Document:

ex1020.htm

    Exhibit
10.20

     

    AMENDMENT NO. 3 TO THE
SECURITY AGREEMENT

     

    THIS
AMENDMENT NO. 3 TO THE SECURITY AGREEMENT (as amended, restated, supplemented or
otherwise modified from time to time, this “Amendment”) dated as of March
19, 2009 by and between Amber
Ready, Inc. (formerly Amber Alert Safety Centers, Inc.), a Nevada
corporation (the “Company” or the “Debtor”) and John
Thomas Bridge & Opportunity Fund, L.P., a Delaware limited
partnership (together with its successors and assigns in such capacity, the
“Secured Party”), amends
that certain Security Agreement, dated December 30, 2008, by and between Debtor
and Secured Party, as amended by that certain Amendment Agreement, dated
February 18, 2009, and as amended by Amendment No. 2 to the Security Agreement,
dated February 25, 2009 (the “Agreement”).

     

    W I T N E
S S E T H:

     

    WHEREAS,
on the date hereof, Secured Party has agreed to loan Debtor an additional
$63,999, in the form of an additional debenture, dated of even date herewith
(“Third Bridge Debenture”);

     

    WHEREAS,
the Additional Debenture is being acquired by Secured Party pursuant to an
additional Purchase Agreement, dated of even date herewith (“Third Bridge
Purchase Agreement”)

     

    WHEREAS,
Debtor will derive substantial benefit and advantage from the financial
accommodations to Debtor set forth in the Third Bridge Purchase
Agreement.

     

    NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

     

    Section
1.  Capitalized terms used herein without definition and defined in
the Additional Purchase Agreement are used herein as defined
therein.

     

    Section
2.  The definition of Debenture as used in the Agreement is hereby
amended to include the Third Bridge Debenture.

     

    Section
3.  The definition of Purchase Agreement is hereby amended to include
the Third Bridge Purchase Agreement.

     

    Section
4.  The definition of Transactional Documents is hereby amended to
include the Third Bridge Debenture, the Third Bridge Purchase Agreement and the
agreements contemplated therein.

     

    Section
5.  Miscellaneous.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    5.1  Governing
Law.  This Amendment shall be governed by and construed in
accordance with the internal laws and decisions of the State of Texas applicable
to contracts made and to be performed in that State, without regard to conflict
of law principles thereof that would result in the application of the laws of
any jurisdiction other than the State of Texas.

     

    5.2  SUBMISSION TO JURISDICTION;
WAIVER OF VENUE; SERVICE OF PROCESS.  (A)  DEBTOR
HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED
STATES FEDERAL OR STATE OF TEXAS COURT SITTING IN THE CITY OF HOUSTON, COUNTY OF
HARRIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT
AND DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY
WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF SECURED
PARTY TO BRING PROCEEDINGS AGAINST ANY DEBTOR IN THE COURTS OF ANY OTHER
JURISDICTION.  ANY JUDICIAL PROCEEDING BY A DEBTOR AGAINST SECURED
PARTY, ANY BUYER OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY
MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTION WITH THIS AMENDMENT
SHALL BE BROUGHT ONLY IN A COURT IN HOUSTON, TEXAS (AND SECURED PARTY AND BUYERS
HEREBY SUBMIT TO THE JURISDICTION OF SUCH COURT).  EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS
BEING SERVED IN ANY SUCH ACTION OR PROCEEDING BY MAILING A COPY THEREOF TO SUCH
PARTY AT THE ADDRESS FOR NOTICES TO IT IN ACCORDANCE WITH SECTION 5.3
OF  THIS AMENDMENT AND AGREES THAT SUCH NOTICE SHALL CONSTITUTE GOOD
AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.  NOTHING
CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS
IN ANY MANNER PERMITTED BY LAW.

     

    5.3  WAIVER OF RIGHT TO TRIAL BY
JURY.  DEBTOR AND SECURED PARTY EACH WAIVE THEIR RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF OR RELATED TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN
ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT
CLAIMS, TORT CLAIMS, OR OTHERWISE.   DEBTOR AND SECURED PARTY
EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT
TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, THE PARTIES
FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY
OPERATION  OF THIS SECTION AS TO ANY
ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO
CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AMENDMENT OR ANY PROVISION
HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AMENDMENT.

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5.4           Joint and
Several.  The obligations, covenants and agreements of Debtor
hereunder shall be the joint and several obligations, covenants and agreements
of Debtor, whether or not specifically stated herein.

     

    5.5           No Strict
Construction.  The language used in this Amendment will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any
party.

     

    5.6           Entire
Agreement.  This Amendment supersedes all other prior oral or
written agreements between Debtor, Secured Party and their affiliates and
persons acting on their behalf with respect to the matters discussed herein, and
this Amendment and the Transaction Documents and instruments referenced herein
and therein contain the entire understanding of the parties with respect to the
matters covered herein and therein.

     

    -
Remainder of Page Intentionally Left Blank; Signature Page Follows
-

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the day and year first above written.

