Document:

Unassociated Document

    Exhibit
      10.5

    SECURITY
      AGREEMENT

    

    

    THIS
      SECURITY AGREEMENT (the “Agreement”), made this ___ day of ____________, 2007,
      is by and between BUILDING PARTNERS, INC., a Delaware corporation with executive
      offices at 10 Main Street, Rochester, New Hampshire 03839 (the “Debtor”), and TD
      BANKNORTH, N. A., a national banking association with a business address of
      5
      Commerce Park North, Bedford, New Hampshire 03110 (the “Secured
      Party”).

    

    WITNESSETH:

    

    WHEREAS,
      pursuant to the Commercial Loan Agreement dated May 5, 2005 as amended to date,
      (as amended, the “Loan Agreement”), Secured Party has established in favor of
      Debtor’s affiliates, BRANDPARTNERS GROUP, INC., a Delaware corporation, and
      BRANDPARTNERS RETAIL, INC., a New Hampshire corporation (such entities
      individually, collectively, jointly, and severally under the Loan Agreement
      being the “Borrower”), certain credit facilities consisting of a Revolving Line
      of Credit in the principal amount of up to $5,000,000 and a Term Loan in the
      principal amount of $2,000,000 (collectively, the Revolving Line of Credit
      and
      the Term Loan being the “Loans”), all as set forth and described in the Loan
      Agreement;

    

    WHEREAS,
      pursuant to a certain Guaranty Agreement of near or even date of the Debtor
      in
      favor of the Secured Party (the “Guaranty”), Debtor has guaranteed full payment
      and performance of all of the Obligations of the Borrower to the Secured Party
      under the Loan Agreement and the Loan Documents; and

    

    WHEREAS,
      the obligation of the Secured Party to continue making the Loans to the Borrower
      is subject to the condition, among others, that the Debtor shall execute and
      deliver this Agreement and grant the security interests hereinafter described.
      Terms not otherwise defined herein shall have the meanings ascribed to them
      in
      the Loan Agreement.

    

    NOW,
      THEREFORE, in consideration of the willingness of the Secured Party to continue
      making the Loans to the Borrower, and for other good and valuable consideration,
      the receipt and sufficiency of which is hereby acknowledged, the parties agree
      as follows:

    

    1.
      Security
      Interest.
      As
      security for the Secured Obligations described in Section 2 hereof, Debtor
      hereby grants to the Secured Party a first priority security interest in and
      lien on all of the property and assets of the Debtor, including, but not limited
      to the property and assets of the types described below (hereinafter referred
      to
      collectively as the “Collateral”):

    

    (a)
      All
      goods, including equipment, machinery, office equipment, furniture, and motor
      vehicles, along with all other parts, tools, trade-ins, repairs, accessories,
      accessions, modifications, and replacements, whether now owned or subsequently
      acquired, constructed, or attached or added to, or placed in, the foregoing
      (collectively, the “Equipment”);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      All
      inventory, wherever located, including goods, merchandise and other personal
      property, held for sale, licensing, or lease or furnished or to be furnished
      under a contract of service, or constituting raw materials, work in process
      or
      materials used or consumed in the Debtor's business, or consigned to others
      or
      held by others for return to the Debtor, whether now owned or subsequently
      acquired or manufactured and wherever located (collectively, the
“Inventory”);

    

    (c)
      All
      accounts and accounts receivable, including, without limitation, accounts,
      contracts, contract rights, license fees, royalties, chattel paper, instruments,
      rents, deposits, general intangibles, and any other obligations of any kind
      whether now existing or hereafter arising out of or in connection with the
      sale,
      licensing or lease of goods or intangibles, the rendering of services, or the
      granting of licenses, and all rights now or hereafter existing in and to all
      security agreements, notes, leases, licenses, franchises, supply agreements,
      and
      other contracts securing or otherwise relating to any such accounts, contracts,
      contract rights, chattel paper, instruments, rents, deposits, general
      intangibles, or obligations (any and all such accounts, contracts, contract
      rights, chattel paper, instruments, rents, deposits, general intangibles, and
      obligations being the “Receivables”, and any and all such security agreements,
      notes, leases, licenses, franchises, supply agreements, and other contracts
      being the “Related Contracts”);

    

    (d)
      All
      general intangibles, including, but not limited to, corporate names, trade
      names, trademarks, trade secrets, copyrights, patents (issued and pending),
      inventions, books and records, customer lists, blue prints and plans, computer
      programs, tapes and related electronic data, processing software, and all
      corporate ledgers;

    

    (e)
      All
      investment property, including, but not limited to, securities, whether
      certificated or uncertificated; securities entitlement; securities accounts;
      commodity contracts; and commodity accounts;

    

    (f)
      Any
      and all additions, accessions, substitutions or replacements to or for any
      of
      the foregoing;

    

