Document:

Exhibit
10.4

 

 

St.
Lawrence Zinc Company, LLC,

as
Mortgagor,

 

to

 

TCA
GLOBAL CREDIT MASTER FUND, LP,

as
Mortgagee

 

 

 

MORTGAGE,
SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING

 

 

 

	 	Dated:
    	As
    of June 28, 2016	 
	 	 	 	 
	 	Location:	 	 
	 	 	 	 
	 	County:	 	 

 

DOCUMENT
PREPARED BY AND WHEN RECORDED, RETURN TO:

 

Lucosky
Brookman LLP

101
Wood Avenue South, 5th Floor

Woodbridge,
NJ 08830

Attn:
Seth Brookman, Esq.

 

    	 		 

    	 		 

    

 

TABLE
OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	Background	 	1
	Granting Clauses	 	2
	Terms and Conditions	 	6
	 	1.	Defined
    Terms.	 	6
	 	2.	Warranty
    of Title.	 	6
	 	3.	Payment
    of Obligations.	 	6
	 	4.	Requirements.	 	6
	 	5.	Payment
    of Taxes and Other Impositions.	 	7
	 	6.	Insurance.	 	7
	 	7.	Restrictions
    on Liens and Encumbrances.	 	8
	 	8.	Due
    on Sale and Other Transfer Restrictions.	 	8
	 	9.	Condemnation/Eminent
    Domain.	 	8
	 	10.	Leases.	 	8
	 	11.	Further
    Assurances.	 	8
	 	12.	Mortgagee’s
    Right to Perform.	 	9
	 	13.	Remedies.	 	9
	 	14.	Right
    of Mortgagee to Credit Sale.	 	11
	 	15.	Appointment
    of Receiver.	 	11
	 	16.	Bankruptcy.	 	11
	 	17.	Extension,
    Release, etc.	 	12
	 	18.	Security
    Agreement under Uniform Commercial Code.	 	12
	 	19.	Assignment
    of Rents.	 	13
	 	20.	Additional
    Rights.	 	14
	 	21.	Notices.	 	14
	 	22.	No
    Oral Modification.	 	14
	 	23.	Partial
    Invalidity.	 	14
	 	24.	Mortgagor’s
    Waiver of Rights.	 	14
	 	25.	Remedies
    Not Exclusive.	 	15
	 	26.	Multiple
    Security.	 	16
	 	27.	Successors
    and Assigns.	 	17
	 	28.	No
    Waivers, etc.	 	17
	 	29.	Governing
    Law, etc.	 	17
	 	30.	Certain
    Definitions.	 	17
	 	31.	Maximum
    Rate of Interest.	 	18
	 	32.	Release.	 	18
	 	33.	Last
    Dollars Secured; Priority.	 	18
	 	34.	Expenditures
    and Expenses.	 	18
	 	35.	State
    Specific Provisions.	 	19
	 	36.	Receipt
    of Copy.	 	20

 

    	 		 

    	 		 

    

 

MORTGAGE,
SECURITY AGREEMENT,

ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING

 

THIS
MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING, dated as of June 28, 2016, is made by St.
Lawrence Zinc Company LLC, a Delaware limited liability company (“Mortgagor”), whose address is 8307
Shaffer Parkway, Suite 201, Littleton, Colorado 80127, to TCA GLOBAL CREDIT MASTER FUND, LP, as referred to below (in such capacity,
“Mortgagee”), whose address is 3960 Howard Hughes Parkway, Suite 500, Las Vegas, NV 89169. References to this
“Mortgage” or “Security Instrument” shall mean this instrument and any and all renewals,
modifications, amendments, supplements, extensions, consolidations, substitutions, spreaders and replacements of this instrument.

 

Background

 

1.
Star Mountain Resources, Inc., as borrower (the “Borrower”), and Mortgagee are parties to that certain Securities
Purchase Agreement dated as of March 31, 2016 and effective as of June 28, 2016 (as the same may be amended, supplemented or otherwise
modified from time to time, the “Purchase Agreement”). The terms of the Purchase Agreement are incorporated
by reference in this Mortgage as if the terms thereof were fully set forth herein. In the event of any conflict between the provisions
of this Mortgage and the provisions of the Purchase Agreement, the applicable provisions of the Purchase Agreement shall govern
and control.

 

2.
Pursuant to the Purchase Agreement, the Mortgagee has agreed to purchase from the Borrower certain senior secured convertible
redeemable debentures (the “Debentures”) upon the terms and subject to the conditions set forth therein.

 

3.
The Mortgagor is a subsidiary of the Borrower.

 

4.
The proceeds of the sale of the Debentures to the Mortgagee under the Purchase Agreement will be used in part to enable the Borrower
to make valuable transfers to Mortgagor in connection with the operation of its business.

 

5.
The Borrower and Mortgagor are engaged in related businesses, and Mortgagor will derive substantial direct and indirect benefit
from the sale and purchase of the Debentures under the Purchase Agreement.

 

6.
Mortgagor (i) is the owner of the fee simple estate in the parcel(s) of real property described on Schedule A attached
hereto (the “Land”) and (ii) owns, leases or otherwise has the right to use all of the buildings, structures,
fixtures, additions, enlargements, alleyways and connecting tunnels, sidewalks, utility pipes, conduits and lines, parking areas,
and roadways if any, presently situated upon the Land, extensions, modifications, repairs, replacements and improvements now or
hereafter erected or located on the Land and any golf courses, driving ranges, tennis courts, putting greens and any other income
producing Land now or hereafter improved (collectively, the “Improvements”; the Land and the Improvements being
collectively referred to as the “Real Estate”).

 

    	 		 

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7.
It is a requirement of the Purchase Agreement that Mortgagor execute and deliver this Mortgage to Mortgagee for the benefit of
the Mortgagee.

 

Granting
Clauses

 

For
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Mortgagor agrees that to secure
the following (collectively, the “Obligations”): (i) payment of the unpaid principal of and interest on the
Debentures and all other obligations and liabilities of the Credit Parties (including, without limitation, interest accruing at
the then applicable rate provided in the Debenture after the maturity of the Debentures and interest accruing at the then applicable
rate provided in the Debenture after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) to the Mortgagee, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, the Purchase Agreement, the Debenture, this Mortgage, the other
Transaction Documents or any other document made, delivered or given in connection therewith, in each case whether on account
of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the Mortgagee that are required to be paid by Borrower pursuant to the terms of any of
the foregoing agreements), (ii) all other obligations and liabilities of the Borrower, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with,
the Purchase Agreement, the Debentures, this Mortgage (including, without limitation, all fees and disbursements of counsel to
the Mortgagee that are required to be paid by the Borrower pursuant to the terms of the Purchase Agreement);

 

MORTGAGOR
HEREBY CONVEYS TO MORTGAGEE AND HEREBY GRANTS, SELLS, BARGAINS, CONFIRMS, ASSIGNS, TRANSFERS AND SETS OVER TO MORTGAGEE, AND GRANTS
MORTGAGEE, INSOFAR AS ANY PROPERTY CONSTITUTES PERSONAL PROPERTY, A SECURITY INTEREST IN:

 

(a)
the Land;

 

(b)
all additional lands, estates and development rights hereafter acquired by the Credit Parties for use in connection with the Land
and the development of the Land and all additional lands and estates therein which may, from time to time, by supplemental mortgage
or otherwise be expressly made subject to the lien of this Security Instrument;

 

(c)
all right, title and interest Mortgagor now has or may hereafter acquire in and to the Improvements or any part thereof (whether
owned in fee by Mortgagor or otherwise) and all the estate, right, title, claim or demand whatsoever of Mortgagor, in possession
or expectancy, in and to the Real Estate or any part thereof;

 

(d)
all of the present or hereafter acquired right, title and interest in and to any patented mining claims, unpatented mining claims,
unpatented millsite claims and leases on the Land, together with all appurtenances thereto and any other right, title or interest
in or to the minerals purported to be covered by the Property, including, without limitation, any amendments or relocations of
unpatented mining claims encompassed within the Property or portions thereof or gaps therein;

 

    	 		 

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(e)
all right, title and interest of Mortgagor in, to and under all easements, rights of way, licenses, operating agreements, abutting
strips and gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water and flowage rights, development
rights, air rights, mineral and soil rights, royalties, ditch and ditch rights, standing and fallen timber, and all estates, rights,
titles, interests, privileges, licenses, tenements, hereditaments and appurtenances belonging, relating or appertaining to the
Real Estate, and any reversions, remainders, rents, issues, profits and revenue thereof and all land lying in the bed of any street,
road or avenue, in front of or adjoining the Real Estate to the center line thereof;

 

(f)
all right, title and interest of Mortgagor in, to and under all minerals and precious metals in, on or under the Real Estate,
including all of the severed and extracted minerals produced from the Real Estate;

 

(g)
all right, title and interest of Mortgagor in, to and under all of the fixtures, chattels, business machines, machinery, apparatus,
equipment, furnishings, fittings, appliances and articles of personal property of every kind and nature whatsoever, and all appurtenances
and additions thereto and substitutions or replacements thereof (together with, in each case, attachments, components, parts and
accessories) currently owned or subsequently acquired by Mortgagor and now or subsequently attached to, or contained in or used
or usable in any way in connection with any operation or letting of the Real Estate, including but without limiting the generality
of the foregoing, all sheating, electrical, and mechanical equipment, lighting, switchboards, plumbing, ventilating, air conditioning
and air-cooling apparatus, incinerating equipment, loading and unloading equipment and systems, communication systems (including
satellite dishes and antennae), sprinkler systems and other fire prevention and extinguishing apparatus and materials, security
systems, motors, engines, machinery, pipes, pumps, tanks, gas pumps, gas tanks, conduits, fittings, and fixtures of every kind
and description (all of the foregoing in this paragraph (e) being referred to as the “Personal Property”);

 

(h)
all right, title and interest of Mortgagor in and to all substitutes and replacements of, and all additions and improvements to,
the Real Estate and the Personal Property, subsequently acquired by or released to Mortgagor or constructed, assembled or placed
by Mortgagor on the Real Estate, immediately upon such acquisition, release, construction, assembling or placement, including,
without limitation, any and all building materials whether stored at the Real Estate or offsite, and, in each such case, without
any further deed, conveyance, assignment or other act by Mortgagor;

 

(i)
all right, title and interest of Mortgagor in, to and under all leases, subleases, underlettings, management agreements, licenses
and other agreements relating to the use of the Real Estate or the equipment or any part thereof, now existing or subsequently
entered into by Mortgagor and whether written or oral and all guarantees of any of the foregoing (collectively, as any of the
foregoing may be amended, restated, extended, renewed or modified from time to time, the “Leases”), and all
rights of Mortgagor in respect of cash and securities deposited thereunder and the right to receive and collect the revenues,
income, rents, issues and profits thereof, together with all other rents, royalties, issues, profits, revenue, income and other
benefits arising from the use and enjoyment of the Mortgaged Property (as defined below) (collectively, the “Rents”)
and all proceeds from the sale or other disposition of the Leases and the right to receive and apply the Rents to the payment
of the Debt;

 

    	 		 

    	 		4

    

 

(j)
all unearned premiums under insurance policies now or subsequently obtained by Mortgagor relating to the Real Estate or Personal
Property and Mortgagor’s interest in and to all proceeds of any such insurance policies (including title insurance policies)
including the right to collect and receive such proceeds, subject to the provisions relating to insurance generally set forth
below; and all awards and other compensation, including the interest payable thereon and the right to collect and receive the
same, made to the present or any subsequent owner of the Real Estate or Personal Property for the taking by eminent domain, condemnation
or otherwise, of all or any part of the Real Estate or any easement or other right therein subject to the provisions set forth
below;

 

(k)
all right, title and interest of Mortgagor in and to (i) all contracts from time to time executed by Mortgagor or any manager
or agent on its behalf relating to the ownership, construction, maintenance, repair, operation, occupancy, sale or financing of
the Real Estate or Personal Property or any part thereof and all agreements and options relating to the purchase or lease of any
portion of the Real Estate or any property which is adjacent or peripheral to the Real Estate, together with the right to exercise
such options and all leases of Personal Property, (ii) all consents, licenses (including liquor licenses, to the extent permitted
by applicable law), building permits, certificates of occupancy and other governmental approvals relating to construction, completion,
occupancy, use or operation of the Real Estate or any part thereof, and (iii) all drawings, plans, specifications and similar
or related items relating to the Real Estate;

 

(l)
all tradenames, trademarks, servicemarks, logos, copyrights, goodwill, books and records and all other general intangibles relating
to or used in connection with the operation of the Real Estate;

 

(m)
all reserves, escrows and deposit accounts maintained by Mortgagor with respect to the Real Estate, including, without limitation,
the Lockbox Account, and all accounts established pursuant to the Purchase Agreement together with all deposits or wire transfers
made to any lockbox account and all cash, checks, drafts, certificates, securities, investment property, financial assets, instruments
and other property held therein from time to time and all proceeds, products, distributions or dividends or substitutions thereon
and thereof;

 

(n)
all accounts and accounts receivablearising out of the leasing and operation of, or the business conducted at or in relation to,
any of the Real Estate;

 

(o)
all deposit, operating or other accounts including the entire balance therein (now or hereafter existing) maintained by or on
behalf of Mortgagor or Manager (to the extent related to Manager’s management and operation of the Property) with any other
banking or financial institution, and all money, instruments, securities, documents, chattel paper, credits, demands, and any
other property, rights, or interests of Mortgagor or Manager related to the Real Estate which at any time shall come into the
possession, custody or control of any other banking or financial institution;

 

    	 		 

    	 		5

    

 

(p)
all books, records and computer software concerning any of the foregoing;

 

(q)
all proceeds, both cash and noncash, of the foregoing; and

 

(r)
any and all other rights of Mortgagor in and to the items set forth in subsections (a) through (q) above.

