Document:

ex_10-3securityagrmnt.htm

    Exhibit
10.3

    

    

    SECURITY
AGREEMENT

    

    This Security Agreement is entered into
as of July ____, 2008, by and between a21, Inc. a Delaware Corporation
(“Debtor”), with a principal place of business at 7660 Centurion Parkway,
Jacksonville, Florida 32256, and APPLEJACK ART PARTNERS, INC., a Vermont
Corporation with a principal place of business in Sunderland, Vermont (“Secured
Party”).

    

    1. Grant of Security
Interest. Debtor hereby grants to Secured Party, for itself and each of
the Noteholders, a continuing lien on and security interest in the property
described or referred to in Paragraph 2 below (collectively, the “Collateral”)
to secure prompt payment and full performance of the liabilities described in
Paragraph 3 below (collectively, the “Liabilities”).

     

    2. Collateral. The
Collateral consists of all personal property and assets now or hereafter owned
by Debtor or in which Debtor otherwise has any rights, whether now existing or
hereafter arising, including but not limited to the following: (a) all accounts,
contract rights and general intangibles, receivables and claims of Debtor
whether now or hereafter arising, all guaranties and security therefor and all
of Debtor’s right, title and interest in the goods purchased and represented
thereby including all of Debtor’s rights in and to returned goods and rights of
stoppage in transit, replevin and reclamation as unpaid vendor; (b) all chattel
paper including electronic chattel paper and tangible chattel paper; (c) all
documents and instruments including but not limited to, promissory notes
(together with all property securing such documents and instruments); (d) all
letters of credit and letter-of-credit rights; (e) all supporting obligations;
(f) all deposit accounts; (g) all investment property and financial assets; (h)
all inventory and all accessions thereto and products thereof and documents
therefor; (i) all furniture, fixtures, equipment and machinery, wherever located
and whether now or hereafter existing, and all parts thereof, accessions
thereto, and replacements therefor and all documents and general intangibles
covering or relating thereto; (j) all general intangibles (including but not
limited to, all payment intangibles); (k) all books and records pertaining to
the foregoing, including but not limited to computer programs, data,
certificates, records, circulation lists, subscriber lists, advertiser lists,
supplier lists, customer lists, customer and supplier contracts, sales orders,
and purchasing records; (l) all commercial tort claims; and (m) all proceeds of
the foregoing, including without limitation proceeds of insurance
policies.

     

    3. Liabilities. The
liabilities (“Liabilities”) secured under this Security Agreement are all debts,
liabilities and obligations of Debtor to Secured Party under the Promissory Note
dated July ____, 2008 (as amended, restated, supplemented or modified from time
to time, the “Note”) and any and all amendments, replacements, modifications and
supplements thereto, and this Security Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              4.  

            	
              Covenants of
      Debtor. Until the Liabilities are paid in full, Debtor agrees that
      it shall:

            

    

     

    a) not sell
or otherwise dispose of the Collateral except in the ordinary course of
business;

     

    b) except
for liens which come into being by operation of law, not create, incur, assume
or permit to exist any liens, encumbrances, security interests, levies,
assessments or charges (collectively, “Liens”) on or in any of the
Collateral;

     

    c) appear in
and defend, at Debtor’s own expense, any action or proceeding which may affect
Debtor’s title to or Secured Party’s interest in the Collateral;

     

    d) procure
or execute and deliver, from time to time, in form and substance satisfactory to
Secured Party in its discretion reasonably exercised, any endorsements,
assignments, financing statements or other writings deemed necessary or
appropriate by Secured Party to perfect, maintain or protect Secured Party’s
security interest in the Collateral and the priority thereof, and take such
other action and deliver such other documents, instruments and agreements
pertaining to the Collateral as Secured Party may reasonably request to
effectuate the intent of this Security Agreement. In addition, Debtor hereby
authorizes Secured Party to file UCC Financing Statements against Debtor
describing the Collateral as “all assets” or the like of Debtor;

