SEC Contract Filing

Filing Date: 2017-09-25

Document Content:
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<TYPE>EX-10.6
<SEQUENCE>7
<FILENAME>sbid_ex106.htm
<DESCRIPTION>FORM OF 2017 SECURITY AGREEMENT
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&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Exhibit 10.6</font><br></font></div>
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SECURITY AGREEMENT</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">This
Security Agreement (this &#x201C;<font style="font-weight: bold">Security Agreement</font>&#x201D;) is made as of
_______, 2017 by and among Sincerity Applied Materials Holdings
Corp., a Nevada corporation, (the &#x201C;<font style="font-weight: bold">Company</font>&#x201D;) and its subsidiary,
Sincerity Australia Pty Ltd., an Australia corporation (the
&#x201C;<font style="font-weight: bold">Subsidiary</font>&#x201D;),
(collectively, the &#x201C;<font style="font-weight: bold">Grantors</font>&#x201D;); each
&#x201C;<font style="font-weight: bold">Purchaser</font>&#x201D;
named in the Omnibus Signature Page(s) to the Subscription
Agreement of even date herewith (the &#x201C;<font style="font-weight: bold">Subscription Agreement</font>&#x201D;) between
the Company and the Purchasers, relating to units consisting of the
Company&#x2019;s 8% Senior Convertible Secured Promissory Notes (the
&#x201C;<font style="font-weight: bold">Notes</font>&#x201D;) and
warrants to purchase shares of the Company&#x2019;s common stock;
and _____________, in its capacity as the Collateral Agent for the
Noteholders (in such capacity, the &#x201C;<font style="font-weight: bold">Collateral Agent</font>&#x201D;).</font></div>
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WITNESSETH:</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">WHEREAS</font>, pursuant to the Subscription
Agreement, the Company has agreed to sell, and the Purchasers have
agreed to purchase the Units, including the Notes;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">WHEREAS</font>, each Grantor will receive
direct and substantial benefits from the purchase by the Purchasers
of the Notes; and</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">WHEREAS</font>, it is a condition precedent to
the Purchaser purchasing the Notes that each Grantor shall have
granted a first priority security interest in and lien on the
Collateral to the Collateral Agent; and</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">NOW, THEREFORE</font>, for and in consideration
of the Subscription Agreement and the Note, the other premises and
other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and intending to be legally bound,
the parties covenant and agree as follows:</font></div>
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<div style="margin-left: 0px; text-indent: 0px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">Definitions</font>.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Capitalized terms
used herein without definition shall have the meanings ascribed to
them in the Subscription Agreement. In addition to the words and
terms defined elsewhere in this Agreement, the following words and
terms shall have the following meanings, unless the context
otherwise clearly requires:</font></div>
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