 

(All
of the foregoing property and rights and interests now owned or held or subsequently acquired by Mortgagor and described in the
foregoing clauses (a) through (c) are collectively referred to as the “Premises”, and those described in the
foregoing clauses (a) through (i) are collectively referred to as the “Mortgaged Property”).

 

TO
HAVE AND TO HOLD the Mortgaged Property and the rights and privileges hereby mortgaged
unto Mortgagee, its successors and assigns for the uses and purposes set forth, until the Obligations are fully paid and fully
performed.

 

This
Mortgage covers present and future sale and purchases of Debentures, in the aggregate amount of the obligations secured hereby,
made by the Mortgagee for the benefit of Mortgagor, and the lien of such sale and purchases of Debentures shall relate back to
the date of this Mortgage.

 

Terms
and Conditions

 

Mortgagor
further represents, warrants, covenants and agrees with Mortgagee as follows:

 

1.
Defined Terms. Capitalized terms used herein (including in the “Background” and “Granting Clauses”
sections above) and not otherwise defined herein shall have the meanings ascribed thereto in the Purchase Agreement. References
in this Mortgage to the “Default Rate” shall mean an interest rate equal to the lesser of (i) twenty-two percent (22%)
per annum or (ii) the maximum interest rate allowable by law. References herein to the “Debt” shall mean the collective
reference to all Obligations outstanding pursuant to the Purchase Agreement, the Debentures, or any other Transaction Document.

 

2.
Warranty of Title. Mortgagor warrants that it has good record title in fee simple to the Real Estate, and good title
to, or a valid leasehold interest in, the rest of the Mortgaged Property, subject only to the matters that are set forth in Schedule
B of the title insurance policy or policies being issued to Mortgagee to insure the lien of this Mortgage and any other lien or
encumbrance as permitted by the Mortgagee in its sole and absolute discretion (the “Permitted Exceptions”).
Mortgagor shall warrant, defend and preserve such title and the lien of this Mortgage against all claims of all persons and entities
(not including the holders of the Permitted Exceptions). Mortgagor represents and warrants that it has the right to mortgage the
Mortgaged Property.

 

    	 		 

    	 		6

    

 

3. Payment
of Obligations. Mortgagor shall pay and perform, or cause to be paid and performed, the Obligations at the times and
places and in the manner specified in the Loan Documents.

 

4. Requirements. (a) Mortgagor shall promptly comply with, or cause to be complied with, and conform to all Laws of all Governmental
Authorities which have jurisdiction over the Mortgaged Property, and all covenants, restrictions and conditions now or later
of record which may be applicable to any of the Mortgaged Property, or to the use, manner of use, occupancy,
possession, operation, maintenance, alteration, repair or reconstruction of any of the Mortgaged Property, except to the
extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

(b)
From and after the date of this Mortgage, Mortgagor shall not by act or omission permit any building or other improvement on any
premises not subject to the lien of this Mortgage to rely on the Premises or any part thereof or any interest therein to fulfill
any Law. Mortgagor shall not by act or omission make any of the Real Estate part of a zoning or tax lot that is not entirely subject
to the lien of this Mortgage.

 

5.
Payment of Taxes and Other Impositions. (a) Promptly when due or prior to the date on which any fine, penalty, interest
or cost may be added thereto or imposed, Mortgagor shall pay and discharge all taxes, charges and assessments of every kind and
nature (including, without limitation, all real property taxes), all charges for any easement or agreement maintained for the
benefit of any of the Real Estate, all general and special assessments, levies, permits, inspection and license fees, all water
and sewer rents and charges, vault taxes, and all other public charges even if unforeseen or extraordinary, imposed upon or assessed
against or which may become a lien on any of the Real Estate, or arising in respect of the occupancy, use or possession thereof,
together with any penalties or interest on any of the foregoing (all of the foregoing are collectively referred to as “Impositions”).
If there is an Event of Default which is continuing, Mortgagor shall within thirty (30) days after each due date deliver to Mortgagee
(i) original or copies of receipted bills and cancelled checks evidencing payment of such Imposition if it is a real estate tax
or other public charge and (ii) evidence acceptable to Mortgagee showing the payment of any other such Imposition. If by law any
Imposition, at Mortgagor’s option, may be paid in installments (whether or not interest shall accrue on the unpaid balance
of such Imposition), Mortgagor may elect to pay such Imposition in such installments and shall be responsible for the payment
of such installments with interest, if any.

 

(b)
If the Mortgagee has failed to pay an Imposition within thirty (30) days of when it is due, Mortgagee with notice to Mortgagor
may pay any such Imposition at any time thereafter. Any sums paid by Mortgagee in discharge of any Impositions shall be payable
on demand by Mortgagor to Mortgagee and the amount so paid shall be added to the Obligations. Any sums paid by Mortgagee in discharge
of any Impositions shall be (i) a lien on the Premises secured hereby prior to any right or title to, interest in, or claim upon
the Premises subordinate to the lien of this Mortgage, and (ii) payable on demand by Mortgagor to Mortgagee together with interest
at the Default Rate.

 

    	 		 

    	 		7

    

 

(c)
Mortgagor shall have the right before any delinquency occurs to contest or object in good faith to the amount or validity of any
material Imposition by appropriate legal proceedings, but such right shall not be deemed or construed in any way as relieving,
modifying, or extending Mortgagor’s covenant to pay any such Imposition at the time and in the manner provided in this Section
unless (i) Mortgagor has given prior written notice to Mortgagee of Mortgagor’s intent so to contest or object to a material
Imposition, (ii) Mortgagor shall demonstrate to Mortgagee’s satisfaction that the legal proceedings shall operate conclusively
to prevent the sale of the Mortgaged Property, or any part thereof, to satisfy such material Imposition prior to final determination
of such proceedings and (iii) Mortgagor shall either (x) furnish a good and sufficient bond or surety as requested by and reasonably
satisfactory to Mortgagee or (y) maintain adequate reserves in conformity with GAAP on Mortgagor’s books, in each case in
the amount of the material Imposition which is being contested plus any interest and penalty which may be imposed thereon
and which could become a lien against the Real Estate or any part of the Mortgaged Property.

 

6.
Insurance. Mortgagor shall obtain and maintain, or cause to be maintained, in full force and effect at all times insurance
with respect to Mortgagor and the Mortgaged Property as required pursuant to the Purchase Agreement, including but not limited
to Section 6.5 of the Purchase Agreement.

 

7. Restrictions
on Liens and Encumbrances. Except for the lien of this Mortgage and the Permitted Exceptions, Mortgagor shall not, without
the prior written consent of Mortgagee, further mortgage, nor otherwise encumber the Mortgaged Property nor create or suffer to
exist any lien, charge or encumbrance on the Mortgaged Property, or any part thereof, whether superior or subordinate to the lien
of this Mortgage and whether recourse or non-recourse.

 

8. Due
on Sale and Other Transfer Restrictions. Except as expressly permitted under the Purchase Agreement, Mortgagor shall
not, without the prior written consent of Mortgagee, sell, transfer, convey or assign all or any portion of, or any interest in,
the Mortgaged Property.

 

9. Condemnation/Eminent
Domain. Upon obtaining knowledge of the institution of any proceedings for the condemnation of the Mortgaged Property,
or any portion thereof, Mortgagor will notify Mortgagee of the pendency of such proceedings. Mortgagee is hereby authorized and
empowered by Mortgagor to settle or compromise any claim in connection with such condemnation and to receive all awards and proceeds
thereof, or otherwise to be held by Mortgagee as collateral to secure the payment and performance of the Obligations. Notwithstanding
the preceding sentence, provided no Event of Default shall have occurred and be continuing, but subject to the Mortgagee’s
sole and absolute discretion, (i) Mortgagor shall, at its expense, diligently prosecute any proceeding relating to such condemnation,
(ii) Mortgagor may settle or compromise any claims in connection therewith and (iii) Mortgagor may receive any awards or proceeds
thereof, provided that Mortgagor shall (a) promptly repair and restore the Mortgaged Property to its condition prior to such condemnation,
regardless of whether any award shall have been received or whether such award is sufficient to pay for the costs of such repair
and restoration or (b) otherwise comply with the provisions of the Purchase Agreement or any other Transaction Document.

 

10. Leases. Mortgagor
shall not (a) execute an assignment or pledge of any Lease relating to all or any portion of the Mortgaged Property other than
in favor of Mortgagee, or (b) without the prior written consent of Mortgagee, which consent shall not be unreasonably withheld
or delayed, execute or permit to exist any Lease of any of the Mortgaged Property.

 

    	 		 

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11. Further
Assurances. (a) To further assure Mortgagee’s rights under this Mortgage, Mortgagor agrees upon written demand
of Mortgagee to do any act or execute any additional documents (including, but not limited to, security agreements on any personalty
included or to be included in the Mortgaged Property and a separate assignment of each Lease in recordable form) as may be reasonably
required by Mortgagee to confirm the lien of this Mortgage and all other rights or benefits conferred on Mortgagee by this Mortgage.

 

(b)
Mortgagor hereby authorizes Mortgagee at any time and from time to time to file any initial financing statements, amendments thereto
and continuation statements as authorized by applicable law, as applicable to all or part of the Personal Property. For purposes
of such filings, Mortgagor agrees to furnish any information requested by Mortgagee promptly upon request by Mortgagee. Mortgagor
also ratifies its authorization for Mortgagee to have filed any like initial financing statements, amendments thereto or continuation
statements, if filed prior to the date of this Security Instrument. Mortgagor hereby irrevocably constitutes and appoints Mortgagee
and any officer or agent of Mortgagee, with full power of substitution, as its true and lawful attorneys in fact with full irrevocable
power and authority in the place and stead of Mortgagor or in Mortgagor’s own name to execute in Mortgagor’s name
any such documents and otherwise to carry out the purposes of this Section 11(b), to the extent that Mortgagor’s authorization
above is not sufficient. To the extent permitted by law, Mortgagor hereby ratifies all acts said attorneys in fact have lawfully
done in the past or shall lawfully do or cause to be done in the future by virtue of this Section 11(b). This power of attorney
is a power coupled with an interest and shall be irrevocable.

 

12. Mortgagee’s
Right to Perform. If Mortgagor fails to perform any of the covenants or agreements of Mortgagor, within the applicable
grace period, if any, provided for in the Purchase Agreement or any other Transaction Document, Mortgagee, without waiving or
releasing Mortgagor from any obligation or default under this Mortgage, may, at any time upon delivery of written notice to Mortgagor
(but shall be under no obligation to) pay or perform the same, and the amount or cost thereof, with interest at the Default Rate,
shall be due on demand from Mortgagor to Mortgagee and the same shall be secured by this Mortgage and shall be a lien on the Mortgaged
Property prior to any right, title to, interest in, or claim upon the Mortgaged Property attaching subsequent to the lien of this
Mortgage. No payment or advance of money by Mortgagee under this Section shall be deemed or construed to cure Mortgagor’s
default or waive any right or remedy of Mortgagee.

 

13.
Remedies. (a) Upon the occurrence and during the continuance of any Event of Default, Mortgagee may immediately take
such action, without notice or demand, as it deems advisable to protect and enforce its rights against Mortgagor and in and to
the Mortgaged Property, including, but not limited to, the following actions, each of which may be pursued concurrently or otherwise,
at such time and in such manner as Mortgagee may determine, in its sole discretion, without impairing or otherwise affecting the
other rights and remedies of Mortgagee:

 

(i)
Mortgagee may declare the entire unpaid Debt to be immediately due and payable.

 

    	 		 

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(ii)
Mortgagee may, to the extent permitted by applicable law, (A) institute and maintain an action of judicial foreclosure against
all or any part of the Mortgaged Property, (B) institute and maintain an action on the Purchase Agreement or any other Transaction
Document, (C) sell all or part of the Mortgaged Property, or (D) take such other action at law or in equity for the enforcement
of this Mortgage or any of the Transaction Documents as the law may allow. Mortgagee may proceed in any such action to final judgment
and execution thereon for all sums due hereunder, together with interest thereon at the applicable Default Rate or a lesser amount
if required by law and all costs of suit, including, without limitation, reasonable attorneys’ fees and disbursements. To
the fullest extent permitted by applicable law, interest at the Default Rate shall be due on any judgment obtained by Mortgagee
from the date of judgment until actual payment is made of the full amount of the judgment.

 

(iii)
The licenses granted to Mortgagor under Section 19(a) hereof shall automatically be revoked and Mortgagee may personally, or by
its agents, attorneys and employees and without regard to the adequacy or inadequacy of the Mortgaged Property or any other collateral
as security for the Obligations enter into and upon the Mortgaged Property and each and every part thereof and exclude Mortgagor
and its agents and employees therefrom without liability for trespass, damage or otherwise (Mortgagor hereby agreeing to surrender
possession of the Mortgaged Property to Mortgagee upon demand at any such time) and use, operate, manage, maintain and control
the Mortgaged Property and every part thereof. Following such entry and taking of possession, Mortgagee shall be entitled, without
limitation, (x) to lease all or any part or parts of the Mortgaged Property for such periods of time and upon such conditions
as Mortgagee may, in its discretion, deem proper, (y) to enforce, cancel or modify any Lease and (z) generally to execute, do
and perform any other act, deed, matter or thing concerning the Mortgaged Property as Mortgagee shall deem appropriate as fully
as Mortgagor might do.

