Document:

Exhibit
10.2

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED TO A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

 

Original
Issue Date: December 1, 2020

 

8.00%
ORIGINAL ISSUE DISCOUNT 

SENIOR
SECURED Note 

DUE
December 1, 2022

 

THIS
8.00% ORIGINAL ISSUE DISCOUNT SENIOR SECURED NOTE is one of a series of duly authorized and validly issued 8.00% Original Issue
Discount Senior Secured Notes of NewAge, Inc., a Washington corporation (the “Company”), having its principal
place of business at 2420 17th Street, Suite 220, Denver, CO 80202 (this note, as amended, restated, supplemented or otherwise
modified from time to time, the “Note” and collectively with the other notes of such series, the “Notes”)
and is issued pursuant to the Purchase Agreement (as defined below).

 

FOR
VALUE RECEIVED, the Company promises to pay in cash to ____________, or its registered assigns (the “Holder”),
or shall have paid pursuant to the terms hereunder, the sum of $32,432,000 on December 1, 2022 (the “Maturity Date”)
or such earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder
on the aggregate then outstanding principal amount of this Note in accordance with the provisions hereof. This Note is subject
to the following additional provisions:

 

Section
1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not
otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the
following meanings:

 

“Adjusted
EBITDA” means, with respect to the Company and its Subsidiaries on a consolidated basis, an amount equal to net income
(or loss), as determined in accordance with GAAP, for the relevant period plus (1) each of the following, but only to the
extent deducted in determining net income (or loss) in accordance with GAAP for such period and without duplication: (a) net interest
expense, (b) depreciation and amortization expense, (c) income tax expense, and (d) stock-based compensation expense plus
(2) the net proceeds actually received by the Company from sales of the Company’s Common Stock for cash during the relevant
period.

 

    	 

    	 

    

 

“Applicable
Interest Rate” means an annual rate equal to 8.00%; provided, however, following the occurrence and during the continuance
of an Event of Default, the “Applicable Interest Rate” shall automatically, without notice or any other action
required by Holder, mean an annual rate equal to 12.00%.

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Material Subsidiary commences a case or other proceeding
under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction relating to the Company or any Material Subsidiary, (b) there is commenced against the Company
or any Material Subsidiary any such case or proceeding that is not dismissed within sixty (60) days after commencement, (c) the
Company and its Subsidiaries, as a whole, are unable to pay their debts (including trade debts) as they become due or otherwise
becomes insolvent, the realizable value of the Company’s and its consolidated Subsidiaries’ assets is less than the
aggregate sum of their consolidated liabilities, (d) the Company or any Material Subsidiary thereof suffers any appointment of
any custodian or the like for it or any substantial part of its property that is not discharged or stayed within sixty (60) calendar
days after such appointment, (e) the Company or any Material Subsidiary makes a general assignment for the benefit of creditors,
(f) the Company or any Material Subsidiary, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence
in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing, or (g) the Company
or any Material Subsidiary admits in writing its inability, or is otherwise unable, to pay its debts generally as they become
due.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act)
of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise)
of in excess of fifty percent (50%) of the voting securities of the Company, (b) the Company merges into or consolidates with
any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the
stockholders of the Company immediately prior to such transaction own less than fifty percent (50%) of the aggregate voting power
of the Company or the successor entity of such transaction, or (c) the Company, directly or indirectly, Disposes of all or substantially
all of its assets to another Person.

 

“Dispose”
and “Disposition” means the sale, transfer, license, lease or other disposition (including any sale and leaseback
transaction or by way of a merger) of any assets or property by any Person, including, without limitation, any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated
therewith, in each case, whether or not the consideration therefor consists of cash, securities or other assets owned by the acquiring
Person, excluding any sales of inventory in the ordinary course of business on ordinary business terms.

 

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“Domestic
Subsidiary” means any Subsidiary that is organized under the laws of any state of the United States or the District
of Columbia.

 

“Equity
Interests” means, with respect to any Person, all of the shares of capital stock of such Person, all of the warrants,
options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or
profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other
ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person
of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership,
member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or
other interests are outstanding on any date of determination.

 

“Event
of Default” shall have the meaning set forth in Section 5(a).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Foreign
Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

 

“Governmental
Authority” means any national, supranational, federal, state, county, provincial, local, municipal or other government
or political subdivision thereof (including any regulatory authority), whether domestic or foreign, and any agency, authority,
commission, ministry, instrumentality, regulatory body, court, tribunal, arbitrator, central bank or other Person exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to any such government.

 

“Indebtedness”
shall include (a) all obligations for borrowed money or the deferred purchase price of property or services (excluding trade credit
entered into in the ordinary course of business), (b) all obligations evidenced by bonds, debentures, notes, or other similar
instruments and all reimbursement or other obligations in respect of letters of credit, surety bonds, bankers acceptances, current
swap agreements, interest rate hedging agreements, interest rate swaps or other financial products, (c) all capital lease obligations,
(d) all obligations or liabilities secured by a Lien on any asset of the Company or any Subsidiary, irrespective of whether such
obligation or liability is assumed by the Company or such Subsidiary, (e) any obligation arising with respect to any transaction
that is the functional equivalent of borrowing but which does not or would not constitute a liability on the balance sheet of
the Person incurring the same (such as, without limitation, a merchant cash advance); and (f) any obligation guaranteeing or intended
to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse) any of the foregoing
obligations of any other person or entity.

 

“Investments”
means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase
or other acquisition (including by merger) of Equity Interests of another Person, (b) a loan, advance or capital contribution
to, guarantee or assumption of debt of, or purchase or other acquisition of any other debt or interest in, another Person, or
(c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute
a business unit or all or a substantial part of the business of, such Person.

 

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“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien
or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional
sale or other title retention agreement, and any lease in the nature of a security interest.

 

“Material
Adverse Effect” means a material adverse effect upon: (a) the business, operations, properties, assets or financial
condition of the Company and its Subsidiaries taken as a whole; (b) the prospect of repayment of any part of the Company’s
obligations under this Note; or (c) the ability of the Company or any Material Subsidiary to perform or pay any of its obligations
in accordance with the terms of the Transaction Documents, or the ability of Agent or Holder to enforce any of its rights or remedies
with respect to such obligations.

 

“Minimum
Cash” shall have the meaning set forth in Section 4(c).

 

“New
York Courts” shall have the meaning set forth in Section 6(d).

 

“Note
Register” shall have the meaning set forth in Section 2(c).

 

“Original
Issue Date” means December [1], 2020, regardless of any transfers of the Note or amendments to the Note and regardless
of the number of instruments which may be issued to evidence the Note.

 

“Permitted
Indebtedness” means (i) the indebtedness evidenced by this Note, (ii) the PPP Loans, (iii) Indebtedness set forth on
Schedule 3.1(y) to the Purchase Agreement, as in effect as of the Original Issue Date, (iv) Indebtedness secured by Permitted
Liens described in clauses (v) and (vi) of the definition of Permitted Liens, (v) Indebtedness incurred in the ordinary course
of business with corporate credit cards not exceeding $250,000 in the aggregate at any time, (vi) Indebtedness between and among
the Company and its Material Subsidiaries; provided, however, that the aggregate amount of loans and advances to any Material
Subsidiaries that are not Qualified Subsidiaries shall not exceed $500,000 in the aggregate at any time; provided, further, however,
any intercompany Indebtedness shall be subject to a Subordination Agreement; and (vii) earn-out obligations and obligations under
Merger Agreement as in effect on the Original Issue Date to the extent constituting Indebtedness.

 

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“Permitted
Liens” means (i) Liens in favor of the Agent, (ii) any Lien for taxes not yet due or delinquent or being contested in
good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP, (iii) any
statutory Lien arising in the ordinary course of business by operation of law with respect to a liability that is not yet due
or delinquent, (iv) any Lien created by operation of law, such as materialmen’s liens, mechanics’ liens and other
similar liens, arising in the ordinary course of business with respect to a liability that is not yet due or delinquent or that
are being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance
with GAAP, (v) Liens (A) upon or in any equipment acquired or held by the Company or any of its Material Subsidiaries to secure
the purchase price of such equipment or Indebtedness incurred solely for the purpose of financing the acquisition or lease of
such equipment, or (B) existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to
the property so acquired and improvements thereon, and the proceeds of such equipment, in either case, with respect to Indebtedness
in an aggregate amount not to exceed $1,000,000, (vi) Liens incurred in connection with the extension, renewal or refinancing
of the Indebtedness secured by Liens of the type described in clause (v) above, provided that any extension, renewal or replacement
Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended,
renewed or refinanced does not increase, (vi) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payments of custom duties in connection with the importation of goods, (vii) Liens of a collecting bank arising in the
ordinary course of business under Section 4-208 of the UCC in effect in the relevant jurisdiction covering the items being collected
upon and do not exceed $250,000 in the aggregate at any time, (viii) deposits or pledges to secure obligations under worker’s
compensation, social security or similar laws, (ix) leases, statutory obligations, surety and appeal bonds and other obligations
of like nature arising in the ordinary course of business not delinquent and that in aggregate do not exceed $250,000 at any time,
(xiv) rights of setoff or bankers’ liens upon deposits of cash in favor of banks or other depository institutions, solely
to the extent incurred in connection with the maintenance of such deposit accounts and that do not exceed $150,000 in the aggregate
at any time, (xv) cash collateral securing the PPP Loan to Ariix in an amount not to exceed the principal balance thereof and
accrued interest thereon, and (xvi) other Liens not specifically listed above securing obligations not to exceed $250,000 in the
aggregate outstanding at any one time securing Permitted Indebtedness or other obligations permitted by this Agreement.