     

    e) notify
Secured Party in writing at least thirty (30) days prior to any change in
Debtor’s name, identity or business structure, or any addition or change to the
address of the chief executive office or principal place of business of Debtor
specified in the introductory paragraph hereof and, in connection therewith,
take any and all actions reasonably requested by Secured Party under Section
4(d) above;

     

    f) keep
separate, accurate and complete records of the Collateral ;

     

    g) provide
Secured Party during normal business hours with reasonable access to the
Collateral upon reasonable notice to the Debtor;

     

    h) maintain
and preserve its existence, and all rights, privileges, and other authority
necessary for the conduct of its business the failure of which to maintain or
preserve could reasonably be expected to result in a material adverse effect on
the business or financial condition of the Debtor or on a material portion of
the Collateral; and

     

    i) continue
operations in substantially the same form and structure of business as currently
conducted, and not (x) merge or consolidate with or acquire or be acquired by
any other corporation, partnership, entity or person or (y) incorporate in
another jurisdiction, in any such instance without the prior consent of the
Secured Party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              5.  

            	
              Authorized Action By
      Secured Party.

            

    

    

    a) After the
occurrence and during the continuance of any “Event of Default” (as
defined below), Debtor hereby irrevocably appoints Secured Party as its
attorney-in-fact to do (but Secured Party shall not be obligated to and shall
not incur any liability to Debtor or any third party for failure so to do) any
act which Debtor is obligated by this Security Agreement to do, and to exercise
such rights and powers as Debtor might exercise with respect to the Collateral,
including, without limitation, the right to:

     

    
      	
              (i)  

            	
              collect
      by legal proceedings or otherwise and endorse, receive and receipt for all
      payments, proceeds and other sums and property now or hereafter payable on
      or on account of the Collateral;

            

    

     

    
      	
              (ii)  

            	
              enter
      into any extension, deposit or other agreement pertaining to, or deposit,
      surrender, accept, hold or apply other property in exchange for, the
      Collateral;

            

    

     

    
      	
              (iii)  

            	
              process
      and preserve the Collateral; and

            

    

     

    
      	
              (iv)  

            	
              make
      any reasonable compromise, settlement or adjustment, and take any action
      it deems advisable, with respect to the Collateral upon five Business
      Days’ prior written notice to
Debtor.

            

    

     

    b) If Debtor
is not engaging in any act that Debtor is obligated by the Security Agreement to
perform., Debtor agrees to reimburse Secured Party upon demand for any
reasonable costs and expenses, including reasonable attorneys’ fees, Secured
Party may incur while acting as Debtor’s attorney-in-fact hereunder, all of
which costs and expenses are included in the Liabilities secured hereby and are
payable upon demand.

     

    c) It is
further agreed and understood between the parties hereto that such care as
Secured Party gives to the safekeeping of its own property of like kind shall
constitute reasonable care of the Collateral when in Secured Party’s possession;
provided, however, that Secured Party shall not be required to make any
presentment, demand or protest, or give any notice and need not take any action
to preserve any rights against any prior party or any other person in connection
with the Liabilities or with respect to the Collateral.

     

    d) If
Debtor’s records are prepared or retained by a computer service company or any
accountant or accounting service, so long as any Liabilities are outstanding,
Debtor grants Secured Party the absolute and irrevocable right, with reasonable
notice to Debtor, to inspect such records (including Debtor’s internal work
papers), receive duplicate copies of all information furnished to Debtor and
prepared by such company, accountant or accounting service, and agrees to
furnish such consents as may be necessary to effectuate the same. Debtor further
agrees to promptly notify Secured Party of the name and address of such company,
accountant or accounting service and of any change in respect
thereof.

     

    e) All the
foregoing powers authorized herein, being coupled with an interest, are
irrevocable so long as any Liabilities are outstanding.

     

    f) Default. The
occurrence of any of the following events or conditions (herein “Events of Default”)
shall constitute an Event of Default hereunder:

     

    
      	
              (i)  

            	
              breach,
      violation or nonperformance of any covenant on Debtor’s part
      hereunder;

            

    

    

    
      	
              (ii)  

            	
              any
      Event of Default under and as defined in the
  Note.

