Document:

REGISTRATION RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of April 4, 2012, is by and among Morria
Biopharmaceuticals PLC, a public limited company formed under the laws of England and Wales
(the “Company”), and each of the undersigned buyers (each, a “Buyer,” and
collectively, the “Buyers”).

 

RECITALS

 

A.         In
connection with the Securities Purchase Agreement by and among the parties hereto, dated as of April 3, 2012 (the
“Securities Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of
the Securities Purchase Agreement, to issue and sell to each Buyer (i) the Notes (as defined in the Securities Purchase
Agreement), which will be convertible into Conversion Shares (as defined in the Securities Purchase Agreement) in accordance
with the terms of the Notes and (ii) the Warrants (as defined in the Securities Purchase Agreement), which will be
exercisable to purchase Warrant Shares (as defined in the Securities Purchase Agreement) in accordance with the terms of the
Warrants.

 

B.         To
induce the Buyers to consummate the transactions contemplated by the Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the “1933 Act”), and applicable state securities laws.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows:

 

		1.	Definitions.

 

Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

 

(a)         “Business
Day” means any day other than Saturday, Sunday or any other day on which commercial banks in New York, New York are authorized
or required by law to remain closed.

 

(b)         “Closing
Date” shall have the meaning set forth in the Securities Purchase Agreement.

 

(c)         
“Effective Date” means the date that the applicable Registration Statement has been declared effective by the
SEC.

 

    	 

    	 

    

 

(d)         “Effectiveness
Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a),
the earlier of the (A) 90th calendar day after the Self Filing Effective Date (or the 120th calendar day
after the Self Filing Effective Date in the event that such Registration Statement is subject to Full Review by the SEC) and (B)
2nd Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that
such Registration Statement will not be reviewed or will not be subject to further review, and (ii) with respect to any additional
Registration Statements that may be required to be filed by the Company pursuant to this Agreement, the earlier of the (A) 90th
calendar day following the date on which the Company was required to file such additional Registration Statement and (B) 2nd
Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Registration
Statement will not be reviewed or will not be subject to further review.

 

(e)         “Filing
Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a),
the 30th calendar day after the Self Filing Effective Date and (ii) with respect to any additional Registration Statements
that may be required to be filed by the Company pursuant to this Agreement, the date on which the Company was required to file
such additional Registration Statement pursuant to the terms of this Agreement.

 

(f)         “Full
Review” in respect of any Registration Statement shall mean an instance where the staff of the SEC does not inform the
Company either that the Registration Statement will not be reviewed or that such review will be on a limited, monitor or expedited
(or other similar) basis.

 

(g)         “Initial
Quotation Date” means the date on which the Company obtains the listing or quotation of the Ordinary Shares on the Principal
Market in accordance with Section 5(f) of the Securities Purchase Agreement.

 

(h)         “Investor”
means a Buyer or any transferee or assignee of any Registrable Securities, Notes or Warrants, as applicable, to whom a Buyer assigns
its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee of any Registrable Securities, Notes or Warrants, as applicable,
assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section
9.

 

(i)         “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
or a government or any department or agency thereof.

 

(j)         “register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements in compliance with the 1933 Act and pursuant to Rule 415 and the declaration of effectiveness
of such Registration Statement(s) by the SEC.

 

(k)         “Registrable
Securities” means (i) the Conversion Shares, (ii) the Warrant Shares and (iii) any capital stock of the Company issued
or issuable with respect to the Conversion Shares, the Warrant Shares, the Notes or the Warrants, including, without limitation,
(1) as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise and (2) shares of
capital stock of the Company into which the Ordinary Shares (as defined in the Securities Purchase Agreement) are converted or
exchanged and shares of capital stock of a Successor Entity (as defined in the Warrants) into which the Ordinary Shares are converted
or exchanged, in each case, without regard to any limitations on conversion of the Notes or exercise of the Warrants.

 

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(l)         “Registration
Statement” means a registration statement or registration statements of the Company filed under the 1933 Act covering
Registrable Securities.

 

(m)         “Required
Holders” means (i) the holders of at least a majority of the Registrable Securities and (ii) Iroquois (as defined in
the Securities Purchase Agreement).

 

(n)         “Required
Registration Amount” means 133% of the sum of (i) the maximum number of Conversion Shares issued and issuable pursuant
to the Notes and (ii) the maximum number of Warrant Shares issued and issuable pursuant to the Warrants, in each case, as of the
Trading Day (as defined in the Warrants) immediately preceding the applicable date of determination (without taking into account
any limitations on the conversion of the Notes or the exercise of the Warrants set forth therein), all subject to adjustment as
provided in Section 2(d).

 

(o)         “Rule
144” means Rule 144 promulgated by the SEC under the 1933 Act, as such rule may be amended from time to time, or any
other similar or successor rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Company
to the public without registration.

 

(p)         “Rule
415” means Rule 415 promulgated by the SEC under the 1933 Act, as such rule may be amended from time to time, or any
other similar or successor rule or regulation of the SEC providing for offering securities on a continuous or delayed basis.

 

(q)         “SEC”
means the United States Securities and Exchange Commission or any successor thereto.

 

(r)         “Self
Filing Effective Date” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

		2.	Registration.

 

(a)         Mandatory
Registration. The Company shall prepare and, as soon as practicable, but in no event later than the Filing Deadline, file with
the SEC an initial Registration Statement on Form F-1 covering the resale of all of the Registrable Securities; provided that such
initial Registration Statement shall register for resale at least the number of Ordinary Shares equal to the Required Registration
Amount as of the date such Registration Statement is initially filed with the SEC; and provided further that the Company shall
use such other form as is required by Section 2(c) once the Company becomes eligible to use such form. Such initial Registration
Statement, and each other Registration Statement required to be filed pursuant to the terms of this Agreement, shall contain (except
if otherwise directed by the Required Holders) the “Selling Stockholders” and “Plan of Distribution”
sections in substantially the form attached hereto as Exhibit B. The Company shall use its best efforts to have such
initial Registration Statement, and each other Registration Statement required to be filed pursuant to the terms of this Agreement,
declared effective by the SEC as soon as practicable, but in no event later than the applicable Effectiveness Deadline for such
Registration Statement.

 

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(b)         Legal
Counsel. Subject to Section 5 hereof, Iroquois shall have the right to select one (1) legal counsel to review and oversee,
solely on its behalf, any registration pursuant to this Section 2 (“Legal Counsel”), which shall be EGS or such
other counsel as thereafter designated by Iroquois. The Company and the Company’s legal counsel, Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C. (“Company Counsel”), and the Legal Counsel for Iroquois shall reasonably cooperate with
each other in the Company’s performance of its obligations under this Agreement; provided, however, that in the event of
any disagreement (after the reasonable cooperation of the respective counsels) between Company Counsel, on behalf of the Company,
and the Legal Counsel, on behalf of Iroquois, with respect to any filings with the SEC by the Company under this Agreement, then
the decisions of Company Counsel shall be final.

 

(c)         Use
of Form F-3. In the event that the Company becomes eligible to use Form F-3 for the registration of the resale of Registrable
Securities hereunder, the Company shall undertake to register the resale of the Registrable Securities on Form F-3 as soon as such
form is available, provided that the Company shall maintain the effectiveness of all Registration Statements then in effect until
such time as a Registration Statement on Form F-3 covering the resale of all the Registrable Securities has been declared effective
by the SEC.

 

(d)         Sufficient
Number of Shares Registered. In the event the number of shares available under any Registration Statement is insufficient to
cover all of the Registrable Securities required to be covered by such Registration Statement or an Investor’s allocated
portion of the Registrable Securities pursuant to Section 2(g), the Company shall amend such Registration Statement (if permissible),
or file with the SEC a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover
at least the Required Registration Amount as of the Trading Day immediately preceding the date of the filing of such amendment
or new Registration Statement, in each case, as soon as practicable, but in any event not later than fifteen (15) days after the
necessity therefor arises (but taking account of any Staff position with respect to the date on which the Staff will permit such
amendment to the Registration Statement and/or such new Registration Statement (as the case may be) to be filed with the SEC).
The Company shall use its best efforts to cause such amendment to such Registration Statement and/or such new Registration Statement
(as the case may be) to become effective as soon as practicable following the filing thereof with the SEC, but in no event later
than the applicable Effectiveness Deadline for such Registration Statement. For purposes of the foregoing provision, the number
of shares available under a Registration Statement shall be deemed “insufficient to cover all of the Registrable Securities”
if at any time the number of Ordinary Shares available for resale under the applicable Registration Statement is less than the
product determined by multiplying (x) the Required Registration Amount as of such time by (y) 0.90. The calculation set forth in
the foregoing sentence shall be made without regard to any limitations on (i) conversion of the Notes (and such calculation shall
assume that the Notes are then fully convertible into Ordinary Shares at the then-prevailing applicable Conversion Price) and (ii)
exercise of the Warrants (and such calculation shall assume that the Warrants are then fully exercisable for Ordinary Shares at
the then-prevailing applicable Exercise Price).

 

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(e)         Effect
of Failure to File and Obtain and Maintain Effectiveness of any Registration Statement. If (i) a Registration Statement covering
the resale of all of the Registrable Securities required to be covered thereby (disregarding any reduction pursuant to Section
2(f)) and required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before the Filing
Deadline for such Registration Statement (a “Filing Failure”) (it being understood that if the Company files
a Registration Statement without affording each Investor the opportunity to review and comment on the same as required by Section
3(c) hereof, the Company shall be deemed to not have satisfied this clause (i)(A) and such event shall be deemed to be a Filing
Failure) or (B) not declared effective by the SEC on or before the Effectiveness Deadline for such Registration Statement (an “Effectiveness
Failure”) (it being understood that if on the Business Day immediately following the Effective Date for such Registration
Statement the Company shall not have filed a “final” prospectus for such Registration Statement with the SEC under
Rule 424(b) in accordance with Section 3(b) (whether or not such a prospectus is technically required by such rule), the Company
shall be deemed to not have satisfied this clause (i)(B) and such event shall be deemed to be an Effectiveness Failure), (ii) other
than during an Allowable Grace Period (as defined below), on any day after the Effective Date of a Registration Statement, sales
of all of the Registrable Securities required to be included on such Registration Statement (disregarding any reduction pursuant
to Section 2(f)) cannot be made pursuant to such Registration Statement (including, without limitation, because of a failure to
keep such Registration Statement effective, a failure to disclose such information as is necessary for sales to be made pursuant
to such Registration Statement, on or after the Initial Quotation Date a suspension or delisting of (or a failure to timely list)
the Ordinary Shares on an Eligible Market (as defined in the Securities Purchase Agreement), or a failure to register a sufficient
number of Ordinary Shares or by reason of a stop order) or the prospectus contained therein is not available for use for any reason
(a “Maintenance Failure”), or (iii) at any time when a Registration Statement is not effective for any reason
or the prospectus contained therein is not available for use for any reason, the Company fails to file with the SEC any required
reports under Section 13 or 15(d) of the 1934 Act such that it is not in compliance with Rule 144(c)(1) (or Rule 144(i)(2), if
applicable) (a “Current Public Information Failure”) as a result of which any of the Investors are unable to
sell Registrable Securities without restriction under Rule 144 (including, without limitation, volume restrictions), then, as partial
relief for the damages to any holder by reason of any such delay in, or reduction of, its ability to sell the underlying Ordinary
Shares (which remedy shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to each
holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one percent (1%) of such Investor’s
original principal amount stated in such Investor’s Note on the Closing Date (1) on the date of such Filing Failure, Effectiveness
Failure, Maintenance Failure or Current Public Information Failure, as applicable, and (2) on every thirty (30) day anniversary
of (I) a Filing Failure until such Filing Failure is cured; (II) an Effectiveness Failure until such Effectiveness Failure is cured;
(III) a Maintenance Failure until such Maintenance Failure is cured; and (IV) a Current Public Information Failure until the earlier
of (i) the date such Current Public Information Failure is cured and (ii) such time that such public information is no longer required
pursuant to Rule 144 (in each case, pro rated for periods totaling less than thirty (30) days). The payments to which a holder
of Registrable Securities shall be entitled pursuant to this Section 2(e) are referred to herein as “Registration Delay
Payments.” Following the initial Registration Delay Payment for any particular event or failure (which shall be paid
on the date of such event or failure, as set forth above), without limiting the foregoing, if an event or failure giving rise to
the Registration Delay Payments is cured prior to any thirty (30) day anniversary of such event or failure, then such Registration
Delay Payment shall be made on the third (3rd) Business Day after such cure. In the event the Company fails to make
Registration Delay Payments in a timely manner in accordance with the foregoing, such Registration Delay Payments shall bear interest
at the rate of one and one-half percent (1.5%) per month (prorated for partial months) until paid in full. Notwithstanding anything
to the contrary herein, no Current Public Information Failure shall be deemed to exist prior to the Self Filing Effective Date.
Notwithstanding the foregoing, no Registration Delay Payments shall be owed to an Investor (other than with respect to a Maintenance
Failure resulting from a suspension of listing or quotation or delisting of (or a failure to timely list or quote) the Ordinary
Shares on the Principal Market) with respect to any period during which all of such Investor’s Registrable Securities may
be sold by such Investor without restriction under Rule 144 (including, without limitation, volume restrictions) and without the
need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable).

 

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(f)         Offering.
Notwithstanding anything to the contrary contained in this Agreement, in the event the staff of the SEC (the “Staff”)
or the SEC seeks to characterize any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting
an offering of securities by, or on behalf of, the Company, or in any other manner, such that the Staff or the SEC
do not permit such Registration Statement to become effective and used for resales in a manner that does not constitute such
an offering and that permits the continuous resale at the market by the Investors participating therein (or as otherwise
may be acceptable to each Investor) without being named therein as an “underwriter,” then the Company shall reduce
the number of shares to be included in such Registration Statement by all Investors until such time as the Staff and the SEC
shall so permit such Registration Statement to become effective as aforesaid. In making such reduction, the Company shall
reduce the number of shares to be included by all Investors on a pro rata basis (based upon the number of Registrable Securities
otherwise required to be included for each Investor) unless the inclusion of shares by a particular Investor or a particular set
of Investors are resulting in the Staff or the SEC’s “by or on behalf of the Company” offering position,
in which event the shares held by such Investor or set of Investors shall be the only shares subject to reduction (and if by a
set of Investors on a pro rata basis by such Investors or on such other basis as would result in the exclusion of the least number
of shares by all such Investors).  In addition, in the event that the Staff or the SEC requires any Investor seeking to sell
securities under a Registration Statement filed pursuant to this Agreement to be specifically identified as an “underwriter” in
order to permit such Registration Statement to become effective, and such Investor does not consent to being so named as an underwriter
in such Registration Statement, then, in each such case, the Company shall reduce the total number of Registrable Securities
to be registered on behalf of such Investor, until such time as the Staff or the SEC does not require such identification
or until such Investor accepts such identification and the manner thereof. Any reduction pursuant to this paragraph will first
reduce all securities that are not Registrable Securities (including securities included in such Registration Statement pursuant
to a Permitted Registration (as defined in the Securities Purchase Agreement)), if any such securities are permitted by the Required
Holders to be included in accordance with the terms of this Agreement. In the event of any reduction in Registrable Securities
pursuant to this paragraph, an affected Investor shall have the right to require, upon delivery of a written request to the
Company signed by such Investor, the Company to file a registration statement within thirty (30) calendar days of such request
(subject to any restrictions imposed by Rule 415 or required by the Staff or the SEC) for resale by such Investor in
a manner acceptable to such Investor, and the Company shall following such request cause to be and keep effective such registration
statement in the same manner as otherwise contemplated in this Agreement for registration statements hereunder, in each
case, until such time as: (i) all Registrable Securities held by such Investor have been registered and sold pursuant to an
effective Registration Statement in a manner acceptable to such Investor or (ii) all Registrable Securities may be resold
by such Investor without restriction (including, without limitation, volume limitations) pursuant to Rule 144 (taking account
of any Staff position with respect to “affiliate” status) and without the need for current public information required
by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (iii) such Investor agrees to be named as an underwriter in any such Registration
Statement in a manner acceptable to such Investor as to all Registrable Securities held by such Investor and that have not theretofore
been included in a Registration Statement under this Agreement (it being understood that the special demand right under this sentence
may be exercised by an Investor multiple times and with respect to limited amounts of Registrable Securities in order to permit
the resale thereof by such Investor as contemplated above). Any reduction made to securities included in a Registration Statement
in accordance with this Section 2(f) shall not constitute a Filing Failure, Effectiveness Failure or a Maintenance Failure and
shall not be subject to the payment requirements under Section 2(e).

 

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(g)         Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase
in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number of
Registrable Securities held by each Investor at the time such Registration Statement covering such initial number of Registrable
Securities or increase thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any
of such Investor’s Registrable Securities, each transferee or assignee (as the case may be) that becomes an Investor shall
be allocated a pro rata portion of the then-remaining number of Registrable Securities included in such Registration Statement
for such transferor or assignee (as the case may be). Any Ordinary Shares included in a Registration Statement and which remain
allocated to any Person which ceases to hold any Registrable Securities covered by such Registration Statement shall be allocated
to the remaining Investors, pro rata based on the number of Registrable Securities then held by such Investors which are covered
by such Registration Statement.

 

(h)         Inclusion
of Other Securities. Other than as set forth in this Agreement, in no event shall the Company include any securities other
than Registrable Securities on any Registration Statement without the prior written consent of the Required Holders. Until the
Applicable Date (as defined in the Securities Purchase Agreement), other than in respect of any Permitted Registration, the Company
shall not enter into any agreement providing any registration rights to any of its security holders that have any priority to any
of the Investor’s rights contained in this Agreement or adversely affect any Investor’s rights under this Agreement.
Notwithstanding anything to the contrary in this Agreement, the Company shall be permitted, at any time, to file and cause to become
effective another registration statement for the registration of shares of Common Stock (and/or warrants to purchase Common Stock)
that do not constitute Registrable Securities, or to include such securities in one or more Registration Statements, in connection
with a Permitted Registration.

 

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		3.	Related Obligations.

