Document:

Exhibit 10.2 

 

EXCHANGE
AND WAIVER AGREEMENT

 

Dated
as of April 25, 2014

 

by
and among

 

URIGEN
PHARMACEUTICALS, INC.,

 

PLATINUM-MONTAUR
LIFE SCIENCES, LLC

 

AND

 

THE
OTHER LENDERS NAMED HEREIN

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I FORBEARANCE,
    WAIVER AND EXCHANGE	2
	Section 1.1	Forbearance, Generally	2
	Section 1.2	Forbearance Provisions	2
	Section 1.3	Termination of Forbearance	3
	Section 1.4	Waiver of Defaults	4
	Section 1.5	The Securities Exchanges	4
	Section 1.6	Consideration for Waivers	5
	Section 1.7	Bridge Financing	5
	Section 1.8	Securities Act Exemption	5
	Section 1.9	Waiver of Adjustments to Warrants	6
	Section 1.10	Stockholder Approvals	6
	Section 1.11	Urigen N.A., Inc. Guaranty	6
	 	 	 
	ARTICLE II REPRESENTATIONS
    AND WARRANTIES	7
	Section 2.1	Representations and Warranties of
    the Company	7
	Section 2.2	Representations and Warranties of
    the Lenders	9
	 	 	 
	ARTICLE III COVENANTS	12
	Section 3.1	Securities Compliance	12
	Section 3.2	Registration and Listing	12
	Section 3.3	Inspection Rights	13
	Section 3.4	Compliance with Laws	13
	Section 3.5	Keeping of Records and Books of Account	13
	Section 3.6	Reporting Requirements	13
	Section 3.7	Other Agreements	14
	Section 3.8	Reporting Status	14
	Section 3.9	Pledge of Securities	14
	Section 3.10	Amendments	14
	Section 3.11	Distributions	15
	Section 3.12	Transferability	15
	Section 3.13	Reserved	15
	Section 3.14	Subsequent Financings	16
	Section 3.15	Variable Rate Securities	17
	Section 3.16	Payment of Taxes and Claims	17
	Section 3.17	Insurance	18
	Section 3.18	Place of Business; Books and Records	18
	Section 3.19	Maintenance; Certain Covenants	18
	Section 3.20	Negative Pledge	18
	Section 3.21	Indebtedness	19
	Section 3.22	Fundamental Changes; Asset Transfers	19
	Section 3.23	Transactions with Affiliates	20
	Section 3.24	No Investments	20
	Section 3.25	Exchange Right	20
	Section 3.26	Investment Company Act	21
	Section 3.27	Indebtedness to Affiliates	21

 

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TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 3.28	DTC Eligibility	21
	Section 3.29	Conversion Shares	21
	 	 	 
	ARTICLE IV CONDITIONS	21
	Section 4.1	Conditions Precedent to Closing	21
	 	 	 
	ARTICLE V EVENTS OF DEFAULT	23
	Section 5.1	Events of Default	23
	Section 5.2	Default Remedies	25
	 	 	 
	ARTICLE VI CERTIFICATE
    LEGEND	26
	Section 6.1	Legend	26
	 	 	 
	ARTICLE VII INDEMNIFICATION	26
	Section 7.1	General Indemnity	26
	Section 7.2	Indemnification Procedure	27
	 	 	 
	ARTICLE VIII MISCELLANEOUS	28
	Section 8.1	Fees and Expenses	28
	Section 8.2	Specific Performance; Consent to
Jurisdiction; Venue	28
	Section 8.3	Entire Agreement; Amendment	28
	Section 8.4	Notices	29
	Section 8.5	Waivers	29
	Section 8.6	Headings	30
	Section 8.7	Successors and Assigns	30
	Section 8.8	No Third Party Beneficiaries	30
	Section 8.9	Governing Law	30
	Section 8.10	Survival	30
	Section 8.11	Counterparts	30
	Section 8.12	Severability	31
	Section 8.13	Further Assurances	31
	Section 8.14	Further Assurances	31

 

    	ii

    	 

    

 

EXCHANGE
AND WAIVER AGREEMENT

 

This
EXCHANGE AND WAIVER AGREEMENT dated as of April 25, 2014 (this “Agreement”) is by and between URIGEN
PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), PLATINUM-MONTAUR LIFE SCIENCES, LLC
(“Platinum”), as the lead lender and agent, and the several Lenders named on Annex A hereto (together
with Platinum, the “Lenders”).

 

WHEREAS,
the Lenders have, prior to the date hereof, advanced funds to the Company, which advances are evidenced by the several promissory
notes described on Annex A hereto (the “Surrendered Notes”), held by each Lender as set forth opposite
the name of such Lender;

 

WHEREAS,
in connection with the issuance of the Surrendered Notes, the Company, the Lenders and certain other parties have entered into
and/or delivered the “Transaction Documents” as defined in the Surrendered Notes (the “Surrendered Note Related
Documents”);

 

WHEREAS,
Platinum has acquired from the issuer Series B Convertible Preferred Stock, par value $0.001 per share, and Series C Convertible
Preferred Stock, par value $0.001 per share (collectively, the “Existing Preferred Stock”) as set forth on
Annex B hereto;

 

WHEREAS,
in connection with the issuance of the Preferred Stock, the Company, Platinum and certain other parties have entered into and/or
delivered the “Transaction Documents” as defined in (i) the Series B Convertible Preferred Stock Purchase Agreement,
dated as of July 31, 2007, between the Company and Platinum and (ii) the Third Amendment to Transaction Documents, dated as of
April 19, 2010, between the Company and Platinum (the “Existing Preferred Stock Related Documents”);

 

WHEREAS,
in connection with, among other things, the issuance of the Surrendered Notes and the Existing Preferred Stock, the Company issued
to the Lenders the Common Stock Purchase Warrants set forth on Annex C hereto (the “Warrants”);

 

WHEREAS,
the Company has failed to comply with certain obligations under the Surrendered Notes, the terms of the Existing Preferred Stock,
the Surrendered Note Related Documents and the Existing Preferred Stock Related Documents (collectively, the “Existing
Related Documents”);

 

WHEREAS,
the Company has requested that the Lenders forbear temporarily from exercising certain rights and remedies and, subject to the
conditions hereto, waive certain events of default arising under the Surrendered Notes and the other Existing Related Documents
on the terms set forth herein; and

 

WHEREAS,
Platinum has agreed, subject to the terms and conditions set forth herein, to extend the Bridge Loan (as defined below).

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree
as follows:

 

    	-1-

    	 

    

 

ARTICLE
I 

FORBEARANCE,
WAIVER AND EXCHANGE 

 

Section
1.1           Forbearance, Generally

 

During
the Forbearance Period (as defined below), the Lenders agree that they will not take any further action against the Company or
any Guarantor (together, the “Obligors”) or exercise or move to enforce any other rights or remedies provided
for in the Existing Related Documents or otherwise available to them, at law or in equity, by virtue of the occurrence and/or
continuation of any default or Event of Default thereunder described on Annex D hereto (the “Existing Defaults”),
or take any action against any property in which an Obligor has any interest (the “Forbearance”). Notwithstanding
the foregoing, the Forbearance shall not limit the exercise of any rights of any Lender otherwise exercisable if no default or
Event of Default shall have occurred, such as conversion rights, consent rights, inspection rights and the like. Each Lender acknowledges
and agrees that Platinum, pursuant to the Amended and Restated Intercreditor Agreement, dated July 3, 2013, among the Company
and the Lenders (the “Intercreditor Agreement”), shall be permitted, in its sole and absolute discretion, to
act on behalf of the Lenders and modify, in any manner, any of the terms of the Forbearance set forth herein, including extending
the term of the Forbearance.

 

Section
1.2          Forbearance Provisions

 

In
connection with the Forbearance, the Company hereby represents, warrants and covenants with the Lenders as follows:

 

(a)          The
Company acknowledges the Existing Defaults. No default or Event of Default other than the Existing Defaults exists and is continuing
under the Existing Related Documents. The Company has freely and voluntarily entered into this Agreement after an adequate opportunity
to review and discuss the terms and conditions and all factual and legal matters relevant hereto with counsel freely and independently
chosen by it and this Agreement is being executed without fraud, duress, undue influence or coercion of any kind or nature whatsoever
having been exerted by or imposed upon any party.

 

(b)          The
Company does not contest the amounts outstanding under the Surrendered Notes as set forth on Annex A hereto as of the date
set forth therein (the “Outstanding Amount”) or the number of shares of Existing Preferred Stock held by Platinum
as of the date hereof as set forth on Annex B hereto.

 

(c)          The
Company has no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, or causes of
action of any kind or nature whatsoever against the Lenders, their respective officers, directors, employees, attorneys, legal
representatives or affiliates (collectively, the “Lender Group”), directly or indirectly, arising out of, based
upon, or in any manner connected with, any transaction, event, circumstance, action, failure to act, or occurrence of any sort
or type, whether known or unknown, which occurred, existed, was taken, permitted, or began prior to the execution of this Agreement
and accrued, existed, was taken, permitted or begun in accordance with, pursuant to, or by virtue of the Surrendered Notes, the
Existing Preferred Stock or any of the terms or conditions of the Existing Related Documents, or which directly or indirectly
relate to or arise out of or in any manner are connected with the Surrendered Notes, the Existing Preferred Stock or any of the
Existing Related Documents; TO THE EXTENT ANY SUCH DEFENSES, AFFIRMATIVE OR OTHERWISE, RIGHTS OF SETOFF, RIGHTS OF RECOUPMENT,
CLAIMS, COUNTERCLAIMS, OR CAUSES OF ACTION EXIST, SUCH DEFENSES, RIGHTS, CLAIMS, COUNTERCLAIMS, AND CAUSES OF ACTION ARE HEREBY
FOREVER WAIVED, DISCHARGED AND RELEASED.

 

    	-2-

    	 

    

 

(d)          During
the Forbearance Period, the Outstanding Amount shall bear interest at the applicable non-default interest rate set forth under
the Surrendered Notes; it being understood that any default rate shall apply upon the occurrence of any Event of Default (other
than Existing Defaults) thereunder or upon termination of the Forbearance Period.

 

(e)          It
is understood and agreed that the Forbearance does not waive or evidence consent to any default or Event of Default (including
the Existing Defaults) under the Surrendered Notes, the Existing Preferred Stock or the Existing Related Documents. The parties
hereto acknowledge and agree that each Lender, subject to the terms of the Intercreditor Agreement, (i) shall retain all rights
and remedies it may now have with respect to the Notes and the Obligors’ obligations under the Existing Related Documents
(“Default Rights”), and (ii) shall have the right to exercise and enforce such Default Rights upon termination
of the Forbearance Period, unless, prior to the termination of the Forbearance Period, (i) the waivers set forth in Section 1.4
hereof shall have become effective and (ii) the Exchange Notes shall have been issued pursuant to the terms of this Agreement.
The parties further agree that the exercise of any Default Rights by the Lenders upon termination of the Forbearance Period shall
not be affected by reason of the Forbearance, and the Obligors shall not assert as a defense thereto the passage of time, estoppel,
laches or any statute of limitations defense.

 

Section
1.3          Termination of Forbearance

 

The
Forbearance Period shall terminate upon the earlier to occur of: (1) 5:00 pm (New York City Time) on July 1, 2014; (2) any Obligor
shall fail to observe, perform, or comply with any of the material terms, conditions or provisions of this Agreement as and when
required and/or any other Event of Default (other than the Existing Defaults) shall occur under the Existing Related Documents
or any other agreement between any Obligor and the Lenders (or its affiliates) or any other indebtedness issued by the Company
to a Lender or its affiliates; (3) any representation or warranty made herein, in any document executed and delivered in connection
herewith, or in any report, certificate, financial statement or other instrument or document now or hereafter furnished by or
on behalf of any Obligor in connection with this Agreement, shall prove to have been false, incomplete or misleading in any material
respect on the date as of which it was made; (4) any suit, proceeding or other action is commenced by any other creditor against
the Company concerning claims in excess of $100,000; (5) any default or event of default shall occur under any other Indebtedness
(as defined below) of the Company; (6) the stockholders of the Company shall not have approved the Authorized Share Amendment
(as defined below) at a meeting of stockholders called for the purpose of the approval of the same; or (7) a court of competent
jurisdiction shall enter an order for relief or take any similar action in respect of any Obligor in an involuntary case under
any applicable bankruptcy, insolvency, reorganization, moratorium or similar law now or hereafter in effect or a petition for
relief under any applicable bankruptcy, insolvency, reorganization, moratorium or other similar law shall be filed by or against
an Obligor. Upon termination of the Forbearance Period, should the Surrendered Notes or any of the Company’s obligations
under the Existing Related Documents not be satisfied in full, the Lenders shall be entitled to pursue immediately their various
rights and remedies, including their Default Rights, against the Obligors, without regard to notice and cure periods, all of which
are hereby waived by the Obligors. Without limiting the generality of the foregoing, upon termination of the Forbearance Period,
the Lenders shall be permitted to immediately exercise their rights to demand and collect on the Outstanding Amount, subject to
the terms of the Intercreditor Agreement.

 

    	-3-

    	 

    

 

Section
1.4          Waiver of Defaults

 

Each
Lender, on and as of the satisfaction of the conditions set forth herein (including pursuant to Article IV hereof) (the “Effective
Date”), as determined by Platinum in its reasonable discretion, hereby (i) waives the defaults or Events of Default
existing and arising under the Existing Related Documents as of the Effective Date, including the Existing Defaults and (ii) waives
any unpaid default interest that may have accrued and be payable as a result of the Existing Defaults. Further, upon and as of
the Effective Date, the Obligors’ obligations under the several securities purchase agreements set forth on Schedule
1.4 hereof shall be deemed satisfied in full, it being the intention of the parties that the covenants and other surviving
provisions of such securities purchase agreements shall be replaced and superseded by the provisions of this Agreement as of the
Effective Date. 

 

Section
1.5          The Securities Exchanges

 

(a)          In
consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement,
each Lender, severally and not jointly, agrees to deliver any Surrendered Notes held by it to the Company in exchange for the
issuance of the Secured Convertible Promissory Note in the aggregate principal amount of such Surrendered Notes plus any accrued
and unpaid interest outstanding on such Surrendered Notes (at the regular rate of interest) as of the Effective Date (the “Exchange
Notes”), in substantially the form attached hereto as Exhibit A, and the Company agrees to issue and deliver
the Exchange Notes to the applicable Lenders (the “Note Exchange”). The Exchange Notes shall be issued in exchange
for (and not in discharge of the indebtedness evidenced by) the Surrendered Notes.

 

(b)          In
consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement,
Platinum agrees to deliver any Existing Preferred Stock held by it to the Company in exchange for the issuance of 6.183 shares
(the “Preferred Exchange Shares”) of the Company’s Series D Convertible Preferred Stock, par value $.001
per share (the “Series D Preferred Stock”), as of the Effective Date (the “Preferred Stock Exchange”).
The designation, rights, preferences and other terms and provisions of the Series D Preferred Stock shall be as set forth in the
Certificate of Designation, Preferences and Rights of the Series D Convertible Preferred Stock attached hereto as Exhibit B
(the “Certificate of Designation”).

 

    	-4-

    	 

    

 

Section
1.6          Consideration for Waivers

 

(a)          In
consideration of the waivers of defaults and Events of Defaults arising under the Surrendered Notes, the provisions of the Surrendered
Note Related Documents and in consideration of the Note Exchange, the Company shall, on the Effective Date, (i) issue to each
Lender other than Platinum the number of shares of Common Stock of the Company, par value $0.001 per share (the “Common
Stock”), set forth opposite the name of such Lender on Schedule 1.6(a) hereof and (ii) issue to Platinum that
number of shares of Series D Preferred Stock as are set forth opposite Platinum’s name on Schedule 1.6(a) (all such
shares of Common Stock and Series D Preferred Stock are herein collectively referred to as the “Note Consideration Shares”).

 

(b)          In
consideration of the waivers of defaults and Events of Defaults arising under the Existing Preferred Stock and the provisions
of the Existing Preferred Stock Related Documents, and in exchange for the commitment of Platinum to provide the Bridge Loan subject
to the terms hereof and effect the Preferred Stock Exchange, the Company shall, on the Effective Date, issue to Platinum 64.625
shares of Series D Preferred Stock (the “Preferred Consideration Shares” and, together with the Note Consideration
Shares and any Preferred Exchange Shares issued in the Preferred Stock Exchange, the “Consideration Shares”).

 

(c)          In
consideration of the waiver provided in Section 1.9 with respect to the warrants issued pursuant to that certain Consulting Agreement
dated as of July 26, 2012 between the Company and C. Lowell Parsons, the Company shall, on the Effective Date, issue to Mr. Parsons
a warrant to purchase up to 654 shares of Common Stock, in a form that is mutually satisfactory to the Company and Platinum, exercisable
at an exercise price that is equal to the Conversion Price set forth in the Exchange Notes (the “Consideration Warrant”).

 

(d)          For
the avoidance of doubt, (i) all share numbers set forth in this Section 1.6 give effect to the Authorized Shares Amendment and
the reverse split contemplated thereby and (ii) references to “Consideration Shares” herein shall include any
shares of Series D Preferred Stock issued to Platinum in lieu of Common Stock and in exchange for the Existing Preferred Stock.

