Document:

Exhibit 4.4

 

XFIT BRANDS, INC.

2014 Stock Incentive Plan

 

1.      Purpose.
   The purpose of the 2014 Stock Incentive Plan of XFit Brands, Inc. is to further align the interests of employees,
directors, and non-employee Consultants with those of the stockholders by providing incentive compensation opportunities tied to
the performance of the Common Stock and by promoting increased ownership of the Common Stock by such individuals. The Plan is also
intended to advance the interests of the Company and its stockholders by attracting, retaining and motivating key personnel upon
whose judgment, initiative and effort the successful conduct of the Company’s business is largely dependent.

 

2.      Definitions.
   Wherever the following capitalized terms are used in the Plan, they shall have the meanings specified below:

 

“Affiliate”
means (i) any entity that would be treated as an “affiliate” of the Company for purposes of Rule 12b-2 under the Exchange
Act and (ii) any joint venture or other entity in which the Company has a direct or indirect beneficial ownership interest representing
at least one-third (1/3) of the aggregate voting power of the equity interests of such entity or one-third (1/3) of the aggregate
fair market value of the equity interests of such entity, as determined by the Committee.

 

“Award”
means an award of a Stock Option, Stock Award, or Restricted Stock Award granted under the Plan.

 

“Award
Agreement” means a written or electronic agreement entered into between the Company and a Participant setting forth the
terms and conditions of an Award granted to a Participant.

 

“Board”
means the Board of Directors of the Company.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Common
Stock” means the Company’s common stock, $0.0001 par value per share.

 

“Committee”
means the Compensation Committee of the Board, or such other committee of the Board appointed by the Board to administer the Plan,
or if no such committee exists, the Board.

 

“Company”
means XFit Brands, Inc., a Nevada corporation.

 

“Consultant”
means any person which is a consultant or advisor to the Company and
which is a natural person and who provides bona fide services to the Company which are not in connection with the offer or sale
of securities in a capital-raising transaction for the Company, and do not directly or indirectly promote or maintain a market
for the Company’s securities.

 

“Date
of Grant” means the date on which an Award under the Plan is made by the Committee, or such later date as the Committee
may specify to be the effective date of an Award.

 

“Disability”
means a Participant being considered “disabled” within the meaning of Section 409A(a)(2)(C) of the Code, unless otherwise
provided in an Award Agreement.

 

“Eligible
Person” means any person who is an employee of the Company or any Affiliate or any person to whom an offer of employment
with the Company or any Affiliate is extended, as determined by the Committee, or any person who is a Non-Employee Director, or
any person who is Consultant to the Company.

 

    	 

    	 

    

 

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

 

“Fair
Market Value” means the mean between the highest and lowest reported sales prices of the Common Stock on the New York
Stock Exchange Composite Tape or, if not listed on such exchange, on any other national securities exchange on which the Company’s
common stock is listed or on The Nasdaq Stock Market, or, if not so listed on any other national securities exchange or The Nasdaq
Stock Market, then the average of the bid price of the Company’s common stock during the last five trading days on the OTC
Bulletin Board or OTC Markets immediately preceding the last trading day prior to the date with respect to which the Fair Market
Value is to be determined. If the Company’s common stock is not then publicly traded, then the Fair Market Value of the Common
Stock shall be the book value of the Company per share as determined on the last day of March, June, September, or December in
any year closest to the date when the determination is to be made. For the purpose of determining book value hereunder, book value
shall be determined by adding as of the applicable date called for herein the capital, surplus, and undivided profits of the Company,
and after having deducted any reserves theretofore established; the sum of these items shall be divided by the number of shares
of the Company’s common stock outstanding as of said date, and the quotient thus obtained shall represent the book value
of each share of the Company’s common stock.

 

“Incentive
Stock Option” means a Stock Option granted under Section 6 hereof that is intended to meet the requirements of Section
422 of the Code and the regulations thereunder.

 

“Non-Employee
Director” means any member of the Board who is not an employee of the Company.

 

“Nonqualified
Stock Option” means a Stock Option granted under Section 6 hereof that is not an Incentive Stock Option.

 

“Participant”
means any Eligible Person who holds an outstanding Award under the Plan.

 

“Plan”
means the 2014 Stock Incentive Plan of XFit Brands, Inc. as set forth herein, as amended from time to time.

 

“Restricted
Stock Award” means a grant of shares of Common Stock to an Eligible Person under Section 8 hereof that is issued subject
to such vesting and transfer restrictions as the Committee shall determine and set forth in an Award Agreement.

 

“Service”
means a Participant’s employment with the Company or any Affiliate or a Participant’s service as a Non-Employee Director
with the Company, as applicable.

 

“Stock
Award” means a grant of shares of Common Stock to an Eligible Person under Section 7 hereof that are issued free of transfer
restrictions and forfeiture conditions.

 

“Stock
Option” means a contractual right granted to an Eligible Person under Section 6 hereof to purchase shares of Common Stock
at such time and price, and subject to such conditions, as are set forth in the Plan and the applicable Award Agreement.

 

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3.       Administration.

 

3.1    Committee
Members.    The Plan shall be administered by a Committee comprised of one or more members of the Board, or
if no such committee exists, the Board.

 

3.2    Committee
Authority.    The Committee shall have such powers and authority as may be necessary or appropriate for the
Committee to carry out its functions as described in the Plan. Subject to the express limitations of the Plan, the Committee shall
have authority in its discretion to determine the Eligible Persons to whom, and the time or times at which, Awards may be granted,
the number of shares, units or other rights subject to each Award, the exercise, base or purchase price of an Award (if any), the
time or times at which an Award will become vested, exercisable or payable, the performance goals and other conditions of an Award,
the duration of the Award, and all other terms of the Award. Subject to the terms of the Plan, the Committee shall have the authority
to amend the terms of an Award in any manner that is not inconsistent with the Plan, provided that no such action shall adversely
affect the rights of a Participant with respect to an outstanding Award without the Participant’s consent. The Committee
shall also have discretionary authority to interpret the Plan, to make factual determinations under the Plan, and to make all other
determinations necessary or advisable for Plan administration, including, without limitation, to correct any defect, to supply
any omission or to reconcile any inconsistency in the Plan or any Award Agreement hereunder. The Committee may prescribe, amend,
and rescind rules and regulations relating to the Plan. The Committee’s determinations under the Plan need not be uniform
and may be made by the Committee selectively among Participants and Eligible Persons, whether or not such persons are similarly
situated. The Committee shall, in its discretion, consider such factors as it deems relevant in making its interpretations, determinations
and actions under the Plan including, without limitation, the recommendations or advice of any officer or employee of the Company
or such attorneys, consultants, accountants or other advisors as it may select. All interpretations, determinations and actions
by the Committee shall be final, conclusive, and binding upon all parties.

 

3.3    Delegation
of Authority.    The Committee shall have the right, from time to time, to delegate to one or more officers
of the Company the authority of the Committee to grant and determine the terms and conditions of Awards granted under the Plan,
subject to the requirements of state law and such other limitations as the Committee shall determine. In no event shall any such
delegation of authority be permitted with respect to Awards to any members of the Board or to any Eligible Person who is subject
to Rule 16b-3 under the Exchange Act or Section 162(m) of the Code. The Committee shall also be permitted to delegate, to any appropriate
officer or employee of the Company, responsibility for performing certain ministerial functions under the Plan. In the event that
the Committee’s authority is delegated to officers or employees in accordance with the foregoing, all provisions of the Plan
relating to the Committee shall be interpreted in a manner consistent with the foregoing by treating any such reference as a reference
to such officer or employee for such purpose. Any action undertaken in accordance with the Committee’s delegation of authority
hereunder shall have the same force and effect as if such action was undertaken directly by the Committee and shall be deemed for
all purposes of the Plan to have been taken by the Committee.

 

4.      Shares
Subject to the Plan. 

 

4.1    Maximum
Share Limitations.    Subject to Section 4.3 hereof, the maximum aggregate number of shares of Common Stock
that may be issued and sold under all Awards granted under the Plan shall be six hundred thousand (600,000) shares. Shares of Common
Stock issued and sold under the Plan may be either authorized but unissued shares or shares held in the Company’s treasury.
To the extent that any Award involving the issuance of shares of Common Stock is forfeited, cancelled, returned to the Company
for failure to satisfy vesting requirements or other conditions of the Award, or otherwise terminates without an issuance of shares
of Common Stock being made thereunder, the shares of Common Stock covered thereby will no longer be counted against the foregoing
maximum share limitations and may again be made subject to Awards under the Plan pursuant to such limitations. Any Awards or portions
thereof that are settled in cash and not in shares of Common Stock shall not be counted against the foregoing maximum share limitations.

 

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4.2    Adjustments.
   If there shall occur any change with respect to the outstanding shares of Common Stock by reason of any recapitalization,
reclassification, stock dividend, extraordinary dividend, stock split, reverse stock split or other distribution with respect to
the shares of Common Stock, or any merger, reorganization, consolidation, combination, spin-off or other similar corporate change,
or any other change affecting the Common Stock, the Committee may, in the manner and to the extent that it deems appropriate and
equitable to the Participants and consistent with the terms of the Plan, cause an adjustment to be made in (i) the maximum number
and kind of shares provided in Section 4.1 hereof, (ii) the number and kind of shares of Common Stock, or other rights subject
to then outstanding Awards, (iii) the exercise or base price for each share or other right subject to then outstanding Awards,
and (iv) any other terms of an Award that are affected by the event. Notwithstanding the foregoing, in the case of Incentive Stock
Options, any such adjustments shall, to the extent practicable, be made in a manner consistent with the requirements of Section
424(a) of the Code.

 

4.3   Anti-Dilution.
Notwithstanding anything contained in the Plan to cover the contrary, including any adjustments discussed in this Section 4, the
maximum aggregate number of shares of Common Stock that may be issued and sold under all Awards granted under the Plan shall be
anti-dilutive in the event of a reverse stock split by the Company and shall not result in any reduction in the number of shares
available and authorized under the Plan at the effective time of such reverse stock split(s).

 

5.      Participation
and Awards.

 

5.1    Designations
of Participants.    All Eligible Persons are eligible to be designated by the Committee to receive Awards and
become Participants under the Plan. The Committee has the authority, in its discretion, to determine and designate from time to
time those Eligible Persons who are to be granted Awards, the types of Awards to be granted and the number of shares of Common
Stock or units subject to Awards granted under the Plan. In selecting Eligible Persons to be Participants and in determining the
type and amount of Awards to be granted under the Plan, the Committee shall consider any and all factors that it deems relevant
or appropriate.

 

5.2    Determination
of Awards.    The Committee shall determine the terms and conditions of all Awards granted to Participants in
accordance with its authority under Section 3.2 hereof. An Award may consist of one type of right or benefit hereunder or of two
or more such rights or benefits granted in tandem or in the alternative. In the case of any fractional share or unit resulting
from the grant, vesting, payment or crediting of dividends or dividend equivalents under an Award, the Committee shall have the
discretionary authority to (i) disregard such fractional share or unit, (ii) round such fractional share or unit to the nearest
lower or higher whole share or unit, or (iii) convert such fractional share or unit into a right to receive a cash payment. To
the extent deemed necessary by the Committee, an Award shall be evidenced by an Award Agreement as described in Section 11.1 hereof.

 

6.      Stock
Options. 

 

6.1    Grant
of Stock Options.    A Stock Option may be granted to any Eligible Person selected by the Committee. Subject
to the provisions of Section 6.8 hereof and Section 422 of the Code, each Stock Option shall be designated, in the discretion of
the Committee, as an Incentive Stock Option or as a Nonqualified Stock Option.

 

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6.2    Exercise
Price.    The exercise price per share of a Stock Option shall not be less than 85 percent of the Fair Market
Value of the shares of Common Stock on the Date of Grant, provided that the Committee may in its discretion specify for any Stock
Option an exercise price per share that is higher than the Fair Market Value on the Date of Grant, except that the price shall
not be less than 110 percent of the Fair Market Value in the case of any person who owns securities possessing more than 10 percent
of the total combined voting power of all classes of securities of the Company.

 

6.3    Vesting
of Stock Options.    The Committee shall in its discretion prescribe the time or times at which, or the conditions
upon which, a Stock Option or portion thereof shall become vested and/or exercisable, and may accelerate the vesting or exercisability
of any Stock Option at any time, provided, however, that any Stock Option shall vest at the rate of at least twenty percent (20%)
per year over five (5) years from the date the Stock Option is granted, subject to reasonable conditions as may be provided for
in the Award Agreement. However, in the case of a Stock Option granted to officers, Non-employee Directors, managers or Consultants
of the Company, the Stock Option may become fully exercisable, subject to reasonable conditions, at anytime or during any period
established by the Company. The requirements for vesting and exercisability of a Stock Option may be based on the continued Service
of the Participant with the Company or its Affiliates for a specified time period (or periods) or on the attainment of specified
performance goals established by the Committee in its discretion.

 

6.4    Term
of Stock Options.    The Committee shall in its discretion prescribe in an Award Agreement the period during
which a vested Stock Option may be exercised, provided that the maximum term of a Stock Option shall be ten years from the Date
of Grant. Except as otherwise provided in this Section 6 or as otherwise may be provided by the Committee, no Stock Option issued
to an employee or a Non-Employee Director of the Company may be exercised at any time during the term thereof unless the employee
or a Non-Employee Director Participant is then in the Service of the Company or one of its Affiliates.

 

6.5    Termination
of Service.    Subject to Section 6.8 hereof with respect to Incentive Stock Options, the Stock Option of any
Participant whose Service with the Company or one of its Affiliates is terminated for any reason shall terminate on the earlier
of (A) the date that the Stock Option expires in accordance with its terms or (B) unless otherwise provided in an Award Agreement,
and except for termination for cause (as described in Section 10.2 hereof), the expiration of the applicable time period following
termination of Service, in accordance with the following: (1) twelve months if Service ceased due to Disability, (2) eighteen months
if Service ceased at a time when the Participant is eligible to elect immediate commencement of retirement benefits at a specified
retirement age under a pension plan to which the Company or any of its Affiliates had made contributions, (3) eighteen months if
the Participant died while in the Service of the Company or any of its Affiliates, or (iv) three months if Service ceased for any
other reason. During the foregoing applicable period, except as otherwise specified in the Award Agreement or in the event Service
was terminated by the death of the Participant, the Stock Option may be exercised by such Participant in respect of the same number
of shares of Common Stock, in the same manner, and to the same extent as if he or she had remained in the continued Service of
the Company or any Affiliate during the first three months of such period; provided that no additional rights shall vest after
such three months. The Committee shall have authority to determine in each case whether an authorized leave of absence shall be
deemed a termination of Service for purposes hereof, as well as the effect of a leave of absence on the vesting and exercisability
of a Stock Option. Unless otherwise provided by the Committee, if an entity ceases to be an Affiliate of the Company or otherwise
ceases to be qualified under the Plan or if all or substantially all of the assets of an Affiliate of the Company are conveyed
(other than by encumbrance), such cessation or action, as the case may be, shall be deemed for purposes hereof to be a termination
of the Service.

