Document:

Exhibit 10.3

 

SECURITY
AGREEMENT

 

This
Security Agreement (this “Security Agreement”) is dated as of July 1, 2015 by Studioplex City Rentals, LLC, a Nevada
limited liability company (the “Borrower”), and is executed and delivered to and in favor of Apple Box Productions,
Inc., a Florida corporation (the “Lender”).

 

NOW,
THEREFORE, in consideration of the Indebtedness (as hereinafter defined) of the Borrower to the Lender, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Borrower
hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

		1.1	Definitions.
                                         As used herein, the following terms shall have the following meanings:

 

a.           Books
and Records means all of the Borrower's books and records indicating, summarizing, or evidencing the Collateral, the Indebtedness,
and the Borrower's property and business operations as specifically relating to the ownership and operation of the Equipment (as
defined below), financial condition; including without limitation, computer runs, invoices, tapes, processing software, processing
contracts (such as contracts for computer time and services) and any computer prepared information, tapes, or data of every kind
and description, whether in the possession of the Borrower or in the possession of third parties specifically relating to the
ownership and operation of the Equipment and the Proceeds.

 

b.          Collateral
means solely the following types or items of property of the Borrower whether now owned or hereafter acquired, and wherever
located:

 

i.           Equipment:
All equipment of the Borrower listed on Exhibit A to the Purchase and Sale Agreement (the "Equipment"), including but
not limited to the vehicles listed on Exhibit A to the Purchase and Sale Agreement (the “Vehicles”);

 

ii.           Proceeds:
Any and all proceeds of the foregoing and all property which is within the definition of proceeds as it is defined in the Uniform
Commercial Code, including without limitation, whatever is received upon the use, lease, sale, exchange, collection, any other
utilization or any disposition of any of the foregoing property described in this Section 1.1(b) whether cash or non-cash, all
rental or lease payments, substitutions, additions, accessions, replacements, products, and renewals of, to, or for such property
and all insurance therefor (collectively, "Proceeds").

 

c.           Guaranty
Agreement means that certain Guaranty Agreement executed by Jake Shapiro in favor of Lender and dated of even date herewith.

 

    	 	 

    	 

    

 

d.           Indebtedness means
any and all obligations, liabilities, and indebtedness of every kind and description of the Borrower owing to the
Lender, whether or not under the Note and whether such debts or obligations are primary or secondary, direct or
indirect, absolute or contingent, sole, joint or several, secured or unsecured, due or to become due, contractual or
tortious, arising by operation of law, by overdraft or otherwise, or now or hereafter existing, including, without
limitation, principal, interest, fees, late fees, expenses, attorneys' fees and costs, and/or the allocated fees and costs of
the Lender incurred in connection with collection of amounts due under the Note, that have been or may hereafter be
contracted or incurred; whether recovery upon the Indebtedness may be or hereafter may become barred by any statute of
limitations; and whether such Indebtedness may be or hereafter may become otherwise unenforceable.

 

e.           Intercreditor
Agreement shall mean that certain Intercreditor Agreement by and between Loeb Term Solutions, LLC (the “Senior Lender”)
and Lender and dated of even date herewith.

 

f.           Loan
Documents shall mean, collectively, (i) the Note and (ii) the Guaranty Agreement.

 

g.           Note
shall mean that certain Promissory Note in the amount of $594,000 executed by Borrower in favor of Lender and dated of even
date herewith.

 

h.           Obligor
means the Borrower and each and every maker, endorser, guarantor, or surety of or party obligated for any of the Indebtedness.

 

i.           Purchase
Agreement means that certain Purchase and Sale Agreement by and between Borrower and Lender and dated June 17, 2015.

 

j.           Uniform
Commercial Code means the Uniform Commercial Code, in effect from time to time in the State of Florida.

 

ARTICLE
II

SECURITY INTEREST

 

In
order to secure the due and punctual payment and performance of the Indebtedness, the Borrower hereby grants to the Lender a continuing
security interest in and general lien upon its right, title, and interest in the Collateral. If the Borrower has granted any security
interest to the Lender in any or all of the Collateral prior to the date of this Security Agreement, this Security Agreement shall
be deemed to be a reaffirmation of the previously granted security interest and an amendment and restatement of any previously
executed Security Agreement. It is the intention of the Borrower, all Obligors and the Lender that all existing security interests
will remain continuously perfected. The security interests granted are granted as security only and shall not subject the Lender
to, or in any way affect or modify, any obligation or liability of the Borrower or any other Obligor with respect to any of the
Collateral or any transaction which gave rise thereto.

 

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ARTICLE
III

RIGHTS
IN CONNECTION WITH COLLATERAL

 

3.1           Delivery
of Documents. At any time and from time to time, upon the demand of the Lender, the Borrower will, at the Borrower's expense:

 

a.           immediately
give, execute, deliver, pledge, endorse, file, and/or record any notice, statement, financing statement, instrument, document,
chattel paper, agreement, or other papers that may be necessary or desirable, or that the Lender may reasonably request, in order
to create, preserve, perfect, or validate any security interest granted pursuant hereto or intended to be granted hereunder or
to enable the Lender to exercise or enforce its rights hereunder or with respect to such security interest; and

 

b.           keep,
stamp, or otherwise mark any and all documents, instruments, chattel paper, and its Books and Records relating to the Collateral
in such manner as the Lender  may reasonably require.

