Document:

curm_ex1017.htm

  EXHIBIT 10.17
 
VOTING AGREEMENT
 
THIS VOTING AGREEMENT (this “Voting Agreement”) is made and entered into as of [__________ __], 2017, by and among CÜR Holdings, Inc., a Delaware corporation (the “Company””), CÜR Media, Inc., a Delaware corporation (“CUR Media”), and the Buyers set forth on the signature page(s) affixed hereto (together with any subsequent Buyers or any transferees, who become parties hereto, the “Stockholders”). 
 
RECITALS
 
WHEREAS, the Company is conducting a private placement offering (the “Offering”) of a minimum of $6,000,000 of units of securities of the Company, pursuant to the terms of a Securities Purchase Agreement (the “Purchase Agreement”) between the Company, CÜR Media and the Stockholders (Capitalized terms used herein without definition shall have the meanings ascribed to them in the Purchase Agreement); and
 
WHEREAS, the Company is negotiating a transaction with CÜR Media, pursuant to which, under certain circumstances, the Company will either (a) merge with and into CÜR Media (the “Merger”), or (b) acquire the assets and liabilities of CÜR Media related to the Company’s music streaming business (the “Asset Transfer”); and
 
WHEREAS, as a material condition to the closing of the Offering, the Stockholders are required to execute and deliver this Voting Agreement; and
 
WHEREAS, the Stockholders are the beneficial owners (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of such number of shares of the outstanding (a) Series A Preferred Stock, and (b) common stock, par value $0.0001 per share (“Common Stock”), of the Company (including any shares of Common Stock underlying the Unit Shares and Unit Warrants purchased in the Offering), as is indicated on Exhibit A of this Voting Agreement; and
 
WHEREAS, each Stockholder (in his, her or its capacity as such) hereby agrees to vote the Shares (as defined below), and such other shares of Common Stock over which such Stockholder has voting power, so as to facilitate the consummation of the contemplated Merger or Asset Transfer, and related transactions, as further described as further described in the Term Sheet, dated September 11, 2017, by and between the Company and CÜR Media, a copy of which is attached to the Purchase Agreement as Exhibit E.
 
NOW, THEREFORE, intending to be legally bound, the parties hereto agree as follows:
 
1. Certain Definitions. Capitalized terms not defined herein shall have the meanings ascribed to them in the Purchase Agreement. For purposes of this Voting Agreement:
 
(a) “Expiration Date” shall mean the earlier to occur of (i) such date and time as the Purchase Agreement shall have been terminated pursuant to Section 8(n) thereof, or (ii) such date and time that either the Merger or Asset Transfer has become effective. 
 
	 
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(b) “Person” shall mean any individual, corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise, association, organization, entity or Governmental Entity.
 
(c) "Shares” shall mean all issued and outstanding shares of the Company’s Series A Preferred Stock and Common Stock held by a Stockholder, and all shares of the Company’s Common Stock underlying and options, warrants and other rights to acquire shares of the Company’s Common Stock, now or hereafter owned or held, directly or indirectly, including by way of stock dividend or distribution, split-up, recapitalization, combination, exchange of shares and the like, by such Stockholder, from the date of this Voting Agreement through the Expiration Date.
 
(d) A Person shall be deemed to have effected a “Transfer” of a security if such Person directly or indirectly: (i) sells, pledges, encumbers, assigns, grants an option with respect to, transfers or disposes of such security or any interest in such security; or (ii) enters into an agreement or commitment providing for the sale of, pledge of, encumbrance of, assignment of, grant of an option with respect to, transfer of or disposition of such security or any interest therein.
 
2. Transfer of Shares. 
 
(a) Transfer Restrictions. Stockholder agrees that, during the period from the date of this Voting Agreement through the Expiration Date, Stockholder shall not cause or permit any Transfer of any of the Shares to be effected unless each Person to which any of such Shares, or any interest in any of such Shares, is or may be transferred shall have: (i) executed a counterpart of this Voting Agreement, executed a proxy to the Company in the form attached hereto as Exhibit B (each, a “Proxy” and collectively, the “Proxies”) (each with such modifications as the Company may reasonably request); and (ii) agreed in writing to hold such Shares (or interest in such Shares) subject to all of the terms and provisions of this Voting Agreement. The Stockholder further agrees with, and covenants to, the Company that the Stockholder shall not request that the Company or any agent of the Company register the Transfer of any certificate or uncertificated interest representing any of the Shares, unless such Transfer is made in compliance with this Voting Agreement. 
 
(b) Transfer of Voting Rights. Stockholder agrees that, during the period from the date of this Voting Agreement through the Expiration Date, Stockholder shall not permit the deposit of any Shares in a voting trust or grant any proxy or enter into any voting agreement or similar agreement in contravention of the obligations of Stockholder under this Voting Agreement with respect to any of the Shares. The Stockholder hereby revokes all other proxies and powers of attorney with respect to the Shares that may have heretofore been appointed or granted in contravention of the obligations of Stockholder under this Voting Agreement.
 
	 
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3. Agreement to Vote Shares. At every meeting of the stockholders of the Company called, and at every adjournment or postponement thereof, and on every action or approval by written consent of the stockholders of the Company, Stockholder (in its, his or her capacity as such) shall, or shall cause the holder of record on any applicable record date to, vote the Shares (i) in favor of approval of the Merger or Asset Transfer, as applicable, and (ii) against any action or agreement that would reasonably be expected to result in the failure to satisfy any conditions to the Merger or Asset Transfer, as applicable. Stockholder further agrees that Stockholder shall, or shall cause the holder of record on any applicable record date to, appear at the Company’s Stockholders’ Meeting or otherwise cause the Shares to be counted as present thereat for purposes of establishing a quorum. Prior to the Expiration Date, the Stockholder shall not take any action or enter into any agreement or understanding with any person to vote or give instructions in any manner inconsistent with the terms of this Section 3. Without limiting the generality of the foregoing, the Stockholder agrees that neither he, she or it, nor any of its subsidiaries (if the Stockholder is not a natural person) nor any of the officers and directors (if the Stockholder is not a natural person) and representatives (including any investment banker, attorney or accountant retained by it or any of its subsidiaries (if the Stockholder is not a natural person)) of him, her or it, or its subsidiaries (if the Stockholder is not a natural person) shall, and that he, she or it shall use his, her or its reasonable best efforts to cause his, her or its and its subsidiaries’ (if the Stockholder is not a natural person) employees and other agents not (and shall not authorize any of them) directly or indirectly, to engage in any solicitation (as defined in Regulation 14A of the Rules and Regulations promulgated by the Securities and Exchange Commission pursuant to the Exchange Act) of other stockholders of the Company against the Merger or Asset Transfer, as applicable, or against any action or agreement that would reasonably be expected to result in the failure to satisfy any conditions to the Merger or Asset Transfer, as applicable.
 
