Document:

Exhibit 10.02

 

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (the “Agreement”)
dated as of the ___ day of December, 2013, is entered into by and between Stratus Media Group, Inc., a Nevada corporation (the
“Debtor”), and Carolina Preferred High Yield Fund, LLC, a Florida limited liability company (the “Holder”).

Recitals

WHEREAS, the Holder has agreed
to purchase a $500,000 principal amount 10% secured convertible promissory note (the “Note”) from the
Debtor pursuant to the terms and conditions of the Note Purchase Agreement of even date herewith (the “Note Purchase
Agreement”).

WHEREAS, as a condition of the
Note Purchase Agreement, and in order to induce the Holder to purchase the Notes, the Debtor has agreed to grant to the Holder
a security interest in the Collateral (as hereinafter defined) to be used as security for the Secured Obligations (as defined herein)
on terms set forth herein.

NOW, THEREFORE, in consideration
of the premises set forth herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the Debtor hereby agrees with the Holder as follows:

1.           Recitals. The above recitals are true and correct and same are incorporated into this Agreement by this reference.

2.           Definition. As used herein, the term “Collateral” shall mean the Debtor’s assets
set forth on Schedule A attached hereto and incorporated herein by such reference.

3.           Security for Obligations. This Agreement secures, and the Collateral is collateral security for, the prompt payment
of all amounts due under the Note, whether at stated maturity, by prepayment, declaration, acceleration, conversion, demand or
otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under Section 363(a)
of the Bankruptcy Code, 11 U.S.C. §362(a)) (the “Secured Obligations”).

4.           Security Interests. As security for the payment and performance of the Secured Obligations, the Debtor hereby creates
and grants to the Holder, its successors and assigns, a security interest in the Collateral (the “Security Interest”).
Without limiting the foregoing, the Holder is hereby authorized to file one or more financing statements for the purpose of perfecting,
confirming, continuing, enforcing or protecting the Security Interest, naming the Debtor as debtor and the Holder as creditor.

5.           Further Assurances. Debtor agrees, at its expense, to execute, acknowledge, deliver and cause to be duly filed all
such further instruments and documents and take all such actions as the Holder may from time to time reasonably request for the
assuring and preserving of the Security Interest and the rights and remedies created hereby, including, without limitation, the
payment of any fees and taxes required in connection with the execution and delivery of this Agreement, the granting of the Security
Interest and the filing of any financing statements or other documents in connection herewith.

    	1

    	 

    

6.           Taxes; Encumbrances. At its option, the Holder may discharge past due taxes, liens, security interests or other encumbrances
at any time levied or placed on the Collateral, and may pay for the maintenance and preservation of the Collateral to the extent
Debtor fails to do so, and Debtor agrees to reimburse the Holder within five (5) business days following receipt of written notice
from the Holder, accompanied by proof of payment, for any payment made or any expense incurred by it pursuant to the foregoing
authorization; provided, however, that nothing in this Section shall be interpreted as excusing Debtor from
the performance of any covenants or other promises with respect to taxes, liens, security interests or other encumbrances and maintenances
as set forth herein.

7.           Representations, Warranties and Covenants. Debtor hereby represents, warrants, covenants and agrees as follows:

(a)               
Title and Authority. Subject to security agreements, leases or similar arrangements entered into by Debtor prior
to the execution of this Agreement, it has (i) rights in, and good and marketable title to, the Collateral and (ii) the requisite
corporate power and authority to grant to the Holder the Security Interest in such Collateral pursuant hereto and to execute, deliver
and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other person
or entity other than any consent or approval which has been obtained.

(b)              
Filing. Fully executed Uniform Commercial Code financing statements containing a description of the Collateral shall
have been or shall be delivered to the Holder in such form as requested by the Holder.

(c)               
Absence of Other Liens. Except as set forth on Schedule B, the Collateral is owned by the Debtor free and clear of
any lien or encumbrance of any nature whatsoever, except otherwise disclosed to the Holder in writing on the date hereof, and except
as previously furnished to the Debtor, no financing statement has been filed, under the Uniform Commercial Code as in effect in
any state or otherwise, covering any Collateral.

(d)              
No Conflict. None of the execution and delivery by Debtor of this Agreement and the other loan documents or the grant
and perfection of the Security Interest will (i) conflict with, violate, breach, cause a default under (with or without the giving
of notice or the passage of time), or permit an acceleration or termination of, any document, instrument, mortgage, indenture or
other agreement applicable to Debtor or to which its assets are subject, (ii) conflict with, violate or breach any applicable law,
rule, regulation or order, or (iii) conflict with, violate or breach any of the organizational documents of Debtor, the result
of which (in the case of clauses (i) and (ii) only) could be a material adverse affect upon the business, assets, condition (financial
or other) or prospects of Debtor.