 

“Prepayment
Amount” shall have the meaning set forth in Section 2(d).

 

“Prepayment
Date” shall have the meaning set forth in Section 2(d).

 

“Prepayment
Notice” shall have the meaning set forth in Section 2(d).

 

“Prepayment
Notice Date” shall have the meaning set forth in Section 2(d).

 

“Prepayment
Premium” means, with respect to any prepayment of this Note made pursuant to Section 2(d), a prepayment premium
equal to: (i) if this Note is prepaid prior to December [1], 2021, 3% of the outstanding principal balance (including, for the
avoidance of doubt, any original issue discount) of this Note being prepaid and (ii) if this Note is prepaid thereafter but more
than 30 days prior to the Maturity Date, 1% of the outstanding principal balance (including, for the avoidance of doubt, any original
issue discount) of this Note being prepaid.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of November 27, 2020, among the Company and the purchasers
signatory thereto (including the original Holder), as amended, modified or supplemented from time to time in accordance with its
terms.

 

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“Repayment
Notice” has the meaning set forth in Section 2(a).

 

“Repayment
Notice Date” has the meaning set forth in Section 2(a).

 

“Qualified
Subsidiary” means any Material Subsidiary that is a Subsidiary Guarantor and in which the Agent has a perfected, first
priority Lien in substantially all of the assets and property of such Material Subsidiary.

 

Section
2. Principal and Interest Payments; Prepayment.

 

a)
Repayment. Subject to the provisions of this Section 2(a), at any time after [February __], 20211, each calendar
month the Holder may, in its sole discretion, deliver a notice to the Company (a “Repayment Notice” and the
date such notice is deemed delivered hereunder, the “Repayment Notice Date”), requiring the Company to make
a payment of principal in cash (by wire transfer of immediately available funds to the account of the Holder) in the amount of
up to $1,000,000, which monthly payment amount may be increased to a principal amount of up to $2,000,000 at any time after [May
__], 20212. The Repayment Notice shall specify the principal payment amount and the Company shall pay such amount
to the Holder not later than the fifth (5th) Business Day after the Repayment Notice Date. Any and all unpaid principal, accrued
and unpaid interest and other amounts payable in respect of this Note shall be due and payable in full on the Maturity Date.

 

b)
Payment of Interest in Cash. The Company shall pay interest to the Holder on the aggregate principal amount of this Note
outstanding from time to time at the Applicable Interest Rate, payable monthly in arrears as of the last Business Day of each
calendar month (commencing December 31, 2020) and on the Maturity Date, in cash (by wire transfer of immediately available funds
to the account of the Holder).

 

c)
Interest Calculations. Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed,
and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal (including, for
the avoidance of doubt, any original issue discount), together with all accrued and unpaid interest, liquidated damages and other
amounts which may become due hereunder, has been made. Interest hereunder will be paid to the Person in whose name this Note is
registered on the records of the Company regarding registration and transfers of this Note (the “Note Register”)
or such Person’s designee identified to the Company in writing.

 

 

1
NTD: Beginning of third month after closing date

2
NTD: six months after closing date

 

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d)
Prepayment at the Option of the Company. Subject to the provisions of this Section 2(d), the Company may, at any
time, deliver a notice to the Holder (a “Prepayment Notice” and the date such notice is deemed delivered hereunder,
the “Prepayment Notice Date”) of its irrevocable election to prepay all or a portion of the then outstanding
principal amount of this Note for cash in an amount equal to the entire outstanding principal balance of this Note or the applicable
portion thereof, all accrued and unpaid interest hereunder, the applicable Prepayment Premium and all other amounts due and payable
hereunder (the “Prepayment Amount”) on the 7th Trading Day following the Prepayment Notice Date
(such date, the “Prepayment Date”). The Prepayment Amount shall be due and payable in full in cash (by wire
transfer of immediately available funds to the account of the Holder) on the Prepayment Date. The Company will, within one Business
Day of the Prepayment Date, publicly announce that it had delivered a Prepayment Notice to the Holder and that the Company has
(or, if applicable, has not) paid the Prepayment Amount to the Holder on the Prepayment Date by means or press release and filing
of a Current Report on Form 8-K. If any portion of Prepayment Amount shall not be paid by the Company by the Prepayment Date,
interest shall accrue thereon at an interest rate equal to the lesser of 12% per annum or the maximum rate permitted by applicable
law until such amount is paid in full. Notwithstanding anything herein contained to the contrary, if any portion of the Prepayment
Amount remains unpaid after the Prepayment Date then the Holder may elect, by written notice to the Company given at any time
thereafter, to invalidate such prepayment, ab initio. For clarity, the Company’s failure to pay all or a portion
of the Prepayment Amount on the Prepayment Date shall be an immediate Event of Default hereunder. This Note may only be prepaid
in accordance with this Section 2(d). Any partial repayment of this Note shall be in increments of at least $1,000,0000.

 

Section
3. Registration of Transfers and Exchanges.

 

a)
Different Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different denominations,
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

b)
Investment Representations. This Note has been issued subject to certain investment representations of the original Holder
set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable
federal and state securities laws and regulations.

 

c)
Reliance on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent
of the Company may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the
purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the
Company nor any such agent shall be affected by notice to the contrary.

 

Section
4. Covenants.

 

a)
As long as any portion of this Note remains outstanding, the Company shall, and shall cause each of its Material Subsidiaries
to:

 

i.
preserve and maintain its legal existence, rights, franchises and privileges in the jurisdiction of its organization, and qualify
and remain qualified as a foreign business entity in each jurisdiction in which qualification is necessary in view of its business
and operations or the ownership of its properties and where failure maintain or qualify could reasonably be expected to have a
Material Adverse Effect; provided that this paragraph does not prohibit the Company or its Material Subsidiaries from re-domesticating
to other jurisdictions in the United States with at least 20 days prior written notice to the Agent of such re-domestication;

 

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ii.
provide to Agent and the Holder, promptly upon becoming aware thereof (and in any event within 4 days after the occurrence thereof),
a notice of each Event of Default known to an executive officer of the Company or any Material Subsidiary, together with a statement
of such executive officer setting forth the details of such Event of Default and the actions which the Company or such Material
Subsidiary has taken and proposes to take with respect thereto;

 

iii.
(a) pay and discharge as the same shall become due and payable: (i) all tax liabilities, assessments and governmental charges
or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently
conducted (which proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to any such
Lien) and adequate reserves in accordance with GAAP are being maintained by the Company or such Material Subsidiary; (ii) all
lawful claims which, if unpaid, would by law become a Lien upon its property, unless the same are being contested in good faith
by appropriate proceedings diligently conducted (which proceedings have the effect of preventing the forfeiture or sale of the
property or assets subject to any such Lien) and adequate reserves in accordance with GAAP are being maintained by the Company
or such Material Subsidiary; and (iii) all Indebtedness, as and when due and payable, but subject to the terms of this Note and/or
any subordination provisions contained in any instrument or agreement evidencing such Indebtedness; and (b) timely file all material
tax returns required to be filed (subject to any valid extension);

 

iv.
(a) maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in
good working order and condition, ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals and
replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect;

 

v.
comply in all material respects with the requirements of all applicable laws and all orders, writs, injunctions and decrees applicable
to it or to its business or property, except in such instances in which (a) such requirement of law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith
could not reasonably be expected to have a Material Adverse Effect;

 

vi.
obtain Account Control Agreements for each deposit account or securities account in the name of the Company or any Subsidiary
held in the United States having a balance of $100,000.00 or greater or otherwise set forth on Schedule 1.1A to the Purchase Agreement,
provided, however, that aggregate amount on deposit in bank accounts or securities accounts held in the United States
that are not subject to Account Control Agreement shall not at any time exceed $500,000 in the aggregate, further, provided,
however, that in respect of accounts held at an investment bank under an at-the-market offering program then in effect, the
Company may exceed such limits if it transfers such excess amounts to an account subject to an Account Control Agreement at least
every five Business Days;

 

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vii.
maintain (a) insurance with financially sound and reputable insurance companies in at least the amounts (and with only those deductibles)
customarily maintained, and against such risks as are typically insured against, by Persons of comparable size engaged in the
same or similar business as the Company and its Material Subsidiaries; and (b) all worker’s compensation, employer’s
liability insurance or similar insurance as may be required under the laws of any state or jurisdiction in which it may be engaged
in business. If request by the Agent, all such insurance policies required pursuant to this Section shall name the Agent as mortgagee
(in the case of property insurance) or loss payee or additional insured (in the case of liability insurance), as applicable;

 

viii.
use reasonable efforts to cause the Company (i) to remain eligible to use Form S-3 for a delayed or continuous offering pursuant
to Rule 415(a)(1)(x) promulgated under the Securities Act of 1933, as amended and to have an at-the-marketing offering program
for the continuous offering of its shares of Common Stock in effect and available for use at all times other than customary black-out
periods pending the public release of the Company’s quarterly or annual, as applicable, financial results; and

 

ix.
use best efforts to cause the PPP Loans to be forgiven, including without limitation, by timely filing an SBA Form 3508.

