Document:

Exhibit 10.2

 

ASSET PURCHASE AGREEMENT

 

 

between

 

 

JIFM HOLDINGS, LLC

 

 

and

 

 

SELECT-TV USA HOLDINGS, INC.

 

 

dated as of

 

February 19, 2015

 

 

    	 

    	 

    

 

ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement (this "Agreement"),
dated as of February 19, 2015 (the ''Effective Date"), is entered into between JIFM HOLDINGS, LLC, a New York limited liability
company ("Seller") and Select-TV USA Holdings, Inc., a Nevada corporation ("Buyer").

 

RECITALS

 

WHEREAS, promptly following the Effective
Date of this Agreement, Seller will purchase an interest bearing promissory note (the "Note") together with a first
lien and security interest (the "Security Interest") securing the Note pursuant to Article 9 of the New York Uniform
Commercial Code ("NYUCC") in the principal amount of TWO MILLION FIVE HUNDRED THOUSAND500,000.00) US DOLLARS issued
by [***] a New York corporation, as maker and borrower ([***] or "Borrower");

 

WHEREAS, the Security Interest secures
the Note in the following assets of Borrower (each of the following capitalized terms having the same meaning, respectively, as
it has in Article 9 of the NYUCC): (1) all Accounts, (2) all Chattel Paper (whether tangible or electronic), (3) all Deposit Accounts,
(4) all Documents, (5) all General Intangibles (including Payment Intangibles and Software), (6) all Goods (including Inventory,
Equipment, Fixtures and Accessions), (7) all Instruments (including promissory notes), (8) all Investment Property, (9) all Letter-of-Credit
Rights, (10) all Letters of Credit, (11) all Money, (12) all Supporting Obligations, (13) all other assets of Borrower, and (14)
all proceeds and products of the foregoing (such assets described in the foregoing clauses 1 through 14, inclusive, also being
sometimes referred to herein, jointly and severally, as the Collateral"); and,

 

WHEREAS, no part of the principal of such
Note has been paid, and the Note is in default; and,

 

WHEREAS, Borrower was engaged in the business
of video on demand for the hospitality industry (the "Business"); and

 

WHEREAS, the Borrower has indicated its
desire to consent in an authenticated record to an acceptance by Seller, as secured party, of the Collateral in full satisfaction
of the Note as permitted pursuant to NYUCC §9-620. "Acceptance of Collateral in Full or Partial Satisfaction of Obligation;
Compulsory Disposition of Collateral"; and,

 

_______________

[***] Confidential treatment has been requested
with respect to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

 

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WHEREAS, the Seller, in any event, as secured
party pursuant to its purchase of the Note and the Security Interest, shall have the powers and rights of a secured party pursuant
to Article 9 of the NYUCC to foreclose upon the Collateral and to the dispose of the Collateral in all manner permitted under the
NYUCC; and,

 

WHEREAS, the Buyer desires to cause and
enable Seller to acquire such Collateral, and to purchase the Collateral from Seller, in accordance with the terms and conditions
set forth in this Agreement; and,

 

WHEREAS, the Buyer desires to cause and
enable Seller, as the secured party pursuant to the purchase of the Note and the Security Interest, to act in such manner as to
foreclose and acquire the assets comprising the Collateral; and,

 

WHEREAS, Seller wishes to sell and assign
to Buyer, and Buyer wishes to purchase and assume from Seller substantially all of the Collateral, subject to the terms and conditions
set forth herein;

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

PURCHASE AND SALE

 

Section 1.01 Purchase and Sale of Assets.
Subject to the terms and conditions set forth herein, Seller shall sell, assign, transfer, convey and deliver to Buyer, and
Buyer shall purchase from Seller, all of Seller's right, title and interest in the assets formerly comprising the Collateral as
set forth on Section 1.01 of the disclosure schedules ("Disclosure Schedules") attached hereto as and
to the extent available to Seller (collectively, the "Purchased Assets"), free and clear of any mortgage, pledge,
lien, charge, security interest, claim or other encumbrance ("Encumbrance"), other than a Permitted Encumbrance (as
set forth on Disclosure Schedules, section 1.01), and except as otherwise may be expressly provided herein including:

 

(a) all Accounts of [***]

(b) all Chattel Paper (whether tangible
or electronic) [***]

(c) all Deposit Accounts of [***]

(d) all Documents of [***]

(e) all General Intangibles (including
Payment Intangibles and Software) of [***]

(f) all Goods (including Inventory, Equipment,
Fixtures and Accessions) of [***]

(g) all Instruments (including promissory
notes) of [***]

 

 

_______________

[***] Confidential treatment has been requested
with respect to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

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(h) all Investment Property of [***]

(i) all Letter-of-Credit Rights of [***]

(j) all Letters of Credit of [***]

(k) all Money of [***]

(l) all Supporting Obligations of [***]

(m) all other assets of [***]

(n) all proceeds
and products of the foregoing.

 

Section 1.02 Excluded Assets. Notwithstanding
the foregoing, the Purchased Assets shall not include the following assets and properties of Seller (the "Excluded Assets"):

 

(a) all cash and cash equivalents, bank accounts and
securities of Seller;

 

(b) all contracts and contract rights of Seller that
were not a part of the Collateral and those which were a part of the Collateral, if any, unless and except to the extent that
Buyer expressly requests the same in a written request and Seller consents thereto as provided in Section 3.06 herein below;

 

(c) all Intellectual Property other than Intellectual
Property (the "Intellectual Property Assets") that formerly formed a part of the Collateral;

 

(d) the corporate seals, organizational documents,
minute books, stock books, Tax Returns, books of account or other records having to do with the corporate organization of Seller
and/or [***] all employee-related or employee benefit related files or records, and any other books and records which Seller is
prohibited from disclosing or transferring to Buyer under applicable Law and is required by applicable Law to retain;

 

(e) all insurance policies of Seller and/or [***]
and all rights to applicable claims and proceeds thereunder;

 

(f) all employee Benefit Plans and trusts or other
assets attributable thereto;

 

(g) all Tax assets (including duty and Tax refunds
and prepayments) of Seller and/or [***] and/or any of either's Affiliates;

 

(h) all rights to any action, suit or claim of any
nature available to or being pursued by Seller and/or [***] whether arising by way of counterclaim or otherwise;

 

(i) all assets,
properties and rights used by Seller and/or [***] their respective businesses other than the Business;

 

 

_______________

[***] Confidential treatment has been requested with respect
to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

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(j) the assets, properties and rights specifically set forth
on Section 1.02(j) of the Disclosure Schedules;

 

(k) the rights which accrue or will accrue to Seller under the
Transaction Documents (as defined below); and,

 

(l) any asset that was not a part of the Collateral.

 

Section 1.03 No Liabilities/Assumption
of Liabilities. Other than the Assumed Liabilities (defined below), Buyer shall not assume any liabilities or obligations
of Seller of any kind, whether known or unknown, contingent, matured or otherwise, whether currently existing or hereinafter created.
Subject to the terms and conditions set forth herein, Buyer shall assume and agree to pay, perform and discharge the liabilities
and obligations set forth on Section 1.03 of the Disclosure Schedules (collectively, the "Assumed Liabilities")
including, without limitation, the following:

 

(a) all liabilities and obligations
for (i) sales, use, transfer (including realty transfer), documentary stamp and other Taxes and all recording, filing and other
fees and costs with respect to the transactions contemplated hereby, including without limitation Taxes relating to the Business,
the Purchased Assets or the Assumed Liabilities for any taxable period ending after the Closing Date and (ii) Taxes for which
Buyer is liable pursuant to Section 5.03;

 

(b) all other liabilities and obligations arising out of or relating to Buyer's
ownership or operation of the Business and the Purchased Assets on or after the Closing; and,

 

Section 1.04 Purchase Price. The
aggregate purchase price for the Purchased Assets shall be five hundred fifty thousand ($550,000.00) US dollars (the "Purchase
Price"), plus (i) the assumption of the Assumed Liabilities. The Purchase Price shall be paid as follows: (a) an initial
tranche ("Initial Tranche") is paid upon the execution of this Agreement by the parties, in that the execution
hereof shall be deemed the issuance of written authority to M. Scott Vayer, Esq. to pay and release to Seller the two hundred
ninety-nine thousand nine hundred ninety ($299,990.00) U.S. dollars (the Initial Tranche) heretofore sent by Buyer via wire transfer
to the lOLA Trust Account (Chase #000000271205692) of M Scott Vayer, Esq., counsel to Seller; and, (b) an additional sum (the
"Second Tranche") in the amount of fifty thousand ($50,000) US dollars shall be paid by wire transfer of immediately
available funds to the IOLTA Trust Account (Chase #000000271205692) of M Scott Vayer, Esq., counsel to Seller (or to such other
lOLA Trust account as may be designated in writing by Seller) within two (2) Business Days from the execution of this Agreement
by the parties, which Second Tranche is hereby authorized for release to Seller immediately upon Closing, and (c) by the delivery
to Seller of Buyer's duly executed and acknowledged (before a notary public) two (2%) percent interest bearing secured promissory
note (with twelve (12%) percent "Default Interest" accruing upon any default) (in the form annexed hereto as Exhibit
K) in the amount of two hundred thousand ($200,000) US dollars payable to the order of Seller and due in full on May 15, 2015
(the "Remaining Purchase Price Note" or "RPP Note"), the original signed copy of which RPP Note
shall be delivered by overnight courier to M Scott Vayer, Esq., counsel to Seller, within two (2) Business Days from the execution
of this Agreement by the parties, to be held by such counsel in escrow until he receives from either party an original or facsimile/scan/photocopy
of the signed Buyer Closing Certificate (as defined below), whereupon he shall deliver the RPP Note to Seller. In any event, at
the Closing pursuant to Section 2.02, et seq., Buyer shall deliver to M Scott Vayer, Esq., as counsel to Seller, a true copy of
the RPP Note in the from of a facsimile/scan/photocopy thereof, and such Seller's counsel is authorized and directed to release
such copy of the RPP Note to Seller upon Seller's delivery of a Bill of Sale for the Purchased Assets to Buyer (or to [***] or
another mutually acceptable person, who shall be deemed Buyer's agent (aa) for this purpose, (bb) for the acceptance of the Purchased
Assets, and (cc) for the purpose of executing the Buyer Closing Certificate). Buyer's (or [***] acceptance of the Bill of Sale
shall be deemed the issuance of written authority to M. Scott Vayer, Esq. to release to Seller the signed original copy of the
RPP Note.