 

Section
1.7          Bridge Financing

 

Upon
and as of the Effective Date, the Company shall issue and sell to Platinum, and Platinum shall purchase from the Company, for
a purchase price equal to the principal amount thereof, the 16% senior secured note in the aggregate principal amount of $3,000,000
(the “Bridge Note”), in substantially the form attached hereto as Exhibit C, which Bridge Note shall
mature on the earlier of (i) the consummation of the sale by the Company of equity securities in a registered public offering,
with gross proceeds to the Company (before deduction of underwriter’s commissions, offering expenses and the like) of not
less than $10,000,000, and (ii) the first anniversary of the Effective Date (the loan evidenced by the Bridge Note is herein referred
to as the “Bridge Loan”).

 

Section
1.8          Securities Act Exemption

 

The
Company and the Lenders are executing and delivering this Agreement in accordance with and in reliance upon the exemption from
securities registration afforded by Rule 506 of Regulation D (“Regulation D”) as promulgated by the United
States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the
“Securities Act”) and/or Section 4(a)(2) of the Securities Act.

 

    	-5-

    	 

    

 

Section
1.9          Waiver of Adjustments to Warrants

 

Upon
and as of the Effective Date, the Lenders shall waive any exercise price and/or warrant share number adjustment that would otherwise
result under the Warrants from (i) the issuance of the Exchange Notes, (ii) the issuance of the Consideration Shares, (iii) the
issuance of any shares of Common Stock or other security upon conversion of the Exchange Notes or any Consideration Shares, and
(iv) the issuance of any other security convertible into or exercisable for Common Stock contemplated by this Agreement or the
conversion or exercise thereof, including, without limitation, the Consideration Warrant. Notwithstanding the foregoing, it is
understood and agreed that (i) appropriate adjustment shall be made for any reverse split effected as contemplated by the Authorized
Share Amendment pursuant to Section 1.10 of this Agreement and (ii) the applicable Warrant exercise price shall be reduced (but
the number of shares of Common Stock issuable upon the exercise of the Warrants shall not be increased) upon the Effective Date
to the same Conversion Price set forth in the Exchange Notes. Upon and as of the Effective Date, (i) the conditional waiver delivered
by Platinum, on or about October 3, 2011 shall be deemed permanent and irrevocable and (ii) the waiver and amendment delivered
by Platinum on March 14, 2012 shall be of no further force and effect.

 

Section
1.10         Stockholder Approvals

 

The
Company shall use its commercially reasonable best efforts to duly call and hold a special meeting of the stockholders of the
Company to solicit the approval of such stockholders (“Stockholder Approval”) of, among other things, (i) an
amendment to the Company’s Certificate of Incorporation in the form mutually agreed between the Company and Platinum (the
“Authorized Shares Amendment”) (x) to increase the number of shares of authorized Common Stock, after giving
effect to the reverse split discussed in item (i)(y) of this Section 1.10, to not less than 20,000,000 shares and (y) to implement
a reverse split of the Common Stock, (ii) the approval of the transactions contemplated herein and (iii) the approval of an incentive
equity plan (the “Equity Plan”) providing for the issuance of up to 30,000 shares of the Company’s Common
Stock (after giving effect to the reverse split discussed in item (i)(y) of this Section 1.10) to the employees, directors, consultants
and other service providers of the Company and its Subsidiaries. For the purposes of this Agreement, “Subsidiary”
shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary
voting power (absolutely or contingently) for the election of directors or other persons performing similar functions are at the
time owned directly or indirectly by the Company and/or any of its other Subsidiaries.

 

Section
1.11         Urigen N.A., Inc. Guaranty

 

Effective
upon the Closing Date, the Company’s obligations under the Exchange Notes and the Bridge Note shall be guaranteed by a guaranty
from Urigen N.A., Inc., substantially in the form attached hereto as Exhibit D (as amended, restated, supplemented or otherwise
modified, collectively the “Guaranty”).

 

    	-6-

    	 

    

 

ARTICLE
II 

REPRESENTATIONS
AND WARRANTIES 

 

Section
2.1          Representations and Warranties of the Company

 

Except
as set forth in the disclosure schedules attached hereto, which disclosure schedules shall be deemed a part hereof and shall qualify
any representation or warranty otherwise made herein, the Company hereby represents and warrants to the Lenders as follows:

 

(a)          Authorization;
Enforcement. The Company and each Subsidiary of the Company has the requisite corporate power and authority to enter into
and perform its obligations under this Agreement, the Exchange Notes, the Bridge Note, the Security Agreement (as defined below),
the Registration Rights Agreement (as defined below), the Guaranty, the Amended Intercreditor Agreement (as defined below), the
Certificate of Designation and the Consideration Warrant (all of the foregoing, collectively, the “Transaction Documents”),
and to issue and sell the Exchange Notes, the Consideration Shares and the Consideration Warrant in accordance with the terms
hereof. The execution, delivery and performance of the Transaction Documents by the Company and the Company’s Subsidiaries,
and the consummation by the Company and the Company’s Subsidiaries of the transactions contemplated hereby and thereby,
have been duly and validly authorized by all necessary corporate action, and, except for the Stockholder Approval and as set forth
on Schedule 2.1(a), no further consent or authorization of the Company, any Subsidiary of the Company, or, to the knowledge
of the Company, any other person or entity is required. When executed and delivered by the Company and its Subsidiaries, each
of the Transaction Documents shall constitute a valid and binding obligation of the Company and the Subsidiaries party thereto
enforceable against the Company and the Subsidiaries party thereto in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws
relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles
of general application.

 

(b)          Capitalization.
The authorized capital stock and the issued and outstanding shares of capital stock of the Company as of March 31, 2014 is set
forth on Schedule 2.1(b) hereto. All of the outstanding shares of the Common Stock and any other outstanding security of
the Company have been duly and validly authorized. Except as set forth in this Agreement or as set forth on Schedule 2.1(b)
hereto, no shares of Common Stock or any other security of the Company are entitled to preemptive rights or registration rights
and there are no outstanding options, warrants, scrip, rights to subscribe to, call or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company. Furthermore, except as set
forth in this Agreement and as set forth on Schedule 2.1(b) hereto, there are no contracts, commitments, understandings,
or arrangements by which the Company is or may become bound to issue additional shares of the capital stock of the Company or
options, securities or rights convertible into shares of capital stock of the Company. Except for customary transfer restrictions
contained in agreements entered into by the Company in order to sell restricted securities or as provided on Schedule 2.1(b)
 hereto, the Company is not a party to or bound by any agreement or understanding granting registration or anti-dilution rights
to any person with respect to any of its equity or debt securities. Except as set forth on Schedule 2.1(b), the Company
is not a party to, and it has no knowledge of, any agreement or understanding restricting the voting or transfer of any shares
of the capital stock of the Company.

 

    	-7-

    	 

    

 

(c)          Issuance
of Securities. The Exchange Notes, the Bridge Note, the Consideration Shares and the Consideration Warrant have been duly
authorized by all necessary corporate action (other than Stockholder Approval) and, when paid for or issued in accordance with
the terms hereof, the Exchange Notes, the Bridge Note, the Consideration Shares and the Consideration Warrant shall be validly
issued and outstanding, free and clear of all liens, encumbrances and rights of refusal of any kind. When the Conversion and Exercise
Shares (as defined below) are issued and paid for in accordance with the terms of this Agreement and as set forth in the Exchange
Notes, the Preferred Consideration Shares, the Preferred Exchange Shares, the Warrants and the Consideration Warrant, such shares
will be duly authorized by all necessary corporate action and validly issued and outstanding, fully paid and nonassessable, free
and clear of all liens, encumbrances and rights of refusal of any kind and the holders shall be entitled to all rights accorded
to a holder of Common Stock. Upon issuance of the Exchange Notes, the Consideration Shares and the Consideration Warrant, each
Lender shall beneficially own (without giving effect to any beneficial ownership “blocker” set forth therein) securities
(including Warrants) convertible into or exercisable for the percentage of the fully-diluted equity capitalization of the Company
at least equal to the percentage set forth opposite such Lender’s name on Schedule 2.1(c) on an as-converted, fully
diluted basis (before giving effect to the adoption of the Equity Plan and the reservation of shares of Common Stock contemplated
thereby).

 

(d)          No
Conflicts. Giving effect to the Authorized Share Amendment and the filing thereof, and assuming receipt of Stockholder Approval,
the execution, delivery and performance of the Transaction Documents by the Company and the Subsidiaries, the performance by the
Company of its obligations under the Securities and the consummation by the Company and the Subsidiaries of the transactions contemplated
hereby and thereby, and the issuance of the Securities as contemplated hereby, do not and will not (i) violate or conflict with
any provision of the Company’s Certificate of Incorporation (the “Certificate”) or Bylaws (the “Bylaws”),
each as amended to date, or any Subsidiary’s comparable charter documents, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement,
instrument or obligation to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries’
respective properties or assets are bound, (iii) result in a violation of any federal, state, local or foreign statute, rule,
regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company
or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries are bound or affected,
or (iv) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature on any property or asset of
the Company or its Subsidiaries under any agreement or any commitment to which the Company or any of its Subsidiaries is a party
or by which the Company or any of its Subsidiaries is bound or by which any of their respective properties or assets are bound,
except, in all cases, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect (other than violations pursuant to clause (i) or, solely
with respect to federal and state securities laws, clause (iii)). For the purposes of this Agreement, “Material Adverse
Effect” means any material adverse effect on the business, operations, properties, prospects, or financial condition of
the Company and its Subsidiaries and/or any condition, circumstance, or situation that would prohibit or otherwise materially
interfere with the ability of the Company to perform any of its obligations under this Agreement or any of the Transaction Documents
in any material respect. Neither the Company nor any of its Subsidiaries is required under federal, state, foreign or local law,
rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations under the Transaction Documents or issue and sell
the Securities in accordance with the terms hereof (other than any filings, consents and approvals which may be required to be
made by the Company under applicable state and federal securities laws, rules or regulations).

 

    	-8-

    	 

    

 

(e)          No
Brokers. The Company has not employed any broker or finder or incurred any liability for any brokerage or investment banking
fees, commissions, finders’ structuring fees, financial advisory fees or other similar fees in connection with the Transaction
Documents.

 

(f)          Ratification
and Confirmation. Except as otherwise set forth herein or in the Schedules and Exhibits hereto, the representations and warranties
of the Company made in the Note and Warrant Purchase Agreement, dated as of July 3, 2013, among the Company and certain of the
Lenders, remain true, complete and accurate in all material respects as if made on the date hereof.

 

Section
2.2          Representations and Warranties of the Lenders

 

Each
Lender, severally and not jointly and for itself and only as to itself and for no other person, hereby represents and warrants
to the Company as follows:

 

(a)          Organization
and Standing. If such Lender is not a natural person, such Lender is a corporation or limited liability company duly organized,
validly existing and in good standing under the laws of the jurisdiction of its formation.

 

(b)          Authorization
and Power. The Lender has the requisite power and authority to enter into and perform the Transaction Documents to which it
is a party, and to purchase the Securities being sold or issued to it hereunder. The execution, delivery and performance by the
Lender of the Transaction Documents to which it is a party, and the consummation by it of the transactions contemplated hereby,
have been duly authorized by all necessary action, and no further consent or authorization of the Lender, or any other person
or entity is required. When executed and delivered by the Lender, the Transaction Documents to which the Lender is a party shall
constitute valid and binding obligations of the Lender, enforceable against the Lender in accordance with their terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.

 

    	-9-

    	 

    

 

(c)          Acquisition
for Investment. The Lender is purchasing the Securities that are being sold or issued to it hereunder solely for its own account
and not with a view to or for sale in connection with distribution. The Lender has no present intention to sell any of the Securities
that are being sold or issued to it hereunder, nor a present arrangement (whether or not legally binding) or intention to effect
any distribution of any of the Securities that are being sold to it hereunder to or through any person or entity; provided,
however, that by making the representations herein, the Lender does not agree to hold the Securities that are being sold
or issued to it hereunder for any minimum or other specific term and reserves the right to dispose of such Securities at any time
in accordance with federal and state securities laws applicable to such disposition. The Lender acknowledges that it (i) has such
knowledge and experience in financial and business matters such that it is capable of evaluating the merits and risks of its investment
in the Company, (ii) is able to bear the financial risks associated with an investment in the Securities that are being sold to
it hereunder, and (iii) has been given full access to such records of the Company and the Subsidiaries and to the officers of
the Company and the Subsidiaries as it has deemed necessary or appropriate to conduct its due diligence investigation.

 

(d)          Rule
144. The Lender understands that the Securities that are being sold or issued to it hereunder must be held indefinitely unless
such Securities are registered under the Securities Act or an exemption from registration is available. The Lender acknowledges
that it is familiar with Rule 144 of the rules and regulations of the Securities and Exchange Commission (the “Commission”),
as amended, promulgated pursuant to the Securities Act (“Rule 144”), and that it has been advised that Rule
144 permits resales only under certain circumstances. The Lender understands that to the extent that Rule 144 is not available,
the Lender will be unable to sell any Securities without either registration under the Securities Act or the existence of another
exemption from such registration requirement.

 

(e)          Restrictions
on Common Stock. The Lender acknowledges that it is aware that: (i) the Common Stock has been de-registered by the Commission
under Section 12 of the Securities Act, (ii) the Common Stock is no longer eligible for listing on the OTCBB or any national securities
exchange, (iii) no public trading market for the Common Stock currently exists and there can be no assurance that the Common Stock
will be re-registered, that it will become listed on the OTCBB or any national securities exchange or that a public trading market
will ever develop, (iv) the Securities must be held indefinitely unless they are subsequently registered under the Securities
Act or an exemption from such registration is available and (v) the Consideration Shares will bear a legend as set forth in Section
6.1.

 

(f)          General.
The Lender understands that the Securities are being offered and sold in reliance on a transactional exemption from the registration
requirements of federal and state securities laws, and the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the Lender set forth herein in order to determine the applicability
of such exemptions and the suitability of the Lender to acquire the Securities. The Lender understands that no United States federal
or state agency or any government or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

    	-10-

    	 

    

 

(g)          No
General Solicitation. The Lender acknowledges that the Securities were not offered to the Lender by means of any form of general
or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any
advertisement, article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over
television or radio, or (ii) any seminar or meeting to which the Lender was invited by any of the foregoing means of communications.
The Lender, in making the decision to purchase the Securities that are being sold to it hereunder, has relied upon independent
investigation made by it and has not relied on any information or representations made by third parties.

 

(h)          Accredited
Investor. The Lender is an “accredited investor” (as defined in Rule 501 of Regulation D, 17 C.F.R. §230.501),
and the Lender has such experience in business and financial matters that it is capable of evaluating the merits and risks of
an investment in the Securities. The Lender is not required to be registered as a broker-dealer under Section 15 of the Exchange
Act, and the Lender is not a broker-dealer. The Lender acknowledges that an investment in the Securities is speculative and involves
a high degree of risk.

 

(i)          Certain
Fees. The Lender has not employed any broker or finder or incurred any liability for any brokerage or investment banking fees,
commissions, finders’ structuring fees, financial advisory fees or other similar fees in connection with the Transaction
Documents.

 

(J)         TERMS
OF TRANSACTION. THE LENDER HAS CAREFULLY REVIEWED EACH OF THE TRANSACTION DOCUMENTS, INCLUDING, WITHOUT LIMITATION, THIS AGREEMENT,
THE CERTIFICATE OF DESIGNATION AND THE AMENDED AND RESTATED INTERCREDITOR AGREEMENT. THE LENDER ACKNOWLEDGES THAT PLATINUM HAS
BEEN AFFORDED CERTAIN RIGHTS UNDER THE TRANSACTION DOCUMENTS THAT HAVE NOT BEEN AFFORDED TO THE OTHER LENDERS, INCLUDING, WITHOUT
LIMITATION:

 

·          THE
RIGHT TO RECEIVE SHARES OF SERIES D PREFERRED STOCK INSTEAD OF SHARES OF COMMON STOCK;

 

·          THE
RIGHT TO MAKE THE BRIDGE LOAN;

 

·          THE
SENIOR SECURED POSITION OF THE BRIDGE LOAN AS COMPARED TO THE EXCHANGE NOTES UNDER THE SECURITY AGREEMENT (AS DEFINED IN SECTION
4.1);

 

·          THE
INSPECTION RIGHTS SET FORTH IN SECTION 3.3;

 

·          THE
RIGHT TO PARTICIPATE IN SUBSEQUENT FINANCINGS SET FORTH IN SECTION 3.14;

 

·          CERTAIN
RIGHTS FOLLOWING THE OCCURRENCE OF AN EVENT OF DEFAULT SET FORTH IN SECTION 5.2;

 

·          THE
RIGHT TO REIMBURSEMENT OF FEES AND EXPENSES SET FORTH IN SECTION 8.1; 

 

    	-11-

    	 

    

 

·          THE
RIGHT TO DIRECT REMEDIES AND EFFECT AMENDMENTS TO THE TRANSACTION DOCUMENTS PURSUANT TO THE TERMS OF THE AMENDED INTERCREDITOR
AGREEMENT AND THE SECURITY AGREEMENT IN PLATINUM’S SOLE AND ABSOLUTE DISCRETION; AND

 

·          DEMAND
REGISTRATION RIGHTS UNDER THE REGISTRATION RIGHTS AGREEMENT. 

 

IT
IS UNDERSTOOD AND AGREED BY EACH LENDER THAT BURAK ANDERSON & MELLONI, PLC HAS REPRESENTED PLATINUM IN CONNECTION WITH THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND NO OTHER LENDER.

