Document:

exh10-4_4130495.htm

EXHIBIT 10.4

 

EXECUTION VERSION

 

 

AMENDED AND RESTATED SECURITY AGREEMENT

 

THIS AMENDED AND RESTATED SECURITY AGREEMENT (this “Security Agreement”), dated as of April 29, 2015, is made by and among CINEDIGM CORP., a Delaware corporation (the “Borrower”), the other Loan Parties signatory hereto, certain Subsidiaries of the Borrower that may become party hereto from time to time pursuant to Section 10.13, and ONEWEST BANK FSB, as Collateral Agent for the Secured Parties (in such capacity, the “Collateral Agent”).

 

RECITALS

 

A.   The Borrower, the Administrative Agent, Société Générale, as Collateral Agent and certain Lenders entered into that certain Credit Agreement, dated as of October 17, 2013 (the “Original Credit Agreement”), as amended and restated pursuant to that certain Amended and Restated Credit Agreement, dated as of January 8, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Existing Credit Agreement”).

 

B.   The Borrower has requested that the Existing Credit Agreement be amended and restated in its entirety and the Lenders and the Administrative Agent are willing to amend and restate the Existing Credit Agreement (as so amended and restated, the “Second Amended and Restated Credit Agreement”) pursuant to the terms and subject to the conditions set forth in the Second Amended and Restated Credit Agreement.

 

C.   The Borrower, the Collateral Agent, and the other Loan Parties signatory thereto are parties to the Security Agreement dated as of October 17, 2013 (the “Existing Security Agreement”).

 

D.   In connection with the entry into the Second Amended and Restated Credit Agreement, the parties hereto wish to amend and restate in its entirety the Existing Security Agreement with this Agreement.

 

E.   The Lenders’ obligations to amend and restate the Existing Credit Agreement and to make the Revolving Loans thereunder are subject, among other conditions, to receipt by the Collateral Agent of this Security Agreement, duly executed by the Grantors, which Security Agreement confirms and grants the Liens hereinafter provided.

 

F.   Each Subsidiary Grantor expects to realize direct and indirect benefits as the result of the amendment and restatement of the Existing Credit Agreement and the availability of the aforementioned senior secured credit facilities to the Borrower and as the result of financial or business support which will be provided to such Subsidiary by the Borrower.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, each of the Grantors hereby agree with the Collateral Agent as follows:

 

  

  

  

 

SECTION 1. Definitions and Interpretation.  When used in this Security Agreement, the following terms shall have the following respective meanings:

 

“Account” means any “account,” as such term is defined in Section 9-102(a)(2) of the UCC and, in any event, shall include all Receivables, accounts receivable, book debts and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments) now owned or hereafter received or acquired by or belonging or owing to any Grantor (including under any trade name, style or division thereof) whether arising out of goods sold or services rendered by such Grantor or from any other transaction, whether or not the same involves the sale of goods or services by such Grantor (including any such obligation which may be characterized as an account or contract right under the UCC) and all of any Grantor’s rights in, to and under all purchase orders or receipts now owned or hereafter acquired by it for goods or services, and all of any Grantor’s rights to any goods represented by any of the foregoing (including unpaid seller’s rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods), and all monies due or to become due to any Grantor under all purchase orders and contracts for the sale of goods or the performance of services or both by any Grantor (whether or not yet earned by performance on the part of such Grantor or in connection with any other transaction), now in existence or hereafter occurring, including the right to receive the proceeds of said purchase orders and contracts, and all collateral security and guarantees of any kind given by any Person with respect to any of the foregoing.

 

“Account Debtor” means any “account debtor,” as such term is defined in Section 9-102(a)(3) of the UCC.

 

“Act” has the meaning specified in Section 7(c) of this Security Agreement.

 

“Administrative Agent” has the meaning specified in the recitals hereto.

 

“Bankruptcy Code” means Title 11 of the United States Code.

 

“Borrower” has the meaning specified in the introductory paragraph hereto.

 

“Chattel Paper” means any “chattel paper,” as such term is defined in Section 9-102(a)(11) of the UCC, including electronic chattel paper and tangible chattel paper.

 

“Collateral” has the meaning specified in Section 2.

 

“Collateral Agent” has the meaning specified in the introductory paragraph hereto.

 

“Commercial Tort Claim” means any “commercial tort claim,” as such term is defined in Section 9-102(a)(13) of the UCC.

 

“Condemnation and Insurance Proceeds” has the meaning assigned to such term in Section 5.17 of this Security Agreement.

 

“Contracts” means all contracts, undertakings, franchise agreements or other agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) in or under which a

 

  

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Grantor may now or hereafter have any right, title or interest, including any Distribution Agreement, OLC Agreement (or any other distribution agreement, license agreement, agreement to receive royalties or similar agreement), and with respect to an Account, any agreement relating to the terms of payment or the terms of performance thereof.

 

“Copyright Office” means the United States Copyright Office.

 

“Copyrights” has the meaning assigned to such term in Schedule VI hereto.

 

“Deposit Account” means any “deposit account” as such term is defined in Section 9-102(a)(29) of the UCC (or any other then applicable provision of the UCC), including any demand, time, savings passbook or like account, now or hereafter maintained by or for the benefit of a Grantor, or in which a Grantor now holds or hereafter acquires any interest, with a bank, savings and loan association, credit union or like organization (including any Secured Party), the Cinedigm Lockbox Accounts, the Operating Account and the Concentration Account, and all funds and amounts therein, whether or not restricted or designated for a particular purpose.

 

“Documents” means any “documents,” as such term is defined in Section 9-102(a)(30) of the UCC.

 

“Electronic Chattel Paper” means any “electronic chattel paper” as such term is defined in Section 9-102(a)(31) of the UCC.

 

“Equity Interests” means, collectively, the notes, the stock, partnership interests, and limited liability company interests of any Person, all certificates or other instruments representing any of the foregoing, all security entitlements in respect of any of the foregoing, all dividends, interest, cash, warrants, rights, instruments and other property or Proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing.

 

“Existing Credit Agreement” has the meaning specified in the recitals hereto.

 

“Existing Security Agreement” has the meaning specified in the recitals hereto.

 

“General Intangible” means any “general intangible,” as such term is defined in Section 9-102(a)(42) of the UCC (or any other then applicable provision of the UCC), and, in any event, shall include all right, title and interest which a Grantor may now or hereafter have in or under any Contract, all customer lists, all proprietary or confidential information, inventions (whether or not patented or patentable), interests in partnerships, joint ventures and other business associations, permits, books and records, goodwill, claims in or under insurance policies, including unearned premiums, Payment Intangibles, Software, uncertificated securities, cash and other forms of money or currency, rights to receive tax refunds and other payments and rights of indemnification.

 

“Grantor” means the Borrower, each other Loan Party and any other Subsidiary of the Borrower that becomes party to this Security Agreement pursuant to Section 10.13.

 

  

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“Instruments” means any “instrument,” as such term is defined in Section 9-102(a)(47) of the UCC (or any other then applicable provision of the UCC), including all notes, certificated securities and all other evidences of Indebtedness, other than instruments that constitute, or are a part of a group of writings that constitute, Chattel Paper.

 

“Inventory” means any “inventory,” as such term is defined in Section 9-102(a)(48) of the UCC (or any other then applicable provision of the UCC), wherever located, now or hereafter owned or acquired by a Grantor or in which a Grantor now holds or hereafter acquires any interest, including all Inventory, and, in any event, shall include all inventory, goods and other personal property which are held by or on behalf of a Grantor for sale or lease or are furnished or are to be furnished under a contract of service or which constitute raw materials, work in process or materials used or consumed or to be used or consumed in a Grantor’s business, or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods whether or not such inventory is listed on any schedules, assignments or reports furnished to any Secured Party from time to time and whether or not the same is in transit or in the constructive, actual or exclusive occupancy or possession of a Grantor or is held by a Grantor or by others for a Grantor’s account, including all goods covered by purchase orders and contracts with suppliers and all goods billed and held by suppliers and all inventory of a Grantor which may be located on the premises of a Grantor or of any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents or other Persons.

 

“Investment Property” means any “investment property,” as such term is defined in Section 9-102(a)(49) of the UCC and shall include all certificated securities, uncertificated securities, security entitlements, Securities Accounts, commodity contracts and commodity accounts as each such term is defined in the UCC.

 

“Letter-of-Credit Right” means any “letter-of-credit right,” as such term is defined in Section 9-102(a)(51) of the UCC.

 

“Patent and Trademark Office” means the United States Patent and Trademark Office or any successor office or agency thereto.

 

“Patent Applications” means all applications made by, or on behalf of, a Grantor to the Patent and Trademark Office or to any similar office or agency of any foreign country or political subdivision thereof for the registration of Patents.

 

“Patent Registrations” means all Patents registered with the Patent and Trademark Office or with any similar office or agency of any foreign country or political subdivision thereof and all Patent Applications.

 

“Patents” has the meaning assigned to such term in Schedule VI hereto.

 

“Payment Intangible” means “payment intangible,” as such term is defined in Section 9-102(a)(61) of the UCC.

 

“Pledged Contracts” has the meaning specified in Section 2(f).

 

“Pledged Instruments” has the meaning specified in Section 2(g).

 

  

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“Proceeds” means “proceeds,” as such term is defined in Section 9-102(a)(64) of the UCC, and, in any event, shall include (a) any and all Accounts, Chattel Paper, Instruments, cash or other forms of money or currency or other proceeds payable to a Grantor from time to time in respect of the Collateral, (b) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to a Grantor from time to time with respect to any of the Collateral, (c) any and all payments (in any form whatsoever) made or due and payable to a Grantor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any Person acting under color of governmental authority), (d) all certificates, dividends, cash, Instruments and other property received or distributed in respect of or in exchange for any Investment Property, and (e) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

 

“Second Amended and Restated Credit Agreement” has the meaning specified in the recitals hereto.

 

“Secured Obligations” means (a) all amounts, obligations, liabilities, covenants and duties of every type and description owing by any Loan Party to any Agent, any Lender, any Issuing Bank, any Secured Party, any other Indemnitee, any participant or any SPV, in each case arising out of, under, or in connection with, any Loan Document, whether direct or indirect (regardless of whether acquired by assignment), absolute or contingent, due or to become due, whether liquidated or not, now existing or hereafter arising and however acquired, and whether or not evidenced by any instrument or for the payment of money, including, without duplication, (i) if such Loan Party is the Borrower, all Revolving Loans, amounts due in respect of Letters of Credit and unreimbursed participations in LC Disbursements, (ii) all interest, whether or not accruing after the filing of any petition in bankruptcy or after the commencement of any insolvency, reorganization or similar proceeding, and whether or not a claim for post-filing or post-petition interest is allowed in any such proceeding, and (iii) all other fees, expenses (including fees, charges and disbursement of counsel), interest, commissions, charges, costs, disbursements, indemnities and reimbursement of amounts paid and other sums chargeable to such Loan Party under any Loan Document and (b) all Secured Hedging Obligations owing to a Secured Hedging Counterparty.

 

“Secured Party” means, at any time, any or all of the Lenders, the Issuing Banks, the Agents, the Secured Hedging Counterparties, each other Indemnitee and any other holder at the time of any Secured Obligation.

 

“Securities Account” means “securities account,” as such term is defined in Section 8-501(a) of the UCC (or any other then applicable provision of the UCC).

 

“Software” means “software,” as such term is defined in Section 9-102(a)(75) of the UCC.

 

“Subsidiary Grantor” means any Loan Party other than the Borrower, as well as any Subsidiary of the Borrower that becomes party to this Security Agreement pursuant to Section 10.13.

 

  

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“Supporting Obligation” means “supporting obligation,” as such term is defined in Section 9-102(a)(77) of the UCC.

 

“Trade Secrets” has the meaning given to such term in Schedule VI hereto.

 

“Trademarks” has the meaning given to such term in Schedule VI hereto.

 

“UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York; provided, however, in the event that, by reason of mandatory provisions of any Requirement of Law, any or all of the attachment, perfection or priority of the Collateral Agent’s security interest in any collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions.

 

Capitalized terms not otherwise defined herein shall have the respective meanings given to those terms in the Second Amended and Restated Credit Agreement and, in furtherance of the foregoing, all terms defined in the UCC shall have the respective meanings given to those terms in the UCC.  The rules of interpretation set forth in Article I of the Second Amended and Restated Credit Agreement shall apply to this Security Agreement and are hereby incorporated mutatis mutandis.  References in this Security Agreement to “Sections” are to sections herein unless otherwise indicated. 

 

SECTION 2. Grant of Security Interest.  As security for the Secured Obligations of such Grantor (and not of any other Grantor), and in order to induce (x) the Collateral Agent, the Administrative Agent and the Lenders to amend and restated the Existing Credit Agreement and to make the Revolving Loans and Letters of Credit available to and for the benefit of the Borrower upon the terms and subject to the conditions of the Loan Documents and (y) the Secured Hedging Counterparties to enter into Secured Hedging Documents with the Borrower from time to time, each Grantor hereby confirm the pledge and grant of the security interest of the Existing Security Agreement in, and hereby grants, assigns, conveys, mortgages, pledges, hypothecates and transfers to the Collateral Agent on behalf of the Secured Parties a security interest in and to all of such Grantor’s right, title and interest in, to and under each of the following, whether now owned or hereafter acquired or in which such Grantor now holds or hereafter acquires any interest (all of which being hereinafter collectively called the “Collateral”):

 

(a)   all Accounts;

 

(b)   all Chattel Paper;

 

(c)   (i) all Deposit Accounts and all cash, cash equivalents, financial assets, negotiable instruments (other than negotiable instruments evidencing intercompany indebtedness), and other evidences of payments, and other funds on deposit therein or credited thereto and (ii) all Securities Accounts (including any and all Investment Property held therein or credited thereto);

 

  

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(d)   all Inventory, Distributed and Licensed Content, and all Owned Library Content;

 

(e)   all intellectual property described in Schedule VI;

 

(f)   all Distribution Agreements and to the extent relating to, evidencing or governing any of the items referred to in the preceding clauses (a) through (e), all Contracts (the “Pledged Contracts”)

 

(g)   solely to the extent relating to, evidencing or governing any of the items referred to in the preceding clauses (a) through (f) , all Documents, Instruments (“Pledged Instruments”), Investment Property (but not Equity Interests) and Commercial Tort Claims;

 

(h)   all books and records, databases, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto, and any General Intangibles (including Payment Intangibles), at any time evidencing or relating to any of the foregoing, which contain any information relating to any of the items referred to in the preceding clauses (a) through (g));

 

(i)   to the extent relating to any of the items referred to in the preceding clauses (a) through (h), all Supporting Obligations and Letter-of-Credit Rights; and

 

(j)   to the extent no otherwise included, all collateral and guarantees with respect to any of the foregoing, and all Proceeds (including proceeds of business insurance and other insurance and claims against third parties) and products of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits and products of each of the foregoing.

 

Notwithstanding the foregoing, “Collateral” shall not include (w) any contract right or General Intangible (i) if after giving effect to the application of Sections 9-406 through 9-409 of the UCC, the creation of a lien and security in such contract right or General Intangible would constitute a material breach of the terms of such contract right or General Intangible, or would permit any party to any agreement, instrument or other document comprising such contract right or General Intangible, or the issuer of any license, permit or authorization comprising such contract right or General Intangible, to terminate such agreement, instrument or other document or license, permit or authorization or (ii) that would otherwise violate any applicable Requirement of Law of any Governmental Authority pursuant to any effective term or provision of such agreement, instrument, document, license, permit or authorization, (x) any property of an Excluded Subsidiary, (y) any Equity Interests or (z) any claim against Gaiam, Inc. (or any of its affiliates) or any settlement thereof.

 

SECTION 3. Rights of the Collateral Agent; Collection of Accounts.

 

(a)   Notwithstanding anything contained in this Security Agreement to the contrary, each Grantor expressly agrees that such Grantor shall (i) not default under any of its Pledged Contracts beyond any applicable cure or grace period contained therein, (ii) observe and perform all the conditions and obligations to be observed and performed by it thereunder and (iii) perform all of its duties and obligations thereunder, all in accordance with and pursuant to

 

  

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the terms and provisions of each such Pledged Contract; provided, however, that such Grantor may suspend performance of its obligations under any such Pledged Contract in the event of a material breach of such Pledged Contract by a third party or if otherwise provided for in such Pledged Contract.  No Secured Party shall have any obligation or liability under any Pledged Contract by reason of or arising out of this Security Agreement or the granting to the Collateral Agent of a security interest therein or the receipt by any Secured Party of any payment relating to any Pledged Contract pursuant hereto, nor shall any Secured Party be required or obligated in any manner to perform or fulfill any of the obligations of any Grantor under or pursuant to any Pledged Contract, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any Pledged Contract, or to present or file any claim, or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

(b)   The Collateral Agent hereby authorizes each Grantor to collect the Accounts of such Grantor, provided, that the Collateral Agent may, upon the occurrence and continuation of an Event of Default and upon notice to the relevant Grantor, limit or terminate said authority at any time.  If required by the Collateral Agent at any time from the occurrence and continuation of an Event of Default, any Proceeds, when first collected by such Grantor, received in payment of such Account or in payment for any of its Inventory or on account of any of its Pledged Contracts shall be applied in accordance with the terms of the Loan Documents (including the Blocked Account Control Agreement and the Lockbox Control Agreements), including prompt deposit by such Grantor in precisely the form received (with all necessary endorsements) and no commingling with such Grantor’s other funds or properties.  Such Proceeds, when deposited, shall continue to be collateral security for all of the Secured Obligations and shall not constitute payment thereof until applied as hereinafter provided or in the Blocked Account Control Agreement and the Lockbox Control Agreements, as applicable.  Without limiting any rights of the Secured Parties that may be set forth in the other Loan Documents, upon the occurrence and continuation of any Event of Default, the Collateral Agent or the Administrative Agent may, in its sole discretion, apply all or a part of the funds on deposit in the Cinedigm Lockbox Accounts, the Concentration Account and the Operating Account to the aggregate outstanding amount of the Revolving Loans.  If an Event of Default has occurred and is continuing, at the request of the Collateral Agent, the Grantors shall deliver to the Collateral Agent all original and other documents evidencing, and relating to, the sale and delivery of such Inventory and the Grantors shall deliver all original and other documents evidencing and relating to, the performance of labor or service which created such Accounts, including all original orders, invoices and shipping receipts.

 

(c)   The Collateral Agent may at any time, without notice to or the consent of any Grantor, upon the occurrence and during the continuation of any Event of Default, notify the Account Debtors of the Grantors, parties to the Pledged Contracts of the Grantors, obligors in respect of Pledged Instruments of the Grantors and obligors in respect of Chattel Paper of the Grantors that the Accounts and the right, title and interest of the Grantors in and under such Pledged Contracts, Pledged Instruments, and Chattel Paper have been assigned to the Collateral Agent, and that payments shall be made directly to the Collateral Agent.  Upon the request of the Collateral Agent and following the occurrence and during the continuation of an Event of Default, each Grantor shall so notify its Account Debtors, parties to such Pledged

 

  

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Contracts, obligors in respect of such Pledged Instruments and obligors in respect of such Chattel Paper.  Upon the occurrence and during the continuation of an Event of Default, the Collateral Agent may, in its name or in the name of others, communicate with such Account Debtors, parties to such Pledged Contracts, obligors in respect of such Pledged Instruments and obligors in respect of such Chattel Paper to verify with such parties, to the Collateral Agent’s satisfaction, the existence, amount and terms of any such Accounts, Pledged Contracts, Pledged Instruments or Chattel Paper.

 

SECTION 4. Representations and Warranties.  Each Grantor hereby represents and warrants to the Secured Parties that:

 

(a)   Such Grantor is the sole legal and equitable owner of each item of the Collateral in which it purports to grant a Lien hereunder, having good title or rights thereto free and clear of any and all Liens, except for Customary Permitted Liens.

 

(b)   No effective security agreement, financing statement, equivalent security or lien Pledged Instrument or continuation statement covering all or any part of the Collateral exists, except such as may have been filed by such Grantor in favor of the Collateral Agent pursuant to this Security Agreement or such as relate to other Customary Permitted Liens.

 

(c)   This Security Agreement creates a legal and valid security interest on and in all of the Collateral in which such Grantor now has rights, and, as of the Second Amendment and Restatement Effective Date, all filings and other actions requested by Secured Parties to perfect and protect such security interest have been duly taken.  Accordingly, the Collateral Agent has or will have a fully perfected first priority security interest in all of the Collateral in which such Grantor now has rights, subject only to Customary Permitted Liens.  This Security Agreement will create a legal and valid and fully perfected first priority security interest in the Collateral in which such Grantor later acquires rights, when such Grantor acquires those rights, subject only to the Customary Permitted Liens.

 

(d)   Such Grantor shall not use any Collateral or permit any Collateral to be used in violation of (i) any provision of any Loan Document or Secured Hedging Document, (ii) any applicable Requirement of Law or Pledged Contractual Obligation where such violation could reasonably be expected, either individually or in the aggregate, to result in a Material Adverse Effect, or (iii) any policy of insurance covering the Collateral where such violation could reasonably be expected, either individually or in the aggregate, to result in a Material Adverse Effect.

 

(e)   As of the Second Amendment and Restatement Effective Date, each Grantor’s exact legal name is set forth on Schedule V.  Each Grantor was formed under the laws of jurisdiction of its formation as set forth on Schedule V.  Each Grantor’s chief executive office, principal place of business, and the place where each Grantor maintains records concerning the Collateral are set forth on Schedule V.  The Collateral, other than Deposit Accounts and Investment Property held in Securities Accounts, is presently located at the applicable locations set forth on Schedule V.

 

  

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(f)   As of the Second Amendment and Restatement Effective Date, all Collateral with respect to which a security interest may be perfected by the secured party’s taking possession thereof, including all Chattel Paper and Pledged Instruments, is set forth on Schedule I.  Except to the extent not required hereby, and except for action by the Collateral Agent and giving of value, all action necessary to protect and perfect such security interest in each item set forth on Part I of Schedule I, has been duly taken, or shall have been taken.  As of the Second Amendment and Restatement Effective Date, all Collateral consisting of Letter-of-Credit Rights and Commercial Tort Claims of the Grantors are set forth on Schedule II.

 

(g)   As of the Second Amendment and Restatement Effective Date, the names and addresses of all financial institutions at which the Grantors maintain their respective Deposit Accounts and the account numbers and account names of such Deposit Accounts are listed on Schedule III.  The Grantors shall supplement Schedule III from time to time within five Business Days after the opening of any additional Deposit Account or the closing or change in the account number of or account name on any existing Deposit Account.

 

(h)   The names and addresses of all institutions at which the Grantors maintain their respective Securities Accounts and the account numbers and account names of such Securities Accounts are listed on Schedule IV.  The Grantors shall supplement Schedule IV from time to time within five Business Days after the opening of any additional Securities Account or closing or changing the account number of or account name on any existing Securities Account.

 

(i)   [Reserved]

 

(j)   No authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person is required for the exercise by the Collateral Agent of the voting or other rights provided for in this Security Agreement, except in connection with a disposition of the Investment Property as may be required by any Requirement of Law affecting the offering and sale of securities generally.

 

(k)   [Reserved]

 

(l)   [Reserved]

 

(m)   Except as set forth thereon, each Grantor has the sole, full and unencumbered right, title and interest in and to (i) each of the trade names described in Part 1 of Annex A to Schedule VI, (ii) each of the domain names described in Part 2 of Annex A to Schedule VI, (iii) each of the Trademarks described in Part 3 of Annex A to Schedule VI hereto for the goods and services covered by the registrations thereof, (iv) each of the Patents described in Annex B to Schedule VI hereto, (v) each of the Copyrights described in Part 1 of Annex C to Schedule VI hereto and (vi) each of the software products described in Part 2 of Annex C to Schedule VI hereto, in each case subject to any Customary Permitted Liens.  The registrations for such Trademarks and Patents are valid and enforceable and in full force and effect and none of the Patents has been abandoned or dedicated.  According to the records of the Copyright Office, such Copyrights are valid and enforceable and in full force and effect.