 

b)
As long as any portion of this Note remains outstanding, and unless the Holder shall have otherwise given its prior written consent,
the Company shall not, and shall not permit any of the Material Subsidiaries to, directly or indirectly:

 

i.
other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any Indebtedness;

 

ii.
other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to
any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

iii.
make or hold any Investments other than: (a) Investments shown on Schedule 4.1(b)(iii) as existing on the Original Issue Date
(provided, for clarity, that neither the Company nor any Subsidiary shall increase the size of its Investment in any such Investment
existing on the Original Issue Date other than in accordance with this Note and the other Transaction Documents), (b) Investments
in cash and cash equivalents, (c) Investments in any Subsidiary as of the Original Issue Date (provided, for clarity, that neither
the Company nor any Subsidiary shall increase the size of its Investment in any such Subsidiary existing on the Original Issue
Date other than in accordance with this Note and the other Transaction Documents), (d) Investments in Qualified Subsidiaries,
provided, however, Investments in Qualified Subsidiaries that are Foreign Subsidiaries shall not exceed $1,000,000 in the aggregate
per calendar year without the prior consent of the Agent; (e) other Investments that do not exceed $1,000,000 in the aggregate
per calendar year and (f) the acquisition of another Person (whether by merger, acquisition of assets or purchase of Equity Interests)
in single transaction for consideration that does not exceed, in the aggregate, $2,000,000 in cash and Common Stock Equivalents
equal to 10% of the outstanding shares of Common Stock on the Original Issue Date (and so long as the Agent is granted a perfected,
first priority security interest in the assets of the Person so acquired);

 

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iv.
Dispose of any its assets (including, without limitation, any Disposition to any Subsidiary that is not a Qualified Subsidiary)
other than (a) sales of inventory in the ordinary course of business and (b) other Dispositions not to exceed $1,000,000 in the
aggregate between the Original Issue Date and the Maturity Date;

 

v.
amend its Organizational Documents in any manner that adversely affects in a material respect the rights of the Holder under the
Transaction Documents;

 

vi.
merge, dissolve, liquidate, consolidate with or into another Person or otherwise suffer or permit a Change of Control Transaction
other than (a) a merger of a Subsidiary into the Company with the Company as the surviving corporation, (b) a merger of a Subsidiary
into another Subsidiary, provided, that no Qualified Subsidiary shall merge into another Subsidiary that is not a Qualified Subsidiary
and no Domestic Subsidiary shall merge into a Foreign Subsidiary, or (c) a migratory merger effected solely for the purpose of
changing the jurisdiction of incorporation of the Company or any of its Subsidiaries, provided, that the Agent is given at least
20 days prior notice of any such migratory merger and such migratory merger would not impair any Liens, rights or remedies of
the Agent or the Holder;

 

vii.
repay, repurchase or offer to repay, repurchase or otherwise acquire any of its Equity Interests in excess of $500,000 in the
aggregate per year;

 

viii.
repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness other than this Note other than scheduled
repayments of Permitted Indebtedness (provided that the Company and its Subsidiaries shall not repay the PPP Loans without the
prior consent of the Agent);

 

ix.
pay dividends or distributions on any of its Equity Interests, except that any Subsidiary may, directly or indirectly, pay any
dividend or distribution to the Company;

 

x.
create any new Foreign Subsidiary;

 

xi.
create any new Domestic Subsidiary unless such new Domestic Subsidiary promptly becomes a Qualified Subsidiary;

 

xii.
enter into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with
the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested
directors of the Company (even if less than a quorum otherwise required for board approval); or

 

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xiii.
enter into any agreement with respect to any of the foregoing.

 

c)
Minimum Cash. The Company shall at all times maintain on deposit in bank accounts subject to Account Control Agreements
cash in an amount greater than or equal to the lesser of (i) $18,000,000 (reducing to $8,000,000 once the condition set forth
in Section 2.4(g) of the Purchase Agreement have been satisfied or waived by Agent in Agent’s sole discretion) or (ii) the
outstanding principal balance (including, for the avoidance of doubt, any original issue discount) of this Note (the “Minimum
Cash”). The Minimum Cash required pursuant to the foregoing clause (i) or (ii), as applicable, shall be held in bank
accounts located in the United States subject to an Account Control Agreement.

 

d)
Minimum Adjusted EBITDA. The Company shall not permit its Adjusted EBITDA to be less than (i) $1,000,000 for three-month
period ending March 31, 2021, (ii) $3,000,000 for the six-month period ending June 30, 2021 or (iii) $6,000,000 for the nine-month
period ending September 30, 2021.

 

e)
Minimum Trailing Twelve Month Adjusted EBITDA. The Company shall not permit its Adjusted EBITDA for the twelve-month period
ending on the last day of any fiscal quarter, commencing with the fiscal quarter ending December 31, 2021, to be less than thirty
percent (30%) of the aggregate outstanding principal balance of the Notes as of the last day of such fiscal quarter.

 

f)
Minimum Revenue. The Company shall not permit revenue of the Company and its Subsidiaries calculated in accordance with
GAAP to be less than $85,000,000 for each fiscal quarter.

 

g)
Compliance Certificate. The Company shall, not later than 45 days after the last day of each fiscal quarter (other than
the fiscal quarter ending December 31), file with the Commission its Form 10-Q. The Company shall, not later than 90 days after
each fiscal year, file with the Commission its Form 10-K for such fiscal year. Simultaneously with the such filings with the Commission,
the Company shall deliver to the Holder a compliance certificate executed by the Company’s chief executive officer or chief
financial officer stating the no Events of Default have occurred since the date of the last compliance certificate (or, in the
case of the initial compliance certificate, the Original Issue Date), and setting forth a reasonably detailed calculation of Adjusted
EBITDA and compliance with the covenants set forth in Sections 4(c), (d), (e) and (f). Without the
prior written consent of the Holder, such compliance certificate shall not contain any non-public information and shall be derived
from the information publicly available in the Company’s reports filed with the Commission or otherwise publicly available.

 

    	11

    	 

    

 

h)
Non-Circumvention. The Company hereby covenants and agrees that (i) neither the Company nor any Subsidiary will, by amendment
of its Organizational Documents or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Note and the other Transaction Documents, and (ii) the Company and each of its Subsidiaries will at
all times in good faith carry out all of the provisions of this Note and the other Transaction Documents and take all action as
may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any of the
terms and conditions of this Note or other Transaction Documents, the Company shall not and shall not cause or permit its Subsidiaries
to avoid or seek to avoid the repayment of this Note or interfere with the Agent’s exercise of its rights and remedies under
the Transaction Documents by transferring, holding or maintaining cash or other assets in Subsidiaries that are not Qualified
Subsidiaries other than for legitimate business reasons and/or outside of the ordinary course of business consistent with past
practice.

 

i)
Foreign Cash. The Company shall not permit cash on hand held by any Foreign Subsidiary, excluding any Foreign Subsidiary
organized and operating under the laws of China, to exceed 225% of the cash on deposit in U.S. deposit accounts subject to Account
Control Agreements. Any amounts in excess of such amount held by any Foreign Subsidiary, excluding such amounts of any Foreign
Subsidiary organized and operating under the laws of China, shall be transferred to a U.S. deposit account of the Company subject
to an Account Control Agreement.

 

j)
Excluded Subsidiaries. Notwithstanding anything herein to the contrary, the Company will not permit, and will cause its
Subsidiaries to not permit, any Excluded Subsidiary, at any time to (i) own or have any economic interest in any material asset
or property, (ii) incur any material liabilities, (iii) generate any material revenue or (iv) engage in any material business
or business activity, in each case, without the prior written consent of the Agent.

 

Section
5. Events of Default.

