Document:

art8k120808-nirsec.htm

    Exhibit 10.08

    
      

      

    

    
      SECURITY
AGREEMENT

       

      SECURITY
AGREEMENT (this “Agreement”), dated as
of December 1, 2008, by and among AmeriResource Technologies, Inc., a Delaware
corporation (“Parent”), RoboServer
Systems Corp, BizAuctions, Inc., ARRT Receivables, Inc.; AuctionWagon, West
Texas Real Estate and Resources, Inc., Self-Serve Technologies, Inc.,
Net2Auction Corporation, Business Auctions, Inc., and BizAuctions, Corp.
(collectively the “Subsidiary”)(hereinafter
the Parent and the Subsidiary shall collectively be referred to as the “Company”) and the
secured parties signatory hereto and their respective endorsees, transferees and
assigns  (collectively, the “Secured
Party”).

       

      W I T N E
S S E T H:

       

      WHEREAS,
pursuant to a Securities Purchase Agreement, dated the date hereof, between
Parent and the Secured Party (the “Purchase Agreement”),
Parent has agreed to issue to the Secured Party and the Secured Party has agreed
to purchase from Parent certain of Parent’s 10% Callable Secured Convertible
Notes, due three years from the date of issue (the “Notes”), which are
convertible into shares of Company’s Common Stock, par value $.001 per share
(the “Common
Stock”).  In connection therewith, Parent shall issue the
Secured Party certain Common Stock purchase warrants (the “Warrants”);
and

       

      WHEREAS,
the Parent, A holdings company of multiple subsidiaries and its Subsidiary
entities have been, and are now, engaged in several business segments including
retail and wholesale inventory sales, technology development and sales as well
as other activities. The Parent has provided financing for the Subsidiary, and
the Subsidiary has relied upon the Parent to provide such
financing.  In addition, it is anticipated that, if the Subsidiary
executes and delivers this, the Parent will continue to provide such financing
to the Subsidiary, and that the proceeds will be used, in part, for the general
working capital purposes of the Subsidiary;

       

      WHEREAS,
the Subsidiary constitutes all of the subsidiaries of the Parent and it is in
the best interest of the Subsidiary as subsidiaries of the Parent and the
indirect beneficiaries of the Note, that the Secured Parties loan funds to the
Parent in exchange for the Note;

       

      WHEREAS,
in order to induce the Secured Party to purchase the Note, Company has agreed to
execute and deliver to the Secured Party this Agreement for the benefit of the
Secured Party and to grant to it a first priority security interest, with
exception to any bank or otherwise filed first priority interests already
established and disclosed in the Company’s 9-30-2008 10Q filed on 11-19-2008 and
recorded on 11-20-2008 in certain property of Company to secure the prompt
payment, performance and discharge in full of all of Company’s obligations under
the Note; and

       

      WHEREAS,
in light of the foregoing, the Company expects to derive substantial benefit
from the sale of the Note and the transactions contemplated thereby and, in
furtherance thereof, has agreed to execute and deliver this.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      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:

       

      1.         Certain
Definitions.  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 “general
intangibles” and “proceeds”) shall have
the respective meanings given such terms in Article 9 of the UCC.

       

      (a)        “Collateral” means the
collateral in which the Secured Party is granted a security interest by this
Agreement and which shall include the following, whether presently owned or
existing or hereafter acquired or coming into existence, and all additions and
accessions thereto and all substitutions and replacements thereof, and all
proceeds, products and accounts thereof, including, without limitation, all
proceeds from the sale or transfer of the Collateral and of insurance covering
the same and of any tort claims in connection therewith:

       

      (i)           All
Goods of the Company, including, without limitations, all machinery, equipment,
computers, motor vehicles, trucks, tanks, boats, ships, appliances, furniture,
special and general tools, fixtures, test and quality control devices and other
equipment of every kind and nature and wherever situated, together with all
documents of title and documents representing the same, all additions and
accessions thereto, replacements therefor, all parts therefor, and all
substitutes for any of the foregoing and all other items used and useful in
connection with the Company’s businesses and all improvements thereto
(collectively, the “Equipment”);
and

       

      (ii)          All
Inventory of the Company with the exception of inventory used in the daily
operations of the Company as long as the Company is operating; and

       

      (iii)         With
the exception of Schedule C attached,
All of the Company’s contract rights and general intangibles, including, without
limitation, all partnership interests, stock or other securities, licenses,
distribution and other agreements, computer software development rights, leases,
franchises, customer lists, quality control procedures, grants and rights,
goodwill, trademarks, service marks, trade styles, trade names, patents, patent
applications, copyrights, deposit accounts, and income tax refunds
(collectively, the “General
Intangibles”); and

       

      (iv)         All
Receivables of the Company including all insurance proceeds, and rights to
refunds or indemnification whatsoever owing, together with all instruments, all
documents of title representing any of the foregoing, all rights in any
merchandising, goods, equipment, motor vehicles and trucks which any of the same
may represent, and all right, title, security and guaranties with respect to
each Receivable, including any right of stoppage in transit; and

       

      (v)          All
of the Company’s documents, instruments and chattel paper, files, records, books
of account, business papers, computer programs and the products and proceeds of
all of the foregoing Collateral set forth in clauses (i)-(iv)
above.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b)        “Company” shall mean,
collectively, Company and all of the subsidiaries of Company, a list of which is
contained in Schedule
A, attached hereto.

