SECURITY
AGREEMENT
This
SECURITY AGREEMENT (the “Security Agreement”) dated as of June 30, 2015, but made effective as
of October 13, 2015, is executed by and among GREEN ENDEAVORS, INC., a corporation incorporated under the laws of the State
of Utah, XXXXXX SALONS, INC., a corporation incorporated under the laws of the State of Utah, XXXXXX SALONS II, INC.,
a corporation incorporated under the laws of the State of Utah, DIVERSIFIED MANAGEMENT SERVICES, INC., a corporation incorporated
under the laws of the State of Utah, WASATCH CAPITAL CORPORATION, a corporation incorporated under the laws of the State
of Utah, DOWNTOWN DEVELOPMENT CORPORATION, a corporation incorporated under the laws of the State of Utah, WG PRODUCTIONS
COMPANY, a corporation incorporated under the laws of the State of Utah, XXXXXX EXPERIENCE CENTER, LLC, a limited liability
company organized under the laws of the State of Utah, SLIDE THE CITY, LLC, a limited liability company organized under
the laws of the State of Utah, SLIDE THE CITY FRANCHISING, LLC, a limited liability company organized under the laws of
the State of Utah, LANTERN FEST, LLC, a limited liability company organized under the laws of the State of Utah, REDLINE
ENTERTAINMENT, INC., a corporation incorporated under the laws of the State of Utah, SLIDE THE CITY CANADA, LLC, a
limited liability company organized under the laws of the State of Utah, SPRINGBOK HOLDINGS, LLC, a limited liability company
organized under the laws of the State of Utah, COLOR ME RAD, LLC, a limited liability company organized under the laws
of the State of Utah, THE DIRTY DASH, LLC, a limited liability company organized under the laws of the State of Utah, SPRINGBOK
SLIDE THE CITY, LLC, a limited liability company organized under the laws of the State of Utah, SPRINGBOK FRANCHISING,
LLC, a limited liability company organized under the laws of the State of Utah, and SPRINGBOK MANAGEMENT, LLC, a limited
liability company organized under the laws of the State of Utah (each of the foregoing sometimes individually referred to as a
“Debtor” and all such entities sometimes hereinafter collectively referred to as “Debtors”),
with the Debtors having their chief executive offices located at 59 West 000 Xxxxx, 0xx Xxxxx, Xxxx Xxxx Xxxx, XX 00000,
and TCA Global Credit Master Fund, LP (the “Secured Party”).
R
E C I T A L S:
WHEREAS,
pursuant to a Credit Agreement dated of even date herewith (the “Credit Agreement”) by and between SACK
LUNCH PRODUCTIONS, INC., a Utah corporation (the “Company”), additional Credit Parties, and the
Secured Party, the Company desires to borrow funds and obtain financial accommodations from Secured Party (such financial accommodations
hereinafter referred to as the “Loan”); and
WHEREAS,
in order to induce Secured Party to enter into the Loan with the Company, each of the Debtors, each being a wholly-owned Subsidiary
of the Company, has entered into and executed a Guaranty Agreement dated of even date herewith in favor of Secured Party (the
“Guaranty Agreement”); and
WHEREAS,
in order to induce the Secured Party make the Loan, and to secure each Debtor’s liabilities and obligations under the Guaranty
Agreement, each Debtor has agreed to execute and deliver to the Secured Party this Agreement for the benefit of the Secured Party;
NOW,
THEREFORE, in consideration of the credit extended now and in the future by Secured Party to the Company and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Debtors and Secured Party hereby agree as
follows:
A
G R E E M E N T S:
1 DEFINITIONS.
1.1 Defined
Terms. Capitalized terms used but not otherwise defined in this Security Agreement (including the Recitals) shall have the
meanings ascribed to them in the Credit Agreement. For the purposes of this Security Agreement, the following capitalized words
and phrases shall have the meanings set forth below.
(a) “Capital
Securities” shall mean, with respect to any Person, all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) of such Person’s capital, whether now outstanding or issued or acquired after
the date hereof, including common shares, preferred shares, membership interests in a limited liability company, limited or general
partnership interests in a partnership or any other equivalent of such ownership interest.
(b) “Collateral”
shall have the meaning set forth in Section 2.1 hereof.
(c) “Obligor”
shall mean, collectively, each of the Debtors, or any other party liable with respect to the Obligations.
(d) “Organizational
Identification Number” means, with respect to each Debtor, the organizational identification number assigned to
such Debtor by the applicable governmental unit or agency of the jurisdiction of organization of such Debtor, if any.
(e) “Taxes”
shall mean any and all present and future taxes, duties, levies, imposts, deductions, assessments, charges or withholdings, and
any and all liabilities (including interest and penalties and other additions to taxes) with respect to the foregoing.
(f) “Unmatured
Event of Default” shall mean any event which, with the giving of notice, the passage of time or both, would constitute
an Event of Default.
1.2 Other
Terms Defined in UCC. All other capitalized words and phrases used herein and not otherwise specifically defined herein or
in the Credit Agreement shall have the respective meanings assigned to such terms in the UCC, to the extent the same are used
or defined therein.
1.3 Other
Interpretive Provisions.
(a) The
meanings of defined terms are equally applicable to the singular and plural forms of the defined terms. Whenever the context so
requires, the neuter gender includes the masculine and feminine, the single number includes the plural, and vice versa, and in
particular the word “Debtor” or “Debtors” shall be so construed.
(b) Section
and Schedule references are to this Security Agreement unless otherwise specified. The words “hereof”, “herein”
and “hereunder” and words of similar import when used in this Security Agreement shall refer to this Security Agreement
as a whole and not to any particular provision of this Security Agreement
(c) The
term “including” (or words of similar import) is not limiting, and means “including, without limitation”.
(d) In
the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including”; the words “to” and “until” each mean “to but excluding”, and the word
“through” means “to and including”.
(e) Unless
otherwise expressly provided herein: (i) references to agreements (including this Security Agreement and the other Loan Documents)
and other contractual instruments shall be deemed to include all subsequent amendments, restatements, supplements and other modifications
thereto, but only to the extent such amendments, restatements, supplements and other modifications are not prohibited by the terms
of any Loan Document; and (ii) references to any statute or regulation shall be construed as including all statutory and regulatory
provisions amending, replacing, supplementing or interpreting such statute or regulation.
(f) To
the extent any of the provisions of the other Loan Documents are inconsistent with the terms of this Security Agreement, the provisions
of this Security Agreement shall govern.
(g) This
Security Agreement and the other Loan Documents may use several different limitations, tests or measurements to regulate the same
or similar matters. All such limitations, tests and measurements are cumulative and each shall be performed in accordance with
its terms.
