Document:

Unassociated Document

    Exhibit
10.13

    

    LATIGO
SHORE MUSIC, INC.

    (a
delaware corporation)

    

    

    
      
        

      

    

     

    6%
secured Subordinated convertible Promissory Note

     

    

      
 

    

    NEITHER
THIS NOTE NOR THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF AS PROVIDED
HEREIN HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
UNDER THE LAWS OF ANY STATE OR OTHER JURISDICTION. TRANSFER OF THIS NOTE AND
SUCH SECURIITES IS RESTRICTED PURSUANT TO SUCH LAWS.

    

    

    
      	
              $16,000.00

            	
              Bell
      Canyon, California

              December
      17, 2010

            

    

     

    
      
        	
                1.

              	
                Note.  FOR
      VALUE RECEIVED, LATIGO SHORE MUSIC, INC., a Delaware corporation (the
      “Company” or the “Borrower”), hereby promises to pay to the order of
      Brooktide, LLC (the “Holder”) the amount of $16,000.00 on demand (“Due
      Date”) and to pay interest at the rate of six (6 %) per annum on the
      outstanding principal. Interest payments shall be made with principal on
      the due date, to the Holder in lawful money of the United States at, 123
      West Nye Lane, #510, Carson City, NV 89706 or at such other place as the
      Holder may specify in
writing.

              

      

    

    

    
      	
               
      

            	
              1.1

            	
              This
      Note shall be secured by certain assets of the Company (as defined herein)
      and evidenced by a Security Agreement dated as of this date and attached
      hereto.

            

    

    

    
      	
              2.

            	
              Default.  In the
      event of an occurrence of any event of default specified below, the
      principal and all accrued interest on the Note shall become immediately
      due and payable without notice, except as specified below. The occurrence
      of any of the following events shall constitute an event of default under
      this Note:

            

    

    

    
      	
               
      

            	
              2.1

            	
              The
      Company fails to make any payment hereunder when due, which failure has
      not been cured within thirty (30) days following such
    failure.

            

    

    

    
      	
               
      

            	
              2.2

            	
              If
      the Borrower shall file a petition to take advantage of any insolvency
      act; make an assignment for the benefit of its creditors; commence a
      proceeding for the appointment of a receiver, trustee, liquidator or
      conservator of itself of a whole or any substantial part of its property;
      file a petition or answer seeking reorganization or arrangement or similar
      relief under the federal bankruptcy laws or any other applicable law or
      statute of the United States of America or any state;
    or

            

    

    

    
      	
               
      

            	
              2.3

            	
              If
      a court of competent jurisdiction shall enter an order, judgment or decree
      appointing a custodian, receiver, trustee, liquidator or conservator of
      the Borrower or of the whole or any substantial part of its properties, or
      approve a petition filed against the Borrower seeking reorganization or
      arrangement or similar relief under the federal bankruptcy laws or any
      other applicable law or statute of the United States of America or
      any state; or if, under the provisions of any other law for the relief or
      aid of debtors, a court of competent jurisdiction shall assume custody or
      control of the Borrower or of the whole or any substantial part of its
      properties; or if there is commenced against the Borrower any proceeding
      for any of the foregoing relief and such proceeding or petition remains
      undismissed for a period of thirty (30) days; or if the Borrower by any
      act indicates its consent to or approval of any such proceeding or
      petition; or

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              2.4

            	
              If
      (i) any judgment remaining unpaid, unstayed or undismissed for a
      period of sixty (60) days is rendered against the Borrower which by itself
      or together with all other such judgments rendered against the Borrower
      remaining unpaid, unstayed or undismissed for a period of sixty (60) days,
      is in excess of $100,000, or (ii) there is any attachment or
      execution against the Borrower’s properties remaining unstayed or
      undismissed for a period of sixty (60) days which by itself or together
      with all other attachments and executions against the Borrower’s
      properties remaining unstayed or undismissed for a period of 60 days is
      for an amount in excess of
$100,000.00.