     

     

    
      
        	 	DEBTOR:	 
	 	 	 
	 	AMBER READY, INC., a
      Nevada corporation	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ KAI
      D. PATTERSON	 
	 	 	Name:
      Kai D. Patterson	 
	 	 	Title: Chief
      Executive Officer	 
	 	 	 	 

      

    

     

    
      
        	 	SECURED
      PARTY:	 
	 	 	 
	 	JOHN THOMAS BRIDGE &
      OPPORTUNITY FUND, L.P., a Delaware limited partnership
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ GEORGE
      R. JARKESY, JR.	 
	 	 	Name:
      George R. Jarkesy, Jr.	 
	 	 	Title: Managing
      Member of the General Partner	 
	 	 	 	 

      

    

    

     

     

     

     

    
4ex1026.htm

    Exhibit
10.26

    

    GUARANTEE

    

    THIS GUARANTEE (the “Guarantee”) is
entered into as of ___________________, 2009 by KAI PATTERSON, an individual
(the “Guarantor”), in favor of JOHN THOMAS FINANCIAL, INC., a New York
corporation (“JTF”), in its capacity as representative of the Investors, as
hereinafter defined.

     
 

    RECITALS

    

    A. Guarantor
is the Chief Executive Officer and a principal stockholder of Amber Ready, Inc.,
a Nevada corporation (the “Company”).

    

    B. The
Company is desirous of concluding a private offering of its secured three year
convertible promissory notes (the “Convertible Notes”) to a number of
“accredited investors” (the “Investors”), as such term is defined in Rule 501 of
Regulation D under the Securities Act of 1933, as amended.

    

    C. To induce
the Investors to purchase the Convertible Notes, the Guarantor has agreed to
grant a security interest in the Collateral, as hereinafter defined, pursuant to
a Pledge and Security Agreement of even date herewith (the “Pledge Agreement”)
between the Guarantor and JTF, as representative of the Investors.

    

    D. The
Guarantor wishes to grant JTF assurance in order to guarantee the Company’s
attainment of a certain Target, as defined in the Pledge Agreement.

    

    Accordingly, the Guarantor
individually hereby agrees as follows:

    

    1. Guarantee.  The
Guarantor unconditionally and irrevocably guarantees to JTF, as representative
of the Investors, the full and punctual attainment of the Target (the
“Obligations”).

    

    2. Limited Recourse.
Notwithstanding anything contained in this Guarantee to the contrary, the only
recourse that JTF shall have under this Guarantee shall be against the
13,814,000 shares (the “Collateral”) of common stock, $0.0001 par value per
share, of the Company owned by the Guarantor and pledged by the Guarantor as
collateral pursuant to the Pledge Agreement.  JTF shall have no
recourse against any of the other property and assets of the Guarantor to
satisfy the obligations of the Guarantor under this Guarantee and under the
Pledge Agreement.

    

    3. Guarantee Continuing,
Absolute Unlimited.  The liability of the Guarantor hereunder
shall be absolute and unconditional and shall not be affected by:

    

    a. any lack
of validity or enforceability of any agreements between the Company and the
Investors and/or the Company and JTF;

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    b. any
change in the time, manner or place of payment of or in any other term of such
agreements or the failure on the part of the Company to carry out any of its
obligations under such agreements;

    

    c. any
impossibility, impracticability, frustration of purpose, illegality, force majeure or act of
government;

    

    d. the
bankruptcy, winding-up, liquidation, dissolution or insolvency of the Company,
JTF or the Investors or any party to any agreement to which JTF is, and/or the
Investors are, party;

    

    e. any lack
or limitation of power, incapacity or disability on the part of the Company or
of the directors, partners or agents thereof or any other irregularity, defect
or informality on the part of the Company in its obligations to the Investors
and/or JTF; or

    

    f. any other
law, regulation or other circumstance which might otherwise constitute a defence
available to, or a discharge of, the Company in respect of any or all of the
Obligations.

    

    4. No Release or
Discharge. The liability of the Guarantor hereunder shall not be
released, discharged, limited or in any way affected by anything done, suffered
or permitted by the Investors and/or JTF in connection with any duties or
liabilities of the Guarantor to the Investors and/or JTF or any security
therefor including any loss of or in respect of any security received by JTF
from the Guarantor or others.  JTF, on behalf of the Investors,
without releasing, discharging, limiting or otherwise affecting in whole or in
part the Guarantor’s liability hereunder, may:

    

    a. grant
time, renewals, extensions, indulgences, releases and discharges to the
Guarantor;

    

    b. take or
abstain from taking securities or collateral from the Guarantor;

    

    c. accept
compromises from the Guarantor; or

    

    d. otherwise
deal with the Guarantor and all other persons and security interests as JTF may
see fit.