            

    

    

    Any Event of Default that shall have
occurred hereunder or under the Note at any time shall be deemed continuing
unless such Event of Default is (i) cured, provided that an
Event of Default may only be cured within the time-frame and only if so
expressly permitted under the terms of this Agreement or the Note, as applicable
or (ii) waived in writing by the Secured Party.

    

    6. Remedies. Upon the
occurrence and during the continuation of any Event of Default, Secured Party
may, at its option, with prompt subsequent notice but without demand on Debtor,
declare all Liabilities immediately due and payable, and Secured Party shall
have all the default rights and remedies of a secured party under Article 9 of
the Vermont Uniform Commercial Code (the “UCC”) and other applicable law as well
as the following rights and remedies, all of which may be exercised with or
without further notice to Debtor (other than notices which Debtor is not
permitted to waive under the UCC):

     

    a) to the
extent permitted by law, to notify any and all obligors and account debtors on
the Collateral that the same has been assigned to Secured Party and that all
payments thereon are to be made directly to Secured Party;

     

    b) to
settle, compromise or release, on terms reasonably acceptable to Secured Party,
in whole or in part, any amounts owing on the Collateral, and to extend the time
of payment, make allowances and adjustments and to issue credits in Secured
Party’s name or in the name of Debtor in respect thereof;

     

    c) to sell
or otherwise dispose of the Collateral or any part thereof, for cash, on credit
or otherwise, with or without representations or warranties, and upon such terms
as shall be acceptable to Secured Party;

     

    d) to
require the Debtor to assemble the Collateral and to make it available to the
Secured Party for retrieval/repossession;

     

    e) In the
event the Debtor fails to comply with subsection 6(d) above, to enter any
premises where any Collateral may be located and to take possession of
and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    remove
the Collateral, with or without judicial process; to remove from any premises
where the same may be located, any and all documents, instruments, files and
records relating to the Collateral (provided, that
Secured Party agrees to (i) give receipts for such items to Debtor and (ii) use
the same standard of care for such documents, instruments files and records as
Secured Party would use for its own property of a similar nature); provided further, that Secured
Party shall incur no liability with respect to the foregoing subparagraphs (b)
and (c) except in the case of its gross negligence or willful misconduct), and
Secured Party may, at Debtor’s expense, use the supplies and space of Debtor at
its places of business as may be necessary to properly administer and control
the Collateral or the handling of collections and realizations thereon;
and

     

    f) to take
or bring, in Secured Party’s name or in the name of  Debtor, all
steps, actions, suits or proceedings deemed by Secured Party necessary or
desirable to effect collection of or to realize upon the
Collateral;

     

    all at
Secured Party’s sole option and as Secured Party in its sole discretion may deem
advisable.

    

    
      	
              7.  

            	
              Manner of
      Sale.  Unless the Collateral is perishable or threatens
      to decline speedily in value or is of a type customarily sold on a
      recognized market, Debtor shall be given ten (10) business days prior
      notice of the time and place of any public sale or of the time and place
      of any private sale or other intended disposition of Collateral, which
      notice Debtor hereby agrees shall be deemed reasonable notice
      thereof. 

            

    

    

    
      	
              8.  

            	
              Application of
      Proceeds of Collateral. The net cash proceeds resulting from the
      collection, liquidation, sale or other disposition of the Collateral shall
      be applied first to the expenses (including all reasonable attorneys’
      fees) of retaking, holding, processing and preparing for sale, selling,
      collecting, liquidating and the like, and then to the satisfaction of all
      Liabilities secured hereby, application as to any particular obligation or
      indebtedness or against principal or interest to be in Secured Party’s
      discretion. Debtor shall be liable to Secured Party and shall pay to
      Secured Party on demand any deficiency which may remain after such sale,
      disposition, collection or liquidation of
  Collateral.

            

    

     

    
      	
              9.  