 

(iv)
Mortgagee may exercise any and all rights and remedies granted to a secured party upon default under the Code (as defined below),
including, without limiting the generality of the foregoing: (i) the right to take possession of the Personal Property or any
part thereof, and to take such other measures as Mortgagee may deem necessary for the care, protection and preservation of the
Personal Property, and (ii) request any Credit Party at its expense to assemble the Personal Property and make it available to
Mortgagee at a convenient place acceptable to Mortgagee. Any notice of sale, disposition or other intended action by Mortgagee
with respect to the Personal Property sent to Mortgagor in accordance with the provisions hereof at least five (5) days prior
to such action shall constitute commercially reasonable notice to Mortgagee.

 

(b)
In case of a foreclosure sale, the Real Estate may be sold, at Mortgagee’s election, in one parcel or in more than one parcel
and Mortgagee is specifically empowered (without being required to do so, and in its sole and absolute discretion) to cause successive
sales of portions of the Mortgaged Property to be held.

 

(c)
In the event of any breach of any of the covenants, agreements, terms or conditions contained in this Mortgage, Mortgagee shall
be entitled to enjoin such breach and obtain specific performance of any covenant, agreement, term or condition and Mortgagee
shall have the right to invoke any equitable right or remedy as though other remedies were not provided for in this Mortgage.

 

    	 		 

    	 		10

    

 

(d)
Upon completion of any sale or sales made by Mortgagee under or by virtue of this Mortgage and upon satisfaction of any redemption
period required by law, Mortgagee shall execute and deliver to the purchaser or purchasers at such sale or sales a good and sufficient
instrument, or good and sufficient instruments, conveying, assigning and transferring all estate, right, and title and interest
of Mortgagor in and to the property and rights sold. Any such sale or sales made under the power of sale herein granted or under
or by virtue of judicial proceedings or of a judgment or decree of foreclosure and sale, shall operate to divest all the estate,
right, title, interest, claim and demand whatsoever, whether at law or in equity, of Mortgagor in and to the properties and rights
to be sold, and shall be a perpetual bar both at law and in equity, of Mortgagor and against any and all persons claiming or who
may claim the same, or any part thereof from through or under Mortgagor. The purchaser at any foreclosure sale hereunder may disaffirm
any easement granted or lease made in violation of any provision of this Mortgage, and may take immediate possession of the Mortgaged
Property free from, and despite the terms of, such grant of easement or rental or lease agreement.

 

(e)
It is agreed that if an Event of Default shall occur and be continuing, any and all proceeds of the Mortgaged Property received
by Mortgagee shall be applied in payment of the Obligations.

 

14. Right
of Mortgagee to Credit Sale. Upon the occurrence of any sale made under this Mortgage in connection with the exercise
of remedies hereunder upon the occurrence and during the continuation of any Event of Default, whether made under the power of
sale or by virtue of judicial proceedings or of a judgment or decree of foreclosure and sale, Mortgagee may bid for and acquire
the Mortgaged Property or any part thereof. In lieu of paying cash therefor, Mortgagee may make settlement for the purchase price
by crediting upon the Obligations or other sums secured by this Mortgage, the net sales price after deducting therefrom the expenses
of sale and the cost of the action and any other sums which Mortgagee is authorized to deduct under this Mortgage. In such event,
this Mortgage, the Purchase Agreement and documents evidencing expenditures secured hereby may be presented to the person or persons
conducting the sale in order that the amount so used or applied may be credited upon the Obligations as having been paid.

 

15. Appointment
of Receiver. If an Event of Default shall have occurred and be continuing, Mortgagee as a matter of right and without
notice to Mortgagor, unless otherwise required by applicable law, and without regard to the adequacy or inadequacy of the Mortgaged
Property or any other collateral or the interest of Mortgagor therein as security for the Obligations, shall have the right to
apply to any court having jurisdiction to appoint a receiver or receivers or other manager of the Mortgaged Property, and Mortgagor
hereby irrevocably consents to such appointment and waives notice of any application therefor (except as may be required by law).
Any such receiver or receivers or manager shall have all the usual powers and duties of receivers in like or similar cases and
all the powers and duties of Mortgagee in case of entry as provided in this Mortgage, including, without limitation and to the
extent permitted by law, the right to enter into leases of all or any part of the Mortgaged Property, and shall continue as such
and exercise all such powers until the date of confirmation of sale of the Mortgaged Property unless such receivership is sooner
terminated.

 

    	 		 

    	 		11

    

 

16. Bankruptcy. (a)
Upon or at any time after the occurrence of an Event of Default, Mortgagee shall have the right to proceed in its own name or
in the name of Mortgagor in respect of any claim, suit, action or proceeding relating to the rejection of any Lease, including,
without limitation, the right to file and prosecute, to the exclusion of Mortgagor, any proofs of claim, complaints, motions,
applications, notices and other documents, in any case in respect of the lessee under such Lease under the Bankruptcy Code (as
defined below).

 

(b)
If there shall be filed by or against Mortgagor a petition under 11 U.S.C. §101 et seq., as the same may be amended from
time to time (the “Bankruptcy Code”), and Mortgagor shall determine to reject such Lease pursuant to Section
365(a) of the Bankruptcy Code, then Mortgagor shall give Mortgagee not less than ten (10) days’ prior notice of the date
on which Mortgagor shall apply to the bankruptcy court for authority to reject the Lease. Mortgagee shall have the right, but
not the obligation, to serve upon Mortgagor within such ten day period a notice stating that (i) Mortgagee demands that Mortgagor
assume and assign the Lease to Mortgagee pursuant to Section 365 of the Bankruptcy Code and (ii) Mortgagee covenants to cure or
provide adequate assurance of future performance under the Lease. If Mortgagee serves upon Mortgagor the notice described in the
preceding sentence, Mortgagor shall not seek to reject the Lease and shall comply with the demand provided for in clause (i) of
the preceding sentence within thirty (30) days after the notice shall have been given, subject to the performance by Mortgagee
of the covenant provided for in clause (ii) of the preceding sentence.

 

17. Extension,
Release, etc. (a) Without affecting the lien or charge created by this Mortgage upon any portion of the Mortgaged Property
not then or theretofore released as security for the full amount of the Obligations, Mortgagee may, from time to time and without
notice, agree to (i) release any person liable for the indebtedness borrowed or guaranteed under the Transaction Documents, (ii)
extend the maturity or alter any of the terms of the indebtedness borrowed or guaranteed under the Transaction Documents or any
other guaranty thereof, (iii) grant other indulgences, (iv) release or reconvey, or cause to be released or reconveyed at any
time at Mortgagee’s option any parcel, portion or all of the Mortgaged Property, (v) take or release any other or additional
security for any obligation herein mentioned, or (vi) make compositions or other arrangements with debtors in relation thereto.

 

(b)
No recovery of any judgment by Mortgagee and no levy of an execution under any judgment upon the Mortgaged Property or upon any
other property of Mortgagor shall affect the lien created by this Mortgage or any liens, rights, powers or remedies of Mortgagee
hereunder, and such liens, rights, powers and remedies shall continue unimpaired.

 

(c)
If Mortgagee shall have the right to foreclose this Mortgage or to direct a power of sale, Mortgagor authorizes Mortgagee at its
option to foreclose the lien created by this Mortgage (or direct the sale of the Mortgaged Property, as the case may be) subject
to the rights of any tenants of the Mortgaged Property. The failure to make any such tenants parties defendant to any such foreclosure
proceeding and to foreclose their rights, or to provide notice to such tenants as required in any statutory procedure governing
a sale of the Mortgaged Property by Mortgagee, or to terminate such tenant’s rights in such sale will not be asserted by
Mortgagor as a defense to any proceeding instituted by Mortgagee to collect the Obligations or to foreclose the lien created by
this Mortgage.

 

    	 		 

    	 		12

    

 

(d)
Unless expressly provided otherwise, in the event that Mortgagee’s interest in this Mortgage and title to the Mortgaged
Property or any estate therein shall become vested in the same person or entity, this Mortgage shall not merge in such title but
shall continue as a valid lien on the Mortgaged Property for the amount secured hereby.

 

18. Security
Agreement under Uniform Commercial Code. (a) It is the intention of the parties hereto that this Mortgage shall constitute
a Security Agreement within the meaning of the Uniform Commercial Code (the “Code”) of the State in which the
Mortgaged Property is located. If an Event of Default shall occur and be continuing under this Mortgage, then in addition to having
any other right or remedy available at law or in equity, Mortgagee shall have the option of either (i) proceeding under the Code
and exercising such rights and remedies as may be provided to a secured party by the Code with respect to all or any portion of
the Mortgaged Property which is personal property (including, without limitation, taking possession of and selling such property)
or (ii) treating such property as real property and proceeding with respect to both the real and personal property constituting
the Mortgaged Property in accordance with Mortgagee’s rights, powers and remedies with respect to the real property (in
which event the default provisions of the Code shall not apply). If Mortgagee shall elect to proceed under the Code, then ten
days’ notice of sale of the personal property shall be deemed reasonable notice and the reasonable expenses of retaking,
holding, preparing for sale, selling and the like incurred by Mortgagee shall include, but not be limited to, reasonable attorneys’
fees and legal expenses. At Mortgagee’s request, Mortgagor shall assemble the personal property and make it available to
Mortgagee at a place designated by Mortgagee which is reasonably convenient to both parties.

 

(b)
Certain portions of the Mortgaged Property are or will become “fixtures” (as that term is defined in the Code) on
the Land, and this Mortgage, upon being filed for record in the real estate records of the county wherein such fixtures are situated,
shall operate also as a financing statement filed as a fixture filing in accordance with the applicable provisions of said Code
upon such portions of the Mortgaged Property that are or become fixtures. The addresses of the Mortgagor, as debtor, and Mortgagee,
as secured party, are set forth in the first page of this Mortgage.

 

(c)
The real property to which the fixtures relate is described on Schedule A attached hereto. The record owner of the Land
is described on Schedule A. The name, type of organization and jurisdiction of organization of the debtor for purposes
of this financing statement are the name, type of organization and jurisdiction of organization of the Mortgagor set forth in
the first paragraph of this Mortgage, and the name of the secured party for purposes of this financing statement is the name of
the Mortgagee set forth in the first paragraph of this Mortgage. The mailing address of the Mortgagor/debtor is the address of
the Mortgagor set forth in the first paragraph of this Mortgage. The mailing address of the Mortgagee/secured party from which
information concerning the security interest hereunder may be obtained is the address of the Mortgagee set forth in the first
paragraph of this Mortgage. Mortgagor’s organizational identification number is 3622292.

 

    	 		 

    	 		13

    

 

19. Assignment
of Rents. (a) Mortgagor hereby assigns to Mortgagee the Rents as further security for the payment and performance of
the Obligations, and Mortgagor grants to Mortgagee the right to enter the Mortgaged Property for the purpose of collecting the
same and to let the Mortgaged Property or any part thereof, and to apply the Rents on account of the Obligations. The foregoing
assignment and grant is present and absolute and shall continue in effect until the Obligations secured hereby are paid in full,
but Mortgagee hereby waives the right to enter the Mortgaged Property for the purpose of collecting the Rents and Mortgagor shall
be entitled to collect, receive, use and retain the Rents until the occurrence and during the continuation of an Event of Default
under this Mortgage; such right of Mortgagor to collect, receive, use and retain the Rents may be revoked by Mortgagee upon the
occurrence and during the continuance of any Event of Default under this Mortgage by giving not less than five days’ written
notice of such revocation to Mortgagor; in the event such notice is given, Mortgagor shall pay over to Mortgagee, or to any receiver
appointed to collect the Rents, any lease security deposits and such Rents. Mortgagor shall not accept prepayments of installments
of Rent to become due for a period of more than one month in advance (except for security deposits and estimated payments of percentage
rent, if any).

 

(b)
Mortgagor will not affirmatively do any act which would prevent Mortgagee from, or limit Mortgagee in, acting under any of the
provisions of the foregoing assignment.

 

(c)
Except for any matter disclosed in the Purchase Agreement, no action has been brought or, to the best of Mortgagor’s knowledge,
is threatened, which would interfere in any way with the right of Mortgagor to execute the foregoing assignment and perform all
of Mortgagor’s obligations contained in this Section and in the Leases.

 

20. Additional
Rights. The holder of any subordinate lien or subordinate mortgage or deed of trust on the Mortgaged Property shall have
no right to terminate any Lease whether or not such Lease is subordinate to this Mortgage nor shall any holder of any subordinate
lien or subordinate deed of trust join any tenant under any Lease in any action to foreclose the lien or modify, interfere with,
disturb or terminate the rights of any tenant under any Lease. By recordation of this Mortgage all subordinate lienholders and
the mortgagees and beneficiaries under subordinate mortgages are subject to and notified of this provision, and any action taken
by any such lienholder or mortgagee contrary to this provision shall be null and void.

 

21. Notices. All
notices, requests, demands and other communications hereunder shall be given in accordance with the provisions of Section 11.1
of the Purchase Agreement to Mortgagor and to Mortgagee as specified therein.

 

22. No
Oral Modification. This Mortgage may not be amended, supplemented or otherwise modified except in accordance with the
provisions of Section 11.4 of the Purchase Agreement. Any agreement made by Mortgagor and Mortgagee after the date of this Mortgage
relating to this Mortgage shall be superior to the rights of the holder of any intervening or subordinate lien or encumbrance.

 

23. Partial
Invalidity. In the event any one or more of the provisions contained in this Mortgage shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision hereof, but each shall be construed as if such invalid, illegal or unenforceable provision had never been included.
Notwithstanding to the contrary anything contained in this Mortgage or in any provisions of any Transaction Document, the obligations
of Mortgagor and of any other obligor under any Transaction Document shall be subject to the limitation that Mortgagee shall not
charge, take or receive, nor shall Mortgagor or any other obligor be obligated to pay to Mortgagee, any amounts constituting interest
in excess of the maximum rate permitted by law to be charged by Mortgagee.