       

      (c)        “Obligations” means
all of the Company’s obligations under this Agreement and the Note, in each
case, whether now or hereafter existing, voluntary or involuntary, direct or
indirect, absolute or contingent, liquidated or unliquidated, whether or not
jointly owed with others, and whether or not from time to time decreased or
extinguished and later decreased, created or incurred, and all or any portion of
such obligations or liabilities that are paid, to the extent all or any part of
such payment is avoided or recovered directly or indirectly from the Secured
Party as a preference, fraudulent transfer or otherwise as such obligations may
be amended, supplemented, converted, extended or modified from time to
time.

       

      (d)        “UCC” means the
Uniform Commercial Code, as currently in effect in the State of New
York.

       

      2.         Grant of Security
Interest.  With the exception of Schedule C attached,
as an inducement for the Secured Party to purchase the Note and to secure the
complete and timely payment, performance and discharge in full, as the case may
be, of all of the Obligations, the Company hereby, unconditionally and
irrevocably, pledges, grants and hypothecates to the Secured Party, a continuing
security interest in, a continuing first lien upon, an unqualified right to
possession and disposition of and a right of set-off against, in each case to
the fullest extent permitted by law, all of the Company’s right, title and
interest of whatsoever kind and nature in and to the Collateral (the “Security
Interest”).

       

      3.         Representations, Warranties,
Covenants and Agreements of the Company.  The Company
represents and warrants to, and covenants and agrees with, the Secured Party as
follows:

       

      (a)        The
Company has the requisite corporate power and authority to enter into this
Agreement and otherwise to carry out its obligations thereunder.  The
execution, delivery and performance by the Company of this Agreement and the
filings contemplated therein have been duly authorized by all necessary action
on the part of the Company and no further action is required by the
Company.  This Agreement constitutes a legal, valid and binding
obligation of the Company enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditor’s rights
generally.

       

      (b)        The
Company represents and warrants that it has no place of business or offices
where its respective books of account and records are kept (other than
temporarily at the offices of its attorneys or accountants) or places where
Collateral is stored or located, except as set forth on Schedule A attached
hereto;

       

      (c)        The
Company is the sole owner of the Collateral (except for non-exclusive licenses
granted by the Company in the ordinary course of business), free and clear of
any liens, security interests, encumbrances, rights or claims, and is fully
authorized to grant the Security Interest in and to pledge the
Collateral.  There is not on file in any governmental or regulatory
authority, agency or recording office an effective financing statement, security
agreement, license or transfer or any notice of any of the foregoing (other than
those that have been filed in favor of the Secured Party pursuant to this
Agreement) covering or affecting any of the  Collateral.  So
long as this Agreement shall be in effect, the Company shall not execute and
shall not knowingly permit to be on file in any such office or agency any such
financing statement or other document or instrument (except to the extent filed
or recorded in favor of the Secured Party pursuant to the terms of this
Agreement).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (d)        No
part of the Collateral has been judged invalid or unenforceable.  No
written claim has been received that any Collateral or the Company’s use of any
Collateral violates the rights of any third party. There has been no adverse
decision to the Company’s claim of ownership rights in or exclusive rights to
use the Collateral in any jurisdiction or to the Company’s right to keep and
maintain such Collateral in full force and effect, and there is no proceeding
involving said rights pending or, to the best knowledge of the Company,
threatened before any court, judicial body, administrative or regulatory agency,
arbitrator or other governmental authority.

       

      (e)        The
Company shall at all times maintain its books of account and records relating to
the Collateral at its principal place of business and its Collateral at the
locations set forth on Schedule A attached
hereto and may not relocate such books of account and records or tangible
Collateral unless it delivers to the Secured Party at least 30 days prior to
such relocation (i) written notice of such relocation and the new location
thereof (which must be within the United States) and (ii) evidence that
appropriate financing statements and other necessary documents have been filed
and recorded and other steps have been taken to perfect the Security Interest to
create in favor of the Secured Party valid, perfected and continuing first
priority liens in the Collateral.

       

      (f)    
    This Agreement creates in favor of the Secured Party a
valid security interest in the Collateral securing the payment and performance
of the Obligations and, upon making the filings described in the immediately
following sentence, a perfected first priority security interest in such
Collateral.  Except for the filing of financing statements on Form-1
under the UCC with the jurisdictions indicated on Schedule B, attached
hereto, no authorization or approval of or filing with or notice to any
governmental authority or regulatory body is required either for the grant by
the Company of, or the effectiveness of, the Security Interest granted hereby or
for the execution, delivery and performance of this Agreement by the Company or
 for the perfection of or exercise by the Secured Party of its rights and
remedies hereunder.

       

      (g)        On
the date of execution of this Agreement, the Company will deliver to the Secured
Party one or more executed UCC financing statements on Form-1 with respect to
the Security Interest for filing with  the jurisdictions indicated on
Schedule B,
attached hereto and in such other jurisdictions as may be requested by the
Secured Party.

       

      (h)        The
execution, delivery and performance of this Agreement does not conflict with or
cause a breach or default, or an event that with or without the passage of time
or notice, shall constitute a breach or default, under any agreement to which
the Company is a party or by which the Company is bound.  No consent
(including, without limitation, from stock holders or creditors of the Company)
is required for the Company to enter into and perform its obligations
hereunder.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (i)         With
the exception of Schedule C attached,
the Company shall at all times maintain the liens and Security Interest provided
for hereunder as valid and perfected first priority liens and security interests
in the Collateral in favor of the Secured Party until this Agreement and the
Security Interest hereunder shall terminate pursuant to Section
11.  The Company hereby agrees to defend the same against any and all
persons.  The Company shall safeguard and protect all Collateral for
the account of the Secured Party.  At the request of the Secured
Party, the Company will sign and deliver to the Secured Party at any time or
from time to time one or more financing statements pursuant to the UCC (or any
other applicable statute) in form reasonably satisfactory to the Secured Party
and will pay the cost of filing the same in all public offices wherever filing
is, or is deemed by the Secured Party to be, necessary or desirable to effect
the rights and obligations provided for herein. Without limiting the generality
of the foregoing, the Company shall pay all fees, taxes and other amounts
necessary to maintain the Collateral and the Security Interest hereunder, and
the Company shall obtain and furnish to the Secured Party from time to time,
upon demand, such releases and/or subordinations of claims and liens which may
be required to maintain the priority of the Security Interest
hereunder.