 

  

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(n)   No Grantor owns any material Patents, Trademarks or Copyrights registered in, or the subject of pending applications in, the Patent and Trademark Office or the Copyright Office, other than those described in Schedules A, B, and C to Schedule VI hereto.

 

(o)   No material claim is pending, or, to each Grantor’s knowledge, has been threatened by any third party and remains unresolved (except for those that have been abandoned) that any of the Patents, Trademarks or Copyrights is invalid and unenforceable or violates or may violate the rights of any Person.

 

(p)   Set forth in Annex D to Schedule VI hereto is a complete list of all material licenses of Patents, Trademarks, Copyrights and Trade Secrets which each Grantor has granted to any Person.

 

(q)   Set forth in Annex E to Schedule VI hereto is a complete list of all material exclusive licenses of Patents, Trademarks, Copyrights and Trade Secrets which any Person has granted to each Grantor.

 

(r)   Each Grantor has obtained from each employee who may be considered the inventor of patentable inventions (invented within the scope of such employee’s employment with such Grantor) an assignment to such Grantor of all rights to such inventions, including Patents.

 

(s)   Each Grantor has taken commercially reasonable steps to protect the secrecy and the validity under any applicable Requirement of Law of all material Trade Secrets.

 

Notwithstanding the foregoing, during the continuance of an Event of Default, the period of time for supplementing each schedule to this Security Agreement as described in this Section 4 shall be immediately after obtaining the relevant Collateral or opening, closing or modifying the applicable Deposit Account or Securities Account.

 

SECTION 5. Covenants.  Each Grantor covenants and agrees that from and after the date of this Security Agreement and until the Secured Obligations have been indefeasibly paid in full in cash:

 

5.1   Further Assurances; Pledge of Pledged Instruments.  At any time and from time to time, upon the request of the Collateral Agent, and at the sole expense of a Grantor, such Grantor shall promptly and duly execute and deliver any and all such further Pledged Instruments and documents and take such further action as the Collateral Agent or Administrative Agent may deem necessary to obtain the full benefits of this Security Agreement and of the rights and powers herein granted, including:

 

(a)   using its best efforts to secure all consents and approvals necessary or appropriate for the grant of a security interest to the Collateral Agent in any Pledged Contract or license held by such Grantor or in which such Grantor has any rights not heretofore assigned,

 

(b)   authorizing the filing of any financing statements, amendments or continuation statements under the UCC with respect to the security interests granted hereby,

 

  

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(c)   authorizing or executing all notices of security interest for each relevant type of intellectual property in forms suitable for filing with the Patent and Trademark Office or the Copyright Office, as applicable, substantially in the forms of Schedules VII and VIII hereto or other forms acceptable to the Collateral Agent,

 

(d)   taking commercially reasonable steps in any proceeding before the Patent and Trademark Office, the Copyright 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 the Patents, Trademarks and Copyrights, including filing of renewals, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings (except to the extent that the failure to prosecute or maintain or the dedication, abandonment or invalidation thereof is permitted hereunder or could not reasonably be expected to have a Material Adverse Effect),

 

(e)   filing, authorizing and cooperating with the Collateral Agent in the submission of any filing in any foreign jurisdiction or under any international treaty,

 

(f)   transferring Collateral to the Collateral Agent’s possession (if a security interest in such Collateral can be perfected and free from an adverse claim only by possession),

 

(g)   filing financing statements as consignor pursuant to Sections 9-505(a) and 9-324(b) of the UCC in such jurisdictions as such Grantor maintains Inventory on consignment,

 

(h)   [reserved],

 

(i)   using its commercially reasonable efforts to obtain written acknowledgements from any consignees, warehouses or bailees of any prior Lien of the Collateral Agent in and to the Collateral and that such third party is holding possession of the Collateral for the benefit of the Collateral Agent, and

 

(j)   using its commercially reasonable efforts to assist the Collateral Agent in obtaining control under the UCC with respect to any Collateral consisting of Deposit Accounts, Securities Accounts, Investment Property, Letter-of-Credit Rights, Electronic Chattel Paper, and any Deposit Account or Securities Account except those with a balance that is less than and is not expected at any time to exceed $50,000.

 

Each Grantor also hereby authorizes the Collateral Agent, to the extent not prohibited by any applicable Requirement of Law, to file any such financing statement, amendment or continuation statement (including consignment filings) without the signatures of such Grantor.  If any amount payable under or in connection with any of the Collateral is or shall become evidenced by any Pledged Instrument, such Pledged Instrument, other than checks and notes received in the ordinary course of a Grantor’s business, shall be duly endorsed in a manner satisfactory to the Collateral Agent and delivered to the Collateral Agent promptly upon any such Grantor’s receipt thereof.

 

  

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5.2   Maintenance of Records.  Each Grantor shall keep and maintain, at its own cost and expense, satisfactory and complete records of the Collateral, including a record of all payments received and all credits granted with respect to the Collateral and all other dealings with the Collateral (including to the extent possible if the Collateral Agent is exercising remedies hereunder).  If requested by the Collateral Agent, each Grantor shall mark its books and records pertaining to the Collateral to evidence this Security Agreement and the security interests granted hereby.  If requested by the Collateral Agent, all Chattel Paper in excess of $100,000 at any one time shall be marked with the following legend:  “This writing and the obligations evidenced or secured hereby are subject to the security interest of OneWest Bank FSB, as Collateral Agent, created by that certain Amended and Restated Security Agreement, dated as of April 29, 2015, as the same may thereafter from time to time be amended, modified, supplemented or restated.”

 

5.3   Indemnification.

 

(a)   In any suit, proceeding or action brought by or against any Secured Party or any of its directors, officers, employees, agents or Affiliates (“Indemnitees”) relating to (a) any Collateral, including any Account, Chattel Paper, Pledged Contract, General Intangible, Pledged Instrument or Document for any sum owing thereunder, or to enforce any provision of any Account, Chattel Paper, Pledged Contract, General Intangible, Pledged Instrument or Document that constitutes Collateral and (b) any and all excise, sales or other similar taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by the Loan Documents or the Secured Hedging Documents, including any penalties, claims or other losses resulting from any delay in paying such excise, sales or other similar taxes, each Grantor shall jointly and severally hold, indemnify and keep the Indemnitees harmless from and against all claim, suit, loss, damage or expense (including reasonable attorneys’ fees and expenses) suffered by reason of any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever of the obligor thereunder arising out of a breach by any Grantor of any obligation thereunder, except to the extent determined by a final non-appealable judgment of a court of competent jurisdiction to have been caused by the gross negligence or willful misconduct of the Indemnitees, and all such obligations of the Grantors shall be and remain enforceable against and only against the Grantors and shall not be enforceable against the Indemnitees except to the extent caused by the gross negligence or willful misconduct of the Indemnitees.

 

(b) In addition, each Grantor assumes all responsibility and liability arising from the use of the Patents, Trademarks and Copyrights (it being understood that such Grantor may have maintained insurance in such respect), and each Grantor hereby jointly and severally indemnifies and holds each Indemnitee harmless from and against any claim, suit, loss, damage or expense (including reasonable attorneys’ fees and expenses) arising out of or in connection with any alleged infringement of any patent, trademark, service mark, trade name, trade secret or copyright of a third party or alleged defect in any product manufactured, promoted or sold by the Grantors (or any Affiliate of the Grantors) in connection with any Patent, Trademark or Copyright or out of the manufacture, promotion, labeling, sale or advertisement of any product or service by the Grantors (or any Affiliate of the Grantors).  Each Grantor agrees that the Secured Parties do not assume, and shall have no responsibility for, the payment of any sums due or to become due under any agreement or Pledged Contract included in the Collateral or the performance of any obligations to be performed under or with respect to any such

 

  

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agreement or Pledged Contract by the Grantors, and each Grantor hereby jointly and severally agrees to indemnify and hold each Indemnitee harmless with respect to any and all claims by any Person relating thereto, except those caused by the gross negligence or willful misconduct of an Indemnitee as determined by a final non-appealable judgment of a court of competent jurisdiction.

 

5.4   Limitation on Liens on Collateral.  No Grantor shall create, permit or suffer to exist, and each Grantor shall defend the Collateral against and take such other action as is necessary to remove, any Lien on the Collateral, except Customary Permitted Liens.  Each Grantor shall, jointly and severally, further defend the right, title and interest of any Secured Party in and to any of such Grantor’s rights under the Chattel Paper, Pledged Contracts, Documents, General Intangibles, Pledged Instruments and Investment Property, and to the Inventory, and in and to the Proceeds thereof against the claims and demands of all Persons whomsoever.

 

5.5   Limitations on Modifications of Accounts, Etc.  Upon the occurrence and during the continuation of any Event of Default, no Grantor shall, without the Collateral Agent’s prior consent, grant any extension of the time of payment of any of the Accounts, Chattel Paper, Pledged Instruments or amounts due or to become due under any Pledged Contract or Document, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any Person liable for the payment thereof, or allow any credit or discount whatsoever thereon other than (a) trade discounts and rebates granted in the ordinary course of such Grantor’s business and (b) such other credits or discounts not exceeding an aggregate stated amount of $50,000.

 

5.6   Maintenance of Insurance.  Each Grantor shall maintain, with financially sound and reputable companies, the insurance policies with coverage provisions as required by Section 6.13 of the Credit Agreement.

 

5.7   Taxes, Assessments, Etc.  Each Grantor shall pay promptly when due all property and other taxes, assessments and government charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Inventory, except to the extent the validity thereof is being contested in good faith and adequate reserves are being maintained in connection therewith.

 

5.8   Limitations on Disposition.  No Grantor shall sell, lease, license outside the ordinary course of its business, transfer or otherwise dispose of any of the Collateral, or attempt or Pledged Contract to do so, except as permitted by Section 7.4 of the Credit Agreement.

 

5.9   Further Identification of Collateral.  Each Grantor shall, if so requested by the Collateral Agent, furnish to the Collateral Agent upon reasonable request, statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably request, all in reasonable detail.

 

5.10   Notices.  Each Grantor shall advise the Collateral Agent promptly, in form and substance reasonably satisfactory to the Collateral Agent, of (a) any material Lien, other than

 

  

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Customary Permitted Liens, attaching to or asserted against any of the Collateral, (b) any material change in the composition of the Collateral or (c) the occurrence of any other event which could reasonably be expected to have or result in a Material Adverse Effect with respect to the Collateral or on the security interest created hereunder, taken as whole.

 

5.11   Right of Inspection and Audit.  Each Grantor shall permit the Collateral Agent such rights of inspection and audit as provided in the Credit Agreement.

 

5.12   Maintenance of Facilities.  No Grantor shall remove or cause to be removed, except in the ordinary course of such Grantor’s business, the Collateral or the records concerning the Collateral from those premises or from the locations shown on Schedule V without five Business Days prior written notice to the Collateral Agent.

 

5.13   Continuous Perfection.  No Grantor shall change its name, identity or corporate structure in any manner unless such Grantor shall have given the Collateral Agent at least 30 days’ prior notice thereof and shall have authorized or taken all action (or made arrangements to take such action substantially simultaneously with such change if it is impossible to take such action in advance) necessary or requested by the Collateral Agent to amend such financing statement or continuation statement so that it is not seriously misleading.

 

5.14   Authorizations with Respect to Financing Statements, etc.  Each Grantor hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in any filing office in any UCC jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as “all assets” of a Grantor or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other information required by Part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether such Grantor is an organization, the type of organization and any organization identification number issued to such Grantor, and (ii) in the case of a financing statement filed as a fixture filing or indicating any Collateral as as-extracted collateral or timber to be cut, a sufficient description of the real property to which such Collateral relates.  Each Grantor agrees to furnish any such information to the Collateral Agent promptly upon request.  Each Grantor also ratifies its authorization for the Collateral Agent to have filed in any UCC jurisdiction any initial financing statements or amendments thereto if filed prior to the Second Amendment and Restatement Effective Date.

 

5.15   No Reincorporation.  No Grantor shall reincorporate or reorganize itself under any jurisdiction other than the jurisdiction in which it is incorporated or organized as of the Second Amendment and Restatement Effective Date.

 

5.16   Terminations and Amendments Not Authorized.  Each Grantor acknowledges that it is not authorized to file any amendment or termination statement with respect to any financing statement relating to any security interest granted hereunder without the prior consent of the Collateral Agent and agrees that it will not do so without the prior consent of the Collateral Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC.

 

  

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5.17   Takings, Eminent Domain, Condemnation, Insurance Proceeds, etc.  Each Grantor hereby assigns to the Collateral Agent (a) all awards for damages suffered or compensation paid by reason of a taking for public use of, or an action in eminent domain affecting all or any part of, the Collateral or any interest therein, and (b) all proceeds of any insurance policies paid by reason of loss sustained to the Collateral or any part thereof (“Condemnation and Insurance Proceeds”).

 

5.18   [Reserved].

 

5.19   Compliance With Terms of Accounts, Etc.  In all material respects, each Grantor shall promptly perform and comply with all obligations in respect of Accounts, Chattel Paper, Pledged Contracts, Documents, Pledged Instruments and licenses and all other agreements to which it is a party or by which it is bound; provided, however, that such Grantor may suspend its performance thereunder in the event of a bona fide dispute or material breach of any such obligations by third parties, or pursuant to any other term of such agreements that allow such Grantor to suspend performance.

 

5.20   Additional Intellectual Property Covenants.

 

(a)   Except with regards to Trademarks that a Grantor may determine in its business judgment are appropriate for abandonment, each Grantor (either directly or through licensees) will continue to use the Trademarks in connection with each and every trademark class of goods or services applicable to its current line of products or services as reflected in its current catalogs, brochures, price lists or similar materials in order to maintain the Trademarks in full force and effect free from any claim of abandonment for nonuse, and such Grantor will not (and will not permit any licensee thereof to) do any act or omit to do any act whereby any Trademark may become invalidated.  Except with regard to Patents or Patent Registrations that a Grantor may determine in its business judgment are appropriate for abandonment or dedication, each Grantor will not do any act, or knowingly omit to do any act, whereby the Patents or Patent Registrations may become abandoned or dedicated or the remedies available against potential infringers weakened if such action or omission could have a Material Adverse Effect and shall notify the Collateral Agent promptly, but in any event within five Business Days, if it knows of any reason that any such Patent Registration may become abandoned or dedicated.  Except with regard to Copyrights that a Grantor may determine in its business judgment are appropriate for abandonment or dedication, each Grantor will not do any act or omit to do any act, whereby the Copyrights may become abandoned or dedicated or the remedies available against potential infringers weakened if such action or omission could have a Material Adverse Effect, and shall notify the Collateral Agent promptly, but in any event within five Business Days if it knows of any reason that any such Copyright may become abandoned or dedicated.

 

(b)   Each Grantor will notify, on a quarterly basis, the Collateral Agent, either by such Grantor or through any agent, employee, licensee or designee, of (i) an application filed by a Grantor or through any agent, employee, licensee or designee, for the registration of any material Patent, Trademark or Copyright with the Patent and Trademark Office or the Copyright Office or any similar office or agency in any other country or any political subdivision thereof, (ii) any assignment of any material Patent or Trademark, which such Grantor may

 

  

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acquire from a third party, with the Patent and Trademark Office or any similar office or agency in any other country or any political subdivision thereof, or (iii) any assignment of any material Copyright, which such Grantor may acquire from a third party, with the Copyright Office or any similar office or agency in any other country or any political subdivision thereof.

 

(c)   Each Grantor shall maintain with each employee who may have access to the Trade Secrets of the Grantors an agreement by which such employee agrees not to disclose such Trade Secrets and with each employee who may be the inventor of patentable inventions (invented within the scope of such employee’s employment) an invention assignment agreement requiring such employee to assign all rights to such inventions, including, patents and patent applications, to such Grantor and further requiring such employee to cooperate fully with such Grantor, its successors in interest, including the Collateral Agent, and their counsel, in the prosecution of any patent application or in any litigation involving the invention, whether such cooperation is required during such employee’s employment with such Grantor or after the termination of such employment.

 

(d)   Each Grantor shall promptly (i) apply to the Patent and Trademark Office to register any unpatented but patentable inventions developed by such Grantor or its employees (within the scope of their employment), unless such Grantor, in the exercise of its business judgment, deems any such Patent not to have any significant commercial value to it or determines that its rights thereunder are better preserved as a Trade Secret, (ii) apply to the Patent and Trademark Office to register any registerable but unregistered Trademarks used by such Grantor in connection with its products or services unless such Grantor, in the exercise of its business judgment, deems any such Trademark not to have any significant commercial value, and (iii) make application to the Copyright Office to register any unregistered Copyright to which such Grantor has rights unless such Grantor, in the exercise of its business judgment, deems any such Copyright not to have any significant commercial value or determines that its rights thereunder are better protected as a Trade Secret.

 

SECTION 6. The Collateral Agent’s Appointment as Attorney-in-Fact.

 

(a)   From and after the occurrence and during the continuance of an Event of Default, each Grantor hereby irrevocably constitutes and appoints the Collateral Agent, and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, from time to time at the Collateral Agent’s discretion, for the purpose of carrying out the terms of this Security Agreement, to take any and all appropriate action and to execute and deliver any and all documents and Pledged Instruments which may be necessary or desirable to accomplish the purposes of this Security Agreement and, without limiting the generality of the foregoing, hereby gives the Collateral Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do the following:

 

(i)   ask, demand, collect, receive and give acquittances and receipts for any and all monies due or to become due under any Collateral and, in the name of such Grantor, in its own name or otherwise to take possession of, endorse and collect any checks, drafts, notes, acceptances or other Pledged Instruments for the payment of monies due under any Collateral and to file any claim or to take or commence any other action or proceeding in any

 

  

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court of law or equity or otherwise deemed appropriate by the Collateral Agent for the purpose of collecting any and all such monies due under any Collateral whenever payable for application in accordance with Section 7(g) as appropriate;

 

(ii)   pay or discharge any Liens, including any tax Lien, levied or placed on or threatened against the Collateral, to effect any repairs or any insurance called for by the terms of this Security Agreement and to pay all or any part of the premiums therefor and the costs thereof, which actions shall be for the benefit of the Collateral Agent and the Lenders and not such Grantor; and

 

(iii)   (A) direct any Person liable for any payment under or in respect of any of the Collateral to make payment of any and all monies due or to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct, (B) receive payment of any and all monies, claims and other amounts due or to become due at any time arising out of or in respect of any Collateral, (C) sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with Accounts and other Pledged Instruments and Documents constituting or relating to the Collateral, (D) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any part thereof and to enforce any other right in respect of any Collateral, (E) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral, (F) settle, compromise or adjust any suit, action or proceeding described above and, in connection therewith, give such discharges or releases as the Collateral Agent may deem appropriate, (G) sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes, and to do, at the Collateral Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which the Collateral Agent may deem necessary to protect, preserve or realize upon the Collateral and the Collateral Agent’s security interest therein in order to effect the intent of this Security Agreement, all as fully and effectively as such Grantor might do.

 

(b)   Each Grantor hereby authorizes and ratifies, to the extent not prohibited by any applicable Requirement of Law, all acts that the Collateral Agent as said attorney-in-fact shall lawfully do or cause to be done by virtue hereof.  The power of attorney granted pursuant to this Section 6 is a power coupled with an interest and shall be irrevocable until the Secured Obligations are completely and indefeasibly paid in full in cash.

 

(c)   The powers conferred on the Secured Parties hereunder are solely to protect the Secured Parties’ interests in the Collateral and shall not impose any duty upon any Secured Party to exercise any such powers.  The Collateral Agent shall have no duty as to any Collateral, including any responsibility for (i) taking any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral or (ii) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Investment Property, whether or not the Collateral Agent has or is deemed to have knowledge of such matters.  Without limiting the generality of the preceding sentence, the Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any of the Collateral if it takes such action for that purpose as any Grantor

 

  

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reasonably requests in writing at times other than upon the occurrence and during the continuance of any Event of Default.  Failure of the Collateral Agent to comply with any such requests at any time shall not in itself be deemed a failure to exercise reasonable care.  The Collateral Agent shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and neither it nor any of its officers, directors, employees, agents or representatives shall be responsible to a Grantor for any act or failure to act, except for its own gross negligence or willful misconduct as determined by a final, non-appealable judgment of a court of competent jurisdiction.

 

(d)   Each Grantor also authorizes the Collateral Agent, at any time and from time to time upon the occurrence and during the continuation of any Event of Default, to (i) communicate in its own name with any party to any Pledged Contract with regard to the assignment of the right, title and interest of such Grantor in and under the Pledged Contracts hereunder and other matters relating thereto and (ii) execute, in connection with the sale of Collateral provided for in Section 7 below, any endorsements, assignments or other Pledged Instruments of conveyance or transfer with respect to the Collateral.

 

SECTION 7. Rights and Remedies Upon Default.

 

(a)   If any Event of Default shall occur and be continuing, the Collateral Agent may exercise, in addition to all other rights and remedies granted to it under this Security Agreement, any other Loan Documents, any Secured Hedging Document and under any other Pledged Instrument or agreement securing, evidencing or relating to the Secured Obligations, all rights and remedies of a secured party under any applicable Requirement of Law, including the UCC.  Without limiting the generality of the foregoing, each Grantor expressly agrees that, during the continuance of an Event of Default, the Collateral Agent, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public or private sale) to or upon such Grantor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent not prohibited by the UCC and other any applicable Requirement of Law), shall have the right to collect the Proceeds from all Collateral (including dividends on Pledged Collateral) and may:

 

(i)   reclaim, take possession, recover, store, maintain, finish, repair, prepare for sale or lease, ship, advertise for sale or lease and sell or lease (in the manner provided for herein) the Collateral,

 

(ii)   upon five Business Days’ prior notice to the Grantors, license any of the Patents, Trademarks or Copyrights, throughout the world for such term or terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole discretion determine, whether general, special or otherwise, and on an exclusive or nonexclusive basis,

 

(iii)   enforce (and, upon notice to the Grantors, shall have the exclusive right to enforce) against any licensee or sublicensee all rights and remedies of the Grantors in, to and under any one or more license agreements with respect to the Collateral (without assuming any obligations or liability thereunder), and take or refrain from taking any action under any thereof,

 

  

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(iv)   forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and may forthwith sell, lease, assign, give an option or options to purchase or sell or otherwise dispose of and deliver said Collateral (or Pledged Contract to do so), or any part thereof, in one or more parcels at public or private sale or sales, at any exchange or broker’s board or at any of the Administrative Agent’s or Collateral Agent’s offices or elsewhere at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk, and

 

(v)   exercise (A) all voting, consent, corporate and other rights pertaining to the Pledged Collateral at any meeting of shareholders, partners or members, as the case may be, of the relevant issuer or issuers of Pledged Collateral or otherwise and (B) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to the Pledged Collateral as if it were the absolute owner thereof (including the right to exchange at its discretion any and all of the Pledged Collateral upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate or other structure of any issuer of Pledged Collateral, the right to deposit and deliver any and all of the Pledged Collateral with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Collateral Agent may determine), all without liability except to account for property actually received by it, but the Collateral Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing.

 

(b)   Each Grantor authorizes the Collateral Agent, on the terms set forth in this Section 7, to enter the premises where the Collateral is located, to take possession of the Collateral, or any part of it, and to pay, purchase, contest or compromise any Lien which, in the opinion of the Collateral Agent, appears to be prior or superior to its security interest.  The Collateral Agent shall have the right upon any public sale or sales, and, to the extent not prohibited by applicable any Requirement of Law, upon any such private sale or sales, to purchase the whole or any part of said Collateral so sold, free of any right or equity of redemption, which equity of redemption such Grantor hereby releases.  The Collateral Agent may sell the Collateral without giving any warranties as to the Collateral and may specifically disclaim any warranties of title, which procedures shall not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.  Each Grantor further agrees, at the Collateral Agent’s request, to assemble the Collateral and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at such Grantor’s premises or elsewhere.  The Collateral Agent shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale as provided in Section 7(g), below.  To the maximum extent not prohibited by any applicable Requirement of Law, each Grantor waives all claims, damages, and demands against the Collateral Agent arising out of the repossession, retention or sale of the Collateral except such as arise out of the gross negligence or willful misconduct of the Collateral Agent as determined by a final, non-appealable judgment of a court of competent jurisdiction.  Each Grantor agrees that the Collateral Agent need not give more than 10 days’ prior notice (which notification shall be deemed given in accordance with the Credit Agreement) of the time and place of any public sale or of the time after which a private sale may take place and that such notice is reasonable notification of such matters.