            	
              Cumulative
      Rights. The rights, powers and remedies of Secured Party under this
      Security Agreement shall be in addition to all rights, powers and remedies
      given to Secured Party under any statute or rule of law or any other
      document, instrument or agreement, all of which rights, powers and
      remedies shall be cumulative and may be exercised successively or
      concurrently.

            

    

     

    
      	
              10.  

            	
              Waiver. Any
      forbearance, failure or delay by Secured Party in exercising any right,
      power or remedy shall not preclude the further exercise thereof, and every
      right, power or remedy of Secured Party shall continue in full force and
      effect until such right, power or remedy is specifically waived in a
      writing executed by Secured Party. Debtor waives any right to require
      Secured Party to proceed against any person
or

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    to
exhaust any Collateral or to pursue any remedy in Secured Party’s power prior to
pursuing Debtor in respect of the Liabilities.

     

    
      	
              11.  

            	
              Binding Upon
      Successors. All rights of Secured Party under this Security
      Agreement shall inure to the benefit of its successors and assigns, and
      all obligations of Debtor shall bind the representatives, administrators,
      successors and assigns of the Debtor; provided that
      Debtor may not transfer or assign its obligations hereunder. Any transfer
      or assignment by Debtor in violation of the foregoing shall be null and
      void.

            

    

     

    
      	
              12.  

            	
              Entire Agreement;
      Severability. This Security Agreement together with the Note
      contains the entire security agreement between Secured Party and Debtor
      with respect to the Collateral. If any of the provisions of this Security
      Agreement shall be held invalid or unenforceable, this Security Agreement
      shall be construed as if not containing those provisions and the rights
      and obligations of the parties hereto shall be construed and enforced
      accordingly.

            

    

     

    
      	
              13.  

            	
              References. The
      captions or titles of the paragraphs of this Security Agreement are for
      convenience of reference only and shall not define or limit the provisions
      hereof.

            

    

     

    
      	
              14.  

            	
              Choice of Law.
      This Security Agreement and all matters arising out of or relating hereto
      shall be governed by and enforced in accordance with the internal laws of
      the State of Vermont, without reference to conflict of law
      principles.  The parties shall participate in mediation to
      attempt to resolve any dispute, controversy or claim that arises in
      relation to this Agreement. Any unresolved controversy, claim or dispute
      arising out of or in relation to this Agreement, or the breach thereof,
      will be settled by arbitration in accordance with the Commercial
      Arbitration Rules of the American Arbitration Association, and judgment
      upon the award rendered by the arbitrator(s) may be entered in any court
      having jurisdiction thereof. Any arbitration hearings will be conducted in
      Albany, New York.

            

    

     

    
      	
              15.  

            	
              Notice. Any
      written notice, consent or other communication provided for in this
      Security Agreement shall be given and deemed received as provided in the
      Note.

            

    

     

    
      	
              16.  

            	
              Counterparts.
      This Security Agreement may be executed in any number of counterparts, and
      by the parties hereto in separate counterparts, each of which when so
      executed and delivered shall be deemed an original, but all such
      counterparts together shall constitute but one and the same
      instrument.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
undersigned have entered into this Security Agreement as of the date first above
written.

    

    SECURED
PARTY:                                                                                                DEBTOR:

    

    APPLEJACK
ART PARTNERS,
INC                                                                                        a21,
INC

    

    

    By:_______________________________                                                                                                  By:______________________________________ex_10-4intercreditoragrmnt.htm

    Exhibit
10.4

     

    

     

    INTERCREDITOR
AGREEMENT

     

    THIS
INTERCREDITOR AGREEMENT (this “Agreement”) dated as of July 14, 2008 by and
among a21, Inc, a Delaware corporation (“Company”), Applejack
Art Partners, Inc. (“Senior Lienholder”),
and AHAB International LTD / AHAB Partners LP (“AHAB”) as agent for itself and
the other holders of $15,500,000 of the Company’s convertible term notes, and
those purchasers (the “Purchasers”) of Notes set forth on Schedule A annexed
hereto and Udi Toledano as administrative and collateral agent for the holders
of such Notes (collectively, AHAB, the Purchasers and Udi Tolendano as
administrative and collateral agent, are hereinafter referred to as the “Subordinate
Lienholders”).