       

      (j)         The
Company will not transfer, pledge, hypothecate, encumber, license (except for
non-exclusive licenses granted by the Company or any inventory or other
collateral purchased or sold in the ordinary course of business), sell or
otherwise dispose of any of the Collateral without the prior written consent of
the Secured Party.

       

      (k)        The
Company shall keep and preserve its Equipment, Inventory and other tangible
Collateral in good condition, repair and order and shall not operate or locate
any such Collateral (or cause to be operated or located) in any area excluded
from insurance coverage.

       

      (l)         With
the exception of inventory purchased for the purposes of normal business
activities, the Company shall, within ten (10) days of obtaining knowledge
thereof, advise the Secured Party promptly, in sufficient detail, of any
substantial change in the Collateral, and of the occurrence of any event which
would have a material adverse effect on the value of the Collateral or on the
Secured Party’s security interest therein.

       

      (m)       The
Company shall promptly execute and deliver to the Secured Party such further
deeds, mortgages, assignments, security agreements, financing statements or
other instruments, documents, certificates and assurances and take such further
action as the Secured Party may from time to time request and may in its sole
discretion deem necessary to perfect, protect or enforce its security interest
in the Collateral including, without limitation, the execution and delivery of a
separate security agreement with respect to the Company’s intellectual property
(“Intellectual
Property Security Agreement”) in which the Secured Party has been granted
a security interest hereunder, substantially in a form acceptable to the Secured
Party, which Intellectual Property Security Agreement, other than as stated
therein, shall be subject to all of the terms and conditions
hereof.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (n)        The
Company shall permit the Secured Party and its representatives and agents to
inspect the Collateral during normal business hours, and to make copies of
records pertaining to the Collateral as may be requested by the Secured Party
from time to time.

       

      (o)        The
Company will take all steps reasonably necessary to diligently pursue and seek
to preserve, enforce and collect any rights, claims, causes of action and
accounts receivable in respect of the Collateral.

       

      (p)        The
Company shall promptly notify the Secured Party in sufficient detail upon
becoming aware of any attachment, garnishment, execution or other legal process
levied against any Collateral and of any other information received by the
Company that may materially affect the value of the Collateral, the Security
Interest or the rights and remedies of the Secured Party hereunder.

       

      (q)        All
information heretofore, herein or hereafter supplied to the Secured Party by or
on behalf of the Company with respect to the Collateral is accurate and complete
in all material respects as of the date furnished.

       

      (r)        Schedule A attached
hereto contains a list of all of the subsidiaries of Company.

       

      4.         Defaults.  The
following events shall be “Events of
Default”:

       

      (a)        The
occurrence of an Event of Default (as defined in the Note) under the
Note;

       

      (b)        Any
representation or warranty of the Company in this Agreement or in the
Intellectual Property Security Agreement shall prove to have been incorrect in
any material respect when made; and

       

      (c)        The
failure by the Company to observe or perform any of its obligations hereunder or
in the Intellectual Property Security Agreement for twenty (20) business days
after receipt by the Company of notice of such failure from the Secured
Party.

       

      5.         Duty To Hold In
Trust.  Upon the occurrence of any Event of Default and at any
time thereafter, the Company shall, upon receipt by it of any revenue, income or
other sums subject to the Security Interest, whether payable pursuant to the
Note or otherwise, or of any check, draft, notes, trade acceptance or other
instrument evidencing an obligation to pay any such sum, hold the same in trust
for the Secured Party and shall forthwith endorse and transfer any such sums or
instruments, or both, to the Secured Party for application to the satisfaction
of the Obligations.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6.         Rights and Remedies Upon
Default.  Upon occurrence of any Event of Default and at any
time thereafter, the Secured Party shall have the right to exercise all of the
remedies conferred hereunder and under the Note, and the Secured Party shall
have all the rights and remedies of a secured party under the UCC and/or any
other applicable law (including the Uniform Commercial Code of any jurisdiction
in which any Collateral is then located).  Without limitation, the
Secured Party shall have the following rights and powers:

       

      (a)        The
Secured Party shall have the right to take possession of the Collateral and, for
that purpose, enter, with the aid and assistance of any person, any premises
where the Collateral, or any part thereof, is or may be placed and remove the
same, and the Company; if capable, shall reasonably assist in the assembly of
the Collateral and make it available to the Secured Party at places which the
Secured Party shall reasonably select, whether at the Company’s premises or
elsewhere, and make available to the Secured Party, all of the Company’s
respective premises and facilities for the purpose of the Secured Party taking
possession of, removing or putting the Collateral in saleable or disposable
form.