 

The Company shall use
its best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition
thereof, and, pursuant thereto, the Company shall have the following obligations:

 

(a)         The
Company shall prepare and file with the SEC a Registration Statement with respect to all the Registrable Securities (but in no
event later than the applicable Filing Deadline) and use its best efforts to cause such Registration Statement to become effective
as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). Subject to Allowable Grace Periods,
the Company shall keep each Registration Statement effective (and the prospectus contained therein available for use) pursuant
to Rule 415 for resales by the Investors on a delayed or continuous basis at then-prevailing market prices (and not fixed prices)
at all times until the earlier of (i) the date as of which all of the Investors may sell all of the Registrable Securities required
to be covered by such Registration Statement (disregarding any reduction pursuant to Section 2(f)) without restriction pursuant
to Rule 144 (including, without limitation, volume restrictions) and without the need for current public information required by
Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (ii) the date on which the Investors shall have sold all of the Registrable
Securities covered by such Registration Statement (the “Registration Period”). Notwithstanding anything to the
contrary contained in this Agreement, the Company shall ensure that, when filed and at all times while effective, each Registration
Statement (including, without limitation, all amendments and supplements thereto) and the prospectus (including, without limitation,
all amendments and supplements thereto) used in connection with such Registration Statement (1) shall not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein
(in the case of prospectuses, in the light of the circumstances in which they were made) not misleading and (2) will disclose (whether
directly or through incorporation by reference to other SEC filings to the extent permitted) all material information regarding
the Company and its securities. The Company shall submit to the SEC, within one (1) Business Day after the later of the date that
(i) the Company learns that no review of a particular Registration Statement will be made by the Staff or that the Staff has no
further comments on a particular Registration Statement (as the case may be) and (ii) the consent of Legal Counsel is obtained
pursuant to Section 3(c) (which consent shall be immediately sought), a request for acceleration of effectiveness of such Registration
Statement to a time and date not later than forty-eight (48) hours after the submission of such request.

 

(b)         Subject
to Section 3(r) of this Agreement, the Company shall prepare and file with the SEC such amendments (including,
without limitation, post-effective amendments) and supplements to each Registration Statement and the prospectus used in
connection with each such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933
Act, as may be necessary to keep each such Registration Statement effective at all times during the Registration Period for such
Registration Statement, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company required to be covered by such Registration Statement until such time as all of such
Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in such Registration Statement; provided, however, by 8:30 a.m. (New York time) on the Business Day immediately
following each Effective Date, the Company shall file with the SEC in accordance with Rule 424(b) under the 1933 Act the final
prospectus to be used in connection with sales pursuant to the applicable Registration Statement (whether or not such a prospectus
is technically required by such rule). In the case of amendments and supplements to any Registration Statement which are required
to be filed pursuant to this Agreement (including, without limitation, pursuant to this Section 3(b)) by reason of the Company
filing a report on Form 20-F, Form 6-K or any analogous report under the Securities Exchange Act of 1934, as amended (the “1934
Act”), the Company shall have incorporated such report by reference into such Registration Statement, if applicable,
or shall file such amendments or supplements with the SEC on the same day on which the 1934 Act report is filed which created the
requirement for the Company to amend or supplement such Registration Statement.

 

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(c)         The
Company shall (A) permit Legal Counsel to review and provide comments to the Company and Company Counsel, with respect to (i) each
Registration Statement at least five (5) Business Days prior to its filing with the SEC and (ii) all amendments and supplements
to each Registration Statement (including, without limitation, the prospectus contained therein) (except for Reports on Form 20-F,
Form 6-K, and any similar or successor reports) within a reasonable number of days prior to their filing with the SEC, and (B)
not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel reasonably objects. The
Company shall not submit a request for acceleration of the effectiveness of a Registration Statement or any amendment or supplement
thereto or to any prospectus contained therein without the prior consent of Legal Counsel, which consent shall not be unreasonably
withheld. The Company shall promptly furnish to Legal Counsel, without charge, (i) copies of any correspondence from the SEC or
the Staff to the Company or its representatives relating to each Registration Statement, provided that such correspondence shall
not contain any material, non-public information regarding the Company or any of its Subsidiaries (as defined in the Securities
Purchase Agreement), (ii) after the same is prepared and filed with the SEC, one (1) copy of each Registration Statement and
any amendment(s) and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated
therein by reference, if requested by an Investor, and all exhibits (unless such Registration Statement is available on EDGAR)
and (iii) upon the effectiveness of each Registration Statement, one (1) copy of the prospectus included in such Registration
Statement and all amendments and supplements thereto. The Company shall reasonably cooperate with Legal Counsel in performing the
Company’s obligations pursuant to this Section 3.

 

(d)         The
Company shall promptly furnish to each Investor whose Registrable Securities are included in any Registration Statement, without
charge, (i) after the same is prepared and filed with the SEC, at least one (1) copy of each Registration Statement and any amendment(s)
and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated therein
by reference, if requested by an Investor, all exhibits and each preliminary prospectus (unless such Registration Statement is
available on EDGAR), (ii) upon the effectiveness of each Registration Statement, ten (10) copies of the prospectus included in
such Registration Statement and all amendments and supplements thereto (unless such Registration Statement is available on EDGAR)
and (iii) such other documents, including, without limitation, copies of any preliminary or final prospectus, as such Investor
may reasonably request from time to time (unless such document is available on EDGAR) in order to facilitate the disposition of
the Registrable Securities owned by such Investor.

 

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(e)         The
Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification
applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities
or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions,
such amendments (including, without limitation, post-effective amendments) and supplements to such registrations and qualifications
as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may
be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business
in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general
taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall
promptly notify Legal Counsel and each Investor who holds Registrable Securities of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities
or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening
of any proceeding for such purpose.

 

(f)         The
Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable after
becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event
shall such notice contain any material, non-public information regarding the Company or any of its Subsidiaries), and, subject
to Section 3(r), promptly prepare a supplement or amendment to such Registration Statement and such prospectus contained therein
to correct such untrue statement or omission and deliver ten (10) copies of such supplement or amendment to Legal Counsel and each
Investor (or such other number of copies as Legal Counsel or such Investor may reasonably request) (unless such supplements or
amendments are available on EDGAR). The Company shall also promptly notify Legal Counsel and each Investor in writing (i) when
a prospectus or any prospectus supplement or post-effective amendment has been filed, when a Registration Statement or any post-effective
amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel and each Investor by facsimile
or e-mail on the same day of such effectiveness and by overnight mail), and when the Company receives written notice from the SEC
that a Registration Statement or any post-effective amendment will be reviewed by the SEC, (ii) of any request by the SEC for amendments
or supplements to a Registration Statement or related prospectus or related information, (iii) of the Company’s reasonable
determination that a post-effective amendment to a Registration Statement would be appropriate; and (iv) of the receipt of any
request by the SEC or any other federal or state governmental authority for any additional information relating to the Registration
Statement or any amendment or supplement thereto or any related prospectus. The Company shall respond as promptly as practicable
to any comments received from the SEC with respect to each Registration Statement or any amendment thereto (it being understood
and agreed that the Company’s response to any such comments shall be delivered to the SEC no later than ten (10) Business
Days after the receipt thereof).

 

    	10

    	 

    

 

(g)         The
Company shall (i) use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness
of each Registration Statement or the use of any prospectus contained therein, or the suspension of the qualification, or the loss
of an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction and, if such an order or
suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and (ii) notify Legal
Counsel and each Investor who holds Registrable Securities of the issuance of such order and the resolution thereof or its receipt
of actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)         If
any Investor is required under applicable securities law to be described in any Registration Statement as an underwriter and such
Investor consents to so being named an underwriter, at the request of any Investor, the Company shall furnish to such Investor,
on the date of the effectiveness of such Registration Statement and thereafter from time to time on such dates as an Investor may
reasonably request (i) a “comfort letter”, dated such date, from the Company’s independent certified public accountants
in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering, addressed to the Investors, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes
of such Registration Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed
to the Investors.

 

(i)         If
any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter and
such Investor consents to so being named an underwriter, upon the written request of such Investor, the Company shall make available
for inspection by (i) such Investor, (ii) legal counsel for such Investor and (iii) one (1) firm of accountants or other agents
retained by such Investor (collectively, the “Inspectors”), all pertinent financial and other records, and pertinent
corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably deemed
necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information which any
Inspector may reasonably request; provided, however, each Inspector shall agree in writing to hold in strict confidence and not
to make any disclosure (except to such Investor) or use of any Record or other information which the Company’s board of directors
determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (1) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required
under the 1933 Act, (2) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court
or government body of competent jurisdiction, or (3) the information in such Records has been made generally available to the public
other than by disclosure in violation of this Agreement or any other Transaction Document (as defined in the Securities Purchase
Agreement). Such Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.
Nothing herein (or in any other confidentiality agreement between the Company and such Investor, if any) shall be deemed to limit
any Investor’s ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and
regulations.

 

    	11

    	 

    

 

(j)         The
Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required to be disclosed
in such Registration Statement pursuant to the 1933 Act, (iii) the release of such information is ordered pursuant to a subpoena
or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has
been made generally available to the public other than by disclosure in violation of this Agreement or any other Transaction Document.
The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a
court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow
such Investor, at such Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, such information.

 

(k)         Without
limiting any obligation of the Company under the Securities Purchase Agreement, on and after the Initial Quotation Date, the Company
shall use its best efforts either to (i) cause all of the Registrable Securities covered by each Registration Statement to be
listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any,
if the listing of such Registrable Securities is then permitted under the rules of such exchange, (ii) secure designation and
quotation of all of the Registrable Securities covered by each Registration Statement on the OTC Bulletin Board, or (iii) if,
despite the Company’s best efforts to satisfy the preceding clauses (i) or (ii) the Company is unsuccessful in satisfying
the preceding clauses (i) or (ii), without limiting the generality of the foregoing, to use its best efforts to arrange for at
least two market makers to register with the Financial Industry Regulatory Authority, Inc. (“FINRA”) as such
with respect to such Registrable Securities. In addition, the Company shall cooperate with each Investor and any broker or dealer
through which any such Investor proposes to sell its Registrable Securities in effecting a filing with FINRA pursuant to FINRA
Rule 5110 as requested by such Investor. The Company shall pay all fees and expenses in connection with satisfying its obligations
under this Section 3(k).

 

(l)         The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts (as the
case may be) as the Investors may reasonably request from time to time and registered in such names as the Investors may request,
or, if requested by an Investor and the Ordinary Shares are traded through the facilities of the DTC (as defined below), credit
such aggregate number of Registrable Securities to be offered by such Investor to such Investor’s or its designee’s
balance account with The Depository Trust Company (“DTC”) through its Deposit/Withdrawal at Custodian system.

 

(m)         If
requested by an Investor, the Company shall as soon as practicable after receipt of notice from such Investor and subject to
Section 3(r) hereof, (i) incorporate in a prospectus supplement or post-effective amendment such information as an Investor
reasonably requests to be included therein, but only as to which information the Company Counsel, agrees (which agreement
shall not be unreasonably withheld), relating to the sale and distribution of Registrable Securities, including, without
limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being
paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all
required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any
Registration Statement or prospectus contained therein if reasonably requested by an Investor holding any Registrable
Securities.

 

    	12

    	 

    

 

(n)         The
Company shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

(o)         The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal
quarter next following the applicable Effective Date of each Registration Statement.

 

(p)         The
Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with
any registration hereunder.

 

(q)         Within
one (1) Business Day after a Registration Statement which covers Registrable Securities is declared effective by the SEC, the Company
shall deliver, and shall cause Company Counsel to deliver, to the transfer agent for such Registrable Securities (with copies to
the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such Registration Statement
has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

(r)         Notwithstanding
anything to the contrary herein (but subject to the last sentence of this Section 3(r)), at any time after the Effective Date of
a particular Registration Statement, the Company may delay the disclosure of material, non-public information concerning the Company
or any of its Subsidiaries the disclosure of which at the time is not, in the good faith opinion of the board of directors of the
Company, in the best interest of the Company and, in the opinion of Company Counsel, otherwise required (a “Grace Period”),
provided that the Company shall promptly notify the Investors in writing of the (i) existence of material, non-public information
giving rise to a Grace Period (provided that in each such notice the Company shall not disclose the content of such material, non-public
information to any of the Investors) and the date on which such Grace Period will begin and (ii) date on which such Grace
Period ends, provided further that (I) no Grace Period shall exceed ten (10) consecutive days and during any three hundred sixty
five (365) day period all such Grace Periods shall not exceed an aggregate of thirty (30) days, (II) the first day of any Grace
Period must be at least five (5) Trading Days after the last day of any prior Grace Period and (III) no Grace Period may exist
during the thirty (30) Trading Day period immediately following the Effective Date of such Registration Statement (provided that
such thirty (30) Trading Day period shall be extended by the number of Trading Days during such period and any extension thereof
contemplated by this proviso during which such Registration Statement is not effective or the prospectus contained therein is not
available for use) (each, an “Allowable Grace Period”). For purposes of determining the length of a Grace Period
above, such Grace Period shall begin on and include the date the Investors receive the notice referred to in clause (i) above and
shall end on and include the later of the date the Investors receive the notice referred to in clause (ii) above and the date referred
to in such notice. The provisions of the first sentence of Section 3(f) and the provisions of Section 3(g) hereof shall not be
applicable during the period of any Allowable Grace Period. Upon expiration of each Grace Period, the Company shall again be bound
by the first sentence of Section 3(f) and the provisions of Section 3(g) with respect to the information giving rise thereto unless
such material, non-public information is no longer applicable. Notwithstanding anything to the contrary contained in this Section
3(r), the Company shall cause its transfer agent to deliver unlegended Ordinary Shares to a transferee of an Investor in accordance
with the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which
such Investor has entered into a contract for sale, and delivered a copy of the prospectus included as part of the particular Registration
Statement (unless an exemption from such prospectus delivery requirement exists), prior to such Investor’s receipt of the
notice of a Grace Period and for which the Investor has not yet settled.

 

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		4.	Obligations of the Investors.

 

(a)         At
least five (5) Business Days prior to the first anticipated filing date of each Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such Investor with respect to such Registration Statement.
It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with
respect to the Registrable Securities of a particular Investor that such Investor shall furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held
by it, as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the Company may reasonably request.

 

(b)         Each
Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless such Investor
has notified the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities
from such Registration Statement.

 

(c)         Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant to
any Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no supplement
or amendment is required. Notwithstanding anything to the contrary in this Section 4(c), the Company shall cause its transfer agent
to deliver unlegended Ordinary Shares to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement
in connection with any sale of Registrable Securities with respect to which such Investor has entered into a contract for sale
prior to the Investor’s receipt of a notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of Section 3(f) and for which such Investor has not yet settled.

 

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(d)         Each
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it
in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

		5.	Expenses of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, FINRA filing fees (if any), blue sky fees and fees and disbursements of counsel for the Company shall be paid by the Company.
The Company shall have no obligation to pay the expenses of Iroquois or any Investor incurred in connection with any registration,
filing or qualification pursuant to Sections 2 and 3 of this Agreement, provided that the Company shall reimburse Iroquois for
the fees and disbursements of Legal Counsel, which amount shall be limited to an aggregate total of $5,000.

 

		6.	Indemnification.

 

(a)         To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor and each
of its directors, officers, shareholders, members, partners, employees, agents, advisors, representatives (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title)
and each Person, if any, who controls such Investor within the meaning of the 1933 Act or the 1934 Act and each of the directors,
officers, shareholders, members, partners, employees, agents, advisors, representatives (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title) of such controlling
Persons (each, an “Indemnified Person”), against any losses, obligations, claims, damages, liabilities, contingencies,
judgments, fines, penalties, charges, costs (including, without limitation, court costs, reasonable attorneys’ fees and costs
of defense and investigation), amounts paid in settlement or expenses, joint or several, (collectively, “Claims”)
incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from
the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending
or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to
which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration
Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under
the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue
Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained
in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus
(as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading or (iii) any violation or alleged violation by the Company of the
1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing
clauses (i) through (iii) being, collectively, “Violations”). Subject to Section 6(c), the Company shall reimburse
the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified
Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing
to the Company by such Indemnified Person for such Indemnified Person expressly for use in connection with the preparation of such
Registration Statement or any such amendment thereof or supplement thereto and (ii) shall not be available to a particular Investor
to the extent such Claim is based on a failure of such Investor to deliver or to cause to be delivered the prospectus made available
by the Company (to the extent applicable), including, without limitation, a corrected prospectus, if such prospectus or corrected
prospectus was timely made available by the Company pursuant to Section 3(d) and then only if, and to the extent that, following
the receipt of the corrected prospectus no grounds for such Claim would have existed; and (iii) shall not apply to amounts paid
in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall
not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made
by or on behalf of the Indemnified Person and shall survive the transfer of any of the Registrable Securities by any of the Investors
pursuant to Section 9.

 

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(b)         In
connection with any Registration Statement in which an Investor is participating, such Investor agrees to severally and not jointly
indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each
of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company within
the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified
Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any Violation, in each case, to the extent, and only to the extent, that such Violation
occurs in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use
in connection with such Registration Statement; and, subject to Section 6(c) and the below provisos in this Section 6(b), such
Investor will reimburse an Indemnified Party any legal or other expenses reasonably incurred by such Indemnified Party in connection
with investigating or defending any such Claim; provided, however, the indemnity agreement contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld or
delayed, provided further that such Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified
Damages as does not exceed the net proceeds to such Investor as a result of the applicable sale of Registrable Securities pursuant
to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified Party and shall survive the transfer of any of the Registrable Securities by any of the Investors
pursuant to Section 9.

 

    	16

    	 

    

 

(c)         Promptly
after receipt by an Indemnified Person or Indemnified Party (as the case may be) under this Section 6 of notice of the commencement
of any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim, such Indemnified
Person or Indemnified Party (as the case may be) shall, if a Claim in respect thereof is to be made against any indemnifying party
under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party
shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person or the Indemnified Party (as the case may be); provided, however, an Indemnified Person or Indemnified
Party (as the case may be) shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid
by the indemnifying party if: (i) the indemnifying party has agreed in writing to pay such fees and expenses; (ii) the indemnifying
party shall have failed promptly to assume the defense of such Claim and to employ counsel reasonably satisfactory to such Indemnified
Person or Indemnified Party (as the case may be) in any such Claim; or (iii) the named parties to any such Claim (including, without
limitation, any impleaded parties) include both such Indemnified Person or Indemnified Party (as the case may be) and the indemnifying
party, and such Indemnified Person or such Indemnified Party (as the case may be) shall have been advised by counsel that a conflict
of interest is likely to exist if the same counsel were to represent such Indemnified Person or such Indemnified Party and the
indemnifying party (in which case, if such Indemnified Person or such Indemnified Party (as the case may be) notifies the indemnifying
party in writing that it elects to employ separate counsel at the expense of the indemnifying party, then the indemnifying party
shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party, provided
further that in the case of clause (iii) above the indemnifying party shall not be responsible for the reasonable fees and expenses
of more than one (1) separate legal counsel for such Indemnified Person or Indemnified Party (as the case may be). The Indemnified
Party or Indemnified Person (as the case may be) shall reasonably cooperate 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 or Indemnified Person (as the case may be) which relates to such action or Claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person (as the case may be) reasonably apprised at all times
as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for
any settlement of any action, claim or proceeding effected without its prior written consent; provided, however, the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Indemnified Party or Indemnified Person (as the case may be), consent to entry of any judgment or enter into any settlement
or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person (as the case may be) of a release from all liability in respect to such Claim or litigation, and such
settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person (as the
case may be) with respect to all third parties, firms or corporations relating to the matter for which indemnification has been
made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such
action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party (as the case may
be) under this Section 6, except to the extent that the indemnifying party is materially and adversely prejudiced in its ability
to defend such action.