    	2

    	 

    

(e)               
Survival of Representations and Warranties. All representations and warranties of the Debtor contained in this Agreement
shall survive the execution, delivery and performance of this Agreement until the termination of this Agreement.

(f)               
Exclusive Security Interest. Debtor shall not grant to any person a security interest in the Collateral, except for
the security interest created hereby.

8.           Protection of Security. Debtor shall, at its own cost and expense, take any and all actions reasonably necessary
to defend title to the Collateral, to defend the Security Interest of the Holder in such Collateral, and the priority thereof,
against any adverse lien or encumbrance of any nature whatsoever.

9.           Continuing Obligations of Debtor. Debtor shall remain liable to observe and perform all the material conditions and
obligations to be observed and performed by it under each contract, agreement, interest or obligation relating to the Collateral,
all in accordance with the terms and conditions thereof.

10.          Use and Disposition of Collateral. Debtor shall not (a) make or permit to be made any assignment, pledge or hypothecation
of the Collateral, or grant any security interest in the Collateral except for the Security Interest except to the extent that
any new security interest is subordinated to the Security Interest or (b) except in the ordinary course of business, make or permit
to be made any transfer of any Collateral.

11.          Remedies upon Default. In the event the Debtor fails to pay any of the Secured Obligations as and when due (following
the expiration of all applicable grace periods), the Holder shall have right to exercise its remedies pursuant to the Uniform Commercial
Code. The Debtor hereby waives all defenses it may have against the enforcement of this provision (whether known or unknown) and
irrevocably agrees that any claims or counterclaims it may have against the Holder shall not be deemed to be a defense against
the enforcement of this provision.

12.          Replenishment of Collateral. To the extent that the Collateral is withdrawn by the Holder in accordance with the
provisions of Section 11, above, the Debtor shall have a period of 45 days from the date of such withdrawal to replenish the Collateral
so that the Collateral is equal to the then outstanding principal amount of the Note. The Debtor’s failure to so replenish
the Collateral within such 45-day period shall constitute a default under this Agreement.

13.          Security Interest Absolute. All rights of the Holder hereunder, the Security Interest, and all obligations of the
Debtor hereunder, shall be absolute and unconditional irrespective of (a) any partial invalidity or unenforceability of the Note,
any other agreement with respect to any of the Secured Obligations or any other agreement or instrument relating to any of the
foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations,
or any other amendment or waiver of or consent to any departure from the Note or any other agreement or instrument, (c) any exchange,
release or non-perfection of any other Collateral, or any release or amendment or waiver of or consent to or departure from any
guarantee, for all or any of the Secured Obligations, or (d) any other circumstance which might otherwise constitute a defense
available to, or discharge of the Debtor in respect of the Secured Obligations or in respect of this Agreement.

    	3

    	 

    

14.          No Waiver. No failure on the part of the Holder to exercise, and no delay in exercising, any right, power or remedy
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy by the
Holder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder
are cumulative and are not exclusive of any other remedies provided by law. The Holder shall not be deemed to have waived any rights
hereunder or under any other agreement or instrument unless such waiver shall be in writing and signed by such parties.

15.          Holder Appointed Attorney-in-Fact. Debtor hereby appoints Siskey Industries, LLC, the Manager of the Holder, the
attorney-in-fact of Debtor solely for the purpose of carrying out the provisions of this Agreement and taking any action and executing
any instrument which the Holder may reasonably deem necessary to accomplish the purposes hereof, which appointment is irrevocable
so long as this Agreement and the Security Interest have not been terminated.

16.          Waiver of Equitable Subordination. Each of the parties hereto waives any and all rights it may have to assert a claim
for or to raise the defense of equitable subordination in any legal action or proceeding arising from this Agreement or the Note.

17.          Binding Agreement; Assignments. This Agreement, and the terms, covenants and conditions hereof, shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that the Debtor shall not
be permitted to assign this Agreement or any interest herein or in the Collateral, or any part thereof, or any cash or property
held by the Holder as Collateral under this Agreement, except as contemplated by this Agreement.

18.          Governing
Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Nevada, except to the extent
that the validity or perfection of the security interest hereunder, or remedies hereunder, in respect of any particular collateral
are governed by the laws of a jurisdiction other than the State of Nevada.