     

    RECITALS

     

    
      	
              A.  

            	
              Senior
      Lienholder has agreed to provide Company with financial accommodations to
      support Company’s working capital needs.  In connection
      therewith, Company has granted Senior Lienholder a security interest in
      all of Company’s now owned or hereafter acquired assets (the “Collateral”).

            

    

     

    
      	
              B.  

            	
              AHAB
      and the Purchasers have provided Company and/or its affiliates from time
      to time with financial accommodations to support Company’s and/or its
      affiliate’s working capital needs. In connection therewith, Company and/or
      its affiliates have granted certain of the Subordinate Lienholders
      security interests in the
Collateral.

            

    

     

    
      	
              C.  

            	
              It
      is a condition precedent to Senior Lienholder providing and continuing to
      provide financial accommodations to Company that Senior Lienholder and
      Subordinate Lienholders enter into this Agreement by which the parties
      shall establish certain of their respective rights, priorities and duties
      as respects the Collateral.

            

    

     

    NOW,
THEREFORE, the parties hereto agree as follows:

     

    1. Priority of Liens on
Collateral.  Notwithstanding the date, manner or order of
perfection of the security interests and liens granted to Senior Lienholder and
Subordinate Lienholders, and notwithstanding any provisions of the Uniform
Commercial Code, or any applicable law or decision or the agreements between
Senior Lienholder and Company or the agreements between Subordinate Lienholders
and Company, or whether either Senior Lienholder or Subordinate Lienholders
holds possession of all or any part of the Collateral, as between Senior
Lienholder, on the one hand, and Subordinate Lienholders, on the other hand,
Senior Lienholder shall have a first and prior security interest in the
Collateral and Subordinate Lienholders shall have a second and subordinate
security interest in the Collateral. As between AHAB, on the one hand, and the
Purchasers and Udi Toledano as administrative and collateral agent for the
holders of such Notes, on the other hand, that certain intercreditor agreement
dated May 15, 2006 (the “Subordinate Intercreditor Agreement”) shall govern
their relationship and the priority of their respective security interests in
the Collateral.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    2. Enforcement
Actions.

     

    (a) Until all
the obligations and liabilities owing by Company to Senior Lienholder which for
purposes of this Agreement shall not exceed $500,000 (the “Senior Lienholder
Obligations”) are paid in full, neither AHAB nor any Purchaser nor Udi
Toledano as administrative and collateral agent for the holders of such Notes
shall (i) take, or support any other person or entity in taking, any Enforcement
Action (as defined below) with respect to the Collateral or (ii) contest,
protest or object, or support any other person or entity in contesting,
protesting or objecting, to any Enforcement Action brought by or otherwise taken
by the Senior Lienholder with respect to the Senior Lienholder Obligations
and/or the Collateral.  As used in this Agreement, “Enforcement Action”
shall mean any demand for payment or acceleration of the obligations and
liabilities owing by Company to AHAB or any Purchaser or Udi Toledano as
administrative and collateral agent for the holders of such Notes, the exercise
of any rights and remedies with respect to any Collateral securing such
obligations and liabilities or the commencement or prosecution or enforcement of
any of the rights and remedies under any agreement made by Company with or in
favor of AHAB or any Purchaser.

     