 

a)
“Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event
and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or
order of any court, or any order, rule or regulation of any administrative or governmental body):

 

i.
any default in the payment of principal, interest, liquidated damages and/or other amounts owing to the Holder under this Note
or the Purchase Agreement, as and when the same shall become due and payable, which payment (other than principal) is not cured
within two (2) Business Days;

 

ii.
the Company or any Subsidiary shall fail to observe or perform any other covenant or agreement contained in this Note or any other
Transaction Document (other than a breach by the Company of its obligations to pay principal, interest, liquidated damages and/or
other amounts owing to the Holder under this Note which breach is addressed in clause (i) above) and such failure is not cured
(if curable) within fifteen (15) days’ notice of such failure from Agent; provided, that any failure to observe or perform
any provision of Section 4 shall be an immediate Event of Default hereunder without any grace period;

 

    	12

    	 

    

 

iii.
the occurrence of a Material Adverse Effect;

 

iv.
any representation or warranty made in this Note or any other Transaction Documents, any written statement pursuant hereto or
thereto or any other report, financial statement or certificate made or delivered to the Holder or any other Holder pursuant to
the Transaction Documents shall be untrue or incorrect in any material respect as of the date when made or deemed made;

 

v.
the Company or any Material Subsidiary shall be subject to a Bankruptcy Event;

 

vi.
the Company or any Subsidiary shall default on any of its obligations under any Indebtedness that (a) involves an obligation greater
than two hundred fifty thousand dollars ($250,000), whether such Indebtedness now exists or shall hereafter be created and (b)
that could result in such Indebtedness becoming or being declared due and payable prior to the date on which it would otherwise
become due and payable;

 

vii.
a judgment in excess of two hundred fifty thousand dollars ($250,000) is entered against the Company or any Subsidiary and, within
60 days after entry thereof, such judgment is not discharged or satisfied or execution thereof stayed pending appeal, or within
60 days after the expiration of any such stay, such judgment is not discharged or satisfied;

 

viii.
the Company, any Subsidiary or any of their respective executive officers of the Company or any Subsidiary shall be indicted,
convicted or have a judgment entered against it (including in a settled action) for any intentional or willful violation of state,
federal or foreign laws applicable to the business of the Company and its Subsidiaries or any anti-fraud provisions of state or
federal securities law;

 

ix.
Greg Gould or Brent Willis shall cease to be an executive officer of the Company or otherwise involved in the Company’s
day-to-day operations on a full-time basis and such individual is not replaced within 120 days by the Company’s board of
directors with a replacement acceptable to the Agent, such acceptance not to be unreasonably withheld or delayed;

 

x.
the Agent shall cease to have a perfected, first priority Lien on substantially all of the assets of the Company or any Qualified
Subsidiary; or

 

xi.
the Company has failed to cause any of the conditions set forth in Section 2.4 of the Purchase Agreement to be satisfied within
the time periods set forth therein.

 

    	13

    	 

    

 

b)
Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the outstanding principal amount of this
Note, plus accrued but unpaid interest, liquidated damages, Prepayment Premium and other amounts owing in respect thereof through
the date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash; provided, that such
acceleration shall be automatic, without any notice or other action of the Holder required, in respect of an Event of Default
occurring pursuant to clause (v) of Section 5(a). In connection with such acceleration described herein, the Holder need
not provide, and the Company hereby waives, any notice, presentment, demand, protest or other notice of any kind, and the Holder
may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other
remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to
payment hereunder and the Holder shall have all rights as a holder of the Note until such time, if any, as the Holder receives
full payment pursuant to this Section 5(b). No such rescission or annulment shall affect any Event of Default or impair
any right consequent thereon.

 

Section
6. Miscellaneous.

 

a)
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be in writing
and delivered personally, by email, or sent by a nationally recognized overnight courier service, addressed to the Company, at
the address set forth above, or such other facsimile number, email address, or address as the Company may specify for such purposes
by notice to the Holder delivered in accordance with this Section 6(a). Any and all notices or other communications or
deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, by email, or sent
by a nationally recognized overnight courier service addressed to the Holder at the facsimile number or email address or address
of the Holder appearing on the books of the Company, or if no such facsimile number or email or address appears on the books of
the Company, at the principal place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication
or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or email to the email address set forth on the signature pages
attached hereto prior to 5:30 p.m. (local time in New York City, New York) (or such later time expressly specified elsewhere in
this Note) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email to the email address set forth on the signature pages attached hereto on a day
that is not a Trading Day or later than 5:30 p.m. (local time in New York City, New York) (or such later time expressly specified
elsewhere in this Note) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

b)
Absolute Obligation. The obligation of the Company to pay the principal of, liquidated damages and accrued interest, as
applicable, on this Note at the time, place, and rate, and in the coin or currency, herein prescribed is absolute and unconditional.
This Note is a direct debt obligation of the Company. All payments by the Company hereunder shall be made without setoff, deduction
or counterclaim.

 

    	14

    	 

    

 

c)
Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver,
in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen
or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt
of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.
The applicant for a new Note under such circumstances shall also pay or provide for any reasonable third-party costs (including
a customary indemnity) associated with the issuance of such replacement Note.

 

d)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be
governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense
of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective
Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting
in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this
Note or the transactions contemplated hereby.

 

e)
Amendments; Waivers. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate
as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note.
The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall
not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Note on any other occasion. Any waiver by the Company or the Holder must be in writing. Any provision of this Note
may be waived by the Holders of at least 50.1% of the outstanding principal amount of Notes, which waiver shall be binding on
all of the Holders of the Notes and their successors and assigns. Any provision of this Note may be amended by a written instrument
executed by the Company and the Holders of at least 50.1% of the outstanding principal amount of Notes, which amendment shall
be binding on all of the Holders of the Notes and their successors and assigns.

 

    	15

    	 

    

 

f)
Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain
in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all
other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates
the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the
maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that
it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal
of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect
the covenants or the performance of this Note, and the Company (to the extent it may lawfully do so) hereby expressly waives all
benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such
law has been enacted.

 

g)
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall
be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law
or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company
covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees
that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and
without any bond or other security being required. The Company shall provide all information and documentation to the Holder that
is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this
Note.

 

h)
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day.

 

    	16

    	 

    

 

i)
Headings. The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be
deemed to limit or affect any of the provisions hereof.

 

j)
Limitation of Liability. Neither Holder, Agent nor any Affiliate, officer, director, employee, attorney, or agent of Holder
or Agent shall have any liability with respect to, and the Company hereby waives, releases, and agrees not to sue any of them
upon, any claim for any punitive, special, indirect, incidental, or consequential damages suffered or incurred by the Company
in connection with, arising out of, or in any way related to, this Note or any of the other Transaction Documents, or any of the
transactions contemplated by this Note or any of the other Transaction Documents.

 

k)
Costs of Enforcement. The Company hereby covenants and agrees to indemnify, defend and hold the Holder harmless from and
against all costs and expenses, including reasonable attorneys’ fees and their reasonable costs, together with interest
thereon at the Applicable Rate, incurred by the Holder in enforcing its rights under this Note; or if the Holder is made a party
as a defendant in any action or proceeding arising out of or in connection with its status as a lender, or if the Holder is requested
to respond to any subpoena or other legal process issued in connection with this Note; or reasonable disbursements arising out
of any costs and expenses, including reasonable attorneys’ fees and their costs incurred in any bankruptcy case; or for
any legal or appraisal reviews, advice or counsel performed for the Holder following a request by the Company for waiver, modification
or amendment of this Note.

 

(Signature
Pages Follow)

 

    	17

    	 

    

 

IN
WITNESS WHEREOF, the parties below have caused this Note to be duly executed by a duly authorized officer as of the date first
above indicated.

 

	 	NEWAGE,
    INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:
    	 
	 	E-mail
    Address for delivery of Notices:
	 	 	 
	 	[HOLDER]
	 	 
	 	By:	        
	 	Name:
    	 
	 	Title:
    	 
	 	E-mail
    Address for delivery of Notices:

 

Signature
Page to

Senior
Secured NoteExhibit
10.3

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of December 1, 2020 (as it may be amended or restated from time to time, this “Agreement”),
is by and among NewAge, Inc., a Washington corporation (the “Company”), the Subsidiary Guarantors from time
to time party hereto (such Subsidiary Guarantors, together with the Company, the “Debtors”), the holders of
the Company’s 8.00% Original Issue Discount Senior Secured Notes due December 1, 2022, in the original aggregate principal
amount of $32,432,000.00 (collectively, the “Notes”) that are signatories hereto (together with their endorsees,
transferees and assigns, the “Purchasers”), and JGB Collateral, LLC, a Delaware limited liability company,
in its capacity as agent for the Purchasers (“Agent” and collectively with the Purchasers, the “Secured
Parties”).

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to the Purchase Agreement (as defined in the Notes), the Purchasers have severally agreed to extend the loans to the
Company evidenced by the Notes; and

 

WHEREAS,
in order to induce the Purchasers to extend the loans evidenced by the Notes, each Debtor has agreed to execute and deliver to
the Secured Parties this Agreement and to grant the Agent, on behalf of the Secured Parties, a security interest in certain property
of such Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under
the Notes and other Transaction Documents and the Subsidiary Guarantors’ obligations under the Purchase Agreement.

 

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

 

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

 

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

 

    	 

     

    

 

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

 

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

 

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

 

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

 

(v)
All commercial tort claims;

 

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

 

(vii)
All investment property;

 

(viii)
All supporting obligations;

 

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

 

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

 

Without
limiting the generality of the foregoing, the “Collateral” shall include all investment property and general
intangibles respecting ownership and/or other equity interests in each Subsidiary Guarantor, including, without limitation, the
shares of capital stock and the other equity interests listed on Schedule H hereto (as the same may be modified from time
to time pursuant to the terms hereof), and any other shares of capital stock and/or other equity interests of any other direct
or indirect subsidiary of any Debtor obtained in the future, and, in each case, all certificates representing such shares and/or
equity interests and, in each case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter
be received, receivable or distributed in respect of, or exchanged for, any of the foregoing and all rights arising under or in
connection with the Pledged Securities, including, but not limited to, all dividends, interest and cash.