19.          Notices. All communications and notices hereunder shall be in writing and given as provided in the Note.

20.          Severability. In case any one or more of the provisions contained in this Agreement should be invalid, illegal or
unenforceable the remaining provisions contained herein shall not in any way be affected or impaired.

21.          Section Headings. Section headings used herein are for convenience only and are not to affect the construction of,
or to be taken into consideration in interpreting, this Agreement.

    	4

    	 

    

22.          Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original,
but all of which, when taken together, shall constitute but one instrument. This Agreement shall be effective when a counterpart
that bears the signature of the Debtor shall have been delivered to the Holder.

23.          Termination. This Agreement and the Security Interest shall terminate when all the Secured Obligations have been
fully and indefeasibly paid in full, at which time the Holder shall execute and deliver to the Debtor all Uniform Commercial Code
termination statements and similar documents which the Debtor shall reasonably request to evidence such termination; provided,
however, that all indemnities of the Debtor contained in this Agreement shall survive, and remain operative and in full
force and effect regardless of, the termination of this Agreement for a period of six months following the termination of this
Agreement.

24.          Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes any prior or
contemporaneous oral or written agreement or representation between them with regard to the subject matter hereof. This Agreement
may not be modified except by a writing signed by each of the parties hereto.

IN WITNESS WHEREOF, the parties
hereto have duly executed this Security Agreement as of the day and year first above written.

	 	DEBTOR:
	 	 
	 	Stratus Media Group, Inc.

 

	 	By:_______________________________
	 	Name:_____________________________
	 	Title:______________________________
	 	 
	 	 
	 	HOLDER:
	 	 
	 	Carolina Preferred High Yield Fund, LLC
	 	By: Siskey Industries, LLC, Manager
	 	 
	 	By:_______________________________
	 	Todd D. Beddard, President

 

 

    	5

    	 

    

  

Schedule A

 

Collateral

 

“Collateral” means
all of the Company’s right, title and interest in, to and under all personal property and other assets, whether now owned
by or owing to, or hereafter acquired by or arising in favor of the Company (including under any trade names, styles or derivations
thereof) and whether owned or consigned by or to, or leased from or to, the Company, and regardless of where located, and any and
all proceeds or products of (or additions or accessories to) any of the foregoing.

	Dated:	
        STRATUS MEDIA GROUP, INC. 

         

        By:______________________________

      Name:

      Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	6Exhibit 10.03

 

SISKEY CAPITAL, LLC

4521 Sharon Road, Suite 450

Charlotte, NC 28211

December 18, 2013

 

 

Mr. Jerold Rubinstein

Chief Executive Officer

Stratus Media Group, Inc.

1800 Century Park East, 6th Floor

Los Angeles, California 90067

 

Re:Advisory Agreement

 

Dear Mr. Rubinstein:

 

Pursuant to this Advisory Agreement (“Agreement’)
Stratus Media Group, Inc., a Nevada corporation (the “Client’) has agreed to engage Siskey Capital, LLC, a North
Carolina limited liability company (“SCAP’) on a non-exclusive basis to perform services related to financial
consulting matters pursuant to the terms and conditions set forth herein.

1.    Services.
SCAP shall act as advisor to the Client and perform, as requested by the Client, the following services (the “Services’):

		·	new business support, including identifying
and introducing potential strategic partners to the Client;

 

		·	in-depth consultations to the Client’s
senior management to determine the amount and structure of the capital sought by the Client,

 

		·	evaluations of competitors and development
of strategies to increase the Client’s competitiveness,

 

		·	the continuing strategic analysis of the
Client’s business objectives and balancing these objectives with the expectations ofthe financial markets; and

 

		·	the implementation of a strategic plan
for the Client, with a view towards enabling the Client to achieve its financial goals, marketing, business development.

2.    Performance of Services.
SCAP shall be obligated to provide the Services as and when requested by Client and shall not be authorized or obligated to perform
any Services on SCAP’s own initiative. The Services shall be performed reasonably promptly after Client’s request,
consistent with SCAP’s availability. It is understood that the Services to be provided hereunder are not exclusive to the
Client and SCAP has other business obligations, including acting as consultant for other companies, provided, however, that SCAP
shall not provide services to any potential or actual competitor of the Client during the Term (as hereinafter defined) of this
Agreement.

    	1

    	 

    

3.    Relationship
of the Parties. SCAP shall be, and at all times during the Term of the Agreement, remain an independent contractor. As such,
SCAP shall determine the means and methods of performing the Services hereunder and shall render the Services at such places it
determines The Client shall pay all reasonable costs and expenses incurred by SCAP in the performance of its duties hereunder,
provided, however, such costs and expenses shall not exceed $250.00 without Client’s prior written approval.