            

    

    

    
      	
               
      

            	
              2.5

            	
              If
      the Borrower creates, incurs, assumes or suffers to exist any Liens
      securing indebtedness, except for any liens that may be granted to secure
      this Note.

            

    

    

    3.           Conversion –
Holder

    

    
      	
               
      

            	
              3.1

            	
              Conversion
      Rights.  At any
      time from the date hereof the Holder will have the right, at its option,
      to convert the Note into Shares of Common Stock of the Company (the
      “Shares”) at the conversion rate then in
effect.

            

    

    

    
      	
               
      

            	
              The
      initial conversion rate is seventy-five cents ($.75) per share or 21,333
      Shares if the entire Note was converted, subject to adjustments in certain
      events. No fractional Share or scrip representing a fractional Share will
      be issued upon conversion of the Notes. Cash will be paid in lieu of any
      fractional Shares equal to the then current market value of such
      fractional Share.

            

    

    

    
      	
               
      

            	
              The
      conversion rate will be appropriately adjusted if the Company
      (a) pays a dividend or makes a distribution on its Shares of Common
      Stock which is paid or made in Shares of Common Stock, (b) subdivides
      or reclassifies its outstanding Shares of Common Stock, (c) combines
      its outstanding Shares of Common Stock into a smaller number of Shares of
      Common Stock, (d) issues Shares of Common Stock, or issues rights or
      warrants to all Holders of its Common Stock entitling them to subscribe
      for or purchase Shares of Common Stock (or securities convertible into
      Common Stock), at a price per Share less than $.75 per Share, or
      (e) distributes to all Holders of its Common Stock evidences of its
      indebtedness or assets (excluding any dividend paid in cash out of legally
      available funds) subject to the limitation that adjustments by reason of
      any of the foregoing need not be made until they result in a cumulative
      change in the conversion rate of at least five percent (5%). The
      conversion rate will not be adjusted upon the conversion of presently
      outstanding stock options or
warrants.

            

    

    

    
      	
               
      

            	
              In
      case of any consolidation or merger to which the Company is a party other
      than a merger or consolidation in which the Company is the surviving
      corporation, or in case of any sale or conveyance to another corporation
      of the property of the Company as an entirety or substantially as an
      entirety, or in case of any statutory exchange of securities with another
      corporation, there will be no adjustment of the conversion price, but each
      Holder of the Notes then outstanding will have the right thereafter to
      convert such Notes into the kind and amount of securities, cash or other
      property which he would have owned or have been entitled to receive
      immediately after such consolidation, merger, statutory exchange, sale or
      conveyance had such Notes been converted immediately prior to the
      effective date of such consolidation, merger, statutory exchange, sale or
      conveyance. In the case of a cash merger of the Company into another
      corporation or any other cash transaction of the type mentioned above, the
      effect of these provisions would be that the conversion features of the
      Notes would thereafter be limited to converting the Notes at the
      conversion price in effect at such time into the same amount of cash per
      Share that such Holder would have received had such Holder converted the
      Notes into Common Stock immediately prior to the effective date of such
      cash merger or transaction.

            

    

    

    
      	
               
      

            	
              3.2

            	
              Mechanics
      of Conversion.

            

    

    

    
      	
               
      

            	
              The
      Note may be converted upon a notice to the Company from the Note holder
      and surrender of the Note at any time from the date hereof, at the offices
      of the Company, 31 Roundup Road, Bell Canyon, CA 91307, with the form of
      “Notice of Conversion” duly completed and executed as indicated. Shares of
      Common Stock issued upon conversion will be fully paid and
      non-assessable.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
              4.

            	
              Prepayment.  Borrower
      may prepay any or all amounts due under this Note at any time from the
      date of this Note at one hundred percent (100%) of the principal amount of
      the Note together with accrued interest; provided, however, that Borrower,
      as a condition to prepayment of some or all of the balance hereof, shall
      deliver written notice of its intention to prepay at least thirty (30)
      calendar days prior to the date of such prepayment (“Prepayment
      Date”).