    (b) After the
occurrence of an Event of Default by Company under that certain commercial loan
agreement of even date herewith between Senior Lienholder and Company (the “Loan
Agreement”), Senior Lienholder’s rights with respect to the Collateral shall
include the right to release any or all of the Collateral from its security
interest therein and the security interest of Subordinate Lienholders therein
(without any further action on the part of Subordinate Lienholders) in
connection with any sale or other disposition of the
Collateral.  Without limiting the foregoing, if Senior Lienholder
shall determine, in connection with any sale or other disposition of any
Collateral that the release of the security interest of Senior Lienholder on any
such Collateral in connection with any such sale or other disposition is
necessary or advisable, Subordinate Lienholders shall execute and deliver such
release documents and instruments and shall take such further actions as Senior
Lienholder shall request.  Subordinate Lienholders hereby appoint
Senior Lienholder and any officer or duly authorized person of Senior
Lienholder, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power of attorney in the place and stead
of Subordinate Lienholders, and in the name of Subordinate Lienholders or in
Senior Lienholder’s own name, from time to time, in Senior Lienholder’s
discretion, for the purposes of carrying out the terms of this subsection, to
take any and all appropriate action and to execute and deliver any and all
documents and instruments as may be necessary or desirable to accomplish the
purposes of this paragraph, including, without limitation, any financing
statements, endorsements, assignments or other documents or instruments of
transfer (which appointment, being coupled with an interest, is
irrevocable).  Subordinate Lienholders hereby ratify all that said
attorneys shall do or cause to be done under this subsection.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    3. Distribution of Proceeds of
Collateral.

     

    (a) All
proceeds of Collateral resulting from the sale or other disposition of
Collateral, whether or not in connection with or resulting from any Enforcement
Action or any proceeding or other action under any law relating to bankruptcy,
insolvency, reorganization, or relief of debtors, shall be distributed first to
Senior Lienholder until all the Senior Lienholder Obligations shall have been
paid in full and the balance, if any, to AHAB for application to the obligations
and liabilities owing by Company to AHAB and the Purchasers and Udi Toledano as
administrative and collateral agent for the holders of such Notes in accordance
with the provisions of, and the priorities set forth in, the Subordinate
Intercreditor Agreement.

     

    (b) Until all
the Senior Lienholder Obligations are paid in full, any proceeds constituting
Collateral which may be received by AHAB or any Purchaser shall be segregated
and held in trust and promptly paid over to Senior Lienholder, in the same form
as received, with any necessary endorsements.  If Subordinate
Lienholders fails to make any such endorsement or assignment, Senior Lienholder
is authorized to make the same as agent for Subordinate Lienholders (which
authorization, being coupled with an interest, is irrevocable).

     

    (c) The
provisions of this Section 3 are solely for the benefit of Senior Lienholder, on
the one hand, and AHAB and the Purchasers, on the other hand, and not for the
benefit of any other person or entity.

     

    4. Bailee for
Perfection.  Each of Senior Lienholder, on the one hand, and
Subordinate Lienholders, on the other hand, acknowledges and agrees that to the
extent that it (or its agent) retains physical possession or control of any of
the Collateral, it (or its agent) shall hold such Collateral on behalf of the
other so that for purposes of perfecting any security interest or lien in any
Collateral it acts and holds such Collateral on behalf of Senior Lienholder and
Subordinate Lienholders.  Nothing in this Section 4 shall affect the
relative priorities in and to the Collateral, all of which shall be governed by
Section 1 of this Agreement.

     

    5. Consent to Security
Interest.  Senior Lienholder agrees that, notwithstanding any
contrary provision in any agreement between Company and Senior Lienholder,
Company may grant a security interest to any Subordinate Lienholder in the
Collateral and agrees that the grant of such security interest shall not
constitute a default or event of default by Company under any agreement between
Company and Senior Lienholder.  Subordinate Lienholders agree that
notwithstanding any contrary provision in any agreement between Company and any
Subordinate Lienholder, Company may grant a security interest to Senior
Lienholder in the Collateral and agrees that the grant of such security interest
shall not constitute a default or event of default by Company under any
agreement between Company and any Subordinate Lienholder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    6. Extensions and
Renewals.  Senior Lienholder hereby consents to and waives
notice of any and all extensions and renewals of Company’s obligations to
Subordinate Lienholder, any or all of which, at Subordinate Lienholder’s option,
may be for a period longer than the period of the renewed or extended
obligation.