 

3.2           Power
of Attorney. The Borrower hereby irrevocably appoints the Lender (and any of its attorneys, officers, employees, or agents)
as its true and lawful attorney-in-fact, said appointment being coupled with an interest, with full power of substitution, in
the name of the Borrower, the Lender, or otherwise, for the sole use and benefit of the Lender in its sole discretion, but at
the Borrower's expense, to exercise, to the extent permitted by law, in its name or in the name of the Borrower or otherwise,
the powers set forth herein, whether or not any of the Indebtedness is due

(a)
to, upon the occurrence of an Event of Default, endorse the name of the Borrower upon any instruments of payment, freight, or
express bill, bill of lading, storage, or warehouse receipt relating to the Collateral and to demand, collect, receive payment
of, settle, or adjust all or any of the Collateral; (b) to, upon the occurrence of a casualty or Event of Default, correspond
and negotiate directly with insurance carriers; and (c) to sign and file one or more financing statements and continuation statements
naming the Borrower as Borrower and the Lender as secured party to execute any notice, statement, instruments, agreement, or other
paper that the Lender may require to create, preserve, perfect, or validate any security interest granted pursuant hereto or to
enable the Lender to exercise or enforce its rights hereunder or with respect to such security interest. Neither the Lender nor
its attorneys, officers, employees, or agents shall be liable for any act, omissions, any error in judgment, or mistake in fact
in its/their capacity as attorney-in-fact. This power, being coupled with an interest is irrevocable until the Indebtedness has
been fully satisfied.

 

3.3           Security
Agreement as Filing Statement. At the Lender's sole option, and without the Borrower's consent, the Lender may file a copy
or other reproduction of this Security Agreement or any financing statement executed pursuant hereto as a financing statement
in any jurisdiction so permitting. The Lender is expressly authorized to file financing statements without the Borrower's signature.

 

3.4           Subordination
to Senior Lienholder. Lender’s interest in the Collateral is at all times subordinate to the rights of Senior Lender
as set forth in the Intercreditor Agreement but senior to the rights and interests of all other persons.

 

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3.5           Lender's
Rights in Collateral. Subject to the rights of Senior Lender, pursuant to the terms of the Intercreditor Agreement, with respect
to the Collateral, or any part thereof, the right is expressly granted to the Lender, at its sole discretion:

 

a.           to
transfer or register in the name of itself or its nominee any of the Collateral, and whether or not so transferred or registered,
to receive the income and dividends thereon, including stock dividends and rights to subscribe, and to hold the same as a part
of the Collateral and/or apply the same to the Indebtedness;

 

b.           to
exchange any of the Collateral for other property upon the reorganization, recapitalization, or other readjustment and in connection
therewith, to deposit the Collateral or any part thereof with any nominee or depository upon such terms as the Lender may determine
in its sole discretion; and

 

c.           extend
the time of payment, arrange for payment in installments, or otherwise modify the terms of, or release, any of the Collateral,
or refrain from exercising any right against any Collateral.

 

3.6           Custody
of Collateral. With respect to the Collateral, or any part thereof, which at any time may come into that possession, custody,
or under the control of the Lender or any of its Affiliates, agents, or correspondents, the Borrower hereby acknowledges and agrees
that the Lender's sole duty with respect to the custody, safekeeping, and physical preservation of such Collateral, whether pursuant
to Chapter 679 Florida Statutes or otherwise, shall be to deal with it in the same manner as it deals with similar property for
its own account.

 

3.7           Delay
in Realizing Upon Collateral. Neither the Lender, nor any of its directors, officers, employees, Affiliates, agents, or correspondents
shall be liable for failure to demand, collect, or realize upon any of the Collateral or for any delay in doing so.

 

ARTICLE
IV

REPRESENTATIONS,
WARRANTIES, AND COVENANTS

 

4.1           Representations
and Warranties. The Borrower represents and warrants to the Lender, which representations and warranties shall be continuing
representations and warranties until all of the Indebtedness is satisfied in full, and covenants with the Lender as follows:

 

a.           Information
Previously Supplied; Place of Business; Locations of Collateral. All information previously provided by the Borrower to the
Lender concerning the Collateral is true and correct as of the date hereof. The sole place of business or chief executive office
of the Borrower (if the Borrower has more than one place of business) and the location where the Borrower maintains its Books
and Records is the address set forth on Schedule 4.3(a) hereof. All other places of business of the Borrower, locations of Collateral,
or addresses from which invoices are sent, if any, are at the location(s) hereafter disclosed to the Lender pursuant to Section
4.3(a) hereof;

 

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b.           Duly
Authorized. This Security Agreement and the other Loan Documents have been duly authorized, executed, and delivered, and constitute
the legal, valid, and binding obligations of the Borrower, enforceable against the Borrower in accordance with their terms.

 

c.           Not
in Violation of Law. This Security Agreement and the other  Loan Documents do not and will not violate any law, the organizational
documents, or bylaws of the Borrower, or any other agreement or instrument to which the Borrower or any of its property may be
bound or subject. Neither the Borrower nor the Collateral are in violation of or subject to any existing, pending, or threatened
investigation or inquiry pertaining to an alleged violation of any law.

 

d.           No
Consents Required. No consent or approval of any person or entity, or of any public authority, is necessary for the valid
execution, delivery, and performance of this Security Agreement, or any other Loan Documents.

 

e.           Title
to the Collateral; Good Repair. The Borrower is or, to the extent that any Collateral will be acquired after the date hereof,
will be, the sole owner of the Collateral, holding good and marketable title thereto, and covenants to keep the Collateral free
from any lien, security interest, encumbrance, or claim of any person or entity other than the liens and encumbrances of the Senior
Lender. The Borrower has the right to grant the security interests created by this Security Agreement. The security interests
granted by this Security Agreement constitute second priority perfected security interests in the Collateral, except with respect
to the security interest granted in the Vehicles, which constitutes a first priority perfected security interest. The Borrower
shall keep the Collateral in good order and repair, reasonable wear and tear excepted, and will not waste or destroy the Collateral
or any part thereof.