(h) The
term “Debtor” or “Debtors” shall refer to each Debtor individually, and to all Debtors, collectively,
in each case as the context may so require, it being the intent of the parties under this Agreement that all of the terms, conditions,
provisions and representations hereof shall, to the greatest extent possible, apply equally to each Debtor, as if each term, covenant,
provision and representation was separately made herein by each Debtor.
2 SECURITY
FOR THE OBLIGATIONS.
2.1 Security
for Obligations. As security for the payment and performance of the Obligations, each Debtor does hereby pledge, assign, transfer,
deliver and grant to Secured Party, for its own benefit and as agent for its Affiliates, a continuing and unconditional first
priority security interest in and to any and all property of each such Debtor, of any kind or description, tangible or intangible,
wheresoever located and whether now existing or hereafter arising or acquired, including the following (all of which property
for each Debtor, along with the products and proceeds therefrom, are individually and collectively referred to as the “Collateral”):
(a) all
property of, or for the account of, each Debtor now or hereafter coming into the possession, control or custody of, or in transit
to, Secured Party or any agent or bailee for Secured Party or any parent, affiliate or subsidiary of Secured Party or any participant
with Secured Party in the Obligations (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise),
including all cash, earnings, dividends, interest, or other rights in connection therewith and the products and proceeds therefrom,
including the proceeds of insurance thereon; and
(b) the
additional property of each Debtor, whether now existing or hereafter arising or acquired, and wherever now or hereafter located,
together with all additions and accessions thereto, substitutions, betterments and replacements therefor, products and Proceeds
therefrom, and all of each Debtor’s books and records and recorded data relating thereto (regardless of the medium of recording
or storage), together with all of each Debtor’s right, title and interest in and to all computer software required to utilize,
create, maintain and process any such records or data on electronic media, identified and set forth as follows:
(i) All
Accounts and all goods whose sale, lease or other disposition by each Debtor has given rise to Accounts and have been returned
to, or repossessed or stopped in transit by, each Debtor, or rejected or refused by any Customer;
(ii) All
Inventory, including raw materials, work-in-process and finished goods;
(iii) All
goods (other than Inventory), including embedded software, Equipment, vehicles, furniture and Fixtures;
(iv) All
Software and computer programs;
(v) All
Securities, Investment Property, Financial Assets and Deposit Accounts, specifically including the Lock Box Account, and all funds
at any time deposited therewith, and all funds and amounts reserved or held back by any Payment Processing Companies;
(vi) All
As-Extracted Collateral, Commodity Accounts, Commodity Contracts, and Farm Products;
(vii) All
Chattel Paper, Electronic Chattel Paper, Instruments, Documents, Letter of Credit Rights, all proceeds of letters of credit, Health-Care-Insurance
Receivables, Supporting Obligations, notes secured by real estate, Commercial Tort Claims and General Intangibles, including Payment
Intangibles; and
(viii) All
real estate property owned by each Debtor and the interest of each Debtor in fixtures related to such real property;
(ix) All
Proceeds (whether Cash Proceeds or Non-cash Proceeds) of the foregoing property, including all insurance policies and proceeds
of insurance payable by reason of loss or damage to the foregoing property, including unearned premiums, and of eminent domain
or condemnation awards.
2.2 Possession
and Transfer of Collateral. Until an Event of Default has occurred, but subject to Secured Party’s rights under the
Credit Agreement (specifically with respect to Secured Party’s rights to use and apply money in the Lock Box Account) each
Debtor shall be entitled to possession and use of the Collateral (other than Instruments or Documents (including Tangible Chattel
Paper and Investment Property consisting of certificated securities) and other Collateral required to be delivered to Secured
Party pursuant to this Section 2). The cancellation or surrender of any promissory note evidencing an Obligation, upon
payment or otherwise, shall not affect the right of Secured Party to retain the Collateral for any other of the Obligations, except
upon payment in full of the Obligations. No Debtor shall sell, assign (by operation of law or otherwise), license, lease or otherwise
dispose of, or grant any option with respect to any of the Collateral, except as permitted pursuant to the Credit Agreement.
2.3 Financing
Statements. Each Debtor authorizes Secured Party to prepare and file such financing statements, amendments and other documents
and do such acts as Secured Party deems necessary in order to establish and maintain valid, attached and perfected, first priority
security interests in the Collateral in favor of Secured Party, for its own benefit and as agent for its Affiliates, free and
clear of all Liens and claims and rights of third parties whatsoever, except Permitted Liens. Each Debtor hereby irrevocably authorizes
Secured Party at any time, and from time to time, to file in any jurisdiction any initial financing statements and amendments
thereto that: (a) indicate the Collateral: (i) is comprised of all assets of such Debtor (or words of similar effect), regardless
of whether any particular asset comprising a part of the Collateral falls within the scope of Article 9 of the UCC of the jurisdiction
wherein such financing statement or amendment is filed; or (ii) as being of an equal or lesser scope or within greater detail
as the grant of the security interest set forth herein; and (b) contain any other information required by Section 5 of Article
9 of the UCC of the jurisdiction wherein such financing statement or amendment is filed regarding the sufficiency or filing office
acceptance of any financing statement or amendment, including: (A) whether each Debtor is an organization, the type of organization
and any Organizational Identification Number issued to each Debtor; and (B) in the case of a financing statement filed as a fixture
filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of the real property
to which the Collateral relates. Each Debtor agrees to furnish any such information to Secured Party promptly upon request. In
addition, each Debtor shall make appropriate entries on its books and records disclosing the security interests of Secured Party,
for its own benefit and as agent for its Affiliates, in the Collateral. Each Debtor hereby agrees that a photogenic or other reproduction
of this Security Agreement is sufficient for filing as a financing statement and each Debtor authorizes Secured Party to file
this Security Agreement as a financing statement in any jurisdiction.
2.4 Preservation
of the Collateral. Secured Party may, but is not required to, take such actions from time to time as Secured Party deems appropriate
to maintain or protect the Collateral. Secured Party shall have exercised reasonable care in the custody and preservation of the
Collateral if Secured Party takes such action as any Debtor shall reasonably request in writing which is not inconsistent with
Secured Party’s status as a secured party, but the failure of Secured Party to comply with any such request shall not be
deemed a failure to exercise reasonable care; provided, however, Secured Party’s responsibility for the safekeeping
of the Collateral shall: (i) be deemed reasonable if such Collateral is accorded treatment substantially equal to that which Secured
Party accords its own property; and (ii) not extend to matters beyond the control of Secured Party, including acts of God, war,
insurrection, riot or governmental actions. In addition, any failure of Secured Party to preserve or protect any rights with respect
to the Collateral against prior or third parties, or to do any act with respect to preservation of the Collateral, not so requested
by a Debtor, shall not be deemed a failure to exercise reasonable care in the custody or preservation of the Collateral. Each
Debtor shall have the sole responsibility for taking such action as may be necessary, from time to time, to preserve all rights
of each Debtor and Secured Party in the applicable Collateral against prior or third parties. Without limiting the generality
of the foregoing, where Collateral consists, in whole or in part, of Capital Securities, each Debtor represents to, and covenants
with, Secured Party that each Debtor has made arrangements for keeping informed of changes or potential changes affecting the
Capital Securities (including rights to convert or subscribe, payment of dividends, reorganization or other exchanges, tender
offers and voting rights), and each Debtor agrees that Secured Party shall have no responsibility or liability for informing any
Debtor of any such or other changes or potential changes or for taking any action or omitting to take any action with respect
thereto.