    (g)
      Any
      and all products and proceeds of any or all of the foregoing, including, without
      limitation, cash, cash equivalents, tax refunds and the proceeds of insurance
      policies providing coverage against the loss or destruction of or damage to
      any
      of the Collateral, or any indemnity, warranty, or guarantee payable by reason
      of
      loss or damage to or otherwise with respect to any of the Collateral (whether
      or
      not the Secured Party is the loss payee thereof); 

     

    
      
        
        

      

      
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    (h)
      All
      of the Debtor's after-acquired property of the kinds and types described in
      paragraphs (a) - (g) herein;

    

    (i)
      All
      records and data relating to any of the property described above, whether in
      the
      form of a writing, photograph, microfilm, microfiche, or electronic media,
      together with all of the Debtor's right, title, and interest in and to all
      computer software required to utilize, create, maintain and process any of
      such
      records or data or electronic media; and

    

    also
      in
      (1) all checks, money, securities, bank accounts, deposit accounts, and other
      accounts in the possession of or held by the Secured Party whether in the name
      of the Debtor or in the name of the Secured Party, and (2) all other property
      in
      which a security interest is granted by the Debtor to the Secured Party pursuant
      to this Agreement.

    

    2.
      Secured
      Obligations.
      The
      security interest hereby granted shall secure the following (the “Secured
      Obligations”):

    

    (a)
      Debtor’s payment and performance of all of the Guaranteed Obligations as defined
      and described in the Guaranty;

    

    (b)
      Borrower’s payment of the aggregate principal sum of up to Seven Million Dollars
      ($7,000,000) under the Loans, together with interest, prepayment fees, and
      other
      charges thereon as provided in the Loan Agreement and the notes evidencing
      the
      Loans of near or even date made jointly and severally by Borrower payable to
      the
      order of the Secured Party (such notes, together with any subsequent extensions,
      renewals, modifications, substitutions or replacements thereof, are hereinafter
      collectively referred to as the “Note”);

    

    (c)
      The
      Borrower's payment or performance of its obligations under the Loan Agreement
      and under the other Loan Documents (as defined, described and identified in
      the
      Loan Agreement, hereinafter the “Loan Documents”), as the same may be amended,
      modified, extended, renewed, replaced or restated; 

    

    (d)
      The
      payment of all other sums with interest and charges thereon advanced in
      accordance herewith to protect the validity, security, and priority of this
      Agreement, the Loan Agreement, or the Loan Documents;

    

    (e)
      Any
      and all obligations of the Borrower arising under any foreign exchange
      contracts, interest rate swap, cap, floor or hedging agreements, interest rate
      protection products, or similar agreements with the Secured Party or any
      affiliate of the Secured Party; any and all obligation of the Borrower to the
      Secured Party arising under any credit cards issued by the Secured Party to
      the
      Borrower; and any and all obligations of the Borrower to the Secured Party
      out
      of or in connection with any Automated Clearing House (“ACH”) Agreements
      relating to the processing of ACH transactions, together with all fees,
      expenses, charges and other amounts owing by or chargeable to the Borrower
      under
      all such contracts, agreements, and credit cards; and 

     

    
      
        
        

      

      
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    (f)
      Any
      and all other indebtedness of Borrower to Secured Party of every kind and
      description, direct or indirect, absolute or contingent, due or to become due,
      regardless of how they arose, now existing or hereafter arising.

    

    3.
      Warranties
      and Representations of the Debtor.
      Debtor
      hereby makes the following representations and warranties which shall survive
      the execution and delivery of this Agreement and shall be continuing
      representations and warranties as long as any Secured Obligation remains
      outstanding:

    

    (a)
      All
      representations and warranties made in the Loan Agreement and the Loan Documents
      relating to the Debtor and the Collateral are true, accurate and complete in
      all
      material respects;

    

    (b)
      The
      Debtor is organized under the laws of the State of Delaware and its principal
      place of business is located at 10 Main Street, Rochester, New Hampshire 03839;
      the Debtor's executive offices and the office where its books and records are
      kept and are to be kept concerning the Receivables, Related Contracts and other
      Collateral are at the aforesaid address; and the Debtor currently has no other
      places of business except those set forth on Schedule I hereto and for the
      previous four (4) month period Debtor has had no other places of business except
      those set forth on Schedule I hereto;

    

    (c)
      Other
      than as set forth on Schedule I, the Debtor conducts business only under and
      through the corporate, business and trade names first set forth
      above;

    

    (d)
      No
      material authorization, approval or other action by, and no notice to or filing
      with, any governmental authority or other person is required either (i) for
      the
      grant by the Debtor of the security interests granted hereby or for the
      execution, delivery or performance of this Agreement by the Debtor, or (ii)
      for
      the perfection of or the exercise by the Secured Party of its respective rights
      and remedies hereunder, except the filing of financing statements or as
      previously obtained;

    