 

f.           Insurance.
The Borrower shall maintain insurance at all times with respect to the Collateral against the risks of fire, theft, and such other
risks as the Lender may require, in an amount of not less than One Million Dollars ($1,000,000), naming Lender as an additional
insured, containing such other terms, in such form and amounts, for such periods, and written by such companies as are acceptable
to the Lender in its sole discretion. All such policies of insurance shall name the Lender as loss payee and shall provide for
not less than thirty (30) days' prior written notice to the Lender of intended cancellation or reduction in coverage. The Borrower
shall furnish the Lender with certificates or other evidence satisfactory to the Lender of compliance with the foregoing insurance
provisions. The Lender shall have the right (but shall be under no obligation) to pay any of the premiums on such insurance and
all such payments shall become part of the Indebtedness and be considered an advance at the highest rate of interest provided
for in the Loan Documents. The Borrower expressly authorizes its insurance carriers to pay proceeds of all insurance policies
covering all or any part of the Collateral directly to the Lender.

 

g.           Notice
of Interest. If reasonably requested by the Lender, the Borrower shall give notice of the Lender's security interests in the
Collateral to any third person with whom the Borrower has any actual or prospective contractual relationship or other business
dealings.

 

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h.           Compliance
with Laws. The Borrower is, and shall continue to be, in compliance with all laws, statutes, rules, and regulations of every
kind applicable to the Borrower, its business, the Collateral and this Security Agreement and the Loan Documents. The Borrower
shall not use the Collateral or any of its property in violation of any law, statute, regulation, or ordinance.

 

i.           Materially
Misleading Statements. No representation, warranty, or  statement made herein, or in any certificate or document furnished
or to be furnished pursuant hereto or pursuant to any other Loan Document contains or will contain any untrue statement of fact
or omits or will omit any fact necessary to make it not misleading.

 

4.2           Restatement
of Representations and Warranties. The Borrower hereby restates each representation and warranty contained in the Purchase
Agreement.

 

4.3           Covenants.
The Borrower hereby covenants and agrees that for as long as any Indebtedness is outstanding:

 

a.           Changes
in Location of Chief Executive Office, Residence, Books and Records, Collateral. The Borrower shall provide the Lender with
prompt written notice of (i) any intended change in the chief executive office or residence of the Borrower, and/or the office
where the Borrower maintains its Books and Records; and (ii) the location or movement of any Collateral to or at an address other
than an address specified on Exhibit 4.3(a) attached hereto, all such notices to be received by the Lender at least thirty (30)
days prior to the effective date of any such change. Said written notice shall not be required to be given by the Borrower should
the Collateral be moved in connection with rentals of the Equipment in the ordinary course of business within the State of Georgia.
If any such new location as set forth in subparagraphs (i) and (ii) hereof is on leased or mortgaged premises, the Borrower will
furnish the Lender, prior to the effective date of any such change, with landlord's or mortgagee's waivers pertaining to such
premises in form and substance satisfactory to the Lender in its sole discretion;

 

b.           Prompt
Payment of Taxes. The Borrower shall promptly pay any and all taxes, assessments, and/or governmental charges upon the Collateral
on the dates such taxes, assessments, and/or governmental charges are due and payable, except to the extent that such taxes, assessments,
and/or charges are contested in good faith by the Borrower by appropriate proceedings and for which the Borrower is maintaining
adequate reserves. Upon request of the Lender, the Borrower shall deliver to the Lender such receipts and other proofs of payment
as the Lender may request;

 

c.           Notice
of Adverse Changes, Events of Default, Seizures and Institution of Litigation. The Borrower shall immediately notify the Lender
of (i) any adverse change in its business, property, or financial condition, including, without limitation, any loss of or damage
to any Collateral; (ii) the occurrence of an Event of Default under this Security Agreement; (iii) any seizure of the Collateral
or any claims or alleged claims of third parties to the Collateral; and (iv) the institution of any litigation, arbitration, governmental
investigation, or administrative proceedings against or affecting the Borrower or any of the Collateral;

 

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d.           Disposition
of Collateral. The Borrower shall not sell, offer to sell, otherwise assign, or permit the involuntary transfer of, or disposition
of the Collateral or any interest therein, without the prior written consent of the Lender; provided, however, Borrower may sell
the Vehicles without the prior written consent of the Lender, and all proceeds from such sale(s) shall be payable to Lender and
applied to the Initial Payment (as defined in the Note).

 

e.           Maintenance
and Inspection of Books and Records and Equipment. The Borrower shall maintain complete and accurate Books and Records and,
with respect to the Collateral, the Borrower shall make all necessary entries therein to reflect the location of its Equipment
and the Proceeds therefrom. The Borrower shall permit the Lender and its authorized agents and representatives to have full, complete,
and unrestricted access to the Books and Records at all reasonable times to inspect, audit, and make copies of any and all such
Books and Records (“Audit”) and, with respect to the Collateral, the Borrower shall permit the Lender and its authorized
agents and representatives to inspect any or all of the Equipment at all reasonable times. Seller shall give Buyer reasonable
notice of an intended Audit, which shall be conducted at the premises of the Buyer. Seller shall be able to conduct Audits on
up to three (3) occasions whilst the Note is outstanding. Upon submission to the Borrower of an invoice therefor, the Borrower
will reimburse the Lender for any and all fees and costs related to any inspection and/or Audit by the Lender and its authorized
agents and representatives. Upon the request of the Lender, the Borrower shall deliver to the Lender all evidence of ownership
in the Collateral, including certificates of title with the Lender's interest appropriately noted on the certificate and if any
of the Collateral is located upon land which is the subject of a lease or mortgage, the Borrower shall deliver an agreement of
subordination from the landlord or mortgagee providing that any lien of such party shall be subordinate to the security interest
of the Lender granted herein. The Lender's rights hereunder shall be enforceable at law or in equity, and the Borrower consents
to the entry of judicial orders or injunctions enforcing specific performance of such obligations hereunder.

 

ARTICLE
V

DEFAULT; REMEDIES

 

5.1           Events
of Default. The occurrence of any one of the following shall constitute an event of default ("Event of Default")
under this Security Agreement:

 

a.           Breach
Under this Security Agreement. A breach by the Borrower of any term, obligation, provision, covenant, representation, or warranty
arising under this Security Agreement; or

 

b.           Default
under Note or other Loan Documents. If any default or any Event of Default shall have occurred under the Purchase Agreement,
the Note or any other Loan Document.

