parties, a continuing security interest in all personal
property and Fixtures of such Grantor, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired,
of every kind and description, tangible or intangible, including without limitation, the following (all being collectively referred to
herein as the “Collateral”):

 

(a)       all
Accounts;

 

(b)       all
Chattel Paper (whether tangible or electronic);

 

(c)       all
Commercial Tort Claims, including without limitation, those specified on Schedule IX;

 

(d)       all
Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise credited thereto and the monies and
property in the possession or under the control of the Collateral Agent or any Investor or any Affiliate, representative, agent or correspondent
of the Collateral Agent or any Investor;

 

(e)       all
Documents;

 

(f)        all
General Intangibles (including without limitation, all Payment Intangibles, Intellectual Property and Licenses);

 

(g)       all
Goods, including without limitation, all Equipment, Fixtures and Inventory;

 

(h)       all
Instruments (including without limitation, Promissory Notes);

 

(i)       all
Investment Property;

 

(j)        all
Letter-of-Credit Rights;

 

(k)       all
Pledged Interests;

 

(l)        all
Supporting Obligations;

 

    	 	-5-	 

    	 

    

 

(m)      all
other tangible and intangible personal property of such Grantor (whether or not subject to the Code), including without limitation, all
bank and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income,
benefits, substitutions and replacements of and to any of the property of such Grantor described in the preceding clauses of this Section
2 (including without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter
held by such Grantor in respect of any of the items listed above), and all books, correspondence, files and other Records, including without
limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the control of such Grantor or any
other Person from time to time acting for such Grantor that at any time evidence or contain information relating to any of the property
described in the preceding clauses of this Section 2 or are otherwise necessary or helpful in the collection or realization thereof;
and

 

(n)       all
Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing Collateral;

 

in each case howsoever such Grantor’s interest
therein may arise or appear (whether by ownership, security interest, claim or otherwise).

 

Section
3.      Security for Secured Obligations. The security interest created under this Agreement, including under Section 2,
in the Collateral constitutes continuing collateral security for all of the following obligations, whether now existing or hereafter incurred
(the “Secured Obligations”):

 

(a)       the
prompt payment by each Grantor, as and when due and payable (whether by scheduled maturity, required prepayment, acceleration, demand
or otherwise), of all amounts from time to time owing by it in respect of the Purchase Agreement, the Notes and any other Transaction
Documents (other than the Warrants), including without limitation, (i) all obligations of the Company to pay the “Principal
Amount” under the Notes and make and fulfill any other repayment obligations as to the principal thereunder, (ii) in the case
of a Guarantor, all amounts from time to time owing by such Grantor in respect of its guaranty made pursuant to this Agreement or under
any other guaranty to which it is a party, including without limitation, all obligations guaranteed by such Grantor and (iii) all
interest, fees, commissions, charges, expense reimbursements, indemnifications and all other amounts due or to become due under any Note
or other Transaction Document (other than the Warrants) (including without limitation, all interest, fees, commissions, charges, expense
reimbursements, indemnifications and other amounts that accrue after the commencement of any Insolvency Proceeding of any Grantor, whether
or not the payment of such interest, fees, commissions, charges, expense reimbursements, indemnifications and other amounts are unenforceable
or are not allowable, in whole or in part, due to the existence of such Insolvency Proceeding); and

 

(b)       the
due performance and observance by each Grantor of all of its other obligations from time to time existing in respect of the Purchase Agreement,
the Notes and any other Transaction Documents (other than the Warrants);

 

provided that, when the Notes
have been indefeasibly paid in full pursuant to their terms, the term “Secured Obligations” shall not include any of the foregoing
obligations under the Purchase Agreement or any other Transaction Documents, and any remaining obligations under such Transaction Documents
shall no longer be secured hereby.

 

    	 	-6-	 

    	 

    

 

Section
4.      Delivery of the Pledged Interests.

 

(a)       (i)  All
promissory notes currently evidencing the Pledged Debt and all certificates currently representing the Pledged Shares shall be delivered
to the Collateral Agent, subject to the Post-Closing Agreement, on or prior to the execution and delivery of this Agreement. All other
promissory notes, certificates and Instruments constituting Pledged Interests from time to time required to be pledged to the Collateral
Agent pursuant to the terms of this Agreement or the Purchase Agreement (the “Additional Collateral”) shall
be delivered to the Collateral Agent promptly upon, but in any event within five days of, receipt thereof by or on behalf of any of the
Grantors. All such promissory notes, certificates and Instruments shall be held by or on behalf of the Collateral Agent pursuant hereto
and shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment
or undated stock powers executed in blank, all in form and substance reasonably satisfactory to the Collateral Agent. If any Pledged Interest
consists of uncertificated securities, unless the immediately following sentence is applicable thereto, such Grantor shall cause the Collateral
Agent (or its designated custodian or nominee) to become the registered holder thereof, or cause each issuer of such securities to agree,
so long as this Agreement is effective, that it will comply with instructions originated by the Collateral Agent with respect to such
securities without further consent by such Grantor. If any Pledged Interest consists of security entitlements, such Grantor shall transfer
such security entitlements to the Collateral Agent (or its custodian, nominee or other designee), or cause the applicable securities intermediary
to agree that it will comply with entitlement orders by the Collateral Agent without further consent by such Grantor.

 

(ii)       Within
five days of the receipt by a Grantor of any Additional Collateral, a Pledge Amendment, duly executed by such Grantor, in substantially
the form of Exhibit A hereto (a “Pledge Amendment”), shall be delivered to the Collateral Agent, in respect
of the Additional Collateral that must be pledged pursuant to this Agreement and the Purchase Agreement. The Pledge Amendment shall from
and after delivery thereof constitute part of Schedules X and XI. Each Grantor hereby authorizes the Collateral Agent to
attach each Pledge Amendment to this Agreement and agrees that all promissory notes, certificates or Instruments listed on any Pledge
Amendment delivered to the Collateral Agent shall for all purposes hereunder constitute Pledged Interests and such Grantor shall be deemed
upon delivery thereof to have made the representations and warranties set forth in Section 5 with respect to such Additional Collateral.

 

(b)       If
any Grantor shall receive, by virtue of such Grantor’s being or having been an owner of any Pledged Interests, any (i) stock certificate
(including without limitation, any certificate representing a stock dividend or distribution in connection with any increase or reduction
of capital, reclassification, merger, consolidation, sale of assets, combination of shares, stock split, spin-off or split-off), promissory
note or other Instrument, (ii) option or right, whether as an addition to, substitution for, or in exchange for, any Pledged Interests,
or otherwise, (iii) dividends payable in cash (except such dividends permitted to be retained by any such Grantor pursuant to Section
7) or in securities or other property or (iv) dividends, distributions, cash, Instruments, Investment Property and other property
in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in
surplus, such Grantor shall receive such stock certificate, promissory note, Instrument, option, right, payment or distribution in trust
for the benefit of the Collateral Agent, shall segregate it from such Grantor’s other property and shall deliver it forthwith to
the Collateral Agent, in the exact form received, with any necessary indorsement and appropriate stock powers duly executed in blank,
to be held by the Collateral Agent as Pledged Interests and as further collateral security for the Secured Obligations.

 

    	 	-7-	 

    	 

    

 

Section
5.      Representations and Warranties. Each Grantor represents and warrants as of the date of this Agreement or any applicable
Security Agreement Supplement to which it is a party as follows:

 

(a)       Schedule
I sets forth (i) the exact legal name of each Grantor, (ii) the state or jurisdiction of organization of each Grantor, (iii) the type
of organization of each Grantor and (iv) the organizational identification number of each Grantor or states that no such organizational
identification number exists.

 

(b)       Except
as disclosed in the Public Record, there is no pending or, to the knowledge of any Grantor, written notice threatening action, suit, proceeding
or claim before any court or other Governmental Entity or any arbitrator, or any order, judgment or award by any court or other Governmental
Entity or any arbitrator, that may adversely affect the grant by any Grantor, or the perfection, of the security interest purported to
be created hereby in the Collateral, or the exercise by the Collateral Agent of any of its rights or remedies hereunder.

 

(c)       All
Equipment, Fixtures, Inventory and other Goods now existing are, and all Equipment, Fixtures, Inventory and other Goods hereafter existing
will be, located at the addresses specified therefor in Schedule VI (as amended, supplemented or otherwise modified from time to
time in accordance with Section 6(b)). Each Grantor’s chief place of business and chief executive office, the place where
such Grantor keeps its Records concerning Accounts and all originals of all Chattel Paper are located at the addresses specified therefor
in Schedule VI (as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof). None of
the Accounts is evidenced by Promissory Notes or other Instruments. Set forth in Schedule VII is a complete and accurate list,
as of the date of this Agreement, of each Deposit Account, Securities Account and Commodities Account of each Grantor, together with the
name and address of each institution at which each such Account is maintained, the account number for each such Account and a description
of the purpose of each such Account. Set forth in Schedule V is (i) a complete and correct list of each trade name used by each
Grantor and (ii) the name of, and each trade name used by, each Person from which such Grantor has acquired any substantial part of the
Collateral within five years of the date hereof.

 

(d)       As
of the Effective Date, (i) Schedule II provides a complete and correct list of all registered Copyrights owned by any Grantor,
all applications for registration of Copyrights owned by any Grantor, and all other Copyrights owned by any Grantor and material to the
conduct of the business of any Grantor; (ii) Schedule III provides a complete and correct list of all Licenses entered into by
any Grantor pursuant to which (A) any Grantor has provided any license or other rights in Intellectual Property owned or controlled by
such Grantor to any other Person other than non-exclusive software licenses granted in the ordinary course of business or (B) any Person
has granted to any Grantor any license or other rights in Intellectual Property owned or controlled by such Person that is material to
the business of such Grantor; (iii) Schedule IV provides a complete and correct list of all Patents owned by any Grantor and all
applications for Patents owned by any Grantor; and (iv) Schedule V provides a complete and correct list of all registered Trademarks
owned by any Grantor, all applications for registration of Trademarks owned by any Grantor, and all other Trademarks owned by any Grantor
and material to the conduct of the business of any Grantor.

 

    	 	-8-	 

    	 

    

 

(e)        (i)
(A) Each Grantor owns, or holds licenses in, or otherwise possesses legally enforceable rights in, all Intellectual Property that is reasonably
necessary to the operation of its business as currently conducted, or (B) each Grantor is the sole and exclusive owner of Intellectual
Property (free and clear of any Liens) used by it and has sole and exclusive rights to the use and distribution therefor or the material
covered thereby in connection with the services or products in respect of which such Intellectual Property are currently being used, sold,
licensed or distributed.