4. Directors and Officers. Notwithstanding any provision of this Voting Agreement to the contrary, nothing in this Voting Agreement shall limit or restrict the Stockholder from (a) acting in Stockholder’s capacity as a director or officer of the Company, if applicable (it being understood that this Voting Agreement shall apply to Stockholder solely in Stockholder’s capacity as a stockholder of the Company) or (b) voting in such Stockholder’s sole discretion on any matter other than those relating to the Merger or Asset Transfer, as applicable.
 
5. Irrevocable Proxy. Concurrently with the execution of this Voting Agreement, Stockholder agrees to deliver the Proxy to the Company, which shall be irrevocable to the fullest extent permissible by law, with respect to the Shares.
 
6. No Ownership Interest. Nothing contained in this Voting Agreement shall be deemed to vest in the Company any direct or indirect ownership or incidence of ownership of or with respect to any Shares. All rights, ownership and economic benefits of and relating to the Shares shall remain vested in and belong to Stockholder, and the Company shall not have any authority to direct Stockholder in the voting of any of the Shares, except as otherwise provided herein.
 
	 
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7. Representations and Warranties of Stockholder. 
 
(a) Authorization. This Voting Agreement constitutes a legal, valid and binding agreement of Stockholder, enforceable against Stockholder in accordance with its terms, except (i) as such enforcement is limited by bankruptcy, insolvency and other similar laws effecting the enforcement of creditors’ rights generally and (ii) for limitations imposed by general principles of equity.
 
(b) Compliance. The execution, delivery and performance of this Voting Agreement by Stockholder requires no action by or in respect of, or filing with, any governmental or non-governmental body, agency or official or any other Person other than as required by any applicable requirements of the Exchange Act and other filings or notifications that are immaterial to the consummation of the transactions contemplated hereby.
 
(c) Non-contravention. The execution, delivery and performance of this Voting Agreement by Stockholder does not and will not (i) violate any applicable law, rule, regulation, judgment, injunction, order or decree binding upon Stockholder, except for any such violations which would be immaterial to the consummation of the transactions contemplated hereby, or (ii) constitute a default under any agreement or other instrument binding upon Stockholder. 
 
(d) Ownership of Shares. Stockholder (i) is the beneficial owner of the Shares indicated on Exhibit A to this Voting Agreement, which are free and clear of any liens, adverse claims, charges, security interests, pledges or options, proxies, voting trusts or agreements, understandings or agreements, or any other rights or encumbrances whatsoever (“Encumbrances”) (except any Encumbrances arising under securities laws, arising hereunder or that are not in contravention of the obligations of Stockholder hereunder); and (ii) does not beneficially own or otherwise have rights to acquire, whether or not currently exercisable, any securities of the Company other than the Shares of the Company indicated on Exhibit A to this Voting Agreement. Stockholder hereby agrees to promptly notify the Company in writing of any new Shares of Common Stock, or any new options, warrants or other rights to purchase shares of the Company’s Common Stock, acquired after the date of this Voting Agreement. 
 
(e) Voting Power. Stockholder has or will have sole voting power, sole power of disposition, sole power to issue instructions with respect to the matters set forth herein, and sole power to agree to all of the matters set forth in this Voting Agreement, in each case with respect to all of Stockholder’s Shares, with no limitations, qualifications or restrictions on such rights, subject to applicable federal securities laws and the terms of this Voting Agreement.
 
	 
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8. Representations and Warranties of the Company. 
 
(a) Existence and Power. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.
 
(b) Authorization. The execution, delivery and performance of this Voting Agreement by the Company are within the Company’s powers and have been duly authorized by all necessary action on the part of the Company. This Voting Agreement constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (i) as such enforcement is limited by bankruptcy, insolvency and other similar laws effecting the enforcement of creditors’ rights generally and (ii) for limitations imposed by general principles of equity.
 
(c) Compliance. The execution, delivery and performance of this Voting Agreement by the Company requires no action by or in respect of, or filing with, any governmental or non-governmental body, agency or official or any other Person other than as required by any applicable requirements of the Exchange Act and other filings or notifications that are immaterial to the consummation of the transactions contemplated hereby.
 
(d) Non-contravention. The execution, delivery and performance of this Voting Agreement by the Company does not and will not (i) violate the internal governance documents of the Company, (ii) violate any applicable law, rule, regulation, judgment, injunction, order or decree binding upon the Company, except for any such violations which would be immaterial to the consummation of the transactions contemplated hereby, or (iii) constitute a default under any agreement or other instrument binding upon the Company. 
 
9. Legending of Shares. If so requested by the Company, Stockholder agrees that the certificates representing the Shares shall bear a legend stating that they are subject to this Voting Agreement and to the Proxy. 
 
10. Termination. This Voting Agreement and the Proxy delivered in connection herewith shall terminate and shall have no further force or effect as of the Expiration Date. Nothing in this Section 10 shall relieve or otherwise limit the liability of any party for breach of this Voting Agreement.
 
11. Miscellaneous. 
 
(a) Amendments; Waiver. Neither this Voting Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by each beneficiary of the waiver, discharge, amendment or termination and the obligor under any such amendment, waiver, discharge or termination.
 
	 
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(b) Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly given (i) on the date of delivery if delivered personally, (ii) on the date of confirmation of receipt (or, the first business day following such receipt if the date is not a business day) of transmission by telecopy, telefacsimile or electronic mail,or (iii) on the date of confirmation of receipt (or, the first business day following such receipt if the date is not a business day) if delivered by a nationally recognized courier service. All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice: 
 
(i) if to the Company, to:
 
CUR Holdings, Inc.
2 Tower Place
Albany, NY 12203
Attention: William F. Duker, President
Telephone: 518.489.3000
E-Mail: bill@sybaris2015.com 
 
if to the CÜR Media, to:
 
CÜR Media, Inc.
____________________
____________________
Attention: Thomas Brophy, Chief Executive Officer
Telephone: 203.912.8479
E-Mail: tbrophy@curmusic.com
 
In either case, with copies to: 
 
CKR Law LLP
1330 Avenue of the Americas, 14th Floor
New York, NY 10019
Attention: Eric C. Mendelson
Telephone: 212.259.7300
Facsimile: 212.259.8200
E-Mail: emendelson@ckrlaw.com(iv) 
 
(ii) If to Stockholder: To the address for notice set forth on Exhibit A hereof.
 
(c) Counterparts. This Voting Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart. 
 
	 
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(d) Interpretation; Knowledge. When a reference is made in this Voting Agreement to Exhibits, such reference shall be to an Exhibit to this Voting Agreement unless otherwise indicated. When a reference is made in this Voting Agreement to Sections, such reference shall be to a section of this Voting Agreement unless otherwise indicated. For purposes of this Voting Agreement, the words “include,” “includes” and “including,” when used herein, shall be deemed in each case to be followed by the words “without limitation.” The headings contained in this Voting Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Voting Agreement.
 
(e) Entire Agreement; Third-Party Beneficiaries. This Voting Agreement and the Proxies (i) constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and (ii) are not intended to confer upon any other Person any rights or remedies hereunder.
 
(f) Severability. In the event that any provision of this Voting Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Voting Agreement will continue in full force and effect and the application of such provision to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this Voting Agreement with a valid and enforceable provision that will achieve, to the greatest extent possible, the economic, business and other purposes of such void or unenforceable provision.
 