 

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6.6    Stock
Option Exercise; Tax Withholding.    Subject to such terms and conditions as shall be specified in an Award
Agreement, a Stock Option may be exercised in whole or in part at any time during the term thereof by notice in the form required
by the Company, together with payment of the aggregate exercise price therefor and applicable withholding tax. Payment of the exercise
price shall be made in the manner set forth in the Award Agreement, unless otherwise provided by the Committee: (i) in cash or
by cash equivalent acceptable to the Committee, (ii) by payment in shares of Common Stock that have been held by the Participant
for at least six months (or such period as the Committee may deem appropriate, for accounting purposes or otherwise) valued at
the Fair Market Value of such shares on the date of exercise, (iii) through an open-market, broker-assisted sales transaction pursuant
to which the Company is promptly delivered the amount of proceeds necessary to satisfy the exercise price, (iv) by a combination
of the methods described above or (v) by such other method as may be approved by the Committee and set forth in the Award Agreement.
In addition to and at the time of payment of the exercise price, the Participant shall pay to the Company the full amount of any
and all applicable income tax, employment tax and other amounts required to be withheld in connection with such exercise, payable
under such of the methods described above for the payment of the exercise price as may be approved by the Committee and set forth
in the Award Agreement.

 

6.7    Limited
Transferability of Nonqualified Stock Options.    All Stock Options shall be nontransferable except (i) upon
the Participant’s death, in accordance with Section 11.2 hereof or (ii) in the case of Nonqualified Stock Options only, for
the transfer of all or part of the Stock Option to a Participant’s “family member” (as defined for purposes of
the Form S-8 registration statement under the Securities Act of 1933), as may be approved by the Committee in its discretion at
the time of proposed transfer. The transfer of a Nonqualified Stock Option may be subject to such terms and conditions as the Committee
may in its discretion impose from time to time. Subsequent transfers of a Nonqualified Stock Option shall be prohibited other than
in accordance with Section 11.2 hereof.

 

6.8    Additional
Rules for Incentive Stock Options. 

 

(a)    Eligibility.
   An Incentive Stock Option may only be granted to an Eligible Person who is considered an employee for purposes
of Treasury Regulation §1.421-7(h) with respect to the Company or any Affiliate that qualifies as a “subsidiary corporation”
with respect to the Company for purposes of Section 424(f) of the Code.

 

(b)     Termination
of Employment.    An Award of an Incentive Stock Option may provide that such Stock Option may be exercised
not later than 3 months following termination of employment of the Participant with the Company and all Subsidiaries, or not later
than one year following a permanent and total disability within the meaning of Section 22(e)(3) of the Code, as and to the extent
determined by the Committee to comply with the requirements of Section 422 of the Code.

 

(c)    Other
Terms and Conditions; Nontransferability.    Any Incentive Stock Option granted hereunder shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as are deemed necessary or desirable by the Committee,
which terms, together with the terms of the Plan, shall be intended and interpreted to cause such Incentive Stock Option to qualify
as an “incentive stock option” under Section 422 of the Code. An Award Agreement for an Incentive Stock Option may
provide that such Stock Option shall be treated as a Nonqualified Stock Option to the extent that certain requirements applicable
to “incentive stock options” under the Code shall not be satisfied. An Incentive Stock Option shall by its terms be
nontransferable other than by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of
a Participant only by such Participant.

 

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(d)    Disqualifying
Dispositions.    If shares of Common Stock acquired by exercise of an Incentive Stock Option are disposed of
within two years following the Date of Grant or one year following the transfer of such shares to the Participant upon exercise,
the Participant shall, promptly following such disposition, notify the Company in writing of the date and terms of such disposition
and provide such other information regarding the disposition as the Company may reasonably require.

 

6.9    Repricing
Prohibited.    Subject to the adjustment provisions contained in Section 4.2 hereof, without the prior approval
of the Company’s stockholders, evidenced by a majority of votes cast, neither the Committee nor the Board shall cause the
cancellation, substitution or amendment of a Stock Option that would have the effect of reducing the exercise price of such a Stock
Option previously granted under the Plan, or otherwise approve any modification to such a Stock Option that would be treated as
a “repricing” under the then applicable rules, regulations, or listing requirements.

 

7.      Stock
Awards. 

 

7.1    Grant
of Stock Awards.    A Stock Award may be granted to any Eligible Person selected by the Committee. A Stock Award
may be granted for past services, in lieu of bonus or other cash compensation, as directors’ compensation or for any other
valid purpose as determined by the Committee. A Stock Award granted to an Eligible Person represents shares of Common Stock that
are issued without restrictions on transfer and other incidents of ownership and free of forfeiture conditions, except as otherwise
provided in the Plan and the Award Agreement. The deemed issuance price of shares of Common Stock subject to each Stock Award shall
not be less than 85 percent of the Fair Market Value of the Common Stock on the date of the grant. In the case of any person who
owns securities possessing more than ten percent of the combined voting power of all classes of securities of the issuer or its
parent or subsidiaries possessing voting power, the deemed issuance price of shares of Common Stock subject to each Stock Award
shall be at least 100 percent of the Fair Market Value of the Common Stock on the date of the grant. The Committee may, in connection
with any Stock Award, require the payment of a specified purchase price.

 

7.2    Rights
as Stockholder.    Subject to the foregoing provisions of this Section 7 and the applicable Award Agreement,
upon the issuance of the Common Stock under a Stock Award the Participant shall have all rights of a stockholder with respect to
the shares of Common Stock, including the right to vote the shares and receive all dividends and other distributions paid or made
with respect thereto.

 

8.      Restricted
Stock Awards.

 

8.1    Grant
of Restricted Stock Awards.    A Restricted Stock Award may be granted to any Eligible Person selected
by the Committee. The deemed issuance price of shares of Common Stock subject to each Restricted Stock Award shall not be less
than 85 percent of the Fair Market Value of the Common Stock on the date of the grant. In the case of any person who owns securities
possessing more than ten percent of the combined voting power of all classes of securities of the issuer or its parent or subsidiaries
possessing voting power, the deemed issuance price of shares of Common Stock subject to each Restricted Stock Award shall be at
least 100 percent of the Fair Market Value of the Common Stock on the date of the grant. The Committee may require the payment
by the Participant of a specified purchase price in connection with any Restricted Stock Award.

 

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8.2    Vesting
Requirements.    The restrictions imposed on shares granted under a Restricted Stock Award shall lapse
in accordance with the vesting requirements specified by the Committee in the Award Agreement, provided that the Committee may
accelerate the vesting of a Restricted Stock Award at any time. Such vesting requirements may be based on the continued Service
of the Participant with the Company or its Affiliates for a specified time period (or periods) or on the attainment of specified
performance goals established by the Committee in its discretion. If the vesting requirements of a Restricted Stock Award shall
not be satisfied, the Award shall be forfeited and the shares of Common Stock subject to the Award shall be returned to the Company.

 

8.3    Restrictions.    Shares
granted under any Restricted Stock Award may not be transferred, assigned or subject to any encumbrance, pledge, or charge until
all applicable restrictions are removed or have expired, unless otherwise allowed by the Committee. Failure to satisfy any applicable
restrictions shall result in the subject shares of the Restricted Stock Award being forfeited and returned to the Company. The
Committee may require in an Award Agreement that certificates representing the shares granted under a Restricted Stock Award bear
a legend making appropriate reference to the restrictions imposed, and that certificates representing the shares granted or sold
under a Restricted Stock Award will remain in the physical custody of an escrow holder until all restrictions are removed or have
expired.

 

8.4    Rights
as Stockholder.    Subject to the foregoing provisions of this Section 8 and the applicable Award Agreement,
the Participant shall have all rights of a stockholder with respect to the shares granted to the Participant under a Restricted
Stock Award, including the right to vote the shares and receive all dividends and other distributions paid or made with respect
thereto. The Committee may provide in an Award Agreement for the payment of dividends and distributions to the Participant at such
times as paid to stockholders generally or at the times of vesting or other payment of the Restricted Stock Award.

 

8.5    Section
83(b) Election.    If a Participant makes an election pursuant to Section 83(b) of the Code with respect
to a Restricted Stock Award, the Participant shall file, within 30 days following the Date of Grant, a copy of such election with
the Company and with the Internal Revenue Service, in accordance with the regulations under Section 83 of the Code. The Committee
may provide in an Award Agreement that the Restricted Stock Award is conditioned upon the Participant’s making or refraining
from making an election with respect to the Award under Section 83(b) of the Code.

 

9.      Change
in Control. 

 

9.1    Effect
of Change in Control.    Except to the extent an Award Agreement provides for a different result (in which case
the Award Agreement will govern and this Section 9 of the Plan shall not be applicable), notwithstanding anything elsewhere in
the Plan or any rules adopted by the Committee pursuant to the Plan to the contrary, if a Triggering Event shall occur within the
12-month period beginning with a Change in Control of the Company, then, effective immediately prior to such Triggering Event,
each outstanding Stock Option, to the extent that it shall not otherwise have become vested and exercisable, shall automatically
become fully and immediately vested and exercisable, without regard to any otherwise applicable vesting requirement.

 

9.2    Definitions

 

(a)    Cause.
   For purposes of this Section 9, the term “Cause” shall mean a determination by the Committee
that a Participant (i) has been convicted of, or entered a plea of nolo contendere to, a crime that constitutes a felony under
Federal or state law, (ii) has engaged in willful gross misconduct in the performance of the Participant’s duties to the
Company or an Affiliate or (iii) has committed a material breach of any written agreement with the Company or any Affiliate with
respect to confidentiality, noncompetition, nonsolicitation or similar restrictive covenant. Subject to the first sentence of Section
9.1 hereof, in the event that a Participant is a party to an employment agreement with the Company or any Affiliate that defines
a termination on account of “Cause” (or a term having similar meaning), such definition shall apply as the definition
of a termination on account of “Cause” for purposes hereof, but only to the extent that such definition provides the
Participant with greater rights. A termination on account of Cause shall be communicated by written notice to the Participant,
and shall be deemed to occur on the date such notice is delivered to the Participant.

 

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(b)    Change
in Control.    For purposes of this Section 9, a “Change in Control” shall be deemed to have occurred
upon:

 

(i) the
occurrence of an acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange
Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
a percentage of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Company Voting Securities”) (but excluding (1) any acquisition directly from the Company
(other than an acquisition by virtue of the exercise of a conversion privilege of a security that was not acquired directly from
the Company), (2) any acquisition by the Company or an Affiliate and (3) any acquisition by an employee benefit plan (or related
trust) sponsored or maintained by the Company or any Affiliate) (an “Acquisition”) that is thirty percent (30%) or
more of the Company Voting Securities;

 

(ii) at
any time during a period of two (2) consecutive years or less, individuals who at the beginning of such period constitute the Board
(and any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved
by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the
period or whose election or nomination for election was so approved) cease for any reason (except for death, Disability or voluntary
retirement) to constitute a majority thereof;

 

(iii)
an Acquisition that is fifty percent (50%) or more of the Company Voting Securities;

 

(iv) the
consummation of a merger, consolidation, reorganization or similar corporate transaction, whether or not the Company is the surviving
company in such transaction, other than a merger, consolidation, or reorganization that would result in the Persons who are beneficial
owners of the Company Voting Securities outstanding immediately prior thereto continuing to beneficially own, directly or indirectly,
in substantially the same proportions, at least fifty percent (50%) of the combined voting power of the Company Voting Securities
(or the voting securities of the surviving entity) outstanding immediately after such merger, consolidation or reorganization;

 

(v) the
sale or other disposition of all or substantially all of the assets of the Company;

 

(vi) the
approval by the stockholders of the Company of a complete liquidation or dissolution of the Company; or

 

(vii)
the occurrence of any transaction or event, or series of transactions or events, designated by the Board in a duly adopted resolution
as representing a change in the effective control of the business and affairs of the Company, effective as of the date specified
in any such resolution.

 

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(c)    Constructive
Termination.    For purposes of this Section 9, a “Constructive Termination” shall mean a termination
of employment by a Participant within sixty (60) days following the occurrence of any one or more of the following events without
the Participant’s written consent (i) any reduction in position, title (for Vice Presidents or above), overall responsibilities,
level of authority, level of reporting (for Vice Presidents or above), base compensation, annual incentive compensation opportunity,
aggregate employee benefits or (ii) a request that the Participant’s location of employment be relocated by more than fifty
(50) miles. Subject to the first sentence of Section 9.1 hereof, in the event that a Participant is a party to an employment agreement
with the Company or any Affiliate (or a successor entity) that defines a termination on account of “Constructive Termination,”
“Good Reason” or “Breach of Agreement” (or a term having a similar meaning), such definition shall apply
as the definition of “Constructive Termination” for purposes hereof in lieu of the foregoing, but only to the extent
that such definition provides the Participant with greater rights. A Constructive Termination shall be communicated by written
notice to the Committee, and shall be deemed to occur on the date such notice is delivered to the Committee, unless the circumstances
giving rise to the Constructive Termination are cured within five (5) days of such notice.

 

(d)    Triggering
Event.    For purposes of this Section 9, a “Triggering Event” shall mean (i) the termination of
Service of a Participant by the Company or an Affiliate (or any successor thereof) other than on account of death, Disability or
Cause, (ii) the occurrence of a Constructive Termination or (iii) any failure by the Company (or a successor entity) to assume,
replace, convert or otherwise continue any Award in connection with the Change in Control (or another corporate transaction or
other change effecting the Common Stock) on the same terms and conditions as applied immediately prior to such transaction, except
for equitable adjustments to reflect changes in the Common Stock pursuant to Section 4.2 hereof.

 

9.3    Excise
Tax Limit.    In the event that the vesting of Awards together with all other payments and the value of any
benefit received or to be received by a Participant would result in all or a portion of such payment being subject to the excise
tax under Section 4999 of the Code, then the Participant’s payment shall be either (i) the full payment or (ii) such lesser
amount that would result in no portion of the payment being subject to excise tax under Section 4999 of the Code (the “Excise
Tax”), whichever of the foregoing amounts, taking into account the applicable Federal, state, and local employment taxes,
income taxes, and the Excise Tax, results in the receipt by the Participant, on an after-tax basis, of the greatest amount of the
payment notwithstanding that all or some portion of the payment may be taxable under Section 4999 of the Code. All determinations
required to be made under this Section 9 shall be made by Accell Audit & Compliance P.A. or any other accounting firm which
is the Company’s outside auditor immediately prior to the event triggering the payments that are subject to the Excise Tax
(the “Accounting Firm”). The Company shall cause the Accounting Firm to provide detailed supporting calculations of
its determinations to the Company and the Participant. All fees and expenses of the Accounting Firm shall be borne solely by the
Company. The Accounting Firm’s determinations must be made with substantial authority (within the meaning of Section 6662
of the Code). For the purposes of all calculations under Section 280G of the Code and the application of this Section 9.3, all
determinations as to present value shall be made using 120 percent of the applicable Federal rate (determined under Section 1274(d)
of the Code) compounded semiannually.

 

10.      Forfeiture
Events. 

 

10.1    General.
   The Committee may specify in an Award Agreement at the time of the Award that the Participant’s rights,
payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence
of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events
shall include, but shall not be limited to, termination of Service for cause, violation of material Company policies, breach of
noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant
that is detrimental to the business or reputation of the Company.