 

 

_______________

[***] Confidential treatment has been requested with respect
to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

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Section 1.05 Security Interest.
As collateral security for the payment of the Purchase Price of the Purchased Assets (including without limitation the RPP Note)
and performance in full of all the obligations of the Buyer under this Agreement, the Buyer hereby pledges and grants to the Seller,
a lien on and security interest in and to all of the right, title and interest of the Buyer in, to and under the Purchased Assets,
wherever located, and whether now existing or hereafter arising or acquired from time to time, and in all accessions thereto and
replacements or modifications thereof, as well as all proceeds (including insurance proceeds) of the foregoing. The security interest
granted under this provision constitutes a purchase money security interest under the Uniform Commercial Code. Buyer agrees that
on or prior to Closing it shall duly execute and deliver to Seller, a security agreement in favor of Seller as provided herein
in a customary form to be furnished by Seller and satisfactory to Seller in form and substance (the "Security Agreement").

 

Section 1.06 Allocation of
Purchase Price. Within 30 days after the Closing Date, Seller shall deliver a schedule allocating the Purchase Price
(including any Assumed Liabilities treated as consideration for the Purchased Assets for Tax purposes) (the "Allocation
Schedule"). The Allocation Schedule shall be prepared in accordance with Section 1060 of the Code. The Allocation
Schedule shall be deemed final unless Buyer notifies Seller in writing that Buyer objects to one or more items reflected in
the Allocation Schedule within 10 days after delivery of the Allocation Schedule to Buyer. In the event of any such
objection, Seller and Buyer shall negotiate in good faith to resolve such dispute; provided, however, that if Seller and
Buyer are unable to resolve any dispute with respect to the Allocation Schedule within 30 days after the delivery of the
Allocation Schedule to Buyer, such dispute shall be resolved by an impartial firm of independent certified public accountants
mutually appointed by Buyer and Seller. The fees and expenses of such accounting firm shall be borne equally by Seller and
Buyer. Buyer and Seller shall file all tax returns (including amended returns and claims for refund) and information reports
in a manner consistent with such allocation.

 

 

 

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Section 1.07 Non-assignable Assets.

 

(a) Notwithstanding anything to the contrary
in this Agreement, and subject to the provisions of this Section 1.07, to the extent that the sale, assignment, transfer,
conveyance or delivery, or attempted sale, assignment, transfer, conveyance or delivery, to Buyer of any Purchased Asset would
result in a violation of applicable law, or would require the consent, authorization, approval or waiver of a Person who is not
a party to this Agreement or an Affiliate of a party to this Agreement (including any Governmental Authority), and such consent,
authorization, approval or waiver shall not have been obtained prior to the Closing, this Agreement shall not constitute a sale,
assignment, transfer, conveyance or delivery, or an attempted sale, assignment, transfer, conveyance or delivery, thereof; provided,
however, that, subject to the satisfaction or waiver of the conditions contained in Article VI, the Closing shall occur
notwithstanding the foregoing without any adjustment to the Purchase Price on account thereof. Following the Closing, Seller and
Buyer shall use commercially reasonable efforts, and shall cooperate with each other, to obtain any such required consent, authorization,
approval or waiver, or any release, substitution or amendment required to transfer the same to Buyer; provided, however, that
neither Seller nor Buyer shall be required to pay any consideration therefor. Once such consent, authorization, approval waiver,
release, substitution or amendment is obtained, Seller shall sell, assign, transfer, convey and deliver to Buyer the relevant
Purchased Asset to which such consent, authorization, approval waiver, release, substitution or amendment relates for no additional
consideration. Applicable sales, transfer and other similar Taxes in connection with such sale, assignment, transfer, conveyance
or license shall be paid by Buyer in accordance with Section 5.03.

 

(b) To the extent that any Purchased
Asset and/or Assumed Liability cannot be transferred to Buyer following the Closing pursuant to this Section 1.07, on the
condition that Seller shall not be required to pay any cost or consideration therefor, Buyer and Seller shall use
commercially reasonable efforts to enter into such arrangements (such as subleasing, sublicensing or subcontracting) to
provide to the parties the economic and, to the extent permitted under applicable Law, operational equivalent of the transfer
of such Purchased Asset and/or Assumed Liability to Buyer as of the Closing and the performance by Buyer of its obligations
with respect thereto. Buyer shall, as agent or subcontractor for Seller pay, perform and discharge fully the liabilities and
obligations of Seller thereunder from and after the Closing Date. To the extent permitted under applicable Law, Seller shall,
at Buyer's expense, hold in trust for and pay to Buyer promptly upon receipt thereof, such Purchased Asset and all income,
proceeds and other monies received by Seller to the extent related to such Purchased Asset in connection with the
arrangements under this Section 1.07. Seller shall be permitted to set off against such amounts all direct costs
associated with the retention and maintenance of such Purchased Assets.

 

 

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ARTICLE II

CLOSING

 

Section 2.01 Closing. To the extent
that a physical closing is necessary and subject to the terms and conditions of this Agreement, the consummation of the transactions
contemplated by this Agreement (the "Closing") shall take place at the offices of M. Scott Vayer, Esq., 45 Rockefeller
Plaza, 201 Floor, Rockefeller Center, New York, NY 10111-3193 on February 23, 2015, at 12:00PM, or if all of the Buyer's conditions
to closing after all of the conditions to Closing set forth in Section 6.01 and 6.02 cannot be fulfilled by February 23,
2015, then, by written notice to Buyer, Seller may reschedule the Closing to a date within two (2) Business Days after all of
the conditions to Closing set forth in Section 6.01and 6.02 are either satisfied or waived (other than conditions which, by their
nature, are to be satisfied on the Closing Date, defined below), or to such other time, date or place as Seller and Buyer may
mutually agree upon in writing (subject to availability of any counsel holding the second tranche of the Purchase Price in an
IOLTA Trust Account). In the event Seller unilaterally reschedules the Closing to a date later than February 28, 2015, Seller
undertakes to provide Buyer with a lease for use and possession of the Purchased Assets until the Closing Date at a weekly rent
often ($10.00) US dollars. The date on which the Closing is to occur is herein referred to as the "Closing Date".

 

Section
2.02 Closing Deliverables.

 

(a) At the Closing, Seller shall
deliver to Buyer the following ("Seller's Deliverables"):

 

(i) a bill of sale in the form
of Exhibit A hereto (the "Bill of Sale") and duly executed by Seller, transferring the tangible personal property
included in the Purchased Assets to Buyer;

 

(ii) an assignment and assumption
agreement in the form of Exhibit B hereto (the "Assignment and Assumption Agreement'') and duly executed by Seller,
effecting the assignment to and assumption by Buyer of the Purchased Assets and the Assumed Liabilities;

 

(iii) assignment(s) (the "Intellectual
Property Assignments") duly executed by Seller, transferring all of Seller's right, title and interest, in and to, if
any, the trademark registrations and applications, patents and patent applications, copyright registrations and applications and
domain name registrations included in the Purchased Assets/Purchased IP (as defined herein) to Buyer;

 

 

 

 

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(iv) with respect to each parcel
of Owned Real Property, if any, a special warranty deed in the form of Exhibit C hereto (each, a "Deed") and
duly executed and notarized by Seller;

 

(v) with respect to each Lease,
if any, an Assignment and Assumption of Lease substantially in the form of Exhibit D (each, an "Assignment and Assumption
of Lease"), duly executed by Seller and, if necessary, Seller's signature shall be witnessed and/or notarized;

 

(vi) the Seller Closing Certificate
(hereinafter defined at Section 6.02(d));

 

(vii) the FIRPTA Certificate (pursuant
to Treasury Regulations Section 1.1445-2(b) that Seller is not a foreign person within the meaning of Section 1445 of the Internal
Revenue Code duly executed by Seller);

 

(viii) the certificates of the
Secretary or Assistant Secretary (or Managing Member or Manager, if an LLC) of Seller required by Section 6.02(e) and Section
6.02(f);

 

(ix) such other customary instruments
of transfer, assumption, filings or documents, in form and substance reasonably satisfactory to Buyer, as may be required to give
effect to this Agreement.