 

    	2

    	 

    

 

Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void or voidable by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each
case to the extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar
applicable law); provided, however, that to the extent permitted by applicable law and solely to the extent doing
so does not void or invalidate such asset, this Agreement shall create a valid security interest in such asset and, to the extent
permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset.

 

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

 

(c)
“Majority in Interest” means, at any time of determination, the majority in interest (based on then-outstanding
principal amounts of the Notes at the time of such determination) of the Purchasers.

 

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

 

    	3

    	 

    

 

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

 

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

 

(g)
“Permitted Liens” shall have the meaning ascribed to such term in the Notes.

 

(h)
“Pledged Interests” shall have the meaning ascribed to such term in Section 4(j).

 

(i)
“Pledged Securities” shall have the meaning ascribed to such term in Section 4(i).

 

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

 

    	4

    	 

    

 

2.
Grant of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by
the Notes and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the
Obligations, each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Agent, on behalf of the
Secured Parties, a security interest in and to, a lien upon and a right of set-off against all of their respective right, title
and interest of whatsoever kind and nature in and to, the Collateral (a “Security Interest” and, collectively,
the “Security Interests”).

 

3.
Delivery of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, or at any time after the
date hereof within 20 days of the later of (i) the acquisition or (ii) the possession by the Debtor, each Debtor shall deliver
or cause to be delivered to the Agent (a) any and all certificates and other instruments representing or evidencing the Pledged
Securities together with appropriate instruments of transfer executed in blank, and (b) any and all certificates and other instruments
or documents representing any of the other Collateral (other than checks to be deposited in the ordinary course of business) or
which require or permit possession by the Agent to perfect its Security Interest therein, with a value in excess of $100,000 individually
or $500,000 in the aggregate, in each case, to the extent delivery of the Collateral is required for “control” within
the meaning of Section 9-106 of the UCC, and in each case, together with all Necessary Endorsements. The Debtors are, contemporaneously
with the execution hereof, delivering to Agent, or have previously delivered to Agent, a true and correct copy of each Organizational
Document governing any of the Pledged Securities.

 

4.
Representations, Warranties, Covenants and Agreements of the Debtors. Except as set forth under the corresponding section
of the disclosure schedules delivered to the Secured Parties concurrently herewith (the “Disclosure Schedules”),
which Disclosure Schedules shall be deemed a part hereof, each Debtor represents and warrants on the date hereof to, and covenants
and agrees with, the Secured Parties as follows:

 

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

 

(b)
The Debtors have no place of business or offices where their respective books of account and records are kept or places where
Collateral is stored or located, except as set forth on Schedule A attached hereto. Except as disclosed on Schedule
A, none of such Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor.

 

    	5

    	 

    

 

(c)
Except for Permitted Liens and except as set forth on Schedule B attached hereto, the Debtors are the sole owner of the
Collateral, free and clear of any liens, security interests, encumbrances, rights or claims, and are fully authorized to grant
the Security Interests. Except as set forth on Schedule C attached hereto, to the knowledge of the Debtors there is not
on file in any governmental or regulatory authority, agency or recording office an effective financing statement, security agreement
or transfer or any notice of any of the foregoing (other than those that will be filed in favor of the Secured Parties pursuant
to this Agreement) covering or affecting any of the Collateral. Except as set forth on Schedule C attached hereto and except
pursuant to this Agreement, as long as this Agreement shall be in effect, the Debtors shall not permit to be on file in any such
office or agency any other financing statement or other document or instrument (except (i) in connection with Permitted Liens
or (ii) to the extent filed or recorded in favor of the Secured Parties pursuant to the terms of this Agreement).

 

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

 

(e)
Each Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of
business and its Collateral at the locations set forth on Schedule A attached hereto, and may not relocate such books of account
and records or tangible Collateral unless it delivers to the Secured Parties at least 7 days prior to such relocation (i) written
notice of such relocation and the new location thereof (which must be within the United States) and (ii) prior to or contemporaneously
therewith takes all actions reasonably requested by the Agent to maintain a valid and continuing perfected first priority lien
in the Collateral, subject to Permitted Liens.

 

(f)
This Agreement creates in favor of the Agent, on behalf of the Secured Parties, a valid security interest in the Collateral, subject
only to Permitted Liens, securing the payment and performance of the Obligations. Upon making the filings described in the immediately
following paragraph, all security interests created hereunder in any Collateral which may be perfected by filing Uniform Commercial
Code financing statements shall have been duly perfected. Except for the filing of the Uniform Commercial Code financing statements
referred to in the immediately following paragraph, the recordation of the Intellectual Property Security Agreement (as defined
in Section 4(p) hereof) with respect to copyrights and copyright applications in the United States Copyright Office referred to
in paragraph (hh), the execution by all applicable parties and delivery of deposit account control agreements satisfying the requirements
of Section 9-104(a)(2) of the UCC with respect to each applicable deposit account of the Debtors, and the delivery of the certificates
and other instruments provided in Section 3, no action is necessary on the date hereof to create, perfect or protect the security
interests in the Collateral created hereunder. Without limiting the generality of the foregoing, except for the filing of said
financing statements, the recordation of said Intellectual Property Security Agreement, and the execution and delivery of said
deposit account control agreements and subject to any actions required to be taken with respect to security interests in the assets
of foreign subsidiaries, no consent of any third parties and no authorization, approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body is required for (i) the execution, delivery and performance of this
Agreement, (ii) the creation or perfection of the Security Interests created hereunder in the Collateral or (iii) the enforcement
of the rights of the Agent and the Secured Parties hereunder, except for those consents and approvals which have already been
obtained. The Secured Parties acknowledge that (i) additional steps may be required to perfect their security interest in assets
or other property or foreign subsidiaries located outside of the United States and (ii) certain foreign jurisdictions may not
recognize the creation of security interests in the assets of applicable foreign subsidiaries or have any method to perfect any
such security interest in applicable foreign subsidiaries.

 

    	6

    	 

    

 

(g)
Each Debtor hereby authorizes the Agent to file one or more financing statements (at the expense of the Debtor) under the UCC
necessary or reasonably desirable to perfect the Security Interests granted herein, in each case with the proper filing and recording
agencies in any jurisdiction deemed proper by it (and such authorization includes describing the Collateral as “all assets”
of such Debtor).

 

(h)
The execution, delivery and performance of this Agreement by the Debtors does not (i) violate any of the provisions of any Organizational
Documents of any Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable
United States law, rule or regulation applicable to any Debtor or (ii) conflict with, or constitute a default (or an event that
with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other instrument
(evidencing any Debtor’s debt or otherwise). If any, all required consents (including, without limitation, from stockholders
or creditors of any Debtor) necessary for any Debtor to enter into and perform its obligations hereunder have been obtained excluding
any consents required in connection with the creation or perfection of assets or other property or foreign subsidiaries located
outside of the United States. To the extent that a foreign subsidiary requires a governmental consent or approval in order to
enter into this Agreement, this Agreement shall be deemed to be subject to receipt of such approval or consent.

 

(i)
The capital stock and other equity interests listed on Schedule H hereto (the “Pledged Securities”)
represent all of the capital stock and other equity interests of the Subsidiary Guarantors, and represent all capital stock and
other equity interests owned, directly or indirectly, by any Debtor.

 

    	7

    	 

    

 

(j)
The ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the
“Pledged Interests”) by their express terms do not provide that they are securities governed by Article 8 of
the UCC and are not held in a securities account or by any financial intermediary. No Pledged Interest is evidenced or represented
by a certificate or otherwise certificated.

 

(k)
Except for Permitted Liens, each Debtor shall at all times take such actions as the Agent may reasonably request to maintain the
liens and Security Interests provided for hereunder as valid and perfected first priority liens and security interests in the
Collateral in favor of the Agent, on behalf of the Secured Parties, until this Agreement and the Security Interest hereunder shall
be terminated pursuant to Section 14 hereof. Each Debtor hereby agrees to defend the same against the claims of any and all persons
and entities except for Permitted Liens. Each Debtor shall safeguard and protect all Collateral for the account of the Agent on
behalf of Secured Parties. Without limiting the generality of the foregoing, each Debtor shall pay all fees, taxes and other amounts
necessary to maintain the Collateral and the Security Interests hereunder (other than those fees and taxes that are being contested
in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP), and each
Debtor shall make commercially reasonable efforts to obtain and furnish to the Agent 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 except
for Permitted Liens.

 

(l)
No Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral outside the
ordinary course of business without the prior written consent of the Agent or as permitted under the Purchase Agreement.