       

      (b)        The
Secured Party shall have the right to operate the business of the Company using
the Collateral and shall have the right to assign, sell, lease or otherwise
dispose of and deliver all or any part of the Collateral, at public or private
sale or otherwise, either with or without special conditions or stipulations,
for cash or on credit or for future delivery, in such parcel or parcels and at
such time or times and at such place or places, and upon such terms and
conditions as the Secured Party may deem commercially reasonable, all without
(except as shall be required by applicable statute and cannot be waived)
advertisement or demand upon or notice to the Company or right of redemption of
the Company, which are expressly waived upon determination of Default by any
competent court.  Upon each such sale, lease, assignment or other
transfer of Collateral, the Secured Party may, unless prohibited by applicable
law which cannot be waived, purchase all or any part of the Collateral being
sold, free from and discharged of all trusts, claims, right of redemption and
equities of the Company, which are hereby waived and released.

       

      7.          Applications of
Proceeds.  The proceeds of any such sale, lease or other
disposition of the Collateral hereunder shall be applied first, to the expenses
of retaking, holding, storing, processing and preparing for sale, selling, and
the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable
attorneys’ fees and expenses incurred by the Secured Party in enforcing its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral, and then to satisfaction of the Obligations, and to the payment of
any other amounts required by applicable law, after which the Secured Party
shall pay to the Company any surplus proceeds.  If, upon the sale,
license or other disposition of the Collateral, the proceeds thereof are
insufficient to pay all amounts to which the Secured Party is legally entitled,
the Company will be liable for the deficiency, together with interest thereon,
at the rate of 15% per annum (the “Default Rate”), and
the reasonable fees of any attorneys employed by the Secured Party to collect
such deficiency.

       

      8.          Costs and
Expenses.   The Company agrees to pay all out-of-pocket
fees, costs and expenses incurred in connection with any filing required
hereunder, including without limitation, any financing statements, continuation
statements, partial releases and/or termination statements related
thereto.  The Company shall also pay all other claims and charges
which in the reasonable opinion of a competent court  might prejudice,
imperil or otherwise affect the Collateral or the Security Interest
therein.  The Company will also, upon demand, pay to the Secured Party
the amount of any and all reasonable expenses, including the reasonable fees of
any experts and agents, which the Secured Party may incur in connection with
 the enforcement of this Agreement,  the custody or preservation of,
or the sale of, collection from, or other realization upon, any of the
Collateral, or  the exercise or enforcement of any of the rights of the
Secured Party under the Note.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      9.         Responsibility for
Collateral.  The Company assumes all liabilities and
responsibility in connection with all Collateral, and the obligations of the
Company hereunder or under the Note shall in no way be affected or diminished by
reason of the loss, destruction, damage or theft of any of the Collateral or its
unavailability for any reason.

       

      10.       Security Interest
Absolute.  All rights of the Secured Party and all Obligations
of the Company hereunder, shall be absolute and unconditional. irrespective of:
 any change in the time, manner or place of payment or performance of, or
in any other term of, all or any of the Obligations, or any other amendment or
waiver of or any consent to any departure from the specific Note this Security
Agreement is attached to;   any exchange, release or nonperfection of any
of the Collateral, or any release or amendment or waiver of or consent to
departure from any other collateral for, or any guaranty, or any other security,
for all or any of the Obligations;  any action by the Secured Party to
obtain, adjust, settle and cancel any insurance claims or matters made or
arising in connection with the Collateral.

       

      11.       Term of
Agreement.  This Agreement and the Security Interest shall
terminate on the date on which all payments under the Note have been made in
full and all Obligations under the Note have been paid or
discharged.  Upon such termination, the Secured Party, at the request
and at the expense of the Company, will join in executing any termination
statement with respect to any financing statement executed and filed pursuant to
this Agreement.

       

      12.       Power of Attorney in the
Event of Default; Further Assurances.

       

      (a)        In
the event of Default of the Note this Security Agreement is attached to as
determined by a competent court of jurisdiction, the Company authorizes the
Secured Party, and does hereby make, constitute and appoint it, and its
respective officers, agents, successors or assigns with full power of
substitution, as the Company’s true and lawful attorney-in-fact, with power, in
its own name or in the name of the Company, to, after the occurrence and during
the continuance of an Event of Default,  endorse any note, checks, drafts,
money orders, or other instruments of payment (including payments payable under
or in respect of any policy of insurance) in respect of the Collateral that may
come into possession of the Secured Party;  to sign and endorse any UCC
financing statement or any invoice, freight or express bill, bill of lading,
storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with accounts, and other documents
relating to the Collateral;  to pay or discharge taxes, liens, security
interests or other encumbrances at any time levied or placed on or threatened
against the Collateral;  to demand, collect, receipt for, compromise,
settle and sue for monies due in respect of the Collateral; and  generally,
to do, at the option of the Secured Party, and at the Company’s expense, at any
time, or from time to time, all acts and things which the Secured Party deems
necessary to protect, preserve and realize upon the Collateral and the Security
Interest granted therein in order to effect the intent of this Agreement, the
Note, all as fully and effectually as the Company might or could do; and the
Company hereby ratifies all that said attorney shall lawfully do or cause to be
done by virtue hereof.  This power of attorney is coupled with an
interest and shall be irrevocable for the term of this Agreement and thereafter
as long as any of the Obligations shall be outstanding.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b)        On
a continuing basis, the Company will make, execute, acknowledge, deliver, file
and record, as the case may be, in the proper filing and recording places in any
jurisdiction, including, without limitation, the jurisdictions indicated on
Schedule B,
attached hereto, all such instruments, and take all such action as may
reasonably be deemed necessary or advisable, or as reasonably requested by the
Secured Party, to perfect the Security Interest granted hereunder and otherwise
to carry out the intent and purposes of this Agreement, or for assuring and
confirming to the Secured Party the grant or perfection of a security interest
in all the Collateral.