 

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(d)         No
Person involved in the sale of Registrable Securities who is guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) in connection with such sale shall be entitled to indemnification from any Person involved in such sale
of Registrable Securities who is not guilty of fraudulent misrepresentation.

 

(e)         The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

(f)         The
indemnity and contribution agreements contained herein shall be in addition to (i) any cause of action or similar right of the
Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party
may be subject to pursuant to the law.

 

		7.	Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however:
(i) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under the
fault standards set forth in Section 6 of this Agreement, (ii) no Person involved in the sale of Registrable Securities which Person
is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall
be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (iii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received
by such seller from the applicable sale of such Registrable Securities pursuant to such Registration Statement. Notwithstanding
the provisions of this Section 7, no Investor shall be required to contribute, in the aggregate, any amount in excess of the amount
by which the net proceeds actually received by such Investor from the applicable sale of the Registrable Securities subject to
the Claim exceeds the amount of any damages that such Investor has otherwise been required to pay, or would otherwise be required
to pay under Section 6(b), by reason of such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding
the foregoing, the contribution agreement contained in this Section 7 shall not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld
or delayed

 

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		8.	Reports Under the 1934 Act.

 

With a view to making
available to the Investors the benefits of Rule 144, on and after the Self Filing Effective Date, the Company agrees to:

 

(a)         make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)         file
with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so
long as the Company remains subject to such requirements (it being understood and agreed that nothing herein shall limit any obligations
of the Company under the Securities Purchase Agreement) and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

 

(c)         furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting, submission and posting requirements of Rule 144 and the 1934 Act, (ii) a copy
of the most recent Form 20-F of the Company and such other reports and documents so filed by the Company with the SEC if such reports
are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested to permit the Investors to
sell such securities pursuant to Rule 144 without registration.

 

		9.	Assignment of Registration Rights.

 

All or any portion
of the rights under this Agreement shall be automatically assignable by each Investor to any transferee or assignee (as the case
may be) of all or any portion of such Investor’s Registrable Securities, Notes or Warrants if: (i) such Investor agrees in
writing with such transferee or assignee (as the case may be) to assign all or any portion of such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such transfer or assignment (as the case may be); (ii) the Company is,
within a reasonable time after such transfer or assignment (as the case may be), furnished with written notice of (a) the name
and address of such transferee or assignee (as the case may be), and (b) the securities with respect to which such registration
rights are being transferred or assigned (as the case may be); (iii) immediately following such transfer or assignment (as the
case may be) the further disposition of such securities by such transferee or assignee (as the case may be) is restricted under
the 1933 Act or applicable state securities laws if so required; (iv) at or before the time the Company receives the written notice
contemplated by clause (ii) of this sentence such transferee or assignee (as the case may be) agrees in writing with the Company
to be bound by all of the provisions contained herein; (v) such transfer or assignment (as the case may be) shall have been made
in accordance with the applicable requirements of the Securities Purchase Agreement, the Notes, the Warrants and the other Transaction
Documents (as defined in the Securities Purchase Agreement) (as the case may be); and (vi) such transfer or assignment (as the
case may be) shall have been conducted in accordance with all applicable federal and state securities laws.

 

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		10.	Amendment of Registration Rights.

 

Provisions of
this Agreement may be amended only with the written consent of the Company and the Required Holders. Any amendment effected
in accordance with this Section 10 shall be binding upon each Investor and the Company, provided that no such amendment shall
be effective to the extent that it (1) applies to less than all of the holders of the holders of Registrable Securities, (2)
imposes any obligation or liability on any Investor without such Investor’s prior written consent (which may be granted
or withheld in such Investor’s sole discretion) or (3) applies retroactively. No waiver shall be effective unless it is
in writing and signed by an authorized representative of the waiving party, provided that the Required Holders (in a writing
signed by all of the Required Holders) may waive any provision of this Agreement, and any waiver of any provision of this
Agreement made in conformity with the provisions of this Section 10 shall be binding on each Investor, provided that no such
waiver shall be effective to the extent that it (1) applies to less than all the Investors (unless a party gives a waiver as
to itself only) or (2) imposes any obligation or liability on any Investor without such Investor’s prior written
consent (which may be granted or withheld in such Investor’s sole discretion). No consideration shall be offered or
paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same
consideration also is offered to all of the parties to this Agreement.

 

		11.	Miscellaneous.

 

(a)         Solely
for purposes of this Agreement, a Person is deemed to be a holder of Registrable Securities whenever such Person owns, or is deemed
to own, of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two
or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice
or election received from such record owner of such Registrable Securities.

 

(b)         Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); (iii) with respect to Section 3(c), by e-mail (provided confirmation of transmission is electronically
generated and kept on file by the sending party); or (iv) one (1) Business Day after deposit with a nationally recognized
overnight delivery service with next day delivery specified, in each case, properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Mark Cohen

Chairman of the Board – Morria Biopharmaceuticals
PLC

c/o Pearl Cohen Zedek Latzer, LLP

1500 Broadway

New York, NY 10036

Telephone: (646) 878-0804

Facsimile: (646) 878-0801

Email: markc@pczlaw.com

 

    	20

    	 

    

 

With a copy (for informational
purposes only) to:

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue

New York, NY 10017

Telephone: (212) 935-3000

Facsimile: (212) 983-3115

Attention: Kenneth R. Koch, Esq.

   Jeffrey P. Schultz, Esq.

 

If to Legal Counsel:

 

Ellenoff Grossman & Schole LLP

150 East 42nd Street

New York, New York 10017

Telephone: (212) 370-1300

Facsimile: (212) 370-7889

Attention: Robert F. Charron, Esq.

 

If to a Buyer, to its address, facsimile
number or e-mail address (as the case may be) set forth on the Schedule of Buyers attached to the Securities Purchase Agreement,
with copies to such Buyer’s representatives as set forth on the Schedule of Buyers, or to such other address, facsimile number
and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given
to each other party five (5) days prior to the effectiveness of such change, provided that EGS shall only be provided notices sent
to Iroquois. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine or e-mail transmission containing the time,
date and recipient facsimile number or e-mail address or (C) provided by a courier or overnight courier service shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

(c)         Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

(d)         All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party 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 suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such 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. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	21

    	 

    

 

(e)         This
Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein constitute the entire agreement among the parties hereto and thereto solely with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and
the instruments referenced herein and therein supersede all prior agreements and understandings among the parties hereto solely
with respect to the subject matter hereof and thereof; provided, however, nothing contained in this Agreement or any other Transaction
Document shall (or shall be deemed to) (i) have any effect on any agreements any Investor has entered into with, or any instrument
that any Investor received from, the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment
made by such Investor in the Company, (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of
its Subsidiaries or any rights of or benefits to any Investor or any other Person in any agreement entered into prior to the date
hereof between or among the Company and/or any of its Subsidiaries and any Investor or any instrument that any Investor received
prior to the date hereof from the Company and/or any of its Subsidiaries and all such agreements and instruments shall continue
in full force and effect or (iii) limit any obligations of the Company under any of the other Transaction Documents.

 

(f)         Subject
to compliance with Section 9

(if applicable), this Agreement shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto. This Agreement is not for the benefit of, nor may any provision hereof be enforced by,
any Person, other than the parties hereto, their respective permitted successors and assigns and the Persons referred to in Sections
6

and 7

hereof.

 

(g)         The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless
the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular
and plural forms thereof. The terms “including,” “includes,” “include” and words of like import
shall be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

 

(h)         This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any
signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed
signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such signature page were an original thereof.

 

    	22

    	 

    

 

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

 

(j)         The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no
rules of strict construction will be applied against any party. Notwithstanding anything to the contrary set forth in Section
10, terms used in this Agreement but defined in the other Transaction Documents shall have the meanings ascribed to such terms
on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by each Investor.

 

(k)         All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders.

 

(l)         The
obligations of each Investor under this Agreement and the other Transaction Documents are several and not joint with the obligations
of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor
under this Agreement or any other Transaction Document. Nothing contained herein or in any other Transaction Document, and no action
taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as, and the Company acknowledges
that the Investors do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or
create a presumption that the Investors are in any way acting in concert or as a group or entity with respect to such obligations
or the transactions contemplated by the Transaction Documents or any matters, and the Company acknowledges that the Investors are
not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or the transactions
contemplated by this Agreement or any of the other the Transaction Documents. Each Investor shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction
Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such
purpose. The use of a single agreement with respect to the obligations of the Company contained herein was solely in the control
of the Company, not the action or decision of any Investor, and was done solely for the convenience of the Company and not because
it was required or requested to do so by any Investor. It is expressly understood and agreed that each provision contained in this
Agreement and in each other Transaction Document is between the Company and an Investor, solely, and not between the Company and
the Investors collectively and not between and among Investors.

 

[signature pages follow]

 

 

    	23

    	 

    

 

IN WITNESS WHEREOF,
Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed as
of the date first written above.

 

	 	COMPANY:
	 	 
	 	morria biopharmaceuticals plc
	 	 	 
	 	By:	/s/ YUVAL
    COHEN
	 	 	Name: Yuval Cohen
	 	 	Title: President

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
Buyer and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed as
of the date first written above.

 

	 	BUYERS:
	 	 
	 	IROQUOIS MASTER FUND LTD.
	 	 
	 	/s/ JOSHUA
    SILVERMAN
	 	 	 
	 	By:       Joshua Silverman, Authorized Signatory
	 	 
	 	ALPHA CAPITAL ANSTALT
	 	 
	 	/s/ KONRAD ACKERMAN
	 	 	 
	 	By: Konrad Ackerman, Director 

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

	 	 
	 	 
	 	 
	Attention: 	 	 
	 	 	 

 

Re:[_________________]

 

Ladies and Gentlemen:

 

[We are][I am] counsel
to Morria Biopharmaceuticals PLC, a public limited company formed under the laws of England and Wales (the “Company”),
and have represented the Company in connection with that certain Securities Purchase Agreement (the “Securities Purchase
Agreement”) entered into by and among the Company and the buyers named therein (collectively, the “Holders”)
pursuant to which the Company issued to the Holders (i) senior secured convertible notes (the “Notes”) convertible
into the Company’s ordinary shares, par value £0.01 per share (the “Ordinary Shares”) and (ii)
warrants exercisable for Ordinary Shares (the “Warrants”). Pursuant to the Securities Purchase Agreement, the
Company also has entered into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”)
pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration
Rights Agreement), including the Ordinary Shares issuable upon conversion of the Notes and exercise of the Warrants, under the
Securities Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under
the Registration Rights Agreement, on ____________ ___, 2012, the Company filed a Registration Statement on Form F-1 (File No.
333-_____________) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”)
relating to the Registrable Securities which names each of the Holders as a selling shareholder thereunder.

 

In connection with the
foregoing, [we][I] advise you that a member of the SEC’s staff has advised [us][me] by telephone that the SEC has entered
an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS]
and [we][I] have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its
effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the Registration Statement.

 

This letter shall serve
as our standing opinion to you that the Ordinary Shares underlying the Notes and the Warrants are freely transferable by the Holders
pursuant to the Registration Statement. You need not require further letters from us to effect any future legend-free issuance
or reissuance of such Ordinary Shares to the Holders as contemplated by the Company’s Irrevocable Transfer Agent Instructions
dated _________ __, 2012.

 

    	 

    	 

    

 

	 	Very truly yours,	 
	 	 	 
	 	[ISSUER’S COUNSEL]	 
	 	 	 
	 	By:	 	 
	 	 	 	 

 

CC:[LIST NAMES OF HOLDERS]

 

    	 

    	 

    

 

EXHIBIT B

 

SELLING STOCKHOLDERS

 

The ordinary shares
being offered by the selling stockholders are those issuable to the selling stockholders upon conversion of the notes and exercise
of the warrants. For additional information regarding the issuance of the notes and the warrants, see “Private Placement
of Notes and Warrants” above. We are registering the ordinary shares in order to permit the selling stockholders to offer
the shares for resale from time to time. Except for the ownership of the notes and the warrants issued pursuant to the Securities
Purchase Agreement, the selling stockholders have not had any material relationship with us within the past three years.

 

The table below lists
the selling stockholders and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the ordinary shares held by each of the selling
stockholders. The second column lists the number of ordinary shares beneficially owned by the selling stockholders, based on their
respective ownership of ordinary shares, notes and warrants, as of ________, 20__, assuming conversion of the notes and exercise
of the warrants held by each such selling stockholder on that date, but taking account of any limitations on conversion and exercise
set forth therein.

 

The third column lists
the ordinary shares being offered by this prospectus by the selling stockholders and does not take into account any limitations
on (i) conversion of the notes set forth therein or (ii) exercise of the warrants set forth therein.

 

In accordance with
the terms of a registration rights agreement with the holders of the notes and the warrants, this prospectus generally covers the
resale of 133% of the sum of (i) the maximum number of ordinary shares issuable upon conversion of the notes and (ii) the maximum
number of ordinary shares issuable upon exercise of the warrants, in each case, determined as if the outstanding notes and warrants
were converted or exercised (as the case may be) in full (without regard to any limitations on conversion or exercise contained
therein) as of the trading day immediately preceding the date this registration statement was initially filed with the SEC. Because
the conversion price of the notes and the exercise price of the warrants may be adjusted, the number of shares that will actually
be issued may be more or less than the number of shares being offered by this prospectus. The fourth column assumes the sale of
all of the shares offered by the selling stockholders pursuant to this prospectus.

 

Under the terms of
the notes and the warrants, a selling stockholder may not convert the notes or exercise the warrants to the extent (but only to
the extent) such selling stockholder or any of its affiliates would beneficially own a number of shares of our ordinary shares
which would exceed 4.9%. The number of shares in the second column reflects these limitations. The selling stockholders may sell
all, some or none of their shares in this offering. See “Plan of Distribution.”

 

	Name of Selling Stockholder	 	Number of Ordinary

    Shares Owned Prior to

Offering	 	 	Maximum Number of
 Ordinary Shares to be Sold
 Pursuant to this Prospectus	 	 	Number of  Ordinary

Shares Owned After

Offering	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

* Table to be completed based on information provided by the
Buyers and their assignees.

 

    	 

    	 

    

 

PLAN OF DISTRIBUTION

 

We are registering
the ordinary shares issuable upon conversion of the notes and exercise of the warrants to permit the resale of these ordinary shares
by the holders of the notes and warrants from time to time after the date of this prospectus. We will not receive any of the proceeds
from the sale by the selling stockholders of the ordinary shares. We will bear all fees and expenses incident to our obligation
to register the ordinary shares.

 

The selling stockholders
may sell all or a portion of the ordinary shares held by them and offered hereby from time to time directly or through one or more
underwriters, broker-dealers or agents. If the ordinary shares are sold through underwriters or broker-dealers, the selling stockholders
will be responsible for underwriting discounts or commissions or agent’s commissions. The ordinary shares may be sold in
one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at
the time of sale or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,
pursuant to one or more of the following methods:

 

		·	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

 

		·	in the over-the-counter market;

 

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		·	through the writing or settlement of options, whether such options are listed on an options exchange
or otherwise;

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	privately negotiated transactions;

 

		·	short sales made after the date the Registration Statement is declared effective by the SEC;

 

		·	broker-dealers may agree with a selling securityholder to sell a specified number of such shares
at a stipulated price per share;

 

		·	a combination of any such methods of sale; and

 

    	 

    	 

    

 

		·	any other method permitted pursuant to applicable law.

 

The selling stockholders
may also sell ordinary shares under Rule 144 promulgated under the Securities Act of 1933, as amended, if available, rather than
under this prospectus. In addition, the selling stockholders may transfer the ordinary shares by other means not described in this
prospectus. If the selling stockholders effect such transactions by selling ordinary shares to or through underwriters, broker-dealers
or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions
from the selling stockholders or commissions from purchasers of the ordinary shares for whom they may act as agent or to whom they
may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may
be in excess of those customary in the types of transactions involved). In connection with sales of the ordinary shares or otherwise,
the selling stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the
ordinary shares in the course of hedging in positions they assume. The selling stockholders may also sell ordinary shares short
and deliver ordinary shares covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling stockholders may also loan or pledge ordinary shares to broker-dealers that in turn may sell
such shares.

 

The selling stockholders
may pledge or grant a security interest in some or all of the notes, warrants or ordinary shares owned by them and, if they default
in the performance of their secured obligations, the pledgees or secured parties may offer and sell the ordinary shares from time
to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the
Securities Act amending, if necessary, the list of selling stockholders to include the pledgee, transferee or other successors
in interest as selling stockholders under this prospectus. The selling stockholders also may transfer and donate the ordinary shares
in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial
owners for purposes of this prospectus.

 

To the extent required
by the Securities Act and the rules and regulations thereunder, the selling stockholders and any broker-dealer participating in
the distribution of the ordinary shares may be deemed to be “underwriters” within the meaning of the Securities Act,
and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions
or discounts under the Securities Act. At the time a particular offering of the ordinary shares is made, a prospectus supplement,
if required, will be distributed, which will set forth the aggregate amount of ordinary shares being offered and the terms of the
offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting
compensation from the selling stockholders and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.

 

Under the securities
laws of some states, the ordinary shares may be sold in such states only through registered or licensed brokers or dealers. In
addition, in some states the ordinary shares may not be sold unless such shares have been registered or qualified for sale in such
state or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance
that any selling stockholder will sell any or all of the ordinary shares registered pursuant to the registration statement, of
which this prospectus forms a part.

 

    	 

    	 

    

 

The selling stockholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation
M of the Exchange Act, which may limit the timing of purchases and sales of any of the ordinary shares by the selling stockholders
and any other participating person. To the extent applicable, Regulation M may also restrict the ability of any person engaged
in the distribution of the ordinary shares to engage in market-making activities with respect to the ordinary shares. All of the
foregoing may affect the marketability of the ordinary shares and the ability of any person or entity to engage in market-making
activities with respect to the ordinary shares.