2.5 Other
Actions as to any and all Collateral. Each Debtor further agrees to take any other action reasonably requested by Secured
Party to ensure the attachment, perfection and first priority of, and the ability of Secured Party to enforce, the security interest
of Secured Party, for its own benefit and as agent for its Affiliates, in any and all of the Collateral, including: (i) causing
Secured Party’s name to be noted as secured party on any certificate of title for a titled good if such notation is a condition
to attachment, perfection or priority of, or ability of the bank to enforce, the security interest of Secured Party, for its own
benefit and as agent for its Affiliates, in such Collateral; (ii) complying with any provision of any statute, regulation or treaty
of the United States as to any material portion of the Collateral as soon as possible but not more than forty-five (45) days after
such request if compliance with such provision is a condition to attachment, perfection or priority of, or ability of Secured
Party to enforce, the security interest of Secured Party, for its own benefit and as agent for its Affiliates, in such Collateral;
(iii) obtaining governmental and other third party consents and approvals, including, without limitation, any consent of any licensor,
lessor or other Person with authority or control over or an interest in any material portion of the Collateral as soon as possible
but not more than forty-five (45) days after such request; (iv) obtaining waivers from mortgagees and landlords in form and substance
reasonably satisfactory to Secured Party which affect any material portion of the Collateral as soon as possible but not more
than forty-five (45) days after such request; and (v) taking all actions required by the UCC in effect from time to time or by
other law, as applicable in any relevant UCC jurisdiction, or by other law as applicable in any foreign jurisdiction. Each Debtor
further agrees to indemnify and hold Secured Party harmless against claims of any Persons not a party to this Security Agreement
concerning disputes arising over the Collateral, except to the extent resulting from the gross negligence or willful misconduct
of Secured Party or its Affiliates.
2.6 Collateral
in the Possession of a Warehouseman or Bailee. If any material portion of the Collateral at any time is in the possession
of a warehouseman or bailee, each Debtor shall promptly notify Secured Party thereof, and, as soon as possible, but not more than
forty-five (45) days later, shall obtain a Collateral Access Agreement in form and substance reasonably satisfactory to Secured
Party from such warehouseman or bailee.
2.7 Letter-of-Credit
Rights. If any Debtor at any time is a beneficiary under a letter of credit now or hereafter issued in favor of such Debtor,
such Debtor shall promptly notify Secured Party thereof and, at the request and option of Secured Party, such Debtor shall, pursuant
to an agreement in form and substance reasonably satisfactory to Secured Party, either: (i) arrange for the issuer and any confirmer
of such letter of credit to consent to an assignment to Secured Party, for its own benefit and as agent for its Affiliates, of
the proceeds of any drawing under the letter of credit; or (ii) arrange for Secured Party, for its own benefit and as agent for
its Affiliates, to become the transferee beneficiary of the letter of credit, with Secured Party agreeing, in each case, that
the proceeds of any drawing under the letter to credit are to be applied as provided in the Credit Agreement.
2.8 Commercial
Tort Claims. If any Debtor shall at any time hold or acquire a Commercial Tort Claim, such Debtor shall promptly notify Secured
Party in writing signed by such Debtor of the details thereof and grant to Secured Party, for its own benefit and as agent for
its Affiliates, in such written notice or other written instrument, a security interest therein and in the proceeds thereof, all
upon the terms of this Security Agreement, in each case in form and substance reasonably satisfactory to Secured Party, and shall
execute any amendments hereto deemed reasonably necessary by Secured Party to perfect the security interest of Secured Party,
for its own benefit and as agent for its Affiliates, in such Commercial Tort Claim.
2.9 Electronic
Chattel Paper and Transferable Records. If any Debtor at any time holds or acquires an interest in any electronic chattel
paper or any “transferable record”, as that term is defined in Section 201 of the federal Electronic Signatures in
Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
such Debtor shall promptly notify Secured Party thereof and, at the request of Secured Party, shall take such action as Secured
Party may reasonably request to vest in Secured Party control under Section 9-105 of the UCC of such electronic chattel paper
or control under Section 201 of the federal Electronic Signatures in Global and National Commerce Act or, as the case may be,
Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record. Secured
Party agrees with each Debtor that Secured Party will arrange, pursuant to procedures reasonably satisfactory to Secured Party
and so long as such procedures will not result in Secured Party’s loss of control, for such Debtor to make alterations to
the electronic chattel paper or transferable record permitted under Section 9-105 of the UCC or, as the case may be, Section 201
of the federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions
Act, for a party in control to make without loss of control.
2.10 Additional
Requirements on Collateral. Each Debtor shall fully cooperate with Secured Party to obtain and keep in effect one or more
control agreements in Deposit Accounts, Electronic Chattel Paper, Investment Property and Letter-of-Credit Rights Collateral.
Such control agreements shall only be required if, in the reasonable discretion of the Secured Party, the nature of the Collateral
requires any such control agreements in order for the Secured Party to perfect its security interests in any Collateral as granted
hereunder, and in such event, each Debtor shall promptly provide any such control agreements upon request from the Secured Party.
In addition, each Debtor, at the Debtor’s expense, shall promptly: (A) execute all notices of security interest for each
relevant type of Software and other General Intangibles in forms suitable for filing with any United States or foreign office
handling the registration or filing of patents, trademarks, copyrights and other intellectual property and any successor office
or agency thereto; and (B) take all commercially reasonable steps in any hearing, suit, action, or other proceeding before any
such office or any similar office or agency in any other country or any political subdivision thereof, to diligently prosecute
or maintain, as applicable, each application and registration of any Software, General Intangibles or any other intellectual property
rights and assets that are part of the Collateral, including filing of renewals, affidavits of use, affidavits of incontestability
and opposition, interference and cancellation proceedings.
3 REPRESENTATIONS
AND WARRANTIES.
