SEC Contract Filing

Filing Date: 2020-06-30

Document Content:
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<TYPE>EX-10.03
<SEQUENCE>6
<FILENAME>ex10-03.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
10.03</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EXHIBIT
D</B></FONT></P>

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

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<P STYLE="text-indent: 0.5in; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
SECURITY AGREEMENT, dated as of June __, 2020 (this &ldquo;<U>Agreement</U>&rdquo;), is among SRAX, Inc., a Delaware corporation
(the &ldquo;<U>Company</U>&rdquo;), all of the Subsidiaries of the Company (such subsidiaries, the &ldquo;<U>Guarantors</U>&rdquo;
and together with the Company, the &ldquo;<U>Debtors</U>&rdquo;) and the holders of the Company&rsquo;s Original Issue Discount
Senior Secured Convertible Debentures due June __, 2023, in the original aggregate principal amount of $12,500,000 (collectively,
the &ldquo;<U>Debentures</U>&rdquo;) signatory hereto, their endorsees, transferees and assigns (collectively, the &ldquo;<U>Secured
Parties</U>&rdquo;).</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>W
I T N E S S E T H:</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
pursuant to the Purchase Agreement (as defined in the Debentures), the Secured Parties have severally agreed to extend the loans
to the Company evidenced by the Debentures;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the &ldquo;<U>Guarantee</U>&rdquo;), the Guarantors have
jointly and severally agreed to guarantee and act as surety for payment of such Debentures; and</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHEREAS,
in order to induce the Secured Parties to extend the loans evidenced by the Debentures, each Debtor has agreed to execute and
deliver to the Secured Parties this Agreement and to grant the Secured Parties, <U>pari passu</U> with each other Secured Party
and through the Agent (as defined in Section 18 hereof), a security interest in certain property of such Debtor to secure the
prompt payment, performance and discharge in full of all of the Company&rsquo;s obligations under the Debentures and the Guarantors&rsquo;
obligations under the Guarantee.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOW,
THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.
<B>Certain Definitions</B>. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.
Terms used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as &ldquo;account&rdquo;,
&ldquo;chattel paper&rdquo;, &ldquo;commercial to