 

(b) At the Closing, Buyer shall
have already delivered (if and as required herein) or shall then deliver to Seller the following ("Buyer's Deliverables"):

 

(i) The Initial Tranche of the
Purchase Price;

 

(ii) The Second Tranche of the
Purchase Price;

 

(iii) The duly executed Remaining
Purchase Price Note;

 

(iv) the Assignment and Assumption
Agreement duly executed by Buyer;

 

(v) with respect to each Lease,
if any, an Assignment and Assumption of Lease duly executed by Buyer and, if necessary, Buyer's signature shall be witnessed and/or
notarized;

 

(vi) the Buyer Closing Certificate
(hereinafter defined at Section 6.03(d));

 

(vii) the certificates of the Secretary or Assistant Secretary (or Managing member
or Manager if an LLC) of Buyer required by Section 6.03(e) and Section 6.03(f).

 

Section 2.03 Failure of Buyer or Seller to Close.
In the event that after all of the Buyer's conditions to Closing set forth in Section 6.01 and 6.02 are either satisfied or
waived Buyer, the Buyer shall fail to deliver the Buyer's Deliverables to Seller at Closing, Buyer shall be in material
breach of this Agreement. In the event that after all of the Seller's conditions to Closing set forth in Section 6.01 and
6.03 are either satisfied or waived by Seller, the Seller shall fail to deliver the Seller's Deliverables to Buyer at
Closing, Seller shall be in material breach of this Agreement.

 

 

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ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF SELLER.

 

Seller represents and warrants to Buyer
that the statements contained in this Article III, including and subject to the Disclosure Schedules annexed hereto, are
true and correct as of the date hereof For purposes of this Article III, "Seller's knowledge," "knowledge
of Seller", "best knowledge of Seller" and any similar phrases shall mean the actual knowledge of any director
or officer of Seller.

 

Section 3.01 Organization and Authority
of Seller; Enforceability. Seller is a limited liability company duly organized, validly existing and in good standing under
the Laws of the state of New York and has all necessary power and authority to own, operate or lease the properties and assets
now owned, operated or leased by it and to carry on its Business as currently conducted. Seller has full power and authority to
enter into this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate
the transactions contemplated hereby. The execution, delivery and performance by Seller of this Agreement and the documents to
be delivered hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite
company action on the part of Seller. This Agreement and the documents to be delivered hereunder have been duly executed and delivered
by Seller, and (assuming due authorization, execution and delivery by Buyer) this Agreement and the documents to be delivered
hereunder constitute legal, valid and binding obligations of Seller, enforceable against Seller in accordance with their respective
terms.

 

Section 3.02 No Conflicts; Consents.
The execution, delivery and performance by Seller of this Agreement and the documents to be delivered hereunder, and the consummation
of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the certificate of organization, operating
agreement or by-laws of Seller; (b) violate any judgment, order, decree, statute, law, ordinance, rule or regulation applicable
to Seller or the Purchased Assets; or (c) result in the creation or imposition of any Encumbrance on the Purchased Assets. No
consent, approval, waiver or authorization is required to be obtained by Seller from any person or entity (including any governmental
authority) in connection with the execution, delivery and performance by Seller of this Agreement and the consummation of the
transactions contemplated hereby.

 

Section 3.03 Title to Purchased Assets.
Seller owns and has good title to the Purchased Assets, free and clear of Encumbrances.

 

 

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Section 3.04 Condition of Assets. The
Purchased Assets are sold as-is. To the knowledge of Seller, unless otherwise disclosed to Buyer in writing prior to Closing,
they are in working condition, subject to routine maintenance, updates or repairs.

 

Section 3.05 Intellectual Property.

 

(a) "Intellectual Property"
means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service marks, including all applications
and registrations and the goodwill connected with the use of and symbolized by the foregoing; (ii) copyrights, including all applications
and registrations related to the foregoing; (iii) trade secrets and confidential know-how; (iv) patents and patent applications;
(v) websites and internet domain name registrations; and (vi) other intellectual property and related proprietary rights, interests
and protections (including all rights to sue and recover and retain damages, costs and attorneys' fees for past, present and future
infringement and any other rights relating to any of the foregoing).

 

(b) Section 3.05(b) of the Disclosure
Schedules lists all Intellectual Property included in the Purchased Assets ("Purchased IP''). Seller owns or has adequate,
valid and enforceable rights to use all the Purchased IP, free and clear of all Encumbrances. Seller expressly discloses that
Purchased IP may include licenses ("IP Licenses") of intellectual property owned by others ("Third Party
IP"), and the parties agree such IP Licenses form a part of the Purchased IP only to the extent of Seller's subsisting
licenses and that the underlying Third Party IP is and remains the exclusive property of its owner(s); while Seller will seek
to assign and transfer to Buyer all such IP Licenses that it owns in Third Party IP, Seller neither represents nor warrants that
it is delivering, nor will deliver any Third Party IP, nor shall Seller have any obligation to deliver ownership to Buyer of such
underlying Third Party IP or IP License(s). Such Third Party IP may be embedded in software, firmware and/or software code which
is not readily accessible to Seller, however, to the extent Seller becomes aware prior to Closing of such IP Licenses and/or Third
Party IP, Seller will disclose the same to Buyer and Buyer shall be responsible for directly obtaining its own versions of such
IP Licenses upon such terms and conditions as it may directly negotiate with the licensor of such Third Party IP and Buyer shall
have no obligation or liability to Seller to assume any such IP Licenses. To the extent that Seller discovers the existence of
Purchased IP, IP Licenses and/or Third Party IP forming a part of, required by, or used in connection with Purchases Assets, it
shall be permitted to freely add such assets to the appropriate Disclosure Schedules, including without limitation Disclosure
Schedules 3.05(b) and 3.06, and the omission and/or inclusion of such intellectual property and/or licenses therein shall not
constitute a breach of any Seller's warranty, representation or covenant hereunder, nor shall non-delivery of any license or assignment
of a license to Buyer be deemed a failure of Seller to make delivery of any Seller's Deliverable(s) required hereunder.

 

 

 

 

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(c) Notwithstanding the foregoing, Seller
will cooperate with Buyer, upon Buyer's request and at Buyer's sole cost, in efforts to procure IP Licenses for Buyer to the extent
such licenses were previously held by Seller and/or [***] upon terms and conditions not less favorable to Buyer than are available
to Seller. To Seller's knowledge, Seller is not bound by any outstanding judgment, injunction, order or decree restricting the
use of the Purchased IP, or restricting the licensing thereof to any person or entity. With respect to the registered Intellectual
Property listed on Section 3.06(b) of the Disclosure Schedules, to the knowledge of Seller (i) all such Intellectual Property
is valid, subsisting and in full force and effect and (ii) all maintenance fees have been paid and all filings required to maintain
Seller's ownership thereof have been made. For all such registered Intellectual Property, Section 3.06(b) of the Disclosure Schedules,
Seller shall endeavor to list (A) the jurisdiction where the application or registration is located, (B) the application or registration
number, and (C) the application or registration date.

 

(d) To the knowledge of Seller, Seller's
prior and current use of the Purchased IP has not and does not infringe, violate, dilute or misappropriate the Intellectual Property
of any person or entity and there are no claims pending or threatened by any person or entity with respect to the ownership, validity,
enforceability, effectiveness or use of the Purchased IP. To the knowledge of Seller, no person or entity is infringing, misappropriating,
diluting or otherwise violating any of the Purchased IP, and neither Seller nor any affiliate of Seller has made or asserted any
claim, demand or notice against any person or entity alleging any such infringement, misappropriation, dilution or other violation.

 

Section 3.06 Assigned
Contracts. To the best knowledge of Seller, Seller will receive no valid and subsisting contracts as part of the
Purchased Assets, as further described in Section 3.06 of the Disclosure Schedules. If any contract(s) and/or contract
right(s) are, in fact, included in the Collateral acquired by Seller pursuant to the NYUCC 9-620 foreclosure it intends to
conduct, then such contracts and contract rights shall NOT be included in the Purchased Assets and shall not be assigned to
and assumed by Buyer (the "Assigned Contracts") unless the Buyer expressly requests the same in a written
request within 15 days after the Closing and Seller consents thereto, whereupon any such contract(s) and contract rights(s)
shall be assigned to and assumed by Buyer. Buyer recognizes and acknowledges that [***] was substantially inactive in
performing and managing its Business for more than the past one year and that certain events may have occurred or failed to
occur which may negatively have affected or may affect the Assigned Contracts and/or rights of Seller (as successor to [***]
therein; however, Buyer understands and will accept any such Assigned Contracts that it requests on an "as-is"
basis, in their respective then existing condition(s) as of the Closing Date. In light of the fact that the Purchased Assets
conveyed hereunder were formerly a part of the Collateral and that Seller has acquired such Collateral as forms a part of the
Purchased Assets pursuant to Seller's rights to accept the same as a secured party under the NYUCC, including without
limitation NYUCC 9-620, no discrepancy in the validity or enforceability of the Assigned Contracts from the state of facts
represented by Seller herein or hereafter shall constitute or comprise, in whole or in part, a breach of any Seller 's
warranty, representation or covenant hereunder, nor shall non-delivery to Buyer of any assignment of such an
Assigned Contract be deemed a failure of Seller to make delivery of any Seller's Deliverable(s) required hereunder. To the
knowledge of Seller, Section 3.06 of the Disclosure Schedules sets forth Seller's information about the possible type
and kind of contract(s) and/or contract right(s), if any, that Seller may acquire pursuant to the said foreclosure .