Each
Debtor makes the following representations and warranties to Secured Party:
3.1 Debtor
Organization and Name. Each Debtor is a corporation, limited liability company, or other legally recognized form of entity,
as applicable, duly organized, existing and in good standing under the laws of its State of organization, with full and adequate
power to carry on and conduct its business as presently conducted. Each Debtor is duly licensed or qualified in all foreign jurisdictions
wherein the nature of its activities requires such qualification or licensing. Each Debtor’s Organizational Identification
Number is set forth in the Credit Agreement. The exact legal name of each Debtor is as set forth in the first paragraph of this
Security Agreement, and no Debtor currently conducts, nor has it during the last five (5) years conducted, business under any
other name or trade name.
3.2 Authorization.
Each Debtor has full right, power and authority to enter into this Security Agreement and to perform all of its duties and obligations
under this Security Agreement. The execution and delivery of this Security Agreement and the other Loan Documents will not, nor
will the observance or performance of any of the matters and things herein or therein set forth, violate or contravene any provision
of law or of the articles of incorporation, by-laws, operating agreement or other governing documents, as applicable, of each
Debtor. All necessary and appropriate action has been taken on the part of each Debtor to authorize the execution and delivery
of this Security Agreement.
3.3 Validity
and Binding Nature. This Security Agreement is the legal, valid and binding obligation of each Debtor, enforceable against
each Debtor in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’
rights generally and to general principles of equity.
3.4 Consent;
Absence of Breach. The execution, delivery and performance of this Security Agreement and any other documents or instruments
to be executed and delivered by each Debtor in connection herewith, do not and will not: (a) require any consent, approval, authorization,
or filings with, notice to or other act by or in respect of, any governmental authority or any other Person (other than filings
or notices pursuant to federal or state securities laws or other than any consent or approval which has been obtained and is in
full force and effect); (b) conflict with: (i) any provision of law or any applicable regulation, order, writ, injunction or decree
of any court or governmental authority; (ii) the articles of incorporation, bylaws, operating agreement, or other organic or governance
document applicable to each Debtor; or (iii) any agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding upon each applicable Debtor or any of its properties or assets; or (c) require, or result in, the creation
or imposition of any Lien on any asset of any Debtor, other than Liens in favor of Secured Party created pursuant to this Security
Agreement and Permitted Liens.
3.5 Ownership
of Collateral; Liens. Each Debtor is the sole owner of all the Collateral applicable to such Debtor, free and clear of all
Liens, charges and claims (including infringement claims with respect to patents, trademarks, service marks, copyrights and other
intellectual property rights), other than Permitted Liens.
3.6 Adverse
Circumstances. No condition, circumstance, event, agreement, document, instrument, restriction, litigation or proceeding (or
threatened litigation or proceeding or basis therefor) exists which: (i) would have a Material Adverse Effect upon any Debtor;
or (ii) would constitute an Event of Default or an Unmatured Event of Default.
3.7 Security
Interest. This Security Agreement creates a valid security interest in favor of Secured Party in the Collateral and, when
properly perfected by filing in the appropriate jurisdictions, or by possession or control of such Collateral by Secured Party
or delivery of such Collateral to Secured Party, shall constitute a valid, perfected, first-priority security interest in such
Collateral.
3.8 Place
of Business. The principal place of business and books and records of each Debtor is set forth in the preamble to this Security
Agreement, and the location of all Collateral, if other than at such principal place of business, is as set forth on Schedule
3.8 attached hereto and made a part hereof, and each Debtor shall promptly notify Secured Party of any change in such
locations. No Debtor will remove or permit the Collateral to be removed from such locations without the prior written consent
of Secured Party, except as permitted pursuant to the Credit Agreement.
3.9 Complete
Information. This Security Agreement and all financial statements, schedules, certificates, confirmations, agreements, contracts,
and other materials and information heretofore or contemporaneously herewith furnished in writing by any Debtor to Secured Party
for purposes of, or in connection with, this Security Agreement and the transactions contemplated hereby is, and all written information
hereafter furnished by or on behalf of any Debtor to Secured Party pursuant hereto or in connection herewith will be, true and
accurate in every material respect on the date as of which such information is dated or certified, and none of such information
is or will be incomplete by omitting to state any material fact necessary to make such information not misleading in light of
the circumstances under which made (it being recognized by Secured Party that any projections and forecasts provided by any Debtor
are based on good faith estimates and assumptions believed by Debtors to be reasonable as of the date of the applicable projections
or assumptions and that actual results during the period or periods covered by any such projections and forecasts may differ from
projected or forecasted results).
4 REMEDIES.
Upon
the occurrence of any default in the payment or performance of any of the covenants, conditions and agreements contained in this
Security Agreement or any other Event of Default, including any Event of Default under the Guaranty Agreement, Secured Party shall
have all rights, powers and remedies set forth in this Security Agreement or the other Loan Documents or in any other written
agreement or instrument relating to any of the Obligations or any security therefor, as a secured party under the UCC or as otherwise
provided at law or in equity. Without limiting the generality of the foregoing, Secured Party may, at its option upon the occurrence
of an Event of Default, declare its commitments to the Company to be terminated and all Obligations to be immediately due and
payable, or, if provided in the Loan Documents, all commitments of Secured Party to Debtors shall immediately terminate and all
Obligations shall be automatically due and payable, all without demand, notice or further action of any kind required on the part
of Secured Party. Each Debtor hereby waives any and all presentment, demand, notice of dishonor, protest, and all other notices
and demands in connection with the enforcement of Secured Party’s rights under the Loan Documents, and hereby consents to,
and waives notice of release, with or without consideration, of any Collateral, notwithstanding anything contained herein or in
the Loan Documents to the contrary. In addition to the foregoing:
4.1 Possession
and Assembly of Collateral. Secured Party may, without notice, demand or the initiation of legal process of any kind, take
possession of any or all of the Collateral (in addition to Collateral of which Secured Party already has possession), wherever
it may be found, and for that purpose may pursue the same wherever it may be found, and may at any time enter into any of Debtors’
premises where any of the Collateral may be or is supposed to be, and search for, take possession of, remove, keep and store any
of the Collateral until the same shall be sold or otherwise disposed of and Secured Party shall have the right to store and conduct
a sale of the same in any of Debtors’ premises without cost to Secured Party. At Secured Party’s request, each Debtor
will, at such Debtor’s sole expense, assemble the Collateral and make it available to Secured Party at a place or places
to be designated by Secured Party which is reasonably convenient to Secured Party and Debtors.