 

    	 		 

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24. Mortgagor’s
Waiver of Rights. (a) Mortgagor hereby voluntarily and knowingly releases and waives any and all rights to retain possession
of the Mortgaged Property after the occurrence of an Event of Default hereunder and any and all rights of redemption from sale
under any order or decree of foreclosure (whether full or partial), pursuant to rights, if any, therein granted, as allowed under
any applicable law, on its own behalf, on behalf of all persons claiming or having an interest (direct or indirectly) by, through
or under each constituent of Mortgagor and on behalf of each and every person acquiring any interest in the Mortgaged Property
subsequent to the date hereof, it being the intent hereof that any and all such rights or redemption of each constituent of Mortgagor
and all such other persons are and shall be deemed to be hereby waived to the fullest extent permitted by applicable law or replacement
statute. Each constituent of Mortgagor shall not invoke or utilize any such law or laws or otherwise hinder, delay, or impede
the execution of any right, power, or remedy herein or otherwise granted or delegated to Mortgagee, but shall permit the execution
of every such right, power, and remedy as though no such law or laws had been made or enacted.

 

(b)
To the fullest extent permitted by law, Mortgagor waives the benefit of all laws now existing or that may subsequently be enacted
providing for (i) any appraisement before sale of any portion of the Mortgaged Property, (ii) any extension of the time for the
enforcement of the collection of the Obligations or the creation or extension of a period of redemption from any sale made in
collecting such debt and (iii) exemption of the Mortgaged Property from attachment, levy or sale under execution or exemption
from civil process. To the full extent Mortgagor may do so, Mortgagor agrees that Mortgagor will not at any time insist upon,
plead, claim or take the benefit or advantage of any law now or hereafter in force providing for any appraisement, valuation,
stay, exemption, extension or redemption, or requiring foreclosure of this Mortgage before exercising any other remedy granted
hereunder and Mortgagor, for Mortgagor and its successors and assigns, and for any and all persons ever claiming any interest
in the Mortgaged Property, to the extent permitted by law, hereby waives and releases all rights of redemption, valuation, appraisement,
stay of execution, notice of election to mature (except as expressly provided in the Purchase Agreement) or declare due the whole
of the secured indebtedness and marshalling in the event of exercise by Mortgagee of the power of sale, or other rights hereby
created.

 

(c)
Mortgagor shall not be entitled to any notices of any nature whatsoever from Mortgagee except with respect to matters for which
this Security Instrument or the Purchase Agreement specifically and expressly provides for the giving of notice by Mortgagee and
except with respect to matters for which Mortgagor is not permitted by law to waive its right to receive notice, and Mortgagor
hereby expressly waives the right to receive any notice from Mortgagee with respect to any matter for which this Security Instrument
does not specifically and expressly provide for the giving of notice by Mortgagee.

 

(d)
It is agreed that the risk of loss or damage to the Mortgaged Property is on Mortgagor, and Mortgagee shall have no liability
whatsoever for decline in the value of the Mortgaged Property, for failure to maintain the Insurance Policies, or for failure
to determine whether insurance in force is adequate as to the amount of risks insured. Possession by Mortgagee shall not be deemed
an election of judicial relief if any such possession is requested or obtained with respect to any Mortgaged Property or collateral
not in Mortgagee’s possession.

 

    	 		 

    	 		15

    

 

25. Remedies
Not Exclusive. Mortgagee shall be entitled to enforce payment of the Obligations and performance of the Obligations and
to exercise all rights and powers under this Mortgage or under any of the other Transaction Documents or other agreement or any
laws now or hereafter in force, notwithstanding some or all of the Obligations may now or hereafter be otherwise secured, whether
by deed of trust, mortgage, security agreement, pledge, lien, assignment or otherwise. Neither the acceptance of this Mortgage
nor its enforcement, shall prejudice or in any manner affect Mortgagee’s right to realize upon or enforce any other security
now or hereafter held by Mortgagee, it being agreed that Mortgagee shall be entitled to enforce this Mortgage and any other security
now or hereafter held by Mortgagee in such order and manner as Mortgagee may determine in its absolute discretion. No remedy herein
conferred upon or reserved to Mortgagee is intended to be exclusive of any other remedy herein or by law provided or permitted,
but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law
or in equity or by statute. Every power or remedy given by any of the Transaction Documents to Mortgagee or to which Mortgagee
may otherwise be entitled, may be exercised, concurrently or independently, from time to time and as often as may be deemed expedient
by Mortgagee. In no event shall Mortgagee, in the exercise of the remedies provided in this Mortgage (including, without limitation,
in connection with the assignment of Rents to Mortgagee, or the appointment of a receiver and the entry of such receiver on to
all or any part of the Mortgaged Property), be deemed a “mortgagee in possession,” and Mortgagee shall not in any
way be made liable for any act, either of commission or omission, in connection with the exercise of such remedies.

 

26. Multiple
Security. If (a) the Premises shall consist of one or more parcels, whether or not contiguous and whether or not located
in the same county, or (b) in addition to this Mortgage, Mortgagee shall now or hereafter hold or be the beneficiary of one or
more additional mortgages, liens, deeds of trust or other security (directly or indirectly) for the Obligations upon other property
in the State in which the Premises are located (whether or not such property is owned by Mortgagor or by others) or (c) both the
circumstances described in clauses (a) and (b) shall be true, then to the fullest extent permitted by law, Mortgagee may, at its
election, commence or consolidate in a single foreclosure action all foreclosure proceedings against all such collateral securing
the Obligations (including the Mortgaged Property), which action may be brought or consolidated in the courts of, or sale conducted
in, any county in which any of such collateral is located. Mortgagor acknowledges that the right to maintain a consolidated foreclosure
action is a specific inducement to Mortgagee to purchase the Debentures, and Mortgagor expressly and irrevocably waives any objections
to the commencement or consolidation of the foreclosure proceedings in a single action and any objections to the laying of venue
or based on the grounds of forum non conveniens which it may now or hereafter have. Mortgagor further agrees that if Mortgagee
shall be prosecuting one or more foreclosure or other proceedings against a portion of the Mortgaged Property or against any collateral
other than the Mortgaged Property, which collateral directly or indirectly secures the Obligations, or if Mortgagee shall have
obtained a judgment of foreclosure and sale or similar judgment against such collateral, then, whether or not such proceedings
are being maintained or judgments were obtained in or outside the State in which the Premises are located, Mortgagee may commence
or continue any foreclosure proceedings and exercise its other remedies granted in this Mortgage against all or any part of the
Mortgaged Property and Mortgagor waives any objections to the commencement or continuation of a foreclosure of this Mortgage or
exercise of any other remedies hereunder based on such other proceedings or judgments, and waives any right to seek to dismiss,
stay, remove, transfer or consolidate either any action under this Mortgage or such other proceedings on such basis. Neither the
commencement nor continuation of proceedings to foreclose this Mortgage, nor the exercise of any other rights hereunder nor the
recovery of any judgment by Mortgagee in any such proceedings shall prejudice, limit or preclude Mortgagee’s right to commence
or continue one or more foreclosure or other proceedings or obtain a judgment against any other collateral (either in or outside
the State in which the Premises are located) which directly or indirectly secures the Obligations, and Mortgagor expressly waives
any objections to the commencement of, continuation of, or entry of a judgment in such other sales or proceedings or exercise
of any remedies in such sales or proceedings based upon any action or judgment connected to this Mortgage, and Mortgagor also
waives any right to seek to dismiss, stay, remove, transfer or consolidate either such other sales or proceedings or any sale
or action under this Mortgage on such basis. It is expressly understood and agreed that to the fullest extent permitted by law,
Mortgagee may, at its election, cause the sale of all collateral which is the subject of a single foreclosure action at either
a single sale or at multiple sales conducted simultaneously and take such other measures as are appropriate in order to effect
the agreement of the parties to dispose of and administer all collateral securing the Obligations (directly or indirectly) in
the most economical and least time-consuming manner.

 

    	 		 

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27. Successors
and Assigns. All covenants of Mortgagor contained in this Mortgage are imposed solely and exclusively for the benefit
of Mortgagee and its respective successors and assigns, and no other person or entity shall have standing to require compliance
with such covenants or be deemed, under any circumstances, to be a beneficiary of such covenants, any or all of which may be freely
waived in whole or in part by Mortgagee at any time if in the sole discretion of Mortgagee such a waiver is deemed advisable.
All such covenants of Mortgagor shall run with the land and bind Mortgagor, the successors and assigns of Mortgagor (and each
of them) and all subsequent owners, encumbrancers and tenants of the Mortgaged Property, and shall inure to the benefit of Mortgagee
and Mortgagee’s respective successors and assigns. The word “Mortgagor” shall be construed as if it read “Mortgagors”
whenever the sense of this Mortgage so requires and if there shall be more than one Mortgagor, the obligations of the Mortgagors
shall be joint and several.

 

28. No
Waivers, etc. Any failure by Mortgagee to insist upon the strict performance by Mortgagor of any of the terms and provisions
of this Mortgage shall not be deemed to be a waiver of any of the terms and provisions hereof, and Mortgagee, notwithstanding
any such failure, shall have the right thereafter to insist upon the strict performance by Mortgagor of any and all of the terms
and provisions of this Mortgage to be performed by Mortgagor. Mortgagee may release, regardless of consideration and without the
necessity for any notice to or consent by the beneficiary of any subordinate mortgage or the holder of any subordinate lien on
the Mortgaged Property, any part of the security held for the obligations secured by this Mortgage without, as to the remainder
of the security, in any way impairing or affecting the lien of this Mortgage or the priority of this Mortgage over any subordinate
lien or deed of trust.

 

29. Governing
Law, etc. This Mortgage shall be governed by and construed and interpreted in accordance with the laws of the State in
which the Mortgaged Property is located, except that Mortgagor expressly acknowledges that by their respective terms the Transaction
Documents shall be governed and construed in accordance with the laws of the State of New York, without regard to principles of
conflict of law, and for purposes of consistency, Mortgagor agrees that in any in personam proceeding related to this Mortgage
the rights of the parties to this Mortgage shall also be governed by and construed in accordance with the laws of the State of
New York governing contracts made and to be performed in that State, without regard to principles of conflict of law.

 

    	 		 

    	 		17

    

 

30. Certain
Definitions. Unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein,
words used in this Mortgage shall be used interchangeably in singular or plural form and the word “Mortgagor” shall
mean “each Mortgagor or any subsequent owner or owners of the Mortgaged Property or any part thereof or interest therein,”
the word “Mortgagee” shall mean “Mortgagee or any successor agent for the Lenders,” the word “person”
shall include any individual, corporation, partnership, limited liability company, trust, unincorporated association, government,
governmental authority, or other entity, and the words “Mortgaged Property” shall include any portion of the Mortgaged
Property or interest therein. Whenever the context may require, any pronouns used herein shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa. The captions in
this Mortgage are for convenience or reference only and in no way limit or amplify the provisions hereof.

 

31. Maximum
Rate of Interest. Nothing herein contained, nor in any Transaction Document or transaction related thereto, shall be
construed or so operate as to require Mortgagor or any person liable for the payment of the Obligations made pursuant to the Purchase
Agreement, to pay interest in an amount or at a rate greater than the maximum allowed by law. Should any interest or other charges
in the nature of the interest paid by Mortgagor or any parties liable for the payment of the Obligations made pursuant to the
Purchase Agreement or any other Transaction Document result in the computation or earning of interest in excess of the maximum
rate of interest allowed by applicable law, then any and all such excess shall be and the same is hereby waived by the holder
hereof, and all such excess shall be automatically credited against and in reduction of the principal balance, and any portion
of said excess which exceeds the principal balance shall be paid by the holder hereof to Mortgagor or any parties liable for the
payment of the Obligations made pursuant to the said Purchase Agreement or any other Transaction Document, it being the intent
of the parties hereto that under no circumstances shall Mortgagor or any parties liable for the payment of the Obligations hereunder
be required to pay interest in excess of the maximum rate allowed by law.

 

32. Release.
If any of the Mortgaged Property shall be sold, transferred or otherwise disposed of by Mortgagor in a transaction permitted
by the Purchase Agreement, such Mortgaged Property shall be automatically released from the Lien of this Mortgage without further
action on the part of Mortgagor or the Mortgagee, and shall cease to constitute collateral hereunder, and then Mortgagee, at the
request and sole expense of Mortgagor, shall execute and deliver to Mortgagor all releases or other documents reasonably necessary
or desirable for the release of the Liens created hereby on such Mortgaged Property. Last Dollars Secured; Priority.

 

To
the extent that this Mortgage secures only a portion of the indebtedness owing or which may become owing by Mortgagor to the Mortgagee,
the parties agree that any payments or repayments of such indebtedness shall be and be deemed to be applied first to the portion
of the indebtedness that is not secured hereby, it being the parties’ intent that the portion of the indebtedness last remaining
unpaid shall be secured hereby. If at any time this Mortgage shall secure less than all of the principal amount of the Obligations,
it is expressly agreed that any repayments of the principal amount of the Obligations shall not reduce the amount of the lien
of this Mortgage until such lien amount shall equal the principal amount of the Obligations outstanding.