(g) Governing Law; Jurisdiction. This Voting Agreement shall be governed by and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof, except to the extent of any mandatory application of the Delaware General Corporation Law with respect to the Proxies. Each party hereby (i) irrevocably and unconditionally submits to the exclusive jurisdiction of the Delaware Court of Chancery, with respect to all actions and proceedings arising out of or relating to this Voting Agreement and the transaction contemplated hereby, (ii) agrees that all claims with respect to any such action or proceeding shall be heard and determined in such courts and agrees not to commence an action or proceeding relating to this Voting Agreement or the transactions contemplated hereby except in such courts, (iii) consents to service of process upon him, her or it by mailing or delivering such service to the address set forth in Section 11(b) hereof, and (iv) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each party hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Voting Agreement, (A) the defense of sovereign immunity, (B) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason other than the failure to serve process in accordance with this Section 11(g), (C) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in any such court (whether through service of notice, attachment prior to judgment, execution of judgment or otherwise), and, to the fullest extent permitted by applicable Law, that (1) the suit, action or proceeding in any such court is improper, (2) the venue of such suit, action or proceeding is improper and (3) this Voting Agreement, or the subject matter hereof, may not be enforced in or by such courts.
 
(h) Rules of Construction. The parties hereto agree that they have been represented by counsel during the negotiation and execution of this Voting Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.
 
(i) Assignment. Stockholder may not assign either this Voting Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the Company, except as provided in Section 2. The Company may assign either this Voting Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of Stockholder. Any purported assignment in violation of this Section 11(i) shall be void. Subject to the preceding sentence, this Voting Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 
	 
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(j) Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS VOTING AGREEMENT OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF. 
 
(k) Further Assurances. Each party hereto agrees to execute and deliver, by the proper exercise of its powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Voting Agreement. 
 
(l) Expenses. All costs and expenses incurred in connection with this Voting Agreement and the transactions contemplated hereby shall be paid by the party incurring the expenses; provided, however, that if any action or other proceeding relating to the enforcement of any provision of this Voting Agreement is brought by any party hereto, the prevailing party shall be entitled to recover reasonable attorneys’ fees, costs and disbursements (in addition to any other relief to which the prevailing party may be entitled).
 
(m) No Obligation to Exercise Options. Notwithstanding any provision of this Voting Agreement to the contrary, nothing in this Voting Agreement shall obligate Stockholder to exercise any option, warrant or other right to acquire shares of the Company’s Common Stock. 
 
(n) Liability. All references to actions to be taken by the Stockholders under this Voting Agreement refer to actions to be taken by Stockholders acting severally and not jointly.
 
(o) Specific Performance. The parties hereto declare that it is impossible to measure in money the damages which will accrue to a party hereto or to their heirs, personal representatives, or assigns by reason of a failure to perform any of the obligations under this Voting Agreement and agree that the terms of this Voting Agreement shall be specifically enforceable. If any party hereto or his heirs, personal representatives, or assigns institutes any action or proceeding to specifically enforce the provisions hereof, any person against whom such action or proceeding is brought hereby waives the claim or defense therein that such party or such personal representative has an adequate remedy at law, and such person shall not offer in any such action or proceeding the claim or defense that such remedy at law exists.
 
[The remainder of this page has been intentionally left blank]
 
	 
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IN WITNESS WHEREOF, the parties have caused this Voting Agreement to be duly executed on the day and year first above written. 
 
 
	 	CUR HOLDINGS, INC., a Delaware corporation
	
	 	 	 	 
		By:		
	 
	Name: 
	William F. Duker
	 
	 	Title: 	President
	 
	 	 	 	 
	 
	CÜR MEDIA, INC., a Delaware corporation
	 

	 
	 
	 
	 

	 
	By: 
	 
	 

	 
	Name: 
	Thomas Brophy
	 

	 
	Title: 
	Chief Executive Officer 
	 

 
[THE STOCKHOLDERS SIGN BY EXECUTING THE OMNIBUS SIGNATURE PAGE 
TO THE PURCHASE AGREEMENT]
 
 
[Signature Page to Voting Agreement]
 
	 
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EXHIBIT A
 
SHARES BENEFICIALLY OWNED
 
	 
Name and Address of Stockholder
	 
	Shares of 
Series A Preferred 
Stock 
Beneficially Owned
		 
Shares of 
Common Stock 
Beneficially Owned

					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					
					

 
	 
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EXHIBIT B
 
IRREVOCABLE PROXY
 
Capitalized terms not defined herein shall have the meanings ascribed to them in that certain Voting Agreement of even date herewith by and among CÜR Holdings, Inc., a Delaware corporation (the “Company””), CUR Media, Inc., a Delaware corporation (“CÜR Media”) and the undersigned stockholder (the “Voting Agreement”). The undersigned stockholder (the “Stockholder”) of the Company, hereby irrevocably (to the fullest extent permitted by law) appoints Thomas Brophy and William F. Duker, and each of them, as the sole and exclusive attorneys and proxies of the undersigned, with full power of substitution and resubstitution, to vote and exercise the Shares regarding the approval of the Merger or the Asset Transfer, as applicable, in accordance with the terms of this Proxy until the Expiration Date. Upon the undersigned’s execution of this Proxy, any and all prior proxies given by the undersigned in contravention of the obligations of Stockholder under the Voting Agreement with respect to any Shares are hereby revoked and the undersigned agrees not to grant any subsequent proxies in contravention of the obligations of Stockholder under the Voting Agreement with respect to the Shares until after the Expiration Date.
 
This Proxy is irrevocable (to the fullest extent permitted by law), is coupled with an interest, and is granted pursuant to the Voting Agreement.
 
The attorneys and proxies named above, and each of them, are hereby authorized and empowered by the undersigned, at any time prior to the Expiration Date, to act as the undersigned’s attorney and proxy to vote the Shares, and to exercise all voting, consent and similar rights of the undersigned with respect to the Shares (including, without limitation, the power to execute and deliver written consents) at every annual, special or adjourned or postponed meeting of stockholders of the Company and in every written consent in lieu of such meeting: (i) in favor of approval of the Merger or the Asset Transfer, as applicable, and (ii) against any action or agreement that would reasonably be expected to result in the failure to satisfy any conditions to the Merger or the Asset Transfer, as applicable.
 
The attorneys and proxies named above may not exercise this Proxy on any other matter. The undersigned stockholder may vote the Shares on all other matters.
 
Any obligation of the undersigned hereunder shall be binding upon the successors and assigns of the undersigned.
 
	 
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This Proxy is irrevocable (to the fullest extent permitted by law). This Proxy shall terminate, and be of no further force and effect, automatically upon the Expiration Date.  
 