4.2 Sale
of Collateral. Secured Party may sell any or all of the Collateral at public or private sale, upon such terms and conditions
as Secured Party may deem proper, and Secured Party may purchase any or all of the Collateral at any such sale. Each Debtor acknowledges
that Secured Party may be unable to effect a public sale of all or any portion of the Collateral because of certain legal and/or
practical restrictions and provisions which may be applicable to the Collateral and, therefore, may be compelled to resort to
one or more private sales to a restricted group of offerees and purchasers. Each Debtor consents to any such private sale so made
even though at places and upon terms less favorable than if the Collateral were sold at public sale. Secured Party shall have
no obligation to clean-up or otherwise prepare the Collateral for sale. Secured Party may apply the net proceeds, after deducting
all costs, expenses, attorneys’ and paralegals’ fees incurred or paid at any time in the collection, protection and
sale of the Collateral and the Obligations, to the payment of the Obligations, returning the excess proceeds, if any, to Debtors.
Debtors shall remain liable for any amount remaining unpaid after such application, with interest at the Default Rate. Any notification
of intended disposition of the Collateral required by law shall be conclusively deemed reasonably and properly given if given
by Secured Party at least ten (10) calendar days before the date of such disposition. Each Debtor hereby confirms, approves and
ratifies all acts and deeds of Secured Party relating to the foregoing, and each part thereof, and expressly waives any and all
claims of any nature, kind or description which it has or may hereafter have against Secured Party or its representatives, by
reason of taking, selling or collecting any portion of the Collateral. Each Debtor consents to releases of the Collateral at any
time (including prior to default) and to sales of the Collateral in groups, parcels or portions, or as an entirety, as Secured
Party shall deem appropriate. Each Debtor expressly absolves Secured Party from any loss or decline in market value of any Collateral
by reason of delay in the enforcement or assertion or non-enforcement of any rights or remedies under this Security Agreement.
4.3 Standards
for Exercising Remedies. To the extent that applicable law imposes duties on Secured Party to exercise remedies in a commercially
reasonable manner, each Debtor acknowledges and agrees that it is not commercially unreasonable for Secured Party: (i) to incur
expenses deemed necessary by Secured Party to prepare Collateral for disposition or otherwise to complete raw material or work-in-process
into finished goods or other finished products for disposition; (ii) to fail to obtain third party consents for access to Collateral
to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the
collection or disposition of Collateral to be collected or disposed of; (iii) to fail to exercise collection remedies against
Customers or other Persons obligated on Collateral or to remove liens or encumbrances on or any adverse claims against Collateral;
(iv) to exercise collection remedies against Customers and other Persons obligated on Collateral directly or through the use of
collection agencies and other collection specialists; (v) to advertise dispositions of Collateral through publications or media
of general circulation, whether or not the Collateral is of a specialized nature; (vi) to contact other Persons, whether or not
in the same business as Debtors, for expressions of interest in acquiring all or any portion of the Collateral; (vii) to hire
one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized
nature; (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included
in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets; (ix) to dispose
of assets in wholesale rather than retail markets; (x) to disclaim disposition warranties, including any warranties of title;
(xi) to purchase insurance or credit enhancements to insure Secured Party against risks of loss, collection or disposition of
Collateral or to provide to Secured Party a guaranteed return from the collection or disposition of Collateral; or (xii) to the
extent deemed appropriate by Secured Party, to obtain the services of other brokers, investment bankers, consultants and other
professionals to assist Secured Party in the collection or disposition of any of the Collateral. Each Debtor acknowledges that
the purpose of this section is to provide non-exhaustive indications of what actions or omissions by Secured Party would not be
commercially unreasonable in Secured Party’s exercise of remedies against the Collateral and that other actions or omissions
by Secured Party shall not be deemed commercially unreasonable solely on account of not being indicated in this Section. Without
limitation upon the foregoing, nothing contained in this Section shall be construed to grant any rights to Debtors or to impose
any duties on Secured Party that would not have been granted or imposed by this Security Agreement or by applicable law in the
absence of this Section.
4.4 UCC
and Offset Rights. Secured Party may exercise, from time to time, any and all rights and remedies available to it under the
UCC or under any other applicable law in addition to, and not in lieu of, any rights and remedies expressly granted in this Security
Agreement or in any other agreements between any Obligor and Secured Party, and may, without demand or notice of any kind, appropriate
and apply toward the payment of such of the Obligations, whether matured or unmatured, including costs of collection and attorneys’
and paralegals’ fees and costs, and in such order of application as Secured Party may, from time to time, elect, any indebtedness
of Secured Party to any Obligor, however created or arising, including balances, credits, deposits, accounts or moneys of such
Obligor in the possession, control or custody of, or in transit to Secured Party. Each Debtor, on behalf of itself and any Obligor,
hereby waives the benefit of any law that would otherwise restrict or limit Secured Party in the exercise of its right, which
is hereby acknowledged, to appropriate at any time hereafter any such indebtedness owing from Secured Party to any Obligor.
4.5 Additional
Remedies. Upon the occurrence of an Event of Default, Secured Party shall have the right and power to:
(a) instruct
any Debtor, at its own expense, to notify any parties obligated on any of the Collateral, including any Customers and Payment
Processing Companies, to make payment directly to Secured Party of any amounts due or to become due thereunder, or Secured Party
may directly notify such obligors of the security interest of Secured Party, and/or of the assignment to Secured Party of the
Collateral and direct such obligors to make payment to Secured Party of any amounts due or to become due with respect thereto,
and thereafter, collect any such amounts due on the Collateral directly from such Persons obligated thereon;
(b) enforce
collection of any of the Collateral, including any Accounts, by suit or otherwise, or make any compromise or settlement with respect
to any of the Collateral, or surrender, release or exchange all or any part thereof, or compromise, extend or renew for any period
(whether or not longer than the original period) any indebtedness thereunder;
(c) take
possession or control of any proceeds and products of any of the Collateral, including the proceeds of insurance thereon;
(d) extend,
renew or modify for one or more periods (whether or not longer than the original period) the Obligations or any obligation of
any nature of any other obligor with respect to the Obligations;
(e) grant
releases, compromises or indulgences with respect to the Obligations, any extension or renewal of any of the Obligations, any
security therefor, or to any other obligor with respect to the Obligations;
(f) transfer
the whole or any part of Capital Securities which may constitute Collateral into the name of Secured Party or Secured Party’s
nominee without disclosing, if Secured Party so desires, that such Capital Securities so transferred are subject to the security
interest of Secured Party, and any corporation, association, or any of the managers or trustees of any trust issuing any of such
Capital Securities, or any transfer agent, shall not be bound to inquire, in the event that Secured Party or such nominee makes
any further transfer of such Capital Securities, or any portion thereof, as to whether Secured Party or such nominee has the right
to make such further transfer, and shall not be liable for transferring the same;
(g) vote
the Collateral;
(h) make
an election with respect to the Collateral under Section 1111 of the Bankruptcy Code or take action under Section 364 or any other
section of Bankruptcy Code; provided, however, that any such action of Secured Party as set forth herein shall not,
in any manner whatsoever, impair or affect the liability of Debtors hereunder, nor prejudice, waive, nor be construed to impair,
affect, prejudice or waive Secured Party’s rights and remedies at law, in equity or by statute, nor release, discharge,
nor be construed to release or discharge, Debtors, any Debtor or other Person liable to Secured Party for the Obligations; and
(i) at
any time, and from time to time, accept additions to, releases, reductions, exchanges or substitution of the Collateral, without
in any way altering, impairing, diminishing or affecting the provisions of this Security Agreement, the Loan Documents, or any
of the other Obligations, or Secured Party’s rights hereunder, under the Obligations.