 

    	Page 10 of 14

    	 

    

 

10.2    Termination
for Cause.    Unless otherwise provided by the Committee and set forth in an Award Agreement, if a Participant’s
employment with the Company or any Affiliate shall be terminated for cause, the Company may, in its sole discretion, immediately
terminate such Participant’s right to any further payments, vesting or exercisability with respect to any Award in its entirety.
In the event a Participant is party to an employment (or similar) agreement with the Company or any Affiliate that defines the
term “cause,” such definition shall apply for purposes of the Plan. The Company shall have the power to determine whether
the Participant has been terminated for cause and the date upon which such termination for cause occurs. Any such determination
shall be final, conclusive and binding upon the Participant. In addition, if the Company shall reasonably determine that a Participant
has committed or may have committed any act which could constitute the basis for a termination of such Participant’s employment
for cause, the Company may suspend the Participant’s rights to exercise any option, receive any payment or vest in any right
with respect to any Award pending a determination by the Company of whether an act has been committed which could constitute the
basis for a termination for “cause” as provided in this Section 10.2.

 

11.     General
Provisions. 

 

11.1    Award
Agreement.    To the extent deemed necessary by the Committee, an Award under the Plan shall be evidenced by
an Award Agreement in a written or electronic form approved by the Committee setting forth the number of shares of Common Stock
or units subject to the Award, the exercise price, base price, or purchase price of the Award, the time or times at which an Award
will become vested, exercisable or payable and the term of the Award. The Award Agreement may also set forth the effect on an Award
of termination of Service under certain circumstances. The Award Agreement shall be subject to and incorporate, by reference or
otherwise, all of the applicable terms and conditions of the Plan, and may also set forth other terms and conditions applicable
to the Award as determined by the Committee consistent with the limitations of the Plan. Award Agreements evidencing Incentive
Stock Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the
Code. The grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such
terms, and subject to such conditions, as are specified in the Plan as being applicable to such type of Award (or to all Awards)
or as are expressly set forth in the Award Agreement. The Committee need not require the execution of an Award Agreement by a Participant,
in which case, acceptance of the Award by the Participant shall constitute agreement by the Participant to the terms, conditions,
restrictions and limitations set forth in the Plan and the Award Agreement as well as the administrative guidelines of the Company
in effect from time to time.

 

11.2    No
Assignment or Transfer; Beneficiaries.    Except as provided in Section 6.7 hereof, Awards under the Plan shall
not be assignable or transferable by the Participant, except by will or by the laws of descent and distribution, and shall not
be subject in any manner to assignment, alienation, pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee
may provide in the terms of an Award Agreement that the Participant shall have the right to designate a beneficiary or beneficiaries
who shall be entitled to any rights, payments or other benefits specified under an Award following the Participant’s death.
During the lifetime of a Participant, an Award shall be exercised only by such Participant or such Participant’s guardian
or legal representative. In the event of a Participant’s death, an Award may to the extent permitted by the Award Agreement
be exercised by the Participant’s beneficiary as designated by the Participant in the manner prescribed by the Committee
or, in the absence of an authorized beneficiary designation, by the legatee of such Award under the Participant’s will or
by the Participant’s estate in accordance with the Participant’s will or the laws of descent and distribution, in each
case in the same manner and to the same extent that such Award was exercisable by the Participant on the date of the Participant’s
death.

 

    	Page 11 of 14

    	 

    

 

11.3    Deferrals
of Payment.    The Committee may in its discretion permit a Participant to defer the receipt of payment of cash
or delivery of shares of Common Stock that would otherwise be due to the Participant by virtue of the exercise of a right or the
satisfaction of vesting or other conditions with respect to an Award. If any such deferral is to be permitted by the Committee,
the Committee shall establish rules and procedures relating to such deferral in a manner intended to comply with the requirements
of Section 409A of the Code, including, without limitation, the time when an election to defer may be made, the time period of
the deferral and the events that would result in payment of the deferred amount, the interest or other earnings attributable to
the deferral and the method of funding, if any, attributable to the deferred amount.

 

11.4    Rights
as Stockholder.    A Participant shall have no rights as a holder of shares of Common Stock with respect to
any unissued securities covered by an Award until the date the Participant becomes the holder of record of such securities. Except
as provided in Section 4.2 hereof, no adjustment or other provision shall be made for dividends or other stockholder rights, except
to the extent that the Award Agreement provides for dividend payments or dividend equivalent rights.

 

11.5    Employment
or Service.    Nothing in the Plan, in the grant of any Award or in any Award Agreement shall confer upon any
Eligible Person any right to continue in the Service of the Company or any of its Affiliates, or interfere in any way with the
right of the Company or any of its Affiliates to terminate the Participant’s employment or other service relationship for
any reason at any time.

 

11.6    Securities
Laws.    No shares of Common Stock will be issued or transferred pursuant to an Award unless and until all then
applicable requirements imposed by Federal and state securities and other laws, rules and regulations and by any regulatory agencies
having jurisdiction, and by any exchanges upon which the shares of Common Stock may be listed, have been fully met. As a condition
precedent to the issuance of shares pursuant to the grant or exercise of an Award, the Company may require the Participant to take
any reasonable action to meet such requirements. The Committee may impose such conditions on any shares of Common Stock issuable
under the Plan as it may deem advisable, including, without limitation, restrictions under the Securities Act of 1933, as amended,
under the requirements of any exchange upon which such shares of the same class are then listed, and under any blue sky or other
securities laws applicable to such shares. The Committee may also require the Participant to represent and warrant at the time
of issuance or transfer that the shares of Common Stock are being acquired only for investment purposes and without any current
intention to sell or distribute such shares.

 

11.7    Tax
Withholding.    The Participant shall be responsible for payment of any taxes or similar charges required by
law to be withheld from an Award or an amount paid in satisfaction of an Award, which shall be paid by the Participant on or prior
to the payment or other event that results in taxable income in respect of an Award. The Award Agreement may specify the manner
in which the withholding obligation shall be satisfied with respect to the particular type of Award.

 

11.8    Unfunded
Plan.    The adoption of the Plan and any reservation of shares of Common Stock or cash amounts by the Company
to discharge its obligations hereunder shall not be deemed to create a trust or other funded arrangement. Except upon the issuance
of Common Stock pursuant to an Award, any rights of a Participant under the Plan shall be those of a general unsecured creditor
of the Company, and neither a Participant nor the Participant’s permitted transferees or estate shall have any other interest
in any assets of the Company by virtue of the Plan. Notwithstanding the foregoing, the Company shall have the right to implement
or set aside funds in a grantor trust, subject to the claims of the Company’s creditors or otherwise, to discharge its obligations
under the Plan.

 

    	Page 12 of 14

    	 

    

 

11.9    Other
Compensation and Benefit Plans.    The adoption of the Plan shall not affect any other share incentive or other
compensation plans in effect for the Company or any Affiliate, nor shall the Plan preclude the Company from establishing any other
forms of share incentive or other compensation or benefit program for employees of the Company or any Affiliate. The amount of
any compensation deemed to be received by a Participant pursuant to an Award shall not constitute includable compensation for purposes
of determining the amount of benefits to which a Participant is entitled under any other compensation or benefit plan or program
of the Company or an Affiliate, including, without limitation, under any pension or severance benefits plan, except to the extent
specifically provided by the terms of any such plan.

 

11.10    Plan
Binding on Transferees.    The Plan shall be binding upon the Company, its transferees and assigns, and the
Participant, the Participant’s executor, administrator and permitted transferees and beneficiaries.

 

11.11    Severability.
   If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by
any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance
with their terms, and all provisions shall remain enforceable in any other jurisdiction.

 

11.12    Foreign
Jurisdictions.    The Committee may adopt, amend and terminate such arrangements and grant such Awards, not
inconsistent with the intent of the Plan, as it may deem necessary or desirable to comply with any tax, securities, regulatory
or other laws of other jurisdictions with respect to Awards that may be subject to such laws. The terms and conditions of such
Awards may vary from the terms and conditions that would otherwise be required by the Plan solely to the extent the Committee deems
necessary for such purpose. Moreover, the Board may approve such supplements to or amendments, restatements or alternative versions
of the Plan, not inconsistent with the intent of the Plan, as it may consider necessary or appropriate for such purposes, without
thereby affecting the terms of the Plan as in effect for any other purpose.

 

11.13    Substitute
Awards in Corporate Transactions.    Nothing contained in the Plan shall be construed to limit the right of
the Committee to grant Awards under the Plan in connection with the acquisition, whether by purchase, merger, consolidation or
other corporate transaction, of the business or assets of any corporation or other entity. Without limiting the foregoing, the
Committee may grant Awards under the Plan to an employee or director of another corporation who becomes an Eligible Person by reason
of any such corporate transaction in substitution for awards previously granted by such corporation or entity to such person. The
terms and conditions of the substitute Awards may vary from the terms and conditions that would otherwise be required by the Plan
solely to the extent the Committee deems necessary for such purpose.

 

11.14 Governing
Law. The Plan and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Nevada,
without reference to the principles of conflicts of laws, and to applicable Federal securities laws.

 

11.15 Financial
Statements. All Participants shall receive the financial statements of the Company at least annually.  

 

    	Page 13 of 14

    	 

    

 

11.16  Performance
Based Awards.    For purposes of Stock Awards and Restricted Stock Awards granted under the Plan that are
intended to qualify as “performance-based” compensation under Section 162(m) of the Code, such Awards shall be granted
to the extent necessary to satisfy the requirements of Section 162(m) of the Code.

 

11.17   Stockholder
Approval.  The Plan must be approved by the stockholders by a majority of all shares entitled to vote within twelve (12) months
after the date the Plan was adopted by the Board. Any Incentive Stock Options granted before stockholder approval is obtained shall
be converted into Nonqualified Stock Options if stockholder approval is not obtained within twelve (12) months before or after
the Plan was adopted.

 

12.      Effective
Date; Amendment and Termination. 

 

12.1    Effective
Date.    The Plan shall become effective following its adoption by the Board. The term of the Plan shall be
ten (10) years from the date of adoption by the Board, subject to Section 12.3 hereof.

 

12.2    Amendment.
    The Board may at any time and from time to time and in any respect, amend or modify the Plan. The Board
may seek the approval of any amendment or modification by the Company’s stockholders to the extent it deems necessary or
advisable in its discretion for purposes of compliance with Section 162(m) or Section 422 of the Code, or exchange or securities
market or for any other purpose. No amendment or modification of the Plan shall adversely affect any Award theretofore granted
without the consent of the Participant or the permitted transferee of the Award.

 

12.3    Termination.
   The Plan shall terminate on the tenth anniversary of the date of its adoption by the Board. The Board may,
in its discretion and at any earlier date, terminate the Plan. Notwithstanding the foregoing, no termination of the Plan shall
adversely affect any Award theretofore granted without the consent of the Participant or the permitted transferee of the Award.

  

    	Page 14 of 14EXECUTION COPY

 

PLEDGE AND SECURITY AGREEMENT

 

dated as of June 12, 2014

 

between

THROWDOWN INDUSTRIES HOLDINGS, LLC

THROWDOWN INDUSTRIES, LLC

THROWDOWN INDUSTRIES, INC.

and

PIMCO FUNDS: PRIVATE ACCOUNT PORTFOLIO
SERIES: PIMCO HIGH YIELD PORTFOLIO, as Secured Party

  

    	 

    	 

    

 

TABLE OF
CONTENTS

 

	 	 	PAGE
	 	 	 
	Section 1.	DEFINITIONS	1
	 	 	 
	Section 2.	GRANT OF SECURITY	9
	 	 	 
	Section 3.	SECURITY FOR OBLIGATIONS	10
	 	 	 
	Section 4.	REPRESENTATIONS AND WARRANTIES AND COVENANTS	10
	 	 	 
	Section 5.	DIVIDENDS, DISTRIBUTIONS AND VOTING	26
	 	 	 
	Section 6.	ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES	27
	 	 	 
	Section 7.	SECURED PARTY APPOINTED ATTORNEY-IN-FACT, IRREVOCABLE POWER OF ATTORNEY	28
	 	 	 
	Section 8.	REMEDIES	29
	 	 	 
	Section 9.	CONTINUING SECURITY INTEREST; TRANSFER OF SECURED OBLIGATIONS	33
	 	 	 
	Section 10.	STANDARD OF CARE; SECURED PARTY MAY PERFORM	34
	 	 	 
	Section 11.	INDEMNITY AND EXPENSES	34
	 	 	 
	Section 12.	MISCELLANEOUS	35

 

	SCHEDULE I –	GENERAL INFORMATION
	SCHEDULE II –	LOCATION OF INVENTORY AND EQUIPMENT
	SCHEDULE III –	INVESTMENT RELATED PROPERTY
	SCHEDULE IV –	MATERIAL CONTRACTS
	SCHEDULE V –	LETTERS OF CREDIT
	SCHEDULE VI –	INTELLECTUAL PROPERTY
	SCHEDULE VII –	COMMERCIAL TORT CLAIMS
	 	 
	ANNEX A –	PLEDGE SUPPLEMENT

  

    	i

    	 

    

  

This PLEDGE AND SECURITY AGREEMENT,
dated as of June 12, 2014 (this “Agreement”), between each of the undersigned (the “Grantors”)
and PIMCO Funds: Private Account Portfolio Series: PIMCO High Yield Portfolio, a separate investment portfolio of PIMCO Funds,
a Massachusetts business trust (the “Secured Party”).

 

RECITALS:

 

WHEREAS, reference is made to that
certain Note Purchase Agreement, dated as of the date hereof (as it may be amended, restated, supplemented or otherwise modified
from time to time, the “Note Purchase Agreement”), by and among each Grantor and the Secured Party.

 

WHEREAS, in consideration of the extensions
of credit as set forth in the Note Purchase Agreement each Grantor has agreed to secure all obligations under the Note Purchase
Agreement.

 

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

 

Section
1.   DEFINITIONS

 

(a)   General
Definitions. In this Agreement, the following terms shall have the following meanings:

 

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

 

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

 

“Affiliate” shall
mean, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as applied to any Person, means the possession, directly
or indirectly, of the power (i) to vote 5% or more of the Securities having ordinary voting power for the election of directors
of such Person or (ii) to direct or cause the direction of the management and policies of that Person, whether through the ownership
of voting securities or by contract or otherwise.

 

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

 

“Authenticate” shall mean
“authenticate” as defined in Article 9 of the UCC.

 

“Bankruptcy Code” shall
mean Title 11 of the United States Code entitled “Bankruptcy”, as now and hereafter in effect, or any successor
statute.

 

“Cash Proceeds” shall mean
all proceeds of any Collateral consisting of cash, checks and other near-cash items.

 

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

 

“Closing Date” shall mean
the date on which the Note Purchase Agreement is made.

 

    	 

    	 

    

 

“Collateral” shall have
the meaning set forth in Section 2(a) hereof.

 

“Collateral Documents”
shall mean this Agreement and all other instruments, documents and agreements delivered by any of the parties to the Transaction
Documents pursuant to the Agreement or any other Transaction Document in order to grant, perfect and/or establish or maintain the
priority of a security interest in favor of the Secured Party on any real, personal or mixed property of such party as security
for the Secured Obligations.