	Dated: [__________ __, 2017]	 	 
	 		 
	 
	 
	 
	 
	 
	 

	STOCKHOLDER (individual) 
	 
	 
	STOCKHOLDER (entity)
	 

		 	 
	 		 
		 	 
	 		 
	Signature 	 	 
	Name of Entity 	 
	 
	 
	 
	 
	 

	Print Name 
	 
	 
	Signature of Authorized Person
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Print Name: ____________________________
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Title: _________________________________
	 

 
 
[Signature Page to Irrevocable Proxy]
 
	 12curm_ex1018.htm

 EXHIBIT 10.18
 
SECURITY AGREEMENT
 
THIS SECURITY AGREEMENT (“Agreement”) is made and entered into as of _______________, 2017, by and among CÜR Media, Inc., a Delaware corporation (“CÜR Media”), CUR Holdings, Inc., a Delaware corporation (“Holdings”), each subsidiary of CÜR Media listed on the signature pages hereof (each a “Subsidiary”), and the secured parties listed on the signature pages hereof.
 
WITNESSETH:
 
WHEREAS, pursuant to that certain Securities Purchase Agreement, dated as of even date herewith (as such may be amended, restated, supplemented, or otherwise modified from time to time, including all schedules thereto, collectively, the “Purchase Agreement”), by and among CÜR Media, Holdings and each secured party set forth as a Buyer on the signature page(s) affixed thereto (each, a “Buyer” or “Secured Party” (in the event the Placement Agent, or any of its designees, exercises Placement Agent Warrants to purchase Preferred Stock Units such individual or entity shall become a Secured Party for the purposes of this Agreement)), Holdings has agreed to sell, and each of the Buyers has agreed to purchase, severally and not jointly, the Preferred Stock Units, each Preferred Stock Unit consisting of (i) Unit Shares, which are convertible into shares of Common Stock of Holdings, and (ii) Unit Warrants to purchase shares of Common Stock of Holdings; and
 
WHEREAS, simultaneously with the initial closing of the sale of the Preferred Stock Units, the Company shall consummate a closing of its offering of a 12% Senior Secured Promissory Note of the Company, in the principal amount of $2,500,000, with a term of twelve (12) months (the “New Note”), at a purchase price of 100% (par) (the buyer of the New Note shall be referred to herein as the “New Note Holder”); and
 
WHEREAS, Holdings is negotiating a transaction with CÜR Media, pursuant to which, under certain circumstances, it will either (i) merge with and into CÜR Media (the “Merger”), or (ii) acquire all of the intellectual property and other assets and liabilities of CÜR Media related to CÜR Media’s Music Streaming Business (the “Asset Acquisition” and, together with the Merger, the “Combination Transaction”), as further described in the Term Sheet, dated September 11, 2017, by and between the Company and CÜR Media, a copy of which is attached to the Purchase Agreement as Exhibit E; and
 
WHEREAS, each Grantor (as defined below) will receive direct and substantial benefits from the purchase by each of the Secured Parties of the Preferred Stock Units; and
 
WHEREAS, pursuant to the Purchase Agreement, the Certificate of Designation and the other Transaction Documents, the Secured Parties shall have a right to Put the Preferred Stock Units to the Company (as defined below) at the Put Price under certain circumstances; and
 
WHEREAS, it is a condition precedent to the Buyers purchasing the Preferred Stock Units that the Company (as defined below) and each other Grantor (as defined below) have granted a first priority security interest in and to the Collateral to the Secured Parties to secure the Obligation of the Company (as defined below), on the terms and conditions set forth in this Agreement, pari passu with the first priority security interest in and lien on the Collateral granted to the New Note Holder in connection with the New Note Holder’s purchase of the New Note in the New Note Offering; and
 
	 
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NOW, THEREFORE, for and in consideration of the Purchase Agreement and the Preferred Stock Units, and the other premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties covenant and agree as follows: 
 
1. Definitions.
 
Capitalized terms used herein without definition shall have the meanings ascribed to them in the Purchase Agreement. In addition to the words and terms defined elsewhere in this Agreement, the following words and terms shall have the following meanings, unless the context otherwise clearly requires:
 
“Accounts” shall have the meaning given to that term in the Code and shall include without limitation all rights of each Grantor, whenever acquired, to payment for goods sold or leased or for services rendered, whether or not earned by performance.
 
“Chattel Paper” shall have the meaning given to that term in the Code and shall include without limitation all writings owned by each Grantor, whenever acquired, which evidence both a monetary obligation and a security interest in or a lease of specific goods.
 
“Code” shall mean the Uniform Commercial Code as in effect on the date of this Agreement and as amended from time to time, of the state or states having jurisdiction with respect to all or any portion of the Collateral from time to time.
 
“Collateral” shall mean (i) all tangible and intangible assets of each Grantor, including, without limitation, collectively the Accounts, Chattel Paper, Deposit Accounts, Documents, Equipment, Fixtures, General Intangibles, Instruments, Intellectual Property, Inventory and Investment Property of each Grantor, and (ii) Proceeds of each of them.
 
“Company” shall mean (i) initially, Holdings, (ii) following the consummation of the Asset Acquisition, Holdings, and (iii) following the consummation of the Merger, CÜR Media.
 
“Deposit Accounts” shall have the meaning given to that term in the Code and shall include a demand, time, savings, passbook or similar account maintained with a bank, savings bank, savings and loan association, credit union, trust company or other organization that is engaged in the business of banking.
 
“Documents” shall have the meaning given to that term in the Code and shall include without limitation all warehouse receipts (as defined by the Code) and other documents of title (as defined by the Code) owned by each Grantor, whenever acquired.
 
“Equipment” shall have the meaning given to that term in the Code and shall include without limitation all goods owned by each Grantor, whenever acquired and wherever located, used or brought for use primarily in the business or for the benefit of each Grantor, and not included in Inventory of each Grantor, together with all attachments, accessories and parts used or intended to be used with any of those goods or Fixtures, whether now or in the future installed therein or thereon or affixed thereto, as well as all substitutes and replacements thereof in whole or in part.
 
	 
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“Event of Default” shall mean any default by the Company in the performance of its Obligation under this Agreement and the Holder exercises his, her or its option to Put the Preferred Stock Units to the Company. Such failure shall be the sole Event of Default for the purpose of this Agreement.
 
“Fixtures” shall have the meaning given to that term in the Code, and shall include without limitation leasehold improvements.
 
“General Intangibles” shall have the meaning given to that term in the Code and shall include, without limitation, all leases under which each Grantor, now or in the future leases and or obtains a right to occupy or use real or personal property, or both, all of the other contract rights of each Grantor, whenever acquired, and customer lists, choses in action, claims (including claims for indemnification), books, records, Intellectual Property, contracts, licenses, license agreements, tax and any other types of refunds, returned and unearned insurance premiums, rights and claims under insurance policies, and computer information, software, records and data, and oil, gas, or other minerals before extraction now owned or acquired after the date of this Agreement by each Grantor.
 
“Grantor” shall mean (i) initially, Holdings, (ii) following the consummation of the Asset Acquisition, Holdings, and (iii) following the consummation of the Merger, CÜR Media and any Subsidiary.
 
“Holder” means each Buyer and any person to whom a Buyer assigns all or any portion of the Preferred Stock Units in accordance with the terms thereof. The Holder or Holders owning a majority of the Preferred Stock Units (the “Majority Holders”) are authorized to act on behalf of all of the Holders.
 