            

    

    

    5.           Collateral.

    

    
      	
               
      

            	
              5.1

            	
              To
      secure payments under the Note and of any liability or liabilities of the
      Borrower to the Holder, due or to become due, the Borrower hereby grants
      to the Holder, a secured interest in  all of
      Borrower’s  right, title and interest in the Harju Catalog,
      described in that certain Security Agreement executed by the Borrower as
      of the date hereof  (the
  “Collateral”).

            

    

    

    
      	
               
      

            	
              5.2

            	
              Borrower
      agrees to execute and deliver additional documents as deemed required by
      Holder to secure or otherwise perfect Holder’s security interest in the
      Collateral granted hereunder, including a UCC financing
      statement.

            

    

    

    
      	
              6.

            	
              Subordination.  Indebtedness
      evidenced by the Note will be subordinated in right of payment to the
      prior payment in full of all existing and future Senior Indebtedness of
      the Company. Senior Indebtedness is defined as the principal of (and
      premium, if any) and unpaid interest or accrued original issue discount on
      and other amounts due on or in connection with any Debt (as defined below)
      incurred, assumed or guaranteed by the Company, whether outstanding on the
      date of the issuance of the Note or thereafter incurred, assumed or
      guaranteed and all renewals, extensions and refunding of any such Debt;
      provided, however, that the following will not constitute Senior
      Indebtedness:

            

    

    

    
      	
               
      

            	
              (i)

            	
              any
      Debt as to which, in the instrument creating or evidencing the same or
      pursuant to which the same is outstanding, it is expressly provided that
      such Debt is subordinate in right of payment to all other debt of the
      Company not expressly subordinated to such
Debt;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              any
      Debt which by its terms refers explicitly to the Note and states that such
      Debt shall not be senior in right of payment
  thereto;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              any
      Debt of the Company in respect of the
Note;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              any
      Debt of the Company to any Subsidiary of the Company;
  and

            

    

    

    
      	
               
      

            	
              (v)

            	
              any
      Debt of the Company to any joint venture or partnership, which joint
      venture or partnership is required, under generally accepted accounting
      principles, to be consolidated in the Company’s consolidated financial
      statements.

            

    

    

    
      	
               
      

            	
              Debt
      is defined to mean, with respect to any person at any date, without
      duplication:

            

    

    

    
      
        	
                 
      

              	
                (i)

              	
                all
      obligations of such person for borrowed money,

              
	 	 	 
	 	      
                (ii)

              	      
                all
      obligations of such person evidenced by bonds, debentures, note or other
      similar instruments,

              

      

       

    

    
      	
               
      

            	
              (iii)

            	
              all
      Debt of others secured by a lien on any asset of such person, whether or
      not such Debt is assumed by such
person,

            

    

    

    
      	
               
      

            	
              (iv)

            	
              all
      Debt of others for the payment, of which such person is responsible or
      liable as obligor or guarantor,

            

    

    

    
      	
               
      

            	
              (v)

            	
              all
      obligations of such person in respect of letters of credit or other
      similar instruments (or reimbursement obligations with respect
      thereto),

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (vi)

            	
              all
      obligations of such person to pay the deferred purchase price of property
      or services, except Trade Payables,
and

            

    

    

    
      	
               
      

            	
              (vii)

            	
              all
      reimbursement, reserve funding and other obligations of such person in
      respect of surety bonds executed by such person or at the request of and
      for the benefit of such person.

            

    

    

    By reason
of such subordination, in the event of dissolution, insolvency, bankruptcy or
other similar proceedings, upon any distribution of assets, (i) holders of
Senior Indebtedness will be entitled to be paid in full before payments may be
made on the Note, and the Holder of the Note will be required to pay over their
share of such distribution to the holder of Senior Indebtedness until such
Senior Indebtedness is paid in full and (ii) creditors of the Company who
are neither holders of Notes nor holders of Senior Indebtedness may recover
less, ratably, than holders of Senior Indebtedness and may recover more,
ratably, than the Holder of the Note.

    

    
      	
              7.