 

(ii)       Except
for those claims which could not reasonably be expected to result in a Material Adverse Effect and which the applicable Grantor is diligently
pursuing the remedy thereof, no claims with respect to the Intellectual Property rights of any Grantor are pending or, to the knowledge
of any Grantor, threatened against any Grantor or, to the knowledge of any Grantor, any other Person, (i) alleging that the manufacture,
sale, licensing or use of any Intellectual Property as now manufactured, sold, licensed or used by any Grantor or any third party infringes
on any intellectual property rights of any third party, (ii) against the use by any Grantor or any third party of any technology,
know-how or computer software used in any Grantor’s business as currently conducted or (iii) challenging the ownership by any
Grantor, or the validity or effectiveness, of any such Intellectual Property.

 

(f)       To
the knowledge of any Grantor, (i) no Grantor has infringed on any intellectual property rights of any third party and (ii) none
of the Intellectual Property rights of any Grantor infringes on any intellectual property rights of any third party.

 

(g)       All
registered Copyrights, registered Trademarks, and issued Patents that are owned by such Grantor and necessary in the conduct of its business
are valid, subsisting and enforceable and have at all times been in compliance with all laws, rules, regulations, and orders of any Governmental
Entity applicable thereto.

 

(h)       Each
Grantor has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights in all trade secrets
owned by such Grantor that are necessary in the business of such Grantor.

 

(i)        Other
than software which by the terms of its own license explicitly permits the licensee to distribute the software together with other commercial
programs with no restrictions on such Grantor’s ability to charge fees for such distribution and with no restriction on such Grantor’s
right to receive payments for transfer of its Intellectual Property, no open source or public library software, including any version
of any software licensed pursuant to any GNU public license, is, in whole or in part, embodied or incorporated, in any manner, in any
Grantor’s software products that is licensed or distributed by any Grantor. No open source or public library software licensed pursuant
to any GNU public license which requires any Grantor to license such Grantor’s software products to third parties, or any other
license which requires any Grantor to license such Grantor’s software products to third parties, is embodied or incorporated, in
any manner, in any Grantor’s source code.

 

    	 	-9-	 

    	 

    

 

(j)        Except
as noted on Schedule XI, the Existing Issuers set forth in Schedule XI identified as a Subsidiary of a Grantor are each
such Grantor’s only Subsidiaries existing on the date hereof. The Pledged Shares have been duly authorized and validly issued and
are fully paid and nonassessable and the holders thereof are not entitled to any preemptive, first refusal or other similar rights. Except
as noted in Schedule XI, the Pledged Shares constitute 100% of the issued shares of Equity Interests of the Pledged Issuers as
of the date hereof. All other shares of Equity Interests constituting Pledged Interests will be duly authorized and validly issued, fully
paid and nonassessable.

 

(k)       The
promissory notes currently evidencing the Pledged Debt have been, and all other promissory notes from time to time evidencing Pledged
Debt, when executed and delivered, will have been, duly authorized, executed and delivered by the respective makers thereof, and all such
promissory notes are or will be, as the case may be, legal, valid and binding obligations of such makers, enforceable against such makers
in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar Laws.

 

(l)        The
Grantors are and will be at all times the sole and exclusive owners of, or otherwise have and will have adequate rights in, the Collateral
free and clear of any Lien, except for Permitted Liens. No effective financing statement or other instrument similar in effect covering
all or any part of the Collateral is on file in any recording or filing office, except such as are securing Permitted Liens as of the
date hereof.

 

(m)      The
exercise by the Collateral Agent of any of its rights and remedies hereunder will not contravene any Law or any contractual restriction
binding on or otherwise affecting any Grantor or any of its properties and will not result in, or require the creation of, any Lien upon
or with respect to any of its properties.

 

(n)       No
authorization or approval or other action by, and no notice to or filing with, any Governmental Entity or any other Person (other than
those that have been obtained and are in full force and effect) is required for (i) the due execution, delivery and performance by any
Grantor of this Agreement, (ii) the grant by any Grantor of the security interest purported to be created hereby in the Collateral
or (iii) the exercise by the Collateral Agent of any of its rights and remedies hereunder, except, in the case of this clause (iii),
as may be required in connection with any sale of any Pledged Interests by Laws affecting the offering and sale of securities generally,
except for (A) the filing under the Uniform Commercial Code as in effect in the applicable jurisdiction of the financing statements described
in Schedule VIII and (B) such control account agreements required to perfect the Liens hereunder, as may be subject to Section
6(l) and the Post-Closing Agreement. No authorization or approval or other action by, and no notice to or filing with, any Governmental
Entity or any other Person, is required for the perfection of the security interest purported to be created hereby in the Collateral (other
than those that have been obtained and are in full force and effect), except (A) for the filing under the Uniform Commercial Code
as in effect in the applicable jurisdiction of the financing statements described in Schedule VIII, (B) such control account
agreements required to perfect the Liens hereunder, as may be subject to Section 6(l) and the Post-Closing Agreement, (C) with respect
to the perfection of the security interest created hereby in the United States Intellectual Property and Licenses, for the recording of
the appropriate Assignment for Security, substantially in the form of Exhibit B hereto in the United States Patent and Trademark Office
or the United States Copyright Office, as applicable, (D)  with respect to the perfection of the security interest created hereby
in Titled Collateral, for the submission of an appropriate application requesting that the Lien of the Collateral Agent be noted on the
Certificate of Title or certificate of ownership, completed and authenticated by the applicable Grantor, together with the Certificate
of Title or certificate of ownership, with respect to such Titled Collateral, to the appropriate Governmental Entity, (E) with respect
to any action that may be necessary to obtain control of Collateral constituting Deposit Accounts, Electronic Chattel Paper, Investment
Property or Letter-of-Credit Rights, the taking of such actions, and (F) the Collateral Agent’s having possession of all Documents,
Chattel Paper, Instruments and cash constituting Collateral (subclauses (A), (B), (C), (D), (E), and (F), each a “Perfection
Requirement” and collectively, the “Perfection Requirements”).

 

    	 	-10-	 

    	 

    

 

(o)       This
Agreement creates a legal, valid and enforceable security interest in favor of the Collateral Agent, for the benefit of the Secured Parties,
in the Collateral, as security for the Secured Obligations. The compliance with the Perfection Requirements result in the perfection of
such security interests. Such security interests are, or in the case of Collateral in which any Grantor obtains rights after the date
hereof, will be, perfected, first priority security interests subject only to Permitted Liens and the Perfection Requirements. Such Perfection
Requirements and all other action necessary or desirable to perfect and protect such security interest have been duly made or taken, except
for (i) the Collateral Agent’s having possession of all Instruments, Documents, Chattel Paper and cash constituting Collateral after
the date hereof, (ii) the Collateral Agent’s having control of all Deposit Accounts (subject to Section 6(l)), Electronic Chattel
Paper, Investment Property or Letter-of-Credit Rights constituting Collateral after the date hereof, and (iii) the other filings and recordations
and actions described in Section 5(n).

 

(p)       As
of the date hereof, no Grantor holds any Commercial Tort Claims or is aware of any such pending claims, except for such claims described
in Schedule IX.

 

(q)       With
respect to each Grantor and its Subsidiaries that is a partnership or a limited liability company, each such Person has irrevocably opted
into (and has caused each of its Subsidiaries that is a partnership or a limited liability company, and a Pledged Issuer to opt into)
Article 8 of the Uniform Commercial Code. Such interests are securities for purposes of Article 8 of any relevant Uniform Commercial Code.

 

Section
6.      Covenants as to the Collateral. So long as any of the Secured Obligations (whether or not due) shall remain unpaid,
unless the Collateral Agent shall otherwise consent in writing:

 

    	 	-11-	 

    	 

    

 

(a)       Further
Assurances. Each Grantor will at its expense, at any time and from time to time, promptly execute and deliver all further instruments
and documents and take all further action that may be necessary or desirable or that the Collateral Agent may request in order (i) to
perfect and protect, or maintain the perfection of, the security interest and Lien purported to be created hereby; (ii) to enable
the Collateral Agent to exercise and enforce its rights and remedies hereunder in respect of the Collateral; or (iii) otherwise to
effect the purposes of this Agreement, including without limitation: (A) marking conspicuously all Chattel Paper, Instruments and
Licenses and, at the request of the Collateral Agent, all of its Records pertaining to the Collateral with a legend, in form and substance
satisfactory to the Collateral Agent, indicating that such Chattel Paper, Instrument, License or Collateral is subject to the security
interest created hereby, (B) if any Account shall be evidenced by a Promissory Note or other Instrument or Chattel Paper, delivering
and pledging to the Collateral Agent such Promissory Note, other Instrument or Chattel Paper, duly endorsed and accompanied by executed
instruments of transfer or assignment, all in form and substance satisfactory to the Collateral Agent, (C) executing and filing (to
the extent, if any, that such Grantor’s signature is required thereon) or authenticating the filing of, such financing or continuation
statements, or amendments thereto, (D) with respect to Intellectual Property hereafter existing and not covered by an appropriate security
interest grant, the executing and recording in the United States Patent and Trademark Office or the United States Copyright Office, as
applicable, appropriate instruments granting a security interest, as may be necessary or desirable or that the Collateral Agent may reasonably
request in order to perfect and preserve the security interest purported to be created hereby, (E) delivering to the Collateral Agent
irrevocable proxies in respect of the Pledged Interests, (F) furnishing to the Collateral Agent from time to time statements and
schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral
Agent may reasonably request, all in reasonable detail, (G) if at any time after the date hereof, any Grantor acquires or holds any
Commercial Tort Claim with a maximum potential value in excess of $100,000, promptly notifying the Collateral Agent in a writing signed
by such Grantor setting forth a brief description of such Commercial Tort Claim and granting to the Collateral Agent a security interest
therein and in the proceeds thereof, which writing shall incorporate the provisions hereof and shall be in form and substance satisfactory
to the Collateral Agent, (H) upon the acquisition after the date hereof by any Grantor of any Titled Collateral, promptly notifying
the Collateral Agent of such acquisition, setting forth a description of the Titled Collateral acquired and a good faith estimate of the
current value of such Titled Collateral, and if so requested by the Collateral Agent, promptly causing the Collateral Agent to be listed
as the lienholder on such Certificate of Title or certificate of ownership and delivering evidence of the same to the Collateral Agent,
and (I) taking all actions required by Law in any relevant Uniform Commercial Code jurisdiction, or by other Law as applicable in
any foreign jurisdiction. Except in accordance with this Agreement, no Grantor shall take or fail to take any action which would in any
manner impair the validity or enforceability of the Collateral Agent’s security interest in and Lien on any Collateral.