    

    5. Termination.  This
Guarantee shall automatically terminate without any action by the Guarantor or
JTF if the Minimum Offering (as defined in the Placement Agent Agreement dated
as of ____________, 2009 by and between the Company and JTF) is not attained by
April 30, 2009.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
 

    6. Return of
Collateral.  Upon the attainment of the Target or if the
Minimum Amount is not attained by April 30, 2009, the Collateral shall be
returned to Guarantor and JTF’s security interest and rights in and to the
Collateral shall terminate.

    

    7. No Exhaustion of
Remedies. JTF shall not be bound or obligated to exhaust its recourse
against the Company or other persons or any securities or collateral it may hold
or take any other action before being entitled to demand payment from the
Guarantor hereunder.

    

    8. No Set-off. The
Guarantor shall not claim any set-off or counterclaim against the Company in
respect of any liability of the Company to the Guarantor.

    

    9. Continuing Guarantee.
This Guarantee shall be a continuing guarantee and shall be binding as a
continuing obligation of the Guarantor.

    

    10. Demand for
Payment.  JTF shall be entitled to make demand upon the
Guarantor at any time upon an Event of Default, as defined in the Pledge
Agreement, and upon such Event of Default JTF may declare that all Obligations
have not been attained and may forthwith collect from the Guarantor the
Collateral.

    

    11. Subrogation. If (i)
the Guarantor delivers the Collateral to JTF under this Guarantee, JTF will, at
the Guarantor’s request, execute and deliver to the Guarantor appropriate
documents, without recourse and without representation and warranty, necessary
to evidence the transfer by subrogation to the Guarantor of an interest in the
Obligations and any security held therefor resulting from such performance by
the Guarantor.

    

    12. Waiver of Notice of
Acceptance. The Guarantor hereby waives notice of acceptance of this
instrument.

    

    13. Entire Agreement.
This Guarantee, together with the Escrow Agreement, as defined in the Pledge
Agreement, and the Pledge Agreement, constitute the entire agreement among JTF,
as agent of the Investors, the Company and the Guarantor with respect to the
subject matter hereof and cancels and supersedes any prior understandings and
agreements between such parties with respect thereto. There are no
representations, warranties, terms, conditions, undertakings or collateral
agreements, expressed, implied or statutory, among such parties other than as
expressly set forth in this Guarantee, the Escrow Agreement and the Pledge
Agreement.

    

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

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    15. Severability. If any
provision of this Guarantee is determined to be invalid or unenforceable in
whole or in part, such invalidity or unenforceability shall attach only to such
provision or part thereof and the remaining part of such provision and all other
provisions hereof shall continue in full force and effect.

    

    16. Governing
Law.  THIS
GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF
LAW.

    

    17. Notice.  Any
demand, notice or other communication (a “Communication”) to be given in
connection with this Guarantee shall be given in the manner and to the
respective addresses set forth in the Pledge Agreement.

    

    18. Assignment. The
rights of JTF under this Guarantee may be assigned by JTF without the prior
consent of the Company or the Guarantor. The Guarantor may not assign its
obligations under this Guarantee.

    

    19. Interpretation.  Guarantor
and JTF have participated jointly in the negotiating and drafting of this
Guarantee.  If an ambiguity or a question of intent or interpretation
arises, this Guarantee shall be construed as if drafted jointly by Guarantor and
JTF, and no presumption or burden of proof shall arise favoring or disfavoring
Guarantor or JTF, as the case may be, by virtue of the authorship of any
provisions of this Guarantee.

    

    20. Miscellaneous.

    

    a. Any term
of this Guarantee may be amended, waived, discharged or terminated only by an
instrument in writing signed by the Guarantor and JTF.

    

    b. The
headings in this Guarantee are for purposes of reference only and shall not
limit or define the meaning hereof.

    

    c. If it
ever becomes necessary to employ counsel to collect this obligation, the
Guarantor shall pay all expenses and costs, including reasonable attorney's fees
and out-of-pocket expenses of said attorney for the services of such counsel,
whether or not suit be brought and including those incurred in post-judgment
collection efforts and in any bankruptcy proceeding (including any action for
relief from the automatic stay of any bankruptcy proceeding).

    

    d. This
Guarantee may be executed in any number of counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the
same instrument.

    

    

    [signature page
follows]

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    IN WITNESS WHEREOF, the undersigned has
caused this Guarantee to be executed and delivered as of the day and year first
above written.

     

    
      
        	 	 	 
	 	 	 	 
	
                 

              	
                 

              	 	 
	 	 	KAI
      PATTERSON	 
	 	 	 	 
	WITNESS:   	 	 	 
	 	 	 [insert]	 

      

    
    

     

    
      	State of New
      Jersey	)	 	 
	 	)s.s:	 	 
	County of
      [insert]   	)	 	 

    

     

                                

    

    On the  _____ day of
___________________, 2009, before me, the undersigned, a Notary Public in and
for said State, personally appeared KAI PATTERSON, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his capacity, and that by his signature on the instrument,
the individual executed the instrument.

    

    

    __________________________

    Notary
Public

    
 

     

     

     

    5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]