 

    	 		 

    	 		18

    

 

34.
Expenditures and Expenses. In any action to foreclose the lien hereof or otherwise enforce Mortgagee’s rights
and remedies hereunder, there shall be allowed and included as additional indebtedness secured hereby all expenditures and expenses
which may be paid or incurred by or on behalf of Mortgagee including repair costs, payments to remove or protect against liens,
attorneys’ fees, costs and expenses, receivers’ fees, costs and expenses, appraisers’ fees, engineers’
fees, accountants’ fees, fees, costs and expenses in connection with any environmental matters concerning the Mortgaged
Property, outlays for documentary and expert evidence, stenographers’ charges, stamp taxes, publication costs, and costs
(which may be estimates as to items to be expended after entry of an order or judgment) for procuring all such abstracts of title,
title searches and examination, title insurance policies, and similar data and assurances with respect to title as Mortgagee may
deem reasonably necessary either to prosecute any action or to evidence to bidders at any sale which may be had pursuant to an
order or judgment the true condition of the title to, or the value of, the Mortgaged Property. All expenditures and expenses of
the nature mentioned in this Section 34 and such costs, expenses and fees as may be incurred or as may be owing to Mortgagee in
the protection of the Mortgaged Property and the maintenance of the lien of this Mortgage, including the fees, costs and expenses
of any attorneys employed by Mortgagee in any litigation or proceeding affecting this Mortgage, the other Transaction Documents
to which Mortgagor is a party or the Mortgaged Property, including probate, appellate and bankruptcy proceedings, or in preparations
for the commencement or defense of any action or proceeding or threatened action or proceeding, including costs and expenses in
connection with obtaining any court order or the appointment of a receiver, shall be immediately due and payable to Mortgagee,
with interest thereon at the Default Rate, and shall be secured by this Mortgage. In addition to the foregoing award of attorneys’
fees and costs, Mortgagee shall be entitled to its attorneys’ fees and costs incurred in any post-judgment proceedings to
collect or enforce any judgment or order relating to this Mortgage, or the other Transaction Documents to which Mortgagor is a
party. This provision is separate and several and shall survive the merger of this provision into any judgment.

 

35.
State Specific Provisions.

 

(a)
Principles of Construction. In the event of any inconsistencies between the terms and conditions of this Section 35 and
the terms and conditions of this Mortgage, the terms and conditions of this Section 35 shall control and be binding.

 

(b)
MAXIMUM PRINCIPAL SUM. THE PARTIES HERETO INTEND THAT THIS SECURITY INSTRUMENT SHALL SECURE UNPAID BALANCES OF THE DEBT
SECURED HEREBY WHETHER INCURRED BY MORTGAGOR AT THE DATE HEREOF OR AFTER THIS SECURITY INSTRUMENT IS DELIVERED FOR RECORDATION
IN THE OFFICIAL RECORDS OF THE COUNTY IN WHICH THE PROPERTY IS LOCATED. THE MAXIMUM AMOUNT OF PRINCIPAL INDEBTEDNESS WHICH IS
OR UNDER ANY CONTINGENCY MAY BE SECURED BY THIS SECURITY INSTRUMENT AT THE DATE OF EXECUTION HEREOF OR AT ANY TIME THEREAFTER
IS $3,000,000.

 

    	 		 

    	 		19

    

 

(c)
Trust Fund for Advances. In compliance with Section 13 of the Lien Law of the State of New York, the Mortgagor will receive
the advances secured by this Security Instrument and will hold the right to receive such advances as a trust fund to be applied
first for the purpose of paying the cost of the improvement and will apply same to the cost of the improvement before using any
part of the total of the same for any other purpose. Mortgagor will indemnify, defend and hold Mortgagee harmless against any
loss, liability, cost or expense, including any judgments, attorneys’ fees and disbursements, costs of appeal bonds or printing
costs, arising out of or relating to any proceedings instituted by any claimant alleging a violation by Mortgagor of Article 3-A
of the New York Lien Law.

 

(d)
New York Real Property Law Article 4-A. If this Security Instrument shall be deemed to constitute a “mortgage investment”
as defined by New York Real Property Law Section 125, then this Security Instrument shall and hereby does (i) confer upon the
Mortgagee the powers and (ii) impose upon the Mortgagee the duties of trustees set forth in New York Real Property Law Section
126.

 

(e)
Statement in Accordance with Section 253.1 a(a) of the New York Tax Law. This Security Instrument does not cover real property
principally improved or to be improved by one or more structures containing in the aggregate not more than six (6) residential
dwelling units, each having separate cooking facilities.

 

(f)
Statement in Accordance with Section 274-a of the New York Real Property Law. The Mortgagee shall, within fifteen (15)
days after written request, provide the Mortgagor with the statement required by Section 274-a of the New York Real Property Law.

 

(g)
Section 291-f of New York Real Property Law. Mortgagee shall have all of the rights set forth in Section 291-f of the Real
Property Law of New York. For purposes of Section 291-f of the New York Real Property Law, all existing tenants and every tenant
or subtenant who after the recording of this Security Instrument, enters into a Lease upon the premises of any of the Property
or who acquires by instrument of assignment or by operation of law a leasehold estate upon the Property is hereby notified that
Mortgagor shall not, without obtaining Mortgagee’s prior consent in each instance, cancel, abridge or otherwise modify any
Leases or accept prepayments for more than thirty (30) days of installments of rent to become due with respect to any Lease thereof
having an unexpired term on the date of this Security Instrument of five (5) years or more, except as expressly permitted under
the Building Loan Agreement, and that any such cancellation, abridgement, modification or prepayment made by any such tenant or
subtenant without either being expressly permitted under this Security Instrument or receiving Mortgagee’s prior consent
shall be voidable by Mortgagee’s at its option.

 

(h)
Sections 254, 271, 272 and 291-f of New York Real Property Law. All covenants of the Mortgagor herein contained shall be
construed as affording to Mortgagee rights additional to and not exclusive of the rights conferred under the provisions of Sections
254, 271, 272 and 291-f of the Real Property Law of New York.

 

(i)
Real Property Law. In the event of any conflict, inconsistency or ambiguity between (i) the provisions of the Building
Loan Note, this Security Instrument or the other Building Loan Documents and (ii) the provisions of subsection 4 of Section 254
of the Real Property Law of New York covering the insurance of buildings against loss by fire, the provisions of the Building
Loan Note, this Security Instrument and the other Building Loan Documents shall control.

 

(j)
RPAPL. If an Event of Default shall occur and be continuing, Mortgagee may elect to sell (and, in the case of any default
of any purchaser, resell) the Property or any part thereof by exercise of the power of foreclosure or of sale granted to Mortgagee
by Articles 13 of the New York Real Property Actions and Proceedings Law (the “RPAPL”).
In such case, Mortgagee may commence a civil action to foreclose this Security Instrument pursuant to Article 13 of the RPAPL
to satisfy the Building Loan Note and all other amounts secured hereby.

 

(k)
Commercial Property. Mortgagor covenants that this Security Instrument does not cover real property principally improved
or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each having
its own separate cooking facilities.

 

36.
Receipt of Copy. Mortgagor acknowledges that it has received a true copy of this Mortgage.

 

[Remainder
of Page Intentionally Blank]

 

    	 		 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Mortgagor has executed and delivered this Mortgage, Security Agreement, Assignment of Rents and Leases and
Fixture Filing the day and year first above written.

 

	 	ST.
    LAWRENCE ZINC COMPANY, LLC, 
	 	a
    Delaware limited liability company
	 	 	 
	 	By:	/s/
    Wayne Rich
	 	Name:	Wayne
    Rich
	 	Title:	Chief
    Financial Officer

 

	STATE
    OF ________________	)
	 	)  SS.
	COUNTY
    OF ______________	)

 

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that Wayne Rich, the Chief
Financial Officer of St. Lawrence Zinc Company, LLC, a Delaware limited liability company, who is personally known to me to be
the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that
he/she signed and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of said
corporation, for the uses and purposes therein set forth.

 

GIVEN
under my hand and notarial seal this _____ day of ________________, 2016.

 

	 	 	 
	 	Notary
    Public	 
	 	 	 
	 	My
    Commission Expires:	 
	 	 	 
	 	 	 

 

    	 		 

    	 		 

    

 

Schedule
A

 

Legal
Description

 

(See
Attached)Exhibit
10.5

 

FORM
OF 

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT (“Agreement”) is made as of June [●], 2016, by and between STAR MOUNTAIN RESOURCES,
INC., a corporation incorporated under the laws of the State of Nevada (the “Company”),
in favor of TCA GLOBAL CREDIT MASTER FUND, LP, a limited partnership organized and existing under the laws of the Cayman Islands
(the “Secured Party”).

 

WHEREAS,
pursuant to a Securities Purchase Agreement dated and effective as of even date herewith by and between the Company and the Secured
Party (the “Purchase Agreement”), the Company has agreed to issue to the Secured Party and the Secured Party
has agreed to purchase from Company certain senior secured redeemable debentures (the “Debentures”), as more
specifically set forth in the Purchase Agreement; and

 

WHEREAS,
in order to induce the Secured Party to purchase the Debentures, Company has agreed to execute and deliver to the Secured Party
this Agreement for the benefit of the Secured Party and to grant to Secured Party an unconditional and continuing security interest
in all of the assets and property of the Company as more fully provided for herein, to secure the prompt payment, performance
and discharge in full of all of Company’s obligations under the Debentures, the Purchase Agreement and the other Transaction
Documents.

 

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

 

1.Recitals.
The recitations set forth in the preamble of this Agreement are true and correct and incorporated herein by this reference.

 

2.Construction
and Definition of Terms. In this Agreement, unless the express context otherwise requires: (i) the words “herein,”
“hereof’ and “hereunder” and words of similar import refer to this Agreement as a whole and not to any
particular provision of this Agreement; (ii) references to the words “Section” or “Subsection” refer to
the respective Sections and Subsections of this Agreement, and references to “Exhibit” or “Schedule” refer
to the respective Exhibits and Schedules attached hereto; (iii) wherever the word “include,” “includes”
or “including” is used in this Agreement , it will be deemed to be followed by the words “without limitation.”
All capitalized terms used in this Agreement that are defined in the Purchase Agreement or otherwise defined in Articles 8 or
9 of the Code shall have the meanings assigned to them in the Purchase Agreement or the Code, respectively and as applicable,
unless the context of this Agreement requires otherwise. In addition to the capitalized terms defined in the Code and the Purchase
Agreement, unless the context otherwise requires, when used herein, the following capitalized terms shall have the following meanings
(provided that if a capitalized term used herein is defined in the Purchase Agreement and separately defined in this Agreement,
the meaning of such term as defined in this Agreement shall control for purposes of this Agreement):

 

    	 	1	 

     

    

 

(a)“Agreement”
means this Security Agreement and all amendments, modifications and supplements hereto.

 

(b)“Bankruptcy
Code” means the United States Bankruptcy Code, as amended from time to time, or any other similar laws, codes, rules
or regulations relating to bankruptcy, insolvency or the protection of creditors.

 

(c)“Business
Premises” shall mean the Company’s offices located at 8307 Shaffer Parkway, Suite 102, Littleton Colorado 80127
and 408 Sylvia Lake Road, Gouverneur, New York 13642.

 

(d)“Closing”
shall mean the date on which this Agreement is fully executed by both parties.

 

(e)“Code”
shall mean the Uniform Commercial Code as in effect from time to time in the State of Nevada, provided that terms used herein
which are defined in the Code as in effect in the State of Nevada on the date hereof shall continue to have the same meaning notwithstanding
any replacement or amendment of such statute, except as the Secured Party may otherwise agree.

 

(f)“Collateral”
shall mean any and all property of the Company, of any kind or description, tangible or intangible, real, personal or mixed, wheresoever
located and whether now existing or hereafter arising or acquired, including the following: (i) all property of, or for the account
of, the Company now or hereafter coming into the possession, control or custody of, or in transit to, Secured Party or any agent
or bailee for Secured Party or any parent, affiliate or subsidiary of Secured Party or any participant with Secured Party in the
Obligations (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise), including all cash, earnings,
dividends, interest, or other rights in connection therewith and the products and proceeds therefrom, including the proceeds of
insurance thereon; (ii) the following additional property of the Company, whether now existing or hereafter arising or acquired,
and wherever now or hereafter located, together with all additions and accessions thereto, substitutions, betterments and replacements
therefor, products and Proceeds therefrom, and all of the Company’s books and records and recorded data relating thereto
(regardless of the medium of recording or storage), together with all of the Company’s right, title and interest in and
to all computer software required to utilize, create, maintain and process any such records or data on electronic media, including
all: (A) Accounts, and all goods whose sale, lease or other disposition by the Company has given rise to Accounts and have been
returned to, or repossessed or stopped in transit by, the Company, or rejected or refused by an Account debtor; (B) As-extracted
Collateral; (C) Chattel Paper (whether tangible or electronic); (D) Commodity Accounts; (E) Commodity Contracts; (F) Deposit Accounts,
including all cash and other property from time to time deposited therein and the monies and property in the possession or under
the control of the Secured Party or any affiliate, representative, agent, designee or correspondent of the Secured Party; (G)
Documents; (H) Equipment; (I) Farm Products; (J) Fixtures; (K) General Intangibles (including all Payment Intangibles); (L) Goods,
and all accessions thereto and goods with which the Goods are commingled; (M) Health-Care Insurance Receivables; (N) Instruments;
(O) Inventory, including raw materials, work-in-process and finished goods; (P) Investment Property; (Q) Letter-of-Credit Rights;
(R) Promissory Notes; (S) Software; (T) all Supporting Obligations; (U) all commercial tort claims hereafter arising; (V) all
other tangible and intangible personal property of the Company (whether or not subject to the Code), including, all bank and other
accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income, benefits,
substitutions and replacements of and to any of the property of the Company described within the definition of Collateral (including,
any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by the Company in respect
of any of the items listed within the definition of Collateral), and all books, correspondence, files and other Records, including,
all tapes, desks, cards, Software, data and computer programs in the possession or under the control of the Company or any other
Person from time to time acting for the Company, in each case, to the extent of the Company’s rights therein, that at any
time evidence or contain information relating to any of the property described or listed within the definition of Collateral or
which are otherwise necessary or helpful in the collection or realization thereof; (W) all real property interests of the Company
and the interest of the Company in fixtures related to such real property interests; and (X) Proceeds, including all Cash Proceeds
and Noncash Proceeds, and products of any or all of the foregoing, in each case howsoever the Company’s interest therein
may arise or appear (whether by ownership, security interest, claim or otherwise).

