SEC Contract Filing

Filing Date: 2015-07-16

Document Content:
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>ex_10-3.htm
<DESCRIPTION>FORM OF SECURITY AGREEMENT
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 10.3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>SECURITY AGREEMENT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 34.7pt">This SECURITY AGREEMENT
(&ldquo;<U>Agreement</U>&rdquo;) is made as of July 9, 2015, by and between <FONT STYLE="text-transform: uppercase">GROWLIFE, INC.</FONT>,
a corporation incorporated under the laws of the State of Delaware (the &ldquo;<U>Company</U>&rdquo;), in favor of TCA GLOBAL CREDIT
MASTER FUND, LP, a limited partnership organized and existing under the laws of the Cayman Islands (the &ldquo;<U>Secured Party</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 34.7pt">WHEREAS, pursuant to a
Securities Purchase Agreement dated as of April 30, 2015 and effective as of even date herewith by and between Company and the
Secured Party (the &ldquo;<U>Purchase Agreement</U>&rdquo;), the Company has agreed to issue to the Secured Party and the Secured
Party has agreed to purchase from Company certain secured redeemable debentures (the &ldquo;<U>Debentures</U>&rdquo;), as more
specifically set forth in the Purchase Agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.15pt">WHEREAS, in order to
induce the Secured Party to purchase the Debentures, Company has agreed to execute and deliver to the Secured Party this Agreement
for the benefit of the Secured Party and to grant to Secured Party an unconditional and continuing, first priority security interest
in all of the assets and property of the Company to secure the prompt payment, performance and discharge in full of all of Company&rsquo;s
obligations under the Debentures, the Purchase Agreement and the other Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 34.95pt">NOW, THEREFORE, in consideration
of the mutual covenants and agreements of the parties hereinafter set forth and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties each intending to be legally bound, hereby do agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="color: #2F2F2F">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Recitals</U>.
The recitations set forth in the preamble of this Agreement are true and correct and incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt"><FONT STYLE="color: #2F2F2F">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Construction
and Definition of Terms</U>. In this Agreement, unless the express context otherwise requires: (i) the words &ldquo;herein,&rdquo;
&ldquo;hereof&rsquo; and &ldquo;hereunder&rdquo; and words of similar import refer to this Agreement as a whole and not to any
particular provision of this Agreement; (ii) references to the words &ldquo;Section&rdquo; or &ldquo;Subsection&rdquo; refer to
the respective Sections and Subsections of this Agreement, and references to &ldquo;Exhibit&rdquo; or &ldquo;Schedule&rdquo; refer
to the respective Exhibits and Schedules attached hereto; (iii) wherever the word &ldquo;include,&rdquo; &ldquo;includes&rdquo;
or &ldquo;including&rdquo; is used in this Agreement, it will be deemed to be followed by the words &ldquo;without limitation.&rdquo;
All capitalized terms used in this Agreement that are defined in the Purchase Agreement or otherwise defined in Articles 8 or 9
of the Code shall have the meanings assigned to them in the Purchase Agreement or the Code, respectively and as applicable, unless
the context of this Agreement requires otherwise. In addition to the capitalized terms defined in the Code and the Purchase Agreement,
unless the context otherwise requires, when used herein, the following capitalized terms shall have the following meanings (provided
that if a capitalized term used herein is defined in the</P>

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<P style="margin:0px" align=center>1</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify">Purchase
Agreement and separately defined in<B> </B>this Agreement, the meaning of such t