 

We will pay all expenses
of the registration of the ordinary shares pursuant to the registration rights agreement, estimated to be $[     ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or “blue sky” laws; provided, however, a selling stockholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act in
accordance with the registration rights agreements or the selling stockholders will be entitled to contribution. We may be indemnified
by the selling stockholders against civil liabilities, including liabilities under the Securities Act that may arise from any written
information furnished to us by the selling stockholder specifically for use in this prospectus, in accordance with the related
registration rights agreements or we may be entitled to contribution.

 

Once sold under the
registration statement, of which this prospectus forms a part, the ordinary shares will be freely tradable in the hands of persons
other than our affiliates.SECURITY AGREEMENT

 

This SECURITY
AGREEMENT (this “Agreement”), dated as of April 4, 2012, is made by and among the grantors listed on
the signature pages hereof (collectively, jointly and severally, the “Grantors” and each, individually, a
“Grantor”), and the secured parties listed on the signature pages hereof (collectively, the
“Secured Parties” and each, individually, a “Secured Party”).

 

RECITALS

 

WHEREAS,
pursuant to that certain Securities Purchase Agreement, dated as of April 3, 2012 (as may be amended, restated, supplemented,
or otherwise modified from time to time, including all schedules thereto, collectively, the “Securities Purchase
Agreement”), by and among Morria Biopharmaceuticals PLC, a public limited company formed under the laws of England
and Wales (“Parent”), and each of the Secured Parties, Parent has agreed to sell, and each of the Secured
Parties have each agreed to purchase, severally and not jointly, the Securities (as defined in the Securities Purchase
Agreement); and

 

WHEREAS, each
Grantor other than Parent is a direct or indirect wholly-owned Subsidiary (as defined below) of Parent and will receive direct
and substantial benefits from the purchase by each of the Secured Parties of the Securities; and

 

WHEREAS, in
order to induce the Secured Parties to purchase, severally and not jointly, the Securities as provided for in the Securities Purchase
Agreement, Grantors have agreed to grant a continuing security interest in and to the Collateral in order to secure the prompt
and complete payment, observance and performance of the Secured Obligations.

 

AGREEMENTS

 

NOW, THEREFORE,
for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.         Defined Terms.
All capitalized terms used herein (including in the preamble and recitals hereof) without definition shall have the meanings ascribed
thereto in the Notes. Any terms used in this Agreement that are defined in the Code shall be construed and defined as set forth
in the Code unless otherwise defined herein or in the Notes; provided, however, if the Code is used to define any term used herein
and if such term is defined differently in different Articles of the Code, the definition of such term contained in Article 9 of
the Code shall govern. In addition to those terms defined elsewhere in this Agreement, as used in this Agreement, the following
terms shall have the following meanings:

 

(a)       “Account”
means an account (as that term is defined in the Code).

 

(b)       “Account
Debtor” means an account debtor (as that term is defined in the Code).

 

    	 

    	 

    
  

(c)       “Bankruptcy
Code” means title 11 of the United States Code, as in effect from time to time.

 

(d)       “Books”
means books and records (including, without limitation, each Grantor’s Records) indicating, summarizing, or evidencing each
Grantor’s assets (including the Collateral) or liabilities, each Grantor’s Records relating to its business operations
(including, without limitation, stock ledgers) or financial condition, and each Grantor’s goods or General Intangibles related
to such information.

 

(e)       “Chattel
Paper” means chattel paper (as that term is defined in the Code) and includes tangible chattel paper and electronic chattel
paper.

 

(f)       “Closing
Date” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(g)       “Code”
means the New York Uniform Commercial Code, as in effect from time to time; provided, however, in the event that, by reason of
mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect to any Secured Party’s
Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State
of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies.

 

(h)       “Collateral”
has the meaning specified therefor in Section 2.

 

(i)        “Commencement
Notice” means a written notice, given by any Secured Party to the other Secured Parties in accordance with the notice
provisions set forth in the Securities Purchase Agreement, pursuant to which such Secured Party notifies the other Secured Parties
of the existence of one or more Events of Default and of such Secured Party’s intent to commence the exercise of one or more
of the remedies provided for under this Agreement with respect to all or any portion of the Collateral as a consequence thereof,
which notice shall incorporate a reasonably detailed description of each Event of Default then existing and of the remedial action
proposed to be taken.

 

(j)       “Commercial
Tort Claims” means commercial tort claims (as that term is defined in the Code), and includes those commercial tort claims
listed on Schedule 1 attached hereto.

 

(k)       “Copyrights”
means all copyrights and copyright registrations, and also includes (i) the copyright registrations and recordings thereof and
all applications in connection therewith listed on Schedule 2 attached hereto and made a part hereof, (ii) all reissues,
continuations, extensions or renewals thereof, (iii) all income, royalties, damages and payments now and hereafter due or payable
under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments
for past or future infringements or dilutions thereof, (iv) the right to sue for past, present and future infringements and dilutions
thereof, (v) the goodwill of each Grantor’s business symbolized by the foregoing or connected therewith, and (vi) all of
each Grantor’s rights corresponding thereto throughout the world.

 

    	2

    	 

    

  

(l)       “Copyright
Security Agreement” means each Copyright Security Agreement among Grantors, or any of them, and Secured Parties, in substantially
the form of Exhibit A attached hereto, pursuant to which Grantors have granted to each Secured Party a security interest
in all their respective Copyrights, as may be amended, restated, supplemented, or otherwise modified from time to time.

 

(m)       “Deposit
Account” means a deposit account (as that term is defined in the Code).

 

(n)        “Equipment”
means all equipment (as that term is defined in the Code) in all of its forms of the applicable Grantor, wherever located,
and including, without limitation, all machinery, apparatus, installation facilities and other tangible personal property, and
all parts thereof and all accessions, additions, attachments, improvements, substitutions, replacements and proceeds thereto and
therefor.

 

(o)       “Event
of Default” has the meaning specified therefor in the Notes.

 

(p)       “General
Intangibles” means general intangibles (as that term is defined in the Code) and, in any event, includes payment intangibles,
contract rights, rights to payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill
(including the goodwill associated with any Trademark, Patent, or Copyright), Patents, Trademarks, Copyrights, URLs and domain
names, industrial designs, other industrial or Intellectual Property or rights therein or applications therefor, whether under
license or otherwise, programs, programming materials, blueprints, drawings, purchase orders, customer lists, monies due or recoverable
from pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, including Intellectual
Property Licenses, infringement claims, computer programs, information contained on computer disks or tapes, software, literature,
reports, catalogs, pension plan refunds, pension plan refund claims, insurance premium rebates, tax refunds, and tax refund claims,
interests in a partnership or limited liability company which do not constitute a security under Article 8 of the Code, and any
other personal property other than Commercial Tort Claims, money, Accounts, Chattel Paper, Deposit Accounts, goods, Investment
Related Property, Negotiable Collateral, and oil, gas, or other minerals before extraction.

 

(q)       “Governmental
Authority” means any domestic or foreign federal, state, local, or other governmental or administrative body, instrumentality,
board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar
dispute-resolving panel or body.

 

(r)       “Guaranty”
means each Guaranty, in the form attached hereto as Exhibit D, executed by each Guarantor in favor of any or all
of the Secured Parties, together with any other guaranty or similar agreement now or hereafter executed by a Guarantor in favor
of any or all of the Secured Parties in connection with the Notes or any of the other Transaction Documents, as may be amended,
restated, supplemented, or otherwise modified from time to time, and all of the foregoing are collectively referred to herein as
the “Guaranties.”

 

    	3

    	 

    

  

(s)       “Guarantor”
means each Grantor, other than Parent, and each other Person that now or hereafter executes a Guaranty.

 

(t)       “Insolvency
Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under
any other state or federal bankruptcy or insolvency law or any equivalent laws in any other jurisdiction, assignments for the benefit
of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.

 

(u)       “Intellectual
Property” means Patents, Copyrights, Trademarks, the goodwill associated with such Trademarks, trade secrets and customer
lists, and Intellectual Property Licenses.

 

(v)       “Intellectual
Property Licenses” means rights under or interests in any patent, trademark, copyright or other intellectual property,
including software license agreements with any other party, whether the applicable Grantor is a licensee or licensor under any
such license agreement, including the license agreements listed on Schedule 3 attached hereto and made a part hereof,
as may be amended, restated, supplemented, or otherwise modified from time to time. Notwithstanding anything to the contrary in
the Security Documents, and for the avoidance of doubt, the term Intellectual Property Licenses shall in no manner be deemed to
include any of the patents, trademarks, copyrights or other intellectual property that are the subject matter of any Intellectual
Property Licenses pursuant to which the Grantor is a licensee, except to the extent that the Grantor has rights to such patents,
trademarks, copyrights or other intellectual property without consideration to, and independent of, the rights provided under the
related Intellectual Property Licenses.

 

(w)       “Inventory”
means all inventory (as that term is defined in the Code) in all of its forms of the applicable Grantor, wherever located, including,
without limitation, (i) all goods in which the applicable Grantor has an interest in mass or a joint or other interest or right
of any kind (including goods in which the applicable Grantor has an interest or right as consignee), and (ii) all goods which are
returned to or repossessed by the applicable Grantor, and all accessions thereto, products thereof and documents therefor.

 

(x)       “Investment
Related Property” means (i) investment property (as that term is defined in the Code), and (ii) all of the following
(regardless of whether classified as investment property under the Code): all Pledged Interests, Pledged Operating Agreements,
and Pledged Partnership Agreements.

 

(y)       “Lien”
has the meaning specified therefor in the Notes.

 

    	4

    	 

    

  

(z)       “Negotiable
Collateral” means letters of credit, letter-of-credit rights, instruments, promissory notes, drafts, and documents.

 

(aa)      “New
Subsidiary” has the meaning specified therefor in the Notes.

 

(bb)     “Notes”
has the meaning specified therefor in the Securities Purchase Agreement.

 

(cc)      “Patents”
means all patents and patent applications, and also includes (i) the patents and patent applications listed on Schedule 4
attached hereto and made a part hereof, (ii) all renewals thereof, (iii) all income, royalties, damages and payments now and hereafter
due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and damages
and payments for past or future infringements or dilutions thereof, (iv) the right to sue for past, present and future infringements
and dilutions thereof, and (v) all of each Grantor’s rights corresponding thereto throughout the world.

 

(dd)    “Patent
Security Agreement” means each Patent Security Agreement among Grantors and Secured Parties in substantially the form
of Exhibit B attached hereto, pursuant to which Grantors have granted to each Secured Party a security interest in
all their respective Patents, as may be amended, restated, supplemented, or otherwise modified from time to time.

 

(ee)    “Permitted
Liens” has the meaning specified therefor in the Notes.

 

(ff)     “Permitted
Secured Party” means, with respect to the exercise of any remedy provided for under this Agreement, any Secured Party
that has delivered a Commencement Notice with respect to the exercise of such remedy to the other Secured Parties and has not received
a Veto Notice with respect thereto within the Veto Period; provided, however, there shall only be a single Permitted Secured Party
that may exercise any specific remedy at any one time (it being agreed that if a Commencement Notice is delivered by more than
one Secured Party with respect to any remedy provided for under this Agreement, then the first Secured Party to deliver a Commencement
Notice and not receive a Veto Notice within the Veto Period shall be the only Secured Party that may exercise such remedy).

 

(gg)   “Person”
has the meaning specified therefor in the Securities Purchase Agreement.

 

(hh)   “Pledged
Companies” means, each Person listed on Schedule 5 hereto as a “Pledged Company,” together
with each other Person all or a portion of whose Stock is acquired or otherwise owned by a Grantor after the date hereof.

 

(ii)     “Pledged
Interests” means all of each Grantor’s right, title and interest in and to all of the Stock now or hereafter owned
by such Grantor, regardless of class or designation, including all substitutions therefor and replacements thereof, all proceeds
thereof and all rights relating thereto, also including any certificates representing the Stock, the right to receive any certificates
representing any of the Stock, all warrants, options, share appreciation rights and other rights, contractual or otherwise, in
respect thereof, and the right to receive dividends, distributions of income, profits, surplus, or other compensation by way of
income or liquidating distributions, in cash or in kind, and cash, instruments, and other property from time to time received,
receivable, or otherwise distributed in respect of or in addition to, in substitution of, on account of, or in exchange for any
or all of the foregoing.

 

    	5

    	 

    

  

(jj)      “Pledged
Operating Agreements” means all of each Grantor’s rights, powers, and remedies under the limited liability company
operating agreements of each of the Pledged Companies that are limited liability companies, as may be amended, restated, supplemented,
or otherwise modified from time to time.

 

(kk)   “Pledged
Partnership Agreements” means all of each Grantor’s rights, powers, and remedies under the partnership agreements
of each of the Pledged Companies that are partnerships, as may be amended, restated, supplemented, or otherwise modified from time
to time.

 

(ll)      “Proceeds”
has the meaning specified therefor in Section 2.

 

(mm)  “Real
Property” means any estates or interests in real property now owned or hereafter acquired by any Grantor and the improvements
thereto.

 

(nn)    “Records”
means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable
in perceivable form.

 

(oo)   “Secured
Obligations” mean all of the present and future payment obligations of Grantors arising under this Agreement, the Notes,
the Guaranties, and the other Transaction Documents, including, without duplication, reasonable attorneys’ fees and expenses
and any interest, fees, or expenses that accrue after the filing of an Insolvency Proceeding, regardless of whether allowed or
allowable in whole or in part as a claim in any Insolvency Proceeding.

 

(pp)   “Securities
Account” means a securities account (as that term is defined in the Code).

 

(qq)  “Security
Documents” means, collectively, this Agreement, each Copyright Security Agreement, each Patent Security Agreement, each
Trademark Security Agreement and each other security agreement, pledge agreement, assignment, mortgage, security deed, deed of
trust, and other agreement or document executed and delivered by a Grantor as security for any of the Secured Obligations, as may
be amended, restated, supplemented, or otherwise modified from time to time.

 

(rr)    “Security
Interest” and “Security Interests” have the meanings specified therefor in Section 2.

 

(ss)   “Significant
Secured Party” means, on any date of determination, any Secured Party holding twenty percent (20%) or more of the aggregate
principal amount of Notes outstanding on such date.

 

    	6

    	 

    

  

(tt)     “Stock”
means all shares, options, warrants, interests (including, without limitation, membership and partnership interests), participations,
or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred
stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations
promulgated by the United States Securities and Exchange Commission and any successor thereto under the Securities Exchange Act
of 1934, as in effect from time to time).

 

(uu)    “Subsidiaries”
and “Subsidiary” each have the meanings specified therefor in the Notes.

 

(vv)   “Supporting
Obligations” means supporting obligations (as such term is defined in the Code).

 

(ww)  “Trademarks”
means all trademarks, trade names, trademark applications, service marks, service mark applications, and also includes (i) the
trade names, trademarks, trademark applications, service marks, and service mark applications listed on Schedule 6
attached hereto and made a part hereof, and (ii) all renewals thereof, (iii) all income, royalties, damages and payments now and
hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith
and damages and payments for past or future infringements or dilutions thereof, (iv) the right to sue for past, present and future
infringements and dilutions thereof, (v) the goodwill of each Grantor’s business symbolized by the foregoing or connected
therewith, and (vi) all of each Grantor’s rights corresponding thereto throughout the world.

 

(xx)     “Trademark
Security Agreement” means each Trademark Security Agreement among Grantors and Secured Parties in substantially the form
of Exhibit C attached hereto, pursuant to which Grantors have granted to each Secured Party a security interest in
all their respective Trademarks.

 

(yy)   “Transaction
Documents” has the meaning specified therefor in the Securities Purchase Agreement.

 

(zz)    “URL”
means “uniform resource locator,” an internet web address.

 

(aaa)  “Veto
Notice” means, with respect to any Commencement Notice, a written notice given by any Significant Secured Party to the
other Secured Parties in accordance with the notice provisions set forth in the Securities Purchase Agreement pursuant to which
such Significant Secured Party notifies the other Secured Parties of its objection to the commencement of the remedial action specified
in such Commencement Notice and certifies that, to the best of its knowledge, it is a Significant Secured Party.

 

(bbb)  “Veto
Period” means, with respect to any Commencement Notice (other than a Commencement Notice given by a Significant Secured
Party at a time when such Significant Secured Party is the only the Significant Secured Party), the period of ten (10) consecutive
calendar days following the delivery of such Commencement Notice to the Secured Parties (it being understood and agreed that there
shall be no Veto Period with respect to a Commencement Notice given by a Significant Secured Party at a time when such Significant
Secured Party is the only the Significant Secured Party).

 

    	7

    	 

    

  

2.          Grant of Security.
Each Grantor hereby unconditionally grants, assigns, and pledges to each Secured Party a separate, continuing security interest
(each, a “Security Interest” and, collectively, the “Security Interests”) in all assets of
such Grantor (other than Real Property) whether now owned or hereafter acquired or arising and wherever located (collectively,
the “Collateral”), including, without limitation, such Grantor’s right, title, and interest in and to
the following, whether now owned or hereafter acquired or arising and wherever located:

 

(a)      all
of such Grantor’s Accounts;

 

(b)      all
of such Grantor’s Books;

 

(c)       all
of such Grantor’s Chattel Paper;

 

(d)      all
of such Grantor’s Deposit Accounts;

 

(e)      all
of such Grantor’s Equipment and fixtures;

 

(f)       all
of such Grantor’s General Intangibles;

 

(g)      all
of such Grantor’s Inventory;

 

(h)      all
of such Grantor’s Investment Related Property;

 

(i)       all
of such Grantor’s Negotiable Collateral;

 

(j)       all
of such Grantor’s rights in respect of Supporting Obligations;

 

(k)      all
of such Grantor’s Commercial Tort Claims;

 

(l)       all
of such Grantor’s money, cash, cash equivalents, or other assets of each such Grantor that now or hereafter come into the
possession, custody, or control of any Secured Party;

 

(m)     all
of the proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance or Commercial
Tort Claims covering or relating to any or all of the foregoing, and any and all Accounts, Books, Chattel Paper, Deposit Accounts,
Equipment, General Intangibles, Inventory, Investment Related Property, Negotiable Collateral, Supporting Obligations, money, or
other tangible or intangible property resulting from the sale, lease, license, exchange, collection, or other disposition of any
of the foregoing, the proceeds of any award in condemnation with respect to any of the foregoing, any rebates or refunds, whether
for taxes or otherwise, and all proceeds of any such proceeds, or any portion thereof or interest therein, and the proceeds thereof,
and all proceeds of any loss of, damage to, or destruction of the above, whether insured or not insured, and, to the extent not
otherwise included, any indemnity, warranty, or guaranty payable by reason of loss or damage to, or otherwise with respect to any
of the foregoing (the “Proceeds”). Without limiting the generality of the foregoing, the term “Proceeds”
includes whatever is receivable or received when Investment Related Property or proceeds are sold, exchanged, collected, or otherwise
disposed of, whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity or guaranty payable to
any Grantor or any Secured Party from time to time with respect to any of the Investment Related Property;

 

    	8

    	 

    

 

provided, however,
that for the avoidance of doubt (and notwithstanding anything to the contrary in the Security Documents), no Security Interest
shall be granted pursuant to the Security Documents in respect of any Patents, Trademarks, Copyrights or other Intellectual Property
that are the subject matter of any Intellectual Property Licenses pursuant to which the Grantor is a licensee, except to the extent
that the Grantor has rights to such Patents, Trademarks, Copyrights or other Intellectual Property without consideration to, and
independent of, the rights provided under the related Intellectual Property Licenses.