“Instruments” shall have the meaning given to that term in the Code and shall include, without limitation, all negotiable instruments (as defined in the Code), all certificated securities (as defined in the Code) and all other writings which evidence a right to the payment of money now or after the date of this Agreement owned by each Grantor.
 
“Intellectual Property” shall mean, all intellectual property of the Grantors including, without limitation all copyrights, trademarks, service marks, trade names, trade secrets, patents, all documented and undocumented research, ideas, data, theories, conclusions, reports, drawings, designs, blueprints, schematics, exhibits, models, prototypes, source code, object code, flow charts, manuals, processes, specifications, formulae, product configurations, notes, inventions (whether or not patentable and whether or not reduced to practice) and any other information of any kind developed, in development or maintained by the Grantors.
 
“Inventory” shall have the meaning given to that term in the Code and shall include without limitation all goods owned by each Grantor, whenever acquired and wherever located, held for sale or lease or furnished or to be furnished under contracts of service, and all raw materials, work in process and materials owned by each Grantor, and used or consumed in each Grantor’s business, whenever acquired and wherever located.
 
	 
	3
	
 
	 

 
“Investment Property,” “Securities Intermediary” and “Commodities Intermediary” each shall have the meaning set forth in the Code.
 
“Obligation,” shall mean the Company’s obligation to pay the Put Price to any Holder upon such Holder’s exercise of its right to Put the Preferred Stock Units to the Company following the occurrence of a Put Trigger (as defined herein).
 
“Permitted Liens” shall mean all (i) all existing liens on the assets of a Grantor which have been disclosed to the Buyers by the Company on a Schedule I attached hereto, and (ii) all purchase money security interests hereinafter incurred by a Grantor in the ordinary course of business.
 
“Proceeds” shall have the meaning given to that term in the Code and shall include without limitation whatever is received when Collateral or Proceeds are sold, exchanged, collected or otherwise disposed of, whether cash or non-cash, and includes without limitation proceeds of insurance payable by reason of loss of or damage to Collateral.
 
“Put Trigger” shall mean the following two conditions, either of which will trigger the right of the Holder to Put the Preferred Stock Units to the Company: (i) any voluntary or involuntary bankruptcy, liquidation, dissolution or winding up of the affairs of the Company, or (ii) if, at any time within eighteen (18) months following the Launch Date, the Company’s market capitalization is not greater than $50,000,000, based on (A) if the Merger has occurred, the average closing price of the Company’s Common Stock for any thirty (30) consecutive trading days, based on the fully diluted, as converted number of shares of the Company’s Common Stock, or (B) if the Asset Acquisition has occurred, a valuation performed by an independent, reputable valuation expert selected by the Company and approved by the Majority Holders (such approval not to be unreasonably withheld or delayed), to be conducted at the Company’s expense, and to be binding upon all parties absent demonstrable error.
 
“Transaction Documents” shall mean collectively, this Agreement, the Purchase Agreement, the Certificate of Designation, the Warrant, the Registration Rights Agreement, the Escrow Agreement and all other agreements, documents and instruments executed and delivered in connection therewith, as each may be amended, restated, supplemented, replaced or otherwise modified from time to time in accordance with the terms thereof.
 
Capitalized terms not otherwise defined in this Agreement or the Purchase Agreement shall have the meanings attributed to such terms in the Code.
 
2. Security Interest.
 
(a) As security for the performance of the Obligation of the Company, each Grantor agrees that the Holders shall have, and each Grantor hereby grants and conveys to and creates in favor of the Holders, a first priority security interest under the Code in and to its Collateral, whether now owned or existing or hereafter acquired or arising, and regardless of where located, pari passu with the first priority security interest in and lien on the Collateral granted to the New Note Holder in connection with the New Note Holder’s purchase of the New Note in the New Note Offering. The security interest granted to the Holders in this Agreement shall be a senior security interest, prior and superior to the rights of all third parties existing on or arising after the date of this Agreement, subject to the Permitted Liens, pari passu with the first priority security interest in and lien on the Collateral granted to the New Note Holder in connection with the New Note Holder’s purchase of the New Note in the New Note Offering. 
 
	 
	4
	
 
	 

  
(b) All of the Equipment, Inventory and Goods owned by each Grantor is located in the states as specified on Schedule I attached hereto (except to the extent any such Equipment, Inventory or Goods is in transit or located at such Grantor’s job site in the ordinary course of business). Except as disclosed on Schedule I, no material Collateral is in the possession of any bailee, warehousemen, processor or consignee. Schedule I discloses such Company name as of the date hereof as it appears in official filings in the state or province, as applicable, of its incorporation, formation or organization, the type of entity of Company (including corporation, partnership, limited partnership or limited liability company), the organizational identification number issued by Company’s state of incorporation, formation or organization (or a statement that no such number has been issued), and the chief place of business, chief executive officer and the office where Company keeps its books and records. Each Grantor has only one state or province, as applicable, of incorporation, formation or organization except as disclosed on Schedule I attached hereto. Each Grantor does not do business and has not done business during the past five (5) years under any trade name or fictitious business name except as disclosed on Schedule I attached hereto.
 
3. Provisions Applicable to the Collateral.
 
The parties agree that the following provisions shall be applicable to the Collateral: 
 
(a) Each Grantor covenants and agrees that at all times during the term of this Agreement it shall keep accurate and complete books and records concerning the Collateral that is now owned by the Grantor. 
 
(b) The Holders or their representatives shall have the right, upon reasonable prior written notice to a Grantor and during the regular business hours of the Grantor, to examine and inspect the Collateral and to review the books and records of the Grantor concerning the Collateral that is now owned or acquired after the date of this Agreement by the Grantor and to copy the same and make excerpts therefrom; provided, however, that from and after the occurrence of the Event of Default, the rights of inspection and entry shall be subject to the requirements of the Code. 
 
(c) Each Grantor shall at all times during the term of this Agreement keep the Equipment, Inventory and Fixtures that are now owned by each Grantor in the states set forth on Schedule I or, upon written notice to the Holders, at such other locations for which the Holders have filed financing statements, and in no other states without ten (10) days’ prior written notice to the Holders, except that each Grantor shall have the right until the Event of Default shall occur to sell, move or otherwise dispose of Inventory and other Collateral in the ordinary course of business. 
 
	 
	5
	
 
	 

  
(d) Each Grantor shall not move the location of its principal executive offices without prior written notification to the Holders. 
 
(e) Without the prior written consent of the Holders, each Grantor shall not sell, lease or otherwise dispose of any Equipment or Fixtures, except in the ordinary course of their business. 
 
(f) Promptly upon request of the Majority Holders from time to time, each Grantor shall furnish the Holders with such information and documents regarding the Collateral and each Grantor’s financial condition, business, assets or liabilities, at such times and in such form and detail as the Holders may reasonably request.
 