 

 

_______________

[***] Confidential treatment has been requested with respect
to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

    	11

    	 

    

 

Section 3.07 Permits. Section 3.07
of the Disclosure Schedules lists all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances
and similar rights obtained from governmental authorities included in the Purchased Assets (the "Transferred Permits").
To the knowledge of Seller, except as disclosed in Section 3.07 of the Disclosure Schedules: (i) the Transferred Permits
are valid and in full force and effect; (ii) all fees and charges with respect to such Transferred Permits as of the date hereof
have been paid in full; (iii) no event has occurred that, with or without notice or lapse of time or both, would reasonably be
expected to result in the revocation, suspension, lapse or limitation of any Transferred Permit.

 

Section 3.08 Non-foreign Status. Seller
is not a "foreign person" as that term is used in Treasury Regulations Section 1.1445-2.

 

Section 3.09 Compliance With Laws.
To the knowledge of Seller, Seller has complied, and is now complying, with all applicable federal, state and local laws and regulations
applicable to ownership and use of the Purchased Assets.

 

Section 3.10 Legal Proceedings.
To the knowledge of Seller, there is no claim, action, suit, proceeding or governmental investigation ("Action")
of any nature pending or, to Seller's knowledge, threatened against or by Seller (a) relating to or affecting the Purchased Assets;
or (b) that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event
has occurred nor circumstances exist, to the knowledge of Seller, that may give rise to, or serve as a basis for, any such Action.

 

Section 3.11 Brokers. No broker,
finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of Seller.

 

Section 3.12 Full Disclosure.
To the knowledge of Seller, no representation or warranty by Seller in this Agreement and no statement contained in the
Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Buyer pursuant to
this Agreement contains any untrue statement of a material fact, or, to the knowledge of Seller, omits to state a material
fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not
misleading.

 

 

 

    	12

    	 

    

 

Section 3.13 No Other Representations
and Warranties. Except for the representations and warranties contained in this Article III (including the related
portions of the Disclosure Schedules), neither Seller nor any other Person has made or makes any other express or implied representation
or warranty, either written or oral, on behalf of Seller, including any representation or warranty as to the accuracy or completeness
of any information regarding the Business and the Purchased Assets furnished or made available to Buyer and its Representatives
(including any information, documents or material, management presentations or in any other form in expectation of the transactions
contemplated hereby) or as to the future revenue, profitability or success of the Business, use or condition of the Purchased
Assets, or any representation or warranty arising from statute or otherwise in law.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and warrants to Seller
that the statements contained in this Article IV are true and correct as of the date hereof For purposes of this Article
IV, "Buyer's knowledge," "knowledge of Buyer," "best knowledge of Buyer" and any similar phrases
shall mean the actual of any director or officer of Buyer, after due inquiry.

 

Section 4.01 Organization and Authority
of Buyer; Enforceability. Buyer is a corporation duly organized. validly existing and in good standing under the laws of the
state of Nevada. Buyer has full corporate power and authority to enter into this Agreement and the documents to be delivered hereunder,
to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance
by Buyer of this Agreement and the documents to be delivered hereunder and the consummation of the transactions contemplated hereby
have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement and the documents to be delivered
hereunder have been duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery by Seller) this
Agreement and the documents to be delivered hereunder constitute legal, valid and binding obligations of Buyer enforceable against
Buyer in accordance with their respective terms.

 

Section 4.02 No Conflicts; Consents. The execution, delivery and performance
by Buyer of this Agreement and the documents to be delivered hereunder, and the consummation of the transactions contemplated
hereby, do not and will not: (a) violate or conflict with the certificate of incorporation, by-laws or other organizational documents
of Buyer; or (b) violate or conflict with any judgment, order, decree, statute, law,

ordinance, rule or regulation applicable to Buyer. No consent,
approval, waiver or authorization is required to be obtained by Buyer from any person or entity (including any governmental authority)
in connection with the execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions
contemplated hereby.

 

 

 

 

_______________

[***] Confidential treatment has been requested with respect
to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

    	13

    	 

    

 

Section 4.03 Legal Proceedings. There is no Action of
any nature pending or, to Buyer's knowledge, threatened against or by Buyer that challenges or seeks to prevent, enjoin or otherwise
delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or
serve as a basis for, any such Action.

 

Section 4.04 Brokers. No broker,
finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.

 

Section 4.05 Sufficiency of Funds.
Buyer has sufficient cash on hand or other sources of immediately available funds to enable it to make payment of the Purchase
Price and consummate the transactions contemplated by this Agreement.

 

Section 4.06 Independent Investigation.
Buyer has conducted its own independent investigation, review and analysis of the Business and the Purchased Assets, (including
its own review, and/or review by advisers and consultants reporting to it, of the Collateral during times preceding the Seller's
acquisition of the same as a secured creditor pursuant to the NYUCC, and including when such Collateral was in the hands of [***]
and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records,
and other documents and data of Seller for such purpose. Buyer acknowledges and agrees that: (a) in making its decision to enter
into this Agreement and to consummate the transactions contemplated hereby, Buyer has relied solely upon its own investigation
and the express representations and warranties of Seller set forth in Article Ill of this Agreement (including related portions
of the Disclosure Schedules); and (b) neither Seller nor any other Person has made any representation or warranty as to Seller,
the Business, the Purchased Assets or this Agreement, except as expressly set forth in Article m of this Agreement (including
the related portions of the Disclosure Schedules).

 

ARTICLE V

COVENANTS

 

Section 5.01 Public Announcements.
Unless otherwise required by applicable law, neither party shall make any public announcements regarding this Agreement or the
transactions contemplated hereby without the prior written consent of the other party (which consent shall not be unreasonably
withheld or delayed).

 

 

 

_______________

[***] Confidential treatment has been requested with respect
to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

    	14

    	 

    

 

Section 5.02 Bulk Sales Laws. The
parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar laws of any jurisdiction that
may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer.

 

Section 5.03 Transfer Taxes. All
transfer, documentary, sales, use, stamp, registration, value added and other such taxes and fees (including any penalties and
interest) incurred in connection with this Agreement and the documents to be delivered hereunder shall be borne and paid by Buyer
when due. Buyer shall, at its own expense, timely file any tax return or other document with respect to such taxes or fees (and
Seller shall cooperate with respect thereto as necessary).

 

Section 5.04 Further Assurances. Following the Closing, each
of the parties hereto shall execute and deliver such additional documents, instruments, conveyances and assurances and take such
further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated
by this Agreement and the documents to be delivered hereunder.

 

ARTICLE VI

CONDITIONS TO CLOSING

 

Section 6.01 Conditions to Obligations of All Parties.
The obligations of each party to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment,
at or prior to the Closing, the condition that no Governmental Authority shall have enacted, issued, promulgated, enforced or entered
any Governmental Order which is in effect and has the effect of making the transactions contemplated by this Agreement illegal,
otherwise restraining or prohibiting consummation of such transactions or causing any of the transactions contemplated hereunder
to be rescinded following completion thereof.

 

"Transaction Documents" means this Agreement, and
the other agreements, instruments and documents required to be delivered at the Closing, including without limitation, Buyer's
Deliverables and Seller's Deliverables.

 

Section 6.02 Conditions to Obligations
of Buyer. The obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment
or Buyer's waiver, at or prior to the Closing, of each of the following conditions:

 

(a) The representations and warranties
of Seller contained in Article IV shall be true and correct in all material respects as of the Closing Date with the same
effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified
date, which shall be true and correct in all respects as of that specified date), except where the failure of such representations
and warranties to be true and correct would not have a Material Adverse Effect (defined below).

 

 

    	15

    	 

    

 

 

(b) Seller shall have duly performed
and complied in all material respects with all agreements, covenants and conditions required by this Agreement and each of the
other Transaction Documents required to be performed or complied with by it prior to or on the Closing Date.

 

(c) Seller shall have delivered
to Buyer duly executed counterparts to the Transaction Documents and such other documents and deliveries set forth in Section
2.02(b).

 

(d) Buyer shall have received
a certificate, dated the Closing Date and signed by a duly authorized officer of Seller, that each of the conditions set forth
in Section 6.02(a) and Section 6.02(b) have been satisfied (the "Seller Closing Certificate").

 

(e) Buyer shall have received
a certificate of the managing member or a manager of Seller certifying that in accordance with its Operating Agreement Seller
has duly authorized the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation
of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the
resolutions adopted in connection with the transactions contemplated hereby and thereby.

 

(f) Buyer shall have received a certificate
pursuant to Treasury Regulations Section 1.1445-2(b) (the "FIRPTA Certificate") that Seller is not a foreign
person within the meaning of Section 1445 of the Code duly executed by Seller.

 

Section 6.03 Conditions to Obligations
of Seller. The obligations of Seller to consummate the transactions contemplated by this Agreement shall be subject to the
fulfillment or Seller's waiver, at or prior to the Closing, of each of the following conditions:

 

(a) The representations and warranties
of Buyer contained in Article IV shall be true and correct in all material respects as of the Closing Date with the same effect
as though made at and as of such date (except those representations and warranties that address matters only as of a specified
date, which shall be true and correct in all respects as of that specified date), except where the failure of such representations
and warranties to be true and correct would not have a material adverse effect on Buyer's ability to consummate the transactions
contemplated hereby.

 

(b) Buyer shall have duly performed
and complied in all material respects with all agreements, covenants and conditions required by this Agreement and each of the
other Transaction Documents to be performed or complied with by it prior to or on the Closing Date.

 

 

 

    	16

    	 

    

 

(c) Buyer shall have delivered
to Seller the Purchase Price, duly executed counterparts to the Transaction Documents and such other documents and deliveries
set forth in Section 3.02(b).

