Document:

Exhibit 4.7

Exhibit 4.7

DEED OF TRUST AND SECURITY AGREEMENT

THIS DEED OF TRUST AND SECURITY AGREEMENT (the “Deed of Trust”) is made this 31st day
of March, 2009, by HOME SOLUTIONS OF AMERICA, INC, a Delaware corporation, organizational
identification number 2844384 and f/k/a Nextgen Communications Corporation (the “Grantor”),
with a mailing address at 1340 Poydras Street, Suite 1800, New Orleans, Louisiana 70112, to PETER
GRAF, Trustee (the “Trustee”), with a mailing address at First American Title Insurance
Company, 2626 Howell Street, 10th Floor, Dallas, Texas 75204, for the benefit of PW STEPHENS
ENVIRONMENTAL, INC., a Delaware corporation, with a mailing address at 15201 Pipeline Lanes #B,
Huntington Beach, California 92649 (together with its successors or assigns, the
“Beneficiary”).

WITNESSETH

WHEREAS, the Beneficiary has extended a loan (the “Loan”) to Home Solutions
Restoration of Louisiana, Inc., a Louisiana corporation and wholly owned subsidiary of Grantor
(“Borrower”) as evidenced by that certain Promissory Note dated July 3, 2008 in the
original principal amount of Five Hundred Thousand Dollars ($500,000.00) with a maturity date of
September 1, 2008, together with all renewals, extensions or amendments thereof (collectively, the
“Note”), and additional documents evidencing, securing or otherwise documenting the terms
and conditions of the Loan (collectively, “Original Loan Documents”).

WHEREAS, in consideration of Beneficiary’s agreement to forbear exercising its rights and
remedies under the Original Loan Documents as contemplated by a letter agreement, dated the date
hereof, by Beneficiary and accepted and agreed to by Grantor and Borrower, Grantor has guaranteed
to the Beneficiary the obligations of payment and performance owed by the Borrower to the
Beneficiary with respect to the Loan and various other duties of payment and performance pursuant
to a Guaranty of even date herewith as the same may be amended, modified, replaced and/or restated
from time to time (the “Guaranty”). The Grantor has agreed to secure the Grantor’s
obligations to the Beneficiary which arise out of, relate or pertain to the Guaranty by the
execution of this Deed of Trust.

WHEREAS, the Grantor desires to secure to the Beneficiary (a) the full and punctual payment to
the Beneficiary of any and all sums owed by the Grantor to the Beneficiary in accordance with the
terms of the Guaranty including, without limitation, all guaranty, indemnification, and suretyship
obligations assumed by the Grantor in accordance with the terms of the Guaranty; (b) the
performance by the Grantor of all the terms, covenants and conditions contained in this Deed of
Trust and in the Guaranty; (c) the repayment of all sums which are at any time or from time to time
advanced or paid by the Beneficiary in accordance with the authorizations contained in this Deed of
Trust; and (d) the payment of all of the costs, fees, commissions, and expenses of the Beneficiary
and the Trustee in enforcing the provisions of the Guaranty and this Deed of Trust (collectively,
the “Obligations”).

 

 

 

GRANTING CLAUSES

NOW, THEREFORE, in consideration of the terms and conditions of this Deed of Trust and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and
to secure the full and absolute payment and performance of each of the Obligations, and any other
indebtedness of the Grantor to the Beneficiary, as well as all future advances, and the strict
observance and performance of all of the provisions of the Guaranty and this Deed of Trust, and
under all other documents and instruments evidencing or giving rise to any other indebtedness of
the Grantor to the Beneficiary, including the repayment of all sums advanced, to be advanced, or
which may be advanced by the Beneficiary pursuant to or under authorizations contained in this Deed
of Trust, the Grantor grants, pledges, assigns, transfers, and conveys to the Trustee all that lot
of ground situated and lying in Harris County, Texas, and more particularly described on
Exhibit A, attached hereto and made a part hereof (the “Land”).

TOGETHER with all buildings, structures, or improvements, and replacements thereof, now or
hereafter existing on or to be erected upon the Land and all materials intended for construction,
reconstruction, alterations and repairs of such improvements now or hereafter erected thereon, all
of which materials shall be deemed to be included within the premises hereby conveyed immediately
upon the delivery thereof to the premises (collectively, the “Improvements”). The Land and
Improvements are hereafter collectively referred to as the “Real Property”.

AND TOGETHER WITH all plant, equipment, apparatus, machinery, fittings, appliances, furniture,
furnishings, fixtures and other chattels and personal property and replacements thereof, now or at
any time hereafter affixed or attached to, incorporated in, placed upon, or in any way used in
connection with the current or future utilization, enjoyment, occupation or operation of the Real
Property including all plans, drawings, specifications, contracts, deposits and all general
intangibles relating to the development of the Real Property (hereinafter collectively referred to
as the “Personalty”), all of which the Grantor declares to be fixtures and permanent
additions to the Real Property. To the extent all or any of the items of Personalty are not or
have not yet become fixtures and permanent additions to and a part of the Real Property and are
instead personal property, the Grantor grants and conveys to the Beneficiary a continuing security
interest under the Texas Uniform Commercial Code, as amended, in all of such items of
personal property and the proceeds and products thereof, as well as in all substitutions, renewals
and replacements thereof and in all of such items hereafter acquired and constituting after
acquired property, for so long as such items are or remain personal property and not fixtures and
permanent additions to the Real Property, for the purpose of securing performance of all of
Grantor’s obligations hereunder. The provisions hereof shall not apply to machinery apparatus,
equipment fittings, fixtures and articles of personal property used in the business of Grantor’s
lessees whether the same are annexed to the Real Property or not, unless the same are also used in
the operation of any building located thereon. With respect to such security interest (a) the
Beneficiary may exercise all rights granted or to be granted a secured party under the Uniform
Commercial Code, and (b) upon the occurrence of an Event of Default the Beneficiary shall have a
right of possession superior to any right of possession of the Grantor or any person claiming
through or on behalf of the Grantor.

 

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AND TOGETHER WITH a security interest in all amounts that may be owing at any time and from
time to time by the Beneficiary to the Grantor in any capacity, including, but not limited to, any
balance or share belonging to the Grantor of any deposit or other account with the Beneficiary.

AND TOGETHER WITH all easements, rights, privileges, and appurtenances thereunto belonging or
in any way appertaining, and all of the right, title, interest, estate or claim of the Grantor in
or to the streets, ways, alleys and waters, water rights, water courses, riparian rights, other
rights, liberties and privileges thereof or in any way now or hereafter appertaining, including any
claim at law or in equity, as well as any after-acquired title, franchise or license and reversion
and reversions and remainder and remainders thereof adjoining or adjacent to the Real Property,
whether now existing or hereafter acquired.

AND TOGETHER WITH all rights, benefits, profits, rents and monies payable under, by reason of
or with respect to any restrictive covenants, easements, agreements applicable to adjoining lands
or contracts of sale with respect thereto with the right to collect any sums of money at any time
payable to the Grantor in consequence of such rights and benefits, including the release,
modification or amendment thereof, for application to sums then due and owing the Beneficiary under
the Guaranty or this Deed of Trust, and to utilize any collection or enforcement rights or remedies
to collect the same available to the Grantor under law, as to all of which, and the proceeds and
products thereof, the Grantor hereby grants to the Beneficiary a continuing security interest in
and to.

All of the aforementioned property is hereafter referred to collectively as the “Secured
Property”.

AND ALSO TOGETHER WITH (i) all of the proceeds of the voluntary or involuntary conversion of
the Secured Property or any part of the Secured Property into cash or liquidated claims, whether by
way of condemnation, insured casualty, judgment or otherwise, as well as a security interest which
is hereby granted to the Beneficiary in the same, (ii) all rents, profits and benefits, including
any deposits of tenants to secure payment of the same and performance of the terms and conditions
of any oral or written lease, with respect to the leasing of all or any portion of the Real
Property, with the right to collect such rents, profits and benefits at any time for application to
sums then due and owing the Beneficiary under the Guaranty or this Deed of Trust, and to utilize
any collection or enforcement rights or remedies available to the Grantor under law or any written
lease, but without any duty or obligation to perform on behalf of the Grantor any of the Grantor’s
duties or obligations to any lessee, and (iii) all revenues and profits, accounts receivable and
contract rights, including any deposits of purchasers to secure payment of the contract price and
performance of the terms and conditions of any contract of sale for the Real Property, with the
right to collect the same at any time for application to sums then due and owing the Beneficiary
under the Guaranty or this Deed of Trust and to utilize any collection or enforcement rights or
remedies available to the Grantor under law or any contract of sale, but without any duty or
obligation to perform on behalf of the Grantor any of the Grantor’s duties or obligations to any
purchase of the Real Property.

TO HAVE AND TO HOLD the Real Property to the Trustee, and the Trustee’s successors and assigns
in fee simple.

 

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SUBJECT TO, the legal operation and effect of the Deed of Trust and Security Agreement dated
October 29, 2002 and recorded among the Land Records of Harris County, Texas as Instrument
###-##-#### from Grantor for the benefit of Cheyenne Capital Corp. (“Cheyenne”), as now in
effect or as hereafter amended (“Prior Deed of Trust”)

IN TRUST, for the benefit and security of the Beneficiary to secure the full, complete, timely
and absolute payment, performance, completion, and satisfaction of each of Obligations, whether
such Obligations are existing or hereafter arising; provided, however, that if all of the
Obligations are duly paid, performed, completed and finally satisfied with no contingent or other
remaining claims, then all interests of the Trustee in the Secured Property shall cease and be
deemed to be terminated and the Trustee shall release and reconvey the Secured Property to the
Grantor and terminate this Deed of Trust at the sole cost and expense of the Grantor.