       

      (c)        The
Company hereby appoints the Secured Party as the Company’s attorney-in-fact with
regard to this Agreement and the corresponding Note, with full authority in the
place and stead of the Company and in the name of the Company, from time to time
in the Secured Party’s discretion, to take any action and to execute any
instrument which the Secured Party may deem necessary or advisable to accomplish
the purposes of this Agreement, including the filing of one or more financing or
continuation statements and amendments thereto, relative to any of the
Collateral without the signature, but with the prior knowledge of the Company
where permitted by law.

       

      13.       Notices.  All
notices, requests, demands and other communications hereunder shall be in
writing, with copies to all the other parties hereto, and shall be deemed to
have been duly given when  if delivered by hand, upon receipt,  if
sent by facsimile, upon receipt of proof of sending thereof,  if sent by
nationally recognized overnight delivery service (receipt requested), the next
business day or  if mailed by first-class registered or certified mail,
return receipt requested, postage prepaid, four days after posting in the U.S.
mails, in each case if delivered to the following addresses:

       

      
        	
                If
      to the Company:

              	
                AmeriResource
      Technologies, Inc.

              
	 
      	
                3440
      E. Russell Road, Suite 217

              
	 
      	
                Las
      Vegas, NV 89120

              
	 
      	
                Attention:

              	
                Delmar
      Janovec

              
	 
      	
                Telephone:

              	
                (702)
      214-4249

              
	 
      	
                Facsimile:

              	
                (702)
      214-4221

              
	 
      	 
      	 
      
	 
      	
                RoboServer
      Systems Corp,

              
	 
      	
                BizAuctions,
      Inc.,

              
	 
      	
                AuctionWagon,

              
	 
      	
                ARRT
      Receivables, Inc.

              
	 
      	
                West
      Texas Real Estate and Resources, Inc.,

              
	 
      	
                Self-Serve
      Technologies, Inc.,

              
	 
      	
                Net2Auction
      Corporation,

              
	 
      	
                Business
      Auctions, Inc.,

              
	 
      	
                BizAuctions,
      Corp

              
	 
      	
                3440
      E. Russell Road, Suite 217

              
	 
      	
                Las
      Vegas, NV 89120

              
	 
      	
                Attention:
      Delmar Janovec

              
	 
      	
                Telephone:
      (702) 214-4249

              
	 
      	
                Facsimile:  (702)
      214-4221

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      
        	
                With
      copies to:

              	 
      	
                Gregg
      Jaclin

              
	 
      	 
      	
                Anslow
      & Jaclin LLP

              
	 
      	 
      	
                195
      Route  9 South , Ste. 204

              
	 
      	 
      	
                Attention:
      Gregg Jaclin

              
	 
      	 
      	
                Manalapan,
      NJ  07726

              
	 
      	 
      	
                Telephone:
      (732) 409-1212

              
	 
      	 
      	
                Facsimile:  (732)
      577-1188

              

      

      

       

      

       

      

      
        	
                If
      to the Secured Party:

              	
                AJW
      Partners, LLC

              
	 
      	
                AJW
      Partners II, LLC

              
	 
      	
                AJW
      Master Fund, Ltd.

              
	 
      	
                AJW
      Master Fund II, Ltd.

              
	 
      	
                New
      Millennium Capital Partners III, LLC

              
	 
      	
                1044
      Northern Boulevard

              
	 
      	
                Suite
      302

              
	 
      	
                Roslyn,
      New York 11576

              
	 
      	
                Attention:  Corey
      Ribotsky

              
	 
      	
                Facsimile:  516-739-7115

              
	 
      	 
      
	
                With
      copies to:

              	
                Ballard
      Spahr Andrews & Ingersoll, LLP

              
	 
      	
                1735
      Market Street, 51st
      Floor

              
	 
      	
                Philadelphia,
      Pennsylvania  19103

              
	 
      	
                Attention:  Gerald
      J. Guarcini, Esquire

              
	 
      	
                Facsimile:  215-864-8999

              

      

      

       

      14.       Other
Security.  To the extent that the Obligations are now or
hereafter secured by property other than the Collateral or by the guarantee,
endorsement or property of any other person, firm, corporation or other entity,
then the Secured Party shall have the right, in its sole discretion, to pursue,
relinquish, subordinate, modify or take any other action with respect thereto,
without in any way modifying or affecting any of the Secured Party’s rights and
remedies hereunder.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      15.        Miscellaneous.

       

      (a)        No
course of dealing between the Company and the Secured Party, nor any failure to
exercise, nor any delay in exercising, on the part of the Secured Party, any
right, power or privilege hereunder or under the Note shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or thereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege.

       

      (b)        All
of the rights and remedies of the Secured Party with respect to the Collateral,
whether established hereby or by the Note or by any other agreements,
instruments or documents or by law shall be cumulative and may be exercised
singly or concurrently.

       

      (c)        This
Agreement constitutes the entire agreement of the parties with respect to the
subject matter hereof and is intended to supersede all prior negotiations,
understandings and agreements with respect thereto.  Except as
specifically set forth in this Agreement, no provision of this Agreement may be
modified or amended except by a written agreement specifically referring to this
Agreement and signed by the parties hereto.

       

      (d)        In
the event that any provision of this Agreement is held to be invalid, prohibited
or unenforceable in any jurisdiction for any reason, unless such provision is
narrowed by judicial construction, this Agreement shall, as to such
jurisdiction, be construed as if such invalid, prohibited or unenforceable
provision had been more narrowly drawn so as not to be invalid, prohibited or
unenforceable.  If, notwithstanding the foregoing, any provision of
this Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of such
provision or the other provisions of this Agreement in any other
jurisdiction.