 

(b)       Location
of Equipment and Inventory. Each Grantor will keep the Equipment and Inventory (other than Equipment and Inventory sold in the ordinary
course of business in accordance with Section 6(h)) at the locations specified in Schedule VI or, upon not less than 30
days’ prior written notice to the Collateral Agent accompanied by a new Schedule VI indicating each new location of the Equipment
and Inventory, at such other locations in the continental United States as the Grantors may elect, provided that (i) all action
has been taken to grant to the Collateral Agent a perfected, first priority security interest in such Equipment and Inventory, and (ii)
the Collateral Agent’s rights in such Equipment and Inventory, including without limitation, the existence, perfection and priority
of the security interest created hereby in such Equipment and Inventory, are not adversely affected thereby.

 

    	 	-12-	 

    	 

    

 

(c)       Condition
of Equipment. Each Grantor will maintain or cause the Equipment which is necessary or useful in the proper conduct of its business
to be maintained and preserved in good condition, repair and working order and in accordance with any manufacturer’s manual, ordinary
wear and tear excepted, and will forthwith, or in the case of any loss or damage to any Equipment promptly after the occurrence thereof,
make or cause to be made all repairs, replacements and other improvements in connection therewith which are necessary or desirable, consistent
with past practice, or which the Collateral Agent may reasonably request to such end. Each Grantor will promptly furnish to the Collateral
Agent a statement describing in reasonable detail any loss or damage in excess of $50,000 to any Equipment.

 

(d)       Taxes,
Etc. Each Grantor jointly and severally agrees to pay promptly when due all property and other taxes, assessments and governmental
charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Equipment and Inventory,
except to the extent the validity thereof is being contested in good faith by proper proceedings which stay the imposition of any penalty,
fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves in accordance with GAAP have been set
aside for the payment thereof, or otherwise provided in the Purchase Agreement.

 

(e)       Insurance.
Each Grantor will, at its own expense, maintain insurance with respect to the Collateral in accordance with the terms of the Purchase
Agreement. Each Grantor will, if so requested by the Collateral Agent, deliver to the Collateral Agent original or duplicate insurance
policies and, as often as the Collateral Agent may reasonably request, a report of a reputable insurance broker with respect to such insurance.
Each Grantor will also, at the request of the Collateral Agent, execute and deliver instruments of assignment of such insurance policies
and cause the respective insurers to acknowledge notice of such assignment.

 

(f)       Provisions
Concerning the Accounts and the Licenses.

 

(i)       Each
Grantor will, except as otherwise provided in this subsection (f), continue to collect, at its own expense, all amounts due or to
become due under the Accounts. In connection with such collections, each Grantor may (and, at the Collateral Agent’s direction,
will) take such action as such Grantor (or, if applicable, the Collateral Agent) may deem necessary or advisable to enforce collection
or performance of the Accounts; provided, however, that the Collateral Agent shall have the right at any time, upon the
occurrence and during the continuance of an Event of Default, to notify the Account Debtors or obligors under any Accounts of the assignment
of such Accounts to the Collateral Agent and to direct such Account Debtors or obligors to make payment of all amounts due or to become
due to such Grantor thereunder directly to the Collateral Agent or its designated agent and, upon such notification and at the expense
of such Grantor and to the extent permitted by Law, to enforce collection of any such Accounts and to adjust, settle or compromise the
amount or payment thereof, in the same manner and to the same extent as such Grantor might have done. After receipt by any Grantor of
a notice from the Collateral Agent that the Collateral Agent has notified, intends to notify, or has enforced or intends to enforce a
Grantor’s rights against the Account Debtors or obligors under any Accounts as referred to in the proviso to the immediately preceding
sentence, (A) all amounts and proceeds (including Instruments) received by such Grantor in respect of the Accounts shall be received
in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other funds of such Grantor and shall be forthwith
paid over to the Collateral Agent or its designated agent in the same form as so received (with any necessary endorsement) to be held
as cash collateral and applied as specified in Section 9(d), and (B) such Grantor will not adjust, settle or compromise the amount
or payment of any Account or release wholly or partly any Account Debtor or obligor thereof or allow any credit or discount thereon. In
addition, upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may (in its sole and absolute discretion)
direct any or all of the banks and financial institutions with which any Grantor either maintains a Deposit Account or a lockbox or deposits
the proceeds of any Accounts to send promptly to the Collateral Agent or its designated agent by wire transfer (to such account as the
Collateral Agent shall specify, or in such other manner as the Collateral Agent shall direct) all or a portion of such securities, cash,
investments and other items held by such institution. Any such securities, cash, investments and other items so received by the Collateral
Agent or its designated agent shall (in the sole and absolute discretion of the Collateral Agent) be held as additional Collateral for
the Secured Obligations or distributed in accordance with Section 9.

 

    	 	-13-	 

    	 

    

 

(ii)       Upon
the occurrence and during the continuance of any breach or default under any material License by any party thereto other than a Grantor,
(A) the relevant Grantor will, promptly after obtaining knowledge thereof, give the Collateral Agent written notice of the nature and
duration thereof, specifying what action, if any, it has taken and proposes to take with respect thereto, (B) no Grantor will, without
the prior written consent of the Collateral Agent, which consent shall not be unreasonably withheld, delayed or conditioned, declare or
waive any such breach or default or affirmatively consent to the cure thereof or exercise any of its remedies in respect thereof, and
(C) each Grantor will, upon written instructions from the Collateral Agent and at such Grantor’s expense, take such action as the
Collateral Agent may reasonably deem necessary or advisable in respect thereof.

 

(iii)      Each
Grantor will, at its expense, promptly deliver to the Collateral Agent a copy of each notice or other communication received by it by
which any other party to any material License (A) declares a breach or default by a Grantor of any material term thereunder, (B) terminates
such License or (C) purports to exercise any of its rights or affect any of its obligations thereunder, together with a copy of any reply
by such Grantor thereto.

 

(iv)       Each
Grantor will exercise promptly and diligently each and every right which it may have under each material License (other than any right
of termination) and will duly perform and observe in all respects all of its obligations under each material License and will take all
action reasonably necessary to maintain the Licenses in full force and effect. No Grantor will, without the prior written consent of the
Collateral Agent, cancel, terminate, amend or otherwise modify in any respect, or waive any provision of, any material License.

 

(g)       Provisions
Concerning the Pledged Interests. Each Grantor will

 

(i)         at
the Grantors’ joint and several expense, promptly deliver to the Collateral Agent a copy of each notice or other communication received
by it in respect of the Pledged Interests;

 

(ii)       at
the Grantors’ joint and several expense, defend the Collateral Agent’s right, title and security interest in and to the Pledged
Interests against the claims of any Person;

 

    	 	-14-	 

    	 

    

 

(iii)      not
make or consent to any material amendment or other material modification or waiver with respect to any Pledged Interests or enter into
any agreement or permit to exist any restriction with respect to any Pledged Interests (other than as permitted under the Transaction
Documents); and

 

(iv)       not
permit the issuance of (A) any additional shares of any class of Equity Interests of any Pledged Issuer, (B) any securities convertible
voluntarily by the holder thereof or automatically upon the occurrence or non-occurrence of any event or condition into, or exchangeable
for, any such shares of Equity Interests or (C) any warrants, options, contracts or other commitments entitling any Person to purchase
or otherwise acquire any such shares of Equity Interests.

 

(h)       Transfers
and Other Liens.

 

(i)         No
Grantor will sell, assign (by operation of Law or otherwise), lease, license, exchange or otherwise transfer or dispose of any of the
Collateral, without the prior written consent of the Collateral Agent, except for transactions conducted in the ordinary course of business
(which shall not include any real property), including the sale of unregistered securities the proceeds of which remain in a Deposit Account
or Security Account subject to a control account agreement.

 

(ii)       No
Grantor will create, suffer to exist or grant any Lien upon or with respect to any Collateral, other than a Permitted Lien.

 

(i)        Intellectual
Property.

 

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

 

(ii)       Each
Grantor shall have the duty, with respect to Intellectual Property that is necessary in the conduct of such Grantor’s business,
to protect and diligently enforce and defend at such Grantor’s expense its Intellectual Property, including (A) to diligently enforce
and defend, including, where it is commercially reasonable to, promptly suing for infringement, misappropriation, or dilution and to recover
any and all damages for such infringement, misappropriation, or dilution, and filing for opposition, interference, and cancellation against
conflicting Intellectual Property rights of any Person, (B) to prosecute diligently any material trademark application or service mark
application that is part of the Trademarks pending as of the date hereof or hereafter until the termination of this Agreement, (C) to
prosecute diligently any material patent application that is part of the Patents pending as of the date hereof or hereafter until the
termination of this Agreement, (D) to take all reasonable and necessary action to preserve and maintain all of such Grantor’s Trademarks,
Patents, Copyrights, Licenses, and its rights therein, including paying all maintenance fees and filing of applications for renewal, affidavits
of use, and affidavits of noncontestability, and (E) to require all employees, consultants, and contractors of each Grantor who were involved
in the creation or development of such Intellectual Property to sign agreements containing assignment of Intellectual Property rights
and obligations of confidentiality. Each Grantor further agrees not to abandon any Intellectual Property or Intellectual Property License
that is necessary in the conduct of such Grantor’s business. Each Grantor hereby agrees to take the steps described in this Section
6(i)(ii) with respect to all new or acquired Intellectual Property to which it or any of its Subsidiaries is now or later becomes
entitled that is necessary in the conduct of such Grantor’s business.

 

    	 	-15-	 

    	 

    

 

(iii)      Grantors
acknowledge and agree that the Secured Parties shall have no duties with respect to any Intellectual Property or Licenses of any Grantor.
Without limiting the generality of this Section 6(i)(iii), Grantors acknowledge and agree that no Secured Party shall be under
any obligation to take any steps necessary to preserve rights in the Collateral consisting of Intellectual Property or Licenses against
any other Person, but any Secured Party may do so at its option from and after the occurrence and during the continuance of an Event of
Default, and all expenses incurred in connection therewith (including reasonable fees and expenses of attorneys and other professionals)
shall be for the sole account of the Company.

 

(iv)       Each
Grantor shall promptly file an application with the United States Copyright Office for any Copyright that has not been registered with
the United States Copyright Office if such Copyright is necessary in connection with the conduct of such Grantor’s business. Any
expenses incurred in connection with the foregoing shall be borne by the Grantors.