     

    7. No
Obligation.  This Agreement shall not be construed to give rise
to any obligation on the part of any Subordinate Lienholder to assume or pay any
indebtedness of Company to Senior Lienholder, nor shall this Agreement be
construed to give rise to any obligation on the part of AHAB or any Purchaser to
provide to Company any amount or enter into other financing arrangement with
Company.  This Agreement shall not be construed to give rise to any
obligation on the part of Senior Lienholder to assume or pay any indebtedness of
Company to AHAB or any Purchaser, nor shall this Agreement be construed to give
rise to any obligation on the part of Senior Lienholder to provide to Company
any amount or enter into other financing arrangement with Company.

     

    8. Insolvency.  If
Company shall make a general assignment for the benefit of creditors or if any
proceeding or other action under any law relating to bankruptcy, insolvency,
reorganization, or relief of debtors or seeking appointment of a receiver,
trustee, custodian, or similar official for Company or any part of the
Collateral shall be commenced by or against Company, this Agreement shall remain
in full force and effect.

     

    9. No
Waiver.  Nothing contained in this Agreement and no act,
inaction or action taken or done by Senior Lienholder or any Subordinate
Lienholder pursuant to the powers and rights granted hereunder or under any
document executed in connection herewith shall be deemed to be a waiver by
Senior Lienholder or any Subordinate Lienholder of any of its rights and
remedies against Company under applicable law or under any agreements and/or
documents executed with or in favor of Senior Lienholder or any Subordinate
Lienholder, or in respect of, any of the obligations owing by Company to Senior
Lienholder or AHAB or any Purchaser.

     

    10. Severability.  If any provision
of this Agreement or the application thereof to any person or circumstances
shall be invalid or unenforceable to any extent, the remainder of this Agreement
and the application of such provisions to other persons or circumstances shall
not be affected thereby and shall be enforced to the greatest extent permitted
by law.

     

    11. Headings.  All
headings used herein are for convenience of reference only and do not constitute
a substantive part of this Agreement and shall not effect its
interpretation.

     

    12. Amendment.  This
Agreement may not be amended or changed in any respect or in any manner other
than by a writing signed by the parties hereto.

     

    13. Effectiveness.  Notice
of acceptance hereof is waived.  The provisions of this Agreement are
effective upon execution of this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    14. Assignment.  This
Agreement shall be binding upon and shall inure to the benefit of the parties
and their respective successors and assigns.

     

    15. Governing
Law.  This Agreement shall be construed in accordance with,
without giving effect to principles of conflicting laws governed by the State of
New York.

     

    16. Signatures.  This
Agreement may be executed by the parties hereto in one or more counterparts,
each of which shall be deemed an original and all of which when taken together
shall constitute one and the same agreement.  Any signature delivered
by a party by facsimile or electronic transmission shall be deemed to be an
original signature hereto.

     

    

     

    [Signature
Page to Follow]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set forth above.

     

    

    
      	
              APPLEJACK
      ART PARTNERS, INC.

            	
              AHAB
      International LTD / AHAB Partners LP

               

            
	
              By:                                                                

              Name:                                                                

              Title.:                                                                

            	
              By:                                                                

              Name:                                                                

              Title.:                                                                 

            
	 
      	
              a21,
      INC.

            
	 
      	
              By:                                                                

              Name:                                                                

              Title.:                                                                

            

    

    

    Okoboji
Trust

    

    

    By:_____________________________

    James Willenborg, Trustee

    

    

    

    _____________________________

    James Willenborg

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Millennium
3 Opportunity Fund, LLC

    

    

    By:_____________________________

    Udi Toledano, Member
Manager

    

    

    

    

    ________________________________

    Gerald Katcher

    

    

    

    

    

    Entrust
Capital Frontier Fund, LP

    

    BY:  Bantry
Bay Partners, LLC

    

    BY:
_____________________________

    Eric Zachs, Managing
Member

    

    

    

    Udi
Tolendano, as administrative and collateral agent:

    

    

    

    _______________________________

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    SCHEDULE
A

    

    ART SELECT Note
Holders

    

    

    

    Okoboji
Trust

    

    Millennium
3 Opportunity Fund, LLC

    

    Gerald
Katcher

    

    Entrust
Capital Frontier Fund, LP

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}]]