 

ARTICLE
III

COVENANTS

 

The
Company covenants with the Lenders as follows, which covenants are for the benefit of the Lenders and their respective successors
and assigns, and which covenants may be waived in the sole discretion of Platinum, upon and after the Effective Date as follows:

 

Section
3.1          Securities Compliance.

 

The
Company shall take all necessary action and proceedings as may be required and permitted by applicable law, rule and regulation,
for the legal and valid issuance to the Lenders, or their respective subsequent holders, of the Securities that are being issued
and sold to them hereunder.

 

Section
3.2          Registration and Listing.

 

Beginning
at such time as the Common Stock shall be registered under Sections 12(b) or 12(g) of the Exchange Act or the Company is obligated
to file periodic reports under Section 15(d) of the Exchange Act (such date, the “Registration Date”), of which
there can be no assurance, the Company shall comply in all respects with its reporting and filing obligations under the Exchange
Act, shall comply with all requirements related to any registration statement registering any of the Securities for resale, and
shall not voluntarily take any action or file any document (whether or not permitted by the Securities Act or the rules promulgated
thereunder) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the
Exchange Act or the Securities Act.

 

Beginning
at such time as the Common Stock shall be listed or traded on the OTCBB, the OTCQB, the OTCQX or any national securities exchange,
of which there can be no assurance, the Company shall take all action necessary to continue such listing or trading and, if required,
will file a “Listing Application” for, or in connection with, the issuance and delivery of the Conversion and Exercise
Shares. Subject to the terms of the Transaction Documents, the Company further covenants that it will take such further action
as a Lender may reasonably request, all to the extent required from time to time to enable such Lender to sell the Securities
that have been issued to it without registration under the Securities Act within the limitation of the exemptions provided by
Rule 144 promulgated under the Securities Act; provided, for the avoidance of doubt, that, prior to the Registration Date,
the Company shall have no obligation to file reports under the Exchange Act or otherwise provide current public information under
Rule 144(c). Upon the request of Platinum, the Company shall deliver to the Lenders a written certification of a duly authorized
officer as to whether it has complied with such requirements.

 

    	-12-

    	 

    

 

Section
3.3          Inspection Rights

 

Provided
that the same would not be in violation of Regulation FD (17 C.F.R. Part 243), the Company shall permit, during normal business
hours and upon reasonable request and reasonable notice, Platinum or any employees, agents or representatives thereof, so long
as Platinum shall beneficially own any Securities, for purposes reasonably related to Platinum’s interests as a stockholder
and lender, to examine the publicly available, non-confidential records and books of account of, and visit and inspect the properties,
assets, operations and business of the Company and any Subsidiary, and to discuss the publicly available, non-confidential affairs,
finances and accounts of the Company and any Subsidiary with any of its officers, consultants, directors, and key employees.

 

Section
3.4          Compliance with Laws.

 

The
Company shall comply, and cause each Subsidiary to comply, with all applicable laws, rules, regulations and orders, noncompliance
with which would be reasonably likely to have a Material Adverse Effect.

 

Section
3.5          Keeping of Records and Books of Account.

 

The
Company shall keep and cause each Subsidiary to keep adequate records and books of account, in which complete entries will be
made in accordance with GAAP consistently applied, reflecting all financial transactions of the Company and its Subsidiaries,
and in which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts
and other purposes in connection with its business shall be made.

 

Section
3.6          Reporting Requirements.

 

During
the period between the Closing Date and the Registration Date, and during any period following the Registration Date after the
Company ceases to file its periodic reports with the Commission (or after the Commission ceases making these periodic reports
available via the Internet without charge), the Company shall furnish the following to the Lenders so long as the Lenders shall
beneficially own Securities:

 

(a)   as
soon as practicable after the end of each fiscal year of the Company, (i) a balance sheet as of the end of such year, (ii) statements
of income and of cash flows for such year, and (iii) a statement of stockholders’ equity as of the end of such year, all
such financial statements audited and certified by independent public accountants of regionally recognized standing selected by
the Company;

 

    	-13-

    	 

    

 

(b)   as
soon as practicable after the end of each of the first three (3) quarters of each fiscal year of the Company, unaudited statements
of income and of cash flows for such fiscal quarter, and an unaudited balance sheet and a statement of stockholders’ equity
as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject
to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP); and

 

(c)   copies
of all notices, information and proxy statements in connection with any meetings, that are, in each case, provided to holders
of shares of Common Stock, contemporaneously with the delivery of such notices or information to such holders of Common Stock.

 

Section
3.7          Other Agreements.

 

The
Company shall not enter into any agreement in which the terms of such agreement would restrict or impair the right or ability
to perform of the Company or any Subsidiary under any Transaction Document.

 

Section
3.8          Reporting Status.

 

Beginning
on the Registration Date, and for so long thereafter as the Lenders beneficially own any of the Securities, the Company shall
timely file all reports required to be filed with the Commission pursuant to the Exchange Act, and the Company shall not voluntarily
terminate its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations
thereunder would permit such termination.

 

Section
3.9          Pledge of Securities.

 

The
Company acknowledges that the Securities may be pledged by the Lenders in connection with a bona fide margin agreement
or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a
transfer, sale or assignment of the Securities hereunder, and if a Lender effects a pledge of the Securities, such Lender shall
not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this
Agreement or any other Transaction Document. At the Company’s expense, the Company hereby agrees to execute and deliver
such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such
pledgee by a Lender.

 

Section
3.10        Amendments.

 

The
Company shall not amend or waive any provision of the Certificate or Bylaws of the Company, and shall not permit any Subsidiary
to amend or waive any provision of its articles of incorporation or bylaws, in any way that would adversely affect exercise rights,
voting rights, conversion rights, prepayment rights or redemption rights of the holder of the Securities, in each case without
the prior written consent of Platinum.

 

    	-14-

    	 

    

 

Section
3.11        Distributions.

 

So
long as the Exchange Notes, the Bridge Note and/or any shares of Series D Preferred Stock remain outstanding, the Company shall
not, and shall not permit any Subsidiary to, (i) declare or pay any dividends or make any distributions to any holder(s) of Common
Stock or other equity security of the Company or such Subsidiaries (other than dividend and distributions from a Subsidiary to
the Company), (ii) purchase or otherwise acquire for value, directly or indirectly, any shares or other equity security of the
Company, (iii) create or acquire any subsidiary, become a partner in any partnership or joint venture, make any acquisition of
any interest in any person or entity, or acquire substantially all of the assets of any person or entity, or (iv) transfer, assign,
pledge, issue or otherwise permit any equity or other ownership interests in the Subsidiaries to be beneficially owned or held
by any person other than the Company.

 

Section
3.12        Transferability.

 

The
Company warrants that the Conversion and Exercise Shares shall be freely transferable on the books and records of the Company,
subject to the requirements of applicable law. If a Lender provides the Company with an opinion of counsel, in a generally acceptable
form, to the effect that a public sale, assignment or transfer of the Securities may be made without registration under the Securities
Act, the Company shall permit the transfer, and, in the case of the Conversion and Exercise Shares, promptly instruct its transfer
agent to issue one or more certificates in such name and in such denominations as specified by such Lender, and without any restrictive
legend, to the extent permitted by Rule 144. The Company acknowledges that a breach by it of its obligations under this Section
3.12 will cause irreparable harm to the Lenders. Accordingly, the Company acknowledges that the remedy at law for a breach
of its obligations under this Section 3.12 will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Section 3.12, that the Lenders shall be entitled, in addition to all other available
remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity
of showing economic loss and without any bond or other security being required.

 

Section
3.13        Opinion.

 

The
Company will cause its counsel to provide, at the Company’s expense, such legal opinions in the future as are reasonably
necessary for the issuance and resale of the Consideration Shares and the Conversion and Exercise Shares pursuant to an effective
registration statement, Rule 144 (to the extent permitted by applicable law), or an available exemption from registration (to
the extent permitted by applicable law); provided that, in the case of a sale other than pursuant to an effective registration
statement, a Lender requesting such opinion has provided assurances, reasonably acceptable to the Company and its counsel, as
to the availability of Rule 144 or other exemption for such sale.

 

    	-15-

    	 

    

 

Section
3.14        Subsequent Financings.

 

(a)          For
so long as any portion of the Exchange Note issued to Platinum (the “Platinum Notes”) remains outstanding,
the Company covenants and agrees to promptly notify (in no event later than five (5) days after making or receiving an applicable
offer) Platinum in writing (a “Rights Notice”) of the terms and conditions of any proposed offer or sale to,
or exchange with (or other type of distribution to) any third party (a “Subsequent Financing”), of Common Stock
or any securities convertible, exercisable or exchangeable into Common Stock, including convertible debt securities (collectively,
the “Financing Securities”). The Rights Notice shall describe, in reasonable detail, the proposed Subsequent
Financing, the names and investment amounts of all investors participating in the Subsequent Financing, the proposed closing date
of the Subsequent Financing, which shall be within ten (10) calendar days from the date of the Rights Notice, and all of the terms
and conditions thereof and proposed definitive documentation to be entered into in connection therewith. The Rights Notice shall
provide Platinum an option (the “Rights Option”) during the three (3) Trading Days following delivery of the
Rights Notice (the “Option Period”) to inform the Company whether Platinum will purchase up to such dollar
amount of securities in such Subsequent Financing as is equal to the outstanding amount of the Platinum Note on the same, absolute
terms and conditions as contemplated by such Subsequent Financing. “Trading Day” means any day during which the principal
exchange on which the Common Stock is traded shall be open for trading. Delivery of any Rights Notice constitutes a representation
and warranty by the Company that there are no other material terms and conditions, arrangements, agreements or otherwise except
for those disclosed in the Rights Notice, to provide additional compensation to any party participating in any proposed Subsequent
Financing, including, but not limited to, additional compensation based on changes in the Purchase Price or any type of reset
or adjustment of a purchase or conversion price or to issue additional securities at any time after the closing date of a Subsequent
Financing. If the Company does not receive notice of exercise of the Rights Option from Platinum within the Option Period, the
Company shall have the right to close the Subsequent Financing on or prior to the scheduled closing date with a third party; provided
that all of the material terms and conditions of the closing are substantially the same as those provided to Platinum in the Rights
Notice. If the closing of the proposed Subsequent Financing does not occur on or prior to that date, any closing of the contemplated
Subsequent Financing or any other Subsequent Financing shall be subject to all of the provisions of this Section 3.14, including,
without limitation, the delivery of a new Rights Notice. The provisions of this Section 3.14 shall not apply to issuances of securities
in a Permitted Issuance. For purposes of this Agreement, a Permitted Issuance (as defined hereinafter) shall not be considered
a Subsequent Financing.

 

“Permitted
Issuance” means (a) an issuance of shares of Common Stock or options to employees, officers, consultants, directors
or other service providers of the Company, whether or not pursuant to any stock or option plan duly approved by the shareholders
of the Company, if such issuances are approved by a majority of the non-employee members of the Board of Directors of the Company
or a majority of the members of a committee of non-employee directors established for such purpose, or their respective designees
as permitted under the terms of such plan, (b) the issuance of any Securities issued hereunder, (c) the issuance of securities
upon the exercise or exchange of or conversion of (i) any of the Securities, (ii) the Warrants and/or (iii) securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement or issued
on the Closing Date; provided that, except as contemplated by this Agreement and the other Transaction Documents, such securities
have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise,
exchange or conversion price of any such securities (for purposes of clarity, any anti-dilution adjustment under the terms of
the Securities shall not be deemed an amendment under this clause (c)), (d) an issuance of securities pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance
shall only be to a person (or to the equityholders of a person) which is, itself or through its subsidiaries, an operating company
or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities or (e) the issuance
of any securities in an underwritten public offering registered under the Securities Act.

 

    	-16-

    	 

    

 

Section
3.15        Variable Rate Securities.

 

For
so long as the Exchange Notes remain outstanding, notwithstanding whether or not an issuance of securities is a Permitted Issuance,
the Company shall not issue or sell, or agree to issue or sell Variable Equity Securities (as defined below) (the “Variable
Equity Securities Lock-Up”), without obtaining the prior written approval of Platinum. For purposes hereof, the following
shall be collectively referred to herein as the “Variable Equity Securities”: (A) any debt or equity securities
which are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common Stock either
(1) at any conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or
quotations for Common Stock at any time after the initial issuance of such debt or equity security, or (2) with a fixed conversion,
exercise or exchange price that is subject to being reset at some future date at any time after the initial issuance of such debt
or equity security due to a change in the market price of the Company’s Common Stock since date of initial issuance, or
(B) any amortizing convertible security which amortizes prior to its maturity date, where the Company is required to or has the
option to (or the investor in such transaction has the option to require the Company to) make such amortization payments in shares
of Common Stock (whether or not such payments in stock are subject to certain equity conditions), or (C) any transaction involving
a written agreement between the Company and an investor or underwriter whereby the Company has the right to “put”
its securities to the investor or underwriter over an agreed period of time and at an agreed price or price formula (each, an
“Equity Line” transaction). It is expressly agreed and understood that the Variable Equity Securities Lock-Up
shall apply in respect of a Permitted Issuance and that no issuance of Variable Equity Securities shall be a Permitted Issuance.

 

Section
3.16        Payment of Taxes and Claims

 

The
Company shall, and shall cause each Subsidiary of the Company to, pay (a) all taxes, estimated payments, assessments and governmental
charges or levies imposed upon the Company, the Company’s Subsidiaries and its and their property or assets or in respect
of any of its franchises, businesses, income or property when due; and (b) all claims of materialmen, mechanics, carriers, warehousemen,
landlords, bailees and other like persons (including without limitation, claims for labor, services, materials and supplies) for
sums which have become due and payable and which by law have or may become a Lien upon property or assets of the Company and/or
any Subsidiary of the Company, other than for Permitted Contests. As used herein: “Lien” means any lien, security
interest, mortgage, encumbrance, right or claim; and “Permitted Contest” means the right of the Company and/or
any Subsidiary of the Company to contest or protest any Lien, taxes (other than payroll taxes or taxes that are the subject of
a United States federal tax lien), or rental payment, provided that (i) a reserve with respect to such obligation is established
on the Company’s and/or such Subsidiary’s books and records in such amount as is required under GAAP, and (ii) any
such protest is instituted promptly and prosecuted diligently by the Company and/or such Subsidiary in good faith. Notwithstanding
the foregoing, the Lenders hereby acknowledge that the Company is investigating certain possible tax liabilities, as described
on Schedule 3.16 hereto, the investigation of which (and any actions taken or payments made in connection therewith) shall
be considered “Permitted Contests” hereunder.

 

    	-17-

    	 

    

 

Section
3.17        Insurance

 

At
all times in respect of its personal property, the Company shall, and shall cause each Subsidiary to, have and maintain insurance
substantially similar in terms of coverage, amounts and scope as the Company’s and each Subsidiary’s existing insurance
policies as of the Closing Date.

 

Section
3.18        Place of Business

 

The
Company shall, and shall cause each Subsidiary to, (i) deliver to the Lenders at least thirty (30) days prior to the occurrence
of any of the following events, written notice of a change in name, identity or structure; and (ii) remain organized in the state
or jurisdiction of its incorporation or formation as of the Closing Date.

 

Section
3.19        Maintenance; Certain Covenants

 

The
Company shall, and shall cause each Subsidiary to, (i) maintain its property in a condition comparable or superior to that on
the date hereof, except for normal wear and tear and routine maintenance and obsolescence in the ordinary course of business;
(ii) do or cause to be done all things reasonably necessary to maintain its status as duly organized and existing, and in good
standing, under the laws of the state of its organization; and (iii) conduct continuously and operate actively its business and
take all actions reasonably necessary to enforce and protect the validity of all intellectual property of the Company material
to the business of the Company and/or any Subsidiary as presently conducted.

 

Section
3.20        Negative Pledge

 

The
Company shall not, and shall not permit any Subsidiary to, cause or permit or permit to exist or agree or consent to cause or
permit in the future (upon the happening of a contingency or otherwise), any personal property or real property of the Company
and/or any Subsidiary, whether now owned or hereafter acquired, to become subject to a Lien, except for Permitted Liens. “Permitted
Liens” means the individual and collective reference to the following: (1) Liens in favor of Platinum (including as
collateral agent on behalf of the Lenders), (2) Liens securing the Bridge Loan, and (3) Liens for taxes, assessments and other
governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested
in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the
Company contesting such charges) have been established in accordance with GAAP; and (b) Liens imposed by law which were incurred
in the ordinary course of the Company’s business, such as carriers’, warehousemen’s and mechanics' Liens, statutory
landlords' Liens, and other similar Liens arising in the ordinary course of the Company’s business, and which (i) do not
individually or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof
in the operation of the business of the Company and its consolidated subsidiaries or (ii) are being contested in good faith by
appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of
the property or asset subject to such Lien.

 

    	-18-

    	 

    

 

Section
3.21        Indebtedness

 

The
Company shall not, and shall not permit any Subsidiary to, directly or indirectly create, incur, assume, guarantee, or otherwise
become or remain liable with respect to any material Indebtedness, except for Permitted Indebtedness.