 

(v)        Each
Grantor shall provide the Collateral Agent with a written report of all new Patents or Trademarks that are registered or the subject of
pending applications for registrations, and of all Licenses that are material to the conduct of such Grantor’s business, in each
case, which were acquired, registered, or for which applications for registration were filed by any Grantor or entered into during the
prior period and any statement of use or amendment to allege use with respect to intent-to-use trademark applications. In the case of
such registrations or applications therefor, which were acquired by any Grantor, each such Grantor shall file the necessary documents
with the appropriate Governmental Entity identifying the applicable Grantor as the owner (or as a co-owner thereof, if such is the case)
of such Intellectual Property. In each of the foregoing cases, the applicable Grantor shall promptly cause to be prepared, executed, and
delivered to the Collateral Agent supplemental schedules to the applicable Transaction Documents to identify such Patent and Trademark
registrations and applications therefor (with the exception of Trademark applications filed on an intent-to-use basis for which no statement
of use or amendment to allege use has been filed) and Licenses as being subject to the security interests created thereunder.

 

(vi)       Anything
to the contrary in this Agreement notwithstanding, in no event shall any Grantor, either itself or through any agent, employee, licensee,
or designee, file an application for the registration of any Copyright with the United States Copyright Office or any similar office or
agency in another country without giving the Collateral Agent written notice thereof at least three Business Days prior to such filing
and complying with Section 6(i)(i). Upon receipt from the United States Copyright Office of notice of registration of any Copyright,
each Grantor shall promptly (but in no event later than three Business Days following such receipt) notify (but without duplication of
any notice required by Section 6(i)(v)) the Collateral Agent of such registration by delivering, or causing to be delivered, to
the Collateral Agent, documentation sufficient for the Collateral Agent to perfect the Collateral Agent’s Liens on such Copyright.
If any Grantor acquires from any Person any Copyright registered with the United States Copyright Office or an application to register
any Copyright with the United States Copyright Office, such Grantor shall promptly (but in no event later than five Business Days following
such acquisition) notify the Collateral Agent of such acquisition and deliver, or cause to be delivered, to the Collateral Agent, documentation
sufficient for the Collateral Agent to perfect the Collateral Agent’s Liens on such Copyright. In the case of such Copyright registrations
or applications therefor which were acquired by any Grantor, each such Grantor shall promptly (but in no event later than five Business
Days following such acquisition) file the necessary documents with the appropriate Governmental Entity identifying the applicable Grantor
as the owner (or as a co-owner thereof, if such is the case) of such Copyrights.

 

    	 	-16-	 

    	 

    

 

(vii)      Each
Grantor shall take reasonable steps to maintain the confidentiality of, and otherwise protect and enforce its rights in, the Intellectual
Property that is necessary in the conduct of such Grantor’s business, including as applicable (A) protecting the secrecy and confidentiality
of its confidential information and trade secrets by having and enforcing a policy requiring all current employees, consultants, licensees,
vendors and contractors with access to such information to execute appropriate confidentiality agreements; (B) taking actions reasonably
necessary to ensure that no trade secret falls into the public domain; and (C) protecting the secrecy and confidentiality of the source
code of all software programs and applications of which it is the owner or licensee by having and enforcing a policy requiring any licensees
(or sublicensees) of such source code to enter into license agreements with commercially reasonable use and non-disclosure restrictions.

 

(viii)      No
Grantor shall enter into any Intellectual Property License to receive any license or rights in any Intellectual Property of any other
Person unless such Grantor has used commercially reasonable efforts to permit the assignment of or grant of a security interest in such
Intellectual Property License (and all rights of Grantor thereunder) to the Collateral Agent (and any transferees of the Collateral Agent).

 

(j)       Deposit,
Commodities and Securities Accounts. Each Grantor shall cause each bank and other financial institution with an account referred to
in Schedule VII to execute and deliver to the Collateral Agent (or its designee), subject to Section 6(l) and the Post-Closing
Agreement, a control agreement, in form and substance satisfactory to the Collateral Agent, duly executed by such Grantor and such bank
or financial institution, or enter into other arrangements in form and substance satisfactory to the Collateral Agent, pursuant to which
such institution shall irrevocably agree, among other things, that (i) it will comply at any time with the instructions originated
by the Collateral Agent (or its designee) to such bank or financial institution directing the disposition of cash, Commodity Contracts,
securities, Investment Property and other items from time to time credited to such account, without further consent of such Grantor, which
instructions the Collateral Agent (or its designee) will not give to such bank or other financial institution in the absence of a continuing
Event of Default and which the Collateral Agent (or its designee) will immediately withdraw if no Event of Default is continuing, (ii) all
cash, Commodity Contracts, securities, Investment Property and other items of such Grantor deposited with such institution shall be subject
to a perfected, first priority security interest in favor of the Collateral Agent (or its designee), (iii) any right of set off (other
than recoupment of standard fees), banker’s Lien or other similar Lien, security interest or encumbrance shall be fully waived as
against the Collateral Agent (or its designee), and (iv) upon receipt of written notice from the Collateral Agent during the continuance
of an Event of Default, such bank or financial institution shall promptly send to the Collateral Agent (or its designee) by wire transfer
(to such account as the Collateral Agent (or its designee) shall specify, or in such other manner as the Collateral Agent (or its designee)
shall direct) all such cash, the value of any Commodity Contracts, securities, Investment Property and other items held by it, provided,
however, that arrangements will be made to allow any derivative contracts to be fulfilled. Without the prior written consent of the Collateral
Agent, no Grantor shall make or maintain any Deposit Account, Commodity Account or Securities Account except for the accounts set forth
in Schedule VII. The provisions of this Section 6(j) shall not apply to Excluded Accounts.

 

    	 	-17-	 

    	 

    

 

(k)       Titled
Collateral. At the request of the Collateral Agent, each Grantor shall (a) cause all Collateral, now owned or hereafter acquired by
any Grantor, which under applicable Law are required to be registered and has a value in excess of $25,000, to be properly registered
in the name of such Grantor, (b) cause all Titled Collateral with a value in excess of $25,000, to be properly titled in the name of such
Grantor, and if requested by the Collateral Agent, with the Collateral Agent’s Lien noted thereon and (c) if requested by the Collateral
Agent, promptly deliver to the Collateral Agent (or its custodian) originals of all such Certificates of Title or certificates of ownership
for such Titled Collateral a value in excess of $25,000, with the Collateral Agent’s Lien noted thereon, and take such other actions
as may be reasonably required by the Collateral Agent.

 

(l)       Control.
Each Grantor hereby agrees to take any or all action that may be necessary or desirable or that the Collateral Agent may request in order
for the Collateral Agent to obtain control in accordance with Sections 9-104, 9-105, 9-106, and 9-107 of the Code with respect to the
following Collateral: (i) Deposit Accounts, (ii) Securities Accounts, (iii) Electronic Chattel Paper, (iv) Investment Property and
(v) Letter-of-Credit Rights. Each Grantor hereby acknowledges and agrees that any agent or designee of the Collateral Agent shall be
deemed to be a “secured party” with respect to the Collateral under the control of such agent or designee for all purposes.
Notwithstanding anything in this Agreement to the contrary, so long as no Event of Default has occurred and is then continuing, the Grantors
shall not be required to maintain a control account agreement for the benefit of the Agent in respect of any Deposit Account that contains
$25,000 or less in cash at any time and in respect of any Security Account that contains $10,000 or less in securities and cash at any
time; provided that any Deposit Account may contain in excess of $25,000 for a period not to exceed two Business Days, and any Security
Account may contain in excess of $10,000 for a period not to exceed ten Business Days, so long as Grantors are making diligent efforts
to transfer such cash or securities to a Deposit Account or Security Account that is subject to a control account agreement, or obtain
a deposit account control agreement or securities account control agreement covering such Deposit Account or Security Account within
such applicable period. 

 

    	 	-18-	 

    	 

    

 

(m)      Records;
Inspection and Reporting.

 

(i)         Each
Grantor shall keep adequate records concerning the Accounts, Chattel Paper and Pledged Interests. Each Grantor shall permit the Collateral
Agent, or any agents or representatives thereof or such professionals or other Persons as the Collateral Agent may designate (A) to
examine and make copies of and abstracts from such Grantor’s books and records, (B) to visit and inspect its properties, (C) to
verify materials, leases, notes, Accounts, Inventory and other assets of such Grantor from time to time, (D) to conduct audits, appraisals
and valuations or examinations at the locations of such Grantor and (E) to discuss such Grantor’s affairs, finances and accounts
with any of its directors, officers, managerial employees, independent accountants or any of its other representatives, and otherwise
as provided in the Purchase Agreement.

 

(ii)       No
Grantor shall, without the prior written consent of the Collateral Agent, which consent shall not be unreasonably withheld, delayed or
conditioned, change (A) its name, identity or organizational structure, (B) its jurisdiction of incorporation or organization as set forth
in Schedule I or (C) its chief executive office as set forth in Schedule VI. Each Grantor shall promptly notify the Collateral
Agent upon obtaining an organizational identification number, if on the date hereof such Grantor did not have such identification number.

 

Section
7.      Voting Rights, Dividends, Etc. in Respect of the Pledged Interests.

 

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

 

(i)         each
Grantor may exercise any and all voting and other consensual rights pertaining to any Pledged Interests for any purpose not inconsistent
with the terms of this Agreement, the Purchase Agreement, the Notes or the other Transaction Documents; provided, however,
that (A) each Grantor will give the Collateral Agent at least five Business Days’ notice of the manner in which it intends to exercise,
or the reasons for refraining from exercising, any such right that could reasonably be expected to adversely affect in any material respect
the value, liquidity or marketability of any Collateral or the creation, perfection and priority of the Collateral Agent’s Lien;
and (B) none of the Grantors will exercise or refrain from exercising any such right, as the case may be, if the Collateral Agent gives
a Grantor notice that, in the Collateral Agent’s reasonable judgment, such action (or inaction) could reasonably be expected to
adversely affect in any material respect the value, liquidity or marketability of any Collateral or the creation, perfection and priority
of the Collateral Agent’s Lien; and

 

(ii)       each
of the Grantors may receive and retain any and all dividends, interest or other distributions paid in respect of the Pledged Interests
to the extent permitted by the Transaction Documents; provided, however, that any and all (A) dividends and interest paid
or payable other than in cash in respect of, and Instruments and other property received, receivable or otherwise distributed in respect
of or in exchange for, any Pledged Interests and (B) cash paid, payable or otherwise distributed in redemption of, or in exchange for,
any Pledged Interests, together with any dividend, interest or other distribution or payment which at the time of such payment was not
permitted by the Transaction Documents, shall be, and shall forthwith be delivered to the Collateral Agent, to hold as, Pledged Interests
and shall, if received by any of the Grantors, be received in trust for the benefit of the Collateral Agent, shall be segregated from
the other property or funds of the Grantors, and shall be forthwith delivered to the Collateral Agent in the exact form received with
any necessary indorsement and appropriate stock powers duly executed in blank, to be held by the Collateral Agent as Pledged Interests
and as further collateral security for the Secured Obligations; and

 

    	 	-19-	 

    	 

    

 

(iii)      the
Collateral Agent will execute and deliver (or cause to be executed and delivered) to a Grantor all such proxies and other instruments
as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights which it is entitled
to exercise pursuant to Section 7(a)(i) and to receive the dividends, interest or other distributions which it is authorized to
receive and retain pursuant to Section 7(a)(ii).