 

    	 	2	 

     

    

 

(g)“Event
of Default” shall mean any of the events described in Section 4 hereof.

 

(h)“Obligations”
shall have the meaning given to it in the Purchase Agreement.

 

3.Security.

 

(a)Grant
of Security Interest. As security for the full payment and performance of all of the Obligations, whether or not any instrument
or agreement relating to any Obligation specifically refers to this Agreement or the security interest created hereunder, the
Company hereby assigns, pledges and grants to Secured Party an unconditional, continuing security interest in all of the Collateral.
Secured Party’s security interest shall continually exist until all Obligations have been indefeasibly satisfied and/or
paid in full.

 

(b)Representations,
Warranties. Covenants and Agreement of the Company. The Company covenants, warrants and represents, for the benefit of the
Secured Party, as follows:

 

(i)The
Company has the requisite corporate power and authority to enter into this Agreement and otherwise to carry out its obligations
hereunder. The execution, delivery and performance by the Company of this Agreement and the filings contemplated herein have been
duly authorized by all necessary action on the part of the Company and no further action is required by the Company. This Agreement
constitutes a legal, valid and binding obligation of the Company enforceable in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditor’s
rights generally.

 

(ii)The
Company represents and warrants that it has no place of business or offices where its respective books of account and records
are kept or places where Collateral is stored or located, except for the Business Premises.

 

(iii)The
Company is the sole owner of the Collateral (except for non-exclusive licenses granted by the Company in the Company’s Ordinary
Course of Business), free and clear of any and all Encumbrances. The Company is fully authorized to grant the security interests
in and to pledge the Collateral to Secured Party. There is not on file in any agency, land records or other office of any Governmental
Authority, an effective financing statement, security agreement, license or transfer or any notice
of any of the foregoing (other than those that have been filed in favor of the Secured Party pursuant to this Agreement) covering
or affecting any of the Collateral. So long as this Agreement shall be in effect, the Company shall not execute and shall not
permit to be on file in any such agency, land records or other office any such financing statement or other document or instrument
(except to the extent filed or recorded in favor of the Secured Party pursuant to the terms of this Agreement).

 

(iv)No
part of the Collateral has been judged invalid or unenforceable. No Claim, Proceeding or other notice or other similar item has
been received by the Company that any Collateral or the Company’s use of any Collateral violates the rights of any Person.
There has been no adverse decision or claim to the Company’s ownership rights in or exclusive rights to use the Collateral
in any jurisdiction or to the Company’s right to keep and maintain such Collateral in full force and effect, and there is
no Claim or Proceeding of any nature involving said rights pending or, to the best knowledge of the Company, threatened, before
any Governmental Authority.

 

(v)The
Company shall at all times maintain its books of account and records relating to the Collateral and maintain the Collateral at
the Business Premises, and the Company shall not relocate such books of account and records or Collateral, except and unless:
(A) Secured Party first approves of such relocation, which approval may be withheld in Secured Party’s sole and absolute
discretion; (B) evidence that appropriate financing statements and other necessary documents have been filed and recorded and
other steps have been taken to create in favor of the Secured Party valid, perfected and continuing liens in the Collateral; or
(C) Collateral is moved or relocated in the Company’s Ordinary Course of Business, provided, however, that any permanent
relocation of any of the Collateral shall require Secured Party’s prior written approval in accordance with Subsection 3(b)(v)(A)
above.

 

    	 	3	 

     

    

 

(vi)Upon
making the filings described in the immediately following sentence or by possession or control of such Collateral by Secured Party
or delivery of such Collateral to Secured Party, this Agreement creates, in favor of the Secured Party, a valid, perfected, security
interest in the Collateral. Except for the filing of financing statements on Form UCC-1 under the Code with the State of Nevada,
no authorization or approval of, or filing with, or notice to any Governmental Authority is required either: (A) for the grant
by the Company of, or the effectiveness of, the security interest granted hereby or for the execution, delivery and performance
of this Agreement by the Company; or (B) for the perfection of or exercise by the Secured Party of its rights and remedies hereunder.

 

(vii)Simultaneous
with the execution of this Agreement, the Company hereby authorizes the Secured Party to file one or more UCC financing statements,
and any continuations, amendments, or assignments thereof with respect to the security interests on the Collateral granted hereby,
with the State of Nevada and in such other jurisdictions as may be requested or desired by the Secured Party.

 

(viii)The
execution, delivery and performance of this Agreement, and the granting of the security interests contemplated hereby, will not:
(A) constitute a violation of or conflict with the Certificate of Incorporation, Bylaws or any other organizational or governing
documents of the Company; (B) constitute a violation of, or a default or breach under (either immediately, upon notice, upon lapse
of time, or both), or conflicts with, or gives to any other Person any rights of termination, amendment, acceleration or cancellation
of, any provision of any Contract or agreement to which Company is a party or by which any of the Collateral may be bound; (C)
constitute a violation of, or a default or breach under (either immediately, upon notice, upon lapse of time, or both), or conflicts
with, any Judgment of any Governmental Authority; (D) constitute a violation of, or conflict with, any Law; or (E) result in the
loss or adverse modification of, or the imposition of any fine, penalty or other Encumbrance with respect to, any Permit granted
or issued to, or otherwise held by or for the use of, the Company or any of the Collateral. No Consent (including from stockholders
or creditors of the Company) is required for the Company to enter into and perform its obligations hereunder.

 

(ix)The
Company shall at all times maintain the liens and security interests provided for hereunder as valid and perfected liens and security
interests in the Collateral in favor of the Secured Party until this Agreement and the security interests hereunder shall terminate
pursuant to Section 8(o) below. The Company shall at all times safeguard and protect all Collateral, at its own expense, for the
account of the Secured Party. At the request of the Secured Party, the Company will sign and deliver to the Secured Party at any
time, or from time to time, one or more financing statements pursuant to the Code (or any other applicable statute) in form reasonably
satisfactory to the Secured Party and will pay the cost of filing the same in all public offices wherever filing is, or is deemed
by the Secured Party to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting
the generality of the foregoing, the Company shall pay all fees, taxes and other amounts necessary to maintain the Collateral
and the security interests granted hereunder, and the Company shall obtain and furnish to the Secured Party from time to time,
upon demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority of the security
interests hereunder.

 

    	 	4	 

     

    

 

(x)The
Company will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral without
the prior written consent of the Secured Party, which consent may be withheld in the Secured Party’s sole and absolute discretion,
except for transfers, sales or licenses made in the Company’s Ordinary Course of Business.

 

(xi)The
Company shall keep, maintain and preserve all of the Collateral in good condition, repair and order and the Company will use,
operate and maintain the Collateral in compliance with all Laws, and in compliance with all applicable insurance requirements
and regulations.

 

(xii)The
Company shall, within five (5) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of
any substantial or material change in the Collateral, and of the occurrence of any event which would have a Material Adverse Effect.

 

(xiii)The
Company shall promptly execute and deliver to the Secured Party such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and assurances and take such further action as the Secured
Party may from time to time request and may in its sole discretion deem necessary to perfect, protect or enforce its security
interest in the Collateral, including, placing legends on Collateral or on books and records pertaining to Collateral stating
that Secured Party has a security interest therein.

 

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

 

(xv)The
Company shall promptly notify the Secured Party in sufficient detail upon becoming aware of any Claim, Proceeding, or any other
litigation, attachment, garnishment, execution or other legal process levied against any Collateral or of any Claim, Proceeding
or any other litigation, attachment, garnishment, execution or other legal process which Company knows or has reason to believe
is pending or threatened against it or the Collateral, and of any other information received by the Company that may materially
affect the value of the Collateral, the security interests granted hereunder or the rights and remedies of the Secured Party hereunder.

 

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

 

(xvii)Company
will promptly pay when due all Taxes and all transportation, storage, warehousing and all other charges and fees affecting or
arising out of or relating to the Collateral and shall defend the Collateral, at Company’s expense, against all claims of
any Persons claiming any interest in the Collateral adverse to Company or Secured Party.

 

    	 	5	 

     

    

 

(xviii)During
normal business hours and subject to prior reasonable notice from Secured Party to the Company (which notice may be e-mail or
telephonic notice), Secured Party and its agents and designees may enter the Business Premises and any other premises of the Company
and inspect the Collateral and all books and records of the Company (in whatever form), and the Company shall pay the reasonable
costs of such inspections.

 

(xix)The
Company shall maintain comprehensive casualty insurance on the Collateral against such risks, in such amounts, with such loss
deductible amounts and with such companies as may be deemed commercially prudent by the Company, and each such policy shall contain
a clause or endorsement satisfactory to Secured Party naming Secured Party as loss payee and a clause or endorsement satisfactory
to Secured Party that such policy may not be canceled or altered and Secured Party may not be removed as loss payee without at
least thirty (30) days prior written notice to Secured Party. The Company hereby assigns to Secured Party and grants to Secured
Party a security interest in any and all proceeds of such policies and authorizes and empowers Secured Party to adjust or compromise
any loss under such policies and to collect and receive all such proceeds. The Company hereby authorizes and directs each insurance
company to pay all such proceeds directly and solely to Secured Party and not to the Company and Secured Party jointly. The Company
authorizes and empowers Secured Party to execute and endorse in Company’s name all proofs of loss, drafts, checks and any
other documents or instruments necessary to accomplish such collection, and any persons making payments to Secured Party under
the terms of this subsection are hereby relieved absolutely from any obligation or responsibility to see to the application of
any sums so paid. After deduction from any such proceeds of all costs and expenses (including attorney’s fees) incurred
by Secured Party in the collection and handling of such proceeds, the net proceeds shall be applied as follows: if no Event of
Default shall have occurred and be continuing, such net proceeds may be applied, at Company’s option, either toward replacing
or restoring the Collateral, in a manner and on terms satisfactory to Secured Party, or as a credit against such of the Obligations,
whether matured or unmatured, as Secured Party shall determine in Secured Party’s sole discretion. In the event that Company
may and does elect to replace or restore any of the Collateral as aforesaid, then such net proceeds shall be deposited in a segregated
account opened in the name and for the benefit of Secured Party, and such net proceeds shall be disbursed therefrom by Secured
Party in such manner and at such times as Secured Party deems appropriate to complete and insure such replacement or restoration;
provided, however, that if an Event of Default shall occur at any time before or after replacement or restoration has commenced,
then thereupon Secured Party shall have the option to apply all remaining net proceeds either toward replacing or restoring the
Collateral, in a manner and on terms satisfactory to Secured Party, or as a credit against such of the Obligations, whether matured
or unmatured, as Secured Party shall determine in Secured Party’s sole discretion. If an Event of Default shall have occurred
prior to such deposit of the net proceeds, then Secured Party may, in its sole discretion, apply such net proceeds either toward
replacing or restoring the Collateral, in a manner and on terms satisfactory to Secured Party, or as a credit against such of
the Obligations, whether matured or unmatured, as Secured Party shall determine in Secured Party’s sole discretion.

 

    	 	6	 

     

    

 

(xx)The
Company shall cooperate with Secured Party to obtain and keep in effect one or more control agreements in Deposit Accounts, Electronic
Chattel Paper, Investment Property and Letter-of-Credit Rights Collateral. In addition, the Company, at the Company’s expense,
shall promptly: (A) execute all notices of security interest for each relevant type of Software and other General Intangibles
in forms suitable for filing with any United States or foreign office handling the registration or filing of patents, trademarks,
copyrights and other intellectual property and any successor office or agency thereto; and (B) take all commercially reasonable
steps in any Proceeding before any such office or any similar office or agency in any other country or any political subdivision
thereof, to diligently prosecute or maintain, as applicable, each application and registration of any Software, General Intangibles
or any other intellectual property rights and assets that are part of the Collateral, including filing of renewals, affidavits
of use, affidavits of incontestability and opposition, interference and cancellation proceedings.

 

(xxi)Company
shall not file any amendments, correction statements or termination statements concerning the Collateral without the prior written
consent of Secured Party.

 

(c)Collateral
Collections. After an Event of Default shall have occurred, Secured Party shall have the right at any and all times to enforce
the Company’s rights against all Persons obligated on any of the Collateral, including the right to: (i) notify and/or require
the Company to notify any or all Persons obligated on any of the Collateral to make payments directly to Secured Party or in care
of a post office lock box under the sole control of Secured Party established at Company’s expense, and to take any or all
action with respect to Collateral as Secured Party shall determine in its sole discretion, including, the right to demand, collect,
sue for and receive any money or property at any time due, payable or receivable on account thereof, compromise and settle with
any Person liable thereon, and extend the time of payment or otherwise change the terms thereof, without incurring any liability
or responsibility to the Company whatsoever; and/or (ii) require the Company to segregate and hold in trust for Secured Party
and, on the day of Company’s receipt thereof, transmit to Secured Party in the exact form received by the Company (except
for such assignments and endorsements as may be required by Secured Party), all cash, checks, drafts, money orders and other items
of payment constituting any portion of the Collateral or proceeds of the Collateral. Secured Party’s collection and enforcement
of Collateral against Persons obligated thereon shall be deemed to be commercially reasonable if Secured Party exercises the care
and follows the procedures that Secured Party generally applies to the collection of obligations owed to Secured Party.