 

3.          Security for
Obligations. This Agreement and the Security Interests created hereby secure the payment and performance of the Secured Obligations,
whether now existing or arising hereafter. Without limiting the generality of the foregoing, this Agreement secures the payment
of all amounts which constitute part of the Secured Obligations and would be owed by Grantors, or any of them, to Secured Parties,
or any of them, but for the fact that they are unenforceable or not allowable due to the existence of an Insolvency Proceeding
involving any Grantor.

 

4.           Grantors
Remain Liable. Anything herein to the contrary notwithstanding, (a) each of the Grantors shall remain liable under the contracts
and agreements included in the Collateral, including the Pledged Operating Agreements and the Pledged Partnership Agreements,
to perform all of the duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the
exercise by Secured Parties, or any of them, of any of the rights hereunder shall not release any Grantor from any of its duties
or obligations under such contracts and agreements included in the Collateral, and (c) no Secured Party shall have any obligation
or liability under such contracts and agreements included in the Collateral by reason of this Agreement, nor shall any Secured
Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce
any claim for payment assigned hereunder. Until an Event of Default shall occur and be continuing, except as otherwise provided
in this Agreement or any other Transaction Document, Grantors shall have the right to possession and enjoyment of the Collateral
for the purpose of conducting the ordinary course of their respective businesses, subject to and upon the terms hereof and the
other Transaction Documents. Without limiting the generality of the foregoing, it is the intention of the parties hereto that
record and beneficial ownership of the Pledged Interests, including all voting, consensual, and dividend rights, shall remain
in the applicable Grantor until the occurrence of an Event of Default and until any Secured Party shall notify the applicable
Grantor of such Secured Party’s exercise of voting, consensual, or dividend rights with respect to the Pledged Interests
pursuant to Section 15 hereof.

 

    	9

    	 

    

 

5.          Representations
and Warranties. Each Grantor hereby represents and warrants as follows:

 

(a)      The
exact legal name of each of the Grantors is set forth on the signature pages of this Agreement.

 

(b)      Schedule
7 attached hereto sets forth (i) all Real Property owned or leased by Grantors, together with all other locations of Collateral,
as of the date hereof, and (ii) the chief executive office of each Grantor as of the date hereof.

 

(c)      As of
the date hereof, no Grantor has any interest in, or title to, any Copyrights, Intellectual Property Licenses, Patents, or Trademarks
except as set forth on Schedules 2, 3, 4 and 6, respectively, attached hereto. This Agreement is effective
to create a valid and continuing Lien on such Copyrights, Intellectual Property Licenses, Patents and Trademarks and, upon filing
of the Copyright Security Agreement with the United States Copyright Office and filing of the Patent Security Agreement and the
Trademark Security Agreement with the United States Patent and Trademark Office, and the filing of appropriate financing statements
in the jurisdictions listed on Schedule 8 hereto, all action necessary or desirable to protect and perfect the Security
Interests in and to each Grantor’s Patents, Trademarks, or Copyrights has been taken and such perfected Security Interests
are enforceable as such as against any and all creditors of and purchasers from any Grantor; provided, however, that for the avoidance
of doubt, no Security Interest shall be granted pursuant to the Security Documents in respect of any Patents, Trademarks, Copyrights
or other Intellectual Property that are the subject matter of any Intellectual Property Licenses pursuant to which the Grantor
is a licensee, except to the extent that the Grantor has rights to such Patents, Trademarks, Copyrights or other Intellectual Property
without consideration to, and independent of, the rights provided under the related Intellectual Property Licenses. No Grantor
has any interest in any Copyright that is necessary in connection with the operation of such Grantor’s business, except for
those Copyrights identified on Schedule 2 attached hereto which have been registered with the United States Copyright
Office.

 

(d)      This
Agreement creates a valid security interest in all of the Collateral of each Grantor, to the extent a security interest therein
can be created under the Code, securing the payment of the Secured Obligations. Except to the extent a security interest in the
Collateral cannot be perfected by the filing of a financing statement under the Code, all filings and other actions necessary or
desirable to perfect and protect such security interest have been duly taken or will have been taken upon the filing of financing
statements listing each applicable Grantor, as a debtor, and Secured Parties, as secured parties, in the jurisdictions listed next
to such Grantor’s name on Schedule 8 attached hereto. Upon the making of such filings, Secured Parties shall
each have a first priority perfected security interest in all of the Collateral of each Grantor to the extent such security interest
can be perfected by the filing of a financing statement. All action by any Grantor necessary to protect and perfect such security
interest on each item of Collateral has been duly taken.

 

    	10

    	 

    

  

(e)      (i)
Except for the Security Interests created hereby, such Grantor is and will at all times be the sole holder of record and the legal
and beneficial owner, free and clear of all Liens other than Permitted Liens, of the Pledged Interests indicated on Schedule
5 as being owned by such Grantor and, when acquired by such Grantor, any Pledged Interests acquired after the date hereof;
(ii) all of the Pledged Interests are duly authorized, validly issued, fully paid and non-assessable and the Pledged Interests
constitute or will constitute the percentage of the issued and outstanding Stock of the Pledged Companies of such Grantor identified
on Schedule 5 hereto; (iii) such Grantor has the right and requisite authority to pledge all Investment Related Property
pledged by such Grantor to each Secured Party as provided herein; (iv) except as set forth on Schedule 5, all actions
necessary or desirable to perfect, establish the first priority of, or otherwise protect, Secured Parties’ respective Liens
in the Investment Related Property pledged hereunder, and the proceeds thereof, have been duly taken, (A) upon the execution and
delivery of this Agreement; (B) upon the taking of possession by any Secured Party of any certificates constituting the Pledged
Interests, to the extent such Pledged Interests are represented by certificates, together with undated powers endorsed in blank
by the applicable Grantor; and (C) upon the filing of financing statements in the applicable jurisdiction set forth on Schedule
8 attached hereto for such Grantor with respect to the Pledged Interests of such Grantor that are not represented by certificates;
and (v) except as set forth on Schedule 5, each Grantor has delivered to and deposited with any Secured Party (or,
with respect to any Pledged Interests created or obtained after the date hereof, will deliver and deposit in accordance with Sections
6(a) and 8 hereof) all certificates representing the Pledged Interests now or hereafter owned by such Grantor to the extent such
Pledged Interests are represented by certificates, and undated powers endorsed in blank with respect to such certificates. None
of the Pledged Interests owned or held by such Grantor has been issued or transferred in violation of any securities registration,
securities disclosure, or similar laws of any jurisdiction to which such issuance or transfer may be subject.

 

(f)       No consent,
approval, authorization, or other order or other action by, and no notice to or filing with, any Governmental Authority or any
other Person is required (i) for the grant of a Security Interest by such Grantor in and to the Collateral pursuant to this Agreement
or for the execution, delivery, or performance of this Agreement by such Grantor, or (ii) for the exercise by any Secured Party
of the voting or other rights provided in this Agreement with respect to Investment Related Property pledged hereunder or the remedies
in respect of the Collateral pursuant to this Agreement, except (A) as may be required in connection with such disposition of Investment
Related Property by laws affecting the offering and sale of securities generally and (B) for any consent that may be required for
the assignment of any Intellectual Property License that expressly provides that such Intellectual Property License is not assignable
(or is not assignable without the consent of the other party to such Intellectual Property License).

 

(g)      Schedule
9 contains a complete and accurate list of all of each Grantor’s Deposit Accounts and Securities Accounts, including,
without limitation, with respect to each bank or securities intermediary (a) the name and address of such Person and (b) the account
numbers of such accounts maintained with such Person.

 

6.          Covenants.
Each Grantor, jointly and severally, covenants and agrees with each Secured Party that from and after the date of this Agreement
and until the date of termination of this Agreement in accordance with Section 24 hereof (but only to the extent the particular
assets described in this Section 6 constitute Collateral hereunder):

 

    	11

    	 

    

  

(a)            Possession
of Collateral. In the event that any Collateral, including proceeds, is evidenced by or consists of Negotiable Collateral,
Investment Related Property, or Chattel Paper, and if and to the extent that perfection or priority of Secured Parties’ respective
Security Interests is dependent on or enhanced by possession, the applicable Grantor, immediately upon the request of any Secured
Party, shall execute such other documents and instruments as shall be requested by such Secured Party or, if applicable, endorse
and deliver physical possession of such Negotiable Collateral, Investment Related Property, or Chattel Paper to such Secured Party,
together with such undated powers endorsed in blank as shall be requested by such Secured Party.

 

(b)            Chattel Paper.

 

(i)         Each
Grantor shall take all steps reasonably necessary to grant each Secured Party control of all Chattel Paper in accordance with the
Code and all “transferable records” as that term is defined in Section 16 of the Uniform Electronic Purchase Act and
Section 201 of the federal Electronic Signatures in Global and National Commerce Act as in effect in any relevant jurisdiction;
and

 

(ii)        If
any Grantor retains possession of any Chattel Paper or instruments (which retention of possession shall be subject to the extent
permitted hereby and by the Securities Purchase Agreement), promptly upon the request of any Secured Party, such Chattel Paper
and instruments shall be marked with the following legend: “This writing and the obligations evidenced or secured hereby
are subject to the Security Interests of [names of Secured Parties].”

 

(c)            [RESERVED]

 

(d)            Letter-of-Credit
Rights. Each Grantor that is or becomes the beneficiary of a letter of credit shall promptly (and in any event within 2 Business
Days after becoming a beneficiary) notify Secured Parties thereof and, upon the request by any Secured Party, enter into a multi-party
agreement with Secured Parties and the issuing or confirming bank with respect to letter-of-credit rights assigning such letter-of-credit
rights to Secured Parties and directing all payments thereunder to Secured Parties, all in form and substance satisfactory to Secured
Parties.

 

(e)            Commercial
Tort Claims. Each Grantor shall promptly (and in any event within 2 Business Days of receipt thereof) notify Secured Parties
in writing upon incurring or otherwise obtaining a Commercial Tort Claim after the date hereof and, upon request of any Secured
Party, promptly amend Schedule 1 to this Agreement to describe such after-acquired Commercial Tort Claim in a manner
that reasonably identifies such Commercial Tort Claim, and hereby authorizes the filing of additional financing statements or amendments
to existing financing statements describing such Commercial Tort Claims, and agrees to do such other acts or things deemed necessary
or desirable by any Secured Party to give Secured Parties a first priority, perfected security interest in any such Commercial
Tort Claim.

 

    	12

    	 

    

  

(f)             Government
Contracts. If any Account or Chattel Paper arises out of a contract or contracts with the United States of America or any department,
agency, or instrumentality thereof, Grantors shall promptly (and in any event within 2 Business Days of the creation thereof) notify
Secured Parties thereof in writing and execute any instruments or take any steps reasonably required by any Secured Party in order
that all moneys due or to become due under such contract or contracts shall be assigned to Secured Parties, and shall provide written
notice thereof and take all other appropriate actions under the Assignment of Claims Act or other applicable law to provide each
Secured Party a first-priority perfected security interest in such contract.

 

(g)            Intellectual
Property.

 

(i)       Upon
request of any Secured Party, in order to facilitate filings with the United States Patent and Trademark Office and the United
States Copyright Office or any other applicable Governmental Authority, each Grantor shall execute and deliver to Secured Parties
one or more Copyright Security Agreements, Trademark Security Agreements, or Patent Security Agreements to further evidence Secured
Parties’ respective Liens on such Grantor’s Copyrights, Trademarks or Patents.

 

(ii)      Each
Grantor shall have the duty (A) to promptly sue for infringement, misappropriation, or dilution with respect to its material rights
in Intellectual Property and to recover any and all damages for such infringement, misappropriation, or dilution, (B) to prosecute
diligently any material trademark application or service mark application that is part of the Trademarks pending as of the date
hereof or hereafter until the termination of this Agreement, (C) to prosecute diligently any material patent application that is
part of the Patents pending as of the date hereof or hereafter until the termination of this Agreement, and (D) to take all reasonable
and necessary action to preserve and maintain all of each Grantor’s material Trademarks, Patents, Copyrights, Intellectual
Property Licenses, and its rights therein, including the filing of applications for renewal, affidavits of use, affidavits of noncontestability
and opposition and interference and cancellation proceedings. Each Grantor shall promptly file an application with the United States
Copyright Office for any Copyright that has not been registered with the United States Copyright Office. Each Grantor shall promptly
file an application with the United States Patent and Trademark Office for any material Patent or Trademark that has not been registered
with the United States Patent and Trademark Office. Any expenses incurred in connection with the foregoing shall be borne by Grantors.
Each Grantor further agrees not to abandon any material Trademark, Patent, Copyright, or Intellectual Property License.

 

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

 

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(h)             Investment
Related Property.

 

(i)         If
any Grantor shall receive or become entitled to receive any Pledged Interests after the date hereof, it shall promptly (and in
any event within 2 Business Days of receipt thereof) identify such Pledged Interests in a written notice to Secured Parties;

 

(ii)        All
sums of money and property paid or distributed in respect of the Investment Related Property pledged hereunder which are received
by any Grantor shall be held by the Grantors in trust for the benefit of Secured Parties segregated from such Grantor’s other
property, and such Grantor shall deliver it forthwith to the Secured Parties in the exact form received;

 

(iii)       Each
Grantor shall promptly deliver to Secured Parties a copy of each notice or other communication received by it in respect of any
Pledged Interests;

 

(iv)      No
Grantor shall make or consent to any material amendment or other modification or waiver with respect to any Pledged Interests,
Pledged Operating Agreement, or Pledged Partnership Agreement, or enter into any agreement or permit to exist any restriction with
respect to any Pledged Interests;

 

(v)       Each
Grantor agrees that it will cooperate with Secured Parties in obtaining all necessary approvals and making all necessary filings
under federal, state, local, or foreign law in connection with the Security Interests on the Investment Related Property pledged
hereunder or any sale or transfer thereof; and

 

(vi)      As
to all limited liability company or partnership interests issued under any Pledged Operating Agreement or Pledged Partnership Agreement,
each Grantor hereby represents, warrants and covenants that the Pledged Interests issued pursuant to such agreement (A) are not
and shall not be dealt in or traded on securities exchanges or in securities markets, (B) do not and will not constitute investment
company securities, and (C) are not and will not be held by such Grantor in a securities account. In addition, none of the
Pledged Operating Agreements, the Pledged Partnership Agreements, or any other agreements governing any of the Pledged Interests
issued under any Pledged Operating Agreement or Pledged Partnership Agreement, provide or shall provide that such Pledged Interests
are securities governed by Article 8 of the Uniform Commercial Code as in effect in any relevant jurisdiction.

 

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(i)              Transfers
and Other Liens. Grantors shall not (i) sell, lease, license, assign (by operation of law or otherwise), transfer or otherwise
dispose of, or grant any option with respect to, any of the Collateral, except as expressly permitted by this Agreement and the
other Transaction Documents, or (ii) create or permit to exist any Lien upon or with respect to any of the Collateral of any of
Grantors, except for Permitted Liens. The inclusion of Proceeds in the Collateral shall not be deemed to constitute consent by
any Secured Party to any sale or other disposition of any of the Collateral except as expressly permitted in this Agreement or
the other Transaction Documents. Notwithstanding anything contained in this Agreement to the contrary, Permitted Liens shall not
be permitted with respect to any Pledged Interests.

 

(j)              Preservation
of Existence.  Each Grantor shall maintain and preserve its existence, rights and privileges, and become or remain
duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which
the transaction of its business makes such qualification necessary.

 

(k)              Maintenance
of Properties. Each Grantor shall maintain and preserve all of its properties which are necessary or useful in the proper
conduct of its business in good working order and condition, ordinary wear and tear excepted, and comply at all times with the
provisions of all leases to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture
thereof or thereunder.

 

(l)              Maintenance
of Insurance. Each Grantor shall maintain insurance with responsible and reputable insurance companies or associations
(including, without limitation, comprehensive general liability, property, hazard, rent and business interruption insurance) with
respect to all of its assets and properties (including, without limitation, all real properties leased or owned by it and any and
all Inventory and Equipment) and business, in such amounts and covering such risks as is required by any governmental authority
having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in
similar businesses similarly situated, in each case, acceptable to the Secured Parties.

 

(m)             Additional
Grantors. Each Grantor shall cause each Subsidiary of such Grantor to immediately become a party hereto (an “Additional
Grantor”), by executing and delivering an Additional Grantor Joinder in substantially the form of Annex A attached
hereto (the “Additional Grantor Joinder”) and comply with the provisions hereof applicable to the Grantors.
Concurrent therewith, the Additional Grantor 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 Grantor 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 Agent may reasonably request. Upon delivery of the Additional Grantor Joinder to the Secured Parties, the Additional Grantor
shall be and become a party to this Agreement with the same rights and obligations as the Grantors, 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 Grantor Joinder, and all references
herein to the “Grantors” shall be deemed to include each Additional Grantor

 

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(n)             Other
Actions as to Any and All Collateral. Each Grantor shall promptly (and in any event within 5 Business Days of acquiring or
obtaining such Collateral) notify Secured Parties in writing upon (i) acquiring or otherwise obtaining any Collateral after the
date hereof consisting of Trademarks, Patents, registered Copyrights, Intellectual Property Licenses, Investment Related Property,
Chattel Paper (electronic, tangible or otherwise), documents (as defined in Article 9 of the Code), promissory notes (as defined
in the Code), or instruments (as defined in the Code) or (ii) any amount payable under or in connection with any of the Collateral
being or becoming evidenced after the date hereof by any Chattel Paper, documents, promissory notes, or instruments and, in each
such case upon the request of any Secured Party, promptly execute such other documents, or if applicable, deliver such Chattel
Paper, other documents or certificates evidencing any Investment Related Property and do such other acts or things deemed necessary
or desirable by any Secured Party to protect Secured Parties’ respective Security Interests therein.

 

7.           Relation to
Other Transaction Documents. The provisions of this Agreement shall be read and construed with the Transaction Documents referred
to below in the manner so indicated.