    (e)
      The
      Debtor has good and marketable title to all of the Collateral pledged by it
      hereunder, free and clear of any liens, security interests, encumbrances or
      interests or claims of any other person or entity, except for the security
      interests of the third parties as disclosed on Schedule II attached hereto
      (collectively, the “Permitted Encumbrances”), which Permitted Encumbrances shall
      be subject and subordinate to the security interests of the Secured Party
      hereunder, and there are no sums owed with respect to the Collateral other
      than
      as disclosed on the Debtor's financial statements most recently delivered to
      the
      Secured Party;

     

    
      
        
        

      

      
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    (f)
      Upon
      the filing of UCC-1 financing statements being delivered at or prior to the
      execution hereof, the Secured Party will have a valid, perfected, first priority
      security interest in all of the Collateral which may be perfected by filing
      of
      financing statements (subject only to the Permitted Encumbrances);

    

    (g)
      Schedule III attached hereto sets forth the description and location of all
      Collateral of a value greater than $100,000 not located at the Debtor's
      principal place of business or at the locations listed on Schedule I,
      and

    

    (h)
      Except as set forth on Schedule II, no effective financing statements or other
      similar instrument in effect covering all or any part of the Collateral is
      on
      file in any recording office, except as may have been filed in favor of Secured
      Party relating to this Agreement or prior agreements with the Secured
      Party.

    

    4. Affirmative
      Covenants of the Debtor.

    

    (a)
      The
      Debtor shall promptly notify and provide the Secured Party with a complete
      description of the opening of any new places of business containing Collateral
      of a value of greater than $100,000.00, or, any change in its legal name or
      place of incorporation, or any other act which would affect the financing
      statements filed by the Secured Party;

    

    (b)
      Upon
      the request of Secured Party, the Debtor shall take all steps that are
      reasonably necessary or prudent to protect the security interests of the Secured
      Party in the Collateral;

    

    (c)
      The
      Debtor shall defend the Collateral against the claims and demands of all persons
      which would have a Material Adverse Effect (as herein after
      defined);

    

    (d)
      The
      Debtor shall comply, in all material respects, with all governmental regulations
      applicable to the Collateral or any part thereof or to the operation of the
      Debtor's business except where failure to comply would not cause a Material
      Adverse Effect; provided, however, that the Debtor may contest any governmental
      regulation in any reasonable manner which shall not in the reasonable opinion
      of
      the Secured Party materially and adversely affect the Secured Party's rights
      or
      the first priority of its security interest in the Collateral (subject to
      Permitted Encumbrances);

    

    (e)
      The
      Debtor shall pay promptly when due, all taxes, assessments and governmental
      charges or levies imposed upon the Collateral or in respect of its income or
      profits therefrom, except that no such amounts need be paid if (i) the validity
      thereof is being contested in good faith by appropriate proceedings, and (ii)
      such amounts are adequately reserved against in accordance with the generally
      accepted accounting principles;

     

    
      
        
        

      

      
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    (f)
      The
      Debtor shall cause the Equipment to be maintained and preserved in reasonably
      good repair and working order, normal wear and tear excepted, and shall make
      all
      repairs, replacements, additions, and other improvements reasonably necessary
      to
      maintain the Equipment in such good condition, subject to
      obsolescence;

    

    (g)
      The
      Debtor shall maintain Inventory reasonably sufficient to meet the needs of
      its
      business;

    

    (h)
      Upon
      request of the Secured Party, the Debtor shall, with respect to any Collateral
      required to be titled, deliver all titles thereto to the Secured Party to be
      held by the Secured Party and Debtor shall make, execute, and deliver any and
      all applications, and take such other action to assure that the Secured Party
      is
      listed of record as the first priority and sole lienholder on all title
      certificates;.

    

    (i)
      Debtor shall keep materially accurate and complete records listing and
      describing the Collateral, and when requested by Secured Party, Debtor shall
      give Secured Party information regarding the Collateral and setting forth the
      total value of the Inventory, the total value of the Equipment, the amount
      of
      the Receivables designating how many days the Receivables are from the date
      of
      invoice, the face value of any instruments, and any other information Secured
      Party may reasonably request. Secured Party shall have the right, at any time
      (but at reasonable intervals) during normal business hours and upon prior
      notice, to inspect the Collateral and to audit and make copies of any records
      or
      other writings which relate to the Collateral or the general financial condition
      of Debtor; 

    

    (j)
      The
      Debtor shall advise the Secured Party promptly, in reasonable detail, (i) of
      any
      lien, security interest, encumbrance, or claim made or asserted against any
      of
      the Collateral in an amount in excess of $100,000.00, except for Permitted
      Encumbrances, (ii) of any material loss or depreciation in the value of the
      Collateral taken as a whole, and (iii) of the occurrence of any other material
      adverse effect on the aggregate value, enforceability or collectibility of
      the
      Collateral;

     

    (k)
      The
      Debtor shall upon the request of the Secured Party give, execute, deliver and
      file or record in the proper governmental offices, any instrument, paper or
      document, including, but not limited to, one or more financing statements under
      the Uniform Commercial Code, reasonably satisfactory to the Secured Party,
      or
      take any action which the Secured Party reasonably may request in order to
      create, preserve, perfect, extend, continue, modify, terminate or otherwise
      effect any security interest granted pursuant hereto, or to enable the Secured
      Party to exercise or enforce any of its rights hereunder; and

     

    
      
        
        

      

      
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    (l)
      The
      Debtor shall keep, and stamp or otherwise mark, any of its documents,
      instruments and chattel paper and its books and records relating to any of
      the
      Collateral in such manner as the Secured Party may reasonably
      require.