 

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		5.2	Remedies.

 

a.           Rights
in General. In addition the remedies of the Lender pursuant to the Note and the other Loan Documents, upon the
occurrence of, and following an Event of Default the Lender may, at its option, exercise any and all rights and
remedies it has under this Security Agreement, any other Loan Document, and/or applicable law. Borrower shall have ten (10)
business days from the Event of Default in order to cure any breach causing the Event of Default (“Cure Period”).
Such remedies shall not be exercised by the Lender within the Cure Period or if Borrower has remedied the Event of
Default.

 

b.           Right
of Set-off. If any one or more Events of Default shall have occurred, whether or not the Lender shall have made any demand
under any of the Loan Documents, and regardless of the adequacy of any Collateral for the Indebtedness or other means of obtaining
repayment of the Indebtedness, the Lender shall have the right, without notice to the Borrower or to any other Obligor, and is
specifically authorized hereby to setoff against and apply to the then unpaid balance of the Indebtedness any items or funds of
the Borrower and/or any Obligor held by the Lender, any and all deposits (whether general or special, time or demand, matured
or unmatured) or any other property of the Borrower and/or any Obligor, including, without limitation, securities and/or certificates
of deposit, now or hereafter maintained by the Borrower and/or any Obligor for its or their own account with the Lender, and any
other indebtedness at any time held or owing by the Lender to or for the credit or the account of the Borrower and/or any Obligor.

 

c.           Additional
Rights and Remedies. In addition to the rights and remedies available to the Lender as set forth above, upon the occurrence
of an Event of Default hereunder, or at any time thereafter, the Lender may, at its option, immediately and without notice, do
any or all of the following, which rights and remedies are cumulative, may be exercised from time to time, and are in addition
to any rights and remedies available to the Lender under any other agreement or instrument by and between any Obligor and the
Lender: (i) exercise any and all of the rights and remedies of a secured party under the Uniform Commercial Code, including, without
limitation, the right to require the Borrower to assemble the Collateral and make it available to the Lender at a place reasonably
convenient to the parties; (ii) operate, utilize, recondition, and/or refurbish any of the Collateral by any means deemed appropriate
by the Lender, in its sole discretion, including, without limitation, converting raw materials and for work-in-process into finished
goods; (iii) notify the account Borrowers for any of the Accounts to make payment directly to the Lender, or to such post office
box as the Lender may direct and/or exercise all rights with the same force and effect as an absolute owner; or (iv) demand, sue
for, collect, or retrieve any money or property at any time payable, receivable on account of, or in exchange for, or make any
compromise or settlement deemed desirable with respect to any of the Collateral.

 

d.           Continuing
Enforcement of the Loan Documents. If, after receipt of any payment of all or any part of the Indebtedness or the
obligations of the Borrower to the Lender, the Lender is compelled or agrees, for settlement purposes, to surrender such
payment to any person or entity for any reason, then this Security Agreement and the other Loan Documents shall continue in
full force and effect or be reinstated, as the case may be. The provisions of this Paragraph shall survive for one hundred
(100) days following the termination of this Security Agreement and the other Loan Documents and shall be and remain
effective notwithstanding the payment of the Indebtedness, the cancellation of the Security Agreement or any other Loan
Document, the release of any security interest, lien, or encumbrance securing the Indebtedness or any other action which the
Lender may have taken in reliance upon its receipt of such payment. The Borrower also agrees to indemnify, defend, and
hold harmless the Lender with respect to any and all claims, expenses, demands, losses, costs, fines, or liabilities of any
kind (including, without limitation, those involving death or personal injury) arising from or in any way related to any
hazardous materials or dangerous environments within, on, from, related to, or affecting any real property owned or occupied
by the Borrower.

 

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ARTICLE
VI

MISCELLANEOUS

 

6.1           Remedies
Cumulative; No Waiver. The rights, powers, and remedies of the Lender provided in this Security Agreement and any of the Loan
Documents are cumulative and concurrent, and are not exclusive of any right, power, or remedy available to the Lender. No failure
or delay on the part of the Lender in the exercise of any right, power, or remedy shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, power, or remedy preclude any other or further exercise thereof, or the exercise
of any other right, power, or remedy.

 

6.2           Notices.
Notices and communications under this Security Agreement shall be in writing and shall be given by hand-delivery or by nationally-recognized
overnight courier, effective upon receipt, to the addresses set forth in the Purchase Agreement. A party may change its address
by giving written notice to the other party as specified herein.

 

6.3           Governing
Law. This Security Agreement shall be construed and enforced in accordance with and governed by the substantive laws of the
State of Florida without reference to conflict of laws principles.

 

6.4           Counterparts.
This Security Agreement may be executed simultaneously in several counterparts. Each counterpart shall be deemed an original.

 

6.5           Integration;
Amendment. This Security Agreement and the other Loan Documents constitute the sole agreement of the parties with respect
to the subject matter hereof and thereof and supersede all oral negotiations and prior writings with respect to the subject matter
hereof and thereof. No amendment of this Security Agreement, and no waiver of any one or more of the provisions hereof shall be
effective unless set forth in writing and signed by the parties hereto.

 

6.6           Successors
and Assigns. This Security Agreement (a) shall be binding upon the Borrower and the Lender and, where applicable, their
respective heirs, executors, administrators, successors, and permitted assigns, and (b) shall inure to the benefit of the
Borrower and the Lender and, where applicable, their respective heirs, executors, administrators, successors, and permitted
assigns; provided, however, that the Borrower may not assign its rights or obligations hereunder or any interest herein
without the prior written consent of the Lender, and any such assignment or attempted assignment by the Borrower shall be
void and of no effect with respect to the Lender. The Lender may from time to time sell or assign, in whole or in part, or
grant participations in some or all of the Loan Documents and/or the obligations evidenced thereby. The Borrower
authorizes the Lender to provide information concerning the Borrower to any prospective purchaser, assignee, or
participant.