ARTICLE I

COVENANTS AND AGREEMENTS OF THE GRANTOR

The Grantor covenants and agrees as follows:

1.1 Repayment. The Grantor shall pay punctually all of the Obligations, together with
interest thereon and any penalty, fee, charge, deposit, escrow or assessment, at the times and in
the manner and amounts set forth in the Guaranty and any amendment, substitution, extension or
renewal thereof, this Deed of Trust, or as set forth in any other agreement or writing between the
Beneficiary and the Grantor relating or pertaining to any of the Obligations.

1.2 Performance. The Grantor shall perform fully all duties, obligations, and
requirements and comply in all respects with the Obligations, including without limitation each of
the terms, covenants, conditions, representations and warranties of this Deed of Trust and the
Guaranty.

1.3 Taxes and Expenses. The Grantor shall pay and discharge, when and as the same
come due, all taxes of every kind and nature, real and personal; all general and special
assessments and levies; all water, sewer and other utility charges, rents and assessments; and any
and all other public charges, dues, levies, impositions, or assessments of a like or different
nature, imposed upon or assessed against the Secured Property or the rents, issues, income or
profits thereof, and which are or may become liens against the same, as well as any ground rent to
which the Real Property may be subject, and the Grantor will not permit to exist any lien or
security interest which may be a lien or security interest superior to the lien and security
interest of this Deed of Trust other than (a) liens for taxes, assessments, levies, fees, rents,
ground rents and public charges not yet delinquent, and (b) liens and security interests to which
the Beneficiary has specifically and in writing consented and with respect to which the Grantor has
paid currently all sums secured thereby. The Grantor will, upon the request of the Trustee or the
Beneficiary, deliver to the Trustee or the Beneficiary receipts evidencing the payment of all such
taxes, assessments, levies, fees, rents, ground rents and public charges imposed upon or assessed
against the Secured Property, or the revenues, rents, issues, income or profits thereof, as well as
the payment of all superior liens and security interests with respect to which the Beneficiary may
have consented.

 

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1.4 Insurance. The Grantor shall obtain and shall at all times during the term hereof
maintain the following insurance coverages:

1.4.1 Casualty Insurance. The Grantor will keep the Secured Property insured against
loss by fire, casualty and other such hazards and contingencies as may be specified by the Trustee
or the Beneficiary for the benefit of the Beneficiary. Such insurance shall be written in forms,
amounts and by companies satisfactory to the Trustee or the Beneficiary, but in any event shall be
in an amount sufficient to prevent co-insurance liability, and the losses thereunder shall be
payable to the Beneficiary alone, and not to the Grantor and the Beneficiary or the Trustee,
jointly. The Beneficiary shall be named as mortgagee on the policies and such policies shall state
that the Beneficiary will be provided at least thirty (30) days’ written notice before
cancellation, lapse or modification. The policy or policies of such casualty insurance shall be
delivered to and retained by the Beneficiary, and the Grantor shall provide the Beneficiary with
receipts evidencing the payment of all premiums due on such policies. The Grantor shall give the
Beneficiary prompt notice of any loss covered by such casualty insurance, and the Trustee and the
Beneficiary shall have the right to join the Grantor in adjusting any loss covered by an insurance
policy. All monies received as payment for a loss covered by an insurance policy shall be paid
over to the Beneficiary to be applied, at the option of the Beneficiary, either to the prepayment
of the Obligations or to the payment of other charges or expenses actually incurred by the Grantor
in the restoration, reconstruction, repair, renovation or replacement of the Secured Property. The
Grantor may not take out separate insurance concurrent in form or contributing in the event of loss
with that required to be maintained above unless the Beneficiary is included thereon as a mortgagee
with losses payable to the Beneficiary as above provided. The Grantor shall immediately notify the
Beneficiary whenever any such separate insurance is taken out and shall promptly deliver to the
Beneficiary the policy or policies of such insurance.

1.4.2 Liability Insurance. The Grantor shall obtain and maintain public liability and
property damage insurance in such amounts, with such insurance companies and upon policy forms
acceptable to and approved by the Beneficiary, but, in any event, in an amount of not less than One
Million Dollars ($1,000,000.00) per occurrence and Three Million Dollars ($3,000,000.00) in the
aggregate. The Grantor shall supply the Beneficiary with copies of such liability insurance policy
and receipts evidencing the payment of premiums due thereon or, alternatively, certificates from
the insurance company certifying to the existence of the policy, summarizing the terms of the
policy and indicating the payment of premiums due thereon. The Beneficiary shall be named as an
additional insured on the policy and such policy shall state that the Beneficiary will be provided
at least thirty (30) days’ prior written notice before cancellation, lapse or modification.

1.4.3 Flood Insurance. In the event that at any time all or any portion of the Real
Property is determined to be located in a specially designated flood hazard area, the Grantor shall
obtain and maintain flood hazard insurance in the full insurable value of the improvements on or to
be constructed on the Real Property or the full amount of coverage available, if less than the full
insurable value of the improvements, naming the Beneficiary as the mortgagee. The Grantor shall be
required to provide flood hazard insurance as described, unless the Grantor’s insurance broker
certifies to the Beneficiary in writing that the Real Property is not in a flood hazard area. The
proceeds of any loss payable under a flood insurance policy shall be applied, at the option of the
Beneficiary, to restore, renovate, repair or rebuild the improvements, upon such terms and
conditions as the Beneficiary may deem reasonably appropriate at such time, or shall be applied to
the Grantor’s indebtedness to the Beneficiary, in inverse order of maturity, without prepayment
penalty, and the balance of such proceeds, if any, shall be paid to the Grantor.

 

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1.5 Advances. If the Grantor should fail to perform any of the covenants contained in
Sections 1.3 and 1.4 of this Deed of Trust or to protect or preserve the Secured Property or the
status and priority of the lien and security interest of this Deed of Trust, the Trustee or the
Beneficiary may make advances to perform the same on behalf of the Grantor or to protect or
preserve the Secured Property or the status and priority of the lien and security interest of this
Deed of Trust, and all sums so advanced shall immediately upon advancement become a lien and
security interest upon the Secured Property and shall be secured by this Deed of Trust.
Beneficiary in making any payment for Grantor, relating to taxes, assessments, water rates, sewer
rentals and other governmental, metropolitan or municipal charges, fines, impositions or liens
asserted against the Secured Property may do so according to any bill, statement or estimate
procured from the appropriate public office without inquiry into the accuracy of the bill,
statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or
title or claim thereof or relating to any apparent or threatened adverse title, lien, statement of
lien, encumbrance, claim or charge, and Beneficiary shall be the sole judge of the legality or
validity of same. The Grantor will repay on demand all sums so advanced on the Grantor’s behalf,
plus any expenses or costs incurred by the Trustee or the Beneficiary, including attorneys’ fees,
with interest thereon at the rate provided for in the Note. The provisions of this section shall
not be construed to prevent the institution of foreclosure or other rights and remedies of the
Trustee in the event of a default by the Grantor. Anything to the contrary notwithstanding, the
authorization contained in this section shall impose no duty or obligation on the Trustee or the
Beneficiary to perform any action or make any advances on behalf of the Grantor and is for the sole
benefit and protection of the Beneficiary.

1.6 Condition and Use of Improvements. The Grantor will not at any time abandon the
Secured Property or commit any waste on the Secured Property or make any change in the use of the
Secured Property which will in any way increase any ordinary fire or other hazard insurance risk
arising out of the construction of Improvements on or operation of the Secured Property. The
Grantor will at all times maintain and keep the Secured Property in good operating order and
condition and will promptly make, from time to time, all repairs, renewals, replacements, additions
and improvements in connection therewith which are needed or desirable. The Grantor will fully and
strictly comply with all statutes, ordinances, rules, regulations or laws affecting the Secured
Property or the use thereof. The Improvements shall not be removed, demolished or substantially
altered, nor shall any Personalty be removed therefrom, without the prior written consent of the
Trustee or the Beneficiary, except where appropriate replacements, free of superior title, liens,
security interests or claims are immediately made of a value at least equal to the values of the
Personalty removed. The Grantor will permit the Trustee or the Beneficiary, or their agents or
employees, at all times to enter and inspect the Secured Property.

1.7 Inspection and Repairs. The Beneficiary shall have the right, at any time and
from time to time to engage an appropriate agent or other party to survey the adequacy of the
maintenance of the Secured Property. If found inadequate, such agent or party shall determine the
estimated cost of such repairs and replacements. In such event, at the option of Beneficiary and
within thirty (30) days after written demand therefor, a sum equal to the amount of such estimated
costs shall thereupon become due and payable by Grantor to be applied upon the indebtedness secured
hereby unless within such period Grantor, at its own cost and expense, shall have completed or
shall have commenced and thereafter, with diligence, completed such repairs and replacements. In
such event, Grantor shall also reimburse the Beneficiary for the cost of such survey, the same
being secured hereby. If the survey
determines such maintenance to be adequate, then the cost thereof shall be at the expense of
Beneficiary.