 

(b)       Upon
the occurrence and during the continuance of an Event of Default:

 

(i)         all
rights of each Grantor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to
Section 7(a)(i), and to receive the dividends, distributions, interest and other payments that it would otherwise be authorized
to receive and retain pursuant to Section 7(a)(ii), shall cease, and all such rights shall thereupon become vested in the Collateral
Agent, which shall thereupon have the sole right to exercise such voting and other consensual rights and to receive and hold as Pledged
Interests such dividends, distributions and interest payments;

 

(ii)       the
Collateral Agent is authorized to notify each debtor with respect to the Pledged Debt to make payment directly to the Collateral Agent
(or its designee) and may collect any and all moneys due or to become due to any Grantor in respect of the Pledged Debt, and each of the
Grantors hereby authorizes each such debtor to make such payment directly to the Collateral Agent (or its designee) without any duty of
inquiry;

 

(iii)      without
limiting the generality of the foregoing, the Collateral Agent may at its option exercise any and all rights of conversion, exchange,
subscription or any other rights, privileges or options pertaining to any of the Pledged Interests as if it were the absolute owner thereof,
including without limitation, the right to exchange, in its discretion, any and all of the Pledged Interests upon the merger, consolidation,
reorganization, recapitalization or other adjustment of any Pledged Issuer, or upon the exercise by any Pledged Issuer of any right, privilege
or option pertaining to any Pledged Interests, and, in connection therewith, to deposit and deliver any and all of the Pledged Interests
with any committee, depository, transfer agent, registrar or other designated agent upon such terms and conditions as it may determine;
and

 

(iv)       all
dividends, distributions, interest and other payments that are received by any of the Grantors contrary to the provisions of Section
7(b)(i) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of the Grantors,
and shall be forthwith paid over to the Collateral Agent as Pledged Interests in the exact form received with any necessary indorsement
and appropriate stock powers duly executed in blank, to be held by the Collateral Agent as Pledged Interests and as further collateral
security for the Secured Obligations. 

 

    	 	-20-	 

    	 

    

 

Section
8.      Additional Provisions Concerning the Collateral.

 

(a)       To
the maximum extent permitted by applicable Law, and for the purpose of taking any action that the Collateral Agent may deem necessary
or advisable to accomplish the purposes of this Agreement, each Grantor hereby (i) authorizes the Collateral Agent to execute any such
agreements, instruments or other documents in such Grantor’s name and to file such agreements, instruments or other documents in
such Grantor’s name and in any appropriate filing office, (ii) authorizes the Collateral Agent at any time and from time to
time to file, one or more financing or continuation statements and amendments thereto, relating to the Collateral (including without limitation,
any such financing statements that (A) describe the Collateral as “all assets” or “all personal property” (or
words of similar effect) or that describe or identify the Collateral by type or in any other manner as the Collateral Agent may determine,
regardless of whether any particular asset of such Grantor falls within the scope of Article 9 of the Uniform Commercial Code or whether
any particular asset of such Grantor constitutes part of the Collateral, and (B) contain any other information required by Part 5 of Article
9 of the Code for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including
without limitation, whether such Grantor is an organization, the type of organization and any organizational identification number issued
to such Grantor) and (iii) ratifies such authorization to the extent that the Collateral Agent has filed any such financing statements,
continuation statements, or amendments thereto, prior to the date hereof. A photocopy or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by Law.

 

(b)       Each
Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact and proxy, with full authority in the place and stead
of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral Agent’s discretion, to take any
action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement,
including without limitation, (i) to obtain and adjust insurance required to be paid to the Collateral Agent, (ii) to ask, demand, collect,
sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any Collateral,
(iii) to receive, endorse, and collect any drafts or other Instruments, Documents and Chattel Paper in connection with clause (i) or (ii)
above, (iv) to receive, indorse and collect all Instruments made payable to such Grantor representing any dividend, interest payment or
other distribution in respect of any Pledged Interests and to give full discharge for the same, (v) to file any claims or take any action
or institute any proceedings which the Collateral Agent may deem necessary or desirable for the collection of any Collateral or otherwise
to enforce the rights of each Secured Party with respect to any Collateral, (vi) to execute assignments, licenses and other documents
to enforce the rights of each Secured Party with respect to any Collateral, (vii) to pay or discharge taxes or Liens levied or placed
upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined
by the Collateral Agent in its sole discretion, and such payments made by the Collateral Agent to become Secured Obligations of such Grantor
to the Collateral Agent, due and payable immediately upon demand, and (viii) to sign and endorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, assignments, verifications and notices in connection with Accounts, Chattel Paper and
other documents relating to the Collateral. This power is coupled with an interest and is irrevocable until the date on which all of the
Secured Obligations have been indefeasibly paid in full in cash.

 

    	 	-21-	 

    	 

    

 

(c)       For
the purpose of enabling the Collateral Agent to exercise rights and remedies hereunder, at such time as the Collateral Agent shall be
lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby (i) grants to the Collateral Agent
an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to any Grantor) to use, assign, license
or sublicense any Intellectual Property now or hereafter owned by any Grantor, wherever the same may be located, including in such license
reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the
compilation or printout thereof; and (ii) assigns to the Collateral Agent, to the extent assignable, all of its rights to any Intellectual
Property now or hereafter licensed or used by any Grantor. Notwithstanding anything contained herein to the contrary, but subject to the
provisions of the Purchase Agreement that limit the right of a Grantor to dispose of its property and Section 6(i), so long as
no Event of Default shall have occurred and be continuing, each Grantor may exploit, use, enjoy, protect, license, sublicense, assign,
sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary course of its business. In furtherance
of the foregoing, unless an Event of Default shall have occurred and be continuing, the Collateral Agent shall from time to time, upon
the request of a Grantor, execute and deliver any instruments, certificates or other documents, in the form so requested, which such Grantor
shall have certified are appropriate (in such Grantor’s judgment) to allow it to take any action permitted above (including relinquishment
of the license provided pursuant to this clause (c) as to any Intellectual Property). Further, upon the date on which all of the Secured
Obligations have been indefeasibly paid in full in cash, the Collateral Agent (subject to Section 14(e)) shall release and reassign
to the Grantors all of the Collateral Agent’s right, title and interest in and to the Intellectual Property, and the Licenses, all
without recourse, representation or warranty whatsoever and at the Grantors’ sole expense. The exercise of rights and remedies hereunder
by the Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by any Grantor
in accordance with the second sentence of this clause (c). Each Grantor hereby releases the Collateral Agent from any claims, causes of
action and demands at any time arising out of or with respect to any actions taken or omitted to be taken by the Collateral Agent under
the powers of attorney granted herein other than actions taken or omitted to be taken through the Collateral Agent’s gross negligence
or willful misconduct, as determined by a final determination of a court of competent jurisdiction.

 

(d)       If
any Grantor fails to perform any agreement or obligation contained herein, the Collateral Agent may itself perform, or cause performance
of, such agreement or obligation, in the name of such Grantor or the Collateral Agent, and the expenses of the Collateral Agent incurred
in connection therewith shall be jointly and severally payable by the Grantors pursuant to Section 10 and shall be secured by the
Collateral.

 

(e)       The
powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty
upon it to exercise any such powers. Other than the exercise of reasonable care to assure the safe custody of any Collateral in its possession
and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to
the taking of any necessary steps to preserve rights against other parties or any other rights pertaining to any Collateral and shall
be relieved of all responsibility for any Collateral in its possession upon surrendering it or tendering surrender of it to any of the
Grantors (or whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct). The Collateral
Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral
is accorded treatment substantially equal to that which the Collateral Agent accords its own property, it being understood that the Collateral
Agent shall not have responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders
or other matters relating to any Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such matters. The
Collateral Agent shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value
thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee selected
by the Collateral Agent in good faith.

 

    	 	-22-	 

    	 

    

 

(f)       Anything
herein to the contrary notwithstanding (i) each Grantor shall remain liable under the Licenses and otherwise in respect of the Collateral
to the extent set forth therein to perform all of its obligations thereunder to the same extent as if this Agreement had not been executed,
(ii) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its obligations
under the Licenses or otherwise in respect of the Collateral, and (iii) the Collateral Agent shall not have any obligation or liability
by reason of this Agreement under the Licenses or otherwise in respect of the Collateral, nor shall the Collateral Agent be obligated
to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment
assigned hereunder.

 

(g)       The
Collateral Agent may at any time in its discretion (i) without notice to any Grantor, transfer or register in the name of the Collateral
Agent or any of its nominees any or all of the Pledged Interests, and (ii) exchange certificates or Instruments constituting Pledged Interests
for certificates or Instruments of smaller or larger denominations.