    

    For
      purposes of this Agreement, “Material Adverse Effect” shall mean a material (as
      defined in the Loan Agreement) adverse effect on (a) the business, assets,
      operations or financial or other condition of Debtor, (b) Debtor’s ability to
      pay any of the Loans or any of the other Obligations in accordance with the
      terms of the Loan Agreement, (c) the Collateral, taken as a whole, or the
      security interests of the Secured Party in the Collateral, taken as a whole,
      or
      the priority of such security interests, or (d) Secured Party’s rights and
      remedies under this Agreement and the other Loan Documents.

    

    5.
      Negative
      Covenants of the Debtor.
      Except
      as otherwise provided in the Loan Agreement or in this Agreement, without the
      prior written consent of the Secured Party, the Debtor shall not:

    

    (a)
      Transfer, sell or assign any of the Collateral other than in the ordinary course
      of business or as otherwise permitted in the Loan Agreement;

    

    (b)
      Allow
      or permit any other security interest or lien to attach to any of the Collateral
      other than the Permitted Encumbrances;

    

    (c)
      File,
      authorize, or permit to be filed in any jurisdiction any financing statement
      relating to any of the Collateral unless the Secured Party is named as sole
      secured party or to the extent relating to the Permitted
      Encumbrances;

    

    (d)
      Permit any of the Collateral to be levied upon under any legal
      process;

    

    (e)
      Permit anything to be done that materially impairs the value of any of the
      Collateral taken as a whole; or

    

    (f)
      Use
      the Collateral in material violation of any law or in any manner inconsistent
      with any policy of insurance thereon, except where such use would not materially
      impair the value of the Collateral taken as whole.

    

    6.
      Fixtures.
      It is
      the intention of the parties hereto that none of the Collateral shall become
      fixtures. Without limiting the generality of the foregoing, the Debtor will,
      if
      requested by the Secured Party, use reasonable efforts to obtain waivers of
      lien, in form satisfactory to the Secured Party, from each mortgagee or lessor
      of real property (other than the Secured Party) on which any material amount
      of
      the Collateral is or is to be located.

     

    
      
        
        

      

      
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    7.
      Insurance.
      Debtor
      shall, at its own expense, maintain insurance covering the Collateral against
      such risks, with such insurers, in such form, and in such amounts as shall
      from
      time to time be reasonably required by Secured Party, but in any event, in
      such
      amounts and with such coverage as is customary in Debtor's type of business.
      All
      casualty insurance policies shall be payable in the event of loss to Secured
      Party to the extent of its interest. All insurance policies shall provide for
      the insurer to endeavor to give Secured Party thirty (30) days' written notice
      to Secured Party of cancellation and for notice to Secured Party of any claims
      paid thereunder. Copies of all insurance policies shall be furnished to Secured
      Party upon its request. Secured Party is hereby appointed as attorney
      irrevocable to take any or all of the following actions: to collect return
      premiums, dividends and other amounts due on any casualty insurance policy
      and
      the proceeds of such insurance, to settle any claims with the insurers in the
      event of loss or damage to Collateral, to endorse settlement drafts and to
      cancel, assign, or surrender any insurance policies. If any return premiums,
      dividends, other amounts or proceeds are paid to Secured Party under such
      policies, Secured Party may, at Secured Party's option, take either or both
      of
      the following actions: (i) apply such return premiums, dividends, other amounts
      and proceeds in whole or in part to the payment or satisfaction of any of the
      Secured Obligations in whatever order Secured Party determines; or (ii) pay
      over
      such return premiums, dividends, other amounts and proceeds in whole or in
      part
      to Debtor for the purpose of repairing or replacing the Collateral destroyed
      or
      damaged, any return premiums, dividends, other amounts and proceeds so paid
      over
      by Secured Party to be secured by this Agreement. 

    

    8.
      Receivables.
      Debtor
      agrees that Secured Party may communicate with account debtors in order to
      verify the existence, amount, and terms of any Receivables. Secured Party may
      notify account debtors of the security interests established herein and,
      following a Default or an Event of Default, require that payments on Receivables
      be made directly to Secured Party, and upon the request of Secured Party, Debtor
      shall notify account debtors and indicate on all billings that payments and
      returns are to be made directly to Secured Party. In furtherance of the
      foregoing, Debtor hereby appoints Secured Party attorney irrevocable with full
      power, following a Default or an Event of Default, to collect, compromise,
      endorse, sell, or otherwise deal with the Receivables or proceeds thereof and,
      subject to the rights of any third parties, to perform the terms of any contract
      in order to create Receivables in Secured Party's name or in the name of Debtor.
      This Agreement may be, but need not be, supplemented by separate assignments
      of
      Receivables and contract rights and, if such assignments are given, the rights
      and security interests given thereby shall be in addition to and not in
      limitation of the rights and security interests granted by this
      Agreement.