 

  

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(c)   As to any Collateral constituting certificated securities or uncertificated securities, if, at any time when the Collateral Agent shall determine to exercise its right to sell the whole or any part of such Collateral hereunder, such Collateral or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under Securities Act of 1933 (the “Act”), the Collateral Agent may, in its discretion (subject only to applicable requirements of any applicable Requirement of Law), sell such Collateral or part thereof by private sale in such manner and under such circumstances as the Collateral Agent may deem necessary or advisable, but subject to the other requirements of this Section 7(c), and shall not be required to effect such registration or cause the same to be effected.  Without limiting the generality of the foregoing, in any such event the Collateral Agent may, in its sole discretion, (i) in accordance with applicable securities laws, proceed to make such private sale notwithstanding that a registration statement for the purpose of registering such Collateral or part thereof could be or shall have been filed under the Act, (ii) approach and negotiate with a single possible purchaser to effect such sale, and (iii) restrict such sale to a purchaser who will represent and agree that such purchaser is purchasing for its own account, for investment, and not with a view to the distribution or sale of such Collateral or part thereof.

 

In addition to a private sale as provided above in this Section 7(c), if any of such Collateral shall not be freely distributable to the public without registration under the Act at the time of any proposed sale hereunder, then the Collateral Agent shall not be required to effect such registration or cause the same to be effected but may, in its sole discretion (subject only to any Requirement of Law), require that any sale hereunder (including a sale at auction) be conducted subject to such restrictions as the Collateral Agent may, in its sole discretion, deem necessary or appropriate in order that such sale (notwithstanding any failure so to register) may be effected in compliance with the Bankruptcy Code and other Requirement of Law affecting the enforcement of creditors’ rights and the Act and all applicable state securities laws.

 

(d)   Each Grantor agrees that in any sale of any of such Collateral, whether at a foreclosure sale or otherwise, the Collateral Agent is hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is necessary in order to avoid any violation of any applicable Requirement of Law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications and restrict such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the dividend or resale of such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any Governmental Authority, and such Grantor further agrees that such compliance shall not result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Collateral Agent be liable nor accountable to Grantor for any discount allowed by the reason of the fact that such Collateral is sold in compliance with any such limitation or restriction.

 

(e)   Each Grantor also agrees to pay all fees, costs and expenses of the Collateral Agent, including attorneys’ fees and costs, incurred in connection with the enforcement of any of its rights and remedies hereunder.

 

  

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(f)   Each Grantor hereby waives presentment, protest or any notice or demand not provided for herein (to the maximum extent not prohibited by any applicable Requirement of Law) of any kind in connection with this Security Agreement or any Collateral.

 

(g)   The proceeds of any sale, disposition or other realization upon all or any part of the Collateral shall be distributed by the Collateral Agent or the Administrative Agent in the order of priority set forth in Section 2.13 of the Credit Agreement.

 

SECTION 8. Limitation on the Collateral Agent’s Duty in Respect of Collateral.  The Collateral Agent shall be deemed to have acted reasonably in the custody, preservation and disposition of any of the Collateral if it complies with the obligations of a secured party under Section 9-207 of the UCC.

 

SECTION 9. Reinstatement.  This Security Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against a Grantor for liquidation or reorganization, should such Grantor become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of such Grantor’s Property, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to any applicable Requirement of Law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured 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 Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

 

SECTION 10. Miscellaneous.

 

10.1   Notices.  Except as otherwise specified herein, all notices, requests, demands, consents, instructions or other communications to or upon such Grantor or the Collateral Agent under this Security Agreement shall be given as provided in Section 10.11 of the Credit Agreement.

 

10.2   Partial Invalidity.  Any provision of this Security Agreement being held illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such provision not held illegal, invalid or unenforceable, any other provision of this Security Agreement or any part of such provision in any other jurisdiction.

 

10.3   Headings.  The section headings and captions appearing in this Security Agreement are included solely for convenience of reference and are not intended to affect the interpretation of any provision of this Security Agreement.

 

10.4   No Waiver; Cumulative Remedies.

 

(a)   Neither the Administrative Agent nor the Collateral Agent shall by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies under this Security Agreement, any other Loan Document or any Secured Hedging Document, nor shall any single or partial exercise of any right or remedy hereunder or thereunder on any one

 

  

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or more occasions preclude the further exercise thereof or the exercise of any other right or remedy under any Loan Document or Secured Hedging Document.

 

(b)   The rights and remedies provided hereunder or provided under the any other Loan Document or any Secured Hedging Document are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law or by any Loan Document or Secured Hedging Document.

 

10.5   Termination of this Security Agreement.  Subject to Section 9, this Security Agreement shall terminate upon the indefeasible payment in full in cash of the Secured Obligations and the termination of the Revolving Commitments.

 

10.6   Successors and Assigns.  This Security Agreement and all obligations of the Grantors hereunder shall be binding upon the successors and assigns of the Grantors, and shall, together with the rights and remedies of the Secured Parties, inure to the benefit of the Secured Parties and their respective successors and permitted assigns.  The Grantors may not assign, delegate or transfer their rights or obligations under this Security Agreement without the prior consent of the Collateral Agent.  Any purported assignment or transfer in contravention of the foregoing shall be null and void.  No sales of participations, other than sales, assignments, transfers or other dispositions of any agreement governing or Pledged Instrument evidencing the Secured Obligations or any portion thereof or interest therein shall in any manner affect the security interest created herein and granted to the Collateral Agent on behalf of the Secured Parties hereunder.

 

10.7   Amendments, Etc.  Subject to Section 10.1 of the Credit Agreement, no amendment, modification, supplement, extension, termination or waiver of any provision of this Security Agreement applicable to any Grantors and no approval or consent thereunder applicable to any Grantors may in any event be effective unless signed by each Grantor and the Collateral Agent with the written approval or upon the instructions of the required number of Lenders or the relevant affected Secured Hedging Counterparty, as applicable, and then only in the specific instance and for the specific purpose given and any such amendment, modification, supplement, extension, termination, waiver, approval or consent shall be binding upon the Collateral Agent, each holder of the Secured Obligations and the Grantors.

 

10.8   Entire Agreement.  The Security Agreement constitutes the entire agreement of the parties and supersede all prior agreements and understandings relating to the subject matter hereof.

 

10.9   Governing Law.  This Security Agreement shall be governed by, construed and enforced in accordance with, the internal law of the State of New York, except that matters concerning the validity and perfection of a security interest shall be governed by the UCC.

 

10.10   Counterparts.  This Security Agreement may be executed in any number of identical counterparts, any set of which signed by all the parties hereto shall be deemed to constitute a complete, executed original for all purposes.

 

  

23

  

10.11   Payments Free of Taxes, Etc.  All payments made by the Grantors under this Security Agreement shall be made by the Grantors in accordance with Section 2.18 of the Credit Agreement.

 

10.12   The Grantors’ Continuing Liability.  Notwithstanding any provision of this Security Agreement, any other Loan Document, any Secured Hedging Document, or any exercise by the Collateral Agent or the Administrative Agent of any of its rights hereunder or thereunder (including any right to collect or enforce any Collateral), (a) each Grantor shall remain liable to perform its obligations and duties in connection with the Collateral and (b) the Collateral Agent, the Administrative Agent and any Lender shall not assume or be considered to have assumed any liability to perform such obligations and duties or to enforce any of the Grantors’ rights in connection with the Collateral.

 

10.13   Additional Grantors.  If, pursuant to the terms and conditions of the Credit Agreement, the Borrower shall be required to cause any Subsidiary of the Borrower that is not a Grantor to become a Grantor hereunder, such Subsidiary shall execute and deliver to the Collateral Agent a Joinder Agreement in the form of Annex 1 and shall thereafter for all purposes be a party hereto and have the same rights, benefits and obligations as a Grantor party hereto on the Second Amendment and Restatement Effective Date and shall be deemed to have assigned, conveyed, mortgaged, pledged, granted, hypothecated and transferred to the Collateral Agent for itself and for the pro rata benefit of the Lenders the security interest described in such Joinder Agreement and Section 2 hereof.

 

10.14   Additional Provisions.  The Borrower hereby acknowledges and agrees that the jury trial waiver, consent to jurisdiction and other provisions in Sections 10.14 and 10.15 of the Credit Agreement apply to this Security Agreement as to the Borrower and are incorporated herein as though set forth in full.  Each Subsidiary Grantor hereby acknowledges and agrees that the jury trial waiver, consent to jurisdiction and other provisions in Sections 21 and 22 of the Guaranty Agreement apply to this Security Agreement as to each Subsidiary Grantor and are incorporated herein as though set forth in full.

 

10.15   Amendment and Restatement.  As of the Second Amendment and Restatement Effective Date, this Security Agreement shall amend, and restate as amended, the Existing Security Agreement, but shall not constitute a novation thereof or in any way impair or otherwise affect the rights or obligations of the parties thereunder (including with respect to representations and warranties made thereunder) except as such rights or obligations are amended or modified hereby.  The Existing Security Agreement as amended and restated hereby shall be deemed to be a continuing agreement among the parties, and all documents, instruments and agreements delivered pursuant to or in connection with the Existing Security Agreement not amended and restated in connection with the entry of the parties into this Security Agreement shall remain in full force and effect, each in accordance with its terms, as of the date of delivery or such other date as contemplated by such document, instrument or agreement to the same extent as if the modifications to the Existing Security Agreement contained herein were set forth in an amendment to the Existing Security Agreement in a customary form, unless such document, instrument or agreement has otherwise been terminated or has expired in accordance with or pursuant to the terms of the Original Credit Agreement, the Existing Credit Agreement, the Second Amended and Restated Credit Agreement, this Security Agreement or the Existing

 

  

24

  

Security Agreement or such document, instrument or agreement or as otherwise agreed by the required parties hereto or thereto.

 

10.16   Affirmation.  Each Grantor hereby reaffirms, as of the Second Amendment and Restatement Effective Date, (i) the covenants and agreements made by such Grantor contained in each Loan Document to which it is a party and (ii) its continuing pledges and other grants of Liens in the Collateral (after giving effect to this amendment and restatement) in respect of the Obligations pursuant to any Security Document, in each case, as such covenants, agreements and other provisions may be modified, supplemented or amended on the Second Amendment and Restatement Effective Date.  Each Grantor further confirms that each Loan Document to which it is a party is and shall continue to be in full force and effect and the same are hereby ratified and confirmed in all respects, except that upon the occurrence of the Second Amendment and Restatement Effective Date, all references in such Loan Documents to the “Credit Agreement”, the “Security Agreement”, the “Loan Documents”, “thereunder”, “thereof”, or words of similar import shall mean the Credit Agreement, the Security Agreement, and the other Loan Documents as amended or otherwise modified on (and after giving effect to the occurrence of) the Second Amendment and Restatement Effective Date.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

25

  

EXECUTION VERSION

IN WITNESS WHEREOF, the Grantors and the Collateral Agent have caused this Security Agreement to be executed as of the day and year first above written.

 

	  	
GRANTORS:

	  	  
	  	  
	  	
CINEDIGM CORP.

	  	  
	  	  
	  	
By:

	
/s/ Gary S. Loffredo

	  	
Name:

	
Gary S. Loffredo

	  	
Title:

	
President of Digital Cinema, General Counsel and Secretary

	  	  
	  	  
	  	
ADM CINEMA CORPORATION

	  	  
	  	  
	  	
By:

	
/s/ Gary S. Loffredo

	  	
Name:

	
Gary S. Loffredo

	  	
Title:

	
Secretary, General Counsel

	  	  
	  	  
	  	
VISTACHIARA PRODUCTIONS, INC.

	  	  
	  	  
	  	
By:

	
/s/ Gary S. Loffredo

	  	
Name:

	
Gary S. Loffredo

	  	
Title:

	
Secretary

	  	  
	  	  
	  	
VISTACHIARA ENTERTAINMENT, INC.

	  	  
	  	  
	  	
By:

	
/s/ Gary S. Loffredo

	  	
Name:

	
Gary S. Loffredo

	  	
Title:

	
Secretary

	  	  
	  	  
	  	
CINEDIGM ENTERTAINMENT CORP.

	  	  
	  	  
	  	
By:

	
/s/ Gary S. Loffredo

	  	
Name:

	
Gary S. Loffredo

	  	
Title:

	
Senior Vice President & Secretary

 

 

 

  

26

  

 

	  	
CINEDIGM ENTERTAINMENT HOLDINGS, LLC

	  	  
	  	  
	  	
By:

	
/s/ Gary S. Loffredo

	  	
Name:

	
Gary S. Loffredo

	  	
Title:

	
Secretary

	  	  	  
	  	  	  
	  	
CINEDIGM HOME ENTERTAINMENT, LLC

	  	  	  
	  	  	  
	  	
By:

	
/s/ Gary S. Loffredo

	  	
Name:

	
Gary S. Loffredo

	  	
Title:

	
Secretary

 

 

  

27

  

	  	
COLLATERAL AGENT:

	  	  
	  	  
	  	
ONEWEST BANK FSB,

	  	
as Collateral Agent

	  	  	  
	  	  	  
	  	
By:

	
/s/ Alphonse Lordo

	  	
Name:

	
Alphonse Lordo

	  	
Title:

	
First Vice President

 

 

 

  

28

  

SCHEDULE I

 

COLLATERAL REQUIRING POSSESSION FOR PERFECTION

 

No Collateral Applicable.

 

 

SCHEDULE I

  

  

  

SCHEDULE II

 

LETTER-OF-CREDIT RIGHTS AND COMMERCIAL TORT CLAIMS

 

 

LETTER-OF-CREDIT RIGHTS

 

No Collateral Applicable.

 

 

COMMERCIAL TORT CLAIMS

 

No Collateral Applicable.

 

 

SCHEDULE II

  

  

  

SCHEDULE III

 

DEPOSIT ACCOUNTS

 

	
Holder

	
Account Name

	
Bank Name

	
Address

	
Company Name

	
Acct Number

	
Routing Number

	
Relationship Mgr

	
Phone #

	
Cinedigm Corp.

	
Deposit Acct

	
OneWest Bank, N.A.

	
888 E. Walnut St. Pasadena, CA 91101

	
Cinedigm Entertain-ment Corp

	
 

	
1312011660

	
Olga Fomina

	
626-535-4878

	
Cinedigm Corp.

	
Deposit Acct

	
OneWest Bank, N.A.

	
888 E. Walnut St. Pasadena, CA 91101

	
Cinedigm Theatrical

	
 

	
1312011660

	
Olga Fomina

	
626-535-4878

	
Cinedigm Corp.

	
Deposit Acct

	
OneWest Bank, N.A.

	
888 E. Walnut St. Pasadena, CA 91101

	
Cinedigm Home Enternain-ment

	
 

	
1312011660

	
Olga Fomina

	
626-535-4878

	
Cinedigm Entertain-ment Corp.

	
Operat-ing Acct

	
OneWest Bank, N.A.

	
888 E. Walnut St. Pasadena, CA 91101

	  	
 

	
1312011660

	
Olga Fomina

	
626-535-4878

	
Cinedigm Corp.

	
Operat-ing Acct

	
OneWest Bank, N.A.

	
888 E. Walnut St. Pasadena, CA 91101

	  	
 

	
1312011660

	
Olga Fomina

	
626-535-4878

 

 

 

 

 

SCHEDULE III

  

  

  

	
Cinedigm Corp.

	
Concentration Acct

	
OneWest Bank, N.A.

	
888 E. Walnut St. Pasadena, CA 91101

	  	
 

	
1312011660

	
Olga Fomina

	
626-535-4878

	
Holder

	
Account Name

	
Bank Name

	
Address

	
Company Name

	
Acct Number

	
Routing Number

	
Relationship Mgr

	
Phone #

	
Cinedigm Corp.

	
Concentration

	
Societe Generale, New York Branch

	
245 Park Avenue, New York, NY 10167 USA

	
Cinedigm Corp.

	
 

	
026004226

	
Elaine Khalil

	
212-278-6852

I.

 

	
Cinedigm Corp.

	
Account Name

	
Bank Name

	
Address

	
Company Name

	
Acct Number

	
Routing Number

	
Relationship Mgr

	
Phone #

	
1

	
JPMorgan Chase CIDM

	
JPMorgan Chase

	
270 Park Avenue, New York, NY 10017

	
Cinedigm Digital Cinema Corp.

	
 

	
021000021

	
Debra Williams

	
646 582-7253

	
2

	
JPMorgan Chase Indie Direct

	
JPMorgan Chase

	
270 Park Avenue, New York, NY 10017

	
Vistachiara Productions Inc. dba The Bigger Picture

	
 

	
021000021

	
Debra Williams

	
646 582-7253

	
3

	
JPMorgan Chase  ADM

	
JPMorgan Chase

	
270 Park Avenue, New York, NY 10017

	
ADM Cinema Corp

	
 

	
021000021

	
Debra Williams

	
646 582-7253

	
Cinedigm Entertainment Corp.

	
Account Name

	
Bank Name

	
Address

	
Company Name

	
Acct Number

	
Routing Number

	
Relationship Mgr

	
Phone #

	
4

	
Citibusiness Checking

	
Citibank

	
Citibank NA BR 24 79 5th Ave., NY, NY 10003

	
New Video Group, Inc.

	
 

	
21000089

	
Patricia Keyser

	
212-559-5645

  

  

  

	
5

	
Citibank CD

	
Citibank

	
Citibank NA BR 24 79 5th Ave., NY, NY 10003

	
New Video Group, Inc.

	
 

	
21000089

	
Patricia Keyser

	
212-559-5645

	
6

	
Citibank Payroll - Checking

	
Citibank

	
Citibank NA BR 24 79 5th Ave., NY, NY 10003

	
New Video Group, Inc.

	
 

	
21000089

	
Patricia Keyser

	
212-559-5645

	
7

	
Citibank Payroll - Savings

	
Citibank

	
Citibank NA BR 24 79 5th Ave., NY, NY 10003

	
New Video Group, Inc.

	
 

	
21000089

	
Patricia Keyser

	
212-559-5645

	
8

	
Merrill Lynch WCMA

	
Merrill Lynch

	
601 Lexington Avenue 47th Floor, New York, NY 10022

	
New Video Group, Inc.

	
 

	
ABA for wires:  026009593 / Routing for ACH 084301767

	
Pizzutello Group

	
800-333-9701

 

 

  

  

  

SCHEDULE IV

 

SECURITIES ACCOUNTS

 

 

	
Cinedigm 

Entertainment 

Corp

	
Account 

Name

	
Bank Name

	
Address

	
Company Name

	
Acct 

Number

	  	
Merrill Lynch WCMA

	
Merrill Lynch

	
601 Lexington Avenue 

47th Floor, New York, NY 

10022

	
New Video Group, Inc.

	
 

 

 

 

 

 

 SCHEDULE IV

  

  

  

SCHEDULE V

 

LEGAL NAME; JURISDICTION OF FORMATION; BOOKS AND RECORDS; LOCATION OF COLLATERAL

 

	
Legal Name

	
Jurisdiction of Formation

	
Books and Records

	
Location of Collateral

	
ADM Cinema Corporation d/b/a the Pavilion Theatre

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Vistachiara Productions Inc., d/b/a The Bigger Picture

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Vistachiara Entertainment, Inc.

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Cinedigm Entertainment Corp.

	
New York Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Cinedigm Entertainment Holdings, LLC

	
Delaware Limited Liability Company

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Access Digital Media, Inc.

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Christie/AIX, Inc.

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Access Digital Cinema Phase 2, Corp.

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Access Digital Cinema Phase 2 B/AIX Corp.

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Cinedigm Digital Funding I, LLC

	
Delaware Corporation

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

 

 

 

 

SCHEDULE V

  

  

  

	
Legal Name

	
Jurisdiction of Formation

	
Books and Records

	
Location of Collateral

	
CDF2 Holdings, LLC

	
Delaware Limited Liability Company

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Cinedigm Digital Funding 2, LLC

	
Delaware Limited Liability Company

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Cinedigm Digital Cinema Australia Pty Ltd

	
Australian Proprietary Company

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Cinedigm DC Holdings, LLC

	
Delaware Limited Liability Company

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

	
Cinedigm Home Entertainment, LLC

	
Delaware Limited Liability Company

	
Cinedigm Corp.

902 Broadway, 9th Floor

New York, NY 10010

 

	
902 Broadway, 9th Floor

New York, NY 10010

 

Additional Locations of Inventory for each Grantor:

 

 

 

 

SCHEDULE V

  

  

  

	
Company name

	
Inventory

	
Location of Inventory

	
Cinedigm Corp.

	
None

	
n/a

	
Cinedigm Entertainment Corp.

	
DVDs

	
Sony DADC, 1700 N. Fruitridge Ave, Terre Haute, IN 47804

 

Technicolor Livonia, MI  28301 Schoolcraft-South Dock Livonia, MI 48150

 

Technicolor Romulus, MI   Attn: Corrugate Receiving Romulus Business Center   (RBC-1) Suite 100

36501 Van Born Road, Romulus, MI 48174

 

Technicolor Memphis-Holmes Rd  4155 Holmes Rd, Suite 1, Memphis, TN 38118

 

Technicolor Memphis-Speed  5140 Memphis Oaks Dr., Memphis, TN 38118

 

Technicolor Memphis-Lamar, 5215 Lamar Avenue, Memphis, TN 38118

 

Technicolor Memphis-Southridge Universal Returns Center 4975 Southridge Dr, Memphis, TN 38141

 

Technicolor Memphis-Southridge 4185 Steel Rd, Memphis, TN 38127

	
Vistachiara Productions, Inc.

	
None

	
n/a

	
Vistachiara Entertainment, Inc.