            	
              Securities
      Law Compliance.  The Holder understands that the right of
      conversion of this Note is subject to full compliance with the provisions
      of all applicable securities laws and the availability thereunder upon any
      conversion of any exemption from registration thereunder for such
      conversion, and that the certificate or certificates evidencing such Note
      will bear a legend to the following
effect:

            

    

    

    “THE
SECURITIES EVIDENCED HEREBY MAY NOT BE TRANSFERRED WITHOUT (i) THE OPINION
OF COUNSEL SATISFACTORY TO THIS CORPORATION THAT SUCH TRANSFER MAY LAWFULLY BE
MADE WITHOUT REGISTRATION UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED,
OR (ii) SUCH REGISTRATION.”

    

    
      	
              8.

            	
              Notices.
      Any notice herein required or permitted to be given shall be in writing
      and may be personally served, sent by United States Mail, certified,
      or by overnight delivery service. For the purposes hereof, the address of
      the Holder and the address of the Company shall be as reflected in the
      Subscription Agreement between the Holder and the Company of even date
      herewith. Both the Holder and the Company may change the address for
      service by written notice to the other as herein
  provided.

            

    

    

    
      	
              9.

            	
              No Waiver
      Rights and Remedies Cumulative.  No failure on the part
      of the Holder to exercise, and no delay in exercising any right hereunder
      shall operate as a waiver thereof; nor shall any single or partial
      exercise by the Holder of any right hereunder preclude any other or
      further exercise thereof or the exercise of any other right. The rights
      and remedies herein provided are cumulative and not exclusive of any
      remedies or rights provided by law or by any other agreement between the
      Borrower and the Holder.

            

    

    

    
      	
              10.

            	
              Amendments.  No
      amendment, modification or waiver of any provision of this Note nor
      consent to any departure by the Holder therefrom shall be effective unless
      the same shall be in writing and signed by the Holder and then such waiver
      or consent shall be effective only in the specific instance and for the
      specific purpose for which given.

            

    

    

    
      	
              11.

            	
              Successors
      and Assigns.  This Note shall be binding upon the
      Borrower and its successors and assigns and the terms hereof shall inure
      to the benefit of the Holder and its successors and assigns, including
      subsequent holders hereof.

            

    

    

    
      	
              12.

            	
              Severability.  The
      provisions of this Note are severable, and if any provision shall be held
      invalid or unenforceable in whole or in part in any jurisdiction, then
      such invalidity or unenforceability shall not in any manner affect such
      provision in any other jurisdiction or any other provision of this Note in
      any jurisdiction.

            

    

    

    
      	
              13.

            	
              Waiver of
      Notice.  The Borrower hereby waives presentment, demand
      for payment, notice of protest and all other demands in connection with
      the delivery, acceptance, performance, default or enforcement of this
      Note.

            

    

    

    
      	
              14.

            	
              Governing
      Law.  This Note has been executed in and shall be
      governed by the laws of the State of
California.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      	
              15.

            	
              Note Holder
      is Not a Shareholder.  No Holder of this Note, solely by
      virtue of the ownership of this Note, shall be considered a shareholder of
      the Company for any purpose, nor shall anything in this Note be construed
      to confer on any Holder of this Note any rights of a shareholder of the
      Company including, without limitation, any right to vote, give or withhold
      consent to any corporate action, receive notice of meetings of
      shareholders or receive dividends.

            

    

    

    
      	
              16.

            	
              Exchange
      and Replacement of Note.  Upon surrender of this Note to
      the Borrower, the Borrower shall execute and deliver, at its expense, one
      or more new Notes of such denominations and in such names, as requested by
      the holder of the surrendered Note. Upon receipt of evidence satisfactory
      to the Company of the loss, theft, mutilation, or destruction of any Note,
      the Borrower will make and deliver a new Note of like tenor at the request
      of the holder of such Note.

            

    

    

    

    IN WITNESS WHEREOF, the Company has
caused this Note to be signed by its authorized officers as of the 17th day of
December, 2010.

    

    

    
      	 
      	 
      	
              LATIGO
      SHORE MUSIC, INC.