    

    9.
      Events
      of Default.
      The
      following events shall be deemed “Events of Default” hereunder:

     

    
      
        
        

      

      
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    (a)
      An
      Event of Default under the Loan Agreement or any of the Loan
      Documents;

    

    (b)
      Debtor fails to observe or perform any covenant, warranty, or agreement required
      to be observed or performed by it under this Agreement and such failure is
      not
      cured in accordance with the cure provisions set forth in the Loan
      Agreement;

    

    (c)
      Debtor shall be in default under any obligation undertaken by Debtor which
      default has a Material Adverse Effect on the ability of the Debtor to make
      payments of its Secured Obligations or on the adequacy of the Collateral taken
      as a whole as security for the Secured Obligations; or

    

    (d)
      Uninsured loss, theft, damage, or destruction of any substantial portion of
      any
      of the Collateral which has a Material Adverse Effect on the ability of the
      Debtor to make payments of its Secured Obligations or on the adequacy of the
      Collateral taken as a whole as security for the Secured
      Obligations.

    

    10.
      Rights
      and Remedies of Secured Party on Default.
      Upon
      and during the continuance of the occurrence of any Event of Default, Secured
      Party shall have, by way of example and not of limitation of any other rights
      available under applicable law, the following rights and remedies:

    

    (a)
      Secured Party may declare the Secured Obligations, or any of them, to be
      immediately due and payable without presentment, demand, protest or notice
      of
      any kind, all of which are hereby expressly waived;

    

    (b)
      In
      addition to all other rights and remedies contained in this Agreement, the
      Loan
      Agreement, and in the Loan Documents, Secured Party may exercise the rights
      and
      remedies accorded Secured Party by the Uniform Commercial Code or by any other
      applicable law, all of which rights and remedies shall be cumulative and
      non-exclusive to the extent permitted by law;

    

    (c)
      Secured Party shall have the right to enter and/or remain upon the Premises
      of
      Debtor, or any other place or places where any of the Collateral is located
      and
      kept, without any obligation to pay rent to Debtor or others, and remove
      Collateral therefrom to the premises of the Secured Party or any agent of
      Secured Party for such time as Secured Party may desire in order to maintain,
      collect, sell and/or prepare the Collateral for sale, liquidation or
      collection;

    

    (d)
      Secured Party may require the Debtor at Debtor's cost to assemble the Collateral
      and make it available to Secured Party at a place reasonably designated by
      Secured Party;

     

    
      
        
        

      

      
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    (e)
      Secured Party may take possession of and use and operate the Collateral in
      the
      manner and for the purposes as set forth in Section 11 hereinbelow;

    

    (f)
      Secured Party may sell, lease, or otherwise dispose of the Collateral as set
      forth in Section 12 hereinbelow; 

    

    (g)
      Secured Party shall have the right to set-off, without notice to the Debtor,
      any
      and all deposits or other sums at any time or times credited or due from Secured
      Party to Debtor, whether in a special account (other than those established
      for,
      or for the benefit of, third parties) or other account or represented by a
      certificate of deposit (whether or not matured); which deposit and other sums
      shall at all times constitute additional security for the Secured
      Obligations;

    

    (h)
      Secured Party may perform any warranty, covenant or agreement which Debtor
      has
      failed to perform under this Agreement; and

    

    (i)
      Secured Party may take any other action which Secured Party deems reasonably
      necessary or desirable to protect the Collateral or the security interests
      granted herein. 

    