 

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

 

(n)
Each Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including
Collateral hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities
of established reputation having similar properties similarly situated and in such amounts as are customarily carried under
similar circumstances by other such entities and otherwise as is prudent for entities engaged in similar businesses. Each
Debtor shall cause each insurance policy issued in connection herewith to provide, and shall provide evidence reasonably
satisfactory to the Agent in its reasonable discretion demonstrating, that (a) the Agent will be named as lender loss payee
and additional insured under each such insurance policy (as applicable); (b) if such insurance be proposed to be cancelled or
materially changed for any reason whatsoever, such insurer will reasonably endeavor to promptly notify the Agent and such
cancellation or change shall not be effective as to the Agent for at least 30 days after receipt by the Agent of such notice,
unless the effect of such change is to extend or increase coverage under the policy; and (c) the Agent will have the right
(but no obligation) at its election to remedy any default in the payment of premiums within 30 days of notice from the
insurer of such default. If no Event of Default (as defined in the Notes) exists and if the proceeds arising out of any claim
or series of related claims do not exceed $250,000, loss payments in each instance will be applied by the applicable Debtor
to the repair and/or replacement of property with respect to which the loss was incurred to the extent reasonably feasible,
and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable to the applicable
Debtor; provided, however, that payments received by any Debtor after an Event of Default occurs and is continuing or in
excess of $250,000 for any occurrence or series of related occurrences shall be paid to the Agent on behalf of the Secured
Parties and, if received by such Debtor, shall be held in trust for the Secured Parties and immediately paid over to the
Agent unless otherwise directed in writing by the Agent. Copies of such policies or the related certificates, in each case,
naming the Agent as lender loss payee and additional insured shall be delivered to the Agent at least annually and at the
time any new policy of insurance is issued.

 

    	8

    	 

    

 

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

 

(p)
Each Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take such further action as the Agent may from time
to time reasonably request and may in its reasonable discretion deem necessary to perfect, protect or enforce the Agent’s
security interest in the Collateral including, without limitation, if applicable, the execution and delivery of a separate security
agreement with respect to each Debtor’s Intellectual Property (“Intellectual Property Security Agreement”)
in which the Agent, on behalf of the Secured Parties, have been granted a security interest hereunder, substantially in a form
reasonably acceptable to the Agent, which Intellectual Property Security Agreement, other than as stated therein, shall be subject
to all of the terms and conditions hereof. Each Debtor hereby further authorizes the Agent to file with the United States Patent
and Trademark Office and the United States Copyright Office (and any successor office and any similar office in any United States
state or other country) this Agreement, the Intellectual Property Security Agreement, and other documents for the purpose of perfecting,
confirming, continuing, enforcing or protecting the security interest granted by such Debtor hereunder, without the signature
of such Debtor where permitted by law, and naming such Debtor as debtor, and the Agent as secured party.

 

(q)
Each Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and
upon reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the
Agent from time to time.

 

    	9

    	 

    

 

(r)
Each Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any material
rights, claims, causes of action (to the extent that such Debtor determines in its commercially reasonable discretion that the
pursuit of such right, claim or cause of action is beneficial to such Debtor) and accounts receivable in respect of the Collateral.

 

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

 

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

 

(u)
Each Debtor was organized and remains organized solely under the laws of the state or country set forth next to such Debtor’s
name in Schedule D attached hereto, which Schedule D sets forth each Debtor’s actual legal name and organizational identification
number or, if any Debtor does not have an organizational identification number, states that one does not exist. The Debtors shall
at all times preserve and keep in full force and effect their respective valid existence and good standing and any licenses, franchises
or similar rights material to its business. No Debtor will (i) change its name, type of organization, jurisdiction of organization,
organizational identification number (if it has one), legal or corporate structure, or identity, or (ii) relocate its chief executive
office to a new location unless, in each case, it provides at least 15 days prior written notice to the Secured Parties of such
change. At the time of such written notification or contemporaneously with such relocation, such Debtor shall take any further
action requested by the Agent reasonably necessary to perfect and continue the perfection of the Security Interests granted and
evidenced by this Agreement.

 

(v)
Except in the ordinary course of business, no Debtor may consign any of its inventory or sell any of its inventory on bill and
hold, sale or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be
unreasonably withheld.

 

(w)
(i) no Debtor has any trade names except as set forth on Schedule E attached hereto; (ii) no Debtor has used any name other
than that stated in the preamble hereto or as set forth on Schedule E for the preceding five years; and (iii) no entity
has merged into any Debtor or been acquired by any Debtor within the past five years except as set forth on Schedule E.

 

(x)
Each Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Agent regarding the
Pledged Interests consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section
8-106 (or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement with
respect to the Pledged Interests (or one that would confer “control” within the meaning of Article 8 of the UCC) with
any other person or entity.

 

    	10

    	 

    

 

(y)
Each Debtor shall promptly inform the Agent of the acquisition of any chattel paper and upon the Agent’s reasonable request,
each Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent, or, if such delivery
is not possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest
created by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the applicable Debtor shall
cause the underlying chattel paper to be marked and maintained in accordance with Section 9-105 of the UCC (or successor section
thereto).

 

(z)
If there is any investment property or deposit account meeting the criteria set forth in the Notes included as Collateral that
can be perfected by “control” through a deposit account control agreement, the applicable Debtor shall cause such
a deposit account control agreement, in form and substance in each case satisfactory to the Agent, to be entered into in accordance
with the terms of the Notes.

 

(aa)
To the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying
letter of credit to consent to an assignment of the proceeds thereof to the Secured Parties.

 

(bb)
To the extent that any material Collateral is in the possession of any third party, the applicable Debtor shall join with the
Agent in notifying such third party of the Secured Parties’ security interest in such Collateral and shall use its commercially
reasonable efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and
substance reasonably satisfactory to the Agent.

 

(cc)
If any Debtor shall at any time hold or acquire a commercial tort claim with a value in excess of $250,000, such Debtor shall
promptly notify the Agent in a writing signed by such Debtor of the particulars thereof and grant to the Agent, on behalf of the
Secured Parties, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement,
with such writing to be in form and substance reasonably satisfactory to the Agent.

 

(dd)
Following the date hereof, each Debtor shall cause each new subsidiary of such Debtor to become a party hereto and to the Purchase
Agreement (an “Additional Debtor”) within 20 days of the acquisition or formation of such new subsidiary (or
such later date as may be approved by the Agent) by executing and delivering a Joinder Agreement and Security Agreement Supplement
in substantially the form of Exhibit C to the Purchase Agreement. Concurrent therewith, the Additional Debtor shall deliver replacement
schedules for, or supplements to all other Schedules to (or referred to in) this Agreement, as applicable, which replacement schedules
shall supersede, or supplements shall modify, the Schedules then in effect. The Additional Debtor shall also deliver such opinions
of counsel, authorizing resolutions, good standing certificates, incumbency certificates, organizational documents and other information
and documentation as the Agent may reasonably request. Upon delivery of the foregoing to the Agent, the Additional Debtor shall
be and become a party to this Agreement with the same rights and obligations as the Debtors, for all purposes hereof as fully
and to the same extent as if it were an original signatory hereto and shall be deemed to have made the representations, warranties
and covenants set forth herein as of the date of execution and delivery of such Joinder Agreement, and all references herein to
the “Debtors” shall be deemed to include each Additional Debtor.

 

    	11

    	 

    

 

(ee)
Each Debtor shall be entitled to exercise all voting and/or consensual rights and powers inuring to an owner of the Pledged Securities
and any part thereof for all purposes not inconsistent with the terms of this Agreement or any other Transaction Document.

 

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

 

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

 

(hh)
Without limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) provide any
requested documents and information and carry out any actions reasonably requested in connection with recording of the security
interest contemplated hereby with respect to all registered material Intellectual Property at the United States Copyright Office
or United States Patent and Trademark Office, and (ii) give the Agent notice whenever it acquires (whether absolutely or by exclusive
license) or creates any additional material Intellectual Property that is subject to an application or registration at the United
States Patent and Trademark Office or the United States Copyright Office.

 

    	12

    	 

    

 

(ii)
Each Debtor will from time to time, at the joint and several expense of the Debtors, promptly execute and deliver all such further
instruments and documents, and take all such further action as may be necessary or reasonably desirable, or as the Agent may reasonably
request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Agent,
for the benefit of the Secured Parties, to exercise and enforce the rights and remedies hereunder and with respect to any Collateral
or to otherwise carry out the purposes of this Agreement.

 

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

 

(kk)
As of the date hereof, except as set forth on Schedule G attached hereto, none of the account debtors or other persons
or entities obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or
any similar federal, state or local statute or rule in respect of such Collateral. Each Debtor shall promptly provide written
notice to the Agent of any and all accounts which arise out of contracts with any governmental authority and, to the extent necessary
to perfect or continue the perfected status of the Security Interests in such accounts and proceeds thereof, shall execute and
deliver to the Agent an assignment of claims for such accounts and cooperate with the Agent in taking any other steps required,
in its reasonable judgment, under the Federal Assignment of Claims Act or any similar federal, state or local statute or rule
to perfect or continue the perfected status of the Security Interests in such accounts and proceeds thereof.

 

(ll)
Each Debtor shall use reasonable efforts to cause the Agent to have view only access to each deposit account with an average daily
balance of $100,000.00 or greater.

 

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

 

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

 

(a)
The occurrence of an Event of Default (as defined in the Notes) under the Notes; and

 

(b)
The failure by any Debtor to observe or perform any of its covenants or agreements contained in this Agreement, which failure
is not cured, if possible to cure, within 30 days following notice of failure sent by the Agent or any Purchaser to the Company.