(g) During the term of this Agreement, each Grantor shall deliver to the Majority Holders, upon their reasonable, written request from time to time, without limitation, 
 
(i) all invoices and customer statements rendered to account debtors, documents, contracts, chattel paper, instruments and other writings pertaining to each Grantor’s contracts or the performance of each Grantor’s contracts, 
 
(ii) evidence of each Grantor’s accounts and statements showing the aging, identification, reconciliation and collection thereof, and 
 
(iii) reports as to each Grantor’s inventory and sales, shipment, damage or loss thereof, all of the foregoing to be certified by authorized officers or other employees of each Grantor, and Company shall take all necessary action during the term of this Agreement to perfect any and all security interests in favor of each Grantor and to assign to Holders all such security interests in favor of each Grantor. 
 
(h) Notwithstanding the security interest in the Collateral granted to and created in favor of the Holders under this Agreement, each Grantor shall have the right until the Event of Default shall occur, at its own cost and expense, to collect the Accounts and the Chattel Paper and to enforce their contract rights. 
 
(i) Subject to the terms of the New Note and the Permitted Liens, after the occurrence of an Event of Default, the Majority Holders shall have the right, in their sole discretion, to give notice of the Holders’ security interest to account debtors obligated to each Grantor and to take over and direct collection of the Accounts and the Chattel Paper, to notify such account debtors to make payment directly to the Holders and to enforce payment of the Accounts and the Chattel Paper and to enforce each Grantor’s contract rights. It is understood and agreed by each Grantor that the Majority Holders shall have no liability whatsoever under this subsection (i) except for their own gross negligence or willful misconduct. 
 
(j) At all times during the term of this Agreement, each Grantor shall promptly deliver to the Holders, upon the written request of the Majority Holders, all existing leases, and all other leases entered into by each Grantor from time to time, covering any material Equipment or Inventory (the “Leased Inventory”) which is leased to third parties. 
 
	 
	6
	
 
	 

  
(k) Each Grantor shall not change its name, entity status, federal taxpayer identification number, or provincial organizational or registration number, or the state under which it is organized without the prior written consent of the Majority Holders, which consent shall not be unreasonably withheld, conditioned or delayed. 
 
(l) Each Grantor shall not close any of its Deposit Accounts or open any new or additional Deposit Accounts without first giving the Holders at least ten (10) days’ prior written notice thereof; however, the Majority Holders have the power to waive a portion of the notice period if such waiver does not harm Holders’ security position. 
 
(m) Subject to restrictions resulting from the New Note and the Permitted Liens, each Grantor shall cooperate with the Majority Holders, at each Grantor’s reasonable expense, in perfecting Holders’ security interest in any of the Collateral. Each Grantor agrees that from time to time, at its own expense, such Grantor will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or that the Majority Holders may reasonably request, in order to perfect and protect the security interests granted or purported to be granted hereby or to enable the Holders to exercise and enforce their rights and remedies hereunder with respect to any of the Collateral. 
 
(n) Subject to restrictions resulting from the New Note and the Permitted Liens, the Majority Holders may file any necessary financing statements and other documents they deem reasonably necessary in order to perfect the Holders’ security interest without either Grantor’s signature. Each Grantor grants to the Majority Holders a power of attorney for the sole purpose of executing any documents on behalf of each Grantor which the Majority Holders deem reasonably necessary to perfect Holders’ security interest. Such power, coupled with an interest, is irrevocable.
 
4. Actions with Respect to Accounts.
 
Each Grantor irrevocably makes, constitutes and appoints the Majority Holders its true and lawful attorney-in-fact with power to sign its name and to take any of the following actions after the occurrence and prior to the cure of an Event of Default, at any time without notice to either Grantor and at each Grantor’s reasonable expense, subject to the terms of the New Note and the Permitted Liens: 
 
(a) Verify the validity and amount of, or any other matter relating to, the Collateral by mail, telephone, telegraph or otherwise;
 
(b) Notify all account debtors that the Accounts have been assigned to the Holders and that the Holders have a security interest in the Accounts;
 
(c) Direct all account debtors to make payment of all Accounts directly to the Holders;
 
(d) Take control in any reasonable manner of any cash or non-cash items of payment or proceeds of Accounts;
 
(e) Receive, open and respond to all mail addressed to each Grantor;
 
	 
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(f) Take control in any manner of any rejected, returned, stopped in transit or repossessed goods relating to Accounts;
 
(g) Enforce payment of and collect any Accounts, by legal proceedings or otherwise, and for such purpose the Holders may:
 
(i) Demand payment of any Accounts or direct any account debtors to make payment of Accounts directly to the Holders; 
 
(ii) Receive and collect all monies due or to become due to each Grantor pursuant to the Accounts; 
 
(iii) Exercise all of each Grantor’s rights and remedies with respect to the collection of Accounts;
 
(iv) Settle, adjust, compromise, extend, renew, discharge or release Accounts in a commercially reasonable manner; 
 
(v) Sell or assign Accounts on such reasonable terms, for such reasonable amounts and at such reasonable times as the Holders reasonably deem advisable; 
 
(vi) Prepare, file and sign each Grantor’s name or names on any Proof of Claim or similar documents in any proceeding filed under federal or state bankruptcy, insolvency, reorganization or other similar law as to any account debtor; 
 
(vii) Prepare, file and sign each Grantor’s name or names on any notice of lien, claim of mechanic’s lien, assignment or satisfaction of lien or mechanic’s lien or similar document in connection with the Collateral; 
 
(viii) Endorse the name of each Grantor upon any chattel papers, documents, instruments, invoices, freight bills, bills of lading or similar documents or agreements relating to Accounts or goods pertaining to Accounts or upon any checks or other media of payment or evidence of a security interest that may come into the Holders’ possession; 
 
(ix) Sign the name or names of each Grantor to verifications of Accounts and notices of Accounts sent by account debtors to each Grantor; or 
 
(x) Take all other actions that the Holders reasonably deem to be necessary or desirable to protect each Grantor’s interest in the Accounts. 
 
	 
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(h) Negotiate and endorse any Document in favor of the Holders or their designees, covering Inventory which constitutes Collateral, and related documents for the purpose of carrying out the provisions of this Agreement and taking any action and executing in the name(s) of Company any instrument which the Majority Holders may reasonably deem necessary or advisable to accomplish the purpose hereof. Without limiting the generality of the foregoing, the Majority Holders shall have the right and power to receive, endorse and collect checks and other orders for the payment of money made payable to each Grantor representing any payment or reimbursement made under, pursuant to or with respect to, the Collateral or any part thereof and to give full discharge to the same. Each Grantor does hereby ratify and approve all acts of said attorney and agrees that said attorney shall not be liable for any acts of commission or omission, nor for any error of judgment or mistake of fact or law, except for said attorney’s own gross negligence or willful misconduct. This power, being coupled with an interest, is irrevocable until the Company shall have performed the Obligation under this Agreement. Each Grantor further agrees to use its reasonable efforts to assist the Majority Holders in the collection and enforcement of the Accounts and will not hinder, delay or impede the Majority Holders in any manner in their collection and enforcement of the Accounts.
 