       

      (e)        No
waiver of any breach or default or any right under this Agreement shall be
considered valid unless in writing and signed by the party giving such waiver,
and no such waiver shall be deemed a waiver of any subsequent breach or default
or right, whether of the same or similar nature or otherwise.

       

      (f)        This
Agreement shall be binding upon and inure to the benefit of each party hereto
and its successors and assigns.

       

      (g)        Each
party shall take such further action and execute and deliver such further
documents as may be necessary or appropriate in order to carry out the
provisions and purposes of this Agreement.

       

      (h)        This
Agreement shall be construed in accordance with the laws of the State of New
York, except to the extent the validity, perfection or enforcement of a security
interest hereunder in respect of any particular Collateral which are governed by
a jurisdiction other than the State of New York in which case such law shall
govern.  Each of the parties hereto irrevocably submit to the
exclusive jurisdiction of any New York State or United States Federal court
sitting in Manhattan county over any action or proceeding arising out of or
relating to this Agreement, and the parties hereto hereby irrevocably agree that
all claims in respect of such action or proceeding may be heard and determined
in such New York State or Federal court.  The parties hereto agree
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.  The parties hereto further waive any
objection to venue in the State of New York and any objection to an action or
proceeding in the State of New York on the basis of forum non
conveniens.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (i)         EACH
PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL
ENCOMPASSING OF ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO
THE SUBJECT MATER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS
A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH PARTY HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND
THAT EACH PARTY WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE
DEALINGS. EACH PARTY FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS
WAIVER WITH ITS LEGAL COUNSEL AND THAT SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY
WAIVED ITS RIGHTS TO A JURY TRIAL FOLLOWING SUCH CONSULTATION.  THIS
WAIVER IS IRREVOCABLE, MEANING THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY, IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS AND SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT.  IN THE EVENT OF A LITIGATION, THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

       

      (j)         This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same Agreement.  In the event that any
signature is delivered by facsimile transmission, such signature shall create a
valid binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

       

      

       

      [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties hereto have caused this to be duly executed on the
day and year first above written.

       

      
        	 
      	
                COMPANY

              
	 
      	 
      	 
      
	 
      	
                AMERIRESOURCE
      TECHNOLOGIES, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                ROBOSERVER
      SYSTEMS CORP

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                BIZAUCTIONS,
      INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                AUCTION
      WAGON

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	
                ARRT
      Receivables, Inc

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	
                WEST
      TEXAS REAL ESTATE AND RESOURCES, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                SELF-SERVE
      TECHNOLOGIES, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	
                NET2AUCTION
      CORPORATION

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                BUSINESS
      AUCTIONS, INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              
	 
      	 
      	 
      
	 
      	
                BIZAUCTIONS,
      CORP

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                Delmar
      Janovec

              
	 
      	 
      	
                Delmar
      Janovec

              
	 
      	 
      	
                President

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	
                SECURED
      PARTY:

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                AJW
      PARTNERS, LLC

              
	 
      	
                By:

              	
                SMS
      Group, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Corey
      S. Ribotsky

              
	 
      	 
      	
                Manager

              
	 
      	 
      	 
      
	 
      	
                AJW
      PARTNERS II, LLC

              
	 
      	
                By:

              	
                SMS
      Group, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Corey
      S. Ribotsky

              
	 
      	 
      	
                Manager

              
	 
      	 
      	 
      
	 
      	
                AJW
      MASTER FUND, LTD.

              
	 
      	
                By:

              	
                First
      Street Manager II, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Corey
      S. Ribotsky

              
	 
      	 
      	
                Manager

              
	 
      	 
      	 
      
	 
      	
                AJW
      MASTER FUND II, LTD.

              
	 
      	
                By:

              	
                First
      Street Manager II, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Corey
      S. Ribotsky

              
	 
      	 
      	
                Manager

              
	 
      	 
      	 
      
	 
      	
                NEW
      MILLENNIUM CAPITAL PARTNERS III, LLC

              
	 
      	
                By:

              	
                First
      Street Manager II, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Corey
      S. Ribotsky

              
	 
      	 
      	
                Manager

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        SCHEDULE
A

      

       

       

      
        	
                 
      

              	
                1.

              	
                RoboSever
      Systems Corp.

              

      

       

       

      
        	
                 
      

              	
                2.

              	
                Self-Serve
      Technologies, Inc.

              

      

       

       

      
        	
                 
      

              	
                3.

              	
                W.
      Texas Real Estate & Resources,
Inc.

              

      

       

       

      
        	
                 
      

              	
                4.

              	
                BizAuctions,
      Inc.

              

      

       

       

      
        	
                 
      

              	
                5.

              	
                BizAuctions
      Corporation

              

      

       

       

      
        	
                 
      

              	
                6.

              	
                Business
      Auctions, Inc.

              

      

       

       

      
        	
                 
      

              	
                7.

              	
                Auction
      Wagon, Inc.

              

      

       

       

      
        	
                 
      

              	
                8.

              	
                Net2Auction
      Corporation

              

      

       

       

      
        	
                 
      

              	
                9.

              	
                ARRT
      Receivables, Inc.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        SCHEDULE
C

      

       

       

      
        ARRT
Receivables, Inc. and any and all existing contracts and bank accounts of the
Corporation.art8k120808-legal.htm

    Exhibit 10.09

    
      

      

    

    

     

    December 4, 2008

    AJW Partners, LLC

    AJW Partners II, LLC

    New Millennium Capital Partners III, LLC

    AJW Master Fund, Ltd.