    11.
      Rights
      of Secured Party to Use and Operate Collateral.
      Upon
      the occurrence and during the continuance of any Event of Default, the Secured
      Party shall have the right and power to take possession of all or any part
      of
      the Collateral, and to exclude the Debtor and all persons claiming under the
      Debtor wholly or partly therefrom, and thereafter to hold, store, and/or use,
      operate, manage and control the same. Upon any such taking of possession, the
      Secured Party may, from time to time, at the expense of the Debtor, make all
      such repairs, replacements, alterations, additions and improvements to and
      of
      the Collateral as the Secured Party may reasonably deem proper. In any such
      case, subject as aforesaid, the Secured Party shall have the right to manage
      and
      control the Collateral and to carry on the business and to exercise all rights
      and powers of the Debtor in respect thereto as the Secured Party shall deem
      best, including the right to enter into any and all such agreements with respect
      to the leasing and/or operation of the Collateral or any part thereof as the
      Secured Party may see fit; and the Secured Party shall be entitled to collect
      and receive all rents, issues, profits, fees, revenues and other income of
      the
      same and every part thereof. Such rents, issues, profits, fees, revenues and
      other income shall be applied to pay the reasonable expenses of holding and
      operating the Collateral and of conducting the business thereof, and of all
      maintenance, repairs, replacements, alterations, additions and improvements,
      and
      to make all payments which the Secured Party may be required or may elect to
      make, if any, for taxes, assessments, insurance and other charges upon the
      Collateral or any part thereof, and all other payments which the Secured Party
      may be required or authorized to make under any provision of this Agreement
      (including reasonable legal costs and attorneys' fees). The remainder of such
      rents, issues, profits, fees, revenues and other income shall be applied to
      the
      payment of the Secured Obligations in such order of priority as the Secured
      Party may determine in its sole discretion and any surplus shall be returned
      to
      the Debtor. Without limiting the generality of the foregoing, upon the
      occurrence and during the continuance of an Event of Default the Secured Party
      shall have the right to apply for and have a receiver appointed by a court
      of
      competent jurisdiction in any action taken by the Secured Party to enforce
      its
      rights and remedies hereunder in order to manage, protect and preserve the
      Collateral and continue the operation of the business of the Debtor and to
      collect all revenues and profits thereof and apply the same to the payment
      of
      all expenses and other charges of such receivership including the compensation
      of the receiver and to the payment of the Secured Obligations as aforesaid
      until
      a sale or other disposition of such Collateral shall be finally made and
      consummated.

     

    
      
        
        

      

      
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          10
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    12.
      Rights
      of Secured Party to Sell Collateral.
      Upon
      (10) days prior written notice by registered or certified mail by Secured Party
      to Debtor at the address of the Debtor set forth above (or at such other address
      or addresses as the Debtor shall specify in writing by like notice to the
      Secured Party) of the time and place of any intended disposition of Collateral,
      then Secured Party shall have the right and power to sell, assign, lease, or
      otherwise dispose of the Collateral from any business premises of the Debtor,
      either at public auction or private sale, by liquidation sale or other
      disposition, or as if the sale was being made in the ordinary course of Debtor's
      business, with or without notice to the public that the said sale or disposition
      is for the benefit of the Secured Party; provided, however, that if the
      Collateral is perishable or threatens to decline speedily in value or is of
      a
      type customarily sold on a recognized market, then Secured Party shall have
      the
      right and power to dispose of the Collateral without prior notice to Debtor
      and
      Debtor expressly waives any rights to prior notice under such circumstances.
      The
      notices described above shall be deemed to meet any requirement hereunder or
      under any applicable law (including the Uniform Commercial Code) that reasonable
      notification be given of the time and place of such sale or other disposition.
      After deducting all reasonable costs and expenses of collection, storage,
      custody, sale or other disposition and delivery (including reasonable legal
      costs and attorneys' fees) and all other reasonable charges against the
      Collateral, the residue of the proceeds of any such sale or disposition shall
      be
      applied to the payment of the Secured Obligations in such order of priority
      as
      the Secured Party may determine in its sole discretion and any surplus shall
      be
      returned to the Debtor. In the event the proceeds of any sale, lease or other
      disposition of the Collateral hereunder are insufficient to pay all of the
      Secured Obligations in full, the Debtor will be liable for the deficiency,
      together with interest thereon at the maximum rate provided in the Loan
      Agreement and the cost and expenses of collection of such deficiency, including,
      without limitation, reasonable fees of attorneys, experts, and agents, expenses
      and disbursements. 

    

    13.
      Attorney-in-Fact.
      The
      Debtor hereby irrevocably authorizes the Secured Party at any time and from
      time
      to time to sign (if required) and file in any appropriate filing office,
      wherever located, any financing statement that (a) describes the Collateral
      in a manner consistent with Section 1 and (b) contains any other
      information required by the Uniform Commercial Code of the applicable
      jurisdiction for the sufficiency or filing office acceptance of any financing
      statement, including (i) whether the Debtor is an organization, the type of
      organization and any organization identification number issued to the Debtor
      and, (ii) in the case of a financing statement filed as a fixture filing, a
      sufficient description of real property to which the Collateral relates. The
      Secured Party is hereby appointed the attorney-in-fact, with full power of
      substitution, of the Debtor for the purpose of carrying out the provisions
      of
      this Agreement and taking any action and executing any instruments (including,
      without limitation, financing or continuation statements, conveyances,
      assignments, and transfers) which the Secured Party may reasonably deem
      necessary or advisable to accomplish the purposes hereof, which appointment
      as
      attorney-in-fact is coupled with an interest and is irrevocable. The Debtor
      shall indemnify and hold harmless the Secured Party from and against any
      liability or damage which it may incur in the exercise and performance, in
      good
      faith, of the Secured Party's powers and duties as such attorney-in-fact, except
      for any liability or damage resulting from Secured Party’ gross negligence or
      willful misconduct.