Each
Debtor hereby ratifies and confirms whatever Secured Party may do with respect to the Collateral and agrees that Secured Party
shall not be liable for any error of judgment or mistakes of fact or law with respect to actions taken in connection with the
Collateral.
4.6 Attorney-in-Fact.
Each Debtor hereby irrevocably makes, constitutes and appoints Secured Party (and any officer of Secured Party or any Person designated
by Secured Party for that purpose) as such Debtor’s true and lawful proxy and attorney-in-fact (and agent-in-fact) in Debtor’s
name, place and stead, with full power of substitution, to: (i) take such actions as are permitted in this Security Agreement;
(ii) execute such financing statements and other documents and to do such other acts as Secured Party may require to perfect and
preserve Secured Party’s security interest in, and to enforce such interests in the Collateral; and (iii) upon the occurrence
of an Event of Default, carry out any remedy provided for in this Security Agreement, the Credit Agreement or through law or equity,
including endorsing such Debtor’s name to checks, drafts, instruments and other items of payment, and proceeds of the Collateral,
executing change of address forms with the postmaster of the United States Post Office serving the address of such Debtor, changing
the address of such Debtor to that of Secured Party, opening all envelopes addressed to such Debtor and applying any payments
contained therein to the Obligations, and changing any merchant accounts or instructions to Payment Processing Companies regarding
any credit/debit card payments from Customers. Each Debtor hereby acknowledges that the constitution and appointment of such proxy
and attorney-in-fact are coupled with an interest and are irrevocable. Each Debtor hereby ratifies and confirms all that such
attorney-in-fact may do or cause to be done by virtue of any provision of this Security Agreement.
4.7 No
Marshaling. Secured Party shall not be required to marshal any present or future collateral security (including this Security
Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral
security or other assurances of payment in any particular order. To the extent that it lawfully may, each Debtor 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 Secured Party’s rights under this Security Agreement or under any other instrument creating or evidencing any of the
Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof
is otherwise assured, and, to the extent that it lawfully may, each Debtor hereby irrevocably waives the benefits of all such
laws.
4.8 No
Waiver. No Event of Default shall be waived by Secured Party except in writing. No failure or delay on the part of Secured
Party in exercising any right, power or remedy hereunder shall operate as a waiver of the exercise of the same or any other right
at any other time; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise
thereof or the exercise of any other right, power or remedy hereunder. There shall be no obligation on the part of Secured Party
to exercise any remedy available to Secured Party in any order. The remedies provided for herein are cumulative and not exclusive
of any remedies provided at law or in equity. Each Debtor agrees that in the event that such Debtor fails to perform, observe
or discharge any of its Obligations or liabilities under this Security Agreement or any other agreements with Secured Party, no
remedy of law will provide adequate relief to Secured Party, and further agrees that Secured Party shall be entitled to temporary
and permanent injunctive relief in any such case without the necessity of proving actual damages.
4.9
Application of Proceeds. Secured Party will, within three (3) Business Days after receipt of cash or solvent credits from
collection of items of payment, proceeds of Collateral or any other source, apply the whole or any part thereof against the Obligations
secured hereby. Secured Party shall further have the exclusive right to determine how, when and what application of such payments
and such credits shall be made on the Obligations, and such determination shall be conclusive upon Debtors. Any proceeds of any
disposition by Secured Party of all or any part of the Collateral may be first applied by Secured Party to the payment of expenses
incurred by Secured Party in connection with the Collateral, including reasonable attorneys’ fees and legal expenses and
costs as provided for in Section 5.13 hereof.
5 MISCELLANEOUS.
5.1 Entire
Agreement. This Security Agreement and the other Loan Documents: (i) are valid, binding and enforceable against Debtors and
Secured Party in accordance with their respective provisions and no conditions exist as to their legal effectiveness; (ii) constitute
the entire agreement between the parties with respect to the subject matter hereof and thereof; and (iii) are the final expression
of the intentions of Debtors, the Company and Secured Party. No promises, either expressed or implied, exist between any Debtor
and Secured Party, unless contained herein or therein. This Security Agreement, together with the other Loan Documents, supersedes
all negotiations, representations, warranties, commitments, term sheets, discussions, negotiations, offers or contracts (of any
kind or nature, whether oral or written) prior to or contemporaneous with the execution hereof with respect to any matter, directly
or indirectly related to the terms of this Security Agreement and the other Loan Documents. This Security Agreement and the other
Loan Documents are the result of negotiations between Secured Party and Debtors and have been reviewed (or have had the opportunity
to be reviewed) by counsel to all such parties, and are the products of all parties. Accordingly, this Security Agreement and
the other Loan Documents shall not be construed more strictly against Secured Party merely because of Secured Party’s involvement
in their preparation.
5.2 Amendments;
Waivers. No delay on the part of Secured Party in the exercise of any right, power or remedy shall operate as a waiver thereof,
nor shall any single or partial exercise by Secured Party of any right, power or remedy preclude other or further exercise thereof,
or the exercise of any other right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any
provision of this Security Agreement or the other Loan Documents shall in any event be effective unless the same shall be in writing
and acknowledged by Secured Party, and then any such amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.
5.3 WAIVER
OF DEFENSES. EACH DEBTOR WAIVES EVERY PRESENT AND FUTURE DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH SUCH DEBTOR
MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY SECURED PARTY IN ENFORCING THIS SECURITY AGREEMENT. PROVIDED SECURED PARTY
ACTS IN GOOD FAITH, EACH DEBTOR RATIFIES AND CONFIRMS WHATEVER SECURED PARTY MAY DO PURSUANT TO THE TERMS OF THIS SECURITY AGREEMENT.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR SECURED PARTY GRANTING ANY FINANCIAL ACCOMMODATION TO DEBTORS.