 

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1.8 Transfer or Encumbrance. Without prior written consent of the Trustee or the
Beneficiary, title to all or any portion of the Secured Property may not be acquired by any person,
individual, partnership, limited liability company or corporation, other than the Grantor, by
voluntary or involuntary conveyance, transfer, grant or assignment, by operation of law, or in any
other manner, or become encumbered or charged with a lien or security interest of any kind or
variety, whether voluntary or involuntary, including any mechanic’s or materialmen’s lien or
judgment lien, senior, junior or equal to the lien and security interest of this Deed of Trust. In
the event the Grantor is a corporation, limited liability company or a general or limited
partnership, a conveyance, transfer, grant or assignment of, or a pledge, encumbrance or creation
of a lien or security interest in, shares of stock, membership interests or partnership interests
(whether or not such transaction is with respect to all or only a part of the total number of
outstanding shares of stock, membership interests or the total percentage of partnership interest,
or is in a single transaction or a series of transactions), from a person holding shares of stock,
membership interests or partnership interests in the Grantor on the date of this Deed of Trust to a
person not holding shares of stock, membership interests or partnership interests in the Grantor on
the date of this Deed of Trust, shall be considered to be a conveyance, transfer, grant or
assignment of, or pledge, encumbrance or creation of a lien or security interest in the Secured
Property, and shall be subject to the provisions of this Section. Anything to the contrary
notwithstanding, in the event the ownership of the Secured Property becomes vested in a person,
individual, partnership or corporation other than the Grantor, the Trustee or the Beneficiary may,
without notice to the Grantor, deal with such successor or successors in interest with reference to
this Deed of Trust and the indebtedness secured by it in the same manner as with the Grantor, and
any extension of the time of the indebtedness or any other modifications of the terms of the
indebtedness at the instance of the then owner of the Secured Property shall not relieve the
Grantor of the Grantor’s liability on the Guaranty hereby secured or from the performance of any of
the covenants and agreements contained herein or any of the covenants, terms, conditions,
provisions, representations or warranties contained in the Credit Documents, whether the extension
or modification is made with or without the consent of the Grantor.

1.9 Condemnation and Allocation of Condemnation Awards. Grantor, immediately upon
obtaining knowledge of the institution of any proceeding for a condemnation of the Secured Property
or any portion thereof, will notify the Trustee and the Beneficiary of such proceedings. The
Trustee or the Beneficiary may participate in any such proceedings, and Grantor will, from time to
time, deliver to the Trustee or the Beneficiary all instruments requested by them to permit such
participation. Any award or payment made as a result of any condemnation shall be paid to the
Trustee and the Beneficiary, jointly, to be applied, at Beneficiary’s option, to the restoration of
the remainder of the Secured Property, or to prepayment of the Obligations, in inverse order of
maturity, without prepayment penalty. All moneys not utilized for the repair or restoration of the
remainder of the Secured Property shall be applied as a prepayment of the Obligations, in inverse
order of maturity, without prepayment penalty. The application of any award or payment as a
prepayment of the Obligations shall take effect only on the actual date of the receipt of the
payment or award by the Trustee and the Beneficiary. In the event any payment or award is used to
restore the Secured Property, neither the Trustee nor the Beneficiary shall be obligated to see to
the proper allocation thereof nor shall any amount so used be deemed a payment of any indebtedness
secured by this Deed
of Trust. Payments or awards to be used for restoration purposes shall be held by the
Beneficiary and disbursed under such terms and conditions, to such persons, and at such times, as
Beneficiary may determine.

 

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1.10 Future Advances; Readvances. The Beneficiary may make future advances to the
Grantor and may advance or, upon repayment by Grantor, readvance funds to the Grantor and all such
future advances and readvances shall be fully secured by the lien and security interest of this
Deed of Trust.

1.11 Zoning, Etc.; Restrictive Covenants. The Grantor shall fully and strictly comply
with all applicable rules and regulations of the federal, state and local governmental authorities
having jurisdiction over the Secured Property and will also fully and strictly comply with all
restrictions, covenants, easements, set backs and other limitations on the use of the Secured
Property contained in documents of public record. In the event any political subdivision in which
the Secured Property is located adopts any law, ordinance, or regulation which imposes a limitation
on the uses to which the Secured Property can be devoted should the Secured Property be sold,
assigned, transferred or in any manner disposed of, the Grantor shall not consummate any such sale,
assignment, transfer or disposition (if permitted hereunder) without the prior written consent of
the Beneficiary.

1.12 No Consent to Changes of Restrictions, etc. Without the prior written consent of
the Beneficiary, the Grantor shall not initiate, join in, or consent to any change in, any
restrictive covenant, easement, zoning ordinance, or other public or private restrictions, limiting
or defining the uses which may be made of the Secured Property or any part thereof. The Grantor
shall promptly perform and observe, or cause to be performed and observed, all of the terms,
covenants and conditions of all instruments of record affecting this Deed of Trust, or which may
impose any duty or obligations upon the Grantor or any lessee or other occupant of the Secured
Property, or any part thereof, and the Grantor shall do or cause to be done all things necessary to
preserve intact and unimpaired any and all easements, appurtenances and other interests and rights
in favor of or constituting any portion of the Premises.

1.13 Preservation of Lien. The Grantor shall take all steps and do all things
necessary, convenient or proper to establish and maintain the priority and status of the lien and
security interest in the Secured Property established or intended to be established by this Deed of
Trust, except and only to the extent the Beneficiary may have specifically and in writing consented
to the existence of a senior lien or security interest.

1.14 Security Agreement; Fixture Filing. This Deed of Trust shall also constitute a
security agreement and fixture filing from the Grantor to the Beneficiary under the Texas
Uniform Commercial Code, as amended. The Grantor authorizes the Beneficiary to file with the
local and central filing offices such financing and continuation statements as may be required in
the Beneficiary’s sole opinion to perfect or continue as perfected the security interest created by
this Deed of Trust.

 

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1.15 Maintenance of Equipment. The Grantor, with respect to the equipment, appliances
and other personalty subject to the security interest created hereunder (collectively, the
“Equipment”), shall (i) maintain the Equipment in good order and repair; (ii) maintain
possession and indefeasible
ownership and title of the Equipment and not lease the Equipment to any person or entity
without the written consent of the Beneficiary; (iii) keep the value of the Equipment protected and
preserved; (iv) permit the Beneficiary or its designated representative to inspect the Equipment at
any and all reasonable times; and, (v) maintain the Equipment and its components at the Real
Property.

1.16 Further Assurances. At any time, and from time to time, upon request by the
Beneficiary, the Grantor, at the sole expense of the Grantor, will make, execute, deliver and
record any and all further instruments, certificates and other documents as may, in the opinion of
the Beneficiary, be necessary or desirable in order to effectuate, complete, perfect or to continue
and preserve the obligation of the Grantor under the Guaranty or this Deed of Trust, and all
modifications, extensions, and other amendments of the same. Upon any failure by the Grantor so to
do, the Beneficiary may make, execute and record any and all such instruments, certificates and
documents for and in the name of Grantor, and at the sole expense of the Grantor, and the Grantor
hereby irrevocably appoints the Beneficiary the agent and attorney-in-fact of the Grantor so to do,
this appointment being coupled with an interest. The Beneficiary may, at its option, advance the
expenses incurred in making, executing and recording any and all such instruments, certificates and
documents, and the Grantor shall reimburse the Beneficiary for any such sums advanced, and the
same shall be part of the indebtedness secured by the lien of this Deed of Trust. With respect to
any financing statement, the Grantor agrees that carbon, photographic or other reproduction of a
security agreement or a financing statement is sufficient as a financing statement for purposes of
the Texas Uniform Commercial Code.

1.17 Prior Deed of Trust. The Grantor shall take all steps and do all things
necessary, convenient or proper to cause Cheyenne to record a release of the lien evidenced by the
Prior Deed of Trust in the Land Records of Harris County, Texas.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

2.1 Commercial Loan. The Grantor warrants that this is a commercial loan transaction.

2.2 Warranty of Title. The Grantor warrants generally the Secured Property and that
it has good and marketable title thereto, and that it will forever warrant and defend the same and
the validity and priority of the lien and security interest of this Deed of Trust, to the Trustee
and the Beneficiary against the claims of any and all other persons. The Grantor further warrants
that Grantor will execute such other and further assurances as may be requisite.

2.3 Organizational Status. Grantor is a corporation formed under the laws of the
State of Delaware and is in good standing in the State of Delaware and is duly qualified to do
business in the State of Texas and is in good standing in the State of Texas. The Grantor shall
maintain in good standing and in full force and effect the Grantor’s franchise with the State of
Delaware and all rights and privileges incident thereto, and the Grantor shall at all times remain
registered and qualified to transact business in the State of Delaware and the State of Texas.

 

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2.4 Environmental Requirements. The Grantor covenants and warrants that there are no
materials presently located on the Secured Property which, under federal, state or local law,
statute,
ordinance or regulations; or court or administrative order or decree; or private agreement
(hereinafter collectively referred to as the “Environmental Requirements”), require special
handling in collection, storage, treatment, or disposal (collectively, “Hazardous
Materials”) and that Grantor will not place or permit to be placed any such Hazardous Materials
on the Secured Property. Grantor hereby covenants and agrees that, if at any time it is determined
that there are Hazardous Materials located on the Secured Property, Grantor shall, within thirty
(30) days after written notice thereof, take or cause to be taken, at its sole expense, such
actions as may be or necessary to comply with all Environmental Requirements. If Grantor shall
fail to take such action, the Beneficiary or Trustee may make advances or payments towards
performance or satisfaction of the same but shall be under no obligation to do so. All sums so
advanced or paid, including all sums advanced or paid in connection with any judicial or
administrative investigation or proceeding relating thereto, including, without limitation,
reasonable attorneys’ fees, fines or other penalty payments, shall be at once repayable by Grantor
and shall bear interest at the rate of one (1) percentage point per annum above the rate set forth
in the Note, from the date the same shall become due and payable until the date paid, and all sums
so advanced or paid, with interest as stated above, shall become a part of the indebtedness secured
hereby. Failure of Grantor to comply with all Environmental Requirements shall constitute and be
an Event of Default under this Deed of Trust. Grantor shall indemnify, hold harmless and defend
Beneficiary, its officers, directors, shareholders, partners, employees and trustees and the heirs,
legal representatives, successors and assigns of each of the foregoing from and against all
proceedings, claims, damages, penalties and costs, including fees and out-of-pocket expenses of
attorneys and expert witnesses, investigatory fees, and remediation costs, whether incurred in
connection with any judicial or administrative process or otherwise, arising directly or indirectly
from any breach by Grantor of any covenant, representation or warranty set forth in this
Section 2.4. Grantor will remain totally liable hereunder regardless of any other
provisions which may limit recourse. The provisions of this Section 2.4 shall survive
indefinitely.