     

    
      
        
        

      

      
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          11
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    14.
      Waiver,
      etc.
      The
      Debtor hereby waives presentment, demand, notice, protest and, except as is
      otherwise provided herein, all other demands and notices in connection with
      this
      Agreement or the enforcement of the Secured Party's rights hereunder or in
      connection with any Secured Obligations or any Collateral. The Debtor further
      consents to and waives notice of the granting of renewals, extensions of time
      for payment or other indulgences to the Debtor, or subject to applicable law
      to
      any account debtor in respect of any Receivable, or to substitution, release
      or
      surrender of any Collateral, addition or release of persons primarily or
      secondarily liable on any Secured Obligation or on any Receivable or other
      Collateral, or the acceptance of partial payments on any Secured Obligation
      or
      on any account receivable or other Collateral and/or the settlement or
      compromise thereof. No delay or omission on the part of the Secured Party in
      exercising any right hereunder shall operate as a waiver of such right or of
      any
      other right hereunder. Any waiver of any such right on any one occasion shall
      not be construed as a bar to or waiver of any such right on any such future
      occasion. Notwithstanding any other provision of this Agreement or any of the
      other Loan Documents to the contrary, an Event of Default under this Agreement
      or any of the other Loan Documents, shall be deemed continuing until such time
      as such Event of Default is waived by the Secured Party in writing.

    

      15.
        Termination;
        Assignments, etc.
        This
        Agreement and the security interest in the Collateral created hereby shall
        terminate when all of the Secured Obligations have been paid, performed,
        and
        finally discharged in full, and all commitment of the Secured Party with
        respect
        thereto have terminated. If
        any of
        the Collateral shall be sold, transferred or otherwise disposed of by the
        Debtor
        in a transaction permitted by the Loan Agreement, or if the Debtor requests
        that
        the Secured Party release, or subordinate its security interest in, any
        Collateral to the extent (but only to the extent) necessary to permit the
        consummation of any other transaction not prohibited by any Loan Document,
        then
        the Secured Party, at the request and sole expense of the Debtor, shall execute
        and deliver to the Debtor all releases or other documents reasonably necessary
        or desirable for the release of the security interests created hereby on
        such
        Collateral.
        In
        the
        event of a sale or assignment by the Secured Party of all or any of the Secured
        Obligations held by it, such Secured Party may assign or transfer its rights
        and
        interests under this Agreement in whole or in part to the purchaser or
        purchasers of such Secured Obligations, whereupon such purchaser or purchasers
        shall become vested with all of the powers, rights, and obligations of such
        Secured Party hereunder, and such Secured Party shall thereafter be forever
        released and fully discharged from any liability or responsibility hereunder,
        with respect to the rights and interests so assigned.

       

      
        
          
          

        

        
          -
            12
            -

          
            

          

        

        
          
          

        

      

    

    16.
      Notices.
      All
      notices, requests, demands and other communications provided for hereunder
      shall
      be in writing (including telegraphic communication) and shall be either mailed
      by certified mail, return receipt requested, or delivered by overnight courier
      service, to the applicable party at the addresses first set forth above, or,
      as
      to each party, at such other address as shall be designated by such parties
      in a
      written notice to the other party complying as to delivery with the terms of
      this Section. All such notices, requests, demands and other communication shall
      be effective on the date of first attempted delivery.

    

    17.
       Miscellaneous.

    

    (a)
      The
      powers conferred on the Secured Party hereunder are solely to protect its
      interest in the Collateral and shall not impose any duty upon it to exercise
      any
      such powers. Except for the safe custody of any Collateral in its possession
      and
      the accounting for monies actually received by it hereunder, the Secured Party
      shall not have any duty as to any Collateral or as to the taking of any
      necessary steps to preserve any right of it or of the Debtor against other
      parties pertaining to any Collateral, except to the extent specifically required
      under applicable law;

    

    (b)
      No
      provision hereof shall be amended except by a writing signed by the Secured
      Party and the Debtor;

    

    (c)
      Any
      provision of this Agreement which is prohibited or unenforceable shall be
      ineffective to the extent of such prohibition or unenforceability without
      invalidating the remaining provisions hereof;

    

    (d)
      This
      Agreement shall be binding upon and shall inure to the benefit of the successors
      and assigns of the Secured Party and the Debtor;

    

    (e)
      No
      delay, failure to enforce, or single or partial exercise on the part of the
      Secured Party in connection with any of its rights hereunder shall constitute
      an
      estoppel or waiver thereof, or preclude other or further exercises or
      enforcement thereof and no waiver of any default hereunder shall be a waiver
      of
      any subsequent default; and

    

    (f)
      This
      Agreement shall be governed as to its validity, interpretation and effect in
      accordance with the laws of the State of New Hampshire; provided, however,
      that
      to the extent otherwise provided under the Uniform Commercial Code, the laws
      of
      the jurisdiction where Debtor is located under the Uniform Commercial Code
      shall
      govern perfection, the effect of perfection and non-perfection, and the priority
      of security interests in the Collateral.