 

As
used herein:

 

(a)          “Permitted
Indebtedness” means (i) Indebtedness to Platinum or any affiliate of Platinum, (ii) Indebtedness under the Exchange
Notes, and (iii) the Bridge Loan;

 

(b)          “Indebtedness”
means, at any time, (i) all indebtedness, obligations or other liabilities (other than accounts payable arising in the ordinary
course of business payable on terms customary in the trade) which in accordance with GAAP should be classified as liabilities
on the balance sheet of such person or entity, including without limitation, (A) for borrowed money or evidenced by debt securities,
debentures, acceptances, notes or other similar instruments, and any accrued interest, fees and charges relating thereto, (B)
under profit payment agreements or in respect of obligations to redeem, repurchase or exchange any securities or to pay dividends
in respect of any stock, (C) with respect to letters of credit, bankers acceptances, interest rate swaps or other contracts, currency
agreement or other financial products, (D) to pay the deferred purchase price of property or services, or (E) in respect of capital
leases; (ii) all indebtedness, obligations or other liabilities secured by a lien on any property, whether or not such indebtedness,
obligations or liabilities are assumed by the owner of the same; and (iii) all Contingent Obligations; and

 

(c)          “Contingent
Obligations” mean any agreement, undertaking or arrangement by which any person or entity assumes, guaranties, endorses,
agrees to provide funding, or otherwise becomes or is contingently liable upon the obligation or liability of any other person
or entity.

 

Section
3.22         Fundamental Changes; Asset Transfers

 

(a)          The
Company shall not, and shall not permit any Subsidiary to, merge into or consolidate with any other entity, or permit any other
entity to merge into or consolidate with it, or liquidate or dissolve.

 

(b)          The
Company shall not, and shall not permit any Subsidiary to, sell, transfer, lease, license or otherwise dispose of, in one transaction
or a series of transactions: (i) assets representing all or substantially all the assets of the Company and the Subsidiaries taken
as a whole (other than to the Company); and/or (ii) assets material to the conduct of business of the Company and the Subsidiaries
taken as a whole (other than grants of outbound licenses of such intellectual property in the ordinary course of business that
do not materially detract from the value of the affected asset in the hands of the Company and the Subsidiaries, or interfere
with the ordinary conduct of business of the Company and the Subsidiaries taken as a whole, or require the Company or any Subsidiary
to obtain any license of or other right to use such intellectual property from the licensee in order to continue to conduct such
business).

 

    	-19-

    	 

    

 

Section
3.23        Transactions with Affiliates

 

The
Company shall not, and shall not permit any Subsidiary to, sell, lease, license or otherwise transfer any assets to, or purchase,
lease, license or otherwise acquire any assets from, or otherwise engage in any other transactions with, any of its Affiliates,
except (a) transactions that are at prices and on terms and conditions not less favorable to the Company or such Subsidiary than
those that would prevail in arm’s-length transactions with unrelated third parties, (b) issuances by the Company of equity
and receipt by the Company of capital contributions, (c) compensation and indemnification of, and other employment arrangements
with, directors, officers and employees of the Company or any Subsidiary, (d) any transaction determined by a majority of the
disinterested directors of the applicable entity’s board of directors to be fair to the applicable entity, (e) transactions
contemplated by, or that are necessary to enforce rights granted under, this Agreement and the Transaction Documents and (f) transactions
approved by Platinum in its discretion. “Affiliate” of any specified entity or person means any other entity
directly or indirectly controlling or controlled by or under direct or indirect common control with such specified entity or person
and “control”, when used with respect to any specified entity, means the power to direct the management and policies
of such entity, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

Section
3.24        No Investments

 

The
Company shall not, and shall not permit any Subsidiary to, make or suffer to exist any Investments or commitments therefor. As
used herein, “Investment” means, with respect to any person or entity, all investments in any other person
or entity, whether by way of extension of credit, loan, advance, purchase of stock or other ownership interest, bonds, notes,
debentures or other securities, or otherwise, and whether existing on the date of this Agreement or thereafter made, but such
term shall not include the cash surrender value of life insurance policies on the lives of officers or employees, excluding amounts
due from customers for services or products delivered or sold in the ordinary course of business.

 

Section
3.25        Exchange Right

 

For
so long as not less than 25% of the principal amount of an Exchange Note issued to a Lender pursuant to this Agreement remains
outstanding, if the Company enters into any Subsequent Financing on terms more favorable than the terms governing the Exchange
Note, as determined by such Lender in its reasonable discretion, then such Lender in its sole discretion may exchange the principal
and interest of the Exchange Note then held by such Lender for the securities issued or to be issued in the Subsequent Financing.
The Company covenants and agrees to promptly notify in writing the Lenders of the terms and conditions of any such proposed Subsequent
Financing. An exchange pursuant to this provision shall not have any effect on other Securities held by a Lender, which constitute
separate, detachable securities from the Exchange Notes. The provisions of this Section 3.25 shall not apply to issuances of securities
in a Permitted Issuance.

 

    	-20-

    	 

    

 

Section
3.26        Investment Company Act

 

The
Company shall conduct its businesses in a manner so that it will not become subject to the Investment Company Act of 1940, as
amended.

 

Section
3.27        Indebtedness to Affiliates

 

Except
for payments made to Platinum (to the extent Platinum may, at any time, be deemed an Affiliate), payments made to the Lenders
in respect of the Transaction Documents, and except as set forth on Schedule 3.27 hereof, the Company shall not, and shall
not permit any Subsidiary to, make any payment on any Indebtedness owed to officers, directors or Affiliates (as defined in Rule
405 promulgated under the Securities Act, 17 C.F.R. §230.405).

 

Section
3.28        DTC Eligibility

 

After
the Registration Date, the Company shall use commercially reasonable efforts to cause its Common Stock to be eligible for transfer
pursuant to the Depository Trust Company Automated Securities Transfer Program at all times while any Securities remain outstanding.

 

Section
3.29        Conversion and Exercise Shares

 

On
and after the Effective Date, the Company represents and warrants to the Lenders that it will authorize and reserve, and covenants
to continue to reserve, free of preemptive rights and other similar contractual rights of stockholders, a number of its authorized
but unissued shares of Common Stock equal to one hundred twenty percent (120%) of the aggregate number of shares of Common Stock
to effect the conversion in full of the Exchange Notes and the Series D Preferred Stock issued pursuant to this Agreement or the
Exchange Notes (including upon conversion of the Exchange Notes) and the exercise in full of the Warrants and the Consideration
Warrant. Any shares of Common Stock issuable upon conversion of the Exchange Notes or such Series D Preferred Stock and exercise
of the Warrants or the Consideration Warrant are herein referred to as the “Conversion and Exercise Shares”.
The Exchange Notes, the Warrants, the Consideration Shares, the Consideration Warrant, the Conversion and Exercise Shares and
the Bridge Note are sometimes collectively referred to herein as the “Securities”.

 

ARTICLE
IV

CONDITIONS

 

Section
4.1          Conditions Precedent to Closing.

 

The
Company shall not become obligated to issue the Exchange Notes, the Bridge Note, the Consideration Shares and the Consideration
Warrant to the Lenders, the Lenders shall not be obligated to effect the Note Exchange or the Preferred Stock Exchange, and Platinum
shall not be obligated to provide the Bridge Loan, until such time as all of the following conditions have been satisfied or waived
by the parties hereto (the date on which all of such conditions have been satisfied being referred to herein as the “Closing
Date”) or on or before July 1, 2014, as determined by the Company and Platinum (on behalf of the Lenders):

 

    	-21-

    	 

    

 

(a)          Accuracy
of the Company’s Representations and Warranties. All of the representations and warranties of the Company and its Subsidiaries
in this Agreement and the other Transaction Documents, and all of the representations and warranties of the Lenders in this Agreement
and the other Transaction Documents, shall be true and correct in all material respects as of the Closing Date, except for representations
and warranties that speak as of a particular date, which shall be true and correct in all material respects as of such date.

 

(b)          Performance
by the Company. The Company and all Subsidiaries shall have performed, satisfied and complied in all material respects with
all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company
at or prior to the Closing Date.

 

(c)          No
Suspension, Etc. Trading in securities generally as reported by Bloomberg Financial Markets (“Bloomberg”)
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported
by Bloomberg, or on the New York Stock Exchange, nor shall a banking moratorium have been declared either by the United States
or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity or crisis of such magnitude in its effect on, or any material adverse change in any financial market
which, in each case, in the judgment of Platinum, makes it impracticable to purchase the Securities.

 

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

 

(e)          No
Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any Subsidiary,
or any of the officers, directors or affiliates of the Company or any Subsidiary seeking to restrain, prevent or change the transactions
contemplated by this Agreement, or seeking damages in connection with such transactions.

 

(f)          Forbearance
Period. The Forbearance Period shall not have been terminated (by virtue of the passage of time or otherwise).

 

(g)          Transaction
Documents. The Company and its Subsidiaries shall have executed each Transaction Document to which it is a party and which
is to be delivered on the Closing Date, including the Exchange Notes, the Bridge Note, the Consideration Shares, the Consideration
Warrant, a Security Agreement (the “Security Agreement”) in substantially the form attached hereto as Exhibit
E, a Registration Rights Agreement with the Lenders (the “Registration Rights Agreement”) in substantially
the form attached hereto as Exhibit F, the Second Amended and Restated Intercreditor Agreement, in substantially the form
attached hereto as Exhibit G (the “Amended Intercreditor Agreement”) and the Guaranty, and delivered
same to the Lenders. Platinum shall have funded the Bridge Loan, and the Lenders shall have executed each Transaction Document
to which it is a party and which is to be delivered on the Closing Date, including this Agreement, and delivered same to the Company.
Platinum and the Lenders shall have entered into a Collateral Agency Agreement in form and substance satisfactory to Platinum.

 

    	-22-

    	 

    

 

(h)          Secretary’s
Certificate. The Company and its Subsidiaries shall have delivered to the Lenders secretary’s certificates, dated as
of the Closing Date, as to (i) the resolutions adopted by the Board of Directors of the Company and each of its Subsidiaries approving
the transactions contemplated hereby, (ii) the articles of incorporation of such entity, as in effect on the Closing Date, (iii)
the bylaws of such entity, as in effect on the Closing Date, and (iv) the authority and incumbency of the officers of the Company
and its Subsidiaries executing the Transaction Documents and any other documents required to be executed or delivered in connection
therewith.

 

(i)          Material
Adverse Effect. No Material Adverse Effect shall have occurred and no event or omission that could reasonably be expected
to result in a Material Adverse Effect shall have occurred since the date of this Agreement.

 

(j)          Delivery
of Surrendered Notes and Existing Preferred Stock by Lenders. The Lenders shall have delivered to the Company the Surrendered
Notes and the Existing Preferred Stock (or, if required, an affidavit of lost note or certificate in lieu of the same in form
and substance reasonably satisfactory to the Company).

 

(k)          Stockholder
Approval. The Stockholder Approval shall have been obtained and the Authorized Share Amendment shall have been duly filed
and accepted by the Delaware Secretary of State, in form and substance reasonably satisfactory to Platinum.

 

(l)          Certificate
of Designation. The Certificate of Designation shall have been duly filed and accepted by the Delaware Secretary of State.

 

(m)          Consideration
Shares. The Company shall have issued the Consideration Shares and the Consideration Warrant pursuant to the terms hereof.

 

(n)          Opinion.
Counsel to the Company shall have delivered to the Lenders an opinion in form and substance reasonably acceptable to Platinum.

 

ARTICLE
V 

EVENTS
OF DEFAULT 

 

Section
5.1           Events of Default

 

Each
of the following shall constitute an “Event of Default” hereunder:

 

(a)          The
occurrence of any Event of Default under and as defined in any Transaction Document;

 

    	-23-

    	 

    

 

(b)         
If: (i) any material provision of any Transaction Document shall at any time for any reason cease to be valid, binding and enforceable
against the Company and/or any Subsidiary of the Company; (b) the validity, binding effect or enforceability of any Transaction
Document against the Company and/or any Subsidiary of the Company shall be contested by the Company and/or any Subsidiary of the
Company; (c) the Company and/or any Subsidiary of the Company shall deny that it has any or further liability or obligation under
any Transaction Document; (d) any Subsidiary of the Company shall give notice of its intention to discontinue the Guaranty; and/or
(e) any Transaction Document shall be terminated, invalidated or set aside, or be declared ineffective or inoperative or in any
way cease to give or provide to the Lenders or Platinum the benefits purported to be created thereby;

 

(c)          The
Company fails to make timely payment of principal, interest or any other sum due and payable under any Transaction Document;

 

(d)          The
Company and/or any Subsidiary of the Company fails to perform or observe any covenant, agreement or duty contained in any Transaction
Document, and such failure remains un-remedied for ten (10) days after an officer of the Company and/or such Subsidiary first
becomes aware, or should have, with reasonable diligence, been aware, of such default;

 

(e)          Any
warranty, representation or other statement made or deemed to be made by the Company and/or any Subsidiary of the Company in this
Agreement or in any Transaction Document is false or misleading in any material respect at the time it is made;

 

(f)          The
Company and/or any Subsidiary of the Company commences any Insolvency Proceeding;

 

(g)          Any
involuntary Insolvency Proceeding is instituted (other than by the Lenders) against the Company and/or any Subsidiary of the Company
and continues for thirty (30) days undismissed or undischarged;

 

(h)          One
or more final, unappealable orders, judgments or arbitration awards for the payment of money in an aggregate amount in excess
of $100,000 or nonmonetary relief or remedy which is reasonably likely to have a Material Adverse Effect, is entered against the
Company and/or any Subsidiary, and any such order, judgment or award has not been discharged, bonded in full or stayed in all
material respects, or any action shall be legally taken by any judgment creditor to attach or levy upon any assets of the Company
and/or any Subsidiary to enforce any such judgment;

 

(i)          The
occurrence of any event which allows the acceleration of the maturity of any Indebtedness in excess of the amount of $100,000
of the Company and/or any Subsidiary of the Company on an aggregate basis;

 

(j)          A
Change of Control of the Company and/or any Subsidiary of the Company shall have occurred; and/or

 

    	-24-

    	 

    

 

As
used herein, the following terms have the following meanings:

 

·        “Insolvency
Proceeding” means any proceeding commenced by or against any person or entity under any provision of the United States
Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, receivership, assignment for the benefit of
creditors, formal or informal moratorium, forbearance, composition, extension generally with creditors, or proceedings seeking
reorganization, arrangement, or other similar relief; and

 

·        “Change
of Control” means in respect of the Company and any Subsidiary of the Company: (i) the replacement of a majority of
the directors or managers who constituted the Board of Directors or the managing body of such entity on the Closing Date for any
reason other than retirement, resignation, death or disability, and such replacement shall not have been approved by at least
two-thirds of the directors constituting the Board of Directors or applicable managing body; or (ii) a person or entity or one
or more persons or entities acting in concert, as a result of a tender or exchange offer, privately negotiated purchase or purchases,
exercise of the stock pledge, death of a shareholder or otherwise, shall have become the “beneficial owner” (within
the meaning of Rule 13d-3 and 13d-5 under the Exchange Act) of securities of the Company representing more than fifty percent
(50%) of the combined voting power of the outstanding securities of the Company and/or any Subsidiary of the Company ordinarily
having the right to vote in the election of directors or managers; provided, however, that (w) any action taken
to replace members of the Board of Directors of the Company and/or any Subsidiary of the Company by or at the direction of Platinum,
(x) any acquisition or purchase of equity securities of the Company and/or any Subsidiary of the Company by Platinum, or the acquisition
or purchase of equity securities of the Company and/or any Subsidiary of the Company as a result of the sale, transfer or other
disposition of such securities by Platinum, (y) any change in control of the Company resulting, directly or indirectly, from a
sale of securities by the Company in a public offering registered under the Securities Act, or (z) the consummation of the transactions
contemplated by this Agreement, shall not be deemed to be a Change of Control for purposes of this Agreement.

 

Section
5.2          Default Remedies

 

Upon
the occurrence and during the continuance of an Event of Default (other than an event described in Section 5.1(f) or Section
5.1(g) above), (i) on and after the Effective Date, Platinum, as agent for the Lenders, may declare the Exchange Notes to
be due and payable, and thereupon, the principal of the Exchange Notes, together with accrued interest thereon and all fees in
connection therewith, shall become due and payable immediately, and (ii) Platinum, as agent for the Lenders, may immediately exercise
any right, power or remedy permitted to it by law or any provision of this Agreement, in each case, without any presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived by the Company. Upon the occurrence of an Event
of Default described in Section 5.1(f) or Section 5.1(g) above on and after the Effective Date, the principal of
the Exchange Notes, together with accrued interest thereon and all fees in connection therewith, shall automatically become due
and payable without any presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by
the Company.

 

    	-25-

    	 

    

 

ARTICLE
VI 

CERTIFICATE
LEGEND

 

Section
6.1          Legend.

 

Each
certificate representing the Securities shall be stamped or otherwise imprinted with a legend substantially in the following form
(in addition to any legend required by applicable state securities or “blue sky” laws):

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR URIGEN PHARMACEUTICALS, INC.
SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS
OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

 

The
Company agrees to issue or reissue certificates representing any of the Conversion and Exercise Shares, without the legend set
forth above if at such time, prior to making any transfer of any such Conversion and Exercise Shares, such holder thereof shall
give written notice to the Company describing the manner and terms of such transfer and removal as the Company may reasonably
request, and (x) such Conversion and Exercise Shares have been registered for sale under the Securities Act and the holder is
selling such shares and is complying with its prospectus delivery requirement under the Securities Act, (y) the holder is selling
such Conversion and Exercise Shares in compliance with the provisions of Rule 144 or (z) the provisions of paragraph (b)(1)(i)
of Rule 144 apply to such Conversion and Exercise Shares.