2.5 Cheyenne Note. The Grantor has paid in full all amounts due under that certain
Note by Grantor in favor of Cheyenne in the original principal amount of $750,000 and owes no other
amounts to Cheyenne.

ARTICLE III

EVENTS OF DEFAULT

The following shall constitute “Events of Default” under this Deed of Trust and shall
entitle the Trustee or the Beneficiary to exercise all rights and remedies provided in Article IV:

3.1 Failure to Pay. A default in the payment of any Obligations or of any fee,
charge, penalty, deposit, escrow assessment or advance called for in the Guaranty or this Deed of
Trust, when and as the same are due and payable, time being of the essence.

 

10

 

3.2 Failure to Perform. A failure to perform or observe any of the Obligations or any
default under any terms, covenants, conditions or provisions of the Guaranty or this Deed of Trust.

3.3 Representations and Warranties. If any representation or warranty herein or any
statement or representation made in any report, opinion, schedule, certificate or any other
information given by the Grantor to Beneficiary shall prove to be false or incorrect in any
material respect on the date as of which made.

3.4 Involuntary Bankruptcy. The entry of a decree or order for relief by a court
having jurisdiction against or with respect to the Grantor in an involuntary case under the federal
bankruptcy laws or any state insolvency or similar laws ordering the liquidation of the Grantor or
a reorganization of the Grantor or the Grantor’s business and affairs of the appointment or a
receiver, liquidator, assignee, custodian, trustee or similar official for the Grantor or any of
the Grantor’s property, including but not limited to the Secured Property, and the failure to have
such decree, order or appointment discharged or dismissed within sixty (60) days from the date of
entry.

3.5 Voluntary Bankruptcy. The commencement by the Grantor of a voluntary case under
the federal bankruptcy laws or any state insolvency or similar laws or the consent by the Grantor
to the appointment or taking possession by a receiver, liquidator, assignee, trustee, custodian or
similar official for the Grantor or any of the Grantor’s property, including but not limited to the
Secured Property, or the making by the Grantor of an assignment for the benefit of creditors, or
the failure by the Grantor generally to pay the Grantor’s debts as they become due.

3.6 Unauthorized Transfer or Encumbrance. A transfer or encumbrance in contravention
of Section 1.8 of Article I hereof; provided, however, that if any judgment, mechanic’s or
materialman’s, or other involuntary lien is satisfied or discharged, whether by payment, bond or
otherwise, within thirty (30) days from the date it becomes a lien on the Secured Property, the
establishment of such lien shall not constitute an Event of Default.

3.7 Existence of Senior Lien in Bankruptcy. The existence of a lien or security
interest senior or of equal priority to the lien and security interest of this Deed of Trust
created pursuant to Section 364 of the Bankruptcy Reform Act of 1978, as amended.

3.8 Default under Permitted Liens. A default under any document or instrument
creating a permitted lien or security interest in the Secured Property, whether senior, junior or
of equal priority to the lien and security interest of this Deed of Trust, to which Beneficiary has
consented in writing.

3.9 Cross Default. A default under any obligation or indebtedness, other than the
obligations and indebtedness secured by this Deed of Trust, owed by the Grantor or any guarantor of
payment or performance of the Grantor to the Beneficiary or to any other lender, regardless of when
created or whether secured or unsecured.

 

11

 

ARTICLE IV

RIGHTS ON EVENT OF DEFAULT

4.1 Acceleration; Remedies. At any time during the existence of an Event of Default,
Beneficiary, at Beneficiary’s option, may declare the Obligations to be immediately due and payable
without further demand, and may invoke the power of sale and any other remedies permitted by Texas
law or provided in this Deed of Trust or in the Guaranty. Grantor acknowledges that the power of
sale granted in this Deed of Trust may be exercised by Beneficiary without prior judicial hearing.
Beneficiary shall be entitled to collect all costs and expenses incurred in pursuing such remedies,
including attorneys’ fees, costs of documentary evidence, abstracts and title reports.

(a) If Beneficiary invokes the power of sale, Beneficiary may, by and through the Trustee, or
otherwise, sell or offer for sale the Secured Property in such portions, order and parcels as
Beneficiary may determine, with or without having first taken possession of the Secured Property,
to the highest bidder for cash at public auction. Such sale shall be made at the courthouse door
of the county in which all or any part of the Land to be sold is situated (whether the parts or
parcel, if any, situated in different counties are contiguous or not, and without the necessity of
having any Personalty present at such sale) on the first Tuesday of any month between the hours of
10:00 a.m. and 4:00 p.m., after advertising the time, place and terms of sale and that portion of
the Secured Property to be sold by posting or causing to be posted written or printed notice of
sale at least twenty-one (21) days before the date of the sale at the courthouse door of the county
in which the sale is to be made and at the courthouse door of any other county in which a portion
of the Land may be situated, and by filing such notice with the County Clerk(s) of the county(s) in
which all or a portion of the Land may be situated, which notice may be posted and filed by the
Trustee acting, or by any person acting for the Trustee, and Beneficiary has, at least twenty-one
(21) days before the date of the sale, served written or printed notice of the proposed sale by
certified mail on each debtor obligated to pay the Obligations according to Beneficiary’s records
by the deposit of such notice, enclosed in a postpaid wrapper, properly addressed to such debtor at
debtor’s most recent address as shown by Beneficiary’s records, in a post office or official
depository under the care and custody of the United States Postal Service. The affidavit of any
person having knowledge of the facts to the effect that such service was completed shall be prima
facie evidence of the fact of service.

(b) Trustee shall deliver to the purchaser at the sale, within a reasonable time after the
sale, a deed conveying the Secured Property so sold in fee simple with covenants of general
warranty. Grantor covenants and agrees to defend generally the purchaser’s title to the Secured
Property against all claims and demands. The recitals in Trustee’s deed shall be prima facie
evidence of the truth of the statements contained in those recitals. Trustee shall apply the
proceeds of the sale in the following order: (i) to all reasonable costs and expenses of the sale,
including reasonable Trustee’s fees not to exceed 5% of the gross sales price, attorneys’ fees and
costs of title evidence; (ii) to the Obligations in such order as Beneficiary, in Beneficiary’s
discretion, directs; and (iii) the excess, if any, to the person or persons legally entitled to the
excess.

 

12

 

(c) If all or any part of the Secured Property is sold pursuant to this Article IV, Grantor
will be divested of any and all interest and claim to the Secured Property, including any interest
or claim to all insurance policies, utility deposits, bonds, loan commitments and other intangible
property included as a part of the Secured Property. Additionally, after a sale of all or any part
of the Land, Improvements and Personalty, Grantor will be considered a tenant at sufferance of the
purchaser of the same, and the purchaser shall be entitled to immediate possession of such
property. If Grantor shall fail to vacate the Secured Property immediately, the purchaser may and
shall have the right, without further notice to Grantor, to go into any justice court in any
precinct or county in which the Secured Property is located and file an action in forcible entry
and detainer, which action shall lie against Grantor or its assigns or legal representatives, as a
tenant at sufferance. This remedy is cumulative of any and all remedies the purchaser may have
under this Deed of Trust or otherwise.

(d) In any action for a deficiency after a foreclosure under this Deed of Trust, if any person
against whom recovery is sought requests the court in which the action is pending to determine the
fair market value of the Secured Property, as of the date of the foreclosure sale, the following
shall be the basis of the court’s determination of fair market value:

	 	(i)	 	the Secured Property shall be valued “as is” and in its condition
as of the date of foreclosure, and no assumption of increased value because of
post-foreclosure repairs, refurbishment, restorations or improvements shall be
made;

	 	(ii)	 	any adverse effect on the marketability of title because of the
foreclosure or because of any other title condition not existing as of the date
of this Deed of Trust shall be considered;

	 	(iii)	 	the valuation of the Secured Property shall be based upon an
assumption that the foreclosure purchaser desires a prompt resale of the Secured
Property for cash within a six month-period after foreclosure;

	 	(iv)	 	although the Secured Property may be disposed of more quickly by
the foreclosure purchaser, the gross valuation of the Secured Property as of the
date of foreclosure shall be discounted for a hypothetical reasonable holding
period (not to exceed 6 months) at a monthly rate equal to the average monthly
interest rate on the Note for the twelve months before the date of foreclosure;

	 	(v)	 	the gross valuation of the Secured Property as of the date of
foreclosure shall be further discounted and reduced by reasonable estimated
costs of disposition, including brokerage commissions, title policy premiums,
environmental assessment and clean-up costs, tax and assessment, prorations,
costs to comply with legal requirements and attorneys’ fees;

	 	(vi)	 	expert opinion testimony shall be considered only from a licensed
appraiser certified by the State of Texas and, to the extent permitted under
Texas law, a member of the Appraisal Institute, having at least five years’
experience in appraising property similar to the Secured Property in the county
where the Secured Property is located, and who has conducted and prepared a
complete written appraisal of the Secured Property taking into considerations
the factors set forth in this Deed of Trust; no expert opinion testimony shall
be considered without such written appraisal;

 

13

 

	 	(vii)	 	evidence of comparable sales shall be considered only if also
included in the expert opinion testimony and written appraisal referred to in
subsection (vi), above; and

	 	(viii)	 	an affidavit executed by Beneficiary to the effect that the foreclosure bid
accepted by Trustee was equal to or greater than the value of the Secured
Property determined by Beneficiary based upon the factors and methods set forth
in subsections (i) through (vii) above before the foreclosure shall constitute
prima facie evidence that the foreclosure bid was equal to or greater than the
fair market value of the Secured Property on the foreclosure date.