     

    
      
        
        

      

      
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          13
          -

        
          

        

      

      
        
        

      

    

    

    SECURED
      PARTY AND DEBTOR MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
      THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING
      OUT
      OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS
      CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT,
      COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
      PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
      STATEMENTS OR ACTIONS OF SECURED PARTY RELATING TO THE ADMINISTRATION OF THE
      LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL
      SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL
      CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, EACH OF SECURED
      PARTY AND DEBTOR HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN
      ANY
      LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
      DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. DEBTOR CERTIFIES THAT
      NO
      REPRESENTATIVE, AGENT OR ATTORNEY OF SECURED PARTY HAS REPRESENTED, EXPRESSLY
      OR
      OTHERWISE, THAT SECURED PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
      ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT
      FOR
      SECURED PARTY TO ACCEPT THIS AGREEMENT AND MAKE THE LOANS.

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
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          14
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    IN
      WITNESS WHEREOF, the undersigned have set their hands and seals and enter into
      this Agreement all as of the day and year first above written.

     

    
      	 	DEBTOR
	 	 
	 	BUILDING
              PARTNERS, INC.
	 	 
	 	 
	_______________________ 	By:
              ______________________________
	Witness   
	      Signature/Title Duly Authorized
	 	 
	 	 
	 	
              SECURED
                PARTY

            
	 	 
	 	TD
              BANKNORTH, N.A.
	 	 
	 	 
	_______________________ 	By:_______________________________
	Witness	     John
              Mercier, Senior Vice President
	 	
                

            

    

    

     

    
      
        
        

      

      
        -
          15
          -Exhibit
      10.15

    

    PROMISSORY
      NOTE

    

    Los
      Angeles, CA

    $100,000 March
      13,
      2007

    

    FOR
      VALUE
      RECEIVED, the undersigned UKARMA CORPORATION ("Maker") agrees to pay to BILL
      GLASER ("Holder") the principal sum of One Hundred Thousand Dollars ($100,000),
      together with accrued interest thereon at the rate of seven percent (7%) per
      year, on the six (6) month anniversary of the date hereof.

    

    All
      payment obligations evidenced hereby are payable only in lawful money of the
      United States. Holder hereby waives presentment, demand for payment, notice
      of
      dishonor and any and all other notices or demands in connection with the
      delivery, acceptance, performance, default or enforcement of this Note. If
      this
      Note or any payment provided for hereunder is not paid when due, whether at
      maturity or by acceleration, the Maker promises to pay all costs and expenses,
      including without limitation, reasonable attorneys' fees, incurred by Holder
      in
      connection with the collection and enforcement of this Note, whether or not
      suit
      is filed hereon.

    

    Maker
      agrees that its liabilities hereunder are absolute and unconditional without
      regard to the liability of any party. Maker waives the right to interpose any
      setoff, counterclaim or defense of any nature or description whatsoever. Maker
      agrees that no delay on the part of Holder in exercising any power or right
      hereunder shall operate as a waiver thereof; nor shall any single or partial
      exercise of any power or right hereunder preclude other or further exercise
      thereof or the exercise of any other power or right.

    

    If
      at any
      time this transaction would be usurious under applicable law, then regardless
      of
      any provision contained in the Agreement, in this Note or in any other agreement
      made in connection with this transaction, it is agreed that the total of all
      consideration which constitutes interest under applicable law that is contracted
      for, charged or received upon the Agreement, this Note or any such other
      agreement shall under no circumstances exceed the maximum rate of interest
      authorized by applicable law and any excess shall be credited to
      Maker.

    

    If
      the
      Maker shall make an assignment for the benefit of creditors, or any petition
      or
      proceeding for any relief under any bankruptcy, reorganization, arrangement,
      insolvency, readjustment of debt, receivership, liquidation of dissolution
      law
      or statute now or hereinafter in effect (whether at law or in equity) is filed
      or commenced by or against the Maker or any property of the Maker, or if any
      trustee or receiver is appointed for the Maker or any such property, then and
      in
      any such event, in addition to all rights and remedies of Holder, all such
      rights and remedies being cumulative, not exclusive and enforceable
      alternatively, successively and concurrently, Holder may, at its option, declare
      all amounts owing to be due and payable, whereupon the maturity of the then
      unpaid balance thereof shall be accelerated and the same, together with all
      interest accrued thereon, shall forthwith become due and payable.

    

    The
      principal of the Note may be prepaid in whole or in part, provided that all
      accrued interest (if any) on the amount to be prepaid is also paid at such
      time.
      This Note may not be changed, modified or terminated orally, but only by an
      agreement in writing signed by Maker and Holder. This Note shall be governed
      by
      and construed in accordance with the laws of the State of
      California.

    

    UKARMA
      CORPORATION

     

    By: Fred
      Tannous, Director

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