 

(a)             Securities
Purchase Agreement and Notes. In the event of any conflict between any provision in this Agreement and any provision in the
Securities Purchase Agreement or Notes, such provision of the Securities Purchase Agreement or Notes shall control, except to the
extent the applicable provision in this Agreement is more restrictive with respect to the rights of Grantors or imposes more burdensome
or additional obligations on Grantors, in which event the applicable provision in this Agreement shall control.

 

(b)             Patent,
Trademark, Copyright Security Agreements. The provisions of the Copyright Security Agreements, Trademark Security Agreements,
and Patent Security Agreements are supplemental to the provisions of this Agreement, and nothing contained in the Copyright Security
Agreements, Trademark Security Agreements or the Patent Security Agreements shall limit any of the rights or remedies of any Secured
Party hereunder.

 

(c)              UK
Security Agreement. The provisions of the UK Security Agreement are supplemental to the provisions of this Agreement, and nothing
contained in the UK Security Agreement shall limit any of the rights or remedies of any Secured Party hereunder.

 

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8.          Further Assurances.

 

(a)             Each
Grantor agrees that from time to time, at its own expense, such Grantor will promptly execute and deliver all further instruments
and documents, and take all further action, that may be necessary or that any Secured Party may reasonably request, in order to
perfect and protect the Security Interests granted or purported to be granted hereby or to enable any Secured Party to exercise
and enforce its rights and remedies hereunder with respect to any of the Collateral.

 

(b)             Each
Grantor authorizes the filing by any Secured Party of financing or continuation statements, or amendments thereto, and such Grantor
will execute and deliver to such Secured Party such other instruments or notices, as may be necessary or as such Secured Party
may reasonably request, in order to perfect and preserve the Security Interests granted or purported to be granted hereby.

 

(c)             Each
Grantor authorizes any Secured Party at any time and from time to time to file, transmit, or communicate, as applicable, financing
statements and amendments (i) describing the Collateral as “all personal property of debtor” or “all assets of
debtor” or words of similar effect, (ii) describing the Collateral as being of equal or lesser scope or with greater detail,
or (iii) that contain any information required by part 5 of Article 9 of the Code for the sufficiency or filing office acceptance.
Each Grantor also hereby ratifies any and all financing statements or amendments previously filed by any Secured Party in any jurisdiction.

 

(d)             Each
Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect
to any financing statement filed in connection with this Agreement without the prior written consent of each Secured Party affected
thereby, subject to such Grantor’s rights under Section 9-509(d)(2) of the Code.

 

(e)             Each
Grantor shall permit each Secured Party or its employees, accountants, attorneys or agents, to examine and inspect any Collateral
or any other property of such Grantor at any time during ordinary business hours.

 

9.         Secured Parties’
Right to Perform Contracts, Exercise Rights, etc. Upon the occurrence and during the continuance of an Event of Default, any
Secured Party (a) may proceed to perform any and all of the obligations of any Grantor contained in any contract, lease, or other
agreement and exercise any and all rights of any Grantor therein contained as fully as such Grantor itself could, (b) shall have
the right to use any Grantor’s rights under Intellectual Property Licenses in connection with the enforcement of the Secured
Party’s rights hereunder, including the right to prepare for sale and sell any and all Inventory and Equipment now or hereafter
owned by any Grantor and now or hereafter covered by such licenses, and (c) shall have the right to request that any Stock that
is pledged hereunder be registered in the name of such Secured Party or any of its nominees.

 

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10.        Secured Parties
Appointed Attorney-in-Fact. Until the discharge of all Secured Obligations hereunder, each Grantor, hereby irrevocably appoints
each Secured Party as the attorney-in-fact of such Grantor with full authority in the place and stead of such Grantor and in the
name of such Grantor, the Secured Party or otherwise, at such time as an Event of Default has occurred and is continuing, to take
any action and to execute any instrument which such Secured Party may reasonably deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

 

(a)             to ask,
demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under
or in connection with any Collateral of such Grantor or New Subsidiary;

 

(b)            to receive
and open all mail addressed to such Grantor or New Subsidiary and to notify postal authorities to change the address for the delivery
of mail to such Grantor or New Subsidiary to that of such Secured Party;

 

(c)            to receive,
indorse, and collect any drafts or other instruments, documents, Negotiable Collateral or Chattel Paper;

 

(d)            to file
any claims or take any action or institute any proceedings which such Secured Party may deem necessary or desirable for the collection
of any of the Collateral of such Grantor or New Subsidiary or otherwise to enforce the rights of any Secured Party with respect
to any of the Collateral;

 

(e)             to repair,
alter, or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any Person obligated to such Grantor
or New Subsidiary in respect of any Account of such Grantor or New Subsidiary;

 

(f)             to use
any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, customer lists, advertising matter
or other industrial or intellectual property rights, in advertising for sale and selling Inventory and other Collateral and to
collect any amounts due under Accounts, contracts or Negotiable Collateral of such Grantor or New Subsidiary; and

 

(g)            such
Secured Party shall have the right, but shall not be obligated, to bring suit in its own name to enforce the Trademarks, Patents,
Copyrights and Intellectual Property Licenses and, if such Secured Party shall commence any such suit, the appropriate Grantor
or New Subsidiary shall, at the request of such Secured Party, do any and all lawful acts and execute any and all proper documents
reasonably required by such Secured Party in aid of such enforcement.

 

To the extent permitted
by law, each Grantor hereby ratifies, for itself and each of its New Subsidiaries, all that such attorney-in-fact shall lawfully
do or cause to be done by virtue hereof. Such power-of-attorney granted pursuant to this Section 10 is coupled with an interest
and shall be irrevocable until this Agreement is terminated.

 

11.       Secured Parties
May Perform. If any Grantor fails to perform any agreement contained herein, any Secured Party may itself perform, or cause
performance of, such agreement, and the reasonable expenses of such Secured Party incurred in connection therewith shall be payable,
jointly and severally, by Grantors.

 

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12.       Secured Parties’
Duties; Bailee for Perfection. The powers conferred on Secured Parties hereunder are solely to protect the Secured Parties’
respective interests in the Collateral and shall not impose any duty upon any Secured Party in favor of any Grantor or any other
Secured Party to exercise any such powers. Except for the safe custody of any Collateral in its actual possession and the accounting
for moneys actually received by it hereunder, no Secured Party shall have any duty to any Grantor or any other Secured Party as
to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining
to any Collateral. A Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral
in its actual possession if such Collateral is accorded treatment substantially equal to that which such Secured Party accords
its own property. Each Secured Party agrees that, with respect to any Collateral at any time or times in its possession and in
which any other Secured Party has a Lien, the Secured Party in possession of any such Collateral shall be the bailee of each other
Secured Party solely for purposes of perfecting (to the extent not otherwise perfected) each other Secured Party’s Lien in
such Collateral, provided that no Secured Party shall be obligated to obtain or retain possession of any such Collateral. Without
limiting the generality of the foregoing, Secured Parties and Grantors hereby agree that any Secured Party that is in possession
of any Collateral at such time as the Secured Obligations owing to such Secured Party have been paid in full may re-deliver such
Collateral to the applicable Grantor or, if requested by any Secured Party prior to such re-delivery, may deliver such Collateral
(unless otherwise restricted by applicable law or court order and subject in all events to the receipt of an indemnification of
all liabilities arising from such delivery) to the requesting Secured Party, without recourse to or representation or warranty
by the Secured Party in such possession.

 

13.        Collection
of Accounts, General Intangibles and Negotiable Collateral. At any time upon the occurrence and during the continuation of
an Event of Default, any Secured Party may (a) notify Account Debtors of any Grantor that the Accounts, General Intangibles, Chattel
Paper or Negotiable Collateral have been assigned to such Secured Party or that such Secured Party has a security interest therein,
and (b) collect the Accounts, General Intangibles and Negotiable Collateral directly, and any collection costs and expenses shall
constitute part of the Secured Obligations.

 

14.       Disposition
of Pledged Interests by Secured Party. None of the Pledged Interests existing as of the date of this Agreement are, and none
of the Pledged Interests hereafter acquired on the date of acquisition thereof will be, registered or qualified under the various
federal, state or other securities laws of the United States or any other jurisdiction, and disposition thereof after an Event
of Default may be restricted to one or more private (instead of public) sales in view of the lack of such registration. Each Grantor
understands that in connection with such disposition, any Secured Party may approach only a restricted number of potential purchasers
and further understands that a sale under such circumstances may yield a lower price for the Pledged Interests than if the Pledged
Interests were registered and qualified pursuant to federal, state and other securities laws and sold on the open market. Each
Grantor, therefore, agrees that: (a) if a Secured Party shall, pursuant to the terms of this Agreement, sell or cause the Pledged
Interests or any portion thereof to be sold at a private sale, such Secured Party shall have the right to rely upon the advice
and opinion of any nationally recognized brokerage or investment firm (but shall not be obligated to seek such advice and the failure
to do so shall not be considered in determining the commercial reasonableness of such action) as to the best manner in which to
offer the Pledged Interest or any portion thereof for sale and as to the best price reasonably obtainable at the private sale thereof;
and (b) such reliance shall be conclusive evidence that such Secured Party has handled the disposition in a commercially reasonable
manner.

 

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15.        Voting Rights.

 

(a)             Upon
the occurrence and during the continuation of an Event of Default, (i) any Secured Party may, at its option, and with 2 Business
Days prior notice to any Grantor, and in addition to all rights and remedies available to Secured Parties under any other agreement,
at law, in equity, or otherwise, exercise all voting rights, and all other ownership or consensual rights in respect of the Pledged
Interests owned by such Grantor, but under no circumstances is any Secured Party obligated by the terms of this Agreement to exercise
such rights, and (ii) if such Secured Party duly exercises its right to vote any of such Pledged Interests, each Grantor hereby
appoints such Secured Party as such Grantor’s true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote such Pledged
Interests in any manner that such Secured Party deems advisable for or against all matters submitted or which may be submitted
to a vote of shareholders, partners or members, as the case may be. Such power-of-attorney granted pursuant to this Section 15
is coupled with an interest and shall be irrevocable until this Agreement is terminated.

 

(b)            For
so long as any Grantor shall have the right to vote the Pledged Interests owned by it, such Grantor covenants and agrees that it
will not, without the prior written consent of Secured Parties, vote or take any consensual action with respect to such Pledged
Interests which would materially or adversely affect the rights of Secured Parties exercising the voting rights owned by such Grantor
or the value of the Pledged Interests.

 

16.         Remedies.
     Upon the occurrence and during the continuance of an Event of Default:

 

(a)             Any
Secured Party may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein, in the other
Transaction Documents, or otherwise available to it, all the rights and remedies of a secured party on default under the Code or
any other applicable law. Without limiting the generality of the foregoing, each Grantor expressly agrees that, in any such event,
any Secured Party without any demand, advertisement, or notice of any kind (except a notice specified below of time and place of
public or private sale) to or upon any Grantor or any other Person (all and each of which demands, advertisements and notices are
hereby expressly waived to the maximum extent permitted by the Code or by any other applicable law), may take immediate possession
of all or any portion of the Collateral and (i) require Grantors to, and each Grantor hereby agrees that it will at its own expense
and upon request of such Secured Party forthwith, assemble all or part of the Collateral as directed by such Secured Party and
make it available to such Secured Party at one or more locations where such Grantor regularly maintains Inventory, and (ii) without
notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at
any of such Secured Party’s offices or elsewhere, for cash, on credit, and upon such other terms as such Secured Party may
deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least 10 days
notice to any Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute
reasonable notification and specifically such notice shall constitute a reasonable “authenticated notification of disposition”
within the meaning of Section 9-611 of the Code. No Secured Party shall be obligated to make any sale of Collateral regardless
of notice of sale having been given. Any Secured Party may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned.

 

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(b)             Each
Secured Party is hereby granted a license or other right to use, without liability for royalties or any other charge, each Grantor’s
labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names, Trademarks, service marks and advertising matter,
URLs, domain names, industrial designs, other industrial or intellectual property or any property of a similar nature, whether
owned by any Grantor or with respect to which any Grantor has rights under license, sublicense, or other agreements (but only to
the extent (i) such license, sublicense or agreement does not prohibit such use by such Secured Party and (ii) such Grantor will
not be in default under such license, sublicense, or other agreement as a result of such use by such Secured Party), as it pertains
to the Collateral, in preparing for sale, advertising for sale and selling any Collateral, and each Grantor’s rights under
all licenses and all franchise agreements shall inure to the benefit of such Secured Party.

 

(c)             Any
cash held by any Secured Party as Collateral and all proceeds received by any Secured Party in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral shall be applied against the Secured Obligations in the order
set forth in Section 17 hereof. In the event the proceeds of Collateral are insufficient for the Satisfaction in Full of the Secured
Obligations (as defined below), each Grantor shall remain jointly and severally liable for any such deficiency.

 

(d)             Each
Grantor hereby acknowledges that the Secured Obligations arose out of a commercial transaction, and agrees that if an Event of
Default shall occur and be continuing any Secured Party shall have the right to an immediate writ of possession without notice
of a hearing. Each Secured Party shall have the right to the appointment of a receiver for the properties and assets of each Grantor,
and each Grantor hereby consents to such rights and such appointment and hereby waives any objection such Grantor may have thereto
or the right to have a bond or other security posted by any Secured Party.

 

(e)             Notwithstanding
anything in this Agreement to the contrary, each Secured Party agrees that it will not exercise any remedy provided for under this
Agreement with respect to all or any portion of the Collateral unless such Secured Party is a Permitted Secured Party (provided
that the foregoing shall not prevent any Secured Party from commencing or participating in any Insolvency Proceeding or taking
any action (other than with respect to the Collateral) to enforce the payment or performance of any Grantors’ obligations
under any of the Notes, Guaranties or other Transaction Documents). This Section 16(e) is not intended to confer any rights or
benefits upon Grantors, or any of them, or any other Person except Secured Parties, and no Person (including any or all Grantors)
other than Secured Parties shall have any right to enforce any of the provisions of this Section 16(e). As between Grantors,
or any of them, and any Secured Party, any action that such Secured Party may take under this Agreement shall be conclusively presumed
to have been authorized and approved by the other Secured Parties.

 

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(f)              Each
Secured Party may, in addition to other rights and remedies provided for herein, in the other Transaction Documents, or otherwise
available to it under applicable law and without the requirement of notice to or upon any Grantor or any other Person (which notice
is hereby expressly waived to the maximum extent permitted by the Code or any other applicable law), (i) with respect to any Grantor’s
Deposit Accounts in which any such Secured Party’s Liens are perfected by control under Section 9-104 of the Code, instruct
the bank maintaining such Deposit Account for the applicable Grantor to pay the balance of such Deposit Account to or for the benefit
of such Secured Party, and (ii) with respect to any Grantor’s Securities Accounts in which such Secured Party’s
Liens are perfected by control under Section 9-106 of the Code, instruct the securities intermediary maintaining such Securities
Account for the applicable Grantor to (A) transfer any cash in such Securities Account to or for the benefit of such Secured Party,
or (B) liquidate any financial assets in such Securities Account that are customarily sold on a recognized market and transfer
the cash proceeds thereof to or for the benefit of such Secured Party.

 

17.        Priority
of Liens; Application of Proceeds of Collateral. Each Secured Party hereby acknowledges and agrees that, notwithstanding the
time or order of the filing of any financing statement or other registration or document with respect to the Collateral and the
Security Interests, or any provision of this Agreement, any other Security Document, the Code or other applicable law, solely as
amongst the Secured Parties, the separate Security Interests of the Secured Parties shall have the same rank and priority; provided,
that, the foregoing shall not apply to any Security Interest of a Secured Party that is void or voidable as a matter of law. In
furtherance thereof, all proceeds of Collateral received by any Secured Party shall be applied as follows:

 

(a)             first,
ratably to pay any expenses due to any of the Secured Parties (including, without limitation, the reasonable costs and expenses
paid or incurred by any Secured Party to correct any default under or enforce any provision of the Transaction Documents, or after
the occurrence of any Event of Default in gaining possession of, maintaining, handling, preserving, storing, shipping, selling,
preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated)
or indemnities then due to any of the Secured Parties under the Transaction Documents, until paid in full;

 

(b)             second,
ratably to pay any fees or premiums then due to any of the Secured Parties under the Transaction Documents, until paid in full;

 

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(c)             third,
ratably to pay interest due in respect of the Secured Obligations then due to any of the Secured Parties, until paid in full;

 

(d)             fourth,
ratably to pay the principal amount of all Secured Obligations then due to any of the Secured Parties, until paid in full;

 

(e)             fifth,
ratably to pay any other Secured Obligations then due to any of the Secured Parties; and

 

(f)             sixth,
to Grantors or such other Person entitled thereto under applicable law.

 

18.        Remedies
Cumulative. Each right, power, and remedy of any Secured Party as provided for in this Agreement or in any other Transaction
Document or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall
be in addition to every other right, power, or remedy provided for in this Agreement or in the other Transaction Documents or now
or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by any Secured
Party, of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise by such Secured
Party of any or all such other rights, powers, or remedies. Each Grantor acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to each Secured Party and that the remedy at law for any such breach may be inadequate. Each Grantor
therefore agrees that, in the event of any breach or any threatened breach, each Secured Party shall be entitled, in addition to
all other available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity
of showing economic loss and without any bond or other security being required.

 

19.        Marshaling.
No Secured Party shall be required to marshal any present or future collateral security (including but not limited to the Collateral)
for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such collateral security or other
assurances of payment in any particular order, and all of its rights and remedies hereunder and in respect of such collateral security
and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising.
To the extent that it lawfully may, each Grantor hereby agrees that it will not invoke any law relating to the marshaling of collateral
which might cause delay in or impede the enforcement of any Secured Party’s rights and remedies under this Agreement or under
any other instrument creating or evidencing any of the Secured Obligations or under which any of the Secured Obligations is outstanding
or by which any of the Secured Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully
may, each Grantor hereby irrevocably waives the benefits of all such laws.

 

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20.        Acknowledgment.