 

Section
9.      Remedies Upon Default. If any Event of Default shall have occurred and be continuing:

 

(a)       The
Collateral Agent may exercise in respect of the Collateral, in addition to any other rights and remedies provided for herein or otherwise
available to it, all of the rights and remedies of a secured party upon default under the Code (whether or not the Code applies to the
affected Collateral), and also may (i) take absolute control of the Collateral, including without limitation, transfer into the Collateral
Agent’s name or into the name of its nominee or nominees (to the extent the Collateral Agent has not theretofore done so) and thereafter
receive, for the benefit of each Secured Party, all payments made thereon, give all consents, waivers and ratifications in respect thereof
and otherwise act with respect thereto as though it were the outright owner thereof, (ii) require each Grantor to, and each Grantor
hereby agrees that it will at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as
directed by the Collateral Agent and make it available to the Collateral Agent at a place or places to be designated by the Collateral
Agent that is reasonably convenient to both parties, and the Collateral Agent may enter into and occupy any premises owned or leased by
any Grantor where the Collateral or any part thereof is located or assembled for a reasonable period in order to effectuate the Collateral
Agent’s rights and remedies hereunder or under Law, without obligation to any Grantor in respect of such occupation, and (iii) without
notice except as specified below and without any obligation to prepare or process the Collateral for sale, (A) sell the Collateral
or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices, at any exchange
or broker’s board or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms
as the Collateral Agent may deem commercially reasonable or (B) lease, license or otherwise dispose of the Collateral or any part
thereof upon such terms as the Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale
or any other disposition of the Collateral shall be required by Law, at least ten (10) days’ prior notice to the applicable Grantor
of the time and place of any

 

    	 	-23-	 

    	 

    

 

public sale or the time after which any private sale or other disposition of the Collateral is to be made
shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale or other disposition of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.
Each Grantor hereby waives any claims against each Secured Party arising by reason of the fact that the price at which the Collateral
may have been sold at a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate
amount of the Secured Obligations, even if the Collateral Agent accepts the first offer received and does not offer the Collateral to
more than one offeree, and waives all rights that such Grantor may have to require that all or any part of the Collateral be marshaled
upon any sale (public or private) thereof. Each Grantor hereby acknowledges that (i) any such sale of the Collateral by the Collateral
Agent shall be made without warranty, (ii) the Collateral Agent may specifically disclaim any warranties of title, possession, quiet
enjoyment or the like, (iii) the Collateral Agent may bid (which bid may be, in whole or in part, in the form of cancellation of indebtedness),
if permitted by Law, for the purchase, lease, license or other disposition of the Collateral or any portion thereof for the account of
the Collateral Agent (on behalf of itself and each Secured Party) and (iv) such actions set forth in clauses (i), (ii) and (iii)
above shall not adversely affect the commercial reasonableness of any such sale of the Collateral. In addition to the foregoing, (i) upon
written notice to any Grantor from the Collateral Agent after and during the continuance of an Event of Default, such Grantor shall cease
any use of the Intellectual Property or any trademark, patent or copyright similar thereto for any purpose described in such notice; (ii)
the Collateral Agent may, at any time and from time to time after and during the continuance of an Event of Default, upon ten (10) days’
prior notice to any Grantor, license, whether general, special or otherwise, and whether on an exclusive or non-exclusive basis, any of
the Intellectual Property, throughout the universe for such term or terms, on such conditions, and in such manner, as the Collateral Agent
shall in its sole discretion determine; and (iii) the Collateral Agent may, at any time, pursuant to the authority granted in Section
8 (such authority being effective upon the occurrence and during the continuance of an Event of Default), execute and deliver on behalf
of a Grantor, one or more instruments of assignment of the Intellectual Property (or any application or registration thereof), in form
suitable for filing, recording or registration in any country.

 

(b)       In
the event that the Collateral Agent determines to exercise its right to sell all or any part of the Pledged Interests pursuant to Section
9(a), each Grantor will, at such Grantor’s expense and upon request by the Collateral Agent: (i) execute and deliver, and cause
each issuer of such Pledged Interests and the directors and officers thereof to execute and deliver, all such instruments and documents,
and do or cause to be done all such other acts and things, as may be necessary or, in the opinion of the Collateral Agent, advisable to
register such Pledged Interests under the provisions of the Securities Act, and to cause the registration statement relating thereto to
become effective and to remain effective for such period as prospectuses are required by Law to be furnished, and to make all amendments
and supplements thereto and to the related prospectus which, in the reasonable opinion of the Collateral Agent, are necessary or advisable,
all in conformity with the requirements of the Securities Act and the rules and regulations of the SEC applicable thereto, (ii) cause
each issuer of such Pledged Interests to qualify such Pledged Interests under the state securities or “Blue Sky” Laws of each
jurisdiction, provided, that, such issuer shall not be required to qualify generally to do business in any jurisdiction where it is not
then so qualified, subject the issuer to any material tax in any such jurisdiction where it is not then so subject or file a general consent
to service of process in any such jurisdiction; and to use commercially reasonable efforts to obtain all necessary governmental approvals
for the sale of the Pledged Interests, as reasonably requested by the Collateral Agent, (iii) cause each Pledged Issuer to make available
to its securityholders, as soon as practicable, an earnings statement which will satisfy the provisions of Section 11(a) of the Securities
Act, and (iv) do or cause to be done all such other acts and things as may be reasonably necessary to make such sale of such Pledged Interests
valid and binding and in compliance with applicable Law.

 

    	 	-24-	 

    	 

    

 

(c)       Notwithstanding
the provisions of Section 9(b), each Grantor recognizes that the Collateral Agent may deem it impracticable to effect a public
sale of all or any part of the Pledged Shares or any other securities constituting Pledged Interests and that the Collateral Agent may,
therefore, determine to make one or more private sales of any such securities to a restricted group of purchasers who will be obligated
to agree, among other things, to acquire such securities for their own account, for investment and not with a view to the distribution
or resale thereof. Each Grantor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than
the prices and other terms which might have been obtained at a public sale and, notwithstanding the foregoing, agrees that if such private
sales are made in a commercially reasonable manner, then the Collateral Agent shall have no obligation to delay the sale of any such securities
for the period of time necessary to permit the issuer of such securities to register such securities for public sale under the Securities
Act. Each Grantor further acknowledges and agrees that any offer to sell such securities which has been (i) publicly advertised on a bona
fide basis in a newspaper or other publication of general circulation in the financial community of New York, New York (to the extent
that such an offer may be so advertised without prior registration under the Securities Act) or (ii) made privately in the manner described
above to not less than fifteen bona fide offerees shall be deemed to involve a “public disposition” for the purposes
of Section 9-610(c) of the Code (or any successor or similar, applicable statutory provision) as then in effect in the State of New York,
notwithstanding that such sale may not constitute a “public offering” under the Securities Act, and that the Collateral Agent
may, in such event, bid for the purchase of such securities.

 

(d)       Any
cash held by the Collateral Agent (or its agent or designee) as Collateral and all Cash Proceeds received by the Collateral Agent (or
its agent or designee) in respect of any sale of or collection from, or other realization upon, all or any part of the Collateral may,
in the discretion of the Collateral Agent, be held by the Collateral Agent (or its agent or designee) as collateral for, or then or at
any time thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to Section 10) in whole or in
part by the Collateral Agent against, all or any part of the Secured Obligations in such order as the Collateral Agent shall elect, consistent
with the provisions of the Purchase Agreement. Any surplus of such cash or Cash Proceeds held by the Collateral Agent (or its agent or
designee) and remaining after the date on which all of the Secured Obligations have been indefeasibly paid in full in cash, shall be paid
over to whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct.

 

    	 	-25-	 

    	 

    

 

(e)       In
the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which each Secured Party
is legally entitled, the Grantors shall be jointly and severally liable for the deficiency, together with interest thereon at the highest
rate specified in any applicable Transaction Document for interest on overdue principal thereof or such other rate as shall be fixed by
applicable Law, together with the costs of collection and the reasonable fees, costs, expenses and other client charges of any attorneys
employed by the Collateral Agent to collect such deficiency.

 

(f)        Each
Grantor hereby acknowledges that if the Collateral Agent complies with any applicable Law in connection with a disposition of the Collateral,
such compliance will not adversely affect the commercial reasonableness of any sale or other disposition of the Collateral.

 

(g)       The
Collateral Agent shall not be required to marshal any present or future collateral security (including but not limited to, this Agreement
and the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such collateral security
or other assurances of payment in any particular order, and all of the Collateral Agent’s rights hereunder and in respect of such
collateral security and other assurances of payment shall be cumulative and in addition to all other rights, however existing or arising.
To the extent that any Grantor lawfully may, such Grantor hereby agrees that it will not invoke any Law relating to the marshalling of
collateral which might cause delay in or impede the enforcement of the Collateral Agent’s rights under this Agreement or under any
other instrument creating or evidencing any of the Secured Obligations or under which any of the Secured Obligations is outstanding or
by which any of the Secured Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each
Grantor hereby irrevocably waives the benefits of all such Laws.

 

(h)       Each
Grantor irrevocably and unconditionally:

 

(i)         consents to
the appointment of pre-judgment or post-judgment receiver with all of the same powers that would otherwise be available to the Grantors,
including but not limited to the power to (A) hold, manage, control or dispose of the Collateral wherever located, (B) take any action
with respect to the Collateral to the maximum extent permitted by Law and (C) conduct a public or private sale of any or all of the Grantors’
right, title and interest in and to such Collateral, including any disposition of the Collateral to the Secured Parties in exchange for
cancellation of all or a portion of the Obligations;

 

(ii)       consents
that any such receiver can be appointed without a hearing or prior notice to the Grantors, provided, however, that the Collateral Agent
shall provide prompt notice to the Grantors after such appointment;

 

(iii)      agrees
not to oppose or otherwise interfere (directly or indirectly) with any effort by Collateral Agent to seek the appointment of a receiver;

 

(iv)      waives
any right to demand that a bond be posted in connection with the appointment of any such receiver, provided, however, that in the event
that no bond is posted, the Collateral Agent shall be responsible for ; and 

 

    	 	-26-	 

    	 

    

 

Section
10.     Indemnity and Expenses.

 

(a)       Each
Grantor jointly and severally agrees to defend, protect, indemnify and hold harmless the Collateral Agent and each other Indemnitee from
and against any and all claims, losses, damages, liabilities, obligations, penalties, fees, reasonable costs and expenses (including without
limitation, reasonable attorneys’ fees, costs, expenses and disbursements) incurred by the Collateral Agent or such Indemnitee to
the extent that they arise out of or otherwise result from or relate to or are in connection with this Agreement (including without limitation,
enforcement of this Agreement), except claims, losses or liabilities resulting solely and directly from the Collateral Agent’s or
such Indemnitee’s gross negligence or willful misconduct, as determined by a final judgment of a court of competent jurisdiction.

 

(b)       Each
Grantor jointly and severally agrees to pay to the Collateral Agent upon demand the amount of any and all costs and expenses, including
the reasonable fees, costs, expenses and disbursements of counsel for the Collateral Agent and of any experts and agents (including without
limitation, any collateral trustee which may act as agent of the Collateral Agent), which the Collateral Agent may incur in connection
with (i) the preparation, negotiation, execution, delivery, recordation, administration, amendment, waiver or other modification
or termination of this Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other
realization upon, any Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent hereunder, or (iv) the
failure by any Grantor to perform or observe any of the provisions hereof.

 

Section
11.    Notices, Etc. All notices and other communications provided for hereunder shall be given in accordance with the notice
provision of the Purchase Agreement.

 

Section
12.    Security Interest Absolute; Joint and Several Obligations.