 

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

 

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

 

“Commercial Tort Claims”
shall mean all “commercial tort claims” as defined in the UCC, including, without limitation, all commercial tort claims
listed and described with specification on Schedule VII hereto (as such Schedule may be amended or supplemented from
time to time).

 

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

 

“Copyright Licenses” shall
mean any and all agreements granting any right in, to or under Copyrights (whether such Grantor is licensee or licensor thereunder)
including, without limitation, each agreement referred to in Schedule VI(B) (as such Schedule may be amended or supplemented
from time to time).

 

“Copyrights” shall mean
all United States, state and foreign copyrights, including but not limited to copyrights in software and databases, and all Mask
Works (as defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or unregistered, now or hereafter in force
throughout the world, all registrations and applications for any of the foregoing including, without limitation, the applications
referred to in Schedule VI(A) (as such Schedule may be amended or supplemented from time to time), all rights corresponding
thereto throughout the world, all extensions and renewals of any thereof, the right to sue for past, present and future infringements
of any of the foregoing, and all proceeds of the foregoing, including, without limitation, licenses, royalties, income, payments,
claims, damages, and proceeds of suit.

 

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

 

“Dispose or Disposition”
shall have the meaning set forth in the Note Purchase Agreement.

 

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

 

    	2

    	 

    

 

“Documents Evidencing Goods”
shall mean all Documents evidencing, representing or issued in connection with Goods.

 

“Encumbrance” shall mean
(i) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give
any of the foregoing, any conditional sale or other Title retention agreement, and any lease in the nature thereof) and any
option, trust or other preferential arrangement having the practical effect of any of the foregoing and (ii) in the case of Pledged
Equity Interests, any purchase option, call or similar right of a third party with respect to such Pledged Equity Interests.

 

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

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and any successor thereto.

 

“Event of Default” shall
have the meaning set forth in the Note Purchase Agreement.

 

“Fixtures” shall mean all
“fixtures” as defined in Article 9 of the UCC.

 

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

 

“Goods” (i) shall mean
all “goods” as defined in Article 9 of the UCC and (ii) shall include, without limitation, all Inventory, Equipment,
Documents Evidencing Goods and Software Embedded In Goods.

 

“Health-Care-Insurance Receivable”
shall have the meaning specified in the UCC.

 

“Indemnitee” shall mean
the Secured Party, and its Affiliates’ officers, partners, directors, trustees, employees and agents.

 

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

 

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

 

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

 

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

 

    	3

    	 

    

 

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

 

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

 

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

 

“Knowledge of the Obligor or the
Guarantors’ Knowledge” shall have the meaning set forth in the Note Purchase Agreement.

 

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

 

“Material Adverse Effect”
shall have the meaning set forth in the Note Purchase Agreement.

 

“Material Contract” shall
mean any contract or other arrangement to which any Grantor is a party for which breach, nonperformance, cancellation or failure
to renew could reasonably be expected to have a Material Adverse Effect.

 

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

 

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

 

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

 

“Patent Licenses” shall
mean all agreements granting any right in, to, or under Patents (whether such Grantor is licensee or licensor thereunder) including
without limitation, each agreement referred to in Schedule VI(D) hereto (as such Schedule may be amended or supplemented from
time to time).

 

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

 

    	4

    	 

    

 

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

 

“Permitted Encumbrances”
shall mean:

 

(i)          liens
for Taxes not yet due and payable or being contested in good faith by appropriate procedures and for which there are adequate accruals
or reserves on the Financial Statements;

 

(ii)         mechanics,
carriers', workmen's, repairmen's or other like liens arising or incurred in the ordinary course of business consistent with past
practice or amounts that are not delinquent and which are not, individually or in the aggregate, material to the business of the
Obligors; or

 

(iii)        easements,
rights of way, zoning ordinances and other similar encumbrances affecting Real Property which are not, individually or in the aggregate,
material to the business of the Obligors.

 

“Permitted Sale” shall
mean:

 

(i)          the
sale or Disposition of machinery and equipment no longer used or useful in the business of any Grantor;

 

(ii)         the
Disposition of obsolete or worn-out Property in the ordinary course of business;

 

(iii)        the
sale of inventory in the ordinary course of business; and

 

(iv)       
Dispositions of other property in any fiscal year of any Grantor (together with all other property Disposed of that year) so long
as (A) the purchase price paid to such Grantor or a Subsidiary of that Grantor for such property shall have a fair market value
not exceeding $50,000 and (B) the purchase price paid to such Grantor or a Subsidiary of that Grantor for such property shall be
paid solely in cash.

 

“Person” shall mean and
include natural persons, corporations, limited partnerships, general partnerships, limited liability companies, limited liability
partnerships, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and governmental authorities.

 

“Pledged Debt” shall mean
all indebtedness for borrowed money owed to such Grantor, whether or not evidenced by any instrument or promissory note, including,
without limitation, all indebtedness described on Schedule III hereto under the heading “Pledged Debt” (as such
Schedule may be amended or supplemented from time to time), all monetary obligations owing to any Grantor from any other Grantor
the instruments evidencing any of the foregoing, and all interest, cash, instruments and other property or proceeds from time to
time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing.

 

“Pledged Equity Interests”
shall mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests, Pledged Trust Interests and any other participation
or other interests in any equity or profits of any business entity.

 

    	5

    	 

    

 

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

 

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

 

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

 

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

 

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

 

“Receivables” shall mean
all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv) Instruments and (v) to the extent not otherwise covered above,
all other rights to payment, whether or not earned by performance, for goods or other property sold, leased, licensed, assigned
or otherwise disposed of, or services rendered or to be rendered, regardless of how classified under the UCC together with all
of Grantors’ rights, if any, in any goods or other property giving rise to such right to payment and all Collateral Support
and Supporting Obligations related thereto and all Receivables Records.

 

    	6

    	 

    

 

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

 

“Record” shall have the
meaning specified in the UCC.

 

“Representation Date” shall
mean each of (i) the date hereof and (ii) each Subsequent Draw Date.

 

“Secured Obligations” shall
mean all obligations of every nature of each Grantor from time to time owing to the Secured Party or any Secured Party or any Affiliates
of the Secured Party.

 

“Secured Party” shall have
the meaning set forth in the preamble.

 

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

 

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

 

“Software Embedded in Goods”
means, with respect to any Goods, any computer program embedded in Goods and any supporting information provided in connection
with a transaction relating to the program if (i) the program is associated with the Goods in such a manner that it customarily
is considered part of the Goods or (ii) by becoming the owner of the Goods a person acquires a right to use the program in connection
with the Goods.

 

“State” shall mean a State
of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession
subject to the jurisdiction of the United States.

 

“Subsequent Draw Date”
has the meaning set forth in the Note Purchase Agreement.

 

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

 

    	7

    	 

    

 

“Trade Secret Licenses”
shall mean any and all agreements granting any right in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder)
including, without limitation, each agreement referred to in Schedule VI(G) hereto (as such Schedule may be amended or
supplemented from time to time).

 

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

 

“Trademark Licenses” shall
mean any and all agreements granting any right in or to Trademarks (whether such Grantor is licensee or licensor thereunder) including,
without limitation, each agreement referred to in Schedule VI(F) hereto (as such Schedule may be amended or supplemented
from time to time).

 

“Trademarks” shall mean
all United States, state and foreign trademarks, service marks, certification marks, collective marks, trade names, corporate names,
d/b/as, business names, fictitious business names, internet domain names, trade styles, logos, other source or business identifiers,
designs and general intangibles of a like nature, rights of publicity and privacy pertaining to the right to use names likeness
and biographical data as real, all registrations and applications for any of the foregoing including, but not limited to, the registrations
and applications referred to in Schedule VI(E) hereto (as such Schedule may be amended or supplemented from time to time),
the goodwill of the business symbolized by the foregoing, the right to sue for past, present and future infringement or dilution
of any of the foregoing or for any injury to goodwill, and all proceeds of the foregoing, including, without limitation, royalties,
income, payments, claims, damages, and proceeds of suit.

 

“Transaction Documents”
shall mean the Note Purchase Agreement, this Agreement, the Warrant Agreement and the Expense Letter.

 

“UCC” shall mean the Uniform
Commercial Code as in effect from time to time in the State of New York.

 

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

 

    	8

    	 

    

 

Section
2.   GRANT OF SECURITY

 

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

 

(1)         Documents;

 

(2)         General
Intangibles;

 

(3)         Goods
(including, without limitation, Documents Representing Goods and Software Embedded in Goods);

 

(4)         Insurance;

 

(5)         Intellectual
Property;

 

(6)         Investment
Related Property (including, without limitation, Deposit Accounts);

 

(7)         Letter
of Credit Rights and letters of credit;

 

(8)         Money;

 

(9)         Receivables
and Receivable Records;

 

(10)       Commercial
Tort Claims;

 

(11)       to
the extent not otherwise included above, Material Contracts, motor vehicles, choses in action and all other personal property of
any kind and all Collateral Records, Collateral Support and Supporting Obligations relating to any of the foregoing; and

 

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

 

(b)   Certain
Limited Exclusions. Notwithstanding anything herein to the contrary, in no event shall the security interest granted under Section 2(a)
hereof attach to (a) any lease, license, contract, property rights or agreement to which each Grantor is a party or any of its
rights or interests thereunder if and for so long as the grant of such security interest shall constitute or result in (i) the
abandonment, invalidation or unenforceability of any right, Title or interest of any Grantor therein or (ii) in a breach or
termination pursuant to the terms of, or a default under, any such lease, license, contract property rights or agreement (other
than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC
(or any successor provision or provisions) of any relevant jurisdiction or any other applicable law or principles of equity), provided,
however, that such security interest shall attach immediately at such time as the condition causing such abandonment, invalidation
or unenforceability shall be remedied and, to the extent severable, shall attached immediately to any portion of such lease, license,
contract, property rights or agreement that does not result in any of the consequences specified in (i) or (ii) including, without
limitation, any proceeds of such lease, license, contract, property rights or agreement; or (b) in any of the outstanding capital
stock of a “controlled foreign corporation” (as defined in the Internal Revenue Code of 1986, as amended) in excess
of 65% of the voting power of all classes of capital stock of such controlled foreign corporation entitled to vote; provided that
immediately upon the amendment of the Internal Revenue Code to allow the pledge of a greater percentage of the voting power of
capital stock in a controlled foreign corporation without adverse tax consequences, the Collateral shall include, and the security
interest granted by each Grantor shall attach to, such greater percentage of capital stock of each controlled foreign corporation.

 

    	9

    	 

    

  

Section
3.   SECURITY FOR OBLIGATIONS.

 

(a)   Security
for Obligations. This Agreement secures, and the Collateral is collateral security for, the prompt and complete payment or performance
in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including
the payment of amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy
Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all Secured Obligations.

 

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

 

Section
4.   REPRESENTATIONS AND WARRANTIES AND COVENANTS.

 

(a)   Generally.

 

(i)            Representations
and Warranties. Each Grantor hereby represents and warrants, on each Representation Date, that:

 

(1)         it
owns the Collateral purported to be owned by it or otherwise has the rights it purports to have in each item of Collateral and,
as to all Collateral whether now existing or hereafter acquired, will continue to own or have such rights in each item of the Collateral,
in each case free and clear of any and all Encumbrances, rights or claims of all other Persons other than encumbrances created
by this Agreement and Permitted Encumbrances, including, without limitation, liens arising as a result of such Grantor becoming
bound (as a result of merger or otherwise) as debtor under a security agreement entered into by another Person;

 

    	10

    	 

    

 

(2)         Throwdown
Industries Holdings, LLC and Throwdown Industries, LLC have each been duly organized as a limited liability company solely under
the laws of Delaware and remain duly existing as such. Neither Throwdown Industries Holdings, LLC nor Throwdown Industries, LLC
has filed any certificates of domestication, transfer or continuance in any other jurisdiction;

 

(3)         Throwdown
Industries, Inc., has been duly organized as a corporation solely under the laws of California and remains duly existing as such.
Throwdown Industries, Inc. has not filed any certificates of domestication, transfer or continuance in any other jurisdiction;

 

(4)         the
execution and delivery of this Agreement by such Grantor and the performance by it of its obligations under this Agreement are
within its corporate or other powers and have been duly authorized by all necessary corporate or other action;

 

(5)         upon
the filing of UCC financing statements naming each Grantor as debtor and the Secured Party as secured party and describing the
Collateral in the filing offices set forth opposite such Grantor’s name on Schedule I(E) hereof (as such Schedule may
be amended or supplemented from time to time) and other filings delivered by each Grantor, the security interests granted to the
Secured Party hereunder constitute valid and perfected first priority Encumbrance;

 

(6)         other
than the financing statements filed in favor of the Secured Party, no effective UCC financing statement, fixture filing or other
instrument similar in effect under any applicable law covering all or any part of the Collateral is on file in any filing or recording
office except for financing statements for which proper termination statements have been delivered to the Secured Party for filing;

 

(7)         no
authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body is required
for either (i) the pledge or grant by any Grantor of the Encumbrances purported to be created in favor of the Secured Party hereunder
or (ii) the exercise by the Secured Party of any rights or remedies in respect of any Collateral (whether specifically granted
or created hereunder or created or provided for by applicable law), except (A) for the filings contemplated by clause (iii) above
and (B) as may be required, in connection with the disposition of any Investment Related Property, by laws generally affecting
the offering and sale of Securities and as may be required under federal laws pertaining to Intellectual Property;

 

(8)         all
actions and consents, including all filings, notices, registrations and recordings necessary or desirable for the exercise by the
Secured Party of the voting or other rights provided for in this Agreement or the exercise of remedies in respect of the Collateral
have been made or obtained;

 

(9)         it
has indicated on Schedule I(A) hereto (as such Schedule may be amended or supplemented from time to time): (w) the type
of organization of such Grantor, (x) the jurisdiction of organization of such Grantor, (y) its organizational identification number,
if any, and (z) the jurisdiction where the chief executive office or its sole place of business is, and for the one-year period
preceding the date hereof has been, located;

 

    	11

    	 

    

 

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

 

(11)        except
as provided on Schedule I(C), it has not changed its name, jurisdiction of organization, chief executive office or sole place
of business (or, if such Grantor is a natural person, principal residence or principal place of business) or its corporate structure
in any way (e.g. by merger, consolidation, change in corporate form or otherwise) within the past five (5) years;

 

(12)        such
Grantor has not within the last five (5) years become bound (whether as a result of merger or otherwise) as debtor under a security
agreement entered into by another Person, which has not heretofore been terminated;

 

(13)        with
respect to each agreement identified on Schedule I(D), it has indicated on Schedule I(A) and Schedule I(B) the information
required pursuant to Section I(a)(iii) and (iv) with respect to each Grantor under each such agreement;

 

(14)        all
information supplied by any Grantor with respect to any of the Collateral (in each case taken as a whole with respect to any particular
Collateral) is accurate and complete in all material respects; and

 

(15)        none
of the Collateral constitutes, or is the Proceeds of, “farm products” (as defined in the UCC).