 

(a)             Each
Secured Party hereby agrees and acknowledges that no other Secured Party has agreed to act for it as an administrative or collateral
agent, and each Secured Party is and shall remain solely responsible for the attachment, perfection and priority of all Liens created
by this Agreement or any other Security Document in favor of such Secured Party. No Secured Party shall have by reason of this Agreement
or any other Transaction Document an agency or fiduciary relationship with any other Secured Party. No Secured Party (which term,
as used in this sentence, shall include reference to each Secured Party’s officers, directors, employees, attorneys, agents
and affiliates and to the officers, directors, employees, attorneys and agents of such Secured Party’s affiliates) shall:
(i) have any duties or responsibilities except those expressly set forth in this Agreement and the other Security Documents
or (ii) be required to take, initiate or conduct any enforcement action (including any litigation, foreclosure or collection
proceedings hereunder or under any of the other Security Documents). Without limiting the foregoing, no Secured Party shall have
any right of action whatsoever against any other Secured Party as a result of such Secured Party acting or refraining from acting
hereunder or under any of the Security Documents except as a result and to the extent of losses caused by such Secured Party’s
actual gross negligence or willful misconduct (it being understood and agreed by each Secured Party that the delivery by any
Significant Secured Party of one or more Veto Notices shall not be deemed to be or construed as gross negligence or willful misconduct
on the part of the Secured Party delivering any such Veto Notice). No Secured Party assumes any responsibility for any failure
or delay in performance or breach by any Grantor or any Secured Party of its obligations under this Agreement or any other
Transaction Document. No Secured Party makes to any other Secured Party any express or implied warranty, representation or
guarantee with respect to any Secured Obligations, Collateral, Transaction Document or Grantor. No Secured Party nor any of its
officers, directors, employees, attorneys or agents shall be responsible to any other Secured Party or any of its officers, directors,
employees, attorneys or agents for: (i) any recitals, statements, information, representations or warranties contained in
any of the Transaction Documents or in any certificate or other document furnished pursuant to the terms hereof; (ii) the
execution, validity, genuineness, effectiveness or enforceability of any of the Transaction Documents; (iii) the validity,
genuineness, enforceability, collectability, value, sufficiency or existence of any Collateral, or the attachment, perfection or
priority of any Lien therein; or (iv) the assets, liabilities, financial condition, results of operations, business, creditworthiness
or legal status of any Grantor or any Account Debtor. No Secured Party nor any of its officers, directors, employees, attorneys
or agents shall have any obligation to any other Secured Party to ascertain or inquire into the existence of any default or Event
of Default, the observance or performance by any Grantor of any of the duties or agreements of such Grantor under any of the
Transaction Documents or the satisfaction of any conditions precedent contained in any of the Transaction Documents.

 

    	24

    	 

    

 

(b)             Each
Secured Party hereby acknowledges and represents that it has, independently and without reliance upon any other Secured Party,
and based upon such documents, information and analyses as it has deemed appropriate, made its own credit analysis of each Grantor
and its own decision to enter into the Transaction Documents and to purchase the Securities, and each Secured Party has made
such inquiries concerning the Transaction Documents, the Collateral and each Grantor as such Secured Party feels necessary and
appropriate, and has taken such care on its own behalf as would have been the case had it entered into the Transaction Documents
without any other Secured Party. Each Secured Party hereby further acknowledges and represents that the other Secured Parties have
not made any representations or warranties to it concerning any Grantor, any of the Collateral or the legality, validity, sufficiency
or enforceability of any of the Transaction Documents. Each Secured Party also hereby acknowledges that it will, independently
and without reliance upon the other Secured Parties, and based upon such financial statements, documents and information as it
deems appropriate at the time, continue to make and rely upon its own credit decisions in taking or refraining to take any
other action under this Agreement or the Transaction Documents. No Secured Party shall have any duty or responsibility to provide
any other Secured Party with any notices, reports or certificates furnished to such Secured Party by any Grantor or any credit
or other information concerning the affairs, financial condition, business or assets of any Grantor (or any of its affiliates)
which may come into possession of such Secured Party.

 

21.        Indemnity
and Expenses.

 

(a)             Without
limiting any obligations of Parent under the Securities Purchase Agreement, each Grantor agrees to indemnify all Secured Parties
from and against all claims, lawsuits and liabilities (including reasonable attorneys’ fees) arising out of or resulting
from this Agreement (including enforcement of this Agreement) or any other Transaction Document, except claims, losses or liabilities
resulting from the gross negligence or willful misconduct of the party seeking indemnification as determined by a final non-appealable
order of a court of competent jurisdiction. This provision shall survive the termination of this Agreement and the Transaction
Documents and the Satisfaction in Full of the Secured Obligations.

 

(b)             Grantors,
jointly and severally, shall, upon demand, pay to each Secured Party all of the costs and expenses which such Secured Party may
incur in connection with (i) the administration of this Agreement, (ii) the custody, preservation, use or operation of, or, upon
an Event of Default, the sale of, collection from, or other realization upon, any of the Collateral in accordance with this Agreement
and the other Transaction Documents, (iii) the exercise or enforcement of any of the rights of such Secured Party hereunder or
(iv) the failure by any Grantor to perform or observe any of the provisions hereof.

 

22.       Merger, Amendments;
Etc. THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES SOLELY
WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES. No provision of this Agreement may be amended
other than by an instrument in writing signed by each Grantor and each Significant Secured Party, and any amendment to any provision
of this Agreement made in conformity with the provisions of this Section 22 shall be binding on all Secured Parties, provided that
no such amendment shall be effective to the extent that it (1) applies to less than all of the Secured Parties or (2) imposes any
obligation or liability on any Secured Party without such Secured Party’s prior written consent (which may be granted or
withheld in such Secured Party’s sole discretion). No waiver shall be effective unless it is in writing and signed by an
authorized representative of the waiving party, provided that all of the Significant Secured Parties (in a writing signed by all
of the Significant Secured Parties) may waive any provision of this Agreement, and any waiver of any provision of this Agreement
made in conformity with the provisions of this Section 22 shall be binding on all Secured Parties, provided that no such waiver
shall be effective to the extent that it (1) applies to less than all the Secured Parties (unless a party gives a waiver as to
itself only) or (2) imposes any obligation or liability on any Secured Party without such Secured Party’s prior written consent
(which may be granted or withheld in such Secured Party’s sole discretion).

 

    	25

    	 

    

  

23.         Addresses
for Notices. All notices and other communications provided for hereunder (a) shall be given in the form and manner set forth
in the Securities Purchase Agreement and (b) shall be delivered, (i) in the case of notice to any Grantor, by delivery of such
notice to Parent at Parent’s address specified in the Securities Purchase Agreement or at such other address as shall be
designated by Parent in a written notice to each of the Secured Parties in accordance with the provisions thereof, and (ii) in
the case of notice to any Secured Party, by delivery of such notice to such Secured Party at its address specified in the Securities
Purchase Agreement or at such other address as shall be designated by such Secured Party in a written notice to Parent and each
other Secured Party in accordance with the provisions thereof.

 

24.         Separate,
Continuing Security Interests; Assignments under Transaction Documents. This Agreement shall create a separate, continuing
security interest in the Collateral in favor of each Secured Party and shall (a) remain in full force and effect until Satisfaction
in Full of the Secured Obligations, (b) be binding upon each of Grantors, and their respective permitted successors and permitted
assigns, and (c) inure to the benefit of, and be enforceable by, the Secured Parties and their respective successors, transferees
and assigns. Without limiting the generality of the foregoing clause (c), any Secured Party may, in accordance with the provisions
of the Transaction Documents, assign or otherwise transfer all or any portion of its rights and obligations under the Transaction
Documents to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted
to such Secured Party herein or otherwise. Upon Satisfaction in Full of the Secured Obligations, the Security Interests granted
hereby shall terminate and all rights to the Collateral shall revert to Grantors or any other Person entitled thereto. At such
time, each Secured Party will authorize the filing of appropriate termination statements to terminate such Security Interests.
No transfer or renewal, extension, assignment, or termination of this Agreement or any other Transaction Document, or any other
instrument or document executed and delivered by any Grantor to any Secured Party nor any additional loans made by any Secured
Party to any Grantor, nor the taking of further security, nor the retaking or re-delivery of the Collateral to Grantors, or any
of them, by any Secured Party, nor any other act of Secured Parties, or any of them, shall release any of Grantors from any obligation,
except a release or discharge executed in writing by all Secured Parties; provided, however, that no release or discharge in writing
shall be required in respect of the release of the Security Interests granted by this Agreement upon the Satisfaction in Full of
the Secured Obligations. No Secured Party shall by any act, delay, omission or otherwise, be deemed to have waived any of its rights
or remedies hereunder, unless such waiver is in writing and signed by such Secured Party and then only to the extent therein set
forth. A waiver by any Secured Party of any right or remedy on any occasion shall not be construed as a bar to the exercise of
any such right or remedy which such Secured Party would otherwise have had on any other occasion.

 

    	26

    	 

    

  

25.         Governing
Law; Jurisdiction; Service of Process; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New York. Each party 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 suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper; provided, however, any suit seeking enforcement against any Collateral or other property may be brought, at any Secured
Party’s option, in the courts of any jurisdiction where such Secured Party elects to bring such action or where such Collateral
or other property may be found. Each party hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Without
limitation of the foregoing, each Grantor other than Parent hereby irrevocably appoints Parent as such Grantor’s agent for
purposes of receiving and accepting any service of process hereunder or under any of the other Security Documents. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

 

26.         Miscellaneous.

 

(a)             This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any
signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed
signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such signature page were an original thereof. Any party delivering
an executed counterpart of this Agreement by facsimile or other electronic method of transmission also shall deliver an original
executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity,
enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Security Document mutatis mutandis.

 

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

 

(c)              Headings
used in this Agreement are for convenience only and shall not be used in connection with the interpretation of any provision hereof.

 

    	27

    	 

    

  

(d)             The
pronouns used herein shall include, when appropriate, either gender and both singular and plural, and the grammatical construction
of sentences shall conform thereto.

 

(e)             The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party. For clarification purposes, the Recitals are part of this Agreement.

 

(f)             Unless
the context of this Agreement or any other Transaction Document clearly requires otherwise, references to the plural include the
singular, references to the singular include the plural, the terms “includes” and “including” are not limiting,
and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.”
The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this
Agreement or any other Transaction Document refer to this Agreement or such other Transaction Document, as the case may be, as
a whole and not to any particular provision of this Agreement or such other Transaction Document, as the case may be. Section,
subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in
this Agreement or in any other Transaction Document to any agreement, instrument, or document shall include all alterations, amendments,
changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable
(subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions,
joinders, and supplements set forth herein). “Satisfaction in Full of the Secured Obligations” shall mean the
indefeasible payment in full in cash and discharge, or other satisfaction in accordance with the terms of the Transaction Documents
and discharge, of all Secured Obligations in full. For the avoidance of doubt, the “Satisfaction in Full of the Secured Obligations”
shall be deemed to have occurred upon the indefeasible payment in full and discharge, or other satisfaction, of (i) the Notes in
accordance with their terms and (ii) all other Secured Obligations as of such date. Any reference herein to any Person shall be
construed to include such Person’s permitted successors and permitted assigns. Any requirement of a writing contained herein
or in any other Transaction Document shall be satisfied by the transmission of a Record and any Record so transmitted shall constitute
a representation and warranty as to the accuracy and completeness of the information contained therein.

 

(g)             All
dollar amounts referred to in this Agreement and the other Transaction Documents are in United States Dollars (“U.S. Dollars”),
and all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated
in other currencies shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date
of calculation. “Exchange Rate” means, in relation to any amount of currency to be converted into U.S.
Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date
of calculation.

 

[signature pages
follow]

 

    	28

    	 

    

 

IN WITNESS WHEREOF,
the undersigned parties hereto have executed this Agreement by and through their duly authorized officers, as of the day and year
first above written. 

 

	GRANTORS:	MORRIA BIOPHARMACEUTICALS PLC
	 	 
	 	By:	/s/
    YUVAL COHEN
	 	Name: Yuval Cohen
	 	Title: President
	 	 
	 	MORRIA BIOPHARMACEUTICALS INC.
	 	 
	 	By:	/s/ YUVAL
    COHEN
	 	Name: Yuval Cohen
	 	Title: President

 

[SECURITY AGREEMENT]

 

    	 

    	 

    

 

	SECURED PARTIES:	IROQUOIS MASTER FUND LTD.
	 	 
	 	/s/
    JOSHUA SILVERMAN
	 	By: Joshua Silverman, Authorized Signatory
	 	 
	 	ALPHA CAPITAL ANSTALT
	 	 
	 	/s/ KONRAD
    ACKERMAN
	 	By: Konrad Ackerman, Director

 

[SECURITY AGREEMENT]

 

    	 

    	 

    

 

SCHEDULE 1

 

COMMERCIAL TORT CLAIMS

 

    	 

    	 

    

 

SCHEDULE 2

 

COPYRIGHTS

 

    	 

    	 

    

 

SCHEDULE 3

 

INTELLECTUAL PROPERTY
LICENSES 

 

    	 

    	 

    

 

SCHEDULE 4

 

PATENTS

 

    	 

    	 

    

 

SCHEDULE 5

 

PLEDGED COMPANIES

 

	Name of Pledgor	 	Name of Pledged Company	 	
        Percentage of Class

        Owned

	 	 	 	 	[100% of Common Stock]
	 	 	 	 	[100% of Common Stock]
	 	 	 	 	[100% of Common Stock]
	 	 	 	 	[100% of Common Stock]
	 	 	 	 	[100% of Common Stock]

 

*
 The security interest in the Pledged Interests listed on this Schedule 5 will be perfected on the Closing Date by the
delivery to Iroquois Master Fund Ltd. of all certificates representing the Pledged Interests of such Pledged Companies now owned
by such Grantor to the extent such Pledged Interests are represented by certificates, and undated powers endorsed in blank with
respect to such certificates. 

 

    	 

    	 

    

 

SCHEDULE 6

 

TRADEMARKS 

 

	Grantor	 	Description of Trademark	 	Registration Number	 	Issue Date	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

  

    	 

    	 

    

 

SCHEDULE 7

 

REAL PROPERTY

 

Owned Real Property:

 

Leased Real Property:

 

Other Collateral Location:

 

Chief Executive Office
of Each Grantor: 

 

    	 

    	 

    

 

SCHEDULE 8

 

LIST OF UNIFORM COMMERCIAL
CODE FILING JURISDICTIONS 

 

	Grantor	 	Jurisdictions
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

    	 

    	 

    

 

SCHEDULE 9

 

DEPOSIT ACCOUNTS AND SECURITIES
ACCOUNTS

Deposit Accounts

 

	Grantor	 	Name of Depositary Bank	 	Account Number	 	Account Name	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

 

Securities Accounts

  

	Grantor	 	Share of Securities Intermediary	 	Account Number	 	Account Name	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

  

    	 

    	 

    

 

EXHIBIT A

 

COPYRIGHT SECURITY
AGREEMENT

 

This COPYRIGHT SECURITY
AGREEMENT (this “Copyright Security Agreement”) is made this __ day of April 2012, by the Grantors listed on
the signature pages hereof (collectively, jointly and severally, “Grantors” and each individually “Grantor”),
in favor of the Secured Parties under and as defined in the below-described Security Agreement.

 

RECITALS

 

WHEREAS, pursuant
to that certain Securities Purchase Agreement, dated as of April 3, 2012 (as may be amended, restated, supplemented, or
otherwise modified from time to time, including all schedules thereto, collectively, the “Securities Purchase
Agreement”), by and among Morria Biopharmaceuticals PLC, a public limited company formed under the laws of England
and Wales (“Parent”), and each of the Secured Parties, Parent has agreed to sell, and each of the Secured
Parties have each agreed to purchase, severally and not jointly, the Securities (as defined in the Securities Purchase
Agreement); and

 

WHEREAS, in order to
induce each of the Secured Parties to purchase, severally and not jointly, the Securities as provided for in the Securities Purchase
Agreement, Grantors have executed and delivered to each of the Secured Parties that certain Security Agreement of even date herewith
(including all annexes, exhibits or schedules thereto, as from time to time amended, restated, supplemented or otherwise modified,
the “Security Agreement”); and

 

WHEREAS, pursuant to
the Security Agreement, Grantors are required to execute and deliver to each of the Secured Parties this Copyright Security Agreement.

 

AGREEMENTS

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Grantors hereby agree as follows:

 

1.         DEFINED TERMS. All capitalized
terms used but not otherwise defined herein have the meanings given to them in the Security Agreement.

 

2.         GRANT OF SECURITY
INTEREST IN COPYRIGHT COLLATERAL. Each Grantor hereby grants to each Secured Party a continuing first priority security interest
in all of such Grantor’s right, title and interest in, to and under the following, whether presently existing or hereafter
created or acquired (collectively, the “Copyright Collateral”):

 

(a)           all of each Grantor’s
Copyrights and Copyright Intellectual Property Licenses to which it is a party including those referred to on Schedule I
hereto;

 

(b)           all reissues,
continuations or extensions of the foregoing; and

 

    	 

    	 

    

  

(c)           all products and
proceeds of the foregoing, including any claim by such Grantor against third parties for past, present or future infringement or
dilution of any Copyright or any Copyright licensed under any Intellectual Property License;

 

provided, however,
that for the avoidance of doubt (and notwithstanding anything to the contrary in the Security Documents), no Security Interest
shall be granted pursuant to the Security Documents in respect of any Copyrights or other Intellectual Property that are the subject
matter of any Intellectual Property Licenses pursuant to which the Grantor is a licensee, except to the extent that the Grantor
has rights to such Copyrights or other Intellectual Property without consideration to, and independent of, the rights provided
under the related Intellectual Property Licenses.

 

3.         SECURITY FOR
OBLIGATIONS. This Copyright Security Agreement and the Security Interests created hereby secures the payment and performance
of all the Secured Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this
Copyright Security Agreement secures the payment of all amounts which constitute part of the Secured Obligations and would be owed
by Grantors, or any of them, to Secured Parties, or any of them, whether or not they are unenforceable or not allowable due to
the existence of an Insolvency Proceeding involving any Grantor.

 

4.         SECURITY AGREEMENT.
The security interests granted pursuant to this Copyright Security Agreement are granted in conjunction with the security interests
granted to Secured Parties pursuant to the Security Agreement. Each Grantor hereby acknowledges and affirms that the rights and
remedies of Secured Parties with respect to their respective security interests in the Copyright Collateral made and granted hereby
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

 

5.         AUTHORIZATION
TO SUPPLEMENT. To the extent required under the Security Agreement, Grantors shall give Secured Parties prompt notice in writing
of any additional copyright registrations or applications therefor after the date hereof. Grantors hereby authorize Secured Parties
unilaterally to modify this Agreement by amending Schedule I to include any future registered copyrights or applications
therefor of Grantors. Notwithstanding the foregoing, no failure to so modify this Copyright Security Agreement or amend Schedule
I shall in any way affect, invalidate or detract from any Secured Party’s continuing security interest in all Collateral,
whether or not listed on Schedule I.