(e) Beneficiary may, at Beneficiary’s option, comply with these provisions in the manner
permitted or required by Title 5, Section 51.002 of the Texas Property Code (relating to the sale
of real estate) or by Chapter 9 of the Texas Business and Commerce Code (relating to the sale of
collateral after default by a debtor), as those titles and chapters now exist or may be amended or
succeeded in the future, or by any other present or future articles or enactments relating to same
subject. Unless expressly excluded, the Secured Property shall include rents collected before a
foreclosure sale, but attributable to the period following the foreclosure sale, and Grantor shall
pay such rents to the purchaser at such sale. At any such sale:

	 	(i)	 	whether made under the power contained in this Deed of Trust,
Section 51.002 of the Texas Property Code, Chapter 9 of the Texas Business and
Commerce Code, any other legal requirement or by virtue of any judicial
proceedings or any other legal right, remedy or recourse, it shall not be
necessary for Trustee to have physically present, or to have constructive
possession of, the Secured Property (Grantor shall deliver to Trustee any
portion of the Secured Property not actually or constructively possessed by
Trustee immediately upon demand by Trustee) and the title to and right of
possession of any such property shall pass to the purchaser as completely as if
the property had been actually present and delivered to the purchaser at the
sale;

	 	(ii)	 	each instrument of conveyance executed by Trustee shall contain a
general warranty of title, binding upon Grantor;

	 	(iii)	 	the recitals contained in any instrument of conveyance made by
Trustee shall conclusively establish the truth and accuracy of the matters
recited in the Deed of Trust, including nonpayment of the Obligations and the
advertisement and conduct of the sale in the manner provided in this Deed of
Trust and otherwise by law and the appointment of any successor Trustee;

	 	(iv)	 	all prerequisites to the validity of the sale shall be
conclusively presumed to have been satisfied;

 

14

 

	 	(v)	 	the receipt of Trustee or of such other party or officer making
the sale shall be sufficient to discharge to the purchaser or purchasers for
such purchaser(s)’ purchase money, and no such purchaser or purchasers, or such
purchaser(s)’ assigns or personal representatives, shall thereafter be obligated
to see to the application of such purchase money or be in any way answerable for
any loss, misapplication or nonapplication of such purchase money;

	 	(vi)	 	to the fullest extent permitted by law, Grantor shall be
completely and irrevocably divested of all of Grantor’s right, title, interest,
claim and demand whatsoever, either at law or in equity, in and to the property
sold, and such sale shall be a perpetual bar to any claim to all or any part of
the property sold, both at law and in equity, against Grantor and against any
person claiming by, through or under Grantor; and

	 	(vii)	 	to the extent and under such circumstances as are permitted by
law, Beneficiary may be a purchaser at any such sale.

4.1 Remedies Non-exclusive. The rights and remedies provided in this Article IV upon
the occurrence of an Event of Default hereunder shall be non-exclusive and shall be in addition to
all other remedies and rights available under this Deed of Trust and the Guaranty or applicable
law. All rights and remedies available in the Event of Default shall be cumulative and the
exercise of any one or more of the available rights and remedies shall not be considered as or
result in a waiver of any other right or remedy and any particular right or remedy may be exercised
in conjunction with any or all other rights and remedies provided hereunder.

4.2 Release of Security. The Beneficiary and Trustee, without notice and without
regard to the consideration, if any, paid therefor, and notwithstanding the existence at that time
of any inferior deeds of trust or other liens thereon, may release any part of the security
described herein or may release any person liable for any indebtedness secured hereby without in
any way affecting the priority of this Deed of Trust, to the full extent of the indebtedness
remaining unpaid hereunder, upon any part of the security not expressly released. The Beneficiary
may also agree with any party obligated on such indebtedness or having any interest in the security
described herein to extend the time for payment of any part or all of the indebtedness secured
hereby, and such agreement shall not, in any way, release or impair this Deed of Trust, but shall
extend the same as against the title of all parties having any interest in such security, which
interest is subject to this Deed of Trust.

 

15

 

4.3 Assignment of Rents. Grantor assigns to Beneficiary absolutely, not only as
collateral, all present and future rent and other income and receipts from the Secured Property.
Leases are not assigned. Grantor warrants the validity and enforceability of the assignment.
Grantor may as Beneficiary’s licensee collect rent and other income and receipts as long as Grantor
is not in default under the Guaranty or this Deed of Trust. Grantor will apply all rent and other
income and receipts to payment and performance of the Obligations, but if the rent and other income
and receipts exceed the amount of the Obligations, Grantor may retain the excess. If Grantor
defaults in payment or performance of the Obligations, Beneficiary may terminate Grantor’s license
to collect and then as Grantor’s agent may rent the Secured Property if it is vacant and collect
all rent and other income and
receipts. Beneficiary neither has nor assumes any obligations as lessor or landlord with
respect to any occupant of the Secured Property. Beneficiary shall apply all rent and other income
and receipts collected under this Section 4.3 without taking possession of the Secured
Property. Beneficiary shall apply all rent and other income and receipts collected under this
Section 4.3 first to expenses incurred in exercising Beneficiary’s rights and remedies and
then to Grantor’s Obligations in the order determined by Beneficiary. Beneficiary is not required
to act under this Section 4.3, and acting under this Section 4.3 does not waive any
of Beneficiary’s other rights or remedies. If Grantor becomes a voluntary or involuntary bankrupt,
Beneficiary’s filing a proof of claim in bankruptcy will be tantamount to the appointment of a
receiver under Texas law.

ARTICLE V

THE TRUSTEE

5.1 Endorsement and Execution of Documents. Upon the written request of the
Beneficiary, the Trustee shall, without liability or notice to the Grantor, execute, consent to, or
join in any instrument or agreement in connection with or necessary to effectuate the purposes of
this Deed of Trust. The Grantor hereby irrevocably designates the Trustee as its attorneys-in-fact
to execute, acknowledge and deliver, on the Grantor’s behalf and in the Grantor’s name, all
instruments or agreements necessary to implement the provisions of this Deed of Trust or necessary
to further perfect the lien created by this Deed of Trust on the Secured Property. This power of
attorney shall be deemed to be coupled with an interest and shall survive any disability of the
Grantor.

5.2 Substitution of Trustee. The Beneficiary may, by filing a deed of appointment in
the office where this instrument is recorded, appoint additional or replacement trustees and may
remove the Trustee, from time to time, without notice to the Grantor or the Trustee and without
specifying any reason.

5.3 Multiple Trustees. Any Trustee, individually, may exercise all powers granted to
the Trustees collectively, without the necessity of the joinder of the other Trustees.

5.4 Terms of Trustee’s Acceptance. The Trustee accepts the trust created by this Deed
of Trust upon the following terms and conditions.

5.4.1 The Trustee may exercise any of their powers through appointment of attorneys-in-fact or
agents.

5.4.2 The Trustee shall not be liable for any matter or cause arising under this Deed of Trust
or in connection therewith except by reason of its own willful misconduct or gross negligence.

5.4.3 The Trustee may select and employ legal counsel at the expense of the Grantor.

 

16

 

5.4.4 The Trustee shall be under no obligation to take any action upon any Event of Default
unless it is furnished security or indemnity, in form satisfactory to the Trustee, against costs,
expenses and liabilities which may be incurred by the Trustee.

5.4.5 The Trustee shall have no duty to take any action except upon written demand of the
Beneficiary.

5.4.6 A Trustee may resign upon fifteen (15) days’ written notice of the Beneficiary.

5.5 Trustee’s Reimbursement. The Grantor shall reimburse the Trustee for all
reasonable disbursements and expenses incurred by reason of this Deed of Trust.

5.6 Save Harmless Clause. The Grantor shall indemnify and save harmless the
Beneficiary and the Trustee, singularly and jointly, from all costs and expenses (including but not
limited to reasonable attorneys’ fees and costs of title search, continuation search and
preparation of survey), incurred by them or any of them by reason of this Deed of Trust, including
any legal action to which Beneficiary or the Trustee shall become a party. Any money so paid or
expended by Beneficiary or the Trustee shall be due and payable upon demand together with interest
at the maximum rate provided in the Note from the date incurred and shall be secured by this Deed
of Trust.

5.7 Reliance of Trustee. The Trustee shall be protected in acting upon any notice,
request, consent, demand statement, note or other paper or document believed by them to be genuine
and to have been signed by the party or parties purporting to sign the same. The Trustee may act
hereunder and may sell or otherwise dispose of the Premises or any part thereof as herein provided,
although the Trustee has been, may now or may hereafter be, attorneys, officers, agents or
employees of the Beneficiary, in respect of any matter of business whatsoever.