 

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

 

(1)         except
for the security interest created by this Agreement, it shall not create or suffer to exist any Encumbrance upon or with respect
to any of the Collateral, except Permitted Encumbrances, and such Grantor shall defend the Collateral against all Persons
at any time claiming any interest therein;

 

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

 

(3)         without
limiting any prohibitions or restrictions on mergers in the Note Purchase Agreement, it shall not change such Grantor’s name,
identity, corporate structure (e.g. by merger, consolidation, change in corporate form or otherwise), sole place of business, chief
executive office, type of organization or jurisdiction of organization or establish any trade names unless it shall have (a) notified
the Secured Party in writing at least thirty (30) days prior to any such change or establishment, identifying such new proposed
name, identity, corporate structure, sole place of business, chief executive office, jurisdiction of organization or trade name
and providing such other information in connection therewith as the Secured Party may reasonably request and (b) taken all actions
necessary or advisable to maintain the continuous validity, perfection and the same or better priority of the Secured Party’s
security interest in the Collateral granted or intended to be granted and agreed to hereby, which in the case of any merger or
other change in corporate structure shall include, without limitation, executing and delivering to the Secured Party a completed
Pledge Supplement, substantially in the form of Annex A attached hereto, upon completion of such merger or other change in corporate
structure confirming the grant of the security interest hereunder;

 

    	12

    	 

    

 

(4)         if
the Secured Party or any Secured Party gives value to enable Grantor to acquire rights in or the use of any Collateral, it shall
use such value for such purposes and such Grantor further agrees that repayment of any Obligation shall apply on a “first-in,
first-out” basis so that the portion of the value used to acquire rights in any Collateral shall be paid in the chronological
order such Grantor acquired rights therein;

 

(5)         it
shall 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 Collateral, except to the extent the validity thereof
is being contested in good faith; provided, such Grantor shall in any event pay such taxes, assessments, charges, levies or claims
not later than five (5) days prior to the date of any proposed sale under any judgment, writ or warrant of attachment entered or
filed against such Grantor or any of the Collateral as a result of the failure to make such payment;

 

(6)         upon
such Grantor or any officer of such Grantor obtaining Knowledge thereof, it shall promptly notify the Secured Party in writing
of any event that may materially and adversely affect the value of the Collateral or any portion thereof, the ability of any Grantor
or the Secured Party to dispose of the Collateral or any portion thereof, or the rights and remedies of the Secured Party in relation
thereto, including, without limitation, the levy of any legal process against the Collateral or any portion thereof;

 

(7)         it
shall not take or permit any action which could impair the Secured Party’s rights in the Collateral; and

 

(8)         it
shall not sell, transfer or assign (by operation of law or otherwise) any Collateral except for Permitted Sales.

 

(b)   Equipment
and Inventory.

 

(i)            Representations
and Warranties. Each Grantor represents and warrants, on each Representation Date, that:

 

(1)         all
of the Equipment and Inventory included in the Collateral is kept for the past five (5) years only at the locations specified in
Schedule II hereto (as such Schedule may be amended or supplemented from time to time);

 

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

 

    	13

    	 

    

 

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

 

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

 

(1)         it
shall keep the Equipment and Inventory in the locations specified on Schedule II hereto unless it shall have (a) notified
the Secured Party in writing at least thirty (30) days prior to any change in locations, identifying such new locations and providing
such other information in connection therewith as the Secured Party may reasonably request and (b) taken all actions necessary
or advisable to maintain the continuous validity, perfection and the same or better priority of the Secured Party’s security
interest in the Collateral intended to be granted and agreed to hereby, or to enable the Secured Party to exercise and enforce
its rights and remedies hereunder, with respect to such Equipment and Inventory;

 

(2)         it
shall keep correct and accurate records of the Inventory, as is customarily maintained under similar circumstances by Persons of
established reputation engaged in similar business, and in any event in conformity with generally accepted accounting principles;

 

(3)         it
shall not deliver any Document Evidencing any Goods to any Person other than the issuer of such Document to claim the Goods evidenced
therefor or the Secured Party;

 

(4)         if
any Equipment or Inventory is in possession or control of any third party, including, without limitation, any warehouseman, bailee
or agent, each Grantor shall join with the Secured Party in notifying the third party of the Secured Party’s security interest
and obtaining an Authenticated acknowledgment from such third party that it is holding the Equipment and Inventory for the benefit
of the Secured Party; and

 

(5)         with
respect to any item of Equipment which is covered by a certificate of Title under a statute of any jurisdiction under the
law of which indication of a security interest on such certificate is required as a condition of perfection thereof, upon the reasonable
request of the Secured Party, (A) provide information with respect to any such Equipment, (B) execute and file with the registrar
of motor vehicles or other appropriate authority in such jurisdiction an application or other document requesting the notation
or other indication of the security interest created hereunder on such certificate of title, and (C) deliver to the Secured Party
copies of all such applications or other documents filed during such calendar quarter and copies of all such certificates of Title issued
during such calendar quarter indicating the security interest created hereunder in the items of Equipment covered thereby.

 

(c)   Receivables.

 

(i)            Representations
and Warranties. Each Grantor represents and warrants, on each Representation Date, that:

 

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(1)         each
Receivable (a) is and will be the legal, valid and binding obligation of the Account Debtor in respect thereof, representing an
unsatisfied obligation of such Account Debtor, (b) is and will be enforceable in accordance with its terms, (c) is not and will
not be subject to any setoffs, defenses, taxes, counterclaims (except with respect to refunds, returns and allowances in the ordinary
course of business with respect to damaged merchandise) and (d) is and will be in compliance with all applicable laws, whether
federal, state, local or foreign;

 

(2)         none
of the Account Debtors in respect of any Receivable is the government of the United States, any agency or instrumentality thereof,
any state or municipality or any foreign sovereign. No Receivable requires the consent of the Account Debtor in respect thereof
in connection with the security interest hereunder, except any consent which has been obtained; and

 

(3)         each
Grantor has delivered to the Secured Party a complete and correct copy of each standard form of document under which a Receivable
may arise.

 

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

 

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

 

(2)         it
shall perform in all material respects all of its obligations with respect to the Receivables;

 

(3)         it
shall not amend, modify, terminate or waive any provision of any Receivable in any manner which could reasonably be expected to
have a Material Adverse Effect on the value of such Receivable as Collateral. Other than in the ordinary course of business as
generally conducted by it on and prior to the date hereof, and except as otherwise provided in subsection (5) below, following
an Event of Default, such Grantor shall not (w) grant any extension or renewal of the time of payment of any Receivable, (x) compromise
or settle any dispute, claim or legal proceeding with respect to any Receivable for less than the total unpaid balance thereof,
(y) release, wholly or partially, any Person liable for the payment thereof, or (z) allow any credit or discount thereon;

 

(4)         it
shall mark conspicuously, in form and manner reasonably satisfactory to the Secured Party, all Chattel Paper, Instruments and other
evidence of Receivables (other than any delivered to the Secured Party as provided herein), as well as the Receivables Records
with an appropriate reference to the fact that the Secured Party has a security interest therein;

 

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(5)         except
as otherwise provided in this subsection, each Grantor shall continue to collect all amounts due or to become due to such Grantor
under the Receivables and any Supporting Obligation and diligently exercise each material right it may have under any Receivable,
any Supporting Obligation or Collateral Support, in each case, at its own expense, and in connection with such collections and
exercise, such Grantor shall take such action as such Grantor or the Secured Party may deem necessary or advisable. Notwithstanding
the foregoing, the Secured Party shall have the right at any time to notify, or require any Grantor to notify, any Account Debtor
of the Secured Party’s security interest in the Receivables and any Supporting Obligation and, in addition, at any time following
the occurrence and during the continuation of an Event of Default, the Secured Party may: (1) direct the Account Debtors under
any Receivables to make payment of all amounts due or to become due to such Grantor thereunder directly to the Secured Party; (2)
notify, or require any Grantor to notify, each Person maintaining a lockbox or similar arrangement to which Account Debtors under
any Receivables have been directed to make payment to remit all amounts representing collections on checks and other payment items
from time to time sent to or deposited in such lockbox or other arrangement directly to the Secured Party; and (3) enforce, at
the expense of such Grantor, collection of any such Receivables and to adjust, settle or compromise the amount or payment thereof,
in the same manner and to the same extent as such Grantor might have done. If the Secured Party notifies any Grantor that it has
elected to collect the Receivables in accordance with the preceding sentence, any payments of Receivables received by such Grantor
shall be forthwith (and in any event within two (2) Business Days) deposited by such Grantor in the exact form received, duly indorsed
by such Grantor to the Secured Party if required, in the Collateral Account maintained under the sole dominion and control of the
Secured Party, and until so turned over, all amounts and proceeds (including checks and other instruments) received by such Grantor
in respect of the Receivables, any Supporting Obligation or Collateral Support shall be received in trust for the benefit of the
Secured Party hereunder and shall be segregated from other funds of such Grantor and such Grantor shall not adjust, settle or compromise
the amount or payment of any Receivable, or release wholly or partly any Account Debtor or obligor thereof, or allow any credit
or discount thereon; and

 

(6)         it
shall use its best efforts to keep in full force and effect any Supporting Obligation or Collateral Support relating to any Receivable.

 

(iii)         Delivery
and Control of Receivables. With respect to any Receivables in excess of $50,000 individually or $50,000 in the aggregate that
is evidenced by, or constitutes, Tangible Chattel Paper or Instruments, each Grantor shall cause each originally executed copy
thereof to be delivered to the Secured Party (or its agent or designee) appropriately indorsed to the Secured Party or indorsed
in blank: (a) with respect to any such Receivables in existence on the date hereof, on or prior to the date hereof and (b) with
respect to any such Receivables hereafter arising, within ten (10) days of such Grantor acquiring rights therein. With respect
to any Receivables in excess of $50,000 individually or $50,000 in the aggregate which would constitute “electronic chattel
paper” under the UCC, each Grantor shall take all steps necessary to give the Secured Party control (within the meaning of
Section 9-105 of the UCC) over such Receivables: (a) with respect to any such Receivables in existence on the date hereof,
on or prior to the date hereof and (b) with respect to any such Receivables hereafter arising, within ten (10) days of such Grantor
acquiring rights therein. Any Receivable not otherwise required to be delivered or subjected to the control of the Secured Party
in accordance with this subsection (iii) shall be delivered or subjected to such control upon request of the Secured Party.

 

(d)   Pledged
Equity Interests and Pledged Debt

 

(i)          Representations
and Warranties. Each Grantor hereby represents and warrants, on each Representation Date, that:

 

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

 

(2)         except
as set forth on Schedule III(B) hereto it has not acquired any equity interests of another entity within the past five (5)
years;

 

(3)         it
is the record and beneficial owner of the Pledged Equity Interests free of all Encumbrances, rights or claims of other Persons
and there are no outstanding warrants, options or other rights to purchase, or shareholder, voting trust or similar agreements
outstanding with respect to, or property that is convertible into, or that requires the issuance or sale of, any Pledged Equity
Interests;

 

(4)         except
for any consents that have been obtained and remain in full force and effect, no consent of any Person including any other general
or limited partner, any other member of a limited liability company, any other shareholder or any other trust beneficiary is necessary
or desirable in connection with the creation, perfection or first priority status of the security interest of the Secured Party
in any Pledged Equity Interests or the exercise by the Secured Party of the voting or other rights provided for in this Agreement
or the exercise of remedies in respect thereof;

 

(5)         none
of the Pledged LLC Interests nor Pledged Partnership Interests are or represent interests in issuers that are: (a) registered as
investment companies, (b) are dealt in or traded on securities exchanges or markets or (c) have opted to be treated as securities
under the uniform commercial code of any jurisdiction; and

 

(6)         Schedule III
hereto (as such Schedule may be amended or supplemented from time to time) sets forth under the heading “Pledged Debt”
all of the Pledged Debt owned by any Grantor and all of such Pledged Debt has been duly authorized, authenticated or issued, and
delivered and is the legal, valid and binding obligation of the issuers thereof and is not in default and constitutes all of the
issued and outstanding inter-company indebtedness evidenced by an instrument or certificated security of the respective issuers
thereof owing to such Grantor.

 

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

 

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(1)         without
the prior written consent of the Secured Party, it shall not vote to enable or take any other action to: (a) amend or terminate
any partnership agreement, limited liability company agreement, certificate of incorporation, by-laws or other organizational documents
in any way that materially changes the rights of such Grantor with respect to any Investment Related Property or adversely affects
the validity, perfection or priority of the Secured Party’s security interest, (b) permit any issuer of any Pledged Equity
Interest to issue any additional stock, partnership interests, limited liability company interests or other equity interests of
any nature or to issue securities convertible into or granting the right of purchase or exchange for any stock or other equity
interest of any nature of such issuer, (c) other than as permitted under the Note Purchase Agreement, permit any issuer of any
Pledged Equity Interest to dispose of all or a material portion of their assets, (d) waive any default under or breach of any terms
of organizational document relating to the issuer of any Pledged Equity Interest or the terms of any Pledged Debt, or (e) cause
any issuer of any Pledged Partnership Interests or Pledged LLC Interests which are not securities (for purposes of the UCC) on
the date hereof to elect or otherwise take any action to cause such Pledged Partnership Interests or Pledged LLC Interests to be
treated as securities for purposes of the UCC; provided, however, notwithstanding the foregoing, if any issuer of any Pledged Partnership
Interests or Pledged LLC Interests takes any such action in violation of the foregoing in this clause (e), such Grantor shall promptly
notify the Secured Party in writing of any such election or action and, in such event, shall take all steps necessary or advisable
to establish the Secured Party’s “control” thereof;

 

(2)         it
shall comply with all of its obligations under any partnership agreement or limited liability company agreement relating to Pledged
Partnership Interests or Pledged LLC Interests and shall enforce all of its rights with respect to any Investment Related Property;

 

(3)         without
the prior written consent of the Secured Party, it shall not permit any issuer of any Pledged Equity Interest to merge or consolidate
unless (i) such issuer creates a security interest that is perfected by a filed financing statement (that is not effective solely
under Section 9-508 of the UCC) in collateral in which such new debtor has or acquires rights, and (ii) all the outstanding
capital stock or other equity interests of the surviving or resulting corporation, limited liability company, partnership or other
entity is, upon such merger or consolidation, pledged hereunder and no cash, securities or other property is distributed in respect
of the outstanding equity interests of any other constituent Grantors; provided that if the surviving or resulting Grantors
upon any such merger or consolidation involving an issuer which is a controlled foreign corporation (as defined in the U.S.
Internal Revenue Code of 1986, as amended), then such Grantor shall only be required to pledge equity interests in accordance with
Section 2(b);

 

(4)         each
Grantor consents to the transfer of any Pledged Partnership Interest and any Pledged LLC Interest to the Secured Party or its designee
following an Event of Default and to the substitution of the Secured Party or its designee as a partner in any partnership or as
a member in any limited liability company with all the rights and powers related thereto;

 

(5)         it
shall notify the Secured Party of any default under any Pledged Debt that has caused, either in any case or in the aggregate, a
Material Adverse Effect; and

 

(6)         in
the event it acquires rights in any Pledged Equity Interest or Pledged Debt after the date hereof, it shall deliver to the Secured
Party a completed Pledge Supplement, substantially in the form of Annex A attached hereto, together with all Supplements to Schedules
thereto, reflecting such new Pledged Equity Interest or Pledged Debt and all other Pledged Equity Interest or Pledged Debt. Notwithstanding
the foregoing, it is understood and agreed that the security interest of the Secured Party shall attach to all Pledged Equity Interest
or Pledged Debt immediately upon any Grantor’s acquisition of rights therein and shall not be affected by the failure of
any Grantor to deliver a supplement to Schedule III as required hereby.