 

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6.7           Severability
and Consistency. The illegality, unenforceability, or inconsistency of any provision of this Security Agreement or any instrument
or agreement required hereunder shall not in any way affect or impair the legality, enforceability, or consistency of the remaining
provisions of this Security Agreement or any instrument or agreement required hereunder. The Loan Documents are intended to be
consistent. However, in the event of any inconsistencies among any of the Loan Documents, such inconsistency shall not affect
the validity or enforceability of any Loan Document. The Borrower agrees that in the event of any inconsistency or ambiguity in
any of the Loan Documents, the Loan Documents shall not be construed against any one party but shall be interpreted consistent
with the Lender's policies and procedures.

 

6.8           Consent
to Jurisdiction and Service of Process. The Borrower irrevocably appoints each and every owner, partner, and/or officer of
the Borrower as its attorneys upon whom may be served, by regular or certified mail at the address set forth in the Purchase Agreement,
any notice, process, or pleading in any action or proceeding against it arising out of or in connection with this Security Agreement
or any of the other Loan Documents. The Borrower hereby consents that (i) any action or proceeding against it may be commenced
and maintained in any court within the State of Florida or in any United States District Court in Florida by service of process
on any such owner, partner, and/or officer; and (ii) such courts shall have jurisdiction with respect to the subject matter hereof
and the person of the Borrower and all Collateral for the Indebtedness. The Borrower agrees that any action brought by the Borrower
shall be commenced and maintained only in a court in Duval County, Florida.

 

6.9           Judicial
Proceedings; Waivers. THE BORROWER AND THE LENDER ACKNOWLEDGE AND AGREE THAT (a) ANY SUIT, ACTION, OR PROCEEDING, WHETHER
CLAIM OR COUNTERCLAIM, BROUGHT OR INSTITUTED BY THE BORROWER OR THE LENDER OR ANY SUCCESSOR OR ASSIGN OF THE BORROWER OR THE LENDER,
ON OR WITH RESPECT TO THIS SECURITY AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, THE COLLATERAL, OR THE DEALINGS OF THE PARTIES
WITH RESPECT HERETO OR THERETO SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY, AND EACH PARTY WAIVES THE RIGHT TO TRIAL BY JURY;
(b) EACH WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER, IN ANY SUCH SUIT, ACTION, OR PROCEEDING, ANY SPECIAL, EXEMPLARY, PUNITIVE,
OR CONSEQUENTIAL DAMAGES, OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; AND (c) THIS SECTION IS A SPECIFIC AND
MATERIAL ASPECT OF THIS SECURITY AGREEMENT, AND THE LENDER WOULD NOT EXTEND CREDIT IF THE WAIVERS SET FORTH IN THIS SECTION WERE
NOT A PART OF THIS SECURITY AGREEMENT.

 

SIGNATURE
APPEARS ON FOLLOWING PAGE

 

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IN
WITNESS WHEREOF, the Borrower has executed this Security Agreement, on the day and year first above written.

 

	 	BORROWER:
	 	 
	 	 STUDIOPLEX CITY RENTALS, LLC
	
	 	 	 
	 	By:	Roger
    Miguel, Chief Executive Officer

 

 

 

11Exhibit 10.4

 

 

 

TERM
PROMISSORY NOTE

 

	$350,000.00	Rincon,
    GA
	Loan
    # 91716	June
    24, 2015

 

FOR
VALUE RECEIVED, Studioplex City Rentals LLC ("Borrower") a Georgia limited liability company, with its principal place
of business located at 135 Goshen Road, Suite 205, Rincon, GA 31326, promises to pay to the order of Loeb Term Solutions LLC,
an Illinois limited liability company, with its principal place of business located at 4131 S. State Street, Chicago, IL 60609
(“Lender”) via ACH transfer as set forth below or by such other method or at such other place as the holder hereof
may from time to time designate in writing, the principal sum of THREE HUNDRED FIFTY THOUSAND NO/100 DOLLARS ($350,000.00), together
with interest from time to time outstanding at the Prime Rate (as defined below) plus ten percent (10%) per annum (the “Effective
Rate”). Interest shall be computed on the actual number of days elapsed, and shall be due and payable in arrears. Interest
shall be computed upon a simple interest basis. Borrower and all endorsers, sureties, guarantors and any other persons liable
or to become liable with respect to the loan evidenced by this Term Promissory Note (the "Loan") are each included in
the term "Obligors" as used in this Term Promissory Note (the “Note”). The Prime Rate shall mean, at any
time, the rate of interest quoted in the Wall Street Journal, Money Rates Section as the “Prime Rate” (currently defined
as the base rate on corporate loans posted by at least 75% of the nation’s thirty (30) largest banks). In the event that
the Wall Street Journal quotes more than one rate, or a range of rates as the Prime Rate, then the Prime Rate shall mean the highest
of the quoted rates. In the event that the Wall Street Journal ceases to publish a Prime Rate, then the Prime Rate shall be the
average of the three largest U.S. money center commercial banks, as determined by Lender. As of the date hereof, the prime rate
is 3.25%. The interest rate hereunder shall change each time there is a change in the Prime Rate.