 

ARTICLE
VII 

INDEMNIFICATION

 

Section
7.1          General Indemnity.

 

The
Company agrees to indemnify and hold harmless the Lenders (and their directors, managers, members, officers, affiliates, agents,
successors and assigns) from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements) incurred by the Lenders as a result of any inaccuracy
in or breach of the representations, warranties or covenants made by the Company and/or any Subsidiary of the Company herein and
in any other Transaction Document.

 

    	-26-

    	 

    

 

Section
7.2          Indemnification Procedure.

 

Any
party entitled to indemnification under this ARTICLE VII (an “indemnified party”) will give written notice
to the indemnifying party of any matter giving rise to a claim for indemnification; provided, that the failure of any party
entitled to indemnification hereunder to give notice as provided herein shall not relieve the indemnifying party of its obligations
under this ARTICLE VII except to the extent that the indemnifying party is actually prejudiced by such failure to give
notice. In case any such action, proceeding or claim is brought against an indemnified party in respect of which indemnification
is sought hereunder, the indemnifying party shall be entitled to participate in and, unless in the reasonable judgment of the
indemnifying party a conflict of interest between it and the indemnified party exists with respect to such action, proceeding
or claim (in which case the indemnifying party shall be responsible for the reasonable fees and expenses of one separate counsel
for the indemnified parties), to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. In
the event that the indemnifying party advises an indemnified party that it will contest such a claim for indemnification hereunder,
or fails, within thirty (30) days of receipt of any indemnification notice to notify, in writing, such person of its election
to defend, settle or compromise, at its sole cost and expense, any action, proceeding or claim (or discontinues its defense at
any time after it commences such defense), then the indemnified party may, at its option, defend, settle or otherwise compromise
or pay such action or claim. In any event, unless and until the indemnifying party elects in writing to assume and does so assume
the defense of any such claim, proceeding or action, the indemnified party’s costs and expenses arising out of the defense,
settlement or compromise of any such action, claim or proceeding shall be losses subject to indemnification hereunder. The indemnified
party shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or claim
by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the indemnified
party which relates to such action or claim. The indemnifying party shall keep the indemnified party fully apprised at all times
as to the status of the defense or any settlement negotiations with respect thereto. If the indemnifying party elects to defend
any such action or claim, then the indemnified party shall be entitled to participate in such defense with counsel of its choice
at its sole cost and expense. The indemnifying party shall not be liable for any settlement of any action, claim or proceeding
effected without its prior written consent. Notwithstanding anything in this ARTICLE VII to the contrary, the indemnifying
party shall not, without the indemnified party’s prior written consent, settle or compromise any claim or consent to entry
of any judgment in respect thereof which imposes any future obligation on the indemnified party or which does not include, as
an unconditional term thereof, the giving by the claimant or the plaintiff to the indemnified party of a release from all liability
in respect of such claim. The indemnification obligations to defend the indemnified party required by this ARTICLE VII
shall be made by periodic payments of the amount thereof during the course of investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred, so long as the indemnified party shall refund such moneys if it is
ultimately determined by a court of competent jurisdiction that such party was not entitled to indemnification. The indemnity
agreements contained herein shall be in addition to (a) any cause of action or similar rights of the indemnified party against
the indemnifying party or others, and (b) any liabilities to which the indemnifying party may be subject pursuant to the law.

 

    	-27-

    	 

    

 

ARTICLE
VIII 

MISCELLANEOUS

 

Section
8.1       Fees and Expenses. 

 

Each
party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses,
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement; provided,
however, that the Company shall pay all actual and reasonable attorneys’ fees and expenses (including disbursements
and out-of-pocket expenses) incurred by Platinum in connection with (i) the preparation, negotiation, execution and delivery of
the Transaction Documents and the transactions contemplated thereunder, which payment shall be made on the Closing Date (plus
disbursements and out-of-pocket expenses), and (ii) any amendments, modifications or waivers of this Agreement or any of the other
Transaction Documents. In addition, the Company shall pay all reasonable fees and expenses incurred the Lenders in connection
with the enforcement of this Agreement or any of the other Transaction Documents, including, without limitation, all reasonable
attorneys’ fees and expenses.

 

Section
8.2       Specific Performance; Consent to Jurisdiction; Venue. 

 

(a)
       The parties acknowledge and agree that irreparable damage would occur in the event that
any of the provisions of this Agreement or the other Transaction Documents were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions
to prevent or cure breaches of the provisions of this Agreement or the other Transaction Documents and to enforce specifically
the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by
law or equity.

 

(b)
       The parties agree that venue for any dispute arising under this Agreement will lie exclusively
in the state or federal courts located in New York County, New York, and the parties irrevocably waive any right to raise forum
non conveniens or any other argument that New York is not the proper venue. The parties irrevocably consent to personal jurisdiction
in the state and federal courts of the state of New York. The parties consent to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agree
that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 8.2
shall affect or limit any right to serve process in any other manner permitted by law. The parties hereby agree that the prevailing
party in any suit, action or proceeding arising out of or relating to the Securities, this Agreement or the other Transaction
Documents, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party. The parties hereby waive
all rights to a trial by jury.

 

Section
8.3       Entire Agreement; Amendment. 

 

This
Agreement and the Transaction Documents contain the entire understanding and agreement of the parties with respect to the matters
covered hereby and, except as specifically set forth herein or in the other Transaction Documents, neither the Company, nor the
Lenders make any representation, warranty, covenant or undertaking with respect to such matters, and they supersede all prior
understandings and agreements with respect to said subject matter, all of which are merged herein. No provision of this Agreement
may be amended other than by a written instrument signed by the Company and Platinum.

 

    	-28-

    	 

    

 

Section
8.4       Notices. 

 

Any
notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall
be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of
such mailing, whichever shall first occur. The addresses for such communications shall be:

 

	If to the Company:	Urigen Pharmaceuticals, Inc.
	 	501 Silverside Road
	 	PMB #95
	 	Wilmington, DE 19809
	 	Fax No.: (925) 280-2861
	 	 
	with copies (which copies	 
	shall not constitute notice	 
	to the Company) to:	Pryor Cashman LLP
	 	7 Times Square
	 	New York, NY 10036
	 	Fax: (212) 798-6374
	 	Attn: Lawrence A. Spector
	 	 
	If to a Lender:	To the address set forth on the signature pages hereto.

 

Any
party hereto may from time to time change its address for notices by giving written notice of such changed address to the other
party hereto.

 

Section
8.5       Waivers.

 

No
waiver by any party 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 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 accruing to it thereafter.

 

    	-29-

    	 

    

 

Section
8.6       Headings.

 

The
article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement
for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.

 

Section
8.7       Successors and Assigns.

 

This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Subject to the terms
of this Agreement and applicable law, the Lenders may assign the Securities sold to them hereunder, and their respective rights
under this Agreement and the other Transaction Documents, and any other rights hereto and thereto, without the consent of the
Company. The Company may not assign its rights and obligations hereunder or under any other Transaction Document.

 

Section
8.8       No Third Party Beneficiaries.

 

This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not for
the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section
8.9       Governing Law.

 

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

 

Section
8.10     Survival.

 

The
representations and warranties of the Company shall survive the execution and delivery hereof and the closing of the transactions
contemplated hereby until the expiration of the term of the Warrants and payment in full of the Exchange Notes and the Bridge
Note, except the agreements and covenants of the Company set forth in ARTICLE I, ARTICLE III, ARTICLE VI,
ARTICLE VII and ARTICLE VIII of this Agreement shall survive indefinitely.

 

Section
8.11     Counterparts.

 

This
Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument
and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart.

 

    	-30-

    	 

    

 

Section
8.12     Severability.

 

The
provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any
one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision
or part of a provision of this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable
to the maximum extent possible.

 

Section
8.13     Further Assurances.

 

From
and after the date of this Agreement, upon the request of any party hereto, the Company and the Lenders shall execute and deliver
such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of this Agreement and the other Transaction Documents.

 

Section
8.14     Several Obligations.

 

The
Company acknowledges that the obligations of Platinum and each other Lender under the Transaction Documents are several and not
joint, and none of Platinum or any other Lender shall be responsible in any way for the performance of the obligations of any
other party under the Transaction Documents. The parties acknowledge that the decision of each of Platinum and each other Lender
to enter into and consummate the transactions hereunder has been made by such party independently of Platinum and each other Lender
and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties,
liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may have been made or
given by Platinum or any other Lender or by any agent or employee of Platinum or any other Lender, and none of Platinum nor any
other Lender (or any of their respective agents or employees) shall have any liability to any other Lender (or any other person)
relating to or arising from any such information, materials, statements or opinions. The Company acknowledges that nothing contained
in any Transaction Document, and no action taken by Platinum or any other Lender pursuant hereto or thereto shall be deemed to
constitute Platinum and the other Lenders as a partnership, an association, a joint venture or any other kind of entity, or create
a presumption that such parties are in any way acting in concert or as a group with respect to such obligations or the transactions
contemplated by the Transaction Documents.

 

[remainder
of page intentionally left blank; signature pages follow]

 

    	-31-

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Exchange and Waiver Agreement to be duly executed by their respective
authorized officers as of the date first above written.

 

	 	URIGEN PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ Dan Vickery 
	 	 	Name: Dan Vickery 
	 	 	Title: Chairman 

 

	Accepted and agreed to by the undersigned	 
	Guarantor(s) this 25th day of April, 2014:	 
	 	 
	URIGEN N.A., INC.	 
	 	 	 
	By:	/s/ Dan Vickery 	 
	 	Name: Dan Vickery 	 
	 	Title: Chairman 	 

 

    	-i-

    	 

    

 

[Signature
Pages of Lenders]

 

	 	 
	 	[Name of Lender]

	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 

	 	Address for Notice:
	 	 	 
	 	 	 
	 	 	 

 

    	-ii-

    	 

    

 

Annex
A

 

Surrendered
Notes

 

	Lender	 	Notes/Outstanding
    Amount
	 	 	 	 
	Platinum-Montaur Life Sciences, LLC	 	·	10% senior convertible promissory note,
    dated March 3, 2011 in the principal amount of $461,195 issued to Platinum, of which $603,140 is due and owing as of March
    31, 2014.
	 	 	·	10% senior convertible promissory note,
    dated March 3, 2011 in the principal amount of $150,000 issued to Platinum, of which $196,167 is due and owing as of March
    31, 2014.
	 	 	·	10% senior convertible promissory note,
dated October 5, 2011 Platinum in the principal amount of $300,000 issued to Platinum, of which $374,527 is due and owing as of
March 31, 2014. 

	 	 	·	10% convertible promissory note, dated July 3, 2013, in the principal amount of $390,000 issued to Platinum,
    of which $419,250 is due and owing as of March 31, 2014.
	XXXXXXXXXX	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $42,500 issued to the XXXXX, of which $45,688 is due and owing as of March 31, 2014.
	XXXXXXXXXX	 	·	10% senior convertible promissory notes,
    dated November 1, 2011, in the aggregate principal amount of $50,000 issued to XXXXX, of which $62,083 is due and owing as
    of March 31, 2014.
	 	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $10,000 issued to XXXXX, of which $10,750 is due and owing as of March 31, 2014.

 

    	-iii-

    	 

    

 

	XXXXXXXXXX	 	·	10% senior convertible promissory
    notes, dated November 1, 2011, in the aggregate principal amount of $50,000 issued to Gregg Palmer, of which $62,083 is due
    and owing as of March 31, 2014.
	 	 	·	10% convertible promissory note, dated
    October 3, 2013, in the aggregate principal amount of $20,000 issued to Gregg Palmer, of which $21,000 is due and owing as
    of March 31, 2014.
	Lowell Parsons	 	·	10% senior convertible promissory notes,
    dated November 1, 2011, in the aggregate principal amount of $25,000 issued to Lowell Parsons, of which $31,042 is due and
    owing as of March 31, 2014.
	 	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $152,500 issued to Lowell Parsons, of which $163,938 is due and owing as of March
    31, 2014.
	XXXXXXXXXX	 	·	10% senior convertible promissory notes,
    dated November 1, 2011, in the aggregate principal amount of $10,000 issued to XXXXX, of which $12,417 is due and owing as
    of March 31, 2014.
	 	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $10,000 issued to XXXXX, of which $10,750 is due and owing as of March 31, 2014.
	XXXXXXXXXX	 	·	10% senior convertible promissory notes,
    dated November 1, 2011, in the aggregate principal amount of $10,000 issued to XXXXX, of which $12,417 is due and owing as
    of March 31, 2014.
	 	 	·	10% convertible promissory note, dated
    October 3, 2013, in the aggregate principal amount of $10,000 issued to XXXXX, of which $10,500 is due and owing as of March
    31, 2014.

 

    	-iv-

    	 

    

 

	Dan Vickery	 	·	10% convertible promissory
    note, dated October 3, 2013, in the aggregate principal amount of $10,000 issued to Dan Vickery, of which $10,500 is due and
    owing as of March 31, 2014.
	 	 	·	10% senior convertible promissory notes,
    dated November 1, 2011, in the aggregate principal amount of $25,000 issued to Dan Vickery, of which $31,042 is due and owing
    as of March 31, 2014.
	XXXXXXXXXX	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $25,000 issued to XXXXX, of which $26,875 is due and owing as of March 31, 2014.
	XXXXXXXXXX	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $25,000 issued to XXXXX, of which $26,875 is due and owing as of March 31, 2014.
	EGB Advisors, LLC	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $10,000 issued to EGB Advisors, LLC, of which $10,750 is due and owing as of March
    31, 2014.
	XXXXXXXXXX	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $10,000 issued to XXXXX, of which $10,750 is due and owing as of March 31, 2014.
	PXXXXXXXXXX	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $40,000 issued to XXXXX, of which $43,000 is due and owing as of March 31, 2014.
	Kellogg Parsons	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $10,000 issued to Kellogg Parsons, of which $10,750 is due and owing as of March
    31, 2014.
	XXXXXXXXXX	 	·	10% convertible promissory note, dated
    July 3, 2013, in the principal amount of $25,000 issued to XXXXX, of which $26,875 is due and owing as of March 31, 2014.

 

    	-v-

    	 

    

 

	XXXXXXXXXX	 	·	10% convertible promissory
    note, dated October 3, 2013, in the aggregate principal amount of $15,000 issued to XXXXX, of which $15,750 is due and owing
    as of March 31, 2014.
	XXXXXXXXXX	 	·	10% convertible promissory note, dated
    October 3, 2013, in the aggregate principal amount of $51,000 issued to XXXXX, of which $53,550 is due and owing as of March
    31, 2014.

 

    	-vi-

    	 

    

 

Annex
B

 

Existing
Preferred Stock

 

210 shares
of Series B Preferred Stock

 

552,941
shares of Series C Preferred Stock

 

    	-vii-

    	 

    

 

Annex
C

 

Warrants

 

(All
share numbers do not reflect any adjustment for the contemplated reverse split)

 

Platinum
Warrants (other than July 2013 Warrants described below)

 

Series
A Warrant to purchase 14,000,000 shares of Common Stock issued to Platinum on or about August 1, 2007.

 

Series
B Warrant to purchase 5,529,410 shares of Common Stock issued to Platinum on or about April 19, 2010.

 

Series
2011 Warrant to purchase 6,111,948 shares of Common Stock issued to Platinum on or about March 3, 2011.

 

Series
2011 Warrant to purchase 3,000,000 shares of Common Stock issued to Platinum on or about October 5, 2011.

 

2011
Warrants (issued to Lenders other than Platinum)

 

Series
2011 Warrant to purchase 500,000 shares of Common Stock issued to XXXXX on or about November 1, 2011.

 

Series
2011 Warrant to purchase 100,000 shares of Common Stock issued to XXXXX on or about November 1, 2011.

 

Series
2011 Warrant to purchase 500,000 shares of Common Stock issued to XXXXX on or about November 1, 2011.

 

Series
2011 Warrant to purchase 250,000 shares of Common Stock issued to C. Lowell Parsons on or about November 1, 2011.

 

Series
2011 Warrant to purchase 100,000 shares of Common Stock issued to XXXXX on or about November 1, 2011.

 

Series
2011 Warrant to purchase 250,000 shares of Common Stock issued to Dan Vickery on or about November 1, 2011.

 

July
2013 Warrants

 

2013
Purchaser Series Warrant to purchase 3,900,000 shares of Common Stock issued to Platinum on or about July 3, 2013.

 

    	-viii-

    	 

    

 

2013
Purchaser Series Warrant to purchase 250,000 shares of Common Stock issued to XXXXX on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 250,000 shares of Common Stock issued to XXXXX on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 100,000 shares of Common Stock issued to XXXXX on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 100,000 shares of Common Stock issued to EGB Advisors, LLC on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 100,000 shares of Common Stock issued to XXXXX on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 425,000 shares of Common Stock issued to the XXXXX on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 400,000 shares of Common Stock issued to XXXXX on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 1,525,000 shares of Common Stock issued to C. Lowell Parsons on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 100,000 shares of Common Stock issued to Kellogg Parsons on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 100,000 shares of Common Stock issued to XXXXX on or about July 3, 2013.

 

2013
Purchaser Series Warrant to purchase 250,000 shares of Common Stock issued to XXXXX on or about July 3, 2013.

 

October
2013 Warrants

 

2013
Purchaser Series Warrant to purchase 510,000 shares of Common Stock issued to XXXXX on or about October 3, 2013.

 

2013
Purchaser Series Warrant to purchase 100,000 shares of Common Stock issued to Dan Vickery on or about October 3, 2013.