 

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(iii)        Delivery
and Control. Each Grantor agrees that with respect to any Pledged Equity Interest or Pledged Debt in which it
currently has rights it shall comply with the provisions of this subsection (iii) on or before the Representation Date and with
respect to any Pledged Equity Interest or Pledged Debt hereafter acquired by such Grantor it shall comply with the provisions of
this subsection (iii) immediately upon acquiring rights therein, in each case in form and substance satisfactory to the Secured
Party. With respect to any Pledged Equity Interest or Pledged Debt that is represented by a certificate or that is an “instrument”
(other than any Investment Related Property credited to a Securities Account) it shall cause such certificate or instrument to
be delivered to the Secured Party, indorsed in blank by an “effective indorsement” (as defined in Section 8-107
of the UCC), regardless of whether such certificate constitutes a “certificated security” for purposes of the UCC.
With respect to any Pledged Equity Interest or Pledged Debt that is an “uncertificated security” for purposes of the
UCC (other than any “uncertificated securities” credited to a Securities Account), it shall cause the issuer of such
uncertificated security to either (i) register the Secured Party as the registered owner thereof on the books and records of the
issuer or (ii) execute an agreement, in form and substance satisfactory to the Secured Party, pursuant to which such issuer agrees
to comply with the Secured Party’s instructions with respect to such uncertificated security without further consent by such
Grantor. If any issuer of any Pledged Equity Interest or Pledged Debt is located in a jurisdiction outside of the United States,
each Grantor shall take such additional actions, including, without limitation, causing the issuer to register the pledge on its
books and records or making such filings or recordings, in each case as may be necessary or advisable, under the laws of such issuer’s
jurisdiction to insure the validity, perfection and priority of the security interest of the Secured Party. Upon the occurrence
of an Event of Default, the Secured Party shall have the right, without notice to any Grantor, to transfer all or any portion of
Pledged Equity Interest or Pledged Debt to its name or the name of its nominee or agent. In addition, the Secured Party shall have
the right at any time, without notice to any Grantor, to exchange any certificates or instruments representing any Pledged Equity
Interest or Pledged Debt for certificates or instruments of smaller or larger denominations.

 

(e)   Investment
Accounts

 

(i)            Representations
and Warranties. Each Grantor hereby represents and warrants, on each Representation Date, that:

 

(1)         Schedule III
hereto (as such Schedule may be amended or supplemented from time to time) sets forth under the headings “Securities
Accounts” and “Commodities Accounts,” respectively, all of the Securities Accounts and Commodities Accounts in
which each Grantor has an interest. Each Grantor is the sole entitlement holder of each such Securities Account and Commodities
Account, and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Secured Party pursuant
hereto) having “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over, or any other interest in,
any such Securities Account or Commodity Account or any securities or other property credited thereto; and

 

(2)         Schedule III
hereto (as such Schedule may be amended or supplemented from time to time) sets forth under the heading “Deposit Accounts”
all of the Deposit Accounts in which each Grantor has an interest and each Grantor is the sole account holder of each such Deposit
Account and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Secured Party pursuant
hereto) having either sole dominion and control (within the meaning of common law) or “control” (within the meaning
of Section 9-104 of the UCC) over, or any other interest in, any such Deposit Account or any money or other property deposited
therein.

 

    	19

    	 

    

 

(ii)         Covenants
& Agreements. in the event it acquires rights in any Securities Accounts, Securities Entitlements, Deposit Accounts or
Commodity Accounts after the date hereof, it shall deliver to the Secured Party a completed Pledge Supplement, substantially in
the form of Annex A attached hereto, together with all Supplements to Schedules thereto, reflecting such new Securities Accounts,
Securities Entitlements, Deposit Accounts or Commodity Accounts and all other Securities Accounts, Securities Entitlements, Deposit
Accounts or Commodity Accounts. Notwithstanding the foregoing, it is understood and agreed that the security interest of the Secured
Party shall attach to all Securities Accounts, Securities Entitlements, Deposit Accounts or Commodity Accounts immediately upon
any Grantor’s acquisition of rights therein and shall not be affected by the failure of any Grantor to deliver a supplement
to Schedule III as required hereby.

 

(iii)        Delivery
and Control. Each Grantor agrees that with respect to any Investment Related Property consisting of Securities
Accounts or Securities Entitlements, it shall cause the securities intermediary maintaining such Securities Account or Securities
Entitlement to enter into an agreement, in form and substance satisfactory to the Secured Party, pursuant to which it shall agree
to comply with the Secured Party’s “entitlement orders” without further consent by such Grantor and shall establish
the Secured Party shall have “control” (within the meaning of Section 9-106 of the UCC) over such Securities Accounts
or Securities Entitlements. With respect to any Investment Related Property that is a “Deposit Account,” it shall cause
the depositary institution maintaining such account to enter into an agreement, in form and substance satisfactory to the Secured
Party, pursuant to which the depositary institution shall agree to comply with the Secured Party’s instructions without further
consent by such Grantor and shall establish the Secured Party shall have “control” (within the meaning of Section 9-104
of the UCC) over such Deposit Account. With respect to any Investment Related Property that is a “Commodity Account,”
it shall cause the commodity intermediary maintaining such account to enter into an agreement, in form and substance satisfactory
to the Secured Party, pursuant to which the Secured Party shall have “control” (within the meaning of Section 9-106
of the UCC) over such Commodity Account. Each Grantor shall have entered into such control agreement or agreements with respect
to: (i) any Securities Accounts, Securities Entitlements or Deposit Accounts that exist on the Representation Date, as of or prior
to the Representation Date and (ii) any Securities Accounts, Securities Entitlements, Deposit Accounts or Commodity Accounts that
are created or acquired after the Representation Date, as of or prior to the deposit or transfer of any such Securities Entitlements
or funds, whether constituting moneys or investments, into such Securities Accounts, Deposit Accounts or Commodity Accounts.

 

(f)   Material
Contracts.

 

(i)            Representations
and Warranties. Each Grantor hereby represents and warrants, on each Representation Date, that:

 

(1)         Schedule IV
hereto sets forth all of the Material Contracts to which such Grantor has rights;

 

    	20

    	 

    

 

(2)         the
Material Contracts, true and complete copies (including any amendments or supplements thereof) of which have been furnished to
the Secured Party, have been duly authorized, executed and delivered by all parties thereto, are in full force and effect and are
binding upon and enforceable against all parties thereto in accordance with their respective terms. There exists no default under
any Material Contract by any party thereto and neither such Grantor, nor to its best Knowledge, any other Person party thereto
is likely to become in default thereunder and no Person party thereto has any defenses, counterclaims or right of set-off with
respect to any Material Contract. Each Person party to a Material Contract (other than any Grantor) has executed and delivered
to the applicable Grantor a consent to the assignment of such Material Contract to the Secured Party pursuant to this Agreement;
and

 

(3)         no
Material Contract prohibits assignment or requires consent of or notice to any Person in connection with the assignment to the
Secured Party hereunder, except such as has been given or made.

 

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

 

(1)         in
addition to any rights under the Section of this Agreement relating to Receivables, the Secured Party may at any time notify,
or require any Grantor to so notify, the counterparty on any Material Contract of the security interest of the Secured Party therein.
In addition, after the occurrence and during the continuance of an Event of Default, the Secured Party may upon written notice
to the applicable Grantor, notify, or require any Grantor to notify, the counterparty to make all payments under the Material Contracts
directly to the Secured Party;

 

(2)         each
Grantor shall deliver promptly to the Secured Party a copy of each material demand, notice or document received by it relating
in any way to any Material Contract;

 

(3)         each
Grantor shall deliver promptly to the Secured Party, and in any event within ten (10) Business Days, after (1) any Material Contract
of such Grantor is terminated or amended in a manner that is materially adverse to such Grantor or (2) any new Material Contract
is entered into by such Grantor, a written statement describing such event, with copies of such material amendments or new contracts,
delivered to the Secured Party (to the extent such delivery is permitted by the terms of any such Material Contract, provided,
no prohibition on delivery shall be effective if it were bargained for by such Grantor with the intent of avoiding compliance with
this Agreement, and an explanation of any actions being taken with respect thereto;

 

(4)         it
shall perform in all material respects all of its obligations with respect to the Material Contracts;

 

(5)         it
shall promptly and diligently exercise each material right (except the right of termination) it may have under any Material Contract,
any Supporting Obligation or Collateral Support, in each case, at its own expense, and in connection with such collections and
exercise, such Grantor shall take such action as such Grantor or the Secured Party may deem necessary or advisable;

 

(6)         it
shall use its best efforts to keep in full force and effect any Supporting Obligation or Collateral Support relating to any Material
Contract; and

 

    	21

    	 

    

 

(7)         with
respect to any Non-assignable Contract that is a Material Contract, each Grantor shall, unless the relevant restrictions on transfer
are overridden by Section 9-406 of the UCC, within thirty (30) days of the date hereof with respect to any Non-Assignable
Contract in effect on the date hereof and within thirty (30) days after entering into any Non-Assignable Contract after the Closing
Date, request in writing the consent of the counterparty or counterparties to the Non-Assignable Contract pursuant to the terms
of such Non-Assignable Contract or applicable law to the assignment or granting of a security interest in such Non-Assignable Contract
to the Secured Party and use its best efforts to obtain such consent as soon as practicable thereafter.

 

(g)   
Letter of Credit Rights.

 

(i)            Representations
and Warranties. Each Grantor hereby represents and warrants, on each Representation Date, that:

 

(1)         all
material letters of credit to which such Grantor has rights is listed on Schedule V hereto; and

 

(2)         it
has obtained the consent of each issuer of any material letter of credit to the assignment of the proceeds of the letter of credit
to the Secured Party.

 

(ii)         Covenants
and Agreements. Each Grantor hereby covenants and agrees that with respect to any material letter of credit hereafter arising
it shall obtain the consent of the issuer thereof to the assignment of the proceeds of the letter of credit to the Secured Party
and shall deliver to the Secured Party a completed Pledge Supplement, substantially in the form of Annex A attached hereto, together
with all Supplements to Schedules thereto. Notwithstanding the foregoing, it is understood and agreed that the security interest
of the Secured Party shall attach to all letters of credit immediately upon any Grantor’s acquisition of rights therein and
shall not be affected by the failure of any Grantor to deliver a supplement to Schedule V as required hereby.

 

(h)   
Intellectual Property.

 

(i)            Representations
and Warranties. Except as disclosed in Schedule VI(H) (as such Schedule may be amended or supplemented from time
to time), each Grantor hereby represents and warrants, on each Representation Date, that:

 

(1)         Schedule VI
(as such Schedule may be amended or supplemented from time to time) sets forth a true and complete list of (i) all United
States, state and foreign registrations of and applications for Patents, Trademarks, and Copyrights owned by each Grantor and (ii)
all Patent Licenses, Trademark Licenses and Copyright Licenses, granting rights in any Patents, Trademarks or Copyrights owned
by Grantor and any other such licenses that are material to the business of such Grantor;

 

(2)         all
registrations and applications for Copyrights, Patents and Trademarks are standing in the name of each Grantor;

 

(3)         it
is the sole and exclusive owner of the entire right, title, and interest in and to all Intellectual Property on Schedule VI
(as such Schedule may be amended or supplemented from time to time), and owns or has the valid right to use all other Intellectual
Property used in or necessary to conduct its business, free and clear of all Encumbrances, claims, encumbrances and licenses, except
for Permitted Encumbrances and the Intellectual Property Licenses set forth on Schedule VI(B), (D), (F) and (G) (as each may
be amended or supplemented from time to time);

 

    	22

    	 

    

 

(4)         all
Intellectual Property owned by Grantor and, to the best of each Grantor’s Knowledge, licensed to Grantor: (i) is subsisting
(ii) to the best of each Grantor’s Knowledge is valid and enforceable and (iii) has not been adjudged invalid or unenforceable,
in whole or in part each Grantor has performed all acts and has paid all renewal, maintenance, and other fees and taxes required
to maintain each and every registration and application of Intellectual Property that such Grantor owns in full force and effect;

 

(5)         no
action or proceeding before any court or administrative authority in pending or, to the best of Grantor’s Knowledge, threatened
against Grantor challenging such Grantor’s right to register, the validity of, or such Grantor’s rights to own, use,
or license any Intellectual Property;

 

(6)         each
Grantor has been using appropriate statutory notice of registration in connection with its use of registered Trademarks, proper
marking practices in connection with the use of Patents, and appropriate notice of copyright in connection with the publication
of Copyrights material to the business of such Grantor;

 

(7)         each
Grantor uses adequate standards of quality in the manufacture, distribution, and sale of all products sold and in the provision
of all services rendered under or in connection with all Trademarks owned by Grantor and has taken all action necessary to insure
that all licensees of such Trademarks use such adequate standards of quality;

 

(8)         the
conduct of such Grantor’s business does not infringe upon any trademark, patent, copyright, trade secret or similar intellectual
property right owned or controlled by a third party; no claim is pending, or to the best of such Grantor’s Knowledge, threatened,
has been made that the conduct of such Grantor’s business or the use of any Intellectual Property owned or used by Grantor
violates the asserted rights of any third party;

 

(9)         to
the best of each Grantor’s Knowledge, no third party is infringing upon any Intellectual Property owned or used by such Grantor;

 

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

 

(11)       each
Grantor has not made any agreements to assign, sell, transfer or grant an option or license for any Intellectual Property or that
has not been terminated or released, other than licenses granted in the ordinary course of business and consistent with past practice
to manufacturers to produce products bearing Obligor logos. There is no effective financing statement or other document or instrument
now executed, or on file or recorded in any public office, granting a security interest in or otherwise encumbering any part of
the Intellectual Property, other than in favor of the Secured Party.