 

Said
principal and interest shall be payable in lawful money of the United States, on the dates and in the  amounts specified below,
to wit:

 

Payments
of principal and interest shall be made in two hundred eight (208) payments as follows: A payment of principal in the amount of
$2,164.39 shall be paid at closing, and thereafter Two Hundred Six (206) consecutive weekly installments of principal and interest
commencing on Wednesday, July 8, 2015 in the amount of $2,164.39 each, and continuing on each Wednesday of each successive week
thereafter through and including June 12, 2019, with the Two Hundred Eighth (208th) and final installment being due
and payable on June 19, 2019 (the “Maturity Date”), said final installment being equal to the outstanding balance
of all principal and accrued interest and all other amounts due hereunder. It is understood and agreed that weekly payments will
first be applied to payment of interest, second to late charges and other fees, and the balance, if any, will be applied to the
payment of principal. Borrower understands and agrees that the weekly payment may not fully amortize the Loan over a period of
four (4) years as a result of the variable nature of the interest rate. Accordingly, the Borrower understands and agrees that
the final payment may be substantially higher or lower than the regular weekly payments. In the event that the Prime Rate shall
increase or decrease by one percent (1%) or more, the Lender may require an adjustment in the weekly payment hereunder, which
adjusted amount the Borrower agrees to pay.

 

All
payments to the Lender shall be made via ACH payment pursuant to the Automatic ACH Debit Agreement, and are payable to the Lender
at the following bank account, or such other account as may be determined by Lender from time to time:

 

Such
other account is currently 

 

Wiring Instructions

American
Chartered Bank

Chicago, IL 60607

ABA#071925046

ACCT#10359850

 

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Borrower
shall pay to Lender a late charge of five percent (5%) of each and every payment not received by Lender on its due date. The minimum
late charge shall, at Lender’s discretion, be $500.00. Such late charges shall be to cover the additional costs in connection
with handling of a late payment. The imposition of a late charge shall not affect the rights of Lender to declare an Event of
Default, or impose a default interest rate, as a result of a late payment.

 

Borrower
shall pay all amounts owing under this Note in full when due without set-off, counterclaim, deduction or withholding for any reason
whatsoever. If any payment falls due on a day other than a Business Day, then such payment shall instead be made on the next succeeding
Business Day, and interest shall accrue accordingly. Any payment received by Lender after 1:00 p.m. (Central Standard Time) shall
not be credited against the indebtedness under this Note until at least the next succeeding Business Day. “Business Day”
means any day excluding Saturday, Sunday, and any day which is a legal holiday under the laws of the State of Michigan or which
is a day on which Lender is otherwise closed for transacting business.

 

A
default will occur if any of the following situations occur:

 

		1.	Payment
                                         of any sums payable pursuant to the terms of this Note are not made;
	 	 	 
		2.	If
                                         Borrower opens a new bank account and fails to provide an Automatic ACH Debit Agreement
                                         covering such account within five (5) Business Days of opening such account
	 	 	 
		3.	If
                                         the terms and conditions outlined in that certain Security Agreement of even date herewith
                                         (the “Security Agreement”) are not adhered to;
	 	 	 
		4.	If
                                         the terms and conditions outlined in that certain guaranty of the obligations of Borrower
                                         to Lender are not adhered to;
	 	 	 
		5.	If
                                         the terms and conditions outlined in any of the other agreements between Borrower and
                                         Lender are not adhered to;
	 	 	 
		6.	If
                                         a default under any obligation of the Borrower to any other party
	 	 	 
		7.	As
                                         to motor vehicles or construction or earth moving equipment (whether or not registered)
                                         (collectively “Vehicles”):

 

		a.	the
                                         failure to maintain required licenses and registrations with all required government
                                         agencies;
		b.	Use
                                         by operators who are not properly licensed or trained to use such Vehicles;
		c.	operating
                                         such Vehicles in an unsafe manner, or
		d.	the
                                         failure to insure such Vehicles with liability, property and casualty insurance, naming
                                         Lender as additional insured on liability insurance and lender loss payee on property
                                         and casualty insurance, in such amounts and with such carriers as are reasonably acceptable
                                         to Lender,

 

		8.	If
                                         Borrower or any guarantor of the obligations of Borrower to Lender becomes subject to
                                         any state or Federal insolvency proceeding (each an “Event of Default”, and
                                         collectively the “Events of Default”).

 

Then
or at any time thereafter at the option of Lender, the whole of the principal sum then remaining unpaid hereunder, together with
all other sums owing hereunder, shall immediately become due and payable without notice and Lender shall be entitled to pursue
any and all rights and remedies provided by applicable law and/or under the terms of this Note and the Security Agreement, all
of which shall be cumulative and may be exercised successively or concurrently. Upon the occurrence of any Event of Default, Lender,
at its option, may at any time declare any or all other liabilities of any Obligor to Lender immediately due and payable (notwithstanding
any contrary provisions thereof) without demand or notice of any kind. In addition, Lender shall have the right to set off any
and all sums owed to any Obligor by Lender in any capacity (whether or not then due) against the Loan and/or against any other
liabilities of any Obligor to Lender.

 

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From
and after an Event of Default, and regardless of whether the Lender also elects to accelerate the Maturity Date of this Note,
the entire principal remaining unpaid hereunder shall bear an augmented annual interest rate equal to the Effective Rate plus
five percent (5%) per annum. Failure to exercise any and all rights or remedies Lender may have in the event of any such default
shall not constitute a waiver of the right to exercise such rights or remedies in the event of any subsequent default, whether
of the same or different nature. No waiver of any right or remedy by Lender shall be effective unless made in writing and signed
by Lender, nor shall any waiver on one occasion apply to any future occasion.

 

It
is the intent of the parties that any money or other property charged, taken or received as interest, a finance charge or fee
for the Loan or forbearance of any money or other property, shall not exceed the limits (if any) imposed or provided by applicable
law, and Lender hereby waives any right to demand such excess. In the event that any money or other property charged, taken or
received as interest, a finance charge or a fee under this Note exceeds the maximum interest rate permitted by applicable law,
then without further agreement or notice the obligation to be fulfilled shall be automatically reduced to such limit and all sums
received by Lender in excess of those lawfully collectible as interest shall be (a) applied against the principal of the Loan
immediately upon Lender's receipt thereof, with the same force and effect as though the payor had specifically designated such
extra sums to be so applied to principal and Lender had agreed to accept such extra payment(s) as a premium-free prepayment or
prepayments, and (b) if there are no outstanding obligations under this Note the remaining amount, if any, shall be refunded to
Borrower. During any time that the Loan bears interest (whether by application of this paragraph, the default provisions of this
Note or otherwise), interest shall be computed on the basis of the actual number of days elapsed and the actual number of days
in the respective calendar year.