ARTICLE VI

MISCELLANEOUS

6.1 Usury. Interest on the debt secured by this Deed of Trust shall not exceed the
maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or
received under law; any interest in excess of that maximum amount shall be credited on the
principal of the debt or, if that has been paid, refunded. On any acceleration or required or
permitted prepayment, any such excess shall be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the debt or, if the principal of the
debt has been paid, refunded. This provision overrides other provisions in this and all other
instruments concerning the debt.

6.2 Joint and Several Liability If there exists more than one (1) Grantor, all
liabilities under this Deed of Trust shall be joint and several with respect to the Grantors.

6.3 Waivers. The Beneficiary may at any or from time to time waive all or any rights
under this Deed of Trust, but any waiver or indulgence by the Beneficiary at any time or from time
to time shall not constitute, unless specifically so expressed by the Beneficiary in writing, a
future waiver of performance by the Grantor.

 

17

 

6.4 No Third Party Beneficiary Rights. No person not a party to this Deed of Trust
shall have any benefit hereunder nor have third party beneficiary rights as a result of this Deed
of Trust, nor shall any person be entitled to rely on any actions or inactions of the Beneficiary
or the Trustee, all of which are done for the sole benefit and protection of the Beneficiary.

6.5 Binding Obligation. This Deed of Trust shall be a continuing and binding
obligation upon the parties and their successors and assigns.

6.6 Final Agreement. This Deed of Trust and the Guaranty contain the final and entire
agreement and understanding of the parties.

6.7 Amendment. This Deed of Trust may be amended only in a writing signed by the
party to be bound by the amendment.

6.8 Notices. Any notice required or permitted by or in connection with this Deed of
Trust shall be in writing and made by hand delivery, by a nationally recognized overnight delivery
service or by certified/registered mail, return receipt requested, postage prepaid, addressed to
the respective party at the address set forth on the first page of this Deed of Trust.

6.9 Choice of Law; Consent to Jurisdiction. The laws of the State of Texas shall
strictly and absolutely govern the rights and obligations of the parties to this Deed of Trust.
Grantor agrees that any controversy arising under or in relation to the Deed of Trust shall be
litigated exclusively in the State of Texas. The state and federal courts and authorities with
jurisdiction in the State of Texas shall have exclusive jurisdiction over all controversies which
shall arise under or in relation to this Deed of Trust. Grantor irrevocably consents to service,
jurisdiction, and venue of such courts for any such litigation and waives any other venue to which
it might be entitled by virtue of domicile, habitual residence or otherwise.

6.10 Incorporation by Reference. The terms, conditions and provisions of the Guaranty
are incorporated by reference in this Deed of Trust to the same extent as if set forth in full
herein. Should any of the terms, conditions, or provisions of the Guaranty conflict with the
terms, conditions or provisions of this Deed of Trust, the Trustee or the Beneficiary shall select
which of the terms, covenants and conditions shall govern and control.

6.11 Terminology. Whenever used herein, the term the “Grantor” shall include the
successors and assigns of the Grantor; the “Trustee” or the “Trustees” shall include the successors
and assigns of the Trustee or the Trustees and any substitute or successor Trustee or Trustees; and
the “Beneficiary” shall include the successors and assigns of the individual, individuals,
partnership, corporation or other entity holding the beneficial interest in the Guaranty secured by
this Deed of Trust. The use of the singular shall include the plural, and the plural may refer to
the singular, and the use of any gender shall be applicable to all genders.

 

18

 

6.12 Invalidity. If any provision or part of any provision contained in this Deed of
Trust shall be found for any reason to be illegal, invalid or unenforceable in any respect, such
invalidity,
illegality or unenforceability shall not affect any other provisions or the remaining part of
any effective provisions of this Deed of Trust and this Deed of Trust shall be construed as if such
invalid, illegal, or unenforceable provision or part thereof had never been contained herein, but
only to the extent of its invalidity, illegality or unenforceability.

[Signature appears on following page]

 

19

 

WITNESS, the following signature and seal of the Grantor as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Witnessed by:	 	 	 	HOME SOLUTIONS OF AMERICA, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Frank J. Fradella	 	 
	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:
	 	Frank J. Fradella	 	 
	 

	 	 	 	 	 	Title:
	 	Chief Executive Officer	 	 

STATE OF                     , CITY/COUNTY OF                     , to wit:

I HEREBY CERTIFY, that on this                      day of March, 2009, before me, the undersigned a
Notary Public of the State of California, personally appeared                     , who
acknowledged himself/herself to be the                      of Home Solutions of America,
Inc. (the “Company”), known to me (or satisfactorily proven) to be the person whose name is
subscribed to the within instrument, and acknowledged that he/she, being authorized so to do,
executed the same for the purposes therein contained as the duly authorized                     
of the Company by signing the name of the Company by himself/herself as such
                    .

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

My Commission Expires:                                         .

 

20

 

EXHIBIT A

LAND DESCRIPTION

Tract I.

A 0.4714 acre tract of land out of Unrestricted Reserve “C” of Woodedge Village, Section 1, a
subdivision of the W. H. York Survey, Abstract No. 943, in Harris County, Texas, according to the
map or plat of same recorded in Volume 192, Page 34, of the Map Records of Harris County, Texas,
and being out of and a part of that certain 1.6325 acre tract of land conveyed to Matrix
Eleven-0-Eleven Corporation as described in deed recorded under County Clerk’s File No. V681436 of
the Real Property Records of Harris County, Texas, said 0.4714 acre tract of land being more
particularly described by metes and bounds on attached Schedule 1.

Tract II.

A non-exclusive perpetual access easement to Jones Road, described by metes and bounds on attached
Schedule 2.ex10-1.htm

    
      

       

      The
securities of Sound Revolution Inc. have not been registered under the
Securities Act of 1933 (the "US Securities Act") and may not be offered or sold
in the United States or to U.S. persons (other than distributors) unless the
securities are registered under the US Securities Act, or an exemption from the
registration requirements of the US Securities Act is available. Hedging
transactions involving these securities may not be conducted unless in
compliance with the US Securities Act.

       

      Merger
Agreement Term Sheet

      

      
        	
                Parties:

              	
                Sound
      Revolution Inc., a Delaware corporation (“Sound Revolution”), and On4
      Communications, Inc., an Arizona corporation (“On4”), hereby agree to
      merge into one corporation according to the terms and conditions described
      below (the “Merger”).

              

      

       

      This document is an
amendment to an original Merger Agreement Term Sheet signed by the parties on
March 12, 2009 (the “Original Agreement”).  This document amends
various material terms of the Original Agreement and outlines the principal
terms and conditions of the merger between Sound Revolution and On4 (the
“Agreement”). The terms and conditions outlined in this document, once signed by
both parties, will constitute a binding agreement.  It is the
intention of the parties to enter into a longer form agreement governing the
Merger.  Until a longer form agreement is entered into, this document
shall govern the relationship between the parties.

       

      
        	
                Structure:

              	
                The parties
      shall complete the Merger in accordance with the provisions of the Arizona
      Revised Statutes and the Delaware General Corporation Law as applicable to
      the respective companies.

              
	 
    	 
    
	
                Consideration:

              	
                Sound
      Revolution shall be the surviving entity.  Pursuant to the
      merger, each common share of On4 shall be converted into one common share
      of Sound Revolution.

                 

                Certain
      outstanding stock options and warrants of On4, as designated by On4, will
      be assumed by Sound Revolution upon completion of the Merger (the “Merger
      Closing”) and converted into options and warrants to purchase Sound
      Revolution stock with identical vesting provisions.

              
	 
    	 
    
	
                Conditions
      Precedent:

              	
                Prior to the
      Merger Closing:

                 

                · Both parties
      shall submit the Merger to a vote of their shareholders and obtain
      approval from holders of a majority of both parties’ respective voting
      shares.

                · Sound
      Revolution shall enter into a Convertible Note in the amount of US$120,000
      with Penny Green, the majority shareholder, CEO, a Director and the sole
      officer of Sound Revolution, which shall be convertible into common stock
      at US$0.10 at the option of the holder, and which shall be due in seven
      months (the “Note”), and which shall be reduced to US$100,000 if On4
      incurs legal fees in excess of US$10,000 in connection with the
      Merger.

                · Sound
      Revolution will convert debt owed to Penny Green or Bacchus Entertainment
      Ltd., a company owned and controlled by Sound Revolution’s officer and
      director, Penny Green, into 35,000,000 shares of its common stock at a
      price of $0.001 per share (the “Control Shares”).

                · Sound
      Revolution will have transferred all of its assets and debts, other than
      the Note and any debt owing to Penny Green or Bacchus Entertainment Ltd.,
      to its wholly owned subsidiary, Charity Tunes Inc., a Delaware
      company.

                · Sound
      Revolution and On4 will have received necessary approval for the Merger
      from shareholders, and have taken all steps to complete the Merger as
      required by applicable corporate and securities rules and regulations
      Sound
      Revolution will not have issued any securities other than the Note and the
      Control Shares, unless such issuance had been approved in writing by
      On4.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Details:

              	
                Upon the
      Merger Closing, the following shall apply to the surviving entity (the
      “New Entity”):

                 

                · It shall
      adopt the articles and bylaws of Sound Revolution, and the name of the
      surviving entity shall be Sound Revolution Inc.