 

    	23

    	 

    

 

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

 

(1)         except
for Intellectual Property that is not in use and has negligible value, Grantor shall not do any act or omit to do any act whereby
any of the Intellectual Property which is material to the business of Grantor may lapse, or become abandoned, dedicated to the
public, or unenforceable, or which would adversely affect the validity, grant, or enforceability of the security interest granted
therein;

 

(2)         except
for copyrights of negligible value, Grantor shall, within thirty (30) days of the creation or acquisition of any Copyrightable
work which is material to the business of Grantor, apply to register the Copyright in the United States Copyright Office;

 

(3)         it
shall promptly notify the Secured Party if it knows or has reason to know that any item of the Intellectual Property that is in
use or has more than negligible value of any Grantor may become (a) abandoned or dedicated to the public or placed in the public
domain, (b) invalid or unenforceable, or (c) subject to any adverse determination or development (including the institution of
proceedings) in any action or proceeding in the United States Patent and Trademark Office, the United States Copyright Office,
and state registry, any foreign counterpart of the foregoing, or any court arbitral tribunal or regulatory agency;

 

(4)         it
shall take all reasonable steps in the United States Patent and Trademark Office, the United States Copyright Office, any state
registry or any foreign counterpart of the foregoing, to pursue any application and maintain any registration of each Trademark,
Patent, and Copyright owned by any Grantor and which is now or shall become included in the Intellectual Property including, but
not limited to, those items on Schedule VI(A), (C) and (E) (as each may be amended or supplemented from time to time) expect
for those pertaining to IP that are no longer in use and has negligible value;

 

(5)         in
the event that any Intellectual Property owned by or exclusively licensed to any Grantor is infringed, misappropriated, or diluted
by a third party, such Grantor shall promptly take all reasonable actions to stop such infringement, misappropriation, or dilution
and protect its exclusive rights in such Intellectual Property including, but not limited to, the initiation of a suit for injunctive
relief and to recover damages;

 

(6)         it
shall maintain the level of the quality of products sold and services rendered under any Trademark at a level at least substantially
consistent with the quality of such products and services as of the date hereof, and each Grantor shall take all steps necessary
to insure that licensees of such Trademarks use such standards of quality;

 

(7)         it
shall take all steps reasonably necessary to protect the secrecy of all material Trade Secrets, including, without limitation,
entering into confidentiality agreements with employees and labeling and restricting access to secret information and documents;

 

    	24

    	 

    

 

(8)         it
shall promptly (but in no event more than thirty (30) days) report to the Secured Party (i) the filing of any application to register
any Intellectual Property whether it owns in whole or in part or to the best of its Knowledge which it is exclusively licensing
from a third party with the United States Patent and Trademark Office, the United States Copyright Office, or any state registry
or foreign counterpart of the foregoing (whether such application is filed by such Grantor or through any agent, employee, licensor,
licensee, or designee thereof), (ii) the registration of any Intellectual Property by any such office, or (iii) the acquisition
of any application or registration and, in each case, shall execute and deliver to the Secured Party a completed Pledge Supplement,
substantially in the form of Annex A attached hereto, together with all Supplements to Schedules thereto or signed counterpart
of a Trademark Security Agreement, Patent Security Agreement, or Copyright Security Agreement substantially in the form of Annexes
B, C, and D, as applicable together with all supplements to the schedules thereto;

 

(9)         except
with the prior consent of the Secured Party or as permitted under the Note Purchase Agreement, each Grantor shall not execute,
and there will not be on file in any public office, any financing statement or other document or instruments, except financing
statements or other documents or instruments filed or to be filed in favor of the Secured Party and each Grantor shall not sell,
assign, transfer, license, grant any option, or create or suffer to exist any Encumbrance upon or with respect to the Intellectual
Property, except for the Encumbrance created by and under this Security Agreement and the other Transaction Documents;

 

(10)        
it shall not hereafter permit the inclusion in any contract to which it hereafter becomes a party of any provision that would impair
or prevent the creation of a security interest in, or the assignment of, such Grantor’s rights and interests in any Intellectual
Property acquired under such Contracts;

 

(11)        it
shall use proper statutory notice in connection with its use of any of the Intellectual Property; and

 

(12)        it
shall continue to collect, at its own expense, all amounts due or to become due to such Grantor in respect of any Intellectual
Property. In connection with such collections, each Grantor may take (and, at the Secured Party’s reasonable direction, shall
take) such action as such Grantor or the Secured Party may deem reasonably necessary or advisable to enforce collection of such
amounts. Notwithstanding the foregoing, the Secured Party shall have the right at any time, to notify, or require any Grantor to
notify, any obligors with respect to any such amounts of the existence of the security interest created hereby.

 

(i)   Commercial
Tort Claims

 

(i)          Representations
and Warranties. Each Grantor hereby represents and warrants, on each Representation Date, that Schedule VII (as such Schedule may
be amended or supplemented from time to time) sets forth all Commercial Tort Claims of each Grantor; and

 

(ii)         Covenants
and Agreements. Each Grantor hereby covenants and agrees that with respect to any Commercial Tort Claim hereafter arising it
shall deliver to the Secured Party a completed Pledge Supplement, substantially in the form of Annex A attached hereto, together
with all Supplements to Schedules thereto, identifying such new Commercial Tort Claims.

 

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Section
5.   DIVIDENDS, DISTRIBUTIONS AND VOTING. (a) Except as provided
in the next sentence, in the event any Grantor receives (x) any dividends, interest or distributions on any Investment Related
Property, or (y) any securities or other property upon the merger, consolidation, liquidation or dissolution of any issuer of
any Investment Related Property, then (1) such dividends, interest or distributions and securities or other property shall be
included in the definition of Collateral without further action and (2) such Grantor shall immediately take all steps, if any,
necessary or advisable to ensure the validity, perfection, priority and, if applicable, control of the Secured Party over such
dividends, distributions, interest, securities or other property (including, without limitation, delivery thereof to the Secured
Party) and pending any such action such Grantor shall be deemed to hold such dividends, distributions, interest, securities or
other property in trust for the benefit of the Secured Party and shall be segregated from all other property of such Grantor.
Notwithstanding the foregoing, so long as no Event of Default shall have occurred and be continuing, the Secured Party authorizes
each Grantor to retain all ordinary cash dividends and distributions paid in the normal course of the business of the issuer and
consistent with the past practice of the issuer and all scheduled payments of interest.

 

(b)   Voting.

 

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

 

(1)         except
as otherwise provided under the covenants and agreements relating to Investment Related Property in this Agreement or elsewhere
herein or in the Note Purchase Agreement, each Grantor shall be entitled to exercise or refrain from exercising any and all voting
and other consensual rights pertaining to the Investment Related Property or any part thereof for any purpose not inconsistent
with the terms of this Agreement or the Note Purchase Agreement; provided, no Grantor shall exercise or refrain from exercising
any such right if the Secured Party shall have notified such Grantor that, in the Secured Party’s reasonable judgment, such
action would have a Material Adverse Effect on the value of the Investment Related Property or any part thereof; and provided further,
such Grantor shall give the Secured Party at least five (5) Business Days prior written notice of the manner in which it intends
to exercise, or the reasons for refraining from exercising, any such right; it being understood, however, that neither the voting
by such Grantor of any Pledged Stock for, or such Grantor’s consent to, the election of directors (or similar governing body)
at a regularly scheduled annual or other meeting of stockholders or with respect to incidental matters at any such meeting, nor
such Grantor’s consent to or approval of any action otherwise permitted under this Agreement and the Note Purchase Agreement,
shall be deemed inconsistent with the terms of this Agreement or the Note Purchase Agreement within the meaning of this Section 5(b)(i)(1),
and no notice of any such voting or consent need be given to the Secured Party; and

 

(2)         the
Secured Party shall promptly execute and deliver (or cause to be executed and delivered) to each Grantor all proxies, and other
instruments as such Grantor may from time to time reasonably request for the purpose of enabling such Grantor to exercise the voting
and other consensual rights when and to the extent which it is entitled to exercise pursuant to clause (1) above.

 

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

 

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(1)         all
rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights which it would otherwise be
entitled to exercise pursuant hereto shall cease and all such rights shall thereupon become vested in the Secured Party who shall
thereupon have the sole right to exercise such voting and other consensual rights; and

 

(2)         in
order to permit the Secured Party to exercise the voting and other consensual rights which it may be entitled to exercise pursuant
hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder: (1) each Grantor shall
promptly execute and deliver (or cause to be executed and delivered) to the Secured Party all proxies, dividend payment orders
and other instruments as the Secured Party may from time to time reasonably request and (2) each Grantor acknowledges that the
Secured Party may utilize the power of attorney set forth in Section 7.

 

Section
6.   ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES.

 

(a)   Access;
Right of Inspection. Upon reasonable prior notice, the Secured Party shall have full and free access during normal business hours
to all the books, correspondence and records of each Grantor, and the Secured Party and its representatives may examine the same,
take extracts therefrom and make photocopies thereof, and each Grantor agrees to render to the Secured Party, at such Grantor’s
cost and expense, such clerical and other assistance as may be reasonably requested with regard thereto. If requested by a Grantor,
and necessary in order to prevent such Grantor from breaching any third party contracts, the Secured Party shall agree to keep
confidential information obtained from the Grantor, subject to customary exceptions, including without limitation, if required
by legal or regulatory process and if necessary in connection with the enforcement of the Secured Party’s rights under the
Transaction Documents. Upon reasonable prior notice, the Secured Party and its representatives shall also have the right to enter
any premises of each Grantor and inspect any property of each Grantor where any of the Collateral of such Grantor granted pursuant
to this Agreement is located for the purpose of inspecting the same, observing its use or otherwise protecting its interests therein.

 

(b)   Further
Assurances.

 

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

 

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

 

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(2)         take
all actions necessary to ensure the recordation of appropriate evidence of the liens and security interest granted hereunder in
the Intellectual Property with any intellectual property registry in which said Intellectual Property is registered or in which
an application for registration is pending including, without limitation, the United States Patent and Trademark Office, the United
States Copyright Office, the various Secretaries of State, and the foreign counterparts on any of the foregoing;

 

(3)         at
any reasonable time, upon request by the Secured Party, exhibit the Collateral to and allow inspection of the Collateral by the
Secured Party, or persons designated by the Secured Party; and

 

(4)         at
the Secured Party’s request, appear in and defend any action or proceeding that may affect such Grantor’s Title to
or the Secured Party’s security interest in all or any part of the Collateral.

 

(ii)         Each
Grantor hereby authorizes the filing of any financing statements or continuation statements, and amendments to financing statements,
or any similar document in any jurisdictions and with any filing offices as the Secured Party may determine, in its sole discretion,
are necessary or advisable to perfect or otherwise protect the security interest granted to the Secured Party herein. Such financing
statements may describe the Collateral in the same manner as described herein or may contain an indication or description of collateral
that describes such property in any other manner as the Secured Party may determine, in its sole discretion, is necessary, advisable
or prudent to ensure the perfection of the security interest in the Collateral granted to the Secured Party herein, including,
without limitation, describing such property as “all assets” or “all personal property, whether now owned or
hereafter acquired. Each Grantor shall furnish to the Secured Party from time to time statements and schedules further identifying
and describing the Collateral and such other reports in connection with the Collateral as the Secured Party may reasonably request,
all in reasonable detail.

 

(iii)        Each
Grantor hereby authorizes the Secured Party to modify this Agreement after obtaining such Grantor’s approval of or signature
to such modification by amending Schedule VI hereto (as such Schedule may be amended or supplemented from time to time)
to include reference to any right, Title or interest in any existing Intellectual Property or any Intellectual Property acquired
or developed by any Grantor after the execution hereof.

 

Section
7.   SECURED PARTY APPOINTED ATTORNEY-IN-FACT, IRREVOCABLE POWER OF ATTORNEY. Each Grantor hereby irrevocably
appoints the Secured Party (such appointment being coupled with an interest) as such Grantor’s attorney-in-fact, with full
authority in the place and stead of such Grantor, and authorizes the Secured Party, in the name of such Grantor, the Secured Party
or otherwise, from time to time in the Secured Party’s discretion, to take any action and to execute any instrument that
the Secured Party may deem reasonably necessary or advisable to accomplish the purposes of this agreement, including, without
limitation, the following:

 

(i)          upon
the occurrence and during the continuance of any Event of Default, to obtain and adjust insurance required to be maintained by
such Grantor or paid to the Secured Party pursuant to the Transaction Documents;

 

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

 

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

 

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

 

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

 

(vi)        to
take or cause to be taken all actions necessary to perform or comply or cause performance or compliance with the terms of this
Agreement, including, without limitation, access to pay or discharge taxes or Encumbrances levied or placed upon or threatened
against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by the
Secured Party in its sole discretion, any such payments made by the Secured Party to become obligations of such Grantor to the
Secured Party, due and payable immediately without demand; and

 

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

 

Section
8.   REMEDIES.

 

(a)   Generally.

 

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

 

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

 

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

 

(3)         prior
to the disposition of the Collateral, store, process, repair or recondition the Collateral or otherwise prepare the Collateral
for disposition in any manner to the extent the Secured Party deems appropriate; and

 

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

 

(ii)         The
Secured Party or any Secured Party may be the purchaser of any or all of the Collateral at any public or private (to the extent
to portion of the Collateral being privately sold is of a kind that is customarily sold on a recognized market or the subject of
widely distributed standard price quotations) sale in accordance with the UCC and the Secured Party, as collateral agent for and
representative of the Secured Parties, shall be entitled, for the purpose of bidding and making settlement or payment of the purchase
price for all or any portion of the Collateral sold at any such sale made in accordance with the UCC, to use and apply any of the
Secured Obligations as a credit on account of the purchase price for any Collateral payable by the Secured Party at such sale.
Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of each Grantor,
and each Grantor hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which
it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. Each Grantor
agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to such Grantor of the
time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.
The Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Secured
Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that it would not
be commercially unreasonable for the Secured Party to dispose of the Collateral or any portion thereof by using Internet sites
that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing
so, or that match buyers and sellers of assets. Each Grantor hereby waives any claims against the Secured Party arising by reason
of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might
have been obtained at a public sale, even if the Secured Party accepts the first offer received and does not offer such Collateral
to more than one offeree. If the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the Secured
Obligations, each Grantor shall be liable for the deficiency and the fees of any attorneys employed by the Secured Party to collect
such deficiency. Each Grantor further agrees that a breach of any of the covenants contained in this Section will cause irreparable
injury to the Secured Party, that the Secured Party has no adequate remedy at law in respect of such breach and, as a consequence,
that each and every covenant contained in this Section shall be specifically enforceable against such Grantor, and such Grantor
hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense
that no default has occurred giving rise to the Secured Obligations becoming due and payable prior to their stated maturities.
Nothing in this Section shall in any way alter the rights of the Secured Party hereunder.

 

(iii)        The
Secured Party may sell the Collateral without giving any warranties as to the Collateral. The Secured Party may specifically disclaim
or modify any warranties of title or the like. This procedure will not be considered to adversely affect the commercial reasonableness
of any sale of the Collateral.

 

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(iv)        The
Secured Party shall have no obligation to marshal any of the Collateral.

 

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

 

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

 

(2)         Grantors
shall not adjust, settle or compromise the amount or payment of any such amount or release wholly or partly any obligor with respect
thereto or allow any credit or discount thereon.

 

(b)   Application
of Proceeds. Except as expressly provided elsewhere in this Agreement, all proceeds received by the Secured Party in respect of
any sale, any collection from, or other realization upon all or any part of the Collateral shall be applied in full or in part
by the Secured Party against, the Secured Obligations in the following order of priority: first, to the payment of all costs and
expenses of such sale, collection or other realization, including reasonable compensation to the Secured Party and its agents and
counsel, and all other expenses, liabilities and advances made or incurred by the Secured Party in connection therewith, and all
amounts for which the Secured Party is entitled to indemnification hereunder (in its capacity as the Secured Party) and all advances
made by the Secured Party hereunder for the account of the applicable Grantor, and to the payment of all costs and expenses paid
or incurred by the Secured Party in connection with the exercise of any right or remedy hereunder or under any Transaction Document,
all in accordance with the terms hereof or thereof; second, to the extent of any excess of such proceeds, to the payment of all
other Secured Obligations for the ratable benefit of the Secured Party; and third, to the extent of any excess of such proceeds,
to the payment to or upon the order of such Grantor or to whosoever may be lawfully entitled to receive the same or as a court
of competent jurisdiction may direct.