    AJW Master Fund II, Ltd.

    1044 Northern Boulevard

    Suite 302

    Roslyn, New York 11576

     

    Ladies and Gentlemen:

     

    We have acted as counsel to
AmeriResource Technologies, Inc., a Delaware corporation (the "Company"), in
connection with the Securities Financing Agreement, dated as of December 1,
2008, between you and the Company (the "Agreement") and the transactions
contemplated therein.  Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings assigned to such terms in the
Agreement.  The Agreement, the Registration Rights Agreement, the Notes,
the Warrants, the Security Agreement, and the Intellectual Property Security
Agreement, the Subsidiary Guaranty are hereinafter referred to collectively as
the "Transaction Agreements."

     

    In so acting, we have
examined (i) the Transaction Agreements, (ii) the Company's Articles of
Incorporation, as in effect on the date hereof (the "Articles of
Incorporation"), and (iii) the Company's Bylaws, as in effect on the date
hereof (the "Bylaws"), and we have examined and considered such corporate
records, certificates and matters of law as we have deemed appropriate as a
basis for our opinions set forth below.

     

    Based on the foregoing and
subject to the assumptions, limitations, qualifications and exceptions stated
herein, we are of the opinion that as of the date hereof:

     

    Article
1.        The Company is duly organized,
validly existing and in good standing under the laws of their respective
jurisdictions of incorporation, have all requisite corporate power and authority
to conduct their business as described in the Company's Annual Report on Form
10-K for its fiscal year ended December 31, 2007 (the "10-K"), as amended, and
are duly qualified as a foreign corporation to do business in each
jurisdiction in which the nature of the business conducted by them makes such
qualification necessary and in which the failure to so qualify would have a
Material Adverse Effect.

     

    Article
II.        (i) The Company and Subsidiary has
the requisite corporate power and authority to enter into and perform the
Transaction Agreements, and to issue the Notes, the Warrants, the shares
issuable upon an event of default in accordance with the terms of the Notes, and
the Warrant Shares upon exercise of the Warrants in accordance with the terms of
the Warrants, (ii) the execution and delivery of the Transaction Agreements by
the Company and the 

     

    195 Route 9 South, Suite 204,
Manalapan, NJ 07726  Tel 732 409 1212  Fax 732 577 1188 
anslowlaw.com

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    consummation by it of the transactions
contemplated thereby have been duly authorized by the Company's Board of
Directors and no further consent or authorization of the Company, its Board of
Directors, or its shareholders is required, (iii) the Transaction Agreements
have been duly executed and delivered by the Company, and (iv) the Transaction
Agreements constitute valid and binding obligations of the Company enforceable
against the Company in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors' rights and remedies or by
other equitable principles of general application and subject to the limitation
that the indemnification and contribution provisions of the Registration Rights
Agreements may be unenforceable as a matter of public policy.

     

    Article
III.      The shares issuable upon an event of default
in accordance with the terms of the Notes and the Warrant Shares are duly
authorized and, upon issuance in accordance with the terms and conditions of the
Notes and the Warrants (as applicable) will be validly issued, fully paid and
non-assessable, and free from all taxes, liens and charges with respect to the
issuance thereof.  The terms and conditions of the Notes are as set forth
in the Notes and the terms and conditions of the Warrants are as set forth in
the Warrants.  A number of shares of Common Stock sufficient to meet the
Company's obligations to issue Common Stock upon full exercise of the Warrants
has been duly reserved.

     

    Article
IV.      As of the date hereof, the authorized capital
stock of the Company consists of (i) 50,000,000,000 shares of Common Stock, par
value $0.001 per share of which 4,398,674,337 shares of Common Stock are issued
and outstanding; and (ii) 10,000,000 shares of preferred stock, par value $0.001
per share.  All of such outstanding shares have been validly issued and are
fully paid and nonassessable.  With the exception of those shares listed in
the Company's December 31, 2007 Form 10-K and September 30, 2008 Form 10-Q, to
the best of our knowledge, no shares of Common Stock or preferred stock are
subject to preemptive rights or any other similar rights of the shareholders of
the Company pursuant to the Articles of Incorporation of Bylaws or by statute or
pursuant to any agreement by which the Company is bound of which we are aware,
and to our knowledge are not subject to any liens or encumbrances.  With
the exception of those shares listed in the Company's December 31, 2007 Form
10-K and September 30, 2008 Form 10-Q, to the best of our knowledge to the
Agreement, (i) there are no outstanding options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, any shares of capital stock of the
Company or any of its Subsidiaries, or arrangements by which the Company or any
of its Subsidiaries is or may become bound to issue additional shares of capital
stock of the Company or any of its Subsidiaries, and (ii) there are no
agreements or arrangements under which the Company or any of its subsidiaries is
obligated to register the sale of any of its or their securities under the 1933
Act (except the Registration Rights Agreement) and (iii) there are no
anti-dilution or price adjustment provisions contained in any security issued by
the Company (or in any agreement providing rights to security holders) that will
be triggered by the issuance of the Notes, the Warrants, the Conversion Shares
or the Warrant Shares.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    Article
V.       The Company meets the eligibility
requirements for the use of Form S-1 for the registration of the Conversion
Shares and the Warrant Shares.

     

    Article
VI.      Based upon your representations,
warranties and covenants set forth in the Agreement, the Securities may be
issued to you without registration under the 1933 Act.