 

(d) Seller shall have received
a certificate, dated the Closing Date and signed by a duly authorized officer of Buyer, that each of the conditions set forth
in Section 6.03(a) and Section 6.03(b) have been satisfied (the "Buyer Closing Certificate").

 

(e) Seller shall have received
a certificate of the Secretary or an Assistant Secretary (or equivalent officer) of Buyer certifying that attached thereto are
true and complete copies of all resolutions adopted by the board of directors of Buyer authorizing the execution, delivery and
performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby
and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with
the transactions contemplated hereby and thereby.

 

(f) Seller shall have received a certificate of the Secretary or an Assistant
Secretary (or equivalent officer) of Buyer certifying the names and signatures of the officers and agents of Buyer authorized
to sign this Agreement, the Transaction Documents and the other documents to be delivered hereunder and thereunder.

 

ARTICLE VII

MISCELLANEOUS

 

Section 7.01 Expenses. All costs
and expenses incurred in connection with this Agreement and the transactions contemplated hereby, except to the extent otherwise
expressly stated herein shall be paid by the party incurring such costs and expenses.

 

Section 7.02 Notices. All notices,
requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have
been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a
nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with
confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after
normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or
at such other

address for a party as shall be specified in a notice given
in accordance with this Section 7.02):

 

 

 

 

    	17

    	 

    

 

 

 

 

	If to Seller:	JIFM HOLDINGS, LLC
	 	315 Oser Avenue, Suite 2
	 	Hauppauge, NY 117788
	 	 
	 	Facsimile:
	 	E-mail:
	 	 
	 	 
	with a copy to:	Law Offices of M. Scott Vayer
	 	45 Rockefeller Plaza Ste 2000
	 	New York, NY 10111-3193
	 	Attention: M. Scott Vayer
	 	 
	 	Facsimile: 212-332-3372
	 	E-mail: svayer@vayerlaw.com
	 	 
	If to Buyer:	SELECT-TV USA HOLDINGS, INC.
	 	2360 Corporate Circle Ste 400
	 	Henderson, NV 89074-7739
	 	 
	 	Fascimile:
	 	E-mail:
	 	Attention: Brooks Pickering
	 	 
	with a copy to:	Sanders ortoli Vaughn-Flam Rosenstadt LLP
	 	501 Madison Avenue - 14th Floor
	 	New York, NY 10022
	 	Facsimile: 212-829-8937
	 	E-mail: wsr@sovrlaw.com
	 	Attention: William S. Rosenstadt

 

 

 

 

    	18

    	 

    

 

Headings and Definitions. The headings
in this Agreement are for reference only and shall not affect the interpretation of this Agreement. Unless otherwise defined herein,
capitalized terms shall have the respective meanings, as required by context, which are set forth, in order of priority, in the
RPP Note, the Security Agreement and the other Transact ion Documents. The following defined terms shall have the meanings here
set forth: "Material Adverse Effect" means any event, occurrence, fact, condition or change that is materially
adverse to (a) the Purchased Assets, taken as a whole, or (b) the ability of Seller to consummate the transactions contemplated
hereby; provided, however, that "Material Adverse Effect" shall not include any event, occurrence, fact, condition or
change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions; (ii) conditions
generally affecting the industries in which the Business operates; (iii) any changes in financial, banking or securities markets
in general, including any disruption thereof and any decline in the price of any security or any market index or any change in
prevailing interest rates; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening
thereof; (v) any action required or permitted by this Agreement or any action taken (or omitted to be taken) with the written
consent of or at the written request of Buyer; (vi) any matter of which Buyer is aware on the date hereof; (vii) any changes in
applicable Laws or accounting rules (including GAAP) or the enforcement, implementation or interpretation thereof; (viii) the
announcement, pendency or completion of the transactions contemplated by this Agreement, including losses or threatened losses
of employees, customers, suppliers, distributors or others having relationships with the Seller and/or the Business; or (ix) any
natural or man-made disaster or acts of God.

 

Section 7.03 Severability. If any
term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in
any other jurisdiction.

 

Section 7.04 Entire Agreement. This
Agreement and the documents to be delivered hereunder constitute the sole and entire agreement of the parties to this Agreement
with respect to the subject matter contained herein, and supersede all prior and contemporaneous understandings and agreements,
both written and oral with respect to such subject matter. In the event of any inconsistency between the statements in the body
of this Agreement and the documents to be delivered hereunder, the Exhibits and Disclosure Schedules (other than an exception
expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

 

Section 7.05 Successors and Assigns.
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other
party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of
its obligations hereunder.

 

Section 7.06 No Third-party Beneficiaries.
This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing
herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit
or remedy of any nature whatsoever under or by reason of this Agreement.

 

 

 

    	19

    	 

    

 

 

Section 7.07 Amendment and Modification.
This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.

 

Section 7.08 Waiver. No waiver by
any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so
waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly
identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver.
No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate
or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 7.09 Governing Law. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect
to any choice or conflict oflaw provision or rule (whether of the State of New York or any other jurisdiction).

 

Section 7.10 Submission to Jurisdiction.
Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may
be instituted in the federal courts of the United States of America or the courts of the State of New York in each case located
in the city of New York and county of New York, and each party irrevocably submits to the exclusive jurisdiction of such courts
in any such suit, action or proceeding.

 

Section 7.11 Waiver of Jury Trial.
Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated
and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by
jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Section 7.12 Specific Performance.
The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with
the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other
remedy to which they are entitled at law or in equity.

 

 

 

 

    	20

    	 

    

 

Section 7.13 Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed
copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same
legal effect as delivery of an original signed copy of this Agreement.

 

 

 

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

    	21

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

 

 

JIFM HOLDINGS, LLC

 

By: /s/ signature

Name: [***]

Title: Managing Member

 

 

SELECT-TV USA HOLDINGS, INC.

 

By: /s/ Philippe Germain

Name: Philippe Germain

Title: CEO

 

By: 

Name:

Title:

 

 

 

 

 

_______________

[***] Confidential treatment has been requested with respect
to the omitted language. The omitted language has been separately filed with the Securities and Exchange Commission.

    	22Exhibit 10.13

 

SECURITY
AGREEMENT

 

THIS SECURITY AGREEMENT dated as
of March 2, 2015 ("Security Agreement") made by Select-TV USA Holdings, Inc., a Nevada corporation, located
at 2360 Corporate Circle Ste 400, Henderson, NV 89074-7739 ("Borrower"), to and in favor of JIFM HOLDINGS, LLC, a
New York limited liability company, located at 315 Oser Avenue, Suite 2, Hauppauge, NY 117788 (the "Lender") to
secure the obligations of Borrower under that certain promissory note in the original principal amount of $200,000 dated as
of the date hereof (as the same may be amended, supplemented, waived or otherwise modified from time to time (the
"Note").

 

In
consideration of the Lender providing credit under the Note to Borrower, Borrower hereby agrees as follows:

 

Section
1. Definitions. As used in this Security Agreement, the following terms have the following meanings (terms defined in the
singular to have the same meaning when used in the plural and vice versa):

 

"Borrower"
has the meaning specified in the preamble.

 

"Collateral" has the meaning specified in "Grant of Security Interest".

 

"Contracts"
means each contract, agreement, instrument, and indenture sold, assigned or transferred to Borrower as part of the Purchased Assets
(defined below) and/or arising as proceeds and/or products thereof, to which Borrower is a party or under which Borrower has any
right, title and interest or to which Borrower or its property is subject.

 

"Lender"
has the meaning specified in the preamble. "Loan Documents" has the meaning specified in the Note. "Note" has
the meaning specified in the preamble.

 

"Purchased Assets"
has the meaning specified in the Asset Purchase Agreement dated February 19, 2015 between Borrower (as "Buyer" therein)
and Lender (as "Seller" therein), a summary thereof being annexed hereto (as Schedule I-SA) in the form of a copy of
Schedule Ito the Bill of Sale issued by Seller to Buyer as provided by and subject to such Asset Purchase Agreement.

 

"Secured
Obligations" means any and all present and future liabilities and obligations of Borrower to Lender under or pursuant to
the Note or any of the other Loan Documents entered into with Lender in connection with the Note, including this Security Agreement,
together with all reasonable, out-of-pocket fees and expenses incurred in collecting any or all of the items specified in this
definition or enforcing any rights under any of the documents executed in connection with any such liabilities and obligations
(including all reasonable fees and expenses of Lender's counsel and reasonable, out-of-pocket fees, costs or expenses which may
be paid or incurred by Lender in collecting any such items or enforcing any such rights).

 

"Security
Agreement" means this Security Agreement.

 

"UCC"
means the Uniform Commercial Code of the State of New York, except to the extent that the validity or perfection of the
security interest under this Security Agreement, or remedies under this Security Agreement, in respect of any particular
Collateral are governed by the laws of a jurisdiction other than the State of New York, then "UCC" shall be deemed
to refer to the Uniform Commercial Code of such other jurisdiction.

 

    	1

    	 

    

 

All
terms defined in the UCC that are used in this Security Agreement have the meaning specified in the UCC. Unless otherwise specified
in this Security Agreement, terms defined in the Note will have the same meaning specified in the Note when used in this Security
Agreement.

 

Section
2. Rules of Interpretation. When used in this Security Agreement: (1) "or" is not exclusive, (2) a reference
to a law includes any amendment or modification to such law, and a reference to an agreement, instrument or document includes
any amendment or modification of such agreement, instrument or document.