                · the directors
      shall be Cameron Robb, Penny Green and Catherine Leblanc

                · Cameron Robb
      shall be the CEO

                · The head
      office shall be located at the location designated by On4

                 

                Upon the
      Merger Closing:

                 

                · The New
      Entity shall raise a minimum of US$150,000 through a direct offering of
      units (the “First Financing”) registered on a Form S-1 (the “Prospectus”)
      at a price to be determined by the New Entity, with each unit comprised of
      one common share and one half warrant to purchase one common share at a
      price of US$1.00 for a period of 12 months (the “Units”). The warrants
      shall be subject to an acceleration clause whereby Sound Revolution
      will have the right to accelerate the exercise of the options via
      a press release notice should the share price exceed US$1.15 for
      seven consecutive trading days.

                · all On4
      deferred or accrued salaries shall be limited to an amount representing
      not more than 30 days of pay to each employee, and in some instances it
      will be required for employees and consultant to convert such accrued
      salary to shares.

                · all notes
      payable by On4 in excess of US$100,000 shall be converted to equity at a
      price to be mutually agreed on by On4 and the specific creditor or receive
      a repayment extension of no less than six months and with an annual
      interest rate not to exceed 12%.

                 

                 

                After Raising
      a Minimum of $150,000:

                 

                · $150,000
      shall be repaid to Penny Green towards the outstanding loans owed to her,
      or companies controlled by her, by Sound Revolution. Upon receipt of the
      $150,000 payment:

                · Charity Tunes
      Inc. shall be sold to Bacchus Filings Inc., a company controlled by Penny
      Green, in consideration for which Bacchus Filings Inc. shall assume the
      entire amount of loan owing to Penny Green or Bacchus Entertainment Ltd.,
      exclusive of the Note;

                · The New
      Entity shall change its name to On4 Communications, Inc.

                · Penny Green,
      and all companies controlled by Penny Green, will cancel all but 236,066
      shares of Sound Revolution owned by them;

                · Penny Green
      and Catherine LeBlanc shall resign as directors, and Gordon Jessup shall
      be appointed as a director;

                · Other than
      the Note, all debts of Sound Revolution shall be
extinguished.

                 

              
	 
    	 
    
	
                Shareholder
      Approval:

              	
                Selected
      insiders and other stockholders of Sound Revolution and On4 have agreed to
      vote for this transaction.

              
	 
    	 
    
	
                Termination
      Events:

              	
                This merger
      agreement will be rescinded and reversed upon the occurrence of any one of
      the following events:

                 

                · By mutual
      consent and such consent will not be unreasonably withheld;
or

                · By Sound
      Revolution or by notice from Penny Green, if Sound Revolution does not
      raise a minimum of $150,000 within 60 days of the Prospectus being
      declared effective by the SEC.

              
	 
    	 
    
	
                Sound
      Revolution Covenants

              	
                Sound
      Revolution covenants as follows:

                · It shall act
      in good faith in attempting to raise capital pursuant to the First
      Financing

                · Upon
      receiving investment in the amount of a minimum of $150,000, Sound
      Revolution shall complete the First Financing, of which the proceeds shall
      be used as follows:

                · $150,000
      shall be repaid to Penny Green towards the outstanding loans owed to her,
      or companies controlled by her, by Sound
  Revolution.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Independent
      Legal
      Advice:

              	
                Each party
      acknowledges that it has had the opportunity to obtain its own independent
      legal and tax advice with respect to the terms of this Agreement prior to
      execution of this Agreement and further acknowledges that it fully
      understands this Agreement.  On4 and the On4 Shareholders
      acknowledge that counsel for Sound Revolution does not represent the
      interests of On4 or its shareholders.

              
	 
    	 
    
	
                Representations
      and Warranties

                Of
      Sound Revolution:

              	
                Sound
      Revolution represents and warrants to ON4 that:

                 

                1. Sound
      Revolution is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware and has the requisite
      corporate power and authority to own, lease and to carry on its business
      as now being conducted.  Sound Revolution is duly qualified to
      do business and is in good standing as a foreign corporation in each of
      the jurisdictions in which Sound Revolution owns property, leases
      property, does business, or is otherwise required to do so, where the
      failure to be so qualified would have a material adverse effect on the
      business of Sound Revolution taken as a whole.

                 

                2. To the best
      knowledge of Sound Revolution, there is no basis for and there is no
      action, suit, judgment, claim, demand or proceeding outstanding or
      pending, or threatened against or affecting Sound Revolution or which
      involves any of the business, or the properties or assets of Sound
      Revolution that, if adversely resolved or determined, would have a
      material adverse effect on the business, operations, assets, properties,
      prospects, or conditions of Sound Revolution taken as a whole (a “Sound
      Revolution Material Adverse Effect”).  There is no reasonable
      basis for any claim or action that, based upon the likelihood of its being
      asserted and its success if asserted, would have such a Sound Revolution
      Material Adverse Effect.

                 

                a) For a
      period of 6 months following the Merger Closing, Penny Green agrees to
      personally indemnify and to hold harmless Sound Revolution and On4, their
      affiliates, and their respective officers, directors, agents and
      employees, against any and all losses and damages to the extent any such
      losses or damages are due to a judgment entered against Sound Revolution
      with regard to an agreement entered into by Sound Revolution before the
      Merger Closing and up to a maximum of US$500,000.  Penny Green,
      in her sole discretion, shall select counsel to defend any action pursuant
      to this indemnity. Sound Revolution hereby covenants not to settle or
      compromise any claim or cause of action for which indemnification is
      sought from Penny Green without the written permission of Penny Green. The
      obligation of Penny Green to so indemnify Sound Revolution is expressly
      contingent upon Sound Revolution notifying Penny Green, in writing, within
      seven (7) calendar days after Sound Revolution knows, or reasonably should
      have known, of any claim, complaint, potential cause of action or
      proceeding. Failure by Sound Revolution to timely notify Penny Green shall
      relieve Penny Green of her obligation to so indemnify Sound Revolution.
      Penny Green shall have no obligation to indemnify Sound Revolution should
      any such losses or damages result, in whole or in part, from acts,
      omissions, willful misconduct or gross negligence of Sound Revolution, its
      affiliates, officers, directors, agents and employees after the Merger
      Closing.

                 

                3. Sound
      Revolution has all requisite corporate power and authority to execute and
      deliver this Agreement and any other document contemplated by this
      Agreement (collectively, the “Sound Revolution Documents”) to be signed by
      Sound Revolution and to perform its obligations hereunder and to
      consummate the transactions contemplated hereby.  The execution
      and delivery of each of the Sound Revolution Documents by Sound Revolution
      and the consummation by Sound Revolution of the transactions contemplated
      hereby have been duly authorized by its board of directors and no other
      corporate or shareholder proceedings on the part of Sound Revolution is
      necessary to authorize such documents or to consummate the transactions
      contemplated hereby.  This Agreement has been, and the other
      Sound Revolution Documents when executed and delivered by Sound Revolution
      as contemplated by this Agreement will be, duly executed and delivered by
      Sound Revolution and this Agreement is, and the other Sound Revolution
      Documents when executed and delivered by Sound Revolution, as contemplated
      hereby will be, valid and binding obligations of Sound Revolution
      enforceable in accordance with their respective terms,
except:

                 

                a) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, and other
      laws of general application affecting enforcement of creditors’ rights
      generally;

                 

                b) as limited by
      laws relating to the availability of specific performance, injunctive
      relief, or other equitable remedies; and

                 

                c) as limited by
      public policy.

                 

                4. The Sound
      Revolution common shares to be issued upon the Merger Closing will, upon
      issuance, have been duly and validly authorized and, when so issued in
      accordance with the terms of this Agreement, will be duly and validly
      issued, fully paid and non-assessable.

                 

                5. No
      representation or warranty by Sound Revolution in this Agreement nor any
      certificate, schedule, statement, document or instrument furnished or to
      be furnished to On4 pursuant hereto contains or will contain any untrue
      statement of a material fact or omits or will omit to state a material
      fact required to be stated herein or therein or necessary to make any
      statement herein or therein not materially misleading.

                 

                6. Sound
      Revolution has no more than 35,000,000 shares of common stock outstanding
      and no outstanding derivative securities other than the Note and no issued
      or outstanding preferred shares.

                 

                7. Compliance

                 

                a) To the best
      knowledge of Sound Revolution, Sound Revolution is in compliance with, is
      not in default or violation in any material respect under, and has not
      been charged with or received any notice at any time of any material
      violation of any statute, law, ordinance, regulation, rule, decree or
      other applicable regulation to the business or operations of Sound
      Revolution;

                 

                b) To the best
      knowledge of Sound Revolution, Sound Revolution is not subject to any
      judgment, order or decree entered in any lawsuit or proceeding applicable
      to its business and operations that would constitute a Sound Revolution
      Material Adverse Effect;

                 

                c) Sound
      Revolution has duly filed all reports and returns required to be filed by
      it with governmental authorities and has obtained all governmental permits
      and other governmental consents, except as may be required after the
      execution of this Agreement.  All of such permits and consents
      are in full force and effect, and no proceedings for the suspension or
      cancellation of any of them, and no investigation relating to any of them,
      is pending or to the best knowledge of Sound Revolution, threatened, and
      none of them will be adversely affected by the consummation of the Merger;
      and

                 

                d) Sound
      Revolution has operated in material compliance with all laws, rules,
      statutes, ordinances, orders and regulations applicable to its
      business.  Sound Revolution has not received any notice of any
      violation thereof, nor is Sound Revolution aware of any valid basis
      therefore.