	
None

	
n/a

	
ADM Cinema Corporation

	
None

	
n/a

	
Cinedigm Entertainment Holdings, LLC

	
DVDs

	
Sony DADC, 1700 N. Fruitridge Ave, 

Terre Haute, IN 47804

 

Technicolor Livonia, MI        28301

Schoolcraft-South Dock Livonia, MI

 

 

  

  

  

 

	
Company name

	
Inventory

	
Location of Inventory

	 	  	
48150

 

Technicolor Romulus, MI 

Attn: Corrugate Receiving Romulus Business Center   (RBC-1) Suite 100 

36501 Van Born Road, Romulus, MI 48174

 

Technicolor Memphis-Holmes Rd  4155 Holmes Rd, Suite 1, Memphis, TN 38118

 

Technicolor Memphis-Speed  5140 Memphis Oaks Dr., Memphis, TN 38118

 

Technicolor Memphis-Lamar, 5215 Lamar Avenue, Memphis, TN 38118

 

Technicolor Memphis-Southridge Universal Returns Center 4975 Southridge Dr, Memphis, TN 38141

 

Technicolor Memphis-Southridge 4185 Steel Rd, Memphis, TN 38127

 

 

	
Cinedigm Home Entertainment, LLC

	
DVDs

	
3710 Jonlen Drive, Cincinnati, Ohio 45227

 

Cinram Ditan -437 Sanford Road, La Vergne, TN 37086

 

Sony DADC, 430 Gibraltor Drive, Bollingbrook, IL 60440

 

 

 

SCHEDULE V

  

  

  

SCHEDULE VI

 

All right, title and interest of the Grantors, whether now owned or hereafter acquired, in and to the following property:

 

(a) All trademarks, trade styles, service marks, trade names (including those trade names described in Part 1 of Annex A to this Schedule VI, which Part 1 of Annex A is incorporated herein by this reference), registered domain names (including those domain names described in Part 2 of Annex A to this Schedule VI, which Part 2 of Annex A is incorporated herein by this reference), and all prints and labels on which said trademarks, trade styles, service marks, trade names, and domain names have appeared or appear, and all designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all right, title and interest therein and thereto, all registrations and recordings thereof, including, (i) all applications, registrations and recordings in the Patent and Trademark Office or in any similar office or agency of the United States, any state thereof, or any foreign country or any political subdivision thereof, all whether now owned or hereafter acquired by any Grantor (including those described in Part 3 of Annex A to this Schedule VI, which Part 3 of Annex A is incorporated herein by this reference) and (ii) all reissues, extensions or renewals thereof and all licenses thereof (collectively, the “Trademarks”);

 

(b) All patentable inventions, patent rights, letters patent of the United States or any foreign country, all right, title and interest therein and thereto, and all registrations and recordings thereof, including (i) all Patent Registrations and recordings in the Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any foreign country or political subdivision thereof, all whether now owned or hereafter acquired by any Grantor (including those described in Annex B to this Schedule VI, which Annex B is incorporated herein by this reference) and (ii) all licenses thereof (collectively, the “Patents”);

 

(c) All copyrights including (i) all original works of authorship fixed in any tangible medium of expression, all right, title and interest therein and thereto, and all registrations and recordings thereof, including all applications, registrations and recordings in the Copyright Office or in any similar office or agency of the United States, any state thereof, or any foreign country or any political subdivision thereof (including those described in Part 1 of Annex C to this Schedule VI, which Part 1 of Annex C is incorporated herein by this reference), (ii) all software products (including the software products described in Part 2 of Annex C to this Schedule VI, which Part 2 of Annex C is incorporated herein by this reference) and (iii) all extensions or renewals thereof and all licenses thereof (collectively, the “Copyrights”);

 

(d) All goodwill of the Grantors’ business symbolized by the Trademarks and all customer lists and other records of the Grantors relating to the distribution of products or provision of services bearing or covered by the Trademarks;

 

(e) All proprietary information, including customer lists, databases, data collections, software code (in any form, including source code and executable object code), formulas, compilations, programs, methods, or processes, that derives independent economic value, actual

 

 

 

SCHEDULE VI

  

  

  

 

 

or potential, from not being generally known to, and not being readily ascertainable by proper means by other Persons who can obtain economic value from its disclosure or use, all whether now owned or hereafter acquired by any Grantor (collectively, the “Trade Secrets”);

 

(f) All licenses of Patents, Trademarks, Copyrights and Trade Secrets granted by any Grantor to any Person (including those licenses described on Annex D to this Schedule VI, which Annex D is incorporated herein by this reference) or all exclusive licenses of Patents, Trademarks, Copyrights, and Trade Secrets granted by any Person to any Grantor (including those licenses described on Annex E to this Schedule VI, which Annex E is incorporated herein by this reference) except (i) if the creation, attachment or perfection of a security interest in any of the foregoing licenses contractually gives rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under such license and (ii) Section 9-408(a) of the UCC or any other applicable law is not effective to render such contractual provision giving rise to such default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy ineffective, then the creation, attachment or perfection in such license shall not be effective to the extent necessary to avoid such default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy;

 

(g) All claims by any Grantor against any Person for past, present or future infringement of the Patents, Trademarks, Copyrights or Trade Secrets;

 

(h) Except to the extent already identified above, all algorithms, customer lists, databases, data collections, diagrams, formulae, graphs, inventions (whether or not patentable), know-how, methods, manufacturing and production or business processes, proprietary information, specifications, trade secrets, discoveries, concepts, ideas, research and development, compositions, designs, drawings, specifications software, software code (in any form, including source code and executable or object code), URLs, Web Sites, and business and marketing plans and proposals, works of authorship and other forms of technology (whether or not embodied in any tangible form and including all tangible embodiments of the foregoing, such as instruction manuals, laboratory notebooks, prototypes, samples, studies and summaries), all whether now owned or hereafter acquired by any Grantor. The term “Web Site”, as used above, includes the look and feel, including, but not limited to, overall design, appearance, graphics, artwork, color scheme, layout, navigation, functionality, features and organization for the presentation of and interaction with information or media with or without the use of html or xml software; and

 

(i) All proceeds of the foregoing (including whatever is receivable or received when any Collateral or proceeds is sold, collected, exchanged, licensed or otherwise disposed of, whether such disposition is voluntary or involuntary, which shall also include rights to payment and return premiums and insurance proceeds under insurance with respect to any Collateral, and all rights to payment with respect to any cause of action affecting or relating to the Collateral).

 

SCHEDULE VI

  

  

  

PART 1 OF ANNEX A

TO SCHEDULE VI

TO SECURITY AGREEMENT

TRADE NAMES

 

None.

 

 

 

 

 

SCHEDULE VI

  

  

  

PART 2 OF ANNEX A

TO SCHEDULE VI

TO SECURITY AGREEMENT

REGISTERED DOMAIN NAMES

 

Domain names will be provided within five (5) business days of the Closing Date.

 

 

 

 

 

SCHEDULE VI

  

  

  

PART 3 OF ANNEX A

TO SCHEDULE VI

TO SECURITY AGREEMENT

 

TRADEMARKS AND TRADEMARK APPLICATIONS

 

 

	
MARK

	
REGISTRATION NO.

	
DATE

REGISTERED

	
GOODS AND SERVICES WHERE APPEARING

	
Vistachiara Productions, Inc.

	  	  	  
	
THE BIGGER PICTURE

	
3,162,444

	
10/24/2006

	
Classes: 41 Int.

Goods: 41 Int.

 

Production and distribution of motion pictures.

	
Cinedigm Corp.

	  	  	  
	
CINEDIGM

	
1371051

	
2/21/2011

	
Classes: 39 Int., 41 Int., 42 Int.

Goods: 39 Int.

 

Storage of electronic media, namely, images, text and audio data.

 

41 Int.

Entertainment services, namely, distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts and plays, by satellite, telephone lines, cable, fiber optics, hard drive and Internet; leasing of digital cinema projection systems.

 

42 Int.

Providing managed technical services, namely, monitoring the

telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities.

	
THEATRE COMMAND CENTER ENTERPRISE

	
1371047

	
2/21/2011

	
Classes: 09 Int.

Goods: 09 Int.

Computer software in the field

 

 

 

 

SCHEDULE VI

  

  

  

	  	  	  	
of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

	
CINEDIGM

	
9230061

	
7/7/2010

	
Classes: 39 Int., 41 Int., 42 Int.

Goods: 39 Int.

 

Storage of electronic media, namely, images, text and audio data.

 

41 Int.

Entertainment services, namely, distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts and plays, by satellite, telephone lines, cable, fiber optics, hard drive and Internet; leasing of digital cinema projection systems.

 

42 Int.

Providing managed technical services, namely, monitoring the

telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities.

	
THEATRE COMMAND CENTER

	
9228594

	
7/7/2010

	
Classes: 09 Int.

Goods: 09 Int.

 

Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

	
THEATRE COMMAND CENTER ENTERPRISE

	
9228784

	
7/7/2010

	
Classes: 09 Int.

Goods: 09 Int.

 

Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

	
CINEDIGM

	
5,385,827

	
1/21/2011

	
Classes: 39 Int., 41 Int., 42 Int.

 

 

 

 

SCHEDULE VI

  

  

  

	  	  	  	
Goods: 39 Int.

 

Storage of electronic media, namely, images, text and audio data.

 

41 Int.

Entertainment services, namely, distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts and plays, by satellite, telephone lines, cable, fiber optics, hard drive and Internet; leasing of digital cinema projection systems.

 

42 Int.

Providing managed technical services, namely, monitoring the

telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities.

	
THEATRE COMMAND CENTER

	
5,390,795

	
2/10/2011

	
Classes: 09 Int.

Goods: 09 Int.

 

Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

	
THEATRE COMMAND CENTER ENTERPRISE

	
5,390,796

	
2/10/211

	
Classes: 09 Int.

Goods: 09 Int.

 

Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

 

 

 

 

SCHEDULE VI

  

  

  

	
CINEDIGM

	
827026

	
1/8/2011

	
Classes: 39 Int., 41 Int., 42 Int.

Goods: 39 Int.

 

Storage of electronic media, namely, images, text and audio data.

 

41 Int.

Entertainment services, namely, distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts and plays, by satellite, telephone lines, cable, fiber optics, hard drive and Internet; leasing of digital cinema projection systems.

 

42 Int.

Providing managed technical services, namely, monitoring the

telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities.

	
THEATRE COMMAND CENTER

	
827024

	
1/8/2011

	
Classes: 09 Int.

Goods: 09 Int.

 

Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

	
THEATRE COMMAND CENTER

	
827025

	
1/8/2011

	
Classes: 09 Int.

Goods: 09 Int.

Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

	
CINEDIGM

	
2013-G-2646607

	
7/30/2013

	
Classes: 39 Int., 41 Int., 42 Int.

 

Goods: 39 Int.

Storage of electronic media, namely, images, text and audio data.

 

41 Int.

 

 

 

 

 

SCHEDULE VI

  

  

  

	  	  	  	
Entertainment services, namely, distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts and plays, by satellite, telephone lines, cable, fiber optics, hard drive and Internet; leasing of digital cinema projection systems.

 

42 Int.

Providing managed technical services, namely, monitoring the

telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities.

	
C Design

	
85/923,230

	
5/3/2013

	
Classes 09 Int.

Goods: 09 Int.

 

Pre-recorded CD's and DVD's featuring drama, comedy, action and adventure movies and music; Pre-recorded cinematographic film, video cassettes and video discs featuring entertainment in the nature of motion picture productions; Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of digital content.

	
C Design

	
85/923,259

	
5/3/2013

	
Classes: 35 Int.

Goods: 35 Int.

 

Distributorships in the field of pre-recorded video cassettes and audio recordings and DVDs; licensing of pre-recorded video cassettes and audio recordings and DVDs; On-line ordering services featuring pre-recorded video cassettes and audio recordings and DVDs.

 

 

 

SCHEDULE VI

  

  

  

	
C Design

	
85/923,267

	
5/3/2013

	
Classes: 38 Int.

Goods: 38 Int.

 

Audio, video and multimedia broadcasting via the Internet and other communications networks; webcasting services; transmission of messages, data and content via the Internet and other communications networks; providing online forums and chat rooms for the transmission of messages, comments and multimedia content among users in the field of general interest via the Internet and other communications networks; transmission of electronic media, multimedia content, videos, movies, pictures, images, text, photos, user-generated content, audio content, and information via the Internet and other communications networks; Streaming of audiovisual and multimedia content via the internet; transmission and delivery of audiovisual and multimedia content via the internet; video-on-demand transmission services.

	
C Design

	
85/923,280

	
5/3/2013

	
Classes: 39 Int.

Goods: 39 Int.

 

Storage of electronic media, namely, images, text and audio data.

 

 

 

 

SCHEDULE VI

  

  

  

	
C Design

	
85/923,286

	
5/3/2013

	
Classes: 41 Int.

Goods: 41 Int.

 

Entertainment services in the nature of providing information on current and future movie offerings via a global computer network Motion picture film production; Movie studios; Production of video discs for others;Television production; Distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts, and plays, by digital means including satellite, telephone lines, cable, fiber optics, and Internet; Leasing of digital cinema projection systems; Entertainment and educational services, namely, providing movies, television shows, and information, reviews, and recommendations regarding movies and television shows; providing a website featuring television shows, movies, and multimedia content and information, reviews, and recommendations regarding television shows, movies, and multimedia content.

 

 

 

SCHEDULE VI

  

  

  

	
C Design

	
85/923,296

	
5/3/2013

	
Classes: 42 Int.

Goods: 42 Int.

 

Providing managed technical services, namely, monitoring the telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities; Providing a website featuring non-downloadable software that enables a community of users to post, search, watch, share, critique, rate, and comment on, videos and other multimedia content via the Internet and other communications networks; design and development of computer software.

	
CINEDIGM

	
3,934,870

	
3/22/2011

	
Classes: 39 Int., 41 Int., 42 Int.

Goods: 39 Int.

 

Storage of electronic media, namely, images, text and audio data.

 

41 Int.

Entertainment services, namely, distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts, and plays, by digital means including satellite, telephone lines, cable, fiber optics, and Internet; Leasing of digital cinema projection systems.

 

42 Int.

providing managed technical services, namely, monitoring the

telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities.

 

 

 

SCHEDULE VI

  

  

  

	
CINEDIGM and Design

	
3,934,877

	
3/22/2011

	
Classes: 38 Int., 39 Int., 41 Int., 42 Int.

Goods: 38 Int.

 

Leasing of digital cinema projection systems.

 

39 Int.

Storage of electronic media, namely, images, text and audio data.

 

41 Int.

Entertainment services, namely, distribution of motion pictures, sporting events, television programming, television short segments featuring news and information about sports, cartoons, concerts, and plays, by digital means including satellite, telephone lines, cable, fiber optics, and Internet.

 

42 Int.

providing managed technical services, namely, monitoring the

telecommunications, digital projection, and computer systems of others for technical purposes and providing back-up computer programs and facilities.

 

	
CINEDIGM CERTIFIED DIGITAL CINEMAS

	
77/951,595

	
3/5/2010

	
Classes: 09 Int., 41 Int.

Goods: 09 Int.

 

Motion picture theater equipment, namely, digital projection systems and satellite transmission projection systems comprised of digital video projector, operating software, computer server, storage device in the nature of electronic memories, satellite dish, television decoder, digital signal processor. 41 Int.

Movie theater services.

	
CINELIVE

	
3,830,073

	
8/10/2010

	
Classes: 41 Int.

Goods: 41 Int.

Entertainment in the nature of presentation of live performances by a musical

 

 

 

SCHEDULE VI

  

  

  

	  	  	  	
group, live sporting events, live show performances.

	
CINEXCHANGE

	
85/397,673

	
8/15/2011

	
Classes: 09 Int.

Goods: 09 Int.

 

Downloadable computer software or computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of movies.

	
CINEXPRESS

	
85/112,105

	
8/20/2010

	
Classes: 38 Int., 41 Int.

Goods: 38 Int.

 

Broadcasting of live and simulcast sporting events by satellite, telephone lines, cable, fiber optics, and Internet.

 

41 Int.

Entertainment services, namely distribution of motion pictures, live and recorded sporting events through broadcast media, television programming, television short segments featuring news and information about sports, cartoons, concerts, and plays by satellite, telephone lines, cable, fiber optics and Internet.

	
INDIEDIRECT

	
85/401,202

	
10/9/2012

	
Classes: 35 Int.

Goods: 35 Int.

 

Providing management services in the field of film distribution.

	
TCC

	
85/393,086

	
3/27/2012

	
Classes: 09 Int.

Goods: 09 Int.

 

Computer software in the field of entertainment for the purpose of managing data content and movie files and to assist in the transmission and display of movies.

 

Cinedigm Entertainment Corp.

	
TM Record

	
TM/SN/RN/Disclaimer

	
Owner

	
Status/Key Dates

	
Full Goods/Services

	
US Federal

Q4

uf 1

	
DOCURAMA

 

 

 

	
New Video Group Inc.

(New York Corp.)

 

 

	
Registered

June 10, 2008

	
(Int'l Class: 41) Rental of videos and dvd's; motion picture film

 

 

 

 

 

SCHEDULE VI

  

  

  

	
TM Record

	
TM/SN/RN/Disclaimer

	
Owner

	
Status/Key Dates

	
Full Goods/Services

	  	
SN:77-188472

RN:3,444,021

	
902 Broadway

9th Floor

New York, New York 10010

	
Int'l Class: 41

First Use:

January 21, 1981

Filed:

May 23, 2007

Published:

March 25, 2008

	
production for theatrical distribution and publishing of videos and dvd's

	
US Federal

Q4

uf 2

	
DOCURAMA

 

SN:76-297101

RN:2,723,312

 

	
New Video Group Inc.

(New York Corp.)

902 Broadway

9th Floor

New York, New York 10010

 

	
Registered 8 & 15

January 3, 2009

 

Int'l Class: 35

First Use:

March 1, 1999

Filed:

August 7, 2001

Published:

March 18, 2003

Registered:

June 10, 2003

 

	
(Int'l Class: 35) Online retail stores and wholesale stores featuring videos and dvd's

 

	
US Federal

Q4

uf 3

	
EVERYTHING ELSE IS PURE FICTION

 

 

SN:76-405134

RN:2,761,077

 

	
New Video Group Inc.

(New York Corp.)

902 Broadway

9th Floor

New York, New York 10010

 

	
Registered 8 & 15

January 3, 2009

 

Int'l Class: 35

First Use:

June 1, 1999

Filed:

May 10, 2002

Published:

June 17, 2003

Registered:

September 9, 2003

 

	
(Int'l Class: 35) Computerized on-line ordering services featuring dvd's; wholesale ordering services featuring dvd's

 

	
US Federal

Q4

uf 4

	
FLATIRON FILM COMPANY

[Missing Graphic Reference]

 

SN:77-862410

RN:3,932,071

Disclaimer: "FILM COMPANY"

 

	
New Video Group Inc.

(New York Corp.)

902 Broadway

9th Floor

New York, New York 10010

 

	
Registered

March 15, 2011

 

Int'l Class: 41

First Use:

June 30, 2010

Filed:

November 2, 2009

Published:

September 28, 2010

Allowed:

November 23, 2010

 

	
(Int'l Class: 41) Motion picture film production; production of television programs

 

	
US Federal

Q4

uf 5

	
NEW VIDEO

 

SN:76-297100

RN:2,733,929

Disclaimer: "VIDEO"

 

	
New Video Group Inc.

(New York Corp.)

902 Broadway

9th Floor

New York, New York

	
Registered 8 & 15

January 3, 2009

 

Int'l Class: 35, 41

First Use:

January 21, 1981

	
(Int'l Class: 35) Online retail stores and wholesale stores featuring videos and dvds

(Int'l Class: 41) Rental

SCHEDULE VI

  

  

  

	
TM Record

	
TM/SN/RN/Disclaimer

	
Owner

	
Status/Key Dates

	
Full Goods/Services

	  	  	
10010

 

	
Filed:

August 7, 2001

Published:

April 15, 2003

Registered:

July 8, 2003

 

	
of videos and dvds; motion picture film production for theatrical distribution; production and distribution of television programs via broadcast and cable networks; and publishing of videos and dvds

 

Cinedigm Home Entertainment, LLC (US)

	
Mark

	
Class

	
Serial #

	
Registration #

	
Registration Date

	
Next Deadline

	
GREATEST HEROES AND LEGENDS OF THE BIBLE (Word Mark)

	
9

	
75/606,097

	
2,336,886

	
3/28/00

	
03/28/20

	
GOODTIMES (Design Mark)

	
9

	
74/496,167

	
1,871,175

	
1/3/95

	
1/3/15

	
GOODTIMES (Word Mark)

	
9

	
74/557,169

	
1,905,525

	
7/18/95

	
7/18/15

Cinedigm Home Entertainment, LLC (Foreign)

	
Mark

	
Country

	
Class

	
Serial #

	
Registration #

	
Registration Date

	
Next Deadline

	
GOODTIMES (Word Mark)

	
Argentina

	
9

	
2543478

	
2062717

	
1/13/06

	
1/13/16

	
GOODTIMES (Design Mark)

	
Canada

	
9

	
0579049

	
TMA337571

	
2/26/88

	
2/26/18

	
GOODTIMES (Word Mark)

	
Singapore

	
9

	
T94/10387C

	
1,905,525

	
11/30/94

	
11/29/13

	
GOODTIMES (Word Mark)

	
Taiwan

	
9

	  	
698543

	
12/1/95

	
11/29/13

	
GOODTIMES (Word Mark)

	
Thailand

	
9

	
271931

	
28651

	  	
9/9/14

 

 

 

SCHEDULE VI

  

  

  

ANNEX B

TO SCHEDULE VI

TO SECURITY AGREEMENT

 

PATENTS AND PATENT APPLICATIONS

 

	
TITLE

	
MATTER TYPE

	
COUNTRY

	
STATUS

	
APPLICATION #

	
FILING DATE

	
PATENT #

	
ISSUE DATE

	
METHOD AND APPARATUS FOR MEDIA DUPLICATION

	
Utility – ORG

	
United States of America

	
Issued

	
11/696,093

	
3-Apr-07

	
8271648

	
18-Sep-12

	
THEATRE COMMAND CENTER

	
Prov – ORG

	
United States of America

	
Closed*

	  	  	  	  
	
METHOD AND APPARATUS FOR MEDIA DUPLICATION

	
Utility – ORG

	
PCT

	
Completed**

	
PCT/US08/59284

	
3-Apr-08

	  	  
	
METHOD AND APPARATUS FOR MEDIA DUPLICATION

	
Utility - NSPCT

	
European Patent Office

	
Pending***

	
08 745 026.8

	
3-Apr-08

	  	  

 

 

 

 

SCHEDULE VI

  

  

  

PART 1 OF ANNEX C

TO SCHEDULE VI

 

TO SECURITY AGREEMENT

 

COPYRIGHTS

 

 

Cinedigm Home Entertainment, LLC

	
Title

	
Registration #

	
Registration Date

	
50 Years of Oscar

	
(unregistered)

	  
	
A Christmas Carol

	
PA 735-206

	
12/23/1994

	
A Christmas Carol

	
VA 71-579

	
1/11/1995

	
Adventures of Pocahontas the Indian Princess Adventure Play Set, The

	
SR 199-454

	
12/5/1994

	
Aladdin

	
PA 709-362

	
6/28/1994

	
Aladdin

	
VA 638-131

	
3/14/1994

	
Aladdin (Certificate of Recordation - Copyright Assignment)

	
Vol 2971 Page 152

	
3/14/1994

	
Alice in Wonderland

	
PA 742-801

	
2/8/1995

	
Alice in Wonderland

	
VA 601-849

	
2/3/1995

	
All About Airplanes with Backpack Jack

	
(unregistered)

	  
	
All About Big Red Fire Engines

	
(unregistered)

	  
	
All About Creek Crawlies with Backpack Jack

	
(unregistered)

	  
	
All About Dinosaurs with Backpack Jack

	
(unregistered)

	  
	
All About Garbage & Recycling with Backpack Jack

	
(unregistered)

	  
	
All About Old McDonald’s Farm

	
(unregistered)

	  
	
Beauty and the Beast

	
PA 709-358

	
6/30/1994

 

 

 

 

 SCHEDULE VI

  

  

  

	
Title

	
Registration #

	
Registration Date

	
Beauty and the Beast

	
VA 617-799

	
1/5/1994

	
Beauty and the Beast (Certificate of Recordation - Copyright Assignment)

	
Vol 2961 Page 305

	
1/5/1994

	
Ben Hur

	
PA 1-192-336

	
6/6/2003

	
Black Beauty

	
PA 857-491

	
11/15/1995

	
Black Beauty

	
VA 692-606

	
1/20/1995

	
Camelot, The Legend

	
PA 1-003-746

	
9/22/2000

	
Chop Kick Panda

	
(unregistered)

	  
	
Cinderella

	
PA 738-773

	
12/23/1994

	
Cinderella

	
VA 711-573

	
1/11/1995

	
Country Couple Dances

	
(unregistered)

	  
	
Curly: The Littlest Puppy

	
PA 851-526

	
6/5/1997

	
Fabulous Pro Football Legends

	
(unregistered)

	  
	
GH&LOTB:  Apostles, The

	
PA 1-003-536

	
9/21/2000

	
GH&LOTB:  Daniel and the Lion's Den

	
PA 1-006-461

	
9/15/2000

	
GH&LOTB:  David & Goliath

	
PA 1-006-484

	
6/15/2000

	
GH&LOTB:  Garden of Eden, The

	
PA 1-013-138

	
9/20/2000

	
GH&LOTB:  Jonah and the Whale

	
PA 1-013-139

	
9/21/2000

	
GH&LOTB:  Joseph & the Coat of Many Colors

	
PA 1-003-535

	
9/21/2000

	
GH&LOTB:  Joshua and the Battle of Jericho

	
PA 1-002-538

	
9/21/2000

	
GH&LOTB:  Last Supper, Crucifixion & Resurrection, The

	
PA 1-038-633

	
9/20/2000

	
GH&LOTB:  Samson and Delilah

	
PA 1-006-483

	
9/19/2000

SCHEDULE VI

  