 

Section
3. Grant of Security Interest. Borrower hereby grants to Lender a continuing security interest in and lien on all right,
title and interest of Borrower in and to all assets and properties of Borrower in whole or in part comprised of the Purchased
Assets, its proceeds and products, (for purposes of this Security Agreement, called the "Collateral"), including to
the extent they/it include(s) and/or forms a part of such Purchased Assets, their proceeds and products (and if commingled with
or inseparable from the following items, then extending to the entirety thereof), each of the following items in which Borrower
has any right, title or interest, whether now owned or hereafter acquired, created or existing: (1) all Accounts, (2) all Chattel
Paper (whether tangible or electronic), (3) all Deposit Accounts, (4) all Documents, (5) all General Intangibles (including Payment
Intangibles and Software), (6) all Goods (including Inventory, Equipment, Fixtures and Accessions), (7) all Instruments (including
promissory notes), (8) all Investment Property, (9) all Letter-of-Credit Rights, (10) all Letters of Credit, (11) all Money, (12)
all Supporting Obligations, (13) all other assets of Borrower, and (14) all proceeds and products of the foregoing.

 

Section 4.
Security for Secured Obligations. The Collateral secures the prompt and complete payment when due of all Secured Obligations.

 

Section
5. Filing of Financing Statement. Borrower hereby authorizes Lender, his counsel or his representative, at any time and
from time to time, to file financing statements and amendments covering the Collateral in such jurisdictions as Lender may deem
necessary or desirable to perfect the security interests granted by Borrower under this Security Agreement, provided that prior
to the filing thereof, Lender shall obtain Borrower's approval of the form of such financing statements and amendments, which
approval will not be unreasonably withheld or delayed.

 

Section
6. Actions to Perfect Security Interest. Borrower agrees that from time to time, it will promptly execute and deliver all
instruments and documents, and take all act ions, that may be necessary or desirable, or that Lender may reasonably request, for
the attachment, perfection and maintenance of the priority of, the security interest of Lender in any and all of the Collateral
or to enable Lender to exercise and enforce any and all of his rights, powers and remedies under this Security Agreement with
respect to any and all of the Collateral.

 

    	2

    	 

    

 

Section
7. Continued Perfection of Security Interest. Unless Borrower has provided Lender with thirty (30) days prior written notice
of its intention to do any of the following and prior to taking such proposed action Borrower has executed and delivered all such
additional document and performed all additional acts as Lender may reasonably request, in his reasonable discretion, to continue
or maintain the existence and priority of the security interest of Lender in the Collateral and subject to the other provisions
of this Security Agreement, Borrower shall not: (1) change its name, (2) change its jurisdiction of incorporation, or (3) change
the location where the books and records related to the Collateral are maintained.

 

Section
8. Representations and Warranties. At the time of execution of this Security Agreement, Borrower represents and warrants
to Lender as follows:

 

(1)     Name of Borrower. The exact legal name of Borrower is the name specified in the preamble to this Security Agreement.
The Borrower has not been known by any other name during the five (5) years prior to the date of this Security Agreement.

 

(2)     Location of Borrower. Borrower is organized under the laws of the State of Nevada. All of the assets used in the
operation of its business are in the possession of, and under the control of, Borrower and none of the assets used by Borrower
in the conduct of its business are held by any third party except that substantially all of the Inventory and Equipment is held
in public warehouses and on premises of hotel customers.

 

(3)     Location for Filing of Financing Statement. With respect to any item of Collateral in which a security interest
can be perfected by the filing of a UCC financing statement, the filing of such a statement with the Secretary of State of the
State of Nevada will perfect the security interest of Lender in such Collateral.

 

(4)     Formation,
Good Standing, Power and Due Qualification. Borrower
(a) is a corporation, duly incorporated, validly existing, and in good standing under the laws of the State of Nevada, (b) has
the corporate power and authority to own its assets and to transact the business in which it now engages or proposes to engage
in, and (c) is duly qualified as a foreign corporation, and, except where the failure to do so, individually or in the aggregate,
would not reasonably be expected to result in a material adverse effect on the business, financial condition or results of operations
of Borrower or the Collateral (a "Material Adverse Effect"), is in good standing under the laws of each other jurisdiction
in which such qualification is required.

 

(5)     Authority.
The execution, delivery and performance by Borrower of this Security Agreement are within its corporate powers, have been
duly authorized by all necessary corporate action, and do not
(a) require any consent or approval of its stockholders which has not been obtained, or (b) contravene its charter or bylaws.

 

(6)     No
Contravention. The execution, delivery and performance by Borrower of this Security Agreement do not (a) violate any provision
of any law, order, writ, judgment, injunction, decree, determination, or award presently in effect applicable to Borrower, (b)
result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease, or
instrument to which Borrower is a party or by which Borrower's properties may be bound or affected, or (c) result in, or require,
the creation or imposition of any lien upon or with respect to any of the properties now owned or hereafter acquired by Borrower
except for the lien created under this Security Agreement, which in any case is reasonably likely to result in a Material Adverse
Effect.

 

    	3

    	 

    

 

(7)     Governmental Authority. No authorization, approval or other action by, and no notice to or filing with, any governmental
authority is required for the due execution, delivery and performance by Borrower of this Security Agreement, except for the filing
of financing statements under the UCC.

 

(8)     Legally
Enforceable Security Agreement. This Security Agreement is the legal, valid and binding obligation of
Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, moratorium, fraudulent conveyance and other laws applicable to the rights of creditors generally and
by general equitable principles.

 

(9)     No Restrictions on Collateral. None of the Collateral is subject to a restriction that prohibits, restricts or limits
the grant of a security interest in such Collateral pursuant to this Security Agreement, the perfection of the security interest
granted by this Security Agreement (including the priority of such security interest) or the exercise by Lender of his rights,
remedies and powers under this Security Agreement or otherwise.

 

(10)   Security Interest and Claims. This Security Agreement creates a valid security interest in the Collateral. The security
interest of Lender in the Collateral is a first priority security interest in the Collateral. Borrower owns the Collateral free
and clear of any security interest or other liens or encumbrances except for the security interest created by this Security Agreement.

 

(11)   Acquisition in Ordinary Course of Business. All of the Collateral, including all Equipment and all Inventory, was
acquired in the ordinary course of business.

 

(12)   Compliance with Law. All of the Collateral was acquired, used, produced and sold or disposed of in accordance with
all applicable laws, including in the case of inventory, the Fair Labor Standards Act.

 

(13)   Inventory. None of the Inventory is held on consignment or subject to a sale or return or sale on approval or similar
arrangement.

 

(14)   Equipment. All Equipment which is useful or necessary to the business of Borrower is in good repair, ordinary wear
and tear excepted.

 

(15)   Accounts. Borrower has originated all Accounts. None of the Accounts have either
been sold to another party or otherwise transferred or delivered to any party for the purpose of collecting such Account.

 

(16)   Contracts. All of the Contracts material to the operation of the business of
Borrower are in full force and effect and Borrower has performed in all material respects its obligations under each such Contract,
and to the knowledge of Borrower, the other parties to each such Contract have performed in all material respects their respective
obligations under each such Contract, except that contracts acquired as part of the Purchased Assets were acquired as-is, parties
to such Contracts may not have so performed and such Contracts may not be enforceable in accordance with their terms.

 

    	4

    	 

    

 

Section
9. Covenants. Borrower
agrees:

 

(1)     Reporting Requirements. Borrower will as soon as reasonably practicable notify Lender if (a) any claim, including any attachment,
levy, execution or other legal process, is made against any or all of the Collateral, (b) there is any material loss or damage
to, or material decline in the value of, or material change in the nature of, any of the Collateral or (c) there is a redemption
or exchange of any or all of the Collateral other than the collection of Accounts or the sale of Inventory in the ordinary course
of business. Borrower will furnish to Lender from time to time statements and schedules further identifying and describing the
Collateral and such other reports in connection with such Collateral as Lender may reasonably request, all in reasonable detail.

 

(2)     Records. Borrower will keep and maintain at its expense complete and accurate in all material respects records related
to the Collateral, including records of all payments made, all credits granted, and all other documentation related to the Collateral.

 

(3)     Inspection. Upon reasonable notice to Borrower and during normal business hours, Borrower will allow Lender or his respective
designees to visit its offices and each location under its control where any Collateral is located to inspect its books and records,
make copies thereof, and inspect the Collateral. Such inspections will be made on a periodic basis or at any time there is an
outstanding Event of Default.

 

(4)     Restrictions on Collateral. Borrower will not enter into any agreement or undertaking that restricts or limits the right
or ability of Borrower or Lender to sell, assign, or transfer any of the Collateral.

 

(5)     Defense of Collateral. Borrower will defend the Collateral against all claims and demands of all parties, other than Lender.

 

(6)     No Security Interest or Claims. Borrower will not create, permit or suffer to exist, any security interest on any of the
Collateral other than the security interest under this Security Agreement. Borrower will discharge or cause to be discharged all
security interests and claims on any or all of the Collateral, except for the security interest under this Security Agreement.
Borrower will pay when due all property and other taxes, assessments and governmental charges or levies imposed upon and all claims
(including claims for labor, materials and supplies) against the Collateral.

 

(7)     Transfer and Other Security Interests. Borrower shall not sell, assign (by operation of law or otherwise), transfer or
otherwise dispose of any of the Collateral except for sales, assignments and transfers of Collateral in the ordinary course of
business.