5. Preservation and Protection of Security Interest.
 
Each Grantor represents and warrants that it has, and covenants and agrees that at all times during the term of this Agreement, it will have, good and marketable title to the Collateral now owned by it free and clear of all mortgages, pledges, liens, security interests, charges or other encumbrances, except for the New Note and the Permitted Liens and those junior in right of payment and enforcement to that of the Holders or in favor of the Holders, and shall defend the Collateral against the claims and demands of all persons, firms and entities whomsoever. Assuming the Majority Holders have taken all required action to perfect a security interest in the Collateral as provided by the Code, each Grantor represents and warrants that as of the date of this Agreement the Holders have, and that all times in the future the Holders will have, a first priority perfected security interest in the Collateral, prior and superior to the rights of all third parties in the Collateral existing on the date of this Agreement or arising after the date of this Agreement, pari passu with the first priority security interest in and lien on the Collateral granted to the New Note Holder in connection with the New Note Holder’s purchase of the New Note in the New Note Offering, subject to the Permitted Liens. Except as permitted by this Agreement, each Grantor covenants and agrees that it shall not, without the prior written consent of the Majority Holders (i) borrow against the Collateral or any portion of the Collateral from any other person, firm or entity, except for borrowings which are subordinate to the rights of the Holders, (ii) grant or create or permit to attach or exist any mortgage, pledge, lien, charge or other encumbrance, or security interest on, of or in any of the Collateral or any portion of the Collateral except those in favor of the Holders, the holder of the New Note, or the Permitted Liens, (iii) permit any levy or attachment to be made against the Collateral or any portion of the Collateral, except those subject to the New Note and the Permitted Liens, or (iv) permit any financing statements to be on file with respect to any of the Collateral, except financing statements in favor of the Holders, or those with respect to the New Note or the Permitted Liens. Each Grantor shall faithfully preserve and protect the Holders’ security interest in the Collateral and shall, at its own reasonable cost and expense, cause, or assist the Majority Holders to cause that security interest to be perfected and continue perfected until the Company shall have performed the Obligation under this Agreement. For purposes of the perfection of the Holders’ security interest in the Collateral in accordance with the requirements of this Agreement, each Grantor shall from time to time at the request of the Holders file or record, or cause to be filed or recorded, such instruments, documents and notices, including assignments, financing statements and continuation statements, as the Majority Holders may reasonably deem necessary or advisable from time to time in order to perfect and continue perfected such security interest, and the Grantors shall be responsible to reimburse the Majority Holders for such expense. Each Grantor shall do all such other acts and things and shall execute and deliver all such other instruments and documents, including further security agreements, pledges, endorsements, assignments and notices, as the Majority Holders in their discretion may reasonably deem necessary or advisable from time to time in order to perfect and preserve the priority of such security interest as a first lien security interest in the Collateral prior to the rights of all third persons, firms and entities, pari passu with the first priority security interest in and lien on the Collateral granted to the New Note Holder in connection with the New Note Holder’s purchase of the New Note in the New Note Offering, and subject to the Permitted Liens, and except as may be otherwise provided in this Agreement. Each Grantor agrees that a carbon, photographic or other reproduction of this Agreement or a financing statement is sufficient as a financing statement and may be filed instead of the original.
 
	 
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6. Insurance.
 
Risk of loss of, damage to or destruction of the Equipment, Inventory and Fixtures is on each Grantor. Each Grantor shall insure the Equipment, Inventory and Fixtures against such risks and casualties and in such amounts and with such insurance companies as is ordinarily carried by corporations or other entities engaged in the same or similar businesses and similarly situated or as otherwise reasonably required by the Majority Holders in their sole discretion. In the event of loss of, damage to or destruction of the Equipment, Inventory or Fixtures during the term of this Agreement, each Grantor shall promptly notify the Majority Holders of such loss, damage or destruction. At the reasonable request of the Majority Holders, each Grantor’s policies of insurance shall contain loss payable clauses in favor of each Grantor and the Holders as their respective interests may appear and shall contain provision for notification of the Holders thirty (30) days prior to the termination of such policy. At the request of the Majority Holders, copies of all such policies, or certificates evidencing the same, shall be deposited with the Holders. If any Grantor fails to effect and keep in full force and effect such insurance or fail to pay the premiums when due, the Majority Holders may (but shall not be obligated to) do so for the account of such Grantor. The Majority Holders are irrevocably appointed attorney-in-fact of each Grantor to endorse any draft or check which may be payable to each Grantor in order to collect the proceeds of such insurance. Unless an Event of Default has occurred and is continuing, the Holders will turn over to each Grantor the proceeds of any such insurance collected by the Holder on the condition that each Grantor apply such proceeds either (i) to the repair of damaged Equipment, Inventory or Fixtures, or (ii) to the replacement of destroyed Equipment, Inventory or Fixtures with Equipment, Inventory or Fixtures of the same or similar type and function and of at least equivalent value (in the sole judgment of the Majority Holders), provided such replacement Equipment, Fixtures or Inventory is made subject to the security interest created by this Agreement and constitutes a first lien security interest in the Equipment, Inventory and Fixtures subject only to Permitted Liens and other security interests permitted under this Agreement, including under the New Note, and is perfected by the filing of financing statements in the appropriate public offices and the taking of such other action as may be necessary or desirable in order to perfect and continue perfected such security interest. Any balance of insurance proceeds remaining in the possession of the Holders after the Company shall have performed the Obligation under this Agreement shall be paid over to the applicable Grantor or its order.
 
7. Maintenance and Repair.
 
Each Grantor shall maintain the Equipment, Inventory and Fixtures, and every portion thereof, in good condition, repair and working order, reasonable wear and tear alone excepted, and shall pay and discharge all taxes, levies and other impositions assessed or levied thereon as well as the cost of repairs to or maintenance of the same. If any Grantor fails to do so, the Holders may (but shall not be obligated to) pay the cost of such repairs or maintenance and such taxes, levies or impositions for the account of such Grantor, and the Grantor shall be responsible to reimburse the Holders for such expense.
 
	 
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8. Preservation of Rights against Third Parties; Preservation of Collateral in Holders’ Possession.
 
Until such time as the Holders exercise their right to effect direct collection of the Accounts and the Chattel Paper and to effect the enforcement of each Grantor’s contract rights, each Grantor assumes full responsibility for taking any and all commercially reasonable steps to preserve rights in respect of the Accounts and the Chattel Paper and their contracts against prior parties. The Holders shall be deemed to have exercised reasonable care in the custody and preservation of such of the Collateral as may come into its possession from time to time if the Holders take such action for that purpose as the relevant Grantor shall request in writing, provided that such requested action shall not, in the judgment of the Holders, impair the Holders’ security interest in the Collateral or its right in, or the value of, the Collateral, and provided further that the Holders receive such written request in sufficient time to permit the Holders to take the requested action.
 