 

    	 	7	 

     

    

 

(d)Care
of Collateral. Company shall have all risk of loss of the Collateral. Secured Party shall have no liability or duty, either
before or after the occurrence of an Event of Default, on account of loss of or damage to, to collect or enforce any of its rights
against, the Collateral, to collect any income accruing on the Collateral, or to preserve rights against Persons with prior interests
in the Collateral. If Secured Party actually receives any notices requiring action with respect to Collateral in Secured Party’s
possession, Secured Party shall take reasonable steps to forward such notices to the Company. The Company is responsible for responding
to notices concerning the Collateral, voting the Collateral, and exercising rights and options, calls and conversions of the Collateral.
Secured Party’s sole responsibility is to take such action as is reasonably requested by Company in writing, however, Secured
Party is not responsible to take any action that, in Secured Party’s sole judgment, would affect the value of the Collateral
as security for the Obligations adversely. While Secured Party is not required to take certain actions, if action is needed, in
Secured Party’s sole discretion, to preserve and maintain the Collateral, Company authorizes Secured Party to take such
actions, but Secured Party is not obligated to do so.

 

4.Events
of Default. The occurrence of any one or more of the following events, subject to the applicable grace period and notice provided
for below, shall constitute an “Event of Default” hereunder:

 

(a)Failure
to Pay. The failure of Company to pay any sum due under or as part of the Obligations as and when due and payable (whether
by acceleration, declaration, extension or otherwise).

 

(b)Covenants
and Agreements.The failure of Company to perform, observe or comply with any and all of the covenants, promises and agreements
of the Company in this Agreement, the Purchase Agreement or any other Transaction Documents, which such failure is not cured by
the Company within ten (10) days after receipt of written notice thereof from Secured Party, except that there shall be no notice
or cure period with respect to any failure to pay any sums due under or as part of the Obligations.

 

(c)Information,
Representations and Warranties. If any representation or warranty made herein, in the Purchase Agreement or any other Transaction
Documents, or if any information contained in any financial statement, application, schedule, report or any other document given
by the Company in connection with the Obligations, with the Collateral, or with any Transaction Document, is not in all respects
true, accurate and complete, or if the Company omitted to state any material fact or any fact necessary to make such information
not misleading.

 

(d)Default
on Other Obligations. The occurrence of any default under any other borrowing, Obligation or Contract of the Company, if the
result of such default would: (i) permit any Person which is a party to any such borrowing, Obligation or Contract, to accelerate
the maturity thereof, or to cancel or terminate any such borrowing, Obligation or Contract; (ii) cause or be reasonably expected
to cause a Material Adverse Effect; or (iii) materially and adversely affect, as determined by Secured Party in good faith, but
in its sole discretion, any of the Collateral, the value thereof, Secured Party’s rights and remedies to realize upon such
Collateral as set forth herein, or the Secured Party’s ability to comply with the Transaction Documents which such failure
is not cured by the Company within ten (10) days after receipt of written notice thereof from Secured Party.

 

    	 	8	 

     

    

 

(e)Insolvency.
Company shall be or become insolvent or unable to pay its debts as they become due, or admits in writing to such insolvency or
to such inability to pay its debts as they become due.

 

(f)Involuntary
Bankruptcy. There shall be filed against Company an involuntary petition or other pleading seeking the entry of a decree or
order for relief under the Bankruptcy Code or any similar foreign, federal or state insolvency or similar laws ordering: (i) the
liquidation of the Company; or (ii) a reorganization of Company or the business and affairs of Company; or (iii) the appointment
of a receiver, liquidator, assignee, custodian, trustee, or similar official for Company of the property of Company, and the failure
to have such petition or other pleading denied or dismissed within thirty (30) calendar days from the date of filing.

 

(g)Voluntary
Bankruptcy. The commencement by the Company of a voluntary case under the Bankruptcy Code or any foreign, federal or state
insolvency or similar laws or the consent by the Company to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, or similar official for Company of any of the property of the Company or the making by the Company
of an assignment for the benefit of creditors, or the failure by the Company generally to pay its debts as the debts become due.

 

(h)Judgments,
Awards. The entry of any final and non-appealable Judgment or other determination or adjudication against the Company and
a determination by Secured Party, in good faith but in its sole discretion, that any such Judgment or other determination or adjudication
could have a Material Adverse Effect, or could otherwise adversely affect the prospect for Secured Party to fully and punctually
realize the full benefits conferred on Secured Party by this Agreement and the other Transaction Documents, or the prospect of
repayment of all the Obligations.

 

(i)Injunction.The
injunction or restraint of the Company in any manner from conducting its business in whole or in part and a determination by Secured
Party, in good faith but in its sole discretion, that the same could have a Material Adverse Effect, or could otherwise adversely
affect the prospect for Secured Party to fully and punctually realize the full benefits conferred on Secured Party by this Agreement
and the other Transaction Documents, or the prospect of repayment of all the Obligations.

 

(j)Attachment
by Other Parties. Any Assets of the Company shall be attached, levied upon, seized or repossessed, or come into the possession
of a trustee, receiver or other custodian and a determination by Secured Party, in good faith but in its sole discretion, that
the same could have a Material Adverse Effect, or could otherwise adversely affect the prospect for Secured Party to fully and
punctually realize the full benefits conferred on Secured Party by this Agreement and the other Transaction Documents, or the
prospect of repayment of all the Obligations.

 

(k)Adverse
Change in Financial Condition.The determination in good faith by Secured Party that an event has occurred, either in the
financial condition or operations of the Company, or the Collateral, or otherwise, which event could have a Material Adverse Effect,
or could otherwise adversely affect the prospect for Secured Party to fully and punctually realize the full benefits conferred
on Secured Party by this Agreement and the other Transaction Documents.

 

    	 	9	 

     

    

 

(1)Adverse
Change in Value of Collateral.The determination in good faith by Secured Party that the security for the Obligations is
or has become inadequate.

 

(m)Prospect
of Payment or Performance. The determination in good faith by Secured Party that the prospect for payment or performance
of any of the Obligations is impaired for any reason.

 

5.Rights
and Remedies.

 

(a)Rights
and Remedies of Secured Party. Upon and after the occurrence of an Event of Default and which has not since been cured, Secured
Party may, without notice or demand, exercise in any jurisdiction in which enforcement hereof is sought, the following rights
and remedies, in addition to the rights and remedies available to Secured Party under the Purchase Agreement and any other Transaction
Documents, the rights and remedies of a secured party under the Code, and all other rights and remedies available to Secured Party
under applicable law or in equity, all such rights and remedies being cumulative and enforceable alternatively, successively or
concurrently:

 

(i)Take
absolute control of the Collateral including transferring into the Secured Party’s name or into the name of its nominee
or nominees (to the extent the Secured Party has not theretofore done so) and thereafter receive, for the benefit of the Secured
Party, all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with respect
thereto as though it were the outright owner thereof;

 

(ii)
Require the Company to, and the Company hereby agrees that it will at its expense and 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
or places to be designated by the Secured Party that is convenient to Secured Party, and the Secured Party may enter into and
occupy the Business Premises or any other premises owned or leased by the Company where the Collateral or any part thereof is
located or assembled in order to effectuate the Secured Party’s rights and remedies hereunder or under law, including removing
such Collateral therefrom, without any obligation or liability to the Company in respect of such occupation, the Company HEREBY
WAIVING ANY AND ALL RIGHTS TO PRIOR NOTICE AND TO JUDICIAL HEARING WITH RESPECT TO REPOSSESSION OF COLLATERAL AND THE COMPANY
HEREBY GRANTING TO SECURED PARTY AND ITS AGENTS AND REPRESENTATIVES FULL AUTHORITY TO ENTER SUCH PREMISES;

 

    	 	10	 

     

    

 

(iii)
(A) sell 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, and at such price or prices and upon such other terms as the Secured Party may deem commercially reasonable;
and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as the Secured Party may deem commercially
reasonable. The Company agrees that, to the extent notice of sale or any other disposition of the Collateral shall be required
by law, at least ten (10) days’ notice to the Company of the time and place of any public sale or the time after which any
private sale or other disposition of the Collateral is to be made shall constitute reasonable notification. The Secured Party
shall not be obligated to make any sale or other disposition of any 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. The Company hereby waives
any claims and actions against the Secured Party arising by reason of the fact that the price at which any of the Collateral may
have been sold at a private sale was less than the price which might have been obtained at a public sale or was less than the
aggregate amount of the Obligations, even if the Secured Party accepts the first offer received and does not offer such Collateral
to more than one offeree, and waives all rights that the Company may have to require that all or any part of such Collateral be
marshaled upon any sale (public or private) thereof. The Company hereby acknowledges that: (X) any such sale of the Collateral
by the Secured Party shall be made without warranty; (Y) the Secured Party may specifically disclaim any warranties of title,
possession, quiet enjoyment or the like; and (Z) such actions set forth in clauses (X) and (Y) above shall not adversely affect
the commercial reasonableness of any such sale of Collateral. In addition to the foregoing: (1) upon written notice to the Company
from the Secured Party after and during the continuance of an Event of Default, the Company shall cease any use of any intellectual
property or any trademark, patent or copyright similar thereto for any purpose described in such notice; (2) the Secured Party
may, at any time and from time to time after and during the continuance of an Event of Default, license, whether general, special
or otherwise, and whether on an exclusive or non-exclusive basis, any of the Company’s intellectual property, throughout
the universe for such term or terms, on such conditions, and in such manner, as the Secured arty shall in its sole discretion
determine; and (3) the Secured Party may, at any time, pursuant to the authority granted under this Agreement (such authority
being effective upon the occurrence and during the continuance of an Event of Default), execute and deliver on behalf of the Company,
one or more instruments of assignment of any intellectual property (or any application or registration thereof), in form suitable
for filing, recording or registration in any country.

 

(iv)Operate,
manage and control the Collateral (including use of the Collateral and any other property or assets of Company in order to continue
or complete performance of Company’s obligations under any contracts of Company), or permit the Collateral or any portion
thereof to remain idle or store the same, and collect all rents and revenues therefrom.

 

(v)Enforce
the Company’s rights against any Persons obligated upon any of the Collateral.

 

    	 	11	 

     

    

 

(vi)The
Company hereby acknowledges that if the Secured Party complies with any applicable foreign, state, provincial or federal law requirements
in connection with a disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of
any sale or other disposition of the Collateral.

 

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

 

(b)Power
of Attorney. Effective upon the occurrence of an Event of Default and which has not since been cured, Company hereby designates
and appoints Secured Party and its designees as attorney-in-fact of and for the Company, irrevocably and with full power of substitution,
with authority to endorse the Company’s name on any notes, acceptances, checks, drafts, money orders, instruments or other
evidences of payment or proceeds of the Collateral that may come into Secured Party’s possession; to execute proofs of claim
and loss; to adjust and compromise any claims under insurance policies; and to perform all other acts necessary and advisable,
in Secured Party’s sole and reasonable discretion, to carry out and enforce this Agreement and the rights and remedies conferred
upon the Secured Party by this Agreement, the Purchase Agreement or any other Transaction Documents. All acts of said attorney
or designee are hereby ratified and approved by the Company and said attorney or designee shall not be liable for any acts of
commission or omission, nor for any error of judgment or mistake of fact or law. This power of attorney is coupled with an interest
and is irrevocable so long as any of the Obligations remain unpaid or unperformed or there exists any commitment by Secured Party
which could give rise to any Obligations.

 

(c)Costs
and Expenses. The Company agrees to pay to the Secured Party upon the occurrence of an Event of Default which has not since
been cured, upon demand, the amount of any and all costs and expenses, including the reasonable fees, costs, expenses and disbursements
of counsel for the Secured Party and of any experts and agents, which the Secured Party may incur in connection with: (i) the
preparation, negotiation, execution, delivery, recordation, administration, amendment, waiver or other modification or termination
of this Agreement; (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization
upon, any Collateral; (iii) the exercise or enforcement of any of the rights of the Secured Party hereunder; or (iv) the failure
by the Company to perform or observe any of the provisions hereof. Included in the foregoing shall be the amount of all expenses
paid or incurred by Secured Party in consulting with counsel concerning any of its rights hereunder, under the Purchase Agreement
or under applicable law, as well as such portion of Secured Party’s overhead as Secured Party shall allocate to collection
and enforcement of the Obligations in Secured Party’s sole but reasonable discretion. All such costs and expenses shall
bear interest from the date of outlay until paid, at the highest rate set forth in the Debenture, or if none is so stated, the
highest rate allowed by law. The provisions of this Subsection shall survive the termination of this Agreement and Secured Party’s
security interest hereunder and the payment of all Obligations.

 

    	 	12	 

     

    

 

6.Security
Interest Absolute. All rights of the Secured Party and all Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (i) any lack of validity or enforceability of this Agreement, the Purchase Agreement, and any other Transaction
Documents or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (ii) any change in
the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment
or waiver of or any consent to any departure from the terms and provisions of the Purchase Agreement, any other Transaction Documents,
or any other agreement entered into in connection with the foregoing; (iii) any exchange, release or non-perfection of any of
the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guaranty,
or any other security, for all or any of the Obligations; (iv) any action by the Secured Party to obtain, adjust, settle and cancel
in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (v) any other circumstance
which might otherwise constitute any legal or equitable defense available to the Company, or a discharge of all or any part of
the security interests granted hereby. Until the Obligations shall have been paid and performed in full, the rights of the Secured
Party shall continue even if the Obligations are barred for any reason, including, the running of the statute of limitations or
bankruptcy. In the event that at any time any transfer of any Collateral or any payment received by the Secured Party hereunder
shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance
under the Bankruptcy Code or any other similar insolvency or bankruptcy laws of any jurisdiction , or shall be deemed to be otherwise
due to any party other than the Secured Party, then, in any such event, the Company’s obligations hereunder shall survive
cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. The
Company waives all right to require the Secured Party to proceed against any other Person or to apply any Collateral which the
Secured Party may hold at any time, or to pursue any other remedy. The Company waives any defense arising by reason of the application
of the statute of limitations to any obligation secured hereby.