            
	 
      	 
      	
               

              By:          /s/ Steve
      Dorff                              
      

              Steve Dorff, Chief Executive
      OfficerUnassociated Document

    Exhibit
10.14

     

    SECURITY
AGREEMENT

    

    This Security Agreement (this
"Agreement") is made and entered into this 17th day of December 2010, by and
between Brooktide, LLC, a Nevada limited liability company ("Lender") , and
Latigo Shore Music, Inc., a Delaware corporation ("Borrower”), in respect of the
following:

    

    RECITALS

    

    A.           Borrower
is obligated to Lender under that certain Convertible Note (the "Note") in the
principal sum of Sixteen Thousand Dollars ($16,000.00), with interest at the
rate of six percent (6.0%) per annum.

    

    B.           Borrower
and Lender desire for Borrower to provide to Lender, as additional security for
Borrower's obligations arising under the Note, and to induce Lender to make the
loan evidenced by the Note, the security interest hereinafter set
forth.

    

    AGREEMENT

    

    NOW, THEREFORE, in
consideration of the foregoing and the mutual promises, covenants, terms and
conditions contained herein, Borrower and Lender hereby agree as
follows:

    

    1.           Grant of Security
Interest.  Borrower hereby grants to Lender, their respective
successors and assigns, a security interest in all of its rights, title and
interest in 50 musical compositions from the Gary Harju music catalog, including
copyrights and publishing rights, together with any additions, attachments, and
accessions that may be placed thereon or products or proceeds thereof (together,
the "Collateral").  In addition to the Collateral, Borrower further
grants to Lender, its successor and assigns, a security interest in the proceeds
of all policies of casualty and fire insurance insuring the collateral, if
any.

    

    2.           Purpose of Security
Interest.  The security interest is to secure payment of all
obligations of Borrower to Lender now owing or hereafter created, including
without limitation an indebtedness to Lender evidenced by a promissory note (the
"Note") in the principal sum of Sixteen Thousand Dollars ($16,000.00), with
interest at the rate of six percent (6.0%) per annum, which note is signed by
Borrower and delivered by Borrower to Lender simultaneously with Borrower's
execution of this Agreement.

    

    3.           Borrower's Warranties and
Covenants.  Borrower represents, warrants and covenants as
follows:

    

    
      	
            	
              

                (a)         
      Title.  Borrower is the owner of the Collateral
      free from any lien, adverse claim, security interest, or encumbrance other
      than those created hereunder.  Borrower will defend the
      Collateral against any claims and demands of other persons at any time
      claiming the Collateral or any interest in it.  The security
      interest granted to Lender by this Agreement is a first, prior and
      indefeasible security interest in the Collateral.  Except for
      financing statements made in favor of Borrower which are being assigned to
      Lender in connection with this Agreement, no financing statement covering
      the Collateral, or any part thereof, or any proceeds thereof, is on file
      or of record in any public office.  Borrower will, at its sole
      cost and expense, defend any action, suit or proceeding which might affect
      the Collateral or Lender's security interest in the
    Collateral.

              

            

    

    

    
      	
               

            	
              

                (b)          Location
      of Collateral.  The Collateral will be kept at Borrower's
      principal business premises (the "Premises").  Borrower will not
      remove the Collateral from the Premises without Lender's written
      consent.  Borrower will promptly notify Lender of any change in
      the place where the Collateral is
kept.

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
               

            	
              

                (c)          Perfection
      of Security Interest.  Borrower agrees that Lender shall file
      financing statements and do whatever may be necessary under applicable law
      to perfect and continue Lender's interest in the Collateral, all at
      Borrower's expense.

              

            

    

    

    
      	
               

            	
              

                (d)          Sale
      of Collateral Prohibited.  Borrower will not sell, offer to
      sell, or transfer the Collateral or any interest in it without Lender's
      prior written consent.