 

2013
Purchaser Series Warrant to purchase 200,000 shares of Common Stock issued to XXXXX on or about October 3, 2013.

 

2013
Purchaser Series Warrant to purchase 100,000 shares of Common Stock issued to XXXXX on or about October 3, 2013.

 

    	-ix-

    	 

    

 

2013
Purchaser Series Warrant to purchase 150,000 shares of Common Stock issued to XXXXX on or about October 3, 2013.

 

Warrants
Issued to C. Lowell Parsons Pursuant to Consulting Agreement

 

Warrant
to purchase 1,250,000 shares of Common Stock issued to C. Lowell Parsons on or about July 26, 2012

 

Warrant
to purchase 1,250,000 shares of Common Stock issued to C. Lowell Parsons on or about March 13, 2014

 

    	-x-

    	 

    

 

Annex
D

 

Existing
Defaults

 

	1.		Failure
                                         to pay principal and interest when due under the Existing Notes

	2.		Failure
                                         to maintain registration of the Common Stock with the Commission

	3.		Failure
                                         to maintain quotation of the Common Stock on the OTC Bulletin Board

	4.		Failure
                                         to deliver periodic reports

	5.		Failure
                                         to comply with law relating to its failure to comply with obligations under Section 12(g)
                                         of the Exchange Act

	6.		Failure
                                         to disclose material information pursuant to Form 8-K

	7.		Occurrence
                                         of defaults or events of defaults in respect of other Indebtedness

 

    	-xi-

    	 

    

 

Exhibit
A

 

Exchange
Note Form

 

    	-xii-

    	 

    

 

Exhibit
B

 

Certificate
of Designation

 

    	-xiii-

    	 

    

 

Exhibit
C

 

Bridge
Note

 

    	-xiv-

    	 

    

 

Exhibit
D

 

Guaranty

 

    	-xv-

    	 

    

 

Exhibit
E

 

Security
Agreement

 

    	-xvi-

    	 

    

 

Exhibit
F

 

Registration
Rights Agreement

 

    	-xvii-

    	 

    

 

Exhibit
G

 

Amended
and Restated Intercreditor Agreement

 

    	-xviii-

    	 

    

 

DISCLOSURE
SCHEDULES TO EXCHANGE AND WAIVER AGREEMENT

 

Introduction
to Schedules

 

Reference
is made to the Exchange and Waiver Agreement (the “Agreement”) made and entered into as of April __, 2014 by
and among Urigen Pharmaceuticals, Inc., a Delaware corporation (the “Company”), Platinum-Montaur Life Sciences,
LLC (“Platinum”), and each of the other lenders named therein (each, an “Other Lender” and,
collectively, the “Other Lenders”, and, together with Platinum, the “Lenders”). Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to them in the Agreement.

 

This
Schedule of Exceptions is qualified in its entirety by reference to specific provisions of the Agreement, and is not intended
to constitute, and shall not be construed as constituting, representations or warranties of the Company or any other person except
as and to the extent provided in the Agreement.

 

Any
disclosure made in one Schedule is deemed to be a disclosure in each other Schedule to which it reasonably relates, whether or
not specifically mentioned in such other Schedule. The disclosure of any matter in any Schedule shall not be deemed to constitute
an admission by the Company or to otherwise imply that any such matter is material to the Company for the purposes of the Agreement.

 

Matters
reflected in these Schedules are not necessarily limited to matters required by the Agreement to be reflected in these Schedules.
Any such additional matters are set forth for information purposes and do not necessarily include other matters of a similar nature.

 

Headings
have been inserted in this Schedule of Exceptions for convenience of referral only and shall to no extent have the effect of amending
or changing the express description of the sections as set forth in the Agreement.

 

    	-xix-

    	 

    

 

Schedule
1.4 – Existing Securities Purchase Agreements 

 

	 	·	Series B Convertible Preferred Stock Purchase Agreement, dated as of July 31, 2007, between the Company and Platinum

 

	 	·	Note Purchase Agreement, dated as of January 9, 2009, by and among the Company and Platinum, as amended from time to time

 

	 	·	Note and Warrant Purchase Agreement, dated as of November 1, 2011, by and among the Company and the Other Lenders identified on the signature pages attached thereto

 

	 	·	Note and Warrant Purchase Agreement, dated as of July 3, and October 3, 2013, by and among the Company, Platinum and the Other Lenders identified on the signature pages thereto

 

    	-xx-

    	 

    

 

Schedule
1.6(a) – Shares of Common Stock and Series D Convertible Preferred Stock to be Issued to the Lenders 

 

Shares
to be issued to each of the Other Lenders:

 

	 	 	Investment	 	 	 	 	Total Penalty	 	 	1-for-5,000	 	 	Fractional Share	 	 	 	 
	LENDER	 	Date	 	Principal	 	 	Shares	 	 	Reverse Split	 	 	Allowance	 	 	Post-Split Total	 
	XXXXX	 	10/11	 	$	50,000	 	 	 	4,775,582	 	 	 	955	 	 	$	30.34	 	 	 	1,131	 
	 	7/13	 	$	10,000	 	 	 	884,104	 	 	 	176	 	 	$	213.82	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	10/11	 	$	10,000	 	 	 	955,117	 	 	 	191	 	 	$	6.08	 	 	 	365	 
	 	10/13	 	$	10,000	 	 	 	873,452	 	 	 	174	 	 	$	179.86	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	10/11	 	$	50,000	 	 	 	4,775,582	 	 	 	955	 	 	$	30,34	 	 	 	1,304	 
	 	10/13	 	$	20,000	 	 	 	1,746,905	 	 	 	349	 	 	$	99.23	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	C. Lowell

Parsons	 	10/11	 	$	25,000	 	 	 	2,387,791	 	 	 	477	 	 	$	145.43	 	 	 	3,173	 
	 	7/13	 	$	152,500	 	 	 	13,482,588	 	 	 	2,696	 	 	$	134.83	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	10/11	 	$	10,000	 	 	 	955,117	 	 	 	191	 	 	$	6.08	 	 	 	367	 
	 	7/13	 	$	10,000	 	 	 	884,104	 	 	 	176	 	 	$	213.82	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dan Vickery	 	10/11	 	$	25,000	 	 	 	2,387,791	 	 	 	477	 	 	$	145.43	 	 	 	651	 
	 	10/13	 	$	10,000	 	 	 	873,452	 	 	 	174	 	 	$	179.86	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	7/13	 	$	25,000	 	 	 	2,210,260	 	 	 	442	 	 	$	13.56	 	 	 	442	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	7/13	 	$	25,000	 	 	 	2,210,260	 	 	 	442	 	 	$	13.56	 	 	 	442	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EGB Advisors, LLC	 	7/13	 	$	10,000	 	 	 	884,104	 	 	 	176	 	 	$	213.82	 	 	 	176	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	7/13	 	$	10,000	 	 	 	884,104	 	 	 	176	 	 	$	213.82	 	 	 	176	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	7/13	 	$	42,500	 	 	 	3,757,443	 	 	 	751	 	 	$	127.25	 	 	 	751	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	7/13	 	$	40,000	 	 	 	3,536,416	 	 	 	707	 	 	$	73.80	 	 	 	707	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kellogg Parsons	 	7/13	 	$	10,000	 	 	 	884,104	 	 	 	176	 	 	$	213.82	 	 	 	176	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	7/13	 	$	25,000	 	 	 	2,210,260	 	 	 	442	 	 	$	13.56	 	 	 	442	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	10/13	 	$	51,000	 	 	 	4,454,607	 	 	 	890	 	 	$	240.00	 	 	 	890	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	10/13	 	$	15,000	 	 	 	1,310,178	 	 	 	262	 	 	$	9.29	 	 	 	262	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total:	 	 	 	$	636,000	 	 	 	57,323,321	 	 	 	11,455	 	 	$	2,487.26	 	 	 	11,455 CS	 

 

    	-xxi-

    	 

    

 

Shares
to be issued to Platinum Montaur:

 

	 	 	Investment	 	 	 	 	Total
    Penalty	 	 	1-for-5,000	 	 	Fractional
    Share	 	 	Post-Split
    D
	LENDER	 	Date	 	Principal	 	 	Shares	 	 	Reverse
    Split	 	 	Allowance	 	 	Total
	Platinum-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Montaur Life	 	10/11	 	$	300,000	 	 	 	28,739,877	 	 	 	5,747	 	 	$ 	254.11	 	 	5.747 Series D
	Sciences, LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Platinum-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Montaur Life	 	7/13	 	$	390,000	 	 	 	34,480,061	 	 	 	6,896	 	 	$ 	3.16	 	 	6.896 Series D
	Sciences, LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Platinum-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Montaur Life	 	03/11	 	$	150,000	 	 	 	14,749,273	 	 	 	2,949	 	 	 $	222.62	 	 	2.949 Series D
	Sciences, LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Platinum-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Montaur Life	 	03/11	 	$	461,195	 	 	 	45,348,585	 	 	 	9,069	 	 	 $	186.77	 	 	9.069 Series D
	Sciences, LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total:	 	 	 	$	1,301,195	 	 	 	123,317,796	 	 	 	24,661	 	 	 $	666.66	 	 	24.661 Series
    D

 

    	-xxii-

    	 

    

 

Schedule
2.1(a) – Authorization; Enforcement 

 

The
issuance of the Exchange Notes, the Bridge Note, the Consideration Shares and the Closing of the transactions contemplated by
this Agreement is subject to Stockholder Approval and the filing of the Authorized Shares Amendment.

 

    	-xxiii-

    	 

    

 

Schedule
2.1 (b) – Capitalization 

 

	 	 	 	 	 	 	 	 	Common
    Share	 	 	 	 
	 	 	 	 	 	 	 	 	Equivalent
    Including	 	 	 	 
	 	 	 	 	 	 	 	 	Interest/Dividends	 	 	 	 
	 	 	 	 	 	Common
    Share	 	 	Payable	 	 	 	 
	Holder	 	Value	 	 	Equivalent	 	 	(as
    of March 31, 2014)	 	 	Percentage	 
	Platinum-Montaur Total	 	 	 	 	 	 	72,082,716	 	 	 	79,386,749	 	 	40.6	%
	Series B Shares	 	 	210	 	 	 	21,000,000	 	 	 	24,471,303	 	 	 	 
	Series C Shares	 	 	5,529,410	 	 	 	5,529,410	 	 	 	6,443,244	 	 	 	 
	2011 Note 1	 	$	461,195	 	 	 	4,611,948	 	 	 	6,031,404	 	 	 	 
	2011 Note 2	 	$	150,000	 	 	 	1,500,000	 	 	 	1,961,667	 	 	 	 
	2011 Note 3	 	$	300,000	 	 	 	3,000,000	 	 	 	3,745,274	 	 	 	 
	2013 Note	 	$	390,000	 	 	 	3,900,000	 	 	 	4,192,500	 	 	 	 
	A Warrant	 	 	14,000,000	 	 	 	14,000,000	 	 	 	14,000,000	 	 	 	 
	B Warrant	 	 	5,529,410	 	 	 	5,529,410	 	 	 	5,529,410	 	 	 	 
	2011 Warrant 1	 	 	6,111,948	 	 	 	6,111,948	 	 	 	6,111,948	 	 	 	 
	2011 Warrant 2	 	 	3,000,000	 	 	 	3,000,000	 	 	 	3,000,000	 	 	 	 
	2013 Warrant	 	 	3,900,000	 	 	 	3,900,000	 	 	 	3,900,000	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intercreditor Excluding PM Total	 	 	 	 	 	 	12,720,000	 	 	 	13,243,833	 	 	6.9	%
	2011 Note	 	$	170,000	 	 	 	1,700,000	 	 	 	2,110,833	 	 	 	 
	2013 Note	 	$	466,000	 	 	 	4,660,000	 	 	 	4,983,000	 	 	 	 
	2011 Warrant	 	 	1,700,000	 	 	 	1,700,000	 	 	 	1,700,000	 	 	 	 
	2013 Warrant	 	 	4,660,000	 	 	 	4,660,000	 	 	 	4,660,000	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Warrants (Excluding Platinum/Intercreditors)	 	 	7,670,000	 	 	 	7,670,000	 	 	 	7,670,000	 	 	3.9	%
	Street Shares	 	 	95,225,806	 	 	 	95,225,806	 	 	 	95,225,806	 	 	48.7	%

 

    	-xxiv-

    	 

    

 

Schedule
2.1(c) – Issuance of Securities

 

The
numbers below give effect to the one-for-5,000 reverse split of the Common Stock to be effected upon receipt of Stockholder Approval,
as contemplated by the Agreement.

 

	 	 	Fully-Diluted Shares	 	 	 	 
	 	 	(after giving effect to the 1-	 	 	 	 
	LENDER	 	for-5,000 Reverse Split)	 	 	Percentage	 
	Platinum-Montaur	 	 	106,163	 	 	 	75	%
	XXXXX	 	 	1,397	 	 	 	1.0	%
	C. Lowell Parsons	 	 	4,812	 	 	 	3.4	%
	XXXXX	 	 	546	 	 	 	0.4	%
	XXXXX	 	 	1,099	 	 	 	0.8	%
	Dan Vickery	 	 	804	 	 	 	0.6	%
	XXXXX	 	 	927	 	 	 	0.7	%
	EGB Advisors, LLC	 	 	218	 	 	 	0.2	%
	XXXXX	 	 	1,610	 	 	 	1.1	%
	XXXXX	 	 	453	 	 	 	0.3	%
	Kellogg Parsons	 	 	218	 	 	 	0.2	%
	XXXXX	 	 	546	 	 	 	0.4	%
	XXXXX	 	 	218	 	 	 	0.2	%
	XXXXX	 	 	451	 	 	 	0.3	%
	XXXXX	 	 	873	 	 	 	0.6	%
	XXXXX	 	 	324	 	 	 	0.2	%
	XXXXX	 	 	546	 	 	 	0.4	%
	Total:	 	 	121,203	 	 	 	86	%

 

    	-xxv-

    	 

    

 

Schedule
2.1(f) – Ratification and Confirmation 

 

Liquidity/Cash
Position: The Company expects to receive a report from its independent registered public accounting firm regarding the consolidated
financial statements for the fiscal years ended June 30, 2012 and 2013 that includes an explanatory paragraph stating that the
financial statements have been prepared assuming the Company will continue as a going concern

 

Existing
Defaults: Please see the Existing Defaults described on Annex D to the Exchange Agreement regarding the various defaults
under the Existing Related Documents, including, without limitation, defaults with respect to the payment of the Existing Notes.
The Company and the Lenders are entering into the Exchange Agreement to provide for the forbearance and waiver of the Existing
Defaults pursuant to the terms of the Exchange Agreement. To date, none of the Lenders has declared a default under any of the
Existing Notes or Existing Preferred Stock.

 

USCD:
The UCSD has commenced an audit of payments by the Company under its license. The parties are negotiating the royalty payable
to UCSD under the agreement. There can be no assurance as to the final outcome of the audit or the royalty negotiations.

 

Payroll/Income
Taxes: See Schedule 3.16.

 

BioEnsemble,
Ltd.: On December 2, 2010, the Company entered into a Consulting Agreement with BioEnsemble, Ltd., (“BEL”), an
entity controlled by Dr. Dan Vickery, the Company’s Chairman, pursuant to which BEL provides business development services
to the Company. On June 30, 2011, the Company entered into an Amended and Restated Consulting Agreement with BEL, pursuant to
which BEL agreed to provide general management services to the Company, in addition to the services set forth in the December
2, 2010 consulting agreement. The payment terms in the June 30, 2011 agreement were amended on October 4, 2012. The terms of the
agreements with BEL continue unless terminated or amended and may be terminated by either party upon thirty days’ notice.
The agreement provides for compensation of up to $20,000 per month payable 50% in cash and 50% in shares of common stock of the
Company derived by using a price of no less than $0.10 per share. The October 4, 2012 amendment modified the monthly fee and provided
for a tiered schedule depending on hours worked, ranging from no payment for zero to 40 hours per month to $30,000 in any month
in which more than 151 are worked. As of March 31, 2014, $15,000 was payable in cash and 450,000 shares were owed to BEL pursuant
to the agreement.

 

C.
Lowell Parsons:

On
July 26, 2012 the Company entered into a consulting agreement with C. Lowell Parsons, M.D. pursuant to which Dr. Parsons has been
providing certain clinical and other development services, including clinical design, regulatory interactions, and formulation
development to the Company as requested by management from time to time. As compensation for services rendered subsequent to July
26, 2012, Dr. Parsons was entitled to receive warrants to purchase 250,000 shares of common stock at a price of $0.125 per share
in any month during which 80 hours of services were performed. On March 13, 2014, the Board authorized the issuance of 1,250,000
warrants for services performed from October 2013 to February 2014 at an exercise price of $0.125 per share, which warrants have
since been issued.

 

    	-xxvi-

    	 

    

 

On
November 29, 2012 the Company entered into a three year option agreement with C. Lowell Parsons, M.D. The option agreement gives
the Company the exclusive right to acquire and/or license certain intellectual property related to URG101 owned by Dr. Parsons.
$2,400 was paid upon execution of the option agreement. In addition, the Company is obligated to pay all future costs incurred
in connection with the licensed technology. If the Company exercises its option in the future, it will pay Dr. Parsons an additional
$10,000 for prior costs incurred. Upon exercise, the parties will negotiate the terms of the license agreement, which shall provide
for a royalty not to exceed 1.5% of net sales derived from the licensed technology. As of March 31, 2014, the Company has not
yet exercised its option under the agreement.