  

  

	
Title

	
Registration #

	
Registration Date

	
GH&LOTB:  Sodom & Gomorrah

	
PA 1-006-517

	
9/15/2000

	
GH&LOTB:  The Miracles of Jesus

	
PA 1-003-537

	
9/20/2000

	
GH&LOTB:  The Nativity

	
PA 1-006-478

	
9/15/2000

	
GH&LOTB:  The Story of Moses

	
PA 1-006-480

	
9/15/2000

	
Grizzly and the Treasure, The

	
(unregistered)

	  
	
Happy, The Littlest Bunny

	
PA 1-002-715

	
9/20/2000

	
Heidi

	
PA 857-493

	
11/15/1997

	
Heidi

	
VA 692-605

	
1/20/1995

	
Hercules

	
PA 815-481

	
5/30/1997

	
Hercules

	
VA 800-984

	
5/30/1997

	
Hockey, All Brawls

	
(unregistered)

	  
	
Hunchback of Notre Dame, The

	
PA 847-553

	
6/5/1997

	
Hunchback of Notre Dame, The

	
VA 861-229

	
6/5/1997

	
Jungle Book, The

	
PA 742-802

	
2/8/1995

	
Jungle Book, The

	
VA 698-260

	
2/3/1995

	
Legend of Camelot

	
(unregistered)

	  
	
Leo the Lion, King of the Jungle

	
PA 735-205

	
12/1/1994

	
Leo the Lion, King of the Jungle

	
PA 703-460

	
2/8/1995

	
Leo the Lion, King of the Jungle

	
VA 711-574

	
1/11/1995

	
Life with Jesus

	
(unregistered)

	  
	
Line Dancing’s Latest

	
(unregistered)

	  
	
Little Mermaid

	
PA 726-032

	
7/1/1994

 

 

 

 

SCHEDULE VI

  

  

  

	
Title

	
Registration #

	
Registration Date

	
Little Mermaid, The

	
VA 617-800

	
12/28/1993

	
Little Mermaid, The (Certificate of Recordation - Copyright Assignment)

	
Vol 2951 Page 349

	
12/28/1993

	
Little Red Riding Hood

	
PA 857-494

	
11/15/1995

	
Little Red Riding Hood

	
VA 579-199

	
2/28/1995

	
Littlest Bunny, The

	
VA 687-141

	
2/22/1995

	
Magic Gift of the Snowman

	
PA 843-783

	
6/9/1997

	
Nutcracker, The

	
PA 735-472

	
12/23/1994

	
Nutcracker, The

	
VA 711-580

	
1/11/1995

	
Pinnochio

	
PS 709-357

	
6/30/1994

	
Pocahontas

	
PA 735-418

	
12/23/1994

	
Pocahontas

	
VA 711-576

	
1/11/1995

	
Puss in Boots: A Furry Tail

	
(unregistered)

	  
	
Sinbad

	
PA 709-359

	
6/30/1994

	
Sinbad

	
VA 641-776

	
3/15/1994

	
Sinbad (Certificate of Recordation - Copyright Assignment)

	
Vol 2972 Page 408

	
3/15/1994

	
Sleeping Beauty

	
PA 857-500

	
11/15/1995

	
Sleeping Beauty

	
PA 850-657

	
6/2/1997

	
Sleeping Beauty

	
VA 311-307

	
3/30/1995

	
Snow White

	
PA 735-207

	
12/23/1994

	
Snow White

	
VA 7811-575

	
1/11/1995

	
Tappy Toes

	
(unregistered)

	  

 

 

 

SCHEDULE VI

  

  

  

	
Title

	
Registration #

	
Registration Date

	
Ten Commandments, The

	
(unregistered)

	  
	
Three Musketeers, The

	
VA 622-248

	
12/28/1993

	
Three Musketeers, The

	
PA 709-361

	
6/29/1994

	
Three Musketeers, The (Certificate of Recordation - Copyright Assignment)

	
Vol 2951 Page 348

	
2/15/1994

	
Thumbelina

	
PA 709-360

	
6/29/1994

	
Thumbelina

	
VA 612-569

	
1/5/1994

	
Thumbelina (Certificate of Recordation - Copyright Assignment)

	
Vol 2961 Page 306

	
1/5/1994

	
Wheels on the Bus Sing Along, The

	
(unregistered)

	  
	
White Fang

	
(unregistered)

	  

 

 

 

 

SCHEDULE VI

  

  

  

PART 2 OF ANNEX C

TO SCHEDULE VI

TO SECURITY AGREEMENT

 

SOFTWARE PRODUCTS

 

Theatrical Distribution System

Theatrical Distribution System Global

Theatre Command Center

Enterprise Web

Enterprise VPF Module

Exhibitor Management System

Royalty Transaction Solution

CineSuite (multiple products including CineCaster and CineLive)

 

 

SCHEDULE VI

  

  

  

ANNEX D

TO SCHEDULE VI

TO SECURITY AGREEMENT

 

LICENSES GRANTED BY GRANTORS TO THIRD PERSONS

 

 

None.

 

 

 

 

 

SCHEDULE VI

  

  

  

ANNEX E

TO SCHEDULE VI

TO SECURITY AGREEMENT

 

LICENSES GRANTED BY THIRD PERSONS TO THE GRANTORS

 

 

No licenses granted by Third Persons to the Grantors except for customary licenses for office computer software from time to time.

 

 

 

 

 

SCHEDULE VI

  

  

  

SCHEDULE VII

TO SECURITY AGREEMENT

 

GRANT OF SECURITY INTEREST

 

[TRADEMARKS][COPYRIGHTS]1

 

THIS GRANT OF SECURITY INTEREST, dated as of _______________, is executed by _________________________, a ___________________ (the “Grantor”), in favor of SOCIÉTÉ GÉNÉRALE, as Collateral Agent (in such capacity, the “Collateral Agent”).

 

A.           Pursuant to that certain Credit Agreement, dated as of October 17, 2013 (as amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Persons acting as lenders thereunder from time to time (“Lenders”), Société Générale, as administrative agent (in such capacity, the “Administrative Agent”) and the Collateral Agent, the Lenders have agreed to extend certain credit facilities to the Borrower upon the terms and subject to the conditions set forth therein.

 

[B.           The Grantor has adopted, used and is using the trademarks, more particularly described on Schedules 1-A and 1-B annexed hereto and made a part hereof, which trademarks are registered or subject to an application for registration in the United States Patent and Trademark Office and certain foreign countries (collectively, the “Trademarks”).]

 

[B.           The Grantor owns the copyrights registered in the United States Copyright Office and certain foreign countries, more particularly described on Schedule 1-A annexed hereto and made a part hereof (collectively, the “Copyrights”).]

 

[C.           Pursuant to the Security Agreement, dated as of October 20, 2013 (as amended, supplemented, restated or otherwise modified from time to time, the “Security Agreement”), among the Grantor, other entities party thereto from time to time and the Collateral Agent, the Grantor has granted to the Collateral Agent (for the ratable benefit of the Secured Parties) a security interest in all right, title and interest of the Grantor in and to the Trademarks, together with the goodwill of the business symbolized by the Trademarks and the customer lists and records related to the Trademarks and the applications and registrations thereof, and all proceeds thereof, including any and all causes of action which may exist by reason of past, present or future infringement thereof (the “Collateral”), to secure the payment, performance and observance of the Secured Obligations, as defined in the Security Agreement.]

 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the Grantor does hereby further grant to the Collateral Agent a security interest in the Collateral to secure the prompt payment, performance and observance of the Secured Obligations.

 

The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Collateral Agent with respect to the security interest in the Collateral granted hereby are

 

  

1 A separate form is to be used for each form of Collateral.

 

 

SCHEDULE VII

  

  

  

 

more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.

 

The Collateral Agent’s address is:

 

Société Générale,

    as Collateral Agent

1221 Avenue of the Americas

New York, New York 10020

Attention:  [-]

Tel. No. [-]

Fax No. [-]

 

SCHEDULE VII

  

  

  

IN WITNESS WHEREOF, the Grantor has caused this Grant of Security Interest to be executed as of the day and year first above written.

 

	
 

	
[NAME OF GRANTOR]

	
 

	
 

	 	
 

	 	
 

	
 

	
By:

	
 

	 	
Name:

	
 

	 	
Title:

	
 

 

 

 

 SCHEDULE VII

  

  

  

[SCHEDULE 1-A TO GRANT OF SECURITY INTEREST

 

TRADEMARKS]

 

 

 

 

SCHEDULE VII

  

  

  

[SCHEDULE 1-A TO GRANT OF SECURITY INTEREST

 

COPYRIGHTS]

 

 

 

 

 

	

Description

	 	

Registration Date

	 	

Registration No.

 

 

 

 

 

 

SCHEDULE VII

  

  

  

[SCHEDULE 1-B TO GRANT OF SECURITY INTEREST

 

TRADEMARK APPLICATIONS]

 

 

	

Mark

	 	

Application Date

	 	

Application No.

 

 

	

 

 

	

 

 

	

 

 

SCHEDULE VII

  

  

  

SCHEDULE VIII

TO SECURITY AGREEMENT

 

GRANT OF SECURITY INTEREST

 

(PATENTS)

 

THIS GRANT OF SECURITY INTEREST, dated as of _______________, is executed by _________________________, a ___________________ (the “Grantor”), in favor of SOCIÉTÉ GÉNÉRALE, as Collateral Agent (in such capacity, the “Collateral Agent”).

 

A.           Pursuant to that certain Credit Agreement, dated as of October 17, 2013 (as amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Persons acting as lenders thereunder from time to time (“Lenders”), Société Générale, as administrative agent (in such capacity, the “Administrative Agent”) and the Collateral Agent, the Lenders have agreed to extend certain credit facilities to the Borrower upon the terms and subject to the conditions set forth therein.

 

B.           The Grantor owns the letters patent, and applications for letters patent, of the United States and certain foreign countries, more particularly described on Schedules 1-A and 1-B annexed hereto and made a part hereof (collectively, the “Patents”).

 

C.           Pursuant to the Security Agreement, dated as of October 20, 2013 (as amended, supplemented, restated or otherwise modified from time to time, the “Security Agreement”), among the Grantor, other entities party thereto from time to time and the Collateral Agent, the Grantor has assigned and granted to the Collateral Agent (for the ratable benefit of the Secured Parties) a security interest in all right, title and interest of the Grantor in and to the Patents, together with any reissue, continuation, continuation-in-part or extension thereof, and all proceeds thereof, including any and all causes of action which may exist by reason of past, present or future infringement thereof (the “Collateral”), to secure the prompt payment, performance and observance of the Secured Obligations, as defined in the Security Agreement;

 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, the Grantor does hereby further assign, transfer and convey unto the Collateral Agent and grant to the Collateral Agent a security interest in the Collateral to secure the prompt payment, performance and observance of the Secured Obligations.

 

 SCHEDULE VIII

  

  

  

The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Collateral Agent with respect to the assignment of and security interest in the Collateral made and granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.

 

The Collateral Agent’s address is:

 

Société Générale,

    as Collateral Agent

1221 Avenue of the Americas

New York, New York 10020

Attention:  [-]

Tel. No. [-]

Fax No. [-]

 

 

SCHEDULE VIII

  

  

  

IN WITNESS WHEREOF, the Grantor has caused this Grant of Security Interest to be executed as of the day and year first above written.

 

 

 

	
  

	
[NAME OF GRANTOR]

	
  

	
  

	 	
  

	 	
  

	 	
By:

	
  

	 	
Name:

	
  

	 	
Title:

	
  

 

 

 

SCHEDULE VIII

  

  

  

SCHEDULE 1-A TO GRANT OF SECURITY INTEREST

 

PATENTS

 

 

 

 

 

SCHEDULE VIII

  

  

  

SCHEDULE 1-B TO GRANT OF SECURITY INTEREST

 

PATENT APPLICATIONS

 

 

 

 

	

Title

	  	

Jurisdiction

	  	

Application Date

	  	

Application No.

 

 

 

SCHEDULE VIII

  

  

  

ANNEX 1

 

JOINDER AGREEMENT

 

This JOINDER AGREEMENT, (the “Joinder Agreement”) dated as of _______, ____, is delivered pursuant to Section 10.13 of the Security Agreement, dated as of October 20, 2013, among each of the Grantors from time to time party thereto and Société Générale as Collateral Agent (as amended, supplemented, restated or otherwise modified from time to time, the “Security Agreement”).  Capitalized terms used herein but not defined herein are used herein with the meaning given them in the Security Agreement.

 

By executing and delivering this Joinder Agreement, the undersigned, as provided in Section 10.13 of the Security Agreement, hereby becomes a party to the Security Agreement as a Grantor thereunder with the same force and effect as if originally named as a Grantor therein and, without limiting the generality of the foregoing, as security for the full, prompt, complete and final payment when due (whether at stated maturity, by acceleration or otherwise) and prompt performance and observance of all the Secured Obligations of the undersigned, the undersigned hereby assigns, conveys, mortgages, pledges, grants, hypothecates and transfers to the Collateral Agent for itself and for the pro rata benefit of the Secured Parties a security interest in and to all of the undersigned’s right, title and interest in, to and under the Collateral, whether now owned or hereafter acquired by the undersigned or in which the undersigned now holds or hereafter acquires any interest and expressly assumes all obligations and liabilities of a Grantor thereunder.  From and after the date hereof, the undersigned shall for all purposes be a party to the Security Agreement and shall have the same rights, benefits and obligations as a Grantor party thereto on the Closing Date.

 

The undersigned hereby represents and warrants that each of the representations and warranties contained in the Security Agreement applicable to it is true and correct on and as the date hereof as if made on and as of such date.

 

The information set forth in Annex 1-A is hereby added to the information set forth in Schedules I through VIII to the Security Agreement.

 

This Joinder Agreement shall be governed by, and construed in accordance with the laws of the State of New York.

 

IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above written.

 

[Additional Grantor]

 

By:  ______________________

Name: ____________________

Title: _____________________

 

 

 

 

SCHEDULE VIII

  

  

  

ACKNOWLEDGED AND AGREED

as of the date of this Joinder Agreement

first above written.

 

SOCIÉTÉ GÉNÉRALE,

as Collateral Agent

By: ___________________

Name: _________________

Title: __________________

 

SCHEDULE VIII

  

  

  

Annex 1-A

[New Grantor to complete as appropriate]

 

 

 

	  	
COLLATERAL AGENT:

	  	  
	  	  
	  	
ONEWEST BANK FSB,

	  	
as Collateral Agent

	  	  
	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

 

 

SCHEDULE VIIIADGLeaseAgreement

LEASE AGREEMENT
 

		
	LANDLORD
	THIS AGREEMENT ("Lease"), dated the __8th_____ day of April, 2015 

		
	TENANT
	between ARKANSAS DEMOCRAT-GAZETTE, INC., with a notice address of 200 River Market Avenue, Suite 501, Little Rock, Arkansas 72201, (hereinafter referred to as “Landlord”) and INUVO, INC. (hereinafter referred to as "Tenant"). 

W-I-T-N-E-S-S-E-T-H:

        That each of the aforesaid parties acknowledges receipt of a valuable consideration from the other and they and each of them act herein in further consideration of the covenants of the other as herein stated.  Landlord and Tenant agree as follows:

ARTICLE I

		
	PREMISES
	1.1 That Landlord does hereby grant, demise and lease unto Tenant the premises or space in the Museum Center (hereinafter referred to as "Building"), 500 President Clinton Ave, Little Rock, Pulaski County, Arkansas, as outlined in red on the floor plan attached hereto (hereinafter referred to as Exhibit “A"),  which shall be on the third floor of the Building, consisting in the aggregate of 12,245 square feet of net rentable area as follows: (i) Suite 300 consisting of 5,359 square feet of net rentable area; (ii) Suite 303 consisting of 486 square feet of net rentable area; and (iii) Suite 305 consisting of 6,400 square feet of net rentable area (hereinafter referred to as "Premises"). 

 The term "net rentable area" as used herein, shall refer to (I) in the case of a single tenancy floor, all floor area measured from the plane set by the inside surface of the outer glass of the Building to the inside surface of the opposite outer wall, excluding only the areas ("service areas") within the outside walls used for elevators, mechanical rooms, janitor rooms, building stairs, fire towers, elevator shafts, flues, vents, stacks, pipe shafts and vertical ducts but including any such areas which are for the specific use of the particular tenant such as special stairs or elevators, and (ii) in the case of a partial floor, all floor areas within the plane set by the inside surface of the outer glass or wall enclosing the tenant occupied portion of the floor and measured to the mid-point of the walls separating areas leased by or held for lease to other tenants or from areas devoted to corridors, foyers, restrooms, for the use of all tenants on the particular floor (hereinafter sometimes called "common areas"), but including a proportionate part of the common areas located on such floor based upon the ratio which the tenant's net rentable area on such floor bears to the aggregate net rentable area on such floor.  No deductions from net rentable area are made for columns or projections necessary to the Building.  The net rentable area in the Premises has been calculated on the basis of the foregoing definition and is hereby stipulated for all purposes hereof to be the aggregate amount of square feet hereinabove stated, whether the same should be more or less as a result of minor variations resulting from actual construction and completion of the Premises for occupancy so long as such work is done in accordance with the terms and provisions hereof.
USE OF 
		
	PREMISES
	1.2    The Premises are to be used and occupied continuously throughout the term hereof for the business of general office exclusively, and for no other purpose whatever.

TERM OF 
		
	LEASE
	1.3    The Premises are hereby demised unto Tenant for a period of sixty (60) months from the Commencement Date.   Landlord shall deliver possession and access to the Premises with keys upon a fully executed Lease and a copy of Tenant’s insurance as described herein so that Tenant may commence their construction in the Premises.

The Commencement Date shall be the earlier of: 

a.    the Scheduled Commencement Date  on September 1, 2015 or;

b.   the date of substantial completion of the Premises as defined below; provided the Commencement Date shall not be extended for delays which are due to (x) special changes or additions required by Tenant; (y) delays of Tenant in submitting plans or specifications, supplying information, giving authorization, or otherwise; or (z) any default or other delay of Tenant (collectively, “Tenant Delays”).  The Tenant shall be bound by a written certification by Landlord as to the date that the Premises are ready for occupancy by the Tenant and, in the event that there are Tenant Delays, the Tenant's architect shall determine in its reasonable discretion the date that the Premises would have been ready for occupancy but for such Tenant Delays.

If the Commencement Date is not the first day of a calendar month, then the Term shall be extended by the time between the Commencement Date and the first day of the next month.  If this Lease is executed before the Premises become vacant or otherwise available and ready for occupancy by Tenant, or if any present occupant of the Premises holds over and Landlord cannot acquire possession of the Premises before the Commencement Date, then (a) Landlord shall not be in default hereunder or be liable for damages therefor and (b) Tenant shall accept possession of the Premises when Landlord tenders possession thereof to Tenant.  Notwithstanding the foregoing, by occupying the Premises, Tenant shall be deemed to have accepted the Premises in its condition as of the date of such occupancy, and the Commencement Date shall be the date of such occupancy.  Tenant shall execute and deliver to Landlord, within ten days after Landlord has requested same, a letter confirming (i) the Commencement Date, (ii) that Tenant has accepted the Premises, and (iii) that Landlord has performed all of its obligations with respect to the Premises (except for punch-list items specified in such letter).  The term “substantial completion” (or “substantially complete”) as used in the Lease means the date when the Premises are ready for occupancy by Tenant, subject to completion of minor details of construction or minor mechanical adjustments that do not significantly interfere with Tenant's occupancy.

Landlord currently occupies Suite 305 and shall relocate their FF&E from the Suite within fifteen (15) days after lease execution.

In connection with this Lease, upon Landlord’s request Tenant shall execute a subsequent agreement setting forth the specific Commencement Date and expiration date of the Lease in the form of Exhibit “E”.  
     
		
	RENTAL
	1.4  (a) Tenant shall pay to Landlord as rent for the Premises during the term of this Lease a monthly installment, payable in advance on the first day of every month without notice, demand, offset or deduction, and such rent beginning with the commencement of the term; provided, however, that in the event the term shall commence pursuant to Section 1.3 hereof on a date other than the first day of a month then the monthly installments for the first month of the term and the last month of the term shall be pro-rated accordingly and such pro-rated installment for the first month of the term shall be payable with and in addition to the monthly installment due on the first day of the first full month following commencement of the term (the date the first monthly installment of rent is due, whether the term shall have commenced on a date other than the first day of a month or not, is hereinafter referred to as the "Initial Rent Payment Date".  If rent has not been paid by the 10th of the month in which it is due, 5% of the monthly payment will be assessed as a late charge.  The amount of each such installment shall be equal to the following:

		
	(i)
	For the period commencing on the first month of the term and ending one (1)  year subsequent to the Initial Rent Payment Date ("Initial Rent Period") the amount of each monthly installment ("Initial Monthly Rent") shall be equal to the amount of $14,285.83  per month (see paragraph 4.16).

		
	(ii)
	After the Initial Rent Period and each subsequent twelve month period during the term of this Lease, the monthly rent payable by Tenant shall be increased by an additional two percent (2%) over the rent payable for the immediately preceding year.

(b)     Whenever, by the terms of the Lease, Tenant is required to make payments or furnish items at the expense of Tenant, all such additional items required to be paid by Tenant are to be considered as additional rent and Landlord is to have the same rights and remedies upon the nonpayment of such as Landlord has for the nonpayment of the rent provided in this Section 1.4.

		
	SECURITY
	1.5     Landlord acknowledges receipt of Tenant's check in the amount of $14,285.83   Dollars be held as security for the performance of Tenant's covenants herein contained.  Upon default by Tenant in making any payment or performing any obligation herein provided, Landlord shall have the right but not the obligation to apply said deposit toward payment of any arrearage of rent or other payments required of Tenant hereunder, or toward payment of any other damages, injury, cost or expense incurred by Landlord and caused by Tenant.  If all or any part of the deposit shall be so applied by Landlord, then within ten (10) days after Landlord shall make demand upon Tenant for a replacement deposit equal in amount to the deposit so applied, which shall be delivered to Landlord by Tenant.  Upon any transfer by Landlord of its interest in the Premises or this Lease, Landlord shall have the right without consent of Tenant to assign the deposit to the transferee who shall assume all liability or obligations to Tenant in regard thereto, and Landlord shall thereupon be released and discharged of all such liability or obligations.  The provisions of this Subsection 1.5 shall not be construed as liquidated damages, and shall not operate in any manner to reduce or release the obligations of Tenant hereunder, except insofar as the application of this money may reduce or satisfy an obligation to make payment of money.  If Tenant is not in default hereunder, any remaining balance of such deposit shall be returned by Landlord to Tenant without interest within thirty (30) days after termination of this Lease.

Security Deposit
Check #________
Dated:  ________
Received and Acknowledged:

Property Manager
Date: _________

		
	RENEWAL OPTIONS
	    1.6 Tenant shall have the renewal options set forth in Exhibit “C” attached hereto.

		
	TAXES, SPECIAL
	1.7   Tenant shall pay prior to delinquency at any time during the term of the Lease that  

ASSESSMENTS,                 they may   be imposed, levied or assessed:   (a) all ad valorem real and personal property taxes 
		
	LICENSES, ETC.
	and special assessments against the Premises or any personal property thereon resulting from any improvements or alterations to the above-described  use of the Premises by Tenant which are in excess of  the  amount  of  such   prior  to the beginning  of  the Lease  term,  (b) all  license, franchise  and  permit  fees  or  taxes.  Promptly after demand thereof, Tenant shall furnish to Landlord satisfactory proof of payment of any or all items stated herein which are payable by Tenant.