 

(a)       All
rights of the Secured Parties, all Liens and all obligations of each of the Grantors hereunder shall be absolute and unconditional irrespective
of (i) any lack of validity or enforceability of the Purchase Agreement or the Notes, (ii) any change in the time, manner or place of
payment of, or in any other term in respect of, all or any of the Secured Obligations, or any other amendment or waiver of or consent
to any departure from the Purchase Agreement or the Notes, (iii) any exchange or release of, or non-perfection of any Lien on any Collateral,
or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations, or (iv)
any other circumstance that might otherwise constitute a defense available to, or a discharge of, any of the Grantors in respect of the
Secured Obligations. All authorizations and agencies contained herein with respect to any of the Collateral are irrevocable and powers
coupled with an interest.

 

(b)       Each
Grantor hereby waives (i) promptness and diligence, and (ii) any requirement that the Collateral Agent or any Secured Party protect, secure,
perfect or insure any security interest or other lien on any property subject thereto or exhaust any right or take any action against
any Grantor or any other Person or any collateral.

 

(c)       All
of the obligations of the Grantors hereunder are joint and several. The Collateral Agent may, in its sole and absolute discretion, enforce
the provisions hereof against any of the Grantors and shall not be required to proceed against all Grantors jointly or seek payment from
the Grantors ratably. In addition, the Collateral Agent may, in its sole and absolute discretion, select the Collateral of any one or
more of the Grantors for sale or application to the Secured Obligations, without regard to the ownership of such Collateral, and shall
not be required to make such selection ratably from the Collateral owned by all of the Grantors. The release or discharge of any Grantor
by the Collateral Agent shall not release or discharge any other Grantor from the obligations of such Person hereunder.

 

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Section
13.    The Collateral Agent

 

(a)       [Reserved]

 

(b)       Powers
and Duties. Each Investor irrevocably authorizes the Collateral Agent to take such action on such Investor’s behalf and to exercise
such powers, rights and remedies hereunder as are specifically delegated or granted to the Collateral Agent by the terms hereof and the
other Transaction Documents, together with such powers, rights and remedies as are reasonably incidental thereto. The Collateral Agent
shall have only those duties and responsibilities that are expressly specified herein or any other Transaction Documents. The Collateral
Agent may exercise such powers, rights and remedies and perform such duties by or through its agents or employees. The Collateral Agent
shall not have, by reason hereof or any of the other Transaction Documents, a fiduciary relationship in respect of, or any fiduciary duties
to, any Investor or any other Person; and nothing herein, expressed or implied, is intended to or shall be so construed as to impose upon
the Collateral Agent any obligations in respect hereof except as expressly set forth herein. The powers conferred on the Collateral Agent
hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. 
Except for the exercise of reasonable care in the accounting for moneys actually received by it hereunder, the Collateral Agent shall
have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights
pertaining to any Collateral.  The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation
of Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords
its own property.

 

(c)       General
Immunity.

 

(i)         No
Responsibility for Certain Matters. The Collateral Agent shall not be responsible to any Investor for the execution, effectiveness,
genuineness, validity, enforceability, collectability or sufficiency hereof or for any representations, warranties, recitals or statements
made herein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or
any other documents furnished or made by the Collateral Agent to the Investors or by or on behalf of any Grantor to the Collateral Agent
and the transactions contemplated hereby or for the financial condition or business affairs of the Grantor, or any other Person liable
for the payment of any Secured Obligations, nor shall the Collateral Agent be required to ascertain or inquire as to the performance or
observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Transaction Documents or as to
the existence or possible existence of any Event of Default or to make any disclosures with respect to the foregoing.

 

    	 	-28-	 

    	 

    

 

(ii)       Exculpatory
Provisions. Neither the Collateral Agent nor any of its officers, partners, directors, employees, attorneys or agents shall be liable
to the Investors for any action taken or omitted by the Collateral Agent under or in connection with any of the Transaction Documents
except to the extent caused by the Collateral Agent’s gross negligence or willful misconduct, as determined by a final, non-appealable
judgment of a court of competent jurisdiction. The Collateral Agent shall be entitled to refrain from any act or the taking of any action
(including the failure to take an action) in connection herewith or any of the other Transaction Documents or from the exercise of any
power, discretion or authority vested in it hereunder unless and until the Collateral Agent shall have received instructions in respect
thereof from the Investors and, upon receipt of such instructions from the Investors, the Collateral Agent shall be entitled to act or
(where so instructed) refrain from acting, or to exercise such power, discretion or authority, in accordance with such instructions, including
for the avoidance of doubt refraining from any action that, in its opinion or the opinion of its counsel, may be in violation of the automatic
stay under any debtor relief Laws. Without prejudice to the generality of the foregoing, (A) the Collateral Agent shall be entitled to
rely, and shall be fully protected in relying, upon any communication, instrument or document believed by it to be genuine and correct
and to have been signed or sent by the proper Person, and shall be entitled to rely and shall be protected in relying on opinions and
judgments of attorneys (who may be attorneys for a Grantor), accountants, experts and other professional advisors selected by it; and
(B) no Investor shall have any right of action whatsoever against the Collateral Agent as a result of the Collateral Agent acting or (where
so instructed) refraining from acting hereunder or any of the other Transaction Documents in accordance with the instructions of the Investors.

 

(iii)      Delegation
of Duties. The Collateral Agent may perform any and all of its duties and exercise its rights and powers under this Agreement by or
through any one or more sub-agents appointed by the Collateral Agent. The Collateral Agent and any such sub-agent may perform any and
all of its duties and exercise its rights and powers by or through their respective Affiliates. The exculpatory, indemnification and other
provisions of this Section 13 shall apply to any of the Affiliates of the Collateral Agent. All of the rights, benefits, and privileges
(including the exculpatory and indemnification provisions) of this Section 13 shall apply to any such sub-agent and to the Affiliates
of any such sub-agent, and shall apply to their respective activities as sub-agent as if such sub-agent and Affiliates were named herein.
Notwithstanding anything herein to the contrary, with respect to each sub-agent appointed by the Collateral Agent, (i) such sub-agent
shall be a third party beneficiary under this Agreement with respect to all such rights, benefits and privileges (including exculpatory
rights and rights to indemnification) and shall have all of the rights and benefits of a third party beneficiary, including an independent
right of action to enforce such rights, benefits and privileges (including exculpatory rights and rights to indemnification) directly,
without the consent or joinder of any other Person, against the Grantors and the Investors, (ii) such rights, benefits and privileges
(including exculpatory rights and rights to indemnification) shall not be modified or amended without the consent of such sub-agent, and
(iii) such sub-agent shall only have obligations to the Collateral Agent and not to the Grantors, any Investor or any other Person and
no Grantor, Investor, or any other Person shall have any rights, directly or indirectly, as a third party beneficiary or otherwise, against
such sub-agent.

 

(iv)       Agent
Entitled to Act as Investor. The agency hereby created shall in no way impair or affect any of the rights and powers of, or impose
any duties or obligations upon, Esousa in its individual capacity as an Investor. With respect to its financial advances to the Company,
the Collateral Agent shall have the same rights and powers hereunder as any other Investor and may exercise the same as if it were not
performing the duties and functions delegated to it hereunder, and the term “Investor” shall, unless the context clearly otherwise
indicates, include the Collateral Agent in its individual capacity. The Collateral Agent and its Affiliates may accept deposits from,
lend money to, own securities of, and generally engage in any kind of banking, trust, financial advisory or other business with any Grantor
or any of its Affiliates as if it were not performing the duties specified herein, and may accept fees and other consideration from such
Grantor for services in connection herewith and otherwise without having to account for the same to Investors.

 

    	 	-29-	 

    	 

    

 

(d)       Investors’
Representations, Warranties and Acknowledgment.

 

(i)         Each
Investor represents and warrants that it has made its own independent investigation of the financial condition and affairs of the Company
and that it has made and shall continue to make its own appraisal of the creditworthiness of the Company. The Collateral Agent shall not
have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf
of the Investors or to provide any Investor with any credit or other information with respect thereto, whether coming into its possession
before the execution of this Agreement or at any time or times thereafter, and the Collateral Agent shall not have any responsibility
with respect to the accuracy of or the completeness of any information produced by the Company and subsequently provided to the Investors
by the Company.

 

(ii)       Each
Investor, by delivering its signature page to this Agreement, shall be deemed to have acknowledged receipt of, and consented to and approved,
each collateral document in existence on the date of this Agreement.

 

(e)          Right
to Indemnity. Each Investor, according to its pro rata amount of Notes, severally agrees to indemnify the Collateral Agent, to the
extent that the Collateral Agent shall not have been reimbursed by the Grantors, for and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of
any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Collateral Agent in exercising its powers,
rights and remedies or performing its duties hereunder, or otherwise in its capacity as the Collateral Agent in any way relating to or
arising out of this Agreement; provided, no Investor shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Collateral Agent’s gross negligence
or willful misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction. If any indemnity furnished
to the Collateral Agent for any purpose shall, in the opinion of the Collateral Agent, be insufficient or become impaired, the Collateral
Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity
is furnished.

 

    	 	-30-	 

    	 

    

 

(f)           Successor
Collateral Agent. The Collateral Agent may resign at any time by giving prior written notice thereof to Investors and the Grantors,
and the Collateral Agent may be removed at any time with or without cause by an instrument or concurrent instruments in writing delivered
to the Grantors and the Collateral Agent signed by the Investors. The Collateral Agent shall have the right to appoint a financial institution
as Collateral Agent hereunder, subject to the reasonable satisfaction of the Grantors and the Investors and the Collateral Agent’s
resignation shall become effective on the earliest of (i) 30 days after delivery of the notice of resignation (regardless of whether a
successor has been appointed or not), (ii) the acceptance of such successor Collateral Agent by the Grantors and the Investors or (iii) such
other date, if any, agreed to by the Investors. Upon any such notice of resignation or any such removal, the Investors shall have the
right, upon five Business Days’ notice to the Collateral Agent, to appoint a successor Collateral Agent. Until a successor Collateral
Agent is so appointed by the Investors or the Collateral Agent, any collateral security held by Collateral Agent on behalf of the Investors
under the Collateral Documents shall continue to be held by the retiring Collateral Agent as nominee until such time as a successor Collateral
Agent is appointed. Upon the acceptance of any appointment as Collateral Agent hereunder by a successor Collateral Agent, that successor
Collateral Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed
Collateral Agent under this Agreements, and the retiring or removed Collateral Agent under this Agreement shall promptly (i) transfer
to such successor Collateral Agent all sums and all of its right, title and interest in and to all other items of Collateral held hereunder,
together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor
Collateral Agent under this Agreements, and (ii) execute and deliver to such successor Collateral Agent or otherwise authorize the
filing of such amendments to financing statements, and take such other actions, as may be necessary or appropriate in connection with
the assignment to such successor Collateral Agent of the security interests created hereunder, whereupon such retiring or removed Collateral
Agent shall be discharged from its duties and obligations under this Agreement. After any retiring or removed Collateral Agent’s
resignation or removal hereunder as the Collateral Agent, the provisions of this Agreement, shall inure to its benefit as to any actions
taken or omitted to be taken by it under this Agreement while it was the Collateral Agent hereunder.