4.    Assurances.
Client acknowledges that all opinions and advices (written or oral) given by SCAP to the Client in connection with this Agreement
are intended solely for the benefit and use of Client, and Client agrees that no person or entity other than Client shall be entitled
to make use of or rely upon the advice of SCAP to be given hereunder. Furthermore, no such opinion or advice given by SCAP shall
be used at any time, in any manner or for any purpose, and shall not be reproduced, disseminated, quoted or referred to at any
time, in any manner or for any purpose, except as may be contemplated herein. Client shall not make any public references to SCAP
without SCAP’s prior written consent or as required by applicable law.

5.    Compensation.

(a) As
compensation for the Services to be performed by SCAP hereunder, SCAP shall receive a retainer in the form of 3,300,000
shares (the “Shares”) of the Client’s Common Stock shall be issued to SCAP or its designees
following the execution of this Agreement. Such compensation shall be deemed earned on January 1, 2014. A value of $33,000
shall be considered as full payment for the Services to be rendered under this three-year Agreement. SCAP agrees to pay all
taxes, federal and state, relating to this Agreement. SCAP agrees to indemnify the Client for any claim for unpaid taxes
which might arise from the receipt of Shares. The Client shall pay all fees of counsel in connection with opinions which may
be required for the resale of the Shares by SCAP pursuant to applicable Federal securities laws, and agrees to promptly
cooperate with in all such requests.

(b)SCAP is an accredited investor
as that term is defined in the Securities Act of 1933, as amended (the “Act’). SCAP acknowledges its understanding
that neither the Shares are not registered under the Act or any state securities laws. SCAP represents that the Shares are being
acquired for SCAP’s own account, for investment purposes only and not with a view for distribution or resale to others. SCAP
agrees that it will not sell or otherwise transfer the Shares unless the Shares are registered under the Act or unless in the opinion
of counsel an exemption from such registration is available. SCAP further acknowledges its understanding that the Client will place
a restrictive legend on the certificates representing the Shares.

6.    Additional
Services. Should Client desire SCAP to perform additional services not outlined herein, Client may make such request to SCAP
in writing. SCAP may agree to perform those services at its sole discretion. However, any additional services performed by SCAP
may require an additional compensation schedule to be mutually agreed upon prior to rendering such services.

7.    Term.
This Agreement shall be binding upon all parties when executed by the Client and remain in effect until December 31,2014 unless
otherwise mutually agreed upon in writing by Client and SCAP (the “Term”).

    	2

    	 

    

8.    Due Diligence/
Disclosure.

(a)Client recognizes and confirms
that, in advising Client and in fulfilling its retention hereunder, SCAP will use and rely upon data, material and other information
furnished to it by Client. Client acknowledges and agrees that in performing its Services under this Agreement, SCAP may rely upon
the data, material and other information supplied by Client without independently verifying the accuracy, completeness or veracity
of it.

(b)Except as contemplated by the
terms hereof or as required by applicable law, SCAP shall keep confidential, indefinitely, all non-public information provided
to it by Client, and shall not disclose such information to any third party without Client’s prior written consent, other
than such of its employees and advisors as SCAP reasonably determines to have a need to know.

9.    Indemnification.

(a)Client shall indemnify and hold
SCAP, its officers, directors, employees, agents, and affiliates, harmless against any and all liabilities, claims, lawsuits, including
any and all awards and/ or judgments to which it may become subject under the Act or the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) or any other federal or state statute, at common law or otherwise, insofar as said liabilities,
claims and lawsuits, (including awards and/ or judgments) arise out of or are in connection with the Services rendered by SCAP
in connection with this Agreement, except for any liabilities, claims, and lawsuits (including awards, judgments and related costs
and expenses), arising out of acts or omissions of SCAP. In addition, the Client shall indemnify and hold SCAP harmless against
any and all reasonable costs and expenses, including reasonable attorney fees, incurred or relating to the foregoing. If it is
judicially determined that Client will not be responsible for any liabilities, claims and lawsuits or expenses related thereto,
the indemnified party, by his or its acceptance of such amounts, agrees to repay Client all amounts previously paid by Client to
the indemnified person and will pay all costs of collection thereof, including but not limited to reasonable attorney’s fees
related thereto. SCAP shall give Client prompt notice of any such liability, claim or lawsuit, which SCAP contends is the subject
matter of Client’s indemnification and SCAP thereupon shall be granted the right to take any and all necessary and proper
action, at its sole cost and expense, with respect to such liability, claim and lawsuit, including the right to settle, compromise
and dispose of such liability, claim or lawsuit, excepting there from any and all proceedings or hearings before any regulatory
bodies and/ or authorities.