 

(8)     Compliance with Law. Borrower will comply in all material respects with all laws applicable to any or all of the Collateral,
except to the extent the failure to comply will not have a material adverse effect on the rights of Lender under this Security
Agreement, the priority of the security interest of Lender in the Collateral or the value of the Collateral.

 

(9)     Insurance. Borrower shall, at its own expense, maintain insurance with respect to all the Equipment, Inventory and other
Collateral in such amounts, against such risks, in such form and with such insurers as are usually carried by companies engaged
in the same or similar business as Borrower and such other insurance as reasonably required by Lender. Each policy for liability
insurance shall (a) designate Lender as an additional insured and (b) provide for all losses to be paid on behalf of Lender and
Borrower as their respective interests may appear. Reimbursement under any liability insurance maintained by Borrower may be paid
directly to the party who shall have incurred liability covered by such insurance.

 

    	5

    	 

    

 

In
addition, each such policy shall (a) name Lender as an additional
insured party under such policy, and (b) provide that there shall be no recourse against
Lender for payment of premiums or other amounts with respect to such policy and (c) provide that at least thirty (30) days prior
written notice of cancellation of or lapse shall be given to Lender by the insurer.

 

If
requested by Lender, Borrower shall deliver to Lender (a) original or duplicate policies of such insurance policies, (b) a report
of a reputable insurance broker with respect to such insurance, and (c) duly executed instruments of assignment of such insurance
policies to perfect Lender's security interest in such policy, including without limitation, acknowledgments of such assignments
from the respective insurers.

 

In
case of any loss involving damage to Equipment, Inventory or any other Collateral, after an Event of Default and during the continuation
thereof, Lender will determine whether such insurance proceeds shall be used (a) to make or cause to be made the necessary repairs
to or replacements of such assets or rights, or (b) to pay the Secured Obligations, and if there are any contingent Secured Obligations,
to provide cash collateral to cover such Secured Obligations.

 

(10)     Equipment. Borrower shall cause the Equipment necessary
for the conduct of its business to be maintained and preserved in good working order, repair
and condition, ordinary wear and tear excepted, and shall forthwith,
or in the case of any loss or damage to any of its Equipment as quickly as practicable after
the occurrence thereof, make or cause to be made all repairs, replacements, and other improvements in connection therewith which
are reasonably necessary or desirable to so maintain and preserve such Equipment.

 

(11)     Inventory. In accordance with reasonable business practice, Borrower will maintain all Inventory in good saleable
or useable condition, Borrower will (a) not sell, assign, lease, mortgage, transfer or otherwise dispose of any interest in any
Inventory other than sales of Inventory in the ordinary course of business, and (b) not use or permit any of the Inventory to
be used for any unlawful purpose or in violation of any law, or for hire.

 

(12)     Accounts.
Except as otherwise provided in this Security Agreement, Borrower
shall continue to collect, at its own expense, all amounts due or to become due to Borrower under the Accounts. In connection
with such collections, Borrower may take (and after the occurrence and during the continuation of an Event of Default, at Lender's
reasonable discretion, shall take) such action, as Borrower or Lender may reasonably deem necessary or advisable to enforce collection
of the Accounts.

 

(13)     Contracts.
Borrower will perform in all material respects all of its duties and obligations under each contract material to the operation
of its business. It will use reasonable commercial efforts to require that all other parties to each such contract perform all
of their respective duties and obligations.

 

    	6

    	 

    

 

Section
10. Rights and Remedies.
If Borrower fails to
perform any agreement contained in this Security Agreement, Lender may himself perform, or cause performance of, such agreement.
Upon and during the continuation of an Event of Default, Lender may exercise in respect of any or all of the Collateral one or
more of the following rights, remedies and powers and Borrower agrees that each of the following rights, remedies and powers is
commercially reasonable:

 

(1)     General Remedies. Lender may exercise in respect of any or all of the Collateral all rights, remedies and powers
provided for in this Security Agreement, by law, in equity or otherwise available to him, including all the rights and remedies
of a secured party under the UCC (whether or not the UCC applies to the affected Collateral)

 

(2)     Right
to Accelerate Obligations Owed to Borrower. To the extent that any obligation to make payment on any Collateral is not then
due or a demand for payment has not been made and Borrower has the right, in accordance with the term of such Collateral, to require
or make a demand for payment on such Collateral, Lender has the right to require and to make a demand for payment on such Collateral.

 

(3)     Accounts,
Contracts, and Other Collateral. Lender, has the right to notify the account debtors or obligors under any Accounts, Contracts,
and other Collateral of the security interest of Lender in such Account, Contract, or other Collateral and to direct such account
debtors or obligors to make payment of all amounts due or to become due to Borrower thereunder directly to Lender or to an account
designated by Lender for collection of any such Accounts, Contracts, and other Collateral, and to adjust, settle or compromise
the amount or payment thereof, in the same manner and to the same extent as Borrower might have done. After receipt by Borrower
of such notice from Lender, (a) all amounts and proceeds (including wire transfers, checks and other instruments) received by
Borrower in respect of any Accounts, Contracts, or other Collateral shall be received in trust for the benefit of Lender under
this Security Agreement, shall be segregated from other funds of Borrower and shall be forthwith deposited to such account or
paid over or delivered to Lender in the same form as so received (with any necessary endorsement or assignment) to be held as
Collateral, or be applied as provided by this Section, as determined by Lender, and (b) Borrower shall not adjust, settle or compromise
the ainount or payment of any such Account (except in the ordinary course of business), Contract, or other Collateral or release
wholly or partly any account debtor or obligor thereof, or allow any discount thereon, other than any discount allowed for prompt
payment.

 

(4)     Assembly
of Collateral. Lender may require Borrower to, and Borrower hereby agrees that it will at its expense and upon the request
of Lender as soon as reasonably practicable, assemble all or any part of the Collateral as directed by Lender and make it available
to Lender at a place to be designated by Lender that is reasonably convenient to both Lender and Borrower.

 

(5)     Entering
Premises. Lender or his designated agents may enter, with or without judicial process, upon any premises of Borrower and take
possession of all or any part of the Collateral, and remove such Collateral to a location specified by Lender.

 

(6)     Use
of Premises. Lender shall have the right to enter and remain upon each and every location of Borrower without cost or charge
to Lender, and use the same together with inaterials, supplies, books and records of Borrower for the purpose of collecting and
liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether by foreclosure, auction
or otherwise.

 

    	7

    	 

    

 

(7)     Sale
or Other Disposition of Collateral. Lender, may, without notice, except as specified below, sell, lease, license or
otherwise dispose of and grant options to purchase, lease, license or otherwise acquire, any or all of the Collateral in one
or more parcels at public or private sale or other disposition, for cash, on credit, for future delivery or otherwise and
upon such other terms, including price, as Lendor may deem commercially reasonable.

 

(8)     Notice of Sale or Other Disposition of Collateral. Borrower agrees that, to the extent notice of sale shall be required
by law, at least ten (10) days notice to Borrower of the time and place of any public or private sale is to be made shall constitute
reasonable notification. Lender shall not be obligated to make any sale of any or all of the Collateral after any notice of sale
has been given. Lender may adjourn any public or private sale from time to time by announcement at the time and place fixed for
such sale, and such sale may, without further notice, be made at the time and the place to which it was so adjourned.

 

(9)     Commercially
Reasonable Sale. Borrower agrees that it is not commercially unreasonable for Lender (a) to fail to incur expenses reasonably
deemed significant by Lender to prepare Collateral for disposition or otherwise to fail to complete raw material or work in process
into fmished goods or other finished products for disposition, (b) to fail to obtain third party consents for access to Collateral
to be disposed of, or to obtain or, if not required by law. to fail to obtain governmental or third party consents for the collection
or disposition of Collateral to be collected or disposed of, (c) to fail to exercise collection remedies against account debtors
or other persons obligated on Collateral or to fail to remove liens or encumbrances on or any adverse claims against Collateral,
(d) to exercise collection remedies against account debtors and other persons obligated on Collateral directly or through the
use of collection agencies and other collection specialists, (e) to advertise dispositions of Collateral through publications
or media of general circulation, whether or not the Collateral is of a specialized nature, (f) to contact other persons, whether
or not in the same business as Borrower, for expressions of interest in acquiring all or any portion of the Collateral, (g) to
hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the collateral is of a specialized
nature, (h) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included
in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets, (i) to dispose
of assets in wholesale rather than retail markets, (j) to disclaim disposition warranties, including disclaimers of warranties
of title, possession, quiet enjoyment and the like, (k) to purchase insurance or credit enhancements to insure Lender against
risk of loss, collection or disposition of Collateral or to provide to Lender a guaranteed return from the collection or disposition
of Collateral, or (1) to the extent deemed appropriate by Lender, to obtain the services of other brokers, investment bankers,
consultants and other professionals to assist Lender in the collection or disposition of any of the Collateral. Borrower agrees
that the purpose of this Section is to provide non-exhaustive indications of what actions or omissions by Lender under the UCC
of the State or any other relevant jurisdiction in the exercise by Lender of remedies against the Collateral and that other actions
or omissions by Lender shall not be deemed to fail to fulfill such duties solely on account of not being indicated in this Section.
Without limitation upon the foregoing, nothing contained in this Section shall be construed to grant any rights to Borrower or
to impose any duties on Lender that would not have been granted or imposed by this Security Agreement or by applicable law in
the absence of this Section.