 

(i)           Withholding
Taxes. To the extent required by any applicable law, the Collateral Agent may withhold from any payment to any Investor an amount
equivalent to any applicable withholding tax attributable to the amount paid to that Investor. If the Internal Revenue Service or any
other Governmental Entity asserts a claim that the Collateral Agent did not properly withhold tax from amounts paid to or for the account
of any Investor because the appropriate form was not delivered or was not properly executed or because such Investor failed to notify
the Collateral Agent of a change in circumstance which rendered the exemption from, or reduction of, withholding tax ineffective or for
any other reason, or if the Collateral Agent reasonably determines that a payment was made to a particular Investor pursuant to this Agreement
without deduction of applicable withholding tax from such payment, such Investor (and not the other Investors) shall indemnify the Collateral
Agent fully for all amounts paid, directly or indirectly, by the Collateral Agent as tax or otherwise, including any penalties or interest
and together with all expenses (including legal expenses, allocated internal costs and out-of-pocket expenses) incurred.

 

(g)           Collateral
Agent May File Bankruptcy Disclosure and Proofs of Claim. In case of the pendency of any proceeding under any debtor relief Laws relative
to the Grantors, the Collateral Agent (irrespective of whether the principal of any Secured Obligation shall then be due and payable as
herein expressed or by declaration or otherwise and irrespective of whether the Collateral Agent shall have made any demand on the Grantors)
shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

 

    	 	-31-	 

    	 

    

 

(i)       to
file a verified statement pursuant to rule 2019 of the Federal Rules of Bankruptcy Procedure that, in its sole opinion, complies with
such rule’s disclosure requirements for entities representing more than one creditor;

 

(ii)       to
file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Secured Obligations that
are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Investors and
the Collateral Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Collateral Agent
and its respective agents and counsel and all other amounts due the Collateral Agent hereunder) allowed in such judicial proceeding; and

 

(iii)       to
collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Investor to make such
payments to the Collateral Agent and, in the event that the Collateral Agent shall consent to the making of such payments directly to
the Investors, to pay to the Collateral Agent any amount due for the reasonable compensation, expenses, disbursements and advances of
the Collateral Agent and its agents and counsel, and any other amounts due the Collateral Agent hereunder. To the extent that the payment
of any such compensation, expenses, disbursements and advances of the Collateral Agent, its agents and counsel, and any other amounts
due the Collateral Agent hereunder out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the
Investors may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.

 

Nothing contained herein shall
be deemed to authorize the Collateral Agent to authorize or consent to or accept or adopt on behalf of any Investor any plan of reorganization,
arrangement, adjustment or composition affecting the Secured Obligations or the rights of any Investor or to authorize the Collateral
Agent to vote in respect of the claim of any Investor in any such proceeding.

 

Section
14. Miscellaneous.

 

(a)       No
amendment of any provision of this Agreement (including any Schedule attached hereto) shall be effective unless it is in writing and signed
by each Grantor affected thereby and the Collateral Agent, and no waiver of any provision of this Agreement, and no consent to any departure
by any Grantor therefrom, shall be effective unless it is in writing and signed by the Collateral Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given.

 

(b)       No
failure on the part of the Secured Parties to exercise, and no delay in exercising, any right hereunder or under any other Transaction
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The rights and remedies of the Secured Parties provided herein and in the other Transaction
Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by Law. The rights of the Secured
Parties under any Transaction Document against any party thereto are not conditional or contingent on any attempt by such Person to exercise
any of its rights under any other Transaction Document against such party or against any other Person, including but not limited to, any
Grantor.

 

    	 	-32-	 

    	 

    

 

(c)       This
Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to paragraph
(e) below, until the date on which all of the Secured Obligations have been indefeasibly paid in full in cash and (ii) be binding on each
Grantor and all other Persons who become bound as debtor to this Agreement in accordance with Section 9-203(d) of the Code, and shall
inure, together with all rights and remedies of the Secured Parties hereunder, to the benefit of the Secured Parties and their respective
successors, transferees and assigns. Without limiting the generality of clause (ii) of the immediately preceding sentence, the Secured
Parties may assign or otherwise transfer their respective rights and obligations under this Agreement and any other Transaction Document
to any other Person pursuant to the terms of the Purchase Agreement, and such other Person shall thereupon become vested with all of the
benefits in respect thereof granted to the Secured Parties herein or otherwise. Upon any such assignment or transfer, all references in
this Agreement to any Secured Party shall mean the assignee of any such Secured Party. None of the rights or obligations of any Grantor
hereunder may be assigned or otherwise transferred without the prior written consent of the Collateral Agent, and any such assignment
or transfer shall be null and void.

 

(d)       Upon
the date on which all of the Secured Obligations have been indefeasibly paid in full in cash, (i) subject to paragraph (e) below, this
Agreement and the security interests and licenses created hereby shall terminate and all rights to the Collateral shall revert to the
respective Grantor that granted such security interests hereunder and (ii) the Collateral Agent will, upon the Grantors’ request
and at the Grantors’ expense, without any representation, warranty or recourse whatsoever, (A) return to the Grantors (or whomsoever
shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct) such of the Collateral as shall not
have been sold or otherwise disposed of or applied pursuant to the terms hereof and (B) execute and deliver to the Grantors such documents
as the Grantors shall reasonably request to evidence such termination.

 

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

 

    	 	-33-	 

    	 

    

 

(f)       Upon
the execution and delivery, or authentication, by any Person of a security agreement supplement in substantially the form of Exhibit
C hereto (each a “Security Agreement Supplement”), (i) such Person shall be referred to as an “Additional
Grantor” and shall be and become a Grantor, and each reference in this Agreement to “Grantor” shall also mean
and be a reference to such Additional Grantor, and each reference in this Agreement and the other Transaction Documents to “Collateral”
shall also mean and be a reference to the Collateral of such Additional Grantor, and (ii) the supplemental Schedules I-XI attached
to each Security Agreement Supplement shall be incorporated into and become a part of and supplement Schedules I-XI, respectively,
hereto, and the Collateral Agent may attach such Schedules as supplements to such Schedules, and each reference to such Schedules shall
mean and be a reference to such Schedules, as supplemented pursuant hereto.

 

(g)       THIS
AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS REQUIRED BY
MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT OF PERFECTION OR
NON-PERFECTION OF THE SECURITY INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY
THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

(h)       EACH
GRANTOR HEREBY IRREVOCABLY CONSENTS TO AND WAIVES ANY RIGHT TO OBJECT TO OR OTHERWISE CONTEST THE APPOINTMENT OF A RECEIVER AFTER THE
OCCURRENCE OF AN EVENT OF DEFAULT. EACH GRANTOR (i) GRANTS SUCH WAIVER AND CONSENTS KNOWINGLY AFTER HAVING DISCUSSED THE IMPLICATIONS
THEREOF WITH COUNSEL, (ii) ACKNOWLEDGES THAT (A) THE UNCONTESTED RIGHT TO HAVE A RECEIVER APPOINTED FOR THE FOREGOING PURPOSES IS CONSIDERED
ESSENTIAL BY THE SECURED PARTIES IN CONNECTION WITH THE ENFORCEMENT OF THEIR RIGHTS AND REMEDIES HEREUNDER AND UNDER THE OTHER DOCUMENTS
EXECUTED IN CONNECTION HEREWITH, AND (B) THE AVAILABILITY OF SUCH APPOINTMENT AS A REMEDY UNDER THE FOREGOING CIRCUMSTANCES WAS A MATERIAL
FACTOR IN INDUCING THE SECURED PARTIES TO MAKE (AND COMMIT TO MAKE) THE LOAN TO THE COMPANY, AND (iii) AGREES TO ENTER INTO ANY AND ALL
STIPULATIONS IN ANY LEGAL ACTIONS, OR AGREEMENTS OR OTHER INSTRUMENTS IN CONNECTION WITH THE FOREGOING AND TO COOPERATE FULLY WITH THE
AGENTS OR INVESTORS IN CONNECTION WITH THE ASSUMPTION AND EXERCISE OF CONTROL BY THE RECEIVER OVER ALL OR ANY PORTION OF THE COLLATERAL.

 

(i)         In
addition to and without limitation of any of the foregoing, this Agreement shall be deemed to be a Transaction Document and shall otherwise
be subject to all of terms and conditions contained in Sections 11.5 and 11.6 of the Purchase Agreement, mutatis mutandi.

 

(j)         Each
Grantor irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding with
respect to this Agreement any special, exemplary, punitive or consequential damages.

 

    	 	-34-	 

    	 

    

 

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

 

(l)         Section
headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

(m)       This
Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which shall
be deemed an original, but all of such counterparts taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of this Agreement by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart.

 

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    	 	-35-	 

    	 

    

 

IN WITNESS WHEREOF, each Grantor
has caused this Agreement to be executed and delivered by its officer thereunto duly authorized, as of the date first above written.

 

	 	GRANTORS:
	 	 
	 	BitNile Holdings, Inc. 
	 	 
	 	 
	 	 
	 	By:  	                	 
	 	 	Name:
	 	 	Title:

 

 

 

	 	Ault Alliance, Inc. 
	 	 
	 	 
	 	 
	 	By:  	                	 
	 	 	Name:
	 	 	Title:

 

 

 

	 	digital power lending, llc 
	 	 
	 	 
	 	 
	 	By:  	                	 
	 	 	Name:
	 	 	Title:

 

 

 

	 	alliance cloud services, llc 
	 	 
	 	 
	 	 
	 	By:  	                	 
	 	 	Name:
	 	 	Title:

 

    	 	 	 

    	 

    

 

 

	 	PLEDGOR:
	 	 
	 	DIGITAL FARMS MANAGEMENT LLC
	 	 
	 	 
	 	 
	 	By:  	                	 
	 	 	Name:
	 	 	Title:

 

 

 

	ACCEPTED BY:
	 
	Esousa Holdings, LLC,
    as Collateral Agent
	 
	 
	 	 	 
	By:	                	 
	Name:	 Michael Wachs	 
	Title:    	 Managing Member

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