              
	 
    	 
    
	
                Representations
      and Warranties of On4:

              	
                On4
      represents and warrants to Sound Revolution that:

                 

                1. On4 is a
      corporation duly organized, validly existing and in good standing under
      the laws of the State of Arizona and has the requisite corporate power and
      authority to own, lease and to carry on its business as now being
      conducted.  On4 is duly qualified to do business and is in good
      standing as a foreign corporation in each of the jurisdictions in which
      On4 owns property, leases property, does business, or is otherwise
      required to do so, where the failure to be so qualified would have a
      material adverse effect on the business of On4 taken as a
      whole.

                 

                2. To the best
      knowledge of On4, there is no basis for and there is no action, suit,
      judgment, claim, demand or proceeding outstanding or pending, or
      threatened against or affecting On4 or which involves any of the business,
      or the properties or assets of On4 that, if adversely resolved or
      determined, would have a material adverse effect on the business,
      operations, assets, properties, prospects, or conditions of On4 taken as a
      whole (an “On4 Material Adverse Effect”).  There is no
      reasonable basis for any claim or action that, based upon the likelihood
      of its being asserted and its success if asserted, would have such an On4
      Material Adverse Effect.

                 

                3. On4 has all
      requisite corporate power and authority to execute and deliver this
      Agreement and any other document contemplated by this Agreement
      (collectively, the “On4 Documents”) to be signed by On4 and to perform its
      obligations hereunder and to consummate the transactions contemplated
      hereby.  The execution and delivery of each of the On4 Documents
      by On4 and the consummation by On4 of the transactions contemplated hereby
      have been duly authorized by its board of directors and no other corporate
      or shareholder proceedings on the part of On4 is necessary to authorize
      such documents or to consummate the transactions contemplated
      hereby.  This Agreement has been, and the other On4 Documents
      when executed and delivered by On4 as contemplated by this Agreement will
      be, duly executed and delivered by On4 and this Agreement is, and the
      other On4 Documents when executed and delivered by On4, as contemplated
      hereby will be, valid and binding obligations of On4 enforceable in
      accordance with their respective terms, except:

                 

                a) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, and other
      laws of general application affecting enforcement of creditors’ rights
      generally;

                 

                b) as limited by
      laws relating to the availability of specific performance, injunctive
      relief, or other equitable remedies; and

                 

                c) as limited by
      public policy.

                 

                4. On4 has no
      more than 30,000,000 common shares outstanding and 2,200,000 options or
      warrants outstanding.

                 

                5. No
      representation or warranty by On4 in this Agreement nor any certificate,
      schedule, statement, document or instrument furnished or to be furnished
      to Sound Revolution pursuant hereto contains or will contain any untrue
      statement of a material fact or omits or will omit to state a material
      fact required to be stated herein or therein or necessary to make any
      statement herein or therein not materially misleading.

                 

                6. Neither the
      execution, delivery and performance of this Agreement, nor the
      consummation of the Merger, will conflict with, result in a violation of,
      cause a default under (with or without notice, lapse of time or both) or
      give rise to a right of termination, amendment, cancellation or
      acceleration of any obligation contained in or the loss of any material
      benefit under, or result in the creation of any lien, security interest,
      charge or encumbrance upon any of the material properties or assets of On4
      or any of its subsidiaries under any term, condition or provision of any
      loan or credit agreement, note, debenture, bond, mortgage, indenture,
      lease or other agreement, instrument, permit, license, judgment, order,
      decree, statute, law, ordinance, rule or regulation applicable to On4 or
      any of its subsidiaries, or any of their respective material property or
      assets.

                 

                On4
      acknowledges that any Sound Revolution securities issued in any financings
      contemplated in this Agreement will have such hold periods as are required
      under applicable securities laws and as a result may not be sold,
      transferred or otherwise disposed, except pursuant to an effective
      registration statement under the Securities Act of 1933, or pursuant to an
      exemption from, or in a transaction not subject to, the registration
      requirements of the Securities Act of 1933 and in each case only in
      accordance with all applicable securities laws.

                 

                7.    Compliance

                 

                a) To the best
      knowledge of On4, On4 is in compliance with, is not in default or
      violation in any material respect under, and has not been charged with or
      received any notice at any time of any material violation of any statute,
      law, ordinance, regulation, rule, decree or other applicable regulation to
      the business or operations of On4;

                 

                b) To the best
      knowledge of On4, On4 is not subject to any judgment, order or decree
      entered in any lawsuit or proceeding applicable to its business and
      operations that would constitute a On4 Material Adverse Effect, other than
      a lawsuit with Datatrail, the details of which have been provided to Sound
      Revolution;

                 

                c) On4 has duly
      filed all reports and returns required to be filed by it with governmental
      authorities and has obtained all governmental permits and other
      governmental consents, except as may be required after the execution of
      this Agreement.  All of such permits and consents are in full
      force and effect, and no proceedings for the suspension or cancellation of
      any of them, and no investigation relating to any of them, is pending or
      to the best knowledge of On4, threatened, and none of them will be
      adversely affected by the consummation of the Merger; and

                 

                d) On4 has
      operated in material compliance with all laws, rules, statutes,
      ordinances, orders and regulations applicable to its
      business.  On4 has not received any notice of any violation
      thereof, nor is On4 aware of any valid basis therefore.

                 

                8.    PetsMobility
      Inc., a Delaware corporation, is a wholly owned subsidiary of On
      4.

                 

                9.    On4
      Communications Inc., incorporated under the Canadian Business Corporations
      Act, shall not own any shares of On4 as of the Merger
      Closing.

                 

                10.  
      The financial statements of On4 provided to Sound Revolution for the year
      ended October 31, 2007 and the period ended July 31, 2008 are true an
      accurate in describing the financial condition of On4 and its
      subsidiaries.

              
	 
    	 
    
	
                Mutual
      Covenants:

              	
                1. The
      representations and warranties of both parties set forth in this Agreement
      will be true, correct and complete in all respects as of the Merger
      Closing, as though made on and as of the Merger Closing.

                 

                2. All
      information regarding the business of On4 including, without limitation,
      financial information that On4 provides to Sound Revolution during Sound
      Revolution’s due diligence investigation of On4 will be kept in strict
      confidence by Sound Revolution and will not be used (except in connection
      with due diligence), dealt with, exploited or commercialized by Sound
      Revolution or disclosed to any third party (other than Sound Revolution’s
      professional accounting and legal advisors) without the prior written
      consent of On4.  If the Merger contemplated by this Agreement
      does not proceed for any reason, then upon receipt of a written request
      from On4, Sound Revolution will immediately return to On4 (or as directed
      by On4) any information received regarding On4’s
      business.  Likewise, all information regarding the business of
      Sound Revolution including, without limitation, financial information that
      Sound Revolution provides to On4 during its due diligence investigation of
      Sound Revolution will be kept in strict confidence by On4 and will not be
      used (except in connection with due diligence), dealt with, exploited or
      commercialized by On4 or disclosed to any third party (other than On4’s
      professional accounting and legal advisors) without Sound Revolution’s
      prior written consent.  If the Merger contemplated by this
      Agreement does not proceed for any reason, then upon receipt of a written
      request from Sound Revolution, On4 will immediately return to Sound
      Revolution (or as directed by Sound Revolution) any information received
      regarding Sound Revolution’s business.

                 

                3. Between the
      date of this Agreement and the Merger Closing, each of the parties to this
      Agreement will promptly notify the other parties in writing if it becomes
      aware of any fact or condition that causes or constitutes a material
      breach of any of its representations and warranties as of the date of this
      Agreement, if it becomes aware of the occurrence after the date of this
      Agreement of any fact or condition that would cause or constitute a
      material breach of any such representation or warranty had such
      representation or warranty been made as of the time of occurrence or
      discovery of such fact or condition.  During the same period,
      each party will promptly notify the other parties of the occurrence of any
      material breach of any of its covenants in this Agreement or of the
      occurrence of any event that may make the satisfaction of such conditions
      impossible or unlikely.

              
	 
    	 
    
	
                Currency

              	
                All
      references to currency in this Agreement are in United States Dollars
      (US$), unless expressly stated otherwise.

              
	 
    	 
    
	
                Jurisdiction

              	
                The parties
      agree to attorn to the non-exclusive jurisdiction of the Province of
      British Columbia regarding this
Agreement.

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Accepted and agreed
this 26th day of
March, 2009.

      

      

      Sound
Revolution Inc.

       

      
      

       

      
        	Per:
      /s/
      Penny Green 	Date: April 7,
      2009	/s/ Penny
      Green 	Date:
      April 7, 2009
	Penny
      Green, CEO  	 	Penny
      Green, in her personal capacity	 

      

       

      On4
Communications, Inc.

       

      Per: /s/
Cameron Robb

       

      Title:
CEO

      

      On4 Shareholders
agreeing to vote in favour of the Merger:

      

      Name                                                 #
of Shares
Owned                   Percentage

      

      Cameron
Robb

      /s/
Cameron Robb

      

      

      Gordon
Jessop

      /s/
Gordon Jessop

      

       

      ______________________                     _______________                  __________

      

      ______________________                     _______________                  __________

      

      ______________________                     _______________                  __________

      

      

      Sound Revolution
Shareholder agreeing to vote in favour of the Merger:

      

      Name                                                 #
of Shares Owned 
                 Percentage

      

       

      Bacchus
Entertainment
Ltd.               
     20,142,858                              61%

      

      

      /s/
Penny Green

      Per: Penny Green,
President

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