 

7.
Duty To Hold In Trust.

 

(a)
Upon the occurrence and during the continuation of any Event of Default, and upon receipt of written notice from the Agent, each
Debtor shall, upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interests, whether
payable pursuant to the Notes or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation
to pay any such sum, hold the same in trust for the Agent for the benefit of the Secured Parties and shall promptly endorse and
transfer any such sums or instruments, or both, to the Agent for the benefit of the Secured Parties pro-rata in proportion to
their respective then-currently outstanding principal amount of Notes for application to the satisfaction of the Obligations (and
if any Note is not outstanding, pro-rata in proportion to the initial purchases of the remaining Notes).

 

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

 

8.
Rights and Remedies Upon Default.

 

(a)
Upon the occurrence and during the continuation of any Event of Default, the Agent, for the benefit of the Secured Parties, shall
have the right to exercise all of the remedies conferred hereunder and under the Notes, and the Agent shall have all the rights
and remedies of a secured party under the UCC. Without limitation, the Agent, for the benefit of the Secured Parties, shall have
the following rights and powers:

 

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

 

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

 

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

 

(iv)
The Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights against such
account debtors and obligors.

 

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(v)
The Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other
person or entity holding any investment property to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.

 

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

 

(b)
The Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be
considered to adversely affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral
without giving any warranties and may specifically disclaim such warranties. In addition, each Debtor waives any and all rights
that it may have to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder,
including, without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise
its rights and remedies with respect thereto.

 

(c)
For the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided
by agreement or applicable law, each Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured Parties,
a nonexclusive license (exercisable without payment of royalty or other compensation to such Debtor, such license to be irrevocable
during the term hereof) to use, license or sublicense, in all cases solely following the occurrence and during the continuation
of an Event of Default, any Intellectual Property included among the Collateral, and including in such license access to all media
in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation
or printout thereof.

 

9.
Applications of Proceeds. Except as otherwise expressly provided herein, the proceeds of any such sale, lease or other
disposition of the Collateral hereunder or from payments made on account of any insurance policy insuring any portion of the Collateral
shall be applied first, to the expenses of retaking, holding, storing, processing and preparing for sale, selling, and the like
(including, without limitation, any taxes, fees and other costs incurred in connection therewith) of the Collateral, to the reasonable,
actual and documented attorneys’ fees and out-of-pocket expenses incurred by the Agent in enforcing the Secured Parties’
rights hereunder and in connection with collecting, storing and disposing of the Collateral, and then to satisfaction of the Obligations
pro rata among the Secured Parties (based on then-outstanding principal amounts of Notes at the time of any such determination),
and to the payment of any other amounts required by applicable law, after which the Secured Parties shall pay to the applicable
Debtor any surplus proceeds. If, upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient
to pay all amounts to which the Secured Parties are legally entitled, the Debtors will be liable for the deficiency, together
with interest thereon, at the Applicable Interest Rate, and the reasonable fees of any attorneys employed by the Secured Parties
to collect such deficiency. To the extent permitted by applicable law, each Debtor waives all claims, damages and demands against
the Secured Parties arising out of the repossession, removal, retention or sale of the Collateral, unless due to the gross negligence
or willful misconduct of the Secured Parties as determined by a final judgment (not subject to further appeal) of a court of competent
jurisdiction.

 

    	16

    	 

    

 

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

 

11.
Costs and Expenses. The Debtors shall pay all other claims and charges which in the reasonable opinion of the Agent is
reasonably likely to prejudice, imperil or otherwise affect the Collateral or the Security Interests therein. The Debtors will
also, within 30 days of demand, pay to the Agent the amount of any and all expenses, including the reasonable, actual and documented
fees and out-of-pocket expenses of its legal counsel and of any experts and agents, which the Agent, for the benefit of the Secured
Parties, may incur in connection with the protection, satisfaction, foreclosure, collection or enforcement of the Security Interest
and the administration, continuance, amendment or enforcement of this Agreement and pay to the Agent the amount of any and all
expenses, including the reasonable, actual and documented fees and out-of-pocket expenses of its counsel and of any experts and
agents, which the Agent, for the benefit of the Secured Parties, and the Secured Parties may incur in connection with (i) the
enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon,
any of the Collateral, or (iii) the exercise or enforcement of any of the rights of the Secured Parties under the Notes. Any invoiced
fees due and payable hereunder shall be added to the principal amount of the Notes, unless otherwise paid by the Debtors within
30 days of issuance, and shall bear interest at the Applicable Interest Rate (as defined in the Notes).

 

12.
Responsibility for Collateral. The Debtors assume all liabilities and responsibility in connection with all Collateral,
and the Obligations shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the
Collateral or its unavailability for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any
Secured Party (i) has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral
or to preserve any rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral
for sale, and (b) each Debtor shall remain obligated and liable under each contract or agreement included in the Collateral to
be observed or performed by such Debtor thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability
under any such contract or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Secured
Party of any payment relating to any of the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to
perform any of the obligations of any Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature
or sufficiency of any payment received by the Agent or any Secured Party in respect of the Collateral or as to the sufficiency
of any performance by any party under any such contract or agreement, to present or file any claim, to take any action to enforce
any performance or to collect the payment of any amounts which may have been assigned to the Agent or to which the Agent or any
Secured Party may be entitled at any time or times.

 

    	17

    	 

    

 

13.
Security Interests Absolute. All rights of the Secured Parties and all obligations of the Debtors hereunder, shall be absolute
and unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Notes or any agreement entered
into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment
or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent
to any departure from the Notes or any other agreement entered into in connection with the foregoing; (c) any exchange, release
or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral
for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain,
adjust, settle and cancel in their sole discretion any insurance claims or matters made or arising in connection with the Collateral;
or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor, or a discharge
of all or any part of the Security Interests granted hereby. Notwithstanding the foregoing, the obligations of the Debtors hereunder
may be modified in any renewal, extension, amendment, modification, addition, supplement, assignment or transfer expressly providing
for such modification. Until the Obligations shall have been paid in full, the rights of the Secured Parties shall continue even
if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy
of a Debtor or any other person liable for any Obligations. Each Debtor expressly waives presentment, protest, notice of protest,
demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment
received by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable
preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise
due to any party other than the Secured Parties, then, in any such event, each Debtor’s obligations hereunder shall survive
cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. Each
Debtor waives all right to require the Secured Parties to proceed against any other person or entity or to apply any Collateral
which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other remedy. Each Debtor waives any defense
arising by reason of the application of the statute of limitations to any obligation secured hereby.

 

14.
Term of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the
Notes have been paid in full and all other Obligations (other than inchoate indemnity and expense obligations as to which no claim
has been made) have been paid or discharged; provided, however, that all indemnities of the Debtors contained in this Agreement
(including, without limitation, Annex A hereto) shall survive and remain operative and in full force and effect regardless of
the termination of this Agreement.

 

    	18

    	 

    

 

15.
Power of Attorney; Further Assurances.

 

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

 

(b)
On a continuing basis, each Debtor will take all such action as may reasonably be deemed necessary or advisable, or as reasonably
requested by the Agent, to perfect the Security Interests granted hereunder and otherwise to carry out the intent and purposes
of this Agreement, or for assuring and confirming to the Agent the grant or perfection of a perfected security interest in all
the Collateral under the UCC.

 

16.
Notices. All notices, requests, demands and other communications hereunder shall be subject to the notice provision of
the Purchase Agreement and sent to the address of the applicable Purchaser and Company set forth therein, or, with respect to
the Agent, to the address set forth on Annex A hereto.

 

    	19

    	 

    

 

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

 

18.
Appointment of Agent. The Purchasers hereby appoint JGB Collateral, LLC to act as their agent for purposes of exercising
any and all rights and remedies of the Secured Parties hereunder and under the other Transaction Documents. The Agent shall have
the rights, responsibilities and immunities set forth in Annex A hereto.

 

19.
Termination of Security Interests; Release of Collateral.

 

(a)
Upon termination of this Agreement in accordance with Section 14 hereof (other than contingent indemnification obligations),
the Security Interests shall automatically terminate and all rights to the Collateral shall automatically revert to the Debtors.
Upon any such termination of the Security Interests or release of such Collateral, the Agent will, at the expense of the Debtors,
execute and deliver to the Debtors such documents as the Debtors shall reasonably request, but without recourse or warranty to
the Agent, including but not limited to written authorization to file termination statements to evidence the termination of the
Security Interests in such Collateral.

 

(b)
The Secured Parties hereby agree that the Security Interests held on any Collateral constituting property being sold, transferred
or disposed of in a disposition permitted hereunder or under the Notes shall automatically be released upon such sale, transfer
or disposal permitted hereunder or under the Notes. Upon any such termination of the Security Interests or release of such Collateral,
the Agent will, at the expense of the Debtors, execute and deliver to the Company such documents as the Debtors shall reasonably
request, but without recourse or warranty to the Agent, including but not limited to written authorization to file termination
statements to evidence the termination of the Security Interests in such Collateral.

 

20.
Miscellaneous.

 

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

 

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

 

    	20

    	 

    

 

(c)
This Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters,
which the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No provision of this
Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment,
by the Debtors and the Agent (or, in the event that the Agent no longer holds any Notes, in a written instrument signed by the
Debtors and the Majority in Interest), or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought.