 

6.         COUNTERPARTS.
This Copyright Security Agreement may be executed in two or more identical counterparts, all of which shall be considered one and
the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.
In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format
(.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.
In proving this Copyright Security Agreement or any other Transaction Document in any judicial proceedings, it shall not be necessary
to produce or account for more than one such counterpart signed by the party against whom such enforcement is sought.

 

    	 

    	 

    

  

7.         CONSTRUCTION.
Unless the context of this Copyright Security Agreement or any other Transaction Document clearly requires otherwise, references
to the plural include the singular, references to the singular include the plural, the terms “includes” and “including”
are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the
phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,”
and similar terms in this Copyright Security Agreement or any other Transaction Document refer to this Copyright Security Agreement
or such other Transaction Document, as the case may be, as a whole and not to any particular provision of this Copyright Security
Agreement or such other Transaction Document, as the case may be. Section, subsection, clause, schedule, and exhibit references
herein are to this Copyright Security Agreement unless otherwise specified. Any reference in this Copyright Security Agreement
or in any other Transaction Document to any agreement, instrument, or document shall include all alterations, amendments, changes,
extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable
(subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions,
joinders, and supplements set forth herein). Any reference herein to any Person shall be construed to include such Person’s
permitted successors and permitted assigns. Any requirement of a writing contained herein or in any other Transaction Document
shall be satisfied by the transmission of a Record and any Record so transmitted shall constitute a representation and warranty
as to the accuracy and completeness of the information contained therein. The language used in this Copyright Security Agreement
will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will
be applied against any party. For clarification purposes, the Recitals are part of this Copyright Security Agreement.

 

8.         Governing
Law; Jurisdiction; Service of Process; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Copyright Security Agreement shall be governed by the internal laws of the State of New York, without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each party 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 suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper; provided, however, any suit seeking enforcement against any Copyright Collateral
or other property may be brought, at any Secured Party’s option, in the courts of any jurisdiction where such Secured Party
elects to bring such action or where such Copyright Collateral or other property may be found. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Copyright Security Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Without limitation of the foregoing, each Grantor other than
Parent hereby irrevocably appoints Parent as such Grantor’s agent for purposes of receiving and accepting any service of
process hereunder or under any of the other Security Documents. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

[signature pages follow]

 

    	 

    	 

    

  

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

 

	GRANTORS:	MORRIA BIOPHARMACEUTICALS PLC
	 	 
	 	By:	 
	 	Name: Yuval Cohen
	 	Title: President
	 	 
	 	MORRIA BIOPHARMACEUTICALS INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

COPYRIGHT SECURITY AGREEMENT 

 

    	 

    	 

    

  

SCHEDULE
I

to

COPYRIGHT SECURITY AGREEMENT

 

Copyright
Registrations 

 

	Grantor	 	Country	 	Copyright	 	Registration No.	 	
        Registration

Date

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	  
	 	 	 	 	 	 	 	 	 

  

Copyright Licenses

 

    	 

    	 

    

 

EXHIBIT B

 

PATENT SECURITY
AGREEMENT

 

This PATENT SECURITY
AGREEMENT (this “Patent Security Agreement”) is made this ___ day of April 2012, by the Grantors listed on the
signature pages hereof (collectively, jointly and severally, “Grantors” and each individually “Grantor”),
in favor of the Secured Parties under and as defined in the below-described Security Agreement.

 

RECITALS

 

WHEREAS, pursuant
to that certain Securities Purchase Agreement, dated as of April 3, 2012 (as may be amended, restated, supplemented, or
otherwise modified from time to time, including all schedules thereto, collectively, the “Securities Purchase
Agreement”), by and among Morria Biopharmaceuticals PLC, a public limited company formed under the laws of England
and Wales (“Parent”), and each of the Secured Parties, Parent has agreed to sell, and each of the Secured
Parties have each agreed to purchase, severally and not jointly, the Securities (as defined in the Securities Purchase
Agreement); and

 

WHEREAS, in order to
induce each of the Secured Parties to purchase, severally and not jointly, the Securities as provided for in the Securities Purchase
Agreement, Grantors have executed and delivered to each of the Secured Parties that certain Security Agreement of even date herewith
(including all annexes, exhibits or schedules thereto, as from time to time amended, restated, supplemented or otherwise modified,
the “Security Agreement”); and

 

WHEREAS, pursuant to
the Security Agreement, Grantors are required to execute and deliver to each of the Secured Parties this Patent Security Agreement.

 

AGREEMENTS

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Grantors hereby agree as follows:

 

1.         DEFINED TERMS.
All capitalized terms used but not otherwise defined herein have the meanings given to them in the Security Agreement.

 

2.         GRANT OF SECURITY
INTEREST IN PATENT COLLATERAL. Each Grantor hereby grants to each Secured Party a continuing first priority security interest
in all of such Grantor’s right, title and interest in, to and under the following, whether presently existing or hereafter
created or acquired (collectively, the “Patent Collateral”):

 

(a)         all
of its Patents and Patent Intellectual Property Licenses to which it is a party including those referred to on Schedule I
hereto;

 

(b)         all
reissues, continuations or extensions of the foregoing; and

 

    	 

    	 

    

 

(c)         all
products and proceeds of the foregoing, including any claim by such Grantor against third parties for past, present or future infringement
or dilution of any Patent or any Patent licensed under any Intellectual Property License;

 

provided, however, that
for the avoidance of doubt (and notwithstanding anything to the contrary in the Security Documents), no Security Interest shall
be granted pursuant to the Security Documents in respect of any Patents or other Intellectual Property that are the subject matter
of any Intellectual Property Licenses pursuant to which the Grantor is a licensee, except to the extent that the Grantor has rights
to such Patents or other Intellectual Property without consideration to, and independent of, the rights provided under the related
Intellectual Property Licenses.

 

3.        SECURITY FOR
OBLIGATIONS. This Patent Security Agreement and the Security Interests created hereby secures the payment and performance of
all the Secured Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this
Patent Security Agreement secures the payment of all amounts which constitute part of the Secured Obligations and would be owed
by Grantors, or any of them, to Secured Parties, or any of them, whether or not they are unenforceable or not allowable due to
the existence of an Insolvency Proceeding involving any Grantor.

 

4.        SECURITY AGREEMENT.
The security interests granted pursuant to this Patent Security Agreement are granted in conjunction with the security interests
granted to Secured Parties pursuant to the Security Agreement. Each Grantor hereby acknowledges and affirms that the rights and
remedies of Secured Parties with respect to their respective security interests in the Patent Collateral made and granted hereby
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

 

5.        AUTHORIZATION
TO SUPPLEMENT. If any Grantor shall obtain rights to any new patentable inventions or become entitled to the benefit of any
patent application or patent for any reissue, division, or continuation, of any patent, the provisions of this Patent Security
Agreement shall automatically apply thereto. To the extent required under the Security Agreement, Grantors shall give prompt notice
in writing to Secured Parties with respect to any such new patent rights. Without limiting each Grantor’s obligations under
this Section 5, Grantors hereby authorize Secured Parties unilaterally to modify this Agreement by amending Schedule I
to include any such new patent rights of Grantors. Notwithstanding the foregoing, no failure to so modify this Patent Security
Agreement or amend Schedule I shall in any way affect, invalidate or detract from any Secured Party’s continuing
security interest in all Collateral, whether or not listed on Schedule I.

 

6.        COUNTERPARTS.
This Patent Security Agreement may be executed in two or more identical counterparts, all of which shall be considered one and
the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.
In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format
(.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.
In proving this Patent Security Agreement or any other Transaction Document in any judicial proceedings, it shall not be necessary
to produce or account for more than one such counterpart signed by the party against whom such enforcement is sought.

 

    	 

    	 

    

  

7.         CONSTRUCTION.
Unless the context of this Patent Security Agreement or any other Transaction Document clearly requires otherwise, references to
the plural include the singular, references to the singular include the plural, the terms “includes” and “including”
are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the
phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,”
and similar terms in this Patent Security Agreement or any other Transaction Document refer to this Patent Security Agreement or
such other Transaction Document, as the case may be, as a whole and not to any particular provision of this Patent Security Agreement
or such other Transaction Document, as the case may be. Section, subsection, clause, schedule, and exhibit references herein are
to this Patent Security Agreement unless otherwise specified. Any reference in this Patent Security Agreement or in any other Transaction
Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions
on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements
set forth herein). Any reference herein to any Person shall be construed to include such Person’s permitted successors and
permitted assigns. Any requirement of a writing contained herein or in any other Transaction Document shall be satisfied by the
transmission of a Record and any Record so transmitted shall constitute a representation and warranty as to the accuracy and completeness
of the information contained therein. The language used in this Patent Security Agreement will be deemed to be the language chosen
by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. For clarification
purposes, the Recitals are part of this Patent Security Agreement.

 

8.         Governing
Law; Jurisdiction; Service of Process; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Patent Security Agreement shall be governed by the internal laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New York. Each party 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 suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper; provided, however, any suit seeking enforcement against any Patent Collateral or
other property may be brought, at any Secured Party’s option, in the courts of any jurisdiction where such Secured Party
elects to bring such action or where such Patent Collateral or other property may be found. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Patent Security Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Without limitation of the foregoing, each Grantor other than Parent
hereby irrevocably appoints Parent as such Grantor’s agent for purposes of receiving and accepting any service of process
hereunder or under any of the other Security Documents. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY.

 

[signature pages follow]

 

    	 

    	 

    

 

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

 

	GRANTORS:	MORRIA BIOPHARMACEUTICALS PLC
	 	 
	 	By:	 
	 	Name: Yuval Cohen
	 	Title: President
	 	 
	 	MORRIA BIOPHARMACEUTICALS INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

  

SCHEDULE
I

to

PATENT SECURITY AGREEMENT

 

Patents

 

Patent Licenses

 

    	 

    	 

    

 

EXHIBIT C

 

TRADEMARK SECURITY
AGREEMENT

 

This TRADEMARK SECURITY
AGREEMENT (this “Trademark Security Agreement”) is made this ___ day of April 2012, by the Grantors listed on
the signature pages hereof (collectively, jointly and severally, “Grantors” and each individually “Grantor”),
in favor of the Secured Parties under and as defined in the below-described Security Agreement.

 

RECITALS

 

WHEREAS, pursuant
to that certain Securities Purchase Agreement, dated as of April 3, 2012 (as may be amended, restated, supplemented, or
otherwise modified from time to time, including all schedules thereto, collectively, the “Securities Purchase
Agreement”), by and among Morria Biopharmaceuticals PLC, a public limited company formed under the laws of England
and Wales (“Parent”), and each of the Secured Parties, Parent has agreed to sell, and each of the Secured
Parties have each agreed to purchase, severally and not jointly, the Securities (as defined in the Securities Purchase
Agreement); and

 

WHEREAS, in order to
induce each of the Secured Parties to purchase, severally and not jointly, the Securities as provided for in the Securities Purchase
Agreement, Grantors have executed and delivered to each of the Secured Parties that certain Security Agreement of even date herewith
(including all annexes, exhibits or schedules thereto, as from time to time amended, restated, supplemented or otherwise modified,
the “Security Agreement”); and

 

WHEREAS, pursuant to
the Security Agreement, Grantors are required to execute and deliver to each of the Secured Parties this Trademark Security Agreement.

 

AGREEMENTS

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Grantors hereby agree as follows:

 

1.         DEFINED TERMS.
All capitalized terms used but not otherwise defined herein have the meanings given to them in the Security Agreement.

 

2.         GRANT OF SECURITY
INTEREST IN TRADEMARK COLLATERAL. Each Grantor hereby grants to each Secured Party a continuing first priority security interest
in all of such Grantor’s right, title and interest in, to and under the following, whether presently existing or hereafter
created or acquired (collectively, the “Trademark Collateral”):

 

(a)         all
of its Trademarks and Trademark Intellectual Property Licenses to which it is a party including those referred to on Schedule
I hereto;

 

(b)          all
goodwill, trade secrets, proprietary or confidential information, technical information, procedures, formulae, quality control
standards, designs, operating and training manuals, customer lists, and other General Intangibles with respect to the foregoing;

 

    	 

    	 

    

 

 

(c)         all
reissues, continuations or extensions of the foregoing;

 

(d)         all
goodwill of the business connected with the use of, and symbolized by, each Trademark and each Trademark Intellectual Property
License; and

 

(e)         all
products and proceeds of the foregoing, including any claim by such Grantor against third parties for past, present or future (i)
infringement or dilution of any Trademark or any Trademark licensed under any Intellectual Property License or (ii) injury to the
goodwill associated with any Trademark or any Trademark licensed under any Intellectual Property License;

 

provided, however, that
for the avoidance of doubt (and notwithstanding anything to the contrary in the Security Documents), no Security Interest shall
be granted pursuant to the Security Documents in respect of any Trademarks or other Intellectual Property that are the subject
matter of any Intellectual Property Licenses pursuant to which the Grantor is a licensee, except to the extent that the Grantor
has rights to such Trademarks or other Intellectual Property without consideration to, and independent of, the rights provided
under the related Intellectual Property Licenses.

 

3.         SECURITY FOR
OBLIGATIONS. This Trademark Security Agreement and the Security Interests created hereby secures the payment and performance
of all the Secured Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this
Trademark Security Agreement secures the payment of all amounts which constitute part of the Secured Obligations and would be owed
by Grantors, or any of them, to Secured Parties, or any of them, whether or not they are unenforceable or not allowable due to
the existence of an Insolvency Proceeding involving any Grantor.

 

4.         SECURITY AGREEMENT.
The security interests granted pursuant to this Trademark Security Agreement are granted in conjunction with the security interests
granted to Secured Parties pursuant to the Security Agreement. Each Grantor hereby acknowledges and affirms that the rights and
remedies of Secured Parties with respect to their respective security interests in the Trademark Collateral made and granted hereby
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

 

5.         AUTHORIZATION
TO SUPPLEMENT. If any Grantor shall obtain rights to any new trademarks, the provisions of this Trademark Security Agreement
shall automatically apply thereto. To the extent required under the Security Agreement, Grantors shall give prompt notice in writing
to Secured Parties with respect to any such new trademarks or renewal or extension of any trademark registration. Without limiting
each Grantor’s obligations under this Section 5, Grantors hereby authorize Secured Parties unilaterally to modify this Agreement
by amending Schedule I to include any such new trademark rights of Grantors. Notwithstanding the foregoing, no failure
to so modify this Trademark Security Agreement or amend Schedule I shall in any way affect, invalidate or detract
from any Secured Party’s continuing security interest in all Collateral, whether or not listed on Schedule I.

 

    	 

    	 

    

  

6.         COUNTERPARTS.
This Trademark Security Agreement may be executed in two or more identical counterparts, all of which shall be considered one and
the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.
In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format
(.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.
In proving this Trademark Security Agreement or any other Transaction Document in any judicial proceedings, it shall not be necessary
to produce or account for more than one such counterpart signed by the party against whom such enforcement is sought.

 

7.         CONSTRUCTION.
Unless the context of this Trademark Security Agreement or any other Transaction Document clearly requires otherwise, references
to the plural include the singular, references to the singular include the plural, the terms “includes” and “including”
are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the
phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,”
and similar terms in this Trademark Security Agreement or any other Transaction Document refer to this Trademark Security Agreement
or such other Transaction Document, as the case may be, as a whole and not to any particular provision of this Trademark Security
Agreement or such other Transaction Document, as the case may be. Section, subsection, clause, schedule, and exhibit references
herein are to this Agreement unless otherwise specified. Any reference in this Trademark Security Agreement or in any other Transaction
Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions
on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements
set forth herein). Any reference herein to any Person shall be construed to include such Person’s permitted successors and
permitted assigns. Any requirement of a writing contained herein or in any other Transaction Document shall be satisfied by the
transmission of a Record and any Record so transmitted shall constitute a representation and warranty as to the accuracy and completeness
of the information contained therein. The language used in this Trademark Security Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. For
clarification purposes, the Recitals are part of this Trademark Security Agreement.

 

    	 

    	 

    

  

8.         Governing
Law; Jurisdiction; Service of Process; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Trademark Security Agreement shall be governed by the internal laws of the State of New York, without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each party 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 suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper; provided, however, any suit seeking enforcement against any Trademark Collateral
or other property may be brought, at any Secured Party’s option, in the courts of any jurisdiction where such Secured Party
elects to bring such action or where such Trademark Collateral or other property may be found. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Trademark Security Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Without limitation of the foregoing, each Grantor other than
Parent hereby irrevocably appoints Parent as such Grantor’s agent for purposes of receiving and accepting any service of
process hereunder or under any of the other Security Documents. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

[signature pages follow]

 

    	 

    	 

    

 

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

 

	GRANTORS:	MORRIA BIOPHARMACEUTICALS PLC
	 	 
	 	By:	 
	 	Name: Yuval Cohen
	 	Title: President
	 	 
	 	MORRIA BIOPHARMACEUTICALS INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

SCHEDULE I

to

TRADEMARK SECURITY AGREEMENT 

Trademark Registrations/Applications

 

	Grantor	 	Description of Trademark	 	Registration Number	 	Issue Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

Trade Names

 

Common Law Trademarks

 

Trademarks Not Currently
In Use

 

Trademark Licenses

 

    	 

    	 

    

 

EXHIBIT D

 

FORM OF GUARANTY

 

See attached.

 

    	 

    	 

    

 

ANNEX A

to

SECURITY

AGREEMENT

 

FORM OF ADDITIONAL
GRANTOR JOINDER

 

Security Agreement dated
as of April 4, 2012 made by

Morria Biopharmaceuticals
PLC

and its Subsidiaries party
thereto from time to time, as Grantors

to and in favor of

the Secured Parties identified
therein (the “Security Agreement”)

 

Reference is made
to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have the meanings
given to such terms in, or by reference in, the Security Agreement.

 

The undersigned
hereby agrees that upon delivery of this Additional Grantor Joinder to the Secured Parties referred to above, the undersigned shall
(a) be an Additional Grantor under the Security Agreement, (b) have all the rights and obligations of the Grantors under the Security
Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to have made
the representations and warranties set forth therein as of the date of execution and delivery of this Additional Grantor Joinder.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY INTEREST
IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS
SET FORTH THEREIN.

 

Attached hereto
are supplemental and/or replacement Schedules to the Security Agreement, as applicable.

 

An executed copy
of this Joinder shall be delivered to the Secured Parties, and the Secured Parties may rely on the matters set forth herein on
or after the date hereof. This Joinder shall not be modified, amended or terminated without the prior written consent of the Secured
Parties.

 

			

    	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the name and on behalf of the undersigned.

 

	 	[Name of Additional Grantor]
	 	 
	 	By:
	 	Name:
	 	Title:
	 	 
	 	Address:

 

Dated:

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