(b)SCAP shall indemnify and hold
Client and its directors, officers, employees and agents harmless against any and all liabilities, claims and lawsuits, including
and all award and/ or judgments to which it may become subject under the Act, the Exchange Act or any other federal or state statute,
at common law or otherwise, insofar as said liabilities, claims and lawsuits (including awards and/or judgments) that may arise
out of or are based upon SCAP’s gross negligence or willful misconduct, or any untrue statement or alleged untrue statement
of a material fact or omission of a material fact required to be stated or necessary to make the statement provided by SCAP not
misleading, which statement or omission was made in reliance upon information furnished in writing to Client by or on behalf of
SCAP for inclusion in any registration statement or prospectus or any amendment or supplement thereto in connection with any transaction
to which this Agreement applies. In addition, SCAP shall also indemnify and hold Client harmless against any and all costs and
expenses, including reasonable attorney fees, incurred or relating to the foregoing. Client shall give SCAP prompt notice of any
such liability, claim or lawsuit which Client contends is the subject matter of SCAP’s indemnification and SCAP thereupon
shall be granted the right to take any and all necessary and proper action, at its sole cost and expense, with respect to such
liability, claim and lawsuit, including the right to settle, compromise or dispose of such liability, claim or lawsuit, excepting
therefrom any and all proceedings or hearings before any regulatory bodies and/ or authorities.

    	3

    	 

    

(c)The indemnification provisions
contained in this Section are in addition to any other rights or remedies which either party hereto may have with respect to the
other or hereunder.

10.    General Provisions.

(a)Entire Agreement. This
Agreement between Client and SCAP constitutes the entire agreement between and understandings of the parties hereto, and supersedes
any and all previous agreements and understandings, whether oral or written, between the parties with respect to the matters set
forth herein.

(b)Notice. Any notice or communication
permitted or required hereunder shall be in writing and deemed sufficiently given if hand-delivered: (i) five (5) calendar days
after being sent postage prepaid by registered mail, return receipt requested; or (ii) one (1) business day after being sent via
facsimile with confirmatory notice by U.S. mail, to the respective parties as set forth above, or to such other address as either
party may notify the other in writing.

(c)Binding Nature. This Agreement
shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors, legal representatives
and assigns. All materials generated pursuant to this Agreement or otherwise produced by SCAP for and on behalf of Client during
the Term of this Agreement shall be the sole and exclusive property of Client.

(d)Counterparts. This Agreement
may be executed by any number of counterparts, each of which together shall constitute the same original document.

(e)Amendments. No provisions
of the Agreement may be amended, modified or waived, except in writing signed by all parties hereto.

(f)Assignment. This Agreement
cannot be assigned or delegated, by either party, without the prior written consent of the party to be charged with such assignment
or delegation, and any unauthorized assignments shall be null and void without effect and shall immediately terminate the Agreement.

(g)Applicable Law. This Agreement
shall be construed in accordance with and governed by the laws of the State of North Carolina, without giving effect to its conflict
of law principles. The parties hereby agree that any dispute(s) or claim(s) with respect to this Agreement of the performance of
any obligations thereunder, shall be settled by arbitration and commenced and adjudicated under the rules of the American Arbitration
Association. The arbitration shall take place in Charlotte, North Carolina if commenced by either party. The arbitration shall
be conducted before a panel of three (3) arbitrators, one appointed by each of the parties and the third selected by the two (2)
appointed arbitrators. The arbitrators in any arbitration proceeding to enforce this Agreement shall allocate the reasonable attorney’s
fees, among one or both parties in such proportion as the arbitrators shall determine represents each party’s liability hereunder.
The decision of the arbitrator shall be final and binding and may be entered into any court having proper jurisdiction to obtain
a judgment for the prevailing party. In any proceeding to enforce an arbitration award, the prevailing party in such proceeding
shall have the right to collect from the non-prevailing party, its reasonable fees and expenses incurred in enforcing the arbitration
award (including, without limitation, reasonable attorney’s fees).

    	4

    	 

    

If you are in agreement with the foregoing,
please execute two copies of this Agreement in the space provided below and return them to the undersigned.

Very truly yours,

 

Siskey Capital, LLC

 

 

By:_________________________

      Todd D. Beddard

      Chief Operating Officer

 

 

ACCEPTED AND AGREED TO THIS _____ DAY OF DECEMBER, 2013

 

Stratus Media Group, Inc.

 

By:_________________________

Jerold Rubinstein

Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

    	5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]