 

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

 

(e)
No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(f)
This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company
and the Subsidiary Guarantors may not assign this Agreement or any rights or obligations hereunder without the prior written consent
of each Secured Party (other than by merger) and any assignment in contravention herewith shall be null and void. Any Secured
Party may assign any or all of its rights under this Agreement to any Person to whom such Secured Party assigns or transfers any
Obligations, provided such transferee agrees in writing to be bound, with respect to the transferred Obligations, by the provisions
of this Agreement that apply to the “Secured Parties”.

 

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

 

    	21

    	 

    

 

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

 

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

 

(j)
All Debtors shall jointly and severally be liable for the obligations of each Debtor to the Secured Parties hereunder.

 

(k)
Each Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured Parties and their respective partners, members,
shareholders, officers, directors, employees and agents (and any other persons with other titles that have similar functions)
(collectively, “Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties,
suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the
foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise
from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses
which result from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision
of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification
provision in the Notes, the Purchase Agreement or any other agreement, instrument or other document executed or delivered in connection
herewith or therewith.

 

    	22

    	 

    

 

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

 

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

 

[SIGNATURE
PAGES FOLLOW]

 

    	23

    	 

    

 

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

 

	DEBTORS:	 
	 	 	 
	NEWAGE,
    INC.	 
	 	 	 
	By:	 	 
	Name:
    	 	 
	Title:
    	 	 

 

NABC,
INC. 

NABC
PROPERTIES, LLC 

MORINDA
HOLDINGS, INC. 

MORINDA,
INC. 

MORINDA
USA, INC. 

ARIEL
MERGER SUB 2, LLC

ARIIX,
INC.

ARIIX
HOLDINGS, LLC

MORINDA
WORLDWIDE, INC. 

MORINDA
INTERNATIONAL HOLDING CO., INC. 

MORINDA
INTERNATIONAL ASIA, INC. 

MORINDA
ACCESS, INC. 

TROPICAL
RESOURCES, INC. 

 

	By:	 	 
	Name:	 	 
	Title:
    	 	 

 

    	 

     

    

 

	AGENT:	 
	 	 	 
	JGB
    COLLATERAL, LLC	 
	 	 	 
	By:	                  	 
	Name:
    	 	 
	Title:
    	 	 

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

    	 

     

    

 

[SIGNATURE
PAGE OF PURCHASER TO NEWAGE, INC.]

 

Name
of Investing Entity: __________________________

 

Signature
of Authorized Signatory of Investing entity: _________________________

 

Name
of Authorized Signatory: _________________________

 

Title
of Authorized Signatory: __________________________

 

    	 

     

    

 

ANNEX
A

to

SECURITY

AGREEMENT

 

THE
AGENT

 

1.
Appointment. The Purchasers (all capitalized terms used herein and not otherwise defined shall have the respective meanings
provided in the Security Agreement to which this Annex A is attached (as may be amended, restated or otherwise modified, the “Agreement”)),
by their acceptance of the benefits of the Agreement, hereby designate JGB Collateral, LLC (“Agent”) as the
Agent to act as specified herein and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize the Agent to
take such action on its behalf under the provisions of the Agreement and any other Transaction Document (as such term is defined
in the Purchase Agreement) and to exercise such powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto.
The Agent may perform any of its duties hereunder by or through its agents or employees.

 

2.
Nature of Duties. The Agent shall have no duties or responsibilities except those expressly set forth in the Agreement
and the other Transaction Documents. Neither the Agent nor any of its partners, members, shareholders, officers, directors, employees
or agents shall be liable for any action taken or omitted by it as such under the Agreement or hereunder or in connection herewith
or therewith, be responsible for the consequence of any oversight or error of judgment or answerable for any loss, unless caused
solely by its or their gross negligence or willful misconduct as determined by a final judgment (not subject to further appeal)
of a court of competent jurisdiction. The duties of the Agent shall be mechanical and administrative in nature; the Agent shall
not have by reason of the Agreement or any other Transaction Document a fiduciary relationship in respect of any Debtor or any
Secured Party and nothing in the Agreement or any other Transaction Document, expressed or implied, is intended to or shall be
so construed as to impose upon the Agent any obligations in respect of the Agreement or any other Transaction Document except
as expressly set forth herein and therein.

 

3.
Lack of Reliance on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs
of the Company and its subsidiaries in connection with such Secured Party’s investment in the Debtors, the creation and
continuance of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any
action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of
the value of the Collateral from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing
basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether coming into its
possession before any Obligations are incurred or at any time or times thereafter. The Agent shall not be responsible to the Debtors
or any Secured Party for any recitals, statements, information, representations or warranties herein or in any document, certificate
or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectability, priority or sufficiency of the Agreement or any other Transaction Document, or for the financial condition
of the Debtors or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or
observance of any of the terms, provisions or conditions of the Agreement or any other Transaction Document, or the financial
condition of the Debtors, or the value of any of the Collateral, or the existence or possible existence of any default or Event
of Default under the Agreement, the Notes or any of the other Transaction Documents.

 

    	 

     

    

 

4.
Certain Rights of the Agent. The Agent shall have the right to take any action with respect to the Collateral, on behalf
of all of the Secured Parties. To the extent practical, the Agent shall request instructions from the Secured Parties with respect
to any material act or action (including failure to act) in connection with the Agreement or any other Transaction Document, and
shall be entitled to act or refrain from acting in accordance with the instructions of a Majority in Interest; if such instructions
are not provided despite the Agent’s request therefor, the Agent shall be entitled to refrain from such act or taking such
action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect
of actions to be taken by the Agent and the Agent shall not incur liability to any person or entity by reason of so acting or
refraining. Without limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent as
a result of the Agent acting or refraining from acting hereunder in accordance with the terms of the Agreement or any other Transaction
Document, and the Debtors shall have no right to question or challenge the authority of, or the instructions given to, the Agent
pursuant to the foregoing and (b) the Agent shall not be required to take any action which the Agent believes (i) could reasonably
be expected to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction Documents or applicable
law.

 

5.
Reliance. The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message
signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the
other Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining
to this Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected by it.
Anything to the contrary notwithstanding, the Agent shall have no obligation whatsoever to any Secured Party to assure that
the Collateral exists or is owned by the Debtors or is cared for, protected or insured or that the liens granted pursuant
to the Agreement have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any particular
priority.

 

    	 

     

    

 

6.
Indemnification. To the extent that the Agent is not reimbursed and indemnified by the Debtors, the Secured Parties
will jointly and severally reimburse and indemnify the Agent, in proportion to their initially purchased respective principal
amounts of Notes, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the
Agent in performing its duties hereunder or under the Agreement or any other Transaction Document, or in any way relating to or
arising out of the Agreement or any other Transaction Document except for those determined by a final judgment (not subject to
further appeal) of a court of competent jurisdiction to have resulted solely from the Agent’s own gross negligence or willful
misconduct. Prior to taking any action hereunder as Agent, the Agent may require each Secured Party to deposit with it sufficient
sums as it determines in good faith is necessary to protect the Agent for costs and expenses associated with taking such action.

 

7.
Resignation by the Agent.

 

(a)
The Agent may resign from the performance of all its functions and duties under the Agreement and the other Transaction Documents
at any time by giving 30 days’ prior written notice (as provided in the Agreement) to the Debtors and the Secured Parties.
Such resignation shall take effect upon the appointment of a successor Agent pursuant to clauses (b) and (c) below.

 

(b)
Upon any such notice of resignation, the Secured Parties, acting by a Majority in Interest, shall appoint a successor Agent hereunder.

 

(c)
If a successor Agent shall not have been so appointed within said 30-day period, the Agent shall then appoint a successor Agent
who shall serve as Agent until such time, if any, as the Secured Parties appoint a successor Agent as provided above. If a successor
Agent has not been appointed within such 30-day period, the Agent may petition any court of competent jurisdiction or may interplead
the Debtors and the Secured Parties in a proceeding for the appointment of a successor Agent, and all fees, including, but not
limited to, extraordinary fees associated with the filing of interpleader and expenses associated therewith, shall be payable
by the Secured Parties on demand.

 

8.
Rights with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that
it shall not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant
to any other agreement or otherwise (other than as expressly permitted by the terms of the Transaction Documents), or take or
institute any action against the Agent or any of the other Secured Parties in respect of the Collateral or its rights hereunder
(other than as expressly permitted by the terms of the Transaction Documents) and (ii) that such Secured Party has no other rights
with respect to the Collateral other than as set forth herein and the other Transaction Documents. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring Agent and the retiring Agent shall be discharged from its duties and
obligations under the Agreement. After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of
the Agreement including this Annex A shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Agent.

 

    	 

     

    

 

9.
Unless otherwise expressly provided herein, all notices and other communications to the Agent provided for hereunder or under
the other Transaction Documents shall be in writing (including by facsimile transmission) and mailed, faxed or delivered, to the
address, facsimile number or electronic mail address specified for notices below or to such other address as shall be designated
by the Agent in a notice to the Debtors and Secured Parties:

 

JGB
Collateral, LLC

c/o
JGB Management Inc.

21
Charles Street

Westport,
CT 06880

Attention:
David Ariyeh

Telephone
(212) 355-5771

Email:
dariyeh@jgbcap.com

Facsimile:
(212) 253-4093

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