9. Event of Default and Remedies.
 
(a) If the Event of Default shall occur or shall exist, the Majority Holders may then or at any time thereafter, so long as such default shall continue, foreclose the lien or security interest in the Collateral in any way permitted by law, or upon twenty (20) days’ prior written notice to the relevant Grantor, sell any or all Collateral at private sale at any time or place in one or more sales, at such price or prices and upon such terms, either for cash or on credit, as the Majority Holders, in their sole discretion, may elect, or sell any or all Collateral at public auction, either for cash or on credit, as the Majority Holders, in their sole discretion, may elect, and at any such sale, the Majority Holders, on behalf of the Holders, may bid for and become the Buyer of any or all such Collateral. Pending any such action the Majority Holders may liquidate the Collateral. 
 
(b) If the Event of Default shall occur or shall exist, the Majority Holders may then, or at any time thereafter, so long as such default shall continue, grant extensions to, or adjust claims of, or make compromises or settlements with, debtors, guarantors or any other parties with respect to Collateral or any securities, guarantees or insurance applying thereon, without notice to or the consent of any Grantor, without affecting each Grantor’s liability under this Agreement. Each Grantor waives notice of acceptance, of nonpayment, protest or notice of protest of any Accounts or Chattel Paper, any of its contract rights or Collateral and any other notices to which each Grantor may be entitled.
 
(c) If the Event of Default shall occur or shall exist and be continuing, then in any such event, the Majority Holders shall have such additional rights and remedies in respect of the Collateral or any portion thereof as are provided by the Code and such other rights and remedies in respect thereof which they may have at law or in equity or under this Agreement, including without limitation the right to enter any premises where Equipment, Inventory and/or Fixtures are located and take possession and control thereof without demand or notice and without prior judicial hearing or legal proceedings, which each Grantor expressly waives.
 
	 
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(d) The Majority Holders shall apply the Proceeds of any sale or liquidation of the Collateral, and, subject to Section 5 hereof, any Proceeds received by the Majority Holders from insurance, first to the payment of the reasonable costs and expenses incurred by the Majority Holders in connection with such sale or collection, including without limitation reasonable attorneys’ fees and legal expenses; second to the payment to each Secured Party of such Secured Party’s Subscription Amount, on a pro rata basis, and then to pay the balance, if any, to the relevant Grantor or as otherwise required by law. If such Proceeds are insufficient to pay the amounts required by law, the Grantors shall be liable for any deficiency.
 
(e) Upon the occurrence of any Event of Default, each Grantor shall promptly upon written demand by the Majority Holders assemble the Equipment, Inventory and Fixtures and make them available to the Holders at a place or places to be designated by the Majority Holders. The rights of the Majority Holders under this paragraph to have the Equipment, Inventory and Fixtures assembled and made available to them is of the essence of this Agreement and the Majority Holders may, at their election, enforce such right by an action in equity for injunctive relief or specific performance, without the requirement of a bond. 
 
10. Defeasance.
 
Notwithstanding anything to the contrary contained in this Agreement, upon the earliest to occur of (a) the Company either (i) obtaining 250,000 active subscribers to CÜR Music, or (ii) consummating a qualified offering of at least $10,000,000 (excluding the capital raised in the Offering) in equity securities or securities convertible into or exercisable for equity securities, or (b) with respect to any Secured Party, when such Secured Party shall have either converted any Unit Shares (or securities received in exchange for the Unit Shares in connection with the Combination Transaction) or exercised any Unit Warrants (or securities received in exchange for the Unite Warrants in connection with the Combination Transaction), this Agreement shall terminate and be of no further force and effect and the Holders shall thereupon terminate their security interest in the Collateral. Until such time, however, this Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns, provided that, without the prior written consent of the Majority Holders, no Grantor may assign this Agreement or any of its rights under this Agreement or delegate any of its duties or obligations under this Agreement and any such attempted assignment or delegation shall be null and void. This Agreement is not intended and shall not be construed to obligate the Holders to take any action whatsoever with respect to the Collateral or to incur expenses or perform or discharge any obligation, duty or disability of any Grantor.
 
	 
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11. Miscellaneous.
 
(a) The provisions of this Agreement are intended to be severable. If any provision of this Agreement shall for any reason be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability of such provision in any other jurisdiction or any other provision of this Agreement in any jurisdiction. 
 
(b) No failure or delay on the part of the Holders in exercising any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof or of any other right, remedy, power or privilege of the Holders under this Agreement or any of the other Transaction Documents; nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other right, remedy, power or privilege or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges of the Holders under this Agreement and the other Transaction Documents are cumulative and not exclusive of any rights or remedies which they may otherwise have.
 
(c) Unless otherwise provided herein, all demands, notices, consents, service of process, requests and other communications hereunder shall be in writing and shall be delivered in person or by overnight courier service, or mailed by certified mail, return receipt requested, addressed:
 
If to Company or any other Grantor:
 
At the address for the Company set forth in the Purchase Agreement. 
 
If to the Holder: 
 
At the address for such Holder set forth in the Holder’s signature page to the Purchase Agreement or the address otherwise communicated by such Holder to the Company in writing for such notice purposes.
 
	 
	13
	
 
	 

 
Any such notice shall be effective when delivered, if delivered by hand delivery, overnight courier service, or U.S. Mail return receipt requested.
 
(d) The section headings contained in this Agreement are for reference purposes only and shall not control or affect its construction or interpretation in any respect. 
 
(e) Unless the context otherwise requires, all terms used in this Agreement which are defined by the Code shall have the meanings stated in the Code. 
 
(f) The Code shall govern the settlement, perfection and the effect of attachment and perfection of the Holders’ security interest in the Collateral, and the rights, duties and obligations of the Holders and each Grantor with respect to the Collateral. This Agreement shall be deemed to be a contract under the laws of the State of Delaware and the execution and delivery of this Agreement and, to the extent not inconsistent with the preceding sentence, the terms and provisions of this Agreement shall be governed by and construed in accordance with the laws of that State. EACH GRANTOR HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
 
(g) This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. All of such counterparts shall be read as though one, and they shall have the same force and effect as though all the signers had signed a single page. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.
 
[Signature Page Follows]
 
	 
	14
	
 
	 

 
IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed and delivered this Security Agreement as of the day and year set forth at the beginning of this Security Agreement.
 
 
	GRANTORS:	CUR HOLDINGS, INC., a Delaware corporation	
	 	 	 	 
		By:		
	 
	Name: 
	William F. Duker
	 
	 	Title: 	President
	 
	 	 	 	 
	 
	 
	 
	 

	 
	CÜR MEDIA, INC., a Delaware corporation
	 

	 
	 
	 
	 

	 
	By: 
	 
	 

	 
	Name: 
	Thomas Brophy
	 

	 
	Title: 
	Chief Executive Officer 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	CUR MEDIA, LLC, 
a Connecticut limited liability company
	 

	 
	 
	 
	 

	 
	By: 
	 
	 

	 
	Name: 
	Thomas Brophy 
	 

	 
	Title: 
	President 
	 

 
 
[SECURED PARTIES SIGN BY EXECUTING OMNIBUS SIGNATURE PAGE 
TO THE PURCHASE AGREEMENT, OR, IN THE CASE OF THE PLACEMENT AGENT, OR ITS DESIGNESS, 
BY EXERCISING PLACEMENT AGENT WARRANTS TO PURCHASE PREFERRED STOCK UNITS]
 
 
	15

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