              

            

    

    

    
      	
               

            	
              

                (e)         
      No Adverse Liens; Collateral to Be Kept in Good
      Repair.  Borrower will keep the Collateral free from any adverse
      lien, security interest, or encumbrance and in good order and repair, and
      will not waste or destroy the Collateral or any part of
      it.  Borrower will not use or permit anyone to use the
      Collateral in violation of any statute, ordinance, or state or federal
      regulation.  Lender may examine and inspect the Collateral at
      any time, wherever located.

              

            

    

    

    4.           Lender's Right to Pay Taxes and
Maintain the Collateral.  Should Borrower fail to make any
payment or do any act as herein provided, then Lender, but without obligation to
do so and without notice or demand upon Borrower and without releasing Borrower
from any obligation thereby, may at Lender's sole option discharge taxes, liens
or security interests, or other encumbrances at any time levied or placed on the
Collateral, may pay for insurance on the Collateral, and may pay for the
maintenance and preservation of the Collateral, in such manner and to such
extent as Lender may deem necessary, reasonable and convenient, and Borrower
shall immediately and without demand pay to Lender all costs, expenses, charges,
attorneys' fees, litigation expenses and other liabilities which Lender may
incur thereby.

    

    5.           Borrower's Right to Possession of
Collateral.  Until default, Borrower may have possession of the
Collateral and use it in any lawful manner not inconsistent with this Agreement
and not inconsistent with any policy of insurance on the
Collateral.

    

    6.           Acts or Events of
Default.  Borrower shall be in default under this Agreement
upon the happening of any of the following events or conditions:

    

    
      	
               

            	
              

                (a)         
      Default in Payment.  Default in the payment of any
      indebtedness, obligation, covenant, or liability contained or referred to
      in this Agreement or in the Note, or in any note evidencing any such
      indebtedness or obligation;

              

            

    

    

    
      	
               

            	
              

                (b)           False
      Warranty, Etc.  If any warranty, representation, or statement
      made or furnished to Lender by or on behalf of Borrower proves to have
      been false in any material respect when made or
  furnished;

              

            

    

    

    
      	
               

            	
              (c)           Acceleration
      of Maturity of Indebtedness to Others.  Any event that
      results in the acceleration of the maturity of Borrower's indebtedness to
      others under any indenture, agreement, or
  undertaking;

            

    

    

    
      	
               

            	
              (d)           Loss,
      Theft, Etc., of Collateral.  The loss, theft, or damage
      to, or the destruction, sale, or encumbrance of any of the Collateral, or
      the making of any levy, seizure, or attachment of the Collateral;
      or

            

    

    

    
      	
               

            	
              (e)           Dissolution,
      Insolvency, Etc., of Borrower.  The dissolution,
      termination of existence, insolvency, business failure, appointment of a
      receiver of any part of the property of, assignment for the benefit of
      creditors by, or the commencement of any proceeding under any bankruptcy
      or insolvency laws by or against Borrower or any guarantor or surety for
      Borrower, or the entry of any judgment against it, or the failure of any
      guarantor or surety for Borrower to provide Lender with financial
      information promptly when requested by
Lender.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    7.           Rights of Lender Upon
Default.  Upon the occurrence of any act or event of default,
Lender may declare Borrower's indebtedness secured by this Agreement and the
Note evidencing Borrower's indebtedness immediately due and payable and shall
have the remedies of a secured party under the Uniform Commercial Code of
California.  Lender may require Borrower to assemble the Collateral
and make it available to Lender at a place designated by Lender that is
reasonably convenient to both parties.  Unless the Collateral is
perishable or threatens to decline speedily in value or is of a type customarily
sold on a recognized market, Lender will give Borrower reasonable notice of the
time after which any private sale or any other intended disposition thereof is
to be made.  The requirements of reasonable notice shall be met if the
notice is mailed, postage prepaid, to Borrower's address shown at the beginning
of this Agreement, at least five days before the time of the sale or
disposition.  The expenses of retaking, holding, preparing for sale,
selling, or the like shall include Lender's reasonable attorney fees and legal
expenses.