ARTICLE II

		
	FINISH BY LANDLORD/
	     2.1  Tenant shall occupy space in “as-is” condition unless Landlord agrees to perform work pursuant to Exhibit “D”.  Notwithstanding the foregoing, (i) Landlord represents and warrants that it has all appropriate permits and licenses to make the building available to Tenant and that the public portions of the building comply with all applicable state, county and local regulations, and (ii) Landlord acknowledges that there is mold in the southwest side of the Premises and that Landlord, at Landlord’s expense, shall fully remediate such mold in compliance with all state, local and federal regulations within fifteen (15) days of the date this Agreement is executed (the “Mold Remediation”). 

BUILDING STANDARDS. 
SERVICES TO BE        2.2  Landlord shall furnish Tenant while occupying the Premises the following services FURNISHED BY        on all days except as otherwise stated:
LANDLORD

      ( a )  Water, including cold water from mains for humidification, break rooms, drinking, lavatory and toilet purposes drawn through fixtures installed by Landlord, or by Tenant with Landlord's written consent, and hot water for lavatory and break room purposes from the regular Building supply at the prevailing temperature.  

( b )  Heating and air conditioning (cooling), when necessary for normal comfort (75○F., 65○F.) in the Premises from 7:00 a.m. to 9:00 p.m., Monday through Friday and on Saturdays which are not holidays from 8:00 a.m. to 1:00 p.m. Landlord shall furnish Tenant with heating and air conditioning (cooling) when necessary for normal comfort in the Premises at times other than set forth in the immediately preceding sentence pursuant to the terms and conditions of the Building rules and temperature otherwise maintained by the air conditioning system.  The heating and cooling system is on a master control, but also can be adjusted from the thermostats in the Premises.  The heating and cooling system is available after hours stated herein for an additional charge of $25 per hour.

      ( c )   Electrical current for standard Building lighting fixtures provided by Landlord and electrical outlets for office equipment for ordinary purposes connected with the aforesaid use of the Premises.  It is understood that services furnished under Section 2.2(b) and 2.2( c ) are Building standards, and all other electrical consumption by Tenant in the Premises including consumption for lighting fixtures, office equipment, air conditioning or heating beyond normal Building standards or Building hours shall be paid for by Tenant to Landlord at the rate charged to Landlord by the utility company providing the electricity.

      ( d )   Nightly housekeeping and janitor service Monday through Friday in and about the Premises.  Tenant shall not provide any janitor services without Landlord's prior written consent, and then, only subject to the supervision of Landlord and at Tenant's sole expense and responsibility and by a janitor contractor or employee at all times satisfactory to Landlord.

      ( e )   Electrical lighting services and heating and air conditioning for all public areas and special service areas of the Building in the manner and to the extent deemed by Landlord to be standard.

      ( f )   Passenger and freight elevator service in common with Landlord and other tenants, from 7:00 a.m. to 6:00 p.m., Monday through Friday, and Saturday from 8:00 a.m. to 1:00 p.m.   Such normal elevator service, passenger or freight, if furnished at other times, shall be deemed optional with Landlord and shall never be deemed a continuing obligation.  Landlord, however, shall provide adequate passenger and freight elevator service daily at all times when normal passenger and freight service is not furnished.  Automatic elevator service shall be deemed "elevator service" within the meaning of this paragraph.

  Landlord does not warrant that any service will be free from interruptions caused by repairs, renewals, improvements, changes of service, alterations, strikes, lockouts, labor controversies, civil commotion, riot, accidents, inability to obtain electrical power, fuel, steam, water, supplies or labor or other cause beyond the reasonable control of Landlord, provided, however, Landlord shall provide all such services in a commercially reasonable manner.  Notwithstanding the foregoing, no interruption of service which is due to a cause beyond the reasonable control of Landlord shall be deemed an eviction or disturbance of Tenant's use and possession of the Premises or any part thereof, or render Landlord liable to Tenant for damages, by abatement of rent or otherwise, or relieve Tenant from performance of Tenant's obligations under this Lease. 

  In the event that by agreement with Tenant, Landlord furnishes extra or additional services to be paid for by Tenant, such services shall be invoiced by Landlord to Tenant monthly and Tenant’s failure to pay for such invoiced services within ten (10) days after notice to Tenant shall authorize Landlord, in Landlord's discretion and without further notice, to immediately discontinue such services and terminate any agreement for such services.

  Any additional service charges paid by Tenant to Landlord for extra or additional services pursuant to this Section 2.2 shall be subject to adjustment in the same manner as the rental as provided for in Section 1.4 hereof.

The Building shall provide an on-site courtesy officer during the hours of 6:00 a.m. to 12:00 a.m Monday through Friday, 8:00 a.m. to 12:00 a.m. on Saturday, and 12:00 p.m. through 12:00 a.m. on Sunday.

		
	QUIET POSSESSION
	  2.3   Tenant shall keep and perform all of its covenants under this Lease on the part of Tenant to be performed, and so long as Tenant is not in default under this Lease Landlord shall guarantee to Tenant the quiet, peaceful and uninterrupted possession of the Premises.

ARTICLE III

		
	LAWFUL USES
	3.1   Tenant will maintain the Premises in a clean and healthful condition; and comply with all laws, ordinances, orders, rules, and regulations (state, federal, municipal and other agencies or bodies having any jurisdiction thereof)  with reference to use, conditions, or occupancy of the Premises.

INDEMNITY AND INSURANCE;
WAIVERS; SUBROGATION
            
3.2  Tenant is or shall become familiar with the Premises and acknowledges that, except for the Mold Remediation, the same are received by Tenant in a good state of repair, accepted by Tenant in the condition in which they are now or shall be when ready for occupancy and that Landlord shall not be liable to Tenant or Tenant's agents, employees, invitees or visitors for any injuries, death or damage to persons or property due to any condition, design or defect in the Building or its mechanical system or elsewhere in the Premises or the Building which may now exist or hereafter occur except where due to Landlord's sole negligence.  Tenant acknowledges that prior to the Commencement Date, Landlord has undertaken the Mold Remediation and that the prior existence of mold and its removal and remediation has been disclosed to Tenant.  Tenant accepts the Premises as suitable for the purposes for which the same are leased and assumes all risks of injury, death or damage to persons or property for which Tenant may become legally liable, and agrees that no representations, except such as are contained herein or endorsed hereon have been made to Tenant respecting the condition of the Premises.  Provided, that if the Premises is being constructed or remodeled for Tenant and the date of this lease is prior to the completion of such construction or remodeling, the provisions of this Section 3.2 shall not apply until Tenant has signed a letter of acceptance of the condition of the Premises.

( a ) Insurance.  Tenant shall at its expense procure and maintain throughout the Term the
following insurance policies: (1) commercial general liability insurance in amounts of not less than a combined single limit of  Two Million Dollars $2,000,000 (the "Liability Insurance Amount"), insuring Tenant, Landlord, and Landlord's agents against all liability for injury to or death of a person or persons or damage to property arising from the use and occupancy of the Premises, (2) contractual liability insurance coverage sufficient to cover Tenant's indemnity obligations hereunder, (3) commercial property insurance covering the full value of all furniture, trade fixtures and personal property (including property of Tenant and others) in the Premises, (4) workman's compensation insurance containing a waiver of subrogation endorsement reasonably acceptable to Landlord in amounts not less than statutorily required, and Employers’ Liability insurance with limits of not less than Two Million Dollars ($2,000,000), and (5) business interruption insurance in an amount that will reimburse Tenant for direct or indirect loss of earnings attributable to all perils insured against under (3) above or attributable to the prevention of access to the Building or Premises.  Tenant shall furnish certificates of such insurance (with an additional insured endorsement in form CG 20 26 11 85 for the commercial general liability policy) and such other evidence satisfactory to Landlord of the maintenance of all insurance coverage required hereunder, and Tenant shall obtain a written obligation on the part of each insurance company to notify Landlord at least 30 days before cancellation or (if available) a material change of any such insurance.  All such insurance policies shall be in form, and issued by companies, reasonably satisfactory to Landlord.

( b ) Waiver of Negligence Claims, No Subrogation.  Landlord and Tenant each waive any claim it might have against the other for any damage to or theft, destruction, loss, or loss of use of any property, but only to the extent the same is insured against by such party under any insurance policy that covers the Building, the Premises, Landlord's or Tenant's fixtures, personal property, leasehold improvement, or business or is required to be insured against by it under the terms hereof, regardless of whether the negligence or fault of the other party caused such loss;  however, Landlord's waiver shall not include any commercially reasonable deductible amounts on insurance policies carried by Landlord.  Each party shall cause its insurance carrier to endorse all applicable policies waiving the carrier's rights of recovery under subrogation or otherwise against the other party.

( c ) Indemnifications.  Subject to the provisions herein, Tenant shall defend, indemnify, and hold harmless Landlord and Landlord's agents and their respective shareholders, directors, officers, employees, and partners from and against all claims, demands, liabilities, causes of action, suits, judgments, and expenses (including attorneys' fees) for any bodily injury and property damage claims arising from the negligence or willful misconduct of Tenant or its employees, agents, contractors or invitees.    The foregoing indemnification provision shall survive termination or expiration of this Lease.  Subject to the provisions herein, Landlord shall defend, indemnify, and hold harmless Tenant and Tenant’s agents and their respective shareholders, directors, officers, employees, and partners from and against all claims, demands, liabilities, causes of action, suits, judgments, and expenses (including attorneys' fees) for any bodily injury and property damage claims arising from the negligence or willful misconduct of Landlord or its employees, agents, contractors or invitees.  The foregoing indemnification provision shall survive termination or expiration of this Lease.

( d ) Landlord's Insurance.  Throughout the Term of this Lease, Landlord shall maintain, as a minimum, the following insurance policies:  (1) property insurance for the Building’s replacement value (excluding property required to be insured by Tenant), less a commercially-reasonable deductible as described below if Landlord so chooses; and (2) commercial general liability insurance in such amounts and with such deductible amounts as would be maintained by a prudent Landlord by comparable properties.  Additionally, Landlord may obtain and carry any other form or forms of insurance as it may reasonably desire or as any Landlord's Mortgagee may require.
 
The liability of Landlord  (and its partners, shareholders or members) to Tenant  (or any person or entity claiming by, through or under Tenant) for any default by Landlord under the terms of this Lease or any matter relating to or arising out of the occupancy or use of the Premises and/or other areas of the Building or Complex shall be limited to Tenant’s actual direct damages therefor and shall be recoverable only from the proceeds of sale on execution of the interest of Landlord in the Building in which the Premises are located, and Landlord  (and its partners, shareholders or members) shall not be personally liable for any deficiency.  This clause shall not be deemed to limit or deny any remedies, which Tenant may have in the event of default by Landlord hereunder which do not involve the personal liability of Landlord.

( e )    EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL AND INDIRECT DAMAGES FROM LESSOR AND ANY OF THE AFFILIATES, OFFICERS, DIRECTORS, MEMBERS, MANAGERS OR EMPLOYEES OF THE OTHER PARTY OR ANY OF THEIR SUCCESSORS WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS LEASE OR ANY DOCUMENT CONTEMPLATED HEREIN OR RELATED HERETO.  THE WAIVER BY EACH PARTY OF ANY RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL AND INDIRECT DAMAGES HAS BEEN NEGOTIATED BY THE PARTIES HERETO AND IS AN ESSENTIAL ASPECT OF THEIR BARGAIN.

		
	WASTE
	3.3  Tenant shall not commit or permit any waste to be committed whatsoever.

		
	NUISANCES
	3.4    Tenant shall not create or allow any nuisance to exist in the Premises, and it shall abate promptly and free of expense to Landlord any nuisance that may arise.  Landlord's determination of what constitutes a nuisance shall be binding on Tenant.

		
	INVALIDATION OF
	      3.5    Tenant shall not suffer anything to be or remain upon or about the Premises which 

		
	INSURANCE
	will invalidate any policy of insurance, which Landlord may now or hereafter have upon the Building.

		
	INCREASED
	    3.6  Tenant shall not suffer anything to be or remain upon or about the Premises nor

		
	PREMIUMS
	carry on nor permit upon the Premises any trade or occupation or suffer to be done anything which may render an increased or extra premium payable for any insurance of the Premises or the Building against fire, casualty, liability or any other insurable causes, unless consented to in writing by Landlord.  Regardless of whether Landlord has so consented or not, Tenant shall pay any such increased or extra premium within ten days after Tenant shall have been advised by Landlord of the amount thereof.

		
	ALTERATIONS
	3.7   Except as otherwise permitted herein or in the Building rules and regulations, Tenant shall not have the right to make changes, alterations, or additions to the Premises (including without limitation, floor coverings and fixtures) until Tenant has first obtained Landlord's approval in writing, which approval shall not be unreasonably withheld.  Such changes, alterations, or additions, when made to the Premises by Tenant, shall at once become the property of Landlord and shall be surrendered to Landlord upon the termination for any reason of this Lease; but this clause shall not apply to movable equipment or furniture (including partitioned office cubicle or furniture) of Tenant or such changes, alterations or additions to the Premises as may be removed from the Premises without causing damages thereto other than the diminution in value to the Premises resulting from such removal.  In the event Tenant elects to remove any such item, it shall do so at its sole expense.   Title to any item so removed shall immediately vest in Tenant without any action on the part of Landlord being required.

		
	USE OF BUILDING
	3.8    Tenant shall not, except to designate Tenant's business address (and then only in a 

		
	NAME
	conventional manner and without emphasis or display) use the Building name or any simulation or abbreviation of such name for any purpose whatsoever.  Landlord shall have the right to change the name of the Building at any time after six (6) months’ notice to all Tenants.  Tenant will discontinue using any such name and any simulation or abbreviation thereof for the purpose of designating Tenant's business address before the date Landlord shall specify in its notice to Tenant after which the Building shall no longer be known by such name.

 
		
	SIGNS
	3.9   Tenant shall not paint, display, inscribe, maintain or affix any sign, picture, advertisement, notice, lettering or direction on any area outside the Premises except on hallway doors of the Premises, and then only such name or names or matter and in such color, size, style, character and materials as may first be approved by Landlord in writing.  Landlord shall have the right to remove, at Tenant's expense, all matter other than that above provided for without notice to Tenant.  Landlord shall install Tenant’s name on the Building directories and glass plaque on the third floor hallway leading to Suite 305.

DEFACING PREMISES         3.10  Tenant shall not place anything or allow anything to be placed near the glass of any  
		
	AND OVERLOADING
	door, partition, wall or window, which may be unsightly from outside the Premises, and Tenant shall not place or permit to be placed any article of any kind on any window ledge or on the exterior walls. Blinds, shades, awnings or other forms of inside or outside window coverings, or window ventilators or similar devices, shall not be placed in or about the outside windows in the Premises except to the extent that the character, shape, color, material and make thereof is approved by Landlord, and Tenant shall not do any painting or decorating in the Premises or make, paint, cut or drill into, or in any way deface any part of the Premises or the Building without the written consent of Landlord.  Tenant shall not overload any floor or part thereof in the Premises, or any facility in the Building or any public corridors or elevators therein while bringing in or removing any large or heavy articles, and Landlord may direct and control the location of safes and all other heavy articles.  Furniture and other large or heavy articles may not be brought into the Building, removed therefrom or moved from place to place within any portion of the Premises or other portion of the Building or its equipment that would exceed the standard load limits as set forth in the rules of the Building.

		
	REPAIRS
	3.11  Tenant shall, at its costs and expense, repair and replace any damage or injury done to the Premises, or the Building, or any part thereof, caused by Tenant or its agents, employees, invitees, or visitors.  Tenant shall also repair in the Premises:  (1) floor covering and/or raised flooring; (2) interior partitions; (3) doors; (4) the interior side of demising walls; (5) electronic, phone and data cabling and related equipment that is installed by or for the benefit of Tenant and located in the Premises or other portions of the Building; (6) supplemental air conditioning units, private showers and kitchens, including hot water heaters, plumbing, dishwashers, ice machines and similar facilities serving Tenant exclusively; (7) phone rooms used exclusively by Tenant; (8) alterations performed by contractors retained by or on behalf of Tenant, including related HVAC balancing; and (9) all of Tenant’s furnishings, trade fixtures, equipment and inventory. Should Tenant fail to make such repairs or replacements within 15 days of occurrence of such damage or injury, Landlord may, at its option, make such repairs and replacements and Tenant shall pay the cost thereof to Landlord upon demand.

		
	ASSIGNMENT OR
	      3.12  Tenant shall not assign or sublet the Premises, this Lease or any part thereof without 

		
	SUBLETTING
	the prior written consent of Landlord, which shall not be unreasonably withheld, provided that Tenant provides Landlord notice of such sublessee or assignee (“transferee”) with copies of the proposed documentation, and the following information about the proposed transferee: name and address; reasonably satisfactory information about its business and business history; its proposed use of the Premises; banking, financial, and other credit information; and general references sufficient to enable Landlord to determine the proposed transferee's experience and credit worthiness and character.  Tenant shall reimburse Landlord for its attorneys' fees and other expenses incurred in connection with considering any request for its consent to a Transfer.  Notwithstanding any assignment or subletting, Tenant and any guarantor of Tenant's obligations under this Lease shall at all times remain fully responsible and liable for the payment of the rent herein specified and for compliance with all of Tenant's other obligations under this Lease. Landlord’s consent to any transfer shall not be deemed consent to any subsequent transfers.

		
	ATTORNEY FEES
	      3.13  Tenant shall pay all costs of collection, including reasonable attorney fees, if all or any part of the rent reserved herein is collected after maturity with the aid of any attorney; and Tenant shall also pay reasonable attorney fees in the event it becomes necessary for Landlord to employ an attorney to force Tenant to comply with any of the covenants, obligations or conditions imposed by this Lease

		
	RULES OF BUILDING
	      3.14  Tenant and Tenant's agents, employees and invitees will comply fully with all requirements of Rules of the Building which are attached hereto and, which are a part of this Lease as though fully set out herein.  Landlord shall at all times have the right to change such rules and regulations or to amend them in such reasonable manner, not inconsistent with the terms of this Lease, as may be deemed advisable for safety, care and cleanliness of the Premises and for preservation of good order therein.  Provided, however, Landlord shall notify Tenant of any change in such rules at least ninety (90) days before such rules are to go into effect.  All rule and regulation changes and amendments will be forwarded to Tenant in writing and shall be carried out and observed by Tenant after the effective date.

		
	ENTRY FOR REPAIRS
	      3.15  Landlord, its officers, agents, partners and representatives, and any mortgagee, 

		
	INSPECTING, ETC.
	secured party or other creditor to whom or for whose benefit a lien against the interest of Landlord in the Building has been granted as security for the payment of any indebtedness of Landlord, shall each have the right to enter into and upon the Premises at all reasonable times, or in the case of emergency at any time, to inspect the same or make such repairs or alterations as they may deem necessary or desirable.  However, such entry may only be made for a purpose reasonably related to the preservation of such party's security.  Tenant shall also permit Landlord at all reasonable times or, in case of emergency, at any time to inspect, erect, use and maintain pipes, ducts, conduits and similar devices in, above and through the Premises, and to make any necessary repairs or alterations.  Landlord shall be allowed to take all material into and upon the Premises that may be required therefor without the same constituting an eviction of Tenant in whole or in part and the rent reserved shall in no wise abate while said repairs and maintenance are being made, by reason or loss or interruption of the business of Tenant, or otherwise.  Anything to the contrary contained in this Section 3.15 notwithstanding, except in the case of any emergency, any such repairs or alterations which are made by Landlord, unless and except they are made at the request of Tenant, shall not be made at times when they would unreasonably interrupt the normal business operations of Tenant, except with prior written approval of Tenant.

SURRENDER OF              3.16  Upon any termination of this Lease, by expiration, lapse of time or otherwise:
PREMISES
		
	  
	( a )  Tenant shall immediately vacate and surrender the Premises to Landlord in good order, condition and repair, reasonable wear and tear or casualty damage to be repaired by Landlord pursuant to Section 4.9 excepted.

		
	  
	( b )  Tenant shall surrender all door keys for the Premises to Landlord.

		
	  
	( c )  Tenant grants to Landlord full authority and right to enter upon the Premises and take possession thereof.

( d )  All installations, decorations, floor covering, fixtures, additions, hardware, light fixtures, non-trade fixtures and improvements, temporary or permanent, except  movable furniture and equipment belonging to Tenant, in or upon the Premises, whether placed there by Tenant or Landlord, shall be Landlord's property and shall remain upon the Premises, all without compensation, allowance or credit to Tenant; provided, however, all such installations, decorations, etc. placed there by Tenant at Tenant’s cost may be removed by Tenant at its sole expense if such removal can be accomplished without causing damage to the Premises other than the diminution in value to the Premises attributable to the installations, decoration, etc. that are removed.  Title to any items so removed shall immediately vest in Tenant without any action on the part of Landlord being required.

		
	LIENS
	3.17   Tenant shall keep the Premises free from all liens which might arise from a third party's transaction with Tenant, including but not limited to the provision of services and the sale of goods and materials.  If such lien does arise, then Tenant shall work diligently to cause such lien to be removed, extinguished or satisfied within thirty (30) days following written notice at the expense of Tenant.

REAL ESTATE             3.18  Tenant represents that Tenant has dealt directly with, and only with the following
		
	BROKER 
	broker MOSES TUCKER REAL ESTATE, INC., Little Rock, Arkansas, (“Landlord’s Broker”) and REMAX PROPERTIES, Little Rock, Arkansas, (“Tenant’s Broker”) in connection with this Lease, and that insofar as Tenant knows, no other broker negotiated or participated in the negotiations of this Lease or submitted or showed the Premises or is entitled to any commission in connection with this Lease.  Tenant shall indemnify, defend and hold Landlord harmless from and against all costs, expenses, attorneys’ fees, liens and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under Tenant.  The foregoing indemnity shall survive the expiration or earlier termination of the Lease.

ARTICLE IV

		
	RIGHTS RESERVED
	4.1  Landlord shall have the following rights exercisable without notice or demand and 

		
	TO LANDLORD
	without liability to Tenant for damage or injury to property, persons or business (all claims for damage thereof being hereby released by Tenant), and without effecting an eviction or disturbance of Tenant's use or possession of the Premises or giving rise to any claim for setoffs or abatement of rent.

		
	  
	( a )  To name the Building and change the name or street address of the Building as set out in Section 3.8 above.

		
	  
	( b )  To install and maintain signs on the exterior and interior of the Building.

		
	  
	( c )  To retain at all times, and to use in appropriate instances, keys to all doors within and into the Premises, and Tenant shall not replace any locks without the prior written consent of Landlord except locations within the Premises as Tenant determines, in its good faith business judgment, to have restricted access in order preserve, protect and maintain the security of Tenant’s confidential or security sensitive information or equipment.  With regard to such restricted areas, Tenant shall permit Landlord and Landlord’s agents to access, and shall provide keys or cards keys as necessary to access, such areas to address emergency situations.  An emergency situation is one that poses a threat of imminent bodily harm or property damage. If Landlord makes an emergency entry into a restricted area when no authorized representative of Tenant is present, Landlord shall provide notice to Tenant as soon as reasonably possible after that entry and shall take reasonable steps to secure the restricted area until a representative of Tenant arrives at the Premises. 

.

		
	  
	( d )  To decorate, remodel, repair, alter or otherwise prepare the Premises for re-occupancy during the last six months of the term hereof, provided that Tenant shall have then vacated the Premises, or at any time after Tenant abandons the Premises.

		
	  
	( e )  To enter the Premises at reasonable hours to make inspections, or to exhibit the Premises to prospective tenants, purchasers or others, or for other reasonable purposes.

		
	  
	( f )  To have access to all mail chutes according to the rules of the United States Post Office.

		
	  
	( g )  To take all such reasonable measures as Landlord may deem advisable for the security of the Building and its occupants, including without limitation, the search of all persons entering or leaving the Building, the evacuation of the Building for cause, suspected cause, or for drill purposes, the temporary denial of access to the Building, and the closing of the Building after normal business hours and on Saturdays, Sundays and holidays, subject, however, to Tenant's right to admittance when the Building is closed after normal business hours under such reasonable regulations as Landlord may prescribe from time to time which may include by way of example but not of limitation, that persons entering or leaving the Building, whether or not during normal business hours, identify themselves to a security officer by registration or otherwise and that such persons establish their right to enter or leave the Building.