5.4 MANDATORY
FORUM SELECTION. TO INDUCE SECURED PARTY TO MAKE CERTAIN FINANCIAL ACCOMODATIONS TO DEBTORS, EACH DEBTOR IRREVOCABLY AGREES
THAT ANY DISPUTE ARISING UNDER, RELATING TO, OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR RELATED TO ANY MATTER
WHICH IS THE SUBJECT OF OR INCIDENTAL TO THIS AGREEMENT ANY OTHER LOAN DOCUMENT, OR THE COLLATERAL (WHETHER OR NOT SUCH CLAIM
IS BASED UPON BREACH OF CONTRACT OR TORT) SHALL BE SUBJECT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL
COURTS LOCATED IN BROWARD COUNTY, FLORIDA; PROVIDED, HOWEVER, SECURED PARTY MAY, AT SECURED PARTY’S SOLE OPTION, ELECT TO
BRING ANY ACTION IN ANY OTHER JURISDICTION. THIS PROVISION IS INTENDED TO BE A “MANDATORY” FORUM SELECTION CLAUSE
AND GOVERNED BY AND INTERPRETED CONSISTENT WITH FLORIDA LAW. EACH DEBTOR HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION AND VENUE
OF ANY STATE OR FEDERAL COURT HAVING ITS SITUS IN SAID COUNTY (OR TO ANY OTHER JURISDICTION OR VENUE, IF SECURED PARTY SO ELECTS),
AND EACH WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS. EACH DEBTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS
AND CONSENT THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO A DEBTOR, AS
APPLICABLE, AS SET FORTH HEREIN IN THE MANNER PROVIDED BY APPLICABLE STATUTE, LAW, RULE OF COURT OR OTHERWISE.
5.5 WAIVER
OF JURY TRIAL. EACH DEBTOR AND SECURED PARTY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE
OR DEFEND ANY RIGHTS UNDER THIS SECURITY AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT, ANY OF THE OTHER OBLIGATIONS, THE COLLATERAL,
OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF CONDUCT
OR COURSE OF DEALING IN WHICH SECURED PARTY AND ANY DEBTOR ARE ADVERSE PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR SECURED PARTY GRANTING ANY FINANCIAL
ACCOMMODATION TO DEBTORS.
5.6 Assignability.
Secured Party, without consent from or notice to anyone, may at any time assign Secured Party’s rights in this Security
Agreement, the other Loan Documents, the Obligations, or any part thereof and transfer Secured Party’s rights in any or
all of the Collateral, and Secured Party thereafter shall be relieved from all liability with respect to such Collateral. This
Security Agreement shall be binding upon Secured Party and Debtors and their respective legal representatives and successors.
All references herein to any Debtor shall be deemed to include any successors, whether immediate or remote. In the case of a joint
venture or partnership, the term “Debtor” or “Debtors” shall be deemed to include all joint venturers
or partners thereof, who shall be jointly and severally liable hereunder.
5.7 Binding
Effect. This Security Agreement shall become effective upon execution by Debtors and Secured Party, and shall bind the Debtors
and Secured Party, and their respective successors and permitted assigns.
5.8 Governing
Law. Except in the case of the Mandatory Forum Selection Clause in Section 5.4 above, which clause shall be governed and interpreted
in accordance with Florida law, this Agreement shall be delivered and accepted in and shall be deemed to be a contract made under
and governed by the internal laws of the State of Nevada, and for all purposes shall be construed in accordance with the laws
of such State, without giving effect to the choice of law provisions of such State.
5.9 Enforceability.
Wherever possible, each provision of this Security Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Security Agreement shall be prohibited by, unenforceable or invalid under any
jurisdiction, such provision shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition
or invalidity, without invalidating the remaining provisions of this Security Agreement or affecting the validity or enforceability
of such provision in any other jurisdiction.
5.10 Time
of Essence. Time is of the essence in making payments of all amounts due Secured Party under the Loan Documents and in the
performance and observance by Debtors of each covenant, agreement, provision and term of this Security Agreement and the other
Loan Documents.
5.11 Counterparts;
Facsimile Signatures. This Security Agreement may be executed in any number of counterparts and by the different parties hereto
on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Security Agreement. Receipt of an executed signature page to this Security Agreement by facsimile
or other electronic transmission shall constitute effective delivery thereof. Electronic records of executed Loan Documents maintained
by Secured Party shall be deemed to be originals thereof.
5.12 Notices.
Except as otherwise provided herein, each Debtor waives all notices and demands in connection with the enforcement of Secured
Party’s rights hereunder. All notices, requests, demands and other communications provided for hereunder shall be made in
accordance with the terms of the Credit Agreement, and each of the Debtors agrees and acknowledges that notice to each of them
may be sent and delivered to the Company, as required under the Credit Agreement, and such notice to the Company shall be deemed
valid and effective notice to Debtors hereunder.
5.13 Costs,
Fees and Expenses. Debtors shall pay or reimburse Secured Party for all reasonable costs, fees and expenses incurred by Secured
Party or for which Secured Party becomes obligated in connection with the enforcement of this Security Agreement, including search
fees, costs and expenses and attorneys’ fees, costs and time charges of counsel to Secured Party and all taxes payable in
connection with this Security Agreement. In furtherance of the foregoing, Debtors shall pay any and all stamp and other taxes,
UCC search fees, filing fees and other costs and expenses in connection with the execution and delivery of this Security Agreement
and the other Loan Documents to be delivered hereunder, and agrees to save and hold Secured Party harmless from and against any
and all liabilities with respect to or resulting from any delay in paying or omission to pay such costs and expenses. That portion
of the Obligations consisting of costs, expenses or advances to be reimbursed by Debtors to Secured Party pursuant to this Security
Agreement or the other Loan Documents which are not paid on or prior to the date hereof shall be payable by Debtors to Secured
Party on demand. If at any time or times hereafter Secured Party: (a) employs counsel for advice or other representation: (i)
with respect to this Security Agreement or the other Loan Documents; (ii) to represent Secured Party in any litigation, contest,
dispute, suit or proceeding or to commence, defend, or intervene or to take any other action in or with respect to any litigation,
contest, dispute, suit, or proceeding (whether instituted by Secured Party, any Debtor, or any other Person) in any way or respect
relating to this Security Agreement; or (iii) to enforce any rights of Secured Party against any Debtor or any other Person under
of this Security Agreement; (b) takes any action to protect, collect, sell, liquidate, or otherwise dispose of any of the Collateral;
and/or (c) attempts to or enforces any of Secured Party’s rights or remedies under this Security Agreement, the costs and
expenses incurred by Secured Party in any manner or way with respect to the foregoing, shall be part of the Obligations, payable
by Debtors to Secured Party on demand.