 

7.Indemnity.
The Company agrees to defend, protect, indemnify and hold the Secured Party forever harmless from and against any and all Claims
of any nature or kind (including reasonable legal fees, costs, expenses, and disbursements of counsel) to the extent that they
arise out of, or otherwise result from, this Agreement (including, enforcement of this Agreement). This indemnity shall survive
termination of this Agreement.

 

    	 	13	 

     

    

 

8.Miscellaneous.

 

(a)Performance
for Company. The Company agrees and hereby authorizes that Secured Party may, in Secured Party’s sole discretion, but
Secured Party shall not be obligated to, whether or not an Event of Default shall have occurred, advance funds on behalf of the
Company , without prior notice to the Company, in order to insure the Company’s compliance with any covenant, warranty ,
representation or agreement of the Company made in or pursuant to this Agreement, the Purchase Agreement, or any other Transaction
Documents, to continue or complete, or cause to be continued or completed, performance of the Company’s obligations under
any Contracts of the Company, or to preserve or protect any right or interest of Secured Party in the Collateral or under or pursuant
to this Agreement, the Purchase Agreement or any other Transaction Documents, including, the payment of any insurance premiums
or taxes and the satisfaction or discharge of any Claim, Obligation, Judgment or any other Encumbrance upon the Collateral or
other property or Assets of Company; provided, however, that the making of any such advance by Secured Party shall not constitute
a waiver by Secured Party of any Event of Default with respect to which such advance is made, nor relieve the Company of any such
Event of Default. The Company shall pay to Secured Party upon demand all such advances made by Secured Party with interest thereon
at the highest rate set forth in the Debenture, or if none is so stated, the highest rate allowed by law. All such advances shall
be deemed to be included in the Obligations and secured by the security interest granted Secured Party hereunder; provided, however,
that the provisions of this Subsection shall survive the termination of this Agreement and Secured Party’s security interest
hereunder and the payment of all other Obligations.

 

(b)Applications
of Payments and Collateral. Except as may be otherwise specifically provided in this Agreement or the Purchase Agreement,
all Collateral and proceeds of Collateral coming into Secured Party’s possession and all payments made by any Person to
Secured Party with respect to any Collateral may be applied by Secured Party (after payment of any amounts payable to the Secured
Party pursuant to Section 5(c) hereof) to any of the Obligations, whether matured or unmatured, as Secured Party shall determine
in its sole, but reasonable discretion. Any surplus held by the Secured Party and remaining after the indefeasible payment in
full in cash of all of the Obligations shall be paid over to whomsoever shall be lawfully entitled to receive the same or as a
court of competent jurisdiction shall direct. Secured Party may defer the application of Noncash Proceeds of Collateral, to the
Obligations until Cash Proceeds are actually received by Secured Party. In the event that the proceeds of any such sale, collection
or realization are insufficient to pay all amounts to which the Secured Party is legally entitled, the Company shall be liable
for the deficiency, together with interest thereon at the highest rate specified in the Debenture for interest on overdue principal
thereof or such other rate as shall be fixed by applicable law, together with the costs of collection and the reasonable fees,
costs, expenses and other client charges of any attorneys employed by the Secured Party to collect such deficiency.

 

    	 	14	 

     

    

 

(c)Waivers
by Company. The Company hereby waives, to the extent the same may be waived under applicable law: (i) notice of acceptance
of this Agreement; (ii) all claims and rights of the Company against Secured Party on account of actions taken or not taken by
Secured Party in the exercise of Secured Party’s rights or remedies hereunder, under the Purchase Agreement, and other Transaction
Documents or under applicable law; (iii) all claims of the Company for failure of Secured Party to comply with any requirement
of applicable law relating to enforcement of Secured Party’s rights or remedies hereunder, under the Purchase Agreement,
under any other Transaction Documents or under applicable law; (iv) all rights of redemption of the Company with respect to the
Collateral; (v) in the event Secured Party seeks to repossess any or all of the Collateral by judicial proceedings, any bond(s)
or demand(s) for possession which otherwise may be necessary or required; (vi) presentment, demand for payment, protest and notice
of non-payment and all exemptions applicable to any of the Collateral or the Company; (vii) any and all other notices or demands
which by applicable law must be given to or made upon the Company by Secured Party; (viii) settlement, compromise or release of
the obligations of any Person primarily or secondarily liable upon any of the Obligations; (ix) all rights of the Company to demand
that Secured Party release account debtors or other Persons liable on any of the Collateral from further obligation to Secured
Party; and (x) substitution, impairment, exchange or release of any Collateral for any of the Obligations. The Company agrees
that Secured Party may exercise any or all of its rights and/or remedies hereunder, under the Purchase Agreement, the other Transaction
Documents and under applicable law without resorting to and without regard to any Collateral or sources of liability with respect
to any of the Obligations. Upon termination of this Agreement and Secured Party’s security interest hereunder and payment
of all Obligations, within ten (10) Business Days following the Company’s request to Secured Party, Secured Party shall
release control of any security interest in the Collateral perfected by control and Secured Party shall send Company a statement
terminating any financing statement filed against the Collateral.

 

(d)Waivers
by Secured Party. No failure or any delay on the part of Secured Party in exercising any right, power or remedy hereunder,
under this Agreement, the Purchase Agreement, and other Transaction Documents or under applicable law, shall operate as a waiver
thereof.

 

(e)Secured
Party’s Setoff. Secured Party shall have the right, in addition to all other rights and remedies available to it, following
an Event of Default, to set off against any Obligations due Secured Party, any debt owing to the Company by Secured Party.

 

(f)
Modifications, Waivers and Consents. No modifications or waiver of any provision of this Agreement, the Purchase Agreement,
or any other Transaction Documents, and no consent by Secured Party to any departure by the Company therefrom, shall in any event
be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given, and any single or partial written waiver by Secured Party of any term, provision or right
of Secured Party hereunder shall only be applicable to the specific instance to which it relates and shall not be deemed to be
a continuing or future waiver of any other right, power or remedy. No notice to or demand upon the Company in any case shall entitle
Company to any other or further notice or demand in the same, similar or other circumstances.

 

    	 	15	 

     

    

 

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

 

(h)Applicable
Law and Consent to Jurisdiction. The Grantor and the Secured Party each irrevocably agrees that any dispute arising under,
relating to, or in connection with, directly or indirectly, this Agreement or related to any matter which is the subject of or
incidental to this Agreement (whether or not such claim is based upon breach of contract or tort) shall be subject to the exclusive
jurisdiction and venue of the state and/or federal courts located in Broward County, Florida; provided,
however, Secured Party may, at its sole option, elect to bring any action in any other jurisdiction. This provision is
intended to be a “mandatory” forum selection clause and governed by and interpreted consistent with Florida. The Grantor
and Secured Party each hereby consents to the exclusive jurisdiction and venue of any state or federal court having its situs
in said county, and each waives any objection based on forum non conveniens. The Grantor hereby waives personal service of any
and all process and consent that all such service of process may be made by certified mail, return receipt requested, directed
to the Grantor, as set forth herein in the manner provided by applicable statute, law, rule of court or otherwise. Except for
the foregoing mandatory forum selection clause, this Agreement shall be construed in accordance with the laws of the State of
Nevada, without regard to the principles of conflicts of laws, except to the extent that the validity and perfection or the perfection
and the effect of perfection or non-perfection of the security interest created hereby, or remedies hereunder, in respect of any
particular Collateral are governed under the Code by the law of a jurisdiction other than the State of Nevada, in which case such
issues shall be governed by the laws of the jurisdiction governing such issues under the Code.

 

(i)Survival:
Successors and Assigns. All covenants, agreements, representations and warranties made herein shall survive the execution
and delivery hereof, shall survive Closing and shall continue in full force and effect until all Obligations have been paid in
full, there exists no commitment by Secured Party which could give rise to any Obligations and all appropriate termination statements
have been filed terminating the security interest granted Secured Party hereunder. Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the successors and assigns of such party. In the event that Secured
Party assigns this Agreement and/or its security interest in the Collateral, Secured Party shall give written notice to the Company
of any such assignment and such assignment shall be binding upon and recognized by the Company (provided that failure to deliver
any such written notice shall not impair, negate or otherwise adversely affect any of the Secured Party’s rights or remedies
under this Agreement or any other Transaction Documents). All covenants, agreements, representations and warranties by or on behalf
of the Company which are contained in this Agreement shall inure to the benefit of Secured Party, its successors and assigns.
The Company may not assign this Agreement or delegate any of its rights or obligations hereunder, without the prior written consent
of Secured Party, which consent may be withheld in Secured Party’s sole and absolute discretion.

 

    	 	16	 

     

    

 

(j)Severabilitv.
If any term, provision or condition, or any part thereof, of this Agreement shall for any reason be found or held invalid or unenforceable
by any court or governmental authority of competent jurisdiction, such invalidity or unenforceability shall not affect the remainder
of such term, provision or condition nor any other term, provision or condition, and this Agreement shall survive and be construed
as if such invalid or unenforceable term, provision or condition had not been contained therein.

 

(k)Merger
and Integration. This Agreement and the attached Schedules (if any), together with the Purchase Agreement and the other Transaction
Documents, contain the entire agreement of the parties hereto with respect to the matters covered and the transactions contemplated
hereby and thereby, and no other agreement, statement or promise made by any party hereto or thereto, or by any employee, officer,
agent or attorney of any party hereto, which is not contained herein or therein shall be valid or binding.

 

(1)WAIVER
OF JURY TRIAL. THE COMPANY HEREBY: (a) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY
A JURY; AND (b) WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE COMPANY AND SECURED PARTY MAY BE PARTIES, ARISING
OUT OF, IN CONNECTION WITH OR IN ANY WAY PERTAINING TO THIS AGREEMENT, THE PURCHASE AGREEMENT AND/OR ANY TRANSACTIONS, OCCURRENCES,
COMMUNICATIONS, OR UNDERSTANDINGS (OR THE LACK OF ANY OF THE FOREGOING) RELATING IN ANY WAY TO DEBTOR-CREDITOR RELATIONSHIP BETWEEN
THE PARTIES. IT IS UNDERSTOOD AND AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES
TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS SECURITY AGREEMENT. THIS WAIVER OF
JURY TRIAL IS SEPARATELY GIVEN, KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE COMPANY AND THE COMPANY HEREBY AGREES THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY
OR NULLIFY ITS EFFECT. SECURED PARTY IS HEREBY AUTHORIZED TO SUBMIT THIS AGREEMENT TO ANY COURT HAYING JURISDICTION OVER THE SUBJECT
MATTER AND THE COMPANY AND SECURED PARTY, SO AS TO SERVE AS CONCLUSIVE EVIDENCE OF SUCH WAIVER OF RIGHT TO TRIAL BY JURY. THE
COMPANY REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER
BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND/OR THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH
COUNSEL.

 

(m)Execution.
This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed and considered one and
the same Agreement, and same shall become effective when counterparts have been signed by each party and each party has delivered
its signed counterpart to the other party. In the event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “.pdf” format file or other similar format file, such signature shall be deemed an original for all
purposes and shall create a valid and binding obligation of the party executing same with the same force and effect as if such
facsimile or “.pdf” signature page was an original thereof.

 

    	 	17	 

     

    

 

(n)Headings.
The headings and sub-headings contained in the titling of this Agreement are intended to be used for convenience only and shall
not be used or deemed to limit or diminish any of the provisions hereof.

 

(o)Termination.This
Agreement and the security interests hereunder shall terminate on the date on which all Obligations have been indefeasibly paid
or discharged in full and there are no commitments outstanding for Secured Party to advance any funds to the Company, either under
the Purchase Agreement, the Transaction Documents or any other Contract. Upon such termination, the Secured Party, at the request
and at the expense of the Company, will join in executing any termination statement with respect to any financing statement executed
and filed pursuant to this Agreement.

 

(p)Gender
and Use of Singular and Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or plural,
as the identity of the party or parties or their personal representatives, successors and assigns may require.

 

(q)Further
Assurances. The parties hereto will execute and deliver such further instruments and do such further acts and things as may
be reasonably required to carry out the intent and purposes of this Agreement.

 

(r)Time
is of the Essence. The parties hereby agree that time is of the essence with respect to performance of each of the parties’
obligations under this Agreement. The parties agree that in the event that any date on which performance is to occur falls on
a Saturday, Sunday or state or national holiday, then the time for such performance shall be extended until the next business
day thereafter occurring.

 

(s)Joint
Preparation. The preparation of this Agreement has been a joint effort of the parties and the resulting documents shall not,
solely as a matter of judicial construction, be construed more severely against one of the parties than the other.

 

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

 

[signature
page follows]

 

    	 	18	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Security Agreement as of the day and year first above written.

 

	 	COMPANY:
	 	 	 
	 	STAR MOUNTAIN RESOURCES, INC.
	 	 	 
	 	By:	 
	 	Name:
    	Wayne
    Rich
	 	Title:
    	Chief
    Financial Officer

 

	STATE
    OF 	 	      )
	 	 	      )
    SS.
	COUNTY
    OF 	 	      )

 

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that Wayne Rich, the Chief
Financial Officer of Star Mountain Resources, Inc., a Nevada corporation, who is personally known to me to be the same person
whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed
and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of said corporation,
for the uses and purposes therein set forth.

 

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

 

	 	 
	 	Notary
    Public
	 	 
	 	My
    Commission Expires:
	 	 
	 	 

 

    	 	19	 

     

    

 

	 	SECURED PARTY:
	 	 	 
	 	TCA GLOBAL CREDIT MASTER FUND, LP
	 	 	 
	 	By: TCA Global Credit Master Fund GP, Ltd., 
	 	Its: general partner
	 	 	 
	 	By:
    	 
	 	Name:
    	Robert
    Press
	 	Title:
    	Director

 

    	 	20

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