     

    Article
VII.     Other than necessary approvals that have been
obtained, no authorization approval or consent of any court, governmental body,
regulatory agency, self-regulatory organization or stock exchange or market, or
the shareholders of the Company or, to our knowledge, any third party is
required to be obtained by the Company for the issuance and sale of
the Securities as contemplated by the Transaction Agreements or the
consummation of the other transactions contemplated thereby. 

     

    Article VIII.  
With the exception of items disclosed in the Company's December 31, 2007 Form
10-K and September 30, 2008 Form 10-Q, respectively, and or other SEC filings,
to our knowledge, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board or body or any governmental agency or
self-regulatory organization pending or threatened against or affecting the
Company or any of its subsidiaries, wherein an unfavorable decision, ruling or
finding would have a Material Adverse Effect or which would adversely affect the
validity or enforceability of or the authority or ability of the Company to
perform its obligations under the Transaction Agreements.

     

    Article
IX.      To the best of our knowledge, the Company is
not in violation of any term of the Articles of Incorporation or Bylaws. 
Neither the Articles of Incorporation nor the Bylaws or the Company are in
violation of the Delaware Business Corporation Act.  The execution,
delivery and performance of and compliance with the terms of the Transaction
Agreements and the issuance of the Notes and the Warrants (and the Common Stock
issuable upon conversion of the Notes and upon exercise of the Warrants), do not
violate any provision of the Articles of Incorporation or Bylaws, or to our
knowledge, any provision of any applicable federal or state law, rule or
regulation.  To our knowledge, the execution, delivery and performance of
and compliance with the Transaction Agreements and the issuance of the Notes and
the Warrants (and the Common Stock issuable upon conversion of the Notes, and
upon exercise of the Warrants) have not resulted and will not result in any
violation of, or constitute a default under (or an event which with the passage
of time or the giving of notice or both would constitute a default under), or
result in the creation of any lien, security interest or encumbrance on the
assets or properties of the Company pursuant to any contract, agreement,
instrument, judgment or decree binding upon the Company which, individually or
in the aggregate, would have a Material Adverse Effect.

     

    Article
X.       All approvals necessary for you (or any
other holder of the Notes or Warrants) to acquire the Notes and the Warrants and
the shares issuable upon an event of default in accordance with the terms of the
Notes and the Warrant Shares under the laws of the State of Delaware have been
obtained and no further approvals are required under the Delaware Business
Corporation Act in order for you (or any other holder of the Notes or the
Warrants) to engage in

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    a "business combination" with the Company
because of your or their acquisition of the Notes, the Warrants or the Warrant
Shares.

     

    Article
XI.      The provisions of the Security Agreement and
Security Guaranty are effective to create enforceable interests in favor of the
Secured Party named therein in all of the collateral described therein that is
of the type in which a security interest can be created under Article 9 of the
Uniform Commercial Code (collectively, the "Filing Collateral").  Insofar
as perfection can be accomplished only by the filing of financing statements
under the Uniform Commercial Code, upon the filing and proper indexing of the
Financial Statements, the Secured Party will have a perfected security interest
in such Filing Collateral as to which the security interest in favor of the
Secured Party has attached.

     

    These opinions are limited
to the matters expressly stated herein and are rendered solely for your benefit
and may not be quoted or relied upon for any other purpose or by an other
person, except that the opinions expressed in paragraphs (3) and (6) above may
be relied upon by and Interwest Transfer Company, as Transfer Agent.

     

    We have assumed the
genuineness of all signatures, the authenticity of all Transaction Agreements
submitted to us as originals, the conformity with originals of all Transaction
Agreements submitted to us as copies, the authenticity of certificates of public
officials and the due authorization, execution and delivery of all Transaction
Agreements (except the due authorization, execution and delivery by the Company
of the Transaction Agreements).

     

    A.    
We have assumed that each of the parties to the Transaction Agreements other
than the Company (the "Other Parties") has the legal rights, capacity and power
to enter into, enforce and perform all of its obligations under the
Transaction Agreements.  Furthermore, we have assumed the due
authorization by each of the Other Parties of all requisite action and the
due execution and delivery of the Transaction Agreements by each of all the
Other Parties, and that the Transaction Agreements are valid and binding upon
each of the Other Parties and are enforceable against each Other Party in
accordance with their terms.

     

    B.    
In the process of our review of the Form 10-K and any of the other reports filed
by the Company pursuant to Sections 13 or 15(d) of the Securities Exchange Act
of 1934, as amended, since the date of the filing of the Form 10-K, although we
have not engaged in any independent investigation, and do not assume any
responsibility for the accuracy or completeness of the information contained
therein, nothing has come to our attention that would lead us to believe
that any of such reports contains any untrue statement of a material fact
or omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of circumstances under which they were made,
not misleading, as of its filing date.

     

    Our examination of law
relevant to the matters covered by this opinion is limited to the Delaware
Business Corporation Act and the federal law of the United States, and we
express no

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    opinion
as to the effect on the matters covered by this opinion or the laws of any other
jurisdiction.  In furnishing the opinion regarding the valid existence and
good standing of the Company, we have relied solely upon a good standing
certificate issued by the Secretary of State of Delaware on November 24,
2008.

     

    This
opinion is given as of the date hereof and we assume no obligation, to update or
supplement this opinion to reflect any facts or circumstances which may
hereafter come to our attention or any changes in laws which may hereafter
occur.

     

    Sincerely,

     

    ANSLOW
& JACLIN, LLP

     

    By:
/s/ Gregg E. Jaclin

            
Greg E. Jaclin

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