    

    8.           Waiver of Lender's
Rights.  Lender shall not be deemed to have waived any of
Lender's rights under this Agreement or under any other writing signed by
Borrower unless the waiver is in writing and signed by Lender.  No
delay or omission on the part of Lender in exercising any right shall operate as
a waiver of such right or any other right.  A waiver on any one
occasion shall not be construed as a bar to or waiver of any right or remedy on
any future occasion.

    

    9.           Lender's Remedies
Cumulative.  All of Lender's rights and remedies, whether
evidenced by this Agreement or by any other writing, shall be cumulative and in
addition to any other remedies which may be available at law or in
equity.  Any such remedy may be exercised separately or concurrently,
and the exercise of any remedy shall not be deemed an election of
remedies.  Any single or partial exercise of any right, power or
remedy hereunder shall not preclude the further exercise thereof and every
right, power and remedy of Lender shall continue in full force an effect unless
and until such right, power or remedy is specifically waived by an instrument in
writing as provided in paragraph 8 above.

    

    10.           Notice.  All notices
and other communications required or permitted hereunder to be effective shall
be made in writing, and, unless otherwise expressly provided herein, shall be
deemed to have been duly given and received when delivered by hand, or, if
mailed, three (3) business days after deposit in the mail, with postage prepaid
for registered or certified mail, or, in case of faxed notice, when sent, if
answer back or confirmation received, and addressed to the party at its address
as follows:

     

    
    

     

    
      	
               If to
      Borrower: 

            	
              Latigo
      Shore Music, Inc.

              Attn.
      Steve Dorff, Chief Executive Officer

              31 Roundup Road

              Bell Canyon, CA 91307

            	 
	 	 	 
	
               If to
      Lender:

            	
              Brooktide, LLC

              123 West Nye Lane, #510

              Carson City, NV 89706

            	 

    

     

    11.           Agreement
Binding.  This Agreement and all rights and liabilities under
it and in the indebtedness secured by it and the Collateral described in it
shall inure to the benefit of Lender, their respective successors, heirs,
executors, administrators, and assigns, and shall be binding upon Borrower and
Borrower's successors and assigns.

    

    12.           Termination of
Agreement.  This Agreement shall terminate immediately upon the
full payment of the indebtedness secured by this Agreement together with all
interest and other costs and fees provided for in the Agreement or in the Note
or in any other promissory note evidencing the indebtedness.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    13.           Lender's
Expenses.  Borrower shall pay to Lender on demand, together
with interest at the highest rate allowed by law, any and all advances, charges,
costs and expenses, including, without limitation, legal expenses and attorneys'
fees, incurred or expended by Lender in exercising or enforcing any right, power
or remedy conferred by this Agreement, by the Note, by any other document made
by and between Lender and Borrower, or by law, or in any action to construe the
provisions hereof.  If not so paid by Borrower, all such advances,
charges, costs and expenses shall become a part of the obligations secured
hereunder, shall bear interest at the same rate as the principal amount of the
Note, and shall be paid to Borrower immediately upon demand.

    

    14.           Illegality of Part of
Agreement.  If any portion of this Agreement is held to be
illegal, then only that portion is void and not the entire
Agreement.

    

    15.           Governing Law.  This
Agreement and the rights of the parties hereunder shall be governed by and
construed in accordance with the laws of the State of California and of the
United States.

    

    16.           Transfer by
Lender.  Upon the transfer of all or any part of the Lender's
interest in the Note and the security therefore, Lender may transfer the
Collateral and shall be fully discharged thereafter from all liability and
responsibility with respect to the Collateral, and the transferee shall be
vested with all the rights and powers of Lender hereunder with respect to the
Collateral so transferred.

    

    

    IN WITNESS WHEREOF, the
Borrower and Lender have executed this Agreement as of the date first written
above.

     

    
       

      
        	
                 Borrower: 

              	
                LATIGO SHORE MUSIC, INC.

                 

                 

                By:_____________________________________

                
                       Steve
      Dorff, Chief Executive Officer

                

              	 
	 	
                 

                 

                 

                 

              	 
	
                 Lender:

              	
                BROOKTIDE, LLC

                 

                BY:_____________________________________

                
                        Yale
      Farar, Manager

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