 

The
Obligors hereby severally: (a) waive demand, presentment, protest, notice of dishonor, suit against or joinder of any other person,
and all other requirements necessary to charge or hold any Obligor liable with respect to the Loan; (b) waive any right to immunity
from any such action or proceeding and waive any immunity or exemption of any property, wherever located, from garnishment, levy,
execution, seizure or attachment prior to or in execution of judgment, or sale under execution or other process for the collection
of debts; (c) waive any right to interpose any set-off or non-compulsory counterclaim or to plead laches or any statute of limitations
as a defense in any such action or proceeding and waive (to the extent lawfully waivable) all provisions and requirements of law
for the benefit of any Obligor now or hereafter in force; (d) agree that all actions or proceedings arising in connection with
this Note shall be tried and litigated only in the state and federal courts located in the County of Oakland, State of Michigan
or at Lender’s option, in any court in which Lender shall initiate legal or equitable proceedings and which has subject
matter jurisdiction over the matter in controversy. Borrower waives any right it may have to assert the doctrine of forum non
conveniens or to object to such venue and hereby consents to any court ordered relief; (e) the Borrower shall be responsible
for the costs, fees (including reasonable attorneys' and paralegals' fees as well as the internal costs of the Lender and its
employees and agents) and expenses incurred by or charged to Lender to correct any default or enforce any provision of this Note,
whether or not litigation is commenced; (f) stipulate that service of process in any such action or proceeding shall be properly
made if mailed by any form of registered or certified mail (airmail if international), postage prepaid, to the address then registered
in Lender's records for the Obligor(s) so served, and that any process so served shall be effective ten (10) days after mailing;
and (g) agree that the death or mental or physical incapacity of any Obligor who is a natural person, or the dissolution or merger
or consolidation or termination of the existence of any Obligor that is a business entity (or if any person controlling such Obligor
shall take any action authorizing or leading to the same), shall at Lender's option, which option may be exercised then or at
any time thereafter, result in the Loan being then due and payable in full. No provision of this Note shall limit Lender's right
to serve legal process in any other manner permitted by law or to bring any such action or proceeding in any other competent jurisdiction.
The Obligors hereby severally consent and agree that, at any time and from time to time without notice, (i) Lender and the owners(s)
of any collateral then securing the Loan may agree to release, increase, change, substitute or exchange all or any part of such
collateral, and (ii) Lender and any person(s) then primarily liable for the Loan may agree to renew, extend or compromise the
Loan in whole or in part or to modify the terms of the Loan in any respect whatsoever; no such release, increase, change, substitution,
exchange, renewal, extension, compromise or modification shall release or affect in any way the liability of any Obligor, and
the Obligors hereby severally waive any and all defenses and claims whatsoever based thereon. Until Lender receives all sums due
under this Note in immediately available funds, no Obligor shall be released from liability with respect to the Loan unless Lender
expressly releases such Obligor in a writing signed by Lender, and Lender's release of any Obligor(s) shall not release any other
person liable with respect to the Loan.

 

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Except
as hereinafter set forth, the Borrower may not prepay this Note. Under no circumstances may there be a partial pre- payment of
this Note. The Borrower may prepay only the entire unpaid balance of this Note upon payment of a prepayment fee (the “Prepayment
Fee”) as follows:

 

Beginning
with the date of this Note and continuing through the first year of this Note, the Prepayment Fee shall be three percent (3%)
of then outstanding principal balance of this Note. The Prepayment Fee shall be two percent (2%) of then outstanding principal
balance during the second year of this Note, shall be one percent (1%) of then outstanding principal balance during the third
year of this Note, and shall be zero percent (0%) of then outstanding principal balance during the final year of this Note.

 

The
Borrower shall also pay to Lender a success fee (the “Success Fee”) in the amount of one percent (1%) of original
principal amount of this Note, to be paid on the earlier of the Maturity Date or the earlier repayment (including prepayment or
acceleration) of this Note. The Success Fee will be waived upon payment in full of all obligations under the Note at the Maturity
Date, provided that Borrower has not been late in making payment under the Note on more than two occasions. This Success Fee shall
be in addition to any Prepayment Penalty.

 

In
the event that payment of this Note shall be accelerated for any reason whatsoever by the Lender, the Prepayment Fee in effect
as of the date of such acceleration as well as the Success Fee shall be added to the outstanding balance of this Note in determining
the debt for the purposes of any judgment under this Note, or the amount of obligations secured by the Collateral described in
the Security Agreement or other collateral.

 

In
consideration of the Lender providing the Loan to the Borrower, Borrower hereby agrees that it will, within five (5) days of receipt,
provide a copy of any proposal letter, term sheet, letter of intent or commitment letter from any lender offering to Borrower
a refinance of the Loan. Lender shall have the right of first refusal to match the offer(s) of such other lender(s), and if Lender
advises Borrower that it intends to meet the financial terms set forth in such offer(s), Borrower will be obligated to enter into
an amendment to this Note extending the terms of this Note for at least the term proposed in such other offer(s), and amending
the financial terms set forth in this Note. Notwithstanding the foregoing, Borrower recognizes that this Note can only be terminated
as provided herein. Failure of Lender to meet the terms set forth in such letter of interest or commitment letter does not relieve
the Borrower from its obligations hereunder.