 

On
December 12, 2013, the Company entered into a three year option agreement with C. Lowell Parsons and Michael Goldberg. The option
agreement gives the Company the exclusive right to acquire and/or license certain intellectual property rights related to a new
product jointly owned by Dr. Parsons and Dr. Goldberg. $25,000 was due to third party attorneys upon execution of the option agreement
for outstanding legal costs, and $10,000 was due to Dr. Parsons for prior costs incurred. In addition, the Company is obligated
to pay all future costs incurred in connection with the licensed technology upon exercise of the option. Upon exercise, a $50,000
upfront licensing fee will be due, and the parties will negotiate the terms of the license agreement, which shall provide for
a royalty not to exceed 5% of net sales derived from the licensed technology. The Company has not exercised its option under this
agreement as of March 31, 2014.

 

July
2013 Purchase Agreement: The Company issued the following notes, which remain outstanding, as a result of the Note and Warrant
Purchase Agreement dated as of July 3, 2013:

 

	 	 	 	 	 	 	 	 	 	 	Original	 
	 	 	 	 	 	 	 	 	 	 	Principal	 
	Holder	 	Maturity Date	 	Interest Rate	 	 	Conversion Price	 	 	Amount	 
	Platinum-Montaur	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	390,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	25,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	25,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 
	EGB Advisors	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	42,500	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	40,000	 
	Lowell Parsons	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	152,500	 
	Kellogg Parsons	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	25,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	51,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	20,000	 
	XXXXX	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	15,000	 
	Dan Vickery	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 

 

    	-xxvii-

    	 

    

 

Schedule
3.16 – Taxes and Claims 

 

Payroll
Taxes: The Company had accrued aggregate expenses as of June 30, 2013 of approximately $2.4 million, which includes approximately
$864 in unpaid payroll taxes, penalties and interest related to payroll for prior years. These payroll tax liabilities relate
to both stock and cash compensation. The Company will continue to accrue interest on these amounts until fully resolved. The Company
is exploring the process for approaching the tax authorities to settle the tax liability.

 

Income
Taxes: The Company has filed estimated tax returns with the I.R.S. and the California Franchise Tax Board for the period ended
June 30, 2011 based on the best estimates available, and will amend such returns for actual results after completion of the audits
of the financial statements for the year ended June 30, 2011. Extension requests have been filed for the years ended June 30,
2012 and 2013. The Company expects to file those returns by June 2014 No tax liability will result because the Company has paid
the minimum California Franchise tax due and because the Company is in a loss position.

 

    	-xxviii-

    	 

    

 

Schedule
3.27 – Indebtedness to Affiliates 

 

Convertible
Notes

 

	 	 	 	 	 	 	 	 	 	 	Original	 
	 	 	 	 	 	 	 	 	 	 	Principal	 
	Holder	 	Maturity Date	 	Interest Rate	 	 	Conversion Price	 	 	Amount	 
	Lowell Parsons	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	152,500	 
	Dan Vickery	 	July 3, 2015	 	 	10	%	 	$	0.10	 	 	$	10,000	 
	Lowell Parsons	 	11/1/2013	 	 	10	%	 	$	0.10	 	 	$	25,000	 
	Dan Vickery	 	11/1/2013	 	 	10	%	 	$	0.10	 	 	$	25,000	 

 

Other
Notes

 

	 	 	Original	 	 	 
	 	 	Principal	 	 	 
	Payee	 	Amount	 	 	Comments
	C Lowell Parsons:	 	$	31,373	 	 	Note due Sept. 2013

 

Please
see the items set forth on Schedule 2.1(i), Schedule 2.1(k) and Schedule 2.1(v) to the Note and Warrant Purchase
Agreement dated July 3, 2013.

 

    	-xxix-Exhibit 10.3

 

SECURITY AGREEMENT 

 

This SECURITY AGREEMENT, dated
as of June 23, 2014 (this “Agreement”), is among Urigen Pharmaceuticals, Inc., a Delaware corporation (the
“Company”), Urigen N.A., Inc., a Delaware corporation (the “Guarantor” and together with
the Company, the “Debtors”), and Platinum-Montaur Life Sciences, LLC, a Delaware limited liability company
(together with its successors and assigns, the “Secured Party”), as secured party for itself and the other
Lenders (as defined below).

 

WHEREAS, the Secured Party, the other lenders named therein (together with the Secured Party, the “Lenders”)
and the Company are parties to an Exchange and Waiver Agreement, dated as of April 25, 2014 (the “Exchange Agreement”),
pursuant to which, among other things, (i) the Lenders agreed to forbear from exercising certain remedies in respect of defaults
under the Surrendered Notes (as defined in the Exchange Agreement) and (ii) the Lenders agreed to surrender and exchange the Surrendered
Notes for Secured Convertible Promissory Notes, to be issued by the Company in the aggregate principal amount of $2,347,050.00
(the “Convertible Notes”);

 

WHEREAS, in connection with the
transactions contemplated by the Exchange Agreement, the Secured Party has agreed to extend the Bridge Loan (as defined in the
Exchange Agreement), which shall be evidenced by the Bridge Note (such Bridge Note, together with the Convertible Notes, collectively
the “Secured Notes”);

 

WHEREAS, it is a condition to the
Lenders’ agreement to enter into the Exchange Agreement and grant the forbearance and waivers and consummate the other transactions
set forth therein that the Debtors grant the Secured Party, for the benefit of the Lenders, a first priority security interest
in their assets;

 

WHEREAS, pursuant to a Guaranty,
dated as of the date hereof (the “Guaranty”), the Guarantor has agreed to guarantee and act as surety for payment
of the Secured Notes; and

 

WHEREAS, in order to induce the
Lenders to exchange and surrender the Surrendered Notes for the Secured Note and induce the Secured Party to extend the Bridge
Loan, each Debtor has agreed to execute and deliver to the Secured Party this Agreement and to grant the Secured Party, for the
benefit of the Lenders, a security interest, in certain specified assets of such Debtor to secure the prompt payment, performance
and discharge in full of all of the Company’s obligations under the Secured Notes and the Guarantor’s obligations under
the Guaranty.

 

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:

 

Section 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, whether or not capitalized herein (including the terms “account”, “chattel
paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”,
“investment property”, “letter-of-credit rights”, “proceeds”, “securities” and
“supporting obligations”), shall have the respective meanings given such terms in Article 9 of the UCC.

 

    	 

    	 

    

 

(a)          “Additional Debtor” is defined in Section 4(ii) below. 

 

(b)          “Agreement”
is defined in the recitals hereof.

 

(c)          “Bridge
Loan” is defined in the Exchange Agreement.

 

(d)          “Bridge
Note” is defined in the Exchange Agreement.

 

(e)          “Collateral”
means all assets of the Debtors described below, including the following 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 interest or other property at any time and from time to time acquired,
receivable or otherwise distributed in respect of, or in exchange for, any or all of the Pledged Securities (as defined below):

 

		(i)	All goods, including, without 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, including all materials, work in process and finished goods;

 

		(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, distribution and other agreements, computer software development rights, leases, franchises, customer
lists, quality control procedures, grants and rights, goodwill, and income tax refunds;

 

		(iii)	The IP Collateral;

 

    	-2-

    	 

    

 

		(iv)	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;

 

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

 

		(vi)	All commercial tort claims;

 

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

 

		(viii)	All investment
property;

 

		(ix)	All supporting obligations;

 

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

 

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

 

Notwithstanding the foregoing,
nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes void by operation
of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the extent that such applicable
law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided, however, that
to the extent permitted by applicable law, this Agreement shall create a valid security interest in such asset and, to the extent
permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset. For the avoidance
of doubt, the Collateral shall expressly and specifically exclude that certain license to the URG101 technology that the Company
licensed from the University of California, San Diego, and the Company’s rights thereunder, to the extent Section 9-408 does
not permit such assignment notwithstanding the terms of such license, it being understood that the Secured Party’s interest
in such license shall, to the extent permitted by applicable law, be limited to a valid security interest in the proceeds of such
license.

 

    	-3-

    	 

    

 

(f)           “Company”
is defined in the recitals hereof.

 

(g)          “Debtors”
is defined in the recitals hereof.

 

(h)          “Default
Rate” is defined in Section 9 below. 

 

(i)           “Disclosure
Schedules” is defined in Section 4 below. 

 

(j)           “Exchange
Agreement” is defined in the recitals hereof.

 

(k)          “Guarantor”
is defined in the preamble hereof.

 

(l)           “Guaranty” is defined in the recitals hereof.

 

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

 

(n)          “Intellectual
Property Security Agreement” is defined in  Section 4(p) below.

 

(o)          “IP
Collateral” means all of the Intellectual Property of the Debtors.

 

    	-4-

    	 

    

 

(p)          “Lenders”
is defined in the recitals hereof.

 

(q)          “Lien”
means any lien, security interest, mortgage, encumbrance, right or claim

 

(r)           “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 Secured Party may reasonably request.

 

(s)          “Obligations”
means and includes:

 

		(i)	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, of any Debtor to
any Lender under this Agreement, the Secured Notes, the Exchange Agreement, the Guaranty, the Transaction Documents and any other
instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether
now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether
or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or
incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment
is avoided or recovered directly or indirectly from any Lender as a preference, fraudulent transfer or otherwise, as such obligations
may be amended, supplemented, converted, exchanged or modified from time to time;

 

		(ii)	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, of any Debtor to
the Lenders in respect of the Transaction Documents, in each case, whether now or hereafter existing or acquired, voluntary or
involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others,
whether or not evidenced by a document or instrument, and whether or not from time to time decreased or extinguished and later
increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or
any part of such payment is avoided or recovered directly or indirectly from the Lenders as a preference, fraudulent transfer
or otherwise;

 

		(iii)	the principal of, and interest on, and all fees in connection with the Secured Notes
and the loans extended pursuant thereto;

 

    	-5-

    	 

    

 

		(iv)	any and all other fees, indemnities, costs, obligations and liabilities of the Debtors
from time to time under or in connection with this Agreement, the Secured Notes, the Exchange Agreement, the Guaranty, the Transaction
Documents and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith;
and

 

		(v)	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.

 

(t)           “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).

 

(u)          “Permitted
Liens” means the individual and collective reference to the following: (1) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Debtor contesting
such charges) have been established in accordance with GAAP; and (2) Liens imposed by law which were incurred in the ordinary course
of a Debtor’s business, such as carriers’, warehousemen’s and mechanics' Liens, statutory landlords' Liens, and
other similar Liens arising in the ordinary course of a Debtor’s business, and which (i) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of such Debtor and its consolidated subsidiaries or (ii) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien.

 

(v)          “Pledged
Interests” is defined in Section 4(j) below.

 

(w)         “Pledged
Securities” is defined in Section 4(i) below. 

 

(x)          “Securities
Laws” is defined in Section 10 below. 

 

(y)          “Security
Interest(s)” is defined in Section 2 below. 

 

(z)          “Secured
Notes” is defined in the recitals hereof.

 

(aa)        “Secured
Party” is defined in the recitals hereof.

 

    	-6-

    	 

    

 

(bb)        “Transaction
Documents” is defined in the Exchange Agreement.

 

(cc)        “UCC”
means the Uniform Commercial Code of the State of New York and/or any other applicable law of any state or states which have 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.

 

Section 2 - Grant of Security Interest in Collateral.

 

As an inducement for the Lenders
to extend or maintain credit to the Company as may be evidenced by the Secured 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 Secured Party, for the benefit of the Lenders, a security interest in and to, a lien upon,
and a right of set-off against, all of its respective right, title and interest of whatsoever kind and nature in and to the Collateral
(a “Security Interest” and collectively, the “Security Interests”).

 

Section 3 - Delivery of Certain Collateral.

 

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

 

Section 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 Party concurrently herewith (the “Disclosure Schedules”),
which Disclosure Schedules shall be deemed a part hereof, each Debtor represents and warrants to, and covenants and agrees with,
the Secured Party 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 therein have been duly authorized by all necessary 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.

 

    	-7-

    	 

    

 

(b)          The
Debtors have no places where tangible Collateral is stored or located, except as set forth on Schedule A attached hereto.
Except as disclosed on Schedule A, none of such tangible Collateral is in the possession of any consignee, bailee, warehouseman,
agent or processor.

 

(c)          Except
for Permitted Liens and except as set forth on Schedule B attached hereto, the Debtors are the sole owners 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 with respect to Permitted Liens and except as set forth on Schedule B attached hereto, there is not on
file in any governmental or regulatory authority, agency or recording office an effective financing statement, security agreement,
license or transfer or any notice of any of the foregoing (other than those that will be filed in favor of the Secured Party pursuant
to this Agreement) covering or affecting any of the Collateral. Except with respect to Permitted Liens, except as set forth on
Schedule B attached hereto and except pursuant to this Agreement, as long as this Agreement shall be in effect, the Debtors
shall not execute and shall not knowingly permit to be on file in any such office or agency any other financing statement or other
similar document or instrument (except to the extent filed or recorded in favor of the Secured Party pursuant to the terms of this
Agreement).

 

(d)          No
written claim has been received by any Debtor that any Collateral or Debtor's use of any Collateral violates the rights of any
third party. 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 there is no proceeding
involving said rights pending or, to the best 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 tangible Collateral at the locations set forth on Schedule A attached hereto
and may not relocate any material portion of tangible Collateral unless it delivers to the Secured Party at least 30 days
prior to such relocation (i) written notice of such relocation and the new location thereof (which must be within the United
States) and (ii) evidence that appropriate financing statements under the UCC and other necessary documents have been filed
and recorded and other steps have been taken to perfect the Security Interests to create in favor of the Secured Party,
subject only to Permitted Liens, a valid, perfected and continuing perfected first priority lien in the Collateral.

 

    	-8-

    	 

    

 

(f)           This
Agreement creates in favor of the Secured Party a valid security interest in the Collateral, subject only to Permitted Liens, securing
the payment and performance of the Obligations. Upon making the filings described in the immediately following paragraph, all security
interests created hereunder in any Collateral which may be perfected by filing UCC financing statements shall have been duly perfected.
Except for the filing of the UCC financing statements referred to in the immediately following paragraph, the recordation of the
Intellectual Property Security Agreement (as defined below) with respect to copyrights and copyright applications in the United
States Copyright Office referred to in paragraph (p), and the delivery of the certificates and other instruments provided in Section
3 hereof, no action is necessary to create, perfect or protect the security interests created hereunder. Without limiting the
generality of the foregoing, except for the filing of said financing statements and the recordation of said Intellectual Property
Security Agreement, 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 Secured Party hereunder.

 

(g)          Each
Debtor hereby authorizes the Secured Party to file one or more financing statements under the UCC with respect to the Security
Interests with the proper filing and recording agencies in any jurisdiction deemed proper by it, which UCC financing statement
may describe the collateral as “all assets.”

 

(h)          The
execution, delivery and performance of this Agreement by the Debtors do 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
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 agreement, credit facility, debt or other instrument (evidencing any Debtor's
debt or otherwise) or other understanding to which any Debtor is a party or by which any property or asset of any Debtor is bound
or affected. 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.

 

(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 in and to the Guarantor and the other subsidiaries of the Company, and represent
all capital stock and other equity interests owned, directly or indirectly, by the Company. All of the Pledged Securities are validly
issued, fully paid and nonassessable, and the Company is the legal and beneficial owner of the Pledged Securities, free and clear
of any Lien, security interest or other encumbrance except for the security interests created by this Agreement and other Permitted
Liens. Each Debtor shall cause the pledge and security interest of the Secured Party to be duly noted in its corporate books and
records.

 

(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.

 

    	-9-

    	 

    

 

(k)          Except
for Permitted Liens, each Debtor shall at all times 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 Secured Party until this Agreement and
the Security Interests 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 and to safeguard and
protect all Collateral for the account of the Secured Party. At the reasonable request of the Secured Party, each Debtor will sign
and deliver to the Secured Party at any time or from time to time one or more financing statements pursuant to the UCC in form
reasonably satisfactory to the Secured Party and will pay the cost of filing the same in all public offices wherever filing is
necessary to effect the rights and obligations provided for herein. 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, and each
Debtor shall obtain and furnish to the Secured Party from time to time, upon demand, such releases and/or subordinations of claims
and liens which may be required to maintain in accordance with this Agreement the priority of the Security Interests hereunder.

 

(l)           Except
for Permitted Liens, no Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral
(except for non-exclusive revocable licenses granted by a Debtor in its ordinary course of business and sales of inventory by a
Debtor in its ordinary course of business) without the prior written consent of the Secured Party.

 

(m)         Each
Debtor use commercially reasonable efforts to keep and preserve its equipment, inventory and other tangible Collateral in good
condition, repair and order, and shall not operate or locate any material portion of 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 but in any event sufficient to cover
the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide, and
the insurer issuing such policy to certify to the Secured Party that (a) the Secured Party will be named as lender loss payee and
additional insured under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for
any reason whatsoever, such insurer will promptly notify the Secured Party and such cancellation or change shall not be effective
as to the Secured Party for at least thirty (30) days after receipt by the Secured Party of such notice, unless the effect of such
change is to extend or increase coverage under the policy; and (c) the Secured Party will have the right (but no obligation) at
its election to remedy any default in the payment of premiums within thirty (30) days of notice from the insurer of such default.
If no Event of Default (as defined in the Secured Notes) exists and if the proceeds arising out of any claim or series of related
claims do not exceed $100,000, loss payments in each instance will be applied by the 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 $100,000 for any occurrence or series of related
occurrences shall be paid to the Secured Party and, if received by such Debtor, shall be held in trust for the Secured Party and
promptly paid over to the Secured Party unless otherwise directed in writing by the Secured Party. Copies of such policies or the
related certificates, in each case, naming the Secured Party as lender loss payee and additional insured shall be delivered to
the Secured Party at least annually and at the time any new policy of insurance is issued.