 

    	8

    	 

    

 

(10)     Proceeds. If
any of the Collateral is sold by Lender upon credit or for future delivery, Lender shall not be liable for the failure of the
purchaser to purchase or pay for the same and, in the event of any such failure, Lender may resell such Collateral. In no event
shall Borrower be credited with any part of the proceeds of sale of any Collateral until and to the extent cash payment in respect
thereof has actually been received by Lender. To the extent any of the Secured Obligations are contingent, cash proceeds received
by Lender in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the
discretion of Lender, be held by Lender as collateral for such contingent Secured Obligations. Any cash held by Lender as Collateral
and all cash proceeds received by Lender in respect of any sale of, collection from, or other realization upon all or any part
of the Collateral may, in the discretion of Lender, be applied, first, to pay all reasonable, out-of-pocket costs and expenses
incurred by Lender in connection with or incident to the custody, preservation, use or operation of, or the sale of, collection
from, or other realization upon, any and all of the Collateral, second, to pay all reasonable attorney's fees and legal expenses
incurred by Lender in connection with or incident to the custody, preservation, use or operation of, or the sale of, collection
from, or other realization upon, any and all of the Collateral, third, to pay all matured and unpaid Secured Obligations, in whole
or in part by Lender against, all or any part of the Secured Obligations in such order as Lender shall elect, fourth, if and to
the extent any of the Secured Obligations are unmatured or contingent, to provide cash collateral for all such Secured Obligations,
and fifth, in accordance with applicable law. If the proceeds of the sale of the Collateral are insufficient to pay all of the
Secured Obligations, Borrower agrees to pay upon demand any deficiency to Lender. Any remaining proceeds shall be paid to Borrower.

 

Lender
shall not by any act, delay, omission or otherwise be deemed to have waived any of his rights or remedies under this Security
Agreement. A waiver by Lender of any right or remedy under this Security Agreement on any one occasion, shall not be construed
as a bar to or waiver of any such right or remedy which Lender would have had on any future occasion nor shall Lender be liable
for exercising or failing to exercise any such right or remedy.

 

Section
11. Appointment of Lender's Attorney-in-Fact. Borrower hereby irrevocably appoints Lender attorney-in-fact, with full authority
in the place and stead of Borrower and in the name of Borrower, Lender or otherwise (1) to take any and all action and exercise
all rights and remedies granted to Lender under this Security Agreement, and (2) to execute any instrument which Lender may reasonably
deem necessary or advisable to accomplish the purpose of this Security Agreement.

 

Borrower hereby ratifies and approves all acts
of Lender as its attorney in-fact in accordance with this Section, and Lender, as its attorney in-fact, will not be liable for
any acts of commission or omission, nor for any error of judgment or mistake of fact or law, other than those which result from
Lender's gross negligence or willful misconduct. This power, being coupled with an interest, is irrevocable so long as this Security
Agreement remains in effect.

 

Section
12. Borrower Remains Liable. In all events, including the exercise by Lender of any of the rights under this Security Agreement,
Borrower remains liable to perform all of its duties and obligations under the contracts and agreements included in the Collateral
to which it is a party to the same extent as if this Security Agreement had not been executed. Lender shall not have any obligation
or liability under any such contracts and agreements by reason of this Security Agreement, nor shall Lender be obligated to perform
any of the obligations or duties of Borrower under, or to take any action to collect or enforce any claim or rights under, any
such contract or agreement.

 

    	9

    	 

    

 

The
powers conferred on Lender under this Security Agreement are solely to protect his interest in the Collateral and shall not impose
any duty upon him to exercise any such powers. Except for the safe custody of any Collateral in his possession and the accounting
for moneys actually received by him under this Security Agreement and as required by the UCC or other applicable law, Lender shall
not have any duty as to any such Collateral or as to the taking of any necessary steps to preserve rights against prior parties
or any other rights pertaining to any such Collateral.

 

Section
13. Indemnity and Expenses. Borrower agrees to indemnify Lender and each of his respective employees, agents and affiliates
from and against any and all claims, losses and liabilities arising out of or resulting from this Security Agreement or the transactions
contemplated by this Security Agreement (including, without limitation, enforcement of this Security Agreement), except to the
extent any such claims, losses or liabilities result from the gross negligence or willful misconduct of the person to be indemnified.

 

Borrower
will upon demand pay to Lender the amount of any and all reasonable, out-of-pocket expenses, including the reasonable fees and
out of pocket disbursements of his counsel and of any experts and agents, which Lender may reasonably incur in connection with
(1) the preparation of any revised or amended Loan Documents (up to a maximum amount of $10,000), (2) any amendment to this Security
Agreement, (3) the administration of this Security Agreement, (4) filing or recording fees incurred with respect to or in connection
with this Security Agreement, (5) the custody, preservation, use or operation of, or the sale of, collection from, or other realization
upon, any of the Collateral, (6) the exercise or enforcement of any of the rights of Lender under this Security Agreement, or (7)
the failure by Borrower to perform or observe any of the provisions of this Security Agreement.

 

Section
14. Amendments. No amendment or waiver of any provision of this Security Agreement nor consent to any departure by Borrower
from this Security Agreement shall in any event be effective unless the same shall be in writing and signed by Lender and Borrower,
and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

Section
15. Addresses for Notices. All notices and other communications provided for under this Security Agreement shall be in writing
and mailed or delivered by messenger or overnight delivery service, addressed to the party at that party's address set forth above
or as to any such party at such other address as shall be designated by such party in a written notice to the other party complying
as to delivery with the terms of this Section. All such notices and other communications shall, when mailed by registered or certified
mail, be effective five (5) Business Days after the mailing thereof, or when delivered by messenger or overnight delivery service,
be effective one (1) Business Day after being delivered to the messenger or overnight delivery service, respectively, addressed
as specified above. A copy of all notices sent to the Lender shall in a like manner be sent to: : Law Offices of M. Scott Vayer,
45 Rockefeller Plaza, Sutie 2000, New York, NY 10111, Attention: M. Scott Vayer.

 

    	10

    	 

    

 

Section
16. Continuing Security Interest, Transfer of Secured Obligations. This Security Agreement shall create a continuing
security interest in all of the Collateral until such time as the Secured Obligations are irrevocably paid to Lender in full.
This Security Agreement shall be binding upon Borrower and inure to Lender and his respective successors, transferees and
permitted assigns to which the Note is assigned or transferred. Borrower may not transfer or assign its obligations under
this Security Agreement. Lender may assign or otherwise transfer all or a portion of his rights or obligations with respect
to the Secured Obligations to any other party, and such other party shall then become vested with all the benefits in respect
of such transferred Secured Obligations and the security interest granted to Lender pursuant to this Security Agreement or
otherwise. Borrower agrees that Lender can provide information regarding Borrower to any prospective or actual successor,
transferee, or assign subject to such successor, transferee or assignee providing a confidentiality undertaking reasonably
acceptable to Lender, such successor, transferee or assignee and Borrower.

 

Section
17. Submission to Jurisdiction. Borrower hereby irrevocably submits to the jurisdiction of any federal or state court sitting
in New York County in the State of New York over any action or proceeding arising out of or related to this Security Agreement
and agrees with Lender that personal jurisdiction over Borrower rests with such courts for purposes of any action on or related
to this Security Agreement. Borrower 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 manner provided by law. Borrower further waives any objection
to venue in any such action or proceeding on the basis of inconvenient forum. Borrower agrees that any action on or proceeding
brought against Lender shall only be brought in such courts.

 

Section 18.
Governing Law. This Security Agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to its principles of conflicts of law, except to the extent that the validity or perfection of the security
interest under this Security Agreement, or remedies under this Security Agreement, in respect of any particular Collateral are
governed by the laws of a jurisdiction other than the State of New York.

 

Section 19. Miscellaneous.
This Security Agreement is in addition to and not in limitation of any other rights and remedies Lender may have by virtue of any
other instrument or agreement heretofore, contemporaneously herewith or hereafter executed by Borrower or by law or otherwise including
the Loan Documents. If any provision of this Security Agreement is contrary to applicable law, such provision shall be deemed ineffective
without invalidating the remaining provisions of this Security Agreement. If and to the extent that applicable law confers any
rights in addition to any of the provisions of this Security Agreement, the affected provision shall be considered amended to conform
to such law. The headings in this Security Agreement are for convenience of reference only, and shall not affect the interpretation
or construction of this Security Agreement.

 

Section
20. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
THAT PARTY MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.

 

    	11

    	 

    

 

IN
WITNESS WHEREOF, Borrower has duly executed and delivered this Security Agreement as of the date of this Security Agreement.

 

Borrower:

 

Select-TV
USA Holdings, Inc.

 

 

By: _______________________

Name:

Title:

 

 

 

 

 

 

 

 

Attachments:

 

Schedule
I-SA (copy of Schedule I to the Bill of Sale)

Notarized acknowledgement of Borrower.

 

    	12

    	 

    

 

	STATE OF NEVADA	)	 
	 	)	ss:
	COUNTY OF CLARK	)	 

 

 

On the 4th day of March,
2015, before me personally came Brooks Pickering to me known, who being by me duly sworn, did depose and say that he resides
at 2198 County Cove Ct., Las Vegas, Nevada 89135; that he is the Chief Executive Officer of
SELECT-TV (USA) HOLDINGS, INC. the Nevada Corporation described in and which executed the foregoing instruments (Promissory
Note and Security Agreement); that he knows the seal of said Corporation; that the seal affixed to said instruments is such
seal and was affixed thereto by order of the board of directors; and that he signed his name thereto by like
order.

 

 

 

 

My commission
expires: 10/5/2018

 

    	13

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