		
	  
	( h )  To approve the weight, size and location of safes, computers and other heavy articles in and about the Premises and the Building and to require all such items and other office furniture and equipment to be moved in and out of the Building and the Premises only at such times and in such manner as Landlord shall direct and in all events at Tenant's sole risk and responsibility.

      
( i )  To decorate and to make at any time or times, at its own expense, repairs, alterations, additions and improvements, structural or otherwise, in and to the Premises, the Building or part thereof as Landlord may deem necessary or desirable and to perform any acts related to the safety, protection or preservation thereof, and during such operations to take into and through the Premises or any part of the Building all material and equipment required; and to close or temporarily suspend operation of entrances, doors, corridors, elevators or other facilities, provided that Landlord shall cause only such inconvenience or annoyance to Tenant as is reasonably necessary in the circumstances.

		
	  
	( j )  To do or permit to be done any work in or about the Premises or the Building or any adjacent or nearby building, land, street or alley.

		
	  
	( k )  To grant to anyone the exclusive right to conduct any business or render any service in the Building.

		
	  
	( l )  To close the Building at 6:00 p.m. or such other reasonable time as Landlord may determine, subject, however, to Tenant's right to admittance under such regulations as shall be prescribed from time to time by Landlord and set out in the Rules of the Building, provided however, no such changes shall prohibit employees of Tenant from 24/7 access to the Building.

		
	 
	( m )  To designate and approve, prior to installation, all types of window shades, blinds, drapes, awnings, window ventilators and other similar equipment, and to approve all internal lighting that may be visible from the exterior of the Building.

		
	  
	( n )  To have and retain a paramount title to the Premises free and clear of any act of Tenant.

		
	  
	( o )  To sell, assign or transfer all of Landlord's interest in the Lease.

		
	  
	( p )  To prohibit the placing of vending or dispensing machines of any kind in or about the Premises without the prior written permission of Landlord, and to regulate the use thereof.

		
	DEFAULT
	    4.2  The following events shall be deemed to be events of default by Tenant under the Lease:

		
	  
	( a )  Tenant shall fail to pay any installment of rent hereby reserved and such failure shall continue for a period of ten days after same is due.

		
	  
	( b )  Tenant shall fail to comply with any material term, provision or covenant of this Lease, other than the payment of rent, and shall not cure such failure within thirty (30) days after written notice thereof to Tenant.

		
	  
	( c )  Tenant or any guarantor of Tenant's obligations shall make an assignment for the benefit of creditors.

( d )  Tenant or any guarantor of Tenant's obligations shall file a petition under any section or chapter of the National Bankruptcy Act, as amended, or under any similar law or statute of the United States or any state thereof; or Tenant or any guarantor of Tenant's obligations shall be adjudged bankrupt or insolvent in proceedings filed against Tenant or any guarantor of Tenant's obligations thereunder and such adjudication shall not be vacated or set aside or stayed within the time permitted by law.

		
	  
	( e )  A receiver or trustee shall be appointed for all or substantially all of the assets of Tenant or any guarantor of Tenant's obligations and such receivership shall not be terminated or stayed within the time permitted by law.

		
	  
	( f )  Tenant shall desert, vacate or abandon any substantial portion of the Premises.

( g ) Tenant shall fail to maintain any insurance that this Lease requires Tenant to maintain or shall fail to deliver any certificate of such insurance when required by this Lease. 

  Upon the occurrence of any of such events of default, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever:

  (1)  Terminate this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, by force if necessary, without being liable for prosecution or any loss and damage which Tenant may suffer by reason of such termination, whether through failure to relet the Premises on satisfactory terms or otherwise.

  (2)  Without terminating this lease, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, make such alterations and repairs as may be necessary in order to relet the Premises, and relet the Premises or any part thereof for such term and at such rental and upon such other terms and conditions as Landlord in its sole discretion may deem advisable.  Upon each such reletting, the rentals received by Landlord shall be applied:  first, to the payment of any indebtedness other than rent hereunder due from Tenant to Landlord; second, to the payment of any costs and expenses of such reletting including brokerage fees and attorney's fees and costs of such alterations and repairs; third, to the payment of any rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder.  If such rentals received from such reletting during any month shall be less than the rent to be paid during that month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord upon demand.  No such re-entry or taking of possession by Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of such intention shall be given to Tenant; and any attempt by Landlord to mitigate its claim for damages against Tenant by reletting the Premises shall not be construed as a waiver of its right to damages under this section.

  (3)  To enter upon the Premises, by force if necessary, without being liable for prosecution or any claim for damages therefor, and do whatever Tenant is obligated to do under the terms of this lease; and Tenant agrees to reimburse Landlord on demand for any expenses Landlord may incur in this effecting compliance with Tenant's obligations under this Lease, and Tenant further agrees that Landlord shall not be liable for any damages resulting to Tenant from such action, whether caused by the negligence of Landlord or otherwise.

  (4)  Upon any event of default by Tenant all unpaid rent payments due under the terms of the lease shall be due and payable immediately upon demand by Landlord.  Pursuit of any of the foregoing remedies shall not preclude pursuit of any other remedies herein provided, or any other remedies provided by law, nor shall pursuit of any remedy herein provided constitute a forfeiture or waiver of any rent due to Landlord hereunder or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants herein contained.  No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants contained in this Lease shall be deemed or construed to constitute a waiver of any other or succeeding violation or breach of any of the terms, provisions, and covenants herein contained.  Forbearance by Landlord to enforce one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default.

  Tenant agrees upon any default hereunder on the part of Landlord that Tenant shall give written notice of such default by certified mail to each holder of any mortgage, deed of trust, security agreement, assignment of this Lease or other similar instrument, at such address as is provided under Section 4.11 of this Lease, and each such holder shall have thirty (30) days after receipt of said notice to cure the default before Tenant shall have any right to terminate this Lease because of the default.

If Landlord shall default or fail to perform any obligation as required pursuant to the provisions of this Lease, and, except in an emergency situation, such failure shall continue for thirty (30) days after written notice thereof by Tenant (unless performance cannot reasonably be completed within said thirty (30) day period, but Landlord has commenced performance within such period and diligently pursues completion thereof), Tenant, at Tenant’s election may (i) perform such obligation without liability to Tenant for any loss or damage, and upon completion thereof, Landlord shall pay the reasonable cost for performing such obligation within fifteen (15) days after presentation to Landlord of a bill therefor or (ii) terminate this Lease without penalty or liability to Landlord.  In the event of an emergency, Tenant may commence to perform such obligation immediately.  If Landlord does not pay such amount within thirty (30) days after Tenant sends notice thereof, Tenant shall have the right to set-off such amount against that portion of the next monthly installment(s) of rent payable hereunder.  Tenant further agrees upon any default hereunder on the part of Landlord that Tenant shall give written notice of such default to each holder of any mortgage, deed of trust, security agreement, assignment of this Lease or other similar instrument, in the manner and at such address as is provided under Section 4.11 of this Lease, and each such holder shall have the same amount of time after receipt of said notice to cure the default before Tenant shall have any right to terminate this Lease because of the default.  The foregoing shall be in addition to and not in limitation of any other rights and remedies available to Tenant at law or in equity as a result of Landlord’s default.

		
	ESTOPPEL CERTIFICATE
	4.3  From time to time, upon not less than ten (10) days prior request by Landlord, Tenant shall execute and deliver to Landlord and to any other person designated by Landlord a written estoppel certificate in the form attached hereto as Exhibit “F”, and containing such other matters as may be reasonably requested by Landlord.

SUBORDINATION OF        4.4  This Lease and all rights of Tenant hereunder are subject and subordinate to any 
LEASE, ATTORNMENT
		
	NON DISTURBANCE
	deeds of trust, mortgages, security agreements, lease assignments or other instruments of security, as well as to any ground leases or primary leases, that now or hereafter cover all or any part of the Building, the land situated beneath the Building or any interest of Landlord therein, and to any and all advances made on the security thereof, and to any and all increase, renewals, modifications, consolidations, replacements and extensions of any of the foregoing.  This provision is hereby declared by Landlord and Tenant to be self-operative and no further instrument shall be required to effect such subordination of this Lease.  Tenant shall, however, upon demand at any time or times execute, acknowledge and deliver to Landlord any and all instruments and certificates that in the judgment of Landlord may be necessary or proper to confirm or evidence such subordination.  Notwithstanding the generality of the foregoing provisions of this Section 4.4, Tenant agrees that any such mortgagee, secured party or assignee shall have the right at any time to subordinate any such deeds of trust, mortgages, security agreements, lease assignments or other instruments of security to this Lease on such terms and subject to such conditions as they may deem appropriate in their discretion.  Provided, however, so long as Tenant is not in default in the payment of rent or in the performance of any of the terms of the Lease, Tenant's possession of the Premises and Tenant's rights and privileges under the Lease or any renewal thereof shall not be diminished or interfered with by any aforesaid mortgagee, secured party or assignee.  Landlord shall include such a non-disturbance clause in any instrument creating a lien on the Building, provided that the form thereof shall be satisfactory to the holder of such lien.  Tenant hereby irrevocably appoints Landlord as attorney in fact for Tenant with full power and authority to execute and deliver in the name of Tenant any such instruments.  Tenant agrees to pay all rent due hereunder directly to any aforesaid mortgagee, secured party or assignee, or as Tenant may be directed by the same, upon the receipt of notice from the same that Landlord is in default under their particular security instrument.  Tenant agrees in the event it is requested by such mortgagee, secured party or assignee, or any proceedings are brought for the foreclosure or enforcement of any such security instrument, to attorn to the holder of the same and to recognize them as Landlord under this Lease.  Tenant agrees to execute and deliver at any time and from time to time upon the request of Landlord any instrument, which may be necessary or appropriate in any such event to evidence such attornment.  Tenant hereby irrevocably appoints Landlord and the holder of such security instrument, or any of them, the attorney in fact for Tenant with full power and authority to execute and deliver in the name of Tenant any such instrument.  Tenant further waives the provisions of any statute or law now or hereafter in effect which may give or support to give Tenant any right to terminate or otherwise adversely affect this Lease in the event any such foreclosure proceeding is brought.  Tenant and Landlord further agree that any agreement by either of them to pay any leasing commissions in regard to the Lease shall not be enforceable against any party other than the party entering into such agreement, and such agreement shall at all times be subordinate and inferior to the lien of any aforesaid security instrument.

RENEWAL OR              4.5  No renewal or amendment of this Lease shall be binding on either party unless it 
		
	AMENDMENT
	is in writing and signed by Landlord and Tenant.

		
	HOLDING OVER
	      4.6  Should Tenant or any of its successors in interest hold over the Premises or any part thereof after the expiration of the term of this Lease with Landlord’s consent, such holding over shall constitute and be construed as a tenancy from month to month only.  In the event of a hold over without Landlord’s written consent, Tenant shall be deemed a tenant at sufferance and Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such hold over, including any claims made by any succeeding tenant founded upon such failure to surrender, and any lost profits to Landlord resulting therefrom.  Tenant will pay as liquidated damages on the first day of each month during the holdover period an amount equal to one hundred twenty five percent (125%) of the rent paid or due to be paid during the last month of the term of this Lease.  No receipt of money by Landlord from Tenant after termination of this Lease shall reinstate or extend this Lease or affect any prior notice given by Landlord to Tenant.  Any extension of this Lease shall be in writing signed by Landlord and Tenant.

		
	WAIVER OF
	4.7  As part of the consideration for this Lease, Tenant hereby releases Landlord from all 

		
	LIABILITY
	liability for damage to any property of Tenant located in or upon the Building which results from the negligence of Landlord to the extent any such loss or damage is covered by insurance maintained by Tenant.  Also, as part of the consideration for this Lease, Landlord hereby releases Tenant from all liability for damage to any property of Landlord located in or upon the Building which results from the negligence of Tenant to the extent any such loss or damage is covered by insurance maintained by Landlord.  Tenant and Landlord further covenant that any insurance maintained by either party shall contain an appropriate provision whereby the insurance company or companies consent to the foregoing mutual release of liability and so waive insurance subrogation rights to the extent of the agreement contained in this Section 4.7; provided that Landlord's release shall only be operative upon proof of insurance coverage and approval of said insurance by Landlord and its insurer.

		
	COVENANTS TO RUN
	      4.8  All covenants, conditions, agreements, and undertakings in this Lease shall extend 

		
	TO HEIRS, ETC.
	and inure to the benefit of Landlord and its successors and assigns, and to the heirs, executors, administrators, successors and assigns of Tenant the same as if they were in every case named and expressed; and except as herein otherwise provided, all said covenants, conditions and agreements shall be binding upon the successors and assigns, heirs, executors, and administrators of the respective parties.

		
	DAMAGE BY FIRE OR
	      4.9  If any part of the Premises or a material portion of the building which affects

		
	OTHER CASULATY
	 Tenant's occupancy is rendered untenantable by fire or other casualty, Landlord may elect (a) to terminate this Lease as of the date of the fire or casualty by notice to Tenant within sixty (60) days after the date, or (b) to repair, restore or rehabilitate the Building or the Premises at Landlord's expense (provided that Landlord’s obligation to repair or restore the Premises shall be limited to the extent of the insurance proceeds actually received by Landlord for the casualty in question), in which event this Lease shall not terminate but rent shall be pro-rated for that portion of the Premises that are untenantable and abated on a per diem basis for that portion of the Premises that is untenantable. If such damage is due to an act or omission of Tenant, then Landlord shall have such rights as are set forth herein at Tenant's cost and expense.  If Landlord elects so to repair, restore, or rehabilitate the Building or the Premises, said work shall be undertaken and prosecuted with all due diligence and speed.  In the event of termination of the lease pursuant to this Section 4.9, rent shall be apportioned on a per diem basis and paid to the date of the fire or casualty. 

		
	CONDEMNATION
	      4.10  If the land or the building, or any part thereof, or any interest therein, be taken by virtue of eminent domain or for any public or quasi-public use or purpose, Landlord shall have the right to terminate this Lease at the date of such taking or within six months thereafter by giving Tenant thirty (30) days' prior notice of the date of such termination.  Any interest which Tenant may have or claim to have in any award resulting from any condemnation proceedings shall be limited solely to the unamortized value of any permanent improvements to the structure of the Building paid for directly by Tenant and that portion of any award if it includes compensation for furniture, equipment or relocation expenses.  All other condemnation awards, including but not limited to any award made on the basis of the leasehold estate created by this Lease, shall be the sole and separate property of Landlord.

		
	NOTICES
	4.11  Any notice required or desired to be given in connection with this Lease shall be in writing and shall be: (1) mailed by first class, United States Mail, postage prepaid, certified, with return receipt requested, and addressed to the parties hereto at the address specified below; (2) hand delivered to the intended addressee; (3) sent by a nationally recognized overnight courier service; or (4) sent by facsimile transmission during normal business hours followed by a copy of such notice sent in another manner permitted hereunder.  All notices shall be effective upon the earlier to occur of actual receipt, one (1) business day following deposit with a nationally recognized overnight courier service, or three (3) days following deposit in the United States mail.  Such notices shall be sent to the persons at the addresses reflected below or any other persons or addresses designated in writing by any such person entitled to receive notice pursuant to the terms of this Lease:

LANDLORD:    Arkansas Democrat-Gazette, Inc.
Attn:  Property Manager
200 River Market Ave., Suite 501
Little Rock, AR 72201
Phone:  (501) 376-6555
Fax:  (501) 376-6699
  
TENANT:    Inuvo, Inc.
Attn:  Richard Howe
500 President Clinton Ave., Suite 300
Little Rock, AR 7220
Phone: 501-205-8508
Fax:
                    
It shall be the obligation of all persons entitled to receive any notice pursuant to this Lease to provide proper names and addresses to the person required to give such notice.  All persons required to give such notices shall be deemed to have satisfied their duties to give notice by giving notice to the name at the address so provided.  If no name and address is given by a mortgagee, secured party or other creditor then Tenant and Landlord have no duty to give notice to that particular mortgagee, secured party or other creditor failing to give the proper name and address until such is provided.

		
	EXHIBITS AND
	4.12  Submission of the Lease for examination does not constitute a reservation of or

		
	EFFECTIVE DATE
	 option for leasing the Premises.  The Lease becomes effective only upon execution and delivery by both Landlord and Tenant and approval by Landlord's mortgagee where such approval is required.  All exhibits and riders attached to this Lease and initialed by Landlord and Tenant are incorporated into and made a part of this Lease.

TIME                  4.13  Time is of the essence in this Lease.

		
	CAPTIONS
	4.14  The captions used in this Lease are for convenience only and do not in any way limit or amplify the terms and provisions hereof.

		
	OTHER AGREEMENTS
	      4.15   This Lease contains the entire agreement of the parties hereto with respect to the matters contained herein and no other representations, promises, or agreements, oral or otherwise, have been made between the parties.

OTHER PROVISIONS        4.16    Rent shall be in accordance with the following schedule:

	
					
	 
	 
	 
	 
	 

	 
	Rentable
	Annual
	Monthly
	Annual

	Period
	Square Feet
	Base Rate
	Amount
	Total

	Year 1
	12,245
	$14.00
	$14,285.83
	$171,429.96

	Year 2
	12,245
	$14.28
	$14,571.55
	$174,858.60

	Year 3
	12,245
	$14.57
	$14,867.47
	$178,409.64

	Year 4
	12,245
	$14.86
	$15,163.39
	$181,960.68

	Year 5
	12,245
	$15.16
	$15,469.52
	$185,634.24

		
	ELECTRICAL METERING
	4.17    Access to building standard electrical power is available.  However, any additional or upgrades of electrical power, including but not limited to additional electrical circuits, installation of auxiliary HVAC, Uninterruptible Power Source/UPS,  (the System), must be approved in writing by Landlord and paid for by Tenant.  The System's power consumption may be determined by any means mutually determined by the parties to be reasonable, accurate and efficient, including metering, sub-metering, sample measurement or other means. The meter, its installation, metering, maintenance and associated utility costs with the System, shall be at the sole expense of Tenant.

		
	FORCE MAJEURE
	4.18    Other than for Tenant’s obligations under this Lease that can be performed by the payment of money (e.g., payment of Rent and maintenance of insurance), whenever a period of time is herein prescribed for action to be taken by either party hereto, such party shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, terrorism, governmental laws, regulations, or restrictions, or any other causes of any kind whatsoever which are beyond the control of such party.

		
	HAZARDOUS MATERIALS
	4.19    Tenant shall not generate, use, treat, store, handle, release or dispose of, or permit the generation, use, treatment, storage, handling, release or disposal of Hazardous Materials (as defined by applicable law) on the Premises, or the Building, or transport or permit the transportation of Hazardous Materials to or from the Premises or the Building except for limited quantities of household cleaning products and office supplies used or stored at the Premises and required in connection with the routine operation and maintenance of the Premises, and in compliance with all applicable environmental laws.

		
	PARKING
	4.20    Prior to the Commencement Date and continuing through the Term, Landlord shall secure thirty (30) parking spaces from the City of Little Rock in the River Market Parking Deck.  Tenant shall lease the spaces back from Landlord at a cost of $65.00 per space per month plus any applicable tax.  Tenant shall pay the cost for the parking along with their Rent.  Notwithstanding anything to the contrary herein, in the event Landlord does not fulfill its obligations under this Section 4.20 Tenant may terminate this Lease without any further liability to Landlord upon thirty (30) days written notice.  From time to time, Tenant may request additional spaces and if reasonably available, Landlord will secure such additional spaces for Tenant.

 

IN TESTIMONY WHEREOF, the above named Landlord and the above named Tenant have executed this instrument on the day and year set forth above in this Lease.

LANDLORD:    

ARKANSAS DEMOCRAT-GAZETTE, INC.

By:  /s/     Charles C. VanDeventer                            
Name:     Charles C. VanDeventer

Title: Treasurer and CFO________________

Date:__4/8/15_________________________

TENANT: 

INUVO, INC.
            
By: /s/ John B. Pisaris        

Name: John B. Pisaris_______________________                                         
Title: General Counsel and Secretary

Date: 4/8/15________________________________

                            

EXHIBIT “A”

FLOOR PLAN

(THIRD FLOOR)

EXHIBIT “B”

AMERICANS WITH DISABILITIES ACT

As the Landlord of Museum Center (the “Building”), Arkansas Democrat-Gazette, Inc., (the “Landlord”) maintains the Building in a condition which it believes is in substantial compliance with all laws, including the Americans With Disabilities Act (the “ADA”).  However, as you can appreciate, it is virtually impossible to monitor “all laws” on a “daily” basis.  Therefore, the Landlord must rely on its Tenants to provide information which it believes might be relevant in assuring compliance with particular rules, regulations, ordinances, or statutes, applicable to a particular tenant’s circumstances.

Based on the above, we understand that the Tenant has been given assess to the Building, in an effort to allow the Tenant the ability to satisfy itself of the Landlord’s compliance with the ADA, in particular.  We also understand that as of the date of the lease, Tenant has determined that based on its inspection, it is not aware of any condition or circumstance which it believes would be a violation by the Landlord of the ADA.  Further, Tenant will inform Landlord immediately of any condition which it believes could be a condition of non-compliance with the ADA, at which time the Landlord will address the condition within a reasonable time period of no less than thirty (30) days from receipt of said notice.    

EXHIBIT “C”

RENEWAL OPTION
If Tenant is not then in default of its obligations under this Lease and Tenant is occupying the entire Premises at the time of such election, Tenant may renew this Lease for two (2) additional periods of five (5) years each, by delivering written notice of the exercise thereof to Landlord not  later than one hundred twenty (120) days before the expiration of the term.  The monthly rent installment payable for each month during such extended term shall be the lesser of (i) the prevailing rental rate (the “Prevailing Rental Rate”), at the commencement of such extended term, for renewals of space in the Building, of equivalent quality, size, utility and location, with the length of the extended term and the credit standing of Tenant to be taken into account, or (ii) (A) for the first renewal period, $15.46 per square foot; or (b) for the second renewal period, the price per square foot in effect during the final year of the first renewal period plus 2% (in each case, the “Carryover Rental Rate”).  Within thirty (30) days after receipt of Tenant’s notice to renew, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and shall advise Tenant of the required adjustment to the monthly rent installment, if any, and the other terms and conditions offered.  Tenant shall, within ten (10) days after receipt of Landlord’s notice, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate.  If Tenant timely notifies Landlord that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms provided in this Lease, except as follows:
(a)    The monthly rent installment shall be adjusted to the Prevailing Rental Rate or the Carryover Rental Rate;
(b)    Tenant shall have no further renewal options except as set forth above unless expressly granted by Landlord in writing; and
(c)    Landlord shall lease to Tenant the Premises in their then-current condition, and Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like) or other tenant inducements.
Tenant’s rights under this Exhibit shall terminate if (1) this Lease or Tenant’s right to possession of the Premises is properly terminated by Landlord, (2) Tenant assigns any of its interest in this Lease or sublets any portion of the Premises without the required consents, (3) Tenant fails to timely exercise its option under this Exhibit, time being of the essence with respect to Tenant’s exercise thereof.