 

The
Obligors jointly and severally agree to pay all filing fees and similar charges and all costs incurred by Lender in collecting
or securing or attempting to collect or secure the Loan, including reasonable attorney's fees, whether or not involving litigation
and/or appellate, administrative or Bankruptcy proceedings. Without limiting the generality of the foregoing, if this Note is
collected by or through an attorney at law, then Borrower shall be obligated to pay, in addition to the principal balance hereof
and accrued interest hereon, reasonable attorneys' fees and expenses. Such attorneys' fees shall be based upon the reasonable
rates of Lender's attorneys, and not based upon a percentage of the obligations due under this Note. The Obligors jointly and
severally agree to pay any documentary stamp taxes, intangibles taxes or other taxes (except for federal income taxes based on
Lender's net income) which may now or hereafter apply to this Note or the Loan or any security therefore, and the Obligors jointly
and severally agree to indemnify and hold Lender harmless from and against any liability, costs, attorney's fees, penalties, interest
or expenses relating to any such taxes, as and when the same may be incurred. The Obligors jointly and severally agree to pay
on demand, and to indemnify and hold Lender harmless from and against, any and all present or future taxes, levies, imposts, deductions,
charges and withholdings imposed in connection with the Loan by the laws or governmental authorities of any jurisdiction other
than the State of Michigan or the United States of America, and all payments to Lender under this Note shall be made free and
clear thereof and without deduction therefor, and further indemnify and hold the Lender harmless from any liability of any kind.

 

This
Note shall be governed by, and construed and enforced in accordance with, the laws of the State of Michigan.

 

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Any
provision of this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction only, be ineffective
only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the
validity or enforceability of such provision in any other jurisdiction. To the extent that the Obligors may lawfully waive any
law that would otherwise invalidate any provision of this Note, each of them hereby waives the same, to the end that this Note
shall be valid and binding and enforceable against each of them in accordance with all its terms.

 

If
this Note is signed by more than one person, then the term "Borrower" as used in this Note shall refer to all  such
persons jointly and severally, and all promises, agreements, covenants waivers, consents, representations, warranties and other
provisions in this Note are made by and shall be binding upon each and every undersigned person, jointly and severally. The term
"Lender" shall be deemed to include any subsequent holder(s) of this Note. Whenever used in this Note, the term "person"
means any individual, firm, corporation, trust or other organization or association or other enterprise or any governmental or
political subdivision, agency, department or instrumentality thereof. Whenever used in this Note, words in the singular include
the plural, words in the plural include the singular, and pronouns of any gender include the other genders, all as may be appropriate.

 

Time
shall be of the essence with respect to the terms of this Note. This Note cannot be changed or modified orally. Lender shall have
the right unilaterally to correct patent errors or omissions. Except as otherwise required by law or by the provisions of this
Note, payments received by Lender hereunder shall be applied first against expenses and indemnities, next against interest accrued
on the Loan, and next in reduction of the outstanding principal balance of the Loan, except that from and after any default under
this Note, Lender may apply such payments in any order of priority determined by Lender in its exclusive judgment. Borrower shall
receive immediate credit on payments only if made in the form of a federal wire transfer of cleared funds . Except as otherwise
required by the provisions of this Note, any notice required to be given to any Obligor shall be deemed sufficient if made personally,
if sent via electronic mail to the email address on file with the Lender or if mailed or sent by overnight courier, postage prepaid,
to such Obligor's address as it appears in this Note (or, if none appears, to any address for such Obligor then registered in
Lender's records). Lender may grant participations in all or any portion of, and may assign all or any part of Lender's rights
under, this Note. Lender may disclose to any such participant or assignee any and all information held by or known to Lender at
any time with respect to any Obligor. If Borrower or any other Obligor is a partnership, then all general partners thereof shall
be liable jointly and severally for all obligations under this Note and for all other covenants, agreements, undertakings and
obligations of Borrower in connection with the Loan, notwithstanding any contrary provision of the partnership laws of the State
of Michigan. All of the terms of this Note shall inure to the benefit of Lender and its successors and assigns and shall be binding
upon each and every one of the Obligors and their respective heirs, executors, administrators, personal representatives, successors
and assigns, jointly and severally.

 

The
proceeds of this Note shall be used exclusively for business purposes and not for household, family or personal use.

 

LENDER
AND BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO TRIAL BY JURY IN RESPECT TO ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED
IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS, (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER
PARTY. BORROWER ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL IS A MATERIAL INDUCEMENT TO LENDER IN EXTENDING CREDIT TO THE BORROWER,
THAT THE LENDER WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND THAT BORROWER HAS BEEN REPRESENTED BY
AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH THIS JURY TRIAL WAIVER AND UNDERSTANDS THE
LEGAL EFFECT OF THIS WAIVER.

 

This
Note is secured by, inter alia, a security interest in all of the Borrower's personal property, including, without limitation,
all accounts receivable, inventory, equipment and fixtures and all other personal property as more fully set forth in the Security
Agreement dated on or about the date hereof, and the holder of this Note is entitled to the benefits of said security interest.

 

The
Lender may assign this Note and the Loan from time to time, and the Borrower agrees to make payments as instructed by Lender or
its assignees from time to time.

 

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WITNESS
the due execution hereof as of the date first above written.

 

BORROWER:Studioplex
City Rentals LLC

 

	Signature:	 	 
	Print
    Name:	Joel
    A. Shapiro	 
	Title:	Chairman
and CEO	 
	Date:	 	 

 

	STATE
    OF	                                                                  )  	 
	 	                                                           )
    SS   	 
	COUNTY
OF	                                                                  )  	 

 

I
HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take
acknowledgments, the foregoing instrument was acknowledged before me by Joel A. Shapiro, the Chairman and CEO of Studioplex City
Rentals LLC, a Georgia limited liability company, freely and voluntarily under authority duly vested in him by said limited liability
company.

 

Joel
A. Shapiro is personally known to me or who has produced  __________ as identification.

 

WITNESS
my hand and official seal in the County and State last aforesaid this __ day of June, 2015.

 

__________________

Notary
Public

 

__________________

Typed,
printed or stamped name of Notary Public

 

My
Commission Expires:

 

CONFIDENTIAL

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