 

    	-10-

    	 

    

 

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

 

(p)          Each
Debtor shall promptly execute and deliver to the Secured Party such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and assurances and take such further action as the Secured Party
may from time to time request as necessary to perfect, protect or enforce the Secured Party’s security interest in the Collateral
(including, without limitation, the execution and delivery of a separate security agreement with respect to the IP Collateral (“Intellectual
Property Security Agreement”) to be delivered on the date hereof) in which the Secured Party has been granted a security
interest hereunder, substantially in a form reasonably acceptable to the Secured Party.

 

(q)          Each
Debtor shall permit the Secured Party and its representatives and agents reasonable access to inspect the Collateral during normal
business hours, upon reasonable prior notice and without undue interference with such Debtor’s business operations, and to
make copies of records pertaining to the Collateral as may be reasonably requested by the Secured Party from time to time.

 

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

 

(s)          Each
Debtor shall promptly notify the Secured Party in sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Collateral and of any other information received by such Debtor that would have a material
adverse effect on the value of the Collateral, the Security Interest or the rights and remedies of the Secured Party hereunder.

 

    	-11-

    	 

    

 

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

 

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

 

(v)          No
Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it has
one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days’ prior
written notice to the Secured Party of such change and, at the time of such written notification, such Debtor provides any financing
statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced
by this Agreement.

 

(w)         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 Secured Party, which shall not be unreasonably withheld.

 

(x)          No
Debtor may establish a chief executive office, or relocate its chief executive office to a new location, without providing 30 days’
prior written notification thereof to the Secured Party and so long as, at the time of such written notification, such Debtor provides
any financing statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted
and evidenced by this Agreement.

 

(y)          Each
Debtor was organized and remains organized solely under the laws of the state set forth next to such Debtor’s name in Schedule
D attached hereto, which Schedule D sets forth each Debtor’s organizational identification number or, if any Debtor
does not have one, states that one does not exist

 

(z)           (i)
The actual name of each Debtor is the name set forth in Schedule D attached hereto; (ii) no Debtor has any trade names except
as set forth on Schedule E attached hereto; (iii) 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 (iv) 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.

 

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

 

(bb)        Each
Debtor, in its capacity as issuer, hereby agrees to comply with any and all reasonable orders and instructions of Secured Party
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
(or one that would confer “control” within the meaning of Article 8 of the UCC) with any other person or entity.

 

    	-12-

    	 

    

 

(cc)        Each
Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to the Secured Party, 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” within the meaning of Section 9-105 of the UCC (or successor section
thereto).

 

(dd)       If
there is any investment property or deposit account included as Collateral that can be perfected by “control” through
an account control agreement, the applicable Debtor shall cause such an account control agreement, in form and substance in each
case reasonably satisfactory to the Secured Party, to be entered into and delivered to the Secured Party.

 

(ee)        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 Party.

 

(ff)         To
the extent that any Collateral is in the possession of any third party, the applicable Debtor shall join with the Secured Party
in notifying such third party of the Secured Party’s security interest in such Collateral and shall endeavor to obtain an
acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory
to the Secured Party.

 

(gg)       If
any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly notify the Secured Party in a
writing signed by such Debtor of the particulars thereof and grant to the Secured Party 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 Secured Party.

 

(hh)       Each
Debtor shall promptly provide written notice to the Secured Party 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 Secured Party an assignment of claims for such accounts and cooperate
with the Secured Party in taking any other steps required under the Federal Assignment of Claims Act or any similar foreign, federal,
state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts and proceeds
thereof.

 

    	-13-

    	 

    

 

(ii)          Each
Debtor shall cause each subsidiary of such Debtor with material operations or assets (which, if in doubt, shall be in the sole
determination of the Secured Party) to immediately become a party hereto (an “Additional Debtor”), by executing
and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply with the provisions
hereof applicable to the Debtors. As of the date hereof, each Debtor represents and warrants that none of its subsidiaries have
any material operations or assets (other than the Guarantor). 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, financing statements
and other information and documentation as the Secured Party may reasonably request. Upon delivery of the foregoing to the Secured
Party, 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 Additional
Debtor Joinder, and all references herein to the “Debtors” shall be deemed to include each Additional Debtor.

 

(jj)          Each
Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Secured Notes
and the other Transaction Documents.

 

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

 

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

 

    	-14-

    	 

    

 

(mm)      Without
limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) cause to be registered
at the United States Copyright Office all of its material copyrights included in the IP Collateral, (ii) cause the security interest
contemplated hereby with respect to the IP Collateral registered at the United States Copyright Office or United States Patent
and Trademark Office to be duly recorded at the applicable office, and (iii) give the Secured Party notice whenever it acquires
(whether absolutely or by license) or creates any additional material Intellectual Property. The Debtors shall take all steps necessary,
if permitted by law, to register the Secured Party’s first priority lien on any patents or copyrights (or applications therefor)
included in the IP Collateral and filed in any foreign jurisdiction within 60 days of the date hereof, and take any other steps
necessary under the laws of such jurisdictions (if registration is not permitted) to perfect the grant of the security interest
in such IP Collateral to the Secured Party to secure the Obligations as contemplated herein.

 

(nn)       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 desirable, or as the Secured Party may reasonably request,
in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Party
to exercise and enforce its rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes
of this Agreement.

 

(oo)       All
material patents and trademarks of the Debtors that are set forth on Schedule __ have been duly recorded at the United States Patent
and Trademark Office, and all material copyrights of the Debtors that are have been duly recorded at the United States Copyright
Office.

 

(pp)       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.

 

Section 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 the Secured Party’s rights hereunder shall not be deemed to be the type of
event which would trigger such conversion rights notwithstanding any provisions in the Organizational Documents or agreements to
which any Debtor is subject or to which any Debtor is a party.

 

    	-15-

    	 

    

 

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

 

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

 

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

 

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

 

Section 7 - Duty To Hold In Trust.

 

(a)          Upon
the occurrence and during the continuance of any Event of Default and at any time thereafter, each Debtor shall, upon receipt of
any revenue, income, dividend, interest or other sums subject to the Security Interests, whether payable pursuant to the Secured
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 Secured Party and shall forthwith endorse and transfer any such sums or instruments, or both,
to the Secured Party.

 

(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 Party;
(ii) hold the same in trust on behalf of and for the benefit of the Secured Party; and (iii) deliver any and all certificates or
instruments evidencing the same to the Secured Party on or before the close of business on the fifth business day following the
receipt thereof by such Debtor, in the exact form received together with the Necessary Endorsements, to be held by the Secured
Party subject to the terms of this Agreement as Collateral.

 

Section 8 - Rights and Remedies Upon Default.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter, the Secured Party shall have the right to exercise all of the
remedies conferred hereunder and under the other Transaction Documents, and the Secured Party shall have all the rights and remedies
of a secured party under the UCC. Without limitation, the Secured Party shall have the following rights and powers:

 

    	-16-

    	 

    

 

		(i)	The Secured Party shall have the right to take possession of the Collateral and, for
that purpose, enter by reasonable means, 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 Secured Party at places which the Secured Party shall reasonably select, whether at such Debtor's premises or elsewhere, and
make reasonably available to the Secured Party, without rent, all of such Debtor’s respective premises and facilities for
the purpose of the Secured Party taking possession of, removing or putting the Collateral in saleable or disposable form.

 

		(ii)	Upon written notice to the Debtors by the Secured Party, 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,
the Secured Party shall have the right to receive any interest, cash dividends or other payments on the Collateral and, at the
option of the Secured Party, to exercise in the Secured Party’s discretion all voting rights pertaining thereto. Without
limiting the generality of the foregoing, the Secured Party 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 Secured Party 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 commercially reasonable terms and conditions. Upon each such sale, lease, assignment or other transfer
of Collateral, the Secured Party may, unless prohibited by applicable law which cannot be waived, purchase all or any part of
the Collateral being sold, free from and discharged of all trusts, claims, rights of redemption and equities of any Debtor, which
are hereby waived and released.

 

    	-17-

    	 

    

 

 

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

 

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

 

		(vi)	The Secured Party may (but is not obligated to) transfer any or all of the IP Collateral
that is 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 Party or any designee or any purchaser of any Collateral.

 

(b)          The
Secured Party shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not
be considered adversely to affect the commercial reasonableness of any sale of the Collateral. The Secured Party may sell the Collateral
without giving any warranties and may specifically disclaim such warranties. 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 Secured Party’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 Secured Party to further exercise rights and remedies under this 
Section 8 or elsewhere provided by agreement or applicable law, each Debtor hereby grants to the Secured Party
an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to such Debtor) to use, license
or sublicense following an Event of Default, any IP Collateral, wherever the same may be located, and including in such license
access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used
for the compilation or printout thereof.

 

Section 9 - Applications of Proceeds.

 

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 reasonably incurred in connection therewith) of the
Collateral, second, to the reasonable attorneys’ fees and expenses incurred by the Secured Party in enforcing the Secured
Party’s rights hereunder and in connection with collecting, storing and disposing of the Collateral, and third to satisfaction
of the Obligations, and to the payment of any other amounts required by applicable law, after which the Secured Party shall pay
to the 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 Party is legally entitled, the Debtors will be liable for the
deficiency, together with interest thereon, at the rate of 24.99% per annum or the lesser amount permitted by applicable law (the
“Default Rate”), and the reasonable fees of any attorneys employed by the Secured Party to collect such deficiency.
To the extent permitted by applicable law, each Debtor waives all claims, damages and demands against the Secured Party arising
out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct
of the Secured Party as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.

 

    	-18-

    	 

    

 

Section 10 - Securities Law Provision.

 

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

 

Section 11 - Costs and Expenses.

 

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

 

    	-19-

    	 

    

 

Section 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) in no event shall the Secured Party (i) have 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) have 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. The Secured Party shall not have any obligation
or liability under any such contract or agreement by reason of or arising out of this Agreement or the receipt by the Secured Party
of any payment relating to any of the Collateral, nor shall the Secured Party be obligated in any manner to perform any of the
obligations of 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 Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party
under any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect
the payment of any amounts which may have been assigned to the Secured Party or to which the Secured Party may be entitled at any
time or times. The Secured Party shall be entitled, in its sole discretion, to abandon any and all Collateral and any and all records
concerning the Collateral or any Debtor’s business at any time regardless of whether it has obtained possession thereof,
without any liability or responsibility of any kind or nature whatsoever to any Debtor.

 

Section 13 - Security Interests Absolute.

 

All rights and all obligations
of the parties hereunder, shall be absolute and unconditional, irrespective of: (a) any lack of validity or enforceability of this
Agreement, the Secured 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 Secured 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 Party to obtain, adjust, settle and cancel in its reasonable 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.
Until the Obligations shall have been paid and performed in full, the rights of the Secured Party shall continue even if the Obligations
are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy. 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 Party hereunder shall be deemed by final
order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or
insolvency laws of the United States, or shall be deemed to be otherwise due
to any party other than the Secured Party, then, in any such event and to the extent thereof, 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 Party to proceed against any other person or entity or to apply any Collateral
which the Secured Party may hold at any time, or to marshal assets, or to pursue any other remedy.

 

    	-20-

    	 

    

  

Section 14 - Term of Agreement.

 

This Agreement and the Security
Interests shall terminate on the date on which (a) all payments under the Secured Notes have been indefeasibly paid or otherwise
satisfied in full (including by way of conversion of the Convertible Notes), and (b) all other Obligations have been indefeasibly
paid or otherwise satisfied in full (other than contingent indemnification obligations).

 

Section 15 - Power of Attorney; Further Assurances.

 

(a)          Each
Debtor authorizes the Secured Party, and does hereby make, constitute and appoint the Secured Party and its officers, agents, successors
or assigns with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of
the Secured Party 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 Secured Party; (ii) sign and endorse any financing statement
pursuant to the UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) pay or
discharge taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral;
(iv) demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) transfer any IP
Collateral or provide licenses respecting any IP Collateral; and (vi) generally, at the option of the Secured Party, and at the
expense of the Debtors, at any time, or from time to time, execute and deliver any and all documents and instruments and do all
acts and things which the Secured Party 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 Secured 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 Secured Party is specifically authorized to execute and file any applications for or instruments of transfer and assignment
of any patents, trademarks or copyrights included in the IP Collateral, or other IP Collateral, with the United States Patent and
Trademark Office and the United States Copyright Office.

 

    	-21-

    	 

    

 

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

 

(c)          Each
Debtor hereby irrevocably appoints the Secured Party as such Debtor’s attorney-in-fact, with full authority in the place
and instead of such Debtor and in the name of such Debtor, from time to time in the Secured Party’s discretion, to take any
action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of this
Agreement, including the filing, in its sole discretion, of one or more financing or continuation statements and amendments thereto,
relative to any of the Collateral without the signature of such Debtor where permitted by law, which financing statements may describe
the Collateral as “all assets,” and ratifies all such actions taken by the Secured Party. This power of attorney is
coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations
shall be outstanding.

 

Section 16 - Notices.

 

Any demand upon or notice to the
Debtors hereunder shall be effective when delivered by hand or when properly deposited in the mails postage prepaid, or sent by
telex, answerback received, or electronic facsimile transmission, receipt acknowledged, or delivered to a telegraph company or
overnight courier, in each case addressed to the Debtor at the address shown below or such other address as the Debtors may advise
the Secured Party in writing. Any notice by the Debtors to the Secured Party shall be given as aforesaid, addressed to the Secured
Party at the address shown below or such other address as the Secured Party may advise the Debtors in writing.

 

	 	Secured Party:	Platinum-Montaur Life Sciences LLC
	 	 	152 West 57th Street, 4th Floor
	 	 	New York, NY 10019
	 	 	 
	 	With a copy to:	Burak Anderson & Melloni, PLC
	 	 	30 Main Street, PO Box 787
	 	 	Burlington, Vermont 05402-0787
	 	 	Tel. No.: (802) 862-0500
	 	 	Fax No.: (802) 862-8176

 

    	-22-

    	 

    

 

	 	Debtors:	Urigen Pharmaceuticals, Inc.
	 	 	501 Silverside Road PMB #95
	 	 	Wilmington, DE 19809
	 	 	Attention: Dan Vickery, Chairman
	 	 	Tel. No.:
	 	 	Fax No.:
	 	 	 
	 	With a copy to:	Pryor Cashman LLP
	 	 	7 Times Square
	 	 	New York, New York 10036
	 	 	Attn: Lawrence A. Spector
	 	 	Tel. No.: (212) 326-0402
	 	 	Fax No.: (212) 798-6374

 

Section 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 Secured Party shall have the right, in its sole discretion, to pursue, relinquish,
subordinate, modify or take any other action with respect thereto, without in any way modifying or affecting any of the Secured
Party’s rights and remedies hereunder.

 

Section 18 - Miscellaneous.

 

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

 

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

 

(c)          This
Agreement, together with the exhibits and schedules hereto, the Secured Notes, the Intellectual Property Security Agreement, the
Transaction Documents and the related agreements contemplated hereby and thereby 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 Secured Party or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought.

 

    	-23-

    	 

    

 

(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 Guarantor may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the
Secured Party. The Secured Party may assign any or all of its rights under this Agreement to any Person to whom the Secured Party
assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred Securities,
by the provisions of this Agreement that apply to the “Secured Party.”

 

(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.

 

    	-24-

    	 

    

 

(h)          All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law
thereof. Each Debtor agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Agreement, the Intellectual Property Security Agreement, the Transaction Documents and the Secured 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. Each Debtor
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 or that such proceeding is improper. Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence a proceeding
to enforce any provisions of this Agreement, then the prevailing party in such proceeding shall be reimbursed by the other party
for its reasonable attorney’s fees and other reasonable costs and expenses incurred with the investigation, preparation and
prosecution of such proceeding.

 

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

 

(k)          Each
Debtor shall indemnify, reimburse and hold harmless the Secured Party and each Lender, and each of 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 Secured
Notes, the Transaction Documents, the Intellectual Property Security Agreement or any other agreement, instrument or other document
executed or delivered in connection herewith or therewith.

 

    	-25-

    	 

    

 

(l)           Nothing
in this Agreement shall be construed to subject the Secured Party to liability as a partner in any Debtor or any of 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 the 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 the 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]

 

    	-26-

    	 

    

 

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

 

DEBTORS: 

 

URIGEN PHARMACEUTICALS, INC.

	 	 	 	 
	By:	/s/ Dan Vickery 	 
	 	Name:	Dan Vickery  	 
	 	Title:	Chairman 	 

 

	URIGEN N.A., INC.	 
	 	 	 	 
	By:	/s/ Dan Vickery 	 
	 	Name:	Dan Vickery  	 
	 	Title:	President	 

 

	SECURED PARTY:	 
	 	 
	PLATINUM-MONTAUR LIFE SCIENCES, LLC	 
	 	 	 	 
	By:	/s/ Will Slota  	 
	 	Name:	Will Slota 	 
	 	Title:	Authorized Signatory

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