EXHIBIT “D”

TENANT FINISH-WORK: ALLOWANCE 

1.    Acceptance of Premises.  Except as set forth in this Exhibit, Tenant accepts the Premises in their “AS-IS” condition on the date that this Lease is entered into.  
2.    Space Plans.
(a)    Preparation and Delivery.  On or before the tenth (10th) day following the date of this Lease (such earlier date is referred to herein as the “Space Plans Delivery Deadline”), Tenant shall deliver to Landlord a space plan prepared by a design consultant reasonably acceptable to Landlord (the “Architect”) depicting improvements to be installed in the Premises (the “Space Plans”).
(b)    Approval Process.  Landlord shall notify Tenant whether it approves of the submitted Space Plans within five (5) business days after Tenant’s submission thereof.  If Landlord disapproves of such Space Plans, then Landlord shall notify Tenant thereof specifying in reasonable detail the reasons for such disapproval, in which case Tenant shall, within three (3) business days after such notice, revise such Space Plans in accordance with Landlord’s objections and submit to Landlord for its review and approval.  Landlord shall notify Tenant in writing whether it approves of the resubmitted Space Plans within three (3) business days after its receipt thereof.  This process shall be repeated until the Space Plans have been finally approved by Landlord and Tenant.  If Tenant fails to timely deliver such Space Plans, then each day after the Space Plans Delivery Deadline that such Space Plans are not delivered to Landlord shall be a Tenant Delay Day (defined below).
3.    Working Drawings.
(a)    Preparation and Delivery.  On or before twentieth (20th) day following the date on which the Space Plans are approved by Landlord and Tenant (such earlier date is referred to herein as the “Working Drawings Delivery Deadline”), Tenant shall provide to Landlord for its approval final working drawings, prepared by the Architect, of all improvements that Tenant proposes to install in the Premises; such working drawings shall include the partition layout, ceiling plan, electrical outlets and switches, telephone outlets, drawings for any modifications to the mechanical and plumbing systems of the Building, and detailed plans and specifications for the construction of the improvements called for under this Exhibit in accordance with all applicable laws.  If Tenant fails to timely deliver such drawings, then each day after the Working Drawings Delivery Deadline that such drawings are not delivered to Landlord shall be a Tenant Delay Day.
(b)    Approval Process.  Landlord shall notify Tenant whether it approves of the submitted working drawings within ten (10) business days after Tenant’s submission thereof.  If Landlord disapproves of such working drawings, then Landlord shall notify Tenant thereof specifying in reasonable detail the reasons for such disapproval, in which case Tenant shall, within three (3) business days after such notice, revise such working drawings in accordance with Landlord’s objections and submit the revised working drawings to Landlord for its review and approval.  Landlord shall notify Tenant in writing whether it approves of the resubmitted working drawings within five (5) business days after its receipt thereof.  This process shall be repeated until the working drawings have been finally approved by Tenant and Landlord.  If the working drawings are not fully approved by both Landlord and Tenant by the twentieth (20th) business day after the delivery of the initial draft thereof to Landlord, then each day after such time period that such working drawings are not fully approved by both Landlord and Tenant shall constitute a Tenant Delay Day.
(c)    Landlord’s Approval; Performance of Work.  If any of Tenant’s proposed construction work will affect the Building’s structure or the Building’s systems, then the working drawings pertaining thereto must be approved by Landlord’s engineer.  Landlord’s approval of such working drawings shall not be unreasonably withheld, provided that (1) they comply with all Laws, (2) the improvements depicted thereon do not adversely affect (in the reasonable discretion of Landlord) the Building’s structure or the Building’s systems (including the Building’s restrooms or mechanical rooms), the exterior appearance of the Building, or the appearance of the Building’s Common Areas or elevator lobby areas (if any), (3) such working drawings are sufficiently detailed to allow construction of the improvements in a good and workmanlike manner, and (4) the improvements depicted thereon conform to the rules and regulations promulgated from time to time by Landlord for the construction of tenant improvements (a copy of which has been delivered to Tenant).  As used herein, “Working Drawings” shall mean the final working drawings approved by Landlord, as amended from time to time by any approved changes thereto, and “Work” shall mean all improvements to be constructed in accordance with and as indicated on the Working Drawings, together with any work required by governmental authorities to be made to other areas of the Building as a result of the improvements indicated by the Working Drawings.  Landlord’s approval of the Working Drawings shall not be a representation or warranty of Landlord that such drawings are adequate for any use or comply with any law, but shall merely be the consent of Landlord thereto.  Tenant shall, at Landlord’s request, sign the Working Drawings to evidence its review and approval thereof.  After the Working Drawings have been approved, Tenant shall cause the Work to be performed in substantial accordance with the Working Drawings.
4.    Change Orders.  Tenant may initiate changes in the Work.  Each such change must receive the prior written approval of Landlord, such approval not to be unreasonably withheld or delayed; however, (1) if such requested change would adversely affect (in the reasonable discretion of Landlord) (a) the Building’s structure or the Building’s systems (including the Building’s restrooms or mechanical rooms), (b) the exterior appearance of the Building, or (c) the appearance of the Building’s Common Areas or elevator lobby areas (if any), or (2) if any such requested change might delay the Commencement Date, Landlord may withhold its consent in its sole and absolute discretion.  Tenant shall, upon completion of the Work, furnish Landlord with an accurate architectural “as-built” plan of the Work as constructed, which plan shall be incorporated into this Exhibit D by this reference for all purposes.  If Tenant requests any changes to the Work described in the Space Plans or the Working Drawings, then such increased costs and any additional design costs incurred in connection therewith as the result of any such change shall be added to the Total Construction Costs.
5.    Definitions.  As used herein, a “Tenant Delay Day” shall mean each day of delay in the performance of the Work that occurs (a) because of Tenant’s failure to timely deliver or approve any required documentation such as the Space Plans or Working Drawings, (b) because Tenant fails to timely furnish any information or deliver or approve any required documents such as the Space Plans, Working Drawings (whether preliminary, interim revisions or final), pricing estimates, construction bids, and the like, (c) because of any change by Tenant to the Space Plans or Working Drawings, (d) because Tenant fails to attend any meeting with Landlord, the Architect, any design professional, or any contractor, or their respective employees or representatives, as may be required or scheduled hereunder or otherwise necessary in connection with the preparation or completion of any construction documents, such as the Space Plans, Working Drawings, or in connection with the performance of the Work, (e) because of any specification by Tenant of materials or installations in addition to or other than Landlord’s standard finish-out materials, or (f) because a Tenant Party otherwise delays completion of the Work.  As used herein “Substantial Completion,” “Substantially Completed,” and any derivations thereof mean the Work in the Premises has been performed in substantial accordance with the Working Drawings, as reasonably determined by Landlord (other than any details of construction, mechanical adjustment or other similar matter, the non-completion of which does not materially interfere with Tenant’s use or occupancy of the Premises).
6.    Walk-Through; Punchlist.  When Landlord considers the Work in the Premises to be Substantially Completed, Landlord will notify Tenant and within three (3) business days thereafter, Landlord’s representative and Tenant’s representative shall conduct a walk-through of the Premises and identify any necessary touch-up work, repairs and minor completion items that are necessary for final completion of the Work.  Neither Landlord’s representative nor Tenant’s representative shall unreasonably withhold his or her agreement on punchlist items.  Landlord shall use reasonable efforts to cause the contractor performing the Work to complete all punchlist items within thirty (30) days after agreement thereon; however, Landlord shall not be obligated to engage overtime labor in order to complete such items.
7.    Excess Costs.  The entire cost of performing the Work (including design of the Work and preparation of the Working Drawings, costs of construction labor and materials, electrical usage during construction, additional janitorial services, general tenant signage, related taxes and insurance costs, all of which costs are herein collectively called the “Total Construction Costs”) in excess of the Construction Allowance (hereinafter defined) shall be paid by Tenant.    In the event of default of payment of such excess costs, Landlord (in addition to all other remedies) shall have the same rights as for an Event of Default under the Lease.
8.    Construction Allowance.  Landlord shall provide to Tenant a construction allowance not to exceed $200,000.00 (the “Construction Allowance”) to be applied toward the Total Construction Costs, as adjusted for any changes to the Work.  Payment of the Construction Allowance shall be as follows:

No more frequently than once per month, Landlord shall make payments to Tenant for the work performed at the Premises during the previous month.  Each of Landlord’s progress payments shall be limited to an amount equal to the aggregate amounts theretofore paid by Tenant or for which payment by Tenant is due (as certified by Tenant’s independent architect (Such architect approved by Landlord) to Tenant’s contractors, subcontractors and material suppliers which have not been subject to previous disbursements from the Construction Allowance (provided that ten percent (10%) retainage shall be withheld from all but the final payment).  Such progress payments shall be made within five (5) business days next following the delivery to Landlord of requisitions therefor, signed by Tenant, which requisitions shall set forth the names of each contractor, subcontractor and material supplier to whom payment is due, and the amount thereof, and shall be accompanied by (A) a conditional waiver and release of lien upon progress payment in the form reasonably acceptable to Landlord from Tenant’s general contractor, and (B) a written certification from Tenant’s Architect that the work for which payment is being requested has been completed substantially in accordance with plans previously approved by Landlord.    Notwithstanding anything to the contrary set forth herein, if Tenant does not pay any contractor or supplier as required by this provision, Landlord shall have the right, but not the obligation, to promptly pay to such contractor or supplier all sums so due from Tenant, and Tenant agrees the same shall be deemed Additional Rent and shall be paid by Tenant within ten (10) days after Landlord delivers to Tenant an invoice therefor.  The final payment of the Construction Allowance (and the Additional Allowance described below, if applicable) shall be payable to Tenant only upon: (i) completion of all Work to Landlord’s satisfaction; (ii) Tenant’s delivery to Landlord of a true copy of its Certificate of Occupancy (or similar governmental occupancy permit); (iii) Landlord’s satisfaction that all bills have been paid to Tenant’s contractors, subcontractors and professionals (including without limitation final lien waivers); and (iv) Tenant’s commencement of business in the Premises.  The Construction Allowance (and the Additional Allowance, if requested within the time period set forth below) must be used within three (3) years following the Commencing Date or shall be deemed forfeited with no further obligation by Landlord with respect thereto
The Construction Allowance must be used within twelve (12) months following the Commencing Date or shall be deemed forfeited with no further obligation by Landlord with respect thereto.

9.    Construction Representatives.  Landlord’s and Tenant’s representatives for coordination of construction and approval of change orders will be as follows, provided that either party may change its representative upon written notice to the other:
		
	Landlord’s Representative:
	Arkansas Democrat-Gazette, Inc. 
c/o Moses Tucker Real Estate, Inc.

Roxanne Litchholt, Property Manager
rlitchholt@mosestucker.com
 
 
Telephone: 501-376-6555 
 

		
	Tenant’s Representative:
	 
c/o     
     
     
Telephone:     
Telecopy:    

EXHIBIT “E”

CONFIRMATION OF COMMENCEMENT DATE
_______ _______ 20__
__________________________
 
__________________________
 
__________________________
 
__________________________
Re:    Lease Agreement (the “Lease”) dated _________, 20__, between _______________ (“Landlord”), _________________(“Tenant”).  Capitalized terms used herein but not defined shall be given the meanings assigned to them in the Lease.
Ladies and Gentlemen:
Landlord and Tenant agree as follows:
1.    Condition of Premises.  Tenant has accepted possession of the Premises pursuant to the Lease.  Any improvements required by the terms of the Lease to be made by Landlord have been completed to the full and complete satisfaction of Tenant in all respects except for the punchlist items described on Exhibit A hereto (the “Punchlist Items”), and except for such Punchlist Items, Landlord has fulfilled all of its duties under the Lease with respect to such initial tenant improvements.  Furthermore, Tenant acknowledges that the Premises are suitable for the Permitted Use.
2.    Commencement Date.  The Commencement Date of the Lease is __________, 20___.
3.    Expiration Date.  The Term is scheduled to expire on the last day of the full calendar month of the Term, which date is ______________.
4.    Contact Person.  Tenant’s contact person in the Premises is:
                
Attn:

5.    Ratification.  Tenant hereby ratifies and confirms its obligations under the Lease, and represents and warrants to Landlord that it has no defenses thereto.  Additionally, Tenant further confirms and ratifies that, as of the date hereof, (a) the Lease is and remains in good standing and in full force and effect, and (b) Tenant has no claims, counterclaims, set-offs or defenses against Landlord arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant.
6.    Binding Effect; Governing Law.  Except as modified hereby, the Lease shall remain in full effect and this letter shall be binding upon Landlord and Tenant and their respective successors and assigns.  If any inconsistency exists or arises between the terms of this letter and the terms of the Lease, the terms of this letter shall prevail.  This letter shall be governed by the laws of the state in which the Premises are located.
Please indicate your agreement to the above matters by signing this letter in the space indicated below and returning an executed original to us.
Sincerely,
________________, a _________________ 
 
 
By:     
Name:     
Title:     
 

Agreed and accepted: 

INUVO, INC.
By:     
Name:     
Title:    
EXHIBIT “F”
FORM OF TENANT ESTOPPEL CERTIFICATE
The undersigned is the Tenant under the Lease (defined below) between _______________________, a ___________________, as Landlord, and the undersigned as Tenant, for the Premises on the __________ floor(s) of the building located at _____________________, __________ and commonly known as _______________________, and hereby certifies as follows:
1.    The Lease consists of the original Lease Agreement dated as of ___________, 200___ between Tenant and Landlord [‘s predecessor-in-interest] and the following amendments or modifications thereto (if none, please state “none”): ______________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.
The documents listed above are herein collectively referred to as the “Lease” and represent the entire agreement between the parties with respect to the Premises.  All capitalized terms used herein but not defined shall be given the meaning assigned to them in the Lease.
2.    The Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in Section 1 above.
3.    The Term commenced on __________________, 200__, and the Term expires, excluding any renewal options, on _____________________, 200__, and Tenant has no option to purchase all or any part of the Premises or the Building or, except as expressly set forth in the Lease, any option to terminate or cancel the Lease.
4.    Tenant currently occupies the Premises described in the Lease and Tenant has not transferred, assigned, or sublet any portion of the Premises nor entered into any license or concession agreements with respect thereto except as follows (if none, please state “none”): ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
5.    All monthly installments of rent have been paid when due through ______________.  The current monthly installment of rent is $___________________.
6.    All conditions of the Lease to be performed by Landlord necessary to the enforceability of the Lease have been satisfied and Landlord is not in default thereunder.  In addition, Tenant has not delivered any notice to Landlord regarding a default by Landlord thereunder.
7.    As of the date hereof, there are no existing defenses or offsets, or, to the undersigned’s knowledge, claims or any basis for a claim, that the undersigned has against Landlord and no event has occurred and no condition exists, which, with the giving of notice or the passage of time, or both, will constitute a default under the Lease.
8.    No rental has been paid more than 30 days in advance and no security deposit has been delivered to Landlord except as provided in the Lease.
9.    If Tenant is a corporation, partnership or other business entity, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in the state in which the Premises are located and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf of Tenant is authorized to do so.
10.    There are no actions pending against Tenant under any bankruptcy or similar laws of the United States or any state.
11.    Other than as approved by Landlord in writing and used in compliance with all applicable laws and incidental to the ordinary course of the use of the Premises, the undersigned has not used or stored any hazardous substances in the Premises.
12.    All tenant improvement work to be performed by Landlord under the Lease has been completed in accordance with the Lease and has been accepted by the undersigned and all reimbursements and allowances due to the undersigned under the Lease in connection with any tenant improvement work have been paid in full.
Tenant acknowledges that this Estoppel Certificate may be delivered to Landlord, Landlord’s mortgagee or to a prospective mortgagee or prospective purchaser, and their respective successors and assigns, and acknowledges that Landlord, Landlord’s mortgagee and/or such prospective mortgagee or prospective purchaser will be relying upon the statements contained herein in disbursing loan advances or making a new loan or acquiring the property of which the Premises are a part and that receipt by it of this certificate is a condition of disbursing loan advances or making such loan or acquiring such property.
Executed as of ________________________, 200_.
[TENANT’S SIGNATURE BLOCK],  
a      
By:     
Name:     
Title:    

BUILDING RULES AND REGULATIONS

		
	  1.
	Landlord shall provide all locks for doors in Tenant's leased area and no tenant shall alter any lock or install a new or additional bolt on any door for the Premises without prior written consent of Landlord.

		
	  2.
	Landlord will provide and maintain in the lobby of the Building an alphabetical directory of the tenants and no other directory shall be permitted without previous consent in writing by Landlord.

		
	  3.
	The Tenant shall not use the name of the Building, or any simulation or abbreviation thereof, or any name which, regardless of the spelling thereof, has the same or a similar sound as its name, or as part of its name without Landlord's prior written consent.  Tenant may use the address of the Building as the address of its business but shall not use pictures of the Building without Landlord's prior written consent.

		
	  4.
	No signs will be allowed in any form on windows inside or out, and no signs will be permitted on exterior identification pylons, if any, or in the public corridors or on corridor doors or entrances to Tenant's space, except in uniform locations and uniform styles affixed by the Landlord.   Landlord for Tenant will contract for all signs at the rate fixed by Landlord from time to time, and Tenant will be billed and will pay for such service.

		
	  5.
	Tenant will refer all contractors, contractor's representatives and installation technicians rendering any service to Tenant to Landlord for Landlord's supervision, approval and control before performance of any contractual service.   This provision shall apply to all work performed in the Building, including installation of telephones, telegraph equipment, electrical devices and attachments and installations of any nature affecting floors, walls, woodwork, trim, windows, ceilings and equipment or any other physical portion of the Building.

		
	  6.
	Movement into or out of the Building of furniture, office equipment or other bulky materials, or movement through Building entrances or lobbies shall be restricted to hours designated by Landlord.   All such movement shall be under supervision of Landlord or its agent and in the manner agreed upon in writing between Tenant and Landlord by prearrangement before performance.  Such prearrangement initiated by Tenant shall include determination by Landlord, and subject to his decision and control, of the time, method, and routing of movement, limitations imposed by safety or other matters which may prohibit any article, equipment or other item from being brought into the Building.   Tenant shall assume all risk for damage to articles moved, other property, and injury to persons or public regardless of whether they are engaged in such movement, including equipment, property and personnel of Landlord if damaged or injured as a result of acts in connection with such movement; and Landlord shall not be liable for acts of any person engaged in or damage or loss to any of said property or persons or otherwise resulting from any act in connection with such service performed for Tenant.  Tenant hereby agrees to indemnify and hold Landlord harmless from and against any such damage, injury or loss, including attorney's fees.

		
	  7.
	Tenant and its Tenant and its employees will present adequate identification when entering and/or leaving the Building on Saturday, Sunday, and holidays, and before or after normal working hours on other days.

		
	  8.
	Landlord will not be responsible for lost or stolen property, equipment, money or jewelry from the Premises or public areas regardless of whether such loss occurs where the area is secured against entry.

		
	  9.
	No portion of Premises or any other part of the Building shall at any time be used or occupied as sleeping or lodging quarters.

		
	10.
	No birds, animals or bicycles shall be brought into or kept in, about or on the Building except dogs used to assist physically impaired individuals.

		
	11.
	Tenant shall not place, install or operate on the Premises or in any part of the Building any engines, stove or machinery, or conduct mechanical operations or cook thereon or therein, or place or use in or about the premises any explosives, gasoline, kerosene, oil, acids, caustics or any other inflammable, explosive or hazardous materials without the prior written consent of the Landlord.  Notwithstanding the foregoing Tenant is permitted to use microwave ovens in the Premises.

		
	12.
	None of the entries, passages, doors or hallways shall be blocked or obstructed, or any rubbish, litter, trash or material of any nature placed, emptied or thrown into these areas or such areas be used at anytime, except for access or egress by Tenant, tenant's agents, employees or invitees.

		
	13.
	Tenant and its employees, agents and invitees, shall observe and comply with the driving and the parking signs and markers surrounding the Building.

		
	14.
	Tenant shall not overload floors and Tenant must have Landlord's prior written consent as to size, maximum weight, routing and location of business machines, safes and heavy objects.   All damage done to the Building by placing in or taking out any property of Tenant from the Building shall be repaired promptly at the expense of the Tenant.

		
	15.
	To insure orderly operation of the Building, no ice, minerals or other beverage, food, towels, newspapers, etc. shall be delivered to the Premises except by persons and at times approved by Landlord in writing.

		
	16.
	Toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than for which they were constructed, no foreign substance of any kind whatsoever shall be thrown therein, and Tenant shall bear the expense to repair any breakage, or stoppage on the Premises or otherwise caused by Tenant, its agent, employee or invitee

.
		
	17.
	Tenant shall not make any room canvass to solicit business from other Tenants in the Building and shall not exhibit, or sell or offer to sell, use, rent or exchange any item of service in or from the Premises unless ordinarily embraced within Tenant’s use of the Premises specified herein.

		
	18.
	No Tenant shall install any radio or television antenna, loudspeaker or other device on the roof or exterior walls of the Building without written consent of the Landlord.

		
	19.
	No Tenant, agent, employee, or invitee shall use a hand truck except those equipped by rubber tires and side guards.  No other vehicle of any kind shall be brought into the Building or kept in or about the Premises.

		
	20.
	Each Tenant shall store all its trash and garbage within its Premises and mark and place excess trash near the front door at the end of each business day for removal by the janitorial personnel.  No materials shall be placed in the trash boxes or receptacles if such material is of such nature that it may not be disposed of in the ordinary and customary manner of removing and disposing of trash and garbage in the City of Little Rock without being in violation of any law or ordinance governing such disposal.   All garbage and refuse disposal shall be made only through entryways and elevators provided for such purposes and at such times as Landlord shall designate.

		
	21.
	Tenant shall not permit odors to emanate from the Premises nor allow any objectionable noise to emanate from the Premises.  Tenant, its customers, invitees and guests shall not obstruct sidewalks, entrances, passages, courts, corridors, vestibules, halls, elevators and stairways in and about the Building. Tenant shall not place objects against glass partitions or doors or windows, which would be unsightly from the Building corridor or from the exterior of the Building and will promptly remove same upon notice from Landlord.

		
	22.
	Tenant shall not waste electricity, water or air conditioning and shall cooperate fully with Landlord to assure the most effective operation of the Building's heating and air conditioning and shall refrain from attempting to adjust any controls other than room thermostats installed for Tenant's use.     

		
	23.
	Tenant shall keep corridor doors closed.

		
	24.
	Peddlers, solicitors and beggars shall be reported to the building management.

		
	25.
	No person or contractor not employed by Landlord shall be used to perform janitorial work, window washing, cleaning, decorating, repair or other work on the premises without express written consent of Landlord.

		
	26.
	Tenant shall comply with all applicable federal, state, and municipal laws, ordinances and regulations and shall not directly or indirectly make any use of the Premises which may be prohibited by the same or which may be dangerous to person or property or may increase the cost of insurance or require additional insurance coverage.

		
	27.
	Tenant shall not make any improvements, alterations, additions or installations in or to the Premises without Landlord's prior written consent.  Landlord's decision to refuse such consent shall be conclusive.  If Landlord consents to such improvements, alterations, additions or installations before commencement of the work or delivery of any materials onto the Premises or into the Building, Tenant shall furnish Landlord with plans and specifications, names and addresses of contractors, copies of contracts, necessary permits and licenses and indemnification in such form and amount as may be satisfactory to Landlord and waivers of lien against any and all claims, cost, expenses, damages and liabilities which may arise in connection with the work.

		
	28.
	Tenant hereby covenants and agrees not to place or permit to be placed any lien or liens on or against the Premises, the Building and the property.   Further, Tenant does hereby waive, relinquish and disclaim any right or power to cause any lien to attach to the Landlord's interest in the Premises, the Building and the property, and Tenant does hereby agree to hold harmless, indemnify and defend Landlord from and against any such lien or liens.

		
	29.
	Landlord may waive any one or more of these rules and regulations for the benefit of any particular tenant or tenants, but no such waiver by Landlord shall be construed as a waiver of such rules and regulations in favor of any other tenant or tenants, nor prevent Landlord from thereafter enforcing any such rule and regulations against any or all of the tenants in the Building.   

		
	30.
	Smoking is prohibited in all areas of the Building.

		
	31.
	Landlord reserves the right to make additional rules and regulations which in its judgment are needed for the safety, care and cleanliness of the Building, and the preservation of good order.

		
	32.
	The use of portable space heaters is strictly prohibited.

33.    The use of burning candles is strictly prohibited.

		
	34.
	The use of live (natural) seasonal greenery is strictly prohibited, including, but not limited to trees, garland, etc.

		
	35.
	The use, exhibition or concealment of handguns is strictly prohibited in the building.  The only exceptions to the rule are those persons authorized by their job to be in possession of a firearm (i.e., police, etc.)

DAL:496861.2

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