5.14 Termination.
This Security Agreement and the Liens and security interests granted hereunder shall not terminate until the termination of the
Credit Agreement and the commitments to make Loans thereunder and the full and complete performance and satisfaction and payment
in full of all the Obligations (other than contingent indemnification obligations to the extent no claim giving rise thereto has
been asserted). Upon termination of this Security Agreement, Secured Party shall also deliver to Debtors (at the sole expense
of Debtors) such UCC termination statements, certificates for terminating the liens on the Motor Vehicles (if any) and such other
documentation, without recourse, warranty or representation whatsoever, as shall be reasonably requested by Debtors to effect
the termination and release of the Liens and security interests in favor of Secured Party affecting the Collateral; provided,
however, to the extent any such terminations or releases require Secured Party to expend any sums in terminating or releasing
any such Liens, Secured Party may refrain from terminating or releasing such Liens unless and until Debtors pay to Secured Party
the estimated cost, as reasonably determined by Secured Party, of effectuating such terminations or releases.
5.15 Reinstatement.
This Security Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or
against any Debtor for liquidation or reorganization, should any Debtor become insolvent or make an assignment for the benefit
of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Debtor’s
assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,”
or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof,
is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.
5.16 Increase
in Obligations. It is the intent of the parties to secure payment of the Obligations, as the amount of such Obligations may
increase from time to time in accordance with the terms and provisions of the Loan Documents, and all of the Obligations, as so
increased from time to time, shall be and are secured hereby. Upon the execution hereof, Debtors shall pay any and all documentary
stamp taxes and/or other charges required to be paid in connection with the execution and enforcement of the Loan Documents, and
if, as and to the extent the Obligations are increased from time to time in accordance with the terms and provisions of the Loan
Documents, then Debtors shall immediately pay any additional documentary stamp taxes or other charges in connection therewith.
5.17 Joint
and Several Liability. The liability of all Debtors hereunder for the Obligations, or for the performance of any other term,
condition, covenant or agreement of any Debtor hereunder, shall be joint and several as between all Debtors.
[Signatures
on the following page]
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
| GREEN
ENDEAVORS, INC., |
|
| a
Utah corporation |
|
| |
|
|
| By: |
/s/
Xxxxxxx Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
| |
|
|
| STATE
OF UTAH___ ) |
|
|
SS. |
| COUNTY
OF SALT LAKE___ ) |
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the CEO of Green
Endeavors, Inc., a Utah corporation, on behalf of such entity. He/She is personally known to me or has produced __________________________
as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary
Public |
| |
|
| |
Name
of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
XXXXXX
SALONS, INC.,
a
Utah corporation
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the President
of Xxxxxx Salons, Inc., a Utah corporation, on behalf of such entity. He/She is personally known to me or has produced __________________________
as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
XXXXXX
SALONS II, INC.,
a
Utah corporation
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_______ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the President
of Xxxxxx Salons II, Inc., a Utah corporation, on behalf of such entity. He/She is personally known to me or has produced __________________________
as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
DIVERSIFIED
MANAGEMENT SERVICES,
INC.,
a Utah corporation
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the President
of Diversified Management Services, Inc., a Utah corporation, on behalf of such entity. He/She is personally known to me or has
produced __________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
Xxxxxxx
Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
WASATCH
CAPITAL CORPORATION,
a
Utah corporation
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the President
of Wasatch Capital Corporation, a Utah corporation, on behalf of such entity. He/She is personally known to me or has produced
__________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
DOWNTOWN
DEVELOPMENT CORPORATION,
a
Utah corporation
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the President
of Downtown Development Corporation, a Utah corporation, on behalf of such entity. He/She is personally known to me or has produced
__________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
WG
PRODUCTIONS COMPANY,
a
Utah corporation
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the President
of WG Productions Company, a Utah corporation, on behalf of such entity. He/She is personally known to me or has produced __________________________
as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name
of Notary typed or printed
|
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
XXXXXX
EXPERIENCE CENTER, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the President
of Xxxxxx Experience Center, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me
or has produced __________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
SLIDE
THE CITY, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxx
Xxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH____ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 13th day of Oct., 2015 by Xxxxx Xxxx, who is the Manager of Slide
the City, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has produced __________________________
as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
SLIDE
THE CITY FRANCHISING, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxx
Xxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH____ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 13th day of Oct., 2015 by Xxxxx Xxxx, who is the Manager of Slide
the City Franchising, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has
produced __________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
LANTERN
FEST, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxx
Xxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH____ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 13th day of Oct., 2015 by Xxxxx Xxxx, who is the Manager of Lantern
Fest, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has produced __________________________
as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
|
Notary
Public
|
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
REDLINE
ENTERTAINMENT, INC.,
a
Utah corporation
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH__ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the Pesident
of Redline Entertainment, Inc., a Utah corporation, on behalf of such entity. He/She is personally known to me or has produced
__________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
SLIDE
THE CITY CANADA, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxx
Xxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH____ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 13th day of Oct., 2015 by Xxxxx Xxxx, who is the Manager of Slide
the City Canada, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has produced
__________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
SPRINGBOK
HOLDINGS, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the Manager of
Springbok Holdings, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has produced
__________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
COLOR
ME RAD, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the Manager of
Color Me Rad, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has produced
__________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
THE
DIRTY DASH, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the Manager of
The Dirty Dash, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has produced
__________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
SPRINGBOK
SLIDE THE CITY, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the Manager of
Springbok Slide the City, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or
has produced __________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
SPRINGBOK
FRANCHISING, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE_ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the Manager of
Springbok Franchising, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has
produced __________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
|
/s/
Xxxxxxx Xxxxxxxxx |
|
Notary Public |
|
|
|
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
Debtors:
SPRINGBOK
MANAGEMENT, LLC,
a
Utah limited liability company
| By: |
/s/ Xxxxxxx
Xxxxxx |
|
| Name: |
|
|
| Title: |
|
|
STATE
OF UTAH_ )
SS.
COUNTY
OF SALT LAKE__ )
The
foregoing instrument was acknowledged before me this 12th day of Oct., 2015 by Xxxxxxx Xxxxxx, who is the Manager of
Springbok Management, LLC, a Utah limited liability company, on behalf of such entity. He/She is personally known to me or has
produced __________________________ as identification.
My
Commission Expires: Jan. 21, 2018 Comm. No. 672477
| |
/s/
Xxxxxxx Xxxxxxxxx |
| |
Notary Public |
| |
|
| |
Name of Notary typed or printed |
IN
WITNESS WHEREOF, Debtors and Secured Party have executed this Security Agreement as of the date first above written.
| |
Agreed and accepted: |
| |
|
|
| |
Secured Party: |
| |
|
|
| |
TCA GLOBAL CREDIT MASTER FUND,
LP |
| |
|
|
| |
By: |
TCA Global Credit Fund GP, Ltd. |
| |
Its: |
General Partner |
| |
|
|
| |
By: |
/s/ Xxxxxx Press |
| |
|
Xxxxxx Press, Director |
Schedule
3.8
Collateral
Locations/Places of Business
59
West 000 Xxxxx, 0xx Xxxxx, Xxxx Xxxx Xxxx, XX 00000