 

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

 

(d)   Cash
& Cash Proceeds. If an Event of Default shall have occurred and be continuing, (1) the Secured Party shall have the right to
apply the balance from any Deposit Account or instruct the bank at which any Deposit Account is maintained to pay the balance of
any Deposit Account to or for the benefit of the Secured Party and (2) all Cash and Cash Proceeds shall be held by such Grantor
in trust for the Secured Party, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor,
be turned over to the Secured Party in the exact form received by such Grantor (duly indorsed by such Grantor to the Secured Party,
if required) and held by the Secured Party. All such funds from any Deposit Account, Cash and Cash Proceeds or any other Money
held by the Secured Party may, in the sole discretion of the Secured Party, (A) be held by the Secured Party for the ratable benefit
of the Secured Party, as collateral security for the Secured Obligations (whether matured or unmatured) and/or (B) then
or at any time thereafter may be applied by the Secured Party against the Secured Obligations then due and owing.

 

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(e)   Investment
Related Property. In addition to the rights and remedies specified above, the following provisions shall also be applicable to
Investment Related Property. Each Grantor recognizes that, by reason of certain prohibitions contained in the Securities Act of
1933 and applicable state securities laws, the Secured Party may be compelled, with respect to any sale of all or any part of the
Investment Related Property conducted without prior registration or qualification of such Investment Related Property under the
Securities Act and/or such state securities laws, to limit purchasers to those who will agree, among other things, to acquire the
Investment Related Property for their own account, for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges that any such private sale may be at prices and on terms less favorable than those obtainable through a public
sale without such restrictions (including a public offering made pursuant to a registration statement under the Securities Act)
and, notwithstanding such circumstances, each Grantor agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner and that the Secured Party shall have no obligation to engage in public sales and no obligation
to delay the sale of any Investment Related Property for the period of time necessary to permit the issuer thereof to register
it for a form of public sale requiring registration under the Securities Act or under applicable state securities laws, even if
such issuer would, or should, agree to so register it. If the Secured Party determines to exercise its right to sell any or all
of the Investment Related Property, upon written request, each Grantor shall and shall cause each issuer of any Pledged Stock to
be sold hereunder, each partnership and each limited liability company from time to time to furnish to the Secured Party all such
information as the Secured Party may request in order to determine the number and nature of interest, shares or other instruments
included in the Investment Related Property which may be sold by the Secured Party in exempt transactions under the Securities
Act and the rules and regulations of the Securities and Exchange Commission thereunder, as the same are from time to time in effect.

 

(f)   Intellectual
Property. In addition to the rights and remedies specified above, the following provisions shall also be applicable to Intellectual
Property. 

 

(i)           Anything
contained herein to the contrary notwithstanding, upon the occurrence and during the continuation of an Event of Default:

 

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

 

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(2)         upon
written demand from the Secured Party, each Grantor shall grant, assign, convey or otherwise transfer to the Secured Party or such
Secured Party’s designee all of such Grantor’s right, title and interest in and to the Intellectual Property and
shall execute and deliver to the Secured Party such documents as are necessary or appropriate to carry out the intent and purposes
of this Agreement; and

 

(3)         within
five (5) Business Days after written notice from the Secured Party, each Grantor shall make available to the Secured Party, to
the extent within such Grantor’s power and authority, such personnel in such Grantor’s employ on the date of such Event
of Default as the Secured Party may reasonably designate, by name, title or job responsibility, to permit such Grantor to
continue, directly or indirectly, to produce, advertise and sell the products and services sold or delivered by such Grantor under
or in connection with the Trademarks, Trademark Licenses, such persons to be available to perform their prior functions on the
Secured Party’s behalf and to be compensated by the Secured Party at such Grantor’s expense on a per diem, pro-rata
basis consistent with the salary and benefit structure applicable to each as of the date of such Event of Default.

 

(ii)         Solely
for the purpose of enabling the Secured Party to exercise rights and remedies under this Section 8 and at such time as the
Secured Party shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the Secured Party,
to the extent it has the right to do so, an irrevocable, nonexclusive worldwide license (exercisable without payment of royalty
or other compensation to such Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and inspection
in favor of the Trademark Owner to avoid the risk of invalidation of said Trademarks, to use, operate under, license, or sublicense
any Intellectual Property now or hereafter owned by or licensed to such Grantor.

 

Section
9.   CONTINUING SECURITY INTEREST; TRANSFER OF SECURED OBLIGATIONS

 

This Agreement shall create a continuing security
interest in the Collateral and shall remain in full force and effect until the payment in full of all Secured Obligations, the
cancellation or termination of the commitments and any other contingent obligation included in the Secured Obligations, be binding
upon each Grantor, its successors and assigns, and inure, together with the rights and remedies of the Secured Party hereunder,
to the benefit of the Secured Party and its successors, transferees and assigns. Without limiting the generality of the foregoing,
but subject to the terms of the Transaction Documents, the Secured Party may assign or otherwise transfer any Secured Obligations
held by it to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted
to the Secured Party herein or otherwise. Upon the payment in full of all Secured Obligations, the cancellation or termination
of the commitments and any other contingent obligation included in the Secured Obligations, the security interest granted hereby
shall terminate hereunder and of record, the power of attorney granted to the Secured Party pursuant to Section 7 shall terminate,
and all rights to the Collateral shall revert to Grantors. Upon any such termination the Secured Party shall, at Grantors’
expense, execute and deliver to Grantors such documents as Grantors shall reasonably request to evidence such termination.

 

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Section
10.   STANDARD OF CARE; SECURED PARTY MAY PERFORM.

 

The powers conferred on the Secured Party
hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.
Except for the exercise of reasonable care in the custody of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Secured Party shall have no duty as to any Collateral or as to the taking of any necessary steps
to preserve rights against prior parties or any other rights pertaining to any Collateral. The Secured Party shall be deemed to
have exercised reasonable care in the custody and preservation of Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which the Secured Party accords its own property. Neither the Secured Party nor any of its directors,
officers, employees or agents shall be liable for failure to demand, collect or realize upon all or any part of the Collateral
or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of
any Grantor or otherwise. If any Grantor fails to perform any agreement contained herein, the Secured Party may itself perform,
or cause performance of, such agreement, and the expenses of the Secured Party incurred in connection therewith shall be payable
by each Grantor and pending such payment shall be included in the obligations secured hereby.

 

Section
11.   INDEMNITY AND EXPENSES.

 

(i)           Each
Grantor agrees:

 

(1)         to
defend (subject to Indemnitees’ selection of counsel), indemnify, pay and hold harmless each Indemnitee, from and against
any and all claims, losses and liabilities in any way relating to, growing out of or resulting from this Agreement and the transactions
contemplated hereby (including without limitation enforcement of this Agreement), except to the extent such claims, losses or liabilities
result from such Indemnitee’s gross negligence or willful misconduct; and

 

(2)         to
pay to the Secured Party promptly following written demand the amount of any and all reasonable costs and reasonable expenses,
including the reasonable fees and expenses of its counsel and of any experts and agents in accordance with the terms and conditions
of the Note Purchase Agreement.

 

(ii)          Expenses.
Each Grantor agrees to pay promptly all the actual costs and reasonable expenses of creating and perfecting Encumbrances in favor
of the Secured Party, including search, filing and recording fees, expenses and taxes, stamp or documentary taxes, search fees,
title insurance premiums and reasonable fees, expenses and disbursements of counsel to the Secured Party and of counsel providing
any opinions that the Secured Party may request in respect of the Collateral or the Encumbrances created pursuant to the Collateral
Documents; all the actual costs and reasonable fees, expenses and disbursements of any auditors, accountants, consultants or appraisers;
all the actual costs and reasonable expenses (including the reasonable fees, expenses and disbursements of any appraisers, consultants,
advisors and agents employed or retained by the Secured Party and its counsel) in connection with the custody or preservation of
any of the Collateral; and after the occurrence of a Default or an Event of Default, all costs and expenses, including reasonable
attorneys’ fees (including allocated costs of internal counsel) and costs of settlement, incurred by the Secured Party in
enforcing any Secured Obligations of or in collecting any payments due from any Grantor hereunder or under the other Transaction
Documents by reason of such Default or Event of Default (including in connection with the sale of, collection from, or other realization
upon any of the Collateral) or in connection with any refinancing or restructuring of the credit arrangements provided hereunder
in the nature of a “work-out” or pursuant to any insolvency or bankruptcy cases or proceedings.

 

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(iii)        The
obligations of each Grantor in this Section 11 shall survive the termination of this Agreement and the discharge of
such Grantor’s other obligations under this Agreement, the Note Purchase Agreement and any other Transaction Documents.

 

Section
12.   MISCELLANEOUS.

 

(a)   Notices.
Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to each
Grantor or the Secured Party, shall be sent to such Person’s address as set forth in the Note Purchase Agreement or in the
other relevant Transaction Document. Each notice hereunder shall be in writing and may be personally served, telexed or sent by
telefacsimile or United States mail or courier service and shall be deemed to have been given when delivered in person or by courier
service and signed for against receipt thereof, upon receipt of telefacsimile or telex, or three Business Days after depositing
it in the United States mail with postage prepaid and properly addressed; provided, no notice to the Secured Party shall be effective
until received by the Secured Party.

 

(b)   Amendments
and Waivers.

 

(i)          Secured
Party’s Consent. No amendment, modification, termination or waiver of any provision of this Agreement, or consent to
any departure by any Grantor therefrom, shall in any event be effective without the written concurrence of the Secured Party.

 

(ii)         No
Waiver; Remedies Cumulative. No failure or delay on the part of the Secured Party in the exercise of any power, right or privilege
hereunder or under any other Transaction Document shall impair such power, right or privilege or be construed to be a waiver of
any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other power, right or privilege. All rights, powers and remedies existing under this Agreement
and the other Transaction Documents are cumulative, and not exclusive of, any rights or remedies otherwise available. Any forbearance
or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power
or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.

 

(c)   Successors
and Assigns. This Agreement shall be binding upon the parties hereto and their respective successors and assigns including all
persons who become bound as debtor to this Agreement. No Grantor shall, without the prior written consent of the Secured Party,
assign any right, duty or obligation hereunder.

 

(d)   Independence
of Covenants. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations
of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

 

(e)   Survival
of Representations, Warranties and Agreements. All representations, warranties and agreements made herein shall survive the execution
and delivery hereof. Notwithstanding anything herein or implied by law to the contrary, the agreements of each Grantor set forth
in Sections 10 and 11 shall survive the payment of the Secured Obligations and the termination hereof.

 

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(f)   Marshaling;
Payments Set Aside. The Secured Party shall not be under any obligation to marshal any assets in favor of any Grantor or any other
Person or against or in payment of any or all of the Secured Obligations.

 

(g)   Severability.
In case any provision in or obligation hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

(h)   Headings.
Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any
other purpose or be given any substantive effect.

 

(i)   APPLICABLE
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION
OF ANY LAW OTHER THAN THE LAW OF STATE OF NEW YORK.

 

(j)   CONSENT
TO JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY GRANTOR ARISING OUT OF OR RELATING HERETO OR ANY OTHER TRANSACTION
DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY
AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH GRANTOR, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,
IRREVOCABLY ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS; AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE GRANTOR AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 12;
AGREES THAT SUCH SERVICE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE GRANTOR IN ANY SUCH PROCEEDING IN ANY
SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND AGREES THAT SECURED PARTY RETAINS THE
RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER
JURISDICTION.

 

(k)   WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER TRANSACTION DOCUMENTS. THE SCOPE OF THIS WAIVER IS INTENDED TO
BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH
PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT
MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 12(K)
AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

    	36

    	 

    

 

(l)   Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original,
but all such counterparts together shall constitute but one and the same instrument.

 

(m)   Effectiveness.
This Agreement shall become effective upon the execution of a counterpart hereof by each of the parties hereto and receipt by Grantors
and the Secured Party of written or telephonic notification of such execution and authorization of delivery thereof.

 

(n)   Entire
Agreement. This Agreement and the other Transaction Documents embody the entire agreement and understanding between Grantors and
the Secured Party and supersede all prior agreements and understandings between such parties relating to the subject matter hereof
and thereof. Accordingly, the Transaction Documents may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties. There are no unwritten oral agreements between the parties.

  

    	37

    	 

    

 

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

 

	 	THROWDOWN INDUSTRIES
	 	HOLDINGS, LLC
	 	 	 
	 	By:	/s/ David E. Vautrin 
	 	Name: David E. Vautrin 
	 	Title:  CEO
	 	 	 
	 	THROWDOWN INDUSTRIES, LLC
	 	 	 
	 	By:	/s/ David E. Vautrin 
	 	Name: David E. Vautrin 
	 	Title:  CEO
	 	 	 
	 	THROWDOWN INDUSTRIES, INC.
	 	 	 
	 	By:	/s/ David E. Vautrin 
	 	Name: David E. Vautrin 
	 	Title:  CEO

 

	 	PIMCO FUNDS: PRIVATE ACCOUNT PORTFOLIO SERIES:  PIMCO HIGH YIELD PORTFOLIO
	 	By: Pacific Investment Management Company LLC, as its Investment Advisor, acting through Investors
	 	Fiduciary Trust Company, in the Nominee Name of IFTCO,
	 	as the Secured Party
	 	 	 
	 	By:	/s/ T. Christian Stracke
	 	 	Name: T. Christian Stracke
	 	 	Title: Managing Director 

 

[Signature Page to Pledge and Security
Agreement]

  

    	 

    	 

    

 

 

ANNEX A

 

PLEDGE SUPPLEMENT

 

This PLEDGE SUPPLEMENT, dated [mm/dd/yy],
is delivered by [NAME OF GRANTOR OR GRANTORS] a [NAME OF STATE OF INCORPORATION] [TYPE OF ENTITY] (the “Grantor”)
pursuant to the Pledge and Security Agreement, dated as of [mm/dd/yy] (as it may be from time to time amended, restated,
modified or supplemented, the “Pledge Agreement”), among the Grantor, the other “Grantors” named therein,
and [NAME OF PURCHASER], as Secured Party. Capitalized terms used herein not otherwise defined herein shall have the meanings
ascribed thereto in the Pledge Agreement.

 

[The][Each] Grantor hereby confirms
the grant to the Secured Party set forth in the Pledge Agreement of, and does hereby grant to the Secured Party, a security interest
in all of such Grantor’s right, title and interest in and to all Collateral, including without limitation, that specified
on the schedule attached hereto, and agrees that such attached schedule shall supplement and become a part of the relevant Schedule(s)
to the Pledge Agreement. Grantor represents and warrants that the attached schedule is a true and correct list of all Collateral
of the type required to be included on the applicable Schedule(s) to the Pledge Agreement being supplemented hereby and that it
has complied with all provisions of the Pledge Agreement relating thereto and that the Secured Party has a valid, perfected first
priority security interest therein.

 

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

 

	 	[NAME OF GRANTOR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	S-VII-2

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